[Title 10 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1998 Edition]
[From the U.S. Government Printing Office]


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          10



          Energy



          PART 500 TO END

                         Revised as of January 1, 1998

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT
          AS OF JANUARY 1, 1998

          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration
          as a Special Edition of
          the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1998



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 10:
    Chapter II--Department of Energy (Continued)..............       3
    Chapter III--Department of Energy.........................     253
    Chapter X--Department of Energy (General Provisions)......     535
    Chapter XI--United States Enrichment Corporation..........     813
    Chapter XV--Office of the Federal Inspector for the Alaska 
        Natural Gas Transportation System.....................     827
    Chapter XVII--Defense Nuclear Facilities Safety Board.....     879
  Finding Aids:
    Table of CFR Titles and Chapters..........................     907
    Alphabetical List of Agencies Appearing in the CFR........     923
    List of CFR Sections Affected.............................     933



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   Cite this Code:  CFR

   To cite the regulations in this volume use title, part and
   section number. Thus,  10 CFR 500.1 refers to title 10, part
   500, section 1.

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

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    To determine whether a Code volume has been amended since its 
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Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
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states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
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parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
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ELECTRONIC SERVICES

    The texts of the Code of Federal Regulations, The United States 
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of Presidential Documents and the 1995 Privacy Act Compilation are 
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For more information, contact Electronic Information Dissemination 
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    The Office of the Federal Register maintains a free electronic 
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Delivery), for public law numbers, Federal Register finding aids, and 
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Administration's Fax-on-Demand system. Phone, 301-713-6905.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 1998.



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                               THIS TITLE

    Title 10--Energy is composed of four volumes. The parts in these 
volumes are arranged in the following order: parts 1-50, 51-199, 200-499 
and part 500-end. The first and second volumes containing parts 1-199 
are comprised of chapter I-- Nuclear Regulatory Commission. The third 
and fourth volumes containing part 200-end are comprised of chapters II, 
III and X--Department of Energy, chapter XI--United States Enrichment 
Corporation, chapter XV--Office of the Federal Inspector for the Alaska 
Natural Gas Transportation System, and chapter XVII--Defense Nuclear 
Facilities Safety Board. The contents of these volumes represent all 
current regulations codified under this title of the CFR as of January 
1, 1998.

    For this volume, Melanie L. Marcec was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

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[[Page 1]]



                            TITLE 10--ENERGY




                  (This book contains part 500 to end)

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                                                                    Part

Chapter ii--Department of Energy (Continued)................         500

Chapter iii--Department of Energy...........................         706

Chapter x--Department of Energy (General Provisions)........        1000

Chapter xi--United States Enrichment Corporation............        1101

Chapter xv--Office of the Federal Inspector for the Alaska 
  Natural Gas Transportation System.........................        1500

chapter xvii--Defense Nuclear Facilities Safety Board.......        1703

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               CHAPTER II--DEPARTMENT OF ENERGY--CONTINUED




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                      SUBCHAPTER E--ALTERNATE FUELS
Part                                                                Page
500             Definitions.................................           5
501             Administrative procedures and sanctions.....          13
503             New facilities..............................          38
504             Existing powerplants........................          57
508

[Reserved]

516

[Reserved]

     SUBCHAPTER G--NATURAL GAS (ECONOMIC REGULATORY ADMINISTRATION)
580             Curtailment priorities for essential 
                    agricultural uses.......................          67
590             Administrative procedures with respect to 
                    the import and export of natural gas....          68
                  SUBCHAPTER H--ASSISTANCE REGULATIONS
600             Financial assistance rules..................          83
601             New restrictions on lobbying................         166
602             Epidemiology and other health studies 
                    financial assistance program............         177
605             The Office of Energy Research financial 
                    assistance program......................         184
                     SUBCHAPTER I--SALES REGULATION
622             Contractual provisions......................         196
624             Contract clauses............................         196
625             Price competitive sale of Strategic 
                    Petroleum Reserve petroleum.............         197

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                      SUBCHAPTER E--ALTERNATE FUELS





PART 500--DEFINITIONS--Table of Contents




Sec.
500.1  Purpose and scope.
500.2  General definitions.
500.3  Electric regions--electric region groupings for reliability 
          measurements under the Powerplant and Industrial Fuel Use Act 
          of 1978.

    Authority: Department of Energy Organization Act, Pub. L. 95-91, 91 
Stat. 565 (42 U.S.C. Sec. 7101 et seq.); Powerplant and Industrial Fuel 
Use Act of 1978, Pub. L. 95-620, 92 Stat. 3289 (42 U.S.C. 8301 et seq.); 
Energy Security Act, Pub. L. 96-294, 94 Stat. 611 (42 U.S.C. 8701 et 
seq.); E.O. 1209, 42 FR 46267, September 15, 1977.

    Source: 46 FR 59884, Dec. 7, 1981, unless otherwise noted.

    OMB Control No.: 1903-0075. See 46 FR 63209, Dec. 31, 1981.



Sec. 500.1  Purpose and scope.

    Unless otherwise expressly provided or the context clearly indicates 
otherwise, this section defines the terms used in these regulations. The 
use of the male gender is to include female; the use of singular to 
include plural.



Sec. 500.2  General definitions.

    For purposes of this part and parts 501-507 term(s):
    Act means Powerplant and Industrial Fuel Use Act of 1978, 42 U.S.C. 
8301 et seq.
    Action means a prohibition by rule or order, in accordance with 
sections 301(b) and (c) of FUA; any order granting or denying an 
exemption in accordance with sections 211, 212, 311 and 312 of FUA; a 
modification or rescission of any such order, or rule; an 
interpretation; a notice of violation; a remedial order; an interpretive 
ruling; or a rulemaking undertaken by DOE.
    Affiliate, when used in relation to person, means another person who 
controls, is controlled by, or is under common control, with such 
person.
    Aggrieved, for purposes of administrative proceedings, describes and 
means a person (with an interest sought to be protected under FUA) who 
is adversely affected by an action proposed or undertaken by DOE.
    Air pollution control agency means any of the following:
    (1) A single State agency designated as the official State air 
pollution control agency;
    (2) An agency established by two or more States and having 
substantial powers or duties pertaining to the prevention and control of 
air pollution;
    (3) A city, county, or other local government health authority or, 
in the case of any city, county, or other local unit of government in 
which there is an agency other than the health authority charged with 
responsibility for enforcing ordinances or laws relating to the 
prevention and control of air pollution, such other agency; or
    (4) An agency or two or more municipalities located in the same 
State or in different States and having substantial powers or duties 
pertaining to the prevention and control of air pollution.
    Alternate fuel means electricity or any fuel, other than natural gas 
or petroleum. The term includes, but is not limited to :
    (1) Coal;
    (2) Solar energy;
    (3) Petroleum coke; shale oil; uranium; biomass, tar sands, oil-
impregnated diatomaceous earth; municipal, industrial, or agricultural 
wastes; wood; and renewable and geothermal energy sources (For purposes 
of this paragraph (3), the term industrial does not include 
refineries.);
    (4) Liquid, solid or gaseous waste by-products of refinery or 
industrial operations which are commercially unmarketable, either by 
reason of quality or quantity. (For purposes of this paragraph (4), the 
term waste by-product is defined as an unavoidable by-product of the 
industrial or refinery operation.) A waste by-product of a refinery or 
industrial operation is commercially unmarketable if it meets the 
criteria listed in the definition of ``commercial unmarketability,'' set 
forth below;
    (5) Any fuel derived from an alternate fuel; and
    (6) Waste gases from industrial operations. (For purposes of this 
subsection, the term industrial does not include refineries.)

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    Applicable environmental requirements includes:
    (1) Any standard, limitation, or other requirement established by or 
pursuant to Federal or State law (including any final order of any 
Federal or State Court) applicable to emissions of environmental 
pollutants (including air and water pollutants) or disposal of solid 
waste residues resulting from the use of coal or other alternate fuels, 
natural gas, or petroleum as a primary energy source or from the 
operation of pollution control equipment in connection with such use, 
taking into account any variance of law granted or issued in accordance 
with Federal law or in accordance with State law to the extent 
consistent with Federal law; and
    (2) Any other standard, limitation, or other requirement established 
by, or pursuant to, the Clean Air Act, the Federal Water Pollution 
Control Act, the Solid Waste Disposal Act, the Resource Conservation and 
Recovery Act of 1976, or the National Environmental Policy Act of 1969.
    Base load powerplant means a powerplant, the electrical generation 
of which in kilowatt hours exceeds, for any 12-calendar-month period, 
such powerplant's design capacity multiplied by 3,500 hours.
    Boiler means a closed vessel in which water is heated electrically 
or by the combustion of a fuel to produce steam of one percent or more 
quality.
    Btu means British thermal unit.
    Capability to use alternate fuel, for the purposes of Title II 
prohibitions relating to construction of new powerplants, means the 
powerplant to be constructed:
    (1) Has sufficient inherent design characteristics to permit the 
addition of equipment (including all necessary pollution devices) 
necessary to render such electric powerplant capable of using coal or 
another alternate fuel as its primary energy source; and
    (2) Is not physically, structurally, or technologically precluded 
from using coal or another alternate fuel as its primary energy source.
    Capability to use coal or another alternate fuel shall not be 
interpreted to require any such powerplant to be immediately able to use 
coal or another alternate fuel as its primary energy source on its 
initial day of operation. In addition, the owner or operator of a 
baseload powerplant need not have adequate on-site space for either a 
coal gasifier or any facilities for handling coal or related fuels.
    Certification means a document, signed by an official of the owner 
or operator, notarized, and submitted to OFE, which declares that a new 
powerplant will have the ``capability to use alternate fuel'' (as 
defined herein).
    Certifying powerplant means an existing powerplant whose owner or 
operator seeks to obtain a prohibition order against the use of natural 
gas or petroleum either totally or in a mixture with coal or an 
alternate fuel by filing a certification as to both the technical 
capability and financial feasibility of conversion to coal or another 
alternate fuel pursuant to section 301 of FUA, as amended.
    Clean Air Act means the Clean Air Act, 42 U.S.C. 7401 et seq. 
(1970), as amended by Public Law 93-319, 88 Stat. 246, and Public Law 
95-91, 91 Stat. 685.
    Coal means anthracite, bituminous and sub-bituminous coal, lignite, 
and any fuel derivative thereof.
    Cogeneration facility means an electric powerplant that produces:
    (1) Electric power; and
    (2) Any other form of useful energy (such as steam, gas or heat) 
that is, or will be used, for industrial, commercial, or space heating 
purposes. In addition, for purposes of this definition, electricity 
generated by the cogeneration facility must constitute more than five 
(5) percent and less than ninety (90) percent of the useful energy 
output of the facility.

    Note-- Any cogeneration facility selling or exchanging less than 
fifty percent (50%) of the facility's generated electricity is 
considered an industrial cogenerator and is exempt from the fuel use 
prohibitions of FUA.

    Combined cycle unit means an electric power generating unit that 
consists of a combination of one or more combustion turbine units and 
one or more steam turbine units with a substantial portion of the 
required energy input of the steam turbine unit(s) provided by the 
exhaust gas from the combustion turbine unit(s).
    Substantial amounts of supplemental firing for a steam turbine or 
waste heat

[[Page 7]]

boiler to improve thermal efficiency will not affect a unit's 
classification as a combined cycle unit.
    Combustion turbine means a unit that is a rotary engine driven by a 
gas under pressure that is created by the combustion of any fuel.
    Commercial unmarketability as used in the definitions of ``alternate 
fuel,'' ``natural gas'' and ``petroleum'' shall be determined as 
follows:
    (1) A waste by-product of industrial or refinery operations is 
commercially unmarketable by reason of:
    (i) Quality, where the cost of processing (limited to upgrading the 
waste by-product to commercial quality), storing, and distributing the 
waste by-product would not be covered by reasonably expected revenues 
from its sale;
    (ii) Quantity, where the cost of aggregating the waste by-product 
into commercial quantities through storing and distributing the waste 
by-product would not be covered by reasonably expected revenues from its 
sale.
    (2) A fuel will not be classified as ``natural gas'' when it is 
commercially unmarketable by reason of:
    (i) Quality, where the cost of producing, upgrading to commercial 
quality, storing, and distributing the fuel would not be covered by 
reasonably expected revenues from its sale; or
    (ii) Quantity, where the quantities of the fuel are so small that 
the revenues to be reasonably expected from its sale would not cover the 
cost of its production, distribution or storage.
    (3) Costs associated with upgrading, storing, distributing, and 
aggregating a by-product or other fuel (to determine if such fuel is 
natural gas) may properly include a reasonable rate of return on any 
capital investment required to overcome the problems posed by the 
quality or quantity of a fuel because the return on investment is a 
normal aspect of any investment decision. A firm may account for this 
reasonable rate of return by using its customary discount rate for an 
investment of similar risk.
    (4) As part of any consideration of the rate of return on 
investment, the cost of replacing the Btu's lost if the by-product or 
other fuel were upgraded and sold instead of used as a fuel may be taken 
into consideration. The actual expense that would result from burning a 
replacement fuel in lieu of the by-product or other fuel in question may 
therefore be considered. The costs associated with using a replacement 
fuel are indirect costs that result from upgrading and selling the fuel, 
instead of burning it. These indirect costs as well as the direct costs 
associated with the upgrading, storing, distributing, and aggregating of 
by-products or other fuel may be considered in any assessment of 
commercial unmarketability.
    Conference means an informal meeting incident to any proceeding, 
between DOE and any interested person.
    Construction means substantial physical activity at the unit site 
and includes more than clearance of a site or installation of foundation 
pilings.
    Costs means total costs, both operating and capital, incurred over 
the estimated remaining useful life of an electric powerplant, 
discounted to the present, pursuant to rules established in parts 503 
and 504 of these regulations.
    DEOA means the Department of Energy Organization Act (Pub. L. 95-91) 
(42 U.S.C. 7101 et seq.) as implemented by Executive Order 12009 (42 FR 
46267, September 15, 1977).
    Design capability defined in section 103(a)(7) of FUA, shall be 
determined as follows:
    (1) Boiler and associated generator turbines. The design fuel heat 
input rate of a steam-electric generating unit (Btu/hr) shall be the 
product of the generator's nameplate rating, measured in kilowatts, and 
3412 (Btu/kWh), divided by the overall boiler-turbine-generator unit 
design efficiency (decimal); or if the generator's nameplate does not 
have a rating measured in kilowatts, the product of the generator's 
kilovolt-amperes nameplate rating, and the power factor nameplate 
rating; and 3412 (Btu/kWh), divided by the boiler turbine-generator 
unit's design efficiency (decimal). (The number 3412 converts kilowatt-
hours (absolute) into Btu's (mean).)
    (2) Combustion turbine and associated generator. The design fuel 
heat input rate of a combustion turbine (Btu/hr) shall be the product of 
its nameplate rating, measured in kilowatts, and 3412

[[Page 8]]

(Btu/kWh), divided by the combustion turbine-generator unit's design 
efficiency (decimal), adjusted for peaking service at an ambient 
temperature of 59 degrees Fahrenheit (15 degrees Celsius) at the unit's 
elevation. (The number 3412 converts kilowatt-hours (absolute) into 
Btu's (mean).)
    (3) Combined cycle unit. The design fuel heat input rate of a 
combined cycle unit (Btu/hr) shall be the summation of the product of 
its generator's nameplate rating, measured in kilowatts, and 3412 (Btu/
kWh), divided by the overall combustion turbine-generator unit's 
efficiency (decimal), adjusted for peaking service at an ambient 
temperature of 59 degrees Fahrenheit (15 degrees Celsius) and at the 
unit's evaluation, plus the product of the maximum fuel heat input to 
any supplemental heat recovery steam generator/boiler in gallons or 
pounds per hour and the fuel's heat content. If the generator's 
nameplate does not have a rating measured in kilowatts, the product of 
the generator's kilowatt-amperes nameplate rating and power factor 
nameplate rating must be substituted for kilowatts. (The number 3412 
converts kilowatt-hours (absolute) into Btu's (mean).)
    Design capacity of a powerplant pursuant to section 103(a)(18) of 
FUA, is determined according to 18 CFR 287.101.
    DOE or the Department means the United States Department of Energy, 
as defined in sections 201 and 301(a) of the DEOA, including the 
Secretary of Energy or his designee.
    Duly authorized representative means a person who is authorized to 
appear before DOE in connection with a proceeding on behalf of a person 
interested in or aggrieved by that proceeding. Such appearance may 
include the submission of applications, petitions, requests, statements, 
memoranda of law, other documents, or of a personal appearance, oral 
communication, or any other participation in a proceeding.
    Electing powerplant means an existing powerplant, which (1) has been 
issued a proposed prohibition order under former section 301 (b) or (c) 
of FUA prior to August 13, 1981, the date of enactment of the Omnibus 
Budget Reconciliation Act of 1981, Public Law 97-35 (OBRA); and (2) 
files an election to continue the current prohibition order proceeding 
under provisions of the former section 301 of FUA, rather than under 
amended section 301 of FUA.1Under the election provisions, an 
existing powerplant which has an order pending against it under section 
2 of the Energy Supply and Environmental Coordination Act of 1974, as 
amended, 15 U.S.C. 791 et seq. (ESECA), as of August 13, 1981, may also 
elect to continue the current proceeding under section 2 of ESECA. 
Electing powerplants under ESECA are not included in the FUA definition 
of ``electing powerplant''. Relevant regulations governing ESECA 
proceedings are found at 10 CFR part 303 and 305. These elections must 
have been filed with DOE by November 30, 1981 in the case of FUA orders 
and by January 14, 1982 in the case of ESECA orders.
---------------------------------------------------------------------------


    1 The election provisions are published at 46 FR 48118 
(October 1, 1981) and will not be codified in the Code of Federal 
Regulations.
---------------------------------------------------------------------------

    Electric generating unit does not include:
    (1) Any electric generating unit subject to the licensing 
jurisdiction of the Nuclear Regulatory Commission (NRC); and
    (2) Any cogeneration facility from which less than 50 percent of the 
net annual electric power generation is sold or exchanged for resale. 
Excluded from `sold or exchanged for resale' are sales or exchanges to 
or with an electric utility for resale by the utility to the 
cogenerating supplier, and sales or exchanges among owners of the 
cogeneration facility.

    Note: For purposes of subparagraph (1) of this definition, OFE will 
not consider any unit located at a site subject to NRC's licensing 
authority to be jurisdictional for purposes of FUA.

    Electric powerplant means any stationary electric generating unit 
consisting of (a) a boiler, (b) a gas turbine, or (c) a combined cycle 
unit which employs a generator to produce electric power for purposes of 
sale or exchange and has the design capabilityf consuming any fuel (or 
mixture thereof) at a fuel heat input rate of 100 million Btu's per hour 
or greater. In accordance with

[[Page 9]]

section 103(a)(7)(C) of FUA, the Secretary has determined that it is 
appropriate to exclude from this definition any unit which has a design 
capability to consume any fuel (including any mixture thereof) that does 
not equal or exceed 100 million Btu's per hour.
    Electric Region is as defined in Sec. 500.3 of this part.
    Electric utility means any person, including any affiliate, or 
Federal agency, which sells electric power.
    Emission offset means emission reductions as defined by EPA's 
regulations set forth at 40 CFR part 51, appendix S.
    EPA means the United States Environmental Protection Agency.
    ESECA means the Energy Supply and Environmental Coordination Act of 
1974, as amended, 15 U.S.C. 791 et seq.
    Existing powerplant means any powerplant other than a new 
powerplant.
    Federal Water Pollution Control Act means the Federal Water 
Pollution Control Act, 33 U.S.C. 1251 et seq., as amended.
    FERC means the Federal Energy Regulatory Commission.
    Firm means a parent company and the consolidated or unconsolidated 
entities (if any) that it directly or indirectly controls.
    Fluidized bed combustion means combustion of fuel in connection with 
a bed of inert material, such as limestone or dolomite, that is held in 
a fluid-like state by the means of air or other gases being passed 
through such materials.
    FTC means the Federal Trade Commission.
    FUA means the Powerplant and Industrial Fuel Use Act of 1978, 42 
U.S.C. 8301 et seq.
    Fuel Use Act means FUA.
    Fuel use order means a directive issued by OFE pursuant to 
Sec. 501.167 of these regulations.
    Gas turbine means ``combustion turbine''.
    High-priority user, for purposes of subsection 312(j) of FUA, means 
any residential user of natural gas, or any commercial user whose 
consumption of natural gas on peak day is less than 50 MCF.
    Internal combustion engine means a heat engine in which the 
combustion that generates the heat takes place inside the engine proper.
    Interpretation means a written statement issued by the DOE General 
Counsel or his delegate, in response to a written request, that applies 
the regulations, rulings, and other precedents previously issued by the 
DOE to the particular facts of a prospective or completed act or 
transaction.
    Mcf means 1,000 cubic feet of natural gas.
    Mixture, when used in relation to fuels used in a unit, means a 
mixture of petroleum or natural gas and an alternate fuel, or a 
combination of such fuels, used simultaneously or alternately in such 
unit.
    Natural gas means any fuel consisting in whole or in part of natural 
gas, including components of natural gas such as methane and ethane; 
liquid petroleum gas; synthetic gas derived from petroleum or natural 
gas liquids; or any mixture of natural gas and synthetic gas. Natural 
gas does not include:
    (1) Gaseous waste by-products or waste gas specifically designated 
as an alternate fuel in Sec. 500.2 of these regulations;
    (2) Natural gas which is commercially unmarketable, as defined in 
these rules;
    (3) Natural gas produced by the user from a well, the maximum 
efficient production rate of which is less than 250 million Btu's per 
day. For purposes of paragraph (3) of this definition:
    (i) Produced by the user means:
    (A) All gas produced by the well, when such gas is delivered for use 
in the user's facility through a gas delivery, gathering, or 
transportation system which could not deliver such gas to any other 
user; or
    (B) Only that amount which represents the user's net working 
(mineral) interest in the gas produced from such well, where such gas is 
delivered for use in the user's facility through a gas delivery, 
gathering, or transportation system which could deliver such gas to any 
other user.
    (ii) Maximum efficient production rate (MEPR) means that rate at 
which production of natural gas may be sustained without damage to the 
reservoir or the rate which may be sustained without damage to the 
ultimate recovery of oil or gas through the well.

[[Page 10]]

    (4) Occluded methane in coal seams within the meaning of section 
107(c)(3) of the Natural Gas Policy Act of 1978 (NGPA);
    (5) The following gas from wells spudded prior to January 1, 1990:
    (i) Gas produced from geopressurized brine, within the meaning of 
section 107(c)(2) of the NGPA;
    (ii) Gas produced from Devonian shale, within the meaning of section 
107(c)(4) of the NGPA;
    (iii) Gas produced from tight sands, as designated by the FERC in 
accordance with section 107(c)(5) of the NGPA; and
    (iv) Other gases designated by FERC as ``high-cost natural gas'' in 
accordance with section 107(c)(5) of the NGPA, except as specifically 
designated as ``natural gas'' by OFE;
    (6)(i) Synthetic gas derived from coal or other alternate fuel, the 
heat content of which is less than 600 Btu's per cubic foot at 14.73 
pounds per square inch (absolute) and 60 deg. F; and
    (ii) Commingled natural gas and synthetic gas derived from coal 
consumed as part of the necessary process of a major fuel burning 
installation used in the iron and steel industry, so long as the average 
annual Btu heat content of the commingled stream as consumed within a 
major fuel burning installation does not exceed 600 Btu's per cubic foot 
at 14.73 pounds per square inch (absolute) and 60 deg. F;
    (7) Mixtures of natural gas and synthetic gas derived from alternate 
fuels for which the person proposing to use the gas certifies to OFE 
that:
    (i) He owns, or is entitled to receive at the point of manufacture, 
synthetic gas derived from alternate fuels;
    (ii) He delivers, or arranges for the delivery of such synthetic gas 
to a pipeline which by transport or displacement is capable of 
delivering such synthetic gas, mixed with natural gas, to facilities 
owned by the user;
    (iii) The total annual Btu content of the synthetic gas delivered to 
a pipeline is equal to or greater than the total annual Btu content of 
the natural gas delivered to the facilities owned by the user, plus the 
approximate total annual Btu content of any natural gas consumed or lost 
in transportation; and
    (iv) All necessary permits, licenses, or approvals from appropriate 
Federal, State, and local agencies (including Indian tribes) have been 
obtained for construction and operation of the facilities for the 
manufacture of the synthetic gas involved, except that for purposes of 
the prohibition under section 201(2) of FUA against powerplants being 
constructed without the capability of using coal or another alternate 
fuel, only permits, licenses, and approvals for the construction of such 
synthetic gas facilities shall be required under this subparagraph, to 
be certified and documented; and
    (8) A mixture of natural gas and an alternate fuel when such mixture 
is deliberately created for purposes of (i) Complying with a prohibition 
order issued pursuant to section 301(c) of the Act, or (ii) Qualifying 
for a fuel mixtures exemption under the Act, provided such exemption is 
granted.
    NEPA means the National Environmental Policy Act of 1969, as 
amended, 42 U.S.C. 4321 et seq.
    New electric powerplant means any electric powerplant: (1) That was 
not classified as existing under part 515 of this subchapter; (2) That 
was reconstructed, as defined in these rules under the definition of 
``reconstruction''; or (3) For which construction was begun after 
November 9, 1978.
    NGPA means the Natural Gas Policy Act of 1978, 15 U.S.C. 3301 et 
seq.
    Nonboiler means any powerplant which is not a boiler and consists of 
either a combustion turbine unit or combined cycle unit.
    Notice of violation means a written statement issued to a person by 
DOE that states one or more alleged violations of the provisions of 
these regulations, any order issued pursuant thereto, or the Act.
    OBRA means the Omnibus Budget Reconciliation Act of 1981, Public Law 
97-35.
    OFE means the Office of Fossil Energy of OFE.
    Offset means ``emission offset''.
    Order means a final disposition, other than the issuance of a rule, 
issued by DOE pursuant to these regulations or the Act.
    Person means any:

[[Page 11]]

    (1) Individual, corporation, company, partnership, association, 
firm, institution, society, trust, joint venture, or joint stock 
company;
    (2) Any State; or
    (3) Any Federal, State, or local agency or instrumentality 
(including any municipality) thereof.
    Petroleum means crude oil and products derived from crude oil, other 
than:
    (1) Petroleum products specifically designated as alternate fuels 
pursuant to these regulations;
    (2) Synthetic gas derived from crude oil;
    (3) Liquid petroleum gas;
    (4) Petroleum coke or waste gases from industrial operations; and
    (5) A liquid, solid, or gaseous waste by-product of refinery 
operations which is commercially unmarketable under the definition of 
``commercial unmarketability'' in these rules.

    Note: For the purposes of this subparagraph, waste by-proucts do not 
include components (such as butane and propane) that can be extracted 
from the waste by-product by reasonable further processing of the waste 
by-product at the refinery, nor do they include final products that use 
the waste by-product as a blend stock at the refinery.

    Petition means a formal request for any action including an 
exemption submitted to DOE under these regulations.
    Powerplant means ``electric powerplant.''
    Product or process requirements means that product or process for 
which the use of an alternate fuel is not technically feasible due to 
the necessity to maintain satisfactory control of product quality and 
for which the substitution of steam is not technically feasible due to 
process requirements.
    Primary energy source means the fuel or fuels used by any existing 
or new electric powerplant except:
    (1) Minimum amounts of fuel required for unit ignition, startup, 
testing, flame stabilization, and control uses. OFE has determined that, 
unless need for a greater amount is demonstrated, twenty-five (25) 
percent of the total annual Btu heat input of a unit shall be 
automatically excluded under this paragraph.
    (2) Minimum amounts of fuel required to alleviate or prevent:
    (i) Unanticipated equipment outages as defined in Sec. 501.191 of 
these regulations; and
    (ii) Emergencies directly affecting the public health, safety, or 
welfare that would result from electric power outages as defined in 
Sec. 501.191 of these regulations.

    Note: (1) Any fuel excluded under the provisions of paragraph (1) of 
this definition is in addition to any fuel authorized to be used in any 
order granting a fuel mixtures exemption under parts 503 and 504 of 
these rules. The exclusion of fuel under paragraph (1), together with 
the authority for such additive treatment, shall apply to any 
jurisdictional facility, regardless of whether or not it had received an 
order granting an exemption as of the date these rules are promulgated.

    (2) If an auxiliary unit to an electric powerplant consumes fuel 
only for the auxiliary functions of unit ignition, startup, testing, 
flame stabilization, and other control uses, its use of minimum amounts 
of natural gas or petroleum is not prohibited by FUA. The measurement of 
such minimum amounts of fuel is discussed in Associated Electric 
Cooperative, et al., Interpretation 1980-42 [45 FR 82572, Dec. 15, 
1980].

    Prohibition order means:
    (1) An order issued pursuant to section 301(b) of the Act that 
prohibits a powerplant from burning natural gas or petroleum as its 
primary energy source; or
    (2) An order issued pursuant to section 301(c) of the Act that 
prohibits excessive use of natural gas or petroleum in mixtures burned 
by a powerplant as its primary energy source.
    Rated capacity for the purpose of determining reduction in the rated 
capacity of an existing powerplant, means design capacity, or, at the 
election of the facility owner or operator, the actual maximum sustained 
energy output per unit of time that could be produced, measured in power 
output, expressed in kilowatts, per unit of time.
    Reconstruction means the following:
    (1) Except as provided in paragraph (2) of this definition, 
reconstruction shall be found to have taken place whenever the capital 
expenditures for refurbishment or modification of an electric powerplant 
on a cumulative basis for the current calendar year and

[[Page 12]]

preceding calendar year, are equal to or greater than fifty (50) percent 
of the capital costs of an equivalent replacement unit of the same 
capacity, capable of burning the same fuels.
    (2) Notwithstanding paragraph (1) of this definition, reconstruction 
shall not be found to have taken place whenever:
    (i) The capital expenditures for refurbishment or modification of an 
electric powerplant, on a cumulative basis for the current calendar year 
and preceding calendar year, are not greater than eighty (80) percent of 
the capital costs of an equivalent replacement unit of the same 
capacity, capable of burning the same fuels and the unit, as refurbished 
or modified, will not have a greater fuel consumption capability than 
the unit it replaces;
    (ii) The unit being refurbished or modified was destroyed, in whole 
or substantial part, in a plant accident and the unit, as refurbished or 
modified, will not have a greater fuel consumption capability than the 
unit it replaces; or
    (iii) Refurbishment or modification of the unit is undertaken 
primarily for the purpose of increasing fuel burning efficiency of the 
unit, and will not result in:
    (A) Increased remaining useful plant life, or
    (B) Increased total annual fuel consumption.
    Resource Conservation and Recovery Act of 1976 means the Resource 
Conservation and Recovery Act of 1976, 42 U.S.C. 6901 et seq.
    SIP means State Implementation Plan pursuant to section 10 of the 
Clean Air Act.
    Site limitation means a specific physical limitation associated with 
a particular site that relates to the use of an alternate fuel as a 
primary energy source for the powerplant such as:
    (1) Inaccessibility to alternate fuels;
    (2) Lack of transportation facilities for alternate fuels;
    (3) Lack of adequate land for facilities for the handling, use and 
storage of alternate fuels;
    (4) Lack of adequate land or facilities for the control or disposal 
of wastes from such powerplant, including lack of land for pollution 
control equipment or devices necessary to assure compliance with 
applicable environmental requirements; and
    (5) Lack of an adequate and reliable supply of water, including 
water for use in compliance with applicable environmental requirements.
    Solid Waste Disposal Act means the Solid Waste Disposal Act, 42 
U.S.C. 6901 et seq., as amended.
    State regulatory authority means any State agency that acts as 
ratemaking or power supply authority with respect to the sale of 
electricity by any State regulated electric utility.
    Synthetic fuel means any fuel derived from an alternate fuel and 
does not include any fuels derived from petroleum or natural gas.
    Wetlands areas means, for purposes of section 103(a)(12) of the Act, 
those geographical areas designated as wetlands areas by State or local 
environmental regulatory authorities, or in the absence of any such 
geographic designation, those areas that are inundated by surface or 
ground water with frequency sufficient to support, and under normal 
circumstances does or would support, a prevalence of vegetation or 
aquatic life that requires saturated, seasonably saturated, or tidally 
saturated soil conditions for growth or reproduction.

(Department of Energy Organization Act, Pub. L. 95-91, 42 U.S.C. 7101 et 
seq.; Energy Supply and Environmental Coordination Act of 1974, Pub. L. 
93-319, as amended by Pub. L. 94-163, Pub. L. 95-70, and Pub. L. 95-620, 
(15 U.S.C. 719 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, as amended by Pub. L. 97-35 (42 U.S.C. 8301 et seq.); 
Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35)
[46 FR 59884, Dec. 7, 1981, as amended at 47 FR 15313, 15314, Apr. 9, 
1982; 47 FR 17041, Apr. 21, 1982; 47 FR 29210, July 6, 1982; 47 FR 
34972, Aug. 12, 1982; 54 FR 52889, Dec. 22, 1989]



Sec. 500.3  Electric regions--electric region groupings for reliability measurements under the Powerplant and Industrial Fuel Use Act of 1978.

    (a) The following is a list of electric regions for use with regard 
to the Act. The regions are identified by FERC Power Supply Areas 
(PSA's) as authorized by section 202(a) of the Federal Power Act except 
where noted. They will be reviewed annually by ERA.

[[Page 13]]

Each grouping meets one or more of the following criteria:
    (1) Existing centrally dispatched pools and hourly power brokers;
    (2) Systems with joint planning and construction agreements;
    (3) Systems with coordination agreements in the areas of:
    (i) Generation reserve and system reliability criteria;
    (ii) Capacity and energy exchange policies;
    (iii) Maintenance scheduling; and
    (iv) Emergency procedures for dealing with capacity or fuel 
shortages; or
    (4) Systems within the same National Electric Reliability Council 
(NERC) region with historical coordination policies.
    (b) The PSA's referred to in the definition of electric regions in 
paragraph (a) of this section were first defined by the Federal Power 
Commission in 1936. The most recent reference to them is given in the 
1970 National Power Survey, Vol. 1, Pg. 1-3-16. In cases where a 
petitioner finds an ambiguity in a regional assignment, he shall consult 
with DOE for an official determination.

    Electric Region Groupings and FERC PSA's:
    1. Allegheny Power System (APS)--7, except Duquesne Light Company.
    2. American Electric Power System (AEP)--entire AEP System.
    3. New England Planning Pool (NEPOOL)--1, 2.
    4. New York Planning Pool (NYPP)--3, 4.
    5. Pennsylvania--New Jersey--Maryland interconnection (PJM)--5, 6.
    6. Commonwealth Edison Company--14.
    7. Florida Coordination Group (FCG)--24.
    8. Middle South Utilities--25.
    9. Southern Company--22, 23.
    10. Gulf States Group--35.
    11. Tennessee Valley Authority (TVA)--20.
    12. Virginia--Carolina Group (VACAR)--18, 21.
    13. Central Area Power Coordination Group (CAPCO)--Cleveland 
Electric Illuminating Company, Toledo Edison Company, Ohio Edison 
Company, Duquesne Light Company.
    14. Cincinnati, Columbus, Dayton Group (CCD)--Cincinnati Gas and 
Electric Company, Columbus and Southern Ohio Electric Company, Dayton 
Power and Light Company.
    15. Kentucky Group--19.
    16. Indiana Group--Indiana Utilities except AEP.
    17. Illinois--Missouri Group (ILLMO)--15, 40.
    18. Michigan Electric Coordinated Systems (MECS)--11.
    19. Wisconsin--Upper Michigan Group (WUMS)--13.
    20. Mid-Continent Area Power Pool (MAAP)--16, 17, 26, 27, 28.
    21. Missouri--Kansas Group (MOKAN)--24, 29.
    22. Oklahoma Group--33, 36.
    23. Texas Interconnected Systems (TIS)--37, 38.
    24. Rocky Mountain Power Pool (RMPP)--31, 32.
    25. Northwest Power Pool (NWPP)--30, 42, 43, 44, 45.
    26. Arizona--New Mexico Group--39, 48 within Arizona. in Nevada and 
California.
    27. Southern California--Nevada--47, 48.
    28. Northern California--Nevada--46.
    29. Alaska (non-interconnected systems to be considered 
separately)--49.
    30. Idaho--Utah Group--41.



PART 501--ADMINISTRATIVE PROCEDURES AND SANCTIONS--Table of Contents




                      Subpart A--General Provisions

Sec.
501.1  Purpose and scope.
501.2  Prepetition conference.
501.3  Petitions.
501.4--501.5  [Reserved]
501.6  Service.
501.7  General filing requirements.
501.8  [Reserved]
501.9  Effective date of orders or rules.
501.10  Order of precedence.
501.11  Address for filing documents.
501.12  Public files.
501.13  Appeal.
501.14  Notice to Environmental Protection Agency.

                          Subpart B  [Reserved]

  Subpart C--Written Comments, Public Hearings and Conferences During 
                       Administrative Proceedings

501.30  Purpose and scope.
501.31  Written comments.
501.32  Conferences (other than prepetition conferences).
501.33  Request for a public hearing.
501.34  Public hearing.
501.35  Public file.

    Subpart D--Subpoenas, Special Report Orders, Oaths and Witnesses

501.40  Issuance.

                 Subpart E--Prohibition Rules and Orders

501.50  Policy.

[[Page 14]]

501.51  Prohibitions by order--electing powerplants.
501.52  Prohibitions by order--certifying powerplants.
501.53--501.56  [Reserved]

                Subpart F--Exemptions and Certifications

501.60  Purpose and scope.
501.61  Certification contents.
501.62  Petition contents.
501.63  Notice of the commencement of an administrative proceeding on an 
          exemption petition.
501.64  Publication of notice of availability of tentative staff 
          analysis.
501.65  Publication of notice of availability of draft EIS.
501.66  OFE evaluation of the record, decision and order.
501.67  Petition redesignations.
501.68  Decision and order.
501.69  Judicial review.

  Subpart G--Requests for Modification or Rescission of a Rule or Order

501.100  Purpose and scope.
501.101  Proceedings to modify or rescind a rule or order.
501.102  OFE evaluation of the record, decision and order for 
          modification or rescission of a rule or order.
501.103  OFE decision.

                      Subpart H--Requests for Stay

501.120  Purpose and scope.
501.121  Filing and notice of petitions for stays.
501.122  Contents.
501.123  Evaluation of the record.
501.124  Decision and order.

                 Subpart I--Requests for Interpretation

501.130  Purpose and scope.
501.131  Filing a request for interpretation.
501.132  Contents of a request for interpretation.
501.133  DOE evaluation.
501.134  Issuance and effect of interpretations.

                           Subpart J--Rulings

501.140  Purpose and scope.
501.141  Criteria for issuance.
501.142  Modification or rescission.
501.143  Comments.

                         Subpart K--Enforcement

501.160  Purpose and scope.
501.161  Filing a complaint.
501.162  Contents of a complaint.
501.163  OFE evaluation.
501.164  Decision to initiate enforcement proceedings.
501.165  Commencement of enforcement proceedings.
501.166  Hearings and conferences.
501.167  Fuel use order.

  Subpart L--Investigations, Violations, Sanctions and Judicial Actions

501.180  Investigations.
501.181  Sanctions.
501.182  Injunctions.
501.183  Citizens suits.

      Subpart M--Use of Natural Gas or Petroleum for Emergency and 
                 Unanticipated Equipment Outage Purposes

501.190  Purpose and scope.
501.191  Use of natural gas or petroleum for certain unanticipated 
          equipment outages and emergencies defined in section 
          103(a)(15)(B) of the act.
501.192  [Reserved]

    Authority: 42 U.S.C. 7101 et seq.; 42 U.S.C. 8301 et seq.; 42 U.S.C. 
8701 et seq.; E.O. 12009, 42 FR 46267; 28 U.S.C. 2461 note.

    Source: 46 FR 59889, Dec. 7, 1981, unless otherwise noted.

    OMB Control No.: 1903-0075. See 46 FR 63209, Dec. 31, 1981.

    Editorial Note: Nomenclature changes to this part appear at 54 FR 
52891, Dec. 22, 1989.



                      Subpart A--General Provisions



Sec. 501.1  Purpose and scope.

    Part 501 establishes the procedures to be used in proceedings before 
DOE under parts 500-508 of this chapter except as otherwise provided.



Sec. 501.2  Prepetition conference.

    (a) Owners and operators of powerplants may request a prepetition 
conference with OFE for the purpose of discussing the applicability of 
10 CFR parts 503 and 504 to their situations and the scope of any 
exemption or other petition that OFE would accept as adequate for filing 
purposes.
    (b) The owner or operator who requests a prepetition conference may 
personally represent himself or may designate a representative to appear 
on his behalf. A prepetition conference or a request for a prepetition 
conference does not commence a proceeding before OFE.

[[Page 15]]

    (c) If OFE agrees to waive any filing requirements under 
Sec. 501.3(d), a memorandum of record stating this fact will be 
furnished to the potential petitioner within thirty (30) days after the 
conference. Copies of all applicable memoranda of record must be 
attached to any subsequently-filed petition.
    (d) A record of all prepetition conferences will be included in the 
public file. OFE may provide for the taking of a formal transcript of 
the conference and the transcript will be included in the public file.
[46 FR 59889, Dec. 7, 1981, as amended at 54 FR 52891, Dec. 22, 1989]



Sec. 501.3  Petitions.

    (a) Filing of petitions. Petitions for exemptions are to be filed 
with OFE at the address given in Sec. 501.11.
    (b) Acceptance of petition. (1) Upon acceptance (as distinguished 
from filing) of the petition, OFE shall publish in the Federal Register 
a Notice of Acceptance of Petition or, in the case of an exemption by 
certification, a Notice of Acceptance and Availability of Certification, 
signifying that an exemption proceeding has commenced.
    (2) OFE will notify each petitioner in writing within thirty (30) 
days of receipt of the petition that it has been accepted or rejected 
and, if rejected, the reasons therefor.
    (3) A petition, including supporting documents, will be accepted if 
the information contained appears to be sufficient to support an OFE 
determination. Additional information may be requested during the course 
of the proceeding, and failure to respond to such a request may 
ultimately result in denial of the requested exemption.
    (4) Acceptance of petition does not constitute a determination that 
the requested exemption will be granted.
    (c) Rejection of petition. (1) OFE will reject a petition if it does 
not meet the information of certification requirements established for 
the relevant exemptions under parts 503 and 504 of this chapter. A 
written explanation of the reasons for rejection will be furnished with 
notification of the rejection.
    (2) A timely-filed petition rejected as inadequate will not be 
rendered untimely if resubmitted in amended form within ninety (90) days 
of the date of rejection.
    (3) OFE will, within thirty (30) days of receipt of a petition that 
is found to be incomplete due to minor deficiencies, notify the 
petitioner of the deficiencies and allow ninety (90) days from the date 
of notification to cure the specified deficiencies. The failure to cure 
the deficiencies during this time may result in denial of the requested 
exemption.
    (d) Waiver of filing requirements. Upon its own motion or at the 
request of a petitioner, OFE may waive some or all of the regulatory 
requirements if the purposes of FUA would be best achieved by doing so.



Secs. 501.4--501.5  [Reserved]



Sec. 501.6  Service.

    (a) DOE will serve all orders, notices interpretations or other 
documents that it is required to serve, personally or by mail, unless 
otherwise provided in these regulations.
    (b) DOE will consider service upon a petitioner's duly authorized 
representative to be service upon the petitioner.
    (c) Service by mail is effective upon mailing.
[54 FR 52891, Dec. 22, 1989]



Sec. 501.7  General filing requirements.

    Except as indicated otherwise, all documents required or permitted 
to be filed with OFE or DOE in connection with a proceeding under parts 
503 and 504 shall be filed in accordance with the following provisions:
    (a) Filing of documents. (1) Documents including, but not limited 
to, applications, requests, complaints, petitions (including petitions 
for exemption), and other documents submitted in connection therewith, 
filed with OFE are considered to be filed upon receipt.
    (2) Notwithstanding the provisions of paragraph (a)(1) of this 
section, an application for modification or rescission in accordance 
with subpart G of this part, a reply to a notice of violation, a 
response to a denial of a claim of confidentiality, or a comment 
submitted in connection with any proceeding transmitted by registered or 
certified mail and addressed to the appropriate

[[Page 16]]

office is considered to be filed upon mailing.
    (3) Timeliness. Documents are to be filed with the appropriate DOE 
or OFE office listed in Sec. 501.11. Documents that are to be considered 
filed upon receipt under paragraph (a)(1) of this section and that are 
received after regular business hours are deemed filed on the next 
regular business day. Regular business hours are 8 a.m. to 4:30 p.m.
    (4) Computation of time. In computing any period of time prescribed 
or allowed by FUA, these regulations or by an order, the day of the act, 
event, or default from which the designated period of time begins to run 
is not to be included. The last day of the period so computed is to be 
included unless it is a Saturday, Sunday, or Federal legal holiday in 
which event the period runs until the end of the next day that is 
neither a Saturday, Sunday, nor a Federal legal holiday.
    (5) Additional time after service by mail. Whenever a person is 
required to perform an act, to cease and desist therefrom, or to 
initiate a proceeding under this part within a prescribed period of time 
and the order, notice, interpretation or other document is served by 
mail, three (3) days shall be added to the prescribed period.
    (6) Extension of time. When a document is required to be filed 
within a prescribed time, an extension of time to file may be granted 
upon good cause shown.
    (7) Signing. All applications, petitions, requests, comments, and 
other documents that are required to be signed, shall be signed by the 
person filing the document or a duly authorized representative. Any 
application, petition, request, complaint, or other document filed by a 
duly authorized representative shall contain a statement by such person 
certifying that he is a duly authorized representative, unless an OFE 
form otherwise requires. (A false certification is unlawful under the 
provisions of 18 U.S.C. 1001 (1970).)
    (8) Labeling. An application, petition, or other request for action 
by DOE or OFE should be clearly labeled according to the nature of the 
action involved, e.g., ``Petition for Temporary Exemption;'' ``Petition 
for Extension (or Renewal) of Temporary Exemption,'' both on the 
document and on the outside of the envelope in which the document is 
transmitted.
    (9) Obligation to supply information. A person who files an 
application, petition, complaint, or other request for action is under a 
continuing obligation during the proceeding to provide DOE or OFE with 
any new or newly discovered information that is relevant to that 
proceeding. Such information includes, but is not limited to, 
information regarding any other application, petition, complaint, or 
request for action that is subsequently filed by that person with any 
DOE office or OFE office.
    (10) The same or related matters. In filing a petition or other 
document requesting OFE action, the person must state whether, to the 
best of his knowledge, the same or a related issue, act or transaction 
has been or presently is being considered or investigated by a DOE 
office, other Federal agency, department or instrumentality, or a State 
or municipal agency.
    (11) Request for confidential treatment. (i) If any person filing a 
document with DOE or OFE claims that some or all of the information 
contained in the document is exempt from the mandatory public disclosure 
requirements of the Freedom of Information Act (5 U.S.C. 552); is 
information referred to in 18 U.S.C. 1905; or is otherwise exempt by law 
from public disclosure, and if such person requests DOE or OFE not to 
disclose such information, such person shall make a filing in accordance 
with paragraph (b)(2) of this section. The person shall indicate in the 
original document that it is confidential or contains confidential 
information and may file a statement specifying the justification for 
non-disclosure of the information for which confidential treatment is 
claimed. If the person states that the information comes within the 
exception in 5 U.S.C. 552(b)(4) for trade secrets and commercial or 
financial information, such person shall include a statement specifying 
why such information is privileged or confidential. If a document is not 
so filed, OFE may assume that there is no objection to public disclosure 
of the document in its entirety, unless the person subsequently files a 
claim of confidentiality

[[Page 17]]

prior to public disclosure of the document.
    (ii) DOE or OFE retains the right to make its own determination with 
regard to any claim of confidentiality. Notice of the decision by DOE or 
OFE to deny such claim, in whole or in part, and an opportunity to 
respond or take other appropriate action to avoid release shall be given 
to a person claiming confidentiality of information no less than seven 
(7) days prior to its public disclosure.
    (iii) The above provisions in paragraphs (a)(11) (i) and (ii) of 
this section do not apply to information submitted on OFE forms that 
contain their own instructions concerning the treatment of confidential 
information.
    (12) Separate applications, petitions or requests. Each application, 
petition, or request for DOE or OFE action shall be submitted as a 
separate document, even if the applications, petitions, or requests deal 
with the same or a related issue, act, or transaction, or are submitted 
in connection with the same proceeding.
    (b) Number of documents to be filed. (1) A petitioner must file an 
executed original and fourteen (14) copies of all exemption requests 
submitted to DOE. For certification requests, an original and three (3) 
copies shall be submitted.
    (2) Where the petitioner requests confidential treatment of some or 
all of the information submitted, an original and eleven (11) copies of 
the confidential document and three (3) copies of the document with 
confidential material deleted must be filed.
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 15314, Apr. 9, 1982; 54 
FR 52891, Dec. 22, 1989]



Sec. 501.8  [Reserved]



Sec. 501.9  Effective date of orders or rules.

    (a) When OFE issues a rule or order imposing a prohibition or 
granting an exemption (or permit) under FUA, the rule or order will be 
effective sixty (60) days after publication in the Federal Register, 
unless it is stayed, modified, suspended or rescinded.
    (b) If the appropriate State regulatory authority has not approved a 
powerplant for which a petition has been filed, such exemption, to the 
extent it applies to the prohibition under section 201 of FUA against 
construction without the capability of using coal or another alternate 
fuel, shall not take effect until all approvals required by such State 
regulatory authority which relate to construction have been obtained.
[54 FR 52891, Dec. 22, 1989]



Sec. 501.10  Order of precedence.

    If there is any conflict or inconsistency between the provisions of 
this part and any other provisions or parts of this chapter, except for 
general procedures which are unique to part 515 of this chapter, the 
provisions of this part will control respect to procedure.
[54 FR 52891, Dec. 22, 1989]



Sec. 501.11  Address for filing documents.

    Send all petitions, self-certifications and written communications 
to the following address: Office of Fossil Energy, Office of Fuels 
Programs, Coal and Electricity Division, Mail Code FE-52, 1000 
Independence Avenue, SW., Washington, DC 20585.
[54 FR 52891, Dec. 22, 1989]



Sec. 501.12  Public files.

    DOE will make available at the Freedom of Information reading room, 
room 1E190, 1000 Independence Avenue SW., Washington, DC for public 
inspection and copying any information required by statute and any 
information that OFE determines should be made available to the public.
[54 FR 52891, Dec. 22, 1989]



Sec. 501.13  Appeal.

    There is no administrative appeal of any final administrative action 
to which this part applies.



Sec. 501.14  Notice to Environmental Protection Agency.

    A copy of any proposed rule or order that imposes a prohibition, 
order that imposes a prohibition, or a petition for an exemption or 
permit, shall be transmitted for comments, if any, to the Administrator 
and the appropriate Regional Administrator of the Environmental 
Protection Agency (EPA). The

[[Page 18]]

Administrator of EPA shall be given the same opportunity to comment and 
question as is given other interested persons.
[54 FR 52891, Dec. 22, 1989]



                          Subpart B  [Reserved]



  Subpart C--Written Comments, Public Hearings and Conferences During 
                       Administrative Proceedings



Sec. 501.30  Purpose and scope.

    This subpart establishes the procedures for requests for and the 
conduct of public hearings; for submission of written comments; and for 
requests for and conduct of conferences pursuant to an administrative 
proceeding before OFE. Hearings shall be convened at the request of any 
interested person, in accordance with section 701(d) of FUA, and shall 
be held at a time and place to be decided by the Presiding Officer.



Sec. 501.31  Written comments.

    (a) New facilities. Except as may be provided elsewhere in these 
regulations, OFE shall provide a period of at least forty-five (45) 
days, commencing with publication of the Notice of Acceptance of 
Petition, of in the case of certification exemptions, Notice of 
Acceptance and availability of Certification, in the Federal Register in 
accordance with Sec. 501.63(a), for submission of written comments 
concerning a petition for an exemption. Written comments shall be made 
in accordance with Sec. 501.7.
    (b) Existing facilities. Except as may be provided elsewhere in 
these regulations, OFE shall provide a period of at least 45 days for 
submission of written comments concerning a proposed prohibition rule or 
order or a petition for a permit. In the case of a proposed prohibition 
rule or order issued to an existing electing powerplant, OFE shall also 
provide for a period of at least 45 days for submission of written 
comments concerning a Tentative Staff Analysis. This period shall 
commence on the day after publication of the Notice of Availability of 
the Tentative Staff Analysis in the Federal Register. In the case of 
prohibition order proceedings for certifying powerplants under section 
301 of FUA, as amended, OFE shall provide a period of at least 45 days, 
beginning the day after the Notice of Acceptance of certification is 
published, for submission of written comments concerning the 
certification and OFE's proposed prohibition order, and requests for 
public hearings. Prohibition order proceedings under section 301, as 
amended by OBRA, will have only one period of 45 days, since no 
Tentative Staff Analysis will be prepared. The comment period may be 
extended by OFE in accordance with Sec. 501.7. See Sec. 501.52(b) of 
this part for further information with respect to the comment period. 
Written comments shall be filed in accordance with Sec. 501.7.

(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3289 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981 (Pub. L. 97-35); E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 50848, Nov. 10, 1982; 54 
FR 52892, Dec. 22, 1989]



Sec. 501.32  Conferences (other than prepetition conferences).

    (a) At any time following commencement of a proceeding before OFE, 
an interested person may request a conference with the staff of OFE to 
discuss a petition, permit or any other issue pending before OFE. The 
request for a conference should generally be in writing and should 
indicate the subjects to be covered and should describe the requester's 
interest in the proceeding. Conferences held after the commencement of 
an administrative proceeding before OFE shall be convened at the 
discretion of OFE or the Presiding Officer.
    (b) When OFE convenes a conference in accordance with this section, 
any person invited may present views as to the issue or issues involved. 
Documentary evidence may be submitted at the conference and such 
evidence, to the extent that it is not deemed to be confidential, will 
be included in the administrative record. OFE will not normally have a 
transcript of the conference prepared but may do so at its discretion.

[[Page 19]]

    (c) Because a conference is solely for the exchange of views 
incident to a proceeding, there will be no formal report or findings by 
OFE unless OFE in its discretion determines that the preparation of a 
report or findings would be advisable. OFE will, however, place in the 
public file a record of any conference.



Sec. 501.33  Request for a public hearing.

    (a) New facilities. In the case of a petition for an exemption under 
title II of FUA, any interested person may submit a written request that 
OFE convene a public hearing in accordance with section 701 of FUA no 
later than forty-five (45) days after publication of either the Notice 
of Acceptance of a petition, or in the case of a certification 
exemption, the publication of the Notice of Acceptance of Certification. 
This time period may be extended at the discretion of OFE.
    (b) Existing powerplants. In the case of a petition for an exemption 
from a prohibition imposed by a final rule or order issued by OFE to an 
electing powerplant under former sections of title III of FUA or a 
petition for a permit under Sec. 504.1, any interested person may submit 
a written request that OFE convene a public hearing in accordance with 
section 701 of FUA within 45 days after the notice of the filing of a 
petition is published in the Federal Register. In the case of a proposed 
prohibition rule or order issued to an electing powerplant under former 
section 301, the 45 day period in which to request a public hearing 
shall commence upon the publication of the Notice of Availability of the 
Tentative Staff Analysis. In the case of a proposed prohibition order to 
be issued to certifying powerplants under section 301 of FUA, as 
amended, the 45 day period in which to request a public hearing 
commences upon publication of the Notice of Acceptance of Certification. 
This time limit may be extended at the discretion of OFE in accordance 
with Sec. 501.7.
    (c) Contents of request. A request for a public hearing must be in 
writing and must include a description of the requesting party's 
interest in the proceeding and a statement of the issues involved. The 
request should, to the extent possible, identify any witnesses that are 
to be called, summarize the anticipated testimony to be given at the 
hearing, and outline questions that are to be posed.

(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981 (Pub. L. 97-35); E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 50848, Nov. 10, 1982; 54 
FR 52892, Dec. 22, 1989]



Sec. 501.34  Public hearing.

    (a) A public hearing under this subsection is for the purpose of 
insuring that all issues are fully and properly developed, but is not a 
formal adjudicatory hearing subject to the provisions of 5 U.S.C. 554 
and 556.
    (b) Opportunity to be heard at a public hearing. (1) Any interested 
person, may request, and OFE will provide, an opportunity to present 
oral or written data, views and arguments at a public hearing on any 
proposed prohibition rule or order, or on any petition for an exemption 
or permit. An interested person may file a request to be listed as a 
party to a hearing on the service list prepared by the Presiding Officer 
pursuant to Sec. 501.34(d) of this part.
    (2) Participants at the public hearing will have an opportunity to 
present oral or written data, views and arguments.
    (3) A request for a public hearing may be withdrawn by the requestor 
at any time. If other persons have requested to participate as parties 
in the public hearing, OFE may cancel the hearing only if all parties 
agree to cancellation. OFE will give notice, whenever possible, in the 
Federal Register of the cancellation of any hearings for which there has 
been prior notice.
    (c) Presiding Officer. OFE will appoint a Presiding Officer to 
conduct the public hearing.
    (d) Powers of the Presiding Officer. The Presiding Officer is 
responsible for orderly conduct of the hearing and for certification of 
the record of the public hearing. The Presiding Officer will not prepare 
any recommended findings,

[[Page 20]]

conclusions, or any other recommendations for disposition of a 
particular case, except those of a procedural nature. The Presiding 
Officer has, but is not limited to the following powers:
    (1) Administer oaths, affirmations and protective orders;
    (2) Issue administrative subpoenas and rule on motions to modify or 
withdraw subpoenas that he has issued;
    (3) Rule on questions as to relevance and materiality of evidence;
    (4) Regulate the course of the public hearing;
    (5) Hold conferences for the simplification of issues by consent of 
the parties;
    (6) Require submission of evidence in writing where appropriate;
    (7) Establish service lists;
    (8) Dispose of procedural requests and similar matters; and
    (9) Take other actions authorized by these rules.

The Presiding Officer may also limit the number of witnesses to be 
presented by any party and may impose reasonable time limits for 
testimony. The Presiding Officer shall establish and maintain a service 
list that contains the names and addresses of all parties to the OFE 
proceeding. At the time the Presiding Officer certifies the record, he 
will provide the staff of OFE with an index of the issues addressed in 
the record.
    (e) Notice. OFE will convene a public hearing only after publishing 
a notice in the Federal Register that states the time, place and nature 
of the public hearing.
    (f) Opportunity to question at the public hearing. At any public 
hearing requested pursuant to paragraph (b) of this section, with 
respect to disputed issues of material fact, OFE will provide any 
interested person an opportunity to question:
    (1) Other interested persons who make oral presentations;
    (2) Employees and contractors of the United States who have made 
written or oral presentations or who have participated in the 
development of the proposed rule or order or in the consideration of the 
petition for an exemption or permit; and
    (3) Experts and consultants who have provided information to any 
person who makes an oral presentation and which is contained in or 
referred to in such presentation.
    (g) OFE encourages persons who wish to question Government witnesses 
to submit their questions at least ten (10) days in advance of the 
hearing.
    (h) The Presiding Officer will allow questions by any interested 
person to be asked of those making presentations or submitting 
information, data, analyses or views at the hearing. The Presiding 
Officer may restrict questioning if he determines that such questioning 
is duplicative or is not likely to result in a timely and effective 
resolution of issues pending in the administrative proceeding for which 
the hearing is being conducted.
    (i) The Presiding Officer or OFE may exercise discretion to control 
a hearing by denying, temporarily or permanently, the privilege of 
participating in a particular OFE hearing if OFE finds, for example, 
that a person:
    (1) Has knowingly made false or misleading statements, either orally 
or in writing;
    (2) Has knowingly filed false affidavits or other writings;
    (3) Lacks the specific authority to represent the person seeking an 
OFE action; or
    (4) Has disrupted or is disrupting a hearing.
    (j) Evidence. (1) The Presiding Officer is responsible for orderly 
submission of information, data, materials, views or other evidence into 
the record of the public hearing. The Presiding Officer may exclude any 
evidence that is irrelevant, immaterial or unduly repetitious. Judicial 
rules of evidence do not apply.
    (2) Documentary material must be of a size consistent with ease of 
handling, transportation and filing, and a reasonable number of copies 
should be made available at the public hearing for the use of interested 
persons. An original and fourteen (14) copies shall be furnished to the 
Presiding Officer and one copy to each party listed on the service list. 
Large exhibits that are used during the hearing must be provided on no 
larger than 11\1/2\"x14" legal size paper if they are to be submitted 
into the hearing record.

[[Page 21]]

    (k) Hearing record. OFE will have a verbatim transcript made of the 
public hearing. The hearing record shall remain open for a period of 
fourteen (14) days following the public hearing, unless extended by OFE, 
during which time the participants at the hearing may submit additional 
written statements which will be made part of the administrative record 
and will be served by the Presiding Officer upon those parties listed on 
the service list. OFE may also request additional information, data or 
analysis following the hearing in order to resolve disputed issues in 
the record. If OFE receives or obtains any relevant information or 
evidence that is placed in the record after the close of the public 
hearing or comment period, it will so notify all participants, and allow 
an additional fourteen (14) days for submission of evidence in rebuttal. 
In addition, OFE may, in its discretion, re-open the hearing at the 
request of a party or participant, to permit further rebuttal of 
evidence or statements submitted to OFE and made part of the hearing 
record after the close of the hearing. The transcript, together with any 
written comments submitted in the course of the proceeding, will be made 
part of the record available for public inspection and copying at the 
OFE Public Information Office, as provided in Sec. 501.12.



Sec. 501.35  Public file.

    (a) Contents. The public file shall consist of the rule, order, or 
petition, with supporting data and supplemental information, and all 
data and information submitted by interested persons. Materials which 
are claimed by any party to be exempt from public disclosure under the 
Freedom of Information Act (5 U.S.C. 552) shall be excised from the 
public file provided OFE has made a determination that the material is 
confidential in accordance with Sec. 501.7(a)(11) of this part.
    (b) Availability. The public file shall be available for inspection 
at room 1E190, 1000 Independence Avenue SW., Washington, DC. Photocopies 
may be made available, on request. The charge for such copies shall be 
made in accordance with a written schedule.
[46 FR 59889, Dec. 7, 1981, as amended at 54 FR 52892, Dec. 22, 1989]



    Subpart D--Subpoenas, Special Report Orders, Oaths and Witnesses



Sec. 501.40  Issuance.

    (a) Authority. As authorized by section 711 of FUA and section 645 
of the DEOA, the Administrator, his duly authorized agent or a Presiding 
Officer may, in accordance with 10 CFR 205.8, sign, issue, and serve 
subpoenas; issue special report orders (SRO); administer oaths and 
affirmations; take sworn testimony, compel attendance of and sequester 
witnesses; control the dissemination of any record of testimony taken 
pursuant to this section; and subpoena and reproduce books, papers, 
correspondence, memoranda, contracts, agreements, or other relevant 
records of tangible evidence including, but not limited to, information 
retained in computerized or other automated systems in the possession of 
the subpoenaed person.
    (b) Petition to withdraw or modify. Prior to the time specified for 
compliance in the subpoena or SRO, the person to whom the subpoena or 
SRO is directed may apply for its withdrawal or modification as provided 
in 10 CFR 205.8, except that if the subpoena or SRO is issued by a duly 
appointed Presiding Officer, the request to withdraw or modify must be 
addressed to that Presiding Officer, and its grant or denial will be 
decided by him.



                 Subpart E--Prohibition Rules and Orders



Sec. 501.50  Policy.

    Except in conjunction with a prohibition order requested by the 
intended recipient, OFE shall not propose to prohibit or prohibit by 
rule or order the use of petroleum or natural gas either as a primary 
energy source or in amounts in excess of the minimum amount necessary to 
maintain reliability of operation consistent with reasonable fuel 
efficiency in an existing installation unless and until OFE adopts rules 
establishing regulatory requirements governing the issuance of such 
orders and rules in accordance with the applicable procedural and 
substantive requirements of law.


[[Page 22]]


(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981 (Pub. L. 97-35); E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[47 FR 50848, Nov. 10, 1982]



Sec. 501.51  Prohibitions by order--electing powerplants.

    (a) OFE may prohibit by order the use of petroleum or natural gas as 
a primary energy source or in amounts in excess of the minimum amount 
necessary to maintain reliability of operation consistent with 
reasonable fuel efficiency in an electing powerplant, if:
    (1) That facility has not been identified as a member of a category 
subject to a final rule at the time of the issuance of such order; and
    (2) The requirements of Sec. 504.6 have been met.
    (b) Notice of order and public participation. (1) OFE may hold a 
conference with the proposed order recipient prior to issuing the 
proposed order.
    (2) Pursuant to section 701 of FUA, prior to the issuance of a final 
order to an electing powerplant, OFE shall publish a proposed order in 
the Federal Register together with a statement of the reasons for the 
order. In the case of a proposed order that would prohibit the use of 
petroleum or natural gas as a primary energy source, the finding 
required by former section 301(b)(1) of the Act shall be published with 
such proposed order.
    (3) OFE shall provide a period for the submission of written 
comments of at least three months after the date of the proposed order. 
During this period, the recipient of the proposed order and any other 
interested person must submit any evidence that they have determined at 
that time to support their respective positions as to each of the 
findings that OFE is required to make under section 301(b) of the Act. A 
proposed order recipient may submit additional new evidence at any time 
prior to the close of the public comment period which follows 
publication of the Tentative Staff Analysis or prior to the close of the 
record of any public hearing, whichever occurs later. A request by the 
proposed order recipient for an extension of the three-month period may 
be granted at OFE's discretion.
    (4) Subsequent to the end of the comment period, OFE will issue a 
notice of whether OFE intends to proceed with the prohibition order 
proceeding.
    (5) An owner or operator of a facility that may be subject to an 
order may demonstrate prior to issuance of a final prohibition order 
that the facility would qualify for an exemption if the prohibition had 
been established by rule. OFE will not delay the issuance of a final 
prohibition order or stay the effective date of such an order for the 
purpose of determining whether a proposed order recipient qualifies for 
a particular exemption unless the demonstration or qualification is 
submitted prior to or during the second three-month comment period, 
commencing after issuance of a notice of intention to proceed, or unless 
materials submitted after the period (i) could not have been submitted 
during the period through the exercise of due diligence, (ii) address 
material changes in fact or law occurring after the close of the period, 
or (iii) consist of amplification or rebuttal occasioned by the 
subsequent course of the proceeding. A request by the proposed order 
recipient for an extension of this time period may be granted at OFE's 
discretion.
    (6) Subsequent to the end of the second three (3) month period, OFE 
will, if it intends to issue a final prohibition order, prepare and 
issue a Notice of Availability of a Tentative Staff Analysis. Interested 
persons wishing a hearing must request a hearing within forty-five (45) 
day after issuance of the Notice of Availability of the Tentative Staff 
Analysis. During this forty-five (45) days period, interested persons 
may also submit written comments on the Tentative Staff Analysis.
    (7) If a hearing has been requested, OFE shall provide interested 
persons with an opportunity to present oral data, views and arguments at 
a public hearing held in accordance with subpart C of this part. The 
hearing will consider the findings which OFE must make in order to issue 
a final prohibition order and any exemption for which the proposed order 
recipient submitted its demonstration in accordance with paragraph 
(b)(5) of this section.

[[Page 23]]

    (8) Upon request by the recipient of the proposed prohibition order, 
the combined public comment periods provided for in this section may be 
reduced to a minimum of forty-five (45) days from the time of 
publication of the proposed order.
    (9) OFE may terminate a prohibition order proceeding at any time 
prior to the date upon which a final order shall become effective. 
Should OFE terminate the proceeding, it will notify the proposed order 
recipient, and publish a notice in the Federal Register.
    (c) Decision to issue a final order. (1) OFE will base its 
determination to issue an order on consideration of the whole record or 
those parts thereof cited by a party and supported by and in accordance 
with reliable, probative and substantial evidence.
    (2) OFE shall include in the final order a written statement of the 
pertinent facts, a statement of the basis upon which the final order is 
issued, a recitation of the conclusions regarding the required findings 
and qualifications for exemptions. The final order shall state the 
effective date of the prohibition contained therein. If it is 
demonstrated that the facility would have been granted a temporary 
exemption, the effective date of the prohibition contained in the final 
order shall be delayed until such time as the temporary exemption would 
have terminated. If it is demonstrated that a facility will need a 
period of time to comply with the final order, the effective date of the 
prohibition contained in the final order may be delayed, in OFE's 
discretion, so as to allow an order recipient to comply with the final 
order.
    (3) OFE will enclose with a copy of the final order, where 
appropriate, a schedule of steps that should be taken by a stated date 
(a compliance schedule) to ensure that the affected facility will be 
able to comply with the prohibitions stated in the order by the 
effective date of the prohibition contained in the final order. The 
compliance schedule may require the affected person to take steps with 
regard to a unit 60 days after service of the final order.
    (4) A copy of the final order and a summary of the basis therefore 
will be published in the Federal Register. The order will become 
effective 60 days after publication in the Federal Register.
    (d) Request for order. (1) A proceeding for issuance of a 
prohibition order to a specific unit may be commenced by OFE, in its 
sole discretion, in response to a request for an order filed by the 
owner or operator of a facility.
    (2) A petition requesting OFE to commence a prohibition order 
proceeding should include the following information for all units to be 
covered by the prohibition order:
    (i) A statement of the reasons the owner or operator is seeking the 
issuance of a prohibition order; and
    (ii) Sufficient information for OFE to make the findings required by 
section 301(b) of FUA.
    (3) If OFE determines to accept the request, OFE shall publish a 
proposed order in the Federal Register together with a statement of the 
reasons for the order.

(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Energy Supply and Environmental Coordination Act 
of 1974; Pub. L. 93-319, as amended by Pub. L. 94-163, Pub. L. 95-70, 
(15 U.S.C. 719 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981, (Pub. L. 97-35); E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 17042, Apr. 21, 1982; 47 
FR 50848, Nov. 10, 1982; 54 FR 52892, Dec. 22, 1989]



Sec. 501.52  Prohibitions by order--certifying powerplants.

    (a) OFE may prohibit by order the use of petroleum or natural gas as 
a primary energy source or in amounts in excess of the minimum amount 
necessary to maintain reliability of operation consistent with 
maintaining reasonable fuel efficiency in an existing powerplant if the 
owner or operator of the powerplant certifies, and OFE concurs in such 
certification in accordance with the requirements of Secs. 504.5, 504.6 
and 504.8.
    (b) Notice of order and participation. (1) OFE may hold a conference 
with the proposed order recipient, at the recipient's election, prior to 
issuing the proposed order. The conference may resolve any questions 
regarding the certification required by section 301 of the Act, as 
amended, and Secs. 504.5, 504.6, and

[[Page 24]]

504.8, and OFE's review and concurrence therein.
    (2) Pursuant to section 701(b) of FUA, prior to the issuance of a 
final order to a certifying powerplant owner or operator, OFE must 
publish in the Federal Register, a proposed prohibition order stating 
the reasons for such order. OFE will review all of the information 
submitted by a proposed order recipient within 60 days after receipt by 
OFE. If the certification is complete, OFE will, within 30 days after 
the end of the 60 day review period, publish in the Federal Register a 
Notice of Acceptance of certification together with a proposed 
prohibition order stating therein the reasons for such order. This 
commences the prohibition order proceeding. If OFE does not believe it 
is able to concur in the certification, OFE shall notify the proposed 
order recipient and shall publish a Notice of Proposed Non-Concurrence 
in the Federal Register within 30 days after the end of the 60 day 
review period. If OFE finds that the certification with compliance 
schedule is incomplete, OFE will notify the proposed prohibition order 
recipient as to the deficiencies, and provide an additional period of 30 
days for the certification to be amended and resubmitted. If a complete 
certification is not submitted within this period, the proceeding shall 
be terminated in accordance with Sec. 501.52(b)(5). OFE will notify the 
proposed order recipient and other parties to the proceeding of the 
termination and publish a notice in the Federal Register. OFE, on its 
own motion, may extend any period of time by publishing a notice to that 
effect in the Federal Register.
    (3) The publication of the Notice of Acceptance or Notice of 
Proposed Non-Concurrence commences a period of 45 days during which 
interested persons may submit written comments or request a public 
hearing. During this period, the recipient of the proposed order and any 
other interested person may submit any evidence that they have available 
relating to the proposed order, the certification or the concurrence 
that OFE must make. A proposed order recipient may submit additional new 
evidence at any time prior to the close of the public comment period 
which follows the commencement of the proceeding or prior to the close 
of the record of any public hearing, whichever occurs later. A request 
for an extension of the 45 day period may be granted at OFE's 
discretion. In the case of a Notice of Acceptance, as set forth in 
Sec. 504.9, no final prohibition order can be issued until any necessary 
environmental review pursuant to the National Environmental Policy Act 
of 1969, 42 U.S.C 4321 et seq. (NEPA) has been completed. Upon 
completion of the NEPA review and unless OFE determines on the basis of 
the record of the proceeding that the certification fails to meet the 
requirements of Secs. 504.5, 504.6, and 504.8, OFE shall publish a final 
prohibition order, together with the information required by paragraph 
(c) of this section. In the case of a Notice of Proposed Non-
Concurrence, at the end of the 45 day comment period, OFE will notify 
the proposed order recipient and parties to the proceeding and publish a 
final Notice of Non-Concurrence in the Federal Register, if OFE 
determines it cannot concur in the certification based upon additional 
information submitted during the proceeding. If, at the end of the 45 
day period, OFE believes it can concur in the certification, OFE will 
notify the proposed order recipient and parties to the proceeding and 
publish a Notice of Acceptance followed by a new 45 day comment period.
    (4) If a hearing has been requested, OFE shall provide interested 
persons with an opportunity to present oral data, views and arguments at 
a public hearing held in accordance with subpart C of this part. The 
hearing may consider, among other matters, the sufficiency of the 
certification of the owner or operator of the powerplant required by 
section 301 of FUA, as amended, and Secs. 504.5, 504.6, and 504.8 of 
these regulations.
    (5) OFE may terminate a prohibition order proceeding at any time 
prior to the date upon which a final prohibition order is issued 
whenever OFE believes, from any information contained in the record of 
the proceeding, that the certification does not meet the requirements of 
section 301 of the Act, as amended, or Secs. 504.5, 504.6, and 504.8 of 
these regulations. If OFE terminates

[[Page 25]]

the proceeding or publishes a final Notice of Non-Concurrence, or the 
proposed order recipient fails to submit a complete certification, OFE 
will notify the proposed order recipient and other parties to the 
proceeding and publish a notice in the Federal Register. In such event, 
the proposed order recipient may submit a new certification under any 
provision of section 301 of the Act, as amended, at a later date. 
Specifically, a Notice of Non-Concurrence under either section 301(b) or 
301(c) shall not affect a proposed order recipient's ability to make a 
certification under the other subsection.
    (c) Record and decision to issue a final order. (1) OFE will base 
its determination to issue an order on consideration of the whole record 
or those parts thereof cited by a party and supported by and in 
accordance with reliable, probative and substantial evidence.
    (2) OFE shall include in the final order a written statement of the 
basis upon which the final order is issued, and its concurrence in the 
required certification. A copy of the final order and a summary of the 
basis therefor will be published in the Federal Register. While the 
prohibition order is final for purposes of judicial review under section 
702 of FUA, the prohibitions contained in the final order shall not 
become effective for purposes of amendment under section 301(d) of FUA, 
as amended, and Sec. 501.52(d) of these regulations until the effective 
date of the prohibitions stated in the order, or, where the order is 
subject to one or more conditions subsequent listed in the prohibition 
order compliance schedule, until all its conditions are met.
    (d) Amendment to certifications under Secs. 504.5 and 504.6. The 
proposed prohibition order recipient may amend its compliance schedule 
under Sec. 504.5(d), or its certification under section 301 of FUA, as 
amended, and Secs. 504.5, 504.6 and 504.8 of these regulations in order 
to take into account changes in relevant facts and circumstances at any 
time prior to the effective date of the prohibitions contained in the 
final prohibition order.
    (e) Rescission of prohibition orders. The rescission or modification 
of final prohibition orders issued to existing electric powerplants will 
be governed by the procedure in Sec. 501.101 of these regulations.

(Approved by the Office of Management and Budget under control number 
1903-0077)


(Department of Energy Organization Act, Pub. L. 95-91, 42 U.S.C. 7101 et 
seq.; Energy Supply and Environmental Coordination Act of 1974, Pub. L. 
93-319, as amended by Pub. L. 94-163, Pub. L. 95-70, and Pub. L. 95-620, 
15 U.S.C. 719 et seq.; Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, as amended by Pub. L. 97-35, 42 U.S.C. 8301 et seq.; 
Omnibus Budget Reconciliation Act of 1981, (Pub. L. 97-35))
[47 FR 17042, Apr. 21, 1982]



Secs. 501.53--501.56  [Reserved]



                Subpart F--Exemptions and Certifications



Sec. 501.60  Purpose and scope.

    (a) (1) If the owner or operator plans to construct a new baseload 
powerplant and the unit will not be in compliance with the prohibition 
contained in section 201(a) of FUA, this subpart establishes the 
procedures for filing a petition requesting a temporary or permanent 
exemption under, respectively, sections 211 and 212 of FUA.
    (2) Self-certification alternative. If the owner or operator plans 
to construct a new baseload powerplant not in compliance with the 
prohibitions contained in section 201(a) of FUA, this subpart 
establishes the procedures for the filing of a self-certification under 
section 201(d) of FUA.
    (3) If the petitioner owns, operates or controls a new powerplant, 
this subpart provides the procedures for filing a petition requesting 
extension of a temporary exemption granted under sections 211 or 311 of 
FUA.
    (4) If the petitioner owns, operates or controls a new or existing 
powerplant or MFBI, this subpart provides the procedures for filing a 
petition requesting extension of a temporary exemption granted under 
section 211 or section 311 of FUA.
    (b) If the petition is for an extension of a temporary exemption, 
the petitioner must apply for this extension at least (90) days prior to 
the expiration of the temporary exemption.


[[Page 26]]


(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981, Pub. L. 97-35; E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 50849, Nov. 10, 1982; 54 
FR 52892, Dec. 22, 1989]



Sec. 501.61  Certification contents.

    (a) A self-certification filed under section 201(d) of FUA should 
include the following information:
    (1) Owner's name and address.
    (2) Operator's name and address.
    (3) Plant location and address.
    (4) Plant configuration (combined cycle, simple cycle, topping 
cycle, etc.)
    (5) Design capacity in megawatts (MW).
    (6) Fuel(s) to be used by the new facility.
    (7) Name of utility purchasing electricity from the proposed 
facility and percent of total output to be sold.
    (8) Date unit is expected to be placed in service.
    (9) Certification by an officer of the company or his designated 
representative certifying that the proposed facility:
    (i) Has sufficient inherent design characteristics to permit the 
addition of equipment (including all necessary pollution devices) 
necessary to render such electric powerplant capable of using coal or 
another alternate fuel as its primary energy source; and
    (ii) Is not physically, structurally, or technologically precluded 
from using coal or another alternate fuel as its primary energy source.
    (b) A self-certification filed pursuant to Sec. 501.61(a) shall be 
effective to establish compliance with the requirement of section 201(a) 
of FUA as of the date filed.
    (c) OFE will publish a notice in the Federal Register within fifteen 
days reciting that the certification has been filed. Publication of this 
notice does not serve to commence a public comment period.
    (d) OFE will notify the owner or operator within 60 days if 
supporting documentation is needed to verify the certification.
[54 FR 52892, Dec. 22, 1989]



Sec. 501.62  Petition contents.

    (a) A petition for exemption should include the following 
information:
    (1) The name of the petitioner;
    (2) The name and location of the unit for which an exemption is 
being requested;
    (3) The specific exemption(s) being requested; and
    (4) The name, address, and telephone number of the person who can 
supply further information.
    (b) Table of contents. Include only those sections contained in the 
petition.
    (c) Introduction. Include the following:
    (1) Description of the facility under consideration;
    (2) Description of the unit and fuel the petitioner proposes to burn 
in that unit, including the purpose of and need for the unit; and
    (3) Description of the operational requirements for the unit, 
including size (capacity, input and output in millions of Btu's per 
hour), output in terms of product or service to be supplied, fuel 
capability, and operating mode, including capacity factor, utilization 
factor, and fluctuations in the load.
    (d) General requirements. The evidence required under part 503 
subpart B for each exemption(s) for which the petitioner is applying:
    (1) No alternate power supply (Sec. 503.8):
    (2) Use of mixtures (Sec. 503.9);
    (3) Alternative site (Sec. 503.11);
    (4) Compliance Plan (Sec. 503.12);
    (5) Environmental impact analysis (Sec. 503.13);
    (6) Fuels search (Sec. 503.14).
    (e) Specific evidence. Evidence required for each exemption, 
segregated by exemption (part 503 subparts C and D).
    (f) References. (1) Specify the reports, documents, experts, and 
other sources consulted in compiling the petition. Cite these sources in 
accordance with acceptable documentation standards, and indicate the 
part of the petition to which they apply. If the source is unusual or 
little known, briefly describe its contents.

[[Page 27]]

    (2) Identify at the end of each section of the petition any 
information or any statement based, in whole or in part, on information 
or principles which, to petitioner's knowledge, represent significant 
innovations to or departures from generally accepted facts or 
principles.
    (g) Appendices. Include in the appendices material which the 
petitioner believes substantiates any analyses fundamental to the 
petition, materials prepared in connection with it, and any other 
documents, studies, or analyses which are believed to be relevant to the 
decision to be made. Also, include in the appendices copies of any forms 
submitted as part of the petition.
    (h) List of preparers. List the names with the qualifications and 
professional credentials of the principal contributors to the 
preparation of the petition. Indicate the sections or subject matters 
for which each principal contributor was responsible.
    (i) Incorporation by reference. Pertinent information may be 
incorporated into the petition by reference when this can be done 
without impeding agency and public review. Referenced materials must be 
specifically identified and their contents briefly described in the 
petition. To incorporate by reference, the material must be submitted 
with the petition, or if previously submitted, the office to which it 
was submitted must be identified in the petition. The petitioner cannot 
incorporate by reference material based on proprietary data not 
available to OFE for review.

(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981, Pub. L. 97-35; E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 50849, Nov. 10, 1982]



Sec. 501.63  Notice of the commencement of an administrative proceeding on an exemption petition.

    (a)(1) When a petition is accepted, OFE will publish in the Federal 
Register a Notice of Acceptance, or, in the case of a certification 
exemption, a Notice of Acceptance and Availability of Certification, 
signifying that an exemption proceeding has commenced. The notice will 
include a summary of the exemption petition, and publication will 
commence a public comment period of no less than forty-five (45) days 
during which interested parties may file written comments concerning the 
petition. In the case of a certification exemption, interested persons 
may request a public hearing during this period, pursuant to 
Sec. 501.33.
    (2) OFE will notify the appropriate State agency having apparent 
primary authority to permit or regulate the construction or operation of 
a powerplant that an exemption proceeding has commenced and will consult 
with this agency to the maximum extent practicable. Copies of all 
accepted petitions also will be forwarded to EPA, as provided in 
Sec. 501.14(a).
    (b) In processing an exemption petition, OFE shall comply with the 
requirements of the National Environmental Policy Act of 1969 (NEPA), 
the Council on Environmental Quality's implementing regulations, and the 
DOE guidelines implementing those regulations (45 FR 20694, Mar. 28, 
1980). Compliance with NEPA may involve the preparation of (1) an 
environmental impact statement (EIS) evaluating the grant or denial of 
an exemption petition, (2) an environmental assessment (EA), or (3) a 
memorandum to the file finding that the grant of the requested petition 
would not be considered a major federal action significantly affecting 
the quality of the human environment. If an EIS is required, OFE will 
publish in the Federal Register a Notice of Intent (NOI) to prepare an 
EIS as soon as practicable after commencement of the proceeding. A 
public meeting may be held pursuant to 40 CFR 1501.7 to solicit comments 
or suggestions on the structure and content of the EIS.
[46 FR 59889, Dec. 7, 1981, as amended at 54 FR 52893, Dec. 22, 1989]



Sec. 501.64  Publication of notice of availability of tentative staff analysis.

    OFE will publish in the Federal Register a Notice of the 
Availability of Tentative Staff Analysis for the noncertification 
temporary public interest

[[Page 28]]

exemption, for noncertification environmental exemptions, and for a 
cogeneration exemption based on the public interest. OFE will provide a 
public comment period of at least fourteen (14) days from the date of 
publication during which interested persons may make written comments 
and request a public hearing.



Sec. 501.65  Publication of notice of availability of draft EIS.

    A Notice of Availability of any draft EIS will be published in the 
Federal Register and comments thereon will also be solicited. Interested 
persons may request a hearing on any draft EIS. Such hearing must be 
requested within thirty (30) days of publication of the Notice of 
Availability of the draft EIS.
[54 FR 52893, Dec. 22, 1989]



Sec. 501.66  OFE evaluation of the record, decision and order.

    (a) The administrative record in a proceeding under this part will 
consist of the proposed prohibition order and/or petition and related 
documents, all relevant evidence presented at the public hearing, all 
written comments, and any other information in the possession of OFE and 
made a part of the public record of the proceeding. OFE will base its 
determination to issue a rule or order on consideration of the whole 
record, or those parts thereof cited by a party and supported by 
reliable, probative, and substantial evidence.
    (b) OFE may investigate and corroborate any statement in any 
petition, document, or public comments submitted to it. OFE also may use 
any relevant facts it possesses in its evaluation and may request 
submissions from third persons relevant to the petition or other 
documents. OFE also may request additional information, data, or 
analyses following a public hearing, if any, if this information is 
necessary to resolve disputed issues in the record. Any relevant 
information received by OFE following the hearing that is not declared 
to be confidential under Sec. 501.7(a)(11) shall be made part of the 
public record with opportunity provided for rebuttal.
    (c) OFE will notify all participants if, after the close of any 
public hearing or comment period, it receives or obtains any relevant 
information or evidence. Participants may respond to such information or 
evidence in writing within fourteen (14) days of such notification. If 
OFE finds that the additional information or evidence relates to 
material issues of disputed fact and may significantly influence the 
outcome of the proceeding, OFE shall reopen the hearing on the issue or 
issues to which the additional information or evidence relates.



Sec. 501.67  Petition redesignations.

    OFE, with the petitioner's approval, will redesignate an exemption 
petition if the petitioner qualifies for an exemption other than the one 
originally requested, even though he may not qualify for the specific 
exemption originally requested, or be entitled to the full exemption 
period provided by requested exemption. OFE shall give public notice of 
any redesignation of an exemption petition, and where a public hearing 
has been requested notice shall be given at least thirty (30) days prior 
to such hearing.



Sec. 501.68  Decision and order.

    (a)(1) OFE shall issue an order either granting or denying the 
petition for an exemption or permit within six (6) months after the end 
of the period for public comment and hearing applicable to any petition.
    (2) OFE may extend the six (6) month period for decision to a date 
certain by publishing notice in the Federal Register, and stating the 
reasons for such extension.
    (3) OFE will publish a final EIS at least thirty (30) days prior to 
take issuance of the final order in all cases where an EIS is required.
    (b)(1) OFE shall serve a copy of the order granting or denying a 
petition for exemption to the petitioner and all persons on the service 
list in cases involving a public hearing.
    (2) OFE shall publish any order granting or denying a petition under 
this subpart in the Federal Register together with a statement of the 
reasons for the grant or denial.

[[Page 29]]

    (c)(1) Any order granting or denying a petition for exemption shall 
be based upon consideration of the whole record or those parts thereof 
cited by a party and supported by, and in accordance with, reliable, 
probative and substantive evidence.
    (2) The denial of a petition for exemption shall be without 
prejudice to the petitioner's right to submit an amended petition. OFE 
may, however, reject the amended petition if it is not materially 
different from the denied petition.
    (d) OFE may design any terms and conditions included in any 
temporary exemption issued or extended under section 211 of FUA, to 
ensure, among other things, that upon expiration of the exemption the 
persons and powerplant covered by the exemption will comply with the 
applicable prohibitions under FUA. For purposes of the provision, the 
subsequent grant of a permanent exemption to the subject unit shall be 
deemed compliance with applicable prohibitions.

(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981, Pub. L. 97-35; E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[46 FR 59889, Dec. 7, 1981, as amended at 47 FR 50849, Nov. 10, 1982; 54 
FR 52893, Dec. 22, 1989]



Sec. 501.69  Judicial review.

    Any person aggrieved by any order issued by OFE under this subpart, 
must file, within sixty (60) days of publication of the final order in 
the Federal Register, a petition for judicial review in the United 
States Court of Appeals for the Circuit wherein he resides, or has his 
principal place of business. Exhaustion of administrative remedies for 
purposes of judicial review does not require filing a petition pursuant 
to subpart G for modification or rescission of the order to be reviewed.



  Subpart G--Requests for Modification or Rescission of a Rule or Order



Sec. 501.100  Purpose and scope.

    (a) Anyone may request that OFE commence a rulemaking proceeding 
pursuant to 5 U.S.C. 553(e); however, this subpart provides the 
procedures to be followed by--
    (1) An interested person seeking the modification or rescission of a 
prohibition by rule applicable to a new facility;
    (2) An owner or operator of a facility named in a prohibition by 
rule requesting the modification or rescission of that rule; or
    (3) An owner or operator subject to an exemption order or a specific 
prohibition imposed by order requesting the modification or a rescission 
of that order.
    (b) OFE also may commence a modification or rescission proceeding on 
its own initiative.



Sec. 501.101  Proceedings to modify or rescind a rule or order.

    (a) In response to a request duly filed by an interested person, OFE 
may commence a proceeding to modify or rescind a rule or order. If OFE 
determines that a request to modify or rescind a rule or order does not 
warrant commencement of a proceeding, it will deny the request and issue 
a brief statement of the reason(s) for the denial.
    (b) A request for modification or rescission of a rule or order must 
comply with the requirements of Sec. 501.7 and must be filed at the 
address set forth in Sec. 501.11.
    (c) Notice of the request for modification or rescission of an order 
must be given by the requester to each party to the original proceeding 
that resulted in the issuance of the original order for which 
modification or rescission is sought. If the number of parties to the 
original proceeding is too large to allow actual notice at a reasonable

[[Page 30]]

cost or within a reasonable time, a requester may ask that OFE give 
notice to the parties by publication in the Federal Register; however, 
this alternate notice does not bind OFE to commence a proceeding, if it 
subsequently determines that the request is not warranted.
    (d) If OFE determines to grant a request to commence a proceeding to 
rescind or modify a rule or order, or OFE on its own initiative, 
commences a proceeding for the modification or rescission of a rule or 
order, it will give notice, either by service of a written notice or by 
oral communication (which communication must be promptly confirmed in 
writing) to each person upon whom the order was served that OFE proposes 
to modify or rescind, or, alternatively, by publication of notice in the 
Federal Register. OFE will give a reasonable period of time for each 
person notified to file a written response.
    (e)(1) A copy of any written comments submitted to OFE under this 
subpart by a party to the original proceeding must also be sent to the 
requester. The party submitting such comments must certify to OFE that 
he has sent a copy of such comments to the requester.
    (2) OFE may notify other persons participating in the proceeding of 
the comments and provide an opportunity for those notified to respond.
    (f) A request for modification or rescission of a rule or order must 
contain a complete statement of all facts relevant to the action sought. 
The request must also include the names and addresses of all reasonably 
ascertainable persons who will be affected. Pertinent provisions 
contained in any documents believed to support a request may be briefly 
described, however, OFE reserves the right to obtain copies of any 
significant documents that will assist in making a determination on the 
merits of a request. The request must identify the specific order or 
rule for which modification or rescission is sought. A request should 
also indicate whether an informal conference will facilitate OFE's 
determination to commence, or not to commence a proceeding, or will 
assist OFE in making any determinations on material issues raised by the 
request.
    (g) A decision by OFE to commence a proceeding under this subpart 
does not entitle the requester to a public hearing on the request for 
modification or rescission. A public hearing may be held, however, if, 
in its discretion, OFE considers that a public hearing will advance its 
evaluation of the request.



Sec. 501.102  OFE evaluation of the record, decision and order for modification or rescission of a rule or order.

    (a) OFE will consider the entire administrative record in its 
evaluation of the decision and order for modification or rescission of a 
rule or order. OFE may investigate and corroborate any statement in the 
petition or related documents and may utilize in its evaluation any 
relevant facts obtained by its investigations. OFE may solicit or accept 
submissions from third persons relevant to any request under this 
subpart and all interested persons will be afforded an opportunity to 
respond to these submissions. OFE may, in its discretion and on its own 
initiative, convene a conference, if it considers that a conference will 
advance its evaluation of the request.
    (b) Criteria. Except where modification or rescission of a rule or 
order is initiated by OFE, OFE's decision to rescind or modify a rule or 
order will be based on a determination that there are significantly 
changed circumstances with respect to the applicability of a particular 
prohibition or exemption to the requester. OFE believes that there may 
be ``significantly changed circumstances'', if:
    (1) Significant material facts are subsequently discovered which 
were not known and could not have been known to the petitioner or to OFE 
at the time of the original proceeding;
    (2) A law, regulation, interpretation, ruling, order or decision on 
appeal that was in effect at the time of the proceeding upon which the 
rule or order is based and which, if it had been made known to OFE, 
would have been relevant to the proceeding and would have substantially 
altered the outcome is subsequently discovered; or
    (3) There has been a substantial change in the facts or 
circumstances upon which an outstanding and continuing order was based, 
which change

[[Page 31]]

occurred during the interval between issuance of the order and the date 
of filing of the request under this subpart, and was caused by force or 
circumstances beyond the requester's control.



Sec. 501.103  OFE decision.

    (a) OFE shall issue an appropriate rule or order after considering 
the request for modification or rescission of a rule or order and other 
relevant information received during the proceeding.
    (b) OFE will either grant or deny the request for modification or 
rescission and will briefly state the pertinent facts and legal basis 
for the decision.
    (c) OFE will serve the rule or order granting or denying the request 
for modification or rescission upon the requester, or, if the action was 
initiated by OFE, upon the owner or operator of the affected powerplant 
or installation. OFE will publish a notice of the issuance of a rule or 
order modifying or rescinding a rule or order in the Federal Register.



                      Subpart H--Requests for Stay



Sec. 501.120  Purpose and scope.

    (a) This subpart sets forth the procedures for the request and 
issuance of a stay of a rule or order or other requirement issued or 
imposed by OFE or these regulations but does not apply to the mandatory 
stays provided for in sections 202(b) and 301(a) of FUA. The application 
for a stay under this subpart will only be considered incidental to a 
proceeding on a request for modification or rescission of a final 
prohibition rule or order.
    (b) The petitioner must comply with all final and effective OFE 
orders, regulations, rulings, and generally applicable requirements 
unless a petition for a stay is granted or is applicable under FUA.



Sec. 501.121  Filing and notice of petitions for stays.

    (a)(1) The petition for a stay must be in writing and comply with 
the general filing requirements stated in Sec. 501.7, in addition to any 
other requirements set forth in this subpart, and must be filed at the 
address provided in Sec. 501.11.
    (2) A claim for confidential treatment of any information contained 
in the petition for stay and supporting documents must be in accordance 
with Sec. 501.7(a)(11), and filed at the address provided in 
Sec. 501.11.
    (b) OFE will publish notice of receipt of a petition for a stay 
under this subpart in the Federal Register.



Sec. 501.122  Contents.

    (a) A petition for a stay shall contain a full and complete 
statement of all facts believed to be pertinent to the act or 
transaction for which a stay is sought. The facts shall include, but not 
be limited to, the criteria listed below in Sec. 501.123(b).
    (b) The petitioner may request a conference regarding the 
application. If the request is not made at the time the application is 
filed, it must be made as soon thereafter as possible. The request and 
OFE's determination regarding it will be made in accordance with subpart 
C of this part.



Sec. 501.123  Evaluation of the record.

    (a) The record in a proceeding on a petition for stay shall consist 
of the petition and any related documents, evidence submitted at any 
public proceedings and any other information in the possession of OFE 
and made part of the record. OFE may investigate and corroborate any 
statement in the petition or any other document submitted to it and may 
utilize in its evaluation any relevant facts obtained by its 
investigations. OFE may solicit or accept submissions from third persons 
relevant to the petition for stay or other document and any interested 
person will be afforded an opportunity to respond to these submissions. 
OFE, on its initiative, may convene a conference, if, in its discretion, 
it considers that the conference will advance its evaluation of the 
petition.
    (b) Criteria. (1) OFE may grant a stay incident to a proceeding on a 
petition for modification of a rule or order if the petitioner shows:
    (i) Irreparable injury will result if the stay is denied;
    (ii) There is a strong likelihood of success on the merits;
    (iii) The denial of a stay will result in a more immediate hardship 
or inequity

[[Page 32]]

to the petitioner than to other persons affected by the proceeding; and
    (iv) It would be desirable for reasons of public policy to grant the 
stay.



Sec. 501.124  Decision and order.

    (a) OFE will issue an order granting or denying the petition for a 
stay upon consideration of the request and other relevant information 
received or obtained during the proceeding.
    (b) OFE will include in the order a brief written statement setting 
forth the relevant facts and the basis of the decision, including any 
appropriate terms and conditions of the stay.



                 Subpart I--Requests for Interpretation



Sec. 501.130  Purpose and scope.

    This subpart establishes procedures for filing a formal request for 
and the issuance of an interpretation of a rule, order or other action 
by DOE. Any response, whether oral or written, to a general inquiry, or 
to other than a formal written request for interpretation filed with 
DOE, is not an interpretation and merely provides general information 
that may not be relied upon in any proceeding to determine compliance 
with the applicable requirements of FUA.



Sec. 501.131  Filing a request for interpretation.

    A proceeding to request an interpretation is commenced by the filing 
of a ``Request for Interpretation (FUA).'' The request must be in 
writing and must also comply with the general filing requirements stated 
in Sec. 501.7. Any claims for confidential treatment for any information 
contained in the request or other related documents must be made 
pursuant to Sec. 501.7(a)(11). A request for interpretation should be 
filed with the Assistant General Counsel for Interpretations and Rulings 
at the address provided in Sec. 501.11.



Sec. 501.132  Contents of a request for interpretation.

    (a) A request for an interpretation must contain a complete 
statement of all the facts believed to be relevant to the circumstances, 
acts or transactions that are the subject of the request. The facts must 
include the names and addresses of all potentially affected persons (if 
reasonably ascertainable) and a full discussion of the pertinent 
provisions and relevant facts contained in any documents submitted with 
the request. Copies of relevant contracts, agreements, leases, 
instruments, and other documents relating to the request must be 
submitted if DOE believes they are necessary for determination of any 
issue pending in the proceeding under this subpart. When the request 
pertains to only one step in a larger integrated transaction, the 
requesting party must also submit the facts, circumstances, and other 
relevant information pertaining to the entire transaction.
    (b) The requesting party must include in the request a discussion of 
all relevant legal authorities, rulings, regulations, interpretations 
and decisions on appeal relied upon to support the particular 
interpretation sought.
    (c) DOE may refuse to issue an interpretation if it determines that 
there is insufficient information upon which to base an interpretation.



Sec. 501.133  DOE evaluaton.

    (a)(1) The record shall consist of the request for an interpretation 
and any supporting documents, all relevant evidence presented at any 
public proceedings, written comments and any information in the 
possession of DOE that has been made part of the record.
    (2) DOE may investigate and corroborate any statement in a request 
or related documents and may utilize in its evaluation any relevant 
facts obtained by the investigation. DOE may solicit or accept 
submissions from third persons relevant to the request for 
interpretation, or any other document submitted under this subpart, and 
the person requesting the interpretation will be afforded an opportunity 
to respond to these submissions.
    (3) The General Counsel or his delegate will issue an interpretation 
on the basis of the information provided in the request, unless that 
information is supplemented by other information brought to the 
attention of DOE during the proceeding. DOE's interpretation will, 
therefore, depend on the accuracy

[[Page 33]]

of the factual statements, and the requesting party may rely upon it 
only to the extent that the facts of the actual situation correspond to 
those upon which the interpretation is based.
    (b) Criteria. (1) DOE will base its FUA interpretations on the DEOA 
and FUA, as applicable, and the regulations and published rulings of DOE 
as applied to the specific factual situation presented.
    (2) DOE will take into consideration previously issued 
interpretations dealing with the same or a related issue.



Sec. 501.134  Issuance and effect of interpretations.

    (a) DOE may issue an interpretation after consideration of the 
request for interpretation and other relevant information received or 
obtained during the proceeding.
    (b) The interpretation will contain a written statement of the 
information upon which it is based and a legal analysis of and 
conclusions regarding the application of rulings, regulations and other 
precedent to the situation presented in the request.
    (c) Only those persons to whom an interpretation is specifically 
addressed, and other persons upon whom the DOE serves the interpretation 
and who are directly involved in the same transaction or act, are 
entitled to rely upon it. No person entitled to rely upon an 
interpretation shall be subject to civil or criminal penalties stated in 
title VII of FUA for any act taken in reliance upon the interpretation, 
notwithstanding that the interpretation shall thereafter be declared by 
judicial or other competent authority to be invalid.
    (d) DOE may at any time rescind or modify an interpretation on its 
own initiative. Rescission or modification shall be made by notifying 
persons entitled to rely on the interpretation that it is rescinded or 
modified. This notification will include a statement of the reasons for 
the rescission or modification and, in the case of a modification, a 
restatement of the interpretation as modified.
    (e) An interpretation is modified by a subsequent amendment to the 
regulations or ruling to the extent that it is inconsistent with the 
amended regulation or ruling.
    (f) Any person who believes he is directly affected by an 
interpretation issued by DOE, and who believes that he will be aggrieved 
by its implementation, may submit a petition for reconsideration of that 
interpretation to the General Counsel. DOE will acknowledge receipt of 
all requests for reconsideration; however, this acknowledgement in no 
way binds DOE to commence any proceeding on the request. If within sixty 
(60) days of DOE's acknowledgement of the receipt of a request for 
reconsideration, DOE has not issued either a notice of intent to 
commence a proceeding to reconsider the interpretation or a 
modification, revision or rescission of the original interpretation, the 
request for reconsideration will be deemed denied. DOE may, in its 
discretion, issue a formal denial of a request for reconsideration if:
    (1) The request has not been filed in a timely manner, and good 
cause therefor has not been shown;
    (2) The person requesting reconsideration is not aggrieved or 
otherwise injured substantially by the interpretation; or
    (3) The request is defective because it fails to state and to 
present facts and legal argument that the interpretation was erroneous 
in fact or in law, or that it was arbitrary or capricious.



                           Subpart J--Rulings



Sec. 501.140  Purpose and scope.

    DOE may issue rulings in accordance with the provisions of this 
subpart. DOE will publish each ruling in the Federal Register and in 10 
CFR part 518. A person is entitled to rely upon a ruling to the extent 
provided in this subpart.



Sec. 501.141  Criteria for issuance.

    (a) The General Counsel may issue a ruling whenever:
    (1) There has been a substantial number of inquiries with regard to 
similar factual situations or a particular section of the regulations; 
or
    (2) It is determined that a ruling will be of assistance to the 
public in applying the regulations to a specific situation.

[[Page 34]]



Sec. 501.142  Modification or rescission.

    (a) A ruling may be modified or rescinded by--
    (1) Publication of the modification or rescission by DOE in the 
Federal Register and in 10 CFR part 518; or
    (2) Adoption of a rule that supersedes or modifies a prior ruling.
    (b) A person shall not be subject to the sanctions or penalties 
stated in these regulations for actions taken in reliance upon a ruling, 
notwithstanding that the ruling is subsequently declared to be invalid 
or no longer applicable. A person affected by a ruling may not rely upon 
it for more than 30 days after it has been rendered invalid pursuant to 
issuance of a superseding rule by OFE, or after it has been rescinded or 
modified by DOE.



Sec. 501.143  Comments.

    Any interested person may file a written comment on or objection to 
a published ruling at any time with the Assistant General Counsel for 
Interpretations and Rulings at the address provided in Sec. 501.11.



                         Subpart K--Enforcement



Sec. 501.160  Purpose and scope.

    This subpart provides the procedures by which OFE may initiate 
enforcement proceedings on its own behalf and by which complaints 
concerning a violation of the Act or any rule or order thereunder may be 
filed.



Sec. 501.161  Filing a complaint.

    (a) A complaint under this subpart must be submitted in writing over 
the signature of the person making the complaint in accordance with the 
general filing requirements stated in Sec. 501.7. OFE will accept oral 
complaints that otherwise satisfy the requirements of this subpart, but 
OFE may request written verification.
    (b) A complaint shall be filed at the address provided in 
Sec. 501.11.



Sec. 501.162  Contents of a complaint.

    A complaint must contain a complete statement of all relevant facts 
pertaining to the act or transaction that is the subject of the 
complaint. It must also include the names and addresses of all persons 
involved (if reasonably ascertainable), a description of the events that 
led to the complaint, and a statement describing the statutory 
provision, regulation, ruling, order, rule, or interpretation that 
allegedly has been violated.



Sec. 501.163  OFE evaluation.

    (a) The record shall consist of the complaint and any supporting 
documents and all other relevant information developed in the course of 
any investigations or proceedings related to that complaint. OFE may 
investigate and corroborate any statement in the complaint or related 
documents submitted, and may utilize in its evaluation any relevant 
facts obtained by such investigation or from any other source of 
information. OFE may solicit or accept submissions from third persons 
relevant to the complaint or other related documents.
    (b) Confidentiality of information. OFE will treat as confidential 
information received in any investigation of a complaint, including the 
identity of the complainant and the identity of any other persons who 
provide information to the extent such information is exempt from public 
disclosure under the Freedom of Information Act, 5 U.S.C. 552. OFE 
reserves the right to make disclosures that would be in the public 
interest.



Sec. 501.164  Decision to initiate enforcement proceedings.

    After investigation of a specific complaint or based on any relevant 
information received or obtained during an investigation, OFE may issue 
a notice of violation, determine that no violation has occurred, or take 
such other actions as it deems appropriate. Prior to issuance of a 
notice of violation, and before commencement of an enforcement 
proceeding, OFE may transmit a draft of the notice of violation to the 
potentially affected person in order to promote an informal resolution 
of the violation.



Sec. 501.165  Commencement of enforcement proceedings.

    (a) Whenever, on the basis of any information available, OFE 
determines that a person is in violation or about

[[Page 35]]

to be in violation of any provision of these regulations, OFE may issue 
a notice of violation stating, in writing and with reasonable 
specificity, the nature of the violation. An enforcement proceeding 
commences with the issuance of a notice of violation.
    (b) Contents of the notice of violation. OFE will set forth in the 
notice of violation the nature of the violation, the relevant facts that 
OFE believes establish the violation and the legal basis for the 
conclusions reached therein. OFE may also include with the notice of 
violation a copy of a proposed order. The notice of violation will also 
state whether or not OFE proposes to assess civil penalties.
    (1) If OFE proposes to assess a civil penalty, a notice of violation 
will be issued to the violator with an opportunity for a hearing before 
an Administrative Law Judge, as set forth in Sec. 501.166(a)(1) of this 
part, before any final determination on the violation and penalty are 
made by OFE. The recipient of the notice will also be informed of his 
right to elect to have the procedures of Sec. 501.166(a)(2) apply, in 
lieu of the hearing, with respect to a final determination on the 
assessment of any civil penalty.
    (2) If OFE does not propose to assess a civil penalty, the violator 
will be provided the opportunity for a conference, as set forth in 
Sec. 501.166(b), before a final determination on the violation is made 
by OFE. OFE may, in its discretion, also provide the violator an 
opportunity for a hearing pursuant to Sec. 501.166(a)(1).
    (c) Service. OFE will serve the notice of violation in accordance 
with provisions set forth in Sec. 501.6.
    (d) Rescission. If, after issuance of a notice of violation and any 
related investigation, OFE finds no basis for the belief that a 
violation has occurred, is continuing to occur, or is about to occur, 
OFE may rescind the notice of violation by giving written notice to that 
effect to the recipient.



Sec. 501.166  Hearings and conferences.

    (a) When a civil penalty is proposed. (1) Hearing alternative in 
civil penalty assessment proceedings. Unless the recipient of a notice 
of violation elects in writing to have the provisions of paragraph 
(a)(2) of this section apply, OFE will commence a proceeding to assess a 
penalty and, prior to a final determination on the violation and 
assessment of a penalty, provide an opportunity for a hearing pursuant 
to 5 U.S.C. 554 before an Administrative Law Judge.
    (2) Election alternative in civil penalty assessment proceedings. 
The recipient of a notice of violation in which a civil penalty 
assessment has been proposed may elect, in writing, within thirty (30) 
days of receipt of the notice, to waive the administrative proceedings 
described in paragraph (a)(1) of this section. OFE will make a 
determination on the proposed civil penalty assessment and issue a final 
order to that effect within forty-five (45) days after receiving notice 
of the exercise of this election.
    (b) When a civil penalty is not proposed--opportunity to request a 
conference. If a person has received a notice of violation in which a 
civil penalty has not been proposed, he may, within thirty (30) days 
after receipt of the notice, request a conference with OFE to discuss 
the notice. In order to request a conference he must comply with the 
instructions set forth in the notice.



Sec. 501.167  Fuel use order.

    (a) General. OFE will issue a Fuel Use Order if, after considering 
all the information received during the proceeding, OFE determines that 
a person has committed, is committing, or is about to commit a violation 
of FUA or of an order or rule thereunder.
    (b) Contents. Any Fuel Use Order issued under this section shall set 
forth the relevant facts and legal basis for the order and where 
appropriate, the final penalty assessment and the basis therefor. When 
an administrative hearing is requested under Sec. 501.166(a) of this 
part, the Fuel Use Order will include the recommended findings and 
conclusions of the Administrative Law Judge (ALJ) and the basis for the 
penalty assessment. OFE will make a final determination as to any 
penalty assessment or other appropriate remedy based upon the 
recommended findings and conclusions of the ALJ and other information in 
the record of the enforcement proceeding. The order will

[[Page 36]]

be effective upon service, unless otherwise provided therein, or stayed 
pursuant to Sec. 501.120.
    (c) Service. OFE will serve a copy of the Fuel Use Order upon any 
person who was served a copy of the notice of violation and upon all 
parties to any public proceeding on the notice of violation. OFE will 
place a copy of each final order on file in the Public Information 
Office described in Sec. 501.12.
    (d) Judicial review. Any person against whom a penalty is assessed 
pursuant to Sec. 501.167(b) after a hearing before an ALJ may, within 
sixty (60) calendar days after the date of issuance of the order 
assessing such penalty, institute an action in the United States Court 
of Appeals for the appropriate judicial circuit for judicial review of 
such order in accordance with the provisions of section 723 of FUA.



  Subpart L--Investigations, Violations, Sanctions and Judicial Actions



Sec. 501.180  Investigations.

    (a) General. Pursuant to section 711 of FUA, the DEOA, and in 
accordance with the provisions of 10 CFR 205.201, OFE may initiate and 
conduct investigations relating to the scope, nature, and extent of 
compliance by any person with the rules, regulations, and orders issued 
by OFE under the authority of the Act, or any order or decree of court 
relating thereto, or any other agency action. When the circumstances 
warrant, OFE may issue subpoenas as provided in subpart D of this part. 
OFE may also conduct investigative conferences in conjunction with any 
investigation.
    (b) Any duly authorized representative of OFE has the authority to 
conduct an investigation and to take such action as he deems necessary 
and appropriate to the conduct of the investigation.
    (c) Notification. If any person is required to furnish information 
or documentary evidence pursuant to a subpoena or special report order, 
OFE will, upon written request, inform that person as to the general 
purposes of the investigation.
    (d) Confidentiality. OFE shall not disclose any information received 
during an investigation under this section, including the identities of 
the person investigated and any other person who provides information, 
to the extent it is exempt from public disclosure pursuant to 5 U.S.C. 
552 and 10 CFR part 1004.



Sec. 501.181  Sanctions.

    (a) General. (1) A violation of any provision of the Act (other than 
section 402 of FUA), or any rule or order thereunder shall be subject to 
the penalties and sanctions provided in subtitle C of title VII of FUA.
    (2) Each day that any provision of the Act (other than section 402), 
or any rule or order thereunder is violated constitutes a separate 
violation within the meaning of the provisions of this section relating 
to civil penalties.
    (b) Criminal penalties. Any person who willfully violates any 
provision of the Act (other than section 402), or any rule or order 
thereunder will be subject to a fine of not more than $50,000, or to 
imprisonment for not more than 1 year, or both, for each violation.
    (c) Civil penalties. (1) Any person who violates any provisions of 
the Act (other than section 402) or any rule or order thereunder will be 
subject to the following civil penalty, which may not exceed $27,500 for 
each violation: Any person who operates a powerplant or major fuel 
burning installation under an exemption, during any 12-calendar-month 
period, in excess of that authorized in such exemption will be assessed 
a civil penalty of up to $3.30 for each MCF of natural gas or up to $11 
for each barrel of oil used in excess of that authorized in the 
exemption.
    (2) OFE may compromise and settle, and collect civil penalties 
whenever it considers it to be appropriate or advisable.
    (d) Corporate personnel. (1) If a director, officer, or agent of a 
corporation willfully authorizes, orders, or performs any act or 
practice constituting in whole or in part a violation of the Act, or any 
rule or order thereunder, he will be subject to the penalties specified 
in paragraphs (b) and (c) of this section without regard to any 
penalties to which the corporation may be subject. He will not, however, 
be subject to imprisonment under paragraph (b) of

[[Page 37]]

this section unless he knew of noncompliance by the corporation, or had 
received from OFE notice of noncompliance by the corporation.
    (2) Purposes of this paragraph:
    (i) Agent includes any employee or other person acting on behalf of 
the corporation on either a temporary or permanent basis; and
    (ii) Notice of noncompliance is a final Fuel Use Order issued under 
Sec. 501.167 of this part.
[46 FR 59889, Dec. 7, 1981, as amended at 62 FR 46183, Sept. 2, 1997]



Sec. 501.182  Injunctions.

    Whenever it appears to OFE that any person has committed, is 
committing, or is about to commit a violation of any provision of the 
Act, or any rule or order thereunder, OFE may, in accordance with 
section 724 of FUA, bring a civil action in the appropriate United 
States District Court to enjoin such acts or practices. The relief 
sought may include a mandatory injunction commanding any person to 
comply with any provision of such provision, order or rule, the 
violation of which is prohibited by section 724 of FUA and may also 
include interim equitable relief.



Sec. 501.183  Citizen suits.

    (a) General. A person who believes he is aggrieved by the failure of 
OFE to perform any nondiscretionary act of duty under the Act may file a 
Petition for Action for OFE to take such action as he may feel to be 
proper. This petition must be filed at the address provided in 
Sec. 501.11. The petition must specify the action requested and set 
forth the facts and legal arguments that constitute the basis for the 
request. The filing of a Petition for Action will serve as notice to OFE 
under FUA section 725(b) for purposes of any citizens suit that may be 
subsequently filed.
    (b) OFE decision. Within sixty (60) days of receiving the Petition 
for Action, OFE will notify the person giving notice under this section 
that it has instituted the action requested or that other described 
action is being taken, or that other described action is being taken, or 
that no action is being taken and the reasons therefor.



      Subpart M--Use of Natural Gas or Petroleum for Emergency and 
                 Unanticipated Equipment Outage Purposes



Sec. 501.190  Purpose and scope.

    (a) If a person operates a powerplant covered by any of the 
prohibitions of titles II, III, or IV of FUA, Sec. 501.191 of this 
subpart establishes procedures to be followed for the use of minimum 
amounts of natural gas or petroleum under FUA section 103(a)(15)(B) in 
order to alleviate or prevent unanticipated equipment outages and 
emergencies directly affecting the public health, safety, or welfare 
that would result from electric power outages.
    (b) Explanatory note: If a person operates a rental boiler as a 
powerplant covered by any of the prohibitions of titles II, III, or IV 
of FUA, he may be able to use the provisions of this subpart for the 
emergency use of natural gas or petroleum.
[54 FR 52893, Dec. 22, 1989]



Sec. 501.191  Use of natural gas or petroleum for certain unanticipated equipment outages and emergencies defined in section 103(a)(15)(B) of the act.

    (a) In the event of the occurrence or imminent occurrence of an 
emergency, or of the occurrence or imminent occurrence of an 
unanticipated equipment outage in the unit, an owner or operator of a 
powerplant is automatically permitted to use minimum amounts of natural 
gas or petroleum in the unit or in a substitute unit to prevent or 
alleviate the outage or to prevent or alleviate the emergency if he 
complies with procedures contained in paragraph (b) of this section.
    (b) If the use of minimum amounts of petroleum or natural gas is 
required for purposes specified in this section, the owner or operator 
must notify OFE of such use by telegram or telephone within 24 hours 
after the commencement of such use. Immediately thereafter a written 
confirmation must be submitted to OFE, describing, to the best estimate 
of the owner or operator, (1) the nature of the emergency and (2) how 
long petroleum or natural gas use is likely to be required.

[[Page 38]]

    (c) For purposes of this section only:
    (1) An emergency is the occurrence or threat of imminent occurrence 
of a condition which results or would result from an electric power 
outage and directly effects or would directly effect the public health, 
safety or welfare;
    (2) Unanticipated equipment outage shall mean an unexpected outage 
due to equipment failure.
    (3) Minimum amounts required to alleviate or prevent shall mean:
    (i) For powerplants, the amounts of natural gas or petroleum 
required to prevent curtailment of electric supply where the operating 
utility has, to the maximum extent possible, utilized alternate fuel-
fired capacity to prevent such curtailment. Note--A utility operating 
hydroelectric facilities may take into account seasonal fluctuations in 
storage capacity and shall be permitted to prevent depletion of stored 
power-producing capacity as deemed necessary by the utility; and
    (ii) For installations, the amounts of natural gas or petroleum 
required to meet plant protection or human health and safety needs, 
including services to hospitals, public transportation facilities, 
sanitation, or water supply and pumping.
[46 FR 59889, Dec. 7, 1981, as amended at 54 FR 52893, Dec. 22, 1989]



Sec. 501.192  [Reserved]



PART 503--NEW FACILITIES--Table of Contents




                     Subpart A--General Prohibition

Sec.
503.1  Purpose and scope.
503.2  Prohibition.
503.3  [Reserved]

             Subpart B--General Requirements for Exemptions

503.4  Purpose and scope.
503.5  Contents of petition.
503.6  Cost calculations for new powerplants and installations.
503.7  State approval--general requirement for new powerplants.
503.8  No alternate power supply--general requirement for certain 
          exemptions for new powerplants.
503.9  Use of mixtures--general requirement for certain permanent 
          exemptions.
503.10  Use of fluidized bed combustion not feasible--general 
          requirement for permanent exemptions.
503.11  Alternative sites--general requirement for permanent exemptions 
          for new powerplants.
503.12  Terms and conditions; compliance plans.
503.13  Environmental impact analysis.
503.14  Fuels search.

           Subpart C--Temporary Exemptions for New Facilities

503.20  Purpose and scope.
503.21  Lack of alternate fuel supply.
503.22  Site limitations.
503.23  Inability to comply with applicable environmental requirements.
503.24  Future use of synthetic fuels.
503.25  Public interest.

           Subpart D--Permanent Exemptions for New Facilities

503.30  Purpose and scope.
503.31  Lack of alternate fuel supply for the first 10 years of useful 
          life.
503.32  Lack of alternate fuel supply at a cost which does not 
          substantially exceed the cost of using imported petroleum.
503.33  Site limitations.
503.34  Inability to comply with applicable environmental requirements.
503.35  Inability to obtain adequate capital.
503.36  State or local requirements.
503.37  Cogeneration.
503.38  Permanent exemption for certain fuel mixtures containing natural 
          gas or petroleum.
503.39--503.44  [Reserved]

    Authority: Department of Energy Organization Act, Pub. L. 95-91, 91 
Stat. 565 (42 U.S.C. Sec. 7101 et seq.); Powerplant and Industrial Fuel 
Use Act of 1978, Pub. L. 95-620, 92 Stat. 3289 (42 U.S.C. 8301 et seq.); 
Energy Security Act, Pub. L. 96-294, 94 Stat. 611 (42 U.S.C. 8701 et 
seq.); E.O. 1209, 42 FR 46267, September 15, 1977.

    Source: 46 FR 59903, Dec. 7, 1981, unless otherwise noted.

    OMB Control No.: 1903-0075. See 46 FR 63209, Dec. 31, 1981.

    Editorial Note: Nomenclature changes to this part appear at 54 FR 
52893, Dec. 22, 1989.



                     Subpart A--General Prohibition



Sec. 503.1  Purpose and scope.

    This subpart sets forth the statutory prohibition imposed by the Act 
upon new powerplants. The prohibition in the subpart applies to all new 
baseload

[[Page 39]]

electric powerplants unless an exemption has been granted by OFE under 
subparts C and D of this part. Any person who owns, controls, rents, 
leases or operates a new powerplant that is subject to the prohibition 
may be subject to sanctions provided by the Act or these regulations.
[54 FR 52893, Dec. 22, 1989]



Sec. 503.2  Prohibition.

    Section 201 of the Act prohibits, unless an exemption has been 
granted under subpart C or D of this part, any new electric powerplant 
from being constructed or operated as a baseload powerplant without the 
capability to use coal or another alternate fuel as a primary energy 
source.
[54 FR 52893, Dec. 22, 1989]



Sec. 503.3  [Reserved]



             Subpart B--General Requirements for Exemptions



Sec. 503.4  Purpose and scope.

    This subpart establishes the general requirements necessary to 
qualify for either a temporary or permanent exemption under this part 
and sets out the methodology for calculating the cost of using an 
alternate fuel and the cost of using imported petroleum.



Sec. 503.5  Contents of petition.

    Before OFE will accept a petition for either a temporary or 
permanent exemption under this part, the petition must include all of 
the evidence and information required in this part and part 501 of this 
chapter.



Sec. 503.6  Cost calculations for new powerplants and installations.

    (a) General. (1) This calculation compares the cost of using 
alternate fuel to the cost of using imported petroleum. It must be 
performed for each alternate fuel and/or alternate site that the 
petitioner is required to examine.
    (2) The cost of using an alternate fuel as a primary energy source 
will be deemed to substantially exceed the cost of using imported 
petroleum if the difference between the cost of using alternate fuel and 
the cost of using imported oil is greater than zero.
    (3) There are two comparative cost calculations--a general cost test 
and a special cost test. Both take into consideration cash outlays for 
capital investments, annual expenses, and the effect of depreciation and 
taxes on cash flow. To demonstrate eligibility for a permanent 
exemption, a petitioner must use the procedures specified in the general 
cost test (paragraph (b) of this section). To demonstrate eligibility 
for a temporary exemption, the petitioner may apply the procedures 
specified in either the general cost test or the special cost test 
(paragraph (c) of this section).
    (b) Cost calculation--general cost test. (1) A petitioner may be 
eligible for a permanent exemption if he can demonstrate that the cost 
of using an alternate fuel from the first year of operation 
substantially exceeds the cost of using imported petroleum. Unless the 
best practicable cost estimates as prescribed below will not materially 
change during the first ten years of operation of the unit (given the 
best information available at the time the petition is filed), the 
petitioner must also demonstrate that the cost of using an alternate 
fuel beginning at any time within the first ten years of operation and 
using imported petroleum or natural gas until such time (i.e., delayed 
use of alternate fuel) would substantially exceed the cost of using only 
imported petroleum.
    (2) The petitioner would only be eligible for a temporary exemption 
if the computed costs of delayed alternate fuel use, commencing at the 
start of the second through eleventh years of operation, do not always 
substantially exceed the cost of using only imported petroleum. The 
length of the temporary exemption would be the minimum period from the 
start of operation in which the cost of using alternate fuel 
substantially exceeds the cost of using imported petroleum.
    (3) To conduct the general cost test, calculate the difference 
(DELTA) between the cost of using an alternate fuel (COST(ALTERNATE)) 
and the cost of using imported petroleum (COST(OIL)) using Equations 1 
through 3 below and the comparison procedures in paragraph (b)(5) of 
this section.

[[Page 40]]

[GRAPHIC] [TIFF OMITTED] TC01OC91.000

    (4) The terms in Equations 2 and 3 are defined as follows:

i=Year. i is a specified year either before year 0 or after year 0. Year 
          0 is the year before the unit becomes operational. For 
          example, in the third year before the unit becomes 
          operational, i would equal -2, and in the third year following 
          commencement of operations of the unit, i would equal +3. 
          Years are represented by 52 week periods prior to or following 
          the date on which the unit becomes operational. Outlays before 
          the unit becomes operational are future valued to the year 
          before the unit becomes operational (year 0), and outlays 
          after the unit becomes operational are present valued to the 
          year before the unit becomes operational. Year 0 must be the 
          same for the units being compared.
g=The number of years prior to the year before the unit becomes 
          operational (year 0) that (1) a cash outlay is first made for 
          capital investments, or (2) an investment tax credit is first 
          used--whichever occurs first.
N=The useful life of the unit (see paragraph (d)(5) of this section).
Ii=Yearly cash outlay (in dollars) from the year outlays 
          first occur to the last year of the unit's useful life for 
          capital investments. (See paragraph (d)(2) of this section for 
          the items that must be included.)
OMi=Annual cash outlay in year i (in dollars) for all 
          operations and maintenance expenses except fuel (i.e., all 
          non-capital and non-fuel cash outlays caused by putting the 
          capital investments (I) into service). This may include labor, 
          materials, insurance, taxes (except income taxes), etc. (See 
          paragraph (d)(3) of this section.)
Si=Salvage value of capital investment (in dollars) in year 
          i.
FLi=Annual cash outlay for delivered fuel expenses (in 
          dollars) in year i. (See paragraph (d)(3) of this section for 
          FLi calculation instructions and appendix II of 
          these regulations for the procedures to determine fuel price.)
k=The discount rate expressed as a fraction (see paragraph (d)(4) of 
          this section).
ITCi=Federal investment tax credit used in year i resulting 
          from capital investments (see paragraph (d)(6) of this 
          section).
DPRi=Depreciation in year i resulting from capital 
          investments (see paragraph (d)(6) of this section).
ti=Marginal income tax rate in year i (see paragraph (d)(6) 
          of this section).
IXi=Inflation index value for year i (see appendix II to part 
          504 for method of computation).
IXe=Inflation index value for the year e, the year before the 
          asset is placed in service.

    (5) The step-by-step procedure that follows shows the comparison 
that the petitioner must make.

[[Page 41]]

    (i) Compute the cost of using an alternate fuel (COST(ALTERNATE)) 
unit throughout the useful life of the unit using Equations 2 and 3.
    (ii) Compute the cost of using oil or natural gas (COST(OIL)) 
throughout the useful life of the unit using Equations 2 and 3.
    (iii) Using Equation 1, compute the difference (DELTA) between COST 
(ALTERNATE) and COST (OIL). If the difference (DELTA) is less than or 
equal to zero, a petitioner is not eligible for a permanent or temporary 
exemption using the general cost test and need not complete the 
remainder of the general cost test calculation. However, he still may be 
eligible for a temporary exemption using the special cost test 
(paragraph (c) of this section). If the difference (DELTA) is greater 
than zero and if the best practicable cost estimates will not materially 
change during the first ten years of operation (given the best 
information available at the time the petition is filed), the petitioner 
has completed the test and is eligible for a permanent exemption. 
However, if the best practicable cost estimate will materially change 
during the first ten years, the petitioner must complete the remainder 
of the general cost test--the delayed use calculations which follow.
    (iv) Recompute COST (ALTERNATE) with Equations 2 and 3, assuming 
that an alternate fuel is not used as the primary energy source until 
the start of the second year of operation and that imported petroleum or 
natural gas is used for the first year of operation. All cash outlays 
should reflect postponed use of alternate fuel.
    (v) Successively recompute COST (ALTERNATE) with Equations 2 and 3, 
assuming that the alternate fuel use is postponed until the start of the 
third year, fourth year, and so on, through the beginning of the 
eleventh year of operation (with imported petroleum or natural gas used 
in the years preceding alternate fuel use).
    (vi) Compute the difference (DELTA) between each of the ten 
COST(ALTERNATE)s calculated in paragraph (b)(5) (iv) and (v) of this 
section and the COST(OIL) calculated in paragraph (b)(5)(ii) of this 
section.
    (vii) If all the DELTAs computed in paragraph (b)(5) (iii) and (vi) 
of this section are greater than zero, the petitioner is eligible for a 
permanent exemption. If one or more of the DELTAs is less than or equal 
to zero, he is eligible for a temporary exemption for the period 
beginning at the start of the first year of operation and terminating at 
the beginning of the first year in which a DELTA is zero or less.
    (c) Cost calculations--special cost test. (1) A petitioner may be 
eligible for a temporary exemption if he demonstrates that the cost of 
using an alternate fuel will substantially exceed the cost of using 
imported petroleum or (natural gas) over the period of the proposed 
exemption. The period of the proposed temporary exemption may not exceed 
ten years.

The petitioner must demonstrate that the cost of using an alternate fuel 
substantially exceeds the cost of using imported petroleum for the first 
year of operation, the first two years of operation, and so forth, 
through the period of the proposed exemption. OFE will limit the 
duration of a temporary exemption to the shortest time possible.
    (2) To conduct the test, calculate the difference (DELTA) between 
the cost of using an alternate fuel (COST (ALTERNATE)) and the cost of 
using imported petroleum (COST (OIL)) using Equations 4 and 5 below, 
Equation 3 (paragraph (b)(3) of this section), and the comparison 
procedures in paragraph (c)(4) of this section.

[[Page 42]]

[GRAPHIC] [TIFF OMITTED] TC01OC91.001

    Capital investment (I) is calculated with Equation 3 (paragraph 
(b)(3) of this section).
    (3) The terms in Equation 5 are the same as those in Equation 2 with 
the addition of P, the length of the proposed temporary exemption in 
years. (See paragraph (b)(4) of this section for other terms.)
    (4) The step-by-step procedure that follows shows the comparisons 
which must be made.
    (i) Using Equation 5, compute the cost of using an alternate fuel 
(COST(ALTERNATE)) assuming the length of the proposed exemption is one 
year.
    (ii) Likewise, compute the cost of using imported petroleum or 
natural gas (COST(OIL)) assuming the length of the proposed exemption is 
one year.
    (iii) Compute the difference (DELTA) between COST (ALTERNATE) and 
COST (OIL) using Equation 4.
    (iv) Repeat the calculations made in (i), (ii), and (iii) above, 
assuming the length of the proposed exemption is two years, three years, 
four years, and so on, up through the period of the proposed exemption.
    (v) A petitioner is eligible for a temporary exemption for the 
period beginning at the start of the first year of operation and 
terminating at the beginning of the first year in which a DELTA is zero 
or less.
    (d) Information on parameters used in the calculations. (1) All 
estimated expenditures, except fuel, shall be expressed in real terms 
(unadjusted for inflation) by using the prices in effect at the time the 
petition is submitted. Instructions for fuel price calculations are 
contained in appendix II.
    (2) Capital investment yearly cash outlays (Ii) must 
include all items that are capital investments for Federal income tax 
purposes. All purchased equipment that has a useful life greater than 
one year, capitalized engineering costs, land, construction, 
environmental offsets, fuel inventory, transmission facilities, piping, 
etc., that are necessary for the operation of the unit must be included. 
However, an item must only be included if a cash outlay is required 
after the decision has been made to build the unit; sunk costs must not 
be included (e.g., if the firm owns the land, its purchase price may not 
be included).

    Note: The guidelines for the fuel inventory for powerplants not 
using natural gas shall be: (a) All powerplants with only steam driven 
turbines--78 days, (b) all powerplants with only combustion turbines--
142 days, (c) all powerplants with combined cycles--both steam driven 
turbines and combustion turbines--142 days. The guidelines for the fuel 
inventory for installations not using natural gas shall be the greater 
of: (1) 21 days fuel supply, or (2) sufficient fuel to fill sixty (60) 
percent of the storage volume. The guidelines for the fuel inventory for 
all facilities using natural gas shall be zero unless the gas supply is 
interruptible in which case an appropriate inventory of back-up fuel 
must be included. Other inventory levels may be used if they are more 
appropriate than these guidelines; however, the source or derivation of 
these levels must be discussed in the evidential summary.


[[Page 43]]


    (3)(i) The annual cash outlays for operations and maintenance 
expense (OMi) and fuel expense (FLi) for a 
powerplant may be computed by one of the following three methods; 
however, the one chosen must be consistently applied throughout the 
analysis.
    (A) Assume the energy produced by the powerplant equals seventy (70) 
percent of design capacity times 8760 hours for each year during the 
life of the powerplant, and compute cash outlays for operations, 
maintenance, and fuel expenses for the powerplant.
    (B) Economically dispatch the new powerplant. The cash outlays for 
operations, maintenance, and fuel expenses of all powerplants being 
dispatched (where oil and natural gas are priced according to the 
procedures of appendix II \1\) are the corresponding expenses for the 
purpose of the cost calculation. The dispatch analysis area must be that 
area with which the firm currently dispatches, anticipates dispatching, 
and will be interconnected. It must also include all anticipated 
exchanges of energy with other utilities or powerpools. The outlays for 
operations, maintenance, and fuel may also be estimated using a 
methodology that incorporates the benefits of economically dispatching 
units and provides consistent treatment in the alternate fuel and oil or 
natural gas cases being compared.
    (C) Use a dispatch analysis to project the energy produced by the 
powerplant for a representative (not atypical) year of operation when 
consuming an alternate fuel. Compute the cash outlays for operations, 
maintenance, and fuel expenses for the powerplant based upon the level 
of energy production estimated for the representative year. The dispatch 
analysis and fuel expenses for the cost calculation must include oil and 
natural gas priced according to the procedures of appendix II.\1\
    (ii) When computing the annual cash outlays for operations and 
maintenance expense (OMi) and fuel expense (FLi) 
for an installation, specify the firing rates and the length of time 
each firing rate will be maintained.
    (4) The discount rate (k) for analyses is 2.9 percent or that which 
is computed as specified in appendix I. The method of computing the 
inflation index (IX) is shown in appendix II to part 504. OFE will 
modify these specified rates from time to time as required by changed 
conditions after public notice and an opportunity to comment. However, 
the relevant set of specified rates for a specific petition for 
exemption will be the set in effect at the time the petition is 
submitted or the set in effect at the time a decision is rendered, 
whichever set is more favorable to the petitioner.
    (5)(i) The guidelines for the useful life (N) of all powerplants 
except nuclear will be thirty-five (35) years. The guidelines for the 
useful life of a nuclear powerplant will be forty (40) years. The 
guidelines for the useful life of major fuel burning installations will 
be forty (40) years. Other useful life projections may be used if they 
are more appropriate than these guidelines; however, the source or 
derivation of these projections must be contained in the evidential 
summary. The summary should include a discussion of engineering, 
economic historical or other evidence.
    (ii) If the units being compared have different useful lives, the 
petitioner will have to modify his calculation so that the two cash 
flows being compared have the length of the shorter useful life. To do 
this, (A) use the shorter of the two useful lives in Equations 2 and 5 
for both units, and (B) multiply capital investment (I) of the unit with 
the longer life (computed with Equation 3) by the following adjustment 
factor (A):
[GRAPHIC] [TIFF OMITTED] TC01OC91.002

where:
R=The useful life of the facility with the longer life.
Q=The useful life of the facility with the shorter life.
k=The discount rate (see paragraph (d)(4) above).

    (6) All Federal investment tax credits (ITCi) and 
depreciation (PRi) values are those used for Federal income 
tax purposes and must be applied consistently throughout the analysis 
and in a manner consistent with the Federal tax

[[Page 44]]

laws. All investment tax credits allowed under Federal tax law must be 
reflected in the computations. The petitioner must use the method of 
depreciation which results in the greatest present value of the cash 
flow due to the tax and depreciation effect. The marginal income tax 
rate (ti) is the firm's anticipated marginal Federal income 
tax rate in year i. The relevant investment tax credits, depreciation 
methodology, and marginal Federal income tax rates for a specific 
exemption petition will be those prescribed by Federal law in effect (or 
those tax parameters which are known with certainty will be in effect) 
at the time a decision is rendered. (However, if an investment tax 
credit expires in a certain year under the law which is in effect at the 
time the petition is submitted, the petitioner must assume that it will 
in fact expire in that year.)
    (7) If powerplants are being compared, the design capacities or the 
maximum sustained energy per unit of time that could be produced must be 
the same. If installations are being compared, the maximum sustained 
energy per unit of time that could be produced must be the same.
    (8) All estimated cash outlays must be computed in accordance with 
generally accepted accounting principles consistently applied.
    (9) The scope of the estimates of relevant costs (as discussed 
above) of units being compared must be the same.
    (10) All allowances for uncertainty and risk in the cost estimates 
must be explicit.
    (11) All cash outlays must be net of any government subsidies or 
grants.
    (e) Evidence in support of the cost calculation. Petitioners for an 
exemption which requires the use of the cost calculation shall certify 
that the cost of using alternate fuel substantially exceeds the cost of 
using oil as primary energy source as calculated in this section. A 
brief summary of the petitioner's supporting calculations and estimates 
shall be submitted with the certification. The summary should include 
the following:
    (1) Cash outlays, Investment tax credits, depreciation 
methodologies, and anticipated salvage for capital investments including 
a description of all major construction and equipment;
    (2) Annual cash outlays for operations and maintenance expenses 
including the formulas used to compute them; and
    (3) Annual cash outlays for delivered fuel expenses including the 
formulas used to compute them.
[46 FR 59903, Dec. 7, 1981; 46 FR 63033, Dec. 30, 1981; 47 FR 15314, 
Apr. 9, 1982; 54 FR 52893, Dec. 22, 1989]



Sec. 503.7  State approval--general requirement for new powerplants.

    (a) Where approvals by the appropriate State regulatory authority 
are required prior to the construction or use of a new powerplant, a 
petition for an exemption for consideration by OFE may be submitted to 
OFE prior to obtaining such approvals from the State regulatory 
authority.
    (b) An exemption granted for a powerplant shall not become effective 
until an adequate demonstration has been made to OFE that all applicable 
approvals required by the State regulatory authorities have been 
obtained.



Sec. 503.8  No alternate power supply--general requirement for certain exemptions for new powerplants.

    (a) Application. To qualify for an exemption, except in the case of 
an exemption for cogeneration units, section 213(c) of the Act requires 
a demonstration that, despite reasonable good faith efforts, there is no 
alternative supply of electric power available within a reasonable 
distance at a reasonable cost without impairing short-run or long-run 
reliability of service. If a petitioner is unable to demonstrate that 
there is no alternate supply during the first year of operation, OFE 
will conclude that the absence of the proposed powerplant will not 
impair short-term reliability of service, and as a result will not grant 
the exemption. Such action would not impair long-term reliability of 
service, since a petition may be submitted for a powerplant that would 
begin operation in a subsequent year.
    (b) Criteria. To meet the demonstration required under paragraph (a) 
of this section, a petitioner must certify that:

[[Page 45]]

    (1) A diligent effort has been made to purchase firm power for the 
first year of operation to cover all or part of the projected shortfall 
at a cost that is less than ten (10) percent above the annualized cost 
of generating power from the proposed plant (including the capital, 
operation and maintenance expenses, and fuel prices); and
    (2)(i) Despite these efforts, the reserve margin in the petitioner's 
electric region, normal dispatch area, or service area, in the absence 
of the proposed plant, would fall below twenty (20) percent during the 
first year of proposed operation; or
    (ii) Despite these efforts, the reserve margin will be greater than 
twenty (20) percent but reliability of service would be impaired. In 
such case, the certification must be related to factors not included in 
the calculation of reserve margin, such as transmission constraints.
    (c) Evidence. The petition must include the following evidence in 
order to make the demonstration required by this section:
    (1) Duly executed certification required under paragraph (b) of this 
section; and
    (2) Exhibits containing the basis for the certification submitted 
under this section (including those factual and analytical materials 
deemed by the petitioner to be sufficient to support its certification 
to this general requirement).
    (d) FERC consultation. OFE will forward a copy of any petition for 
which a showing is required under this section to FERC promptly after it 
is filed with OFE, and OFE will consult with FERC before making the no 
alternate supply of power finding.
[46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15314, Apr. 9, 1982; 54 
FR 52894, Dec. 22, 1989]



Sec. 503.9  Use of mixtures--general requirement for certain permanent exemptions.

    (a) Criteria. To qualify for a permanent exemption, except in the 
case of an exemption for fuel mixtures, section 213(a)(1) of the Act 
requires a demonstration that the use of a mixture of natural gas and 
petroleum and an alternate fuel for which an exemption under 10 CFR 
503.38 (Fuel mixtures) would be available, would not be economically or 
technically feasible.
    (b) Evidence. The petition must include the following evidence in 
order to make the demonstration required by this section:
    (1) Duly executed certifications to the criteria set forth in 
paragraph (a) of this section; and
    (2) Exhibits containing the basis for the certifications submitted 
under this section (including those factual and analytical materials 
deemed by the petitioner to be sufficient to support its certifications 
to this general requirement.)

    Note: In meeting this general requirement, OFE will require a 
petitioner to examine only mixtures of oil and coal and natural gas and 
coal, or, where petitioner wishes to examine an additional or substitute 
mixture, such other alternate fuels as OFE and the petitioner agree are 
reasonable to petitioner's circumstances.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



Sec. 503.10  Use of fluidized bed combustion not feasible--general requirement for permanent exemptions.

    (a) OFE finding. Except in the case of an exemption for fuel 
mixtures, OFE may deny permanent exemptions authorized under section 212 
of the Act if OFE finds on a site-specific or generic basis that use of 
a method of fluidized bed combustion of an alternate fuel is 
economically and technically feasible.
    (b) Demonstration. If OFE has made such a finding, OFE will deny a 
petitioner's request for exemption unless the petitioner demonstrated 
that the use of a method of fluidized bed combustion is not economically 
or technically feasible. The petition or any supplement thereto required 
by OFE must include the following evidence:
    (1) If use of a method of fluidized bed combustion were to be 
required, evidence that the petitioner would be eligible for a permanent 
exemption for lack of alternate fuel supply, site limitations, 
environmental requirements, lack of adequate capital, or State or local 
requirements; or

[[Page 46]]

    (2) Use of a method of fluidized bed combustion is not technically 
or economically feasible due to design or special circumstances.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



Sec. 503.11  Alternative sites--general requirement for permanent exemptions for new powerplants.

    (a) Criteria. To qualify for permanent exemption due to lack of 
alternate fuel supply, site limitations, environmental requirements, or 
inadequate capital, section 212(a) of the Act requires a demonstration 
that one of these exemptions would be available for any reasonable 
alternative site for the facility.
    (b) Evidence. The petition must include the following evidence in 
order to make the demonstration required by this section:
    (1) Duly executed certifications to the criteria set forth in 
paragraph (a) of this section; and
    (2) Exhibits containing the basis for the certifications submitted 
under this section (including those factual and analytical materials 
deemed by the petitioner to be sufficient to support its certifications 
to this general requirement).
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



Sec. 503.12  Terms and conditions; compliance plans.

    (a) Terms and conditions generally. A petitioner must comply with 
any terms and conditions imposed upon the grant of an exemption 
petition. OFE will limit any such terms and conditions to the unit(s) 
which is the subject of the petition.
    (b) Compliance plans for temporary exemptions. (1) Any compliance 
plan required to accompany a petition for a temporary exemption shall 
include the following:
    (i) A detailed schedule of progressive events and the dates upon 
which the events are to take place, indicating how compliance with the 
applicable prohibitions of the Act will occur;
    (ii) Evidence of binding contracts for fuel, or for facilities for 
the production of fuel, which are required for compliance with the 
applicable prohibitions of the Act;
    (iii) A schedule indicating how any necessary permits and approvals 
required to burn an alternate fuel will be obtained; and
    (iv) Any other documentary evidence which indicates an ability to 
comply with the applicable prohibitions of the Act.
    (2) Any exemption for which a compliance plan is required shall not 
be effective until the compliance plan is approved by DOE.
    (3) If the petition is granted, an updated, duly executed plan must 
be submitted to OFE within one (1) month of an alteration of any 
milestone in the compliance plan, together with the reasons for the 
alteration and its impact upon the scheduling of all other milestones in 
the plan.



Sec. 503.13  Environmental impact analysis.

    In order to enable OFE to comply with NEPA, a petitioner must 
include the information indicated in this section if a permanent 
exemption is requested. Material which has been prepared pursuant to any 
Federal, State or local requirement for environmental information for 
this unit or site may be incorporated by reference and appended to the 
petition. Guidelines issued by OFE for environmental reports should be 
used in preparing this analysis (44 FR 63740, November 5, 1979). These 
guidelines, which are also available in the OFE public document room, 
have been designed to insure that environmental reports follow the 
format prescribed by Council on Environmental Quality final regulations 
implementing NEPA. The guidelines are subject to discussion at a 
prepetition conference and to modification according to the facts of a 
particular case.
    (a) All petitions for permanent exemptions must contain the 
following information:
    (1) A description of the facility, including site location, and 
surroundings, alternative site(s), the facility's current proposed 
operations, its fuel capability, and its pollution abatement systems and 
equipment (including

[[Page 47]]

those systems and equipment necessary for all fuel scenarios 
considered);
    (2) A description of the existing environment, including air, water, 
and land resources;
    (3) Direct and indirect environmental impacts of the proposed action 
including impacts of alternative fuel scenarios, and no build 
alternatives.
    (4) Regulatory requirements governing the facility, including a 
description of Federal, State and local requirements for air, water, 
noise and solid waste disposal which must be met for each fuel 
considered.
    (b) For exemptions for cogeneration, the information enumerated 
below is to be submitted in lieu of the information required by 
paragraph (a) of this section. However, submission of the following 
information merely establishes a rebuttable presumption that the grant 
or denial of the exemption would have no significant environmental 
impact. OFE may, in individual cases, during the course of the 
administrative proceeding, determine that additional environmental 
information is required. In such cases, the petitioner will be required 
to submit the information described in paragraph (a) of this section.
    (1) A certification that the petitioner will, prior to operating the 
unit under the exemption, secure all applicable environmental permits 
and approvals pursuant to, but not limited to, the following: Clean Air 
Act, Rivers and Harbors Act, Coastal Zone Management Act, Safe Drinking 
Water Act, Resource Conservation and Recovery Act; and
    (2) Information required by the following environmental checklist 
must be provided and certified as accurate:

    Environmental Checklist for FUA Certification Exemptions 
Instructions
    All questions are to be answered by placing a check in the 
appropriate box. N/A represents (not applicable). Although it is not 
required, the petitioner may elaborate on any question in writing on a 
separate sheet of paper.

                                                                        
------------------------------------------------------------------------
                                                 Yes       No      N/A  
------------------------------------------------------------------------
(1) Is your facility located in, or will it                             
 affect a wetland (Protection of Wetlands                               
 Executive Order No. 11990)?.................  .......  .......  .......
(2) Is your facility located in, or will it                             
 affect, a 100-year floodplain (Floodplain                              
 Management Executive Order No. 11988)?......  .......  .......  .......
(3) Will your facility affect a designated                              
 wild, scenic, or recreation river (Wild and                            
 Scenic Rivers Act)?.........................  .......  .......  .......
(4)(A) Is your facility located within a                                
 county in which critical habitat for                                   
 threatened or endangered species are known                             
 to exist (Endangered Species Act)?..........  .......  .......  .......
(4)(B) Has a qualified biologist determined                             
 that your facility will not affect any                                 
 species on the Threatened and Endangered                               
 Species list?...............................  .......  .......  .......
(5) Is your facility located on, or will it                             
 affect land that has been classified as                                
 prime or unique farmland or rangeland by the                           
 U.S. Department of Agriculture?.............  .......  .......  .......
(6) Is your facility located on, or will it                             
 affect, historical archaeological, or                                  
 cultural resources that have been designated                           
 pursuant to the National Historic                                      
 Preservation Act?...........................  .......  .......  .......
------------------------------------------------------------------------

[46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 51 
FR 18866, May 22, 1986; 52 FR 658, Jan. 7, 1987; 54 FR 52894, Dec. 22, 
1989]



Sec. 503.14  Fuels search.

    Prior to submitting a petition for a permanent exemption for lack of 
alternate fuel supply, site limitations, inadequate capital, or state or 
local requirements, a petitioner must examine the use of conventional 
solid coal as a primary energy source at the site under consideration, 
and at reasonable alternative sites. Where a petitioner believes that 
its use of such coal would be infeasible, however, and where OFE and the 
petitioner can reach accord, it may evaluate use of a different 
alternate fuel in lieu of solid coal. A petitioner of these exemptions 
must demonstrate for any fuel examined that he would qualify for an 
exemption.
[54 FR 52894, Dec. 22, 1989]



           Subpart C--Temporary Exemptions for New Facilities



Sec. 503.20  Purpose and scope.

    (a) This subpart implements the provisions contained in section 211 
of the

[[Page 48]]

Act with regard to temporary exemptions for new facilities.
    (b) This subpart establishes the criteria and standards which owners 
or operators of new powerplants who petition for a temporary exemption 
must meet to sustain their burden of proof under the Act.
    (c) All petitions for temporary exemptions shall be submitted in 
accordance with the procedures set out in part 501 of this chapter and 
the applicable requirements of part 503 of these regulations.
    (d) The duration of any temporary exemption granted under this 
subpart shall be measured from the date that the facility is placed in 
service using petroleum or natural gas.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



Sec. 503.21  Lack of alternate fuel supply.

    (a) Eligibility. Section 211(a)(1) of the Act provides for a 
temporary exemption due to the unavailability of an adequate and 
reliable supply of an alternate fuel at a cost which does not 
substantially exceed the cost of using imported petroleum. To qualify, a 
petitioner must certify that:
    (1) A good faith effort has been to obtain an adequate and reliable 
supply of an alternate fuel of the quality necessary to conform to the 
design and operational requirements of the unit;
    (2) For the period of the proposed exemption, the cost of using such 
alternate fuel would substantially exceed the cost of using imported 
petroleum as a primary energy source as defined in Sec. 503.6 (Cost 
calculation) of these regulations;
    (3) The petitioner will be able to comply with the applicable 
prohibitions of the Act at the end of the proposed exemption period; and
    (4) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (3) All data required by Sec. 503.6 (cost calculation) of these 
regulations necessary for computing the cost calculation formula; and
    (4) The anticipated duration of the lack of alternate fuel supply 
which constitutes the basis for the exemption.
    (c) Duration. This temporary exemption, taking into account any 
extensions or renewals, may not exceed 10 years.
[46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 
FR 52894, Dec. 22, 1989]



Sec. 503.22  Site limitations.

    (a) Eligibility. Section 211(a)(2) of the Act provides for a 
temporary exemption due to a site limitation. To qualify for such an 
exemption, a petitioner must certify that:
    (1) One or more specific physical limitations relevant to the 
location or operation of the proposed facility exist which, despite 
diligent good faith efforts, cannot be overcome before the end of the 
proposed exemption period;
    (2) The petitioner will be able to comply with the applicable 
prohibitions of the Act at the end of the proposed exemption period; and
    (3) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.

    Note: Examples of the types of site limitations to which a 
petitioner may certify in order to qualify for this exemption include:

    (i) Inaccessability of alternate fuels as a result of a specific 
physical limitation;
    (ii) Unavailability of transportation facilities for alternate 
fuels;
    (iii) Unavailability of adequate land or facilities for handling, 
using, or storing an alternate fuel;
    (iv) Unavailability of adequate land or facilities for controlling 
and disposing of wastes, including pollution control equipment or 
devices necessary to

[[Page 49]]

assure compliance with applicable environmental requirements;
    (v) Unavailability of adequate and reliable supply of water, 
including water for use in compliance with applicable environmental 
requirements; or
    (vi) Other site limitations exist which will not permit the location 
or operation of the proposed unit using an alternate fuel.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption); and
    (3) The anticipated duration of the site limitation which 
constitutes the basis for the exemption.
    (c) Duration. This temporary exemption, taking into account any 
extensions and renewals, may not exceed five years.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



Sec. 503.23  Inability to comply with applicable environmental requirements.

    (a) Eligibility. Section 211(a)(3) of the Act provides for a 
temporary exemption due to an inability to comply with applicable 
environmental requirements. To qualify a petitioner must demonstrate 
that despite diligent good faith efforts:
    (1) The petitioner will be unable, as of the projected date of 
commencement of operation, to comply with the applicable prohibitions of 
the Act without violating applicable Federal or State environmental 
requirements; and
    (2) The petitioner will be able to comply with the applicable 
prohibitions of the Act and with applicable environmental requirements 
by the end of the temporary exemption period.

    Note: (1) For purposes of considering an exemption under this 
section, OFE's decision will be based solely on an analysis of the 
petitioner's capacity to physically achieve applicable environmental 
requirements. The petition should be directed toward those conditions or 
circumstances which make it physically impossible to comply during the 
temporary exemption period. The cost of compliance is not relevant, but 
cost-related considerations may be presented as part of a demonstration 
submitted under Sec. 503.21.
    (2) Prior to submitting an exemption petition, it is recommended 
that a meeting be requested with OFE and EPA or the appropriate State or 
local regulatory agency to discuss options for operating an alternate 
fuel fired facility in compliance with applicable environmental 
requirements.

    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Where the petitioner has applied for a construction permit from 
EPA or an appropriate State agency prior to petitioning for an exemption 
under this section, a copy of that application and synopsis of 
supporting documents filed with or subsequent to that application must 
be submitted to OFE with the petition or at the time filed with the 
permitting agency;
    (2) To the extent applicable, a copy of the EPA or State denial of 
the construction permit application;
    (3) To the extent applicable, a synopsis of the administrative 
record of the EPA or State or local permit proceedings;
    (4) To the extent applicable, a summary of the technology upon which 
the denial was based, including a performance comparison between the 
proposed technology and that technology which would provide the maximum 
possible reduction of pollution;
    (5) An examination of the environmental compliance of the facility, 
including an analysis of its ability to meet applicable standards and 
criteria when using both the proposed fuel and the alternate fuel(s) 
which would provide the basis for exemption. All such analysis must be 
based on accepted analytical techniques, such as air quality modeling, 
and reflect current conditions of the area which would be affected by 
the facility. The petitioner is responsible for obtaining the necessary 
data to accurately characterize these conditions. Environmental 
compliance must be examined in the context of

[[Page 50]]

available pollution control equipment which would provide the maximum 
possible reduction of pollution. The analysis must contain: (i) Requests 
for bids and other inquiries made and responses received by the 
petitioner concerning the availability and performance of pollution 
control equipment; (ii) contracts signed, if any, for an alternate fuel 
supply and for the purchase and installation of pollution control 
equipment; or (iii) other comparable evidence such as technical studies 
documenting the efficacy of equipment to meet applicable requirements;
    (6) An examination of any regulatory options available to the 
petitioner in seeking to achieve environmental compliance (such as 
offsets, variances, and State Implementation Plan revisions);
    (7) Any other documentation which demonstrates an inability to 
comply with applicable environmental requirements;
    (8) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (c) Duration. This temporary exemption, taking into account any 
extension and renewals, may not exceed 5 years.
    (d) Certification alternative. (1) To qualify for this exemption, in 
lieu of meeting the evidentiary requirements of paragraph (b) of this 
chapter, a petitioner may certify that, for the period of the exemption:
    (i) The site for the facility is or will be located in a Class I 
area or Class II area in which the allowable increment established by 
law has been consumed, as defined in part C of the Clean Air Act; the 
use of an alternate fuel will cause or contribute to concentrations of 
pollutants which would exceed the maximum allowable increases in a Class 
I or Class II area even with the application of best available control 
technology; the site for the facility is or will be located in a non-
attainment area as defined in part D of the Clean Air Act for any 
pollutant which would be emitted by the facility; or, even with the 
application of the lowest achievable emission rate, the use of an 
alternate fuel will cause or contribute to concentrations in an air 
quality control region, of a pollutant for which any national ambient 
air quality standard is or would be exceeded; and
    (ii) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (2) A petition by certification under this paragraph must include:
    (i) Duly executed certifications required under paragraph (d)(1) of 
this section;
    (ii) Exhibits containing the basis for the certifications required 
under paragraph (d)(1) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption); and
    (iii) The anticipated duration of the circumstances which constitute 
the basis for the exemption.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



Sec. 503.24  Future use of synthetic fuels.

    (a) Eligibility. Section 211(b) of the Act provides for a temporary 
exemption based upon the future use of synthetic fuels. To qualify, a 
petitioner must certify that:
    (1) The petitioner will be able to comply with the applicable 
prohibitions imposed by the Act by the use of a synthetic fuel derived 
from coal or another alternate fuel as a primary energy source in the 
proposed facility by the end of the proposed exemption period;
    (2) The petitioner will not be able to comply with the applicable 
prohibitions imposed by the Act by use of a synthetic fuel until the end 
of the proposed exemption period; and
    (3) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials

[[Page 51]]

deemed by the petitioner to be sufficient to support the granting of 
this exemption); and
    (3) A preliminary compliance plan, including to the extent 
available, the information required under Sec. 503.12.
    (c) Final Compliance Plan. Before an exemption may become effective, 
the petitioner must submit and OFE must approve a final compliance plan 
as required by Sec. 503.12.
    (d) Duration. This temporary exemption may be granted for a period 
of up to ten (10) years. Unless the petitioner requests otherwise, any 
temporary exemption from the fuel use prohibitions of the Act for the 
future use of synthetic fuels will commence on the date of commercial 
operation of the facility.

    Note: Contracts based on the anticipated successful demonstration of 
a development program and/or the anticipated economic feasibility of a 
synthetic fuels facility, will generally be sufficient to meet the 
``binding contract'' requirements for this exemption.
[46 FR 59903, Dec. 7, 1981; 47 FR 15315, Apr. 9, 1982; 54 FR 52894, Dec. 
22, 1989]



Sec. 503.25  Public interest.

    (a) Eligibility. Section 211(c) of the Act provides for a temporary 
public interest exemption. To qualify, a petitioner must demonstrate 
that:
    (1) The unit will be capable of complying with the applicable 
prohibitions at the end of the proposed exemption period;
    (2) The granting of the exemption would be in accord with the 
purposes of the Act and would be in the public interest; and
    (3) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Substantial evidence to corroborate the eligibility requirements 
identified above; and
    (2) The anticipated duration of the circumstances which constitute 
the basis for the exemption.
    (c) Certification alternative. If the petitioner requires use of oil 
or natural gas in a unit, during the construction of an alternate-fuel 
fired unit, the petitioner may substitute, in lieu of the evidentiary 
requirements of paragraphs (b)(1) and (2) of this section:
    (1) A duly executed certification, including the requested duration 
of the exemption, that the unit will be operated on oil or natural gas 
only during the construction of an alternate fuel fired unit to be owned 
or operated by the petitioner; and
    (2) Exhibits containing the basis for the certifications required 
under paragraph (c)(1) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption).
    (d) Duration. This temporary exemption, taking into account 
extension and renewals, may not exceed 5 years.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52894, Dec. 22, 1989]



           Subpart D--Permanent Exemptions for New Facilities



Sec. 503.30  Purpose and scope.

    (a) This subpart implements the provisions contained in section 212 
of the Act with regard to permanent exemptions for new facilities.
    (b) This subpart establishes the criteria and standards which owners 
or operators of new powerplants and installations who petition for a 
permanent exemption must meet to sustain their burden of proof under the 
Act.
    (c) All petitions for permanent exemptions for new facilities shall 
be submitted in accordance with the procedures set out in part 501 of 
this chapter and the applicable requirements of part 503 of these 
regulations.



Sec. 503.31  Lack of alternate fuel supply for the first 10 years of useful life.

    (a) Eligibility. Section 212(a)(1)(A)(i) of the Act provides for a 
permanent exemption due to lack of an adequate and reliable supply of 
alternate fuel within the first 10 years of useful life of the proposed 
unit. To qualify, a petitioner must certify that:
    (1) A good faith effort has been made to obtain an adequate and 
reliable supply of an alternate fuel for use as a primary energy source 
of the quality and quantity necessary to conform with

[[Page 52]]

the design and operational requirements of the unit;
    (2) Such a supply is not likely to be available within the first 10 
years of useful life of the proposed unit;
    (3) No alternate power supply exists, as required under Sec. 503.8 
of these regulations;
    (4) Use of mixtures is not feasible, as required under Sec. 503.9 of 
these regulations; and
    (5) Alternative sites are not available, as required under 
Sec. 503.11 of these regulations.
    (b) Evidence required in support of a petition. A petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (3) Environmental impact analysis, as required under Sec. 503.13 of 
these regulations; and
    (4) Fuels search, as required under Sec. 503.14 of these 
regulations.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989]



Sec. 503.32  Lack of alternate fuel supply at a cost which does not substantially exceed the cost of using imported petroleum.

    (a) Eligibility. Section 212(a)(1) (A)(ii) of the Act provides for a 
permanent exemption due to lack of an alternate fuel supply at a cost 
which does not substantially exceed the cost of using imported 
petroleum. To qualify a petitioner must certify that:
    (1) A good faith effort has been made to obtain an adequate and 
reliable supply of an alternate fuel for use as a primary energy source 
of the quality and quantity necessary to conform with the design and 
operational requirements of the proposed unit;
    (2) The cost of using such a supply would substantially exceed the 
cost of using imported petroleum as a primary energy source during the 
useful life of the proposed unit as defined in Sec. 503.6 (cost 
calculation) of these regulations;
    (3) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (4) Use of mixtures is not feasible, as required under Sec. 503.9 of 
these regulations; and
    (5) Alternative sites are not available, as required under 
Sec. 503.11 of these regulations.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for certifications required under 
paragraph (a) of this section (including those factual and analytical 
materials deemed by the petitioner to be sufficient to support the 
granting of this exemption);
    (3) Environmental impact analysis, as required under Sec. 503.13 of 
these regulations;
    (4) Fuels search, as required under Sec. 503.14 of these 
regulations; and
    (5) All data required by Sec. 503.6 (cost calculation) of these 
regulations necessary for computing the cost calculation formula.
[46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 
FR 52895, Dec. 22, 1989]



Sec. 503.33  Site limitations.

    (a) Eligibility. Section 212(a)(1)(B) of the Act provides for a 
permanent exemption due to site limitations. To qualify for such an 
exemption, a petitioner must certify that:
    (1) One or more specific physical limitations relevant to the 
location or operation of the proposed facility exist which, despite good 
faith efforts, cannot reasonably be expected to be overcome within five 
years after commencement of operations;
    (2) No alternate power supply exists, as required under Sec. 503.8 
of these regulations;
    (3) Use of mixtures is not feasible, as required under Sec. 503.9 of 
these regulations; and

[[Page 53]]

    (4) Alternative sites are not available, as required under 
Sec. 503.11 of these regulations.

    Note: Examples of the types of site limitations to which a 
petitioner may certify in order to qualify for this exemption include:
    (i) Inaccessibility of alternate fuels as a result of a specific 
physical limitation;
    (ii) Unavailability of transportation facilities for alternate 
fuels;
    (iii) Unavailability of adequate land or facilities for handling, 
using or storing an alternate fuel;
    (iv) Unavailability of adequate land or facilities for controlling 
and disposing of wastes, including pollution control equipment or 
devices necessary to assure compliance with applicable environmental 
requirements;
    (v) Unavailability of adequate and reliable supply of water, 
including water for use in compliance with applicable environmental 
requirements; or
    (vi) Other site limitations exist which will not permit the location 
or operation of the proposed unit using an alternate fuel.

    (b) Evidence required in support of the petition. A petitioner must 
include in the petition the following evidence in order to make the 
demonstration required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (3) Environmental impact analysis, as required under Sec. 503.13 of 
these regulations; and
    (4) Fuels search, as required under Sec. 503.14 of these 
regulations.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989]



Sec. 503.34  Inability to comply with applicable environmental requirements.

    (a) Eligibility. Section 212(a)(1)(C) of the Act provides for a 
permanent exemption due to the inability to comply with applicable 
environmental requirements. To qualify, a petitioner must demonstrate 
that despite good faith efforts:
    (1) The petitioner will be unable within 5 years after beginning 
operation, to comply with the applicable prohibitions imposed by the Act 
without violating applicable Federal or state environmental 
requirements; and
    (2) Reasonable alternative sites, which would permit the use of 
alternate fuels in compliance with applicable Federal or state 
environmental requirements, are not available.

    Note: (1) For purposes of considering an exemption under this 
section, OFE's decision will be based solely on an analysis of the 
petitioner's capacity to physically achieve applicable environmental 
requirements. The cost of compliance is not relevant, but cost-related 
considerations may be presented as part of a demonstration submitted 
under Sec. 503.32 (Lack of alternate fuel supply).
    (2) Prior to deciding to submit an exemption petition, it is 
recommended that a petitioner request a meeting with OFE and EPA or the 
appropriate state or local regulatory agency to discuss options for 
operating an alternate fuel-fired facility in compliance with the 
applicable environmental requirements.

    (b) [Reserved]
    (c) Evidence required in support of a petition. The petitioner must 
include in the petition the following evidence in order to make the 
demonstration required by this section:
    (1) Where the petitioner has applied for a construction permit from 
EPA or an appropriate state agency prior to petitioning for an exemption 
from OFE under this section, a copy of such application and a synopsis 
of all supporting documents filed with or subsequent to the application 
must be submitted to OFE with the petition or at the time filed with the 
permitting agency;
    (2) To the extent applicable, a copy of the EPA or state denial of 
the construction permit application;
    (3) To the extent applicable, a synopsis of the administrative 
record of the EPA or state or local permit proceedings;
    (4) To the extent applicable, a summary of the technology upon which 
the denial was based, including a performance comparison between the 
proposed technology and that technology which provides the maximum 
possible reduction of pollution;
    (5) An examination of the environmental compliance of the facility, 
including an analysis of its ability to meet applicable standards and 
criteria when using both the proposed fuel and

[[Page 54]]

the alternate fuel(s) which would provide the basis for the exemption. 
All such analysis must be based on accepted analytical techniques, such 
as air quality modeling, and reflect current conditions of the area 
which would be affected by the facility. The petitioner is responsible 
for obtaining the necessary data to accurately characterize these 
conditions. Environmental compliance must be examined in the context of 
available pollution control equipment which would provide the maximum 
possible reduction of pollution. The analysis must contain: (i) Requests 
for bids and other inquiries made and responses received by the 
petitioner concerning the availability and performance of pollution 
control equipment; or (ii) other comparable evidence such as technical 
studies documenting the efficacy of equipment to meet applicable 
requirements;
    (6) An examination of any regulatory options available to the 
petitioner in seeking to achieve environmental compliance (such as 
offsets, variances and State Implementation Plan (SIP) revisions); and
    (7) Any other documentation which demonstrates an inability to 
comply with applicable environmental requirements;
    (8) No alternate power supply exists as required under Sec. 503.8 of 
these regulations;
    (9) Use of mixtures is not feasible, as required under Sec. 503.9 of 
these regulations;
    (10) Alternative sites are not available, as required under 
Sec. 503.11 of these regulations;
    (11) Environmental impact analysis, as required under Sec. 503.13 of 
these regulations; and
    (12) Fuels search, as required under Sec. 503.14 of these 
regulations.
    (d) Certification alternative. (1) To qualify for this exemption, in 
lieu of meeting the evidentiary requirements of paragraph (c) of this 
section, a petitioner may certify that:
    (i) The site for the facility is or will be located in a Class I 
area or Class II area in which the allowable increment established by 
law has been consumed, as defined in part C of the Clean Air Act; the 
use of an alternate fuel will cause or contribute to concentrations of 
pollutants which would exceed the maximum allowable increases in a Class 
I or Class II area even with the application of best available control 
technology; the site for the facility is or will be located in a non-
attainment area as defined in part D of the Clean Air Act for any 
pollutant which would be emitted by the facility; or, even with the 
application of the lowest achievable emission rate, the use of an 
alternate fuel will cause or contribute to concentrations in an air 
quality control region of a pollutant for which any national ambient air 
quality standard is or would be exceeded;
    (ii) No alternate power supply exists, as required under Sec. 503.8 
of these regulations;
    (iii) Alternative sites are not available, as required under 
Sec. 503.11 of these regulations; and
    (iv) Use of mixtures is not feasible, as required under Sec. 503.19 
of these regulations.
    (2) A petition by certification under this paragraph must include:
    (i) Duly executed certifications required under paragraph (d)(1) of 
this section;
    (ii) Exhibits containing the basis for the certifications required 
under paragraph (d)(1) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (iii) Environmental impact analysis, as required under Sec. 503.13 
of these regulations; and
    (iv) Fuels search, as required under Sec. 503.14 of these 
regulations.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52895, Dec. 22, 1989]



Sec. 503.35  Inability to obtain adequate capital.

    (a) Eligibility. Section 212(a)(1)(D) of the Act provides for a 
permanent exemption due to inability to obtain adequate capital. To 
qualify, a petitioner must certify that:
    (1) Despite good faith efforts the petitioner will be unable to 
comply with the applicable prohibitions imposed by the Act because the 
additional capital required for an alternate fuel-capable unit beyond 
that required for the proposed unit cannot be raised;

[[Page 55]]

    (2) The additional capital cannot be raised:
    (i) Due to specific restrictions (e.g., convenants on existing 
bonds) which constrain management's ability to raise debt or equity 
captial;
    (ii) Without a substantial dilution of shareholder equity;
    (iii) Without an unreasonably adverse affect on the utility's credit 
rating; or
    (iv) In the case of non-investor-owned public utilities, without 
jeopardizing the utility's ability to recover its capital investment, 
through tariffs, without unreasonably adverse economic effect on its 
service area (such as adverse impacts on local industry or undue 
hardship to ratepayers).
    (3) No alternative power supply exists, as required under Sec. 503.8 
of these regulations;
    (4) Use of mixtures is not feasible, as required under Sec. 503.9 of 
these regulations; and
    (5) Alternative sites are not available, as required under 
Sec. 503.11 of these regulations.
    (b) Evidence required in support of a petition. A petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (3) Environmental impact analysis, as required under Sec. 503.13 of 
these regulations; and
    (4) Fuels search, as required under Sec. 503.14 of these 
regulations.
[46 FR 59903, Dec. 7, 1981, as amended at 47 FR 15315, Apr. 9, 1982; 54 
FR 52895, Dec. 22, 1989]



Sec. 503.36  State or local requirements.

    (a) Eligibility. Section 212(b) of the Act provides for an exemption 
due to certain State or local requirements. To qualify a petitioner must 
certify that:
    (1) With respect to the proposed site of the unit, the operation or 
construction of the new unit using an alternate fuel is infeasible 
because of a State of local requirement other than a building code, 
nuisance, or zoning law;
    (2) The petitioner has made a good faith effort to obtain a variance 
from the State or local requirement but has been unable to do so or has 
demonstrated why none is available;
    (3) The granting of the exemption would be in the public interest 
and would be consistent with the purposes of the Act;
    (4) The petitioner is not entitled to an exemption for lack of 
alternate fuel supply, site limitation, environmental requirements, or 
inability to obtain adequate capital at the site of the proposed 
powerplant or at any reasonable alternative site for the alternate 
fuel(s) considered;
    (5) At the proposed site and every reasonable alternative site where 
the petitioner is not entitled to an exemption for lack of alternate 
fuel supply, site limitation, environmental requirements, or inability 
to obtain adequate capital, the petitioner nevertheless would be barred 
at each such proposed or alternate site from burning an alternate fuel 
by reason of a State or local requirement;
    (6) No alternate power supply exists, as required under Sec. 503.8 
of these regulations; and
    (7) Use of mixtures is not feasible, as required under Sec. 503.9 of 
these regulations.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (3) Environmental impact analysis, as required under Sec. 503.13 of 
these regulations; and
    (4) Fuels search, as required under Sec. 503.14 of these 
regulations.
[46 FR 59903, Dec. 7, 1981; 46 FR 63033, Dec. 30, 1981, as amended at 54 
FR 52895, Dec. 22, 1989]

[[Page 56]]



Sec. 503.37  Cogeneration.

    The following table may be used to determine eligibility for a 
permanent exemption based on oil and natural gas savings.

    Average Annual Utilization of Oil and Natural Gas for Electricity   
                           Generation by State                          
                          [BTU's per KWHR sold]                         
------------------------------------------------------------------------
                                                                 Oil/gas
                          State name                             savings
                                                                 Btu/kWh
------------------------------------------------------------------------
Alabama.......................................................        33
Arizona.......................................................       802
Arkansas......................................................     1,363
California....................................................     3,502
Colorado......................................................       289
Connecticut...................................................     3,924
Delaware......................................................     3,478
Washington, DC................................................       895
Florida.......................................................     3,177
Georgia.......................................................        45
Idaho.........................................................         0
Illinois......................................................       250
Indiana.......................................................        53
Iowa..........................................................       147
Kansas........................................................       686
Kentucky......................................................        34
Louisiana.....................................................     4,189
Maine.........................................................     2,560
Maryland......................................................       895
Massachusetts.................................................     5,250
Michigan......................................................       256
Minnesota.....................................................       151
Mississippi...................................................     1,519
Missouri......................................................        57
Montana.......................................................        60
Nebraska......................................................       139
Nevada........................................................       761
New Hampshire.................................................     2,695
New Jersey....................................................     1,894
New Mexico....................................................     1,528
New York......................................................     4,219
North Carolina................................................        49
North Dakota..................................................        47
Ohio..........................................................        36
Oklahoma......................................................     5,180
Oregon........................................................         0
Pennsylvania..................................................       771
Rhode Island..................................................     1,800
South Carolina................................................        24
South Dakota..................................................        36
Tennessee.....................................................        20
Texas.........................................................     4,899
Utah..........................................................       107
Vermont.......................................................       105
Virginia......................................................       460
Washington....................................................         3
West Virginia.................................................       126
Wisconsin.....................................................        72
Wyoming.......................................................        75
------------------------------------------------------------------------


Data are based upon 1987 oil, natural gas and electricity statistics 
published by DOE's Energy Information Administration.

    Example: The proposed cogeneration project is to be located in 
Massachusetts and is to use distillate oil. It will have a capacity of 
50 MW, an average annual heat rate of 7600 BTU/KWHR, and be operated at 
a capacity factor of 90%. The annual fuel consumption is therefore 
calculated to be 2,996 x 10\9\ Btu/yr. (50,000 KW x 7600 BTU/
KWHR x .9 x 8760 HR/YR) The oil and gas backed off the grid would be 
calculated to be .2070 x 10\9\ BTU/YR. (50,000 KW x 5250 BTU/
KWHR x .9 x 8760 HR/YR) since the proposed unit would consume more oil 
that would be ``backed off'' the grid, the unit would not be eligible 
for a permanent exemption based on savings of oil and natural gas.
[54 FR 52895, Dec. 22, 1989]



Sec. 503.38  Permanent exemption for certain fuel mixtures containing natural gas or petroleum.

    (a) Eligibility. Section 212(d) of the Act provides for a permanent 
exemption for certain fuel mixtures. To qualify a petitioner must 
certify that:
    (1) The petitioner proposes to use a mixture of natural gas or 
petroleum and an alternate fuel as a primary energy source;
    (2) The amount of petroleum or natural gas proposed to be used in 
the mixture will not exceed the minimum percentage of the total annual 
Btu heat input of the primary energy sources needed to maintain 
operational reliability of the unit consistent with maintaining a 
reasonable level of fuel efficiency; and
    (3) No alternate power supply exists, as required under Sec. 503.8 
of these regulations.
    (b) Evidence required in support of a petition. The petition must 
include the following evidence in order to make the demonstration 
required by this section:
    (1) Duly executed certifications required under paragraph (a) of 
this section;
    (2) Exhibits containing the basis for the certifications required 
under paragraph (a) of this section (including those factual and 
analytical materials deemed by the petitioner to be sufficient to 
support the granting of this exemption);
    (3) A description of the fuel mixture, including component fuels and 
the percentage of each such fuel to be used; and
    (4) Environmental impact analysis as required under Sec. 503.13 of 
these regulations.

[[Page 57]]

    (c) Solar mixtures. OFE will grant a permanent mixtures exemption 
for the use of a mixture of solar energy (including wind, tide, and 
other intermittent sources) and petroleum or natural gas, where:
    (1) Solar energy will account for at least 20 percent of the total 
annual Btu heat input, of the primary energy sources of the unit; and
    (2) Petitioner meets the eligibility and evidentiary requirements of 
paragraphs (a) and (c) of this section.
[46 FR 59903, Dec. 7, 1981, as amended at 54 FR 52896, Dec. 22, 1989]



Secs. 503.39--503.44  [Reserved]



PART 504--EXISTING POWERPLANTS--Table of Contents




504.2  Purpose and scope.
504.3--504.4  [Reserved]
504.5  Prohibitions by order (certifying powerplants under section 301 
          of FUA, as amended).
504.6  Prohibitions by order (case-by-case).
504.7  Prohibition against excessive use of petroleum or natural gas in 
          mixtures--electing powerplants.
504.8  Prohibitions against excessive use of petroleum or natural gas in 
          mixtures--certifying powerplants.
504.9  Environmental requirements for certifying powerplants.


Appendix I to Part 504--Procedures for the Computation of the Real Cost 
          of Capital
Appendix II to Part 504--Fuel Price Computation

    Authority: Department of Energy Organization Act, Pub. L. 95-91, 91 
Stat. 565 (42 U.S.C. Sec. 7101 et seq.); Powerplant and Industrial Fuel 
Use Act of 1978, Pub. L. 95-620, 92 Stat. 3289 (42 U.S.C. 8301 et seq.); 
Energy Security Act, Pub. L. 96-294, 94 Stat. 611 (42 U.S.C. 8701 et 
seq.); E.O. 1209, 42 FR 46267, Sept. 15, 1977.

    Source: 45 FR 53692, Aug. 12, 1980, unless otherwise noted.

(Approved by the Office of Management and Budget under control number 
1903-0075. See 46 FR 63209, Dec. 31, 1981.)


    Editorial Note: Nomenclature changes to this part appear at 54 FR 
52896, Dec. 22, 1989.



Sec. 504.2  Purpose and scope.

    (a) Sections 504.5, 504.6, and 504.8, set forth the prohibitions 
that OFP, pursuant to section 301 of the Act, as amended, may impose 
upon existing powerplants after a review of the certification and 
prohibition order compliance schedule submitted by the owner or operator 
of a powerplant. Sections 504.5 and 504.8 are explanatory sections, and 
Sec. 504.6 provides the informational requirements necessary to support 
the certification.
    (b) Sections 504.6 and 504.7, set forth the prohibitions that OFP 
may impose upon certain electing powerplants, pursuant to former section 
301 (b) and (c) of FUA, where OFP can make the findings as to the unit's 
technical capability and financial feasibility to use coal or another 
alternate fuel as a primary energy source. The prohibitions may be made 
to apply to electing powerplants unless an exemption is granted by OFP 
under the provisions of the Final Rule for Existing Facilities (10 CFR 
parts 500, 501 and 504) published at 45 FR 53682, Aug. 12, 1980 and 46 
FR 59872, Dec. 7, 1981. Any person who owns, controls, rents or leases 
an existing electing powerplant may be subject to the prohibitions 
imposed by and the sanctions provided for in the Act or these 
regulations, if OFP can make the findings required by former section 301 
(b) and (c) of FUA.

(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 (42 
U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus Budget 
Reconciliation Act of 1981, Pub. L. 97-35; E.O. 12009, 42 FR 46267, 
Sept. 15, 1977)
[47 FR 50849, Nov. 10, 1982]



Secs. 504.3--504.4  [Reserved]



Sec. 504.5  Prohibitions by order (certifying powerplants under section 301 of FUA, as amended).

    (a) In the case of existing powerplants, OFP may prohibit, in 
accordance with section 301 of the Act, as amended, the use of petroleum 
or natural gas as a primary energy source where the owner or operator of 
the powerplant presents a complete certification concurred in by OFP. 
The certification, which may be presented at any time, pertains to the 
unit's technical capability and financial feasibility to use coal or 
another alternate fuel as a primary energy source in the unit. The 
informational requirements

[[Page 58]]

necessary to support a certification are contained in Sec. 504.6 of 
these regulations. A prohibition compliance schedule which meets the 
requirements of Sec. 504.5(d) shall also be submitted.
    (b) If OFP concurs with the certification, a prohibition order on 
the powerplant's use of petroleum or natural gas will be issued 
following the procedure outlined in Sec. 501.52 of these regulations.
    (c) The petitioner may amend its certification at any time prior to 
the effective date of the prohibitions contained in the final 
prohibition order in order to take into account changes in relevant 
facts and circumstances by following the procedure contained in 
Sec. 501.52(d).
    (d) Prohibition order compliance schedule. The certification 
described above, which forms the basis for the issuance of a prohibition 
order to a powerplant, shall include a prohibition order compliance 
schedule. The compliance schedule should contain the following:
    (1) A schedule of progressive events involved in the conversion 
project, including construction of any facilities for the production of 
fuel or fuel handling equipment, and contracts for the purchase of 
alternate fuels, and estimated date of compliance with the applicable 
prohibitions of the Act; and
    (2) A schedule indicating estimated dates for obtaining necessary 
federal, state, and local permits and approvals. Any prohibition order 
issued under the certification provisions of Secs. 504.5, 504.6, and 
504.8 will be subject to appropriate conditions subsequent so as to 
delay the effectiveness of the prohibitions contained in the final 
prohibition order until the above events or permits have occurred or 
been obtained.

(Approved by the Office of Management and Budget under control number 
1903-0077)

(Department of Energy Organization Act, Pub. L. 95-91 (42 U.S.C. 7101 et 
seq.); Energy Supply and Environmental Coordination Act of 1974, Pub. L. 
93-319, as amended by Pub. L. 94-163, Pub. L. 95-70, and Pub. L. 95-620 
(15 U.S.C. 719 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, as amended by Pub. L. 97-35 (42 U.S.C. 8301 et seq.); 
Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35)
[47 FR 17044, Apr. 21, 1982]



Sec. 504.6  Prohibitions by order (case-by-case).

    (a) OFP may prohibit, by order, the use of natural gas or petroleum 
as a primary energy source in existing powerplants under certain 
circumstances. In the case of certifying powerplants under section 301 
of the Act, as amended, the petitioner must present evidence to support 
the certification, required by Sec. 504.6 (c), (d), (e), and (f). In the 
case of electing powerplants, OFP must make the following findings 
required by Sec. 504.6 (c), (d), (e), and (f), in order to issue a 
prohibition order to the unit, pursuant to former section 301 (b) or 
(c):
    (1) The unit currently has, or previously had, the technical 
capability to use an alternate fuel as a primary energy source;
    (2) The unit has this technical capability now, or it could have the 
technical capability without:
    (i) A substantial physical modification of the unit; or
    (ii) A substantial reduction in the rated capacity of the unit; and
    (3) It is financially feasible for the unit to use an alternate fuel 
as its primary energy source.
    (b) In the case of electing powerplants, OFP must make a proposed 
finding regarding the technical capability of a unit to use alternate 
fuel as identified in paragraph (a) (1) of this section prior to the 
date of publication of the notice of the proposed prohibition. OFP will 
publish this finding in the Federal Register along with the notice of 
the proposed prohibition.
    (c) Technical capability. (1) In the case of electing and certifying 
powerplants, OFP will consider ``technical capability'' on a case-by-
case basis in order to make the required finding. In the case of a 
certifying powerplant, the powerplant should present information to 
support the certification relevant to the considerations set forth 
below. OFP will consider the ability of the unit, from the point of fuel 
intake to physically sustain combustion of a given fuel and to maintain 
heat transfer.\2\
---------------------------------------------------------------------------


    \2\ OFP will not ordinarily consider the nature or absence of 
appurtenances outside the unit. For example, OFP will examine the 
furnace configuration and ash removal capability but will not normally 
consider the need to install pollution control equipment as a measure of 
technical capability. Furthermore, OFP will not normally conclude that 
the absence of fuel handling equipment, such as conveyor belts, 
pulverizers, or unloading facilities, bears on the issue of a unit's 
``technical capability'' to burn an alternate fuel.

---------------------------------------------------------------------------

[[Page 59]]

    (2) OFP considers that a unit ``had'' the technical capability to 
use an alternate fuel if the unit was once able to burn that fuel 
(regardless of whether the unit was expressly designed to burn that fuel 
or whether it ever actually did burn it), but is no longer able to do so 
at the present due to temporary or permanent alterations to the unit 
itself.3
---------------------------------------------------------------------------


    3 For example, a unit which at one time burned solid coal but 
which could no longer do so because its coal firing ports and sluicing 
channels had been cemented over, would be classified as having ``had'' 
the technical capability to use coal. (The question of whether it again 
``could have'' such capability without ``substantial physical 
modification'' is a separate and additional question.)
---------------------------------------------------------------------------

    (3) A unit ``has'' the technical capability to use an alternate fuel 
if it can burn an alternate fuel, notwithstanding the fact that 
adjustments must be made to the unit beforehand or that pollution 
control equipment may be required to meet air quality 
requirements.4
---------------------------------------------------------------------------


    4  A unit designed to burn natural gas shall be presumed to 
have the technical capability to burn a synthetic fuel such as medium 
Btu gas from coal (assuming such gas is available unless convincing 
evidence to the contrary is submitted in rebuttal). Also a unit designed 
to burn oil may, depending upon the chemical characteristics, be a unit 
that ``has'' the technical capability to burn liquefied coal. The fact 
that certain adjustments may be necessary does not render this a 
``hypothetical'' as opposed to a ``real'' capability. Even an oil fired 
unit converting from the use of 2 distillate to 6 residual oil may be 
required to adjust or replace burner nozzles and add soot blowers.
---------------------------------------------------------------------------

    (d) Substantial physical modification. In the case of electing and 
certifying powerplants, OFP will make its determination on whether a 
physical modification to a unit is ``substantial'' on a case-by-case 
basis. In the case of certifying powerplants, OFP will consider the 
factors set forth below for the purpose of concurrence in the 
certification. OFP will consider physical modifications made to the unit 
as ``substantial'' where warranted by the magnitude and complexity of 
the engineering task or where the modification would impact severely 
upon operations at the site.\5\ OFP will not, however, assess physical 
modification on the basis of cost.
---------------------------------------------------------------------------


    \5\ Generally, modification of a unit to burn coal or an alternate 
fuel will be considered insubstantial if significant alterations to the 
boiler, such as a change to the furnace configuration or a complete 
respacing of the tubes, are not required. Minor alterations such as 
replacement of burners or additions of soot blowers, and additions or 
alterations outside the boiler, shall not cause the modification to be 
substantial.
---------------------------------------------------------------------------

    (e) Substantial reduction in rated capacity. In the case of electing 
and certifying powerplants, OFP will make this determination on the 
basis of the following factors. A certifying powerplant should present 
information to support its certification regarding these factors in 
order for OFP to make its review for concurrence.
    (1) OFP regards a unit's derating of 25 percent or more, as a result 
of converting a unit from oil or gas to an alternate fuel, as 
substantial.
    (2) OFP will presume that a derating of less than 10 percent, as a 
result of converting a unit from oil or gas to an alternate fuel, is not 
substantial unless convincing evidence to the contrary is submitted in 
rebuttal.6
---------------------------------------------------------------------------


    6 For example, units that are the subject of a prohibition 
order will not have installed any operating air pollution control 
equipment sufficient to burn coal in compliance with applicable 
environmental equipments. The installation and use of air pollution 
control equipment alone can, in many cases, produce a derating. 
Moreover, the shift to coal itself will, because of differences in 
energy density and fuel flow characteristics, typically involve some 
derating.
---------------------------------------------------------------------------

    (3) OFP will assess units for which a derating is claimed of 10 
percent or more, but less than 25 percent, on a case-by-case.
    (4) In assessing whether a unit's derating is not substantial, OFP 
will consider the impact of a reduction in rated capacity of the unit 
taking into consideration all necessary appurtenances such as air 
pollution control equipment

[[Page 60]]

required to burn an alternate fuel in compliance with environmental 
requirements expected to be applicable at the date the prohibitions 
contained in the final prohibition order become effective. However, the 
potential order recipient may raise in rebuttal the impact of derating 
on the site at which the unit is located and on the system as well as on 
the unit itself, if under paragraph (e)(2), or case-by-case, if under 
paragraph (e)(3) of this section.
    (f) Financial feasibility. In the case of certifying and electing 
powerplants, OFP will make this finding based on the following 
considerations. A certifying powerplant should present information to 
support its certification relevant to these considerations in order for 
OFP to make its review for concurrence. Conversion of a unit to burn 
coal or an alternate fuel shall be deemed financially feasible if the 
firm has the actual ability to obtain sufficient capital to finance the 
conversion, including all necessary land, coal and ash handling 
equipment, pollution control equipment, and all other necessary 
expenditures, without violating legal restrictions on its ability to 
raise debt or equity capital, unreasonably diluting shareholder equity, 
or unreasonably adversely affecting its credit rating. OFP will consider 
any economic or financial factors presented by the proposed order 
recipient in determining the firm's ability or inability to finance the 
conversion including, but not limited to, the following:
    (1) The required coverage ratios on the firm's debt and preferred 
stock;
    (2) The firm's investment program; and
    (3) The financial impact of the conversion, including other 
conversions which are or may be undertaken voluntarily by the proposed 
order recipient or imposed upon the recipient's system by the Act, and 
including pending or planned construction or reconstruction of 
alternate-fuel-fired plants and plants exempt from FUA prohibitions.\7\ 
Where helpful in clarifying the long-term financial feasibility of a 
conversion, DOE may analyze the economic benefits anticipated from 
operation of the converted unit or units using coal or other alternate 
fuel relative to those from continued operation using petroleum or 
natural gas.
---------------------------------------------------------------------------


    \7\ OFP will not require the proposed order recipient to cancel or 
defer construction or reconstruction of any alternate-fuel-fired 
facility, or any facility exempt from the prohibitions of the Act, for 
which a decision to finance such facility has been made by the 
appropriate company official before the publication of the prohibition 
order. The proposed order recipient may choose to cancel or defer any 
such facility.

(Approved by the Office of Management and Budget under control number 
---------------------------------------------------------------------------
1903-0077)

(Energy Supply and Environmental Coordination Act of 1974, Pub. L. 93-
319, as amended by Pub. L. 94-163, Pub. L. 95-70, and 15 U.S.C. 719 et 
seq.; Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 
(42 U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 
1978, Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus 
Budget Reconciliation Act of 1981 (Pub. L. 97-35); E.O. 12009, 42 FR 
46267, Sept. 15, 1977)
[45 FR 53692, Aug. 12, 1980, as amended at 47 FR 17044, Apr. 21, 1982; 
47 FR 50849, Nov. 10, 1982]



Sec. 504.7  Prohibition against excessive use of petroleum or natural gas in mixtures--electing powerplants.

    (a) In the case of electing powerplants, if OFP finds that it is 
technically and financially feasible for a unit to use a mixture of 
petroleum or natural gas and an alternate fuel as its primary energy 
source, OFP may prohibit, by order, the use in that unit of petroleum or 
natural gas, or both, in amounts exceeding the minimum amount necessary 
to maintain reliability of operation consistent with maintaining 
reasonable fuel efficiency of the mixture.
    (b) In making the technical feasibility finding required by former 
section 301 (b) and (c) of the Act and paragraph (a) of this section, 
OFP may weigh ``physical modification'' or ``derating of the unit,'' but 
these considerations, by themselves, will not control the technical 
feasibility finding. A technical feasibility finding might be made 
notwithstanding the need for substantial physical modification. The 
economic consequences of a substantial physical modification are taken 
into account in determining financial feasibility.


[[Page 61]]


(Energy Supply and Environmental Coordination Act of 1974, Pub. L. 93-
319, as amended by Pub. L. 94-163, Pub. L. 95-70, and 15 U.S.C. 719 et 
seq.; Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 565 
(42 U.S.C. 7101 et seq.); Powerplant and Industrial Fuel Use Act of 
1978, Pub. L. 95-620, 92 Stat. 3269 (42 U.S.C. 8301 et seq.); Omnibus 
Budget Reconciliation Act of 1981 (Pub. L. 97-35); E.O. 12009, 42 FR 
46267, Sept. 15, 1977)
[47 FR 17045, Apr. 21, 1982, and 47 FR 50850, Nov. 10, 1982]



Sec. 504.8  Prohibitions against excessive use of petroleum or natural gas in mixtures--certifying powerplants.

    (a) In the case of certifying powerplants, OFP may prohibit the use 
of petroleum or natural gas in such powerplant in amounts exceeding the 
minimum amount necessary to maintain reliability of operation consistent 
with maintaining the reasonable fuel efficiency of the mixture. This 
authority is contained in section 301(c) of the Act, as amended. The 
owner or operator of the powerplant may certify at any time to OFP that 
it is technically capable and financially feasible for the unit to use a 
mixture of petroleum or natural gas and coal or another alternate fuel 
as a primary energy source. In assessing whether the unit is technically 
capable of using a mixture of petroleum or natural gas and coal or 
another alternate fuel as a primary energy source, for purposes of this 
section, the extent of any physical modification necessary to convert 
the unit and any concomitant reduction in rated capacity are not 
relevant factors. So long as a unit as proposed to be modified would be 
technically capable of using the mixture as a primary energy source 
under Sec. 504.6(c), this certification requirement shall be deemed met. 
The criteria for certification of financial feasibility are found at 
Sec. 504.6(f). In addition, the powerplant's owner or operator must 
submit a prohibition compliance schedule, which meets the requirements 
of Sec. 504.5(d).
    (b) If OFP concurs with the certification, a prohibition order 
against the unit's excessive use of petroleum or natural gas in the 
mixture will be issued following the procedure outlined in Sec. 501.52 
of these regulations.
    (c) The petitioner may seek to amend its certification in order to 
take into account changes in relevant facts and circumstances by 
following the procedure contained in Sec. 501.52(d).

    Note: The authority of OFP implemented under this section should not 
be confused with the other two fuel mixture provisions of these 
regulations. One is the general requirement that petitioners for 
permanent exemptions demonstrate that the use of a mixture of natural 
gas or petroleum and an alternate fuel is not economically or 
technically feasible (See Sec. 504.15). The second is the permanent fuel 
mixtures exemption itself (See Sec. 504.56).

(Approved by the Office of Management and Budget under control number 
1903-0077)

(Department of Energy Organization Act, Pub. L. 95-91 (42 U.S.C. 7101 et 
seq.); Energy Supply and Environmental Coordination Act of 1974, Pub. L. 
93-319, as amended by Pub. L. 94-163, Pub. L. 95-70, and Pub. L. 95-620 
(15 U.S.C. 719 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, as amended by Pub. L. 97-35 (42 U.S.C. 8301 et seq.); 
Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35)
[47 FR 17045, Apr. 21, 1982]



Sec. 504.9  Environmental requirements for certifying powerplants.

    Under Secs. 501.52, 504.5 and 504.6 of these regulations, OFP may 
prohibit, in accordance with section 301 and section 303 (a) or (b) of 
FUA, as amended, the use of natural gas or petroleum, or both, as a 
primary energy source in any certifying powerplant. Under sections 
301(c) and 303(a) of FUA, as amended, and Secs. 501.52, 504.6, and 504.8 
of these regulations, OFP may prohibit the excessive use of natural gas 
or petroleum in a mixture with an alternate fuel as a primary energy 
source in a certifying powerplant.
    (a) NEPA compliance. Except as provided in paragraph (c) of this 
section, where the owner or operator of a powerplant seeks to obtain an 
OFP prohibition order through the certification procedure, and did not 
hold either a proposed prohibition order under former section 301 of FUA 
or pending order under section 2 of ESECA, it will be responsible for 
the costs of preparing any necessary Environmental Assessment (EA) or 
Environmental Impact Statement (EIS) arising from OFP's obligation to 
comply with NEPA. The powerplant owner or operator shall enter into a 
contract with an

[[Page 62]]

independent party selected by OFP, who is qualified to conduct an 
environmental review and prepare an EA or EIS, as appropriate, and who 
does not have a financial or other interest in the outcome of the 
proceedings, under the supervision of OFP. The NEPA process must be 
completed and approved before OFP will issue a final prohibition order 
based on the certification.
    (b) Environmental review procedure. Except as provided in paragraph 
(c) of this section, environmental documents, including the EA and EIS, 
where necessary, will be prepared utilizing the process set forth above. 
OFP, the powerplant owner or operator and the independent third party 
shall enter into an agreement for the owner or operator to engage and 
pay directly for the services of the qualified third party to prepare 
the necessary documents. The third party will execute an OFP prepared 
disclosure document stating that he does not have any conflict of 
interest, financial or otherwise, in the outcome of either the 
environmental process or the prohibition order proceeding. The agreement 
shall outline the responsibilities of each party and his relationship to 
the other two parties regarding the work to be done or supervised. OFP 
shall approve the information to be developed and supervise the 
gathering, analysis and presentation of the information. In addition, 
OFP will have the authority to approve and modify any statement, 
analysis, and conclusion contained in the third party prepared 
environmental documents.
    (c) Financial hardship. Whenever the bona fide estimate of the costs 
associated with NEPA compliance, if borne by the powerplant owner or 
operator, would make the conversion financially infeasible, OFP may 
waive the requirement set forth in paragraphs (a) and (b) of this 
section and perform the necessary environmental review.

(Approved by the Office of Management and Budget under control number 
1903-0077)


(Department of Energy Organization Act, Pub. L. 95-91 (42 U.S.C. 7101 et 
seq.); Energy Supply and Environmental Coordination Act of 1974, Pub. L. 
93-319, as amended by Pub. L. 94-163, Pub. L. 95-70, and Pub. L. 95-620 
(15 U.S.C. 719 et seq.); Powerplant and Industrial Fuel Use Act of 1978, 
Pub. L. 95-620, as amended by Pub. L. 97-35 (42 U.S.C. 8301 et seq.); 
Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35)
[47 FR 17046, Apr. 21, 1982]

Appendix I to Part 504--Procedures for the Computation of the Real Cost 
                               of Capital

    (a) The firm's real after-tax weighted average marginal cost of 
capital (K) is computed with equation 1.
[GRAPHIC] [TIFF OMITTED] TC01OC91.003

The terms in equation 1 are defined as follows:

Wd=Fraction of existing capital structure which is debt.
Wp=Fraction of existing capital structure which is preferred 
          equity.
We=Fraction of existing capital structure which is common 
          equity and retained earnings.
Rd=Predicted nominal cost of long term debt expressed as a 
          fraction.
Rp=Predicted nominal cost of preferred stock expressed as a 
          fraction.
Re=Predicted nominal cost of common stock expressed as a 
          fraction.
INF=Percentage change in the GNP implicit price deflator over the past 
          12 months expressed as a fraction.

[[Page 63]]

fd=Flotation cost of debt expressed as a fraction.
fp=Flotation cost of preferred stock expressed as a fraction.
fe=Flotation cost of common stock expressed as a fraction.
t=Marginal federal income tax rate for the current year.

    (b) Information on parameters used in Equation 1. (1) The parameters 
used in equation 1 will be the best practicable estimates. They will be 
obtained from the firm, accepted rating services (e.g., Standard & 
Poors, Moody's), government publications, accepted financial 
publications, annual financial reports and statements of firms, and 
investment bankers.
    (2) The predicted nominal cost of debt (Rd) may be 
estimated by determining the current average yield on newly issued 
bonds--industrial or utility as appropriate--which have the same rating 
as the firm's most recent debt issue.
    (3) The predicted nominal cost of preferred stock (Rp) 
may be estimated by determining the current average yield on newly 
issued preferred stock--industrial or utility as appropriate--which has 
the same rating as the firm's most recent preferred stock issue.
    (4)(A) The predicted nominal cost of common stock (Re) is 
computed with equation 2.

Eq 2    Re=Rf+B x Rm

where:

    Rf=The risk free interest rate--the average of the most 
recent auction rates of U.S. Government 13-week Treasury Bills,
    B=The ``beta'' coefficient--the relationship between the excess 
return on common stock and the excess return on the S&P 500 composite 
index, and
    Rm=The mean excess return on the S&P 500 composite 
index--the mean of the difference between the return on the S&P 500 
composite index and the risk free interest rate for the years 1926-1976 
as computed by Ibbotson and Sinquefield(1)--9.2%

    (B) The ``beta'' coefficient is computed with regression analysis 
techniques. The regression equation is Equation 3.

        (Ret-Rft) = 
    A+B(Rmt-Rft)+et

                                                             Eq. 3

where
[GRAPHIC] [TIFF OMITTED] TC01OC91.004

Rf t=The risk free interest rate in month t--the average of 
          the yields on 13-week treasury bills auctioned in month t.(2)
A=A constant which should not be significantly different than zero.
[GRAPHIC] [TIFF OMITTED] TC01OC91.005

et=The error in month t.
PRCCt=Closing market prices of the firm's common stock at the 
          end of month t fully adjusted for splits and stock dividends.
DIVRATEt=The sum of the dividends paid in the fiscal year 
          which contain month t.
Vsp,t=The market value of ``one share'' of the S&P 500 
          composite index at the end of month t.
Dsp,t=The estimated monthly income received from holding 
          ``one share'' of the S&P 500 in month t.

    The regression analysis is done with sixty months of data. The first 
month (t=1) is sixty months before the month in which the firm's current 
fiscal year started. The last month (t=60) is the last month of the past 
fiscal year.
    (5) Where the parameters specified above are not obtainable, 
alternate parameters that closely correspond to those above may be used. 
This may include substituting a bond yield for nominal cost of preferred 
stock where the former is not available. Where the capital structure 
does not consist of any debt, preferred equity, or common equity, an 
alternate methodology to predict the firm's real after-tax marginal cost 
of capital may be used.
    Example of using alternate parameters that closely correspond to 
those above are:
    (A) In the case of industrials, who do not typically issue preferred 
stock, the predicted nominal cost of preferred stock (RP) can 
be estimated by determining the current average yield on newly issued 
industrial bonds which have the same rating as the firm's most recent 
debt issue.
    (B) If necessary, the following assumptions can be made to determine 
the nominal cost of debt or preferred stock and their flotation costs.
    (i) Where a company issued privately placed debt that was not rated, 
the rating, applied to preferred stock could be used to determine the 
cost of debt and its flotation cost.
    (ii) Where a company issued privately placed preferred stock that 
was not rated, the rating applied to debt could be used to determine the 
cost of preferred stock and its flotation costs.
    (iii) In the case where all issues were privately placed, the 
current average yield on all newly issued debt or preferred could be 
used to determine the cost of debt or preferred respectively, and an 
average flotation cost, for debt or preferred, could be used.
    (C) Evidence Requirements. Copies of this calculation with notations 
as to the source of the data must be submitted.

[[Page 64]]

                                Footnotes

    (1) Ibbotson, R.E. and R.A. Sinquefield, Stocks, Bonds, Bills, and 
Inflation, Charlottesville, Va.: The Financial Analysts Research 
Foundation, 1977, cited by Ernst & Whinney, Costs of Capital and Rates 
of Return for Industrial Firms and Class A&B Electric Utility Firms, 
June 1979, p. 3-8.
    (2) As an option, Rf tcan be developed with the following 
equation:
[GRAPHIC] [TIFF OMITTED] TC01OC91.006

where:

    Dt=The average annual yield on three month U.S. Treasury 
bills reported in the Survey of Current Business auctioned in month t--
which is reported using the bank discount method.
    N=Number of days to maturity.
[46 FR 59920, Dec. 7, 1981]

             Appendix II to Part 504--Fuel Price Computation

    (a) Introduction. This appendix provides the equations and 
parameters needed to specify the price of the delivered fuels to be used 
in the cost calculations associated with parts 503 and 504 of these 
regulations. The delivered price of the fuel to be used to calculate 
delivered fuel expenses must reflect (1) the price of each fuel at the 
time of the petition, and (2) the effects of future real price increases 
for each fuel. The delivered price of an alternate fuel used to 
calculate delivered fuel expenses must reflect the petitioner's 
delivered price of the alternate fuel and the effects of real increases 
in the price of that alternate fuel. Paragraphs (b), (c) and (d) below 
provide the procedure to: (1) Calculate fuel price and inflation 
indices; (2) account for projected real increases in fuel prices when 
planning to burn one or more than one fuel; and (3) account for 
projected real increases in the price of the alternate fuel. Table II-1 
of this appendix (See paragraph (b)) contains example fuel price and 
inflation indices based on the latest data appearing in the Energy 
Information Administration's (EIA) Annual Energy Outlook (AEO).
    The fuel price and inflation indices will change yearly with the 
publication of the AEO. Revisions shall become effective after final 
publication. However, the relevant set of parameters for a specific 
petition for exemption will be the set in effect at the time the 
petition is submitted or the set in effect at the time a decision is 
rendered, whichever is more favorable to the petitioner.
    (b) Computation of Fuel Price and Inflation Indices.
    (1) the Petitioner is responsible for computing the annual fuel 
price and inflation indices by using Equation II-1 and Equation II-2, 
respectively. The petitioner may compute the fuel price index specified 
in Equation II-1 or use his own price index. However, if he uses his own 
price index, the source or the derivation of the index must be fully 
documented and be contained in the evidential summary.

    EQ II-2 is:
    [GRAPHIC] [TIFF OMITTED] TC01OC91.007
    
where:
    PXi=The fuel price index for each fuel in year i. 
Pi=Price of fuel in year i.
    Po=Price of fuel in base year.

    EQ II-2 is:
    [GRAPHIC] [TIFF OMITTED] TC01OC91.008
    
where:
    IXi=The inflation index in year i.
    GXi=The NIPA GNP price deflator for year i.
    GXo=The NIPA GNP price deflator for the base year.

    (2) The parameters to be used in EQ II-1 are the Base Case fuel 
price projections found in EIA's current AEO.
    (3) When computing annual inflation indices, the petitioner is to 
use the Base Case National Macroeconomic Indicators (NIPA GNP Price 
Deflator) contained in EIA's current AEO. If necessary, the petitioner 
must rebase the projection to the same year used for the fuel price 
projections. For example, in 1989 AEO projects the price deflator in 
1982 dollars; this must be rebased to the year in which the petition is 
filed. The methodology used to rebase the inflation indices must follow 
standard statistical procedures and must be fully documented within the 
petition. This index will remain frozen at the last year of the AEO's 
projection for the remainder of the unit'(s) useful life.
    (4) Table II-1 is provided as an example of the application of 
equations II-1 and II-2. This table contains annual fuel price indices 
for distillate oil, residual oil, natural gas, and coal. It also 
contains annual inflation indices. These values were computed from 
information contained in Table A3 and Table A11 of EIA's AEO, 1989.

[[Page 65]]



                                        Table II-1: Price and Inflation Indices for use in the Cost Calculations                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
          Year                Distillate (DPX)           Residual (RPX)           Natural gas (GPX)            Coal (CPX)             Inflation (IX)    
--------------------------------------------------------------------------------------------------------------------------------------------------------
1986....................                    1.0000                    1.0000                    1.0000                   1.0000                   1.0000
1987....................                    0.9810                    1.2134                    0.9508                   0.9231                   1.0334
1988....................                    0.9429                    0.9407                    0.8934                   0.8876                   1.0658
1989....................                    0.8929                    0.9328                    0.9057                   0.8639                   1.1054
1990....................                    0.9905                    1.0119                    0.9221                   0.9112                   1.1607
1991....................                    1.0381                    1.0751                    0.9344                   0.9172                   1.2204
1992....................                    1.0929                    1.1344                    1.0205                   0.9231                   1.2836
1993....................                    1.1595                    1.2292                    1.1148                   0.9349                   1.3512
1994....................                    1.2286                    1.3241                    1.1844                   0.9467                   1.4214
1995....................                    1.3000                    1.4150                    1.2705                   0.9527                   1.4960
1996....................                    1.4000                    1.5415                    1.4016                   0.9586                   1.5768
1997....................                    1.4762                    1.6403                    1.4918                   0.9704                   1.6585
1998....................                    1.5452                    1.7273                    1.5615                   0.9763                   1.7410
1999....................                    1.6143                    1.7905                    1.6475                   0.9882                   1.8235
2000....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2001....................                    1.6690                    I.8340                    1.7049                   0.9941                   1.9025
2002....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2003....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2004....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2005....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2006....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2007....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2008....................                    1.6690                    1.8430                    1.7049                   0.9941                   1.9025
2009....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025
2010....................                    1.6690                    1.8340                    1.7049                   0.9941                   1.9025

[[Page 66]]

                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (C) Fuel Price Computation.
    (1) The delivered price of the proposed fuel to be burned 
(FPBi) must reflect the real escalation rate of the proposed 
fuel, and must be computed with Equation EQ II-3.
EQ-II-3 is: FPBi=MPB [PXi]

where:

    FPBi=Price of the proposed fuel (distillate oil, residual 
oil, or natural gas) in year i.
    MPB=The current delivered market price of the proposed fuel.
    PXi=The fuel price index value in year i, computed with 
Equation II-1.

or:

    (2) When planning to use more than one fuel in the proposed unit(s), 
the petitioner must use Equation II-1 and Equation II-3 to calculate the 
annual fuel price of each fuel to be used. The petitioner then must 
estimate the proportion of each fuel to be burned annually over the 
useful life of the unit(s). With these proportions and the respective 
annual fuel prices for each fuel, the petitioner must compute an annual 
weighted average fuel price. The methodology used to calculate the 
weighted average fuel price must follow standard statistical procedures 
and be fully documented within the petition.
    (d) Fuel Price Computation--Alternate Fuel. The delivered price of 
alternate fuel (PFAi) must reflect the real escalation rate 
of alternate fuel and must be computed with Equation II-4.
Equation II-4 is:

    PFAi=APF x apxi
where:
    PFA=The price of the alternate fuel in year i.
    APF-i=The current market price of the alternate fuel 
f.o.b. the facility).
    APXi=The alternate fuel price index value for year i, 
computed with Equation II-1.

    In most cases the alternate fuel will be coal. The petitioner must 
use Equation II-1 (paragraph (b)) to compute the escalation rate 
(APXi). If an alternate fuel other than coal is proposed the 
source or the derivation of the index must be fully documented and be 
contained in the evidential summary.
[54 FR 52896, Dec. 22, 1989]



PART 508  [RESERVED]






PART 516  [RESERVED]




[[Page 67]]



     SUBCHAPTER G--NATURAL GAS (ECONOMIC REGULATORY ADMINISTRATION)





PART 580--CURTAILMENT PRIORITIES FOR ESSENTIAL AGRICULTURAL USES--Table of Contents




Sec.
580.01  Purpose.
580.02  Definitions.
580.03  Curtailment priorities.
580.04  Administrative procedures. [Reserved]

    Authority: Secs. 401, 403, Pub. L. 95-621, 92 Stat. 3394-3395, 3396; 
secs. 301(b), 402(a), Pub. L. 95-91, 91 Stat. 578, 594, (42 U.S.C. 
7115(b), 7117(a)); E.O. 12009, 42 FR 46267.

    Source: 44 FR 15646, Mar. 15, 1979, unless otherwise noted.



Sec. 580.01  Purpose.

    The purpose of this part is to implement the authority granted to 
the Secretary of Energy in section 401 of the Natural Gas Policy Act of 
1978, Public Law 95-621, 92 Stat. 3394-3395 (1978).



Sec. 580.02  Definitions.

    (a) Terms defined in section 2 of the Natural Gas Policy Act of 1978 
shall have the same meaning, as applicable, for purposes of this part, 
unless further defined in paragraph (b) of this section.
    (b) The following definitions are applicable to this part:
    (1) Commercial establishment means any establishment, (including 
institutions and local, state and federal government agencies) engaged 
primarily in the sale of goods or services, where natural gas is used 
for purposes other than those involving manufacturing or electric power 
generation.
    (2) Essential agricultural use means any use of natural gas:
    (i) For agricultural production, natural fiber production, natural 
fiber processing, food processing, food quality maintenance, irrigation 
pumping, crop drying; or
    (ii) As a process fuel or feedstock in the production of fertilizer, 
agricultural chemicals, animal feed, or food which the Secretary of 
Agriculture determines is necessary for full food and fiber production.
    (3) Essential agricultural user means any person who uses natural 
gas for an essential agricultural use as defined in paragraph (b)(2) of 
this section.
    (4) Hospital means a facility whose primary function is delivering 
medical care to patients who remain at the facility, including nursing 
and convalescent homes. Outpatient clinics or doctors' offices are not 
included in this definition.
    (5) High-priority use means any use of natural gas by a high-
priority user as defined in paragraph (a)(6) of this section.
    (6) High-priority user means, in no specific order, any person who 
uses natural gas:
    (i) In a residence, or
    (ii) In a commercial establishment in amounts of less than 50 Mcf on 
a peak day; or
    (iii) In any school or hospital; or
    (iv) For minimum plant protection when operations are shut down, for 
police protection, for fire protection, in a sanitation facility, in a 
correctional facility, or for emergency situations pursuant to 18 CFR 
2.78(a)(4).
    (7) Interstate pipeline means any person engaged in natural gas 
transportation subject to the jurisdiction of the Federal Energy 
Regulatory Commission under the Natural Gas Act.
    (8) Residence means a dwelling using natural gas predominately for 
residential purposes such as space heating, air conditioning, hot water 
heating, cooking, clothes drying, and other residential uses, and 
includes apartment buildings and other multi-unit residential buildings.
    (9) School means a facility, the primary function of which is to 
deliver instruction to regularly enrolled students in attendance at such 
facility. Facilities used for both educational and non-educational 
activities are not included under this definition unless the latter are 
merely incidental to the delivery of instruction.

[[Page 68]]



Sec. 580.03  Curtailment priorities.

    (a) Notwithstanding any provision of law other than section 401(b) 
of the Natural Gas Policy Act of 1978, or any other rule, regulation, or 
order of the Department of Energy, the Federal Energy Regulatory 
Commission or their predecessor agencies, and to the maximum extent 
practicable, no curtailment plan of an interstate pipeline may provide 
for curtailment of deliveries of natural gas for any essential 
agricultural use, unless:
    (1) Such curtailment does not reduce the quantity of natural gas 
delivered for such use below the use requirement certified by the 
Secretary of Agriculture under section 401(c) of the Natural Gas Policy 
Act of 1978 in order to meet the requirements of full food and fiber 
production; or
    (2) Such curtailment is necessary in order to meet the requirements 
of high-priority users; or
    (3) The Federal Energy Regulatory Commission, in consultation with 
the Secretary of Agriculture, determines, by rule or order issued 
pursuant to section 401(b) of the Natural Gas Policy Act of 1978, that 
use of a fuel (other than natural gas) is economically practicable and 
that the fuel is reasonably available as an alternative for such 
essential agricultural use.
    (b) Any essential agricultural user who also qualifies as a high-
priority user shall be a high-priority user for purposes of paragraph 
(a) of this section.
    (c) The specific relative order of priority for all uses and users 
of natural gas, including high-priority and essential agricultural uses 
and users, shall remain as reflected in effective curtailment plans of 
interstate pipelines filed with the Federal Energy Regulatory Commission 
to the extent that the relative order of priorities does not conflict 
with paragraph (a) of this section.
    (d) Nothing in this rule shall prohibit the injection of natural gas 
into storage by interstate pipelines or deliveries to its customers for 
their injection into storage unless it is demonstrated to the Federal 
Energy Regulatory Commission that these injections or deliveries are not 
reasonably necessary to meet the requirements of high-priority users or 
essential agricultural uses.



Sec. 580.04  Administrative procedures. [Reserved]



PART 590--ADMINISTRATIVE PROCEDURES WITH RESPECT TO THE IMPORT AND EXPORT OF NATURAL GAS--Table of Contents




                      Subpart A--General Provisions

Sec.
590.100  OMB Control Numbers.
590.101  Purpose and scope.
590.102  Definitions.
590.103  General requirements for filing documents with FE.
590.104  Address for filing documents.
590.105  Computation of time.
590.106  Dockets.
590.107  Service.
590.108  Off-the-record communications.
590.109  FE investigations.

 Subpart B--Applications for Authorization to Import or Export Natural 
                                   Gas

590.201  General.
590.202  Contents of applications.
590.203  Deficient applications.
590.204  Amendment or withdrawal of applications.
590.205  Notice of applications.
590.206  Notice of procedures.
590.207  Filing fees.
590.208  Small volume exports.
590.209  Exchanges by displacement

                          Subpart C--Procedures

590.301  General
590.302  Motions and answers.
590.303  Interventions and answers.
590.304  Protests and answers.
590.305  Informal discovery.
590.306  Subpoenas.
590.307  Depositions.
590.308  Admissions of facts.
590.309  Settlements.
590.310  Opportunity for additional procedures.
590.311  Conferences.
590.312  Oral presentations.
590.313  Trial-type hearings.
590.314  Presiding officials.
590.315  Witnesses.
590.316  Shortened proceedings.
590.317  Complaints.

                     Subpart D--Opinions and Orders

590.401  Orders to show cause.
590.402  Conditional orders.
590.403  Emergency interim orders.
590.404  Final opinions and orders.
590.405  Transferability.
590.406  Compliance with orders.

[[Page 69]]

590.407  Reports of changes.

                  Subpart E--Applications for Rehearing

590.501  Filing.
590.502  Application is not a stay.
590.503  Opinion and order on rehearing.
590.504  Denial by operation of law.
590.505  Answers to applications for rehearing.

    Authority: Secs. 301(b), 402(f), and 644, Pub. L. 95-91, 91 Stat. 
578, 585, and 599 (42 U.S.C. 7151(b), 7172(f), and 7254), Sec. 3, Act of 
June 21, 1938, c. 556, 52 Stat. 822 (15 U.S.C. 717b); E.O. 12009 (42 FR 
46267, September 15, 1977); DOE Delegation Order Nos. 0204-111 and 0204-
127 (49 FR 6684, February 22, 1984; 54 FR 11437, March 20, 1989).

    Source: 54 FR 53531, Dec. 29, 1989, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 590.100  OMB Control Numbers.

    The information collection requirements contained in this part have 
been approved by the Office of Management and Budget under Control No. 
1903-0081.



Sec. 590.101  Purpose and scope.

    The purpose of this part is to establish the rules and procedures 
required to be followed by persons to obtain authorizations from DOE to 
import or export natural gas under the Natural Gas Act and by all other 
persons interested in participating in a natural gas import or export 
proceeding before the agency. This part establishes the procedural rules 
necessary to implement the authorities vested in the Secretary of Energy 
by sections 301(b) and 402(f) of the DOE Act, which have been delegated 
to the Assistant Secretary.



Sec. 590.102  Definitions.

    As used in this part:
    (a) Assistant Secretary means the Assistant Secretary for Fossil 
Energy or any employee of the DOE who has been delegated final 
decisional authority.
    (b) Contested proceeding means a proceeding:
    (1) Where a protest or a motion to intervene, or a notice of 
intervention, in opposition to an application or other requested action 
has been filed, or
    (2) Where a party otherwise notifies the Assistant Secretary and the 
other parties to a proceeding in writing that it opposes an application 
or other requested action.
    (c) Decisional employee means the Assistant Secretary, presiding 
officials at conferences, oral presentations or trial-type hearings, and 
any other employee of the DOE, including consultants and contractors, 
who are, or may reasonably be expected to be, involved in the decision-
making process, including advising the Assistant Secretary on the 
resolution of issues involved in a proceeding. The term includes those 
employees of the DOE assisting in the conduct of trial-type hearings by 
performing functions on behalf of the Assistant Secretary or presiding 
official.
    (d) DOE means the Department of Energy, of which FE is a part.
    (e) DOE Act means the Department of Energy Organization Act, Public 
Law 95-91, 91 Stat. 565 (42 U.S.C. 7101 et seq.).
    (f) FE means the Office of The Assistant Secretary for Fossil 
Energy.
    (g) FERC means the Federal Energy Regulatory Commission.
    (h) Interested person means a person, other than a decisional 
employee, whose interest in a proceeding goes beyond the general 
interest of the public as a whole and includes applicants, intervenors, 
competitors of applicants, and other individuals and organizations, 
including non-profit and public interest organizations, and state, 
local, and other public officials, with a proprietary, financial or 
other special interest in the outcome of a proceeding. The term does not 
include other federal agencies or foreign governments and their 
representatives, unless the agency, foreign government, or 
representative of a foreign government is a party to the proceeding.
    (i) Natural gas means natural gas and mixtures of natural gas and 
synthetic natural gas, regardless of physical form or phase, including 
liquefied natural gas and gels primarily composed of natural gas.
    (j) NGA means the Natural Gas Act of June 21, 1938, c. 556, 52 Stat. 
821 (15 U.S.C. 717 et seq.).
    (k) Off-the-record communication means a written or oral 
communication not on the record which is relevant to the merits of a 
proceeding, and about which the parties have not been given reasonable 
prior notice of

[[Page 70]]

the nature and purpose of the communication and an opportunity to be 
present during such communication or, in the case of a written 
communication, an opportunity to respond to the communication. It does 
not include communications concerned solely with procedures which are 
not relevant to the merits of a proceeding. It also does not include 
general background discussions about an entire industry or natural gas 
markets or communications of a general nature made in the course of 
developing agency policy for future general application, even though 
these discussions may relate to the merits of a particular proceeding.
    (l) Party means an applicant, any person who has filed a motion for 
and been granted intervenor status or whose motion to intervene is 
pending, and any state commission which has intervened by notice 
pursuant to Sec. 590.303(a).
    (m) Person means any individual, firm, estate, trust, partnership, 
association, company, joint-venture, corporation, United States local, 
state and federal governmental unit or instrumentality thereof, 
charitable, educational or other institution, and others, including any 
officer, director, owner, employee, or duly authorized representative of 
any of the foregoing.
    (n) Presiding official means any employee of the DOE who has been 
designated by the Assistant Secretary to conduct any stage of a 
proceeding, which may include presiding at a conference, oral 
presentation, or trial-type hearing, and who has been delegated the 
authority of the Assistant Secretary to make rulings and issue orders in 
the conduct of such proceeding, other than final opinions and orders, 
orders to show cause, emergency interim orders, or conditional decisions 
under subpart D and orders on rehearing under subpart E.
    (o) Proceeding means the process and activity, and any part thereof, 
instituted by FE either in response to an application, petition, motion 
or other filing under this part, or on its own initiative, by which FE 
develops and considers the relevant facts, policy and applicable law 
concerning the importation or exportation of natural gas and which may 
lead to the issuance of an order by the Assistant Secretary under 
subparts D and E.
    (p) State commission means the regulatory body of a state or 
municipality having jurisdiction to regulate rates and charges for the 
sale of natural gas to consumers within the state or municipality, or 
having any regulatory jurisdiction over parties involved in the import 
or export arrangement.



Sec. 590.103  General requirements for filing documents with FE.

    (a) Any document, including but not limited to an application, 
amendment of an application, request, petition, motion, answer, comment, 
protest, complaint, and any exhibit submitted in connection with such 
documents, shall be filed with FE under this part. Such document shall 
be considered officially filed with FE when it has been received and 
stamped with the time and date of receipt by the Office of Fuels 
Programs, FE. Documents transmitted to FE must be addressed as provided 
in Sec. 590.104. All documents and exhibits become part of the record in 
the official FE docket file and will not be returned. An original and 
fifteen (15) copies of all applications, filings and submittals shall be 
provided to FE. No specific format is required. Applicants required to 
file quarterly reports as a condition to an authorization need only file 
an original and four (4) copies.
    (b) Upon receipt by FE, each application or other initial request 
for action shall be assigned a docket number. Any petition, motion, 
answer, request, comment, protest, complaint or other document filed 
subsequently in a docketed proceeding with FE shall refer to the 
assigned docket number. All documents shall be signed either by the 
person upon whose behalf the document is filed or by an authorized 
representative. Documents signed by an authorized representative shall 
contain a certified statement that the representative is a duly 
authorized representative unless the representative has a certified 
statement already on file in the FE docket of the proceeding. All 
documents shall also be verified under oath or affirmation by the person 
filing, or by an officer or authorized representative of the firm having 
knowledge of the facts alleged. Each document filed

[[Page 71]]

with FE shall contain a certification that a copy has been served as 
required by Sec. 590.107 and indicate the date of service. Service of 
each document must be made not later than the date of the filing of the 
document.
    (c) A person who files an application shall state whether, to the 
best knowledge of that person, the same or a related matter is being 
considered by any other part of the DOE, including the FERC, or any 
other Federal agency or department and, if so, shall identify the matter 
and the agency or department.



Sec. 590.104  Address for filing documents.

    All documents filed under this part shall be addressed to: Office of 
Fuels Programs, Fossil Energy, U.S. Department of Energy, Docket Room 
3F-056, FE-50, Forrestal Building, 1000 Independence Avenue SW., 
Washington, DC 20585. All hand delivered documents shall be filed with 
the Office of Fuels Programs at the above address between the hours of 8 
a.m. and 4:30 p.m., Monday through Friday, except Federal holidays.



Sec. 590.105  Computation of time.

    (a) In computing any period of time prescribed or allowed by these 
regulations, the day of the act or event from which the designated 
period of time begins to run is not included. The period of time begins 
to run the next day after the day of the act or event. The last day of 
the period so computed is included unless it is a Saturday, Sunday, or 
legal Federal holiday, in which event the period runs until the end of 
the next day that is neither a Saturday, Sunday, nor a legal Federal 
holiday, unless otherwise provided by this part or by the terms of an FE 
order. Documents received after the regular business hours of 8 a.m. to 
4:30 p.m. are deemed filed on the next regular business day.
    (b) When a document is required to be filed with FE within a 
prescribed time, an extension of time to file may be granted for good 
cause shown.
    (c) An order is issued and effective when date stamped by the Office 
of Fuels Programs, FE, after the order has been signed unless another 
effective date is specified in the order.



Sec. 590.106  Dockets.

    The FE shall maintain a docket file of each proceeding under this 
part, which shall contain the official record upon which all orders 
provided for in subparts D and E shall be based. The official record in 
a particular proceeding shall include the official service list, all 
documents filed under Sec. 590.103, the official transcripts of any 
procedures held under subpart C, and opinions and orders issued by FE 
under subparts D and E, and reports of contract amendments under 
Sec. 590.407. All dockets shall be available for inspection and copying 
by the public during regular business hours between 8 a.m. and 4:30 p.m. 
Dockets are located in the Office of Fuels Programs, FE, Docket Room 3F-
056, Forrestal Building, 1000 Independence Avenue SW., Washington, DC 
20585.



Sec. 590.107  Service.

    (a) An applicant, any other party to a proceeding, or a person 
filing a protest shall serve a copy of all documents filed with FE upon 
all parties unless otherwise provided in this part. The copy of a 
document served upon parties shall be a true copy of the document filed 
with FE, but does not have to be a copy stamped with the time and date 
of receipt by FE. The FE shall maintain an official service list for 
each proceeding which shall be provided upon request.
    (b) When the parties are not known, such as during the initial 
comment period following publication of the notice of application, 
service requirements under paragraph (a) of this section may be met by 
serving a copy of all documents on the applicant and on FE for inclusion 
in the FE docket in the proceeding.
    (c) All documents required to be served under this part may be 
served by hand, certified mail, registered mail, or regular mail. It 
shall be the responsibility of the serving party to ensure that service 
is effected in a timely manner. Service is deemed complete upon delivery 
or upon mailing, whichever occurs first.
    (d) Service upon a person's duly authorized representatives on the 
official service list shall constitute service upon that person.

[[Page 72]]

    (e) All FE orders, notices, or other FE documents shall be served on 
the parties by FE either by hand, registered mail, certified mail, or 
regular mail, except as otherwise provided in this part.



Sec. 590.108  Off-the-record communications.

    (a) In any contested proceeding under this part:
    (1) No interested person shall make an off-the-record communication 
or knowingly cause an off-the-record communication to be made to any 
decisional employee.
    (2) No decisional employee shall make an off-the-record 
communication or knowingly cause an off-the-record communication to be 
made to any interested person.
    (3) A decisional employee who receives, makes, or knowingly causes 
to be made an oral off-the-record communication prohibited by this 
section shall prepare a memorandum stating the substance of the 
communication and any responses made to it.
    (4) Within forty-eight (48) hours of the off-the-record 
communication, a copy of all written off-the-record communications or 
memoranda prepared in compliance with paragraph (a)(3) of this section 
shall be delivered by the decisional employee to the Assistant Secretary 
and to the Deputy Assistant Secretary for Fuels Programs. The materials 
will then be made available for public inspection by placing them in the 
docket associated with the proceeding.
    (5) Requests by a party for an opportunity to rebut, on the record, 
any facts or contentions in an off-the-record communication may be filed 
in writing with the Assistant Secretary. The Assistant Secretary shall 
grant such requests only for good cause.
    (6) Upon being notified of an off-the-record communication made by a 
party in violation of this section, the Assistant Secretary may, to the 
extent consistent with the interests of justice and the policies of the 
NGA and the DOE Act, require the party to show cause why the party's 
claim or interest in the proceeding should not be dismissed, denied, 
disregarded, or otherwise adversely affected on account of the 
violation.
    (b) The prohibitions of paragraph (a) of the section shall apply 
only to contested proceedings and begin at the time either a protest or 
a motion to intervene or notice of intervention in opposition to the 
application or other requested action is filed with FE, or a party 
otherwise specifically notifies the Assistant Secretary and the other 
parties in writing of its opposition to the application or other 
requested action, whichever occurs first.



Sec. 590.109  FE investigations.

    The Assistant Secretary or the Assistant Secretary's delegate may 
investigate any facts, conditions, practices, or other matters within 
the scope of this part in order to determine whether any person has 
violated or is about to violate any provision of the NGA or other 
statute or any rule, regulation, or order within the Assistant 
Secretary's jurisdiction. In conducting such investigations, the 
Assistant Secretary or the Assistant Secretary's delegate may, among 
other things, subpoena witnesses to testify, subpoena or otherwise 
require the submission of documents, and order testimony to be taken by 
deposition.



 Subpart B--Applications for Authorization to Import or Export Natural 
                                   Gas



Sec. 590.201  General.

    (a) Any person seeking authorization to import or export natural gas 
into or from the United States, to amend an existing import or export 
authorization, or seeking any other requested action, shall file an 
application with the FE under the provisions of this part.
    (b) Applications shall be filed at least ninety (90) days in advance 
of the proposed import or export or other requested action, unless a 
later date is permitted for good cause shown.
[54 FR 53531, Dec. 29, 1989; 55 FR 14916, Apr. 19, 1990]



Sec. 590.202  Contents of applications.

    (a) Each application filed under Sec. 590.201 shall contain the 
exact legal

[[Page 73]]

name of the applicant, the names, titles, and mailing addresses of a 
maximum of two persons for the official service list, a statement 
describing the action sought from FE, the justification for such action, 
including why the proposed action is not inconsistent with the public 
interest, and the FE docket number, if applicable.
    (b) Each application shall include the matters listed below to the 
extent applicable. All factual matters shall be supported to the extent 
practicable by the necessary data or documents. Copies of relevant 
documents filed or intended to be filed with FERC may be submitted to 
satisfy the requirements of this section. Topics to be addressed or 
described shall include:
    (1) The scope of the project, including the volumes of natural gas 
involved, expressed in either Mcf or Bcf and their Btu equivalents, the 
dates of commencement and completion of the proposed import or export, 
and the facilities to be utilized or constructed;
    (2) The source and security of the natural gas supply to be imported 
or exported, including contract volumes and a description of the gas 
reserves supporting the project during the term of the requested 
authorization;
    (3) Identification of all the participants in the transaction, 
including the parent company, if any, and identification of any 
corporate or other affiliations among the participants;
    (4) The terms of the transaction, such as take-or-pay obligations, 
make-up provisions, and other terms that affect the marketability of the 
gas;
    (5) The provisions of the import arrangement which establish the 
base price, volume requirements, transportation and other costs, and 
allow adjustments during the life of the project, and a demonstration as 
to why the import arrangement is and will remain competitive over the 
life of the project and is otherwise not inconsistent with the public 
interest;
    (6) For proposed imports, the need for the natural gas by the 
applicant or applicant's prospective customers, including a description 
of the persons who are expected to purchase the natural gas; and for 
proposed exports, the lack of a national or regional need for the gas; 
and
    (7) The potential environmental impact of the project. To the extent 
possible, the application shall include a listing and description of any 
environmental assessments or studies being performed on the proposed gas 
project. The application shall be updated as the status of any 
environmental assessments changes.
    (c) The application shall also have attached a statement, including 
a signed opinion of legal counsel, showing that a proposed import or 
export of natural gas is within the corporate powers of the applicant 
and a copy of all relevant contracts and purchase agreements.
    (d) The Assistant Secretary or the Assistant Secretary's delegate 
may at any time require the applicant and other parties to make 
supplemental filings of additional information necessary to resolve 
issues raised by the application.
    (e) All information and data filed in support of or against an 
application will be placed in the official FE docket file of the 
proceeding and will not be afforded confidential treatment, unless the 
party shows why the information or data should be exempted from public 
disclosure and the Assistant Secretary or Assistant Secretary's delegate 
determines that such information or data shall be afforded confidential 
treatment. Such determination shall be made in accordance with 10 CFR 
1004.11.
[54 FR 53531, Dec. 29, 1989; 55 FR 18227, May 1, 1990]



Sec. 590.203  Deficient applications.

    If an application is incomplete or otherwise deemed deficient, the 
Assistant Secretary or the Assistant Secretary's delegate may require 
the applicant to submit additional information or exhibits to remedy the 
deficiency. If the applicant does not remedy the deficiency within the 
time specified by the Assistant Secretary or the Assistant Secretary's 
delegate, the application may be dismissed without prejudice to refiling 
at another time.



Sec. 590.204  Amendment or withdrawal of applications.

    (a) The applicant may amend or supplement the application at any 
time

[[Page 74]]

prior to issuance of the Assistant Secretary's final opinion and order 
resolving the application, and shall amend or supplement the application 
whenever there are changes in material facts or conditions upon which 
the proposal is based.
    (b) The Assistant Secretary may for good cause shown by motion of a 
party or upon the Assistant Secretary's own initiative decline to act 
on, in whole or in part, an amendment or supplement requested by an 
applicant under paragraph (a) of this section.
    (c) After written notice to FE and service upon the parties of that 
notice an applicant may withdraw an application. Such withdrawal shall 
be effective thirty (30) days after notice to FE if the Assistant 
Secretary does not issue an order to the contrary within that time 
period.



Sec. 590.205  Notice of applications.

    (a) Upon receipt of an application, the FE shall publish a notice of 
application in the Federal Register. The notice shall summarize the 
proposal. Except in emergency circumstances, generally the notice shall 
provide a time limit of not less than thirty (30) days from the notice's 
date of publication in the Federal Register for persons to file 
protests, comments, or a motion to intervene or notice of intervention, 
as applicable. The notice may also request comments on specific issues 
or matters of fact, law, or policy raised by the application.
    (b) The notice of application shall advise the parties of their 
right to request additional procedures, including the opportunity to 
file written comments and to request that a conference, oral 
presentation, or trial-type hearing be convened. Failure to request 
additional procedures at this time shall be deemed a waiver of any right 
to additional procedures should the Assistant Secretary decide to grant 
the application and authorize the import or export by issuing a final 
opinion and order in accordance with Sec. 590.316.
    (c) Where negotiations between the DOE, including FE, and a foreign 
government have resulted in a formal policy agreement or statement 
affecting a particular import or export proceeding, FE shall include in 
the notice of application a description of the terms or policy positions 
of that agreement or statement to the extent they apply to the 
proceeding, and invite comment. A formal policy agreement or statement 
affecting a particular import or export proceeding that is arrived at 
after publication of the notice of application shall be placed on the 
record in that proceeding and the parties given an opportunity to 
comment thereon.



Sec. 590.206  Notice of procedures.

    In all proceedings where, following a notice of application and the 
time specified in the notice for the filing of responses thereto, the 
Assistant Secretary determines to have additional procedures, which may 
consist of the filing of supplemental written comments, written 
interrogatories or other discovery procedures, a conference, oral 
presentation, or trial-type hearing, the Assistant Secretary shall 
provide the parties with notice of the procedures the Assistant 
Secretary has determined to follow in the proceeding and advise the 
parties of their right to request any additional procedures in 
accordance with the provisions of Sec. 590.310. The notice of procedures 
may identify and request comments on specific issues of fact, law, or 
policy relevant to the proceeding and may establish a time limit for 
requesting additional procedures.



Sec. 590.207  Filing fees.

    A non-refundable filing fee of fifty dollars ($50) shall accompany 
each application filed under Sec. 590.201. Checks shall be made payable 
to ``Treasury of the United States.''



Sec. 590.208  Small volume exports.

    Any person may export up to 100,000 cubic feet of natural gas (14.73 
pounds per square inch at 60 degrees Fahrenheit) or the liquefied or 
compressed equivalent thereof, in a single shipment for scientific, 
experimental, or other non-utility gas use without prior authorization 
of the Assistant Secretary.

[[Page 75]]



Sec. 590.209  Exchanges by displacement.

    Any importer of natural gas may enter into an exchange by 
displacement agreement without the prior authorization of the Assistant 
Secretary when the net effect of the exchange is no different than under 
the importer's existing authorization. An exchange by displacement is an 
arrangement whereby authorized imported volumes are displaced by other 
gas for purposes of storage or flexibility. The term of the exchange 
agreement may not exceed five (5) years, the volumes imported may not 
exceed the importer's existing import authorization, and no actual 
natural gas may flow across the United States border under the terms of 
the exchange agreement. Any importer who enters into an exchange 
agreement pursuant to this section shall file with FE within fifteen 
(15) days after the start up of the exchange, a written description of 
the transaction, the exact volume of natural gas to be displaced, the 
name of the purchaser, and the import authorization under which the 
exchange is being carried out.



                          Subpart C--Procedures



Sec. 590.301  General.

    The procedures of this subpart are applicable to proceedings 
conducted on all applications or other requested actions filed under 
this part. The Assistant Secretary may conduct all aspects of the 
procedures of this subpart or may designate a presiding official 
pursuant to Sec. 590.314.



Sec. 590.302  Motions and answers.

    (a) Motions for any procedural or interlocutory ruling shall set 
forth the ruling or relief requested and state the grounds and the 
statutory or other authority relied upon. All written motions shall 
comply with the filing requirements of Sec. 590.103. Motions made during 
conferences, oral presentations or trial-type hearings may be stated 
orally upon the record, unless the Assistant Secretary or the presiding 
official determines otherwise.
    (b) Any party may file an answer to any written motion within 
fifteen (15) days after the motion is filed, unless another period of 
time is established by the Assistant Secretary or the presiding 
official. Answers shall be in writing and shall detail each material 
allegation of the motion being answered. Answers shall state clearly and 
concisely the facts and legal authorities relied upon.
    (c) Any motion, except for motions seeking intervention or 
requesting that a conference, oral presentation or trial-type hearing be 
held, shall be deemed to have been denied, unless the Assistant 
Secretary or presiding official acts within thirty (30) days after the 
motion is filed.



Sec. 590.303  Interventions and answers.

    (a) A state commission may intervene in a proceeding under this part 
as a matter of right and become a party to the proceeding by filing a 
notice of intervention no later than the date fixed for filing motions 
to intervene in the applicable FE notice or order. If the period for 
filing the notice has expired, a state commission may be permitted to 
intervene by complying with the filing and other requirements applicable 
to any other person seeking to become a party to the proceeding as 
provided in this section.
    (b) Any other person who seeks to become a party to a proceeding 
shall file a motion to intervene, which sets out clearly and concisely 
the facts upon which the petitioner's claim of interest is based.
    (c) A motion to intervene shall state, to the extent known, the 
position taken by the movant and the factual and legal basis for such 
positions in order to advise the parties and the Assistant Secretary as 
to the specific issues of policy, fact, or law to be raised or 
controverted.
    (d) Motions to intervene may be filed at any time following the 
filing of an application, but no later than the date fixed for filing 
such motions or notices in the applicable FE notice or order, unless a 
later date is permitted by the Assistant Secretary for good cause shown 
and after considering the impact of granting the late motion of the 
proceeding. Each motion or notice shall list the names, titles, and 
mailing addresses of a maximum of two persons for the official service 
list.

[[Page 76]]

    (e) Any party may file an answer to a motion to intervene, but such 
answer shall be made within fifteen (15) days after the motion to 
intervene was filed, unless a later date is permitted by the Assistant 
Secretary for good cause shown. Answers shall be in writing. Answers 
shall detail each material allegation of the motion to intervene being 
answered and state clearly and concisely the facts and legal authorities 
relied upon. Failure to answer is deemed a waiver of any objection to 
the intervention. This paragraph does not prevent the Assistant 
Secretary from ruling on a motion to intervene and issuing a final 
opinion and order in accordance with Sec. 590.316 prior to the 
expiration of the fifteen (15) days in which a party has to answer a 
motion to intervene.
    (f) If an answer in opposition to a motion to intervene is timely 
filed or if the motion to intervene is not timely filed, then the movant 
becomes a party only after the motion to intervene is expressly granted.
    (g) If no answer in opposition to a motion to intervene is filed 
within the period of time prescribed in paragraph (e) of this section, 
the motion to intervene shall be deemed to be granted, unless the 
Assistant Secretary denies the motion in whole or in part or otherwise 
limits the intervention prior to the expiration of the time allowed in 
paragraph (e) for filing an answer to the motion to intervene. Where the 
motion to intervene is deemed granted, the participation of the 
intervenor shall be limited to matters affecting asserted rights and 
interests specifically set forth in the motion to intervene, and the 
admission of such intervenor to party status shall not be construed as 
recognition by FE that the intervenor might be aggrieved because of any 
order issued.
    (h) In the event that a motion for late intervention is granted, an 
intervenor shall accept the record of the proceeding as it was developed 
prior to the intervention.



Sec. 590.304  Protests and answers.

    (a) Any person objecting to an application filed under Sec. 590.201 
of this part or to any action taken by FE under this part may file a 
protest. No particular form is required. The protest shall identify the 
person filing the protest, the application or action being objected to, 
and provide a concise statement of the reasons for the protest.
    (b) The filing of a protest, without also filing a motion to 
intervene or a notice of intervention, shall not make the person filing 
the protest a party to the proceeding.
    (c) A protest shall be made part of the official FE docket file in 
the proceeding and shall be considered as a statement of position of the 
person filing the protest, but not as establishing the validity of any 
assertion upon which the decision would be based.
    (d) Protests shall be served on the applicant and all parties by the 
person filing the protest. If the person filing the protest is unable to 
provide service on any person identified as a party to the proceeding 
after a good faith effort, then FE shall effect service. However, when 
the parties are not known, service requirements may be met by serving a 
copy on the applicant and on FE as provided in Sec. 590.107(b).
    (e) Protests may be filed at any time following the filing of an 
application, but no later than the date fixed for filing protests in the 
applicable FE notice or order, unless a later date is permitted by the 
Assistant Secretary for good cause shown.
    (f) Any party may file an answer to a protest but such answer must 
be filed within fifteen (15) days after the protest was filed, unless a 
later date is permitted by the Assistant Secretary for good cause shown.
[54 FR 53531, Dec. 29, 1989; 55 FR 14916, Apr. 19, 1990]



Sec. 590.305  Informal discovery.

    The parties to a proceeding may conduct discovery through use of 
procedures such as written interrogatories or production of documents. 
In response to a motion by a party, the Assistant Secretary or presiding 
official may determine the procedures to be utilized for discovery if 
the parties cannot agree on such procedures.



Sec. 590.306  Subpoenas.

    (a) Subpoenas for the attendance of witnesses at a trial-type 
hearing or for

[[Page 77]]

the production of documentary evidence may be issued upon the initiative 
of the Assistant Secretary or presiding official, or upon written motion 
of a party or oral motion of a party during a conference, oral 
presentation, or trial-type hearing, if the Assistant Secretary or 
presiding official determines that the evidence sought is relevant and 
material.
    (b) Motions for the issuance of a subpoena shall specify the 
relevance, materiality, and scope of the testimony or documentary 
evidence sought, including, as to documentary evidence, specification to 
the extent possible of the documents sought and the facts to be proven 
by them, the issues to which they relate, and why the information or 
evidence was not obtainable through discovery procedures agreed upon by 
the parties.
    (c) If service of a subpoena is' made by a United States Marshal or 
a Deputy United States Marshal, service shall be evidenced by their 
return. If made by another person, that person shall affirm that service 
has occurred and file an affidavit to that effect with the original 
subpoena. A witness who is subpoenaed shall be entitled to witness fees 
as provided in Sec. 590.315(c).



Sec. 590.307  Depositions.

    (a) Upon motion filed by a party, the Assistant Secretary or 
presiding official may authorize the taking of testimony of any witness 
by deposition. Unless otherwise directed in the authorization issued, a 
witness being deposed may be examined regarding any matter which is 
relevant to the issues involved in the pending proceeding.
    (b) Parties authorized to take a deposition shall provide written 
notice to the witness and all other parties at least ten (10) days in 
advance of the deposition unless such advance notice is waived by mutual 
agreement of the parties.
    (c) The requesting motion and notice shall state the name and 
mailing address of the witness, delineate the subject matters on which 
the witness is expected to testify, state the reason why the deposition 
should be taken, indicate the time and place of the deposition, and 
provide the name and mailing address of the person taking the 
deposition.
    (d) A witness whose testimony is taken by deposition shall be sworn 
in or shall affirm concerning the matter about which the witness has 
been called to testify before any questions are asked or testimony 
given. A witness deposed shall be entitled to witness fees as provided 
in Sec. 590.315(c).
    (e) The moving party shall file the entire deposition with FE after 
it has been subscribed and certified. No portion of the deposition shall 
constitute a part of the record in the proceedings unless received in 
evidence, in whole or in part, by the Assistant Secretary or presiding 
official.



Sec. 590.308  Admissions of facts.

    (a) At any time prior to the end of a trial-type hearing, or, if 
there is no trial-type hearing, prior to the issuance of a final opinion 
and order under Sec. 590.404, any party, the Assistant Secretary, or the 
presiding official may serve on any party a written request for 
admission of the truth of any matters at issue in the proceeding that 
relate to statements or opinions of fact or of the application of law to 
fact.
    (b) A matter shall be considered admitted and conclusively 
established for the purposes of any proceeding in which a request for 
admission is served unless, within fifteen (15) days of such time limit 
established by the Assistant Secretary or presiding official, the party 
to whom the request is directed answers or objects to the request. Any 
answer shall specifically admit or deny the matter, or set forth in 
detail the reasons why the answering party cannot truthfully admit or 
deny the matter. An answering party may not give lack of information or 
knowledge as a reason for failure to admit or deny, unless the answering 
party states that, after reasonable inquiry, the answering party has 
been unable to obtain sufficient information to admit or deny. If an 
objection is made, the answering party shall state the reasons for the 
objection.
    (c) If the Assistant Secretary or presiding official determines that 
an answer to a request for admission does not comply with the 
requirements of this section, the Assistant Secretary or

[[Page 78]]

presiding official may order either that the matter is admitted or that 
an amended answer be served.
    (d) A copy of all requests for admission and answers thereto shall 
be filed with FE in accordance with Sec. 590.103. Copies of any 
documents referenced in the request shall be served with the request 
unless they are known to be in the possession of the other parties.
    (e) The Assistant Secretary or presiding official may limit the 
number of requests for admission of facts in order to expedite a 
proceeding through elimination of duplicative requests.



Sec. 590.309  Settlements.

    The parties may conduct settlement negotiations. If settlement 
negotiations are conducted during a conference, at the request of one of 
the parties, the Assistant Secretary or presiding official may order 
that the discussions be off-the-record with no transcript of such 
settlement negotiations being prepared for inclusion in the official 
record of the proceeding. No offer of settlement, comment or discussion 
by the parties with respect to an offer of settlement shall be subject 
to discovery or admissible into evidence against any parties who object 
to its admission.



Sec. 590.310  Opportunity for additional procedures.

    Any party may file a motion requesting additional procedures, 
including the opportunity to file written comments, request written 
interrogatories or other discovery procedures, or request that a 
conference, oral presentation or trial-type hearing be held. The motion 
shall describe what type of procedure is requested and include the 
information required by Secs. 590.311, 590.312 and 590.313, as 
appropriate. Failure to request additional procedures within the time 
specified in the notice of application or in the notice of procedure, if 
applicable, shall constitute a waiver of that right unless the Assistant 
Secretary for good cause shown grants additional time for requesting 
additional procedures. If no time limit is specified in the notice or 
order, additional procedures may be requested at any time prior to the 
issuance of a final opinion and order. At any time during a proceeding, 
the Assistant Secretary or presiding official may on his or her own 
initiative determine to provide additional procedures.
[54 FR 53531, Dec. 29, 1989; 55 FR 14916, Apr. 19, 1990]



Sec. 590.311  Conferences.

    (a) Upon motion by a party, a conference of the parties may be 
convened to adjust or settle the proceedings, set schedules, delineate 
issues, stipulate certain issues of fact or law, set procedures, and 
consider other relevant matters where it appears that a conference will 
materially advance the proceeding. The Assistant Secretary or presiding 
official may delineate the issues which are to be considered and may 
place appropriate limitations on the number of intervenors who may 
participate, if two or more intervenors have substantially like 
interests.
    (b) A motion by a party for a conference shall include a specific 
showing why a conference will materially advance the proceeding.
    (c) Conferences shall be recorded, unless otherwise ordered by the 
Assistant Secretary or presiding official, and the transcript shall be 
made a part of the official record of the proceeding and available to 
the public.



Sec. 590.312  Oral presentations.

    (a) Any party may file a motion requesting an opportunity to make an 
oral presentation of views, arguments, including arguments of counsel, 
and data on any aspect of the proceeding. The motion shall identify the 
substantial question of fact, law or policy at issue and demonstrate 
that it is material and relevant to the merits of the proceeding. The 
party may submit material supporting the existence of substantial 
issues. The Assistant Secretary or presiding official ordinarily will 
grant a party's motion for an oral presentation, if the Assistant 
Secretary or presiding official determines that a substantial question 
of fact, law, or policy is at issue in the proceeding and illumination 
of that question will be aided materially by such an oral presentation.
    (b) The Assistant Secretary or presiding official may require 
parties making oral presentations to file briefs or

[[Page 79]]

other documents prior to the oral presentation. The Assistant Secretary 
or presiding official also may delineate the issues that are to be 
considered at the oral presentation and place appropriate limitations on 
the number of intervenors who may participate if two or more intervenors 
have substantially like interests.
    (c) Oral presentations shall be conducted in an informal manner with 
the Assistant Secretary or the presiding official and other decisional 
employees presiding as a panel. The panel may question those parties 
making an oral presentation. Cross-examination by the parties and other 
more formal procedures used in trial-type hearings will not be available 
in oral presentations. The oral presentation may be, but need not be, 
made by legal counsel.
    (d) Oral presentations shall be recorded, and the transcript shall 
be made part of the official record of the proceeding and available to 
the public.



Sec. 590.313  Trial-type hearings.

    (a) Any party may file a motion for a trial-type hearing for the 
purpose of taking evidence on relevant and material issues of fact 
genuinely in dispute in the proceeding. The motion shall identify the 
factual issues in dispute and the evidence that will be presented. The 
party must demonstrate that the issues are genuinely in dispute, 
relevant and material to the decision and that a trial-type hearing is 
necessary for a full and true disclosure of the facts. The Assistant 
Secretary or presiding official shall grant a party's motion for a 
trial-type hearing, if the Assistant Secretary or presiding official 
determines that there is a relevant and material factual issue genuinely 
in dispute and that a trial-type hearing is necessary for a full and 
true disclosure of the facts.
    (b) In trial-type hearings, the parties shall have the right to be 
represented by counsel, to request discovery, to present the direct and 
rebuttal testimony of witnesses, to cross-examine witnesses under oath, 
and to present documentary evidence.
    (c) The Assistant Secretary or presiding official upon his or her 
own initiative or upon the motion of any party may consolidate any 
proceedings involving common questions of fact in whole or in part for a 
trial-type hearing. The Assistant Secretary or presiding official may 
also place appropriate limitations on the number of intervenors who may 
participate if two or more intervenors have substantially like 
interests.
    (d) The Assistant Secretary or presiding official may make such 
rulings for trial-type hearings, including delineation of the issues and 
limitation of cross-examination of a witness, as are necessary to obtain 
a full and true disclosure of the facts and to limit irrelevant, 
immaterial, or unduly repetitious evidence.
    (e) At trial-type hearings, the Assistant Secretary or presiding 
official, or any other decisional employee directed by the Assistant 
Secretary or presiding official, may call witnesses for testimony or 
presenting exhibits that directly relate to a particular issue of fact 
to be considered at the hearing. The Assistant Secretary or presiding 
official, or any other decisional employee directed by the Assistant 
Secretary or presiding official, may also question witnesses offered by 
the parties concerning their testimony.
    (f) Trial-type hearings shall be recorded, and the transcript shall 
be made part of the official record of the proceeding and available to 
the public.



Sec. 590.314  Presiding officials.

    (a) The Assistant Secretary may designate a presiding official to 
conduct any stage of the proceeding, including officiating at a 
conference, oral presentation, or trial-type hearing. The presiding 
official shall have the full authority of the Assistant Secretary during 
such proceedings.
    (b) A presiding official at a conference, oral presentation, or 
trial-type hearing shall have the authority to regulate the conduct of 
the proceeding including, but not limited to, determination of the 
issues to be raised during the course of the conference, oral 
presentation, or trial-type hearing, administering oaths or 
affirmations, directing discovery, ruling on objections to the 
presentation of testimony or exhibits, receiving relevant and material

[[Page 80]]

evidence, requiring the advance submission of written testimony and 
exhibits, ruling on motions, determining the format, directing that 
briefs be filed with respect to issues raised or to be raised during the 
course of the conference, oral presentation or trial-type hearing, 
questioning witnesses, taking reasonable measures to exclude duplicative 
material, and placing limitations on the number of witnesses to be 
called by a party.



Sec. 590.315  Witnesses.

    (a) The Assistant Secretary or presiding official may require that 
the direct testimony of witnesses in trial-type hearings be submitted in 
advance of the hearing and be under oath, and in written form.
    (b) Witnesses who testify in trial-type hearings shall be under oath 
or affirmation before being allowed to testify.
    (c) Witnesses subpoenaed pursuant to Sec. 590.306 shall be paid the 
same fees and mileage as paid for like services in the District Courts 
of the United States.
    (d) Witnesses subpoenaed pursuant to Sec. 590.307 shall be paid the 
same fees and mileage as paid for like services in the District Court of 
the United States.
[54 FR 53531, Dec. 29, 1989; 55 FR 14916, Apr. 19, 1990]



Sec. 590.316  Shortened proceedings.

    In any proceeding where, in response to a notice of application or 
notice of procedures, if applicable, no party files a motion requesting 
additional procedures, including the right to file written comments, or 
the holding of a conference, oral presentation, or trial-type hearing, 
or where the Assistant Secretary determines that such requested 
additional procedures are not required pursuant to Secs. 590.310, 
590.311, 590.312 and 590.313, the Assistant Secretary may issue a final 
opinion and order on the basis of the official record, including the 
application and all other filings. In any proceeding in which the 
Assistant Secretary intends to deny the application or grant the 
application with the attachment of material conditions unknown to, or 
likely to be opposed by, the applicant, solely on the basis of the 
application and responses to the notice of application or notice of 
procedures, if applicable, without additional procedures, the Assistant 
Secretary shall advise the parties in writing generally of the issues of 
concern to the Assistant Secretary upon which the denial or material 
conditions would be based and provide them with an opportunity to 
request additional procedures pursuant to Secs. 590.310, 590.311, 
590.312 and 590.313.



Sec. 590.317  Complaints.

    (a) Any person may file a complaint objecting to the actions by any 
other person under any statute, rule, order or authorization applicable 
to an existing import or export authorization over which FE has 
jurisdiction. No particular form is required. The complaint must be 
filed with FE in writing and must contain the name and address of the 
complainant and the respondent and state the facts forming the basis of 
the complaint.
    (b) A complaint concerning an existing import or export 
authorization shall be served on all parties to the original import or 
export authorization proceeding either by the complainant or by FE if 
the complainant has made a good faith effort but has been unable to 
effect service.
    (c) The Assistant Secretary may issue an order to show cause under 
Sec. 590.401, or may provide opportunity for additional procedures 
pursuant to Secs. 590.310, 590.311, 590.312, or Sec. 590.313, in order 
to determine what action should be taken in response to the complaint.



                     Subpart D--Opinions and Orders



Sec. 590.401  Orders to show cause.

    A proceeding under this part may commence upon the initiative of the 
Assistant Secretary or in response to an application by any person 
requesting FE action against any other person alleged to be in 
contravention or violation of any authorization, statute, rule, order, 
or law administered by FE applicable to the import or export of natural 
gas, or for any other alleged wrong involving importation or exportation 
of natural gas over which FE has jurisdiction. Any show cause order 
issued shall identify the matters of interest or the matters complained 
of

[[Page 81]]

that the Assistant Secretary is inquiring about, and shall be deemed to 
be tentative and for the purpose of framing issues for consideration and 
decision. The respondent named in the order shall respond orally or in 
writing, or both, as required by the order. A show cause order is not a 
final opinion and order.



Sec. 590.402  Conditional orders.

    The Assistant Secretary may issue a conditional order at any time 
during a proceeding prior to issuance of a final opinion and order. The 
conditional order shall include the basis for not issuing a final 
opinion and order at that time and a statement of findings and 
conclusions. The findings and conclusions shall be based solely on the 
official record of the proceeding.



Sec. 590.403  Emergency interim orders.

    Where consistent with the public interest, the Assistant Secretary 
may waive further procedures and issue an emergency interim order 
authorizing the import or export of natural gas. After issuance of the 
emergency interim order, the proceeding shall be continued until the 
record is complete, at which time a final opinion and order shall be 
issued. The Assistant Secretary may attach necessary or appropriate 
terms and conditions to the emergency interim order to ensure that the 
authorized action will be consistent with the public interest.



Sec. 590.404  Final opinions and orders.

    The Assistant Secretary shall issue a final opinion and order and 
attach such conditions thereto as may be required by the public interest 
after completion and review of the record. The final opinion and order 
shall be based solely on the official record of the proceeding and 
include a statement of findings and conclusions, as well as the reasons 
or basis for them, and the appropriate order, condition, sanction, 
relief or denial.



Sec. 590.405  Transferability.

    Authorizations by the Assistant Secretary to import or export 
natural gas shall not be transferable or assignable, unless specifically 
authorized by the Assistant Secretary.



Sec. 590.406  Compliance with orders.

    Any person required or authorized to take any action by a final 
opinion and order of the Assistant Secretary shall file with FE, within 
thirty (30) days after the requirement or authorization becomes 
effective, a notice, under oath, that such requirement has been complied 
with or such authorization accepted or otherwise acted upon, unless 
otherwise specified in the order.



Sec. 590.407  Reports of changes.

    Any person authorized to import or export natural gas has a 
continuing obligation to give the Assistant Secretary written 
notification, as soon as practicable, of any prospective or actual 
changes to the information submitted during the application process upon 
which the authorization was based, including, but not limited to, 
changes to: The parties involved in the import or export arrangement, 
the terms and conditions of any applicable contracts, the place of entry 
or exit, the transporters, the volumes accepted or offered, or the 
import or export price. Any notification filed under this section shall 
contain the FE docket number(s) to which it relates. Compliance with 
this section does not relieve an importer or exporter from 
responsibility to file the appropriate application to amend a previous 
import or export authorization under this part whenever such changes are 
contrary to or otherwise not permitted by the existing authorization.



                  Subpart E--Applications for Rehearing



Sec. 590.501  Filing.

    (a) An application for rehearing of a final opinion and order, 
conditional order, or emergency interim order may be filed by any party 
aggrieved by the issuance of such opinion and order within thirty (30) 
days after issuance. The application shall be served on all parties.
    (b) The application shall state concisely the alleged errors in the 
final opinion and order, conditional order, or emergency interim order 
and must set forth specifically the ground or grounds upon which the 
application is

[[Page 82]]

based. If an order is sought to be vacated, reversed, or modified by 
reason of matters that have arisen since the issuance of the final 
opinion and order, conditional order, or emergency interim order, the 
matters relied upon shall be set forth with specificity in the 
application. The application shall also comply with the filing 
requirements of Sec. 590.103.



Sec. 590.502  Application is not a stay.

    The filing of an application for rehearing does not operate as a 
stay of the Assistant Secretary's order, unless specifically ordered by 
the Assistant Secretary.



Sec. 590.503  Opinion and order on rehearing.

    Upon application for rehearing, the Assistant Secretary may grant or 
deny rehearing or may abrogate or modify the final opinion and order, 
conditional order, or emergency interim order with or without further 
proceedings.



Sec. 590.504  Denial by operation of law.

    Unless the Assistant Secretary acts upon the application for 
rehearing within thirty (30) days after it is filed, it is deemed to be 
denied. Such denial shall constitute final agency action for the purpose 
of judicial review.



Sec. 590.505  Answers to applications for rehearing.

    No answers to applications for rehearing shall be entertained. Prior 
to the issuance of any final opinion and order on rehearing, however, 
the Assistant Secretary may afford the parties an opportunity to file 
briefs or answers and may order that a conference, oral presentation, or 
trial-type hearing be held on some or all of the issues presented by an 
application for rehearing.

[[Page 83]]



                  SUBCHAPTER H--ASSISTANCE REGULATIONS





PART 600--FINANCIAL ASSISTANCE RULES--Table of Contents




                           Subpart A--General

Sec.
600.1   Purpose.
600.2   Applicability.
600.3   Definitions.
600.4   Deviations.
600.5   Selection of award instrument.
600.6   Eligibility.
600.7   Small and disadvantaged and women-owned business participation.
600.8   Solicitation.
600.9   Notice of program interest.
600.10  Form and content of applications.
600.11  Intergovernmental review.
600.12  Generally applicable requirements.
600.13  Objective merit review.
600.14  Conflict of interest.
600.15  Authorized uses of information.
600.16  Legal authority and effect of an award.
600.17  Contents of award.
600.18  Recipient acknowledgement of award.
600.19  Notification to unsuccessful applicants.
600.20  Maximum DOE obligation.
600.21  Access to records.
600.22  Disputes and appeals.
600.23  Debarment and suspension.
600.24  Noncompliance.
600.25  Suspension and termination.
600.26  Funding.
600.27  Patent and data provisions.
600.28  Restrictions on lobbying.
600.29  Fixed obligation awards.
600.30  Cost sharing.

     Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements With Institutions of Higher Education, Hospitals, 
       Other Non-Profit Organizations and Commercial Organizations

                                 General

600.100  Purpose.
600.101  Definitions.
600.102  Effect on other issuances.
600.103  Deviations.
600.104  Subawards.

                         Pre-Award Requirements

600.110  Purpose.
600.111  Pre-award policies.
600.112  Forms for applying for Federal assistance.
600.113  Debarment and suspension.
600.114  Special award conditions.
600.115  Metric system of measurement.
600.116  Resource Conservation and Recovery Act.
600.117  Certifications and representations.

                         Post-Award Requirements

                    Financial and Program Management

600.120  Purpose of financial and program management.
600.121  Standards for financial management systems.
600.122  Payment.
600.123  Cost sharing or matching.
600.124  Program income.
600.125  Revision of budget and program plans.
600.126  Non-Federal audits.
600.127  Allowable costs.
600.128  Period of availability of funds.

                           Property Standards

600.130  Purpose of property standards.
600.131  Insurance coverage.
600.132  Real property.
600.133  Federally-owned and exempt property.
600.134  Equipment.
600.135  Supplies and other expendable property.
600.136  Intangible property.
600.137  Property trust relationship.

                          Procurement Standards

600.140  Purpose of procurement standards.
600.141  Recipient responsibilities.
600.142  Codes of conduct.
600.143  Competition.
600.144  Procurement procedures.
600.145  Cost and price analysis.
600.146  Procurement records.
600.147  Contract administration.
600.148  Contract provisions.
600.149  Resource Conservation and Recovery Act (RCRA).

                           Reports and Records

600.150  Purpose of reports and records.
600.151  Monitoring and reporting program performance.
600.152  Financial reporting.
600.153  Retention and access requirements for records.

                       Termination and Enforcement

600.160  Purpose of termination and enforcement.
600.161  Termination.
600.162  Enforcement.

                      After-the-Award Requirements

600.170  Purpose.

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600.171  Closeout procedures.
600.172  Subsequent adjustments and continuing responsibilities.
600.173  Collection of amounts due.

                          Additional Provisions

600.180  Purpose.
600.181  Special provisions for Small Business Innovation Research 
          Grants.

Appendix A to Subpart B to Part 600--Contract Provisions

     Subpart C--Uniform Administrative Requirements for Grants and 
          Cooperative Agreements to State and Local Governments

                                 General

600.200  Purpose and scope of this subpart.
600.201  Scope of Secs. 600.200 through 600.205.
600.202  Definitions.
600.203  Applicability.
600.204  Effect on other issuances.
600.205  Additions and exceptions.

                         Pre-Award Requirements

600.210  Forms for applying for grants.
600.211  State plans.
600.212  Special grant or subgrant conditions for ``high- risk'' 
          recipients.

                         Post-Award Requirements

                        Financial Administration

600.220  Standards for financial management systems.
600.221  Payment.
600.222  Allowable costs.
600.223  Period of availability of funds.
600.224  Matching or cost sharing.
600.225  Program income.
600.226  Non-Federal audit.

                    Changes, Property, and Subawards

600.230  Changes.
600.231  Real property.
600.232  Equipment.
600.233  Supplies.
600.234  Copyrights.
600.235  Subawards to debarred and suspended parties.
600.236  Procurement.
600.237  Subgrants.

               Reports, Records Retention, and Enforcement

600.240  Monitoring and reporting program performance.
600.241  Financial reporting.
600.242  Retention and access requirements for records.
600.243  Enforcement.
600.244  Termination for convenience.

                      After-the-Grant Requirements

600.250  Closeout.
600.251  Later disallowances and adjustments.
600.252  Collection of amounts due.

                         Entitlements [Reserved]

                          Subpart D  [Reserved]

            Subpart E--Audits of State and Local Governments

600.400  Scope and applicability.
600.401  Definitions.
600.402  Policy.
600.403  Scope of audit.
600.404  Frequency of audit.
600.405  Internal control and compliance reviews.
600.406  Subrecipients.
600.407  Relation to other audit requirements.
600.408  Cognizant agency responsibilities.
600.409  Illegal acts or irregularities.
600.410  Audit reports.
600.411  Audit resolution.
600.412  Audit workpapers and reports.
600.413  Audit costs.
600.414  Sanctions.
600.415  Auditor selection.
600.416  Small and minority audit firms.
600.417  Reporting.

 Subpart F--Eligibility Determination for Certain Financial Assistance 
                  Programs--General Statement of Policy

600.500  Purpose and scope.
600.501  Definitions.
600.502  What must DOE determine.
600.503  Determining the economic interest of the United States.
600.504  Information an applicant must submit.
600.505  Other information DOE may consider.

Appendix A to Part 600--Generally Applicable Requirements
Appendix B to Part 600--Audit Report Distributees

    Authority: 42 U.S.C. 7254, 7256, 13525; 31 U.S.C. 6301-6308, unless 
otherwise noted.



                           Subpart A--General

    Source: 61 FR 7166, Feb. 26, 1996, unless otherwise noted.



Sec. 600.1  Purpose.

    This part implements the Federal Grant and Cooperative Agreement 
Act, Pub. L. 95-224, as amended by Pub. L. 97-258 (31 U.S.C. 6301-6308), 
and establishes uniform policies and procedures for the award and 
administration of

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DOE grants and cooperative agreements. This subpart (Subpart A) sets 
forth the policies and procedures applicable to the award and 
administration of grants and cooperative agreements.



Sec. 600.2  Applicability.

    (a) Except as otherwise provided by Federal statute or program rule, 
this part applies to applications, solicitations, and new, continuation, 
and renewal awards (and any subsequent subawards).
    (b) Any new, continuation, or renewal award (and any subsequent 
subaward) shall comply with any applicable Federal statute, Federal 
rule, Office of Management and Budget (OMB) Circular and Governmentwide 
guidance in effect as of the date of such award.
    (c) Financial assistance to foreign entities is governed, to the 
extent appropriate, by this part and by the administrative requirements 
and cost principles applicable to their respective recipient type, e.g, 
governmental, non-profit, commercial.



Sec. 600.3  Definitions.

    Amendment means the written document executed by a DOE contracting 
officer that changes one or more terms or conditions of an existing 
financial assistance award.
    Award means the written document executed by a DOE Contracting 
Officer, after an application is approved, which contains the terms and 
conditions for providing financial assistance to the recipient.
    Budget period means the interval of time, specified in the award, 
into which a project is divided for budgeting and funding purposes.
    Continuation award means an award for a succeeding or subsequent 
budget period after the initial budget period of either an approved 
project period or renewal thereof.
    Contract means a written procurement contract executed by a 
recipient or subrecipient for the acquisition of property or services 
under a financial assistance award.
    Contracting Officer means the DOE official authorized to execute 
awards on behalf of DOE and who is responsible for the business 
management and non-program aspects of the financial assistance process.
    DOE Patent Counsel means the Department of Energy Patent Counsel 
assisting the Contracting Officer in the review and coordination of 
patents and data related items.
    Financial assistance means the transfer of money or property to a 
recipient or subrecipient to accomplish a public purpose of support or 
stimulation authorized by Federal statute. For purposes of this part, 
financial assistance instruments are grants and cooperative agreements 
and subawards.
    Head of Contracting Activity or HCA means a DOE official with senior 
management authority for the award and administration of financial 
assistance instruments within one or more DOE organizational elements.
    Nonprofit organization means any corporation, trust, foundation, or 
institution which is entitled to exemption under section 501(c)(3) of 
the Internal Revenue Code, or which is not organized for profit and no 
part of the net earnings of which inure to the benefit of any private 
shareholder or individual (except that the definition of ``nonprofit 
organization'' at 48 CFR 27.301 shall apply to the use of the patent 
clause at Section 600.27).
    Objective merit review means a thorough, consistent and independent 
examination of applications based on pre-established criteria by persons 
knowledgeable in the field of endeavor for which support is requested.
    Program rule means a rule issued by a DOE program office for the 
award and administration of financial assistance which may describe the 
program's purpose or objectives, eligibility requirements for 
applicants, types of program activities or areas to be supported, 
evaluation and selection process, cost sharing requirements, etc. These 
rules usually supplement the generic policies and procedures for 
financial assistance contained in this part.
    Project means the set of activities described in an application, 
State plan, or other document that is approved by DOE for financial 
assistance (whether such financial assistance represents all or only a 
portion of the support necessary to carry out those activities.)

[[Page 86]]

    Project period means the total period of time indicated in an award 
during which DOE expects to provide financial assistance. A project 
period may consist of one or more budget periods and may be extended by 
DOE.
    Recipient means the organization, individual, or other entity that 
receives an award from DOE and is financially accountable for the use of 
any DOE funds or property provided for the performance of the project, 
and is legally responsible for carrying out the terms and conditions of 
the award.
    Renewal award means an award which adds one or more additional 
budget periods to an existing project period.
    Research and development means all research activities, both basic 
and applied, and all development activities that are supported at 
universities, colleges, and other non-profit institutions and commercial 
organizations. ``Research'' is defined as a systematic study directed 
toward fuller scientific knowledge or understanding of the subject 
studied. The term research also includes activities involving the 
training of individuals in research techniques where such activities 
utilize the same facilities as other research and development activities 
and where such activities are not included in the instruction function. 
``Development'' is the systematic use of knowledge and understanding 
gained from research directed toward the production of useful materials, 
devices, systems, or methods, including design and development of 
prototypes and processes.



Sec. 600.4  Deviations.

    (a) General. (1) A deviation is the use of any policy, procedure, 
form, standard, term, or condition which varies from a requirement of 
this part, or the waiver of any such requirement, unless such use or 
waiver is authorized or precluded by Federal statute. The use of 
optional or discretionary provisions of this part, including special 
restrictive conditions used in accordance with Secs. 600.114 and 
600.212, are not deviations. Awards to foreign entities and the waiver 
of the cost sharing requirements in Sec. 600.30 or the patent 
requirements of Sec. 600.27 are not subject to this section.
    (2) A single-case deviation is a deviation which applies to one 
financial assistance transaction and one applicant, recipient, or 
subrecipient only.
    (3) A class deviation is a deviation which applies to more than one 
financial assistance transaction, applicant, recipient, or subrecipient.
    (b) The DOE officials specified in paragraph (c) of this section may 
authorize a deviation only upon a written determination that the 
deviation is--
    (1) Necessary to achieve program objectives;
    (2) Necessary to conserve public funds;
    (3) Otherwise essential to the public interest; or
    (4) Necessary to achieve equity.
    (c) Approval procedures. (1) A deviation request must be in writing 
and must be submitted to the responsible DOE Contracting Officer. An 
applicant for a subaward or a subrecipient shall submit any such request 
through the recipient.
    (2) Except as provided in paragraph (c)(3) of this section--
    (i) A single-case deviation may be authorized by the responsible 
HCA. Any proposed single-case deviation from the requirements of 
Sec. 600.27 concerning patents or data shall be referred to the DOE 
Patent Counsel for review and concurrence prior to submission to the 
HCA.
    (ii) A class deviation may be authorized by the Deputy Assistant 
Secretary for Procurement and Assistance Management or designee. Any 
proposed class deviation from the requirements of Sec. 600.27 concerning 
patents or data shall be forwarded through the Assistant General Counsel 
for Technology Transfer and Intellectual Property or designee.
    (3) Whenever the approval of OMB, other Federal agency, or other DOE 
office is required to authorize a deviation, the proposed deviation must 
be submitted to the Deputy Assistant Secretary for Procurement and 
Assistance Management or designee for concurrence prior to submission to 
the authorizing official.
    (d) Notice. Whenever a request for a class deviation is approved, 
DOE shall publish a notice in the Federal Register at least 15 days 
before the class

[[Page 87]]

deviation becomes effective. Whenever a class deviation is contained in 
a proposed program rule, the preamble to the proposed rule shall 
describe the purpose and scope of the deviation.
    (e) Subawards. A recipient may use a deviation in a subaward only 
with the prior written approval of a DOE Contracting Officer.



Sec. 600.5  Selection of award instrument.

    (a) If DOE has administrative discretion in the selection of the 
award instrument, the DOE decision as to whether the relationship is 
principally one of procurement or financial assistance shall be made 
pursuant to the Federal Grant and Cooperative Agreement Act as codified 
at 31 U.S.C. 6301-6306. A grant or cooperative agreement shall be the 
appropriate instrument, in accordance with this part, when the principal 
purpose of the relationship is the transfer of money or property to 
accomplish a public purpose of support or stimulation authorized by 
Federal statute. In selecting the type of financial assistance 
instrument, DOE shall limit involvement between itself and the recipient 
in the performance of a project to the minimum necessary to achieve DOE 
program objectives.
    (b) When it is anticipated that substantial involvement will be 
necessary between DOE and the recipient during performance of the 
contemplated activity, the award instrument shall be a cooperative 
agreement rather than a grant. Every cooperative agreement shall 
explicitly state the substantial involvement anticipated between DOE and 
the recipient during the performance of the project. Substantial 
involvement exists if:
    (1) Responsibility for the management, control, or direction of the 
project is shared by DOE and the recipient; or
    (2) Responsibility for the performance of the project is shared by 
DOE and the recipient.
    (c) Providing technical assistance or guidance of a programmatic 
nature to a recipient does not constitute substantial involvement if:
    (1) the recipient is not required to follow such guidance;
    (2) the technical assistance or guidance is not expected to result 
in continuing DOE involvement in the performance of the project; or
    (3) The technical assistance or guidance pertains solely to the 
administrative requirements of the award.
    (d) In cooperative agreements, DOE has the right to intervene in the 
conduct or performance of project activities for programmatic reasons. 
Intervention includes the interruption or modification of the conduct or 
performance of project activities. Suspension or termination of the 
cooperative agreement under Secs. 600.162 and 600.243 does not 
constitute intervention in the conduct or performance of project 
activities.



Sec. 600.6  Eligibility.

    (a) General. DOE shall solicit applications for financial assistance 
in a manner which provides for the maximum amount of competition 
feasible.
    (b) Restricted eligibility. If DOE restricts eligibility, an 
explanation of why the restriction of eligibility is considered 
necessary shall be included in the solicitation, program rule, or 
published notice. Except when authorized by statute or program rule, if 
the aggregate amount of DOE funds available for award under a 
solicitation or published notice is $1,000,000 or more, such restriction 
of eligibility shall be supported by a written determination initiated 
by the program office and approved by an official no less than two 
levels above the initiating program official and concurred in by the 
Contracting Officer and legal counsel. Where the amount of DOE funds is 
less than $1,000,000, the cognizant HCA and the Contracting Officer may 
approve the determination.
    (c) Noncompetitive financial assistance. DOE may award a grant or 
cooperative agreement on a noncompetitive basis only if the application 
satisfies one or more of the following selection criteria:
    (1) The activity to be funded is necessary to the satisfactory 
completion of, or is a continuation or renewal of, an activity presently 
being funded by DOE or another Federal agency, and for which competition 
for support would have a significant adverse effect on continuity or 
completion of the activity.

[[Page 88]]

    (2) The activity is being or would be conducted by the applicant 
using its own resources or those donated or provided by third parties; 
however, DOE support of that activity would enhance the public benefits 
to be derived and DOE knows of no other entity which is conducting or is 
planning to conduct such an activity.
    (3) The applicant is a unit of government and the activity to be 
supported is related to performance of a governmental function within 
the subject jurisdiction, thereby precluding DOE provision of support to 
another entity.
    (4) The applicant has exclusive domestic capability to perform the 
activity successfully, based upon unique equipment, proprietary data, 
technical expertise, or other such unique qualifications.
    (5) The award implements an agreement between the United States 
Government and a foreign government to fund a foreign applicant.
    (6) Time constraints associated with a public health, safety, 
welfare or national security requirement preclude competition.
    (7) The proposed project was submitted as an unsolicited proposal 
and represents a unique or innovative idea, method, or approach which 
would not be eligible for financial assistance under a recent, current, 
or planned solicitation, and if, as determined by DOE, a competitive 
solicitation would not be appropriate.
    (8) The responsible program Assistant Secretary (or official of 
equivalent authority), with the approval of the Deputy Assistant 
Secretary for Procurement and Assistance Management, determines that a 
noncompetitive award is in the public interest. This authority may not 
be delegated.
    (d) Approval requirements. Determinations of noncompetitive awards 
shall be approved, prior to award, by the initiating program official, 
by the responsible program Assistant Secretary (or official of 
equivalent authority) or designee, who shall be not less than two 
organizational levels above that of the project officer, by the 
Contracting Officer and shall be concurred in by local legal counsel. 
Where the amount of DOE funds is less than $1,000,000 for a 
noncompetitive financial assistance award, the determination shall be 
approved by the cognizant HCA and the Contracting Officer. Concurrence 
for a particular award or class of awards of $1,000,000 or less may be 
waived by local legal counsel.
    (e) Documentation requirements. A determination of noncompetitive 
financial assistance (normally prepared by the responsible program 
official) explaining the basis for the proposed noncompetitive award 
shall be placed in the award file.



Sec. 600.7  Small and disadvantaged and women-owned business participation.

    (a) DOE encourages the participation in financial assistance awards 
of small businesses, including those owned by socially and economically 
disadvantaged individuals and women, of historically black colleges, and 
of colleges and universities with substantial minority enrollments.
    (b) For definitions of the terms in paragraph (a) of this section, 
see the Higher Education Act of 1965, and 15 U.S.C. 644, as amended by 
the Federal Acquisition Streamlining Act (FASA), and implementing 
regulations under FASA issued by the Office of Federal Procurement 
Policy.
    (c) When entering into contracts under financial assistance awards, 
recipients and subrecipients shall comply with the requirements of 
Section 600.144 or Section 600.236, as applicable.



Sec. 600.8  Solicitation.

    (a) General. A solicitation for financial assistance applications 
shall be in the form of a program rule or other publicly available 
document which invites the submission of applications by a common due 
date or within a prescribed period of time.
    (1) A Program Assistant Secretary (or official of equivalent 
authority) may annually issue a program notice describing research areas 
in which financial assistance is being made available. Such notice shall 
also state whether the research areas covered by the notice are to be 
added to those listed in a previously issued program rule. If they are 
to be included, then applications received as a result of the notice

[[Page 89]]

may be treated as having been in response to that previously published 
program rule. If they are not to be included, then applications received 
in response to the notice are to be treated as unsolicited applications. 
Solicitations may be issued by a DOE Contracting Officer or program 
office with prior concurrence of the contracting office.
    (2) DOE shall publish either a copy or a notice of the availability 
of a financial assistance solicitation in the Federal Register. DOE 
shall publish solicitations or notices in the Commerce Business Daily 
when potential applicants include for-profit organizations or when there 
is the potential for significant contracting opportunities under the 
resulting financial assistance awards.
    (b) Subawards. In accordance with the provisions of the applicable 
statute and program rules, if a DOE financial assistance program 
involves the award of financial assistance by a recipient to a 
subrecipient, the recipient shall provide sufficient advance notice so 
that potential subrecipients may prepare timely applications and secure 
prerequisite reviews and approvals.
    (c) Contents of solicitation. Each solicitation shall provide 
information as may be necessary to allow potential applicants to decide 
whether to submit an application, to understand how applications will be 
evaluated, and to know what the obligations of a recipient would be. At 
a minimum, each solicitation must include:
    (1) A control number assigned by the issuing DOE office;
    (2) The amount of money available for award and, if appropriate, the 
expected size of individual awards broken down by areas of priority or 
emphasis, and the expected number of awards;
    (3) The type of award instrument or instruments to be used;
    (4) The Catalog of Federal Domestic Assistance number for the 
program;
    (5) Who is eligible to apply;
    (6) The expected duration of DOE support or the period of 
performance;
    (7) An application form or the format to be used, location for 
application submission, and number of copies required;
    (8) The name of the responsible DOE Contracting Officer (or, for 
program notices or solicitations issued by the program office, the 
program office contact) to contact for additional information, and, as 
appropriate, an address where application forms may be obtained;
    (9) Whether loans are available under the DOE Minority Economic 
Impact (MEI) loan program, 10 CFR part 800, to finance the cost of 
preparing a financial assistance application, and, if MEI loans are 
available, a general description of the eligibility requirements for 
such a loan, a reference to Catalog of Federal Domestic Assistance 
Number 81.063, and the name and address of the DOE office from which 
additional information and loan application forms can be obtained;
    (10) Appropriate periods or due dates for submission of applications 
and a statement describing the consequences of late submission. If 
programs have established a series of due dates to allow for the 
comparison of applications against each other, these dates shall be 
indicated in the solicitation;
    (11) The types of projects or activities eligible for support;
    (12) Evaluation criteria and the weight or relative importance of 
each, which may include one or more of the following or other criteria, 
as appropriate:
    (i) Qualifications of the applicant's personnel who will be working 
on the project;
    (ii) Adequacy of the applicant's facilities and resources;
    (iii) Cost-effectiveness of the project;
    (iv) Adequacy of the project plan or methodology;
    (v) Management capability of the applicant;
    (vi) Sources of financing available to the project. Any requirement 
concerning cost sharing shall be clearly stated (See also Sec. 600.30, 
Cost Sharing). Cost sharing is generally encouraged. However, unless 
cost sharing is required by the solicitation, it shall not be considered 
in the evaluation process and shall be considered only at the time the 
award is negotiated.
    (vii) Relationship of the proposed project to the objectives of the 
solicitation;

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    (13) A listing of program policy factors, if any, indicating the 
relative importance of each, if appropriate. Examples of program policy 
factors are:
    (i) Geographic distribution;
    (ii) Diverse types and sizes of applicant entities;
    (iii) A diversity of methods, approaches, or kinds of work; and
    (iv) Projects which are complementary to other DOE programs or 
projects;
    (14) References to or copies of:
    (i) Statutory authority for the program;
    (ii) Applicable rules, including the appropriate subparts of this 
part;
    (iii) Other terms and conditions applicable to awards to be made 
under the solicitation, including allowable and unallowable costs and 
reporting requirements;
    (iv) Policies and procedures for patents, data, copyrights, 
audiovisual productions and exhibits;
    (v) Any required assurances not included in the application form;
    (15) The deadline for submission of required or optional 
preapplications;
    (16) Date, time, and location of any briefing for applicants;
    (17) Required presubmission reviews and clearances, including a 
statement as to whether review under E.O. 12372, ``Intergovernmental 
Review of Federal Programs'', is required.
    (18) Dates by which selections and awards are expected to be made 
and whether unsuccessful applications will be returned to the applicant 
or be retained by DOE and for what period of time;
    (19) A statement that DOE is under no obligation to pay for any 
costs associated with preparation or submission of applications if an 
award is not made. If an award is made, such costs may be allowable as 
provided in the applicable cost principles (See Secs. 600.127 and 
600.222);
    (20) A statement that DOE reserves the right to fund, in whole or in 
part, any, all, or none of the applications submitted in response to the 
solicitation; and
    (21) Any other relevant information, including explanatory 
information or factual basis for justifications required by this part.



Sec. 600.9  Notice of program interest.

    (a) General. (1) DOE may publish periodic Notices of Program 
Interest in the Federal Register and other media, as appropriate, which 
describes broad, general, technical problems and areas of investigation 
for which DOE may award grants or cooperative agreements.
    (2) DOE shall evaluate any application submitted under a Notice of 
Program Interest as an unsolicited application.
    (b) Contents. The notice shall include:
    (1) A brief description of the areas of interest for which DOE may 
provide financial assistance;
    (2) A statement about how resulting applications will be evaluated 
and the criteria for selection and funding;
    (3) An expiration date with an explanation that such a date does not 
represent a common deadline for applications but rather that 
applications may be submitted at any time before the notice expires; and
    (4) The location for application submission.



Sec. 600.10  Form and content of applications.

    (a) General. Applications shall be required for all financial 
assistance projects or programs.
    (b) Forms. Applications shall be on the form or in the format and in 
the number of copies specified in a program rule, in the solicitation, 
or in these regulations. (See also Secs. 600.112 and 600.210.) For 
unsolicited applications, a guide for preparation and submission is 
available from Field/Headquarters Support Division, Office of 
Procurement and Assistance Management, Department of Energy, 1000 
Independence Avenue SW., Washington, DC 20585.
    (c) Contents of an application. In general, a financial assistance 
application shall include:
    (1) A facesheet containing basic identifying information. The 
facesheet shall be the Standard Form (SF)424 or other approved DOE 
application form;
    (2) A detailed narrative description of the proposed project, 
including the objectives of the project and the applicant's plan for 
carrying it out;

[[Page 91]]

    (3) A budget with supporting justification; and
    (4) Any required preaward assurances.
    (d) Incomplete applications. DOE may return an application that:
    (1) Is not signed, either in writing or electronically, by an 
official authorized to bind the applicant; or
    (2) Omits any information or documentation required by statute, 
program rule, or the solicitation, if the nature of the omission 
precludes review of the application.
    (e) Supplemental information. During the review of a complete 
application, DOE may request the submission of additional information 
only if the information is essential to evaluate the application.



Sec. 600.11  Intergovernmental review.

    Intergovernmental review of DOE financial assistance shall be 
conducted in accordance with 10 CFR part 1005.



Sec. 600.12  Generally applicable requirements.

    (a) Except as expressly exempted by Federal statute or program rule, 
recipients and subrecipients of DOE financial assistance shall comply 
with all generally applicable requirements to which they are subject. 
Generally applicable requirements include, but are not limited to, the 
requirements of this part, Federal statutes, the OMB Circulars and other 
Governmentwide guidance implemented by this part, Executive Orders, and 
the requirements identified in appendix A of this part.
    (b) Provisions shall be made to design and construct all buildings, 
in which DOE funds are used, to meet appropriate seismic design and 
construction standards. Seismic codes and standards meeting or exceeding 
the provisions of each of the model codes listed in this paragraph are 
considered to be appropriate for purposes of this part. These codes 
provide a level of seismic safety that is substantially equivalent to 
the National Earthquake Hazards Reduction Program (NEHRP) Recommended 
Provisions for the Development of Seismic Regulations for New Buildings, 
1988 Edition (Federal Emergency Management Administration 222 and 223). 
Revisions of these model codes that are substantially equivalent to or 
exceed the then current or immediately preceding edition of the NEHRP 
Recommended Provisions (which are updated triennially) shall be 
considered to be appropriate standards. The model codes are as follows:
    (1) 1991 Uniform Building Code, of the International Council of 
Building Officials,
    (2) 1992 Supplement to the National Building Code, of the Building 
Official and Code Administrators International.
    (3) 1992 Amendments to the Standard Building Code, of the Southern 
Building Code Congress International.



Sec. 600.13  Objective merit review.

    (a) General. (1) It is the policy of DOE that any financial 
assistance be awarded through a merit-based selection process. Objective 
merit review means a thorough, consistent and independent examination of 
applications based on pre-established criteria by persons knowledgeable 
in the field of endeavor for which support is requested.
    (2) Each program office must establish an objective merit review 
system covering the financial assistance programs it administers. 
Objective merit review of financial assistance applications is intended 
to be advisory and is not intended to replace the authority of the 
project/program official with responsibility for deciding whether an 
award will be made. It is expected that the cognizant project/program 
officer(s) who will select or be in the direct chain of supervision 
recommending selection or rejection of applications will not be a part 
of the objective review group. The objective merit review system must 
set forth the relationship between the reviewing individuals, or the 
review committees or groups, program/project management involved with 
directly advising the selection official with respect to program/project 
policy considerations and the selection official who has the final 
decision-making authority. In defining this relationship, the system 
must set out, as a minimum, the decision-making and documentation 
processes to be followed by the selection official in accepting or 
rejecting objective merit review recommendations.

[[Page 92]]

    (b) Each formal review system must contain the following elements:
    (1) Basic review standards. Applications should undergo an initial 
review for conformance with technical and administrative requirements 
stated in the notice or solicitation and for funding availability. For 
applications which pass the initial review, the DOE evaluation shall be 
in accordance with stated evaluation criteria set forth in the 
applicable program rule or notice, solicitation, or, where appropriate, 
the unsolicited proposal criteria in Sec. 600.6(c)(7).
    (2) Applications which have successfully completed an initial review 
are normally subjected to an objective merit review by a group comprised 
of three or more professionally and technically qualified persons. This 
advisory review is limited to technical and/or cost matters and should 
be separate from any programmatic review of program/policy factors 
involved in making a selection/rejection decision.
    (3) The reviewers of any particular application may be any mixture 
of federal or non-federal experts, including individuals from within the 
cognizant program office, except those involved in approving/
disapproving the application. The DOE shall select external (non-DOE 
Federal or non-federal) reviewers on the basis of their professional 
qualifications and expertise.
    (c) Reviewers with interest in application being reviewed. Reviewers 
must comply with the requirements for the avoidance of conflict of 
interest established in Sec. 600.14.
    (d) Outside reviewers. An outside reviewer shall be required to 
sign, either in writing or electronically, a written statement agreeing 
to use the application information only for review and to treat it in 
confidence except to the extent that the information is available to the 
general public without restriction as to its use from any source, 
including the applicant. Further, the reviewer shall be required to 
agree to comply with any notice or restriction placed on the 
application. Upon completion of the review, the reviewer shall return 
all copies of the application (or abstracts, if any) to DOE; and unless 
authorized by DOE, the reviewer shall not contact the applicant 
concerning any aspect of the application.



Sec. 600.14  Conflict of interest.

    Any person who participates in the review of applications for DOE 
financial assistance or in the administration of DOE financial 
assistance shall comply with 1010.101(a) and 1010.302(a)(1) of the DOE 
rules on the conduct of employees and special employees (consultants) at 
10 CFR part 1010. Current and former DOE employees who participate in 
any aspect of the financial assistance process shall comply with all 
applicable requirements of 10 CFR part 1010.



Sec. 600.15  Authorized uses of information.

    (a) General. Information contained in applications shall be used 
only for evaluation purposes unless such information is generally 
available to the public or is already the property of the Government. 
The Trade Secrets Act, 18 U.S.C. 1905, prohibits the unauthorized 
disclosure by Federal employees of trade secret and confidential 
business information.
    (b) Treatment of application information. (1) An application may 
include technical data and other data, including trade secrets and/or 
privileged or confidential commercial or financial information, which 
the applicant does not want disclosed to the public or used by the 
Government for any purpose other than application evaluation. To protect 
such data, the applicant should specifically identify each page 
including each line or paragraph thereof containing the data to be 
protected and mark the cover sheet of the application with the following 
Notice as well as referring to the Notice on each page to which the 
Notice applies:

           Notice of Restriction on Disclosure and Use of Data

    The data contained in pages ______ of this application have been 
submitted in confidence and contain trade secrets or proprietary 
information, and such data shall be used or disclosed only for 
evaluation purposes, provided that if this applicant receives an award 
as a result of or in connection with the submission of this application, 
DOE shall have the right to use or disclose the data herein to the 
extent provided in the

[[Page 93]]

award. This restriction does not limit the Government's right to use or 
disclose data obtained without restriction from any source, including 
the applicant.

    (2) Unless a solicitation specifies otherwise, DOE shall not refuse 
to consider an application solely on the basis that the application is 
restrictively marked.
    (3) Data (or abstracts of data) marked with the Notice under 
paragraph (b)(1) of this section shall be retained in confidence and 
used by DOE or its designated representatives as specified in 
Sec. 600.13 solely for the purpose of evaluating the proposal. The data 
so marked shall not be disclosed or used for any other purpose except to 
the extent provided in any resulting award, or to the extent required by 
law, including the Freedom of Information Act (5 U.S.C. 552) (10 CFR 
part 1004). The Government shall not be liable for disclosure or use of 
unmarked data and may use or disclose such data for any purpose.
    (4) The Government shall obtain unlimited rights in the technical 
data contained in any application which results in an award except those 
portions of the technical data which the applicant asserts and properly 
marks as proprietary data, or which are not directly related to or will 
not be utilized in the project and are deleted from the application with 
the concurrence of DOE.
    (5) The clause at 48 CFR 52.227-23, which applies only to technical 
data and not to other data such as privileged or confidential commercial 
or financial information shall apply to every award.



Sec. 600.16  Legal authority and effect of an award.

    (a) A DOE financial assistance award is valid only if it is in 
writing and is signed, either in writing or electronically, by a DOE 
Contracting Officer.
    (b) DOE funds awarded under a grant or cooperative agreement shall 
be obligated as of the date the DOE Contracting Officer signs the award; 
however, the recipient is not authorized to incur costs under an award 
prior to the beginning date of the budget period shown in the award 
except as may be authorized in accordance with Secs. 600.125(e) or 
600.230 of this part. The duration of the DOE financial obligation shall 
not extend beyond the expiration date of the budget period shown in the 
award unless authorized by a DOE Contracting Officer by means of a 
continuation or renewal award or other extension of the budget period.



Sec. 600.17  Contents of award.

    Each financial assistance award shall be made on a Notice of 
Financial Assistance Award (DOE F 4600.1) which contains basic 
identifying and funding information together with attachments including 
a budget, any special terms and conditions, and any other provisions 
necessary to establish the respective right, duties, obligation, and 
responsibilities of DOE and the recipient, consistent with the 
requirements of this part.



Sec. 600.18  Recipient acknowledgement of award.

    (a) After signature by the DOE Contracting Officer, the award shall 
be sent to the recipient. The recipient shall acknowledge acceptance by 
returning a copy signed either in writing or electronically. No DOE 
funds shall be disbursed until the award document signed by the 
recipient is received by DOE.
    (b) In the event a recipient declines an award, DOE shall deobligate 
the funds obligated by the award after providing the applicant with at 
least two weeks written notice of DOE's intention to deobligate.
    (c) After the recipient acknowledges the award, the terms and 
conditions of the award may be amended only upon the written request or 
with the written concurrence of the recipient unless the amendment is 
one which DOE may make unilaterally in accordance with a program rule or 
this part.



Sec. 600.19  Notification to unsuccessful applicants.

    DOE shall promptly notify in writing each applicant whose 
application has not been selected for award or whose application cannot 
be funded because of the unavailability of appropriated funds. If the 
application was not selected, the written notice shall briefly explain 
why the application was not selected and, if for grounds other than

[[Page 94]]

unavailability of funds, shall offer the unsuccessful applicant the 
opportunity for a more detailed explanation upon request.



Sec. 600.20  Maximum DOE obligation.

    (a) The maximum DOE obligation to the recipient is--
    (1) For monetary awards, the amount shown in the award as the amount 
of DOE funds obligated, and
    (2) Any designated property.
    (b) DOE shall not be obligated to make any additional, supplemental, 
continuation, renewal, or other award for the same or any other purpose.



Sec. 600.21  Access to records.

    (a) In addition to recipient and subrecipient responsibilities 
relative to access to records specified in Secs. 600.153 and 600.242, 
for any negotiated contract or subcontract in excess of $10,000 under a 
grant or cooperative agreement, DOE, the Comptroller General of the 
United States, the recipient and the subrecipient (if the contract was 
awarded under a financial assistance subaward), or any of their 
authorized representatives shall have the right of access to any books, 
documents, papers, or other records of the contractor or subcontractor 
which are pertinent to that contract or subcontract, in order to make 
audit, examination, excerpts, and copies.
    (b) The right of access may be exercised for as long as the 
applicable records are retained by the recipient, subrecipient, 
contractor, or subcontractor.



Sec. 600.22  Disputes and appeals.

    (a) Informal dispute resolution. Whenever practicable, DOE shall 
attempt to resolve informally any dispute over the award or 
administration of financial assistance. Informal resolution, including 
resolution through an alternative dispute resolution mechanism, shall be 
preferred over formal procedures available in 10 CFR Part 1024, to the 
extent practicable.
    (b) Alternative dispute resolution (ADR). Before issuing a final 
determination in any dispute in which informal resolution has not been 
achieved, the Contracting Officer shall suggest that the other party 
consider the use of voluntary consensual methods of dispute resolution, 
such as mediation. The DOE dispute resolution specialist is available to 
provide assistance for such disputes, as are trained mediators of other 
federal agencies. ADR may be used at any stage of a dispute.
    (c) Final determination. Whenever a dispute is not resolved 
informally or through an alternative dispute resolution process, DOE 
shall mail (by certified mail) a brief written determination signed by a 
Contracting Officer, setting forth DOE's final disposition of such 
dispute. Such determination shall contain the following information:
    (1) A summary of the dispute, including a statement of the issues 
and of the positions taken by the Department and the party or parties to 
the dispute; and
    (2) The factual, legal and, if appropriate, policy reasons for DOE's 
disposition of the dispute.
    (d) Right of appeal. (1) Except as provided in paragraph (f)(1) of 
this section, the final determination under paragraph (c) of this 
section may be appealed to the Financial Assistance Appeals Board (the 
Board) in accordance with the procedures set forth in 10 CFR part 1024.
    (2) If the final determination under paragraph (c) of this section 
involves a dispute over which the Board has jurisdiction as provided in 
paragraph (f)(2) of this section, the Contracting Officer's 
determination shall state that, with respect to such dispute, the 
determination shall be the final decision of the Department unless, 
within 60 days, a written notice of appeal is filed.
    (3) If the final determination under paragraph (c) of this section 
involves a dispute over which the Board has no jurisdiction as provided 
in paragraph (f)(1) of this section, the Contracting Officer's 
determination shall state that, effective immediately or on a later date 
specified therein, the determination shall, with respect to such 
dispute, be the final decision of the Department.
    (e) Effect of appeal. The filing of an appeal with the Board shall 
not stay any determination or action taken by DOE which is the subject 
of the appeal.

[[Page 95]]

Consistent with its obligation to protect the interests of the Federal 
Government, DOE may take such authorized actions as may be necessary to 
preserve the status quo pending decision by the Board, or to preserve 
its ability to provide relief in the event the Board decides in favor of 
the appellant.
    (f) Review on appeal. (1) The Board shall have no jurisdiction to 
review:
    (i) Any preaward dispute (except as provided in paragraph (f)(2)(ii) 
of this section), including use of any special restrictive condition 
pursuant to Secs. 600.114 or 600.212;
    (ii) DOE denial of a request for a deviation under Secs. 600.4, 
600.103, or 600.205 of this part;
    (iii) DOE denial of a request for a budget revision or other change 
in the approved project under Secs. 600.125, 600.127, 600.222, or 
600.230 of this part or under another term or condition of the award;
    (iv) Any DOE action authorized under Secs. 600.162(a) (1), (2), (3) 
or (5); or Secs. 600.243 (a)(1), (a)(3) for suspensions only; or 
Sec. 600.162(a)(4) or Sec. 600.243(a)(4) for actions disapproving 
renewal applications or other requests for extension of time or 
additional funding for the same project when related to recipient 
noncompliance, or such actions authorized by program rule;
    (v) Any DOE decision about an action requiring prior DOE approval 
under Sec. 600.144, or Sec. 600.236 of this part or under another term 
or condition of the award;
    (vi) A DOE decision not to make a continuation award, which decision 
is based on the insufficiency of available appropriations;
    (vii) Any matter which is under the jurisdiction of the Patent 
Compensation Board (10 CFR 780.3);
    (viii) Any matter which may be heard by the Invention Licensing 
Appeals Board (10 CFR 781.65 and 781.66); and
    (ix) Any other dispute not described in paragraph (f)(2) of this 
section.
    (2) In addition to any right of appeal established by program rule, 
or by the terms and conditions (not inconsistent with paragraph (f)(1) 
of this section) of an award, the Board shall have jurisdiction to 
review:
    (i) A DOE determination that the recipient has failed to comply with 
the applicable requirements of this part, the program statute or rules, 
or other terms and conditions of the award;
    (ii) A DOE decision not to make a continuation award based on any of 
the determinations described in paragraph (f)(2)(i) of this section;
    (iii) Termination of an award for cause, in whole or in part, by 
DOE;
    (iv) A DOE determination that an award is void or invalid;
    (v) The application by DOE of an indirect cost rate; and
    (vi) DOE disallowance of costs.
    (3) In reviewing disputes authorized under paragraph (f)(2) of this 
section, the Board shall be bound by the applicable law, statutes, and 
rules, including the requirements of this part, and by the terms and 
conditions of the award.
    (4) The decision of the Board shall be the final decision of the 
Department.



Sec. 600.23  Debarment and suspension.

    Applicants, recipients, subrecipients, and contractors under 
financial assistance awards may be debarred and suspended for the causes 
and in accordance with the procedures set forth in 10 CFR part 1036.



Sec. 600.24  Noncompliance.

    (a) Except for noncompliance with nondiscrimination requirements 
under 10 CFR part 1040, whenever DOE determines that a recipient has not 
complied with the applicable requirements of this part, with the 
requirements of any applicable program statute or rule, or with any 
other term or condition of the award, a DOE Contracting Officer shall 
provide to the recipient (by certified mail, return receipt requested) a 
written notice setting forth:
    (1) The factual and legal bases for the determination of 
noncompliance;
    (2) The corrective actions and the date (not less than 30 days after 
the date of the notice) by which they must be taken.
    (3) Which of the actions authorized under Secs. 600.122(n), 
600.162(a) or Sec. 600.243(a) of this part DOE may take if the recipient 
does not achieve compliance within the time specified in the notice, or 
does not provide satisfactory

[[Page 96]]

assurances that actions have been initiated which will achieve 
compliance in a timely manner.
    (b) DOE may take any of the actions set forth in Sec. 600.121(n,), 
Sec. 600.162(a), or Sec. 600.243(a) of this part concurrent with the 
written notice required under paragraph (a) of this section or with less 
than 30 days written notice to the recipient whenever:
    (1) There is evidence the award was obtained by fraud;
    (2) The recipient ceases to exist or becomes legally incapable of 
performing its responsibilities under the financial assistance award; or
    (3) There is a serious mismanagement or misuse of financial 
assistance award funds necessitating immediate action.



Sec. 600.25  Suspension and termination.

    (a) Suspension and termination for cause. DOE may suspend or 
terminate an award for cause on the basis of:
    (1) A noncompliance determination under Secs. 600.24, 600.122(n), 
600.162(a), or Sec. 600.243(a); or
    (2) An suspension or debarment of the awardee under Sec. 600.23.
    (b) Notification requirements. Except as provided in Sec. 600.24, 
600.162(a), or Sec. 600.243(a) before suspending or terminating a award 
for cause, DOE shall mail to the awardee (by certified mail, return 
receipt requested) a separate written notice in addition to that 
required by Secs. 600.24(a), 600.162(a), or Sec. 600.243(a) at least ten 
days prior to the effective date of the suspension or termination. Such 
notice shall include, as appropriate:
    (1) The factual and legal bases for the suspension or termination;
    (2) The effective date or dates of the DOE action;
    (3) If the action does not apply to the entire award, a description 
of the activities affected by the action;
    (4) Instructions concerning which costs shall be allowable during 
the period of suspension, or instructions concerning allowable 
termination costs, including in either case, instructions concerning any 
subgrants or contracts;
    (5) Instructions concerning required final reports and other 
closeout actions for terminated awards (see Secs. 600.170 through 
600.173 and Secs. 600.250 through 600.252);
    (6) A statement of the awardee's right to appeal a termination for 
cause pursuant to Sec. 600.22; and
    (7) The dated signature of a DOE Contracting Officer.
    (c) Suspension. (1) Unless DOE and the awardee agree otherwise, no 
period of suspension shall exceed 90 days.
    (2) DOE may cancel the suspension at any time, up to and including 
the date of expiration of the period of suspension, if the awardee takes 
satisfactory corrective action before the expiration date of the 
suspension or gives DOE satisfactory evidence that such corrective 
action will be taken.
    (3) If the suspension has not been cancelled by the expiration date 
of the period of suspension, the awardee shall resume the suspended 
activities or project unless, prior to the expiration date, DOE notifies 
the awardee in writing that the period of suspension shall be extended 
consistent with paragraph (c)(1) of this section or that the award shall 
be terminated.
    (4) As of the effective date of the suspension, DOE shall withhold 
further payments and shall allow new obligations incurred by the awardee 
during the period of suspension only if such costs were authorized in 
the notice of suspension or in a subsequent letter.
    (5) If the suspension is cancelled or expires and the award is not 
terminated, DOE shall reimburse the awardee for any authorized allowable 
costs incurred during the suspension and, if necessary, may amend the 
award to extend the period of performance.
    (d) Termination by mutual agreement. In addition to any situation 
where a termination for cause pursuant to Secs. 600.24, 600.160 through 
600.162 or Secs. 600.243 through 600.244 is appropriate, either DOE or 
the awardee may initiate a termination of an award (or portion thereof) 
as described in this paragraph. If the awardee initiates a termination, 
the awardee must notify DOE in writing and specify the awardee's reasons 
for requesting the termination, the proposed effective date of the 
termination, and, in the case of a partial termination, a description of 
the activities to be terminated, and an appropriate budget revision. DOE 
shall terminate an award or portion thereof

[[Page 97]]

under this paragraph only if both parties agree to the termination and 
the conditions under which it shall occur. If DOE determines that the 
remaining activities under a partially terminated award would not 
accomplish the purpose for which the award was originally awarded, DOE 
may terminate the entire award.
    (e) Effect of termination. The awardee shall incur no new 
obligations after the effective date of the termination of an award (or 
portion thereof), and shall cancel as many outstanding obligations as 
possible. DOE shall allow full credit to the awardee for the DOE share 
of noncancellable obligations properly incurred by the awardee prior to 
the effective date of the termination.
    (f) Subgrants. Awardees shall follow the policies and procedures in 
this section and in Secs. 600.24, 600.160 through 600.162 or 
Secs. 600.243 through 600.244 for suspending and terminating subgrants.



Sec. 600.26  Funding.

    (a) General. The project period during which DOE expects to provide 
award support for an approved project shall be specified on the Notice 
of Financial Assistance Award (DOE Form 4600.1).
    (b) Budget period and continuation awards. If the project period is 
12 months or less, the budget period and the project period shall be 
coextensive. Multiyear awards, including formula awards, shall generally 
be funded annually within the approved project period. Funding for each 
budget period within the project period shall be contingent on DOE 
approval of a continuation application submitted in accordance with a 
schedule specified by DOE. A continuation application shall include:
    (1) A statement of technical progress or status of the project to 
date;
    (2) A detailed description of the awardee's plans for the conduct of 
the project during the coming year; and
    (3) A detailed budget for the upcoming budget period, including an 
estimate of unobligated balances. A detailed budget need not be 
submitted if the new or renewal application contained future-year 
budgets sufficiently detailed to allow DOE to review and approve the 
categories and elements of cost. Should the award have a change in scope 
or significant change in the budget, DOE may request a detailed budget.
    (4) DOE shall review a continuation application for the adequacy of 
the awardee's progress and planned conduct of the project in the 
subsequent budget period. DOE shall not require a continuation 
application to compete against any other application. The amount and 
award of continuation funding is subject to the availability of 
appropriations.
    (c) Renewal awards. Discretionary renewal awards may be made either 
on the basis of a solicitation or on a noncompetitive basis. If DOE 
proposes to restrict eligibility for a discretionary renewal award to 
the incumbent grantee, the noncompetitive award must be justified in 
accordance with Sec. 600.6(b)(2). Renewal applications must be submitted 
no later than 6 months prior to the scheduled expiration of the project 
period unless a program rule or other published instruction establishes 
a different application deadline.
    (d) Extensions. Unless otherwise specified in the award terms and 
conditions, recipients of financial assistance awards, except recipients 
of SBIR awards (See Sec. 600.181), may extend the expiration date of the 
final budget period of the project (thereby extending the project 
period) if additional time beyond the established expiration date is 
needed to assure adequate completion of the original scope of work 
within the funds already made available. A single extension, which shall 
not exceed twelve (12) months, may be made for this purpose, and must be 
made prior to the originally established expiration date. The recipient 
must notify the cognizant DOE Contracting Officer in the awarding office 
in writing within ten (10) days of making the extension.



Sec. 600.27  Patent and data provisions.

    (a) General. Financial assistance shall be awarded and administered 
by DOE in compliance with the patent and data provisions of this section 
(See also Secs. 600.136 and 600.234.) To the extent not otherwise 
provided in this part, the policies, procedures and clauses referenced 
for contracts in 48 CFR part 927 and 41 CFR part 9-9 shall normally

[[Page 98]]

be applicable to the award and administration of Departmental grants and 
cooperative agreements. Copies of 41 CFR part 9-9 are available by 
contacting the DOE Patent Counsel.
    (b) Required clauses. In all solicitations and awards both for the 
support of research, development, and demonstration and for other 
efforts, the DOE Contracting Officer shall consult the DOE Patent 
Counsel for applicable patent and data clauses from those listed below 
and/or for modifications thereto. In reading each 48 CFR part 27 and 48 
CFR part 952 patent and data clause selected for inclusion in a 
solicitation or award, the term ``contract'' when referring to a prime 
contract shall be read as ``award.'' The term ``contractor'' shall be 
read as referring to the ``awardee.'' The term ``subcontract'' shall be 
read as ``subaward or a procurement contract under an award or subaward 
and/or a procurement subcontract under an awardee's or subawardee's 
contract.'' The term ``Acquisition'' with respect to the Long Form 
Patent Rights Clause shall be read as ``Retention.'' The terms 
``offerors'' and ``quoters'' shall be read as ``applicants,'' and 
``proposal'' and ``quotation'' shall be read as ``application.''
    (1) Patent clauses--(i) (Short Form Patent Clause). Incorporate the 
clause at 48 CFR 952.227-11 for awards to a domestic small business firm 
or nonprofit organization as defined at 48 CFR 27.301. In accordance 
with 35 U.S.C. 202(a)(ii), the DOE may issue an exceptional 
circumstances determination. To implement any exceptional circumstances 
determination, DOE will modify 48 CFR 952.227-11 to retain greater 
rights in subject inventions. Such modifications will be only to the 
extent necessary to implement the exceptional circumstances 
determination.
    (ii) (Long Form Patent Clause). For awards to a large business firm 
or other organization, other than a domestic small business firm or 
nonprofit organization as set forth in 48 CFR 27.301, incorporate the 
clause at 48 CFR 952.227-13.
    (iii) The notice of Right to Request Patent Waiver at 48 CFR 
952.227-84 shall also be inserted in all solicitations to advise 
applicants of their rights to request in advance of, or within 30 days 
after the award is signed, a waiver of all or any part of the rights of 
the United States with respect to subject inventions. For unsolicited 
applications, DOE shall provide this notice to the applicant prior to 
award.
    (2) Data clauses (includes copyright provisions)--(i) Rights in 
data--General. (A) Incorporate 48 CFR 52.227-14 with Alternates I and V. 
Solicitations shall also include the Representation of Limited Rights 
Data and Restricted Computer Software clause at 48 CFR 52.227-15.
    (B) In awards for grants and cooperative agreements with 
institutions of higher education, hospitals, and other non-profit 
organizations, the following paragraph (c) will be used in lieu of the 
provisions in 48 CFR 52.227-14(c):

    (c) Copyright. (1) Data first produced in the performance of the 
award. Except as otherwise specifically provided in this award, the 
recipient may establish claim to copyright subsisting in any data first 
produced in the performance of this award. When claim to copyright is 
made, the Recipient shall affix the applicable copyright notice of 17 
U.S.C. 401 or 402 and acknowledgement of Government sponsorship 
(including award number) to the data when such data are delivered to the 
Government, as well as when the data are published or deposited for 
registration as a published work in the U.S. Copyright Office. The 
recipient grants to the Government a royalty-free, nonexclusive and 
irrevocable right to reproduce, publish, or otherwise use the work for 
Federal purposes, and to authorize others to do so. The right to publish 
includes the right to publicly distribute. The right to use the work for 
Federal purposes includes the right to prepare derivative works.

    (C) For grants and cooperative agreements with commercial 
organizations, foreign governments, organizations under the jurisdiction 
of foreign governments, and international organizations, the provisions 
of the following paragraph (d)(3) shall be used in addition to the 
provisions in 48 CFR 52.227-14:

    (d)(3) The Recipient agrees not to establish claim to copyright in 
computer software first produced in the performance of this award 
without prior written permission of the Contracting Officer. When such 
permission is granted, the Contracting Officer shall

[[Page 99]]

specify appropriate terms to assure dissemination of the software. The 
recipient shall promptly deliver to the Contracting Officer or to the 
DOE Patent Counsel designated by the Contracting Officer a duly executed 
and approved instrument fully confirmatory of all rights to which the 
Government is entitled, and other terms pertaining to the computer 
software to which claim to copyright is made.

    (D) If programmatic needs on a particular award require the delivery 
to the Government of limited rights data or restricted computer 
software, Alternates II or III of 48 CFR 52.227-14 shall also be added.
    (ii) Restriction on disclosure and use of data. Insert the Notice at 
Sec. 600.15(b)(1) in all solicitations.
    (iii) Rights to application data. As discussed at Sec. 600.15(b)(5), 
incorporate 48 CFR 52.227-23.
    (iv) Additional data requirements. Incorporate 48 CFR 52.227-16. In 
the event all technical data requirements are known in advance of and 
are set forth in the agreement or, the award is for the performance of 
basic or applied research and is to be performed solely by a university 
or college as discussed in 48 CFR 27.406(b), 48 CFR 52.227-16 does not 
need to be incorporated.
    (3) Authorization and consent. Incorporate 48 CFR 52.227-1 or 
Alternates I or II, as appropriate, in accordance with the guidance in 
48 CFR 927.201-1 and 48 CFR 27.201.
    (4) Patent indemnity. Incorporate the clause set forth in 48 CFR 
52.227-3, as appropriate, in accordance with the guidance in 48 CFR 
27.203-1 and 48 CFR 27.203-3.
    (5) Filing of patent applications--Classified subject matter. 
Incorporate the following paragraphs in any solicitation or award which 
covers, or is likely to cover, classified subject matter:

                          Classified Inventions

    (a) The recipient shall not file or cause to be filed on any 
invention or discovery conceived or first actually reduced to practice 
in the course of or under this award in any country other than the 
United States, an application or registration for a patent without first 
obtaining written approval of the Contracting Officer.
    (b) When filing a patent application in the United States on any 
invention or discovery conceived of or first actually reduced to 
practice in the course of or under this award, the subject matter of 
which is classified for reasons of security, the awardee shall observe 
all applicable security regulations covering the transmission of 
classified subject matter. When transmitting the patent application to 
the United States Patent and Trademark Office, the awardee shall, by 
separate letter, identify by agency and agreement number the award(s) 
which require security classification markings to be placed on the 
application.

    (6) Notice and assistance regarding patent and copyright 
infringement. Incorporate the clause at 48 CFR 52.227-2, in accordance 
with the guidance in 48 CFR 27.202, in all awards in excess of $100,000 
for construction, research, development, and demonstration work which is 
to be performed within the United States, its possessions, or Puerto 
Rico.
    (7) Royalty information. Incorporate 48 CFR 52.227-6.
    (8) Refund of royalties. As discussed in 48 CFR 927.206, incorporate 
the clause at 48 CFR 952.227-9 in solicitations and awards where the 
Contracting Officer believes royalties will have to be paid by the 
awardees or subawardee or contractor at any tier.
    (9) Subawards and contracts under award. The recipient shall include 
the applicable clauses of this section in any subaward or contract 
awarded under the award and assure that the applicable clauses are also 
included by subrecipients in contracts.



Sec. 600.28  Restrictions on lobbying.

    Procedures regarding restrictions on lobbying activities of 
applicants and recipients are contained in 10 CFR 601.110.



Sec. 600.29  Fixed obligation awards.

    (a) General. This section contains provisions applicable to the 
award of financial assistance instruments on a fixed amount basis. Under 
a fixed obligation award, funds are issued in support of a project 
without a requirement for Federal monitoring of actual costs 
subsequently incurred.
    (b) Provisions applicable to fixed obligation awards. Financial 
assistance awards may be made on a fixed obligation basis subject to the 
following requirements:

[[Page 100]]

    (1) Each fixed obligation award may neither exceed $100,000 nor 
exceed one year in length.
    (2) Programs which require mandatory cost sharing are not eligible.
    (3) Proposed costs must be analyzed in detail to ensure consistency 
with applicable cost principles.
    (4) Budget categories are not stipulated in making an award. 
However, budgets are submitted by an applicant and reviewed for purposes 
of establishing the amount to be awarded.
    (5) Payments must be made in the same manner as other financial 
assistance awards, except that when determined appropriate by the 
cognizant program official and contracting officer a lump sum payment 
may be made.
    (6) Recipients must certify in writing to the contracting officer at 
the end of the project that the activity was completed or the level of 
effort was expended, however should the activity or effort not be 
carried out, the recipient would be expected to make appropriate 
reimbursements.
    (7) Periodic reports may be established for each award so long as 
they are not more frequently than quarterly.
    (8) Changes in principal investigator or project leader, scope of 
effort, or institution, must receive the prior approval of the 
Department.



Sec. 600.30  Cost sharing.

    In addition to the requirements of Sec. 600.123 or Sec. 600.224, the 
following requirements apply to research, development, and demonstration 
projects:
    (a) When DOE awards financial assistance for research, development, 
and demonstration projects where the primary purpose of the project is 
the ultimate commercialization and utilization of technology by the 
private sector and when there are reasonable expectations that the 
recipient will receive significant present or future economic benefits 
beyond the instant award as a result of the performance of the project, 
cost sharing shall be required. Unless the cost sharing is required by 
statute, a waiver of the requirement on a single-case or class basis may 
be approved by the cognizant Program Assistant Secretary or designee.
    (b) Except as provided in section 3002 of the Energy Policy Act of 
1992, 42 U.S.C. 13542, or program rule, DOE will decide, on a case-by-
case basis, the amount of cost sharing required for a particular 
project.
    (c) Factors in addition to those specified in Sec. 600.123 or 
Sec. 600.224, which may be considered when negotiating cost sharing for 
research, development, and demonstration projects include the potential 
benefits to a recipient resulting from the project and the length of 
time before a project is likely to be commercially successful.



     Subpart B--Uniform Administrative Requirements for Grants and 
Cooperative Agreements With Institutions of Higher Education, Hospitals, 
       Other Non-Profit Organizations and Commercial Organizations

    Source: 59 FR 53266, Oct. 21, 1994, unless otherwise noted.

                                 General



Sec. 600.100  Purpose.

    This subpart implements OMB Circular A-110 and establishes uniform 
administrative requirements for grants and agreements awarded to 
institutions of higher education, hospitals, and other non-profit and 
commercial organizations. It also establishes rules governing subawards 
to institutions of higher education, hospitals, and non-profit and 
commercial organizations (including grants and cooperative agreements 
administered by State, local and Indian Tribal governments).



Sec. 600.101  Definitions.

    Accrued expenditures means the charges incurred by the recipient 
during a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subrecipients, and 
other payees; and,
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required.
    Accrued income means the sum of:

[[Page 101]]

    (1) Earnings during a given period from services performed by the 
recipient, and goods and other tangible property delivered to 
purchasers, and
    (2) Amounts becoming owed to the recipient for which no current 
services or performance is required by the recipient.
    Acquisition cost of equipment means the net invoice price of the 
equipment, including the cost of modifications, attachments, 
accessories, or auxiliary apparatus necessary to make the property 
usable for the purpose for which it was acquired. Other charges, such as 
the cost of installation, transportation, taxes, duty or protective in-
transit insurance, shall be included or excluded from the unit 
acquisition cost in accordance with the recipient's regular accounting 
practices.
    Advance means a payment made by Treasury check or other appropriate 
payment mechanism to a recipient upon its request either before outlays 
are made by the recipient or through the use of predetermined payment 
schedules.
    Award means financial assistance that provides support or 
stimulation to accomplish a public purpose. Awards include grants and 
other agreements in the form of money or property in lieu of money, by 
DOE to an eligible recipient. The term does not include: technical 
assistance, which provides services instead of money; other assistance 
in the form of loans, loan guarantees, interest subsidies, or insurance; 
direct payments of any kind to individuals; and, contracts which are 
required to be entered into and administered under procurement laws and 
regulations.
    Cash contributions means the recipient's cash outlay, including the 
outlay of money contributed to the recipient by third parties.
    Closeout means the process by which DOE determines that all 
applicable administrative actions and all required work of the award 
have been completed by the recipient and DOE.
    Contract means a procurement contract under an award or subaward, 
and a procurement subcontract under a recipient's or subrecipient's 
contract.
    Cost sharing or matching means that portion of project or program 
costs not borne by DOE.
    Date of completion means the date on which all work under an award 
is completed or the date on the award document, or any supplement or 
amendment thereto, on which DOE sponsorship ends.
    Disallowed costs means those charges to an award that the DOE 
determines to be unallowable, in accordance with the applicable Federal 
cost principles or other terms and conditions contained in the award.
    Equipment means tangible nonexpendable personal property including 
exempt property charged directly to the award having a useful life of 
more than one year and an acquisition cost of $5000 or more per unit. 
However, consistent with recipient policy, lower limits may be 
established.
    Excess property means property under the control of any Federal 
awarding agency that, as determined by the head thereof, is no longer 
required for its needs or the discharge of its responsibilities.
    Exempt property means tangible personal property acquired in whole 
or in part with Federal funds, where the Federal awarding agency has 
statutory authority to vest title in the recipient without further 
obligation to the Federal Government. An example of exempt property 
authority is contained in the Federal Grant and Cooperative Agreement 
Act (31 U.S.C. 6306), for property acquired under an award to conduct 
basic or applied research by a non-profit institution of higher 
education or non-profit organization whose principal purpose is 
conducting scientific research.
    Federal awarding agency means the Federal agency that provides an 
award to the recipient.
    Federal funds authorized means the total amount of Federal funds 
obligated by the Federal Government for use by the recipient. This 
amount may include any authorized carryover of unobligated funds from 
prior funding periods when permitted by agency regulations or agency 
implementing instructions.
    Federal share of real property, equipment, or supplies means that 
percentage of the property's acquisition costs and any improvement 
expenditures paid with Federal funds.

[[Page 102]]

    Funding period or budget period means the period of time when DOE 
funding is available for obligation by the recipient.
    Intangible property and debt instruments means, but is not limited 
to, trademarks, copyrights, patents and patent applications and such 
property as loans, notes and other debt instruments, lease agreements, 
stock and other instruments of property ownership, whether considered 
tangible or intangible.
    Obligations means the amounts of orders placed, contracts and grants 
awarded, services received and similar transactions during a given 
period that require payment by the recipient during the same or a future 
period.
    Outlays or expenditures means charges made to the project or 
program. They may be reported on a cash or accrual basis. For reports 
prepared on a cash basis, outlays are the sum of cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
charged, the value of third party in-kind contributions applied and the 
amount of cash advances and payments made to subrecipients. For reports 
prepared on an accrual basis, outlays are the sum of cash disbursements 
for direct charges for goods and services, the amount of indirect 
expense incurred, the value of in-kind contributions applied, and the 
net increase (or decrease) in the amounts owed by the recipient for 
goods and other property received, for services performed by employees, 
contractors, subrecipients and other payees and other amounts becoming 
owed under programs for which no current services or performance are 
required.
    Personal property means property of any kind except real property. 
It may be tangible, having physical existence, or intangible, having no 
physical existence, such as copyrights, patents, or securities.
    Prior approval means written approval by a contracting officer 
evidencing prior consent.
    Program income means gross income earned by the recipient that is 
directly generated by a supported activity or earned as a result of the 
award (see exclusions in Secs. 600.124 (e) and (h)). Program income 
includes, but is not limited to, income from fees for services 
performed, the use or rental of real or personal property acquired under 
federally-funded projects, the sale of commodities or items fabricated 
under an award, license fees and royalties on patents and copyrights, 
and interest on loans made with award funds. Interest earned on advances 
of DOE funds is not program income. Except as otherwise provided in this 
subpart, program regulations, or the terms and conditions of the award, 
program income does not include the receipt of principal on loans, 
rebates, credits, discounts, etc., or interest earned on any of them.
    Project costs means all allowable costs, as set forth in the 
applicable Federal cost principles, incurred by a recipient and the 
value of the contributions made by third parties in accomplishing the 
objectives of the award during the project period.
    Project period means the period established in the award document 
during which DOE sponsorship begins and ends.
    Property means, unless otherwise stated, real property, equipment, 
intangible property and debt instruments.
    Real property means land, including land improvements, structures 
and appurtenances thereto, but excludes movable machinery and equipment.
    Recipient means an organization receiving financial assistance 
directly from DOE to carry out a project or program. The term includes 
public and private institutions of higher education, public and private 
hospitals, and other quasi-public and private non-profit organizations 
such as, but not limited to, community action agencies, research 
institutes, educational associations, and health centers. The term shall 
include commercial organizations which are recipients, subrecipients, or 
contractors or subcontractors of recipients or subrecipients. The term 
does not include government-owned contractor-operated facilities or 
research centers providing continued support for mission-oriented, 
large-scale programs that are government-owned or controlled, or are 
designated as federally-funded research and development centers.

[[Page 103]]

    Research and development means all research activities, both basic 
and applied, and all development activities that are supported at 
universities, colleges, and other non-profit institutions. ``Research'' 
is defined as a systematic study directed toward fuller scientific 
knowledge or understanding of the subject studied. ``Development'' is 
the systematic use of knowledge and understanding gained from research 
directed toward the production of useful materials, devices, systems, or 
methods, including design and development of prototypes and processes. 
The term research also includes activities involving the training of 
individuals in research techniques where such activities utilize the 
same facilities as other research and development activities and where 
such activities are not included in the instruction function.
    Small award means a grant or cooperative agreement not exceeding the 
small purchase threshold fixed at 41 U.S.C. 403(11) (currently $25,000).
    Subaward means an award of financial assistance in the form of 
money, or property in lieu of money, made under an award by a recipient 
to an eligible subrecipient or by a subrecipient to a lower tier 
subrecipient. The term includes financial assistance when provided by 
any legal agreement, even if the agreement is called a contract, but 
does not include procurement of goods and services nor does it include 
any form of assistance which is excluded from the definition of 
``award'' above.
    Subrecipient means the legal entity to which a subaward is made and 
which is accountable to the recipient for the use of the funds provided. 
The term may include foreign or international organizations (such as 
agencies of the United Nations).
    Supplies means all personal property excluding equipment, intangible 
property, and debt instruments as defined in this section, and 
inventions of a contractor conceived or first actually reduced to 
practice in the performance of work under a funding agreement (``subject 
inventions''), as defined in 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts, and Cooperative Agreements.''
    Suspension means an action by DOE that temporarily withdraws DOE 
sponsorship under an award, pending corrective action by the recipient 
or pending a decision to terminate the award by the DOE. Suspension of 
an award is a separate action from suspension under DOE regulations 
implementing E.O.'s 12549 and 12689, ``Debarment and Suspension'' (see 
10 CFR part 1036).
    Termination means the cancellation of DOE sponsorship, in whole or 
in part, under an agreement at any time prior to the date of completion.
    Third party in-kind contributions means the value of non-cash 
contributions provided by non-Federal third parties. Third party in-kind 
contributions may be in the form of real property, equipment, supplies 
and other expendable property, and the value of goods and services 
directly benefiting and specifically identifiable to the project or 
program.
    Unliquidated obligations, for financial reports prepared on a cash 
basis, means the amount of obligations incurred by the recipient that 
have not been paid. For reports prepared on an accrued expenditure 
basis, they represent the amount of obligations incurred by the 
recipient for which an outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by DOE 
that has not been obligated by the recipient and is determined by 
deducting the cumulative obligations from the cumulative funds 
authorized.
    Unrecovered indirect cost means the difference between the amount 
awarded and the amount which could have been awarded under the 
recipient's approved negotiated indirect cost rate.
    Working capital advance means a procedure whereby funds are advanced 
to the recipient to cover its estimated disbursement needs for a given 
initial period.



Sec. 600.102  Effect on other issuances.

    For awards subject to this subpart, all administrative requirements 
of codified program regulations, program manuals, handbooks and other 
nonregulatory materials which are inconsistent with the requirements of 
this subpart shall be superseded, except to

[[Page 104]]

the extent they are required by statute, or authorized in accordance 
with the deviations provision in Sec. 600.4.



Sec. 600.103  Deviations.

    The deviation provisions of Sec. 600.4 apply to this subpart.



Sec. 600.104  Subawards.

    Unless sections of this subpart specifically exclude subrecipients 
from coverage, all DOE recipients, including State, local and Indian 
tribal governments, shall apply the provisions of this subpart to 
subrecipients performing work under awards if such subrecipients are 
institutions of higher education, hospitals, other non-profit 
organizations or commercial organizations. Thus, this subpart is 
applicable to those types of organizations regardless of the type of 
recipient receiving the primary award. State and local government 
subrecipients are subject to the provisions of 10 CFR part 600, subpart 
C, ``Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments.''

                         Pre-Award Requirements



Sec. 600.110  Purpose.

    Sections 600.111 through 600.117 prescribe forms and instructions 
and other pre-award matters to be used in applying for DOE awards.



Sec. 600.111  Pre-award policies.

    (a) Use of Grants and Cooperative Agreements, and Contracts. In each 
instance, the DOE shall decide on the appropriate award instrument 
(i.e., grant, cooperative agreement, or contract). The Federal Grant and 
Cooperative Agreement Act (31 U.S.C. 6301-08) governs the use of grants, 
cooperative agreements and contracts. A grant or cooperative agreement 
shall be used only when the principal purpose of a transaction is to 
accomplish a public purpose of support or stimulation authorized by 
Federal statute. The statutory criterion for choosing between grants and 
cooperative agreements is that for the latter, ``substantial involvement 
is expected between the executive agency and the State, local 
government, or other recipient when carrying out the activity 
contemplated in the agreement.'' Contracts shall be used when the 
principal purpose is acquisition of property or services for the direct 
benefit or use of the Federal Government.
    (b) Public Notice and Priority Setting. DOE will, whenever 
practical, notify the public of its intended funding priorities for 
discretionary grant programs, unless funding priorities are established 
by Federal statute.



Sec. 600.112  Forms for applying for Federal assistance.

    (a) General. An application for an award shall be on the form or in 
the format specified in a program rule, in the solicitation, or in these 
regulations (see Sec. 600.10). When the SF-424 form is not used, DOE 
shall indicate whether the application is subject to review by the State 
under E.O. 12372. DOE may also require applicants to complete--
    (1) The Notice of Energy RD&D Project (DOE Form 538) if the 
application is for a research, development, or demonstration project; or
    (2) The Federal Assistance Management Summary Report (DOE F 4600.5) 
or the Federal Assistance Milestone Plan (DOE F 4600.3) as a baseline 
plan in accordance with the terms and conditions of award if required by 
program rule or the solicitation. If a solicitation other than a program 
rule requires the use of one or both of these forms, the solicitation 
shall contain an explanation of how the information to be provided 
relates to the objectives of the program.
    (b) Budgetary information. DOE may request and the applicant shall 
submit the minimum budgetary information necessary to evaluate the costs 
of the proposed project.
    (1) Applicants for research awards, other than State, local, or 
Indian tribal governments, will use DOE budget forms ERF 4620.1 and ERF 
4620.1A. All other applicants shall use the budget formats established 
in the solicitation or program regulations.
    (2) DOE may, subsequent to receipt of an application, request 
additional information from an applicant when necessary for 
clarification or to make informed preaward determinations.

[[Page 105]]

    (c) Continuation and renewal applications. DOE may require that an 
application for a continuation or renewal award (see Sec. 600.26 (b) and 
(c)) be made in the format or on the forms authorized by paragraphs (a) 
and (b) of this section.
[59 FR 53266, Oct. 21, 1994, as amended at 61 FR 7165, Feb. 26, 1996]



Sec. 600.113  Debarment and suspension.

    Recipients shall comply with the nonprocurement debarment and 
suspension common rule implementing E.O.'s 12549 and 12689, ``Debarment 
and Suspension,'' 10 CFR part 1036. This common rule restricts subawards 
and contracts with certain parties that are debarred, suspended or 
otherwise excluded from or ineligible for participation in Federal 
assistance programs or activities.



Sec. 600.114  Special award conditions.

    (a) If an applicant or recipient has a history of poor performance, 
is not financially stable, has a management system that does not meet 
the standards prescribed in this subpart, has not conformed to the terms 
and conditions of a previous award, or is not otherwise responsible, DOE 
may impose additional requirements as needed, without regard to the 
deviation provisions of Sec. 600.4. Such applicant or recipient will be 
notified in writing as to the nature of the additional requirements, the 
reason why the additional requirements are being imposed, the nature of 
the corrective action needed, and the time allowed for completing the 
corrective actions. Reconsideration of the additional requirements may 
be requested at any time. Any special conditions shall be promptly 
removed once the conditions that prompted them have been corrected.
    (b) A recipient may place a special restrictive condition, as 
specified in paragraph (a) of this section, in a subaward. In any such 
case, the recipient must notify DOE in writing within 15 days of the 
subaward. DOE shall decide whether to notify OMB and other interested 
parties.



Sec. 600.115  Metric system of measurement.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce. The Act 
requires each Federal agency to establish a date or dates in 
consultation with the Secretary of Commerce, when the metric system of 
measurement will be used in the agency's procurements, grants, and other 
business-related activities. Metric implementation may take longer where 
the use of the system is initially impractical or likely to cause 
significant inefficiencies in the accomplishment of federally-funded 
activities. DOE will follow the provisions of E.O. 12770, ``Metric Usage 
in Federal Government Programs.''



Sec. 600.116  Resource Conservation and Recovery Act.

    Under the Act (Pub. L. 94-580 codified at 42 U.S.C. 6962), any State 
agency or agency of a political subdivision of a State which is using 
appropriated Federal funds must comply with section 6002. Section 6002 
requires that preference be given in procurement programs to the 
purchase of specific products containing recycled materials identified 
in guidelines developed by the Environmental Protection Agency (EPA) (40 
CFR parts 247-254). Accordingly, State and local institutions of higher 
education, hospitals, and non-profit organizations that receive direct 
Federal awards or other Federal funds shall give preference in their 
procurement programs funded with Federal funds to the purchase of 
recycled products pursuant to the EPA guidelines.



Sec. 600.117  Certifications and representations.

    Unless prohibited by statute or codified regulation, each Federal 
awarding agency is authorized and encouraged to allow recipients to 
submit certifications and representations required by statute, executive 
order, or regulation on an annual basis, if the recipients have ongoing 
and continuing relationships with the agency. Annual certifications and 
representations shall be signed by responsible officials with the

[[Page 106]]

authority to ensure recipients' compliance with the pertinent 
requirements.

                         Post-Award Requirements

                    Financial and Program Management



Sec. 600.120  Purpose of financial and program management.

    Sections 600.121 through 600.128 prescribe standards for financial 
management systems, methods for making payments and rules for satisfying 
cost sharing and matching requirements, accounting for program income, 
budget revision approvals, making audits, determining allowability of 
cost, and establishing fund availability.



Sec. 600.121  Standards for financial management systems.

    (a) Recipients shall relate financial data to performance data and 
develop unit cost information whenever practical. For awards that 
support research, it should be noted that it is generally not 
appropriate to develop unit cost information.
    (b) Except for the provisions of 600.121(f) and 600.181, recipients' 
financial management systems shall provide for the following:
    (1) Accurate, current and complete disclosure of the financial 
results of each federally-sponsored project or program in accordance 
with the reporting requirements set forth in Sec. 600.152. If a DOE 
award requires reporting on an accrual basis from a recipient that 
maintains its records on other than an accrual basis, the recipient 
shall not be required to establish an accrual accounting system. These 
recipients may develop such accrual data for their reports on the basis 
of an analysis of the documentation on hand.
    (2) Records that identify adequately the source and application of 
funds for federally-sponsored activities. These records shall contain 
information pertaining to Federal awards, authorizations, obligations, 
unobligated balances, assets, outlays, income and interest.
    (3) Effective control over and accountability for all funds, 
property and other assets. Recipients shall adequately safeguard all 
such assets and assure they are used solely for authorized purposes.
    (4) Comparison of outlays with budget amounts for each award. 
Whenever appropriate, financial information should be related to 
performance and unit cost data. As discussed in paragraph (a) of this 
section, unit cost data is generally not appropriate for awards that 
support research.
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the 
issuance or redemption of checks, warrants or payments by other means 
for program purposes by the recipient. To the extent that the provisions 
of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, 
payment methods of State agencies, instrumentalities, and fiscal agents 
shall be consistent with CMIA Treasury-State Agreements or the CMIA 
default procedures codified at 31 CFR part 205, ``Withdrawal of Cash 
from the Treasury for Advances under Federal Grant and Other Programs.''
    (6) Written procedures for determining the reasonableness, 
allocability and allowability of costs in accordance with the provisions 
of the applicable Federal cost principles and the terms and conditions 
of the award.
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (c) Where the Federal Government guarantees or insures the repayment 
of money borrowed by the recipient, the Contracting Officer, at his or 
her discretion, may require adequate bonding and insurance if the 
bonding and insurance requirements of the recipient are not deemed 
adequate to protect the interest of the Federal Government.
    (d) The Contracting Officer may require adequate fidelity bond 
coverage where the recipient lacks sufficient coverage to protect the 
Federal Government's interest.
    (e) Where bonds are required in the situations described in 
Secs. 600.121 (c) and (d), the bonds shall be obtained from companies 
holding certificates of authority as acceptable sureties, as prescribed 
in 31 CFR part 223, ``Surety Companies Doing Business with the United 
States.''
    (f) Individuals whose financial management systems do not meet the 
minimum standards of Sec. 600.121 (b) shall

[[Page 107]]

maintain a separate bank account for deposit of award or subaward funds. 
Disbursements by the recipient or subrecipient from this account shall 
be supported by source documentation such as canceled checks, paid 
bills, receipts, payrolls, etc.



Sec. 600.122  Payment.

    (a) Payment methods shall minimize the time elapsing between the 
transfer of funds from the United States Treasury and the issuance or 
redemption of checks, warrants, or payment by other means by the 
recipients. Payment methods of State agencies or instrumentalities shall 
be consistent with Treasury-State CMIA agreements or default procedures 
codified at 31 CFR part 205.
    (b) Recipients will be paid in advance, provided they maintain or 
demonstrate the willingness to maintain:
    (1) Written procedures that minimize the time elapsing between the 
transfer of funds and disbursement by the recipient, and
    (2) Financial management systems that meet the standards for fund 
control and accountability as established in Sec. 600.121. Cash advances 
to a recipient organization shall be limited to the minimum amounts 
needed and be timed to be in accordance with the actual, immediate cash 
requirements of the recipient organization in carrying out the purpose 
of the approved program or project. The timing and amount of cash 
advances shall be as close as is administratively feasible to the actual 
disbursements by the recipient organization for direct program or 
project costs and the proportionate share of any allowable indirect 
costs.
    (c) Whenever possible, advances shall be consolidated to cover 
anticipated cash needs for all awards made by the DOE to the recipient.
    (1) Advance payment mechanisms include, but are not limited to, 
Treasury check and electronic funds transfer.
    (2) Advance payment mechanisms are subject to 31 CFR part 205.
    (3) Recipients may submit requests for advances and reimbursements 
at least monthly when electronic fund transfers are not used.
    (d) Requests for Treasury check advance payment shall be submitted 
on SF-270, ``Request for Advance or Reimbursement,'' or other forms as 
may be authorized by OMB. This form is not to be used when Treasury 
check advance payments are made to the recipient automatically through 
the use of a predetermined payment schedule or if precluded by special 
DOE instructions for electronic funds transfer.
    (e) Reimbursement is the preferred method when the requirements in 
paragraph (b) of this section cannot be met. DOE may also use this 
method on any construction agreement, or if the major portion of the 
construction project is accomplished through private market financing or 
Federal loans, and the Federal assistance constitutes a minor portion of 
the project.
    (1) When the reimbursement method is used, DOE shall make payment 
within 30 days after receipt of the billing, unless the billing is 
improper.
    (2) Recipients are authorized to submit requests for reimbursement 
at least monthly when electronic funds transfers are not used.
    (f) If a recipient cannot meet the criteria for advance payments and 
DOE has determined that reimbursement is not feasible because the 
recipient lacks sufficient working capital, DOE may provide cash on a 
working capital advance basis. Under this procedure, DOE advances cash 
to the recipient to cover its estimated disbursement needs for an 
initial period generally geared to the recipient's disbursing cycle. 
Thereafter, DOE reimburses the recipient for its actual cash 
disbursements. The working capital advance method of payment will not be 
used for recipients unwilling or unable to provide timely advances to 
their subrecipient to meet the subrecipient's actual cash disbursements.
    (g) To the extent available, recipients shall disburse funds 
available from repayments to and interest earned on a revolving fund, 
program income, rebates, refunds, contract settlements, audit recoveries 
and interest earned on such funds before requesting additional cash 
payments.
    (h) Unless otherwise required by statute, DOE will not withhold 
payments for proper charges made by recipients at any time during the 
project period

[[Page 108]]

unless paragraph (h)(1) or (h)(2) of this section apply.
    (1) A recipient has failed to comply with the project objectives, 
the terms and conditions of the award, or DOE reporting requirements.
    (2) The recipient or subrecipient is delinquent in a debt to the 
United States. Under such conditions, the Federal awarding agency may, 
upon reasonable notice, inform the recipient that payments shall not be 
made for obligations incurred after a specified date until the 
conditions are corrected or the indebtedness to the Federal Government 
is liquidated. Before withholding any payment, DOE shall notify the 
recipient that payments shall not be made for obligations incurred after 
a specified date, which shall ordinarily be no sooner than 30 days from 
the date of the notice, until the recipient corrects the noncompliance 
or pays the indebtedness to the Federal government.
    (i) Standards governing the use of banks and other institutions as 
depositories of funds advanced under awards are as follows.
    (1) Except for situations described in paragraph (i)(2) of this 
section, DOE shall not require separate depository accounts for funds 
provided to a recipient or establish any eligibility requirements for 
depositories for funds provided to a recipient. However, recipients must 
be able to account for the receipt, obligation and expenditure of funds.
    (2) Advances of Federal funds shall be deposited and maintained in 
insured accounts whenever possible.
    (j) Consistent with the national goal of expanding the opportunities 
for women-owned and minority-owned business enterprises, recipients are 
encouraged to use women-owned and minority-owned banks (a bank which is 
owned at least 50 percent by women or minority group members).
    (k) Recipients shall maintain advances of Federal funds in interest 
bearing accounts, unless paragraph (k) (1), (2) or (3) of this section 
apply.
    (1) The recipient receives less than $120,000 in Federal awards per 
year.
    (2) The best reasonably available interest bearing account would not 
be expected to earn interest in excess of $250 per year on Federal cash 
balances.
    (3) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (l) For those entities where CMIA and its implementing regulations 
do not apply, interest earned on Federal advances deposited in interest 
bearing accounts shall be remitted annually to the HHS Payment 
Management System through an electronic medium such as the FEDWIRE 
Deposit system. Recipients which do not have this capability should use 
a check. The address is the Department of Health and Human Services, 
Payment Management System, P.O. Box 6021, Rockville, MD 20852. Interest 
amounts up to $250 per year may be retained by the recipient for 
administrative expense. State universities and hospitals shall comply 
with CMIA, as it pertains to interest. If an entity subject to CMIA uses 
its own funds to pay pre-award costs for discretionary awards without 
prior written approval from the Federal awarding agency, it waives its 
right to recover the interest under CMIA.
    (m) Except as noted elsewhere in this subpart, only the following 
forms shall be authorized for the recipients in requesting advances and 
reimbursements. Federal agencies shall not require more than an original 
and two copies of these forms.
    (1) SF-270, Request for Advance or Reimbursement. Each Federal 
awarding agency shall adopt the SF-270 as a standard form for all 
nonconstruction programs when electronic funds transfer or predetermined 
advance methods are not used. Federal awarding agencies, however, have 
the option of using this form for construction programs in lieu of the 
SF-271, ``Outlay Report and Request for Reimbursement for Construction 
Programs.''
    (2) SF-271, Outlay Report and Request for Reimbursement for 
Construction Programs. Each Federal awarding agency shall adopt the SF-
271 as the standard form to be used for requesting reimbursement for 
construction programs. However, a Federal awarding agency may substitute 
the SF-270 when the Federal awarding agency determines that it provides 
adequate information to meet Federal needs.

[[Page 109]]

    (n) The DOE may convert a recipient from advance payment to 
reimbursement whenever the recipient no longer meets the criteria for 
advance payment specified in paragraph (b) of this section. Any such 
conversion may be accomplished only after the DOE has advised the 
recipient in writing of the reasons for the proposed action and has 
provided a period of at least 30 days within which the recipient may 
take corrective action or provide satisfactory assurances of its 
intention to take such action.
    (o) With prior DOE approval and in accordance with written DOE 
instructions, a recipient may assign to a bank, trust company or other 
financing institution, including any Federal lending agency, 
reimbursement by Treasury check due from DOE under the following 
conditions:
    (1) The award provides for reimbursement totaling $1,000 or more;
    (2) The assignment covers all amounts payable under the award that 
have not already been paid;
    (3) Reassignment is prohibited; and
    (4) The assignee files a written notice of award payment assignment 
and a true copy of the instrument of assignment with DOE. Any interest 
costs resulting from a loan obtained on the basis of an assignment are 
unallowable charges to DOE award funds or any required cost sharing.
    (p) Recipients shall observe the requirements of this section in 
making or withholding payments to subrecipients except that the forms 
used by recipients are not required to be used by subrecipients when 
requesting advances or reimbursement.



Sec. 600.123  Cost sharing or matching.

    (a) All cost sharing or matching contributions, including cash and 
third party in-kind, shall meet all of the following criteria.
    (1) Are verifiable from the recipient's records.
    (2) Are not included as contributions for any other federally-
assisted project or program.
    (3) Are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) Are allowable under the applicable cost principles.
    (5) Are not paid by the Federal Government under another award, 
except where authorized by Federal statute to be used for cost sharing 
or matching.
    (6) Are provided for in the approved budget.
    (7) Conform to other provisions of this subpart, as applicable.
    (b) Unrecovered indirect costs may be included as part of cost 
sharing or matching.
    (c) Values for recipient contributions of services and property 
shall be established in accordance with the applicable cost principles. 
If DOE authorizes recipients to donate buildings or land for 
construction/facilities acquisition projects or long-term use, the value 
of the donated property for cost sharing or matching shall be the lesser 
of either paragraph (c)(1) or (2) of this section.
    (1) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation.
    (2) The current fair market value. However, when there is sufficient 
justification, DOE may approve the use of the current fair market value 
of the donated property, even if it exceeds the certified value at the 
time of donation to the project.
    (d) Volunteer services furnished by professional and technical 
personnel, consultants, and other skilled and unskilled labor may be 
counted as cost sharing or matching if the service is an integral and 
necessary part of an approved project or program. Rates for volunteer 
services shall be consistent with those paid for similar work in the 
recipient's organization. In those instances in which the required 
skills are not found in the recipient organization, rates shall be 
consistent with those paid for similar work in the labor market in which 
the recipient competes for the kind of services involved. In either 
case, paid fringe benefits that are reasonable, allowable, and allocable 
may be included in the valuation.
    (e) When an employer other than the recipient furnishes the services 
of an employee, these services shall be valued at the employee's regular 
rate of pay (plus an amount of fringe benefits that are reasonable, 
allowable, and allocable, but exclusive of overhead

[[Page 110]]

costs), provided these services are in the same skill for which the 
employee is normally paid.
    (f) Donated supplies may include such items as office supplies, 
laboratory supplies or workshop and classroom supplies. Value assessed 
to donated supplies included in the cost sharing or matching share shall 
be reasonable and shall not exceed the fair market value of the property 
at the time of the donation.
    (g) The method used for determining cost sharing or matching for 
donated equipment, buildings and land for which title passes to the 
recipient may differ according to the purpose of the award, if either 
paragraph (g)(1) or (2) of this section apply.
    (1) If the purpose of the award is to assist the recipient in the 
acquisition of equipment, buildings or land, the total value of the 
donated property may be claimed as cost sharing or matching.
    (2) If the purpose of the award is to support activities that 
require the use of equipment, buildings or land, normally only 
depreciation or use charges for equipment and buildings may be made. 
However, the full value of equipment or other capital assets and fair 
rental charges for land may be allowed, provided that DOE has approved 
the charges.
    (h) The value of donated property shall be determined in accordance 
with the usual accounting policies of the recipient, with the following 
qualifications.
    (1) The value of donated land and buildings shall not exceed its 
fair market value at the time of donation to the recipient as 
established by an independent appraiser (e.g., certified real property 
appraiser or General Services Administration representative) and 
certified by a responsible official of the recipient.
    (2) The value of donated equipment shall not exceed the fair market 
value of equipment of the same age and condition at the time of 
donation.
    (3) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.
    (4) The value of loaned equipment shall not exceed its fair rental 
value.
    (i) The following requirements pertain to the recipient's supporting 
records for in-kind contributions from third parties.
    (1) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (2) The basis for determining the valuation for personal service, 
material, equipment, buildings and land shall be documented.
    (j) DOE shall specify in the solicitation or in the program rule, if 
any, any cost sharing requirement. The award document shall be specific 
as to whether the cost sharing is based on a minimum amount for the 
recipient or on a percentage of total costs.
    (k) If DOE requires that a recipient provide cost sharing which is 
not required by statute or which exceeds a statutory minimum, DOE shall 
state in the program rule or solicitation the reasons for requiring such 
cost sharing, recommended or required levels of cost sharing, and the 
circumstances under which the requirement for cost sharing may be waived 
or adjusted during any negotiation.
    (l) Whenever DOE negotiates the amount of cost sharing, DOE may take 
into account such factors as the use of program income (see 
Sec. 600.124), patent rights, and rights in data. Foregone fee or profit 
shall not be considered in establishing the extent of cost sharing.



Sec. 600.124  Program income.

    (a) The standards set forth in this section shall be used to account 
for program income related to projects financed in whole or in part with 
DOE funds.
    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period shall be retained by the 
recipient and, in accordance with program regulations or the terms and 
conditions of the award, shall be used in one or more of the following 
ways.
    (1) Added to funds committed to the project and used to further 
eligible project objectives.
    (2) Used to finance the non-DOE share of the project.

[[Page 111]]

    (3) Deducted from the total project allowable cost in determining 
the net allowable costs on which the share of costs is based.
    (c) When DOE authorizes the disposition of program income as 
described in paragraphs (b)(1) or (b)(2) of this section, program income 
in excess of any limits stipulated shall be used in accordance with 
paragraph (b)(3) of this section.
    (d) In the event that the program regulations or the terms and 
conditions of the award do not specify how program income is to be used, 
paragraph (b)(3) of this section shall apply automatically to all 
projects or programs except research. For awards that support research, 
paragraph (b)(1) of this section shall apply automatically unless the 
award indicates another alternative in the terms and conditions, the 
recipient is subject to special award conditions, as indicated in 
Sec. 600.114, or the recipient is a commercial organization.
    (e) Unless program regulations or the terms and conditions of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government regarding program income earned after the end of the 
project period.
    (f) Unless program regulations or the terms and conditions of the 
award provide otherwise, costs incident to the generation of program 
income may be deducted from gross income to determine program income, 
provided these costs have not been charged to the award.
    (g) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (See 
Secs. 600.130 through 600.137).
    (h) Unless program regulations or the terms and condition of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government with respect to program income earned from license 
fees and royalties for copyrighted material, patents, patent 
applications, trademarks, and inventions produced under an award. 
However, Patent and Trademark Amendments (35 U.S.C. Chapter 18) apply to 
inventions made under an experimental, developmental, or research award.



Sec. 600.125  Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It includes the sum of the 
Federal and non-Federal share when there are cost sharing requirements. 
It shall be related to performance for program evaluation purposes 
whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) For nonconstruction awards, recipients shall request prior 
approvals from the DOE for one or more of the following program or 
budget related reasons.
    (1) Change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).
    (2) Change in a key person specified in the application or award 
document.
    (3) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (4) The need for additional Federal funding.
    (5) If required by program regulations, the transfer of amounts 
budgeted for indirect costs to absorb increases in direct costs, or vice 
versa.
    (6) The inclusion, unless waived by program regulations or the terms 
and conditions of award, of costs that require prior approval in 
accordance with OMB Circular A-21, ``Cost Principles for Institutions of 
Higher Education,'' OMB Circular A-122, ``Cost Principles for Non-Profit 
Organizations,'' or 45 CFR part 74 Appendix E, ``Principles for 
Determining Costs Applicable to Research and Development under Grants 
and Contracts with Hospitals,'' or 48 CFR part 31, ``Contract Cost 
Principles and Procedures,'' as applicable.
    (7) The transfer of funds allotted for training allowances (direct 
payment to trainees) to other categories of expense.
    (8) Unless described in the application and funded in the approved 
awards, the subaward, transfer or contracting out of any work under an

[[Page 112]]

award. This provision does not apply to the purchase of supplies, 
material, equipment or general support services.
    (d) No other prior approval requirements for specific items may be 
imposed unless a deviation has been approved in accordance with 
Sec. 600.4.
    (e) Except for requirements listed in paragraphs (c)(1) and (c)(4) 
of this section, program regulations may waive cost-related and 
administrative prior written approvals required by this subpart and its 
Appendices. Such waivers may include authorizing recipients to do any 
one or more of the following.
    (1) Incur pre-award costs 90 calendar days prior to award without 
prior approval or more than 90 calendar days with the prior approval of 
DOE. All pre-award costs are incurred at the recipient's risk (i.e., DOE 
is under no obligation to reimburse such costs if for any reason the 
recipient does not receive an award or if the award is less than 
anticipated and inadequate to cover such costs).
    (2) Initiate a one-time extension of the expiration date of the 
final budget period of the project of up to 12 months unless one or more 
of the following conditions apply.
    (i) The terms and conditions of award prohibit the extension.
    (ii) The extension requires additional Federal funds.
    (iii) The extension involves any change in the approved objectives 
or scope of the project.
    (iv) The extension is being exercised merely for the purpose of 
using unobligated balances. For one-time extensions, the recipient must 
notify the DOE in writing with the supporting reasons and revised 
expiration date at least 10 days before the expiration date specified in 
the award.
    (3) Carry forward unobligated balances to subsequent funding 
periods.
    (4) For awards that support research, unless the terms and 
conditions of award provide otherwise, the prior approval requirements 
described in paragraph (e) of this section are automatically waived 
(i.e., recipients need not obtain such prior approvals) unless one of 
the conditions included in Sec. 600.125(e)(2) applies.
    (5) For continuation awards within a multiple year project in 
support of research, prior to receipt of continuation funding, preaward 
expenditures by recipients are not subject to the limitation or approval 
requirements of Sec. 600.125(e)(1). Nevertheless, incurrence by the 
recipient does not impose any obligation on DOE if a continuation award 
is not subsequently made, or if an award is made for a lesser amount 
than the recipient expected.
    (f) Program regulations may restrict the transfer of funds among 
direct cost categories or programs, functions and activities for awards 
in which DOE's share of the project exceeds $100,000 and the cumulative 
amount of such transfers exceeds or is expected to exceed 10 percent of 
the total budget as last approved by DOE. However, no program regulation 
shall permit a transfer that would cause any Federal appropriation or 
part thereof to be used for purposes other than those consistent with 
the original intent of the appropriation.
    (g) All other changes to nonconstruction budgets, except for the 
changes described in paragraph (j) of this section, do not require prior 
approval.
    (h) For construction awards, recipients shall request prior written 
approval promptly from the Contracting Officer for budget revisions 
whenever paragraph (h) (1), (2) or (3) of this section apply.
    (1) The revision results from changes in the scope or the objective 
of the project or program.
    (2) The need arises for additional Federal funds to complete the 
project.
    (3) A revision is desired which involves specific costs for which 
prior written approval requirements may be imposed consistent with 
applicable OMB cost principles listed in Sec. 600.127.
    (i) Except in accordance with the deviation procedures in 600.4 or 
as may be provided for in program regulations, no other prior approval 
requirements for specific items will be imposed by DOE.
    (j) When DOE makes an award that provides support for both 
construction and nonconstruction work, DOE may require the recipient to 
request prior approval from DOE before making any fund or budget 
transfers between the two types of work supported.
    (k) For both construction and nonconstruction awards, recipients 
shall

[[Page 113]]

notify DOE in writing promptly whenever the amount of Federal authorized 
funds is expected to exceed the needs of the recipient for the project 
period by more than $5000 or five percent of the Federal award, 
whichever is greater. This notification shall not be required if an 
application for additional funding is submitted for a continuation 
award.
    (l) Requests for budget revisions may be made by letter.
    (m) Within 30 calendar days from the date of receipt of the request 
for budget revisions, DOE shall review the request and notify the 
recipient whether the budget revisions have been approved. If the 
revision is still under consideration at the end of 30 calendar days, 
DOE shall inform the recipient in writing of the date when the recipient 
may expect the decision.
    (n) DOE approval or disapproval of a request for a budget or project 
revision shall be in writing and signed by a DOE Contracting Officer.
    (o) A request by a subrecipient for prior approval shall be 
addressed in writing to the recipient. The recipient shall promptly 
review such request and shall approve or disapprove the request in 
writing within 30 days from the date of the recipient's request for the 
revision. A recipient shall not approve any budget or project revision 
which is inconsistent with the purpose or terms and conditions of the 
DOE award. If the revision requested by the subrecipient would result in 
a change to the recipient's approved budget or approved project which 
requires DOE prior approval, the recipient shall obtain DOE approval 
before approving such revision.



Sec. 600.126  Non-Federal audits.

    (a) Recipients and subrecipients that are institutions of higher 
education or other non-profit organizations (including hospitals) shall 
be subject to the audit requirements contained in the Single Audit Act 
Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, 
``Audits of States, Local Governments, and Non-Profit Organizations.''
    (b) State and local governments shall be subject to the audit 
requirements contained in the Single Audit Act Amendments of 1996 (31 
U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of States, 
Local Governments, and Non-Profit Organizations.''
    (c) For-profit hospitals not covered by the audit provisions of 
revised OMB Circular A-133 shall be subject to the audit requirements of 
the Federal awarding agencies.
    (d) The Contracting Officer may audit, or cause to be audited, 
awards to commercial organizations whenever and in the degree of detail 
he/she deems necessary. The Contracting Officer shall rely on available 
audit reports in determining the need for and scope of such audits. The 
commercial organization has similar authority in auditing subrecipients.
    (e) The Contracting Officer may audit, or cause to be audited, 
awards to individuals whenever and in the degree of detail he/she deems 
necessary. The Contracting Officer shall rely on available audit reports 
in determining the need for and scope of such audits.
[59 FR 53266, Oct. 21, 1994, as amended at 62 FR 45939, 45940, Aug. 29, 
1997]



Sec. 600.127  Allowable costs.

    (a) General. For each kind of recipient, there is a set of Federal 
principles for determining allowable costs. Allowability of costs shall 
be determined in accordance with the cost principles applicable to the 
entity incurring the costs. Thus, allowability of costs incurred by 
State, local or federally-recognized Indian tribal governments is 
determined in accordance with the provisions of OMB Circular A-87, 
``Cost Principles for State and Local Governments.'' The allowability of 
costs incurred by non-profit organizations is determined in accordance 
with the provisions of OMB Circular A-122, ``Cost Principles for Non-
Profit Organizations.'' The allowability of costs incurred by 
institutions of higher education is determined in accordance with the 
provisions of OMB Circular A-21, ``Cost Principles for Educational 
Institutions.'' The allowability of costs incurred by hospitals is 
determined in accordance with the provisions of Appendix E of 45 CFR 
part 74, ``Principles for Determining Costs Applicable to Research and 
Development Under Grants and Contracts with Hospitals.'' The 
allowability of costs incurred by

[[Page 114]]

commercial organizations and those non-profit organizations listed in 
Attachment C to Circular A-122 is determined in accordance with the 
provisions of the Federal Acquisition Regulation (FAR) at 48 CFR part 
31.
    (b) Indirect costs. Unless restricted by Federal statute or program 
rule, DOE shall provide for the reimbursement of appropriate indirect 
costs.
    (1) DOE shall include an amount for indirect costs in an award only 
if the applicant requests reimbursement of such costs and--
    (i) Submits evidence that a cognizant Federal agency has been 
assigned to establish indirect cost rates for the applicant and 
indicates or provides evidence that--
    (A) A current agreement containing an applicable approved indirect 
cost rate(s) covering all or part of the budget period for which DOE may 
provide funding has been established; or
    (B) An indirect cost proposal has been submitted to the cognizant 
agency in order to establish an applicable approved indirect cost 
rate(s) covering all or part of the budget period for which DOE may 
provide funding; or
    (C) An indirect cost proposal covering all or part of the budget 
period and applicable to the activities for which DOE may provide 
funding will be submitted to the cognizant agency for approval no later 
than three months after the beginning date of the initial budget period 
of the DOE award or, for subsequent budget periods, in accordance with 
any schedule established by the cognizant agency; or
    (ii) If not assigned to a cognizant agency, the applicant includes, 
in the application, data that is current, complete, accurate, and 
sufficient to allow the Contracting Officer to determine a rate(s) for 
indirect costs. If the total approved budget will not exceed $100,000 or 
if the amount requested for indirect costs does not exceed $5,000, DOE 
may waive the requirement for negotiation of a rate and, in lieu 
thereof, provide a reasonable allowance for such costs.
    (2) Indirect cost proposals shall be prepared and submitted in 
accordance with the applicable Federal cost principles and instructions 
from the cognizant agency or from DOE, as appropriate.
    (3) If a subaward under an award or subaward provides for the 
payment of indirect costs, the recipient or subrecipient shall be 
responsible for negotiating appropriate indirect costs, using the cost 
principles applicable to the subrecipient or contractor, unless the 
subrecipient or contractor has negotiated an applicable rate directly 
with DOE or another Federal department or agency. DOE may review and 
audit the procedures a recipient or subrecipient uses in conducting 
indirect cost negotiations.
    (c) Fee or profit. No increment above cost may be paid to a 
recipient or subrecipient under a DOE award or subaward, except for SBIR 
recipients as provided in Sec. 600.181(d)(3). A fee or profit may be 
paid to a contractor providing goods or services under a contract with a 
recipient or subrecipient.



Sec. 600.128  Period of availability of funds.

    Where a funding period is specified, a recipient may charge to the 
award only allowable costs resulting from obligations incurred during 
the funding period and any pre-award costs authorized by DOE.

                           Property Standards



Sec. 600.130  Purpose of property standards.

    Sections 600.131 through 600.137 set forth uniform standards 
governing management and disposition of property furnished by the 
Federal Government or whose cost was charged to a project supported by a 
Federal award. Recipients shall observe these standards under awards and 
shall not impose additional requirements, unless specifically required 
by Federal statute or program regulations. The recipient may use its own 
property management standards and procedures provided it observes the 
provisions of Secs. 600.131 through 600.137.



Sec. 600.131  Insurance coverage.

    Recipients shall, at a minimum, provide the equivalent insurance 
coverage for real property and equipment acquired with DOE funds as 
provided to

[[Page 115]]

property owned by the recipient. Federally-owned property need not be 
insured unless required by the terms and conditions of the award.



Sec. 600.132  Real property.

    Unless otherwise provided by statute or program regulations, the 
requirements concerning the use and disposition of real property 
acquired in whole or in part under awards are as follows.
    (a) Title to real property shall vest in the recipient subject to 
the condition that the recipient shall use the real property for the 
authorized purpose of the project as long as it is needed and shall not 
encumber the property without approval of DOE.
    (b) The recipient shall obtain written approval by DOE for the use 
of real property in other federally-sponsored projects when the 
recipient determines that the property is no longer needed for the 
purpose of the original project. Use in other projects shall be limited 
to those under federally-sponsored projects (i.e., awards) or programs 
that have purposes consistent with those authorized for support by DOE.
    (c) When the real property is no longer needed as provided in 
paragraphs (a) and (b) of this section, the recipient shall request 
disposition instructions from DOE or its successor Federal awarding 
agency. DOE will give one or more of the following disposition 
instructions.
    (1) The recipient may be permitted to retain title without further 
obligation to the Federal Government after it compensates the Federal 
Government for that percentage of the current fair market value of the 
property attributable to the Federal participation in the project.
    (2) The recipient may be directed to sell the property under 
guidelines provided by DOE and pay the Federal Government for that 
percentage of the current fair market value of the property attributable 
to the Federal participation in the project (after deducting actual and 
reasonable selling and fix-up expenses, if any, from the sales 
proceeds). When the recipient is authorized or required to sell the 
property, proper sales procedures shall be established that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) The recipient may be directed to transfer title to the property 
to the Federal Government or to an eligible third party provided that, 
in such cases, the recipient shall be entitled to compensation for its 
attributable percentage of the current fair market value of the 
property.



Sec. 600.133  Federally-owned and exempt property.

    (a) Federally-owned property.
    (1) Title to federally-owned property remains vested in the Federal 
Government. Recipients shall submit annually an inventory listing of 
federally-owned property in their custody to DOE. Upon completion of the 
award or when the property is no longer needed, the recipient shall 
report the property to DOE for further Federal agency utilization.
    (2) If DOE has no further need for the property, it shall be 
declared excess and reported to the General Services Administration, 
unless DOE has statutory authority to dispose of the property by 
alternative methods (e.g., the authority provided by the Federal 
Technology Transfer Act (15 U.S.C. 3710 (i)) to donate research 
equipment to educational and non-profit organizations in accordance with 
E.O. 12821, ``Improving Mathematics and Science Education in Support of 
the National Education Goals.'') Appropriate instructions shall be 
issued to the recipient by DOE.
    (b) Exempt property. When statutory authority exists, DOE may vest 
title to property acquired with Federal funds in the recipient without 
further obligation to the Federal Government and under conditions DOE 
considers appropriate. For example, under 31 U.S.C. 6306, DOE may so 
vest title to tangible personal property under a grant or cooperative 
agreement for basic or applied research in a nonprofit institution of 
higher education or in a nonprofit organization whose primary purpose is 
conducting scientific research. Such property is ``exempt property.'' 
Program regulations or the terms and conditions of award may establish 
provisions for vesting title to exempt property. Should such conditions 
not be established and the recipient has no

[[Page 116]]

need for the equipment, the recipient shall request disposition 
instructions from DOE. If DOE does not issue disposition instructions 
within 120 calendar days of receipt of the request, title to the 
property shall vest in the recipient without further obligation to the 
Federal Government. If, at the end of the project, DOE fails to issue 
disposition instructions within 120 calendar days of the receipt of a 
final inventory, title to the property shall vest in the recipient 
without further obligation to the Federal Government.



Sec. 600.134  Equipment.

    (a) Title to equipment acquired by a recipient with Federal funds 
shall vest in the recipient, subject to conditions of this section.
    (b) The recipient shall not use equipment acquired with Federal 
funds to provide services to non-Federal outside organizations for a fee 
that is less than private companies charge for equivalent services, 
unless specifically authorized by Federal statute, for as long as the 
Federal Government retains an interest in the equipment.
    (c) The recipient shall use the equipment in the project or program 
for which it was acquired as long as needed, whether or not the project 
or program continues to be supported by Federal funds and shall not 
encumber the property without approval of DOE. When no longer needed for 
the original project or program, the recipient shall use the equipment 
in connection with its other federally-sponsored activities, in the 
following order of priority:
    (1) Activities sponsored by DOE, then
    (2) Activities sponsored by other Federal agencies.
    (d) During the time that equipment is used on the project or program 
for which it was acquired, the recipient shall make it available for use 
on other projects or programs if such other use will not interfere with 
the work on the project or program for which the equipment was 
originally acquired. First preference for such other use shall be given 
to other projects or programs sponsored by DOE that financed the 
equipment; second preference shall be given to projects or programs 
sponsored by other Federal awarding agencies. If the equipment is owned 
by the Federal Government, use on other activities not sponsored by the 
Federal Government shall be permissible if authorized by DOE. User 
charges shall be treated as program income.
    (e) When acquiring replacement equipment, the recipient may use the 
equipment to be replaced as trade-in or sell the equipment and use the 
proceeds to offset the costs of the replacement equipment subject to the 
approval of DOE.
    (f) The recipient's property management standards for equipment 
acquired with Federal funds and federally-owned equipment shall include 
all of the following.
    (1) Equipment records shall be maintained accurately and shall 
include the following information.
    (i) A description of the equipment.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or other identification number.
    (iii) Source of the equipment, including the award number.
    (iv) Whether title vests in the recipient or the Federal Government.
    (v) Acquisition date (or date received, if the equipment was 
furnished by the Federal Government) and cost.
    (vi) Information from which one can calculate the percentage of 
Federal participation in the cost of the equipment (not applicable to 
equipment furnished by the Federal Government).
    (vii) Location and condition of the equipment and the date the 
information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and sales 
price or the method used to determine current fair market value where a 
recipient compensates DOE for its share.
    (2) Equipment owned by the Federal Government shall be identified to 
indicate Federal ownership.
    (3) A physical inventory of equipment shall be taken and the results 
reconciled with the equipment records at least once every two years. Any 
differences between quantities determined by the physical inspection and 
those shown in the accounting records shall be investigated to determine 
the causes of the difference. The recipient

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shall, in connection with the inventory, verify the existence, current 
utilization, and continued need for the equipment.
    (4) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the equipment. Any loss, 
damage, or theft of equipment shall be investigated and fully 
documented; if the equipment was owned by the Federal Government, the 
recipient shall promptly notify DOE.
    (5) Adequate maintenance procedures shall be implemented to keep the 
equipment in good condition.
    (6) Where the recipient is authorized or required to sell the 
equipment, proper sales procedures shall be established which provide 
for competition to the extent practicable and result in the highest 
possible return.
    (g) When the recipient no longer needs the equipment, the equipment 
may be used for other activities in accordance with the following 
standards. Equipment with a current per-unit fair market value of less 
than $5000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency. For equipment with a current 
per unit fair market value of $5000 or more, the recipient may retain 
the equipment for other uses provided that compensation is made to the 
original Federal awarding agency or its successor. The amount of 
compensation shall be computed by applying the percentage of Federal 
participation in the cost of the original project or program to the 
current fair market value of the equipment. If the recipient has no need 
for the equipment, the recipient shall request disposition instructions 
from DOE. DOE shall determine whether the equipment can be used to meet 
DOE's requirements. If no requirement exists within DOE, the 
availability of the equipment shall be reported to the General Services 
Administration by DOE to determine whether a requirement for the 
equipment exists in other Federal agencies. DOE will issue instructions 
to the recipient no later than 120 calendar days after the recipient's 
request and the following procedures shall govern.
    (1) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the recipient's request, the recipient 
shall sell the equipment and reimburse DOE an amount computed by 
applying to the sales proceeds the percentage of Federal participation 
in the cost of the original project or program. However, the recipient 
shall be permitted to deduct and retain from the Federal share $500 or 
ten percent of the proceeds, whichever is less, for the recipient's 
selling and handling expenses.
    (2) If the recipient is instructed to ship the equipment elsewhere, 
the recipient shall be reimbursed by the Federal Government by an amount 
which is computed by applying the percentage of the recipient's 
participation in the cost of the original project or program to the 
current fair market value of the equipment, plus any reasonable shipping 
or interim storage costs incurred.
    (3) If the recipient is instructed to otherwise dispose of the 
equipment, the recipient shall be reimbursed by DOE for such costs 
incurred in its disposition.
    (h) DOE reserves the right, at the end of a project, to transfer the 
title to the Federal Government or to a third party named by DOE when 
such third party is otherwise eligible under existing statutes. Such 
transfer shall be subject to the following standards.
    (1) The equipment shall be appropriately identified in the award or 
otherwise made known to the recipient in writing.
    (2) DOE shall issue disposition instructions within 120 calendar 
days after receipt of a final inventory. The final inventory shall list 
all equipment acquired with award funds and federally-owned equipment. 
If DOE fails to issue disposition instructions within the 120 calendar 
day period, the provisions of Sec. 600.134(g)(1) apply.
    (3) When DOE exercises its right to take title, the equipment shall 
be subject to the provisions for federally-owned equipment.



Sec. 600.135  Supplies and other expendable property.

    (a) Title to supplies and other expendable property shall vest in 
the recipient upon acquisition. If there is a residual inventory of 
unused supplies exceeding $5000 in total aggregate

[[Page 118]]

value upon termination or completion of the project or program and the 
supplies are not needed for any other federally-sponsored project or 
program, the recipient shall retain the supplies for use on non-Federal 
sponsored activities or sell them, but shall, in either case, compensate 
the Federal Government for its share. The amount of compensation shall 
be computed in the same manner as for equipment.
    (b) The recipient shall not use supplies acquired with Federal funds 
to provide services to non-Federal outside organizations for a fee that 
is less than private companies charge for equivalent services, unless 
specifically authorized by Federal statute as long as the Federal 
Government retains an interest in the supplies.



Sec. 600.136  Intangible property.

    (a) Recipients that are institutions of higher education, hospitals, 
and other non-profit organizations are subject to the following:
    (1) The recipient may copyright any work that is subject to 
copyright and was developed, or for which ownership was purchased, under 
an award. DOE reserves a royalty-free, nonexclusive and irrevocable 
right to reproduce, publish or otherwise use the work for Federal 
purposes, and to authorize others to do so.
    (2) Recipients are subject to applicable regulations governing 
patents and inventions. (See 10 CFR 600.27)
    (3) DOE has the right to:
    (i) Obtain, reproduce, publish or otherwise use the data first 
produced under an award.
    (ii) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.
    (4) Title to intangible property and debt instruments acquired under 
an award or subaward vests upon acquisition in the recipient. The 
recipient shall use that property for the originally-authorized purpose, 
and the recipient shall not encumber the property without approval of 
DOE. When no longer needed for the originally authorized purpose, 
disposition of the intangible property shall occur in accordance with 
the provisions of Sec. 600.134(g).
    (b) Recipients that are commercial entities shall follow the 
provisions set forth at 10 CFR 600.27.
[61 FR 7165, Feb. 26, 1996]



Sec. 600.137  Property trust relationship.

    Real property, equipment, intangible property and debt instruments 
that are acquired or improved with Federal funds shall be held in trust 
by the recipient as trustee for the beneficiaries of the project or 
program under which the property was acquired or improved. Recipients 
shall record liens or other appropriate notices of record to indicate 
that personal or real property has been acquired or improved with 
Federal funds and that use and disposition conditions apply to the 
property.

                          Procurement Standards



Sec. 600.140  Purpose of procurement standards.

    Sections 600.141 through 600.148 set forth standards for use by 
recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with Federal funds. These standards are furnished to ensure 
that such materials and services are obtained in an effective manner and 
in compliance with the provisions of applicable Federal statutes and 
executive orders. No additional procurement standards or requirements 
shall be imposed by DOE upon recipients, unless specifically required by 
Federal statute or executive order or in accordance with the deviation 
procedures of Sec. 600.4.



Sec. 600.141  Recipient responsibilities.

    The standards contained in this section do not relieve the recipient 
of the contractual responsibilities arising under its contract(s). The 
recipient is the responsible authority, without recourse to DOE 
regarding the settlement and satisfaction of all contractual and 
administrative issues arising out of procurements entered into in 
support of an award or other agreement. This includes disputes, claims, 
protests of award, source evaluation or other matters of a contractual 
nature. Matters concerning violation of statute are to be referred to 
such Federal,

[[Page 119]]

State or local authority as may have proper jurisdiction.



Sec. 600.142  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and administration 
of contracts. No employee, officer, or agent shall participate in the 
selection, award, or administration of a contract supported by Federal 
funds if a real or apparent conflict of interest would be involved. Such 
a conflict would arise when the employee, officer, or agent, any member 
of his or her immediate family, his or her partner, or an organization 
which employs or is about to employ any of the parties indicated herein, 
has a financial or other interest in the firm selected for an award. The 
officers, employees, and agents of the recipient shall neither solicit 
nor accept gratuities, favors, or anything of monetary value from 
contractors, or parties to subagreements. However, recipients may set 
standards for situations in which the financial interest is not 
substantial or the gift is an unsolicited item of nominal value. The 
standards of conduct shall provide for disciplinary actions to be 
applied for violations of such standards by officers, employees, or 
agents of the recipient.



Sec. 600.143  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. The 
recipient shall be alert to organizational conflicts of interest as well 
as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall be excluded from competing for such procurements. 
Awards shall be made to the bidder or offeror whose bid or offer is 
responsive to the solicitation and is most advantageous to the 
recipient, price, quality and other factors considered. Solicitations 
shall clearly set forth all requirements that the bidder or offeror 
shall fulfill in order for the bid or offer to be evaluated by the 
recipient. Any and all bids or offers may be rejected when it is in the 
recipient's interest to do so.



Sec. 600.144  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide for, at a minimum, that paragraphs 
(a)(1), (2) and (3) of this section apply.
    (1) Recipients avoid purchasing unnecessary items.
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement.
    (3) Solicitations for goods and services provide for all of the 
following.
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements, such a description shall not contain features which unduly 
restrict competition.
    (ii) Requirements which the bidder/offeror must fulfill and all 
other factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical requirements 
in terms of functions to be performed or performance required, including 
the range of acceptable characteristics or minimum acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
businesses, minority-owned firms, and women's business enterprises, 
whenever possible. Recipients of DOE awards shall take all of the 
following steps to further this goal.

[[Page 120]]

    (1) Ensure that small businesses, minority-owned firms, and women's 
business enterprises are used to the fullest extent practicable.
    (2) Make information on forthcoming opportunities available and 
arrange time frames for purchases and contracts to encourage and 
facilitate participation by small businesses, minority-owned firms, and 
women's business enterprises.
    (3) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
    (4) Encourage contracting with consortiums of small businesses, 
minority wned firms and women's business enterprises when a contract is 
too large for one of these firms to handle individually.
    (5) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department of 
Commerce's Minority Business Development Agency in the solicitation and 
utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be appropriate 
for the particular procurement and for promoting the best interest of 
the program or project involved. The ``cost-plus-a-percentage-of-cost'' 
or ``percentage of construction cost'' methods of contracting shall not 
be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be given 
to such matters as contractor integrity, record of past performance, 
financial and technical resources or accessibility to other necessary 
resources. In certain circumstances, contracts with certain parties are 
restricted by DOE's implementation, in 10 CFR part 1036, of E.O.'s 12549 
and 12689, ``Debarment and Suspension.''
    (e) Recipients shall, on request, make available for DOE, pre-award 
review and procurement documents, such as request for proposals or 
invitations for bids, independent cost estimates, etc., when any of the 
following conditions apply.
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in this subpart.
    (2) The procurement is expected to exceed the small purchase 
threshold fixed at 41 U.S.C. 403 (11) (currently $25,000) and is to be 
awarded without competition or only one bid or offer is received in 
response to a solicitation.
    (3) The procurement, which is expected to exceed the small purchase 
threshold, specifies a ``brand name'' product.
    (4) The proposed award over the small purchase threshold is to be 
awarded to other than the apparent low bidder under a sealed bid 
procurement.
    (5) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the amount of the small 
purchase threshold.
    (f) By agreement of the recipient or subrecipient and the 
contractor, if consistent with the recipient's or subrecipient's usual 
business practices and applicable state and local law, any contract to 
which this section applies may provide for the payment of interest 
penalties on amounts overdue under such contract except that--
    (1) In no case shall any obligation to pay such interest penalties 
be construed to be an obligation of the Federal government, and
    (2) Any payment of such interest penalties may not be made from DOE 
funds nor be counted toward meeting a cost sharing requirement of a DOE 
award.



Sec. 600.145  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. Price 
analysis may be accomplished in various ways, including the comparison 
of price quotations submitted, market prices and similar indicia, 
together

[[Page 121]]

with discounts. Cost analysis is the review and evaluation of each 
element of cost to determine reasonableness, allocability and 
allowability.



Sec. 600.146  Procurement records.

    Procurement records and files for purchases in excess of the small 
purchase threshold shall include the following at a minimum:
    (a) Basis for contractor selection,
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained, and
    (c) Basis for award cost or price.



Sec. 600.147  Contract administration.

    A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.



Sec. 600.148  Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all contracts. 
The following provisions shall also be applied to subcontracts.
    (a) Contracts in excess of the small purchase threshold shall 
contain contractual provisions or conditions that allow for 
administrative, contractual, or legal remedies in instances in which a 
contractor violates or breaches the contract terms, and provide for such 
remedial actions as may be appropriate.
    (b) All contracts in excess of the small purchase threshold shall 
contain suitable provisions for termination by the recipient, including 
the manner by which termination shall be effected and the basis for 
settlement. In addition, such contracts shall describe conditions under 
which the contract may be terminated for default as well as conditions 
where the contract may be terminated because of circumstances beyond the 
control of the contractor.
    (c) Except as otherwise required by statute, an award that requires 
the contracting (or subcontracting) for construction or facility 
improvements shall provide for the recipient to follow its own 
requirements relating to bid guarantees, performance bonds, and payment 
bonds unless the construction contract or subcontract exceeds $100,000. 
For those contracts or subcontracts exceeding $100,000, DOE may accept 
the bonding policy and requirements of the recipient, provided the DOE 
has made a determination that the Federal Government's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows.
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder shall, upon acceptance 
of his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by statute of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (4) Where bonds are required in the situations described herein, the 
bonds shall be obtained from companies holding certificates of authority 
as acceptable sureties pursuant to 31 CFR part 223, ``Surety Companies 
Doing Business with the United States.''
    (d) All negotiated contracts (except those for less than the small 
purchase threshold) awarded by recipients shall include a provision to 
the effect that the recipient, DOE, the Comptroller General of the 
United States, or any of their duly authorized representatives, shall 
have access to any books, documents, papers and records of the 
contractor which are directly pertinent to a specific program for the 
purpose of

[[Page 122]]

making audits, examinations, excerpts and transcriptions.
    (e) All contracts, including small purchases, awarded by recipients 
and their contractors shall contain the procurement provisions of 
Appendix A to this subpart, as applicable.



Sec. 600.149  Resource Conservation and Recovery Act (RCRA).

    Recipients' procurements shall comply with applicable requirements 
of RCRA, as described at Sec. 600.116 of this subpart.

                           Reports and Records



Sec. 600.150  Purpose of reports and records.

    Sections 600.151 through 600.153 set forth the procedures for 
monitoring and reporting on the recipient's financial and program 
performance and the necessary standard reporting forms. They also set 
forth record retention requirements.



Sec. 600.151  Monitoring and reporting program performance.

    (a) Recipients are responsible for managing and monitoring each 
project, program, subaward, function or activity supported by the award. 
Recipients shall monitor subawards to ensure subrecipients have met the 
audit requirements as delineated in Sec. 600.126.
    (b) The terms and conditions of the award will prescribe the 
frequency with which the performance reports shall be submitted. Except 
as provided in paragraph (f) of this section, performance reports shall 
not be required more frequently than quarterly or less frequently than 
annually. Annual reports shall be due 90 calendar days after the award 
year; quarterly or semi-annual reports shall be due 30 days after the 
reporting period. DOE may require annual reports before the anniversary 
dates of multiple year awards in lieu of these requirements. The final 
performance reports are due 90 calendar days after the expiration or 
termination of the award.
    (c) If inappropriate, a final technical or performance report shall 
not be required after completion of the project.
    (d) When required, performance reports shall generally contain, for 
each award, brief information on each of the following.
    (1) A comparison of actual accomplishments with the goals and 
objectives established for the period, the findings of the investigator, 
or both. Whenever appropriate and the output of programs or projects can 
be readily quantified, such quantitative data should be related to cost 
data for computation of unit costs.
    (2) Reasons why established goals were not met, if appropriate.
    (3) Other pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.

DOE may specify in the award that the recipient provide this information 
on the Federal Assistance Program/Project Status Report (DOE F 4600.6), 
the technical reporting formats, or the Federal Assistance Management 
Summary Report. DOE may require that the Federal Assistance Management 
Summary Report be used as a performance report only when such use is 
authorized by program rule or the need for this form is explained in the 
solicitation. The requirements of this section concerning reporting 
frequency and deadlines shall apply to the Federal Assistance Management 
Summary Report. (See also Sec. 600.112 with regard to use of this form 
as part of the award application.)
    (e) Recipients shall not be required to submit more than the 
original and two copies of performance reports.
    (f) Recipients shall immediately notify DOE of developments that 
have a significant impact on the award-supported activities. Also, 
notification shall be given in the case of problems, delays, or adverse 
conditions which materially impair the ability to meet the objectives of 
the award. This notification shall include a statement of the action 
taken or contemplated, and any assistance needed to resolve the 
situation.
    (g) DOE may make site visits, as needed.
    (h) DOE shall comply with applicable clearance requirements of 5 CFR 
part 1320 when requesting performance data from recipients.
    (i) Recipients may place performance reporting requirements on 
subawards

[[Page 123]]

consistent with the provisions of this section and shall require interim 
reporting in accordance with Sec. 600.151(f).



Sec. 600.152  Financial reporting.

    (a) The following forms or such other forms as may be approved by 
OMB are authorized for obtaining financial information from recipients.
    (1) SF-269 or SF-269A, Financial Status Report.
    (i) Recipients shall use the SF-269 or SF-269A to report the status 
of funds for all nonconstruction projects or programs, except that DOE 
has the option of not requiring the SF-269 or SF-269A when the SF-270, 
Request for Advance or Reimbursement, or SF-272, Report of Federal Cash 
Transactions, is determined to provide adequate information to meet DOE 
needs. However, a final SF-269 or SF-269A shall be required at the 
completion of the project when the SF-270 is used only for advances.
    (ii) The terms and conditions of award shall prescribe whether the 
report shall be on a cash or accrual basis. DOE may require accrual 
reporting only if such reporting is required by program statute or rule. 
If the award requires accrual information and the recipient's accounting 
records are not normally kept on the accrual basis, the recipient shall 
not be required to convert its accounting system, but shall develop such 
accrual information through best estimates based on an analysis of the 
documentation on hand.
    (iii) DOE shall determine the frequency of the Financial Status 
Report for each project or program, considering the size and complexity 
of the particular project or program. However, the report shall not be 
required more frequently than quarterly or less frequently than 
annually. A final report shall be required at the completion of the 
agreement.
    (iv) DOE shall require recipients to submit the SF-269 or SF-269A 
(an original and no more than two copies) no later than 30 days after 
the end of each specified reporting period for quarterly and semi-annual 
reports, and 90 calendar days for annual and final reports. Extensions 
of reporting due dates may be approved by the DOE upon request of the 
recipient.
    (2) SF-272, Report of Federal Cash Transactions.
    (i) When funds are advanced, each recipient shall submit the SF-272 
and, when necessary, its continuation sheet, SF-272a. DOE will use this 
report to monitor cash advanced to recipients and to obtain disbursement 
information for each agreement with the recipients.
    (ii) Recipients shall forecast Federal cash requirements in the 
``Remarks'' section of the report.
    (iii) When practical and deemed necessary, DOE may require 
recipients to report in the ``Remarks'' section the amount of cash 
advances received in excess of three days. Recipients shall provide 
short narrative explanations of actions taken to reduce the excess 
balances.
    (iv) Recipients shall be required to submit not more than the 
original and two copies of the SF-272 15 calendar days following the end 
of each quarter. DOE may require a monthly report from those recipients 
receiving advances totaling $1 million or more per year.
    (v) DOE may waive the requirement for submission of the SF-272 for 
any one of the following reasons:
    (A) When monthly advances do not exceed $25,000 per recipient, 
provided that such advances are monitored through other forms contained 
in this section;
    (B) If, in the contracting officer's opinion, the recipient's 
accounting controls are adequate to minimize excessive Federal advances; 
or,
    (C) When electronic payment mechanisms provide adequate data.
    (b) When DOE needs additional information or more frequent reports, 
the following shall be observed:
    (1) When additional information is needed to comply with legislative 
requirements, DOE shall issue instructions to require recipients to 
submit such information under the ``Remarks'' section of the reports.
    (2) When DOE determines that a recipient's accounting system does 
not meet the standards in Sec. 600.121, additional pertinent information 
to further monitor awards may be obtained upon written notice to the 
recipient until such time as the system is brought up

[[Page 124]]

to standard. DOE, in obtaining this information, shall comply with 
report clearance requirements of 5 CFR part 1320.
    (3) Contracting officers are encouraged to shade out any line item 
on any report if not necessary.
    (4) DOE may accept the identical information from the recipients in 
machine readable format or computer printouts or electronic outputs in 
lieu of prescribed formats.
    (5) Computer or electronic outputs may be provided to recipients 
when that expedites or contributes to the accuracy of reporting.



Sec. 600.153  Retention and access requirements for records.

    (a) This section sets forth requirements for record retention and 
access to records for awards to recipients. DOE shall not impose any 
other record retention or access requirements upon recipients, unless 
such requirements are established in program regulations.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report or, for awards that are renewed quarterly or 
annually, from the date of the submission of the quarterly or annual 
financial report, as authorized by DOE. The only exceptions are the 
following:
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until all 
litigation, claims or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by DOE, the 3-year 
retention requirement is not applicable to the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, and 
related records, for which retention requirements are specified in 
Sec. 600.153(g).
    (c) Copies of original records may be substituted for the original 
records if authorized by DOE.
    (d) DOE shall request transfer of certain records to its custody 
from recipients when it determines that the records possess long term 
retention value. However, in order to avoid duplicate recordkeeping, DOE 
may make arrangements for recipients to retain any records that are 
continuously needed for joint use.
    (e) DOE, the Inspector General, Comptroller General of the United 
States, or any of their duly authorized representatives, have the right 
of timely and unrestricted access to any books, documents, papers, or 
other records of recipients that are pertinent to the awards, in order 
to make audits, examinations, excerpts, transcripts and copies of such 
documents. This right also includes timely and reasonable access to a 
recipient's personnel for the purpose of interview and discussion 
related to such documents. The rights of access in this paragraph are 
not limited to the required retention period, but shall last as long as 
records are retained.
    (f) Unless required by statute, DOE shall place no restrictions on 
recipients that limit public access to the records of recipients that 
are pertinent to an award, except when DOE can demonstrate that such 
records shall be kept confidential and would have been exempted from 
disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if 
the records had belonged to DOE.
    (g) Paragraphs (g)(1) and (g)(2) of this section apply to the 
following types of documents, and their supporting records: indirect 
cost rate computations or proposals, cost allocation plans, and any 
similar accounting computations of the rate at which a particular group 
of costs is chargeable (such as computer usage chargeback rates or 
composite fringe benefit rates).
    (1) If submitted for negotiation. If the recipient submits to the 
Federal agency responsible for negotiating the recipient's indirect cost 
rate or the subrecipient submits to the recipient the proposal, plan, or 
other computation to form the basis for negotiation of the rate, then 
the 3-year retention period for its supporting records starts on the 
date of such submission.

[[Page 125]]

    (2) If not submitted for negotiation. If the recipient is not 
required to submit to the cognizant Federal agency or the subrecipient 
is not required to submit to the recipient the proposal, plan, or other 
computation for negotiation purposes, then the 3-year retention period 
for the proposal, plan, or other computation and its supporting records 
starts at the end of the fiscal year (or other accounting period) 
covered by the proposal, plan, or other computation.
    (h) If, by the terms and conditions of the award, the recipient or 
subrecipient--
    (1) Is accountable for program income earned or received after the 
end of the project period or after the termination of an award or 
subaward, or
    (2) If program income earned during the project period is required 
to be applied to costs incurred after the end of the project period or 
after termination of an award or subaward, the record retention period 
shall start on the last day of the recipient's or subrecipient's fiscal 
year in which such income was earned or received or such costs were 
incurred. All other program income records shall be retained in 
accordance with Sec. 600.153(b).

                       Termination and Enforcement



Sec. 600.160  Purpose of termination and enforcement.

    Sections 600.161 and 600.162 set forth uniform suspension, 
termination and enforcement procedures.



Sec. 600.161  Termination.

    (a) Awards may be terminated in whole or in part only if paragraph 
(a) (1), (2) or (3) of this section apply.
    (1) By DOE, if a recipient materially fails to comply with the terms 
and conditions of an award.
    (2) By DOE with the consent of the recipient, in which case the two 
parties shall agree upon the termination conditions, including the 
effective date and, in the case of partial termination, the portion to 
be terminated.
    (3) By the recipient upon sending to DOE written notification 
setting forth the reasons for such termination, the effective date, and, 
in the case of partial termination, the portion to be terminated. 
However, if DOE determines in the case of partial termination that the 
reduced or modified portion of the award will not accomplish the 
purposes for which the award was made, it may terminate the award in its 
entirety under either paragraph (a) (1) or (2) of this section.
    (b) If costs are allowed under an award, the responsibilities of the 
recipient referred to in Sec. 600.171(a), including those for property 
management as applicable, shall be considered in the termination of the 
award, and provision shall be made for continuing responsibilities of 
the recipient after termination, as appropriate.



Sec. 600.162  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award, whether stated in a 
Federal statute, regulation, assurance, application, or notice of award, 
DOE may, in addition to imposing any of the special conditions outlined 
in Sec. 600.114, take one or more of the following actions, as 
appropriate in the circumstances.
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by DOE.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award.
    (4) Withhold further awards for the project or program.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, DOE shall 
provide the recipient an opportunity for hearing, appeal, or other 
administrative proceeding to which the recipient is entitled under any 
statute or regulation applicable to the action involved.
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a suspension 
or after termination of an award are not allowable unless the awarding 
agency expressly authorizes them in the notice of suspension or 
termination or subsequently. Other recipient costs during

[[Page 126]]

suspension or after termination which are necessary and not reasonably 
avoidable are allowable if paragraph (c) (1) and (2) of this section 
apply.
    (1) The costs result from obligations which were properly incurred 
by the recipient before the effective date of suspension or termination, 
are not in anticipation of it, and in the case of a termination, are 
noncancellable.
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to debarment 
and suspension under 10 CFR part 1036.

                      After-the-Award Requirements



Sec. 600.170  Purpose.

    Sections 600.171 through 600.173 contain closeout procedures and 
other procedures for subsequent disallowances and adjustments.



Sec. 600.171  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the award, all financial, performance, and other 
reports as required by the terms and conditions of the award. DOE may 
approve extensions when requested by the recipient.
    (b) Unless DOE authorizes an extension, a recipient shall liquidate 
all obligations incurred under the award not later than 90 calendar days 
after the funding period or the date of completion as specified in the 
terms and conditions of the award or in agency implementing 
instructions.
    (c) DOE shall make prompt payments to a recipient for allowable 
reimbursable costs under the award being closed out.
    (d) The recipient shall promptly refund any balances of unobligated 
cash that DOE has advanced or paid and that is not authorized to be 
retained by the recipient for use in other projects. OMB Circular A-129 
governs unreturned amounts that become delinquent debts.
    (e) When authorized by the terms and conditions of the award, DOE 
shall make a settlement for any upward or downward adjustments to the 
Federal share of costs after closeout reports are received.
    (f) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Secs. 600.131 through 600.137.
    (g) In the event a final audit has not been performed prior to the 
closeout of an award, DOE shall retain the right to recover an 
appropriate amount after fully considering the recommendations on 
disallowed costs resulting from the final audit.



Sec. 600.172  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following.
    (1) The right of DOE to disallow costs and recover funds on the 
basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 600.126.
    (4) Property management requirements in Secs. 600.131 through 
600.137.
    (5) Records retention as required in Sec. 600.153.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
DOE and the recipient, provided the responsibilities of the recipient 
referred to in paragraph 600.173(a), including those for property 
management as applicable, are considered and provisions made for 
continuing responsibilities of the recipient, as appropriate.



Sec. 600.173  Collection of amounts due.

    (a) Any funds paid to a recipient in excess of the amount to which 
the recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government. If 
not paid within a reasonable period after the demand for payment, DOE 
may reduce the debt by paragraph (a) (1), (2) or (3) of this section.

[[Page 127]]

    (1) Making an administrative offset against other requests for 
reimbursements.
    (2) Withholding advance payments otherwise due to the recipient.
    (3) Taking other action permitted by statute.
    (b) Except as otherwise provided by law, DOE shall charge interest 
on an overdue debt in accordance with 4 CFR Chapter II, ``Federal Claims 
Collection Standards.''

                          Additional Provisions



Sec. 600.180  Purpose.

    The purpose of ``Additional Provisions'' is to provide additional 
rules for certain types of recipients which are otherwise covered by 10 
CFR part 600, subpart B when they are performing under Small Business 
Innovation Research grants.



Sec. 600.181  Special provisions for Small Business Innovation Research Grants.

    (a) General. This section contains provisions applicable to the 
Small Business Innovation Research (SBIR) Program. This codifies six 
class deviations pertaining to the SBIR program.
    (b) Provisions Applicable to Phase I SBIR Awards. Phase I SBIR 
awards may be made on a fixed obligation basis, subject to the following 
requirements:
    (1) While proposed costs must be analyzed in detail to ensure 
consistency with applicable cost principles, incurred costs are not 
subject to regulation by the standards of cost allowability;
    (2) Although detailed budgets are submitted by a recipient and 
reviewed by DOE for purposes of establishing the amount to be awarded, 
budget categories are not stipulated in making an award;
    (3) Prior approval from the DOE for rebudgeting among categories by 
the recipient is not required. Prior approval from DOE is required for 
situations involving sole source or single bid procurements as provided 
in Sec. 600.181(d)(2). Prior approval from DOE is also required for any 
variation from the requirement under the SBIR program that no more than 
one-third of Phase I work can be done by sub-contractors or consortium 
partners;
    (4) Pre-award expenditure approval is not required;
    (5) Payments are to be made in the same manner as other financial 
assistance (see Sec. 600.122), except that, when determined appropriate 
by the cognizant program official and contracting officer, a lump sum 
payment may be made. If a lump sum payment is made, the award must be 
conditioned to require the recipient to return to DOE amounts remaining 
unexpended at the end of the project if those amounts exceed $500;
    (6) Recipients will certify in writing to the Contracting Officer at 
the end of the project that the activity was completed or the level of 
effort was expended. Should the activity or effort not be carried out, 
the recipient would be expected to make appropriate reimbursements;
    (7) Requirements for periodic reports may be established for each 
award so long as they are consistent with Sec. 600.151;
    (8) Changes in principal investigator or project leader, scope of 
effort, or institution, require the prior approval of DOE.
    (c) Provision Applicable to Phase II SBIR Awards. Phase II SBIR 
awards may be made for a single budget period of 24 months.
    (d) Provisions Applicable to Phase I and Phase II SBIR Awards.
    (1) The prior approval of the cognizant DOE Contracting Officer is 
required before the final budget period of the project period may be 
extended without additional funds.
    (2) A recipient or subrecipient must receive the prior written 
approval of the awarding party before entering into any sole source 
contract or a contract where only one bid or proposal is received when 
the value of the contract is expected to exceed $25,000 in the 
aggregate.
    (3) A fee or profit may be paid to SBIR recipients.

        Appendix A to Subpart B to Part 600--Contract Provisions

    All contracts, awarded by a recipient including small purchases, 
shall contain the following provisions as applicable:

[[Page 128]]

    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with E.O. 11246, ``Equal Employment 
Opportunity,'' as amended by E.O. 11375, ``Amending Executive Order 
11246 Relating to Equal Employment Opportunity,'' and as supplemented by 
regulations at 41 CFR part 60, ``Office of Federal Contract Compliance 
Programs, Equal Employment Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts and subgrants in excess of $2000 for construction 
or repair awarded by recipients and subrecipients shall include a 
provision for compliance with the Copeland ``Anti-Kickback'' Act (18 
U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR 
part 3, ``Contractors and Subcontractors on Public Building or Public 
Work Financed in Whole or in part by Loans or Grants from the United 
States''). The Act provides that each contractor or subrecipient shall 
be prohibited from inducing, by any means, any person employed in the 
construction, completion, or repair of public work, to give up any part 
of the compensation to which he is otherwise entitled. The recipient 
shall report all suspected or reported violations to the Federal 
awarding agency.
    3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--When 
required by Federal program legislation, all construction contracts 
awarded by the recipients and subrecipients of more than $2000 shall 
include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 
276a to a-7) and as supplemented by Department of Labor regulations (29 
CFR part 5, ``Labor Standards Provisions Applicable to Contracts 
Governing Federally Financed and Assisted Construction''). Under this 
Act, contractors shall be required to pay wages to laborers and 
mechanics at a rate not less than the minimum wages specified in a wage 
determination made by the Secretary of Labor. In addition, contractors 
shall be required to pay wages not less than once a week. The recipient 
shall place a copy of the current prevailing wage determination issued 
by the Department of Labor in each solicitation and the award of a 
contract shall be conditioned upon the acceptance of the wage 
determination. The recipient shall report all suspected or reported 
violations to the Federal awarding agency.
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in excess of 
$2000 for construction contracts and in excess of $2500 for other 
contracts that involve the employment of mechanics or laborers shall 
include a provision for compliance with sections 102 and 107 of the 
Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as 
supplemented by Department of Labor regulations (29 CFR part 5). Under 
section 102 of the Act, each contractor shall be required to compute the 
wages of every mechanic and laborer on the basis of a standard work week 
of 40 hours. Work in excess of the standard work week is permissible 
provided that the worker is compensated at a rate of not less than 1\1/
2\ times the basic rate of pay for all hours worked in excess of 40 
hours in the work week. Section 107 of the Act is applicable to 
construction work and provides that no laborer or mechanic shall be 
required to work in surroundings or under working conditions which are 
unsanitary, hazardous or dangerous. These requirements do not apply to 
the purchases of supplies or materials or articles ordinarily available 
on the open market, or contracts for transportation or transmission of 
intelligence.
    5. Rights to Inventions Made Under a Contract or Agreement--
Contracts or agreements for the performance of experimental, 
developmental, or research work shall provide for the rights of the 
Federal Government and the recipient in any resulting invention in 
accordance with 37 CFR part 401, ``Rights to Inventions Made by 
Nonprofit Organizations and Small Business Firms Under Government 
Grants, Contracts and Cooperative Agreements,'' and any implementing 
regulations issued by the awarding agency.
    6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--Contracts 
and subgrants of amounts in excess of $100,000 shall contain a provision 
that requires the recipient to agree to comply with all applicable 
standards, orders or regulations issued pursuant to the Clean Air Act 
(42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as 
amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the 
Federal awarding agency and the Regional Office of the Environmental 
Protection Agency (EPA).
    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)-- Contractors who 
apply or bid for an award of $100,000 or more shall file the required 
certification. Each tier certifies to the tier above that it will not 
and has not used Federal appropriated funds to pay any person or 
organization for influencing or attempting to influence an officer or 
employee of any agency, a member of Congress, officer or employee of 
Congress, or an employee of a member of Congress in connection with 
obtaining any Federal contract, grant or any other award covered by 31 
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal 
funds that takes place in connection with obtaining any Federal award. 
Such disclosures are forwarded from tier to tier up to the recipient.
    8. Debarment and Suspension (E.O.s 12549 and 12689)-- Contract 
awards that exceed the small purchase threshold and certain other 
contract awards shall not be made to parties listed on the 
nonprocurement portion of the General Services Administration's List of

[[Page 129]]

parties Excluded from Federal Procurement or Nonprocurement Programs in 
accordance with E.O.s 12549 and 12689, ``Debarment and Suspension.'' 
This list contains the names of parties debarred, suspended, or 
otherwise excluded by agencies, and contractors declared ineligible 
under statutory or regulatory authority other than E.O. 12549. 
Contractors with awards that exceed the small purchase threshold shall 
provide the required certification regarding its exclusion status and 
that of its principals.



     Subpart C--Uniform Administrative Requirements for Grants and 
          Cooperative Agreements to State and Local Governments

    Source: 53 FR 8045, 8087, Mar. 11, 1988, unless otherwise noted. 
Redesignated at 59 FR 53264, Oct. 21, 1994.

    Editorial Note: For additional information, see related documents 
published at 49 FR 24958, June 18, 1984, 52 FR 20178, May 29, 1987, and 
53 FR 8028, Mar. 11, 1988.

                                 General



Sec. 600.200  Purpose and scope of this subpart.

    This subpart establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 600.201  Scope of Secs. 600.200 through 600.205.

    This section contains general rules pertaining to this part and 
procedures for control of exceptions from this subpart.



Sec. 600.202  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for: (1) Goods and other 
tangible property received; (2) services performed by employees, 
contractors, subgrantees, subcontractors, and other payees; and (3) 
other amounts becoming owed under programs for which no current services 
or performance is required, such as annuities, insurance claims, and 
other benefit payments.
    Accrued income means the sum of: (1) Earnings during a given period 
from services performed by the grantee and goods and other tangible 
property delivered to purchasers, and (2) amounts becoming owed to the 
grantee for which no current services or performance is required by the 
grantee.
    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from programmatic 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means (1) with respect to a grant, the Federal 
agency, and (2) with respect to a subgrant, the party that awarded the 
subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash contributions.
    Contract means (except as used in the definitions for grant and 
subgrant in this section and except where qualified by Federal) a 
procurement contract under a grant or subgrant, and means a procurement 
subcontract under a contract.
    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.

[[Page 130]]

    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means: (1) For nonconstruction grants, the SF-269 
``Financial Status Report'' (or other equivalent report); (2) for 
construction grants, the SF-271 ``Outlay Report and Request for 
Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 Stat 
688) certified by the Secretary of the Interior as eligible for the 
special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under state law), any other 
regional or interstate government entity, or any agency or 
instrumentality of a local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of inkind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods and other property received, 
for services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.
    Prior approval means documentation evidencing consent prior to 
incurring specific cost. For the Department of Energy, this must be 
signed by a Contracting Officer.

[[Page 131]]

    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of grant in this subpart.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than 
``equipment'' as defined in this subpart.
    Suspension means depending on the context, either (1) temporary 
withdrawal of the authority to obligate grant funds pending corrective 
action by the grantee or subgrantee or a decision to terminate the 
grant, or (2) an action taken by a suspending official in accordance 
with agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. Termination does not include: (1) Withdrawal 
of funds awarded on the basis of the grantee's underestimate of the 
unobligated balance in a prior period; (2) withdrawal of the unobligated 
balance as of the expiration of a grant; (3) refusal to extend a grant 
or award additional funds, to make a competing or noncompeting 
continuation, renewal, extension, or supplemental award; or (4) voiding 
of a grant upon determination that the award was obtained fraudulently, 
or was otherwise illegal or invalid from inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee for which an 
outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.
[53 FR 8087, Mar. 11, 1988, as amended at 53 FR 8047, Mar. 11, 1988; 54 
FR 23960, June 5, 1989]



Sec. 600.203  Applicability.

    (a) General. Sections 600.400 through 600.452 of this subpart apply 
to all grants and subgrants to governments, except where inconsistent 
with Federal statutes or with regulations authorized in accordance with 
the exception provision of Sec. 600.405, or:

[[Page 132]]

    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under Title V, Subtitle D, Chapter 2, 
Section 583--the Secretary's discretionary grant program) and Titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and part C of Title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (Title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this subpart);
    (ii) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).
    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 600.403(a) (3) through (8) are subject to subpart E.
[53 FR 8045, 8087, Mar. 11, 1988, as amended at 54 FR 23960, June 5, 
1989]



Sec. 600.204  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this subpart are superseded, 
except to the extent they are required by statute, or authorized in 
accordance with the exception provision in Sec. 600.205.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7165, Feb. 26, 1996]

[[Page 133]]



Sec. 600.205  Additions and exceptions.

    (a) For classes of grants and grantees subject to this subpart, 
Federal agencies may not impose additional administrative requirements 
except in codified regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.
    (d) The DOE procedural requirements for requesting additions and 
exceptions are specified in Sec. 600.4.
[53 FR 8087, Mar. 11, 1988, as amended at 53 FR 8047, Mar. 11, 1988]

                         Pre-Award Requirements



Sec. 600.210  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted. Previously 
submitted pages with information that is still current need not be 
resubmitted.



Sec. 600.211  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect: (1) New or revised Federal statutes or regulations or (2) a 
material change in any State law, organization, policy, or State agency 
operation. The State will obtain approval for the amendment and its 
effective date but need submit for

[[Page 134]]

approval only the amended portions of the plan.



Sec. 600.212  Special grant or subgrant conditions for ``high-risk'' recipients.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this subpart, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grantee or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.
[53 FR 8045, 8087, Mar. 11, 1988, as amended at 59 FR 53265, Oct. 21, 
1994]

                         Post-Award Requirements

                        Financial Administration



Sec. 600.220  Standards for financial management systems.

    (a) A State must expend and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--
    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.

[[Page 135]]

    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.
[53 FR 8045, 8087, Mar. 11, 1988, as amended at 57 FR 5, Jan. 2, 1992]



Sec. 600.221  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this section are not met. Grantees 
and subgrantees may also be paid by reimbursement for any construction 
grant. Except as otherwise specified in regulation, Federal agencies 
shall not use the percentage of completion method to pay construction 
grants. The grantee or subgrantee may use that method to pay its 
construction contractor, and if it does, the awarding agency's payments 
to the grantee or subgrantee will be based on the grantee's or 
subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash or a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using

[[Page 136]]

such method is the unwillingness or inability of the grantee to provide 
timely advances to the subgrantee to meet the subgrantee's actual cash 
disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 600.243(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Unless there are statutory 
provisions to the contrary, grantees and subgrantees shall promptly, but 
at least quarterly, remit to the Federal agency interest earned on 
advances. The grantee or subgrantee may keep interest amounts up to $100 
per year for administrative expenses.
[53 FR 8045, 8087, Mar. 11, 1988, as amended at 57 FR 5, Jan. 2, 1992; 
61 FR 7165, Feb. 26, 1996]



Sec. 600.222  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

                                                                        
------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21.          
For-profit organization other than a        48 CFR part 31. Contract    
 hospital and an organization named in OBM   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
For-profit organization other than a        48 CFR 931.2                
 hospital and an organization named in OMB                              
 Circular A-122 as not subject to that                                  
 circular..                                                             
Hospitals.................................  45 CFR part 74, Appendix E  

[[Page 137]]

                                                                        
------------------------------------------------------------------------

[53 FR 8087, Mar. 11, 1988 as amended at 53 FR 8047, Mar. 11, 1988]



Sec. 600.223  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 600.224  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 600.425, shall not count towards satisfying a 
cost sharing or matching requirement unless they are expressly permitted 
in the terms of the assistance agreement. (This use of general program 
income is described in Sec. 600.225(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other provisions of the grant agreement expressly 
permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to

[[Page 138]]

pay for them, the payments would have been an indirect costs. Cost 
sharing or matching credit for such contributions shall be given only if 
the grantee, subgrantee, or contractor has established, along with its 
regular indirect cost rate, a special rate for allocating to individual 
projects or programs the value of the contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this subpart. If a third party in-kind contribution is a 
type not treated in those sections, the value placed upon it shall be 
fair and reasonable.
    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be counted as cost sharing 
or matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired 
with Federal funds, only the non-federal share of the property may be 
counted as cost-sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 600.222, in the same way as

[[Page 139]]

depreciation or use allowances for purchased equipment and buildings. 
The amount of depreciation or use allowances for donated equipment and 
buildings is based on the property's market value at the time it was 
donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the grantee. This requirement 
will also be imposed by the grantee on subgrantees.
[53 FR 8045, 8087, Mar. 11, 1988, as amended at 57 FR 5, Jan. 2, 1992; 
61 FR 7165, Feb. 26, 1996]



Sec. 600.225  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 600.234.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Secs. 600.231 and 
600.232.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the grant agreement specify 
another alternative (or a combination of the alternatives). In 
specifying alternatives, the Federal agency may distinguish between 
income earned by the grantee and income earned by subgrantees and 
between the sources, kinds, or amounts of income. When Federal agencies 
authorize the alternatives in paragraphs (g) (2) and (3) of this 
section, program income in excess of any limits stipulated shall also be 
deducted from outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.

[[Page 140]]

    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7165, 7166, Feb. 26, 1996]



Sec. 600.226  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act Amendments of 
1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of 
States, Local Governments, and Non-Profit Organizations.'' The audits 
shall be made by an independent auditor in accordance with generally 
accepted government auditing standards covering financial audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act Amendments of 1996, that 
provide Federal awards to a subgrantee, which expends $300,000 or more 
(or other amount as specified by OMB) in Federal awards in a fiscal 
year, shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Administrative Requirements for Grants and Agreements 
with Institutions of Higher Education, Hospitals, and Other Non-Profit 
Organizations,'' have met the audit requirements of the Act. Commercial 
contractors (private for-profit and private and governmental 
organizations) providing goods and services to State and local 
governments are not required to have a single audit performed. State and 
local governments should use their own procedures to ensure that the 
contractor has complied with laws and regulations affecting the 
expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 600.236 
shall be followed.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996; 62 FR 45939, 45940, Aug. 
29, 1997]

                    Changes, Property, and Subawards



Sec. 600.230  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior 
written approval of the awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 600.222) contain requirements for prior approval of certain types 
of costs. Except where waived, those requirements apply to all grants 
and subgrants even if paragraphs (c) through (f) of this section do not.

[[Page 141]]

    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved budget, 
whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 600.236 but does not apply to the procurement of equipment, 
supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget formal the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 600.222) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]



Sec. 600.231  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purposes, and the grantee or subgrantee shall not 
dispose of or encumber its title or other interests.

[[Page 142]]

    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the awarding agency. The grantee or 
subgrantee shall be paid an amount calculated by applying the grantee or 
subgrantee's percentage of participation in the purchase of the real 
property to the current fair market value of the property.



Sec. 600.232  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 600.225(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place will, as a minimum, meet 
the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use

[[Page 143]]

and condition of the property, and any ultimate disposition data 
including the date of disposal and sale price of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage, or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.
    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third party 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instructions 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 600.232(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]



Sec. 600.233  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.



Sec. 600.234  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and

[[Page 144]]

    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 600.235  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 600.236  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will follow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of conduct governing the performance of their employees 
engaged in the award and administration of contracts. No employee, 
officer or agent of the grantee or subgrantee shall participate in 
selection, or in the award or administration of a contract supported by 
Federal funds if a conflict of interest, real or apparent, would be 
involved. Such a conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction

[[Page 145]]

projects of sufficient size to offer reasonable opportunities for cost 
reductions. Value engineering is a systematic and creative anaylsis of 
each contract item or task to ensure that its essential function is 
provided at the overall lower cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.
    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 600.236. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services, geographic location may be 
a selection criteria provided its application leaves an appropriate 
number of qualified firms, given the nature and size of the project, to 
compete for the contract.

[[Page 146]]

    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed. (1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If 
small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 600.236(d)(2)(i) 
apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of; 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with more than one source 
submitting an offer, and either a fixed-price or cost-reimbursement type 
contract is awarded. It is generally used when conditions are not 
appropriate for the use of

[[Page 147]]

sealed bids. If this method is used, the following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular 
procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required

[[Page 148]]

to submit the elements of his estimated cost, e.g., under professional, 
consulting, and architectural engineering services contracts. A cost 
analysis will be necessary when adequate price competition is lacking, 
and for sole source procurements, including contract modifications or 
change orders, unless price resonableness can be established on the 
basis of a catalog or market price of a commercial product sold in 
substantial quantities to the general public or based on prices set by 
law or regulation. A price analysis will be used in all other instances 
to determine the reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 600.422). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or service specified is the one 
being proposed for purchase. This review generally will take place prior 
to the time the specification is incorporated into a solicitation 
document. However, if the grantee or subgrantee desires to have the 
review accomplished after a solicitation has been developed, the 
awarding agency may still review the specifications, with such review 
usually limited to the technical aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the system. Under a self-certification procedure, 
awarding agencies may wish to rely on written assurances from the 
grantee or subgrantee that it is complying with these standards. A 
grantee

[[Page 149]]

or subgrantee will cite specific procedures, regulations, standards, 
etc., as being in compliance with these requirements and have its system 
available for review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other clauses approved by 
the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR Part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR Part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR Part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency, the Comptroller General of the United States, or any of their 
duly authorized representatives to any books, documents, papers, and 
records of the contractor which are directly pertinent to

[[Page 150]]

that specific contract for the purpose of making audit, examination, 
excerpts, and transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000).
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).
[53 FR 8045, 8087, Mar. 11, 1988, as amended at 60 FR 19639, 19641, Apr. 
19, 1995; 61 FR 7166, Feb. 26, 1996]



Sec. 600.237  Subgrants.

    (a) States. States shall follow state law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 600.242 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and amount that apply to cash advances 
by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this subpart which are applicable to awarding agencies 
when awarding and administering subgrants (whether on a cost 
reimbursement or fixed amount basis) of financial assistance to local 
and Indian tribal governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this subpart;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this 
subpart do not apply to the award and administration of subgrants:
    (1) Section 600.210;
    (2) Section 600.211;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 600.221; and
    (4) Section 600.250.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]

               Reports, Records Retention, and Enforcement



Sec. 600.240  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding

[[Page 151]]

agency requires quarterly or semi-annual reports. However, performance 
reports will not be required more frequently than quarterly. Annual 
reports shall be due 90 days after the grant year, quarterly or semi-
annual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such cases, the grantee must inform 
the Federal agency as soon as the following types of conditions become 
known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 600.241  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extent required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the grantee 
to disregard any line item that

[[Page 152]]

the Federal agency finds unnecessary for its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this subpart.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with Sec. 600.241(e)(2)(iii).
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accrual basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will be due 90 days after the expiration or 
termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction

[[Page 153]]

grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 600.441(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs--(1) Grants that support construction activities paid by 
reimbursement method. (i) Requests for reimbursement under construction 
grants will be submitted on Standard Form 271, Outlay Report and Request 
for Reimbursement for Construction Programs. Federal agencies may, 
however, prescribe the Request for Advance or Reimbursement form, 
specified in Sec. 600.241(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 600.241(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance. (i) When a 
construction grant is paid by letter of credit, electronic funds 
transfer or Treasury check advances, the grantee will report its outlays 
to the Federal agency using Standard Form 271, Outlay Report and Request 
for Reimbursement for Construction Programs. The Federal agency will 
provide any necessary special instruction. However, frequency and due 
date shall be governed by Sec. 600.241(b) (3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 600.241(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 600.241(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 600.241(b)(2).
[53 FR 8045, 8047, Mar. 11, 1988, as amended at 59 FR 53266, Oct. 21, 
1994; 61 FR 7166, Feb. 26, 1996]



Sec. 600.242  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this subpart, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 600.436(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits

[[Page 154]]

its expenditure report for the last quarter of the Federal fiscal year. 
In all other cases, the retention period starts on the day the grantee 
submits its final expenditure report. If an expenditure report has been 
waived, the retention period starts on the day the report would have 
been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer usage 
chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of the United States, or any 
of their authorized representatives, shall have the right of access to 
any pertinent books, documents, papers, or other records of grantees and 
subgrantees which are pertinent to the grant, in order to make audits, 
examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.



Sec. 600.243  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee is entitled under any statute or regulation applicable to 
the action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee

[[Page 155]]

resulting from obligations incurred by the grantee or subgrantee during 
a suspension or after termination of an award are not allowable unless 
the awarding agency expressly authorizes them in the notice of 
suspension or termination or subsequently. Other grantee or subgrantee 
costs during suspension or after termination which are necessary and not 
reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 600.235).
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]



Sec. 600.244  Termination for convenience.

    Except as provided in Sec. 600.443 awards may be terminated in whole 
or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 600.243 
or paragraph (a) of this section.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]

                      After-the-Grant Requirements



Sec. 600.250  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report:

In accordance with Sec. 600.232(f), a grantee must submit an inventory 
of all federally owned property (as distinct from property acquired with 
grant funds) for which it is accountable and request disposition 
instructions from the Federal agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash advanced that is not 
authorized to be retained for use on other grants.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]

[[Page 156]]



Sec. 600.251  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 600.242;
    (d) Property management requirements in Secs. 600.231 and 600.232; 
and
    (e) Audit requirements in Sec. 600.226.
[53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 
1994, as amended at 61 FR 7166, Feb. 26, 1996]



Sec. 600.252  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an adminstrative offset against other requests for 
reimbursements,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR Ch. II). The date 
from which interest is computed is not extended by litigation or the 
filing of any form of appeal.

                         Entitlements [Reserved]



                          Subpart D  [Reserved]



            Subpart E--Audits of State and Local Governments

    Source: 50 FR 42357, Oct. 18, 1985, unless otherwise noted. 
Redesignated at 59 FR 53265, Oct. 21, 1994.



Sec. 600.400  Scope and applicability.

    This subpart implements, for DOE and recipients, the Single Audit 
Act of 1984, Public Law 98-502 and OMB Circular A-128. It establishes 
audit requirements for State and local governments that receive 
financial assistance from the Department of Energy and defines 
responsibilities with respect to those requirements.



Sec. 600.401  Definitions.

    For the purposes of this subpart, the following definitions from the 
Single Audit Act apply:
    (a) Cognizant agency means the Federal agency assigned by the Office 
of Management and Budget to carry out the responsibilities described in 
Sec. 600.308 of this subpart.
    (b) Federal financial assistance means assistance provided by a 
Federal agency in the form of grants, contracts, cooperative agreements, 
loans, loan guarantees, property, interest subsidies, insurance, or 
direct appropriations, but does not include direct Federal cash 
assistance to individuals. It includes awards received directly from 
Federal agencies, or indirectly through other units of State and local 
governments.
    (c) Federal agency has the same meaning as the term `agency' in 
section 551(1) of title 5, United States Code.
    (d) Generally accepted accounting principles has the meaning 
specified in the generally accepted government auditing standards.
    (e) Generally accepted government auditing standards means the 
Standards For Audit of Government Organizations, Programs, Activities, 
and Functions, developed by the Comptroller General, dated February 27, 
1981.
    (f) Independent auditor means:
    (1) A State or local government auditor who meets the independence 
standards specified in generally accepted government auditing standards; 
or
    (2) A public accountant who meets such independence standards.
    (g) Internal controls means the plan of organization and methods and 
procedures adopted by management to ensure that:
    (1) Resource use in consistent with laws, regulations, and policies;
    (2) Resources are safeguarded against waste, loss, and misuse; and

[[Page 157]]

    (3) Reliable data are obtained, maintained, and fairly disclosed in 
reports.
    (h) Indian tribe means any Indian tribe, band, nations, or other 
organized group or community, including any Alaskan Native village or 
regional or village corporations (as defined in, or established under, 
the Alaskan Native Claims Settlement Act) that is recognized by the 
United States as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.
    (i) Local government means any unit of local government within a 
State, including a county, a borough, municipality, city, town, 
township, parish, local public authority, special district, school 
district, intrastate district, council of governments, and any other 
instrumentality of local government.
    (j) Major Federal Assistance Program, for State and local 
governments having Federal assistance expenditures between $100,000 and 
$100,000,000, means any program for which Federal expenditures during 
the applicable year exceed the larger of $300,000, or 3 percent of such 
total expenditures.

Where total expenditures of Federal assistance exceed $100,000,000, the 
following criteria apply:

                                                                        
------------------------------------------------------------------------
 Total expenditures of Federal financial assistance      Major Federal  
                  for all programs                    assistance program
-----------------------------------------------------  means any program
            more than                but less than       that exceeds   
------------------------------------------------------------------------
$100 million....................  $1 billion........  $3 million.       
$1 billion......................  $2 billion........  $4 million.       
$2 billion......................  $3 billion........  $7 million.       
$3 billion......................  $4 billion........  $10 million.      
$4 billion......................  $5 billion........  $13 million.      
$5 billion......................  $6 billion........  $16 million.      
$6 billion......................  $7 billion........  $19 million.      
Over $7 billion.................  ..................  $20 million.      
------------------------------------------------------------------------

    (k) Public accountants means those individuals who meet the 
qualification standards included in generally accepted government 
auditing standards for personnel performing government audits.
    (l) State means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
American Samoa, the Commonwealth of the Northern Mariana Islands, and 
the Trust Territory of the Pacific Islands, any instrumentality thereof, 
and any multi-State, regional, or interstate entity that has 
governmental functions and any Indian tribe.
    (m) Subrecipient means any person or government department, agency, 
or establishment that receives Federal financial assistance to carry out 
a program through a State or local government, but does not include an 
individual that is a beneficiary of such a program. A subrecipient may 
also be a direct recipient of Federal financial assistance.



Sec. 600.402  Policy.

    The Single Audit Act requires the following:
    (a) State or local governments that receive $100,000 or more a year 
in Federal financial assistance shall have an audit made in accordance 
with this subpart.
    (b) State or local governments that receive between $25,000 and 
$100,000 a year shall have an audit made in accordance with this subpart 
or in accordance with Federal laws and regulations governing the 
programs they participate in.
    (c) State or local governments that receive less than $25,000 a year 
shall be exempt from compliance with the Act and other Federal audit 
requirements. These State and local governments shall be governed by 
audit requirements prescribed by State or local law or regulation.
    (d) Nothing in this paragraph exempts State and local governments 
from maintaining records of Federal financial assistance or from 
providing access to such records to Federal agencies, as provided for in 
Federal law and in Secs. 600.21, 600.153, and 600.242.
[50 FR 42357, Oct. 18, 1985, as amended at 59 FR 53266, Oct. 21, 1994; 
61 FR 7166, Feb. 26, 1996]



Sec. 600.403  Scope of audit.

    The Single Audit Act provides that:
    (a) The audit shall be made by an independent auditor in accordance 
with generally accepted government auditing standards covering financial 
and compliance audits.
    (b) The audit shall cover the entire operations of a State or local 
government or, at the option of that government, it may cover 
departments, agencies or establishments that received,

[[Page 158]]

expended, or otherwise administered Federal financial assistance during 
the year. However, if a State or local government receives $25,000 or 
more in General Revenue Sharing Funds in a fiscal year, it shall have an 
audit of its entire operations. A series of audits of individual 
departments, agencies, and establishments for the same fiscal year may 
be considered a single audit.
    (c) Public hospitals and public colleges and universities may be 
excluded from State and local audits and the requirements of this 
subpart. However, if such entities are excluded, audits of these 
entities shall be made in accordance with statutory requirements and the 
provisions of Secs. 600.126 and 600.226.
    (d) The auditor shall determine whether:
    (1) The financial statements of the government, department, agency 
or establishment present fairly its financial position and the results 
of its financial operations in accordance with generally accepted 
accounting principles;
    (2) The organization has internal accounting and other control 
systems to provide reasonable assurance that it is managing Federal 
financial assistance programs in compliance with applicable laws and 
regulations; and
    (3) The organization has complied with laws and regulations that may 
have material effect on its financial statements and on each major 
Federal assistance program.
[50 FR 42357, Oct. 18, 1985, as amended at 59 FR 53266, Oct. 21, 1994; 
61 FR 7166, Feb. 26, 1996]



Sec. 600.404  Frequency of audit.

    Audits shall be made annually unless the State or local government 
has, by January 1, 1987, a constitutional or statutory requirement for 
less frequent audits. For those governments, the cognizant agency shall 
permit biennial audits, covering both years, if the government so 
requests. It shall also honor requests for biennial audits by 
governments that have an administrative policy calling for audits less 
frequent than annual, but only for fiscal years beginning before January 
1, 1987.



Sec. 600.405  Internal control and compliance reviews.

    The Single Audit Act requires that the independent auditor determine 
and report on whether the organization has internal control systems to 
provide reasonable assurance that it is managing Federal assistance 
programs in compliance with applicable laws and regulations.
    (a) Internal control review. In order to provide this assurance the 
auditor must make a study and evaluation of internal control systems 
used in administering Federal assistance programs. The study and 
evaluation must be made whether or not the auditor intends to place 
reliance on such systems. As part of this review, the auditor shall:
    (1) Test whether these internal control systems are functioning in 
accordance with prescribed procedures.
    (2) Examine the recipient's system for monitoring subrecipients and 
obtaining and acting on subrecipient audit reports.
    (b) Compliance review. The law also requires the auditor to 
determine whether the organization has complied with laws and 
regulations that may have a material effect on each major Federal 
assistance program.
    (1) In order to determine which major programs are to be tested for 
compliance, State and local governments shall identify in their accounts 
all Federal funds received and expended and the programs under which 
they were received. This shall include funds received directly from 
Federal agencies and through other State and local governments.
    (2) The review must include the selection and testing of a 
representative number of charges from each major Federal assistance 
program. The selection and testing of transactions shall be based on the 
auditor's professional judgment considering such factors as the amount 
of expenditures for the program and the individual awards; the newness 
of the program or changes in its conditions; prior experience with the 
program, particularly as revealed in audits and other evaluations (e.g., 
inspections, program reviews); the extent to which the program is 
carried out through subrecipients; the extent

[[Page 159]]

to which the program contracts for goods or services; the level to which 
the program is already subject to program reviews or other forms of 
independent oversight; the adequacy of the controls for ensuring 
compliance; the expectation of adherence or lack of adherence to the 
applicable laws and regulations; and the potential impact of adverse 
findings.
    (i) In making the test of transactions, the auditor shall determine 
whether:
    (A) The amounts reported as expenditures were for allowable 
services, and
    (B) The records show that those who received services or benefits 
were eligible to receive them.
    (ii) In addition to transaction testing, the auditor shall determine 
whether:
    (A) Matching requirements, levels of effort and earmarking 
limitations were met,
    (B) Federal financial reports and claims for advances and 
reimbursements contain information that is supported by the books and 
records from which the basic financial statements have been prepared, 
and
    (C) Amounts claimed or used for matching were determined in 
accordance with OMB Circular A-87, ``Cost principles for State and local 
governments, and Sec. 600.224 of subpart C, as implemented by this part.
    (iii) The principal compliance requirements of the largest Federal 
aid programs may be ascertained by referring to the Compliance 
Supplement for Single Audits of State and Local Governments, issued by 
OMB and available from the Government Printing Office. For those 
programs not covered in the Compliance Supplement, the auditor may 
ascertain compliance requirements by researching the statutes, 
regulations, and agreements governing individual programs.
    (3) Transactions related to other Federal assistance programs that 
are selected in connection with examinations of financial statements and 
evaluations of internal controls shall be tested for compliance with 
Federal laws and regulations that apply to such transactions.
[50 FR 42357, Oct. 18, 1985, as amended at 54 FR 23960, June 5, 1989; 61 
FR 7166, Feb. 26, 1996]



Sec. 600.406  Subrecipients.

    State or local governments that receive Federal financial assistance 
and provide $25,000 or more of it in a fiscal year to a subrecipient 
shall:
    (a) Determine whether State or local subrecipients have met the 
audit requirements of this subpart and whether those subrecipients 
covered by the audit requirements of Sec. 600.126(a) have met those 
requirements;
    (b) Determine whether the subrecipient(s) spent Federal assistance 
funds provided in accordance with applicable laws and regulations. This 
may be accomplished by reviewing an audit of the subrecipient made in 
accordance with this subpart, Sec. 600.126(a), or through other means 
(e.g., program reviews) if the subrecipient has not yet had such an 
audit;
    (c) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instances of noncompliance 
with Federal laws and regulations;
    (d) Consider whether subrecipient audits necessitate adjustment of 
the recipients own records; and
    (e) Require each subrecipient to permit independent auditors to have 
access to the records and financial statements as necessary to comply 
with this part.
[50 FR 42357, Oct. 18, 1985, as amended at 59 FR 53266, Oct. 21, 1994]



Sec. 600.407  Relation to other audit requirements.

    (a) The Single Audit Act provides that an audit made in accordance 
with this subpart shall be in lieu of any financial or financial 
compliance audit required under individual Federal assistance programs. 
To the extent that a single audit provides DOE with information and 
assurances necessary to carry out its overall responsibilities, DOE 
shall rely upon and use such information. However, DOE shall make or 
have made any additional audits which

[[Page 160]]

are necessary to carry out its responsibilities under Federal law and 
regulation. Any additional Federal audit effort shall be planned and 
carried out in such a way as to avoid duplication. The DOE Contracting 
Officer will be the DOE official responsible for determining the need 
for any additional Federal financial and compliance audit after review 
of the evaluation of the audit report by the cognizant Federal audit 
organization and review of the audit report.
    (b) The provisions of this subpart do not limit the authority of 
Federal agencies to make, or contract for audits and evaluations of 
Federal financial assistance programs, nor do they limit the authority 
of any Federal agency Inspector General or other Federal audit official.
    (c) The provisions of this subpart do not authorize any State or 
local government or subrecipient thereof to constrain Federal agencies, 
in any manner, from carrying out additional audits.
    (d) If DOE makes or contracts for audits in addition to the audits 
made by recipients pursuant to this subpart, DOE shall, consistent with 
other applicable laws and regulations, arrange for funding the cost of 
such additional audits. Such additional audits include economy and 
efficiency audits, program results audits, and program evaluations.



Sec. 600.408  Cognizant agency responsibilities.

    (a) The Single Audit Act provides for cognizant Federal agencies to 
oversee the implementation of this subpart by recipients.
    (b) The Office of Management and Budget will assign cognizant 
agencies for States and their subdivisions and larger local governments 
and their subdivisions. (Cognizance assignments/responsibilities for 
other types of recipients are not governed by the Single Audit Act or by 
this subpart.) Other Federal agencies may participate with an assigned 
cognizant agency, in order to fulfill the cognizance responsibilities. 
Smaller governments not assigned a cognizant agency will be under the 
general oversight of the Federal agency that provides them the most 
funds whether directly or indirectly.
    (c) When DOE is the cognizant agency, the DOE Office of Inspector 
General (DOE-OIG) shall:
    (1) Ensure that audits are made and reports are received in a timely 
manner and in accordance with the requirements of this subpart.
    (2) Provide technical advice and liaison to State and local 
governments and independent auditors.
    (3) Obtain or make quality control reviews of selected audits made 
by non-Federal audit organizations, and provide the results, when 
appropriate, to other interested organizations.
    (4) Promtly inform other affected Federal agencies and appropriate 
Federal law enforcement officials of any reported illegal acts or 
irregularities. DOE-OIG will also inform State or local law enforcement 
and prosecuting authorities, if not advised by the recipient, of any 
violation of law within their jurisdiction.
    (5) Advise the recipient of audits that have been found not to have 
met the requirements set forth in this subpart. In such instances, the 
recipient will be expected to work with the auditor to take corrective 
action. If corrective action is not taken, DOE-OIG shall notify the 
recipient and Federal awarding agencies of the facts and make 
recommendations for followup action. Major inadequacies or repetitive 
substandard performance of independent auditors shall be referred to 
appropriate professional bodies for disciplinary action.
    (6) Coordinate, to the extent practicable, audits made by or for 
Federal agencies that are in addition to the audits made pursuant to 
this subpart so that the additional audits build upon such audits.
    (7) Oversee the resolution of audit findings that affect the 
programs of more than one agency.



Sec. 600.409  Illegal acts or irregularities.

    If the auditor becomes aware of illegal acts or other 
irregularities, prompt notice shall be given to recipient management 
officials above the level of involvement. (See also paragraph 
600.310(b)(3) below for the auditor's reporting responsibilities). The 
recipient,

[[Page 161]]

in turn, shall promptly notify the cognizant agency of the illegal acts 
or irregularities and of proposed and actual actions, if any. Illegal 
acts and irregularities include such matters as conflicts of interest, 
falsification of records or reports, and misappropriations of funds or 
other assets.



Sec. 600.410  Audit reports.

    (a) Audit reports must be prepared at the completion of the audit. 
Reports serve many needs of State and local governments as well as 
meeting the requirements of the Single Audit Act.
    (b) The audit report shall state that the audit was made in 
accordance with the provisions of this subpart. The report shall be made 
up of at least:
    (1) The auditor's report on financial statements and on a schedule 
of Federal assistance; the financial statements; and a schedule of 
Federal assistance, showing the total expenditures for each Federal 
assistance program as identified in the Catalog of Federal Domestic 
Assistance. Federal programs or grants that have not been assigned a 
catalog number shall be identified under the caption ``other Federal 
assistance.''
    (2) The auditor's report on the study and evaluation of internal 
control systems must identify the organization's significant internal 
accounting controls, and those controls designed to provide reasonable 
assurance that Federal programs are being managed in compliance with 
laws and regulations. It must also identify the controls that were 
evaluated, the controls that were not evaluated, and the material 
weaknesses identified as a result of the evaluation.
    (3) The auditor's report on compliance containing:
    (i) A statement of positive assurance with respect to those items 
tested for compliance, including compliance with law and regulations 
pertaining to financial reports and claims for advances and 
reimbursements;
    (ii) Negative assurance on those items not tested;
    (iii) A summary of all instances of noncompliance; and
    (iv) An identification of total amounts questioned, if any, for each 
Federal assistance award, as a result of noncompliance.
    (c) The three parts of the audit report may be bound into a single 
report, or presented at the same time as separate documents.
    (d) All fraud, abuse, or illegal acts or indications of such acts, 
including all questioned costs found as the result of these acts, that 
auditors become aware of, should normally be covered in a separate 
written report submitted in accordance with paragraph 600.310(g).
    (e) In addition to the audit report, the recipient shall provide 
comments on the findings and recommendations in the report, including a 
plan for corrective action taken or planned and comments on the status 
of corrective action taken on prior findings. If corrective action is 
not necessary, a statement describing the reason it is not should 
accompany the audit report.
    (f) The reports shall be made available by the State or local 
government for public inspection within 30 days after the completion of 
the audit.
    (g) In accordance with generally accepted government audit 
standards, reports shall be submitted by the auditor to the organization 
audited and to those requiring or arranging for the audit. In addition, 
the recipient shall submit copies of the reports to each Federal 
department or agency that provided Federal assistance funds to the 
recipient. Copies of audit reports to be submitted to DOE shall be 
submitted to the appropriate DOE-OIG as indicated in appendix B of this 
part. Subrecipients shall submit copies to recipients that provided them 
Federal assistance funds. The reports shall be sent within 30 days after 
the completion of the audit, but no later than one year after the end of 
the audit period unless a longer period is agreed to with the cognizant 
agency.
    (h) Recipients of more than $100,000 in Federal funds shall submit 
one copy of the audit report within 30 days after issuance to the Bureau 
of Census, Data Preparation Division, 1201 E. 10th Street, 
Jeffersonville, Indiana 47132, Attn: Single Audit Clearinghouse. The 
clearinghouse will keep completed audits on file and follow up with 
State and local governments that have not submitted required audit 
reports.

[[Page 162]]

    (i) Recipients shall keep audit reports on file for three years from 
their issuance.
[50 FR 42357, Oct. 18, 1985, as amended at 51 FR 4297, Feb. 4, 1986]



Sec. 600.411  Audit resolution.

    (a) As provided in Sec. 600.308, the cognizant agency shall be 
responsible for monitoring the resolution of audit findings pertaining 
to DOE recipients that affect the programs of DOE and one or other more 
Federal agency(ies). If DOE is cognizant, a cognizant DOE Contracting 
Officer, as determined by the dollar value of awards with the recipient, 
will assume this responsibility for the Department. Resolution of 
findings that relate to the programs of DOE only will be the 
responsibility of the recipient and DOE. Alternate arrangements may be 
made on a case-by-case basis by agreement among the agencies concerned.
    (b) Resolution shall be made within six months after receipt of the 
report by the Federal departments and agencies. Corrective action should 
proceed as rapidly as possible.



Sec. 600.412  Audit workpapers and reports.

    Workpapers and reports shall be retained for a minimum of three 
years from the date of the audit report, unless the auditor is notified 
in writing by the cognizant agency to extend the retention period. Audit 
workpapers shall be made available upon request to the cognizant agency 
or its designee or the General Accounting Office, at the completion of 
the audit.



Sec. 600.413  Audit costs.

    (a) The cost of audits made in accordance with the provisions of 
this subpart are allowable charges to DOE and other Federal assistance 
programs. The charges may be considered a direct cost or an allocated 
indirect cost, determined in accordance with the provisions of Circular 
A-87, ``Cost principles for State and local governments,'' as 
appropriate.
    (b) Generally, the percentage of costs charged to Federal assistance 
programs for a single audit shall not exceed the percentage that Federal 
funds expended represent of total funds expended by the recipient during 
the fiscal year. The percentage may be exceeded, however, if appropriate 
documentation demonstrates higher actual cost.



Sec. 600.414  Sanctions.

    (a) The Single Audit Act provides that no cost may be charged to 
Federal assistance programs for audits required by the Act that are not 
made in accordance with this subpart.
    (b) In cases of continued inability or unwillingness to have a 
proper audit, DOE shall consider appropriate sanctions, including those 
specified in Secs. 600.162 and 600.243 of this part and the following:
    (1) Withholding a percentage of assistance payments until the audit 
is completed satisfactorily,
    (2) Withholding or disallowing overhead costs, and
    (3) Suspending the Federal assistance agreement until the audit is 
made.
[50 FR 42357, Oct. 18, 1985, as amended at 59 FR 53266, Oct. 21, 1994]



Sec. 600.415  Auditor selection.

    In arranging for audit services State and local governments shall 
follow the procurement standards prescribed by Sec. 600.236 of subpart 
C. The standards provide that while recipients are encouraged to enter 
into intergovernmental agreements for audit and other services, analysis 
should be made to determine whether it would be more economical to 
purchase the services from private firms. In instances where use of such 
intergovernmental agreements are required by State statutes (e.g., audit 
services) these statutes will take precedence.
[50 FR 42357, Oct. 18, 1985; 51 FR 4297, Feb. 4, 1986, as amended at 54 
FR 23960, June 5, 1989; 61 FR 7166, Feb. 26, 1996]



Sec. 600.416  Small and minority audit firms.

    Small audit firms and audit firms owned and controlled by socially 
and economically disadvantaged individuals shall have the maximum 
practicable opportunity to participate in contracts awarded to fulfill 
the requirements of this subpart. Recipients

[[Page 163]]

of Federal assistance shall take the following steps to further this 
goal:
    (a) Assure that small audit firms and audit firms owned and 
controlled by socially and economically disadvantaged individuals are 
used to the fullest extent practicable.
    (b) Make information on forthcoming opportunities available and 
arrange timeframes for the audit so as to encourage and facilitate 
participation by small audit firms and audit firms owned and controlled 
by socially and economically disadvantaged individuals.
    (c) Consider in the contract process whether firms competing for 
large audits intend to subcontract with small audit firms and audit 
firms owned and controlled by socially and economically disadvantaged 
individuals.
    (d) Encourage contracting with small audit firms or audit firms 
owned and controlled by socially and economically disadvantaged 
individuals which have traditionally audited government programs and, in 
such cases where this is not possible, assure that these firms are given 
consideration for audit subcontracting opportunities.
    (e) Encourage contracting with consortiums of small audit firms as 
described in paragraph (a) of this section when a contract is too large 
for an individual small audit firm or audit firm owned and controlled by 
socially and economically disadvantaged individuals.
    (f) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration in the solicitation 
and utilization of small audit firms or audit firms owned and controlled 
by socially and economically disadvantaged individuals.



Sec. 600.417  Reporting.

    The Office of the Inspector General, DOE, will report to the 
Director of OMB on or before March 1, 1987, and annually thereafter on 
the effectiveness of State and local governments in carrying out the 
provisions of this subpart. The report will identify each State or local 
government or Indian tribe that, in the opinion of the agency, is 
failing to comply with this subpart.



 Subpart F--Eligibility Determination for Certain Financial Assistance 
                  Programs--General Statement of Policy

    Source: 60 FR 65514, Dec. 20, 1995, unless otherwise noted.



Sec. 600.500  Purpose and scope.

    This subpart implements section 2306 of the Energy Policy Act of 
1992, 42 U.S.C. 13525, and sets forth a general statement of policy, 
including procedures and interpretations, for the guidance of 
implementing DOE officials in making mandatory pre-award determinations 
of eligibility for financial assistance under Titles XX through XXIII of 
that Act.



Sec. 600.501  Definitions.

    The definitions in Sec. 600.3 of this part, including the definition 
of the term ``financial assistance,'' are applicable to this subpart. In 
addition, as used in this subpart:
    Act means the Energy Policy Act of 1992.
    Company means any business entity other than an organization of the 
type described in section 501(c)(3) of the Internal Revenue Code of 1954 
(26 U.S.C. Sec. 501 (c)(3)).
    Covered program means a program under Titles XX through XXIII of the 
Act. (A list of covered programs, updated periodically as appropriate, 
is maintained and published by the Department of Energy.)
    Parent company means a company that:
    (1) Exercises ultimate ownership of the applicant company either 
directly, by ownership of a majority of that company's voting 
securities, or indirectly, by control over a majority of that company's 
voting securities through one or more intermediate subsidiary companies 
or otherwise, and
    (2) Is not itself subject to the ultimate ownership control of 
another company.
    United States means the several States, the District of Columbia, 
and all commonwealths, territories, and possessions of the United 
States.
    United States-owned company means:

[[Page 164]]

    (1) A company that has majority ownership by individuals who are 
citizens of the United States, or
    (2) A company organized under the laws of a State that either has no 
parent company or has a parent company organized under the laws of a 
State.
    Voting security has the meaning given the term in the Public Utility 
Holding Company Act (15 U.S.C. 15b(17)).



Sec. 600.502  What must DOE determine.

    A company shall be eligible to receive an award of financial 
assistance under a covered program only if DOE finds that--
    (a) Consistent with Sec. 600.503, the company's participation in a 
covered program would be in the economic interest of the United States; 
and
    (b) The company is either--
    (1) A United States-owned company; or
    (2) Incorporated or organized under the laws of any State and has a 
parent company which is incorporated or organized under the laws of a 
country which--
    (i) Affords to the United States-owned companies opportunities, 
comparable to those afforded to any other company, to participate in any 
joint venture similar to those authorized under the Act;
    (ii) Affords to United States-owned companies local investment 
opportunities comparable to those afforded to any other company; and
    (iii) Affords adequate and effective protection for the intellectual 
property rights of United States-owned companies.



Sec. 600.503  Determining the economic interest of the United States.

    In determining whether participation of an applicant company in a 
covered program would be in the economic interest of the United States 
under Sec. 600.502(a), DOE may consider any evidence showing that a 
financial assistance award would be in the economic interest of the 
United States including, but not limited to--
    (a) Investments by the applicant company and its affiliates in the 
United States in research, development, and manufacturing (including, 
for example, the manufacture of major components or subassemblies in the 
United States);
    (b) Significant contributions to employment in the United States by 
the applicant company and its affiliates; and
    (c) An agreement by the applicant company, with respect to any 
technology arising from the financial assistance being sought--
    (1) To promote the manufacture within the United States of products 
resulting from that technology (taking into account the goals of 
promoting the competitiveness of United States industry); and
    (2) To procure parts and materials from competitive suppliers.



Sec. 600.504  Information an applicant must submit.

    (a) Any applicant for financial assistance under a covered program 
shall submit with the application for financial assistance, or at such 
later time as may be specified by DOE, evidence for DOE to consider in 
making findings required under Sec. 600.502(a) and findings concerning 
ownership status under Sec. 600.502(b).
    (b) If an applicant for financial assistance is submitting evidence 
relating to future undertakings, such as an agreement under 
Sec. 600.503(c) to promote manufacture in the United States of products 
resulting from a technology developed with financial assistance or to 
procure parts and materials from competitive suppliers, the applicant 
shall submit a representation affirming acceptance of these 
undertakings. The applicant should also briefly describe its plans, if 
any, for any manufacturing of products arising from the program-
supported research and development, including the location where such 
manufacturing is expected to occur.
    (c) If an applicant for financial assistance is claiming to be a 
United States-owned company, the applicant must submit a representation 
affirming that it falls within the definition of that term provided in 
Sec. 600.501.
    (d) DOE may require submission of additional information deemed 
necessary to make any portion of the determination required by 
Sec. 600.502.

[[Page 165]]



Sec. 600.505  Other information DOE may consider.

    In making the determination under Sec. 600.502(b)(2), DOE may--
    (a) consider information on the relevant international and domestic 
law obligations of the country of incorporation of the parent company of 
an applicant;
    (b) consider information relating to the policies and practices of 
the country of incorporation of the parent company of an applicant with 
respect to:
    (1) The eligibility criteria for, and the experience of United 
States-owned company participation in, energy-related research and 
development programs;
    (2) Local investment opportunities afforded to United States-owned 
companies; and
    (3) Protection of intellectual property rights of United States-
owned companies;
    (c) seek and consider advice from other federal agencies, as 
appropriate; and
    (d) consider any publicly available information in addition to the 
information provided by the applicant.

        Appendix A to Part 600--Generally Applicable Requirements

                    Socioeconomic Policy Requirements

    Nondiscrimination in Federally Assisted Programs, 10 CFR part 1040 
(45 FR 40514, June 13, 1980), as proposed to be amended by 46 FR 49546 
(October 6, 1981).
    Nondiscrimination Provisions in Federally Assisted Construction 
Contracts, Part III of Executive Order 11246 (September 24, 1965), 3 CFR 
1964--65 Comp., p. 345.
    Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and 
Rehabilitation Act of 1970, as amended (42 U.S.C. 4581).
    Drug Abuse Office and Treatment Act of 1972, as amended (21 U.S.C. 
1174).
    Architectural Barriers Act of 1968, as amended (42 U.S.C. 4151 et 
seq.).
    National Environmental Policy Act of 1969, as amended (42 U.S.C. 
4321 et seq.), 40 CFR part 1500, as implemented by (45 FR 20694, March 
28, 1980).
    Sec. 306, Clean Air Act, as amended (42 U.S.C. 7606c).
    Sec. 508, Federal Water Pollution Control Act of 1972 (33 U.S.C. 
1251 et seq.); Executive Order 11738, September 12, 1973.
    Title XIV, Public Health Service Act, as amended (42 U.S.C. 300f--et 
seq.).
    Sec. 102(a), Flood Disaster Protection Act of 1973 (Pub. L. 93-234, 
87 Stat. 975).
    10 CFR part 1022, ``Protection of Wetlands and Floodplains.''
    Uniform Relocation Assistance and Land Acquisition Policies Act of 
1970 (42 U.S.C. 4601 et seq.).
    Coastal Zone Management Act of 1972, as amended (16 U.S.C. 1451 et 
seq.) (15 CFR part 930).
    Endangered Species Act of 1973, as amended (16 U.S.C. 1531 et seq.).
    Fish and Wildlife Coordination Act (16 U.S.C. 661 et seq.).
    Sec. 106, National Historic Preservation Act of 1966, as amended (16 
U.S.C. 470f); Executive Order 11593, ``Protection and Enhancement of the 
Cultural Environment,'' May 13, 1971, 3 CFR 1971 Comp., p. 154; 
Archaeological and Historic Preservation Act of 1966 (16 U.S.C. 469 et 
seq.); Protection of Historic and Cultural Properties, 36 CFR part 800.
    Wild and Scenic Rivers Act of 1968, as amended (16 U.S.C. 1271 et 
seq.).
    Protection of Human Subjects, 10 CFR part 745.
    Federal Laboratory Animal Welfare Act (7 U.S.C. 2131 et seq.) (9 CFR 
parts 1, 2, and 3).
    Lead-Based Paint Prohibition (42 U.S.C. 4831(b)).
    Sec. 7(b), Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 450e(b)).
    Cargo Preference Act of 1954 (46 U.S.C. 1241(b)) (46 CFR 
Sec. 381.7).
    International Air Transportation Fair Competitive Practices Act of 
1974 (49 U.S.C. 1517).
    Executive Order 12138, ``Creating a National Women's Business 
Enterprise Policy and Prescribing Arrangements for Developing, 
Coordinating, and Implementing a National Program for Women's Business 
Enterprise,'' (May 18, 1979) 3 CFR 1979 Comp., p. 393.
    Sec. 403(b), Power Plant and Industrial Fuel Use Act of 1978, (42 
U.S.C. 8373(b)); Executive Order 12185 (December 17, 1979, 3 CFR 1979 
Comp., p. 474).

              Administrative and Fiscal Policy Requirements

    The Hatch Act (5 U.S.C. 1501-1508).
    Federal Reports Act, as amended by the Paperwork Reduction Act of 
1980, Pub. L. 96-511 (44 U.S.C. 3501 et seq.).
    OMB Circular A-111, Jointly Funded Assistance to State and Local 
Governments and Nonprofit Organizations--Policies and Procedures.
    Federal Claims Collection Act of 1966, Pub. L. 89-508, 89 Stat. 309 
(31 U.S.C. 951 et seq.).
    OMB Circular A-88, Coordinating Indirect Cost Rates and Audit at 
Educational Institutions.
    OMB Circular A-73, Audit of Federal Operations and Programs.
    Single Audit Act of 1984, Pub. L. 98-502.

[[Page 166]]

    OMB Circular A-128, Audits of State and Local Governments.
[47 FR 44108, Oct. 5, 1982, as amended at 50 FR 42361, Oct. 18, 1985; 51 
FR 4297, Feb. 4, 1986]

            Appendix B to Part 600--Audit Report Distributees

    Distributee: Manager, Eastern Region, Office of Inspector General, 
U.S. Department of Energy, P.O. Box 1328, Oak Ridge, Tennessee 37831-
1328.
    For recipients in: Alabama, Arkansas, Connecticut, Delaware, 
District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, 
Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, 
Minnesota, Mississippi, Missouri, New Hampshire, New Jersey, New York, 
North Carolina, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South 
Carolina, Tennessee, Vermont, Virgin Islands, Virginia, West Virginia, 
Wisconsin.
    Distributee: Manager, Western Region, Office of Inspector General, 
U.S. Department of Energy, P.O. Box 5400, Albuquerque, New Mexico 87115.
    For recipients in: Alaska, Arizona, California, Colorado, Hawaii, 
Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, 
Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming.
[50 FR 42361, Oct. 18, 1985; 51 FR 4297, Feb. 4, 1986]



PART 601--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
601.100  Conditions on use of funds.
601.105  Definitions.
601.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

601.200  Agency and legislative liaison.
601.205  Professional and technical services.
601.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

601.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

601.400  Penalties.
601.405  Penalty procedures.
601.410  Enforcement.

                          Subpart E--Exemptions

601.500  Secretary of Defense.

                        Subpart F--Agency Reports

601.600  Semi-annual compilation.
601.605  Inspector general report.

Appendix A to Part 601--Certification Regarding Lobbying
Appendix B to Part 601--Disclosure Form To Report Lobbying

    Authority: 31 U.S.C. 1352; 42 U.S.C. 7254 and 7256; 31 U.S.C. 6301-
6308; 28 U.S.C. 2461 note.

    Source: 55 FR 6737 and 6746, Feb. 26, 1990, unless otherwise noted.

    Cross Reference: See also Office of Management and Budget notice 
published at 54 FR 52306, Dec. 20, 1989.



                           Subpart A--General



Sec. 601.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.

[[Page 167]]

    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 601.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;

[[Page 168]]

    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than 130 
working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 601.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraphs (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:

[[Page 169]]

    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraphs (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the 
next tier above.

    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraphs 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions, but not made before December 23, 1989, disclosure 
forms shall not be required at time of award or commitment but shall be 
filed within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 601.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 601.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for

[[Page 170]]

an agency to make an informed decision about initiation of a covered 
Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 601.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 601.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract, grant, loan, or cooperative agreement if payment is 
for professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, or 
application for that Federal contract, grant, loan, or cooperative 
agreement or for meeting requirements imposed by or pursuant to law as a 
condition for receiving that Federal contract, grant, loan, or 
cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 601.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 601.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in 
Sec. 601.100 (a), does not apply in the case of any reasonable payment 
to a person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant,

[[Page 171]]

loan, or cooperative agreement or for meeting requirements imposed by or 
pursuant to law as a condition for receiving that Federal contract, 
grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 601.110 (a) and (b) regarding 
filing a disclosure form by each person, if required, shall not apply 
with respect to professional or technical services rendered directly in 
the preparation, submission, or negotiation of any commitment providing 
for the United States to insure or guarantee a loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 601.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $11,000 and not more than 
$110,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $11,000 and not more than $110,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject

[[Page 172]]

to a civil penalty of $11,000, absent aggravating circumstances. Second 
and subsequent offenses by persons shall be subject to an appropriate 
civil penalty between $11,000 and $110,000, as determined by the agency 
head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.
[55 FR 6737 and 6746, Feb. 26, 1990, as amended at 62 FR 46183, Sept. 2, 
1997]



Sec. 601.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 3803 
(except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 3812, insofar 
as these provisions are not inconsistent with the requirements herein.



Sec. 601.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 601.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 601.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate

[[Page 173]]

and the Clerk of the House of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 601.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

        Appendix A to part 601--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $11,000 and not more than 
$110,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $11,000 and not more than 
$110,000 for each such failure.
[55 FR 6737 and 6746, Feb. 26, 1990, as amended at 62 FR 46184, Sept. 2, 
1997]

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       Appendix B to part 601-- Disclosure Form To Report Lobbying
[GRAPHIC] [TIFF OMITTED] TC01OC91.009


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[GRAPHIC] [TIFF OMITTED] TC01OC91.010


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[GRAPHIC] [TIFF OMITTED] TC01OC91.011


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PART 602--EPIDEMIOLOGY AND OTHER HEALTH STUDIES FINANCIAL ASSISTANCE PROGRAM--Table of Contents




Sec.
602.1  Purpose and scope.
602.2  Applicability.
602.3  Definitions.
602.4  Deviations.
602.5  Epidemiology and Other Health Studies Financial Assistance 
          Program.
602.6  Eligibility.
602.7  Solicitation.
602.8  Application requirements.
602.9  Application evaluation and selection.
602.10  Additional requirements.
602.11  Funding.
602.12  Cost sharing.
602.13  Limitation of DOE liability.
602.14  Fee.
602.15  Indirect cost limitations.
602.16  National security.
602.17  Continuation funding and reporting requirements.
602.18  Dissemination of results.
602.19  Records and data.

Appendix A to Part 602--Schedule of Renewal Applications and Reports

    Authority: 42 U.S.C. 2051; 42 U.S.C. 5817; 42 U.S.C. 5901-5920; 42 
U.S.C. 7254 and 7256; 31 U.S.C. 6301-6308.

    Source: 60 FR 5841, Jan. 31, 1995, unless otherwise noted.



Sec. 602.1  Purpose and scope.

    This part sets forth the policies and procedures applicable to the 
award and administration of grants and cooperative agreements by DOE 
(through the Office of Environment, Safety and Health or any office to 
which its functions are subsequently redelegated) for health related 
research, education/training, conferences, communication, and related 
activities.



Sec. 602.2  Applicability.

    (a) This part applies to all grants and cooperative agreements 
awarded after the effective date of this rule.
    (b) Except as otherwise provided by this part, the award and 
administration of grants and cooperative agreements shall be governed by 
10 CFR part 600 (DOE Financial Assistance Rules).



Sec. 602.3  Definitions.

    In addition to the definitions provided in 10 CFR part 600, the 
following definitions are provided for purposes of this part:
    Conference and communication activities means scientific or 
technical conferences, symposia, workshops, seminars, public meetings, 
publications, video or slide shows, and other presentations for the 
purpose of communicating or exchanging information or views pertinent to 
DOE.
    DOE means the United States Department of Energy.
    Education/Training means support for education or related activities 
for an individual or organization that will enhance educational levels 
and skills, in particular, scientific or technical areas of interest to 
DOE.
    Epidemiology and Other Health Studies means research pertaining to 
potential health effects resulting from DOE or predecessor agency 
operations or from any aspect of energy production, transmission, or use 
(including electromagnetic fields) in the United States and abroad. 
Related systems or activities to enhance these areas, as well as other 
program areas that may be described by notice published in the Federal 
Register, are also included.
    Principal investigator means the scientist or other individual 
designated by the recipient to direct the project.
    Research means basic and applied research and that part of 
development not related to the development of specific systems or 
products. The primary aim of research is scientific study and 
experimentation directed toward advancing the state of the art or 
increasing knowledge or understanding rather than focusing on a specific 
system or product.



Sec. 602.4  Deviations.

    (a) Single-case deviations from this part may be authorized in 
writing by the Assistant Secretary for Environment, Safety and Health, 
the Head of the Contracting Activity, or their designees, upon the 
written request of DOE staff, an applicant for award, or a recipient. A 
request from an applicant or a recipient must be submitted to or through 
the cognizant contracting officer.
    (b) Whenever a proposed deviation from this part would be a 
deviation from 10 CFR part 600, the deviation must also be authorized in 
accordance

[[Page 178]]

with the procedures prescribed in that part.



Sec. 602.5  Epidemiology and Other Health Studies Financial Assistance Program.

    (a) DOE may issue under this part awards for research, education/
training, conferences, communication, and related activities in the 
Office of Environment, Safety and Health program areas set forth in 
paragraph (b) of this section.
    (b) The program areas are:
    (1) Health experience of DOE and DOE contractor workers;
    (2) Health experience of populations living near DOE facilities;
    (3) Workers exposed to toxic substances, such as beryllium;
    (4) Use of biomarkers to recognize exposure to toxic substances;
    (5) Epidemiology and other health studies relating to energy 
production, transmission, and use (including electromagnetic fields) in 
the United States and abroad;
    (6) Compilation, documentation, management, use, and analysis of 
data for the DOE Comprehensive Epidemiologic Data Resource; and
    (7) Other systems or activities enhancing these areas, as well as 
other program areas as may be described by notice published in the 
Federal Register.



Sec. 602.6  Eligibility.

    Any individual or entity other than a Federal agency is eligible for 
a grant or cooperative agreement. An unaffiliated individual is also 
eligible for a grant or cooperative agreement.



Sec. 602.7  Solicitation.

    (a) The Catalog of Federal Domestic Assistance number for 10 CFR 
part 602 is 81.108 and its solicitation control number is EOHSFAP 10 CFR 
part 602.
    (b) An application for a new or renewal award under this 
solicitation may be submitted at any time to DOE at the address 
specified in paragraph (c) of this section. New or renewal applications 
shall receive consideration for funding generally within 6 months but, 
in any event, no later than 12 months from the date of receipt by DOE.
    (c) Except as otherwise provided in a notice of availability, 
applicants may obtain application forms, described in 602.8(b) of this 
part, and additional information from the Office of Epidemiology and 
Health Surveillance (EH-42), U.S. Department of Energy, Washington, DC 
20585, (301) 903-5926, and shall submit applications to the same 
address.
    (d) DOE will publish program notices in the Federal Register 
regarding the availability of epidemiology and other health studies 
financial assistance. DOE may also use other means of communication, as 
appropriate, such as the publication of notices of availability in trade 
and professional journals and news media.
    (1) Each notice of availability shall cite this part and shall 
include:
    (i) The Catalog of Federal Domestic Assistance number and 
solicitation control number of the program;
    (ii) The amount of money available or estimated to be available for 
award;
    (iii) The name of the responsible DOE program official to contact 
for additional information and an address where application forms may be 
obtained;
    (iv) The address for submission of applications; and
    (v) Any evaluation criteria in addition to those set forth in 
Sec. 602.9 of this part.
    (2) The notice of availability may also include any other relevant 
information helpful to applicants such as:
    (i) Program objectives;
    (ii) A project agenda or potential area of project initiatives;
    (iii) Problem areas requiring additional effort; and
    (iv) Any other information that identifies areas in which grants or 
cooperative agreements may be made.
    (e) DOE is under no obligation to pay for any costs associated with 
the preparation or submission of applications.
    (f) DOE reserves the right to fund, in whole or in part, any, all, 
or none of the applications submitted.
    (g) To be considered for a renewal award under this part, an 
incumbent recipient shall submit a continuation or renewal application, 
as provided in Sec. 602.8 (c) and (h) of this part.

[[Page 179]]



Sec. 602.8  Application requirements.

    (a) An original and seven copies of the application for initial 
support must be submitted, except that State and local governments and 
Indian tribal governments shall not be required to submit more than the 
original and two copies of the application.
    (b) Each new or renewal application in response to this part must 
include:
    (1) An application face page, DOE Form 4650.2 (approved by OMB under 
OMB Control No. 1910-1400). However, the face page of an application 
submitted by a State or local government or an Indian tribal government 
shall be the face page of Standard Form 424 (approved by OMB under OMB 
Control Number 0348-0043).
    (2) A detailed description of the proposed project, including its 
objectives, its relationship to DOE's program, its impact on the 
environment, if any, and the applicant's plan for carrying it out.
    (3) Detailed information about the background and experience of the 
recipients of funds or, as appropriate, the principal investigator(s) 
(including references to publications), the facilities and experience of 
the applicant, and the cost-sharing arrangements, if any.
    (4) A detailed budget for the entire proposed period of support with 
written justification sufficient to evaluate the itemized list of costs 
provided on the entire project. Applicants should note the following 
when preparing budgets:
    (i) Numerical details on items of cost provided by State and local 
government and Indian tribal government applicants shall be on Standard 
Form 424A, ``Budget Information for Non-Construction Programs'' 
(approved under OMB Control No. 0348-0044). All other applicants shall 
use budget forms ERF 4620.1 (approved by OMB under Control No. 1910-
1400).
    (ii) DOE may, subsequent to receipt of an application, request 
additional budgetary information from an applicant when necessary for 
clarification or make informed pre-award determinations under 10 CFR 
part 600.
    (5) Any pre-award assurances required pursuant to 10 CFR parts 600 
and 602.
    (c) Applications for a renewal award must be submitted with an 
original and seven copies, except that State and local governments and 
Indian tribal government applicants are required to submit only an 
original and two copies (Approved by OMB under OMB Control Numbers 0348-
00050348-0009.)
    (d) The application must be signed by an official who is authorized 
to act for the applicant organization and to commit the applicant to 
comply with the terms and conditions of the award, if one is issued, or 
if unaffiliated, by the individual applicant. (See Sec. 602.17(a)(1) for 
requirements on continuation awards.)
    (e) DOE may return an application that does not include all 
information and documentation required by statute, this part, 10 CFR 
part 600, or the notice of availability, when the nature of the omission 
precludes review of the application.
    (f) During the review of a complete application, DOE may request the 
submission of additional information only if the information is 
essential to evaluate the application.
    (g) In addition to including the information described in paragraphs 
(b), (c), and (d) of this section, an application for a renewal award 
must be submitted no later than 6 months before the expiration of the 
project period and must be on the same forms as required for initial 
applications. The renewal application must outline and justify a program 
and budget for the proposed project period, showing in detail the 
estimated cost of the proposed project, together with an indication of 
the amount of cost sharing, if any. The application shall also describe 
and explain the reasons for any change in the scope or objectives of the 
proposed project and shall compare and explain any difference between 
the estimates in the proposed budget and actual costs experienced as of 
the date of the application.
    (h) DOE is not required to return an application to the applicant.
    (i) Renewal applications must include a separate section that 
describes the results of work accomplished through the date of the 
renewal application and how such results relate to the activities 
proposed to be undertaken in the renewal period.

[[Page 180]]



Sec. 602.9  Application evaluation and selection.

    (a) Applications shall be evaluated for funding generally within 6 
months, but in any event no later than 12 months, from the date of 
receipt by DOE. After DOE has held an application for 6 months, the 
applicant may, in response to DOE's request, be required to revalidate 
the terms of the original application.
    (b) DOE shall perform an initial evaluation of all applications to 
ensure that the information required by this part is provided, that the 
proposed effort is technically sound and feasible, and that the effort 
is consistent with program funding priorities. For applications that 
pass the initial evaluation, DOE shall review and evaluate each 
application received based on the criteria set forth below and in 
accordance with the Office of Environment, Safety and Health Merit 
Review System developed, as required, under DOE Financial Assistance 
Regulations, 10 CFR part 600.
    (c) DOE shall select evaluators on the basis of their professional 
qualifications and expertise. To ensure credible and inclusive peer 
review of applications, every effort will be made to select evaluators 
apart from DOE employees and contractors. Evaluators shall be required 
to comply with all applicable DOE rules or directives concerning the use 
of outside evaluators.
    (d) DOE shall evaluate new and renewal applications based on the 
following criteria that are listed in descending order of importance:
    (1) The scientific and technical merit of the proposed research;
    (2) The appropriateness of the proposed method or approach;
    (3) Competency of research personnel and adequacy of proposed 
resources;
    (4) Reasonableness and appropriateness of the proposed budget; and
    (5) Other appropriate factors consistent with the purpose of this 
part established and set forth in a Notice of Availability or in a 
specific solicitation.
    (e) DOE shall also consider as part of the evaluation other 
available advice or information, as well as program policy factors, such 
as ensuring an appropriate balance among the program areas listed in 
Sec. 602.5 of this part.
    (f) In addition to the evaluation criteria set forth in paragraphs 
(d) and (e) of this section, DOE shall consider the recipient's 
performance under the existing award during the evaluation of a renewal 
application.
    (g) Selection of applications for award will be based upon the 
findings of the technical evaluations (including peer reviews, as 
specified in the Office of Environment, Safety and Health Merit Review 
System), the importance and relevance of the proposal to the Office of 
Environment, Safety and Health's mission, and the availability of funds. 
Cost reasonableness and realism will also be considered.
    (h) After the selection of an application, DOE may, if necessary, 
enter into negotiations with an applicant. Such negotiations are not a 
commitment that DOE will make an award.



Sec. 602.10  Additional requirements.

    (a) A recipient performing research or related activities involving 
the use of human subjects must comply with DOE regulations in 10 CFR 
part 745, ``Protection of Human Subjects,'' and any additional 
provisions that may be included in the special terms and conditions of 
an award.
    (b) A recipient performing research involving recombinant DNA 
molecules and/or organisms and viruses containing recombinant DNA 
molecules shall comply with the National Institutes of Health 
``Guidelines for Research Involving Recombinant DNA Molecules'' (51 FR 
16958, May 7, 1986), or such later revision of those guidelines, as may 
be published in the Federal Register. (The guidelines are available from 
the Office of Recombinant DNA Activities, National Institutes of Health, 
Building 31, Room BBB, Bethesda, MD 20892, or from the Office of 
Epidemiology and Health Surveillance, (EH-42), U.S. Department of 
Energy, Washington, DC 20585).
    (c) A recipient performing research on warm-blooded animals shall 
comply with the Federal Laboratory Animal Welfare Act of 1966, as 
amended (7 USC 2131 et seq.), and the regulations promulgated thereunder 
by the Secretary

[[Page 181]]

of Agriculture at 9 CFR chapter I, subchapter A, pertaining to the care, 
handling, and treatment of warm-blooded animals held or used for 
research, teaching, or other activities supported by Federal awards. The 
recipient shall comply with the guidelines described in the Department 
of Health and Human Services Publication No. [NIH] 86-23, ``Guide for 
the Care and Use of Laboratory Animals,'' or succeeding revised 
editions. (This guide is available from the Office for Protection from 
Research Risks, Office of the Director, National Institutes of Health, 
Building 31, Room 4B09, Bethesda, MD 20892, or from the Office of 
Epidemiology and Health Surveillance, (EH-42), U.S. Department of 
Energy, Washington, DC 20585).



Sec. 602.11  Funding.

    (a) The project period during which DOE expects to provide support 
for an approved project under this part shall generally not exceed 3 
years and may exceed 5 years only if DOE makes a renewal award or 
otherwise extends the award. The project period shall be specified on 
the Notice of Financial Assistance Grant (DOE Form 4600.1).
    (b) Each budget period of an award under this part shall generally 
be 12 months and may be as much as 24 months, as DOE deems appropriate.



Sec. 602.12  Cost sharing.

    Cost sharing is not required, nor will it be considered, as a 
criterion in the evaluation and selection process unless otherwise 
provided under Sec. 602.9(d)(5).



Sec. 602.13  Limitation of DOE liability.

    Awards made under this part are subject to the requirement that the 
maximum DOE obligation to the recipient is the amount shown in the 
Notice of Financial Assistance Award as the amount of DOE funds 
obligated. DOE shall not be obligated to make any additional, 
supplemental, continuation, renewal, or other award for the same or any 
other purpose.



Sec. 602.14  Fee.

    (a) Notwithstanding 10 CFR part 600, a fee may be paid, in 
appropriate circumstances, to a recipient that is a small business 
concern, as qualified under the criteria and size standards of 13 CFR 
part 121, in order to permit the concern to participate in the 
Epidemiology and Other Health Studies Financial Assistance Program. 
Whether or not it is appropriate to pay a fee shall be determined by the 
contracting officer, who shall, at a minimum, apply the following 
guidelines:
    (1) Whether the acceptance of an award will displace other work that 
the small business is currently engaged in or committed to assume in the 
near future; or
    (2) Whether the acceptance of an award will, in the absence of 
paying a fee, cause substantial financial distress to the business. In 
evaluating financial distress, the contracting officer shall balance 
current displacement against reasonable future benefit to the company. 
(If the award will result in the beneficial expansion of the existing 
business base of the company, then no fee would generally be 
appropriate.) Fees shall not be paid to other entities except as a 
deviation from 10 CFR part 600, nor shall fees be paid under awards in 
support of conferences.
    (b) To request a fee, a small business concern shall submit with its 
application a written self-certification that it is a small business 
concern qualified under the criteria and size standards in 13 CFR part 
121. In addition, the application must state the amount of fee requested 
for the entire project period and the basis for requesting the amount 
and must also state why payment of a fee by DOE would be appropriate.
    (c) If the contracting officer determines that payment of a fee is 
appropriate under paragraph (a) of this section, the amount of fee shall 
be that determined to be reasonable by the contracting officer. The 
contracting officer shall, at a minimum, apply the following guidelines 
in determining the fee amount:
    (1) The fee base shall include the estimated allowable cost of 
direct salaries and wages and allocable fringe benefits. This fee base 
shall exclude all other direct and indirect costs.
    (2) The fee amount expressed as a percentage of the appropriate fee 
base, pursuant to paragraph (c)(1) of this section, shall not exceed the 
percentage

[[Page 182]]

rate of fee that would result if a Federal agency contracted for the 
same amount of salaries, wages, and allocable fringe benefits under a 
cost reimbursement contract.
    (3) Fee amounts, determined pursuant to paragraphs (c)(1) and (c)(2) 
of this section, shall be appropriately reduced when:
    (i) Advance payments are provided; and/or
    (ii) Title to property acquired with DOE funds vests in the 
recipient (10 CFR part 600).
    (d) Notwithstanding 10 CFR part 600, any fee awarded shall be a 
fixed fee and shall be payable on an annual basis in proportion to the 
work completed, as determined by the contracting officer, upon 
satisfactory submission and acceptance by DOE of the progress report. If 
the project period is shortened due to termination, or the project 
period is not fully funded, the fee shall be reduced by an appropriate 
amount.



Sec. 602.15  Indirect cost limitations.

    Awards issued under this part for conferences and scientific/
technical meetings will not include payment for indirect costs.



Sec. 602.16  National security.

    Activities under the Epidemiology and Other Health Studies Financial 
Assistance Program are not expected to involve classified information 
(i.e., Restricted Data, Formerly Restricted Data, National Security 
Information). However, if in the opinion of the recipient or DOE such 
involvement becomes expected prior to the closeout of the award, the 
recipient or DOE shall notify the other in writing immediately. If the 
recipient believes any information developed or acquired may be 
classified, the recipient shall not provide the potentially classified 
information to anyone, including DOE officials with whom the recipient 
normally communicates, except the Director of Declassification, and 
shall protect such information as if it were classified until notified 
by DOE that a determination has been made that it does not require such 
handling. Correspondence that includes the specific information in 
question shall be sent by registered mail to the U.S. Department of 
Energy, Attn: Director of Declassification, NN-50, Washington, DC 20585. 
If the information is determined to be classified, the recipient may 
wish to discontinue the project, in which case the recipient and DOE 
shall terminate the award by mutual agreement. If the award is to be 
terminated, all material deemed by DOE to be classified shall be 
forwarded to DOE in a manner specified by DOE for proper disposition. If 
the recipient and DOE wish to continue the award, even though classified 
information is involved, the recipient shall be requested to obtain both 
personnel and facility security clearances through the Office of 
Safeguards and Security for Headquarters awards or from the cognizant 
field office Division of Safeguards and Security for awards obtained 
through DOE field organizations. Costs associated with handling and 
protecting any such classified information shall be negotiated at the 
time that the determination to proceed is made.



Sec. 602.17  Continuation funding and reporting requirements.

    (a) A recipient shall periodically report to DOE on the project's 
progress in meeting the project objectives of the award. The following 
types of reports shall be used:
    (1) Progress Reports. After issuance of an initial award, recipients 
must submit a satisfactory progress report to receive a continuation 
award for the remainder of the project period. The original and two 
copies of the required report must be submitted to the Office of 
Environment, Safety and Health program manager 90 days prior to the 
anticipated continuation funding date. The report should include results 
of work to date and emphasize findings and their significance to the 
field, and any real or anticipated problems. The report also should 
contain the following information: On the first page, provide the 
project title, principal investigator/project director name, period of 
time the report covers, name and address of recipient organization, DOE 
award number, the amount of unexpended funds, if any, that are 
anticipated to be left at the end of the current budget period. If the 
amount exceeds 10 percent of the funds available

[[Page 183]]

for the budget period, provide information as to why the excess funds 
are anticipated to be available and how they will be used in the next 
budget period. The report should state whether the aims have changed 
from the original application, and if they have, provide revised aims. A 
completed budget page must be submitted with the continuation progress 
report when a change to anticipated future costs will exceed 25 percent 
of the original recommended future budget.
    (2) Notice of Energy Research and Development (R&D) Project. A 
Notice of Energy R&D Project, DOE Form 1430.22, which summarizes the 
purpose and scope of the project, must be submitted in accordance with 
the Distribution and Schedule of Documents set forth in Appendix A to 
this part, Schedule of Renewal Applications and Reports. Copies of the 
form may be obtained from a DOE contracting office.
    (3) Special Reports. The recipient shall report the following events 
to DOE as soon after they occur as possible:
    (i) Problems, delays, or adverse conditions that will materially 
affect the ability to attain project objectives or prevent the meeting 
of time schedules and goals. The report must describe remedial action 
that the recipient has taken, or plans to take, and any action DOE 
should take to alleviate the problems.
    (ii) Favorable developments or events that enable meeting time 
schedules and goals sooner, or a lower cost than anticipated, or 
producing more beneficial results than originally projected.
    (4) Final Report. A final report covering the entire project must be 
submitted by the recipient within 90 days after the project period ends 
or the award is terminated. Satisfactory completion of an award will be 
contingent upon the receipt of this report. The final report shall 
follow the same outline as progress reports. Recipients will provide, as 
part of the final report, a description of records and data compiled 
during the project, along with a plan for its preservation or 
disposition (see Sec. 602.19 of this part). All manuscripts prepared for 
publication should be appended to the final report.
    (5) Financial Status Report (FSR) (OMB No. 0348-0039). The FSR is 
required within 90 days after completion of each budget period. For 
budget periods exceeding 12 months, an FSR is also required within 90 
days after this first 12 months unless waived by the contracting 
officer.
    (b) DOE may extend the deadline date for any report if the recipient 
submits a written request before the deadline, that adequately justifies 
an extension.
    (c) A table summarizing the various types of reports, time for 
submission, and number of copies is set forth in appendix A to this 
part. The schedule of reports shall be as prescribed in this table, 
unless the award document specifies otherwise. These reports shall be 
submitted by the recipient to the awarding office.
    (d) DOE, or its authorized representatives, may make site visits, at 
any reasonable time, to review the project. DOE may provide such 
technical assistance as may be requested.
    (e) Recipients may place performance reporting requirements on a 
subrecipient consistent with the provisions of this section.



Sec. 602.18  Dissemination of results.

    (a) Recipients are encouraged to disseminate research results 
promptly. DOE reserves the right to utilize, and have others utilize to 
the extent it deems appropriate, the reports resulting from research 
awards.
    (b) DOE may waive the technical reporting requirement of progress 
reports set forth in Sec. 602.17, if the recipient submits to DOE a copy 
of its own report that is published or accepted for publication in a 
recognized scientific or technical journal and that satisfies the 
information requirements of the program.
    (c) Recipients are urged to publish results through normal 
publication channels in accordance with the applicable provisions of 10 
CFR part 600.
    (d) The article shall include an acknowledgement that the project 
was supported, in whole or in part, by a DOE award, and specify the 
award number, but state that such support does not constitute an 
endorsement by DOE of the views expressed in the article.

[[Page 184]]



Sec. 602.19  Records and data.

    (a) In some cases, DOE will require submission of certain project 
records or data to facilitate mission-related activities. Recipients, 
therefore, must take adequate steps to ensure proper management, 
control, and preservation of all project records and data.
    (b) Awardees must ensure that all project data is adequately 
documented. Documentation shall:
    (1) Reference software used to compile, manage, and analyze data;
    (2) Define all technical characteristics necessary for reading or 
processing the records;
    (3) Define file and record content and codes;
    (4) Describe update cycles or conditions and rules for adding or 
deleting information; and
    (5) Detail instrument calibration effects, sampling and analysis, 
space and time coverage, quality control measures, data algorithms and 
reduction methods, and other activities relevant to data collection and 
assembly.
    (c) Recipients agree to comply with designated DOE records and data 
management requirements, including providing electronic data in 
prescribed formats and retention of specified records and data for 
eventual transfer to the Comprehensive Epidemiologic Data Resource or to 
another repository, as directed by DOE. Recipients will provide, as part 
of the final report, a description of records and data compiled during 
the project along with a plan for its preservation or disposition.
    (d) Recipients agree to make project records and data available as 
soon as possible when requested by DOE.

  Appendix A to Part 602--Schedule of Renewal Applications and Reports  
------------------------------------------------------------------------
                                                               Number of
                                                                 copies 
               Type                          When due             for   
                                                                awarding
                                                                 office 
------------------------------------------------------------------------
1. Summary: 200 words on scope and  Immediately after a grant          3
 purpose (Notice of Energy R.D       is awarded and with each           
 Project).                           application for renewal.           
2. Renewal period ends............  6 months before the                8
                                     budget.                            
3. Progress Report period (or as    90 days prior to the next          3
 part of a renewal application).     budget period.                     
4. Other progress reports, brief    As deemed appropriate by           3
 topical reports, etc. (Designated   DOE or the recipient.              
 when significant results develop                                       
 or when work has direct                                                
 programmatic impact).                                                  
5. Reprints, Conference...........  Same as 4. above.........          3
6. Final report of the project....  Within 90 days after               3
                                     completion.                        
7. Financial Status Report (FSR)..  Within 90 days after              3 
                                     completion of the                  
                                     project period; for                
                                     budget periods exceeding           
                                     12 months an FSR is also           
                                     required within 90 days            
                                     after the first 12-month           
                                     period.                            
------------------------------------------------------------------------
Note: Report types 5 and 6 require with submission two copies of DOE    
  Form 1332.16, University-Type Contractor and Grantee Recommendations  
  for Disposition of Scientific and Technical Document.                 



PART 605--THE OFFICE OF ENERGY RESEARCH FINANCIAL ASSISTANCE PROGRAM--Table of Contents




Sec.
605.1  Purpose and scope.
605.2  Applicability.
605.3  Definitions.
605.4  Deviations.
605.5  The Office of Energy Research Financial Assistance Program.
605.6  Eligibility.
605.7  [Reserved]
605.8  Solicitation.
605.9  Application requirements.
605.10  Application evaluation and selection.
605.11  Additional requirements.
605.12  Funding.
605.13  Cost sharing.
605.14  Limitation of DOE liability.
605.15  Fee.
605.16  Indirect cost limitations.
605.17  [Reserved]
605.18  National security.
605.19  Continuation funding and reporting requirements.
605.20  Dissemination of results.

Appendix A to Part 605--Energy Research Program Office Descriptions

    Authority: Section 31 of the Atomic Energy Act, as amended, Pub. L. 
83-703, 68 Stat. 919 (42 U.S.C. 2051); sec. 107 of the Energy 
Reorganization Act of 1974, Pub. L. 93-438, 88 Stat. 1240 (42 U.S.C. 
5817); Federal Nonnuclear Energy Research and Development

[[Page 185]]

Act of 1974, Pub. L. 93-577, 88 Stat. 1878 (42 U.S.C. 5901 et seq.); 
secs. 644 and 646 of the Department of Energy Organization Act, Pub. L. 
95-91, 91 Stat. 599 (42 U.S.C. 7254 and 7256); Federal Grant and 
Cooperative Agreement Act, as amended (31 U.S.C. 6301 et seq.).

    Source: 57 FR 40583, Sept. 3, 1992, unless otherwise noted.



Sec. 605.1  Purpose and scope.

    This part sets forth the policies and procedures applicable to the 
award and administration of grants and cooperative agreements by the DOE 
Office of Energy Research (ER) and the Science and Technology Advisor 
(STA) Organization for basic and applied research, educational and/or 
training activities, conferences and related activities.



Sec. 605.2  Applicability.

    (a) This part applies to all grants and cooperative agreements 
awarded after the effective date of this amended rule.
    (b) Except as otherwise provided by this part, the award and 
administration of grants and cooperative agreements shall be governed by 
10 CFR part 600 (DOE Financial Assistance Rules).



Sec. 605.3  Definitions.

    In addition to the definitions provided in 10 CFR part 600, the 
following definitions are provided for purposes of this part--
    Basic and applied research means basic and applied research and that 
part of development not related to the development of specific systems 
or products. The primary aim of research is scientific study and 
experimentation directed toward advancing the state of the art or 
increasing knowledge or understanding rather than focusing on a specific 
system or product.
    Educational/Training means support for education or related 
activities for an individual or organization that will enhance education 
levels and skills in particular scientific or technical areas of 
interest to DOE.
    Principal investigator means the scientist or other individual 
designated by the recipient to direct the project.
    Recipient obligation means the amounts of orders placed, contracts 
and subawards issued, services received, and similar transactions during 
a given period that will require payment by the recipient during the 
same or a future period.
    Related conference means scientific or technical conferences, 
symposia, workshops or seminars for the purpose of communicating or 
exchanging information or views pertinent to ER/STA.
    Special purpose equipment means equipment which is used only for 
research, medical, scientific, educational, or other related project 
activity.



Sec. 605.4  Deviations.

    Single-case deviations from this part may be authorized in writing 
by the Director or Deputy Director of ER or the Head of a Contracting 
Activity upon the written request of DOE staff, an applicant for an 
award, or a recipient. A request from an applicant or a recipient must 
be submitted to or through the cognizant contracting officer. Whenever a 
proposed deviation from this part would be a deviation from 10 CFR part 
600, the deviation must also be authorized in accordance with the 
procedures prescribed in that part.



Sec. 605.5  The Office of Energy Research Financial Assistance Program.

    (a) DOE may issue, under the Office of Energy Research Financial 
Assistance Program, 10 CFR part 605, awards for basic and applied 
research, educational/training activities, conferences, and other 
related activities under the ER program areas set forth in paragraph (b) 
of this section and described in appendix A of this part.
    (b) The Program areas are:
    (1) Basic Energy Sciences
    (2) Field Operations Management
    (3) Fusion Energy
    (4) Health and Environmental Research
    (5) High Energy and Nuclear Physics
    (6) Scientific Computing Staff
    (7) Superconducting Super Collider
    (8) University and Science Education Programs
    (9) Program Analysis; and
    (10) Other program areas of interest as may be described in a notice 
of availability published in the Federal Register.

[[Page 186]]



Sec. 605.6  Eligibility.

    Any university or other institution of higher education or other 
non-profit or for-profit organization, non-Federal agency, or entity is 
eligible for a grant or cooperative agreement. An unaffiliated 
individual also is eligible for a grant or cooperative agreement.



Sec. 605.7  [Reserved]



Sec. 605.8  Solicitation.

    (a) The Catalog of Federal Domestic Assistance number for this 
program is 81.049, and its solicitation control number is ERFAP 10 CFR 
part 605.
    (b) An application for a new or renewal award under this 
solicitation may be submitted at any time to DOE at the address 
specified in paragraph (c) of this section. New or renewal applications 
shall receive consideration for funding generally within 6 months but, 
in any event, no later than 12 months from the date of receipt by DOE.
    (c) Applicants may obtain application forms, described in 
Sec. 605.9(b), and additional information from the Acquisition and 
Assistance Management Division, Office of Energy Research, ER-64, 
Department of Energy, Washington, DC 20585, (301) 903-5544, and shall 
submit applications to the same address.
    (d) DOE shall publish annually, in the Federal Register, a notice of 
the availability of the Office of Energy Research Financial Assistance 
Program. DOE shall also publish notices or abbreviated notices of 
availability in trade and professional journals, and news media, and use 
other means of communication, as appropriate.
    (1) Each notice of availability shall cite this part and shall 
include:
    (i) The Catalog of Federal Domestic Assistance number and 
solicitation control number of the program;
    (ii) The amount of money available or estimated to be available for 
award;
    (iii) The name of the responsible DOE program official to contact 
for additional information, and an address where application forms may 
be obtained;
    (iv) The address for submission of applications; and
    (v) Any evaluation criteria in addition to those set forth in 
Sec. 605.10.
    (2) The notice of availability may also include any other relevant 
information helpful to applicants such as:
    (i) Program objectives,
    (ii) A project agenda or potential areas for project initiatives,
    (iii) Problem areas requiring additional effort, and
    (iv) Any other information which identifies areas in which grants or 
cooperative agreements may be made.
    (e) DOE is under no obligation to pay for any costs associated with 
the preparation or submission of applications.
    (f) DOE reserves the right to fund, in whole or in part, any, all, 
or none of the applications submitted.
    (g) To be considered for a renewal award under this part, an 
incumbent recipient shall submit a renewal application as provided in 
Sec. 605.9 (c) and (h).



Sec. 605.9  Application requirements.

    (a) An original and seven copies of the application for initial 
support must be submitted except that State governments, local 
governments, or Indian tribal governments shall not be required to 
submit more than the original and two copies of the application.
    (b) Each new or renewal application in response to this part must 
include:
    (1) An application face page, DOE Form 4650.2 (approved by OMB under 
OMB Control No. 1910-1400). However, the facesheet of the application 
for State and local governments and Indian tribal government applicants 
shall be the facesheet of Standard Form (SF) 424 (approved by OMB under 
OMB Control Number 0348-0043).
    (2) A detailed description of the proposed project, including the 
objectives of the project, in relationship to DOE's program and the 
applicant's plan for carrying it out;
    (3) Detailed information about the background and experience of the 
principal investigator(s) (including references to publications), the 
facilities and experience of the applicant, and the cost-sharing 
arrangements, if any.
    (4) A detailed budget for the entire proposed period of support with 
written justification sufficient to evaluate the itemized list of costs 
provided on the entire project.

[[Page 187]]

    (i) Numerical details on items of cost provided by State and local 
government and Indian tribal government applicants shall be on Standard 
Form 424A, Budget Information for Non-Construction Programs (approved 
under OMB Control No. 0348-0044). All other applicants shall use budget 
form ERF 4620.1 (approved by OMB under Control No. 1910-1400).
    (ii) DOE may, subsequent to receipt of an application, request 
additional budgetary information from an applicant when necessary for 
clarification or to make informed preaward determinations under 10 CFR 
part 600.
    (5) Any preaward assurances required pursuant to 10 CFR parts 600 
and 605.
    (c) Applications for a renewal award must be submitted in an 
original and seven copies, except that State governments, local 
governments, or Indian tribes are required to submit only an original 
and two copies. (Approved by OMB under OMB Control Numbers 0348-0005--
0348-0009).
    (d) The application must be signed by an official who is authorized 
to act for the applicant organization and to commit the applicant to 
comply with the terms and conditions of the award, if one is issued, or 
if unaffiliated, by the individual applicant. (See Sec. 605.19(a)(1) for 
requirements on continuation awards.)
    (e) All applications which involve research, development, or 
demonstration activities when such activities:
    (1) Have a unique geographic focus and are directly relevant to the 
governmental responsibilities of a State or local government within the 
geographic area;
    (2) Necessitate the preparation of an Environmental Impact Statement 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq. (1976)); or
    (3) Are to be initiated at a particular site or location and require 
unusual measures to limit the possibility of adverse exposure or hazard 
to the general public, are subject to the provisions of Executive Order 
12372 and 10 CFR part 1005.

Anyone planning to submit such applications should contact ER for 
further information about compliance requirements.
    (f) DOE may return an application which does not include all 
information and documentation required by statute, this part, 10 CFR 
part 600 or the notice of availability, when the nature of the omission 
precludes review of the application.
    (g) During the review of the complete application, DOE may request 
the submission of additional information only if the information is 
essential to evaluate the application.
    (h) In addition to including the information described in paragraphs 
(b), (c), and (d) of this section, an application for a renewal award 
must be submitted no later than six months prior to the scheduled 
expiration of the project period and must be on the same forms and 
include the same type of information as that required for initial 
applications. The renewal application must outline and justify a program 
and budget for the proposed project period, showing in detail the 
estimated cost of the proposed project, together with an indication of 
the amount of funds needed and the amount of cost sharing, if any. The 
application also shall describe and explain the reasons for any change 
in the scope or objectives of the proposed project, and shall compare 
and explain any difference between the estimates in the proposed budget 
and actual costs experienced as of the date of the application.
    (i) DOE is not required to return to the applicant an application 
which is not selected or funded.
    (j) Renewal applications must include a separate section that 
describes the results of work accomplished through the date of the 
renewal application and how such results relate to the activities 
proposed to be undertaken in the renewal period.



Sec. 605.10  Application evaluation and selection.

    (a) Applications shall be evaluated for funding generally within 6 
months but, in any event, no later than 12 months from the date of 
receipt by DOE. After DOE has held an application for 6 months, the 
applicant may, in response to DOE's request, be required to revalidate 
the terms of the original application.

[[Page 188]]

    (b) DOE staff shall perform an initial evaluation of all 
applications to ensure that the information required by this part is 
provided, that the proposed effort is technically sound and feasible, 
and that the effort is consistent with program funding priorities. For 
applications which pass the initial evaluation, DOE shall review and 
evaluate each application received based on the criteria set forth below 
and in accordance with the Merit Review System developed as required 
under DOE Financial Assistance Regulations, 10 CFR part 600.
    (c) DOE shall select evaluators on the basis of their professional 
qualifications and expertise. Evaluators shall be required to comply 
with all applicable DOE rules or directives concerning the use of 
outside evaluators.
    (d) DOE shall evaluate new and renewal applications based on the 
following criteria which are listed in descending order of importance:
    (1) Scientific and/or technical merit or the educational benefits of 
the project;
    (2) Appropriateness of the proposed method or approach;
    (3) Competency of applicant's personnel and adequacy of proposed 
resources;
    (4) Reasonableness and appropriateness of the proposed budget; and
    (5) Other appropriate factors established and set forth by ER in a 
notice of availability or in a specific solicitation.
    (e) Also, DOE shall consider, as part of the evaluation, other 
available advice or information as well as program policy factors such 
as ensuring an appropriate balance among the program areas listed in 
Sec. 605.5(b) of this part.
    (f) In addition to the evaluation criteria set forth in paragraphs 
(d) and (e) of this section, DOE shall consider the recipient's 
performance under the existing award during the evaluation of a renewal 
application.
    (g) Selection of applications for award will be based upon the 
findings of the technical evaluations, the importance and relevance of 
the proposed application to ER's mission, and fund availability. Cost 
reasonableness and realism will also be considered to the extent 
appropriate.
    (h) After the selection of an application, DOE may, if necessary, 
enter into negotiation with an applicant. Such negotiations are not a 
commitment that DOE will make an award.



Sec. 605.11  Additional requirements.

    (a) A recipient performing research, development, or related 
activities involving the use of human subjects must comply with DOE 
regulations in 10 CFR part 745, ``Protection of Human Subjects,'' and 
any additional provisions which may be included in the Special Terms and 
Conditions of an award.
    (b) A recipient performing research involving recombinant DNA 
molecules and/or organisms and viruses containing recombinant DNA 
molecules shall comply with the National Institutes of Health 
``Guidelines for Research Involving Recombinant DNA Molecules'' (51 FR 
16958, May 7, 1986), or such later revision of those guidelines as may 
be published in the Federal Register. (The guidelines are available from 
the Office of Recombinant DNA Activities, National Institutes of Health, 
Building 31, room 4B11, Bethesda, Maryland 20892.)
    (c) Any recipient performing research on warm-blooded animals shall 
comply with the Federal Laboratory Animal Welfare Act of 1966, as 
amended (7 U.S.C. 2131 et seq.) and the regulations promulgated 
thereunder by the Secretary of Agriculture at 9 CFR chapter I, 
subchapter A, pertaining to the care, handling, and treatment of warm 
blooded animals held or used for research, teaching, or other activities 
supported by Federal awards. The recipient shall comply with the 
guidelines described in DHHS Publication No. [NIH] 86-23, ``Guide for 
the Care and Use of Laboratory Animals,'' or succeeding revised 
editions. (This guide is available from the Office for Protection from 
Research Risks, Office of the Director, National Institutes of Health, 
Building 31, room 4B09, Bethesda, Maryland 20205.)



Sec. 605.12  Funding.

    (a) The project period during which DOE expects to provide support 
for an approved project under this part shall generally not exceed 3 
years and may

[[Page 189]]

exceed 5 years only if DOE makes a renewal award or otherwise extends 
the award. The project period shall be specified on the Notice of 
Financial Assistance Award (DOE Form 4600.1).
    (b) Each budget period, of an award under this part, shall generally 
be 12 months and may be as much as 24 months as determined appropriate 
by ER.



Sec. 605.13  Cost sharing.

    Cost sharing is not required nor will it be considered as a 
criterion in the evaluation and selection process unless otherwise 
provided under Sec. 605.10(d)(5).



Sec. 605.14  Limitation of DOE liability.

    Awards under this part are subject to the requirement that the 
maximum DOE obligation to the recipient is the amount shown in the 
Notice of Financial Assistance Award as the amount of DOE funds 
obligated. DOE shall not be obligated to make any additional, 
supplemental, continuation, renewal or other awards for the same or any 
other purpose.



Sec. 605.15  Fee.

    (a) Notwithstanding 10 CFR part 600, a fee may be paid, in 
appropriate circumstances, to a recipient which is a small business 
concern as qualified under the criteria and size standards of 13 CFR 
part 121 in order to permit the concern to participate in the ER 
Financial Assistance Program. Whether or not it is appropriate to pay a 
fee shall be determined by the Contracting Officer who shall, at a 
minimum, apply the following guidelines:
    (1) Whether the acceptance of an award will displace other work the 
small business is currently engaged in or committed to assume in the 
near future; or
    (2) Whether the acceptance of an award will, in the absence of 
paying a fee, cause substantial financial distress to the business. In 
evaluating financial distress, the Contracting Officer shall balance 
current displacement against reasonable future benefit to the company. 
(If the award will result in the beneficial expansion of the existing 
business base of the company, then no fee would generally be 
appropriate.) Fees shall not be paid to other entities except as a 
deviation from 10 CFR part 600, nor shall fees be paid under awards in 
support of conferences.
    (b) To request a fee, a small business concern shall submit with its 
application a written self certification that it is a small business 
concern qualified under the criteria and size standards in 13 CFR part 
121. In addition, the application must state the amount of fee requested 
for the entire project period and the basis for requesting the amount, 
and must also state why payment of a fee by DOE would be appropriate.
    (c) If the Contracting Officer determines that payment of a fee is 
appropriate under paragraph (a) of this section, the amount of fee shall 
be that determined to be reasonable by the Contracting Officer. The 
Contracting Officer shall, at a minimum, apply the following guidelines 
in determining the fee amount:
    (1) The fee base shall include the estimated allowable cost of 
direct salaries and wages and allocable fringe benefits. This fee base 
shall exclude all other direct and indirect costs.
    (2) The fee amount expressed as a percentage of the appropriate fee 
base pursuant to paragraph (c)(1) of this section, shall not exceed the 
percentage rate of fee that would result if a Federal agency contracted 
for the same amount of salaries, wages, and allocable fringe benefits 
under a cost reimbursement contract.
    (3) Fee amounts, determined pursuant to paragraphs (c)(1) and (c)(2) 
of this section, shall be appropriately reduced when:
    (i) Advance payments are provided; and/or
    (ii) Title to property acquired with DOE funds vests in the 
recipient (10 CFR part 600).
    (d) Notwithstanding 10 CFR part 600, any fee awarded shall be a 
fixed fee and shall be payable on an annual basis in proportion to the 
work completed, as determined by the Contracting Officer, upon 
satisfactory submission and acceptance by DOE of the progress report. If 
the project period is shortened due to termination, or the project 
period is not fully funded, the fee shall be reduced by an appropriate 
amount.

[[Page 190]]



Sec. 605.16  Indirect cost limitations.

    Awards issued under this part for conferences and scientific/
technical meetings will not include payment for indirect costs.



Sec. 605.17  [Reserved]



Sec. 605.18  National security.

    Activities under ER's Financial Assistance Program shall not involve 
classified information (i.e., Restricted Data, formerly Restricted Data, 
National Security Information). However, if in the opinion of the 
recipient or DOE such involvement becomes expected prior to the closeout 
of the award, the recipient or DOE shall notify the other in writing 
immediately. If the recipient believes any information developed or 
acquired may be classifiable, the recipient shall not provide the 
potentially classifiable information to anyone, including the DOE 
officials with whom the recipient normally communicates, except the 
Director of Classification, and shall protect such information as if it 
were classified until notified by DOE that a determination has been made 
that it does not require such handling. Correspondence which includes 
the specific information in question shall be sent by registered mail to 
U.S. Department of Energy, Attn: Director of Classification, DP-32, 
Washington, DC 20585. If the information is determined to be classified, 
the recipient may wish to discontinue the project in which case the 
recipient and DOE shall terminate the award by mutual agreement. If the 
award is to be terminated, all material deemed by DOE to be classified 
shall be forwarded to DOE, in a manner specified by DOE, for proper 
disposition. If the recipient and DOE wish to continue the award, even 
though classified information is involved, the recipient shall be 
required to obtain both personnel and facility security clearances 
through the Office of Safeguards and Security for Headquarters awards, 
or from the cognizant field office Division of Safeguards and Security 
for awards obtained through DOE field organizations. Costs associated 
with handling and protecting any such classified information shall be 
negotiated at the time that the determination to proceed is made.



Sec. 605.19  Continuation funding and reporting requirements.

    (a) A recipient shall periodically report to DOE on the project's 
progress in meeting the project objectives of the award. The following 
types of reports shall be used:
    (1) Progress reports. After issuance of an initial award and if 
future support is recommended, recipients must submit a satisfactory 
progress report in order to receive continuation awards for the 
remainder of the project period. The original and two copies of the 
required report (generally not to exceed two pages per project or task) 
must be submitted to the ER program manager 90 days prior to the 
anticipated continuation funding date and contain the following 
information: on the first page, provide the project title, principal 
investigator/project director name, period of time report covers, name 
and address of recipient organization, DOE award number, the amount of 
unexpended funds, if any, that are anticipated to be left at the end of 
the current budget period, and if the amount exceeds 10 percent of the 
funds available for the budget period, provide information as to why the 
excess funds are anticipated to be available and how they will be used 
in the next budget period. Report should state whether aims have changed 
from original application and if they have, provided revised aims. 
Include results of work to date. Emphasize findings and their 
significance to the field, and any real or anticipated problems. A 
completed budget page must be submitted with the continuation progress 
report when a change to anticipated future costs will exceed 25 percent 
of the original recommended future budget.
    (2) Notice of Energy R&D Project. A Notice of Energy R&D Project, 
DOE Form 1430.22, which summarizes the purpose and scope of the project, 
must be submitted in accordance with the Distribution and Schedule of 
Documents set forth at the end of this section. Copies of the form may 
be obtained from a DOE Contracting Office.

[[Page 191]]

    (3) Special reports. The recipient shall report the following events 
to DOE as soon after they occur as possible:
    (i) Problems, delays, or adverse conditions which will materially 
affect the ability to attain project objectives, or prevent the meeting 
of time schedules and goals. The report must describe the remedial 
action the recipient has taken or plans to take and any action DOE 
should take to alleviate the problems.
    (ii) Favorable developments or events which enable meeting time 
schedules and goals sooner or at less cost than anticipated or producing 
more beneficial results than originally projected.
    (4) Final report. A final report summarizing the entire 
investigation must be submitted by the recipient within 90 days after 
the final project period ends or the award is terminated. Satisfactory 
completion of an award will be contingent upon the receipt of this 
report. The final report shall follow the same outline as a progress 
report. Manuscripts prepared for publication should be appended.
    (5) Financial status report (FSR) (OMB No. 0348-0039). The FSR is 
required within 90 days after completion of each budget period; for 
budget periods exceeding 12 months, an FSR is also required within 90 
days after this first 12 months unless waived by the Contracting 
Officer.
    (b) DOE may extend the deadline date for any report if the recipient 
submits a written request before the deadline which adequately justifies 
an extension.
    (c) A table summarizing the various types of reports, time for 
submission, number of copies is set forth below. The schedule of reports 
shall be as prescribed in this table, unless the award document 
specifies otherwise.
    (d) DOE review of performance. DOE or its authorized representatives 
may make site visits, at any reasonable time, to review the project. DOE 
may provide such technical assistance as may be requested.
    (e) Subrecipient progress reporting. Recipients may place progress 
reporting requirements on a subrecipient consistent with the provisions 
of this section.

                 Distribution and Schedule of Documents                 
------------------------------------------------------------------------
                                                               Number of
                                                               copies to
                Type                          When due             be   
                                                               submitted
------------------------------------------------------------------------
1. Summary: 200 words on scope and    Immediately after award          3
 purpose (Notice of Energy R.D         and with each                    
 Project).                             application for                  
                                       renewal.                         
2. Renewal..........................  6 months before the              8
                                       project period ends.             
3. Progress Report..................  90 days prior to the             3
                                       next budget period (or           
                                       as part of a renewal             
                                       application).                    
4. Other progress reports, brief      As deemed appropriate            3
 topical reports, etc. (Designated     by the recipient.                
 when significant results develop or                                    
 when work has direct programmatic                                      
 impact).                                                               
5. Reprints, Conference papers......  Same as 4 above........          3
6. Final Report.....................  Within 90 days after             3
                                       termination of the               
                                       project.                         
7. Financial Status Report. (FSR)...  Within 90 days after             3
                                       completion of the                
                                       project period; for              
                                       budget periods                   
                                       exceeding 12 months an           
                                       FSR is also required             
                                       within 90 days after             
                                       the first 12-month               
                                       period.                          
------------------------------------------------------------------------
Note: Report types 5 and 6 require with submission two copies of DOE    
  Form 1332.16, University-Type Contractor and Grantee Recommendations  
  for Disposition of Scientific and Technical Document.                 



Sec. 605.20  Dissemination of results.

    (a) Recipients are encouraged to disseminate project results 
promptly. DOE reserves the right to utilize, and have others utilize, to 
the extent it deems appropriate, the reports resulting from awards.
    (b) DOE may waive progress reporting requirements set forth in 
Sec. 605.19, if the recipient submits to DOE a copy of its own report 
which is published or accepted for publication in a recognized 
scientific or technical journal and which satisfies the information 
requirements of the program.
    (c) Recipients are urged to publish results through normal 
publication channels in accordance with the applicable provisions of 10 
CFR part 600.
    (d) The article shall include an acknowledgment that the project was 
supported, in whole or in part, by a DOE award, and specify the award 
number, but state that such support

[[Page 192]]

does not constitute an endorsement by DOE of the views expressed in the 
article.

 Appendix A to Part 605--The Energy Research Program Office Descriptions

                        1. Basic Energy Sciences

    This program supports basic science research efforts in a variety of 
disciplines to broaden the energy supply and technological base 
knowledge. The major science division and its objectives are as follows:

                         (a) Energy Biosciences

    The primary objective of this program is to generate a basis of 
understanding of fundamental biological mechanisms in the areas of 
botanical and microbiological sciences that will support biotechnology 
development related to energy. The research serves as the basic 
information foundation with respect to renewable resource productivity 
for fuels and chemicals, microbial conversions or renewable materials 
and biological systems for the conservation of energy. This office has 
special requirements on the submission of preapplications, when to 
submit, and the length of the preapplication/application; applicants are 
encouraged to contact the office regarding these requirements.

                          (b) Chemical Sciences

    This program sponsors experimental and theoretical research on 
liquids, gases, plasmas, and solids. The focus is on their chemical 
properties and the interactions of their component molecules, atoms, 
ions, and electrons. The subprogram objective is to expand, through 
support of basic research, our knowledge in the various areas of 
chemistry; the long-term goal is to contribute to new or improved 
processes for developing and using domestic energy resources in an 
efficient and environmentally sound manner. Disciplinary areas covered 
include physical, organic, and inorganic chemistry; chemical physics; 
atomic physics; photochemistry; radiation chemistry; thermodynamics; 
thermophysics; separations science; analytical chemistry; and actinide 
chemistry.

                             (c) Geosciences

    The goal of this program is to develop a quantitative and predictive 
understanding of the energy-related aspects of processes within the 
earth and at the solar-terrestrial interface. The emphasis is on the 
upper levels of the earth's crust and the focus is on geophysics and 
geochemistry of rock-fluid systems and interactions. Specific topical 
areas receiving emphasis include: High resolution geophysical imaging; 
fundamental properties of rocks, minerals, and fluids; scientific 
drilling; and sedimentary basin systems. The resulting improved 
understanding and knowledge base are needed to assist efforts in the 
utilization of the Nation's energy resources in an environmentally 
acceptable fashion.

                        (d) Engineering Research

    This program's objectives are: (1) To extend the body of knowledge 
underlying current engineering practice in order to open new ways for 
enhancing energy savings and production, prolonging useful equipment 
life, and reducing costs while maintaining output and performance 
quality; and (2) to broaden the technical and conceptual base for 
solving future engineering problems in the energy technologies. Long-
term research topics of current interest include: foundations of 
bioprocessing of fuels and energy related wastes, fracture mechanics, 
experimental and theoretical studies of multiphase flows, intelligent 
machines, and diagnostics and control for plasma processing of 
materials.

                         (e) Materials Sciences

    The objective of this program is to increase the understanding of 
phenomena and properties important to materials behavior that will 
contribute to meeting the needs of present and future energy 
technologies. It is comprised of the subfields metallurgy, ceramics, 
solid state physics, materials chemistry, and related disciplines where 
the emphasis is on the science of materials.

                      (f) Advanced Energy Projects

    The objective of this program is to support exploratory research on 
novel concepts related to energy. The concepts may be in any field 
related to energy but must not fall into an area of programmatic 
responsibility of an existing ER technical program. The research is 
usually aimed at establishing the scientific feasibility of a concept 
and, where appropriate, at estimating its economic viability.

                     2. Field Operations Management

    This office administers special purpose support programs that cut 
across DOE program areas. In conjunction with this activity, it supports 
related conferences, research, and training initiatives that further 
these areas of interest.

               (a) Laboratory Technology Transfer Program

    The ER Laboratory Technology Transfer (LTT) Program has dedicated 
funding which fulfills the legislative mandate to more effectively 
transfer research and technology from Energy Research laboratories to 
industry. By design, this program provides only partial funding for 
technology research projects and personnel exchanges with industry and 
universities. Mandatory cost-sharing

[[Page 193]]

by industry and other partners ensures that cooperative projects will 
focus on those that generate real interest in the private sector and 
facilitate the transfer of technology. The program supports laboratory-
industry personnel exchanges; comprehensive program evaluation; and 
cost-shared technology research, especially CRADAs to advance 
precompetitive research projects to a point where they can be evaluated 
for commercial applications. Other activities of the ER Laboratory 
Technology Transfer Program include coordinating technology transfer 
operations throughout the ER laboratory system; coordinating technology 
transfer elements of the institutional planning process; contributing to 
Departmental technology transfer policy development; and implementing 
appropriate outreach activities.

                            3. Fusion Energy

    The magnetic fusion energy program is an applied research and 
development program whose goal is to develop the scientific and 
technological information required to design and construct magnetic 
fusion energy systems. This goal is pursued by three divisions, whose 
major functions are listed below.

                    (a) Applied Plasma Physics (APP)

    This Division seeks to develop that body of physics knowledge which 
permits advancement of the fusion program on a sound basis. APP research 
programs provide: (1) The theoretical understanding of fusion plasmas 
necessary for interpreting results from present experiments, and the 
planning and design of future confinement devices; (2) the data on 
plasma properties, atomic physics and new diagnostic techniques for 
operational support of confinement experiments; research and development 
of Heavy Ion Fusion Accelerator (HIFAR) and reactor studies in support 
of the development of Inertial Fusion Energy (IFE).

                         (b) Confinement Systems

    This Division has as its primary objective the conduct of research 
efforts to investigate and resolve basic physics issues associated with 
medium- to large-scale confinement devices. These devices are used to 
experimentally explore the limits of specific confinement concepts as 
well as to study associated physical phenomena. Specific areas of 
interest include: the production of increased plasma densities and 
temperatures; the understanding of the physical laws governing plasma 
energy transport and confinement scaling; equilibrium and stability of 
high plasma pressure; the investigation of plasma interaction with 
radio-frequency waves; and the study and control of particle transport 
in the plasma.

                     (c) Development and Technology

    This Division supports research and development of the technology 
necessary for fabrication and operation of present and future plasma and 
fusion devices. The program also pursues R&D and system studies 
pertaining to critical feasibility issues of fusion technology and 
development.

                  4. Health and Environmental Research

    The goals of this research program are as follows: (1) To provide, 
through basic and applied research, the scientific information required 
to identify, understand and anticipate the long-term health and 
environmental consequences of energy use and development; and (2) to 
utilize the Department's unique resources to solve major scientific 
problems in medicine, biology and the environment. The goals of the 
program are accomplished through the effort of its divisions, which are:

              (a) Health Effects and Life Sciences Research

    This is a broad program of basic and applied biological research. 
The objectives are: (1) To develop experimental information from 
biological systems for estimating or predicting risks of carcinogenesis, 
mutagenesis, and delayed toxicological effects associated with low level 
human exposures to energy-related radiations and chemicals; (2) to 
define mechanisms involved in the induction of biological damage 
following exposure to low levels of energy-related agents; (3) to 
develop new technologies for detecting and quantifying latent health 
effects associated with such agents; (4) to support fundamental research 
in structural biology user facilities at DOE laboratories; and (5) to 
create and apply new technologies and resources for characterizing the 
molecular nature of the human genome.
    Increasing emphasis will be placed on: Understanding of mechanisms 
by which low level exposures to radiation and/or energy-related 
chemicals produce long-term health impacts; development of new 
technologies for estimating human health risks from low level exposures; 
development and application of technologies and approaches for cost-
effective characterization of the human genome.

            (b) Medical Applications and Biophysical Research

    The objectives of this program comprise several areas: (1) To 
develop new concepts and techniques for detecting and measuring 
hazardous physical and chemical agents related to energy production; (2) 
to evaluate chemical and radiation exposures and dosimetry for health 
protection application; (3) to determine the physical and chemical 
mechanisms of radiation action in biological systems; and (4) to develop 
new instrumentation and technology for biological and biomedical

[[Page 194]]

research. In addition, Medical Application research is aimed at 
enhancing the beneficial applications of radiation, and radionuclides, 
in the diagnosis, study, and treatment of human diseases. This includes 
the development of new techniques for radioactive isotope production, 
labeled pharmaceuticals, imaging devices, and radiation beam 
applications for the improved diagnosis and therapy of human diseases or 
the study of human physiological processes. A new area of interest 
involves the integration of Nuclear Medicine and Molecular Biology. This 
includes development of radioisotopes and new molecular 
radiopharmaceutical probes specific to disease-associated targets for 
improved diagnosis and therapy.

                       (c) Environmental Sciences

    The objectives of the program relate to environmental processes 
affected by energy production and use. For example, the program develops 
information on the physical, chemical and biological processes that 
cycle and transport energy related material and nutrients through the 
atmosphere, and the ocean margin. Specific emphasis is placed on 
hydrological transport, mobility and degradation of energy-related 
contaminants by microorganisms in subsurface systems.
    This program also addresses global environmental change from 
increases in atmospheric carbon dioxide and other greenhouse gases. The 
scope of the global change program encompasses the carbon cycle, climate 
modeling and diagnostics, ecosystem responses, the role of the ocean in 
global change and experiments to quantify the links between greenhouse 
gas increases and climate change. A new dimension of this program 
addresses the role of molecular biology in understanding the ecosystem 
response to global change.

                   5. High Energy and Nuclear Physics

    This program supports 90 percent of the U.S. efforts in high energy 
and nuclear physics. The objectives of these programs are indicated 
below:

          (a) Nuclear Physics (Including Nuclear Data Program)

    The primary objectives of this program are an understanding of the 
interactions and structures of atomic nuclei and nuclear matter at the 
most elementary level possible, and an understanding of the fundamental 
forces of nature as manifested in nuclear matter.

                         (b) High Energy Physics

    The primary objectives of this program are to understand the nature 
and relationships among fundamental forces of nature and to understand 
the ultimate structure of matter in terms of the properties and 
interrelations of its basic constituents.

                      6. Scientific Computing Staff

    The goal of this program is to advance the understanding of the 
fundamental concepts of mathematics, statistics, and computer science 
underlying the complex mathematical models of the key physical processes 
involved in the research and development programs of DOE. Broad emphasis 
is given in three major categories: analytical and numerical methods, 
information analysis techniques, and advanced concepts.

                 7. Superconducting Super Collider (SSC)

    The goals of the Superconducting Super Collider are to build a 
proton-proton collider with an energy of 20 TeV per proton, to construct 
and operate experimental systems to study the interactions of these 
protons, to establish the premier international laboratory for high 
energy physics reasearch, and to create a major resource for science 
education. The Office of the Superconducting Super Collider administers 
research grants associated with the SSC Laboratory's physics, 
accelerator, and associated technology research and development 
programs.

                   8. University and Science Education

    The Office of University and Science Education supports a variety of 
science, mathematics and engineering education precollege through 
postgraduate programs aimed at strengthening the Nation's science 
education and research infrastructure. DOE's education mission has been 
expanded to include increasing emphasis on the precollege and general 
public literacy areas. Much of the support involves the use of the 
unique resources (scientists, facilities and equipment) at DOE's 
national laboratories and research facilities, and includes research 
and/or other ``hands-on'' opportunities for precollege and postsecondary 
students, teachers, and faculty members. In addition to programs 
centered in DOE facilities, a number of other educational activities are 
supported, including:

               (a) Pre-Freshman Enrichment Program (PREP)

    PREP supports projects at colleges and universities aimed at seeking 
out gindividuals, typically under-represented in science-based careers, 
during junior high school and early high school years (sixth through 
tenth grades) and providing these individuals with pre-freshman 
enrichment activities to identify, motivate and prepare them for 
science-based careers. Projects must include concentrated, integrated 
activities that enhance the student's understanding of science and 
mathematics, must have a summer component at least four

[[Page 195]]

weeks in length, and may also include a pre-summer or post-summer 
component.

                  (b) Museum Science Education Program

    This program funds museum projects that support the development of 
the media of informal energy-related science education. The media of 
informal science education include, but are not limited to: Interactive 
exhibits, demonstrations, hands-on activities, teacher-student 
curriculum and film/video/software productions. Examples of energy-
related subjects include, but are not limited to: high energy and 
nuclear physics, nuclear science and technologies, global warming, waste 
management, energy efficiency, new materials development, fossil energy 
resources, renewable technologies, risk assessment, energy/environment 
and other timely topics. The purpose of the program is the development 
and use of creative informal science education media which focus on 
energy-related science and technology.

             (c) University Research Instrumentation Program

    The University Research Instrumentation Program has been developed 
as part of an interagency effort under the coordination of the Office of 
Science and Technology Policy to help alleviate the overall shortage of 
sophisticated state-of-the-art instruments required for advanced 
scientific and technical research at universities. The overall program 
objective is to assist university and college scientists in 
strengthening their capabilities to conduct long-range experimental/
scientific research in specific energy areas of direct interest to DOE 
through the acquisition of large scientific/technical pieces of 
equipment. Only those colleges and universities that currently have DOE 
funded research projects, which require the requested equipment, 
totalling at least $150,000 in the specific area will be selected (more 
complete eligibility guidelines and principal research areas of 
particular DOE interest in any given year are available from the program 
office). Smaller research instruments (less than $100,000 each) are not 
eligible for consideration in this program. No specific fraction of cost 
sharing is required but the level of non-Federal funds to be provided 
will be considered in final selection of awards under the program.

       (d) Experimental Program To Stimulate Competitive Research

    The purpose of the DOE Experimental Program to Stimulate Competitive 
Research is to enhance the capabilities of the eligible designated 
States to develop science and engineering manpower in energy-related 
areas and to conduct nationally competitive energy-related research. 
Planning committees within eligible States may apply for planning, 
implementation and/or training efforts (list of eligible States and 
activities to be supported in any given year as well as cost-sharing 
requirements are available from the program office). Separate 
applications for planning/implementation and graduate traineeships are 
required. Planning/implementation applications must contain information 
that details development of a State-wide improvement plan for energy-
related research and human resources, while training grant applications 
must detail the need for energy-related specific and technical 
educational disciplines.

                    (e) Nuclear Engineering Research

    The objective of this program is to support research efforts aimed 
at strengthening University-based nuclear engineering programs. Specific 
areas of basic and applied research of interest include, but are not 
limited to: (1) Material behavior in a radiation environment typical of 
advanced nuclear power plants; (2) real-time instrumentation that 
identifies and applies innovative measurements technologies in nuclear-
related fields; (3) advanced nuclear reactor concepts; (4) applied 
nuclear sciences that address improvements in the applications of 
radiation and the understanding of the interaction of radiation with 
matter; (5) engineering science research applicable to advanced nuclear 
reactor concepts, industry safety and reliability concerns; (6) 
neutronics that address improvements in reactor computational 
methodologies and knowledge of the basic fission processes; and (7) 
nuclear thermal hydraulics that address improvements of models and 
analysis of thermal hydraulic behavior in an advanced nuclear reactor 
system.

       (f) Used Energy-Related Laboratory Equipment (ERIE) Program

    In accordance with DOE's responsibility to encourage research and 
development in the energy area, grants of used energy-related laboratory 
equipment for use in energy-oriented educational programs in the life, 
physical and environmental sciences, and engineering are available to 
universities, colleges and other non-profit educational institutions of 
higher learning in the United States. An institution is not required to 
have a current DOE grant or contract in order to participate in this 
program. The program office should be contacted for specific information 
on how to access the list of eligible equipment under this program. The 
cost of care and handling incident to the grant must be borne by the 
institution.

                           9. Program Analysis

    The Office of Program Analysis conducts assessments to identify 
research opportunities in specific areas of interest to DOE programs.

[[Page 196]]



                     SUBCHAPTER I--SALES REGULATION





PART 622--CONTRACTUAL PROVISIONS--Table of Contents






Sec. 622.103  Dispute provisions.

    (a) Except as provided in paragraph (b) of this section, all DOE 
contracts for the sale of personal property to any organization outside 
the U.S. Government shall include a Disputes clause which provides for:
    (1) Binding final decisions by the Contracting Officer, subject to 
appeal;
    (2) Appeal rights pursuant to the Contract Disputes Act of 1978;
    (3) Continuation of performance by the contractor at the direction 
of the contracting officer pending final resolution of the dispute.
    (b) Exceptions:
    (1) The provisions of this part shall not apply to contracts for 
sale of electric power by the Power Marketing Administrations;
    (2) The Secretary may exempt a contract or class of contracts from 
this requirement upon determination that it would not be in the public 
interest in an individual contract or class of contracts with a foreign 
government, or agency thereof, or international organization, or 
subsidiary body thereof, to include the Disputes clause, as permitted by 
section 3 of the Contract Disputes Act of 1978.
    (c) The Energy Board of Contract Appeals (EBCA) has cognizance over 
disputes relating to DOE Sales contracts.
    (d) The Disputes clause in Sec. 624.102-4 shall be used in 
accordance with this Sec. 622.103.

(Sec. 644, Department of Energy Organization Act, Pub. L. 95-91, 91 
Stat. 599 (42 U.S.C. 7254))
[46 FR 34559, July 2, 1981]



PART 624--CONTRACT CLAUSES--Table of Contents






Sec. 624.102-4  Disputes.

    The following clause shall be used in accordance with the provisions 
of Sec. 622.103:

                                Disputes

    (a) This contract is subject to the Contract Disputes Act of 1978 
(41 U.S.C. 601 et seq.). If a dispute arises relating to the contract, 
the purchaser may submit a claim to the Contracting Officer who shall 
issue a written decision on the dispute.
    (b) Claim means:
    (1) A written request submitted to the Contracting Officer;
    (2) For payment of money, adjustment of contract terms, or other 
relief;
    (3) Which is in dispute or remains unresolved after a reasonable 
time for its review and disposition by the Government; and
    (4) For which a Contracting Officer's decision is demanded.
    (c) In the case of disputed requests or amendments to such requests 
for payment exceeding $50,000, or with any amendment causing the total 
request in dispute to exceed $50,000, the purchaser shall certify, at 
the time of submission of a claim, as follows:

    I certify that the claim is made in good faith, that the supporting 
data is accurate and complete to the best of my knowledge and belief, 
and that the amount requested accurately reflects the contract 
adjustment for which the Purchaser believes the Government is liable.

 (Purchaser's Name)_____________________________________________________

 (Title)________________________________________________________________

    (d) The Government shall pay the Purchaser interest.
    (1) On the amount found due to the purchaser and unpaid on claims 
submitted under this clause;
    (2) At the rates fixed by the Secretary of the Treasury;
    (3) From the date the amount is due until the Government makes 
payment.
    (e) The purchaser shall pay the Government interest:
    (1) On the amount found due to the Government and unpaid on claims 
submitted under this clause;
    (2) At the rates fixed by the Department of Energy for the payment 
of interest on past due accounts;
    (3) From the date the amount is due until the purchaser makes 
payment.

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    (f) The decision of the Contracting Officer shall be final and 
conclusive and not subject to review by any forum, tribunal, or 
Government agency unless an appeal or action is timely commenced within 
the times specified by the Contract Disputes Act of 1978.
    (g) The purchaser shall comply with any decision of the Contracting 
Officer and at the direction of the Contracting Officer shall proceed 
diligently with performance of this contract pending final resolution of 
any request for relief, claim, appeal, or action related to this 
contract.

(Sec. 644, Department of Energy Organization Act, Pub. L. 95-91, 91 
Stat. 599 (42 U.S.C. 7254))



PART 625--PRICE COMPETITIVE SALE OF STRATEGIC PETROLEUM RESERVE PETROLEUM--Table of Contents




Sec.
625.1  Application and purpose.
625.2  Definitions.
625.3  Standard sales provisions.
625.4  Publication of the Standard Sales Provisions.
625.5  Failure to perform in accordance with SPR Contracts of Sale.

Appendix A to Part 625--Standard Sales Provisions

    Authority: 15 U.S.C. 761; 42 U.S.C. 7101; 42 U.S.C. 6201.

    Source: 48 FR 56541, Dec. 21, 1983, unless otherwise noted.



Sec. 625.1  Application and purpose.

    This part shall apply to all price competitive sales of SPR 
petroleum by DOE. This section provides the rules for developing 
standard contract terms and conditions and financial and performance 
responsibility measures; notifying potential purchasers of those terms, 
conditions and measures; choosing applicable terms, conditions and 
measures for each sale of SPR petroleum; and notifying potential 
purchasers of which terms, conditions and measures will be applicable to 
particular sales of SPR petroleum.



Sec. 625.2  Definitions.

    (a) DOE. DOE is the Department of Energy established by Public Law 
95-91 (42 U.S.C. 7101 et seq.) and any component thereof including the 
SPR Office.
    (b) Notice of Sale. The Notice of Sale is the document announcing 
the sale of SPR petroleum, the amount, type and location of the 
petroleum being sold, the delivery period and the procedures for 
submitting offers. The Notice of Sale will specify which contractual 
provisions and financial and performance responsibility measures are 
applicable to that particular sale of petroleum, and will provide other 
pertinent information.
    (c) Petroleum. Petroleum means crude oil, residual fuel oil or any 
refined petroleum product (including any natural gas liquid and any 
natural gas liquid product) owned or contracted for by DOE and in 
storage in any permanent SPR facility, or temporarily stored in other 
storage facilities, or in transit to such facilities (including 
petroleum under contract but not yet delivered to a loading terminal).
    (d) Price Competitive Sale. A price competitive sale of SPR 
petroleum is one in which contract awards are made to those responsive, 
responsible persons offering the highest prices; sales conducted 
pursuant to rules adopted under section 161(e) of the Energy Policy and 
Conservation Act (EPCA), Public Law 94-163 (42 U.S.C. 6201 et seq.), are 
not price competitive sales.
    (e) Purchaser. A purchaser is any person or entity (including a 
Government agency) which enters into a contract with DOE to purchase SPR 
petroleum.
    (f) SPR. SPR is the Strategic Petroleum Reserve, that program of the 
Department of Energy established by title I, part B of EPCA.
    (g) Standard Sales Provisions. The Standard Sales Provisions are a 
set of terms and conditions of sale, which may contain or describe 
financial and performance responsibility measures, for petroleum sold 
from the SPR under this part.



Sec. 625.3  Standard sales provisions.

    (a) Contents. The Standards Sales Provisions shall contain contract 
clauses which may be applicable to price competitive sales of SPR 
petroleum, including terms and conditions of sale, and purchaser 
financial and performance responsibility measures, or descriptions 
thereof. At his discretion, the Secretary or his designee may

[[Page 198]]

specify in a Notice of Sale which of such terms and conditions, or 
financial and performance responsibility measures, shall apply to a 
particular sale of SPR petroleum; and, he may specify any revisions in 
such terms, conditions and measures, and any additional terms, 
conditions and measures which shall be applicable to that sale, that are 
consistent with the SPR Drawdown Plan adopted on December 1, 1982.
    (b) Acceptance by offerors. All offerors must, as part of their 
offers for SPR petroleum in response to a Notice of Sale, agree without 
exception to all contractual provisions and financial and performance 
responsibility measures which the Notice of Sale makes applicable to the 
particular sale.
    (c) Award of contracts. No contract for the sale of SPR petroleum 
may be awarded to any offeror who has not unconditionally agreed to all 
contractual provisions and financial and performance responsibility 
measures which the Notice of Sale makes applicable to the particular 
sale.
    (d) Contract documents. The terms and conditions which the Notice of 
Sale makes applicable to a particular sale may be incorporated into a 
contract for the sale of SPR petroleum by reference to the Notice of 
Sale.



Sec. 625.4  Publication of the Standard Sales Provisions.

    (a) Publication. The Standard Sales Provisions shall be published in 
the Federal Register and in the Code of Federal Regulations as an 
appendix to this rule.
    (b) Revisions of the Standard Sales Provisions. The Standard Sales 
Provisions shall be reviewed periodically and republished in the Federal 
Register, with any revisions.
    (c) Notification of applicable clauses. The Notice of Sale will 
specify, by referencing the Federal Register and the Code of Federal 
Regulations in which the latest version of the Standard Sales Provisions 
was published, which contractual terms and conditions and contractor 
financial and performance responsibility measures contained or described 
therein are applicable to that particular sale.



Sec. 625.5  Failure to perform in accordance with SPR Contracts of Sale.

    (a) Ineligibility. In addition to any remedies available to the 
Government under the Contract of Sale, in the event that a purchaser 
fails to perform in accordance with applicable SPR petroleum sale 
contractual provisions, and such failure is not excused by those 
provisions, the Headquarters Senior Procurement Official, at his 
discretion, may make such purchaser ineligible for future awards of SPR 
petroleum sales contracts.
    (b) Determination of ineligibility. No purchaser shall be made 
ineligible for the award of any SPR sales contract prior to notice and 
opportunity to respond in accordance with the requirements of this 
subsection.
    (1) Upon the determination that a purchaser is to be considered for 
ineligibility, the purchaser shall be sent by certified mail return 
receipt requested, the following:
    (i) Notification that the Headquarters Senior Procurement Official 
is considering making the purchaser ineligible for future awards;
    (ii) Identification of the SPR sales contract which the purchaser 
failed to comply with, along with a brief description of the events and 
circumstances relating to such failure;
    (iii) Advice that the purchaser may submit in writing for 
consideration by the Headquarters Senior Procurement Official in 
determining whether or not to impose ineligibility on the purchaser, any 
information or argument in opposition to the ineligibility; and
    (iv) Advice that such information or argument in opposition to the 
ineligibility must be submitted within a certain time in order to be 
considered by the Headquarters Senior Procurement Official, such time to 
be not less than 21 days.
    (2) After elapse of the time period established under paragraph 
(b)(1) of this section for receipt of the purchaser's response, the 
Headquarters Senior Procurement Official, at his discretion, and after 
consideration of the purchaser's written response, if any, may make the 
purchaser ineligible for future awards of SPR petroleum sales contracts. 
Such ineligibility shall continue for the time period determined

[[Page 199]]

by the Headquarters Senior Procurement Official, as appropriate under 
the circumstances.
    (3) The purchaser shall be notified of the Headquarters Senior 
Procurement Official's decision.
    (c) Reconsideration. Any purchaser who has been excluded from 
participating in any SPR sale under paragraph (a) may request that the 
Headquarters Senior Procurement Offical reconsider the purchaser's 
ineligibility. The Headquarters Senior Procurement Official, at his 
discretion, may reinstate any such purchaser to eligibility for future 
competitive sales.

            Appendix A to Part 625--Standard Sales Provisions

                                  INDEX

                 Section A--General Pre-Sale Information

    A.1  List of acronyms
    A.2  Definitions
    A.3 Standard Sales Provisions
    A.4 Periodic revisions of the Standard Sales Provisions
    A.5 Potential offerors list for sales of petroleum
    A.6 Publicizing the Notice of Sale
    A.7 Penalty for false statements in offers to buy SPR petroleum

                Section B--Sales Solicitation Provisions

    B.1 Requirements for a valid offer - caution to offerors
    B.2 Certification of independent price determination
    B.3 Requirements for vessels - caution to offerors
    B.4 ``Superfund'' tax on SPR petroleum - caution to offerors
    B.5 Export limitations and licensing - caution to offerors
    B.6 Issuance of the Notice of Sale
    B.7 Submission of offers and modification of previously submitted 
offers
    B.8 Acknowledgment of amendments to a Notice of Sale
    B.9 Late offers, modifications of offers, and withdrawal of offers
    B.10 Offer guarantee
    B.11 Explanation requests from offerors
    B.12 Currency for offers
    B.13 Language of offers and contracts
    B.14 Proprietary data
    B.15 SPR crude oil streams and delivery points
    B.16 Notice of Sale line item schedule - petroleum quantity, 
quality, and delivery method
    B.17 Line item information to be provided in the offer
    B.18 Mistake in offer
    B.19 Evaluation of offers
    B.20 Procedures for evaluation of offers
    B.21 Financial statements and other information
    B.22 Resolicitation procedures on unsold petroleum
    B.23 Offeror's certification of acceptance period
    B.24 Notification of Apparently Successful Offeror
    B.25 Contract documents
    B.26 Purchaser's representative
    B.27 Procedures for selling to other U.S. Government agencies

                  Section C--Sales Contract Provisions

    C.1 Delivery of SPR petroleum
    C.2 Compliance with the ``Jones Act'' and the U.S. export control 
laws
    C.3 Storage of SPR petroleum
    C.4 Environmental compliance
    C.5 Delivery and transportation scheduling
    C.6 Contract modification - alternate delivery line items
    C.7 Application procedures for ``Jones Act'' waivers
    C.8 Vessel loading procedures
    C.9 Vessel laytime and demurrage
    C.10 Purchaser liability for excessive berth time
    C.11 Pipeline delivery procedures
    C.12 Title and risk of loss
    C.13 Acceptance of crude oil
    C.14 Price adjustments for quality differentials for crude oil
    C.15 Determination of quality of petroleum
    C.16 Determination of quantity of petroleum
    C.17 Delivery documentation
    C.18 Contract amounts for crude oil
    C.19 Payment
    C.20 Payment and performance letters of credit - general 
requirements
    C.21 Billing and payment - with purchaser's letter of credit
    C.22 Billing and payment - with purchaser's advance payment
    C.23 Replacement of funds in the payment and performance guarantee
    C.24 Method of payment - general
    C.25 Interest
    C.26 Government options if payment is not received
    C.27 Termination
    C.28 Other Government remedies
    C.29 Liquidated damages
    C.30 Failure to perform under SPR contracts
    C.31 Government options in case of impossibility of performance
    C.32 Limitation of Government liability
    C.33 Notices
    C.34 Disputes
    C.35 Assignment
    C.36 Order of precedence
    C.37 Gratuities

[[Page 200]]

    C.38 Officials not to benefit

                                EXHIBITS:

    A--SPR Sales Offer Form
    B--Sample Notice of Sale
    C--Solicitation, Offer and Award--Standard Form 33
    D--SPR Crude Oil Stream Characteristics
    E--SPR Delivery Point Data
    F--Reserved
    G--Offer Guarantee--Letter of Credit
    H--Payment and Performance Guarantee--Letter of Credit
    I--Instruction Guide for Funds Transfer Messages to Treasury
    J--Form SPRPMO-F-6110.2-14--SPR Crude Oil Delivery Report
    K--Offer Guarantee Calculation Worksheet

                Section A - General Pre-Sale Information

                         A.1  List of acronyms:

(a) ASO:   Apparently Successful Offeror
(b) DLI:   Delivery Line Item
(c) DOE:   U.S. Department of Energy
(d) MLI:   Master Line Item
(e) NA:   Notice of Acceptance
(f) NS:   Notice of Sale
(g) SSPs:   Standard Sales Provisions
(h) SPR:   Strategic Petroleum Reserve
(i) SPRCODR:   SPR Crude Oil Delivery Report (Exhibit J)
(j) SPR/PMO:   Strategic Petroleum Reserve/Project Management Office

                            A.2  Definitions

    (a)  Affiliate. The term affiliate means associated business 
concerns or individuals if, directly or indirectly, (1) either one 
controls or can control the other, or (2) a third party controls or can 
control both.
    (b)  Business Day. The term business day means any day except 
Saturday, Sunday or a U.S. Government holiday.
    (c)  Contract. The term contract means the contract under which DOE 
sells SPR petroleum. It is composed of the NS, the NA, the successful 
offer, and the SSPs incorporated by reference.
    (d)  Contracting Officer. The term Contracting Officer means the 
person executing sales contracts on behalf of the Government, and any 
other Government employee properly designated as Contracting Officer. 
The term includes the authorized representative of a Contracting Officer 
acting within the limits of his authority.
    (e)  Government. The term Government, unless otherwise indicated in 
the text, means the United States Government.
    (f)  Head of the Contracting Activity. The term Head of the 
Contracting Activity means the Manager, Oak Ridge Operations Office, 
DOE.
    (g)  Notice of Acceptance (NA). The term Notice of Acceptance means 
the document which is sent by DOE to accept the purchaser's offer to 
create a contract.
    (h)  Notification of Apparently Successful Offeror (ASO). The term 
notification of apparently successful offeror means the notice, written 
or oral, by the Contracting Officer to an offeror that it will be 
awarded a contract if it is determined to be responsible.
    (i)  Notice of Sale (NS). The term Notice of Sale means the document 
announcing the sale of SPR petroleum, the amount, characteristics and 
location of the petroleum being sold, the delivery period and the 
procedures for submitting offers. The NS will specify what contractual 
provisions and financial and performance responsibility measures are 
applicable to that particular sale of petroleum and provide other 
pertinent information. (See Exhibit B, Sample Notice of Sale)
    (j)  Offeror. The term offeror means any person or entity (including 
a government agency) which submits an offer in response to a NS.
    (k)  Petroleum. The term petroleum means crude oil, residual fuel 
oil, or any refined product (including any natural gas liquid, and any 
natural gas liquid product) owned or contracted for by DOE and in 
storage in any permanent SPR facility, temporarily stored in other 
storage facilities, or in transit to such facilities (including 
petroleum under contract but not yet delivered to a loading terminal).
    (l)  Project Management Office (SPR/PMO). The term Project 
Management Office means the DOE personnel and DOE contractors located in 
Louisiana and Texas responsible for the operation of the SPR.
    (m)  Purchaser. The term purchaser means any person or entity 
(including a government agency) which enters into a contract with DOE to 
purchase SPR petroleum.
    (n)  Standard Sales Provisions (SSPs). The term Standard Sales 
Provisions means this set of terms and conditions of sale applicable to 
price competitive sales of SPR petroleum. These SSPs constitute the 
``standard sales agreement'' referenced in the Strategic Petroleum 
Reserve ``Drawdown'' (Distribution) Plan, Amendment No. 4 (December 1, 
1982, DOE/EP 0073) to the SPR Plan.
    (o)  Strategic Petroleum Reserve (SPR). The term Strategic Petroleum 
Reserve means that DOE program established by Title I, part B of the 
Energy Policy and Conservation Act, 42 U.S.C. 6201, et seq.
    (p)  Vessel. The term vessel means a tankship, an integrated tug 
barge (ITB) system, a self-propelled barge, or other barge.

                      A.3 Standard Sales Provisions

    (a) These SSPs contain pre-sale information, sales solicitation 
provisions, and sales contract clauses setting forth terms and 
conditions of sale, including purchaser financial and performance 
responsibility measures, or

[[Page 201]]

descriptions thereof, which may be applicable to price competitive sales 
of petroleum from the SPR in accordance with the SPR Sales Rule, 10 CFR 
part 625. The NS will specify which of these provisions shall apply to a 
particular sale of such petroleum, and it may specify any revisions 
therein and any additional provisions which shall be applicable to that 
sale. (See Exhibit B, Sample Notice of Sale)
    (b)  All offerors must, as part of their offers for SPR petroleum in 
response to a NS, agree without exception to all provisions of the SSPs 
which the NS makes applicable to the particular sale. Offerors shall 
indicate their agreement by signing the Sales Offer Form (Exhibit A). 
The Government will not award a contract to an offeror which has failed 
to so agree.

         A.4 Periodic revisions of the Standard Sales Provisions

    DOE will review the SSPs periodically and republish them in the 
Federal Register, with any revisions. When a NS is issued, it will cite 
the Federal Register and the Code of Federal Regulations (if any) in 
which the latest version of the SSPs was published. Offerors are 
cautioned that the Code of Federal Regulations may not contain the 
latest version of the SSPs published in the Federal Register. Interested 
persons may obtain a copy of the current SSPs by writing to the address 
set forth in Provision No. A.5.

           A.5 Potential offerors list for sales of petroleum

    (a) The SPR/PMO will maintain a list of those potential offerors 
which wish to receive a NS whenever such a document is issued. In order 
to assure that prospective offerors will receive the NS or offer forms 
in timely fashion, all potential offerors are encouraged to submit the 
information in (d) as soon as possible. A NS may be issued with a week 
or less allowed for the receipt of offers. While DOE will use its best 
efforts to timely supply copies of the NS to persons not on the list who 
request the NS at the time an SPR petroleum sale is announced, this may 
not always be feasible in light of the short amount of time available 
before offers must be received.
    (b) Any firm or individual may send a written request to be on the 
list to the following address: U.S. Department of Energy, Strategic 
Petroleum Reserve, Project Management Office, Procurement and Sales 
Division, Mail Stop PR-651, 900 Commerce Road East, New Orleans, 
Louisiana 70123, Telephone Number (504) 734-4226.
    The envelope should be marked ``SPR Sales Mailing List.''
    (c) Copies of the SSPs and the NS, when one is issued, may also be 
obtained from this address.
    (d) A request to be placed on the mailing list should be in writing 
and should include the following information:
Name of firm
Mailing address (Street and P.O. Box) City, State, Zip Code
Name of authorized agent and alternate authorized agent
Telephone numbers for agent and alternate including area code
Agent address, if different from firm represented
TWX number/code
Telecopier brand name and model number
Whether telecopier is automatic or operator controlled
Telephone number for telecopier transmission, including area code
Telephone number for verification of message receipt, including area 
code
Employer/taxpayer identification number or social security number
Dun's number
    As DOE may use express mail which cannot be delivered to a Post 
Office Box, failure to provide a street address could result in untimely 
receipt of the NS and will be at the offeror's risk.

                   A.6 Publicizing the Notice of Sale

    (a) The NS will be sent to names on the list of potential offerors 
referenced in Provision No. A.5. Interested persons may send a 
representative to the address in Provision No. A.5 to obtain a copy of 
the NS.
    (b) In addition to those on the list of potential offerors, the NS 
will also be sent to anyone requesting it when a sale is announced. 
Firms may request the NS by telephone or in writing to the telephone 
number or address in Provision No. A.5 above.
    (c) A DOE press release, which will include the salient features of 
the NS, will be made available to all news agencies.
    (d) At the option of the Contracting Officer, advertisements may be 
placed in publications likely to reach interested parties. The 
advertisements will contain the salient features of the NS and a name 
and telephone number at the SPR/PMO to call for further information.

     A.7 Penalty for false statements in offers to buy SPR petroleum

    A penalty for making false statements is imposed in the False 
Statements Act, 18 U.S.C. 1001, which provides:
    Whoever, in any matter within the jurisdiction of any department or 
agency of the United States knowingly and willfully falsifies, conceals 
or covers up by any trick, scheme, or device a material fact, or makes 
any false, fictitious or fraudulent statements or representations, or 
makes or uses any false writing or document knowing the same to contain 
any false, fictitious or fraudulent

[[Page 202]]

statement or entry, shall be fined not more than $10,000 or imprisoned 
not more than 5 years, or both.

                Section B - Sales Solicitation Provisions

        B.1 Requirements for a valid offer - caution to offerors

    A valid offer to purchase SPR petroleum must meet the following 
conditions:
    (a) The offer guarantee (see Provision No. B.10) must be received no 
later than the time set for the receipt of offers;
    (b) The offer must include a completed Sales Offer Form (Exhibit A) 
and signed Standard Form 33 (Exhibit C) or other forms as specified in 
the NS;
    (c) The offer must be received no later than the time set for 
receipt of offers;
    (d) Any amendments to the NS which explicitly require acknowledgment 
of receipt must be properly acknowledged as provided for on Exhibit C; 
and
    (e) The offeror must agree without exception to all provisions of 
the SSPs which the NS makes applicable to a particular sale, as well as 
to all provisions in the NS.

          B.2 Certification of independent price determination

    (a) The offeror certifies that:
    (1) The prices in this offer have been arrived at independently, 
without, for the purposes of restricting competition, any consultation, 
communication, or agreement with any other offeror or competitor 
relating to: (i) those prices; (ii) the intention to submit an offer; or 
(iii) the methods or factors used to calculate the prices offered.
    (2) The prices in this offer have not been and will not be knowingly 
disclosed by the offeror, directly or indirectly, to any other offeror 
or to any competitor before the time set for receipt of offers, unless 
otherwise required by law; and
    (3) No attempt has been made or will be made by the offeror to 
induce any other concern to submit or not to submit an offer for the 
purpose of restricting competition.
    (b) Each signature on the offer is considered to be a certification 
by the signatory that the signatory:
    (1) Is the person within the offeror's organization responsible for 
determining the prices being offered, and that the signatory has not 
participated, and will not participate, in any action contrary to (a)(1) 
through (a)(3) above; or
    (2) (i) Has been authorized in writing to act as agent for the 
persons responsible for such decision in certifying that such persons 
have not participated, and will not participate, in any action contrary 
to (a)(1) through (a)(3) above; (ii) as their agent does hereby so 
certify; and (iii) as their agent has not participated, and will not 
participate, in any action contrary to (a)(1) through (a)(3) above.
    (c) An offer will not be considered for award where (a)(1), (a)(3), 
or (b) above has been deleted or modified. If the offeror deletes or 
modifies (a)(2) above, the offeror must furnish with the offer a signed 
statement setting forth in detail the circumstances of the disclosure.

           B.3 Requirements for vessels - caution to offerors

    (a) The ``Jones Act'', 46 U.S.C. 883, prohibits the transportation 
of any merchandise, including SPR petroleum, by water or land and water, 
on penalty of forfeiture thereof, between points within the United 
States (including Puerto Rico, but excluding the Virgin islands) in 
vessels other than vessels built in and documented under laws of the 
United States, and owned by United States citizens, unless the 
prohibition has been waived by the Secretary of Treasury. Further, 
certain U.S.-flag vessels built with Construction Differential Subsidies 
(CDS) are precluded by section 506 of the Merchant Marine Act of of 1936 
(46 U.S.C. 1156) from participating in U.S. coastwise trade, unless such 
prohibition has been waived by the Secretary of Transportation, the 
waiver being limited to a maximum of 6 months in any given year. CDS 
vessels may also receive Operating Differential Subsidies, requiring 
separate permission from the Secretary of Transportation for domestic 
operation, under section 805(a) of the same statute. The NS will advise 
offerors of any general waivers allowing use of non-coastwise qualified 
vessels or vessels built with Construction Differential Subsidies for a 
particular sale of SPR petroleum. If there is no general waiver, 
purchasers may request waivers in accordance with Provision No. C.7, but 
remain obligated to complete performance under this contract regardless 
of the outcome of that waiver process.
    (b) The Department of Transportation's interim rule concerning 
Reception Facility Requirements for Waste Materials Retained on Board 
(33 CFR parts 151 and 158) implements the reception facility 
requirements of the International Convention for the Prevention of 
Pollution from Ships, 1973, as modified by the 1978 Protocol relating 
thereto (MARPOL 73/78). This rule prohibits any oceangoing tankship, 
required to retain oil or oily mixtures on-board while at sea, from 
entering any port or terminal unless the port or terminal has a valid 
Certificate of Adequacy as to its oily waste reception facilities. SPR 
marine terminals (see Exhibit E, SPR Delivery Point Data) have 
Certificates of Adequacy and reception facilities for vessel sludge and 
oily bilge water wastes, all costs for which will be borne by the 
vessel. The terminals, however, may not have reception facilities for 
oily ballast. Accordingly, tankships without segregated ballast systems

[[Page 203]]

will be required to make arrangements for and be responsible for all 
costs associated with appropriate disposal of such ballast, or they will 
be denied permission to load SPR petroleum at terminals which lack 
reception facilities for oily ballast.
    (c) By submission of this offer, the offeror certifies that it will 
comply with the ``Jones Act'' and all applicable ballast disposal 
requirements.

      B.4 ``Superfund'' tax on SPR petroleum - caution to offerors

    (a) Sections 4611 and 4612 of the Internal Revenue Code which 
imposed a tax on domestic and imported petroleum to support the 
Hazardous Substance Response Fund (the ``Superfund'') have been revised 
by the Superfund Amendments and Reauthorization Act of 1986, Public Law 
No. 99-499, and the Omnibus Budget Reconciliation Act of 1986, Public 
Law No. 99-509. As amended, these sections impose taxes to finance the 
Hazardous Substance Superfund and the Oil Spill Liability Trust Fund as 
of January 1, 1987 and February 1, 1987, respectively.
    (b) Section 4611 imposes a tax of 8.2 cents a barrel for domestic 
crude oil and 11.7 cents a barrel for foreign crude oil to support the 
``Superfund'' on (1) crude oil received at a United States refinery and 
(2) petroleum products (including crude oil) entered into the United 
States for consumption, use or warehousing. In addition, section 4611 
provides for a possible additional tax of 1.3 cents a barrel for both 
foreign and domestic oil to support the Oil Spill Liability Trust Fund. 
Section 4612 provides that no tax is imposed if it is established that a 
prior tax imposed by section 4611 has already been paid with respect to 
a barrel of oil.
    (c) DOE has already paid the ``Superfund'' taxes on some of the oil 
imported and stored in the SPR. However, no ``Superfund'' tax has been 
paid on imported oil stored prior to the effective dates of these Acts 
or domestic oil stored in the SPR, nor has tax been paid into the Oil 
Spill Liability Trust Fund for any oil. Because domestic and imported 
crude oil for which no tax has been paid and imported crude oils for 
which ``Superfund'' taxes have been paid at different rates have been 
commingled in the SPR, upon drawdown of the SPR, the NS will advise 
purchasers of the tax liability.

       B.5 Export limitations and licensing - caution to offerors

    (a) Offerors for SPR petroleum are put on notice that SPR crude oils 
subject to different export control laws have been commingled in 
storage. Export of SPR crude oil is subject to U.S. export control laws, 
the provisions of which differ depending on the source and destination 
of the crude oil proposed to be exported. For example, imported crude 
oil stored in the SPR may be exported pursuant to applicable Department 
of Commerce ``Short Supply Controls,'' 15 CFR part 377, if: the export 
is part of a transaction resulting in the importation of refined 
products of a quantity and quality not less than would be derived from 
domestic refining; the products are to be sold at prices no higher than 
the lowest prices at which they could have been sold by the nearest 
capable U.S. refinery; and for compelling economic or technological 
reasons beyond the exporter's control, the crude oil cannot reasonably 
be processed in the U.S. (15 CFR 377.6(d)(1)(vii)). However, there are 
somewhat more stringent, independent statutory tests to be met as 
preconditions to the export of certain other crude oils stored in the 
SPR, including Alaskan North Slope (ANS) and Naval Petroleum Reserves 
(NPR) oil. See 7(d) of the Export Administration Act of 1979, 50 U.S.C 
App. 2406(d) (ANS oil) and 10 U.S.C. 7430(e) (NPR oil); see also 30 
U.S.C. 185(u) (oil shipped across a Mineral Lands Leasing Act Section 
28(u) right-of-way) and 43 U.S.C. 1354(a) (OCS oil).
    (b) By submission of this offer, the offeror certifies that it will 
comply with any applicable U.S. export control laws.

                   B.6 Issuance of the Notice of Sale

    In the event petroleum is sold from the SPR, DOE will issue a NS 
containing all of the pertinent information necessary for the offeror to 
prepare a priced offer. A NS may be issued with a week or less allowed 
for the receipt of offers. Offerors are expected to examine the complete 
NS document, and to become familiar with the SSPs cited therein. Failure 
to do so will be at the offeror's risk.

B.7 Submission of offers and modification of previously submitted offers

    (a) Unless otherwise provided in the NS, offers must be submitted to 
the SPR/PMO in New Orleans, Louisiana, by mail or hand-delivery. Direct 
cash deposits as offer guarantees will be sent by wire in accordance 
with Provision No. C.24.
    (b) Unless otherwise provided in the NS, offers may be modified or 
withdrawn by hand delivery, mail, telegram, or telex, provided that the 
hand delivery, mail, telegram, or telex is received at the designated 
office prior to the time specified for receipt of offers.
    (c) Envelopes containing offers and any material related to offers 
shall be plainly marked on the outside; ``RE: NS ______ FOR SALE OF 
PETROLEUM FROM STRATEGIC PETROLEUM RESERVE. OFFERS ARE DUE (insert time 
of opening), LOCAL NEW ORLEANS, LA TIME ON (insert date of opening). 
MAIL ROOM MUST MARK DATE AND TIME OF RECEIPT ON FACE OF THE ENVELOPE.'' 
Envelopes containing modified

[[Page 204]]

offers or any material related to supplements or modifications of 
offers, shall be plainly marked on the outside: ``RE: NS ______ FOR SALE 
OF PETROLEUM FROM STRATEGIC PETROLEUM RESERVE. OFFER MODIFICATION. MAIL 
ROOM MUST MARK DATE AND TIME OF RECEIPT ON FACE OF THE ENVELOPE.''
    (d) The envelope shall be marked with the full name and return 
address of the offeror.
    (e) Offers being sent by mail and modifications being sent by hand 
delivery, mail, telegram, or telex must be received at the address 
specified in the NS.
    (f) Handcarried offers brought during normal business hours on the 
day set for receipt of offers, or any day prior to that day, shall be 
taken by the offeror to the place specified in the NS. This includes 
mail being delivered by a delivery service. At all other times, 
handcarried offers shall be placed in the bid box, located as specified 
in the NS.
    (g) Public opening of offers is not anticipated unless otherwise 
indicated in the NS. An abstract of offers will be prepared and posted 
in a prominent place at the SPR/PMO in New Orleans, Louisiana, for 
public viewing no later than 48 hours after the specified time and date 
for the receipt of offers. Persons wishing to see copies of the offers 
may contact the Contracting Officer to arrange to view the copies at the 
SPR/PMO.

          B.8 Acknowledgment of amendments to a Notice of Sale

    When an amendment to a NS requires acknowledgment of receipt, 
receipt by an offeror must be acknowledged (a) by signing and returning 
the amendment; (b) by identifying the amendment number and date in the 
space provided for this purpose on Standard Form 33 (Exhibit C); or (c) 
by letter, telegram, or telex sent to the address specified in the NS. 
Such acknowledgment must be received prior to the time specified for 
receipt of offers.

   B.9 Late offers, modifications of offers, and withdrawal of offers

    (a) Any offer received at the office designated in the NS after the 
time specified for receipt will be considered only if it is received 
before award is made and only under the following conditions:
    (1) It was sent by registered or certified mail not later than the 
fifth calendar day prior to the date specified for the receipt of offers 
(e.g., an offer submitted in response to a NS requiring receipt of 
offers by the 20th of the month must have been mailed by the 15th or 
earlier); or,
    (2) It was sent by mail, telegram or telex if authorized, and it is 
determined by the Contracting Officer that the late receipt was due 
solely to mishandling by the SPR/PMO after receipt at the address 
specified in the NS.
    (b) Any modification or withdrawal of an offer is subject to the 
same conditions as in (a) above, except that it shall be mailed not less 
than the third calendar day prior to the date specified for receipt of 
offers. An offer may also be withdrawn in person by an offeror or its 
authorized representative, provided the representative's identity is 
made known and the representative signs a receipt for the offer, but 
only if the withdrawal is made prior to the time set for receipt of 
offers.
    (c) The only acceptable evidence to establish:
    (1) The date of mailing of a late offer, modification, or withdrawal 
sent either by registered or certified mail is the U.S. Postal Service 
postmark on either (i) the envelope or wrapper, or (ii) the original 
receipt from the U.S. Postal Service. If neither postmark shows a 
legible date, the offer, modification or withdrawal shall be deemed to 
have been mailed late. Post mark means a printed, stamped, or otherwise 
placed impression, exclusive of a postage meter machine impression, that 
is readily identifiable without further action as having been supplied 
and affixed on the date of mailing by employees of the U.S. Postal 
Service. Therefore, offerors should request the postal clerk to place a 
hand cancellation ``bull's-eye'' postmark on both the receipt and the 
envelope or wrapper.
    (2) The time of receipt at the address specified in the NS is the 
time/date stamp at such address on the offer's wrapper or other 
documentary evidence of receipt maintained at the place of receipt.
    (d) Notwithstanding (a) and (b) of this provision, a late 
modification of an otherwise successful offer which makes its terms more 
favorable to the Government will be considered at any time it is 
received, and may be accepted.

                          B.10 Offer guarantee

    (a) Each offeror must submit an acceptable offer guarantee for each 
offer submitted. Each offer guarantee must be received at the place 
specified for receipt of offers no later than the time and date set for 
receipt of offers.
    (b) An offeror's failure to submit a timely, acceptable guarantee 
will result in rejection of its offer.
    (c) The amount of each offer guarantee is $10 million dollars or 5 
percent of the maximum potential contract amount, whichever is less. The 
maximum potential contract amount is the sum of the products determined 
by multiplying the offer's maximum purchase quantity for each master 
line item, times the highest offer prices that the offeror would have to 
pay for that master line item if the offer were to be successful. To 
assist in this calculation, instructions and a worksheet are available 
at Exhibit K. Submission of the worksheet is not desired.

[[Page 205]]

    (d) Each offeror must submit one of the following types of offer 
guarantees with each offer:
    (1) A certified or cashier's check payable to the U.S. Department of 
Energy, drawn on a U.S. Bank;
    (2) A wire cash deposit to the account of the U.S. Treasury in 
accordance with Provision No. C.24, all wire deposit costs to be borne 
by the offeror; or
    (3) A letter of credit from a U.S. depository institution conforming 
without exception to the contents required by Exhibit G, Offer Guarantee 
- Letter of Credit, all letter of credit costs to be borne by the 
offeror.
    (e) If the offeror or bank forwards the offer guarantee separately 
from the offer, the envelope shall clearly say ``OFFER GUARANTEE OF 
(Name of Company)'' and shall be clearly marked in accordance with 
Provision No. B.7(c).
    (f) The offeror shall be liable for any amount lost by DOE due to 
the difference between the offer and the resale price, and for any 
additional resale costs incurred by DOE in the event that the offeror:
    (1) Withdraws its offer within 10 days following the time set for 
receipt of offers;
    (2) Withdraws its offer after having agreed to extend its acceptance 
period; or
    (3) Having received a notification of ASO, fails to furnish an 
acceptable payment and performance guarantee within the time limit 
specified by the Contracting Officer.
    The offer guarantee shall be used toward offsetting such price 
difference or additional resale costs. Use of the offer guarantee for 
such recovery shall not preclude recovery by DOE of damages in excess of 
the amount of the offer guarantee caused by such failure of the offeror.
    (g) Letters of credit furnished as offer guarantees must be valid 
for at least 21 calendar days after the date set for the receipt of 
offers.
    (h) Offer guarantees (except letters of credit) will be returned to 
an unsuccessful offeror 5 business days after expiration of the 
offeror's acceptance period or 3 business days after award of contracts 
for delivery line items on which the offeror submitted a price, 
whichever is first, except as provided in (i) below, and to a successful 
offeror upon receipt of a satisfactory performance and payment 
guarantee. Letters of credit will be returned only upon request. Where 
the offer guarantee was a wire cash deposit, a cashier's check or a 
certified check, the offeror may apply it toward advance payment.
    (i) If an offeror defaults on its offer, DOE will hold the offer 
guarantee so that damages can be assessed against it.

                 B.11 Explanation requests from offerors

    Offerors may request explanations regarding meaning or 
interpretation of the NS from the individual and telephone number 
indicated in the NS. On complex and/or significant questions, DOE 
reserves the right to have the offeror put the question in writing; 
explanation or instructions regarding these questions will be given as 
an amendment to the NS.

                        B.12 Currency for offers

    Prices shall be stated and invoices shall be paid in U.S. dollars.

                  B.13 Language of offers and contracts

    All offers in response to the NS and all modifications of offers 
shall be in English. All correspondence between offerors or purchasers 
and DOE shall be in English.

                          B.14 Proprietary data

    If any information submitted in connection with a sale is considered 
proprietary, that information should be so marked, and an explanation 
provided as to the reason such data should be considered proprietary. 
Any final decision as to whether the material so marked is proprietary 
will be made by DOE. DOE's Freedom of Information Act regulations 
governing the release of proprietary data shall apply.

             B.15 SPR crude oil streams and delivery points

    (a) The geographical locations of the terminals and docks 
interconnected with permanent SPR storage locations, the SPR crude oil 
streams available at each location and the delivery points for those 
streams are as follows, (see also Exhibit D, SPR Crude Oil Stream 
Characteristics, and Exhibit E, SPR Delivery Point Data):

                                                                        
------------------------------------------------------------------------
      Geographical location         Delivery points    Crude oil Streams
------------------------------------------------------------------------
Freeport, Texas.................  Phillips Terminal,  SPR Bryan Mound   
                                   or Phillips         Sweet.           
                                   Terminal No. 2     SPR Bryan Mound   
                                   Docks.              Sour.            
                                                      SPR Bryan Mound   
                                                       Maya.            
Texas City, Texas...............  ARCO Terminal, or   SPR Bryan Mound   
                                   ARCO Docks.         Sweet.           
                                                      SPR Bryan Mound   
                                                       Sour.            
Nederland, Texas................  Sun Terminal, or    SPR West Hackberry
                                   Sun Docks.          Sweet.           
                                                      SPR West Hackberry
                                                       Sour.            
St. James, Louisiana............  LOCAP Terminal, or  SPR Weeks Island  
                                   DOE St. James       Sour             
                                   Terminal Docks.    SPR Bayou Choctaw 
                                                       Sweet.           
                                                      SPR Bayou Choctaw 
                                                       Sour.            
------------------------------------------------------------------------

    (b) The NS may change delivery points and it may also include 
additional terminals, temporary storage facilities or systems utilized 
in connection with petroleum in transit

[[Page 206]]

to the SPR. Alternatively, DOE or its contractor may provide the 
transportation to the purchaser's facility, for example, when the 
petroleum is in transit to the SPR at time of sale.
    (c) The NS may contain additional information supplementing Exhibit 
E, SPR Delivery Point Data.

 B.16 Notice of Sale line item schedule - petroleum quantity, quality, 
                           and delivery method

    (a) Unless the NS provides otherwise, the possible master line items 
(MLI) and delivery line items (DLI) which may be offered are as provided 
in Exhibit A, SPR Sales Offer Form. Currently, there are eight MLIs in 
Exhibit A, one for each of the eight crude oil streams that the SPR has 
in storage. The NS may offer fewer than the eight possible MLIs.
    (b) Each MLI contains several DLIs, each of which specifies an 
available delivery method and the nominal delivery period. Offerors are 
cautioned that the NS may alter the period of time covered by each DLI. 
This is most likely to occur in the first sales period of a drawdown if 
the period of sale does not correspond to a calendar month.
    (1) DLI-A covers petroleum to be transported by pipeline, either 
common carrier or local. The nominal delivery period is one month.
    (2) DLI-B, DLI-C and DLI-D cover petroleum to be transported by 
tankships: DLI-B, covering tankships to be loaded from the 1st through 
the 10th of the month; DLI-C, tankships to be loaded from the 11th 
through the 20th; and DLI-D, tankships to be loaded from the 21st 
through the last day of the month.
    (3) DLI-E, DLI-F and DLI-G cover petroleum to be transported by 
barges (Caution: These DLIs are currently only applicable to deliveries 
of West Hackberry Sweet and Sour crude oil streams from Sun Docks): DLI-
E, covering barges to be loaded from the 1st through the 10th of the 
month; DLI-F, barges to be loaded from the 11th through the 20th; and 
DLI-G, barges to be loaded from the 21st through the last day of the 
month.
    (4) Where the storage site is connected to more than one terminal or 
pipeline (presently this only occurs at Bryan Mound) additional DLIs 
will be offered. The additional DLIs will include DLI-H, covering 
petroleum to be transported by pipeline over the period of a month; DLI-
I, covering tankships to be loaded from the 1st through the 10th; DLI-J, 
tankships to be loaded from the 11th through the 20th; and DLI-K, 
tankships to be loaded from the 21st through the last day of the month. 
The Notice of Sale will specify which DLIs are offered on each MLI.
    (c) The NS will state the total estimated number of barrels to be 
sold on each MLI. An offeror may offer to buy all or part of the 
petroleum offered on an MLI. In making awards, the Contracting Officer 
shall attempt to achieve award of the exact quantities offered by the 
NS, but may vary the estimated MLI quantities by +/-10 percent in order 
to match the DLI offers received. In addition, the Contracting Officer 
may reduce the MLI quantity available for award by any amount and reject 
otherwise acceptable offers, if he determines, in his sole discretion 
after consideration of the offers received on all of the MLIs, that 
award of those quantities is not in the best interest of the Government 
because the prices offered for them are not reasonable.
    (d) The NS will specify a minimum contract quantity for each DLI. To 
be responsive, an offer on a DLI must be for at least that quantity.
    (e) The NS will specify the maximum quantity which could be sold on 
each of the DLIs. The maximum quantity is not an indication of the 
amount of petroleum that, in fact, will be sold on that DLI. Rather, it 
represents DOE's best estimate of the maximum amount of the particular 
SPR crude oil stream that can be moved by that transportation system 
over the delivery period. The total DOE estimated DLI maximums may 
exceed the total number of barrels to be sold on that MLI, as the NS DLI 
estimates represent estimated transportation capacity, not the amount of 
petroleum offered for sale. Where necessary to avoid an unfair 
competitive advantage for local pipeline owners, e.g., where there are 
only one or two likely offerors, the NS may omit a pipeline DLI. Where 
this occurs, those offerors may bid against vessel DLIs and, if 
successful, request a contract modification under Provision No. C.6, to 
permit delivery of the awarded oil to a pipeline.
    (f) The NS will not specify what portion of the petroleum which DOE 
offers on a MLI will, in fact, be sold on any given DLI. Rather, the 
highest priced offers received on the MLI will determine the DLIs 
against which the offered petroleum is sold.
    (g) DOE will not sell petroleum on a DLI in excess of the DLI 
maximum; however, DOE reserves the right to revise its estimates at any 
time and to award or modify contracts in accordance with its revised 
estimates. Offerors are cautioned that: DOE cannot guarantee that such 
transportation capacity is available; offerors should undertake their 
own analyses of available transportation capacity; and each purchaser is 
wholly responsible for arranging all transportation other than terminal 
arrangements at the terminals listed in Provision No. B.15, which shall 
be made in accordance with Provision No. C.5. A purchaser against one 
DLI cannot change a transportation mode without prior written permission 
from DOE, although such permission will be given whenever possible, in 
accordance with Provision No. C.6.
    (h) Exhibit D, SPR Crude Oil Stream Characteristics, contains 
nominal characteristics

[[Page 207]]

for each SPR crude oil stream. Prospective offerors are cautioned that 
these data will likely change as more crude oil is stored in the SPR. 
The NS will provide, to the maximum extent practicable, the latest data 
on each stream offered.

         B.17 Line item information to be provided in the offer

    (a) Each offeror, if determined to be an ASO on a DLI, agrees to 
enter into a contract for the purchase of the quantity of petroleum in 
the offer and to take delivery of that petroleum (plus or minus 10 
percent as provided for in Provision No. C.18) in accordance with the 
terms of that contract.
    (b) An offer may be for more than one MLI. However, offerors are 
cautioned that alternate offers on different MLIs are not permitted. For 
example, an offeror may offer to purchase 1,000,000 barrels of SPR West 
Hackberry Sweet and 1,000,000 barrels of SPR West Hackberry Sour, but 
may not offer to purchase, in the alternative, either 1,000,000 barrels 
of sweet or 1,000,000 barrels of sour.
    (c) An offeror may submit more than one offer. However, separate 
forms must be prepared and each offer will be evaluated on an individual 
basis.
    (d) The following information will be provided to DOE by the offeror 
on the form in Exhibit A or other forms as required by the NS:
    (1) MLI quantity. (``MAXQ'' on the Exhibit A offer form) The offeror 
shall state the maximum quantity of each crude oil stream that the 
offeror is willing to buy.
    (2) DLI quantity. (``DESQ'') The offer shall state the number of 
barrels which the offeror will accept on each DLI, i.e., by the delivery 
mode and during the delivery period specified. The quantity stated on a 
single DLI shall not exceed the MAXQ for the MLI. The offeror shall 
designate a quantity on at least one DLI for the MLI, but may designate 
quantities on more than one DLI. If the offeror is willing to accept 
alternate DLIs, the total of its designated DLI quantities would exceed 
its maximum MLI quantity; otherwise, the total of its designated DLI 
quantities should equal its maximum MLI quantity.
    (3) DLI unit price (``UP$$'') and total price. The offer shall state 
the price per barrel for each DLI for which the offeror has designated a 
desired quantity, as well as the total price (quantity times unit 
price). Where offers have indicated quantities on more than one DLI with 
a different price on each, DOE will award the highest priced DLI first. 
If the offeror has the same price for two or more DLIs, it may indicate 
its first choice, second choice, etc., for award of those items; if the 
offeror does not indicate a preference, or indicates the same preference 
for more than one DLI, DOE may select the DLIs to be awarded at its 
discretion. Prices may be stated in hundredths of a cent ($0.0001). DOE 
shall drop from the offer and not consider any numbers of less than one 
one-hundredth of a cent.
    (4) Minimum DLI quantity acceptable. (``MINQ'') The offeror must 
choose whether to accept only the stated DLI quantity (DESQ) or, in the 
alternative, to accept any quantity awarded between the offer's stated 
DLI quantity and the minimum contract quantity for the DLI (indicated by 
the ``N'' and ``Y'' blocks respectively under ``MINQ'' on the offer 
form). However, DOE will award less than the DESQ only if the quantity 
available to be awarded is less than the DESQ. If the offer fails to 
indicate the offeror's choice, the offer will be evaluated as though the 
offeror has indicated willingness to accept the minimum contract 
quantity.
    (5) Any other data required by the NS.

                          B.18 Mistake in offer

    (a) After opening and recording offers, the Contracting Officer 
shall examine all offers for mistakes. If the Contracting Officer 
discovers any price discrepancies or quantity discrepancies, he may 
obtain from the offeror oral or written verification of the offer 
actually intended, but in any event, he shall proceed with offer 
evaluation applying the following procedures:
    (1) Price discrepancy: An offer for a DLI should contain the unit 
price per barrel being offered, the desired quantity of barrels to which 
the unit price applies, and an extension price which is the total of the 
quantity desired multiplied by the unit price offered. If there is a 
discrepancy between the unit price and the extension price, the unit 
price will govern and be recorded as the offer, unless it is clearly 
apparent on the face of the offer that there has been a clerical error, 
in which case the Contracting Officer may correct the offer.
    (2) Quantity discrepancy: In case of conflict between the maximum 
MLI quantity and the stated DLI quantities (for example, where a single 
stated DLI quantity exceeds the corresponding maximum MLI quantity), the 
lesser quantity will govern in the evaluation of the offer. In the event 
that the offer fails to specify a maximum MLI quantity, the offer will 
be evaluated as though the largest stated DLI quantity was the offer's 
maximum MLI quantity.
    (b) In cases where the Contracting Officer has reason to believe a 
mistake not covered by the procedures set forth in (a) may have been 
made, he shall request from the offeror a verification of the offer, 
calling attention to the suspected mistake. The Contracting Officer may 
telephone the offeror and confirm the request by telex. The Contracting 
Officer may set a limit of as little as 6 hours for telephone response, 
with any required written documentation to be received within

[[Page 208]]

as little as 2 business days. If no response is received, the 
Contracting Officer may determine that no error exists and proceed with 
offer evaluation.
    (c) The Head of the Contracting Activity will make administrative 
determinations described in (1) and (2) below if an offeror alleges a 
mistake after opening of offers and before award.
    (1) The Head of the Contracting Activity may refuse to permit the 
offeror to withdraw an offer, but permit correction of the offer if 
clear and convincing evidence establishes both the existence of a 
mistake and the offer actually intended. However, if such correction 
would result in displacing one or more higher acceptable offers, the 
Head of the Contracting Activity shall not so determine unless the 
existence of the mistake and the offer actually intended are 
ascertainable substantially from the NS and offer itself.
    (2) The Head of the Contracting Activity may determine that an 
offeror shall be permitted to withdraw an offer in whole, or in part if 
only part of the offer is affected, without penalty under the offer 
guarantee, where the offeror requests permission to do so and clear and 
convincing evidence establishes the existence of a mistake, but not the 
offer actually intended.
    (d) In all cases where the offeror is allowed to make verbal 
corrections to the original offer, confirmation of these corrections 
must be received in writing within the time set by the Contracting 
Officer or the original offer will stand as submitted.

                        B.19 Evaluation of offers

    (a) The Contracting Officer will be the determining official as to 
whether an offer is responsive to the SSPs and the NS. DOE reserves the 
right to reject any or all offers and to waive minor informalities or 
irregularities in offers received.
    (b) A minor informality or irregularity in an offer is an 
inconsequential defect the waiver or correction of which would not be 
prejudicial to other offerors. Such a defect or variation from the 
strict requirements of the NS is inconsequential when its significance 
as to price, quantity, quality or delivery is negligible.

                B.20 Procedures for evaluation of offers

    (a) Award on each DLI will be made to the highest responsible 
offerors which submit offers responsive to the SSPs and the NS and which 
have provided the required payment and performance guarantee as required 
by Provision No. C.19.
    (b) DOE will array all price offers on an MLI from highest to lowest 
for award evaluation regardless of DLI. However, DOE will award against 
the DLIs and will not award a greater quantity on a DLI than DOE's 
estimate (which is subject to change at any time) of the maximum 
quantity that can be moved by the delivery method. Selection of the 
apparently successful offer involves the following steps:
    (1) Any offers below the minimum acceptable price, if any minimum 
price has been established for the sale, will be rejected as 
nonresponsive.
    (2) All offers on each MLI will be arrayed from highest price to 
lowest price.
    (3) The highest offers will be reviewed for responsiveness to the 
NS.
    (4) In the event the highest offer does not take all the crude oil 
available on the MLI, sequentially, the next highest offer will be 
selected until all of the petroleum offered on the MLI is awarded or 
there are no more acceptable offers. In the event that acceptance of an 
offer against an MLI or a DLI would result in the sale of more petroleum 
on an MLI than DOE has offered or the sale of more petroleum on a DLI 
than DOE estimates can be delivered by the specified delivery method, 
DOE will not award the full amount of the offer, but rather the 
remaining MLI quantity or DLI capacity, provided such portion exceeds 
DOE's minimum contract quantity. In the event that the quantity 
remaining is less than the offeror is willing to accept, but more than 
DOE's minimum contract quantity, the Contracting Officer shall proceed 
to the next highest offer.
    (5) In the event of tied offers and an insufficient quantity 
available on the MLI or insufficient capacity on the DLI to fully award 
all tied offers, the available MLI quantity or DLI capacity remaining 
will be allotted pro rata among the tied offers using the following 
formula:

                                                                                                                
                                                                                                                
                                         The quantity the                                                       
                                      offeror is willing to                                                     
                                       purchase at the tied                                                     
                                              price                                                             
                                    -------------------------          the quantity or                          
                                        The sum of all the     x    capacity remaining to                       
                                       quantities the tied               be allotted                            
                                     offerors are willing to                                                    
                                       purchase at the tied                                                     
                                              price                                                             
                                                                                                                

    If after application of this formula, the pro rata share of any 
offeror is less than 90 percent of the quantity which the offeror is 
willing to accept (as indicated in the offer), the Contracting Officer 
in his sole discretion may do one or more of the following: (i) make 
additional quantity or capacity available and increase the offeror's 
share to its minimum acceptable quantity; (ii) contact the offeror to 
determine whether alternative delivery arrangements can be made, 
permitting the offeror to accept his prorata share; (iii) eliminate the 
offeror and recalculate the shares of all remaining offerors; or (iv) 
not award that offeror's prorata share. If any quantities remain after 
this process, the

[[Page 209]]

Contracting Officer may elect not to award those quantities, or to award 
those quantities in accordance with Provision No. B.22.
    (6) The Contracting Officer may reduce the MLI quantity available 
for award by any amount and reject otherwise acceptable offers, if in 
his sole discretion he determines, after consideration of the offers 
received on all of the MLIs, that award of those quantities is not in 
the best interest of the Government because the prices offered for them 
are not reasonable.
    (7) Determinations of ASO responsibility will be made by the 
Contracting Officer before each award. All ASOs will be notified by 
telephone and advised to provide to the Contracting Officer, within five 
business days or such other longer time as the Contracting Officer shall 
determine, a letter of credit (see Exhibit H, Payment and Performance 
Guarantee - Letter of Credit) or advance payment as specified in 
Provision No. C.19. Compliance with required payment and performance 
guarantees will effectively assure a finding of responsibility of 
offerors, except where: (i) an offeror is on either DOE's or the Federal 
Government's list of debarred, ineligible and suspended bidders; or (ii) 
evidence, with respect to an offeror, comes to the attention of the 
Contracting Officer of conduct or activity which represents a violation 
of law or regulation (including an Executive Order having the force and 
effect of law); or (iii) evidence is brought to the attention of the 
Contracting Officer of past activity or conduct of an offeror which 
shows a lack of integrity (including actions inimical to the welfare of 
the United States) or willingness to perform, so as to substantially 
diminish the Contracting Officer's confidence in the offeror's 
performance under the proposed contract.

             B.21 Financial statements and other information

    (a) As indicated in Provision No. B.20(b)(7) above, compliance with 
the required payment and performance guarantee will in most instances 
effectively assure a finding of responsibility. Therefore, DOE does not 
intend to ask for financial information from all offerors. However, 
after receipt of offers, but prior to making award, DOE reserves the 
right to ask for the audited financial statements for an offeror's most 
recent fiscal year and unaudited financial statements for any subsequent 
quarters. These financial statements must include a balance sheet and 
profit and loss statement for each period covered thereby. A 
certification by a principal accounting officer that there have been no 
material changes in financial condition since the date of the audited 
statements, and that these present the true financial condition as of 
the date of the offer, shall accompany the statements. If there has been 
a change, the amount and nature of the change must be specified and 
explained in the unaudited statements and a principal accounting officer 
shall certify that they are accurate. The Contracting Officer shall set 
a deadline for receipt of this information.
    (b) DOE also reserves the right to require information from the 
offeror regarding its plans for use of the petroleum, the status of 
requests for export licenses, plans for complying with the Jones Act, 
etc. The Contracting Officer shall set a deadline for receipt of this 
information.

           B.22 Resolicitation procedures on unsold petroleum

    (a) In the event that petroleum offered on an MLI remains unsold 
after evaluation of all offers, the Contracting Officer, at his option, 
may issue an amendment to the NS, resoliciting offers from all 
interested parties. DOE reserves the right to alter the MLIs and/or 
offer different MLIs in the resolicitation.
    (b) In the event that for any reason petroleum which has been 
awarded or allotted for award becomes available to DOE for resale, the 
Contracting Officer may use the following procedures:
    (1) If priced offers remain valid in accordance with Provision No. 
B.23, the petroleum will go to the next highest ranked offer.
    (2) If offers have expired in accordance with Provision No. B.23, 
the Contracting Officer at his option may offer the petroleum to the 
highest offeror for that MLI. The pertinent offeror may, at its option, 
accept or reject that petroleum at the price originally offered. If that 
offeror rejects the petroleum, it may be offered to the next highest 
offeror, etc.
    (3) If the petroleum is not then resold, the Contracting Officer may 
at his option proceed to amend the NS to resolicit offers for that 
petroleum or add the petroleum to the next sales cycle.

            B.23 Offeror's certification of acceptance period

    (a) By submission of an offer, the offeror certifies that its priced 
offer will remain valid for 10 calendar days after the date set for the 
receipt of offers, and further that the successful line items of its 
offer will remain valid for an additional 30 calendar days should it 
receive a notification of ASO either by telephone or in writing during 
the initial 10-day period.
    (b) By mutual agreement of DOE and the offeror, an individual 
offeror's acceptance period may be extended for a longer period.

           B.24 Notification of Apparently Successful Offeror

    The following information will be provided to the offeror by DOE in 
the notification of ASO:

[[Page 210]]

    (a) Identification of SPR crude oil streams to be awarded;
    (b) Total quantity to be awarded on each MLI and on each DLI;
    (c) Price in U.S. dollars per barrel for each DLI;
    (d) Extended total price offer for each DLI;
    (e) Provisional contract number;
    (f) Any other data necessary.

                         B.25 Contract documents

    If an offeror is successful, DOE will make award using a NA signed 
by the Contracting Officer. The NA will identify the items, quantities, 
prices and delivery method which DOE is accepting. Attached to the NA 
will be the NS and the successful offer. Provisions of the SSPs will be 
made applicable through incorporation by reference in the NS. The 
Contracting Officer also shall provide the purchaser with an information 
copy of the then-current SSPs as published in the Federal Register. If 
time constraints require it, DOE may accept the offeror's offer by an 
electronic notice, such as telegram or telex, and the contract award 
shall be effective upon issuance of such notice. The electronic notice 
will be followed by a mailing of full documentation as described above.

                     B.26 Purchaser's representative

    As part of its offer, each offeror shall designate an agent as a 
point of contact for any telephone calls or correspondence from the 
Contracting Officer. Any such agent shall have a U.S. address and 
telephone number and must be conversant in English.

      B.27 Procedures for selling to other U.S. Government agencies

    (a) If a U.S. Government agency submits an offer for petroleum in a 
price competitive sale, that offer will be arrayed for award 
consideration in accordance with Provision No. B.20. If a U.S. 
Government agency is an ASO, award and payment will be made exclusively 
in accordance with statutory and regulatory requirements governing 
transactions between agencies, and the U.S. Government agency will be 
responsible for complying with these requirements within the time limits 
set by the Contracting Officer.
    (b) U.S. Government agencies are exempt from all guarantee 
requirements, but must complete all transportation arrangements for 
moving the petroleum. Failure by a U.S. Government agency to comply with 
any of the requirements of these SSPs shall not provide a basis for 
challenging a contract award to that agency.

                  Section C - Sales Contract Provisions

                      C.1 Delivery of SPR petroleum

    (a) The purchaser, at its expense, shall make all necessary 
arrangements to accept delivery of and transport the SPR petroleum, 
except for terminal arrangements which shall be coordinated with the 
SPR/PMO. The DOE will deliver and the purchaser will accept the 
petroleum at delivery points listed in the NS. The purchaser also shall 
be responsible for meeting any delivery requirements imposed at those 
points including complying with the rules, regulations, and procedures 
contained in applicable port/terminal manuals, pipeline tariffs or other 
applicable documents.
    (b) For petroleum in the SPR's permanent storage sites, DOE shall 
provide, at no cost to the purchaser, transportation by pipeline from 
the SPR to the supporting SPR distribution terminal facility specified 
for the MLI and, for vessel loadings, a safe berth and loading 
facilities sufficient to deliver petroleum to the vessel's permanent 
hose connection. The purchaser agrees to assume responsibility for, to 
pay for, and to indemnify and hold DOE harmless for any other costs 
associated with terminal, port, vessel and pipeline services necessary 
to receive and transport the petroleum, including but not limited to 
demurrage charges assessed by the terminal, ballast and oily waste 
reception services other than those provided by DOE or its agent, 
mooring and line-handling services, tank storage charges and port 
charges incurred in the delivery of SPR petroleum to the purchaser. The 
purchaser also agrees to assume responsibility for, to pay for and to 
indemnify and hold DOE harmless for any liability, including 
consequential or other damages, incurred or occasioned by the purchaser, 
its agent, subcontractor at any tier, assignee or any subsequent 
purchaser, in connection with movement of petroleum sold under a 
contract incorporating this provision.

 C.2 Compliance with the ``Jones Act'' and the U.S. export control laws

    Failure to comply with the ``Jones Act,'' 46 U.S.C. 883, regarding 
use of U.S.-flag vessels in the transportation of oil between points 
within the United States, and with any applicable U.S. export control 
laws affecting the export of SPR petroleum will be considered to be a 
failure to comply with the terms of any contract containing these SSPs 
and may result in termination for default in accordance with Provision 
No. C.27. Purchasers who have failed to comply with the ``Jones Act'' or 
the export control laws in SPR sales may be found to be non-responsible 
in the evaluation of offers under Provision No. B.20 of the SSPs. Those 
purchasers may also be subject to proceedings to make them ineligible 
for future awards in accordance with 10 CFR part 625.

[[Page 211]]

                      C.3 Storage of SPR petroleum

    Continued storage of purchasers' oil in the SPR facilities after the 
end of the contract delivery periods is not permitted, unless 
specifically authorized by the Secretary of Energy and provided for in 
the NS. Allowing petroleum to remain in storage as the result of failure 
to complete delivery arrangements may result in assessment of liquidated 
damages under Provision Nos. C.27 through C.29 unless such failure is 
excused by those provisions.

                      C.4 Environmental compliance

    (a) Vessels to be used for the transportation of petroleum purchased 
from the SPR will comply with all applicable rules and regulations, 
including The Ports and Waterways Safety Act, The Federal Water 
Pollution Control Act of 1972, The Oil Pollution Control Act of 1961, 
and other applicable statutes, rules and regulations, including the 
following: parts 151, 153, 157, 158 and 159 of title 33, and parts 30-36 
and 542 of title 46 of the Code of Federal Regulations.
    (b) In the event tankships are used in the performance of this 
contract, the purchaser will employ only tankships whose owners are 
parties to the Tanker Owners Voluntary Agreement Concerning Liability 
for Oil Pollution (TOVALOP) or who carry equivalent, as determined by 
the Contracting Officer, liability coverage.
    (c) All crude oil transfer operations in performance of the contract 
will be in accordance with the guidelines detailed in the International 
Oil Tanker Safety Guide, U.S. Coast Guard Regulations, and the ``Ship to 
Ship Transfer Guide'' of the International Chamber of Shipping Oil 
Companies International Marine Forum.
    (d) Failure of the purchaser or the purchaser's subcontractors to 
comply with all applicable rules and regulations in the transportation 
of SPR petroleum will be considered a failure to comply with the terms 
of any contract containing these SSPs, and may result in termination for 
default, unless, in accordance with Provision No. C.27, such failure was 
beyond the control and without the fault or negligence of the purchaser, 
its affiliates, or subcontractors.

               C.5 Delivery and transportation scheduling

    (a) Unless otherwise instructed in the notification of ASO, each 
purchaser shall submit a proposed vessel lifting program and/or pipeline 
delivery schedule to the SPR/PMO by hand-delivery, mail, telex, or 
facsimile, no later than the fifteenth day prior to the earliest 
delivery date offered by the NS. The vessel lifting program shall 
specify the requested three-day loading window for each tanker and the 
quantity to be lifted. The pipeline schedule will specify the dates on 
which deliveries are to be tendered to the pipeline and the quantity to 
be tendered on each date. In the event conflicting requests are 
received, preference will be given to such requests in descending order, 
highest priced offer first. The SPR/PMO will respond to each purchaser 
no later than the tenth day prior to the start of deliveries, either 
confirming the schedule as originally submitted or proposing 
alterations. The purchaser is deemed to have received a mailed notice on 
the second day after its dispatch and a telex or express mail notice on 
the day after dispatch. The purchaser shall be deemed to have agreed to 
those alterations unless the purchaser requests the SPR/PMO to 
reconsider within two days after receipt of such alterations. The SPR/
PMO will use its best efforts to accommodate such requests, but its 
decision following any such reconsideration shall be final and binding.
    (b) Telex and facsimile telephone numbers, as well as the address to 
which mailed and hand-carried proposed schedules should be delivered, 
will be provided in the notification of ASO.
    (c) Notwithstanding paragraph (a) above, ASOs and purchasers may 
request delivery commencing prior to the contractual delivery period. 
DOE will honor such requests, unless unacceptable costs might be 
incurred or SPR schedules might be adversely affected. Requests accepted 
by DOE will be handled on a first-come, first-served basis, except that 
where conflicting requests are received on the same day, the highest-
priced offer will be given preference. Requests that include both a 
change in delivery method and an early delivery date may also be 
accommodated subject to Provision No. C.6. DOE may not be able to 
confirm requests for early deliveries until 24 hours prior to the load 
date.

        C.6 Contract modification - alternate delivery line items

    A purchaser may request a change in delivery method after the 
issuance of the NA. Such requests may be made either orally (to be 
confirmed in writing within 24 hours) or in writing, but will require 
written modification of the contract by the Contracting Officer. Such 
modification will be permitted by DOE if in the sole judgment of DOE the 
change would not interfere with the delivery plans of other purchasers, 
and further provided that the purchaser agrees to pay all increased 
costs incurred by DOE because of such modification. The NS shall 
establish per barrel rates for such increased costs.

          C.7 Application procedures for ``Jones Act'' waivers

    (a) Unless otherwise specified, an ASO or purchaser seeking a waiver 
of the ``Jones Act'' should submit a request by letter, telegram or 
telex to: U.S. Customs Service,

[[Page 212]]

Chief, Carrier Rulings Branch, 1301 Constitution Avenue, NW., 
Washington, DC 20229, Telephone No. (202) 566-5706, Telex (710) 822-
9525.
    Copies of the request should also be sent to:
    (1) Assistant Secretary of Defense (Acquisition and Logistics), 
Department of Defense, Washington, DC 20301-8000;
    (2) Associate Administrator for Marketing and Domestic Enterprise, 
Maritime Administration, Department of Transportation, Mail Stop MAR-
800, Washington, DC 20590, Telex (710) 822-9426;
    (3) Department of Energy, ATTN: Deputy Assistant Secretary for 
Petroleum Reserves/Deputy Assistant Secretary for Energy Emergencies, 
Mail Stop FE-40, Washington, DC 20585, Telex, (710) 822-0176.
    (b) A purchaser seeking a waiver to use a vessel built with a 
Construction Differential Subsidy (and, if applicable, operated with 
Operating Differential Subsidy) should have the owner of that vessel 
submit a request by letter, telegram, or telex for such waiver(s) to: 
Maritime Administrator, Maritime Administration, U.S. Department of 
Transportation, Washington, DC 20590, Telex (710) 822-9426. Copies of 
the request shall be sent to:
    (1) U.S. Department of Energy, ATTN: Deputy Assistant Secretary for 
Petroleum Reserves/Deputy Assistant Secretary for Energy Emergencies, 
Mail Stop FE-40, Washington, DC 20585, Telex (710) 822-0176.
    (2) Chief, Carriers Rulings Branch, U.S. Customs Service, Department 
of the Treasury, Washington, DC 20229, Telex (710) 822-9525.
    For speed and brevity, the request may incorporate by reference 
appropriate contents of any earlier ``Jones Act'' waiver request by the 
purchaser. Under Section 805(a), a hearing is also required for any 
intervenor, and a waiver may not be approved if it will result in unfair 
competition to any person, firm, or corporation operating exclusively in 
the coastwise or intercoastal service.
    (c) Any request for waiver should include the following information:
    (1) Name, address and telephone number of requestor;
    (2) Purpose for which waiver is sought, e.g., to take delivery of so 
many barrels of SPR crude oil, with reference to the SPR NS number and 
the provisional or assigned contract number;
    (3) Name and flag of registery of vessel for which waiver is sought, 
if known at the time of waiver request, and either the scheduled 3-day 
delivery window(s), if available, or 10-day delivery period applicable 
to the contract;
    (4) The intended number of voyages, including the ports for loading 
and discharging;
    (5) Estimated period of time for which vessel will be employed; and
    (6) Reason for not using qualified U.S.-flag vessel, including 
documentary evidence of good faith effort to obtain suitable U.S.-flag 
vessel and responses received from that effort. Such evidence would 
include copies of correspondence, telexes, telegrams, and telephone 
conversation summaries. Use of commercial brokers and the Transportation 
News Ticker (TNT) is suggested for maximum market coverage. Requests for 
waivers by telegram or telex may reference such documentary evidence, 
with copies to be provided by mail, postmarked no more than one business 
day after transmittal of the telegram or telex requesting the waiver.
    (7) For waivers to use Construction Differential Subsidy vessels, 
the request must also contain a specific agreement for Construction 
Differential Subsidies payback pursuant to section 506 of the Merchant 
Marine Act of 1936 and must be signed by an official of the vessel owner 
authorized to make a payback commitment.
    (d) If there are shown to be ``Jones Act'' vessels available and in 
a position to meet the loading dates required, no waivers may be 
approved.
    (e) The names of any vessel(s) to be employed under a ``Jones Act'' 
waiver must be provided to the U.S. Customs Service no later than 3 days 
prior to the beginning of the 3-day loading window scheduled in 
accordance with Provision No. C.5.

                      C.8 Vessel loading procedures

    (a) After notification of ASO, each ASO shall arrange with the SPR/
PMO a schedule of vessel loading windows in accordance with Provision 
No. C.5.
    (b) The length of the scheduled loading window shall be 3 days. The 
average quantity to be lifted during a loading window will be no less 
than DOE's minimum contract quantity.
    (c) Tankships, ITBs, and self-propelled barges shall be capable of 
sustaining a minimum average load rate of 15,000 barrels per hour (BPH) 
during loading operations. Barges with a load rate of not less than 
5,000 BPH shall be permitted at the Sun Terminal barge docks. With the 
consent of the SPR/PMO, lower loading rates and the use of barges at the 
Sun and Phillips Terminals' suitably equipped tankship docks may be 
permitted if such do not interfere with DOE's obligations to other 
parties.
    (d) At least 7 days in advance of the beginning of the scheduled 
loading window, the purchaser shall furnish the SPR/PMO with vessel 
nominations specifying: (i) name and size of vessel or advice that the 
vessel is To Be Nominated at a later date (such date to be no later than 
3 days before commencement of the loading window); (ii) estimated date 
of arrival (to be narrowed to a firm date not later than 72 hours prior 
to the first day of the vessel's 3-day window, as provided in

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paragraph (f) below); (iii) quantity to be loaded and contract number; 
and (iv) other relevant information requested by the SPR/PMO. DOE will 
advise the purchaser, in writing, of the acceptance or rejection of the 
nominated vessel within 24 hours of such nomination. If no advice is 
furnished within 24 hours, the nomination will be firm. Once 
established, changes in such nomination details may be made by only 
mutual agreement of the parties, to be confirmed by DOE in writing. The 
purchaser shall be entitled to substitute another vessel of similar size 
for any vessel so nominated, subject to DOE's approval. DOE must be 
given at least 3 days notice prior to the first day of the 3-day loading 
window of any such substitution. DOE shall make a reasonable effort to 
accept any nomination for which notice has not been given in strict 
accordance with the above provisions.
    (e) In the event the purchaser intends to use more than one vessel 
to take delivery of the quantity scheduled to be delivered during a 
loading window, the information in (d) above and (f) below shall be 
provided for each vessel.
    (f) The vessel shall notify the SPR/PMO of the expected day of 
arrival 72 hours before the beginning of his scheduled 3-day loading 
window. This notice establishes the firm agreed-upon date of arrival 
which is the 1-day window for the purposes of vessel demurrage (see 
Provision No. C.9). In addition, the vessel shall notify the SPR/PMO of 
the expected hour of arrival 72, 48 and 24 hours in advance of arrival, 
and after the first notice, to advise of any variation of more than 4 
hours. With the first notification of the hour of arrival, the Master 
shall advise the SPR/PMO: (i) quantity of oily bilge wastes or sludge 
requiring discharge ashore; (ii) cargo loading rate requested; (iii) 
number, size, and material of vessel's manifold connections; and (iv) 
defects in vessel or equipment affecting performance or maneuverability.
    (g) Notice of Readiness shall be tendered upon arrival at berth or 
at customary anchorage which is deemed to be any anchorage within 6 
hours vessel time to the SPR dock. The preferred anchorages are 
identified in Exhibit E. The Notice of Readiness shall be confirmed 
promptly in writing to the SPR/PMO and the terminal responsible for 
coordination of crude oil loading operations. Such notice shall be 
effective only if given during customary port operating hours. If notice 
is given after customary business hours of the port, it shall be 
effective as of the beginning of customary business hours on the next 
business day.
    (h) DOE shall use its best efforts to berth the purchaser's vessel 
as soon as possible after receipt of the Notice of Readiness.
    (i) Standard hose and fittings (American Standard Association 
standard connections) for loading shall be provided by DOE. Purchasers 
must arrange for line handling, deballasting, tug boat and pilot 
services, both for arrival and departure, through the terminal or ship's 
agent, and bear all costs associated with such services.
    (j) Tankships, ITBs, and self-propelled barges shall be allowed 
berth time of 36 hours, and barges shall be allowed berth time of 24 
hours, as defined below. Vessels loading cargo quantities in excess of 
500,000 barrels shall be allowed berth time of 36 hours plus 1 hour for 
each 20,000 barrels to be loaded in excess of 500,000 barrels. 
Conditions below excepted, however, the vessel shall not remain at berth 
more than 6 hours after completion of cargo loading unless hampered by 
tide or weather.
    (1) Berth time shall commence with the vessel's first line ashore 
and shall continue until loading of the vessel, or vessels in case more 
than one vessel is loaded, is completed and the last line is off. In 
addition, allowable berth time will be increased by the amount of any 
delay occurring subsequent to the commencement of berth time and 
resulting from causes due to adverse weather, labor disputes, force 
majeure and the like, decisions made by port authorities affecting 
loading operations, actions of DOE, its contractors and agents resulting 
in delay of loading operations (providing this action does not arise 
through the fault of the purchaser or purchaser's agent), and customs 
and immmigration clearance. The time required by the vessel to discharge 
oily wastes or to moor multiple vessels sequentially into berth shall 
count as used berth time.
    (2) For all hours of berth time in excess of allowable berth time 
provided for above, the purchaser shall be liable for dock demurrage and 
also shall be subject to the conditions of Provision No. C.10.

                    C.9 Vessel laytime and demurrage

    (a) The laytime allowed DOE for handling of the purchaser's vessel 
shall be 36 running hours. For vessels with cargo quantities in excess 
of 500,000 barrels, laytime shall be 36 running hours plus 1 hour for 
each 20,000 barrels of cargo to be loaded in excess of 500,000 barrels. 
Vessel laytime shall commence when the vessel is moored alongside or 6 
hours after receipt of a Notice of Readiness, whichever occurs first. It 
shall continue 24 hours per day, seven days per week without 
interruption from its commencement until loading of the vessel is 
completed and cargo hoses or loading arms are disconnected. Any delay to 
the vessel in reaching berth caused by the fault or negligence of the 
vessel or purchaser, delay due to breakdown or inability of the vessel's 
facilities to load, decisions made by vessel owners or operators or by 
port authorities affecting loading operations, discharge of ballast or 
slops, customs and immigration clearance, weather, labor disputes, force 
majeure and the like shall not

[[Page 214]]

count as used laytime. In addition, movement in roads shall not count as 
used laytime.
    (b) If the vessel is tendered for loading on a date earlier than the 
firm agreed-upon arrival date, established in accordance with Provision 
No. C.8, and other vessels are loading or have already been scheduled 
for loading prior to the purchaser's vessel, the purchaser's vessel 
shall await its turn and vessel laytime shall not commence until the 
vessel moors alongside, or at 0600 hours local time on the firm agreed-
upon date of arrival, whichever occurs first. If the vessel is tendered 
for loading later than 2400 hours on the firm agreed-upon date of 
arrival, DOE will use its best efforts to have the vessel loaded as soon 
as possible in its proper turn with other scheduled vessels, under the 
circumstances prevailing at the time. In such instances, vessel laytime 
shall commence when the vessel moors alongside.
    (c) For all hours or any part thereof of vessel laytime which elapse 
in excess of the allowed vessel laytime for loading provided for above, 
demurrage shall be paid by DOE, for U.S.-flag vessels, at the lesser of 
the demurrage rate in the tanker voyage or charter party agreement, or 
the most recently available United States Freight Rate Average (USFRA) 
for a hypothetical tanker with a deadweight in long tons equal to the 
weight in long tons of the crude oil loaded, multiplied by the most 
recent edition of the American Tanker Rate Schedule rate for such 
hypothetical tanker. For foreign flag vessels, demurrage shall be as 
determined above, except that the London Tanker Brokers' Panel Average 
Freight Rate Assessment (AFRA) and most recent edition of the Worldwide 
Tanker Nominal Freight Scale shall be used as appropriate, if less than 
the charter party rate. For all foreign flag vessel loadings that 
commence during a particular calendar month, the applicable AFRA shall 
be the one that is determined on the basis of freight assessments for 
the period ended on the 15th day of the preceding month. The demurrage 
rate for barges will be the hourly rate contained in the charter of a 
chartered barge, or if it is not a chartered barge, at a rate determined 
by DOE as a fair rate under prevailing conditions. If demurrage is 
incurred because of breakdown of machinery or equipment of DOE or its 
contractors (other than the purchaser), the rate of demurrage shall be 
reduced to one-half the rate stipulated herein per running hour and pro 
rata of such reduced rate for part of an hour for demurrage so incurred. 
Demurrage payable by DOE, however, shall in no event exceed the actual 
demurrage expense incurred by the purchaser as the result of the delay.
    (d) In the event the purchaser is using more than one vessel to load 
the quantity scheduled to be delivered during a single loading window, 
the terms of this provision and the Government's liability for demurrage 
apply only to the first vessel presenting its Notice of Readiness in 
accordance with (a) above.
    (e) The primary source document and official record for demurrage 
calculations is the SPRCODR (see Provision No. C.17).

            C.10 Purchaser liability for excessive berth time

    The Government reserves the right to direct a vessel loading SPR 
petroleum at a delivery point specified in the NS, to vacate its SPR 
berth, and absorb all costs associated with this movement, should such 
vessel, through its operational inability to receive oil at the average 
rates provided for in Provision No. C.8, cause the berth to be 
unavailable for an already scheduled follow-on vessel. Furthermore, 
should a breakdown of the vessel's propulsion system prevent its getting 
under way on its own power, the Government may cause the vessel to be 
removed from the berth with all costs to be borne by the purchaser.

                    C.11 Pipeline delivery procedures

    (a) No later than the last day of the month preceding the month of 
delivery, the purchaser shall furnish the SPR/PMO with the following 
information: (i) confirmation of the pipeline's acceptance of the amount 
of the petroleum proposed to be delivered in the delivery month; (ii) an 
estimated schedule (consistent with the terms of the contract) for 
delivery of the petroleum to the pipeline; and (iii) the name and 
telephone number of the pipeline point of contact with whom the SPR/PMO 
should coordinate the petroleum delivery.
    (b) Once established, the pipeline delivery schedule can only be 
changed with DOE's prior written consent.

                       C.12 Title and risk of loss

    Unless otherwise provided in the NS, title to and risk of loss for 
SPR petroleum will pass to the purchaser at the delivery point as 
follows:
    (a) For vessel shipment--when the petroleum passes from the dock 
loading equipment connections to the vessel's permanent hose connection.
    (b) For pipeline shipment--when the petroleum passes the permanent 
flange connecting the SPR's distribution terminal to the commercially-
owned pipeline, except for shipments via the LOCAP and ARCO Terminals 
where title and risk of loss pass when the petroleum enters the LOCAP or 
ARCO Terminal meter bank.
    (c) For in-transit shipments--when the petroleum passes the 
permanent flange of the discharging vessel manifold upon discharge into 
the purchaser's designated marine terminal facility or vessel.

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                      C.13 Acceptance of crude oil

    (a) When practical, the NS shall update the SPR crude oil stream 
characteristics shown in Exhibit D, SPR Crude Oil Stream 
Characteristics. However, the purchaser shall accept the crude oil 
delivered regardless of characteristics. Except as provided below, DOE 
assumes no responsibility for deviations in quality.
    (b) In the event that the crude oil stream delivered both has a 
total sulfur content (by weight) in excess of 3.5 percent if Bryan Mound 
Maya, 2.0 percent if any other sour crude oil stream, or 0.50 percent if 
a sweet crude oil stream, and, in addition, has an API gravity less than 
20 deg.API if Bryan Mound Maya, 26 deg.API if any other sour crude oil 
stream, or 32 deg.API if a sweet crude oil stream, the purchaser shall 
accept the crude oil delivered and either pay the contract price 
adjusted in accordance with Provision No. C.14, or request negotiation 
of the contract price. Unless the purchaser submits a written request 
for negotiation of the contract price to the Contracting Officer within 
10 days from the date of delivery, the purchaser shall be deemed to have 
accepted the adjustment of the price in accordance with Provision No. 
C.14. Should the purchaser request a negotiation of the price and the 
parties be unable to agree as to that price, the dispute shall be 
settled in accordance with Provision No. C.34.

     C.14 Price adjustments for quality differentials for crude oil

    (a) The NS will specify quality price adjustments applicable to the 
crude oil streams offered for sale. Unless otherwise specified by the 
NS, price adjustments will be made solely for variations between the API 
gravity of the crude oil delivered and the API gravity of the crude oil 
stream contracted for as published in the NS. Price adjustments for SPR 
crude oil streams are expected to be similar to one or more commercial 
crude oil differential postings for equivalent quality crude oil.
    (b) Price adjustments will be applied only to the amount of 
variation by which the API of the crude oil delivered differs by more 
than plus or minus five-tenths of one degree API (+/- 0.5 deg.API) from 
the API gravity of the crude oil stream contracted for as published in 
the NS. The contract price per barrel shall be increased by that amount 
if the API gravity of the crude oil delivered exceeds the published API 
gravity by more than 0.5 deg.API and decreased by that amount if the 
crude oil delivered falls below the published API gravity by more than 
0.5 deg.API.

               C.15 Determination of quality of petroleum

    (a) The quality of the crude oil delivered to the purchaser will be 
determined from samples taken from the delivery tanks in accordance with 
API Manual of Petroleum Measurement Standards, Chapter 8.1, Manual 
Sampling of Petroleum and Petroleum Products (ASTM D4057), latest 
edition, or from the composite sample collected by an automatic inline 
sampler whose performance has been verified in accordance with the 
sampling system proving system outlined in the API Manual of Petroleum 
Measurement Standards, Chapter 8.2, Automatic Sampling of Petroleum and 
Petroleum Products (ASTM D4177), latest edition. Preference will be 
given to samples collected by means of an automatic inline sampler when 
such a system is available and operational. Tests to be performed by DOE 
or its authorized contractor are:
    (1) Sediment and Water
    Primary methods: API Manual of Petroleum Measurement Standards, 
Chapter 10.1, Determination of Sediment in Crude Oils and Fuel Oils by 
the Extraction Method (ASTM D473) (IP53), latest edition; and API Manual 
of Petroleum Measurement Standards, Chapter 10.2, Determination of Water 
in Crude Oil by Distillation (ASTM D4006) (IP358), latest edition.
    Alternate methods: API Manual of Petroleum Measurement Standards, 
Chapter 10.3, Determination of Water and Sediment in Crude Oil by the 
Centrifuge Method (Laboratory Procedure) (ASTM D4007) (IP 359), latest 
edition; or API Manual of Petroleum Measurement Standards, Chapter 10.4, 
Standard Methods of Test for Water--and Sediment in Crude Oils, (API 
Pub. 2542) (ASTM D96), latest edition.
    (2) Sulfur
    Primary method: ASTM D1552, Sulfur in Petroleum Products (High) 
Temperature Method), latest edition.
    Alternate methods: ASTM D2622, Sulfur in Petroleum Products (X-ray 
Spectographic Method), latest edition; or ASTM D4294, Sulfur in 
Petroleum Products by Non-Dispersive X-ray Fluorescence Spectrometry, 
latest edition.
    (3) API Gravity
    API Manual of Petroleum Measurement Standards, Chapter 9.1, 
Hydrometer Test Method for Density, Relative Density (Specific Gravity), 
or API Gravity of Crude Petroleum and Liquid Petroleum Products (ASTM 
D1298), latest edition; or API Gravity of Crude Petroleum and Petroleum 
Products (Hydrometer Method) (ASTM D287), latest edition.
    To the maximum extent practicable, the primary methods will be used 
for determination of SPR crude oil quality characteristics. However, 
because of conditions prevailing at the time of delivery, it may be 
necessary to use alternate methods of test for one or more of the 
quality characteristics. The primary methods are binding in any dispute 
over quality characteristics of SPR crude oil.
    (b) The purchaser may arrange for additional services to witness and 
verify testing simultaneously with the Government Quality Assurance 
Representatives. Such services, however, will be for the account of the

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purchaser. Any disputes will be settled in accordance with Provision No. 
C.34. Should the purchaser opt not to provide such additional services, 
then the Government findings will be binding on the purchaser.

               C.16 Determination of quantity of petroleum

    (a) The quantity of crude oil delivered to the purchaser will be 
determined from opening and closing tank gauges with adjustment for 
opening and closing free water and sediment and water as determined from 
shore tank samples where an inline sampler is not available, or delivery 
meter reports. All volumetric measurements made when the crude oil is at 
a temperature other than 60 deg. F will be converted to Net Standard 
Volume in barrels at 60 deg. F, using the API Manual of Petroleum 
Measurement Standards, Chapter 11.1, Volume 1, Volume Correction Factors 
(ASTM D1250) (IP 200); Table 5A-Generalized Crude Oils, Correction of 
Observed API Gravity to API Gravity at 60 deg. F; Table 6A-Generalized 
Crude Oils, Correction of Volume to 60 deg. F Against API Gravity at 
60 deg. F, latest edition, and by deducting the tanks' free water, and 
the entrained sediment and water as determined by the testing of 
composite all-levels samples taken from the delivery tanks; or by 
deducting the sediment and water as determined by testing a composite 
sample collected by a certified in-line sampler.
    (b) The quantity determination shall be made and certified by the 
DOE contractor responsible for loading operations, and witnessed by the 
Government Quality Assurance Representative at the delivery point. The 
purchaser shall have the right to have representatives present at the 
gauging/metering, sampling, and testing. Should the purchaser arrange 
for additional inspection services, such services will be for the 
account of the purchaser. Any disputes shall be settled in accordance 
with Provision No. C.34. Should the purchaser not arrange for additional 
services, then DOE's findings shall be binding on the purchaser.

                       C.17 Delivery documentation

    The quantity and quality determination shall be documented on the 
SPR/PMO Crude Oil Delivery Report (SPRCODR), SPRPMO-F-6110.2-14 (see 
Exhibit J for copy of this form). The SPRCODR will be signed by the 
purchaser's agent to acknowledge receipt of the quantity and quality of 
crude oil indicated. In addition, for vessel deliveries, the time 
statement on the SPRCODR will be signed by the vessel's Master when 
loading is complete. Copies of the completed SPRCODR, with applicable 
supporting documentation (i.e., metering or tank gauging tickets and 
appropriate calculation worksheets), will be furnished to the purchaser 
and/or the purchaser's authorized representative after completion of 
delivery. They will serve as the basis for invoicing and/or 
reconciliation invoicing for the sale of petroleum as well as for any 
associated services that may be provided.

                   C.18 Contract amounts for crude oil

    The contract quantities and dollar value stated in the NA are 
estimates. The per barrel unit price is subject to adjustment due to 
variation in the API gravity from the published characteristics. In 
addition, due to conditions of loading and shipping, the quantity 
actually delivered may vary by +/-10 percent for each DLI. However, a 
purchaser is not required to engage additional vessels if sufficient 
vessels to take delivery of at least 90 percent of the contract quantity 
have been engaged.

                              C.19 Payment

    (a) Payment for oil delivered shall be due no later than 10 days 
after the date of delivery.
    (b) Payment shall be made by the payment and performance guarantee 
which must be either:
    (1) A letter of credit conforming without exception to requirements 
of Provision No. C.20, and Exhibit H, Payment and Performance Guarantee 
- Letter of Credit and equal to 100 percent of the contract amount; or
    (2) An advance payment by cash wire deposit, made in accordance with 
the wire transfer instructions in Provision No. C.24 and equal to 110 
percent of the contract amount.
    (c) The purchaser must furnish an acceptable payment and performance 
guarantee before DOE will execute the NA. The Contracting Officer will 
inform the ASO by telephone that the guarantee is due within a period 
which may be as short as 5 business days. The Contracting Officer may, 
at his discretion, send a confirming telegram of the notification, but 
the timeliness of receipt for the guarantee is determined by the date of 
the telephone call.
    (d) All wire deposit and letter of credit costs will be borne by the 
purchaser.
    (e) The Contracting Officer (who may act through the SPR/PMO 
Planning and Financial Management Division) may draw against this 
payment and performance guarantee at any time after the first delivery 
for any monies due under the contract for petroleum delivered and at any 
time for any other monies owing to DOE under the contract, no matter how 
the debt arose.

  C.20 Payment and performance letters of credit - general requirements

    (a) Each letter of credit must conform without exception to the 
standard letter of credit provided as Exhibit H.
    (b) DOE does not require information concerning the issuing bank's 
agreement with

[[Page 217]]

its customer. Any language in the letter of credit in addition to that 
specified in Exhibit H shall make the letter of credit unacceptable and 
shall be cause for rejection of the offer.
    (c) As set forth in Exhibit H, the letter of credit provides for 
payment to DOE by wire transfer of funds over FEDWIRE. If a letter of 
credit is from a single depository institution, including a branch or an 
agency of a foreign bank, (hereinafter referred to as ``bank'') that 
bank must maintain an account with any Federal Reserve Bank or Branch 
(Fed) and be a participant in the Fed's FEDWIRE funds transfer system. 
If the letter of credit is issued by a syndicate of banks, only the 
institution acting as agent for the syndicate and responsible for 
honoring the drafts drawn under the letter of credit must maintain a Fed 
account and be a participant in FEDWIRE.
    (d) DOE reserves the right to request evidence that the bank 
official signing the letter of credit is authorized to do so, such as a 
confirming telex, telephone call, or letter from another bank official, 
or other appropriate evidence as determined by the Contracting Officer.

      C.21 Billing and payment - with purchaser's letter of credit

    (a) After delivery of the SPR petroleum and completion of the 
delivery documentation, the Contracting Officer shall prepare an invoice 
in accordance with the contract and the delivery documentation.
    (b) Upon completion of the invoice, the SPR/PMO Planning and 
Financial Management Division shall prepare a draft requesting a wire 
transfer of funds in accordance with the letter of credit and transmit 
that message to the bank issuing the letter of credit by express mail or 
telex, or via the FEDWIRE system. On the date specified in the draft, 
nominally 10 days after completion of the delivery of petroleum, the 
bank shall use the wire transfer procedures specified in the letter of 
credit to transfer the invoiced funds to the account of the U.S. 
Treasury. If the draft is not transmitted within 10 days of completion 
of delivery of the petroleum, the due date shall be the next business 
day after receipt of the draft.
    (c) The SPR/PMO shall provide copies of the invoices to the 
purchaser and the bank by mail.
    (d) In the event that the bank refuses to honor the draft against 
the letter of credit, the purchaser shall be responsible for paying any 
interest due (see Provision No. C.25) from the due date specified in the 
draft.
    (e) Within 30 calendar days after final payment under the contract, 
the Contracting Officer shall authorize the cancellation of the letter 
of credit and shall return it to the purchaser.

       C.22 Billing and payment - with purchaser's advance payment

    (a) If the offeror elects to pay in advance, delivery documentation 
will be provided to the purchaser after each delivery. After the last 
delivery under the contract, a reconciliation billing will be made. If 
money is due from the purchaser to DOE, an invoice will be issued to the 
purchaser (see paragraph (b) below). If money is due the purchaser, a 
Treasury check will be issued in accordance with the Treasury Fiscal 
Requirements Manual.
    (b) In accordance with the delivery documentation and the contract, 
the Contracting Officer shall determine the amount of any reconciliation 
invoice and transmit it to the purchaser by express mail, mail or telex. 
A purchaser is deemed to have received mailed invoices on the second day 
after their dispatch and telex and express mail invoices on the day 
after dispatch. Reconciliation invoices must be paid in accordance with 
Provision No. C.24 10 business days after the purchaser is deemed to 
have received them.

   C.23 Replacement of funds in the payment and performance guarantee

    (a) Payment and performance guarantees must be maintained in full 
force and effect to the Contracting Officer's satisfaction at the 
following minimum levels until final payment under the contract:
    (1) Letter of credit at 100 percent of the contract price of the 
petroleum remaining to be paid for; and
    (2) Advance payment at 110 percent of the contract price of the 
petroleum remaining to be delivered.
    (b) If the Contracting Officer draws against the letter of credit, 
or makes charges against the advance payment, for monies owed DOE for 
oil delivered, for liquidated damages or for other funds due DOE, the 
purchaser shall be notified within 24 hours by express mail, mail or 
telex of the fact of such withdrawal or charge and the amount thereof. 
Purchaser is deemed to have received a mailed notice on the second 
business day after its dispatch and a telex or express mail notice the 
next business day after its dispatch.
    (c) In the event that a draw against the payment and performance 
guarantee causes its amount to fall below the levels specified in (a) 
above, the purchaser shall, within 5 business days after it is deemed to 
have received notification in (b) above, replenish the payment and 
performance guarantee to those levels. Such replenish ment shall be made 
either by the wire transfer of funds in accordance with Provision No. 
C.24, or by the provision of a new letter of credit or amendment of the 
old letter of credit. If such replenishment is not made within 5 
business days, the Contracting Officer may, on the 6th business day, 
without prior notice to the

[[Page 218]]

purchaser withhold deliveries under the contract and/or terminate the 
contract in whole or in part for default under Provision No. C.27.

                    C.24 Method of payments - general

    (a) Notwithstanding any other contract provision, DOE may invoice 
the purchaser at any time for payment of monies due under the contract. 
These would include but not be limited to, interest, liquidated damages, 
amounts owing for any services provided for under the contract, and the 
difference between the contract price and price received on the resale 
of undelivered petroleum as defined in Provision No. C.27. If the 
invoice is for delinquent payments, interest shall accrue from the date 
of the delinquency and not from the invoice's deemed date of receipt by 
purchaser.
    (b) All amounts payable by the purchaser in excess of $1,000.00 
shall be paid by wire transfer as a deposit to the account of the U.S. 
Treasury through FEDWIRE. Information which must be included on each 
wire transfer is specified in Exhibit I, Instruction Guide for Funds 
Transfer.
    (c) Payments in amounts less than $1,000.00 shall be by check made 
out to ``U.S. Department of Energy.''Such payments will be sent with 
documentation to identify the payer and purpose of the payment to: U.S. 
Department of Energy, Strategic Petroleum Reserve Project Management 
Office, Crude Oil Sales, Planning and Financial Management Division, 
Mail Stop PR-652, 900 Commerce Road East, New Orleans, Louisiana 70123.
    (d) DOE may designate another place, different timing, or another 
method of payment after reasonable written notice to the purchaser.
    (e) No payment due DOE hereunder shall be subject to reduction or 
set-off for any claim of any kind against the United States arising 
independently of the contract.
    (f) If a purchaser disagrees with the amounts invoiced by DOE, the 
purchaser immediately shall pay the amount invoiced, and notify the 
Contracting Officer of the basis for its disagreement. The Contracting 
Officer will receive and act upon any such objection asserted at any 
time prior to final payment under this contract. Failure to agree to any 
adjustment shall be a dispute, and purchaser shall file a claim promptly 
in accordance with Provision No. C.34.

                              C.25 Interest

    Amounts due and payable by the purchaser or its bank which are not 
paid in accordance with the provisions governing such payments shall 
bear interest from the date due until the date payment is received by 
the Government.
    Interest shall be computed on a daily basis. The interest rate shall 
be in accordance with the Current Value of Funds rate as established by 
the Department of the Treasury in accordance with the Debt Collection 
Act of 1982 and published periodically in Bulletins to the Treasury 
Fiscal Requirements Manual and in the Federal Register.

           C.26 Government options if payment is not received

    (a) If any amount owed to DOE is not paid within the time deadlines 
specified by the applicable provisions, the Contracting Officer may, at 
his discretion, take the following actions either simultaneously or in 
any sequence he deems appropriate, with or without prior notice to the 
purchaser:
    (1) Invoice the purchaser for the amount on which payment is 
delinquent or provide written notice that payment is delinquent;
    (2) Draw against the letter of credit for all amounts due and 
delinquent;
    (3) Apply any advance payment received against the amount due and 
delinquent;
    (4) Withhold all or any part of future deliveries under the 
contract; and/or
    (5) Terminate the contract, in whole or in part, for purchaser 
default, in accordance with Provision No. C.27.
    (b) Any disputes will be settled by the Contracting Officer in 
accordance with Provision No. C.34.

                            C.27 Termination

    (a) Immediate termination.
    (1) The Contracting Officer may terminate this contract in whole or 
in part, without liability of DOE, by written notice to the purchaser 
effective upon its being deposited in the U.S. Postal System addressed 
to the purchaser as provided in Provision No. C.33 in the event that the 
purchaser either notifies the Contracting Officer that it will not be 
able to accept, or fails to accept, any delivery line item in accordance 
with the terms of the contract. Such notice shall invite the purchaser 
to submit information to the Contracting Officer as to the reasons for 
the failure to accept the delivery line item in accordance with the 
terms of the contract.
    (2) Within 10 business days after the issuance of the notice of 
termination, the Contracting Officer may determine that such termination 
was a termination for default under subparagraph (b)(1)(ii) of this 
provision. In the absence of information which persuades the Contracting 
Officer that the purchaser's failure to accept the delivery line item 
was excusable, the fact of such failure may be the basis for the 
Contracting Officer determining the purchaser to be in default, without 
first determining under subparagraphs (b)(2) and (b)(3) whether such 
failure was excusable under the terms of the contract. The Contracting 
Officer shall promptly give the purchaser written notice of such 
determination.

[[Page 219]]

    (3) Any immediate termination other than one determined to be a 
termination for default in accordance with subparagraph (a)(2) and 
paragraph (b) of this provision shall be a termination for the 
convenience of DOE without liability of the Government.
    (b) Termination for Default.
    (1) Subject to the provisions of subparagraphs (b)(2) and (b)(3), 
the Contracting Officer may terminate the contract in whole or in part 
for purchaser default, without liability of DOE, by written notice to 
the purchaser, effective upon its being deposited in the U.S. Postal 
System, addressed to the purchaser as provided in Provision No. C.33 in 
the event that:
    (i) The Government does not receive payment in accordance with any 
payment provision of the contract;
    (ii) The purchaser fails to accept delivery of petroleum in 
accordance with the terms of the contract; or
    (iii) The purchaser fails to comply with any other term or condition 
of the contract within 5 business days after the purchaser is deemed to 
have received written notice of such failure from the Contracting 
Officer.
    (2) Except with respect to defaults of subcontractors, the purchaser 
shall not be determined to be in default or be charged with any 
liability to DOE under circumstances which prevent the purchaser's 
acceptance of delivery hereunder due to causes beyond the control and 
without the fault or negligence of the purchaser as determined by the 
Contracting Officer. Such causes shall include but are not limited to:
    (i) Acts of God or the public enemy;
    (ii) Acts of the Government acting in its sovereign or contractual 
capacity;
    (iii) Fires, floods, earthquakes, explosions, unusually severe 
weather, or other catastrophes; or
    (iv) Strikes.
    (3) If the failure to perform is caused by the default of a 
subcontractor, the purchaser shall not be determined to be in default or 
to be liable for any excess costs for failure to perform, unless the 
supplies or services to be furnished by the subcontractor were 
obtainable from other sources in sufficient time to permit the purchaser 
to meet the delivery schedule, if:
    (i) Such default arises out of causes beyond the control of the 
purchaser and its subcontractor, and without the fault or negligence of 
either of them; or
    (ii) Such default arises out of causes within the control of a 
transportation subcontractor, not an affiliate of the purchaser, hired 
to transport the purchaser's petroleum by vessel or pipeline, and such 
causes are beyond the purchaser's control, without the fault or 
negligence of the purchaser, and notwithstanding the best efforts of the 
purchaser to avoid default.
    (4) In the event that the contract is terminated in whole or in part 
for default, the purchaser shall be liable to DOE for:
    (i) The difference between the contract price on the contract 
termination date and any lesser price the Contracting Officer obtained 
upon resale of the petroleum; and
    (ii) Liquidated damages as specified in Provision No. C.29 as fixed, 
agreed, liquidated damages for each day of delay until the petroleum is 
delivered to a purchaser under either a resolicitation for the sale of 
the quantities of oil defaulted on, or a NS issued after the date of 
default which specifies that it is for the sale of quantities of oil 
defaulted on. In no event shall liquidated damages be assessed for more 
than 30 days.
    (5) In the event that the Government exercises its right of 
termination for default, and it is later determined that the purchaser's 
failure to perform was excused in accordance with subparagraphs (2) and 
(3), the rights and obligations of the parties shall be the same as if 
such termination was a termination for convenience without liability of 
the Government under paragraph (c).
    (c) Termination for convenience.
    (1) In addition to any other right or remedy provided for in the 
contract, the Government may terminate this contract at any time in 
whole or in part whenever the Contracting Officer shall determine that 
such termination is in the best interest of the Government. Such 
termination shall be without liability of the Government if such 
termination arises out of causes specified in (a)(1) or (b)(1) above, 
acts of the Government in its sovereign capacity, or causes beyond the 
control and without the fault or negligence of the Government, its 
contractors (other than the purchaser of SPR crude oil under this 
contract) and agents. For any other termination for convenience, the 
Government shall be liable for such reasonable costs incurred by the 
purchaser in preparing to perform the contract, but under no 
circumstances shall the Government be liable for consequential damages 
or lost profits as the result of such termination.
    (2) The purchaser will be given immediate written notice of any 
decrease of petroleum deliveries greater than 10 percent, or of 
termination, under this paragraph (c). The termination or reduction 
shall be effective upon its notice being deposited in the U.S. Postal 
System unless otherwise specified in the notice. The purchaser is deemed 
to have received a mailed notice on the second day after its dispatch 
and a telex or express mail notice on the day after dispatch.
    (3) Termination for the convenience of the Government shall not 
excuse the purchaser from liquidated damages accruing prior to the 
effective date of the termination.
    (d) Nothing herein contained shall limit the Government in the 
enforcement of any legal or equitable remedy which it might

[[Page 220]]

otherwise have, and a waiver of any particular cause for termination 
shall not prevent termination for the same cause occurring at any other 
time or for any other cause.
    (e) In the event that the Government exercises its right of 
termination, as provided in paragraphs (a), (b), or (c)(1) above, the 
Contracting Officer may sell any undelivered petroleum under such terms 
and conditions as he deems appropriate.
    (f) DOE's ability to deliver petroleum on the date on which the 
defaulted purchaser was scheduled to accept delivery, under another 
contract awarded prior to the date of the contractor's default, shall 
not excuse a purchaser that has been terminated for default from either 
liquidated damages or the difference between the contract price and any 
lesser price obtained on resale.
    (g) Any disagreement with respect to the amount due the Government 
for either resale costs or liquidated damages shall be deemed to be a 
dispute and will be decided by the Contracting Officer pursuant to 
Provision No. C.34.
    (h) The term ``subcontractor'' or ``subcontractors'' includes 
subcontractors at any tier.

                     C.28 Other Government remedies

    (a) The Government's rights under this provision are in addition to 
any other right or remedy available to it by law or by virtue of this 
contract.
    (b) The Government may, without liability on its part, withhold 
deliveries of petroleum under this contract or any other contract the 
purchaser may have with DOE if payment is not made in accordance with 
this contract.
    (c) If the purchaser fails to take delivery of petroleum in 
accordance with the delivery schedule developed under the terms of the 
contract, and such tardiness is not excused under the terms of Provision 
No. C.27, but the Government does not elect to terminate that item for 
default, the purchaser nonetheless shall be liable to the Government for 
liquidated damages in the amount established by Provision No. C.29 for 
each calendar day of delay or fraction thereof until such time as it 
accepts delivery of the petroleum. In no event shall such damages be 
assessed for longer than 30 days. No purchaser that fails to perform in 
accordance with the terms of the contract shall be excused from 
liability for liquidated damages by virtue of the fact that DOE is able 
to deliver petroleum on the date on which the non-performing purchaser 
was scheduled to accept delivery, under another contract awarded prior 
to the date of default.

                         C.29 Liquidated damages

    (a) In case of failure on the part of the purchaser to perform 
within the time fixed in the contract or any extension thereof, the 
purchaser shall pay to the Government liquidated damages in the amount 
of 1 percent of the contract price of the undelivered petroleum per 
calendar day of delay or fraction thereof in accordance with paragraph 
(b) of Provision No. C.27 and paragraph (c) of Provision No. C.28.
    (b) As provided in (a) above, liquidated damages will be assessed 
for each day or fraction thereof a purchaser is late in accepting 
delivery of petroleum in accordance with this contract, unless such 
tardiness is excused under Provision No. C.27. For petroleum to be 
lifted by vessel, damages will be assessed in the event that the vessel 
has not commenced loading by 11:59 p.m. on the second day following the 
last day of the 3-day delivery window established under Provision No. 
C.5, unless the vessel has arrived in roads and its Master has presented 
a notice of readiness to the Government or its agents. Liquidated 
damages shall continue until the vessel presents its notice of 
readiness. For petroleum to be moved by pipeline, if delivery 
arrangements have not been made by the last day of the month prior to 
delivery, liquidated damages shall commence on the 3rd day of the 
delivery month until such delivery arrangements are completed; if 
delivery arrangements have been made, then liquidated damages shall 
begin on the 3rd day after the scheduled delivery date if delivery is 
not commenced and shall continue until delivery is commenced.
    (c) Any disagreement with respect to the amount of liquidated 
damages due the Government will be deemed to be a dispute and will be 
decided by the Contracting Officer pursuant to Provision No. C.34.

               C.30 Failure to perform under SPR contracts

    In addition to the usual debarment procedures, 10 CFR 625.3 provides 
procedures to make purchasers that fail to perform in accordance with 
these provisions ineligible for future contracts.

     C.31 Government options in case of impossibility of performance

    (a) In the event that DOE is unable to deliver petroleum contracted 
for to the purchaser due either to events beyond the control of the 
Government, including actions of the purchaser, or to acts of the 
Government, its agents, its contractors or subcontractors at any tier, 
the Government at its option may do either of the following:
    (1) Terminate for the convenience of the Government under Provision 
No. C.27; or
    (2) Offer different SPR crude oil streams or delivery times to the 
purchaser in substitution for those specified in the contract.
    (b) In the event that a different SPR crude oil stream than 
originally contracted for is offered to the purchaser, the contract 
price

[[Page 221]]

will be negotiated between the parties. In no event shall the negotiated 
price be less than the minimum acceptable price, if established for the 
same or similar crude oil streams in the most recent NS or determined 
after the opening of offers.
    (c) DOE's obligation in such circumstances is to use its best 
efforts, and DOE under no circumstances shall be liable to the purchaser 
for damages arising from DOE's failure to offer alternate SPR crude oil 
streams or delivery times.
    (d) If the parties are unable to reach agreement as to price, crude 
oil streams or delivery times, DOE may terminate the contract for the 
convenience of the Government under Provision No. 27.

                 C.32 Limitation of Government liability

    DOE's obligation under these SSPs and any resultant contract is to 
use its best efforts to perform in accordance therewith. The Government 
under no circumstances shall be liable thereunder to the purchaser for 
the conduct of the Government's contractors or subcontractors or for 
indirect, consequential, or special damages arising from its conduct, 
except as provided herein; neither shall the Government be liable 
thereunder to the purchaser for any damages due in whole or in part to 
causes beyond the control and without the fault or negligence of the 
Government, including but not restricted to, acts of God or public 
enemy, acts of the Government acting in its sovereign capacity, fires, 
floods, earthquakes, explosions, unusually severe weather, other 
catastrophes, or strikes.

                              C.33 Notices

    (a) Any notices required to be given by one party to the contract to 
the other in writing shall be forwarded to the addressee, prepaid, by 
U.S. registered, return receipt requested mail, express mail, telegram, 
or telex. Parties shall give each other written notice of address 
changes.
    (b) Notices to the purchaser shall be forwarded to the purchaser's 
address as it appears in the offer and in the contract.
    (c) Notices to the Contracting Officer shall be forwarded to the 
following address: U.S. Department of Energy, Strategic Petroleum 
Reserve, Project Management Office, Procurement and Sales Division, Mail 
Stop PR-651, 900 Commerce Road East, New Orleans, Louisiana 70123.

                              C.34 Disputes

    (a) This contract is subject to the Contract Disputes Act of 1978 
(41 U.S.C. Section 601 et seq.). If a dispute arises relating to the 
contract, the purchaser may submit a claim to the Contracting Officer, 
who shall issue a written decision on the dispute in the manner 
specified in 48 CFR l-33.211.
    (b) ``Claim'' means:
    (1) A written request submitted to the Contracting Officer;
    (2) For payment of money, adjustment of contract terms, or other 
relief;
    (3) Which is in dispute or remains unresolved after a reasonable 
time for its review and disposition by the Government; and
    (4) For which a Contracting Officer's decision is demanded.
    (c) In the case of dispute requests or amendments to such requests 
for payment exceeding $50,000, the purchaser shall certify at the time 
of submission as a claim, as follows:
    I certify that the claim is made in good faith, that the supporting 
data are current, accurate and complete to the best of my knowledge and 
belief and that the amount requested accurately reflects the contract 
adjustment for which the purchaser believes the Government is liable.

 Purchaser's name_______________________________________________________

 Signature______________________________________________________________

 Title__________________________________________________________________

    (d) The Government shall pay to the purchaser, interest on the 
amount found due to the purchaser on claims submitted under this 
provision at the rate established by the Department of the Treasury from 
the date the amount is due until the Government makes payment. The 
Contract Disputes Act of 1978 and the Prompt Payment Act adopt the 
interest rate established by the Secretary of the Treasury under the 
Renegotiation Act as the basis for computing interest on money owed by 
the Government. This rate is published semi-annually in the Federal 
Register.
    (e) The purchaser shall pay to DOE, interest on the amount found due 
to the Government and unpaid on claims submitted under this provision at 
the rate specified in Provision No. C.25 from the date the amount is due 
until the purchaser makes payment.
    (f) The decision of the Contracting Officer shall be final and 
conclusive and shall not be subject to review by any forum, tribunal, or 
Government agency unless an appeal or action is commenced within the 
times specified by the Contract Disputes Act of 1978.
    (g) The purchaser shall comply with any decision of the Contracting 
Officer and at the direction of the Contracting Officer shall proceed 
diligently with performance of this contract pending final resolution of 
any request for relief, claim, appeal, or action related to this 
contract.

                             C.35 Assignment

    The purchaser shall not make or attempt to make any assignment of a 
contract which incorporates these SSPs or any interest therein contrary 
to the provisions of Federal law, including the Anti-Assignment Act (41 
U.S.C. 15), which provides:

[[Page 222]]

    No contract or order, or any interest therein, shall be transferred 
by the party to whom such contract or order is given to any other party, 
and any such transfer shall cause the annulment of the contract or order 
transferred, so far as the United States are concerned. All rights of 
action, however, for any breach of such contract by the contracting 
parties, are reserved to the United States.

                        C.36 Order of precedence

    In the event of an inconsistency between the terms of the various 
parts of this contract, the inconsistency shall be resolved by giving 
precedence in the following order:
    (a) The NA and written modifications thereto;
    (b) The NS;
    (c) Those provisions of the SSPs (as published in the Federal 
Register), made applicable to the contract by the NS;
    (d) The instructions to the SPR Sales Offer Form; and
    (e) The successful offer.

                             C.37 Gratuities

    (a) The Government, by written notice to the purchaser, may 
terminate the right of the purchaser to proceed under this contract if 
it is found, after notice and hearing, by the Secretary of Energy or his 
duly authorized representative, that gratuities (in the form of 
entertainment, gifts, or otherwise) were offered by or given by the 
purchaser, or any agent or representative of the purchaser, to any 
officer or employee of the Government, with a view toward securing a 
contract or securing favorable treatment with respect to the awarding, 
amending, or making of any determinations with respect to the performing 
of such contract; provided, that the existence of the facts upon which 
the Secretary of Energy or his duly authorized representative makes such 
findings shall be in issue and may be reviewed in any competent court.
    (b) In the event that this contract is terminated as provided in 
paragraph (a) hereof, the Government shall be entitled (1) to pursue the 
same remedies against the purchaser as it could pursue in the event of a 
breach of the contract by purchaser, and (2) as a penalty in addition to 
any other damages to which it may be entitled by law, to exemplary 
damages in an amount (as determined by the Secretary of Energy or his 
duly authorized representative) which shall not be less than three nor 
more than 10 times the cost incurred by the purchaser in providing any 
such gratuities to any such officer or employee.
    (c) The rights and remedies of the Government provided in this 
clause shall not be exclusive and are in addition to any other rights 
and remedies provided by law or under this contract.

                      C.38 Officials not to benefit

    No member of or delegate to Congress, or resident commissioner, 
shall be admitted to any share or part of this contract, or to any 
benefit that may arise therefrom; but this provision shall not be 
construed to extend to this contract if made with a corporation for its 
general benefit.

                                EXHIBITS:

A - SPR Sales Offer Form
B - Sample Notice of Sale
C - Solicitation, Offer and Award -- Standard Form 33
D - SPR Crude Oil Stream Characteristics
E - SPR Delivery Point Data
F - Reserved
G - Offer Guarantee -- Letter of Credit
H - Payment and Performance Guarantee -- Letter of Credit
I - Instruction Guide for Funds Transfer Messages to Treasury
J - Form SPRPMO-F-6110.2-14 -- SPR Crude Oil Delivery Report
K - Offer Guarantee Calculation Worksheet

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                  Exhibit B--Sample Notice of Sale (NS)

    1. NS No. DE-NS-96-84P010001 is issued (date) for sale of Strategic 
Petroleum Reserve (SPR) crude oil. All references to ``Provision No.'' 
refer to the Standard Sales Provisions (SSPs) published in the Federal 
Register (date). All provisions are applicable to this sale except that 
provision No(s). (give number or numbers) are changed to read: (give 
changes). Additional provisions are hereby added (give new numbers which 
do not duplicate others in SSPs) which read: (give text).

    Note: Should the SSPs be extensively changed, the Notice of Sale 
(NS) may include, for information purposes only, a complete text of the 
SSPs as modified for the sale. Offerors are cautioned, however, that 
these complete text SSPs have no contractual status and that in the 
event of any inconsistencies, the published SSPs and the NS shall 
establish the terms and conditions for the sale.

    2. Offers and offer guarantees must be received by 1:00 p.m. local 
time on (date) at addresses for mailed and handcarried offers given in 
SSPs.
    3. Offerors must give names, addresses and telephone numbers, 
including area codes, for authorized representative of the offeror with 
whom the Government may conduct any necessary discussions.
    4. Direct questions regarding NS to (name of individual), telephone 
(504) 734-4226. Collect calls will not be accepted.
    5. Master Line Item (MLI) numbers given herein refer to those 
schedules attached as Exhibit A of the SSPs. The quantities for each MLI 
offered for sale are as follows: MLI 001: ________ bbls; MLI 002 not 
offered this sale; MLI 003: ________ bbls; MLI 004 :________ bbls; MLI 
005 not offered this sale; MLI 006: not offered this sale; MLI 007: 
________ bbls; MLI 008: ________ bbls.
    6. Offered delivery line items (DLI) and their maximums, i.e., 
offered DLIs and the Department of Energy's best estimates of the 
maximum amount of petroleum that can be moved by each delivery line item 
transportation system over the delivery period, are as follows (see 
provision No. B.16 of the SSPs):
    7. Minimum quantities which will be awarded for each delivery line 
item (DLI) are as follows:
    8. Delivery line item A, for pipeline delivery, is not offered under 
MLI 001. Offerors wishing to take delivery of MLI 001 by pipeline should 
offer to purchase quantities under delivery line items B, C, and D. If 
successful, purchasers may modify delivery method under Provision No. 
C.6.
    9. Consideration to be paid for alteration of contract delivery 
modes in accordance with provision No. C.6 is as follows:
    10. Applicable quality differentials are plus or minus ______  cents 
per degree API gravity, or part thereof, for sweet crude oil streams, 
and plus or minus ______  cents per one-tenth degree API gravity for 
sour crude oil streams.
    11. Refinery recipients' ``Superfund'' tax liability is as follows:

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                   Exhibit E--SPR Delivery Point Data

              Phillips Terminal (Formerly Seaway Terminal)

                     (Data as of December 31, 1986)

Location: Brazoria County, Texas (three miles southwest of Freeport, 
Texas on the Old Brazos River, four miles from the sea buoy)
Crude Oil Streams: Bryan Mound Sweet, Bryan Mound Sour, and Bryan Mound 
Maya
Delivery Points: Phillips Terminal marine dock facility number 2
Marine Dock Facilities and Vessel Restrictions:
Tankship Docks: 3 Docks: Nos. 1, 2 and 3
Maximum Length Overall (LOA): 750 feet during daylight and 615 feet 
during hours of darkness
Maximum Beam: 107 feet
Maximum Draft: 37.5 feet; subject to change due to the weather and 
silting conditions
Maximum Air Draft: None
Maximum Deadweight Tons (DWT): Maximum DWT at Dock No. 1 is 50,000 DWT. 
Dock Nos. 2 an 3 can accommodate up to 80,000 DWT. Maximum DWT is 
theoretical berth handling capability; however, purchasers are cautioned 
that varying harbor and channel physical constraints are the controlling 
factors as to vessel size, and they are responsible for confirming that 
proposed vessels can be accommodated.
Barge Loading Capability: Dock No. 1 has the capability to load barges 
of a minimum 30,000-barrel capacity. Its use, however, is contingent 
upon the consent of the Government and non-interference with the 
Government's obligations to other parties.
Oily Waste Reception Facilities: Facilities are available for oily bilge 
water and sludge wastes. Purchasers are responsible for making 
arrangements with the terminal and for bearing costs associated with 
such arrangements.
Customary Anchorage: Freeport Harbor sea bouy approximately 4.5 miles 
from the terminal.

               ARCO Pipeline Company, Texas City Terminal

                     (Data as of December 31, 1986)

Location: Docks 11 and 12, Texas City Harbor, Galveston County, Texas
Crude Oil Streams: Bryan Mound Sweet and Bryan Mound Sour
Delivery Points: ARCO Pipe Line Company Marine Docks (11 and 12) and 
connections to local commercial pipelines
Marine Dock Facilities and Vessel Restrictions:
Tankship Docks: 2 Docks; Nos. 11 and 12
Maximum Length Overall (LOA): 1,020 feet. Maximum bow to manifold 
centerline distance is 468 feet.
Maximum Beam: Dock 11-108 feet; Dock 12-220 feet
Maximum Draft: 39.6 feet; subject to change due to weather and silting 
conditions
Maximum Air Draft: None
Maximum Deadweight Tons (DWT): 150, 000 DWT each. Terminal permission is 
required for less than 30,000 DWT or greater than 150,000 DWT. Vessels 
larger than 120,000 DWT are restricted to daylight transit. Purchasers 
are cautioned that varying harbor and channel physical constraints are 
the controlling factors as to vessel size, and they are responsible for 
confirming that proposed vessels can be accommodated.
Barge Loading Capability: None
Oily Waste Reception Facilities: Facilities are available for oily bilge 
water and sludge wastes. Purchasers are responsible for making 
arrangements with the terminal and for bearing all costs associated with 
such arrangements.
Customary Anchorage: Bolivar Roads (breakwater) or Galveston sea buoy.

                              Sun Terminal

                     (Data as of December 31, 1986)

Location: Nederland, Texas (on the Neches River at Smiths Bluff in 
southwest Texas, 47.6 nautical miles from the bar)
Crude Oil Streams: West Hackberry Sweet, West Hackberry Sour
Delivery Points: Sun Terminal marine dock facility and Sun Terminal 
connections to local commercial pipelines
Marine Dock Facilities and Vessel Restrictions:
Tankship Docks: 5 Docks: Nos. 1, 2, 3, 4 and 5
Maximum Length Overall (LOA): 1000 feet
Maximum Beam: 145 feet
Maximum Draft: 40 feet fresh water
Maximum Air Draft: 136 feet
Maximum Deadweight Tons (DWT): Maximum DWT at Dock No. 1 is 85,000 DWT. 
Dock Nos. 2, 3, 4 and 5 can accommodate up to 130,000 DWT. Vessels 
larger than 85,000 DWT are restricted to daylight transit. Maximum DWT 
is theoretical berth handling capability; however, purchasers are 
cautioned that varying harbor and channel physical constraints are the 
controlling factors as to vessel size, and they are responsible for 
confirming that proposed vessels can be accommodated.
Barge Loading Capability: 3 Barge Docks: A, B and C. Each capable of 
handling barges up to 25,000 barrels capacity. Tankship Dock No. 1 has 
barge loading capability. Its use, however, is contingent upon the 
consent of the Government and non-interference with the Government's 
obligations to other parties.
Oily Waste Reception Facilities: Facilities are available for oily bilge 
water and

[[Page 246]]

sludge wastes. Purchasers are responsible for making arrangements with 
the terminal and for bearing costs associated with such arrangements.
Customary Anchorage: South of Sabine Bar Buoy, also at Sabine Bar for 
vessels with draft of 39 feet or less. Short-term anchorage for vessels 
of less than 40 foot draft in turning basin.

                         DOE St. James Terminal

                     (Data as of December 31, 1986)

Location: St. James Parish, Louisiana (30 miles southwest of Baton Rouge 
on the west bank of the Mississippi River at mile-marker 158.3)
Crude Oil Streams: Bayou Choctaw Sweet, Bayou Choctaw Sour, Weeks Island 
Sour
Delivery Points: St. James Terminal marine dock facility and LOCAP 
Terminal (connections to Capline interstate pipeline system and local 
commercial pipelines)
Marine Dock Facilities and Vessel Restrictions:
Tankship Docks: 2 Docks: Nos. 1 and 2
Maximum Length Overall (LOA): 940 feet
Maximum Beam: None
Maximum Draft: 45 feet
Maximum Air Draft: 153 feet less the river stage
Maximum DWT: 100,000 DWT. Maximum DWT is theoretical berth handling 
capability; however, purchasers are cautioned that varying harbor and 
channel physical constraints are the controlling factors as to vessel 
size, and they are responsible for confirming that proposed vessels can 
be accommodated.
Barge Loading Capability: None
Oily Waste Reception Facilities: Facilities are available for oily bilge 
water and sludge wastes. Purchasers are responsible for making 
arrangements with the terminal and for bearing all costs associated with 
such arrangements. Terminal can provide suitable contacts.
Customary Anchorage: Grandview Reach approximately 11 miles from the 
terminal.

                          Exhibit F--[Reserved]

              Exhibit G--Offer Guarantee--Letter of Credit

Procurement and Sales Division, Mail Stop PR-651, Project Management 
          Office, Strategic Petroleum Reserve, U.S. Department of 
          Energy, 900 Commerce Road East, New Orleans, Louisiana 70123

To the Strategic Petroleum Reserve Sales Contracting Officer:

    By order of our customer
 _______________________________________________________________________
(name and address of offeror)
we hereby establish in the U.S. Department of Energy's favor an 
irrevocable Letter of Credit, Numbered ______, for an amount not to 
exceed U.S. $______, effective immediately as an offer guarantee for the 
offer of our customer dated ______ in response to the U.S. Department of 
Energy's Notice of Sale dated ______ for the sale of Strategic Petroleum 
Reserve petroleum. Liability under this Letter of Credit shall commence 
upon the date set by the Notice of Sale, including any amendments 
thereto, for receipt of offers and expires on the twenty-first day 
thereafter. We agree that our obligation shall not be impaired by any 
extensions of the date set for receipt of offers, notice of such 
extension being hereby waived; provided, that such waiver of notice 
shall not apply to extensions extending more than thirty (30) calendar 
days beyond the period originally established for receipt of offers.
    Funds under this Letter of Credit are available to the U.S. 
Department of Energy by its draft or drafts drawn on ourselves and 
accompanied by a manually signed statement of a duly authorized official 
of the U.S. Department of Energy stating the following:
    This drawing of U.S. $______ -- (U.S. dollar amount expressed in 
word form)
 _______________________________________________________________________
against your Letter of Credit Numbered ______, dated ______ is due the 
U.S. Government because of the failure of
 _______________________________________________________________________
(name of offeror)
to honor its offer to enter into a contract for the purchase of 
petroleum from the Strategic Petroleum Reserve, in accordance with the 
U.S. Government's Notice of Sale dated ______ and the applicable 
Standard Sales Provisions (10 CFR part 625, appendix A). Upon receipt of 
the U.S. Department of Energy's draft and accompanying statement, either 
by hand or mail, at our office located at ______, we will honor the 
draft and make payment by 3 p.m. Eastern Standard Time of the next 
business day following receipt of the draft by wire transfer to the 
account of the U.S. Treasury through the Federal Reserve Communications 
System. Each wire transfer shall be formatted in accordance with 
prescribed Treasury requirements as shown in Exhibit I of the Standard 
Sales Provisions, 10 CFR part 625, appendix A.
    This Letter of Credit is subject to the Uniform Customs and Practice 
for Documentary Credits (1983 Revision, International Chamber of 
Commerce Publication No. 400) and except as may be inconsistent 
therewith, to the Uniform Commercial Code in effect on the date of 
issuance of this Letter of Credit in the state in which the issuer's 
head office within the United States is located.

Address all communications regarding
this Letter of Credit

 to_____________________________________________________________________

(address and any applicable reference)

 _______________________________________________________________________


[[Page 247]]

________________________________________________________________________
----------------------------------------.
        Yours Truly,

 _______________________________________________________________________

Authorized Signature.

                                Exhibit H

           Payment and Performance Guarantee--Letter of Credit

Procurement and Sales Division, Mail Stop PR-651, Project Management 
          Office, Strategic Petroleum Reserve, U.S. Department of 
          Energy, 900 Commerce Road East, New Orleans, Louisiana 70123

To the Strategic Petroleum Reserve Sales Contracting Officer:

    By order of our customer

 _______________________________________________________________________

(name and address)
we hereby establish in the U.S. Department of Energy's favor an 
irrevocable Letter of Credit, Numbered ______, for about U.S. $______ -- 
______ (the U.S. dollar amount expressed in word form)

 effective immediately and expiring at our office located at____________
 _______________________________________________________________________

(address)
one hundred and twenty (120) days from the date of issuance of this 
Letter of Credit, relative to an offer by our customer dated ______, to 
purchase Strategic Petroleum Reserve petroleum.
    Funds under this Letter of Credit are available to the U.S. 
Department of Energy by its draft or drafts drawn on ourselves. Such 
draft or drafts may be transmitted by telex or U.S. Mail and shall 
contain either a statement that:
    This drawing is due to the U.S. Department of Energy under your 
letter of Credit number ______ for

 _______________________________________________________________________

(customer's name). Payment of U.S. $______ to be made by wire transfer 
to U.S. Department of Energy on

 _______________________________________________________________________

(date)
under contract number DE-SC96-______. SPRCODR No. ______ for delivery of 
______ barrels of oil at U.S. $______ per barrel, plus/minus $______ per 
barrel gravity adjustment. The wire draft should include our FEDWIRE 
number and other pertinent wire information as follows: Transfer to 
TREAS Code 021030004 TREAS NYC/(89000201) Dept of Energy (SPRO) U.S. 
$______ payment for the sale of crude oil under contract No. DE-SC96- 
______. SPRCODR No. ______. Deposit Account 89X0233.91.

or a statement that:

This drawing is due the U.S. Department of Energy under your letter of 
Credit number ______ for

 _______________________________________________________________________

(customer's name).
Payment of U.S. $______ to be made by wire transfer to U.S. Department 
of Energy because of failure of company to accept delivery of petroleum 
under contract number DE-SC96- ______ at the time specified in the 
contract resulting in damages due under the contract in that amount. The 
wire draft should include our FEDWIRE number and other pertinent wire 
information as follows: Transfer to TREAS Code 021030004 TREAS NYC/
(89000201) DEPT OF ENERGY (SPRO) U.S. $______ payment for damages 
incurred by failure to accept delivery under contract number DE-SC96- 
______. Deposit Account 89X0233.91.

or both.
    We also will honor drafts presented over the Federal Reserve Bank's 
FEDWIRE system, provided that each such draft contains either a 
statement that:
    Third Party sender, re your LOC

 _______________________________________________________________________

(Letter of Credit No.)
for

 _______________________________________________________________________

(customer name)
Third Party receiver, Transfer to TREAS Code 021030004 TREAS NYC 
(89000201) Dept of Energy (SPRO) $______ payment due on

 _______________________________________________________________________

(date)
for sale of oil under contract No. ______. SPRCODR No. ______ for ______ 
bls @ $______/bl  ______ degrees at $0.______ gravity 
adjustment and $______ for delivery damages. Deposit Account 89X0233.91.

or a statement that:
    Third Party sender, re your
LOC
      (Letter of Credit No.)

 for____________________________________________________________________

      (customer name)
Third Party receiver, Transfer to TREAS Code 021030004 TREAS NYC/
89000201) DEPT OF ENERGY (SPRO) $______ payment due for damages from 
failure to perform in accordance with contract No. ______. Deposit 
Account 89X0233.91

or other wire message containing the relevant information. The wire 
draft should include our FEDWIRE number and other information pertinent 
to a request for a wire transfer of funds over FEDWIRE, as follows:
----------------------------------------
    For drafts presented by telex or FEDWIRE, the U.S. Government's 
invoice (including supporting documents) shall be forwarded to us by 
regular mail.

[[Page 248]]

    The U.S. Department of Energy may make multiple drawings totalling 
up to the amount of funds indicated in the first paragraph as available 
under this Letter of Credit.
    Upon receipt of the U.S. Department of Energy's draft and 
accompanying statement, we will honor the draft and make payment by 3 
p.m. Eastern Standard Time on the date stated in the draft (or the next 
business day if the stated date does not fall on a regular business 
day), by wire transfer of funds over FEDWIRE to account number 021030004 
of the U.S. Treasury through the Federal Reserve Communications System. 
Each wire transfer of funds shall be formatted in accordance with 
prescribed U.S. Treasury requirements as shown in Exhibit I of the 
Standard Sales Provisions, 10 CFR part 625, appendix A.
    This Letter of Credit is subject to the Uniform Customs and Practice 
for Documentary Credits (1983 Revision, International Chamber of 
Commerce Publication No. 400) and except as may be inconsistent 
therewith, to the Uniform Commercial Code in effect on the date of 
issuance of this Letter of Credit in the state in which the issuer's 
head office within the United States is located.
Address all communications regarding
this Letter of Credit

 to_____________________________________________________________________

(address and any applicable reference)
----------------------------------------
        Yours truly,

 _______________________________________________________________________

Authorized signature.

  Exhibit I--Instruction Guide for Funds Transfer Messages to Treasury

    The following instructions provide specific information which is 
required so that a funds (wire) transfer message can be transmitted to 
the Department of Treasury. The funds transfer message format is shown 
in Attachment 1. A narrative description of each item on the funds 
transfer message follows:

                                 Line 1

    Item 1--Priority Code--The priority code will be provided by the 
sending bank. (Note: Some Federal Reserve District banks may not require 
this item.).

                                 Line 2

    Item 2--Treasury Department Code--The 9-digit identifier 
``021030004'' is the routing symbol of the Treasury. This item is a 
constant and is required for all funds transfer messages sent to 
Treasury.
    Item 3--Type Code--The type code will be provided by the sending 
bank (will be a 10 or 12).

                                 Line 3

    Item 4--Sending Bank Code--This 9-digit identifier will be provided 
by the sending bank.
    Item 5--Class--The class field may be used at the option of the 
sending bank. (Note: Some Federal Reserve Districts prohibit use of this 
field.)
    Item 6--Reference Number--The reference number will be inserted by 
the sending bank to identify the transaction.
    Item 7--Amount--The amount must include the dollar sign and the 
appropriate punctuation including cents digits. This item will be 
inserted by the sending bank.

                                 Line 4

    Item 8--Sending Bank Name--The telegraphic abbreviation which 
corresponds to Item 4 will be provided by the sending bank.

                                 Line 5

    Items 9, 10, and 11--Treasury Department, Name, Agency Location 
Code, Agency Number--This item is of critical importance. It must appear 
on the funds transfer message in the precise manner as stated to allow 
for the automated processing and classification of funds transfer 
message to Treasury for credit to the Department of Energy. This item is 
comprised of a rigidly formatted, left justified, nonvariable sequence 
of characters as follows:
    TRES NYC/(89000201) Dept. of Energy (SPRO).
    Item 12--Payment Identification--The payment identification should 
be furnished by the remitter in the following manner:

                              Lines 6 and 7

    For contracts payments, either the constant ``Payment for the Sale 
of Crude Oil Under Contract ______. SPRCODR ______'' or ``Payment for 
Damages Incurred by Failure to Accept Delivery Under Contract ______'' 
will be inserted. For offer guarantees, the constant ``Offer Guarantee 
for the Sale of Crude Oil Under NS ______'' for (Name), (Taxpayer ID or 
Social Security Number) will be inserted.

                                 Line 8

    The constant ``Deposit Account 89X0233'' will be inserted.
    Important Note; Line Nos. 2 and 5 are edited by the Federal Reserve 
Bank. If the wire transfer message is not formatted as prescribed above, 
the message will be rejected by the FED Bank and returned to the sending 
bank.

[[Page 249]]

[GRAPHIC] [TIFF OMITTED] TC01OC91.033


[[Page 250]]


[GRAPHIC] [TIFF OMITTED] TC01OC91.034


[[Page 251]]



                                                    Exhibit K--Offer Guarantee Calculation Worksheet                                                    
                                                             MLI: __________________________                                                            
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  Total DLI                             
                                              MAXQ       Unit price                     DESQ          MINQ          price                      Product  
                                           (thousands/    (dollars)        DLI       (thousands/   (thousands/   (thousands/   Bond factor    (dollars) 
                                              bbls)                                     bbls)         bbls)       dollars)                              
Column                                             (A)           (B)           (C)           (D)           (E)           (F)           (G)           (H)
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Row:                                                                                                                                                    
    1...................................  ............  ............  ............  ............  ............  ............           x50  ............
    2...................................  ............  ............  ............  ............  ............  ............           x50  ............
    3...................................  ............  ............  ............  ............  ............  ............           x50  ............
    4...................................  ............  ............  ............  ............  ............  ............           x50  ............
    5...................................  ............  ............  ............  ............  ............  ............           x50  ............
    6...................................  ............  ............  ............  ............  ............  ............           x50  ............
    7...................................  ............  ............  ............  ............  ............  ............           x50  ............
                                         ---------------------------------------------------------------------------------------------------------------
      Total.............................  ............  ............  ............  ............  ............  ............  ............  ............
1. Using separate worksheet for each MLI offered against, from the SPR Sales Offer Form, enter the MLI maximum quantity offered on (expressed in        
  thousands of barrels) in Column (A), Row 1.                                                                                                           
2. Starting with the highest DLI unit price offered on the MLI from the SPR Sales Offer Form (and the highest preference if the unit prices of two or   
  more DLIs are the same) enter the unit price in Row 1, Column (B); the DLI letter in Row 1, Column (C); the DLI desired quantity is Row 1, Column (D) 
  (in thousands of barrels) and the minimum quantity in Row 1, Column (E). (The minimum quantity is either the Government's minimum contract quantity,  
  if the offer indicates the offeror will accept as little as that amount, or the desired quantity, if the offeror indicates he will accept no less than
  that amount. see instructions for the SPR Sales Offer Form.)                                                                                          
3. If either the desired quantity in Column (D), or the minimum quantity in Column (E) exceeds the maximum quantity in Column (A), you have made an     
  error either on this form or the offer form and should recheck your figures.                                                                          
4. Multiply the price in Row 1, Column (B) times the desired quantity in Column (D) (as expressed in thousands) and enter the total DLI price in Column 
  (F).                                                                                                                                                  
5. Multiply the total DLI price in Column (F) times the factor in Column (G) and enter the product in Column (H). The factor is 5% of 1000.             
6. Subtract the DLI desired quantity in Row 1, Column (D) from the maximum quantity in Row 1, Column (A). Enter the result in Row 2, Column (A). If the 
  result is zero, go to step 11.                                                                                                                        
7. Enter the next highest unit price for the MLI from the offer form in Row 2, Column (B). Enter the DLI letter, desired quantity, and minimum quantity 
  in their respective columns. If there is a maximum quantity remaining in Row 2, Column (A), but no more DLI offers, or the minimum quantity in Row 2, 
  Column (E) exceeds the maximum quantity, you may have made an error and should recheck your figures.                                                  
8. Multiply the lesser of the remaining maximum quantity in Column (A), or the desired quantity in Column (D) times the unit price (even if this        
  quantity is less than MINQ) and enter the resulting total DLI price in Column (F).                                                                    
9. Multiply Column (F) times the factor in Column (G) and enter the product in Column (H).                                                              
10. Repeat steps 6-9 for the next higher unit price until maximum quantity remaining is zero, then go to step 11.                                       
11. Sum the amounts in Column (H) and enter the total in Row 8, Column (H). Sum this amount for all the worksheets. If the sum of all the worksheets is 
  less than $10,000,000, enter the sum in the spaces marked offer bond on the SPR Sales Offer Form. If the sum exceeds $10,000,000, then enter          
  $10,000,000 on the offer form. Obtain an offer guarantee in the amount indicated on the offer form and submit with the offer. These worksheets need   
  not be submitted with the offer and should be retained for your files.                                                                                

[53 FR 20511, June 3, 1988]

[[Page 253]]



                    CHAPTER III--DEPARTMENT OF ENERGY




  --------------------------------------------------------------------

Part                                                                Page
706             Security policies and practices relating to 
                    labor-management relations..............         255
707             Workplace substance abuse programs at DOE 
                    sites...................................         257
708             DOE contractor employee protection program..         267
710             Criteria and procedures for determining 
                    eligibility for access to classified 
                    matter or special nuclear material......         275
715             Definition of nonrecourse project-financed..         296
725             Permits for access to restricted data.......         297
745             Protection of human subjects................         306
760             Domestic Uranium Program....................         317
765             Reimbursement for costs of remedial action 
                    at active uranium and thorium processing 
                    sites...................................         320
766             Uranium enrichment decontamination and 
                    decommissioning fund; procedures for 
                    special assessment of domestic utilities         329
780             Patent Compensation Board regulations.......         332
781             DOE patent licensing regulations............         340
782             Claims for patent and copyright infringement         350
783             Waiver of patent rights.....................         352
784             Patent waiver regulation....................         353
800             Loans for bid or proposal preparation by 
                    minority business enterprises seeking 
                    DOE contracts and assistance............         364
810             Assistance to foreign atomic energy 
                    activities..............................         372
820             Procedural rules for DOE nuclear activities.         379
830             Nuclear safety management...................         405
835             Occupational radiation protection...........         409
840             Extraordinary nuclear occurrences...........         450
860             Trespassing on Department of Energy property         453
861             Control of traffic at Nevada test site......         453
862             Restrictions on aircraft landing and air 
                    delivery at Department of Energy nuclear 
                    sites...................................         455
871             Air transportation of plutonium.............         458
903             Power and transmission rates................         459
904             General regulations for the charges for the 
                    sale of power from the Boulder Canyon 
                    Project.................................         464

[[Page 254]]

905             Energy Planning and Management Program......         471
960             General guidelines for the recommendation of 
                    sites for nuclear waste repositories....         480
961             Standard contract for disposal of spent 
                    nuclear fuel and/or high-level 
                    radioactive waste.......................         512
962             Byproduct material..........................         532

[[Page 255]]



PART 706--SECURITY POLICIES AND PRACTICES RELATING TO LABOR-MANAGEMENT RELATIONS--Table of Contents




                                 General

Sec.
706.1  Purpose.
706.2  Basis and scope.

   Security Policies and Procedures in National Labor Relations Board 
                               Proceedings

706.10  Policy.
706.11  Consent elections.
706.12  Administrative Law Judges.
706.13  Clearance of counsel.
706.14  DOE's role in proceedings.

                         Loyalty of Participants

706.20  Policy.

                 Contract Negotiation and Administration

706.30  Clearance of certain local union representatives.
706.31  Clearance of conciliators and arbitrators.
706.32  Security indoctrination of non-employee representatives.
706.40  Final responsibility of DOE in security matters.

    Authority: Sec. 161, 68 Stat. 948, as amended; 42 U.S.C. 2201.

    Source: 41 FR 56776, Dec. 30, 1976, unless otherwise noted.

                                 General



Sec. 706.1  Purpose.

    The purpose of this part is to set forth Department of Energy, 
hereinafter ``DOE,'' security policies and practices in the area of 
labor-management relations.



Sec. 706.2  Basis and scope.

    The specific policies contained in this part are worked out within 
the framework of DOE's general objectives for labor-management relations 
in the DOE program, namely:
    (a) Wholehearted acceptance by contractors and by labor and its 
representatives of the moral responsibility inherent in participation in 
the DOE program;
    (b) Development of procedures to assure (1) that all participants in 
the program are loyal to the United States including those whose 
participation involves the exercise of negotiating and disciplinary 
authority over bargaining units, and (2) that determination of unit, 
jurisdiction, and similar questions will not breach security;
    (c) Continuity of production at vital DOE installations;
    (d) Consistent with DOE's responsibility under the law, the least 
possible governmental interference with the efficient management 
expected from DOE contractors;
    (e) Minimum interference with the traditional rights and privileges 
of American labor.

   Security Policies and Procedures in National Labor Relations Board 
                               Proceedings



Sec. 706.10  Policy.

    It is policy of DOE that NLRB cases falling within the scope of the 
Labor Management Relations Act at the various DOE installations should 
be conducted in normal fashion whereever possible, on the basis of open 
hearings, unclassified records and published decisions. This policy does 
not preclude adoption of special arrangements which may be required for 
reasons of program security at any stage of the proceedings in 
particular areas.



Sec. 706.11  Consent elections.

    In accordance with the recommendation of the President's Commission 
on Labor Relations in the Atomic Energy Installations, it is the policy 
of DOE to encourage every effort by management and labor at DOE 
installations to determine bargaining units and representatives by 
agreement and consent elections in preference to contested proceedings 
before the National Labor Relations Board.



Sec. 706.12  Administrative Law Judges.

    By agreement with the National Labor Relations Board, a panel of 
cleared NLRB administrative law judges is maintained to facilitate 
resolution of questions as to the materiality of classified information 
in NLRB hearings and to facilitate preparation of an unclassified 
record. The assignment of individual administrative law judges to DOE 
cases remains a matter within the discretion of the National Labor 
Relations Board.

[[Page 256]]



Sec. 706.13  Clearance of counsel.

    It is recognized that clearance of counsel for the parties is 
sometimes desirable for proper preparation of a case even though the 
record is to be unclassified. Clearance of counsel makes possible their 
participation in any closed discussions needed preparatory to making an 
unclassified record. Each party is responsible for requesting clearance 
of its counsel well in advance so that clearance requirements will not 
delay the proceeding. The clearance of temporary special counsel will be 
terminated on completion of the proceeding.



Sec. 706.14  DOE's role in proceedings.

    If controversies within the scope of the Labor Management Relations 
Act arise which cannot be adjusted by mutual agreement, and contested 
proceedings before NLRB result, each party to such proceedings will 
present his own position and the evidence in support thereof with due 
regard for existing security rules. DOE will be continuously informed of 
the progress of such proceedings and will act as may appear desirable 
(a) to assure the protection of classified information; (b) to assure 
that material and relevant information is not withheld from the record 
on grounds of security if such information can be supplied in 
unclassified form; and (c) to assist in determining appropriate action 
where a decision may turn on data which can be expressed only in 
classified form.

                         Loyalty of Participants



Sec. 706.20  Policy.

    Loyalty to the United States is a paramount factor applicable to all 
participants in DOE program including those whose participation 
(although not requiring access to restricted data) involves the exercise 
of administrative, negotiating and disciplinary authority over 
bargaining units composed of employees engaged on classified work. 
Individuals involved in questions of loyalty will be given full 
opportunity to explore the questions with DOE. DOE will take such 
further steps as may be appropriate in the circumstances.

                 Contract Negotiation and Administration



Sec. 706.30  Clearance of certain local union representatives.

    It is recognized that security clearance of certain union 
representatives may be necessary to assure opportunity for effective 
representation of employees in collective bargaining relationships with 
DOE contractors. Accordingly, DOE managers may authorize investigation 
for ``Q'' clearance of union officials whose functions as 
representatives of employees may reasonably be expected to require 
access to Restricted Data under NLRB and other procedures according to 
applicable law (LMRA, 1947); to effectively perform their representation 
functions in the resolution of grievances and in other collective 
bargaining relationships with contractors; to effectuate the 
recommendation of the President's Commission on Labor Relations in the 
Atomic Energy Installations in respect to integration of the union into 
the plant organization ``as to two-way channel of communication and a 
medium of understanding between management and workers''.
    (a) In the pre-contract stage of union-management relations, the 
requirements of the Labor Management Relations Act normally will be the 
applicable criteria for determining which bargaining representatives, if 
any, will need access to classified material in the exercise of their 
functions as employee representatives.
    (b) After a bargaining relationship has been established between the 
contractor and the representatives of its employees the nature of this 
relationship and the procedures followed in it normally will be the 
controlling criteria for determination of the access to be granted to 
particular persons in carrying out their functions as employee 
representatives. For example, many contract grievance procedures 
designate by title certain union and management officials who are to 
have definite roles in the resolution of grievances under the procedure. 
Investigation for ``Q'' clearance will normally be

[[Page 257]]

in order for such officials, both company and union, employee, and non-
employee. In addition, persons not so designated may be investigated for 
clearance where the company and the union advise DOE manager that their 
established relationships contemplate access for such persons.



Sec. 706.31  Clearance of conciliators and arbitrators.

    Conciliators and arbitrators who are regularly assigned to DOE cases 
may be processed for ``Q'' clearance at the discretion of the local DOE 
manager, either on the manager's initiative or at the request of a 
contractor.



Sec. 706.32  Security indoctrination of non-employee representatives.

    All collective bargaining representatives, company and union, who 
are to have access to Restricted Data, will be given appropriate 
security indoctrination.



Sec. 706.40  Final responsibility of DOE in security matters.

    On all matters of security at all Government-owned, privately 
operated DOE installations, DOE retains absolute and final authority, 
and neither the security rules nor their administration are matters for 
collective bargaining between management and labor, insofar as DOE 
security regulations affect the collective bargaining process, the 
security policies and regulations will be made known to both parties. To 
the fullest extent feasible DOE will consult with representatives of 
management and labor in formulating security rules and regulations that 
affect the collective bargaining process.



PART 707--WORKPLACE SUBSTANCE ABUSE PROGRAMS AT DOE SITES--Table of Contents




                      Subpart A--General Provisions

Sec.
707.1  Purpose.
707.2  Scope.
707.3  Policy.
707.4  Definitions.

                          Subpart B--Procedures

707.5  Submission, approval, and implementation of a baseline workplace 
          substance abuse program.
707.6  Employee assistance, education, and training.
707.7  Random drug testing requirements and identification of testing 
          designated positions.
707.8  Applicant drug testing.
707.9  Drug testing as a result of an occurrence.
707.10  Drug testing for reasonable suspicion of illegal drug use..
707.11  Drugs for which testing is performed.
707.12  Specimen collection, handling, and laboratory analysis for drug 
          testing.
707.13  Medical review of results of tests for illegal drug use.
707.14  Action pursuant to a determination of illegal drug use.
707.15  Collective bargaining.
707.16  Records.
707.17  Permissible actions in the event of contractor noncompliance.

    Authority: 41 U.S.C. 701 et seq.; 42 U.S.C. 2012, 2013, 2051, 2061, 
2165, 2201b, 2201i, and 2201p; 42 U.S.C. 5814 and 5815; 42 U.S.C. 7151, 
7251, 7254, and 7256.

    Source: 57 FR 32656, July 22, 1992, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 707.1  Purpose.

    The Department of Energy (DOE) promulgates this part in order to 
protect the environment, maintain public health and safety, and 
safeguard the national security. This part establishes policies, 
criteria, and procedures for developing and implementing programs that 
help to maintain a workplace free from the use of illegal drugs. It 
applies to DOE contractors and subcontractors performing work at sites 
owned or controlled by DOE and operated under the authority of the 
Atomic Energy Act of 1954, as amended, and to individuals with 
unescorted access to the control areas of certain DOE reactors. The 
procedures include detection of the use of illegal drugs by current or 
prospective contractor employees in testing designated positions.



Sec. 707.2  Scope.

    (a) This part applies to the following contracts with DOE, at sites 
owned or controlled by DOE which are operated

[[Page 258]]

under the authority of the Atomic Energy Act of 1954, as amended:
    (1) Management and operating contracts; and
    (2) Other contracts or subcontracts with a value of $25,000 or more, 
and which have been determined by DOE to involve:
    (i) Access to or handling of classified information or special 
nuclear materials;
    (ii) High risk of danger to life, the environment, public health and 
safety, or national security; or
    (iii) Transportation of hazardous materials to or from a DOE site.
    (b) Individuals described in Sec. 707.7 (b) and (c) will be subject 
to random drug testing; to drug testing as a result of an occurrence, as 
described in Sec. 707.9; and to drug testing on the basis of reasonable 
suspicion, as described in Sec. 707.10.
    (c) Applicants for employment in testing designated positions will 
be tested in accordance with Sec. 707.8.



Sec. 707.3  Policy.

    It is the policy of DOE to conduct its programs so as to protect the 
environment, maintain public health and safety, and safeguard the 
national security. This policy is advanced in this rule by requiring 
contractors and subcontractors within its scope to adopt procedures 
consistent with the baseline requirements of this part, and to impose 
significant sanctions on individuals in testing designated positions or 
with unescorted access to the control areas of certain DOE reactors, who 
use or are involved with illegal drugs.



Sec. 707.4  Definitions.

    For the purposes of this part, the following definitions apply:
    Collection Site Person means a technician or other person trained 
and qualified to take urine samples and to secure urine samples for 
later laboratory analysis.
    Confirmed Positive Test means, for drugs, a finding based on a 
positive initial or screening test result, confirmed by another positive 
test on the same sample. The confirmatory test must be by the gas 
chromatography/mass spectrometry method.
    Counseling means assistance provided by qualified professionals to 
employees, especially, but not limited to those employees whose job 
performance is, or might be, impaired as a result of illegal drug use or 
a medical-behavioral problem; such assistance may include short-term 
counseling and assessment, crisis intervention, referral to outside 
treatment facilities, and follow-up services to the individual after 
completion of treatment and return to work.
    Drug Certification means a written assurance signed by an individual 
with known past illegal drug involvement, as a condition for obtaining 
or retaining a DOE access authorization, stating that the individual 
will refrain from using or being involved with illegal drugs while 
employed in a position requiring DOE access authorization (security 
clearance).
    Employee Assistance means a program of counseling, referral, and 
educational services concerning illegal drug use and other medical, 
mental, emotional, or personal problems of employees, particularly those 
which adversely affect behavior and job performance.
    Hazardous Material means any material subject to the placarding 
requirements of 49 CFR 172.504, table 1, and materials presenting a 
poison-inhalation hazard that must be placarded under the provisions of 
49 CFR 172.505.
    Illegal Drug means a controlled substance, as specified in Schedules 
I through V of the Controlled Substances Act, 21 U.S.C. 811, 812. The 
term ``illegal drugs'' does not apply to the use of a controlled 
substance in accordance with terms of a valid prescription, or other 
uses authorized by law.
    Management and Operating Contract means an agreement for the 
operation, maintenance, or support, on behalf of the Government, of a 
Government-owned or controlled research, development, special 
production, or testing establishment wholly or principally devoted to 
one or more major programs of DOE.
    Medical Review Officer (MRO) means a licensed physician, approved by 
DOE to perform certain functions under this part. The MRO is responsible 
for receiving laboratory results generated by an employer's drug testing 
program, has knowledge of illegal drug use and

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other substance abuse disorders, and has appropriate medical training to 
interpret and evaluate an individual's positive test result, together 
with that person's medical history and any other relevant biomedical 
information. For purposes of this part a physician from the site 
occupational medical department may be the MRO.
    Occurrence means any event or incident that is a deviation from the 
planned or expected behavior or course of events in connection with any 
Department of Energy or Department of Energy-controlled operation, if 
the deviation has environmental, public health and safety, or national 
security protection significance. Incidents having such significance 
include the following, or incidents of a similar nature:
    (1) Injury or fatality to any person involving actions of a 
Department of Energy contractor employee.
    (2) Involvement of nuclear explosives under Department of Energy 
jurisdiction which results in an explosion, fire, the spread of 
radioactive material, personal injury or death, or significant damage to 
property.
    (3) Accidental release of pollutants which results or could result 
in a significant effect on the public or environment.
    (4) Accidental release of radioactive material above regulatory 
limits.
    Random Testing means the unscheduled, unannounced urine drug testing 
of randomly selected individuals in testing designated positions, by a 
process designed to ensure that selections are made in a non-
discriminatory manner.
    Reasonable Suspicion means a suspicion based on an articulable 
belief that an employee uses illegal drugs, drawn from particularized 
facts and reasonable inferences from those facts, as detailed further in 
Sec. 707.10.
    Referral means the direction of an individual toward an employee 
assistance program or to an outside treatment facility by the employee 
assistance program professional, for assistance with prevention of 
illegal drug use, treatment, or rehabilitation from illegal drug use or 
other problems. Referrals to an employee assistance program can be made 
by the individual (self-referral), by contractor supervisors or 
managers, or by a bargaining unit representative.
    Rehabilitation means a formal treatment process aimed at the 
resolution of behavioral-medical problems, including illegal drug use, 
and resulting in such resolution.
    Special Nuclear Material has the same meaning as in section 11aa of 
the Atomic Energy Act of 1954 (42 U.S.C. 2014(aa)).
    Specimen Chain of Custody Form is a form used to document the 
security of the specimen from time of collection until receipt by the 
laboratory. This form, at a minimum, shall include specimen identifying 
information, date and location of collection, name and signature of 
collector, name of testing laboratory, and the names and signatures of 
all individuals who had custody of the specimen from time of collection 
until the specimen was prepared for shipment to the laboratory.
    Testing Designated Position names a position whose incumbents are 
subject to drug testing under this part.



                          Subpart B--Procedures



Sec. 707.5  Submission, approval, and implementation of a baseline workplace substance abuse program.

    (a) Each contractor subject to this part shall develop a written 
program consistent with the requirements of this part and the guidelines 
of the Department of Health and Human Services and subsequent amendments 
to those guidelines (``Mandatory Guidelines for Federal Workplace Drug 
Testing Programs,'' 53 FR 11970, April 11, 1988; hereinafter ``HHS 
Mandatory Guidelines''), and applicable to appropriate DOE sites. Such a 
program shall be submitted to DOE for review and approval, and shall 
include at least the following baseline elements:
    (1) Prohibition of the use; possession, sale, distribution, or 
manufacture of illegal drugs at sites owned or controlled by DOE;

[[Page 260]]

    (2) Plans for instruction of supervisors and employees concerning 
problems of substance abuse, including illegal drug use, and the 
availability of assistance through the employee assistance program and 
referrals to other resources, and the penalties that may be imposed upon 
employees for drug-related violations occurring on the DOE owned or 
controlled site;
    (3) Provision for distribution to all employees engaged in 
performance of the contract on the DOE owned or controlled site of a 
statement which sets forth the contractor's policies prohibiting the 
possession, sale, distribution, or manufacture of illegal drugs at the 
DOE owned or controlled site. The statement shall include notification 
to all employees that as a condition of employment under the contract, 
the employee will:
    (i) Abide by the terms of the statement; and
    (ii) Notify the employer in writing of the employee's conviction 
under a criminal drug statute for a violation occurring on the DOE owned 
or controlled site no later than 10 calendar days after such conviction;
    (4) Provision for written notification to the DOE contracting 
officer within 10 calendar days after receiving notice under paragraph 
(a)(3)(ii) of this section, from an employee or otherwise receiving 
actual notice of an employee's conviction of a drug-related offense;
    (5) Provision for imposing one of the following actions, with 
respect to any employee who is convicted of a drug-related violation 
occurring in the workplace, within 30 calendar days after receiving such 
notice of conviction under paragraph (a)(4) of this section;
    (i) Taking appropriate personnel action against such employee, up to 
and including termination; or
    (ii) Offering such employee, consistent with the contractor's 
policies, an opportunity to participate satisfactorily in a drug abuse 
assistance or rehabilitation program approved for such purposes by a 
Federal, State, or local health, law enforcement, or other appropriate 
agency. If the employee does not participate in such a rehabilitation 
program, the contractor must take appropriate personnel action, up to 
and including termination, in accordance with the contractor's policies.
    (6) Commitment to make a good faith effort to maintain a workplace 
free of substance abuse through implementation of paragraphs (a)(1) 
through (a)(5) of this section.
    (b) In addition, the following baseline elements must be included in 
programs developed by contractors that have identified testing 
designated positions (see Sec. 707.7(b));
    (1) Notification to DOE of the positions subject to drug testing;
    (2) Prohibition of individuals in testing designated positions who 
are not free from the use of illegal drugs from working in those 
positions;
    (3) Sanctions for individuals in testing designated positions who 
violate the prohibitions of paragraphs (a)(1) or (b)(2) of this section;
    (4) Provision for:
    (i) Notification, at least 60 days in advance of initiating testing, 
to those individuals subject to drug testing, unless the contractor is 
currently conducting a testing program.
    (ii) Urine drug analysis of applicants for testing designated 
positions before final selection for employment or assignment;
    (iii) Random urine drug analysis for employees in testing designated 
positions;
    (iv) Urine drug analysis for employees in testing designated 
positions on the basis of reasonable suspicion, as a result of an 
occurrence, or as a follow-up to rehabilitation; and
    (v) Random urine drug analysis and urine drug analysis on the basis 
of reasonable suspicion or as the result of an occurrence, for any 
individual with unescorted access to the control areas of certain DOE 
reactors (see Sec. 707.7(c)).
    (vi) Written notice to the contractor by an employee in a testing 
designated position of a drug-related arrest or conviction, or receipt 
of a positive drug test result regarding that employee, as soon as 
possible but within 10 calendar days of such arrest, conviction, or 
receipt; and
    (vii) Appropriate action, if any, to be taken regarding an employee 
who:
    (A) is arrested for or convicted of a drug-related offense; or

[[Page 261]]

    (B) has a positive drug test result (consistent with Sec. 707.14).
    (5) Provision to employees of the opportunity for rehabilitation, 
consistent with the contractor's policies, under circumstances as 
provided in this part (see Sec. 707.14(b));
    (6) Immediate notification to DOE security officials whenever the 
circumstances in connection with procedures under this part raise a 
security concern as provided in DOE Orders, rules and regulations; such 
circumstances including, but are not necessarily limited to, a 
determination that an individual holding a DOE access authorization has 
used an illegal drug.
    (c) Each contractor's written policy and procedures under this part 
shall comply with the requirements of 10 CFR part 710, ``Criteria and 
Procedures for Determining Eligibility for Access to Classified Matter 
or Significant Quantities of Special Nuclear Material.''
    (d) Contractors are required to submit all subcontracts they believe 
to be within the scope of this part to DOE for a determination as to 
whether the subcontract falls within the scope of this part. 
Subcontractors so determined to be within the scope of this part shall 
be required to agree to comply with its requirements, as a condition of 
eligibility for performing the subcontract work. Each subcontractor 
subject to this part shall submit its plan to the appropriate prime 
contractor for approval; the contractor shall be responsible for 
periodically monitoring the implementation of the subcontractor's 
program for effectiveness and compliance with this part.
    (e) In reviewing each proposed workplace substance abuse plan, DOE 
shall decide whether the program meets the applicable baseline 
requirements established by this part. The responsible DOE official will 
reject proposed workplace substance abuse plans that are deemed not to 
meet the baseline requirements. DOE shall provide the contractor with a 
written notification regarding the decision as to the acceptability of 
the plan. Nothing in this rule is intended to prohibit any contractor 
subject to this part from implementing workplace substance abuse 
requirements additional to those of the baseline, including drug testing 
employees and applicants for employment in any position and testing for 
any illegal drugs. However, the contractor shall inform DOE of such 
additional requirements at least 30 days prior to implementation.
    (f) DOE shall periodically review and evaluate each contractor's 
program, including the contractor's oversight of the covered 
subcontractors, to assure effectiveness and compliance with this part.
    (g) Contractors or proposers will submit their program to DOE for 
review within 30 days of notification by DOE that the contract or 
proposed contract falls within the scope of this part. Workplace 
substance abuse programs, as provided in this part, shall be implemented 
within 30 days of approval by DOE. DOE may grant an extension to the 
notification or implementation period, as warranted by local conditions. 
Implementation may require changes to collective bargaining agreements 
as discussed in Sec. 707.15 of this part.
    (h) To assure consistency of application, DOE shall periodically 
review designated contracts and testing designated positions included in 
the workplace substance abuse plans approved by DOE. DOE will also 
periodically review implementation of programs conducted by prime 
contractors, to assure consistency of application among prime contracts 
(and subcontracts where appropriate) throughout DOE.
    (i) This part preempts any State or local law, rule, regulation, 
order, or standard to the extent that:
    (1) compliance with both the State or local requirement and any 
requirements in this part is not possible; or
    (2) compliance with the State or local requirement is an obstacle to 
the accomplishments and execution of any requirement in this part.



Sec. 707.6  Employee assistance, education, and training.

    Contractor programs shall include the following or appropriate 
alternatives:
    (a) Employee assistance programs emphasizing preventive services, 
education, short-term counseling, coordination and referral to outside 
agencies,

[[Page 262]]

and follow-up. These services shall be available to all contractor on-
site employees involved in the DOE contract. The contractor has no 
obligation to pay the costs of any individual's counseling, treatment, 
or rehabilitation beyond those services provided by the contractor's 
employee assistance program, except as provided for in the contractor's 
benefits programs. DOE undertakes no obligation to pay for any 
individual's counseling, rehabilitation, or treatment, unless 
specifically provided for by contract.
    (b) Education and training programs for on-site employees on a 
periodic basis, which will include, at a minimum, the following 
subjects:
    (1) For all on-site employees: Health aspects of substance abuse, 
especially illegal drug use; safety, security, and other workplace-
related problems caused by substance abuse, especially illegal drug use; 
the provisions of this rule; the employer's policy; and available 
employee assistance services.
    (2) For managers and supervisors:
    (i) The subjects listed in paragraph (b)(1) of this section;
    (ii) Recognition of deteriorating job performance or judgment, or 
observation of unusual conduct which may be the result of possible 
illegal drug use;
    (iii) Responsibility to intervene when there is deterioration in 
performance, or observed unusual conduct, and to offer alternative 
courses of action that can assist the employee in returning to 
satisfactory performance, judgment, or conduct, including seeking help 
from the employee assistance program;
    (iv) Appropriate handling and referral of employees with possible 
substance abuse problems, especially illegal drug use; and
    (v) Employer policies and practices for giving maximum consideration 
to the privacy interests of employees and applicants.



Sec. 707.7  Random drug testing requirements and identification of testing designated positions.

    (a)(1) Each workplace substance abuse program will provide for 
random testing for evidence of the use of illegal drugs of employees in 
testing designated positions identified in this section.
    (2) Programs developed under this part for positions identified in 
paragraph (b)(3) of this section shall provide for random tests at a 
rate equal to 50 percent of the total number of employees in testing 
designated positions for each 12 month period. Employees in the 
positions identified in paragraphs (b)(1), (b)(2), and (c) of this 
section will be subject to random testing at a rate equal to 100 percent 
of the total number of employees identified, and those identified in 
paragraphs (b)(1) and (b)(2) of this section may be subject to 
additional drug tests.
    (b) The testing designated positions subject to random drug testing 
are:
    (1) Positions determined to be covered by the Personnel Security 
Assurance Program (PSAP), codified at 10 CFR part 710. PSAP employees 
will be subject to the drug testing standards of this part and any 
additional requirements of the PSAP rule.
    (2) Positions which entail critical duties that require an employee 
to perform work which affords both technical knowledge of and access to 
nuclear explosives sufficient to enable the individual to cause a 
detonation (high explosive or nuclear), in what is commonly known as the 
Personnel Assurance Program (PAP). PAP employees will be subject to the 
drug testing standards of this part and any additional requirements of 
the PAP program.
    (3) Positions identified by the contractor which entail duties where 
failure of an employee adequately to discharge his or her position could 
significantly harm the environment, public health or safety, or national 
security, such as:
    (i) Pilots;
    (ii) Firefighters;
    (iii) Protective force personnel, exclusive of those covered in 
paragraphs (b)(1) or (b)(2) of this section, in positions involving use 
of firearms where the duties also require potential contact with, or 
proximity to, the public at large;
    (iv) Personnel directly engaged in construction, maintenance, or 
operation of nuclear reactors; or
    (v) Personnel directly engaged in production, use, storage, 
transportation,

[[Page 263]]

or disposal of hazardous materials sufficient to cause significant harm 
to the environment or public health and safety.
    (4) Other positions determined by the DOE, after consultation with 
the contractor, to have the potential to significantly affect the 
environment, public health and safety, or national security.
    (c) Each contractor shall require random testing of any individual, 
whether or not an employee, who is allowed unescorted access to the 
control areas of the following DOE reactors: Advanced Test Reactor 
(ATR); C Production Reactor (C); Experimental Breeder Reactor II (EBR-
II); Fast Flux Test Facility (FFTF); High Flux Beam Reactor (HFBR); High 
Flux Isotope Reactor (HFIR); K Production Reactor (K); L Production 
Reactor (L); N Production Reactor (N); Oak Ridge Research Reactor (ORR); 
and P Production Reactor (P). A confirmed positive test shall result in 
such an individual being denied unescorted access. If such an individual 
is not an employee of the contractor, that individual may be granted 
unescorted access only after the individual meets the conditions 
established in Sec. 707.14(d) of this part. If, after restoration of 
unescorted access, such an individual is determined to have used illegal 
drugs for a second time, unescorted access shall be denied for a period 
of not less than three (3) years. Such an individual thereafter shall be 
granted unescorted access only upon a determination by DOE that a grant 
of unescorted access to the individual presents no unacceptable safety 
or security risk. If such an individual is an employee, that individual 
is subject to the other requirements of this part, including appropriate 
disciplinary measures.
    (d) A position otherwise subject to testing under this part may be 
exempted from such testing if it is within the scope of another 
comparable Federal drug testing program, as determined by DOE, after 
consultation with the contractor, to avoid unnecessary multiple tests.



Sec. 707.8  Applicant drug testing.

    An applicant for a testing designated position will be tested for 
the use of illegal drugs before final selection for employment or 
assignment to such a position. Provisions of this part do not prohibit 
contractors from conducting drug testing on applicants for employment in 
any position.



Sec. 707.9  Drug testing as a result of an occurrence.

    When there is an occurrence which is required to be reported to DOE 
by the contractor, under contract provisions incorporating applicable 
DOE Orders, rules, and regulations, it may be necessary to test 
individuals in testing designated positions, or individuals with 
unescorted access to the control areas of the DOE reactors listed in 
Sec. 707.7(c), for the use of illegal drugs, if such individuals could 
have caused or contributed to the conditions which caused the 
occurrence. For an occurrence requiring immediate notification or 
reporting as required by applicable DOE Orders, rules, and regulations, 
the contractor will require testing as soon as possible after the 
occurrence but within 24 hours of the occurrence, unless DOE determines 
that it is not feasible to do so. For other occurrences requiring 
notifications to DOE as required by applicable DOE Orders, rules, and 
regulations, the contractor may require testing.



Sec. 707.10  Drug testing for reasonable suspicion of illegal drug use.

    (a)(1) It may be necessary to test any employee in a testing 
designated position, or individuals with unescorted access to the 
control areas of the DOE reactors listed in Sec. 707.7(c), for the use 
of illegal drugs, if the behavior of such an individual creates the 
basis for reasonable suspicion of the use of illegal drugs. Two or more 
supervisory or management officials, at least one of whom is in the 
direct chain of supervision of the employee, or is a physician from the 
site occupational medical department, must agree that such testing is 
appropriate. Reasonable suspicion must be based on an articulable belief 
that an employee uses illegal drugs, drawn from particularized facts and 
reasonable inferences from those facts.
    (2) Such a belief may be based upon, among other things:

[[Page 264]]

    (i) Observable phenomena, such as direct observation of:
    (A) The use or possession of illegal drugs; or
    (B) The physical symptoms of being under the influence of drugs;
    (ii) A pattern of abnormal conduct or erratic behavior;
    (iii) Arrest for a conviction of a drug related offense, or the 
identification of the individual as the focus of a criminal 
investigation into illegal drug possession use, or trafficking;
    (iv) Information that is either provided by a reliable and credible 
source or is independently corroborated;
    (v) Evidence that an employee has tampered with a drug test; or
    (vi) Temperature of the urine specimen is outside the range of 32.5-
37.7 degrees centigrade or 90.5-99.8 degrees Fahrenheit.
    (b) The fact that an employee had a confirmed positive test for the 
use for the use of illegal drugs at some prior time, or has undergone a 
period of rehabilitation or treatment, will not, in and of itself, be 
grounds for testing on the basis of reasonable suspicion.
    (c) The requirements of this part relating to the testing for the 
use of illegal drugs are not intended to prohibit the contractor from 
pursuing other existing disciplinary procedures or from requiring 
medical evaluation of any employee exhibiting aberrant or unusual 
behavior.



Sec. 707.11  Drugs for which testing is performed.

    Where testing is performed under this part, at a minimum, 
contractors will be required to test for the use of the following drugs 
or classes of drugs: marijuana; cocaine; opiates; phencyclidine; and 
amphetamines. However, when conducting reasonable suspicion or 
occurrence testing, the contractor may test for any drug listed in 
Schedules I or II of the Controlled Substances Act.



Sec. 707.12  Specimen collection, handling and laboratory analysis for drug testing.

    (a) Procedures for providing urine specimens must allow individual 
privacy, unless there is reason to believe that a particular individual 
may alter or substitute the specimen to be provided. Contractors shall 
utilize a chain of custody procedure for maintaining control and 
accountability from point of collection to final disposition of 
specimens, and testing laboratories shall use appropriate cutoff levels 
in screening specimens to determine whether they are negative or 
positive for a specific drug, consistent with the HHS Mandatory 
Guidelines (see Sec. 707.5(a)). The contractor shall ensure that only 
testing laboratories certified by the Department of Health and Human 
Services, under subpart C of the HHS Mandatory Guidelines are utilized.
    (b)(1) If the individual refuses to cooperate with the urine 
collection (e.g., refusal to provide a specimen, or to complete 
paperwork), then the collection site person shall inform the MRO and 
shall document the non-cooperation on the specimen chain of custody 
form. The MRO shall report the failure to cooperate to the appropriate 
management authority, who shall report to DOE if the individual holds an 
access authorization. Individuals so failing to cooperate shall be 
treated in all respects as if they had been tested and had been 
determined to have used an illegal drug. The contractor may apply 
additional sanctions consistent with its disciplinary policy.
    (2) The collection site person shall ascertain that there is a 
sufficient amount of urine to conduct an initial test, a confirmatory 
test, and a retest, in accordance with the HHS Mandatory Guidelines. If 
there is not a sufficient amount of urine, additional urine will be 
collected in a separate container. The individual may be given 
reasonable amounts of liquid and a reasonable amount of time in which to 
provide the specimen required. The individual and the collection site 
person must keep the specimen in view at all times. When collection is 
complete, the partial specimens will be combined in a single container. 
In the event that the individual fails to provide a sufficient amount of 
urine, the amount collected will be noted on the ``Urine Sample Custody 
Document.'' In this case, the collection site person will telephone the 
individual's supervisor who will determine the next appropriate action.

[[Page 265]]

This may include deciding to reschedule the individual for testing, to 
return the individual to his or her work site and initiate disciplinary 
action, or both.



Sec. 707.13  Medical review of results of tests for illegal drug use.

    (a) All test results shall be submitted for medical review by the 
MRO. A confirmed positive test for drugs shall consist of an initial 
test performed by the immunoassay method, with positive results on that 
initial test confirmed by another test, performed by the gas 
chromatography/mass spectrometry method (GC/MS). This procedure is 
described in paragraphs 2.4 (e) and (f) of the HHS Mandatory Guidelines.
    (b) The Medical Review Officer will consider the medical history of 
the employee or applicant, as well as any other relevant biomedical 
information. When there is a confirmed positive test result, the 
employee or applicant will be given an opportunity to report to the MRO 
the use of any prescription or over-the-counter medication. If the MRO 
determines that there is a legitimate medical explanation for a 
confirmed positive test result, consistent with legal and non-abusive 
drug use, the MRO will certify that the test results do not meet the 
conditions for a determination of use of illegal drugs. If no such 
certification can be made, the MRO will make a determination of use of 
illegal drugs. Determinations of use of illegal drugs will be made in 
accordance with the criteria provided in the Medical Review Officer 
Manual issued by the Department of Health and Human Services [DHHS 
Publication No. (ADM) 88-1526].



Sec. 707.14  Action pursuant to a determination of illegal drug use.

    (a) When an applicant for employment has been tested and determined 
to have used an illegal drug, processing for employment will be 
terminated and the applicant will be so notified.
    (b)(1) When an employee who is in a testing designated position has 
been tested and determined to have used an illegal drug, the contractor 
shall immediately remove that employee from the testing designated 
position; if such employee also holds, or is an applicant for, an access 
authorization, then the contractor shall immediately notify DOE security 
officials for appropriate adjudication. If this is the first 
determination of use of illegal drugs by that employee (for example, the 
employee has not previously signed a DOE drug certification, and has not 
previously tested positive for use of illegal drugs), the employee may 
be offered a reasonable opportunity for rehabilitation, consistent with 
the contractor's policies. If rehabilitation is offered, the employee 
will be placed in a non-testing designated position, which does not 
require a security clearance, provided there is such an acceptable 
position in which the individual can be placed during rehabilitation; if 
there is no acceptable non-testing designated position, the employee 
will be placed on sick, annual, or other leave status, for a reasonable 
period sufficient to permit rehabilitation. However, the employee will 
not be protected from disciplinary action which may result from 
violations of work rules other than a positive test result for illegal 
drugs.
    (2) Following a determination by the site occupational medical 
department, after counseling or rehabilitation, that the employee can 
safely return to duty, the contractor may offer the employee 
reinstatement, in the same or a comparable position to the one held 
prior to the removal, consistent with the contractor's policies and the 
requirements of 10 CFR part 710. Failure to take the opportunity for 
rehabilitation, if it has been made available, for the use of illegal 
drugs, will require significant disciplinary action up to and including 
removal from employment under the DOE contract, in accordance with the 
contractor's policies. Any employee who is twice determined to have used 
illegal drugs shall in all cases be removed from employment under the 
DOE contract. Also, if an employee who has signed a DOE drug 
certification violates the terms of the certification, DOE shall conduct 
a timely review of the circumstances of such violation, and the 
individual's continued eligibility for a DOE access authorization shall 
be determined under the provisions of 10 CFR part 710, ``Criteria and 
Procedures for Determining Eligibility for Access to Classified

[[Page 266]]

Matter or Significant Quantities of Special Nuclear Material.''
    (c) An employee who has been removed from a testing designated 
position because of the use of illegal drugs may not be returned to such 
position until that employee has:
    (1) Successfully completed counseling or a program of 
rehabilitation;
    (2) Undergone a urine drug test with a negative result; and
    (3) Been evaluated by the site occupational medical department, 
which has determined that the individual is capable of safely returning 
to duty.
    (d) An individual who is not an employee of a contractor who has 
been denied unescorted access because of the use of illegal drugs may 
not have the unescorted access reinstated until that individual has:
    (1) Provided evidence of successful completion of counseling or a 
program of rehabilitation;
    (2) Undergone a urine drug test with a negative result; and
    (3) Been evaluated by the site occupational medical department, 
which has determined that the individual is capable of being permitted 
unescorted access to a reactor control area.
    (e) If a DOE access authorization is involved, DOE must be notified 
of a contractor's intent to return to a testing designated position an 
employee removed from such duty for use of illegal drugs. Positions 
identified in Sec. 707.7(b)(1) and (2) will require DOE approval prior 
to return to a testing designated position.
    (f) An individual who has been notified of a positive test result 
may request a retest of the same sample at the same or another certified 
laboratory. The individual shall bear the costs of transportation and/or 
testing of the specimen. The contractor will inform employees of their 
right to request a retest under the provisions of this paragraph.
    (g) After an employee determined to have used illegal drugs has been 
returned to duty, the employee shall be subject to unannounced drug 
testing, at intervals, for a period of 12 months.



Sec. 707.15  Collective bargaining.

    When establishing drug testing programs, contractors who are parties 
to collective bargaining agreements will negotiate with employee 
representatives, as appropriate, under labor relations laws or 
negotiated agreements. Such negotiation, however, cannot change or alter 
the requirements of this rule because DOE security requirements 
themselves are non-negotiable under the security provisions of DOE 
contracts. Employees covered under collective bargaining agreements will 
not be subject to the provisions of this rule until those agreements 
have been modified, as necessary; provided, however, that if one year 
after commencement of negotiation the parties have failed to reach 
agreement, an impasse will be determined to have been reached and the 
contractor will unilaterally implement the requirements of this rule.



Sec. 707.16  Records.

    (a) Confirmed positive test results shall be provided to the Medical 
Review Officer and other contractor and DOE officials with a need to 
know. Any other disclosure may be made only with the written consent of 
the individual.
    (b) Contractors shall maintain maximum confidentiality of records 
related to illegal drug use, to the extent required by applicable 
statutes and regulations (including, but not limited to, 42 U.S.C. 
290dd-3, 42 U.S.C. 290ee-3, and 42 CFR part 2). If such records are 
sought from the contractor for criminal investigations, or to resolve a 
question or concern relating to the Personnel Assurance Program 
certification or access authorization under 10 CFR part 710, any 
applicable procedures in statute or regulation for disclosure of such 
information shall be followed. Moreover, owing to DOE's express 
environmental, public health and safety, and national security 
interests, and the need to exercise proper contractor oversight, DOE 
must be kept fully apprised of all aspects of the contractor's program, 
including such information as incidents involving reasonable suspicion, 
occurrences, and confirmed test results, as well as information 
concerning test results in the aggregate.
    (c) Unless otherwise approved by DOE, the contractors shall ensure 
that

[[Page 267]]

all laboratory records relating to positive drug test results, including 
initial test records and chromatographic tracings, shall be retained by 
the laboratory in such a manner as to allow retrieval of all information 
pertaining to the individual urine specimens for a minimum period of 
five years after completion of testing of any given specimen, or longer 
if so instructed by DOE or by the contractor. In addition, a frozen 
sample of all positive urine specimens shall be retained by the 
laboratory for at least six months, or longer if so instructed by DOE.
    (d) The contractor shall maintain as part of its medical records 
copies of specimen chain of custody forms.
    (e) The specimen chain of custody form will contain the following 
information:
    (1) Date of collection;
    (2) Tested person's name;
    (3) Tested employee/applicant's social security number or other 
identification number unique to the individual;
    (4) Specimen number;
    (5) Type of test (random, applicant, occurrence, reasonable 
suspicion, follow-up, or other);
    (6) Temperature range of specimen;
    (7) Remarks regarding unusual behavior or conditions;
    (8) Collector's signature; and
    (9) Certification signature of specimen provider certifying that 
specimen identified is in fact the specimen the individual provided.



Sec. 707.17  Permissible actions in the event of contractor noncompliance.

    Actions available to DOE in the event of contractor noncompliance 
with the provisions of this part or otherwise performing in a manner 
inconsistent with its approved program include, but are not limited to, 
suspension or debarment, contract termination, or reduction in fee in 
accordance with the contract terms.



PART 708--DOE CONTRACTOR EMPLOYEE PROTECTION PROGRAM--Table of Contents




                      Subpart A--General Provisions

Sec.
708.1  Purpose.
708.2  Scope.
708.3  Policy.
708.4  Definitions.

                          Subpart B--Procedures

708.5  Prohibition against reprisals.
708.6  Filing a complaint.
708.7  Attempt at informal resolution.
708.8  Acceptance of complaint and investigation.
708.9  Hearing.
708.10  Initial agency decision.
708.11  Final decision and order.
708.12  Implementation of decision.
708.13  Communication of program to contractor employees.
708.14  Alternative means of resolution.
708.15  Time frames.

    Authority: 42 U.S.C. 2201(b), 2201(c), 2201(i), and 2201(p); 42 
U.S.C. 5814 and 5815; 42 U.S.C. 7251, 7254 7255, and 7256.

    Source: 57 FR 7541, Mar. 3, 1992, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 708.1  Purpose.

    This part establishes procedures for timely and effective processing 
of complaints by employees of contractors performing work at sites owned 
or leased by the Department of Energy (DOE), concerning alleged 
discriminatory actions taken by their employers in retaliation for the 
disclosure of information relative to health and safety, mismanagement, 
and other matters as provided in Sec. 708.5(a), for the participation in 
proceedings before Congress or pursuant to this part, or for the refusal 
to engage in illegal or dangerous activities.



Sec. 708.2  Scope.

    (a) This part is applicable to complaints of reprisal filed after 
the effective date of this part that stem from disclosures, 
participations, or refusals involving health and safety matters, if the 
underlying procurement contract described in Sec. 708.4 contains a 
clause requiring compliance with all applicable safety and health 
regulations and requirements of DOE (48 CFR 970.5204-2). For all other 
complaints, this part is applicable to acts of reprisal occurring after 
the effective date of this part if the underlying procurement contract 
described in Sec. 708.4 contains a clause requiring compliance with this 
part.
    (b) This part is applicable to employees (defined in Sec. 708.4) of 
contractors

[[Page 268]]

(defined in Sec. 708.4) performing work on-site at DOE-owned or -leased 
facilities, unless the procedures contained in 29 CFR part 24, 
``Procedures for the Handling of Discrimination Complaints under Federal 
Employee Protection Statutes,'' are applicable. The procedures of this 
part 708 do not apply to contractor employees at government-owned, 
government-operated facilities, or to complaints of reprisal stemming 
from, or relating to, discrimination by contractors on a basis such as 
race, color, religion, sex, age, national origin, or other similar basis 
not specifically discussed herein. The protections afforded by this part 
are not applicable to any employee who, acting without direction from 
his or her employer, deliberately causes, or knowingly participates in 
the commission of, any misconduct set forth in Sec. 708.5 that is the 
subject of the disclosure.
    (c) For complaints not covered by Sec. 708.5(a), the Director, at 
his discretion and for good cause shown, may accept a complaint for 
processing under this part. However, in no event will coverage under the 
rule be extended to employees of contractors over whom DOE does not 
exercise enforcement authority with respect to the requirements of this 
part. A determination by the Director not to accept a complaint pursuant 
to this subsection may be appealed to the Secretary of designee.



Sec. 708.3  Policy.

    It is the policy of DOE that employees of contractors at DOE 
facilities should be able to provide information to DOE, to Congress, or 
to their contractors concerning violations of law, danger to health and 
safety, or matters involving mismanagement, gross waste of funds, or 
abuse of authority, to participate in proceedings conducted before 
Congress or pursuant to this part, and to refuse to engage in illegal or 
dangerous activities without fear of employer reprisal. Contractor 
employees who believe they have been subject to such reprisal may submit 
their complaints to DOE for review and appropriate administrative remedy 
as provided in Secs. 708.6 through 708.11 of this part.



Sec. 708.4  Definitions.

    For purposes of this part--
    Contractor means a seller of goods or services who is a party to a 
procurement contract as follows:
    (1) A Management and Operating Contract;
    (2) Other types of procurement contracts; but this part shall apply 
to such contracts only with respect to work performed on-site at a DOE-
owned or

-leased facility; or
    (3) Subcontracts under paragraphs (1) or (2) of this definition; but 
this part shall apply to such subcontracts only with respect to work 
performed on-site at a DOE-owned or -leased facility.
    Day or days mean(s) calendar day(s).
    Director means, unless otherwise indicated, the Director, Office of 
Contractor for Employee Protection.
    Discrimination or discriminatory acts mean(s) discharge, demotion, 
reduction in pay, coercion, restraint, threats, intimidation, or other 
similar negative action taken against a contractor employee by a 
contractor, as a result of the employee's disclosure of information, 
participation in proceedings, or refusal to engage in illegal or 
dangerous activities, as set forth in Sec. 708.5(a) of this part.
    Employee or employees mean(s) any person(s) employed by a 
contractor, and any person(s) previously employed by a contractor if 
such prior employee's complaint alleges that employment was terminated 
in violation of Sec. 708.5. The determination of whether a person has 
standing as an employee shall be made without regard to the on- or off-
site locale of the person's work performance.
    Field organization means a DOE field-based office that is 
responsible for the management, coordination, and administration of 
operations under its purview.
    Head of Field Element means an individual who is the manager or head 
of a DOE operations office, other field office, or field organization.
    Hearing Officer means an individual appointed by the Director, 
Office of Hearings and Appeals, pursuant to Sec. 708.9.
    Management and Operating Contract means an agreement under which DOE

[[Page 269]]

contracts for the operation, maintenance, or support, on its behalf, of 
a Government-owned or -leased research, development, special production, 
or testing establishment wholly or principally devoted to one or more of 
the programs of DOE.
    Official of DOE means any officer or employee of DOE whose duties 
include program management or the investigation or enforcement of any 
law, rule, or regulation relating to Government contractors or the 
subject matter of a contract.
    Party or parties mean(s) any employee, contractor, or other party 
named in a proceeding under this part.
    Work performed on-site means work performed within the boundaries of 
a DOE-owned or -leased facility. However, work will not be considered to 
be performed ``on-site'' when pursuant to the contract it is the only 
work performed within the boundaries of a DOE-owned or -leased facility, 
and it is ancillary to the primary purpose of the contract (e.g., on-
site delivery of goods produced off-site).



                          Subpart B--Procedures



Sec. 708.5  Prohibition against reprisals.

    (a) A DOE contractor covered by this part may not discharge or in 
any manner demote, reduce in pay, coerce, restrain, threaten, 
intimidate, or otherwise discriminate against any employee because the 
employee (or any person acting pursuant to a request of the employee) 
has--
    (1) Disclosed to an official of DOE, to a member of Congress, or to 
the contractor (including any higher tier contractor), information that 
the employee in good faith believes evidences--
    (i) A violation of any law, rule, or regulation;
    (ii) A substantial and specific danger to employees or public health 
or safety; or
    (iii) Fraud, mismanagement, gross waste of funds, or abuse of 
authority;
    (2) Participated in a Congressional proceeding or in a proceeding 
conducted pursuant to this part; or
    (3) Refused to participate in an activity, policy, or practice 
when--
    (i) Such participation--
    (A) Constitutes a violation of a Federal health or safety law; or
    (B) Causes the employee to have a reasonable apprehension of serious 
injury to the employee, other employees, or the public due to such 
participation, and the activity, policy, or practice causing the 
employee's apprehension of such injury--
    (1) Is of such a nature that a reasonable person, under the 
circumstances then confronting the employee, would conclude there is a 
bona fide danger of an accident, injury, or serious impairment of health 
or safety resulting from participation in the activity, policy, or 
practice; and
    (2) The employee is not required to participate in such dangerous 
activity, policy, or practice because of the nature of his or her 
employment responsibilities;
    (ii) The employee, before refusing to participate in an activity, 
policy, or practice has sought from the contractor and has been unable 
to obtain a correction of the violation or dangerous activity, policy, 
or practice; and
    (iii) The employee, within 30 days following such refusal, discloses 
to an official of DOE, a member of Congress, or the contractor, 
information regarding the violation or dangerous activity, policy, or 
practice, and explaining why he has refused to participate in the 
activity.
    (b) An employee disclosure, participation, or refusal described in 
Sec. 708.5(a) (1), (2), or (3) shall be subject to this part only if it 
relates to activities alleged to have occurred under work performed by 
the contractor for DOE. This part is not intended to override any other 
provision or requirement of any regulation pertaining to Restricted 
Data, national security information, or any other classified or 
sensitive information, and the protections of this part shall not apply 
to any person who, in the course of making a disclosure described in 
Sec. 708.5(a) (1) or (3), or in the course of participating in a 
proceeding described in Sec. 708.5(a)(2), improperly discloses 
Restricted Data, national security information, or any other classified 
or sensitive information in violation of any Executive Order, statute, 
or regulation.

[[Page 270]]



Sec. 708.6  Filing a complaint.

    (a) An employee who believes that he or she has been discriminated 
against in violation of this part, and who has not, with respect to the 
same facts, pursued a remedy available under State or other applicable 
law, may file a complaint with DOE through the Head of Field Element at 
the field organization. For purposes of this part, a complaint shall be 
deemed to have been pursued under State or other applicable law if the 
employee has, pursuant to proceedings established or mandated by State 
or other applicable law, at any time prior to, or concurrently with, the 
filing of a complaint with DOE, or at any time during the processing of 
a complaint filed with DOE, filed or submitted any complaint, action, 
grievance, or other pleading with respect to that same matter. The 
pursuit of a remedy under a negotiated collective bargaining agreement 
will be considered the pursuit of a remedy through internal company 
grievance procedures and not the pursuit of a remedy under State or 
other applicable law. The limitations period specified in Sec. 708.6(d) 
shall be suspended upon the filing of a complaint pursuant to State or 
other applicable law, and the mere filing of a complaint pursuant to 
State or other applicable law shall not bar the employee from re-
instituting or filing a complaint with DOE if the matter cannot be 
resolved under State or other applicable law due to a lack of 
jurisdiction.
    (b) The Head of Field Element may designate an individual to serve 
as point of contact for processing the complaint and for undertaking the 
responsibilities under Sec. 708.7.
    (c) A complaint filed under paragraph (a) of this section need not 
be in any specific form provided it is signed by the complainant and 
contains the following: A statement setting forth specifically the 
nature of the alleged discriminatory act, and the disclosure, 
participation or refusal giving rise to such act; a statement that the 
complainant has not, as described in paragraph (a) of this section, 
pursued a remedy available under State or other applicable law; and an 
affirmation that all facts contained in the complaint are true and 
correct to the best of the complainant's knowledge and belief. 
Additionally, the complaint must contain a statement affirming that:
    (1) All attempts at resolution through an internal company grievance 
procedure have been exhausted;
    (2) The company grievance procedure is ineffectual or exposes the 
complainant to employer reprisals; or
    (3) The company has no such procedure.
    The complaint must state the factual basis for such affirmation; 
and, if applicable, the date on which internal company grievance 
procedures were terminated and the reasons for termination.
    (d) A complaint filed pursuant to paragraph (a) of this section must 
be filed within 60 days after the alleged discriminatory act occurred or 
within 60 days after the complainant knew, or reasonably should have 
known, of the alleged discriminatory act, whichever is later. In cases 
where the employee has attempted resolution through internal company 
grievance procedures as set forth in paragraph (c) of this section, the 
60-day period for filing a complaint shall be tolled during such 
resolution period and shall not again begin to run until the day 
following termination of such dispute-resolution efforts.
    (e) Within 15 days of receipt of a complaint filed pursuant to 
paragraph (a) of this section, the Head of Field Element or designee 
shall notify:
    (1) The contractor, person, or persons named in the complaint, and
    (2) The Director, of the filing of the complaint.

A copy of the complaint shall be forwarded to the Director.
    (f) Any person or party responsible for the conduct of any 
investigation or proceeding pursuant to this part shall ensure that 
appropriate safeguards are implemented to accommodate circumstances 
involving Restricted Data, national security information, or any other 
classified or sensitive information protected by Executive Order, 
statute, or regulation.



Sec. 708.7  Attempt at informal resolution.

    (a) The Head of Field Element or designee shall have 30 days from 
the date of receipt of a complaint in which to attempt an informal 
resolution of the

[[Page 271]]

complaint, prior to the initiation of a formal investigation. To this 
end, the Head of Field Element or designee may attempt to resolve the 
complaint through consultation and negotiation with the parties 
involved. If the Head of Field Element or designee has cause to believe 
the complaint might not meet the requirements of this part, within 5 
days from the date of receipt of the complaint, the Head of Field 
Element or designee shall forward the complaint to the Director, without 
comment and without notice to any party, for a determination of whether 
attempts at informal resolution should be continued or the complaint 
should be dismissed summarily under any of the criteria set forth in 
Sec. 708.8. If the Director determines to dismiss the complaint 
summarily, the complaint shall be dismissed and the parties notified 
pursuant to the procedures set forth in Sec. 708.8. If the Director 
determines not to dismiss the complaint summarily, he shall, within 15 
days from the date he received it, so advise the Head of Field Element 
or designee and return the complaint to the Head of Field Element or 
designee, who shall thereupon have 30 days to attempt informal 
resolution of the complaint.
    (b) If informal resolution is reached, the Head of Field Element or 
designee shall enter into a settlement agreement which terminates the 
complaint. The terms of such agreement shall be reduced to writing and 
made part of the complaint file, with a copy provided to all parties. 
Any such agreement shall be binding on the parties.
    (c) If informal resolution cannot be reached, the Head of Field 
Element or designee shall immediately notify the Director and provide 
the file to the Director with a brief summary of the attempts at 
resolution.



Sec. 708.8  Acceptance of complaint and investigation.

    (a) Unless the Director determines that:
    (1) The complaint has been settled under Sec. 708.7,
    (2) The complaint is untimely,
    (3) The complaint or disclosure is frivolous or on its face without 
merit,
    (4) The complainant has pursued a remedy available under State or 
other applicable law, or
    (5) The complaint, for other good cause shown, should not be 
processed under this part, the Director, within 5 days of receipt of the 
file from the Head of Field Element or designee, shall notify the 
parties in writing that an investigation will be conducted under 
Sec. 708.8 and of their right to a subsequent hearing under Sec. 708.9.

Within 15 days of receipt of the file from the Head of Field Element or 
designee, the Director shall appoint an investigator and order an 
investigation of the complaint. If the Director declines to process a 
complaint for investigation, the Director shall notify the Secretary or 
designee within 15 days of receipt of the file from the Head of Field 
Element or designee. The notification shall be in writing and shall set 
forth the specific reasons for such refusal. A copy of such notice shall 
be sent to the Head of Field Element and shall be delivered by certified 
mail to the complainant and the contractor.
    (b) If based upon information acquired during investigation of a 
complaint, the Director determines the existence of grounds for 
dismissal of the complaint, as set forth in Sec. 708.8(a), the Director, 
within 15 days of receipt of the file from the investigator, shall 
dismiss the complaint and notify the Secretary or designee. The 
notification shall be in writing and shall set forth the specific 
reasons for such dismissal. A copy of such notice shall be sent to the 
Head of Field Element, and shall be delivered by certified mail to the 
complainant and the contractor.
    (c) If the Director dismisses a complaint pursuant to paragraph (a) 
or (b) of this section, the administrative process is terminated unless 
within 5 calendar days of receipt of the notice required under paragraph 
(a) or (b) of this section, the complainant files a written request with 
the Director for review by the Secretary or designee. Copies of any 
request for review shall be served by the complainant on all parties by 
certified mail, and the Director shall promptly send a copy to the 
Secretary. If the Secretary or designee determines that the complaint

[[Page 272]]

should be considered further, the Secretary or designee shall order the 
Director to reinstate the complaint and resume the administrative 
process. If, pursuant to either paragraph (a) or (b) of this section, a 
complaint has been dismissed because the complainant has pursued a 
remedy available under State or other applicable law, the complaint, 
upon written request by the complainant, will be subject to automatic 
reinstatement if the matter cannot be resolved under State or other 
applicable law due to a lack of jurisdiction.
    (d) In conducting an investigation under this part, the 
investigator, for the purpose of determining whether a violation of 
Sec. 708.5 has occurred, may enter and inspect places and records (and 
make copies thereof), may question persons alleged to have been involved 
in discriminatory acts and other employees of the charged contractor, 
and may require the production of any documentary or other evidence 
deemed necessary. The contractor shall cooperate fully with the 
investigator in making available employees and all pertinent evidence, 
including records.
    (e) To the extent practicable, investigations under this part shall 
be conducted in a manner that protects the confidentiality of any person 
(other than the complainant) who requests leave to provide information 
on a confidential basis. Confidentiality shall not be extended to any 
persons who in the course of their employment, or due to the nature of 
their position, are required to provide such information, and all grants 
of confidentiality shall be subject to waiver by the Hearing Officer if 
the Hearing Officer determines that waiver is necessary to achieve a 
fair adjudication of the case. The investigator shall advise all persons 
to whom confidentiality is granted that such grant of confidentiality is 
conditional, not absolute.
    (f) The investigator, within 60 days of appointment, shall submit a 
Report of Investigation to the Director. The Report of Investigation 
shall become a part of the record and shall state specifically a 
finding, and the factual basis for such finding, with respect to each 
alleged discriminatory act. Within 10 days of receipt of the Report of 
Investigation, the Director shall serve it on the parties involved by 
certified mail.



Sec. 708.9  Hearing.

    (a) Unless a complaint has been dismissed pursuant to Sec. 708.8, 
within 15 days of receipt of the Report of Investigation, a party may, 
in writing, request a hearing on the complaint. Upon the request of one 
of the parties for a hearing, the Director shall transmit the complaint 
file to the Office of Hearings and Appeals.
    (b) Upon receipt of the complaint file from the Director, the 
Director, Office of Hearings and Appeals shall appoint, as soon as 
practicable, a Hearing Officer to conduct a hearing and shall transmit 
to the Hearing Officer a copy of the file, including the Report of 
Investigation. The Hearing Office shall, within seven days following 
receipt of the complaint file, notify the parties of a day, time, and 
place for the hearing. Hearings will normally be held at or near the 
appropriate DOE field organization, within 60 days from the date the 
complaint file is received by the Hearing Officer unless the Hearing 
Officer determines that another location would be more appropriate, or 
unless the complaint is earlier settled by the parties.
    (c) In all proceedings under this part, the parties shall have the 
right to be represented by a person of their own choosing. Formal rules 
of evidence shall not apply, but shall be used as a guide for 
application of procedures and principles designed to assure production 
of the most probative evidence available. The Hearing Officer may 
exclude evidence which is immaterial, irrelevant, or unduly repetitious. 
The Hearing Officer is specifically prohibited from initiating or 
otherwise engaging in ex parte discussions on a complaint matter at any 
time during the pendency of the complaint proceeding under this part.
    (d) The complainant shall have the burden of establishing by a 
preponderance of the evidence that there was a disclosure, 
participation, or refusal described under Sec. 708.5, and that such act 
was a contributing factor in a personnel action taken or intended to be 
taken against the complainant. Once

[[Page 273]]

the complainant has met this burden, the burden shall shift to the 
contractor to prove by clear and convincing evidence that it would have 
taken the same personnel action absent the complainant's disclosure, 
participation, or refusal.
    (e) Testimony of witnesses shall be given under oath or affirmation, 
and the witnesses shall be subject to cross-examination. Witnesses shall 
be advised of the applicability of 18 U.S.C. 1001 and 1621, dealing with 
the criminal penalties associated with false statements and perjury.
    (f) At his or her discretion, the Hearing Officer may arrange for 
the issuance of subpoenas for witnesses to attend the Hearing on behalf 
of either party, or for the production of specific documents or other 
physical evidence, provided a showing of the necessity for such witness 
or evidence has been made to the satisfaction of the Hearing Officer.
    (g) All hearings shall be mechanically or stenographically reported. 
All evidence upon which the Hearing Officer relies for the recommended 
decision under Sec. 708.10(b) shall be contained in the transcript of 
testimony, either directly or by appropriate reference. All exhibits and 
other pertinent documents or records, either in whole or in material 
part, introduced as evidence, shall be marked for identification and 
incorporated into the record.
    (h) Any party, upon request, may be allowed a reasonable time to 
file with the Hearing Officer a brief or statement of fact or law. A 
copy of any such brief or statement shall be filed with the Hearing 
Officer before or during the proceeding and shall be served by the 
submitting party upon each other party by certified mail. The parties 
may make oral closing arguments, but post-hearing briefs will only be 
permitted at the direction of the Hearing Officer. When permitted, any 
such brief shall be limited to the issue or issues specified by the 
Hearing Officer and shall be due within the time prescribed by the 
Hearing Officer.
    (i) At the request of any party, the Hearing Officer may, at his or 
her discretion, extend the time for any hearing held pursuant to this 
Sec. 708.9. Additionally, the Hearing Officer may, at the request of any 
party, or on his or her own motion, dismiss a claim, defense, or party 
and make adverse findings--
    (1) Upon the failure without good cause of any party or his or her 
representative to attend a hearing; or
    (2) Upon the failure of any party to comply with a lawful order of 
the Hearing Officer.
    (j) In any case where a dismissal of a claim, defense, or party is 
sought, the Hearing Officer shall issue an order to show cause why the 
dismissal should not be granted and afford all parties a reasonable time 
to respond to such order. After the time for response has expired, the 
Hearing Officer shall take such action as is appropriate to rule on the 
dismissal, which may include an order dismissing the claim, defense, or 
party. An order dismissing a claim, defense, or party may be appealed to 
the Director for reconsideration.



Sec. 708.10  Initial agency decision.

    (a) If a hearing is not requested, the Director, within 30 days of 
expiration of the time set forth in Sec. 708.9(a) for request of a 
hearing, shall issue an initial agency decision based upon the record, 
which decision shall be served upon the parties by certified mail. The 
initial agency decision shall contain appropriate findings, conclusions, 
and an order, and shall set forth the factual basis for each and every 
finding with respect to each alleged discriminatory act. In making such 
findings, the Director may rely upon, but shall not be bound by, the 
findings contained in the Report of Investigation.
    (b) If a hearing has been held, the Hearing Officer shall issue an 
initial agency decision within 30 days after the receipt of the 
transcript from the proceeding at which evidence was submitted or within 
30 days after receipt of any post-hearing briefs permitted under 
Sec. 708.9(h), whichever is later. The initial agency decision shall 
contain appropriate findings, conclusions, and an order, and shall set 
forth the factual basis for each and every finding with respect to each 
alleged discriminatory act. In making such findings, the Hearing Officer 
may rely upon, but shall not be bound by, the findings contained in the 
Report of Investigation. The

[[Page 274]]

Hearing Officer shall send the initial agency decision, together with 
the entire record, to the Director who shall promptly serve the initial 
agency decision upon all parties to the proceeding by certified mail.
    (c) The initial agency decision may include an award of 
reinstatement, transfer preference, back pay, and reimbursement to the 
complainant up to the aggregate amount of all reasonable costs and 
expenses (including attorney and expert-witness fees) reasonably 
incurred by the complainant in bringing the complaint upon which the 
decision was issued.
    (1) If the initial agency decision contains a determination that the 
complaint is without merit, it shall also include a notice stating that 
the decision shall become the final decision of DOE denying the 
complaint unless, within five calendar days of its receipt, a written 
request is filed with the Director for review by the Secretary or 
designee. Copies of any request for review shall be served by the 
requesting party upon all parties by certified mail.
    (2) If the initial agency decision contains a determination that a 
violation of Sec. 708.5 has occurred, it shall also include an 
appropriate order to the contractor to abate the violation and to 
provide the complainant with relief, as well as notice to the parties 
that the decision shall become the final decision of DOE unless, within 
five calendar days of its receipt, a written request is filed with the 
Director for review by the Secretary or designee. Copies of any request 
for review shall be served by the requesting party upon all parties by 
certified mail.
    (3) Notwithstanding the provisions of paragraph (c)(2) of this 
section, if the agency decision contains a determination that a 
violation of Sec. 708.5 has occurred, it may contain an order requiring 
the contractor to provide the complainant with interim relief, including 
but not limited to reinstatement, pending the outcome of any request for 
review. This paragraph shall not be construed to require the payment of 
any award of back pay or attorney fees before the DOE decision is final.



Sec. 708.11  Final decision and order.

    (a) Upon receipt of a request for review of an initial agency 
decision by the Secretary or designee, the Director shall forward the 
request, along with the entire record, to the Secretary or designee.
    (b) Within 60 days after the Director receives a request for 
Secretarial review of an initial agency decision, the Secretary or 
designee shall either direct further processing of the complaint or 
pursuant to paragraph (c) or (d) of this section, issue a final 
decision, based on the record, including the Report of Investigation. 
The final decision shall be forwarded by the Secretary or designee to 
the Director who shall serve it upon all parties by certified mail.
    (1) If the Secretary or designee determines that further processing 
of the complaint is necessary, the Secretary or designee will return the 
case to the Director, who will forward it with specific instructions to 
the Office of Hearings and Appeals and/or the investigator as 
appropriate.
    (2) Except to the extent prohibited by law, regulation, or Executive 
Order, all parties will be provided copies of any information compiled 
as a result of actions taken under paragraph (b)(1) of this section.
    (c) If the Secretary or designee determines that a violation of 
Sec. 708.5 has occurred, the Secretary or designee shall issue a final 
decision and shall instruct the Director to take appropriate action to 
implement that decision. Relief ordered by the Secretary or designee may 
include reinstatement, transfer preference, back pay, and reimbursement 
to the complainant up to the aggregate amount of all reasonable costs 
and expenses (including attorney and expert-witness fees) reasonably 
incurred by the complainant in bringing the complaint upon which the 
decision was issued or such other relief as is necessary to abate the 
violation and provide the complainant with relief.
    (d) If the Secretary or designee determines that the party charged 
has not committed a discriminatory act in violation of Sec. 708.5, the 
Secretary or designee shall so notify the Director and issue a final 
decision dismissing the complaint. If the Secretary or designee

[[Page 275]]

determines that there has been no discrimination, the complainant shall 
not receive reimbursement for the costs and expenses provided in 
paragraph (c) of this section.



Sec. 708.12  Implementation of decision.

    (a) Upon receipt of the final decision of the Secretary or designee 
under Sec. 708.11, or if the initial agency decision becomes the final 
decision pursuant to Sec. 708.10(c) (1) or (2), the Director shall serve 
the final decision upon all parties by certified mail, and upon the Head 
of Field Element at the affected DOE field organization. The Head of 
Field Element shall take all necessary steps to implement the final 
decision.
    (b) For purposes of sections 6 and 7 of the Contract Disputes Act 
(41 U.S.C. 605 and 606), a decision implemented by the Head of Field 
Element pursuant to this part shall not be considered a ``claim by the 
government against a contractor'' or ``a decision by the contracting 
officer.'' However, a contractor's disagreement, and refusal to comply, 
with a final decision under this part could result in the contracting 
officer's decision to disallow certain costs or terminate the contract 
for default. In such case, the contractor could file a claim under the 
disputes procedures of the contract.



Sec. 708.13  Communication of program to contractor employees.

    (a) All contractors covered by this part shall inform their 
employees of the applicability of the DOE Contractor Employee Protection 
Program, including identification of the DOE offices to which a 
protected disclosure can be made and identification of appropriate 
points of contact for initiating employment-reprisal complaints.
    (b) The information required in paragraph (a) of this section shall 
be prominently posted in conspicuous places at the contractor worksite, 
in all places where notices are customarily posted. Such notices shall 
not be altered, defaced, or covered by other material.



Sec. 708.14  Alternative means of resolution.

    Notwithstanding the provisions of this part, the Secretary retains 
the right to request that complaints filed pursuant to this part be 
accepted by other Federal agencies for investigation and factual 
determinations, when the Secretary deems such referral to be in the 
public interest.



Sec. 708.15  Time frames.

    The time frames set forth in this part may be extended with the 
approval of the Secretary or designee.



PART 710--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR ACCESS TO CLASSIFIED MATTER OR SPECIAL NUCLEAR MATERIAL--Table of Contents




 Subpart A--General Criteria and Procedures for Determining Eligibility 
       for Access to Classified Matter or Special Nuclear Material

                           General Provisions

Sec.
710.1  Purpose.
710.2  Scope.
710.3  Reference.
710.4  Policy.
710.5  Definitions.

   Criteria and Procedures for Determining Eligibility for Access to 
              Classified Matter or Special Nuclear Material

710.6  Cooperation by the individual.
710.7  Application of the criteria.
710.8  Criteria.
710.9  Action on derogatory information.
710.10  Suspension of access authorization.

                          Administrative Review

710.20  Purpose of administrative review.
710.21  Notice to individual.
710.22  Additional information.
710.23  Extensions of time by the Operations Office Manager.
710.24  Appointment of DOE Counsel.
710.25  Appointment of Hearing Officer; prehearing conference; 
          commencement of hearings.
710.26  Conduct of hearings.
710.27  Opinion of the Hearing Officer.
710.28  Action on the Hearing Officer's opinion.
710.29  New evidence.
710.30  Action by the Secretary.
710.31  Reconsideration of access eligibility.

                              Miscellaneous

710.32  Terminations.
710.33  Attorney representation.
710.34  Time frames.

[[Page 276]]


Appendix A to Subpart A of Part 710--Selected Provisions of the Atomic 
          Energy Act of 1954, as amended, Sec. 141 (42 U.S.C. 2161), 
          Sec. 145 (42 U.S.C. 2165), Sec. 161 (42 U.S.C. 2201)

 Subpart B--Criteria and Procedures for Establishment of the Personnel 
    Security Assurance Program and Determinations of an Individual's 
    Eligibility for Access to a Personnel Security Assurance Program 
                                Position

                           General Provisions

710.50  Purpose.
710.51  Scope.
710.52  References.
710.53  Policy.
710.54  Definitions.

                               Procedures

710.55  Designation of PSAP positions.
710.56  Program process.
710.57  Supervisory review.
710.58  Medical assessment.
710.59  Management evaluation.
710.60  DOE security review and clearance determination.

    Authority: Sec. 145, 68 Stat. 942 (42 U.S.C. 2165) and sec. 161, 68 
Stat. 948 (42 U.S.C. 2201); E.O. 10450, 3 CFR 1949-1953 Comp., p. 936, 
as amended; E.O. 10865, 3 CFR 1959-1963 Comp., p. 398, as amended, 3 CFR 
Chap. IV; sec. 104(c), 38 Stat. 1237 (42 U.S.C. 5814); sec. 105(a), 88 
Stat. 1238 (42 U.S.C. 5815); secs. 641, 644, 646, 91 Stat. 598, 599 (42 
U.S.C. 7251, 7254, and 7256).



 Subpart A--General Criteria and Procedures for Determining Eligibility 
       for Access to Classified Matter or Special Nuclear Material

    Source: 59 FR 35185, July 8, 1994, unless otherwise noted.

                           General Provisions



Sec. 710.1  Purpose.

    (a) This subpart establishes the criteria, procedures, and methods 
for resolving questions concerning the eligibility of individuals who 
are employed by, or applicants for employment with, Department of Energy 
(DOE) contractors, agents, and access permittees, individuals who are 
DOE employees or applicants for DOE employment, and other persons 
designated by the Secretary of Energy, for access to Restricted Data or 
special nuclear material, pursuant to the Atomic Energy Act of 1954, as 
amended, or for access to national security information.
    (b) This subpart is published to implement Executive Order 12356, 47 
FR 14874 (April 2, 1982), Executive Order 10865, 25 FR 1583 (February 
24, 1960), and Executive Order 10450, 18 FR 2489 (April 27, 1954), all 
as amended.



Sec. 710.2  Scope.

    The criteria and procedures outlined in this subpart shall be used 
in those cases in which there are questions of eligibility for DOE 
access authorization involving:
    (a) Employees (including consultants) of, and applicants for 
employment with, contractors and agents of the DOE;
    (b) Access permittees of the DOE and their employees (including 
consultants) and applicants for employment;
    (c) Employees (including consultants) of, and applicants for 
employment with, the DOE; and
    (d) Other persons designated by the Secretary of Energy.



Sec. 710.3  Reference.

    The pertinent sections of the Atomic Energy Act of 1954, as amended, 
relative to this regulation are set forth in Appendix A to this subpart.



Sec. 710.4  Policy.

    (a) It is the policy of DOE to provide for the security of its 
programs in a manner consistent with traditional American concepts of 
justice and fairness. To this end, the Secretary has established 
criteria for determining eligibility for access authorization and 
procedures that will afford those individuals described in Sec. 710.2 
the opportunity for administrative review of questions concerning their 
eligibility for access authorization.
    (b) It is also the policy of DOE that none of the procedures 
established by DOE for determining eligibility for access authorization 
shall be used for an improper purpose, including any attempt to coerce, 
restrain, threaten, intimidate, or retaliate against individuals for 
exercising their rights under

[[Page 277]]

any statute, regulation or DOE directive. Any DOE officer or employee 
violating, or causing the violation of this policy, shall be subject to 
appropriate disciplinary action.
    (c) In instances where the individual has been convicted of a crime 
punishable by imprisonment of six (6) months or longer, or the 
individual is currently awaiting or serving a form of preprosecution 
probation, or suspended or deferred sentencing, court ordered probation, 
or parole in conjunction with an arrest or criminal charges initiated 
against the individual for a crime that is punishable by imprisonment of 
six (6) months or longer, the DOE may suspend processing an application 
for access authorization until such time as the criminal prosecution, 
suspended sentence, deferred sentencing, probation, or parole has been 
completed.
    (d) DOE may suspend processing an application for access 
authorization if sufficient information about the individual's 
background cannot be obtained to meet the investigative scope and extent 
requirements for the access authorization requested.
    (e) DOE may suspend processing an application for access 
authorization until such time as a question regarding an individual's 
national allegiance is resolved. For example, if an individual is 
exercising rights of citizenship conferred by a country other than the 
United States, DOE will be concerned with whether granting access 
authorization to that individual constitutes an unacceptable national 
security risk.
    (f) DOE may suspend processing an application for access 
authorization whenever an individual fails to fulfill the 
responsibilities described in Sec. 710.6.



Sec. 710.5  Definitions.

    (a) As used in this subpart:
    Access authorization means an administrative determination that an 
individual is eligible for access to classified matter or is eligible 
for access to, or control over, special nuclear material.
    DOE Counsel means a DOE attorney assigned to represent DOE in 
proceedings under this subpart. DOE Counsel shall be a U.S. citizen and 
shall have been subject to a favorably adjudicated background 
investigation.
    Hearing Officer means a DOE attorney or senior management official 
appointed by the Director, Office of Hearings and Appeals, pursuant to 
Sec. 710.25. A Hearing Officer shall be a U.S. citizen and shall have 
been subject to a favorably adjudicated background investigation.
    Local Director of Security means the Operations Office or Naval 
Reactors Office Division Director of Security, or other similar title; 
for Washington, DC area cases, the Director, Headquarters Operations 
Division; for the Oak Ridge Operations Office, the Director of 
Personnel; for the Albuquerque Operations Office, the Director of the 
Personnel Security Division; for the Savannah River Operations Office, 
the Director of Internal Security Division; and any person designated in 
writing to serve in one of the aforementioned positions in an ``acting'' 
capacity.
    National Security Information means any information that has been 
determined, pursuant to Executive Order No. 12356 or any predecessor 
Order, to require protection against unauthorized disclosure and that is 
so designated.
    Operations Office Manager or Manager means the Manager of a DOE 
Operations Office, the Manager of the Rocky Flats Office, the Manager of 
the Pittsburgh Naval Reactors Office, the Manager of the Schenectady 
Naval Reactors Office, and, for Washington, DC area cases, the Director, 
Office of Safeguards and Security.
    Secretary means the Secretary of Energy, as provided by section 201 
of the Department of Energy Organization Act.
    Special nuclear material means plutonium, uranium enriched in the 
isotope 233, or in the isotope 235, and any other material which, 
pursuant to the provisions of Section 51 of the Atomic Energy Act of 
1954, as amended, has been determined to be special nuclear material, 
but does not include source material; or any material artificially 
enriched by any of the foregoing, not including source material.
    (b) Throughout this subpart the use of the male gender shall include 
the female gender and vice versa.

[[Page 278]]

   Criteria and Procedures for Determining Eligibility for Access to 
              Classified Matter or Special Nuclear Material



Sec. 710.6  Cooperation by the individual.

    (a) It is the responsibility of the individual to cooperate by 
providing full, frank, and truthful answers to DOE's relevant and 
material questions, and when requested, to furnish or authorize others 
to furnish information that the DOE deems pertinent to the individual's 
eligibility for DOE access authorization. This obligation to cooperate 
applies when completing security forms, during the course of a personnel 
security background investigation or reinvestigation, and at any stage 
of DOE's processing of the individual's access authorization, including 
but not limited to, personnel security interviews, DOE-sponsored mental 
evaluations, and other authorized DOE investigative activities under 
this subpart. The individual may elect not to cooperate; however, such 
refusal may prevent DOE from reaching an affirmative finding required 
for granting or continuing access authorization. In this event, any 
access authorization then in effect may be terminated, or, for 
applicants, further processing may be suspended.
    (b) If the individual believes that the provisions of paragraph (a) 
of this section have been inappropriately applied in his case, he may 
file a written appeal of the action with the Director, Office of 
Safeguards and Security, DOE Headquarters, within 30 calendar days of 
the date he was notified of the action.
    (c) Upon receipt of the written appeal, the Director, Office of 
Safeguards and Security, shall conduct an inquiry as to the 
circumstances involved in the action and shall, within 30 calendar days 
of receipt of the written appeal, notify the individual, in writing, as 
to whether the action to terminate or suspend processing of access 
authorization was appropriate. If the Director, Office of Safeguards and 
Security, determines that the action was inappropriate, he shall direct 
that the individual continue to be processed for access authorization, 
or that access authorization for the individual be reinstated.



Sec. 710.7  Application of the criteria.

    (a) The decision as to access authorization is a comprehensive, 
common-sense judgment, made after consideration of all the relevant 
information, favorable or unfavorable, as to whether the granting of 
access authorization would not endanger the common defense and security 
and would be clearly consistent with the national interest.
    (b) To assist in making these determinations, on the basis of all 
the information in a particular case, there are set forth in this 
subpart criteria consisting of a number of specific types of derogatory 
information. These criteria are not exhaustive but contain the principal 
types of derogatory information which create a question as to the 
individual's eligibility for access authorization. DOE is not limited to 
these criteria or precluded from exercising its judgment that 
information or facts in a case under its cognizance are derogatory 
although at variance with, or outside the scope of, the stated 
categories. These criteria are subject to continuing review and may be 
revised from time to time as experience and circumstances may make 
desirable.
    (c) In resolving a question concerning an individual's eligibility 
for access authorization, all DOE officials involved in the decision-
making process shall consider: the nature, extent, and seriousness of 
the conduct; the circumstances surrounding the conduct, to include 
knowledgeable participation; the frequency and recency of the conduct; 
the age and maturity of the individual at the time of the conduct; the 
voluntariness of participation; the absence or presence of 
rehabilitation or reformation and other pertinent behavioral changes; 
the motivation for the conduct; the potential for pressure, coercion, 
exploitation, or duress; the likelihood of continuation or recurrence; 
and other relevant and material factors.



Sec. 710.8  Criteria.

    Derogatory information shall include, but is not limited to, 
information that the individual has:
    (a) Committed, prepared or attempted to commit, or aided, abetted or 
conspired with another to commit or

[[Page 279]]

attempt to commit any act of sabotage, espionage, treason, terrorism, or 
sedition.
    (b) Knowingly established or continued a sympathetic association 
with a saboteur, spy, terrorist, traitor, seditionist, anarchist, or 
revolutionist, espionage agent, or representative of a foreign nation 
whose interests are inimical to the interests of the United States, its 
territories or possessions, or with any person advocating the use of 
force or violence to overthrow the Government of the United States or 
any state or subdivision thereof by unconstitutional means.
    (c) Knowingly held membership in or had a knowing affiliation with, 
or has knowingly taken action which evidences a sympathetic association 
with the intent of furthering the aims of, or adhering to, and actively 
participating in, any foreign or domestic organization, association, 
movement, group, or combination of persons which advocates or practices 
the commission of acts of force or violence to prevent others from 
exercising their rights under the Constitution or Laws of the United 
States or any state or subdivision thereof by unlawful means.
    (d) Publicly or privately advocated, or participated in the 
activities of a group or organization, which has as its goal, revolution 
by force or violence to overthrow the Government of the United States or 
the alteration of the form of Government of the United States by 
unconstitutional means with the knowledge that it will further those 
goals.
    (e) Parent(s), brother(s), sister(s), spouse, or offspring residing 
in a nation whose interests may be inimical to the interests of the 
United States.
    (f) Deliberately misrepresented, falsified, or omitted significant 
information from a Personnel Security Questionnaire, a Questionnaire for 
Sensitive Positions, a personnel qualifications statement, a personnel 
security interview, written or oral statements made in response to 
official inquiry on a matter that is relevant to a determination 
regarding eligibility for DOE access authorization, or proceedings 
conducted pursuant to Sec. 710.20 through Sec. 710.31.
    (g) Failed to protect classified matter, or safeguard special 
nuclear material; or violated or disregarded security or safeguards 
regulations to a degree which would be inconsistent with the national 
security; or disclosed classified information to a person unauthorized 
to receive such information.
    (h) An illness or mental condition of a nature which, in the opinion 
of a board-certified psychiatrist, other licensed physician or a 
licensed clinical psychologist, causes, or may cause, a significant 
defect in judgment or reliability.
    (i) Refused to testify before a Congressional Committee, Federal or 
state court, or Federal administrative body, regarding charges relevant 
to eligibility for DOE, or another Federal agency's access 
authorization.
    (j) Been, or is, a user of alcohol habitually to excess, or has been 
diagnosed by a board-certified psychiatrist, other licensed physician or 
a licensed clinical psychologist as alcohol dependent or as suffering 
from alcohol abuse.
    (k) Trafficked in, sold, transferred, possessed, used, or 
experimented with a drug or other substance listed in the Schedule of 
Controlled Substances established pursuant to section 202 of the 
Controlled Substances Act of 1970 (such as marijuana, cocaine, 
amphetamines, barbiturates, narcotics, etc.) except as prescribed or 
administered by a physician licensed to dispense drugs in the practice 
of medicine, or as otherwise authorized by law.
    (l) Engaged in any unusual conduct or is subject to any 
circumstances which tend to show that the individual is not honest, 
reliable, or trustworthy; or which furnishes reason to believe that the 
individual may be subject to pressure, coercion, exploitation, or duress 
which may cause the individual to act contrary to the best interests of 
the national security. Such conduct or circumstances include, but are 
not limited to, criminal behavior, a pattern of financial 
irresponsibility, or violation of any commitment or promise upon which 
DOE previously relied to favorably resolve an issue of access 
authorization eligibility.

[[Page 280]]



Sec. 710.9  Action on derogatory information.

    (a) When the reports of investigation of an individual or other 
reliable information reasonably tend to establish the validity and 
significance of one or more of the items in the criteria, or of other 
reliable information or facts which are derogatory, although outside the 
scope of the stated categories, such information shall be regarded as 
substantially derogatory and create a question as to the individual's 
eligibility for access authorization. The Local Director of Security 
will authorize the conduct of an interview with the individual, or 
request other appropriate actions, and, on the basis of such interview 
and/or actions, may authorize the granting or continuation of access 
authorization. If the question as to the individual's eligibility is not 
resolved through interview, and/or other actions, which may include a 
DOE-sponsored mental evaluation, the Local Director of Security will 
submit the matter to the Manager. If the Manager agrees that unresolved 
derogatory information is present, and that appropriate attempts to 
resolve such derogatory information have failed, the Manager shall 
forward the individual's case to the Director, Office of Safeguards and 
Security, with a request for authority to conduct an administrative 
review proceeding. If the Manager believes that the derogatory 
information has been favorably resolved, the Manager shall direct that 
the individual be granted access authorization. A decision in the matter 
shall be rendered by the Manager within 10 calendar days after receipt. 
Following the decision of the Manager, the Director, Office of 
Safeguards and Security, may authorize:
    (1) The granting of access authorization,
    (2) The institution of administrative review procedures set forth in 
Secs. 710.20 through 710.31, or
    (3) Such other action as the Director deems appropriate.
    (b) The Director, Office of Safeguards and Security, must authorize 
one of these options within 30 calendar days of the receipt of the case 
from the Manager, unless an extension is granted by the Director, Office 
of Security Affairs.



Sec. 710.10  Suspension of access authorization.

    (a) In those cases where information is received which raises a 
question concerning the continued eligibility of an individual for DOE 
access authorization, the Local Director of Security may authorize 
action(s) to resolve the question pursuant to Sec. 710.9. Such action(s) 
shall be taken on an expedited basis. If the question as to the 
individual's continued eligibility for access authorization is not 
resolved in favor of the individual, the Local Director of Security will 
submit the matter to the Manager with a recommendation that the 
individual's DOE access authorization be suspended pending the final 
determination resulting from the operation of the procedures provided in 
this subpart.
    (b) Within two working days of receipt of the recommendation from 
the Local Director of Security to suspend the individual's DOE access 
authorization, the Manager shall review the matter and authorize 
continuation or suspension of access authorization. The access 
authorization of an individual shall not be suspended except by the 
direction of the Manager. This authority to suspend access authorization 
may not be delegated but may be exercised by a person who has been 
designated in writing as Acting Manager.
    (c) Upon suspension of an individual's access authorization pursuant 
to paragraph (b) of this section, the individual, the individual's 
employer, any other DOE Operations Office having an access authorization 
interest in the individual, and, if known, any other government agency 
where the individual holds an access authorization, security clearance, 
or access approval, or to which the DOE has certified the individual's 
DOE access authorization, shall be notified immediately. The Central 
Personnel Clearance Index shall also be updated. Notification to the 
individual shall be made in writing and shall reflect, in general terms, 
the reason(s) why the suspension has been effected. Pending final 
determination of the individual's eligibility for access authorization 
from the operation of the procedures provided in this subpart,

[[Page 281]]

the individual shall not be afforded access to classified matter, 
special nuclear material, or unescorted access to security areas that 
require the individual to possess a DOE access authorization.
    (d) Following the decision to suspend an individual's DOE access 
authorization, the Manager shall immediately notify the Director, Office 
of Safeguards and Security, of the action and the reason(s) therefore. 
In addition, the Manager, within 10 calendar days of the date of 
suspension, shall submit a request for authority to conduct an 
administrative review proceeding, accompanied by an explanation of its 
basis and a duplicate Personnel Security File, to the Director, Office 
of Safeguards and Security.

                          Administrative Review



Sec. 710.20  Purpose of administrative review.

    These procedures establish methods for the conduct of the 
administrative review of questions concerning an individual's 
eligibility for access authorization when it is determined that such 
questions cannot be favorably resolved by interview or other action.



Sec. 710.21  Notice to individual.

    (a) When the Director, Office of Safeguards and Security, has 
authorized the institution of administrative review procedures with 
respect to an individual's questioned eligibility for access 
authorization, in accordance with Sec. 710.9, the Manager shall direct 
the preparation of a notification letter, approved by the local Office 
of Chief Counsel, or the Office of General Counsel for Headquarters 
cases, for delivery to the individual within 30 calendar days of the 
receipt of such directive from the Office of Safeguards and Security, 
unless an extension has been authorized by the Director, Office of 
Safeguards and Security. Where practicable, such letter shall be 
presented to the individual in person.
    (b) The letter shall state:
    (1) That reliable information in the possession of DOE has created a 
substantial doubt concerning the individual's eligibility for access 
authorization.
    (2) The information which creates a substantial doubt regarding the 
individual's eligibility for access authorization (which shall be as 
comprehensive and detailed as the national interest permits).
    (3) That the individual has the option to have the substantial doubt 
regarding eligibility for access authorization resolved in one of two 
ways:
    (i) By the Manager, without a hearing, on the basis of the existing 
information in the case;
    (ii) By personal appearance before a Hearing Officer (a 
``hearing'').
    (4) That, if the individual desires a hearing, the individual must, 
within 20 calendar days of the date of receipt of the notification 
letter, indicate this in writing to the Manager from whom the letter was 
received.
    (5) That the individual may also file with the Manager the 
individual's written answer to the reported information which raises the 
question of the individual's eligibility for access authorization, and 
that, if the individual requests a hearing without filing a written 
answer, the request shall be deemed a general denial of all of the 
reported information.
    (6) That, if the individual so requests, a hearing will be scheduled 
before a Hearing Officer, with due regard for the convenience and 
necessity of the parties or their representatives, for the purpose of 
affording the individual an opportunity of supporting his eligibility 
for access authorization;
    (7) That, if a hearing is requested, the individual will have the 
right to appear personally before a Hearing Officer; to present evidence 
in his own behalf, through witnesses, or by documents, or both; and, 
subject to the limitations set forth in Sec. 710.26(g), to be present 
during the entire hearing and be accompanied, represented, and advised 
by counsel or representative of the individual's choosing and at the 
individual's own expense;

[[Page 282]]

    (8) That the individual's failure to file a timely written request 
for a hearing before a Hearing Officer in accordance with paragraph 
(b)(4) of this section, unless time deadlines are extended for good 
cause, will be considered as a relinquishment by the individual of the 
right to a hearing provided in this subpart, and that in such event a 
final decision will be made by the Manager; and
    (9) That in any proceedings under this subpart DOE Counsel will be 
participating on behalf of and representing the Department of Energy, 
and that any statements made by the individual to DOE Counsel may be 
used in subsequent proceedings.



Sec. 710.22  Additional information.

    The notification letter referenced in Sec. 710.21 shall also:
    (a) Describe the individual's access authorization status until 
further notice;
    (b) Advise the individual of the right to counsel at the 
individual's own expense at each and every stage of the proceeding;
    (c) Provide the name and telephone number of the designated DOE 
official to contact for any further information desired, including an 
explanation of the individual's rights under the Privacy Act of 1974; 
and
    (d) Include a copy of 10 CFR Part 710, Subpart A.



Sec. 710.23  Extensions of time by the Operations Office Manager.

    The Manager may, for good cause shown, at the written request of the 
individual, extend the time for filing a written request for a hearing, 
and/or the time for filing a written answer to the matters contained in 
the notification letter. The Manager shall notify the Director, Office 
of Safeguards and Security, when such extensions have been approved.



Sec. 710.24  Appointment of DOE Counsel.

    (a) Upon receipt from the individual of a written request for a 
hearing, an attorney shall forthwith be assigned by the Manager to act 
as DOE Counsel.
    (b) DOE Counsel is authorized to consult directly with the 
individual if he is not represented by counsel, or with the individual's 
counsel or representative if so represented, to clarify issues and reach 
stipulations with respect to testimony and contents of documents and 
other physical evidence. Such stipulations shall be binding upon the 
individual and the DOE Counsel for the purposes of this subpart.



Sec. 710.25  Appointment of Hearing Officer; prehearing conference; commencement of hearings.

    (a) Upon receipt of a request for a hearing, the Manager shall in a 
timely manner transmit that request to the Office of Hearings and 
Appeals, and identify the DOE Counsel. The Manager shall at the same 
time transmit a copy of the notification letter and the individual's 
response to the Office of Hearings and Appeals.
    (b) Upon receipt of the hearing request from the Manager, the 
Director, Office of Hearings and Appeals, shall appoint, as soon as 
practicable, a Hearing Officer.
    (c) Immediately upon appointment of the Hearing Officer, the Office 
of Hearings and Appeals shall notify the individual and DOE Counsel of 
the Hearing Officer's identity and the address to which all further 
correspondence should be sent.
    (d) The Hearing Officer shall have all powers necessary to regulate 
the conduct of proceedings under this subpart, including, but not 
limited to, establishing a list of persons to receive service of papers, 
issuing subpoenas for witnesses to attend the hearing or for the 
production of specific documents or other physical evidence, 
administering oaths and affirmations, ruling upon motions, receiving 
evidence, regulating the course of the hearing, disposing of procedural 
requests or similar matters, and taking other actions consistent with 
the regulations in this subpart. Requests for subpoenas shall be 
liberally granted except where the Hearing Officer finds that the grant 
of subpoenas would clearly result in evidence or testimony that is 
repetitious, incompetent, irrelevant, or immaterial to the issues in the 
case. The Hearing Officer may take sworn testimony, sequester witnesses, 
and control the dissemination or reproduction of any record or testimony 
taken pursuant to

[[Page 283]]

this part, including correspondence, or other relevant records or 
tangible evidence including, but not limited to, information retained in 
computerized or other automated systems in possession of the subpoenaed 
person.
    (e) The Hearing Officer will determine the day, time, and place for 
the hearing. Hearings will normally be held at or near the appropriate 
DOE facility, unless the Hearing Officer determines that another 
location would be more appropriate. Normally the location for the 
hearing will be selected for the convenience of all participants. In the 
event the individual fails to appear at the time and place specified, 
the record in the case shall be closed and returned to the Manager, who 
will then make a final determination regarding the eligibility of the 
individual for DOE access authorization.
    (f) At least 7 calendar days prior to the date scheduled for the 
hearing, the Hearing Officer will convene a prehearing conference for 
the purpose of discussing stipulations and exhibits, identifying 
witnesses, and disposing of other appropriate matters. The conference 
will usually be conducted by telephone.
    (g) Hearings shall commence within 90 calendar days from the date 
the individual's request for hearing is received by the Office of 
Hearings and Appeals. Any extension of the hearing date past 90 calendar 
days from the date the request for hearing is received by the Office of 
Hearings and Appeals shall be approved by the Director, Office of 
Hearings and Appeals.



Sec. 710.26  Conduct of hearings.

    (a) In all hearings conducted under this subpart, the individual 
shall have the right to be represented by a person of his own choosing. 
The individual is responsible for producing witnesses in his own behalf, 
including requesting the issuance of subpoenas, if necessary, or 
presenting other proof before the Hearing Officer to support his defense 
to the allegations contained in the notification letter. With the 
exception of procedural or scheduling matters, the Hearing Officer is 
prohibited from initiating or otherwise engaging in ex parte discussions 
about the case during the pendency of proceedings under this part.
    (b) Unless the Hearing Officer finds good cause for granting a 
waiver of this paragraph or granting an extension of time, in the event 
that the individual unduly delays the hearing, such as by failure to 
meet deadlines set by the Hearing Officer, the record shall be closed, 
and a final decision shall be made by the Manager on the basis of the 
record in the case.
    (c) Hearings shall be open only to DOE Counsel, duly authorized 
representatives of the staff of DOE, the individual and his counsel or 
other representatives, and such other persons as may be authorized by 
the Hearing Officer. Unless otherwise ordered by the Hearing Officer, 
witnesses shall testify in the presence of the individual but not in the 
presence of other witnesses.
    (d) DOE Counsel shall assist the Hearing Officer in establishing a 
complete administrative hearing record in the proceeding and bringing 
out a full and true disclosure of all facts, both favorable and 
unfavorable, having a bearing on the issues before the Hearing Officer. 
The individual shall be afforded the opportunity of presenting evidence, 
including testimony by the individual in the individual's own behalf. 
The proponent of a witness shall conduct the direct examination of that 
witness. All witnesses shall be subject to cross- examination, if 
possible. Whenever reasonably possible, testimony shall be given in 
person.
    (e) The Hearing Officer may ask the witnesses any questions which 
the Hearing Officer deems appropriate to assure the fullest possible 
disclosure of relevant and material facts.
    (f) During the course of the hearing, the Hearing Officer shall rule 
on all questions presented to the Hearing Officer for the Hearing 
Officer's determination.
    (g) In the event it appears during the course of the hearing that 
Restricted Data or national security information may be disclosed, it 
shall be the duty of the Hearing Officer to assure that disclosure is 
not made to persons who are not authorized to receive it.

[[Page 284]]

    (h) Formal rules of evidence shall not apply, but the Federal Rules 
of Evidence may be used as a guide for procedures and principles 
designed to assure production of the most probative evidence available. 
The Hearing Officer shall admit into evidence any matters, either oral 
or written, which are material, relevant, and competent in determining 
issues involved, including the testimony of responsible persons 
concerning the integrity of the individual. In making such 
determinations, the utmost latitude shall be permitted with respect to 
relevancy, materiality, and competency. The Hearing Officer may also 
exclude evidence which is incompetent, immaterial, irrelevant, or unduly 
repetitious. Every reasonable effort shall be made to obtain the best 
evidence available. Subject to Secs. 710.26(1), 710.26(m), 710.(n), 
710.26(o), hearsay evidence may in the discretion of the Hearing Officer 
and for good cause shown be admitted without strict adherence to 
technical rules of admissibility and shall be accorded such weight as 
the circumstances warrant.
    (i) Testimony of the individual and witnesses shall be given under 
oath or affirmation. Attention of the individual and each witness shall 
be directed to 18 U.S.C. 1001 and 18 U.S.C. 1621.
    (j) The Hearing Officer shall endeavor to obtain all the facts that 
are reasonably available in order to arrive at findings. If, prior to or 
during the proceedings, in the opinion of the Hearing Officer, the 
allegations in the notification letter are not sufficient to cover all 
matters into which inquiry should be directed, the Hearing Officer shall 
recommend to the Operations Office Manager concerned that, in order to 
give more adequate notice to the individual, the notification letter 
should be amended. Any amendment shall be made with the concurrence of 
the local Office of Chief Counsel or the Office of General Counsel in 
Headquarters cases. If, in the opinion of the Hearing Officer, the 
circumstances of such amendment may involve undue hardships to the 
individual because of limited time to answer the new allegations in the 
notification letter, an appropriate adjournment shall be granted upon 
the request of the individual.
    (k) A written or oral statement of a person relating to the 
characterization in the notification letter of any organization or 
person other than the individual may be received and considered by the 
Hearing Officer without affording the individual an opportunity to 
cross-examine the person making the statement on matters relating to the 
characterization of such organization or person, provided the individual 
is given notice that it has been received and may be considered by the 
Hearing Officer, and is informed of its contents provided such is not 
prohibited by paragraph (g) of this section.
    (l) Any oral or written statement adverse to the individual relating 
to a controverted issue may be received and considered by the Hearing 
Officer without affording an opportunity for cross-examination in either 
of the following circumstances:
    (1) The head of the agency supplying the statement certifies that 
the person who furnished the information is a confidential informant who 
has been engaged in obtaining intelligence information for the 
Government and that disclosure of the informant's identity would be 
substantially harmful to the national interest;
    (2) The Secretary or his special designee for that particular 
purpose has preliminarily determined, after considering information 
furnished by the investigative agency as to the reliability of the 
person and the accuracy of the statement concerned, that:
    (i) The statement concerned appears to be reliable and material; and
    (ii) Failure of the Hearing Officer to receive and consider such 
statement would, in view of the access sought to Restricted Data, 
national security information, or special nuclear material, be 
substantially harmful to the national security and that the person who 
furnished the information cannot appear to testify
    (A) Due to death, severe illness, or similar cause, in which case 
the identity of the person and the information to be considered shall be 
made available to the individual, or
    (B) Due to some other specified cause determined by the head of the 
agency to be good and sufficient.

[[Page 285]]

    (m) Whenever procedures under paragraph (l) of this section are 
used:
    (1) The individual shall be given a summary or description of the 
information which shall be as comprehensive and detailed as the national 
interest permits, and
    (2) Appropriate consideration shall be accorded to the fact that the 
individual did not have an opportunity to cross-examine such person(s).
    (n) Records compiled in the regular course of business, or other 
physical evidence other than investigative reports obtained by DOE, may 
be received and considered subject to rebuttal without authenticating 
witnesses provided that such information has been furnished to DOE by an 
investigative agency pursuant to its responsibilities in connection with 
assisting the Secretary to safeguard Restricted Data, national security 
information, or special nuclear material.
    (o) Records compiled in the regular course of business, or other 
physical evidence other than investigative reports, relating to a 
controverted issue which, because they are classified, may not be 
inspected by the individual, may be received and considered provided 
that:
    (1) The Secretary or his special designee for that particular 
purpose has made a preliminary determination that such physical evidence 
appears to be material;
    (2) The Secretary or his special designee for that particular 
purpose has made a determination that failure to receive and consider 
such physical evidence would, in view of the access sought to Restricted 
Data, national security information, or special nuclear material sought, 
be substantially harmful to the national security; and
    (3) To the extent that national security permits, a summary or 
description of such physical evidence is made available to the 
individual. In every such case, information as to the authenticity and 
accuracy of such physical evidence furnished by the investigative agency 
shall be considered.
    (p) The Hearing Officer may request the Local Director of Security 
to arrange for additional investigation on any points which are material 
to the deliberations of the Hearing Officer and which the Hearing 
Officer believes need further investigation or clarification. In this 
event, the Hearing Officer shall set forth in writing those issues upon 
which more evidence is requested, identifying where possible persons or 
sources from which the evidence should be sought. The Local Director of 
Security shall make every effort through appropriate sources to obtain 
additional information upon the matters indicated by the Hearing 
Officer.
    (q) A written transcript of the entire proceedings shall be made 
and, except for portions containing Restricted Data or national security 
information, a copy of such transcript shall be furnished the individual 
without cost.
    (r) Whenever information is made a part of the record under the 
exceptions authorized by paragraphs (l) or (o) of this section, the 
record shall contain certificates evidencing that the determinations 
required therein have been made.



Sec. 710.27  Opinion of the Hearing Officer.

    (a) The Hearing Officer shall carefully consider the record in view 
of the standards set forth herein and shall render an initial opinion as 
to whether the grant or restoration of access authorization to the 
individual would not endanger the common defense and security and would 
be clearly consistent with the national interest. In resolving a 
question concerning the eligibility of an individual for access 
authorization under these procedures, the Hearing Officer shall consider 
the factors stated in paragraph 710.7(c) to determine whether the 
findings will be adverse or favorable.
    (b) In reaching the findings, the Hearing Officer shall consider the 
demeanor of the witnesses who have testified at the hearing, the 
probability or likelihood of the truth of their testimony, their 
credibility, and the authenticity and accuracy of documentary evidence, 
or lack of evidence on any material points in issue. If the individual 
is, or may be, handicapped by the non-disclosure to the individual of 
confidential information or by lack of opportunity to cross-examine 
confidential informants, the Hearing Officer shall take that fact into 
consideration.

[[Page 286]]

Possible impact of the loss of the individual's access authorization 
upon the DOE program shall not be considered by the Hearing Officer.
    (c) The Hearing Officer shall make specific findings based upon the 
record as to the validity of each of the allegations contained in the 
notification letter and the significance which the Hearing Officer 
attaches to such valid allegations. These findings shall be supported 
fully by a statement of reasons which constitute the basis for such 
findings.
    (d) The Hearing Officer's opinion shall be predicated upon the 
Hearing Officer's findings of fact. If, after considering all the 
factors in light of the criteria set forth in this subpart, the Hearing 
Officer is of the opinion that it will not endanger the common defense 
and security and will be clearly consistent with the national interest 
to grant or continue access authorization to the individual, the Hearing 
Officer shall render a favorable opinion; otherwise, the Hearing Officer 
shall render an adverse opinion.
    (e) The Office of Hearings and Appeals shall issue the opinion of 
the Hearing Officer within 30 calendar days of the receipt of the 
hearing transcript by the Hearing Officer, or the closing of the record, 
whichever is later, unless an extension is granted by the Director, 
Office of Hearings and Appeals. Copies of the Hearing Officer's opinion 
will be provided to the Office of Security Affairs, the Manager, the 
individual concerned and his counsel or other representatives, DOE 
Counsel, and any other party identified by the Hearing Officer. At that 
time, the individual shall also be notified of his right to request 
further review of his case pursuant to Sec. 710.28.
    (f) In the event the Hearing Officer's opinion is favorable to the 
individual, a copy of the administrative record in the case shall also 
be provided to the Office of Security Affairs. The Director, Office of 
Security Affairs will determine whether:
    (1) To grant or reinstate the individual's access authorization, or
    (2) To refer the case to the Director, Office of Hearings and 
Appeals, for further review.
    (g) In the event the Hearing Officer's opinion is adverse to the 
individual, and the individual does not file a request for further 
review pursuant to Sec. 710.28, a copy of the administrative record 
shall be provided to the Director, Office of Security Affairs, who shall 
make a final determination on the basis of the material contained in the 
administrative record.



Sec. 710.28  Action on the Hearing Officer's opinion.

    (a) The Office of Security Affairs or the individual involved may 
file a request for review of the Hearing Officer's opinion issued under 
Sec. 710.27 within 30 calendar days of receipt of the opinion. Any such 
request shall be filed with the Director, Office of Hearings and 
Appeals, and served on the other party.
    (b) Within 15 calendar days after filing a request for review under 
this section, the party seeking review shall file a statement 
identifying the issues on which it wishes the Director, Office of 
Hearings and Appeals, to focus. A copy of such statement shall be served 
on the other party, who may file a response within 20 days of receipt of 
the statement.
    (c) The Director, Office of Hearings and Appeals, may initiate an 
investigation of any statement contained in the request for review and 
utilize any relevant facts obtained by such investigation in conducting 
the review of the Hearing Officer's opinion. The Director, Office of 
Hearings and Appeals, may solicit and accept submissions from either the 
individual or the Office of Security Affairs, that are relevant to the 
review. The Director, Office of Hearings and Appeals, may establish 
appropriate time frames to allow for such responses. In reviewing the 
Hearing Officer's opinion, the Director, Office of Hearings and Appeals, 
may consider any other source of information that will advance the 
evaluation, provided that both parties are afforded an opportunity to 
respond to all third person submissions. All information obtained under 
this section shall be made part of the administrative record.
    (d) Within 45 days of the closing of the record, the Director, 
Office of Hearings and Appeals, shall make specific

[[Page 287]]

findings disposing of each substantial issue identified in a written 
statement in support of the request for review and the written response 
submitted by either the individual or the Office of Security Affairs, 
and shall predicate his opinion on the administrative record, including 
any new evidence that may have been submitted pursuant to Sec. 710.29. 
If, after considering all the factors in light of the criteria set forth 
in this subpart, the Director, Office of Hearings and Appeals, is of the 
opinion that it will not endanger the common defense and security and 
will be clearly consistent with the national interest to grant or 
continue access authorization to the individual, the Director, Office of 
Hearings and Appeals, shall render an opinion favorable to the 
individual; otherwise, the Director, Office of Hearings and Appeals, 
shall render an opinion adverse to the individual. The written opinion 
of the Director, Office of Hearings and Appeals, shall be provided to 
the Director, Office of Security Affairs, accompanied by the 
administrative record in the case. The Director, Office of Hearings and 
Appeals, shall notify the individual of the foregoing action.
    (e) Within 30 calendar days of receipt of the opinion of the 
Director, Office of Hearings and Appeals, the Director, Office of 
Security Affairs, will make the final determination, based on a complete 
review of the record, whether access authorization shall be granted or 
denied, or reinstated or revoked. If, after considering all of the 
factors in light of the criteria set forth in this subpart, the 
Director, Office of Security Affairs, determines that it will not 
endanger the common defense and security and will be clearly consistent 
with the national interest, access authorization shall be granted to or 
reinstated for the individual; otherwise, the Director, Office of 
Security Affairs, shall determine that access authorization shall be 
denied to or revoked for the individual.
    (f) The Director, Office of Security Affairs, shall, through the 
Director, Office of Safeguards and Security, inform the individual 
involved and his counsel or representative in writing of the final 
determination and provide a copy of the written opinion rendered by the 
Director, Office of Hearings and Appeals. Copies of the correspondence 
shall also be provided to the Director, Office of Hearings and Appeals, 
the Manager, DOE Counsel, and any other party. In the event of an 
adverse determination, the correspondence shall indicate the findings by 
the Director, Office of Security Affairs, with respect to each 
allegation contained in the notification letter.



Sec. 710.29  New evidence.

    (a) In the event of the discovery of new evidence relevant to the 
allegations contained in the notification letter prior to final 
determination of the individual's eligibility for access authorization, 
such evidence shall be submitted by the offering party to the Director, 
Office of Safeguards and Security. DOE Counsel shall notify the 
individual of any new evidence submitted by DOE.
    (b) The Director, Office of Safeguards and Security, shall:
    (1) Refer the matter to the Hearing Officer appointed in the 
individual's case if the Hearing Officer has not yet issued an opinion. 
The Hearing Officer getting the application for the presentation of new 
evidence shall determine the appropriate form in which any new evidence, 
and the other party's response, shall be received, e.g., by testimony 
before the Hearing Officer, by deposition or by affidavit.
    (2) In those cases where the Hearing Officer's opinion has been 
issued, the application for presentation of new evidence shall be 
referred to the Director, Office of Hearings and Appeals, or the 
Director, Office of Security Affairs, depending upon where the case 
resides. In the event that the Director, Office of Hearings and Appeals, 
or Director, Office of Security Affairs, determines that the new 
evidence should be received, he shall determine the form in which it, 
and the other party's response, shall be received.
    (c) When new evidence submitted by either party is received into the 
record, the opposing party shall be afforded the opportunity to cross-
examine the source of the new information or to submit a written 
response, unless the information is subject to the exceptions in 
Sec. 710.26 (l) or (o).

[[Page 288]]



Sec. 710.30  Action by the Secretary.

    (a) Whenever an individual has not been afforded an opportunity to 
cross-examine witnesses who have furnished information adverse to the 
individual under the provisions of Sec. 710.26 (l) or (o), only the 
Secretary may issue a final determination denying or revoking the access 
authorization after personally reviewing the record.
    (b) When the Secretary makes a final determination regarding the 
individual's eligibility for DOE access authorization, the individual 
will be notified, by the Director, Office of Security Affairs, of that 
decision and of the Secretary's findings with respect to each allegation 
contained in the notification letter and each substantial issue 
identified in the statement in support of the request for review.
    (c) Nothing contained in these procedures shall be deemed to limit 
or affect the responsibility and powers of the Secretary to issue 
subpoenas or to deny or revoke access to Restricted Data, national 
security information, or special nuclear material if the security of the 
nation so requires. The Secretary's authority may not be delegated and 
may be exercised only when the Secretary determines that the procedures 
prescribed in Sec. 710.26 (l) or (o) cannot be invoked consistent with 
the national security, and such determination shall be conclusive.



Sec. 710.31  Reconsideration of access eligibility.

    (a) Where, pursuant to the procedures set forth in Secs. 710.20 
through 710.30, the Director, Office of Security Affairs, or the 
Secretary has made a determination granting or reinstating access 
authorization to an individual, the individual's eligibility for access 
authorization shall be reconsidered as a new administrative review under 
the procedures set forth in this subpart when previously unconsidered 
substantially derogatory information is identified, or the individual 
violates a commitment or promise upon which the DOE previously relied to 
favorably resolve an issue of access eligibility.
    (b) Where, pursuant to those procedures, the Manager, Director, 
Office of Security Affairs, or the Secretary has made a determination 
denying or revoking access authorization to an individual, the 
individual's eligibility for access authorization may be reconsidered 
when there is a bona fide offer of employment requiring access to 
Restricted Data, national security information or special nuclear 
material, and there is either:
    (1) Material and relevant new evidence which the individual and the 
individual's representatives are without fault in failing to present 
earlier, or
    (2) Convincing evidence of reformation or rehabilitation.
    (c) A request for reconsideration shall be submitted in writing to 
the Manager having jurisdiction over the position for which access 
authorization is required. A request for reconsideration shall be 
accompanied by an affidavit setting forth in detail the new evidence or 
evidence of reformation or rehabilitation. The Manager shall notify the 
individual as to whether the individual's eligibility for access 
authorization will be reconsidered and, if so, the method by which such 
reconsideration will be accomplished.
    (d) Final determinations regarding eligibility for DOE access 
authorization in reconsideration cases shall be made by the Director, 
Office of Security Affairs.

                              Miscellaneous



Sec. 710.32  Terminations.

    In the event the individual is no longer an applicant for access 
authorization or no longer requires access authorization, the procedures 
of this subpart shall be terminated without a final determination as to 
the individual's eligibility for access authorization.



Sec. 710.33  Attorney representation.

    In the event the individual is represented by an attorney or other 
representatives, the individual shall file with the Hearing Officer and 
DOE Counsel a document designating such attorney or representatives and 
authorizing one such attorney or representative to receive all 
correspondence, transcripts, and other documents pertaining to the 
proceeding under this subpart.

[[Page 289]]



Sec. 710.34  Time frames.

    Statements of time established for processing aspects of a case 
under this subpart are the agency's desired time frames in implementing 
the procedures set forth in this subpart. They shall have no impact upon 
the final disposition of an access authorization by an Operations Office 
Manager, the Director, Office of Security Affairs, or the Secretary, and 
shall confer no rights upon an individual whose eligibility for access 
authorization is being considered.

 Appendix A to Subpart A of Part 710--Selected Provisions of the Atomic 
Energy Act of 1954, as Amended, Sec. 141 (42 U.S.C. 2161), Sec. 145 (42 
                 U.S.C. 2165), Sec. 161 (42 U.S.C. 2201)

(By authority of the Department of Energy Organization Act, 42 U.S.C. 
7151(a), the Secretary of Energy or her designated representative is to 
be substituted for the ``Commission'' and ``General Manager'' as 
appropriate.)

    Sec. 141. Policy. It shall be the policy of the Commission to 
control the dissemination and declassification of Restricted Data in 
such a manner as to assure the common defense and security. * * *
    Sec. 145. Restriction. (a) No arrangement shall be made under 
section 31, no contract shall be made or continued in effect under 
section 141, and no license shall be issued under section 103 or 104, 
unless the person with whom such arrangement is made, the contractor or 
prospective contractor, or the prospective licensee agrees in writing 
not to permit any individual to have access to Restricted Data until the 
Civil Service Commission shall have made an investigation and report to 
the Commission on the character, associations, and loyalty of such 
individual, and the Commission shall have determined that permitting 
such person to have access to Restricted Data will not endanger the 
common defense and security.
    (b) Except as authorized by the Commission or the General Manager 
upon a determination by the Commission or General Manager that such 
action is clearly consistent with the national interest, no individual 
shall be employed by the Commission nor shall the Commission permit any 
individual to have access to Restricted Data until the Civil Service 
Commission shall have made an investigation and report to the Commission 
on the character, associations, and loyalty of such individual, and the 
Commission shall have determined that permitting such person to have 
access to Restricted Data will not endanger the common defense and 
security.
    (c) In lieu of the investigation and report to be made by the Civil 
Service Commission pursuant to subsection (b) of this appendix, the 
Commission may accept an investigation and report on the character, 
associations, and loyalty of an individual made by another Government 
agency which conducts personnel security investigations, provided that a 
security clearance has been granted to such individual by another 
Government agency based on such investigation and report.
    (d) In the event an investigation made pursuant to subsections (a) 
and (b) of this appendix develops any data reflecting that the 
individual who is the subject of the investigation is of questionable 
loyalty, the Civil Service Commission shall refer the matter to the 
Federal Bureau of Investigation for the conduct of a full field 
investigation, the results of which shall be furnished to the Civil 
Service Commission for its information and appropriate action.
    (e) If the President deems it to be in the national interest he may 
from time to time determine that investigations of any group or class 
which are required by subsections (a), (b), and (c) of this appendix be 
made by the Federal Bureau of Investigation.
    (f) Notwithstanding the provisions of subsections (a), (b), and (c) 
of this appendix, a majority of the members of the Commission shall 
certify those specific positions which are of a high degree of 
importance or sensitivity, and upon such certification, the 
investigation and reports required by such provisions shall be made by 
the Federal Bureau of Investigation.
    (g) The Commission shall establish standards and specifications in 
writing as to the scope and extent of investigations, the reports of 
which will be utilized by the Commission in making the determination, 
pursuant to subsections (a), (b), and (c) of this appendix, that 
permitting a person access to Restricted Data will not endanger the 
common defense and security. Such standards and specifications shall be 
based on the location and class or kind of work to be done, and shall, 
among other considerations, take into account the degree of importance 
to the common defense and security of the Restricted Data to which 
access will be permitted.
    (h) Whenever the Congress declares that a state of war exists, or in 
the event of a national disaster due to enemy attack, the Commission is 
authorized during the state of war or period of national disaster due to 
enemy attack to employ individuals and to permit individuals access to 
Restricted Data pending the investigation report, and determination 
required by section 145b, to the extent that and so long as the 
Commission finds that such action is required to prevent

[[Page 290]]

impairment of its activities in furtherance of the common defense and 
security.
    Sec. 161. General provisions. In the performance of its functions 
the Commission is authorized to:
    (a) Establish advisory boards to advise with and make 
recommendations to the Commission on legislation, policies, 
administration, research, and other matters, provided that the 
Commission issues regulations setting forth the scope, procedure, and 
limitations of the authority of each such board;
    (b) Establish by rule, regulation, or order, such standards and 
instructions to govern the possession and use of special nuclear 
material, source material, and byproduct material as the Commission may 
deem necessary or desirable to promote the common defense and security 
or to protect health or to minimize danger to life or property;
    (c) Make such studies and investigations, obtain such information, 
and hold such meetings or hearings as the Commission may deem necessary 
or proper to assist it in exercising any authority provided in this 
chapter, or in the administration or enforcement of this Act, or any 
regulations or orders issued thereunder. For such purposes the 
Commission is authorized to administer oaths and affirmations, and by 
subpoena to require any person to appear and testify, or to appear and 
produce documents, or both, at any designated place. Witnesses 
subpoenaed under this subsection, shall be paid the same fees and 
mileage as are paid witnesses in the district courts of the United 
States.

                                * * * * *

    (i) Prescribe such regulations or orders as it may deem necessary 
(1) to protect Restricted Data received by any person in connection with 
any activity authorized pursuant to this Act, (2) to guard against the 
loss or diversion of any special nuclear material acquired by any person 
pursuant to section 53 or produced by any person in connection with any 
activity authorized pursuant to the Act, to prevent any use or 
disposition thereof which the Commission may determine to be inimical to 
the common defense and security, including regulations or orders 
designating activities, involving quantities of special nuclear material 
which in the opinion of the Commission are important to the common 
defense and security, that may be conducted only by persons whose 
character, associations, and loyalty shall have been investigated under 
standards and specifications established by the Commission and as to 
whom the Commission shall have determined that permitting each such 
person to conduct the activity will not be inimical to the common 
defense and security, and (3) to govern any activity authorized pursuant 
to this Act, including standards and restrictions governing the design, 
location, and operation of facilities used in the conduct of such 
activity, in order to protect health and to minimize danger to life or 
property;

                                * * * * *

    (n) Delegate to the General Manager or other officers of the 
Commission any of those functions assigned to it under this Act except 
those specified in sections 51, 57b, 61, 108, 123, 145b (with respect to 
the determination of those persons to whom the Commission may reveal 
Restricted Data in the national interest), 145f, and 161a;

                                * * * * *

    (p) Make, promulgate, issue, rescind, and amend such rules and 
regulations as may be necessary to carry out the purposes of this Act.



 Subpart B--Criteria and Procedures for Establishment of the Personnel 
    Security Assurance Program and Determinations of an Individual's 
    Eligibility for Access to a Personnel Security Assurance Program 
                                Position

    Source: 60 FR 20368, Apr. 25, 1995, unless otherwise noted.

                           General Provisions



Sec. 710.50  Purpose.

    (a) This subpart establishes the policies and procedures for 
implementing the Department of Energy (DOE) Personnel Security Assurance 
Program (PSAP) for individuals in positions:
    (1) Which afford direct access to or have direct responsibility for 
transportation or protection of Category I quantities of special nuclear 
materials (SNM);
    (2) Which afford unescorted access to the control areas of a nuclear 
material production reactor; or
    (3) With the potential for causing unacceptable damage to national 
security.
    (b) The DOE Personnel Security Assurance Program is designed to 
establish the procedures for DOE and DOE contractors to utilize in the 
selection and continuing evaluation of individuals for assignment to 
positions described by paragraph (a) of this section.

[[Page 291]]

Individuals selected for assignment to such positions must be granted 
access authorization in accordance with the procedures and requirements 
set forth in subparts A and B of this part.



Sec. 710.51  Scope.

    The criteria and procedures establishing the Personnel Security 
Assurance Program shall apply to:
    (a) Those employees of, and applicants for employment with, DOE who 
either occupy or make application for PSAP positions, as described by 
paragraph (a) of Sec. 710.50.
    (b) Those employees of, and applicants for employment with, 
contractors and agents of the DOE who either occupy or make application 
for PSAP positions, as described by paragraph (a) of Sec. 710.50.



Sec. 710.52  References.

    (a) Atomic Energy Act of 1954, as amended, section 11, 
``Definitions''; section 141, ``Policy''; section 143, ``Department of 
Defense Participation''; section 145, ``Restrictions''; section 161 b., 
``General Provisions''; which provide statutory authority for 
establishing and implementing a DOE security program for controlling 
access to Restricted Data and special nuclear material. Copies of 
selected provisions appear as appendix A to subpart A of this part.
    (b) Executive Orders 10450, April 29, 1953, ``Security Requirements 
for Government Employment,'' 10865, February 20, 1960, ``Safeguarding 
Classified Information Within Industry,'' and 12564, September 15, 1986, 
``Drug-Free Federal Workplace,'' all as amended.
    (c) 10 CFR part 707, ``Workplace Substance Abuse Programs at DOE 
Sites,'' which requires DOE contractors to establish workplace substance 
abuse prevention programs, including urine drug testing for individuals 
who occupy sensitive positions such as those requiring a PSAP access 
authorization.
    (d) Implementing directives (DOE Orders) which provide Departmental 
guidance on the PSAP and related areas are available from the U.S. 
Department of Energy, Washington, DC 20585, Attention: Directives 
Distribution.



Sec. 710.53  Policy.

    The protection of certain of the DOE's security interests, with the 
potential, if compromised, of causing unacceptable damage to the 
national security requires the implementation of a program designed to 
assure that individuals occupying positions affording access to certain 
material, facilities, and programs meet the highest standards of 
reliability. This objective is accomplished under this subpart through a 
system of continuous evaluation which identifies those individuals whose 
judgment may be impaired by physical and/or emotional disorders, 
substance abuse, or the use of alcohol habitually to excess. This 
process will reduce the risk resulting from the potential threat 
represented by such employees to an acceptable level. The determination 
to grant initially and to continue annually the access authorization to 
a PSAP position is based upon a DOE security assessment of any 
information of security concern developed in the course of an initial 
and annual security review process.



Sec. 710.54  Definitions.

    As used in this part:
    Contractor means the contractor and subcontractors at all tiers.
    Direct access means access to Category I quantities of SNM which 
would permit an individual to remove, divert, or misuse that material in 
spite of any controls that have been established to prevent such 
unauthorized actions.
    Illegal drugs means a controlled substance included in Schedules I, 
II, III, IV, or V, as defined by 21 U.S.C. 802(6), the possession of 
which is unlawful under chapter 13 of that title. The term ``illegal 
drugs'' does not apply to the use of a controlled substance in 
accordance with the terms of a valid prescription, or other uses 
authorized by law.
    Management official means an individual designated by the DOE or a 
DOE contractor, as appropriate, who has programmatic responsibility for 
PSAP positions.
    Occurrence means any event or incident that is a deviation from the 
planned or expected behavior or course of events in connection with any 
Department of Energy or Department of

[[Page 292]]

Energy-controlled operation, if the deviation has environmental, public 
health and safety, or national security protection significance. 
Incidents having such significance include the following, or incidents 
of a similar nature:
    (1) Injury or fatality to any person involving actions of a 
Department of Energy contractor employee.
    (2) Involvement of nuclear explosives under Department of Energy 
jurisdiction which results in an explosion, fire, the spread of 
radioactive material, personal injury or death, or significant damage to 
property.
    (3) Accidental release of pollutants which results or could result 
in a significant effect on the public or environment.
    (4) Accidental release of radioactive material above regulatory 
limits.
    PSAP Approving Official means a senior DOE official with direct 
personnel security responsibilities appointed by an operations office 
manager to review all relevant information, including DOE F 5631.35, 
``PSAP Management, Medical, and Security Report'' as part of the DOE 
security review process, and who is responsible for granting or 
continuing the PSAP access authorization, or determining that an 
individual be processed under the provisions of subpart A of this part.
    PSAP position means a position that affords direct access to or has 
direct responsibility for transportation or protection of Category I 
quantities of SNM, affords unescorted access to nuclear material 
production reactor control areas, or with the potential to cause 
unacceptable damage to national security.
    Reasonable suspicion means a suspicion based on an articulable 
belief that an employee uses illegal drugs, drawn from particularized 
facts and reasonable inferences from those facts, as detailed further in 
part 707 of this chapter.
    Security concern means the presence of information, regarding an 
individual applying for or holding a PSAP position, that may be 
considered derogatory under the criteria in subpart A of this part.
    Selecting official means the management official responsible for 
making the final employment decision regarding an individual seeking a 
PSAP position.
    Site occupational Medical Director means a physician responsible for 
the overall direction and operation of the occupational medical program 
at a particular site.
    Supervisor means an individual who has direct oversight and 
responsibility for a person holding a PSAP position.
    Unacceptable damage means an incident that could result in a nuclear 
explosive detonation, a major environmental release from a nuclear 
material production reactor, or an interruption of nuclear weapons 
production with a significant impact on national security.

                               Procedures



Sec. 710.55  Designation of PSAP positions.

    PSAP positions shall be designated by the cognizant Operations 
Office Manager in accordance with the following criteria:
    (a) Positions that afford direct access to Category I quantities of 
SNM or have direct responsibility for transportation or protection of 
Category I quantities of SNM.
    (b) Positions that afford direct access to the control areas of a 
nuclear material production reactor.
    (c) Positions with the potential for causing unacceptable damage to 
national security which are not included in paragraph (a) or (b) of this 
section, and are designated by the Director, Office of Safeguards and 
Security, DOE.



Sec. 710.56  Program process.

    (a) Individuals selected for assignment to PSAP positions must be 
granted a PSAP access authorization in accordance with the procedures 
and requirements set forth in this subpart.
    (b) The PSAP involves four components: Supervisory review: Medical 
assessment; management evaluation; and security determination. A DOE 
determination to grant initially and to continue annually an 
individual's PSAP access authorization is based upon a DOE security 
assessment of any information of security concern developed in the 
course of the supervisory review,

[[Page 293]]

medical assessment, management evaluation, and security review.
    (c) DOE shall make its decision as to a PSAP access authorization in 
accordance with the criteria in subpart A, Sec. 710.8 of this part.



Sec. 710.57  Supervisory review.

    (a) The supervisory review shall be performed on all applicants 
tentatively selected for PSAP positions, transferees to PSAP positions, 
individuals occupying PSAP positions but not yet holding a PSAP access 
authorization, and PSAP-cleared employees.
    (b) The initial SF-86, OMB Control No. 3206.007, ``Questionnaire for 
Sensitive Positions'' of an applicant tentatively selected for a PSAP 
position and an annual update of the ``Questionnaire for Sensitive 
Positions,'' Part II, of each incumbent in a PSAP position shall be 
completed and forwarded to the appropriate PSAP Approving Official.
    (c) Before being selected for a PSAP position, any tentatively 
selected applicant must undergo a pre-employment suitability 
determination as defined by 48 CFR 970.2201. For DOE employees, this 
pre-employment check must comply with the requirements established by 
the Office of Personnel Management in part 731 of title 5, Code of 
Federal Regulations. For contractor employees, this pre-employment check 
must comply with the requirements established by the DOE in section 
970.2201(b)(1)(ii) of title 48.
    (d) Each applicant tentatively selected for a PSAP position and each 
individual occupying a PSAP position but not a yet holding a PSAP access 
authorization shall execute the appropriate PSAP releases, 
acknowledgements, and waivers. The request for a PSAP access 
authorization shall not be further processed until these documents are 
completed. Failure of an individual, occupying a PSAP position but not 
yet holding a PSAP access authorization, to complete these documents may 
prevent DOE from reaching an affirmative finding required for granting 
or continuing PSAP access authorization. An effort shall be made to 
reassign that individual to a position not requiring a PSAP access 
authorization. For purposes of this section and all sections of this 
rule that relate to reassignment from PSAP duties, any Federal employee 
will be immediately removed from PSAP duties. The affected employee's 
supervisor may reassign the employee or realign the employee's current 
duties. If these actions are not feasible, the supervisor must contact 
the appropriate servicing personnel office for guidance.
    (e) Applicants tentatively selected for PSAP positions and each 
individual occupying a PSAP position, but not yet holding a PSAP access 
authorization, shall undergo testing for the use of illegal drugs in 
accordance with the provisions of the DOE policies implementing 
Executive Order 12564, or part 707 of this chapter, which establish 
workplace substance abuse programs for DOE and contractor employees 
respectively. A determination of the use of illegal drugs, based on a 
drug test, shall result in termination of consideration for the PSAP 
access authorization. An employee who has been determined to have used 
illegal drugs, based on a drug test, shall be immediately reassigned 
from the PSAP duties and processed under the provisions of subpart A of 
this part.
    (f) The supervisor (or selecting official) shall report any security 
concerns, resulting from his or her review, to the appropriate 
management official.
    (g) Annual review. Each PSAP-cleared employee shall have an annual 
PSAP review conducted by the supervisor during which the supervisor 
shall evaluate information relevant to security. The supervisor shall 
report any security concerns, resulting from his or her review, to the 
appropriate management official.
    (h) Recognition of security concerns and unusual Conduct. In order 
to facilitate early recognition of an individual who represents a 
possible security concern, individuals who, in the judgment of the 
responsible supervisor, exhibit unusual conduct shall be referred to the 
site Occupational Medical Director, who may arrange for the PSAP-cleared 
employee to be examined by the appropriate medical staff. Information 
indicating a possible security concern shall

[[Page 294]]

be reported immediately to the appropriate management official and PSAP 
Approving Official.
    (i) Temporary reassignment to non-PSAP duties. Where an individual 
has demonstrated a possible security concern or a condition which may 
temporarily affect his or her reliability, the individual, with the 
recommendation of the site Occupational Medical Director or the PSAP 
Approving Official, may be temporarily reassigned to non-PSAP duties. In 
the event that a PSAP-cleared employee is temporarily reassigned to non-
PSAP duties, the supervisor, jointly with the site Occupational Medical 
Director and/or the PSAP Approving Official, as appropriate, may 
determine the temporary restrictions to be placed on the employee. The 
PSAP Approving Official shall be notified immediately upon the decision 
to temporarily reassign the employee to non-PSAP duties and the reason 
for such action, and upon the decision to reinstate such employee. If 
the reason for the temporary reassignment was based upon a security 
concern, the PSAP Approving Official must approve the request for 
reinstatement.



Sec. 710.58  Medical assessment.

    (a) The medical examination. The purpose of the PSAP medical 
examination is to ensure that an applicant tentatively selected for, or 
incumbent in, a PSAP position does not represent a security concern or 
have a condition which may prevent the individual from performing PSAP 
duties in a reliable and safe manner. The examination shall include an 
evaluation to determine the presence of any physical or mental condition 
that causes or may cause a significant defect in the judgment or 
reliability of the individual, including that which may result from the 
use of illegal drugs or the use of alcohol habitually to excess.
    (b) When performed. The medical assessment is performed initially 
upon applicants tentatively selected for PSAP positions and employees 
occupying PSAP positions who have not yet received a PSAP access 
authorization. The medical assessment shall be performed annually, or 
more often as may be required by the site Occupational Medical Director, 
for PSAP-cleared employees.
    (c) Contents of medical assessment. The medical assessment shall 
include: A comprehensive medical examination; an examination for use of 
alcohol habitually to excess; a psychological assessment and/or 
psychiatric evaluation as provided for in any applicable DOE medical 
standards, and as permitted by Federal regulations; and an examination 
for the cause of any reported unusual conduct.
    (d) Examination for use of alcohol habitually to excess. The use of 
alcohol habitually to excess represents a potential threat to national 
security and is inconsistent with access to a PSAP position. 
Accordingly, the medical assessment shall include:
    (1) Diagnosis. Employees in, or applicants tentatively selected for, 
a PSAP position shall be evaluated for the use of alcohol habitually to 
excess. Those employees diagnosed currently to use alcohol habitually to 
excess shall be temporarily reassigned to non-PSAP duties and the PSAP 
Approving Official shall be notified immediately.
    (2) Rehabilitation. Individuals reinstated to PSAP duties following 
treatment leading to rehabilitation from the use of alcohol habitually 
to excess shall be required to undergo evaluation as prescribed by the 
site Occupational Medical Director to ensure continued rehabilitation. 
Such evaluation shall be consistent with appropriate Departmental 
substance abuse programs.
    (e) Examination for the cause of reported unusual conduct. Upon 
referral of a PSAP-cleared employee by a supervisor for observed unusual 
conduct, the site Occupational Medical Director may arrange for the 
employee to be examined by appropriate specialists.
    (f) Report of occupational Medical Director. Upon completion of the 
medical assessment, the site Occupational Medical Director shall report 
any security concerns resulting from the medical assessment to the 
appropriate management official.
    (g) Temporary restrictions on a PSAP position. In the event that a 
condition or circumstance develops that may affect the judgment or 
reliability of a

[[Page 295]]

PSAP-cleared employee, the site Occupational Medical Director may 
recommend restrictions. The site Occupational Medical Director shall 
report these restrictions immediately, in writing, to the appropriate 
management official who shall immediately notify the appropriate PSAP 
Approving Official. Removal of restrictions requires notification in 
writing to both the management official and the PSAP Approving Official 
by the site Occupational Medical Director.
    (h) Sick leave from a PSAP position. PSAP-cleared employees who have 
been on sick leave for five or more consecutive work days are required 
to report in person to the site Occupational Medical Director before 
being allowed to return to normal duties. The site Occupational Medical 
Director shall provide a recommendation to the appropriate management 
official regarding the employee's return to work. A PSAP-cleared 
employee may in certain circumstances also be required to report to the 
site Occupational Medical Director for written recommendation to return 
to normal duties after any period of sick leave.



Sec. 710.59  Management evaluation.

    (a) Evaluation components. A management evaluation based upon a 
careful review of the results of the supervisory review, medical 
assessment, and drug testing of an individual in, or an applicant 
tentatively selected for, a PSAP position is required before that 
individual can be considered for an initial granting or the continuance 
of a PSAP access authorization. The appropriate manager of an 
organization having PSAP positions (management official) shall evaluate 
the information in these reports and forward his or her recommendation, 
including any security concern, to the PSAP Approving Official.
    (b) Drug testing component. Drug testing for the use of illegal 
drugs, as required by the PSAP, shall be established to test all 
individuals in, or applicants tentatively selected for, PSAP positions. 
Testing shall be conducted in accordance with the DOE policies 
implementing Executive Order 12564, or part 707 of this chapter, which 
establish workplace substance abuse programs for DOE and contractor 
employees respectively. The program shall include unannounced annual 
drug testing and testing for occurrence or reasonable suspicion for all 
PSAP-cleared individuals. A PSAP-cleared individual who has been 
determined to have used illegal drugs based on a drug test shall be 
reassigned immediately to non-PSAP duties, and the PSAP Approving 
Official shall be notified immediately.
    (c) Occurrence or reasonable suspicion testing component. When a 
PSAP-cleared employee is involved in or associated with an occurrence 
requiring notification to the DOE or whose behavior creates the basis 
for a reasonable suspicion of substance abuse, the employee shall be 
tested for the use of illegal drugs. Drug testing shall be conducted in 
accordance with the provisions of the DOE policies implementing 
Executive Order 12564, or part 707 of this chapter, which establish 
workplace substance abuse programs for DOE and contractor employees 
respectively.
    (d) Rehabilitation. Individuals reinstated to PSAP duties following 
treatment leading to rehabilitation from the use of illegal drugs shall 
be required to undergo evaluation and testing as prescribed in DOE drug-
free workplace and substance abuse policies and by the site Occupational 
Medical Director or other designated official, as appropriate, in order 
to ensure continued rehabilitation.
    (e) Corporate policy. Nothing in this subpart is intended to 
interfere with or prohibit a contractor of the Department from 
conducting medical and other evaluations, including testing for the use 
of illegal drugs as a matter of corporate policy, so long as such policy 
is at least as effective as the requirements and procedures of this 
subpart.



Sec. 710.60  DOE security review and clearance determination.

    (a) When performed. The final component of the PSAP process is a 
security review and clearance determination performed by the PSAP 
Approving Official upon receipt of the management evaluation and 
recommendation.
    (b) The criteria. The PSAP access authorization and adjudication 
shall be

[[Page 296]]

conducted in accordance with the criteria and procedures contained in 
relevant sections of this part.
    (c) Review for initial PSAP access authorization. An initial PSAP 
access authorization requires the applicant or employee to have a DOE Q 
access authorization, based upon a background investigation. The 
adjudication and determination for a PSAP access authorization shall be 
based upon a review of security information, including the results of 
the background investigation and the information provided by management 
and medical sources.
    (d) Annual PSAP access authorization continuance. Once an employee 
has received the PSAP access authorization, he or she shall thereafter 
undergo an annual security evaluation by the PSAP Approving Official. 
The evaluation shall include a review of the individual's DOE personnel 
security file, and an updated SF-86, OMB Control No. 3206-007, 
``Questionnaire for Sensitive Positions,'' Part II. The determination to 
continue the PSAP access authorization shall be based upon a review and 
any necessary adjudication of the information resulting from the annual 
security evaluation, and the information provided by management and 
medical sources, in accordance with the criteria and procedures 
contained in relevant sections of this part.
    (e) Periodic reinvestigation. The PSAP-cleared employee shall 
undergo periodic reinvestigation as required to maintain a Q access 
authorization. The determination to continue the PSAP access 
authorization shall be based upon a review of security information, 
including the results of the limited background investigation and the 
information provided by management and medical sources.
    (f) Processing under 10 CFR part 710, subpart A. Any matters of 
security concern raised to the attention of the PSAP Approving Official, 
such as confirmed use of illegal drugs or use of alcohol habitually to 
excess, shall be evaluated in accordance with the criteria under subpart 
A, Sec. 710.8 of this part. Any administrative review under the PSAP 
shall be conducted in accordance with the provisions and procedures in 
subpart A of this part.



PART 715--DEFINITION OF NON- RECOURSE PROJECT-FINANCED--Table of Contents




Sec.
715.1  Purpose and scope.
715.2  Definitions.
715.3  Definition of ``Nonrecourse Project-Financed''.

    Authority: 42 U.S.C. 7651o(a)(2)(B); 42 U.S.C. 7254.

    Source: 56 FR 55064, Oct. 24, 1991, unless otherwise noted.



Sec. 715.1  Purpose and scope.

    This part sets forth the definition of ``nonrecourse project-
financed'' as that term is used to define ``new independent power 
production facility,'' in section 416(a)(2)(B) of the Clean Air Act 
Amendments of 1990, 42 U.S.C. 7651o(a)(2)(B). This definition is for 
purposes of section 416(a)(2)(B) only. It is not intended to alter or 
impact the tax treatment of any facility or facility owner under the 
Internal Revenue Code and regulations.



Sec. 715.2  Definitions.

    As used in this subpart--
    Act means the Clean Air Act Amendments of 1990, 104 Stat. 2399.
    Facility means a ``new independent power production facility'' as 
that term is used in the Act, 42 U.S.C. 7651o(a)(2).



Sec. 715.3  Definition of ``Nonrecourse Project-Financed''.

    Nonrecourse project-financed means when being financed by any debt, 
such debt is secured by the assets financed and the revenues received by 
the facility being financed including, but not limited to, part or all 
of the revenues received under one or more agreements for the sale of 
the electric output from the facility, and which neither an electric 
utility with a retail service territory, nor a public utility as defined 
by section 201(e) of the Federal Power Act, as amended, 16 U.S.C. 
824(e), if any of its facilities are financed with general credit, is 
obligated to repay in whole or in part. A commitment to contribute 
equity or the contribution of equity to a facility by an electric 
utility shall not be considered an obligation of such utility to repay 
the debt of a facility. The existence of limited guarantees,

[[Page 297]]

commitments to pay for cost overruns, indemnity provisions, or other 
similar undertakings or assurances by the facility's owners or other 
project participants will not disqualify a facility from being 
``nonrecourse project-financed'' as long as, at the time of the 
financing for the facility, the borrower is obligated to make repayment 
of the term debt from the revenues generated by the facility, rather 
than from other sources of funds. Projects that are 100 percent equity 
financed are also considered ``nonrecourse project-financed'' for 
purposes of section 416(a)(2)(B).



PART 725--PERMITS FOR ACCESS TO RESTRICTED DATA--Table of Contents




                           General Provisions

Sec.
725.1  Purpose.
725.2  Applicability.
725.3  Definitions.
725.4  Interpretations.
725.5  Communications.
725.6  Categories of available information.
725.7  Specific waivers.

                              Applications

725.11  Applications.
725.12  Noneligibility.
725.13  Additional information.
725.14  Public inspection of applications.
725.15  Requirements for approval of applications.

                                 Permits

725.21  Issuance.
725.22  Scope of permit.
725.23  Terms and conditions of access.
725.24  Administration.
725.25  Term and renewal.
725.26  Assignment.
725.27  Amendment.
725.28  Administrator action on application to renew or amend.
725.29  Suspension, revocation and termination of permits.
725.30  Exceptions and additional requirements.
725.31  Violations.

Appendix A to Part 725--Categories of Restricted Data Available
Appendix B to Part 725--DOE's Operations Offices and Geographical Areas 
          of Responsibilities

    Authority: Sec. 161 of the Atomic Energy Act, as amended, 68 Stat. 
943, 42 U.S.C. 2201.

    Source: 41 FR 56778, Dec. 30, 1976, unless otherwise noted.

    Editorial Note: Regulations in this part are affected by a document 
published at 44 FR 37938, June 29, 1979. See the redesignation table 
appearing in the Finding Aids section of this volume.

                           General Provisions



Sec. 725.1  Purpose.

    This part establishes procedures and standards for the issuance of 
an Access Permit to any person subject to this part who requires access 
to Restricted Data applicable to civil uses of atomic energy for use in 
his business, trade or profession; provides for the amendment, renewal, 
suspension, termination and revocation of an Access Permit; and 
specifies the terms and conditions under which the Administrator will 
issue the Permit.



Sec. 725.2  Applicability.

    The regulations in this part apply to any person within or under the 
jurisdiction of the United States who desires access to Restricted Data 
for use in his business, profession or trade.



Sec. 725.3  Definitions.

    As used in this part:
    (a) Access Permit means a permit, issued by the Administrator 
authorizing access by the named permittee to Restricted Data applicable 
to civil uses of atomic energy in accordance with the terms and 
conditions stated on the permit.
    (b) Act means the Atomic Energy Act of 1954 (68 Stat. 919), 
including any amendments thereto.
    (c) Category means a category of Restricted Data designated in 
appendix A to the regulations in this part.
    (d) Administrator means the Administrator of the Department of 
Energy or his duly authorized representatives.
    (e) DOE means the Department of Energy.
    (f) Permittee means the holder of a permit issued pursuant to the 
regulations in this part.
    (g) Person means (1) any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency other than DOE, any state or any political subdivision 
of, or any political entity within a state, or other entity; and

[[Page 298]]

(2) any legal successor, representative, agent, or agency of the 
foregoing.
    (h) Restricted Data means all data concerning (1) design, 
manufacture or utilization of atomic weapons; (2) the production of 
special nuclear material; or (3) the use of special nuclear material in 
the production of energy, but shall not include data declassified or 
removed from the Restricted Data category pursuant to section 142 of the 
Act.
    (i) Government Confidential Commercial Information means sensitive 
commercial information not including Restricted Data, generated by the 
government, the release of which could put the government at a 
competitive disadvantage in providing enrichment services.
[41 FR 56778, Dec. 30, 1976, as amended at 52 FR 30139, Aug. 13, 1987]



Sec. 725.4  Interpretations.

    Except as specifically authorized by the Administrator in writing no 
interpretation of the meaning of the regulations in this part by any 
officer or employee of DOE other than a written interpretation by the 
General Counsel will be recognized to be binding upon DOE.



Sec. 725.5  Communications.

    Communications concerning rulemaking, i.e., petition to change part 
725, should be addressed to Administrator of Energy Research and 
Development, Department of Energy, Washington DC 20545. Except with 
respect to category C-24, all other communications concerning the 
regulations in this part and applications filed under them, should be 
addressed to the DOE Operations Office listed in appendix B of this part 
responsible for the geographical area in which (a) the applicant's 
principal place of business is located, or (b) the principal place where 
the applicant will use the restricted data is located.



Sec. 725.6  Categories of available information.

    For administrative purposes DOE has categorized Restricted Data 
which will be made available to permittees in the categories as set 
forth in appendix A to this part. Top Secret information; information 
pertaining to the design, manufacture or utilization of atomic weapons; 
and defense information other than Restricted Data are not included in 
these categories and will not be made available under this part.



Sec. 725.7  Specific waivers.

    The Administrator may, upon application of any interested party, 
grant such waivers from the requirements of this part as he determines 
are authorized by law and will not constitute an undue risk to the 
common defense and security.

                              Applications



Sec. 725.11  Applications.

    (a) Any person desiring access to Restricted Data pursuant to this 
part should submit an application (Form DOE 378), in triplicate, for an 
access permit to the DOE Operations Office, listed in appendix B to this 
part, responsible for the area in which (1) the applicant's principal 
place of business is located, or (2) the principal place where the 
applicant will use the Restricted Data is located. Applications for 
access to Restricted Data in category C-24 isotope separation, should be 
submitted to the Oak Ridge Operations Office.
    (b) Where an individual desires access to Restricted Data for use in 
the performance of his duties as an employee, the application for an 
access permit must be filed in the name of his employer.
    (c) Self-employed private consultants, desiring access to Restricted 
Data, must file the application in their own name for an individual 
access permit.
    (d) Each application should contain the following information:
    (1) Name of applicant (unincorporated subsidiaries or divisions of a 
corporation must apply in the name of the corporation);
    (2) Address of applicant;
    (3) Description of business or occupation of applicant; and
    (4)(i) If applicant is an individual, state citizenship.
    (ii) If applicant is a partnership, state name, citizenship and 
address of

[[Page 299]]

each partner and the principal location where the partnership does 
business.
    (iii) If applicant is a corporation or an unincorporated 
association, state:
    (A) The state where it is incorporated or organized and the 
principal location where it does business;
    (B) The names, addresses and citizenship of its directors and of its 
principal officers;
    (C) Whether it is owned, controlled or dominated by an alien, a 
foreign corporation, or foreign government, and if so, give details.
    (iv) If the applicant is acting as agent or representative of 
another person in filing the application, identify the principal and 
furnish information required under this subparagraph with respect to 
such principal;
    (5) Total number of full-time employees;
    (6) Classification of Restricted Data (Confidential or Secret) to 
which access is requested;
    (7) Potential use of the Restricted Data in the applicant's 
business, profession or trade. If access to Secret Restricted Data is 
requested, list the specific categories by number and furnish detailed 
reasons why such access within the specified categories is needed by the 
applicant. The need for Secret information should be stated by 
describing its proposed use in specific research, design, planning, 
construction, manufacturing, or operating projects; in activities under 
licenses issued by Nuclear Regulatory Commission; in studies or 
evaluations planned or under way; or in work or services to be performed 
for other organizations. In addition, if access to secret restricted 
data in category C-65, plutonium production, or restricted data in 
category C-24, isotope separation, is requested, the application should 
also include sufficient information to satisfy the requirements of 
Sec. 725.15(b) (2) or (3), as the case may be.''
    (8) Principal Location(s) at which Restricted Data will be used.
    (e) Applications should be signed by a person authorized to sign for 
the applicant.
    (f) Each application shall contain complete and accurate disclosure 
with respect to the real party or parties in interest and as to all 
other matters and things required to be disclosed.



Sec. 725.12  Noneligibility.

    The following persons are not eligible to apply for an access 
permit:
    (a) Corporations not organized under the laws of the United States 
or a political subdivision thereof.
    (b) Any individual who is not a citizen of the United States.
    (c) Any partnership not including among the partners one or more 
citizens of the United States; or any other unincorporated association 
not including one or more citizens of the United States among its 
principal officers.
    (d) Any organization which is owned, controlled or dominated by the 
Government of, a citizen of, or an organization organized under the laws 
of a country or area listed as a Subgroup A country or destination in 
Sec. 371.3 (15 CFR 371.3) of the Comprehensive Export Schedule of the 
United States Department of Commerce.
    (e) Persons subject to the jurisdiction of the United States who are 
not doing business within the United States.



Sec. 725.13  Additional information.

    The Administrator may, at any time after the filing of the original 
application and before the termination of the permit, require additional 
information in order to enable the Administrator to determine whether 
the permit should be granted or denied or whether it should be modified 
or revoked.



Sec. 725.14  Public inspection of applications.

    Applications and documents submitted to DOE in connection with 
applications may be made available for public inspection in accordance 
with the regulations contained in part 702 of this chapter.



Sec. 725.15  Requirements for approval of applications.

    (a) An application for an access permit authorizing access to 
confidential restricted data in the categories set forth in appendix A 
of this part (except C-91 and C-24) will be approved only if the 
application demonstrates that the applicant has a potential use or 
application for such data in his business,

[[Page 300]]

trade, or profession and has filed a complete application form.
    (b)(1) An application for an access permit authorizing access to 
restricted data in category C-24 or secret restricted data in other 
categories will be approved only if the applicant has a need for such 
data in his business, trade, or profession and has filed a complete 
application form.
    (2) An application for an access permit authorizing access to Secret 
Restricted Data in category C-65 Plutonium Production will be approved 
only if the application demonstrates also that the applicant:
    (i) Is directly engaged in a substantial effort to develop, design, 
build or operate a chemical processing plant or other facility related 
to his participation in the peaceful uses of atomic energy for which 
such production rate and cost data are needed; or
    (ii) Is furnishing to a permittee having access to C-65 under 
paragraph (b)(2)(i) of this section, substantial scientific, engineering 
or other professional services to be used by said permittee in carrying 
out the activities for which said permittee received access to category 
C-65.
    (3) An application for an access permit authorizing access to 
Restricted Data in category C-24, isotope separation--subcategory A or 
B--will be approved only if the application demonstrates also that the 
applicant:
    (i) Possesses technical, managerial and financial qualifications 
demonstrating that the applicant is potentially capable of undertaking 
or participating significantly in the construction and/or operation of 
production or manufacturing facilities and offers reasonable assurance 
of adequacy of resources to carry on, alone or with others, uranium 
enrichment on a production basis or the large-scale manufacture or 
assembly of precision equipment systems, or is potentially capable of 
utilizing centrifuge machines in its business for uranium enrichment or 
for purposes other than uranium enrichment; and is not subject to 
foreign ownership, control, or influence; and
    (A) For subcategory A, desires to determine its interest in 
participating significantly in a substantial effort to develop, design, 
build, and operate a uranium enrichment facility or a facility for the 
manufacture of uranium enrichment equipment.
    (B) For subcategory B, proposes to (1) participate significantly in, 
or is directly participating significantly in, a substantial effort to 
evaluate alternative processes, develop, design, build, and operate a 
uranium enrichment facility or a facility for the manufacture of uranium 
enrichment equipment, or (2) utilize centrifuge machines and related 
equipment in its business for uranium enrichment or for purposes other 
than uranium enrichment, or
    (ii) Is furnishing to a permittee having access to Category C-24 
under the paragraph (b)(3)(i) of this section substantial scientific, 
engineering, or other professional services to be used by said permittee 
in carrying out the activities for which said permittee received access 
to Category C-24.
    (4) An application for an access permit authorizing access to 
Confidential and Secret Restricted Data in C-91, Nuclear Reactors for 
Rocket Propulsion, will be approved only if the application demonstrates 
also that the applicant:
    (i) Possesses qualifications demonstrating that he is capable of 
making a contribution to research and development in the field of 
nuclear reactors for rocket propulsion and is directly engaged in or 
proposes to engage in a substantial research and development program in 
such field of work; or
    (ii) Is engaged in or proposes to engage in a substantial study 
program in the field of nuclear reactors for rocket propulsion 
preparatory to the submission of a research and development proposal to 
DOE; or
    (iii) Is furnishing to a permittee having access under paragraph 
(b)(4) (i) or (ii) of this section substantial scientific, engineering 
or other professional services to be used by that permittee in a study 
or research and development program for which said permittee received 
access.
[41 FR 56778, Dec. 30, 1976, as amended at 52 FR 30139, Aug. 13, 1987]

                                 Permits



Sec. 725.21  Issuance.

    (a) Upon a determination that an application meets the requirements 
of

[[Page 301]]

this regulation, the Administrator will issue to the applicant an access 
permit on Form DOE 379.
    (b) An Access Permit is not an access authorization. It does not 
authorize any individual not having an appropriate DOE access 
authorization to receive Restricted Data. See Sec. 725.24 and part 795 
of this chapter.



Sec. 725.22  Scope of permit.

    (a) All access permits will as a minimum authorize access, subject 
to the terms and conditions of the access permit to confidential 
restricted data in all of the categories set forth in appendix A to this 
part, except C-91 and C-24.
    (b) In addition, access permits may authorize access, subject to the 
terms and conditions of the access permit to such Secret Restricted Data 
as is included within the particular category or categories specified in 
the permit.
    (c) In addition, access permits may authorize access, subject to the 
terms and conditions of the access permit, to such government 
confidential commercial information as is included within the particular 
category or categories specified in the permit.
[41 FR 56778, Dec. 30, 1976, as amended at 52 FR 30139, Aug. 13, 1987]



Sec. 725.23  Terms and conditions of access.

    (a) Neither the United States, nor DOE, nor any person acting on 
behalf of DOE makes any warranty or other representation, expressed or 
implied, (1) with respect to the accuracy, completeness or usefulness of 
any information made available pursuant to an access permit, or (2) that 
the use of any such information may not infringe privately owned rights.
    (b) The Administrator, on behalf of DOE, hereby waives such rights 
with respect to any invention or discovery as it may have pursuant to 
section 152 of the Act by reason of such invention or discovery having 
been made or conceived in the course of, in connection with, or 
resulting from access to Restricted Data received under the terms of an 
access permit. (Note provisions of Sec. 725.23(d).)
    (c) Each permittee shall:
    (1) Comply with all applicable provisions of the Atomic Energy Act 
of 1954, as amended, and with parts 795 and 810 of this chapter and with 
all other applicable rules, regulations, and orders of DOE, including 
such rules, regulations, and orders as DOE may adopt or issue to 
effectuate the policies specified in the act directing DOE to strengthen 
free competition in private enterprise and avoid the creation or 
maintenance of a situation inconsistent with the antitrust laws.
    (2) Be deemed to have waived all claims for damages under section 
183 of title 35 U.S. Code by reason of the imposition of any secrecy 
order on any patent application and all claims for just compensation 
under section 173 of the Atomic Energy Act of 1954, with respect to any 
invention or discovery made or conceived in the course of, in connection 
with or as a result of access to Restricted Data received under the 
terms of the access permit;
    (3) Be deemed to have waived any and all claims against the United 
States, DOE and all persons acting on behalf of DOE that might arise in 
connection with the use, by the applicant, of any and all information 
supplied by them pursuant to the access permit;
    (4) Obtain and preserve in his files written agreements from all 
individuals who will have access to Restricted Data under his access 
permit. The agreement shall be as follows:

    In consideration for receiving access to Restricted Data under the 
access permit issued by the Administrator of Energy Research and 
Development, I hereby agree to:
    (a) Waive all claims for damages under section 183 of title 35 U.S. 
Code by reason of the imposition of any secrecy order on any patent 
application, and all claims for just compensation under section 173 of 
the Atomic Energy Act of 1954, with respect to any invention or 
discovery made or conceived in the course of, in connection with or 
resulting from access to Restricted Data received under the terms of the 
access permit issued to (insert the name of the holder of the access 
permit);
    (b) Waive any and all claims against the United States, DOE, and all 
persons acting on behalf of DOE that might arise in connection with the 
use, by me, of any and all information supplied by them pursuant to the 
access permit issued to (insert the name of the holder of the access 
permit).


In case of an access permit authorizing access to restricted data in 
category C-24, isotope separation, the agreement

[[Page 302]]

shall also provide for such requirements as the permittee considers 
necessary for purposes of fulfilling its obligations under paragraph (d) 
of this section.
    (5) Pay all established charges for personnel access authorizations, 
DOE consulting services, publication and reproduction of documents, and 
such other services as DOE may furnish in connection with the access 
permit.
    (d) The following terms and conditions are applicable to an access 
permit authorizing access to restricted data in category C-24, isotope 
separation irrespective of whether access to DOE's restricted data 
information is desired:
    (1) The permittee agrees to grant a nonexclusive license at 
reasonable royalties to the United States and, at the request of DOE, to 
domestic and foreign persons, to use in the production or enrichment of 
special nuclear material any U.S. patent or any U.S. patent application 
(otherwise in condition for allowance except for a secrecy order 
thereon) on any invention or discovery made or conceived by the 
permittee, its employees, or others engaged by the permittee in the 
course of the permittee's work under the access permit, or as a result 
of access to data or information made available by DOE.
    (2) The permittee agrees to grant to the United States, and, at the 
request of DOE, to domestic and foreign persons, the right at reasonable 
royalties to use for research, development, or manufacturing programs 
for the production or enrichment of special nuclear material, any 
technical information or data, including economic evaluations thereof, 
of a proprietary nature developed by the permittee, its employees, or 
others engaged by the permittee in the course of the permittee's work 
under the access permit or as a result of access to data or information 
made available by DOE and not covered by a U.S. patent or U.S. patent 
application referred to in paragraph (d)(1) of this section. If DOE 
disseminates any such proprietary technical information or data in its 
possession to any of its contractors for use in any DOE research, 
development, production, or manufacturing programs, it will do so under 
contractual provisions pursuant to which the contractor would undertake 
to use this information only for the work under the pertinent DOE 
contract. Notwithstanding the foregoing provisions of this subparagraph, 
the permittee waives any claim against DOE for compensation or 
otherwise, in connection with any use or dissemination of information or 
data not specifically identified and claimed by the permittee as 
proprietary in a written notice to DOE at the time of the furnishing of 
the information or data to DOE. As used in this subparagraph, the term 
``technical information or data, including economic evaluations thereof, 
of a proprietary nature'' means information or data which:
    (i) Is not the property of the Government by virtue of any 
agreement;
    (ii) Concerns the details of trade secrets or manufacturing 
processes which the permittee has protected from us by others; and
    (iii)(A) Is specifically identified as proprietary at the time it is 
made available to DOE.
    (B) Technical information or data shall not be deemed proprietary in 
nature whenever substantially the same technical information is 
available to DOE which has been prepared, developed or furnished as 
nonproprietary information by another source independently of the 
proprietary information and data furnished by the permittee.
    (3) If the amount of reasonable royalties provided for in paragraphs 
(d) (1) and (2) of this section cannot be agreed upon, the permittee 
agrees that such amount shall be determined by the Administrator under 
the provisions of section 157c of the Atomic Energy Act of 1954, as 
amended.
    (4) In the event domestic commercial uranium enriching services are 
provided by persons other than an agency of the United States, the 
permittee agrees not to require the United States to pay the royalties 
provided for in paragraphs (d) (1) and (2) of this section.
    (5) The acceptance, exercise, or use of the licenses or rights 
provided for in paragraphs (d) (1) and (2) of this section shall not 
prevent the Government, at any time, from contesting their validity, 
scope or enforceability.

[[Page 303]]

    (6) The permittee agrees, during the term of the access permit, to 
make quarterly reports to DOE in writing, in reasonable detail, 
respecting all technical information or data, including economic 
evaluations thereof, which the permittee or DOE considers may be of 
interest to DOE, including reports of patent applications on inventions 
or discoveries and of technical information and data of a proprietary 
nature. These reports will cover the results of the permittee's work 
under the access permit or as a result of data or information made 
available by DOE. The foregoing provisions of this subparagraph shall be 
subject to the provisions of paragraphs (d) (1) and (2) of this section.
    (7) The permittee agrees to make available to DOE, at all reasonable 
times during the term of the access permit, for inspection by DOE 
personnel, or by mutual agreement, others on behalf of DOE, all 
experimental equipment and technical information or data developed by 
the permittee, its employees, or others engaged by the permittee, in the 
course of the permittee's work under the access permit or as a result of 
data or information made available by DOE. The foregoing provision of 
this subparagraph shall be subject to the provisions of paragraphs (d) 
(1) and (2) of this section.
    (8) The permittee agrees to pay such reasonable compensation as DOE 
may elect to charge for the commercial use of its inventions and 
discoveries including related data and technology and, except for an 
applicant qualifying for a permit pursuant to Sec. 725.15(b)(3)(ii), 
agrees to pay $25,000 for an access permit authorizing access to 
restricted data in subcategory B.
    (9) Except as may be otherwise authorized by DOE, the permittee 
agrees not to disseminate to persons not granted access by DOE, 
restricted data or government confidential commercial information made 
available to the permittee by DOE or restricted data developed by the 
permittee, its employees, or others engaged by the permittee in the 
course of the permittee's work under the access permit or as a result of 
data or information made available by DOE.
    (10) The granting of an access permit does not constitute any 
assurance, direct or implied, that the Nuclear Regulatory Commission 
will grant the permittee a license for a production facility or any 
other license.
    (11) In the event the permittee is engaged by DOE to perform work 
for DOE in the field of the separation of isotopes, the permittee agrees 
to undertake such measures as DOE may require for the separation of its 
activities under the access permit from its work for DOE.
[41 FR 56778, Dec. 30, 1976, as amended at 52 FR 30139, Aug. 13, 1987]



Sec. 725.24  Administration.

    With respect to each permit issued pursuant to the regulations in 
this part, the cognizant Operations Office will:
    (a) Process all personnel access authorizations requested in 
connection with the permit;
    (b) Review the procedures submitted by the Applicant, in accordance 
with part 795 of this chapter, for the safeguarding of Restricted Data; 
and
    (c) Provide information to the permittee with respect to the sources 
and locations of Restricted Data available under this permit and to 
assist the permittee in other matters pertaining to the administration 
of his permit.



Sec. 725.25  Term and renewal.

    (a) Each access permit will be issued for a two year term, unless 
otherwise stated in the permit.
    (b) Applications for renewal shall be filed in accordance with 
Sec. 725.11. Each renewal application must be complete, without 
reference to previous applications. In any case in which a permittee has 
filed a properly completed application for renewal more than thirty (30) 
days prior to the expiration of his existing permit, such existing 
permit shall not expire until the application for a renewal has been 
finally acted upon by the Administrator.



Sec. 725.26  Assignment.

    An access permit is nontransferable and nonassignable.

[[Page 304]]



Sec. 725.27  Amendment.

    An access permit may be amended from time to time upon application 
by the permittee. An application for amendment may be filed, in 
triplicate, in letter form and shall be signed by an individual 
authorized to sign on behalf of the applicant. The term of an access 
permit shall not be altered by an amendment thereto.



Sec. 725.28  Administrator action on application to renew or amend.

    In considering an application by a permittee to review or amend his 
permit, the Administrator will apply the criteria set forth in 
Sec. 725.15. Failure of an applicant to reply to an DOE request for 
additional information concerning an application for renewal or 
amendment within 60 days shall result in a rejection of the application 
without prejudice to resubmit a properly completed application at a 
later date.



Sec. 725.29  Suspension, revocation and termination of permits.

    The Administrator may revoke or suspend any access permit for any 
material false statement in the application or in any report submitted 
to DOE pursuant to the regulations in this part or because of conditions 
or facts which would have warranted a refusal to grant the permit in the 
first instance, or for violation of any of the terms and conditions of 
the Atomic Energy Act of 1954 or rules, regulations or orders issued 
pursuant thereto. A permittee should request termination of his permit 
when he no longer requires Restricted Data for use in his business, 
trade or profession.



Sec. 725.30  Exceptions and additional requirements.

    Notwithstanding any other provision in the regulations in this part, 
the Administrator may deny an application for an access permit or 
suspend or revoke any access permit, or incorporate additional 
conditions or requirements in any access permit, upon finding that such 
denial, revocation or the incorporation of such conditions and 
limitations is necessary or appropriate in the interest of the common 
defense and security or is otherwise in the public interest.



Sec. 725.31  Violations.

    An injunction or other court order may be obtained prohibiting any 
violation of any provision of the Act or any regulation or order issued 
thereunder. Any person who willfully violates any provision of the Act 
or any regulation or order issued thereunder may be guilty of a crime 
and, upon conviction, may be punished by fine or imprisonment or both, 
as provided by law.

     Appendix A to Part 725--Categories of Restricted Data Available

    C-24  Isotope separation.--This category is divided into 
subcategories A and B.
    Subcategory A includes information in summary form concerning the 
status and potential of the gaseous diffusion and gas centrifuge 
processes for the separation of uranium isotopes.
    Subcategory B includes information on the following:
    a. Any aspect of separating one or more isotopes of uranium from a 
composition containing a mixture of isotopes of that element by the gas 
centrifuge or gaseous diffusion processes.
    b. Design, construction, and operation of any plant, facility or 
device capable of separating by the gas centrifuge or gaseous diffusion 
processes one or more isotopes of uranium from a composition containing 
a mixture of isotopes of that element, including means and methods of 
transporting materials from one to another device.

    C-44  Nuclear Technology. This category includes classified 
technical information concerning nuclear technology. It may contain 
information on the following:
    a. Materials, including metals, ceramics, organic and inorganic 
compounds. Included are such technical areas as the technology and 
fabrication of fuel elements, corrosion studies, cladding techniques and 
radiation studies.
    b. Chemistry, chemical engineering and radiochemistry of all the 
elements and their compounds. Included are techniques and processes of 
chemical separations, radioactive waste handling and feed material 
processing.
    c. Reactor physics, engineering and technology including theory, 
design, criticality studies and operation of reactors, reactor systems 
and reactor components.
    d. Reserved.
    e. Lithium isotope separation technology. This subcategory includes 
classified technical information on the separation of lithium isotopes 
by using counter-current flows of lithium amalgam and aqueous lithium 
hydroxide solution in packed columns. Not included is information 
regarding plant design

[[Page 305]]

and operating conditions from which total production rates or design 
capacity of the lithium isotope separation plant (Colex) in Oak Ridge, 
Tennessee, can be inferred. In addition to the other requirements of 
this part, access permits for Restricted Data in this subcategory will 
be approved, provided the permittee:
    1. Demonstrates that it is not a corporation or entity owned, 
controlled or dominated by an alien, a foreign corporation, or a foreign 
government, and
    2. Agrees to insertion in his access permit of the terms and 
conditions:
    (i) Set forth in paragraphs (a) and (b) of Sec. 725.23 of this part;
    (ii) Set forth in paragraph (c) of Sec. 725.23 of this part, amended 
by deleting the phrase ``category C-24, isotope separation,'' and 
inserting in lieu thereof the phrase ``subcategory C-44e, lithium 
isotope separation technology'';
    (iii) Set forth in paragraph (d) of Sec. 725.23 of this part, 
amended by:
    (A) Deleting the phrases ``production or enrichment of special 
nuclear material'' and ``separation of isotopes'' wherever they appear, 
and inserting in lieu thereof the phrase ``separation of isotopes of 
lithium'';
    (B) Deleting the phrase ``domestic commercial uranium enriching 
services are provided by,'' and inserting in lieu thereof the phrase 
``domestic lithium isotope separation capacity becomes available to.''
    This category does not include information which reveals or from 
which can be calculated actual or planned (as distinguished from design) 
capacities, production rates and unit costs for the plutonium production 
program.

    C-65  Plutonium Production. This category includes information on 
reactor, fuel element and separations technology which reveals or from 
which can be calculated actual or planned (as distinguished from design) 
capacities, production rates and unit costs for the Hanford and Savannah 
River production facilities.
    Technology which does not reveal or enable calculation of production 
rates and unit costs of Hanford or Savannah River production facilities 
is categorized in C-44 Nuclear Technology.

    C-90  Nuclear Reactors for Ram-Jet Propulsion. This category 
includes information on:
    a. Programs pertaining to the development of nuclear reactors for 
application to ram-jet propulsion systems including theory and/or 
design, test philosophy procedures and/or results.
    b. Fabrication technology and evaluation of performance or 
characteristics of materials or components for such reactors.
    c. Controls, control systems and instrumentation relating to the 
design or technology of such reactors.
    d. Data pertaining to heat transfer, propellant kinetics or 
corrosion and erosion of materials under conditions of high temperature, 
high gas flows or other environmental conditions characteristic of ram-
jet propulsion systems.
    This category does not include information on:
    a. Design details of weapons systems or nuclear warheads.
    b. Military operational techniques or characteristics.
    c. General aspects of nuclear ram-jet missiles, such as payload, 
aerodynamic characteristics, guidance systems, physical size, gross 
weight, thrust and information of this kind which is associated with 
utilization of a nuclear ram-jet propulsion system.

    C-91  Nuclear Reactors for Rocket Propulsion. This category includes 
information on:
    a. Programs pertaining to nuclear reactors for rocket propulsion, 
i.e., missile propulsion, theory and/design, test philosophy procedures 
and/or results.
    b. Design, fabrication technology and evaluation of performance or 
characteristics of material, components, or subsystems or nuclear rocket 
reactors.
    c. Controls, control systems and instrumentation relating to the 
design or technology of rocket reactor systems.
    d. Data pertaining to heat transfer, propellant kinetics or 
corrosion and erosion of rocket reactor system materials under 
conditions of high temperature, high gas flows, or other environmental 
conditions characteristic of rocket reactors.
    This category does not include information on:
    a. Design details of weapons systems or nuclear warheads.
    b. Military operational techniques or characteristics.
    c. General aspects of payload and aerodynamic characteristics.
    d. Design details and development, information of components and 
subsystems of the nuclear rocket engine other than that associated with 
the reactor system.

    C-92  Systems for Nuclear Auxiliary Power (SNAP). This category 
includes information on:
    a. Isotopic SNAP Program, including theory, design, research and 
development, fabrication, test procedures and results for the device, 
including power conversion device and the fuels used.
    b. Reactor SNAP Program, including theory, design, research and 
development, fabrication, test procedures and results for the reactor, 
including the directly associated power conversion device when developed 
by DOE.

[[Page 306]]

    This category does not include that technical and scientific data 
developed under the SNAP Advanced Concept Program which should be 
reported in C-93.

    C-93  Advanced Concepts for Future Application.

    C-93a  Reactor Experiments. This category includes classified 
technical information developed in the pursuit of work on new or 
advanced concepts of reactors or components which DOE considers 
essential to future growth or for general application to future 
generations of reactors. Classified information developed in the pursuit 
of work on the lithium cooled reactor experiment is an example of the 
type of information to be reported in this category, i.e., information 
resulting from an experimental reactor project or component development 
which may have many future applications but which is not currently being 
pursued to meet the specific needs of an approved requirement for which 
other information categories have been provided. For example, classified 
technical information developed in the pursuit of work on Naval, Ram-Jet 
or Rocket nuclear reactors would not be reported here but under their 
respective specific categories. This category will include classified 
technical information on the following:
    a. Theory, design, and performance, either estimated or actual.
    b. Design details, composition and performance characteristics of 
major components (e.g., fuel media, reflectors, moderators, heat 
exchangers, pressure shells or containment devices, control rods, 
conversion devices, instrumentation and shielding).
    c. Material (metals, ceramics and compounds) development, alloying, 
cladding, corrosion, erosion, radiation studies and fabrication 
techniques.
    d. Chemistry, including chemical engineering, processes and 
techniques. Reactor physics, engineering and criticality studies.

    C-93b  Conversion Devices. This category includes classified 
technical information developed in the pursuit of studies, designs, 
research and development, fabrication and operation of any energy 
conversion device to be used with nuclear energy sources which is not 
being applied to a specific system development project.

    C-94  Military Compact Reactor (MCR). This category includes 
classified technical information on the actual or planned Military 
Compact Reactor and its components developed in the pursuit of studies, 
designs, research and development, fabrication, and operation of the 
reactor system or its components.
    Examples of the areas of information included are:
    a. Reactor core physics.
    b. Fuel elements and fuel element components.
    c. Moderator and reflector details.
    d. Data on primary coolant system.
    e. Radiation shield.
    f. Controls and instrumentation.
    This category does not include information on military operational 
characteristics or techniques.
[41 FR 56778, Dec. 30, 1976, as amended at 44 FR 37939, June 29, 1979]

Appendix B to Part 725--DOE's Operations Offices and Geographical Areas 
                           of Responsibilities

Albuquerque Operations Office, U.S. Department of Energy, P.O. Box 5400, 
Albuquerque, New Mexico 87115: Arizona, Kansas, New Mexico, Oklahoma, 
and Texas.
Chicago Operations Office, U.S. Department of Energy, 9800 South Cass 
Avenue, Argonne, Illinois 60439: Connecticut, Delaware, District of 
Columbia, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, 
Michigan, Minnesota, Nebraska, North Dakota, New Hampshire, New Jersey, 
New York, Ohio, Pennsylvania, Rhode Island, South Dakota, Vermont, and 
Wisconsin.
Richland Operations Office, U.S. Department of Energy, P.O. Box 550, 
Richland, Washington 99352: Alaska, Oregon, and Washington.
Oak Ridge Operations Office, U.S. Department of Energy, P.O. Box E, Oak 
Ridge, Tennessee 37830: Arkansas, Kentucky, Louisiana, Mississippi, 
Missouri, Panama Canal Zone, Puerto Rico, Tennessee, Virginia, Virgin 
Islands, and West Virginia.
San Francisco Operations Office, U.S. Department of Energy, 2111 
Bancroft Way, Berkeley 4, California 94612: California, Colorado, 
Hawaii, Idaho, Montana, Nevada, Utah, Wyoming, and U.S. Pacific 
Territories.
Savannah River Operations Office, U.S. Department of Energy, P.O. Box A, 
Aiken, South Carolina 29810: Alabama, Florida, Georgia, North Carolina, 
and South Carolina.
[41 FR 56778, Dec. 30, 1976, as amended at 44 FR 37939, June 29, 1979]



PART 745--PROTECTION OF HUMAN SUBJECTS--Table of Contents




Sec.
745.101  To what does this policy apply?
745.102  Definitions.
745.103  Assuring compliance with this policy--research conducted or 
          supported by any Federal department or agency.
745.104--745.106  [Reserved]
745.107  IRB membership.
745.108  IRB functions and operations.
745.109  IRB review of research.

[[Page 307]]

745.110  Expedited review procedures for certain kinds of research 
          involving no more than minimal risk, and for minor changes in 
          approved research.
745.111  Criteria for IRB approval of research.
745.112  Review by institution.
745.113  Suspension or termination of IRB approval of research.
745.114  Cooperative research.
745.115  IRB records.
745.116  General requirements for informed consent.
745.117  Documentation of informed consent.
745.118  Applications and proposals lacking definite plans for 
          involvement of human subjects.
745.119  Research undertaken without the intention of involving human 
          subjects.
745.120  Evaluation and disposition of applications and proposals for 
          research to be conducted or supported by a Federal department 
          or agency.
745.121  [Reserved]
745.122  Use of Federal funds.
745.123  Early termination of research support: Evaluation of 
          applications and proposals.
745.124  Conditions.

    Authority: 5 U.S.C. 301; 42 U.S.C. 7254; 42 U.S.C. 300v-1(b).

    Source: 56 FR 28012, 28018, June 18, 1991, unless otherwise noted.



Sec. 745.101  To what does this policy apply?

    (a) Except as provided in paragraph (b) of this section, this policy 
applies to all research involving human subjects conducted, supported or 
otherwise subject to regulation by any federal department or agency 
which takes appropriate administrative action to make the policy 
applicable to such research. This includes research conducted by federal 
civilian employees or military personnel, except that each department or 
agency head may adopt such procedural modifications as may be 
appropriate from an administrative standpoint. It also includes research 
conducted, supported, or otherwise subject to regulation by the federal 
government outside the United States.
    (1) Research that is conducted or supported by a federal department 
or agency, whether or not it is regulated as defined in Sec. 745.102(e), 
must comply with all sections of this policy.
    (2) Research that is neither conducted nor supported by a federal 
department or agency but is subject to regulation as defined in 
Sec. 745.102(e) must be reviewed and approved, in compliance with 
Sec. 745.101, Sec. 745.102 and Sec. 745.107 through Sec. 745.101 of this 
policy, by an institutional review board (IRB) that operates in 
accordance with the pertinent requirements of this policy.
    (b) Unless otherwise required by department or agency heads, 
research activities in which the only involvement of human subjects will 
be in one or more of the following categories are exempt from this 
policy:
    (1) Research conducted in established or commonly accepted 
educational settings, involving normal educational practices, such as 
(i) research on regular and special education instructional strategies, 
or (ii) research on the effectiveness of or the comparison among 
instructional techniques, curricula, or classroom management methods.
    (2) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures or observation of public behavior, unless:
    (i) Information obtained is recorded in such a manner that human 
subjects can be identified, directly or through identifiers linked to 
the subjects; and (ii) any disclosure of the human subjects' responses 
outside the research could reasonably place the subjects at risk of 
criminal or civil liability or be damaging to the subjects' financial 
standing, employability, or reputation.
    (3) Research involving the use of educational tests (cognitive, 
diagnostic, aptitude, achievement), survey procedures, interview 
procedures, or observation of public behavior that is not exempt under 
paragraph (b)(2) of this section, if:
    (i) The human subjects are elected or appointed public officials or 
candidates for public office; or (ii) federal statute(s) require(s) 
without exception that the confidentiality of the personally 
identifiable information will be maintained throughout the research and 
thereafter.
    (4) Research, involving the collection or study of existing data, 
documents, records, pathological specimens, or diagnostic specimens, if 
these sources are publicly available or if the information is recorded 
by the investigator in such

[[Page 308]]

a manner that subjects cannot be identified, directly or through 
identifiers linked to the subjects.
    (5) Research and demonstration projects which are conducted by or 
subject to the approval of department or agency heads, and which are 
designed to study, evaluate, or otherwise examine:
    (i) Public benefit or service programs;
    (ii) Procedures for obtaining benefits or services under those 
programs;
    (iii) Possible changes in or alternatives to those programs or 
procedures; or
    (iv) Possible changes in methods or levels of payment for benefits 
or services under those programs.
    (6) Taste and food quality evaluation and consumer acceptance 
studies, (i) if wholesome foods without additives are consumed or (ii) 
if a food is consumed that contains a food ingredient at or below the 
level and for a use found to be safe, or agricultural chemical or 
environmental contaminant at or below the level found to be safe, by the 
Food and Drug Administration or approved by the Environmental Protection 
Agency or the Food Safety and Inspection Service of the U.S. Department 
of Agriculture.
    (c) Department or agency heads retain final judgment as to whether a 
particular activity is covered by this policy.
    (d) Department or agency heads may require that specific research 
activities or classes of research activities conducted, supported, or 
otherwise subject to regulation by the department or agency but not 
otherwise covered by this policy, comply with some or all of the 
requirements of this policy.
    (e) Compliance with this policy requires compliance with pertinent 
federal laws or regulations which provide additional protections for 
human subjects.
    (f) This policy does not affect any state or local laws or 
regulations which may otherwise be applicable and which provide 
additional protections for human subjects.
    (g) This policy does not affect any foreign laws or regulations 
which may otherwise be applicable and which provide additional 
protections to human subjects of research.
    (h) When research covered by this policy takes place in foreign 
countries, procedures normally followed in the foreign countries to 
protect human subjects may differ from those set forth in this policy. 
[An example is a foreign institution which complies with guidelines 
consistent with the World Medical Assembly Declaration (Declaration of 
Helsinki amended 1989) issued either by sovereign states or by an 
organization whose function for the protection of human research 
subjects is internationally recognized.] In these circumstances, if a 
department or agency head determines that the procedures prescribed by 
the institution afford protections that are at least equivalent to those 
provided in this policy, the department or agency head may approve the 
substitution of the foreign procedures in lieu of the procedural 
requirements provided in this policy. Except when otherwise required by 
statute, Executive Order, or the department or agency head, notices of 
these actions as they occur will be published in the Federal Register or 
will be otherwise published as provided in department or agency 
procedures.
    (i) Unless otherwise required by law, department or agency heads may 
waive the applicability of some or all of the provisions of this policy 
to specific research activities or classes of research activities 
otherwise covered by this policy. Except when otherwise required by 
statute or Executive Order, the department or agency head shall forward 
advance notices of these actions to the Office for Protection from 
Research Risks, Department of Health and Human Services (HHS), and shall 
also publish them in the Federal Register or in such other manner as 
provided in department or agency procedures.\1\
---------------------------------------------------------------------------


    \1\ Institutions with HHS-approved assurances on file will abide by 
provisions of title 45 CFR part 46 subparts A-D. Some of the other 
Departments and Agencies have incorporated all provisions of title 45 
CFR part 46 into their policies and procedures as well. However, the 
exemptions at 45 CFR 46.101(b) do not apply to research involving 
prisoners, fetuses, pregnant women, or human in vitro fertilization, 
subparts B and C. The exemption at 45 CFR 46.101(b)(2), for research 
involving survey or interview procedures or observation of public 
behavior, does not apply to research with children, subpart D, except 
for research involving observations of public behavior when the 
investigator(s) do not participate in the activities being observed.

---------------------------------------------------------------------------

[[Page 309]]

[56 FR 28012, 28018, June 18, 1991; 56 FR 29756, June 28, 1991]



Sec. 745.102  Definitions.

    (a) Department or agency head means the head of any federal 
department or agency and any other officer or employee of any department 
or agency to whom authority has been delegated.
    (b) Institution means any public or private entity or agency 
(including federal, state, and other agencies).
    (c) Legally authorized representative means an individual or 
judicial or other body authorized under applicable law to consent on 
behalf of a prospective subject to the subject's participation in the 
procedure(s) involved in the research.
    (d) Research means a systematic investigation, including research 
development, testing and evaluation, designed to develop or contribute 
to generalizable knowledge. Activities which meet this definition 
constitute research for purposes of this policy, whether or not they are 
conducted or supported under a program which is considered research for 
other purposes. For example, some demonstration and service programs may 
include research activities.
    (e) Research subject to regulation, and similar terms are intended 
to encompass those research activities for which a federal department or 
agency has specific responsibility for regulating as a research 
activity, (for example, Investigational New Drug requirements 
administered by the Food and Drug Administration). It does not include 
research activities which are incidentally regulated by a federal 
department or agency solely as part of the department's or agency's 
broader responsibility to regulate certain types of activities whether 
research or non-research in nature (for example, Wage and Hour 
requirements administered by the Department of Labor).
    (f) Human subject means a living individual about whom an 
investigator (whether professional or student) conducting research 
obtains
    (1) Data through intervention or interaction with the individual, or
    (2) Identifiable private information.

Intervention includes both physical procedures by which data are 
gathered (for example, venipuncture) and manipulations of the subject or 
the subject's environment that are performed for research purposes. 
Interaction includes communication or interpersonal contact between 
investigator and subject. ``Private information'' includes information 
about behavior that occurs in a context in which an individual can 
reasonably expect that no observation or recording is taking place, and 
information which has been provided for specific purposes by an 
individual and which the individual can reasonably expect will not be 
made public (for example, a medical record). Private information must be 
individually identifiable (i.e., the identity of the subject is or may 
readily be ascertained by the investigator or associated with the 
information) in order for obtaining the information to constitute 
research involving human subjects.
    (g) IRB means an institutional review board established in accord 
with and for the purposes expressed in this policy.
    (h) IRB approval means the determination of the IRB that the 
research has been reviewed and may be conducted at an institution within 
the constraints set forth by the IRB and by other institutional and 
federal requirements.
    (i) Minimal risk means that the probability and magnitude of harm or 
discomfort anticipated in the research are not greater in and of 
themselves than those ordinarily encountered in daily life or during the 
performance of routine physical or psychological examinations or tests.
    (j) Certification means the official notification by the institution 
to the supporting department or agency, in accordance with the 
requirements of this policy, that a research project or activity 
involving human subjects has been reviewed and approved by an IRB in 
accordance with an approved assurance.

[[Page 310]]



Sec. 745.103  Assuring compliance with this policy--research conducted or supported by any Federal department or agency.

    (a) Each institution engaged in research which is covered by this 
policy and which is conducted or supported by a federal department or 
agency shall provide written assurance satisfactory to the department or 
agency head that it will comply with the requirements set forth in this 
policy. In lieu of requiring submission of an assurance, individual 
department or agency heads shall accept the existence of a current 
assurance, appropriate for the research in question, on file with the 
Office for Protection from Research Risks, HHS, and approved for Federal 
wide use by that office. When the existence of an HHS-approved assurance 
is accepted in lieu of requiring submission of an assurance, reports 
(except certification) required by this policy to be made to department 
and agency heads shall also be made to the Office for Protection from 
Research Risks, HHS.
    (b) Departments and agencies will conduct or support research 
covered by this policy only if the institution has an assurance approved 
as provided in this section, and only if the institution has certified 
to the department or agency head that the research has been reviewed and 
approved by an IRB provided for in the assurance, and will be subject to 
continuing review by the IRB. Assurances applicable to federally 
supported or conducted research shall at a minimum include:
    (1) A statement of principles governing the institution in the 
discharge of its responsibilities for protecting the rights and welfare 
of human subjects of research conducted at or sponsored by the 
institution, regardless of whether the research is subject to federal 
regulation. This may include an appropriate existing code, declaration, 
or statement of ethical principles, or a statement formulated by the 
institution itself. This requirement does not preempt provisions of this 
policy applicable to department- or agency-supported or regulated 
research and need not be applicable to any research exempted or waived 
under Sec. 745.101 (b) or (i).
    (2) Designation of one or more IRBs established in accordance with 
the requirements of this policy, and for which provisions are made for 
meeting space and sufficient staff to support the IRB's review and 
recordkeeping duties.
    (3) A list of IRB members identified by name; earned degrees; 
representative capacity; indications of experience such as board 
certifications, licenses, etc., sufficient to describe each member's 
chief anticipated contributions to IRB deliberations; and any employment 
or other relationship between each member and the institution; for 
example: full-time employee, part-time employee, member of governing 
panel or board, stockholder, paid or unpaid consultant. Changes in IRB 
membership shall be reported to the department or agency head, unless in 
accord with Sec. 745.103(a) of this policy, the existence of an HHS-
approved assurance is accepted. In this case, change in IRB membership 
shall be reported to the Office for Protection from Research Risks, HHS.
    (4) Written procedures which the IRB will follow (i) for conducting 
its initial and continuing review of research and for reporting its 
findings and actions to the investigator and the institution; (ii) for 
determining which projects require review more often than annually and 
which projects need verification from sources other than the 
investigators that no material changes have occurred since previous IRB 
review; and (iii) for ensuring prompt reporting to the IRB of proposed 
changes in a research activity, and for ensuring that such changes in 
approved research, during the period for which IRB approval has already 
been given, may not be initiated without IRB review and approval except 
when necessary to eliminate apparent immediate hazards to the subject.
    (5) Written procedures for ensuring prompt reporting to the IRB, 
appropriate institutional officials, and the department or agency head 
of (i) any unanticipated problems involving risks to subjects or others 
or any serious or continuing noncompliance with this

[[Page 311]]

policy or the requirements or determinations of the IRB and (ii) any 
suspension or termination of IRB approval.
    (c) The assurance shall be executed by an individual authorized to 
act for the institution and to assume on behalf of the institution the 
obligations imposed by this policy and shall be filed in such form and 
manner as the department or agency head prescribes.
    (d) The department or agency head will evaluate all assurances 
submitted in accordance with this policy through such officers and 
employees of the department or agency and such experts or consultants 
engaged for this purpose as the department or agency head determines to 
be appropriate. The department or agency head's evaluation will take 
into consideration the adequacy of the proposed IRB in light of the 
anticipated scope of the institution's research activities and the types 
of subject populations likely to be involved, the appropriateness of the 
proposed initial and continuing review procedures in light of the 
probable risks, and the size and complexity of the institution.
    (e) On the basis of this evaluation, the department or agency head 
may approve or disapprove the assurance, or enter into negotiations to 
develop an approvable one. The department or agency head may limit the 
period during which any particular approved assurance or class of 
approved assurances shall remain effective or otherwise condition or 
restrict approval.
    (f) Certification is required when the research is supported by a 
federal department or agency and not otherwise exempted or waived under 
Sec. 745.101 (b) or (i). An institution with an approved assurance shall 
certify that each application or proposal for research covered by the 
assurance and by Sec. 745.103 of this Policy has been reviewed and 
approved by the IRB. Such certification must be submitted with the 
application or proposal or by such later date as may be prescribed by 
the department or agency to which the application or proposal is 
submitted. Under no condition shall research covered by Sec. 745.103 of 
the Policy be supported prior to receipt of the certification that the 
research has been reviewed and approved by the IRB. Institutions without 
an approved assurance covering the research shall certify within 30 days 
after receipt of a request for such a certification from the department 
or agency, that the application or proposal has been approved by the 
IRB. If the certification is not submitted within these time limits, the 
application or proposal may be returned to the institution.

(Approved by the Office of Management and Budget under control number 
9999-0020)

[56 FR 28012, 28018, June 18, 1991; 56 FR 29756, June 28, 1991]



Secs. 745.104--745.106  [Reserved]



Sec. 745.107  IRB membership.

    (a) Each IRB shall have at least five members, with varying 
backgrounds to promote complete and adequate review of research 
activities commonly conducted by the institution. The IRB shall be 
sufficiently qualified through the experience and expertise of its 
members, and the diversity of the members, including consideration of 
race, gender, and cultural backgrounds and sensitivity to such issues as 
community attitudes, to promote respect for its advice and counsel in 
safeguarding the rights and welfare of human subjects. In addition to 
possessing the professional competence necessary to review specific 
research activities, the IRB shall be able to ascertain the 
acceptability of proposed research in terms of institutional commitments 
and regulations, applicable law, and standards of professional conduct 
and practice. The IRB shall therefore include persons knowledgeable in 
these areas. If an IRB regularly reviews research that involves a 
vulnerable category of subjects, such as children, prisoners, pregnant 
women, or handicapped or mentally disabled persons, consideration shall 
be given to the inclusion of one or more individuals who are 
knowledgeable about and experienced in working with these subjects.
    (b) Every nondiscriminatory effort will be made to ensure that no 
IRB consists entirely of men or entirely of women, including the 
institution's consideration of qualified persons of both sexes, so long 
as no selection is made to the IRB on the basis of gender. No

[[Page 312]]

IRB may consist entirely of members of one profession.
    (c) Each IRB shall include at least one member whose primary 
concerns are in scientific areas and at least one member whose primary 
concerns are in nonscientific areas.
    (d) Each IRB shall include at least one member who is not otherwise 
affiliated with the institution and who is not part of the immediate 
family of a person who is affiliated with the institution.
    (e) No IRB may have a member participate in the IRB's initial or 
continuing review of any project in which the member has a conflicting 
interest, except to provide information requested by the IRB.
    (f) An IRB may, in its discretion, invite individuals with 
competence in special areas to assist in the review of issues which 
require expertise beyond or in addition to that available on the IRB. 
These individuals may not vote with the IRB.



Sec. 745.108  IRB functions and operations.

    In order to fulfill the requirements of this policy each IRB shall:
    (a) Follow written procedures in the same detail as described in 
Sec. 745.103(b)(4) and, to the extent required by, Sec. 745.103(b)(5).
    (b) Except when an expedited review procedure is used (see 
Sec. 745.110), review proposed research at convened meetings at which a 
majority of the members of the IRB are present, including at least one 
member whose primary concerns are in nonscientific areas. In order for 
the research to be approved, it shall receive the approval of a majority 
of those members present at the meeting.



Sec. 745.109  IRB review of research.

    (a) An IRB shall review and have authority to approve, require 
modifications in (to secure approval), or disapprove all research 
activities covered by this policy.
    (b) An IRB shall require that information given to subjects as part 
of informed consent is in accordance with Sec. 745.116. The IRB may 
require that information, in addition to that specifically mentioned in 
Sec. 745.116, be given to the subjects when in the IRB's judgment the 
information would meaningfully add to the protection of the rights and 
welfare of subjects.
    (c) An IRB shall require documentation of informed consent or may 
waive documentation in accordance with Sec. 745.117.
    (d) An IRB shall notify investigators and the institution in writing 
of its decision to approve or disapprove the proposed research activity, 
or of modifications required to secure IRB approval of the research 
activity. If the IRB decides to disapprove a research activity, it shall 
include in its written notification a statement of the reasons for its 
decision and give the investigator an opportunity to respond in person 
or in writing.
    (e) An IRB shall conduct continuing review of research covered by 
this policy at intervals appropriate to the degree of risk, but not less 
than once per year, and shall have authority to observe or have a third 
party observe the consent process and the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 745.110  Expedited review procedures for certain kinds of research involving no more than minimal risk, and for minor changes in approved research.

    (a) The Secretary, HHS, has established, and published as a Notice 
in the Federal Register, a list of categories of research that may be 
reviewed by the IRB through an expedited review procedure. The list will 
be amended, as appropriate after consultation with other departments and 
agencies, through periodic republication by the Secretary, HHS, in the 
Federal Register. A copy of the list is available from the Office for 
Protection from Research Risks, National Institutes of Health, HHS, 
Bethesda, Maryland 20892.
    (b) An IRB may use the expedited review procedure to review either 
or both of the following:
    (1) Some or all of the research appearing on the list and found by 
the reviewer(s) to involve no more than minimal risk,
    (2) Minor changes in previously approved research during the period 
(of

[[Page 313]]

one year or less) for which approval is authorized.


Under an expedited review procedure, the review may be carried out by 
the IRB chairperson or by one or more experienced reviewers designated 
by the chairperson from among members of the IRB. In reviewing the 
research, the reviewers may exercise all of the authorities of the IRB 
except that the reviewers may not disapprove the research. A research 
activity may be disapproved only after review in accordance with the 
non-expedited procedure set forth in Sec. 745.108(b).
    (c) Each IRB which uses an expedited review procedure shall adopt a 
method for keeping all members advised of research proposals which have 
been approved under the procedure.
    (d) The department or agency head may restrict, suspend, terminate, 
or choose not to authorize an institution's or IRB's use of the 
expedited review procedure.



Sec. 745.111  Criteria for IRB approval of research.

    (a) In order to approve research covered by this policy the IRB 
shall determine that all of the following requirements are satisfied:
    (1) Risks to subjects are minimized: (i) By using procedures which 
are consistent with sound research design and which do not unnecessarily 
expose subjects to risk, and (ii) whenever appropriate, by using 
procedures already being performed on the subjects for diagnostic or 
treatment purposes.
    (2) Risks to subjects are reasonable in relation to anticipated 
benefits, if any, to subjects, and the importance of the knowledge that 
may reasonably be expected to result. In evaluating risks and benefits, 
the IRB should consider only those risks and benefits that may result 
from the research (as distinguished from risks and benefits of therapies 
subjects would receive even if not participating in the research). The 
IRB should not consider possible long-range effects of applying 
knowledge gained in the research (for example, the possible effects of 
the research on public policy) as among those research risks that fall 
within the purview of its responsibility.
    (3) Selection of subjects is equitable. In making this assessment 
the IRB should take into account the purposes of the research and the 
setting in which the research will be conducted and should be 
particularly cognizant of the special problems of research involving 
vulnerable populations, such as children, prisoners, pregnant women, 
mentally disabled persons, or economically or educationally 
disadvantaged persons.
    (4) Informed consent will be sought from each prospective subject or 
the subject's legally authorized representative, in accordance with, and 
to the extent required by Sec. 745.116.
    (5) Informed consent will be appropriately documented, in accordance 
with, and to the extent required by Sec. 745.117.
    (6) When appropriate, the research plan makes adequate provision for 
monitoring the data collected to ensure the safety of subjects.
    (7) When appropriate, there are adequate provisions to protect the 
privacy of subjects and to maintain the confidentiality of data.
    (b) When some or all of the subjects are likely to be vulnerable to 
coercion or undue influence, such as children, prisoners, pregnant 
women, mentally disabled persons, or economically or educationally 
disadvantaged persons, additional safeguards have been included in the 
study to protect the rights and welfare of these subjects.



Sec. 745.112  Review by institution.

    Research covered by this policy that has been approved by an IRB may 
be subject to further appropriate review and approval or disapproval by 
officials of the institution. However, those officials may not approve 
the research if it has not been approved by an IRB.



Sec. 745.113  Suspension or termination of IRB approval of research.

    An IRB shall have authority to suspend or terminate approval of 
research that is not being conducted in accordance with the IRB's 
requirements or that has been associated with unexpected serious harm to 
subjects. Any suspension or termination of approval shall include a 
statement of the reasons for the IRB's action and shall be

[[Page 314]]

reported promptly to the investigator, appropriate institutional 
officials, and the department or agency head.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 745.114  Cooperative research.

    Cooperative research projects are those projects covered by this 
policy which involve more than one institution. In the conduct of 
cooperative research projects, each institution is responsible for 
safeguarding the rights and welfare of human subjects and for complying 
with this policy. With the approval of the department or agency head, an 
institution participating in a cooperative project may enter into a 
joint review arrangement, rely upon the review of another qualified IRB, 
or make similar arrangements for avoiding duplication of effort.



Sec. 745.115  IRB records.

    (a) An institution, or when appropriate an IRB, shall prepare and 
maintain adequate documentation of IRB activities, including the 
following:
    (1) Copies of all research proposals reviewed, scientific 
evaluations, if any, that accompany the proposals, approved sample 
consent documents, progress reports submitted by investigators, and 
reports of injuries to subjects.
    (2) Minutes of IRB meetings which shall be in sufficient detail to 
show attendance at the meetings; actions taken by the IRB; the vote on 
these actions including the number of members voting for, against, and 
abstaining; the basis for requiring changes in or disapproving research; 
and a written summary of the discussion of controverted issues and their 
resolution.
    (3) Records of continuing review activities.
    (4) Copies of all correspondence between the IRB and the 
investigators.
    (5) A list of IRB members in the same detail as described is 
Sec. 745.103(b)(3).
    (6) Written procedures for the IRB in the same detail as described 
in Sec. 745.103(b)(4) and Sec. 745.103(b)(5).
    (7) Statements of significant new findings provided to subjects, as 
required by Sec. 745.116(b)(5).
    (b) The records required by this policy shall be retained for at 
least 3 years, and records relating to research which is conducted shall 
be retained for at least 3 years after completion of the research. All 
records shall be accessible for inspection and copying by authorized 
representatives of the department or agency at reasonable times and in a 
reasonable manner.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 745.116  General requirements for informed consent.

    Except as provided elsewhere in this policy, no investigator may 
involve a human being as a subject in research covered by this policy 
unless the investigator has obtained the legally effective informed 
consent of the subject or the subject's legally authorized 
representative. An investigator shall seek such consent only under 
circumstances that provide the prospective subject or the representative 
sufficient opportunity to consider whether or not to participate and 
that minimize the possibility of coercion or undue influence. The 
information that is given to the subject or the representative shall be 
in language understandable to the subject or the representative. No 
informed consent, whether oral or written, may include any exculpatory 
language through which the subject or the representative is made to 
waive or appear to waive any of the subject's legal rights, or releases 
or appears to release the investigator, the sponsor, the institution or 
its agents from liability for negligence.
    (a) Basic elements of informed consent. Except as provided in 
paragraph (c) or (d) of this section, in seeking informed consent the 
following information shall be provided to each subject:
    (1) A statement that the study involves research, an explanation of 
the purposes of the research and the expected duration of the subject's 
participation, a description of the procedures to be followed, and 
identification of any procedures which are experimental;
    (2) A description of any reasonably foreseeable risks or discomforts 
to the subject;

[[Page 315]]

    (3) A description of any benefits to the subject or to others which 
may reasonably be expected from the research;
    (4) A disclosure of appropriate alternative procedures or courses of 
treatment, if any, that might be advantageous to the subject;
    (5) A statement describing the extent, if any, to which 
confidentiality of records identifying the subject will be maintained;
    (6) For research involving more than minimal risk, an explanation as 
to whether any compensation and an explanation as to whether any medical 
treatments are available if injury occurs and, if so, what they consist 
of, or where further information may be obtained;
    (7) An explanation of whom to contact for answers to pertinent 
questions about the research and research subjects' rights, and whom to 
contact in the event of a research-related injury to the subject; and
    (8) A statement that participation is voluntary, refusal to 
participate will involve no penalty or loss of benefits to which the 
subject is otherwise entitled, and the subject may discontinue 
participation at any time without penalty or loss of benefits to which 
the subject is otherwise entitled.
    (b) Additional elements of informed consent. When appropriate, one 
or more of the following elements of information shall also be provided 
to each subject:
    (1) A statement that the particular treatment or procedure may 
involve risks to the subject (or to the embryo or fetus, if the subject 
is or may become pregnant) which are currently unforeseeable;
    (2) Anticipated circumstances under which the subject's 
participation may be terminated by the investigator without regard to 
the subject's consent;
    (3) Any additional costs to the subject that may result from 
participation in the research;
    (4) The consequences of a subject's decision to withdraw from the 
research and procedures for orderly termination of participation by the 
subject;
    (5) A statement that significant new findings developed during the 
course of the research which may relate to the subject's willingness to 
continue participation will be provided to the subject; and
    (6) The approximate number of subjects involved in the study.
    (c) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth above, or waive the requirement to obtain informed consent 
provided the IRB finds and documents that:
    (1) The research or demonstration project is to be conducted by or 
subject to the approval of state or local government officials and is 
designed to study, evaluate, or otherwise examine: (i) Public benefit of 
service programs; (ii) procedures for obtaining benefits or services 
under those programs; (iii) possible changes in or alternatives to those 
programs or procedures; or (iv) possible changes in methods or levels of 
payment for benefits or services under those programs; and
    (2) The research could not practicably be carried out without the 
waiver or alteration.
    (d) An IRB may approve a consent procedure which does not include, 
or which alters, some or all of the elements of informed consent set 
forth in this section, or waive the requirements to obtain informed 
consent provided the IRB finds and documents that:
    (1) The research involves no more than minimal risk to the subjects;
    (2) The waiver or alteration will not adversely affect the rights 
and welfare of the subjects;
    (3) The research could not practicably be carried out without the 
waiver or alteration; and
    (4) Whenever appropriate, the subjects will be provided with 
additional pertinent information after participation.
    (e) The informed consent requirements in this policy are not 
intended to preempt any applicable federal, state, or local laws which 
require additional information to be disclosed in order for informed 
consent to be legally effective.
    (f) Nothing in this policy is intended to limit the authority of a 
physician to provide emergency medical care, to the extent the physician 
is permitted to do

[[Page 316]]

so under applicable federal, state, or local law.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 745.117  Documentation of informed consent.

    (a) Except as provided in paragraph (c) of this section, informed 
consent shall be documented by the use of a written consent form 
approved by the IRB and signed by the subject or the subject's legally 
authorized representative. A copy shall be given to the person signing 
the form.
    (b) Except as provided in paragraph (c) of this section, the consent 
form may be either of the following:
    (1) A written consent document that embodies the elements of 
informed consent required by Sec. 745.116. This form may be read to the 
subject or the subject's legally authorized representative, but in any 
event, the investigator shall give either the subject or the 
representative adequate opportunity to read it before it is signed; or
    (2) A short form written consent document stating that the elements 
of informed consent required by Sec. 745.116 have been presented orally 
to the subject or the subject's legally authorized representative. When 
this method is used, there shall be a witness to the oral presentation. 
Also, the IRB shall approve a written summary of what is to be said to 
the subject or the representative. Only the short form itself is to be 
signed by the subject or the representative. However, the witness shall 
sign both the short form and a copy of the summary, and the person 
actually obtaining consent shall sign a copy of the summary. A copy of 
the summary shall be given to the subject or the representative, in 
addition to a copy of the short form.
    (c) An IRB may waive the requirement for the investigator to obtain 
a signed consent form for some or all subjects if it finds either:
    (1) That the only record linking the subject and the research would 
be the consent document and the principal risk would be potential harm 
resulting from a breach of confidentiality. Each subject will be asked 
whether the subject wants documentation linking the subject with the 
research, and the subject's wishes will govern; or
    (2) That the research presents no more than minimal risk of harm to 
subjects and involves no procedures for which written consent is 
normally required outside of the research context.
    In cases in which the documentation requirement is waived, the IRB 
may require the investigator to provide subjects with a written 
statement regarding the research.

(Approved by the Office of Management and Budget under control number 
9999-0020)



Sec. 745.118  Applications and proposals lacking definite plans for involvement of human subjects.

    Certain types of applications for grants, cooperative agreements, or 
contracts are submitted to departments or agencies with the knowledge 
that subjects may be involved within the period of support, but definite 
plans would not normally be set forth in the application or proposal. 
These include activities such as institutional type grants when 
selection of specific projects is the institution's responsibility; 
research training grants in which the activities involving subjects 
remain to be selected; and projects in which human subjects' involvement 
will depend upon completion of instruments, prior animal studies, or 
purification of compounds. These applications need not be reviewed by an 
IRB before an award may be made. However, except for research exempted 
or waived under Sec. 745.101 (b) or (i), no human subjects may be 
involved in any project supported by these awards until the project has 
been reviewed and approved by the IRB, as provided in this policy, and 
certification submitted, by the institution, to the department or 
agency.



Sec. 745.119  Research undertaken without the intention of involving human subjects.

    In the event research is undertaken without the intention of 
involving human subjects, but it is later proposed to involve human 
subjects in the research, the research shall first be reviewed and 
approved by an IRB, as provided in this policy, a certification 
submitted, by the institution, to the department or agency, and final 
approval

[[Page 317]]

given to the proposed change by the department or agency.



Sec. 745.120  Evaluation and disposition of applications and proposals for research to be conducted or supported by a Federal department or agency.

    The department or agency head will evaluate all applications and 
proposals involving human subjects submitted to the department or agency 
through such officers and employees of the department or agency and such 
experts and consultants as the department or agency head determines to 
be appropriate. This evaluation will take into consideration the risks 
to the subjects, the adequacy of protection against these risks, the 
potential benefits of the research to the subjects and others, and the 
importance of the knowledge gained or to be gained.
    (b) On the basis of this evaluation, the department or agency head 
may approve or disapprove the application or proposal, or enter into 
negotiations to develop an approvable one.



Sec. 745.121  [Reserved]



Sec. 745.122  Use of Federal funds.

    Federal funds administered by a department or agency may not be 
expended for research involving human subjects unless the requirements 
of this policy have been satisfied.



Sec. 745.123  Early termination of research support: Evaluation of applications and proposals.

    (a) The department or agency head may require that department or 
agency support for any project be terminated or suspended in the manner 
prescribed in applicable program requirements, when the department or 
agency head finds an institution has materially failed to comply with 
the terms of this policy.
    (b) In making decisions about supporting or approving applications 
or proposals covered by this policy the department or agency head may 
take into account, in addition to all other eligibility requirements and 
program criteria, factors such as whether the applicant has been subject 
to a termination or suspension under paragraph (a) of this section and 
whether the applicant or the person or persons who would direct or has 
have directed the scientific and technical aspects of an activity has 
have, in the judgment of the department or agency head, materially 
failed to discharge responsibility for the protection of the rights and 
welfare of human subjects (whether or not the research was subject to 
Federal regulation).



Sec. 745.124  Conditions.

    With respect to any research project or any class of research 
projects the department or agency head may impose additional conditions 
prior to or at the time of approval when in the judgment of the 
department or agency head additional conditions are necessary for the 
protection of human subjects.



PART 760--DOMESTIC URANIUM PROGRAM--Table of Contents






Sec. 760.1  Uranium leases on lands controlled by DOE. (Domestic Uranium Program Circular No. 760.1, formerly (AEC) Domestic Uranium Program Circular 8, 10 CFR 
          60.8).

    (a) What this section does. This section sets forth regulations 
governing the issuance of leases to permit the exploration for and 
mining of deposits containing uranium in public lands withdrawn from 
entry and location under the general mining laws for use of DOE, and in 
certain other lands under DOE control.
    (b) Statutory authority. The Atomic Energy Act of 1954, as amended 
(68 Stat. 919, 42 U.S.C. 2011 et seq.) is the authority for this 
section.
    (c) Who may hold leases. Only parties who are (1) citizens of the 
United States; (2) associations of such citizens; or (3) corporations 
organized under the laws of the United States or territories thereof, 
are eligible lessees under this section. Persons under 21 years of age 
or employees of DOE are not eligible.
    (d) Issuance of leases through competitive bidding. Except under 
special circumstances as provided in paragraph (u) of this section, each 
lease will be offered through competitive bidding and, except as 
otherwise provided in this paragraph (d), will be issued to the 
acceptable bidder offering the highest bid. The bid may be on a cash 
bonus,

[[Page 318]]

royalty bonus, or other basis as specified in the invitation to bid. 
Invitations to bid on some of the lands may be limited to small business 
concerns as defined by the Small Business Administration, and such 
invitations may limit the number of leases to be awarded to each bidder. 
In such cases DOE will accept those bids which, in relation to other 
bids received pursuant to the invitation, are most advantageous to the 
Government. Before any lease is awarded, DOE may require high bidders to 
submit a detailed statement of the facts as to such matters as their 
experience, organization, and financial resources. DOE reserves the 
right to reject any and all bids.
    (e) Solicitation of bids. Announcements of the availability of 
invitations to bid for a lease will be publicly posted and published. 
Copies of such announcements will also be mailed to parties who submit 
to DOE's Grand Junction, Colorado, Office subsequent to publication in 
the Federal Register of this (DOE) Domestic Uranium Program Circular 
760.1, written requests that their names be placed on a mailing list for 
receipt of such announcements. The invitations containing information 
for preparation and submission of bids will be available at the Grand 
Junction Office, and will be mailed only on specific written request, 
following announcement of their availability. Invitations will specify 
the land to be leased, the basis on which bids are to be submitted, the 
amount of the monetary deposit which must be transmitted with the bid, 
the place and time the bids will be publicly opened, the term, royalty 
and other payments, performance requirements, and other payments, 
performance requirements, and other conditions which will become a part 
of the lease. In addition, data which have been assembled pertaining to 
the lands to be leased will be available for public inspection at the 
Grand Junction Office; copies will also be available for purchase.
    (f) Bidding requirements; deposits. All bids must be filed at the 
place and prior to the time set forth in the invitation. Each bid must 
be sealed and accompanied by a deposit, in the form of a certified 
check, cashier's check, or bank draft, in an amount as specified in the 
invitation to bid. Deposits of unsuccessful bidders will be returned. If 
the bidder is an individual, he must submit with his bid a statement of 
his citizenship and age. If the bidder is an association (including a 
partnership), the bid shall be accompanied by a certified copy of the 
articles of association together with a statement as to the citizenship 
and age of its members. If the bidder is a corporation, evidence that 
the officer signing the bid had authority to do so and a statement as to 
the State of incorporation shall also be submitted.
    (g) Awarding of lease. Following public opening of the bids, DOE, 
subject to the right to reject any and all bids, will determine the 
successful bidder. In the event the highest acceptable bids are tie 
bids, a public drawing will be held by DOE to determine the successful 
bidder. After notice of award and within the time period prescribed in 
the invitation, the successful bidder shall execute and return to DOE 
three (3) copies of the lease and shall remit payments due as prescribed 
in the invitation. Should the successful bidder fail to execute the 
lease, or make payments as required, in accordance with the terms of the 
invitation, or fail to otherwise comply with applicable regulations, he 
may be required to forfeit any payments previously made, and lose any 
further right or interest in the lease. In such event, DOE may offer the 
lease to the next highest acceptable bidder, reoffer the lease for 
bidding, or take such other action as appropriate. If the awarded lease 
is executed by the bidder through an agent, evidence of authorization 
must be submitted.
    (h) Dating of lease. A lease issued under this section will 
ordinarily be effective as of the date it is signed on behalf of DOE.
    (i) Term of lease. A lease shall be for the period specified in the 
invitation to bid. When deemed desirable by DOE, the lease will provide 
that the lease term may be extended at the option of the lessee for a 
specified period and upon stipulated conditions.
    (j) Payments to DOE under lease. Royalty payments shall be specified 
in the invitation to bid; base royalty, minimum royalty, advance 
royalty, and

[[Page 319]]

rental payments, or a combination thereof may be required.
    (k) Title to unshipped ore. DOE, unless it approves otherwise, 
reserves all right and title to property in and to all ores and other 
uranium- or vanadium-bearing material not removed from the leased 
premises within 60 days after expiration or other termination of the 
lease. Unless DOE approves otherwise, all material mined from the leased 
premises and not marketed by the lessee shall remain on the leased 
premises.
    (l) Environmental controls. Each lease will contain such provisions 
as may be deemed necessary by DOE with respect to the lessee's use of 
the leased lands. DOE may require periodic submission of plans for 
exploration and mining activities including provisions for control of 
environmental impact. The lessee will be required to conduct operations 
so as to minimize adverse environmental effects, to comply with all 
applicable State and Federal statutes and regulations and to the extent 
stipulated in the lease agreement, will be held responsible for 
maintenance or rehabilitation of affected areas in accordance with plans 
submitted to and approved by DOE.
    (m) Performance requirements. A lease shall require that 
exploration, development, and mining activities, as appropriate, be 
conducted on the leased premises with reasonable diligence, skill, and 
care as required to achieve and maintain production of uranium ore at 
rates consistent with good and safe mining practice and with market 
conditions.
    (n) Health and safety requirements. A lease (1) shall require that 
exploration, development, and mining activities, as appropriate, be 
conducted on the leased premises with due regard for the health and 
safety of those involved, and (2) shall include appropriate measures for 
the control of radiation exposure in the mines.
    (o) Lessee's records. Leases shall provide that the lessee keep and 
make available to DOE such records as DOE deems necessary for the 
administration of the lease and its leasing program.
    (p) Rights of DOE. DOE reserves the right to enter upon the leased 
property and into all parts of the mine for inspection and other 
purposes. DOE also reserves the right to grant to other persons 
easements or rights of way upon, through, or in the leased premises. DOE 
and the Comptroller General of the United States or any of his duly 
authorized representatives shall, until the expiration of 3 years after 
termination or expiration of lease, have access to and the right to 
examine any directly pertinent books, papers, and records of the lessee 
involving transactions related to the lease.
    (q) Relinquishment of leases. A lease may be surrendered by the 
lessee upon filing with and approval by DOE of a written application for 
relinquishment. Approval of the application shall be contingent upon the 
delivery of the leased premises to DOE in a condition determined to be 
satisfactory to DOE. The lessee shall continue to be liable for the 
payment of all royalty and other debts due DOE.
    (r) Assignment of leases. Any transfer of a lease or any interest 
therein or claim thereunder, will not be recognized unless and until 
approved by DOE in writing. Ordinarily, DOE will not approve any 
transfer of a lease which involves overriding royalties or deferred 
payments of any kind to the transferor.
    (s) Cancellation. Any lease may be cancelled by DOE whenever the 
lessee fails to comply with the provisions of the lease. Failure of DOE 
to exercise its right to cancel shall not be deemed a waiver thereof.
    (t) Form of lease. Leases will be issued on forms prescribed by DOE.
    (u) Noncompetitive leases. Under special circumstances, where DOE 
believes it to be in the best interest of the Government, DOE at its 
discretion may award or extend leases on the basis of negotiation.
    (v) DOE decisions. All matters connected with the issuance and 
administration of leases will be determined by DOE whose decisions shall 
be final and conclusive.
    (w) Definitions. DOE as used in this section means the United States 
Department of Energy or its duly authorized representative or 
representatives.
    (x) Multiple use of land. Leases issued under this section shall 
provide that

[[Page 320]]

operations under them will be conducted so as not to interfere with the 
lawful operations of any third party having a lease, permit, easement, 
or other right or interest in the premises.
    (y) Compliance with State and Federal regulations. Every lease shall 
provide that the lessee is required to comply with all applicable State 
and Federal statutes and regulations.

(Secs. 66, 161, 68 Stat. 933, 948, as amended; 42 U.S.C. 2096, 2201)
[41 FR 56783, Dec. 30, 1976]



PART 765--REIMBURSEMENT FOR COSTS OF REMEDIAL ACTION AT ACTIVE URANIUM AND THORIUM PROCESSING SITES--Table of Contents




                           Subpart A--General

Sec.
765.1  Purpose.
765.2  Scope and applicability.
765.3  Definitions.

                    Subpart B--Reimbursement Criteria

765.10  Eligibility for reimbursement.
765.11  Reimbursable costs.
765.12  Inflation index adjustment procedures.

Subpart C--Procedures for Submitting and Processing Reimbursement Claims

765.20  Procedures for submitting reimbursement claims.
765.21  Procedures for processing reimbursement claims.
765.22  Appeals procedures.
765.23  Annual report.

             Subpart D--Additional Reimbursement Procedures

765.30  Reimbursement of costs incurred in accordance with a plan for 
          subsequent remedial action.
765.31  Designation of funds available for subsequent remedial action.
765.32  Reimbursement of excess funds.

    Authority: Sections 1001-1004 of Pub. L. No. 102-486, 106 Stat. 2776 
(42 U.S.C. 2296a et seq.).

    Source: 59 FR 26726, May 23, 1994, unless otherwise noted.



                           Subpart A--General



Sec. 765.1  Purpose.

    The provisions of this part establish regulatory requirements 
governing reimbursement for certain costs of remedial action at active 
uranium or thorium processing sites as specified by Subtitle A of Title 
X of the Energy Policy Act of 1992. These regulations are authorized by 
section 1002 of the Act (42 U.S.C. 2296a-1), which requires the 
Secretary to issue regulations governing the reimbursements.



Sec. 765.2  Scope and applicability.

    (a) This part establishes policies, criteria, and procedures 
governing reimbursement of certain costs of remedial action incurred by 
licensees at active uranium or thorium processing sites as a result of 
byproduct material generated as an incident of sales to the United 
States.
    (b) Costs of remedial action at active uranium or thorium processing 
sites are borne by persons licensed under section 62 or 81 of the Atomic 
Energy Act (42 U.S.C. 2092, 2111), either by NRC or an Agreement State 
pursuant to a counterpart to section 62 or 81 of the Atomic Energy Act, 
under State law, subject to the exceptions and limitations specified in 
this part.
    (c) The Department shall, subject to the provisions specified in 
this part, reimburse a licensee, of an active uranium or thorium 
processing site for the portion of the costs of remedial action as are 
determined by the Department to be attributable to byproduct material 
generated as an incident of sales to the United States and either 
incurred by the licensee not later than December 31, 2002, or incurred 
by the licensee in accordance with a plan for subsequent remedial action 
approved by the Department.
    (d) Costs of remedial action are reimbursable under Title X for 
decontamination, decommissioning, reclamation, and other remedial 
action, provided that claims for reimbursement are supported by 
reasonable documentation as specified in subpart C of this part.
    (e) Except as authorized by Sec. 765.32, the total amount of 
reimbursement

[[Page 321]]

paid to any licensee of an active uranium processing site shall not 
exceed $5.50 multiplied by the number of Federal-related dry short tons 
of byproduct material. This total amount shall be adjusted for inflation 
pursuant to section 765.12.
    (f) The total amount of reimbursement paid to all active uranium 
processing site licensees shall not exceed $270 million. This total 
amount shall be adjusted for inflation by applying the CPI-U, as 
provided by Sec. 765.12.
    (g) The total amount of reimbursement paid to the licensee of the 
active thorium processing site shall not exceed $40 million, as adjusted 
for inflation by applying the CPI-U as provided by Sec. 765.12.
    (h) Reimbursement of licensees for costs of remedial action will 
only be made for costs that are supported by reasonable documentation as 
required by Sec. 765.20 and claimed for reimbursement by a licensee in 
accordance with the procedures established by subpart C of this part.
    (i) The $310 million aggregate amount authorized to be appropriated 
under section 1003(a) of the Act (42 U.S.C. 2296a-2(a)) shall be 
adjusted for inflation by applying the CPI-U as provided by Sec. 765.12, 
and shall be provided from the Fund.



Sec. 765.3  Definitions.

    For the purposes of this part, the following terms are defined as 
follows:
    Active uranium or thorium processing site or active processing site 
means:
    (1) any uranium or thorium processing site, including the mill, 
containing byproduct material for which a license, issued either by NRC 
or by an Agreement State, for the production at a site of any uranium or 
thorium derived from ore--
    (i) Was in effect on January 1, 1978;
    (ii) Was issued or renewed after January 1, 1978; or
    (iii) For which an application for renewal or issuance was pending 
on, or after January 1, 1978; and
    (2) Any other real property or improvement on such real property 
that is determined by the Secretary or by an Agreement State to be:
    (i) In the vicinity of such site; and
    (ii) Contaminated with residual byproduct material.
    Agreement State means a State that is or has been a party to a 
discontinuance agreement with NRC under section 274 of the Atomic Energy 
Act (42 U.S.C. 2021) and thereafter issues licenses and establishes 
remedial action requirements pursuant to a counterpart to section 62 or 
81 of the Atomic Energy Act under state law.
    Atomic Energy Act means the Atomic Energy Act of 1954, as amended, 
(42 U.S.C. 2011 et seq.).
    Byproduct material means the tailings or wastes produced by the 
extraction or concentration of uranium or thorium from any ore processed 
primarily for its source material content.
    Claim for reimbursement means the submission of an application for 
reimbursement in accordance with the requirements established in subpart 
C of this part.
    Costs of remedial action means costs incurred by a licensee prior to 
or after enactment of UMTRCA to perform decontamination, 
decommissioning, reclamation, and other remedial action. These costs may 
include but are not necessarily limited to expenditures for work 
necessary to comply with applicable requirements to conduct groundwater 
remediation, treatment or containment of contaminated soil, disposal of 
process wastes, removal actions, air pollution abatement measures, mill 
and equipment decommissioning, site monitoring, administrative 
activities, expenditures required to meet necessary regulatory 
standards, or other requirements established by NRC, or an Agreement 
State. Costs of remedial action must be supported by reasonable 
documentation in accordance with the requirements of subpart C of this 
part.
    Decontamination, decommissioning, reclamation, and other remedial 
action means work performed which is necessary to comply with all 
applicable requirements of UMTRCA or, where appropriate, with applicable 
requirements established by an Agreement State.
    Department means the United States Department of Energy or its 
authorized agents.

[[Page 322]]

    Dry short tons of byproduct material means the quantity of tailings 
generated from the extraction and processing of 2,000 pounds of uranium 
or thorium ore-bearing rock.
    Federal reimbursement ratio means the ratio of Federal-related dry 
short tons of byproduct material to total dry short tons of byproduct 
material present at an active uranium or thorium processing site on 
October 24, 1992. The ratio shall be established by comparing Federal-
related dry short tons of byproduct material to total dry short tons of 
byproduct material present at the site on October 24, 1992, or by 
another means of attributing costs of remedial action to byproduct 
material generated as an incident of sales to the United States which 
the Department determines is more accurate than a ratio established 
using dry short tons of byproduct material.
    Federal-related dry short tons of byproduct material means dry short 
tons of byproduct material that was present at an active uranium or 
thorium processing site on October 24, 1992, and was generated as an 
incident of uranium or thorium sales to the United States.
    Generally accepted accounting principles means those principles 
established by the Financial Accounting Standards Board which encompass 
the conventions, rules, and procedures necessary to define accepted 
accounting practice at a particular time.
    Inflation index means the consumer price index for all urban 
consumers (CPI-U) as published by the Department of Commerce's Bureau of 
Labor Statistics.
    Licensee means a site owner licensed under section 62 or 81 of the 
Atomic Energy Act (42 U.S.C. 2092, 2111) by NRC, or an Agreement State, 
for any activity at an active uranium or thorium processing site which 
results, or has resulted, in the production of byproduct material.
    Maximum reimbursement amount or maximum reimbursement ceiling means 
the smaller of the following two quantities:
    (1) The amount obtained by multiplying the total cost of remedial 
action at the site, as determined in the approved plan for subsequent 
remedial action, by the Federal reimbursement ratio established for the 
site; or
    (2) $5.50, as adjusted for inflation, multiplied by the number of 
Federal-related dry short tons of byproduct material.
    NRC means the United States Nuclear Regulatory Commission or its 
predecessor agency.
    Offsite disposal means the disposal, and activities that contribute 
to the disposal, of byproduct material in a location that is not 
contiguous to the West Chicago Thorium Mill Site located in West 
Chicago, Illinois, in accordance with a plan approved by, or other 
written authorization from, the State of Illinois or NRC provided the 
activities are consistent with the ultimate removal of byproduct 
material from the West Chicago Thorium Mill Site.
    Plan for subsequent remedial action means a plan approved by the 
Department which includes an estimated total cost and schedule for 
remedial action, and all applicable requirements of remedial action 
established by NRC or an Agreement State to be performed after December 
31, 2002 at an active uranium or thorium processing site.
    Reclamation plan or site reclamation plan means a plan, which has 
been approved by NRC or an Agreement State, for remedial action at an 
active processing site that establishes the work necessary to comply 
with applicable requirements of UMTRCA, or where appropriate with 
requirements established by an Agreement State.
    Remedial action means decontamination, decommissioning, reclamation, 
and other remedial action at an active uranium or thorium processing 
site.
    Secretary means the Secretary of Energy or her designees.
    Site owner means a person that presently holds, or held in the past, 
any interest in land, including but not limited to a fee simple 
absolute, surface or subsurface ownership of mining claims, easements, 
and a right of access for the purposes of cleanup, or any other legal or 
equitable interest.
    Tailings means the remaining portion of a metal-bearing ore after 
some or all of the metal, such as uranium, has been extracted.

[[Page 323]]

    The Fund means the Uranium Enrichment Decontamination and 
Decommissioning Fund established at the United States Department of 
Treasury pursuant to section 1801 of the Atomic Energy Act (42 U.S.C. 
2297g).
    Title X or ``the Act'' means Subtitle A of Title X of the Energy 
Policy Act of 1992, Public Law 102-486, 106 Stat. 2776 (42 U.S.C. 2296a-
1 et seq.).
    UMTRCA means the Uranium Mill Tailings Radiation Control Act of 
1978, as amended (42 U.S.C. 7901 et seq.).
    United States means any executive department, commission, or agency, 
or other establishment in the executive branch of the Federal 
Government.
    Written Authorization means a written statement from either the NRC 
or an Agreement State that a licensee has performed in the past, or is 
authorized to perform in the future, a remedial action that is necessary 
to comply with the requirements of UMTRCA or, where appropriate, the 
requirements of an Agreement State.



                    Subpart B--Reimbursement Criteria



Sec. 765.10  Eligibility for reimbursement.

    (a) Any licensee of an active uranium or thorium processing site 
that has incurred costs of remedial action for the site that are 
attributable to byproduct material generated as an incident of sales to 
the United States shall be eligible for reimbursement of these costs, 
subject to the procedures and limitations specified in this part.
    (b) Prior to reimbursement of costs of remedial action incurred by a 
licensee, the Department shall make a determination regarding the total 
quantity of dry short tons of byproduct material, and the quantity of 
Federal-related dry short tons of byproduct material present on October 
24, 1992 at the licensee's active processing site. A claim for 
reimbursement from a site for which a determination is made will be 
evaluated individually. If a licensee does not concur with the 
Department's determination regarding the quantity of dry short tons of 
byproduct material present at the site, the licensee may appeal the 
Department's determination in accordance with Sec. 765.22 of this part. 
The Department's determination shall be used to determine that portion 
of an approved claim for reimbursement submitted by the licensee which 
shall be reimbursed, unless or until the determination is overturned on 
appeal. If the outcome of an appeal requires a change in the 
Department's initial determination, the Department will adjust any 
payment previously made to the licensee to reflect the change.



Sec. 765.11  Reimbursable costs.

    (a) Costs for which a licensee may be reimbursed must be for 
remedial action that a licensee demonstrates is attributable to 
byproduct material generated as an incident of sales to the United 
States, as determined by the Department. These costs are equal to the 
total costs of remedial action at a site multiplied by the Federal 
reimbursement ratio established for the site. These costs must be 
incurred in the performance of activities, prior to or after enactment 
of UMTRCA, and required by a plan, portion thereof, or other written 
authorization, approved by NRC or by an Agreement State. Costs of 
remedial action shall be reimbursable only if approved by the Department 
in accordance with the provisions of this part.
    (b) In addition, costs of remedial action incurred by a licensee 
after December 31, 2002 must be in accordance with a plan for subsequent 
remedial action approved by the Department as specified in Sec. 765.30.
    (c) Total reimbursement of costs of remedial action incurred at an 
active processing site that are otherwise reimbursable pursuant to the 
provisions of this part shall be limited as follows:
    (1) Reimbursement of costs of remedial action to active uranium 
processing site licensees shall not exceed $5.50, as adjusted for 
inflation, multiplied by the number of Federal-related dry short tons of 
byproduct material.
    (2) Aggregate reimbursement of costs of remedial action incurred at 
all active uranium processing sites shall not exceed $270 million. This 
aggregate amount shall be adjusted for inflation pursuant to 
Sec. 765.12; and
    (3) Reimbursement of costs of remedial action at the active thorium 
processing site shall be limited to costs incurred for offsite disposal 
and shall not

[[Page 324]]

exceed $40 million. This amount shall be adjusted for inflation pursuant 
to Sec. 765.12.
    (d) Notwithstanding the Title X requirement that byproduct material 
must be located at an active processing site on October 24, 1992, 
byproduct material moved from the Edgemont Mill in Edgemont, South 
Dakota, to a disposal site as a result of remedial action, shall be 
eligible for reimbursement in accordance with all applicable 
requirements of this part.



Sec. 765.12  Inflation index adjustment procedures.

    (a) The amounts of $5.50 (as specified in Sec. 765.2(e) of this 
rule) $270 million (as specified in Sec. 765.2(f) of this rule), $40 
million (as specified in Sec. 765.2(g) of this rule) and $310 million 
(as specified in Sec. 765.2(i) of this rule) shall be adjusted for 
inflation as provided by this section.
    (b) To make adjustments for inflation to the amounts specified in 
paragraph (a) of this section, the Department shall apply the CPI-U to 
these amounts annually, beginning in 1994, using the CPI-U as published 
by the Bureau of Labor Statistics within the Department of Commerce for 
the preceding calendar year.
    (c) The Department shall adjust annually, using the CPI-U as defined 
in this part, amounts paid to an active uranium processing site licensee 
for purposes of comparison with the $5.50 per dry short ton limit on 
reimbursement as adjusted for inflation.



Subpart C--Procedures for Submitting and Processing Reimbursement Claims



Sec. 765.20  Procedures for submitting reimbursement claims.

    (a) All costs of remedial action for which reimbursement is claimed 
must be supported by reasonable documentation as specified in this 
subpart. The Department reserves the right to deny any claim for 
reimbursement, in whole or in part, that is not submitted in accordance 
with the requirements of this subpart.
    (b) The licensee shall provide a copy of the approved site 
reclamation plan or other written authorization from NRC or an Agreement 
State upon which claims for reimbursement are based, with the initial 
claim submitted. Any revision or modification made to the plan or other 
written authorization, which is approved by NRC or an Agreement State, 
shall be included by the licensee in the next claim submitted to the 
Department following that revision or modification. This reclamation 
plan or other written authorization, as modified or revised, shall serve 
as the basis for the Department's evaluation of all claims for 
reimbursement submitted by a licensee.
    (c) Each submitted claim shall provide a summary of all costs of 
remedial action for which reimbursement is claimed. This summary shall 
identify the costs of remedial action associated with each major 
activity or requirement established by the site's reclamation plan or 
other written authorization. In addition, each claim shall provide a 
summary of the documentation relied upon by the licensee in support of 
each cost category for which reimbursement is claimed.
    (d) Documentation used to support a reimbursement claim must 
demonstrate that the costs of remedial action for which reimbursement is 
claimed were incurred specifically for activities specified in the 
site's reclamation plan, or otherwise authorized by NRC or an Agreement 
State. Summary documentation used in support of a claim must be cross-
referenced to the relevant page and activity of the licensee's 
reclamation plan, or other written authorization approved by NRC or an 
Agreement State.
    (1) Documentation prepared contemporaneous to the time the cost was 
incurred should be used when available. The documentation should 
identify the date or time period for which the cost was incurred, the 
activity for which the cost was incurred, and the reclamation plan 
provision or other written authorization to which the cost relates. 
Where available, each claim should be supported by receipts, invoices, 
pay records, or other documents that substantiate that each specific 
cost for which reimbursement is claimed was incurred for work that was 
necessary to comply with UMTRCA or applicable Agreement State 
requirements.

[[Page 325]]

    (2) Documentation not prepared contemporaneous to the time the cost 
was incurred, or not directly related to activities specified in the 
reclamation plan or other written authorization, may be used in support 
of a claim for reimbursement provided that the licensee determines the 
documentation is the only means available to document costs for which 
reimbursement is sought.
    (e) The Department may audit, or require the licensee to audit, any 
documentation used to support a claim on a case-by-case basis and may 
approve, approve in part, or deny reimbursement of any claim in 
accordance with the requirements of this part. Documentation relied upon 
by a licensee in support of a claim for reimbursement shall be made 
available to the Department and retained by the licensee until 4 years 
after final payment of a claim is made by the Department.
    (f) Each licensee should utilize generally accepted accounting 
principles consistently throughout the claim. These accounting 
principles, underlying assumptions, and any other information necessary 
for the Department to evaluate the claim shall be set forth in each 
claim.
    (g) Following each annual appropriation by Congress, the Department 
will issue a Federal Register Notice announcing:

(1) A claim submission deadline for that fiscal year;
(2) Availability of funds for reimbursement of costs of remedial action;
(3) Whether the Department anticipates that approved claims for that 
    fiscal year may be subject to prorated payment;
(4) Any changes in the Federal reimbursement ratio or maximum 
    reimbursement ceiling for any active uranium or thorium processing 
    site;
(5) Any revision in the per dry short ton limit on reimbursement for all 
    active uranium processing sites; and
(6) Any other relevant information.

    (h) A licensee shall certify, with respect to any claim submitted by 
it for reimbursement, that the work was completed as described in an 
approved reclamation plan or other authorization. In addition, the 
licensee shall certify that all costs for which reimbursement is 
claimed, all documentation relied upon in support of its costs, and all 
statements or representations made in the claim are complete, accurate, 
and true. The certification shall be signed by an officer or other 
official of the licensee with knowledge of the contents of the claim and 
authority to represent the licensee in making the certification. Any 
knowingly false or frivolous statements or representations may subject 
the individual to penalties under the False Claims Act, sections 3729 
through 3731 of title 31 United States Code, or any other applicable 
statutory authority; and criminal penalties under sections 286, 287, 
1001 and 1002 of title 18, United States Code, or any other applicable 
statutory authority.
    (i) All claims for reimbursement submitted to the Department shall 
be sent by registered or certified mail, return receipt requested. The 
Department reserves all rights under applicable law to recover any funds 
paid to licensees which an audit finds to not meet the requirements of 
this part.



Sec. 765.21  Procedures for processing reimbursement claims.

    (a) The Department will conduct a preliminary review of each claim 
within 60 days after the claim submission deadline announced in the 
Federal Register Notice specified in Sec. 765.20(g) to determine the 
completeness of each claim. Payments from the Fund to active uranium or 
thorium processing site licensees for approved costs of remedial action 
will be made simultaneously by the Department within 1 year of the claim 
submission deadline.
    (b) After completing the preliminary review specified in paragraph 
(a) of this section, the Department may audit, or require the licensee 
to audit, any documentation used in support of such claim, request the 
licensee to provide additional information, or request the licensee to 
provide other clarification determined by the Department to be necessary 
to complete its evaluation of the claim. In addition, the Department 
reserves the right to conduct an inspection of the site to verify any 
information provided by the licensee in a claim for reimbursement, or in 
support thereof. Any information requested by the

[[Page 326]]

Department, if provided, must be submitted by the claimant within 60 
days of receipt of the request unless the Department specifies in 
writing that additional time is provided.
    (c) At any time during the review of a claim, the Department may 
request an informal conference with a licensee to obtain further 
information or clarification on any unresolved issue pertaining to the 
claim. While the licensee is not required to provide additional 
clarification requested by the Department, a failure to do so may result 
in the denial of that portion of the claim for which information is 
requested.
    (d) Based upon the claim submitted and any additional information 
received by the Department, including any audit or site inspection if 
conducted, the Department shall complete a final review of all relevant 
information prior to making a reimbursement decision. When the 
Department determines it is not clear that an activity for which 
reimbursement is claimed was necessary to comply with UMTRCA or where 
appropriate, with applicable Agreement State requirements, the 
Department may consult with the appropriate regulatory authorities.
    (e) A written decision regarding the Department's determination to 
approve, approve in part, or deny a claim will be provided to the 
licensee within 10 days of completion of the final review.
    (f) If the Department determines that insufficient funds are 
available at any time to provide for complete payment of all outstanding 
approved claims, reimbursements of approved claims will be made on a 
prorated basis. A prorated payment of all outstanding approved claims 
for reimbursement, or any unpaid portion thereof, shall be made on the 
basis of the total amount of all outstanding approved claims, regardless 
of when the claims were submitted or approved.
    (g) Notwithstanding the provisions of paragraph (f) of this section, 
or any other provisions of this part, any requirement for the payment or 
obligation of funds by the Department established by this part shall be 
subject to the availability of appropriated funds, and no provision 
herein shall be interpreted to require obligation or payment of funds in 
violation of the Anti-Deficiency Act (31 U.S.C. 1341).



Sec. 765.22  Appeals procedures.

    (a) Any appeal by a licensee of any Department determination subject 
to the requirements of this part, shall invoke the appeals process 
specified in paragraph (b) of this section.
    (b) A licensee shall file an appeal of any Department determination 
subject to the requirements of this part with the Office of Hearings and 
Appeals, U.S. Department of Energy, 1000 Independence Avenue, SW., 
Washington, DC 20585. Any appeal must be filed within 45 days from the 
date the licensee received notice, actual or constructive (i.e., 
publication in the Federal Register), of the Department's determination. 
Appeals must comply with the procedures set forth in 10 CFR part 1003, 
subpart C. The decision of the Office of Hearings and Appeals shall be 
the final decision of the Department. A licensee must file an appeal in 
order to exhaust its administrative remedies, and the receipt of an 
appellate decision is a prerequisite to seeking judicial review of any 
determination made under this part.
[59 FR 26726, May 23, 1994, as amended at 60 FR 15017, Mar. 21, 1995]



Sec. 765.23  Annual report.

    The Department shall prepare annually a report summarizing pertinent 
information concerning claims submitted in the previous calendar year, 
the status of the Department's review of the claims, determinations made 
regarding the claims, amounts paid for claims approved, and other 
relevant information concerning this reimbursement program. The report 
will be available to all interested parties upon written request to the 
Department's Uranium Mill Tailings Remedial Action Project Office, 2155 
Louisiana NE., suite 10000, Albuquerque, NM 87110 and will also be 
available in the Department's Freedom of Information Reading room, 1000 
Independence Avenue SW., Washington, DC.

[[Page 327]]



             Subpart D--Additional Reimbursement Procedures



Sec. 765.30  Reimbursement of costs incurred in accordance with a plan for subsequent remedial action.

    (a) This section establishes procedures governing reimbursements of 
costs of remedial action incurred in accordance with a plan for 
subsequent remedial action approved by the Department as provided in 
this section. Costs otherwise eligible for reimbursement in accordance 
with the terms of this part and incurred in accordance with the plan 
shall be reimbursed in accordance with the provisions of subpart D and 
subpart C. In the event there is an inconsistency between the 
requirements of subpart D and subpart C, the provisions of subpart D 
shall govern reimbursement of such costs of remedial action.
    (b) A licensee who anticipates incurring costs of remedial action 
after December 31, 2002 may submit a plan for subsequent remedial 
action. This plan may be submitted at any time after January 1, 2000, 
but no later than December 31, 2001. Reimbursement of costs of remedial 
action incurred after December 31, 2002 shall be subject to the approval 
of this plan by the Department. This plan shall describe:
    (1) All applicable requirements established by NRC pursuant to 
UMTRCA, or where appropriate, by the requirements of an Agreement State, 
included in a reclamation plan approved by NRC or an Agreement State 
which have not yet been satisfied in full by the licensee, and
    (2) The total cost of remedial action required at the site, together 
with all necessary supporting documentation, segregated into actual 
costs incurred to date, costs incurred or expected to be incurred prior 
to December 31, 2002 but not yet approved for reimbursement, and 
anticipated future costs.
    (c) The Department shall review the plan for subsequent remedial 
action to verify conformance with the NRC- or Agreement State-approved 
reclamation plan or other written authorization, and to determine the 
reasonableness of anticipated future costs, and shall approve, approve 
with suggested modifications, or reject the plan. During its review, the 
Department may request additional information from the licensee to 
clarify or provide support for any provision or estimate contained in 
the plan. The Department may also consult with NRC or an Agreement State 
concerning any provision or estimate contained in the plan. Upon 
approval, approval with modifications, or rejection of a plan, the 
Department shall inform and explain to the licensee its decision.
    (d) If the Department rejects a plan for subsequent remedial action 
submitted by a licensee, the licensee may appeal the Department's 
rejection or prepare and submit a revised plan. The licensee may 
continue to submit revised plans for subsequent remedial action until 
the Department approves a plan, or September 30, 2002, whichever occurs 
first. A failure by a licensee to receive approval from the Department 
of a plan prior to December 31, 2002 will preclude that licensee from 
receiving any reimbursement for costs of remedial action incurred after 
that date.
    (e) The Department shall determine, in approving a plan for 
subsequent remedial action, the maximum reimbursement amount for which 
the licensee may be eligible. This maximum reimbursement amount shall be 
the smaller of the following two quantities:
    (1) The amount obtained by multiplying the total cost of remedial 
action at the site, as determined in the approved plan for subsequent 
remedial action, by the Federal reimbursement ratio established for such 
site; or
    (2) $5.50, as adjusted for inflation, multiplied by the number of 
Federal-related dry short tons of byproduct material. The Department 
shall subtract from the maximum reimbursement amount any reimbursement 
already approved to be paid to the licensee. The resulting sum shall be 
the potential additional reimbursement to which the licensee may be 
entitled.



Sec. 765.31  Designation of funds available for subsequent remedial action.

    (a) Upon the Department's approval of each plan for subsequent 
remedial action submitted by a licensee, the Department will designate 
specific

[[Page 328]]

amounts on deposit in the Fund for reimbursement, subject to the 
availability of appropriated funds as specified in Sec. 765.21(g). If 
insufficient funds are available at the time of approval of a plan for 
subsequent remedial action to provide for reimbursement of the total 
estimated costs, the designation of specific amounts on deposit in the 
Fund for reimbursement will be made on a prorated basis. Any remaining 
balance will be designated for reimbursement at the time additional 
funds become available.
    (b) The Department shall authorize reimbursement of costs of 
remedial action, incurred in accordance with an approved plan for 
subsequent remedial action and approved by the Department as specified 
in subpart C to this part, to be made from the Fund. These costs are 
reimbursable until:

(1) This remedial action has been completed, or
(2) The licensee has been reimbursed its maximum reimbursement amount as 
    determined by the Department pursuant to paragraph (e) of 
    Sec. 765.30.

    (c) A licensee shall submit any claim for reimbursement of costs of 
remedial action incurred pursuant to an approved plan for subsequent 
remedial action in accordance with the requirements of subpart C of this 
part. The Department shall approve, approve in part, or deny any claims 
in accordance with the procedures specified in subpart C of this part. 
The Department shall authorize the disbursement of funds upon approval 
of a claim for reimbursement.
    (d) After all remedial actions have been completed by affected 
Agreement State or NRC licensees, the Department will issue a Federal 
Register notice announcing a termination date beyond which claims for 
reimbursement will no longer be accepted.



Sec. 765.32  Reimbursement of excess funds.

    (a) No later than July 31, 2005, the Department shall determine if 
the aggregate amount authorized for appropriation pursuant to section 
1003 of the Act (42 U.S.C. 2296a-2), as adjusted for inflation pursuant 
to Sec. 765.12, exceed as of that date the combined total of all 
reimbursements which have been paid to licensees under this part, any 
amounts approved for reimbursement and owed to any licensee, and any 
anticipated additional reimbursements to be made in accordance with 
approved plans for subsequent remedial action.
    (b) If the Department determines that the amount authorized pursuant 
to section 1003 of the Act (42 U.S.C. 2296a-2), as adjusted for 
inflation, exceed the combined total of all reimbursements (as indicated 
in paragraph (a) of this section), the Department may establish 
procedures for providing additional reimbursement to uranium licensees 
for costs of remedial action, subject to the availability of 
appropriated funds. If the amount of available excess funds is 
insufficient to provide reimbursement of all eligible costs of remedial 
action, then reimbursement shall be paid on a prorated basis.
    (c) Each eligible uranium licensee's prorated share will be 
determined by dividing the total excess funds available by the total 
number of Federal-related dry short tons of byproduct material present 
at the site where costs of remedial action exceed $5.50 per dry short 
ton, as adjusted for inflation pursuant to Sec. 765.12. The resulting 
number will be the maximum cost per dry short ton, over $5.50, that may 
be reimbursed. Total reimbursement for each licensee that has incurred 
approved costs of remedial action in excess of $5.50 per dry short ton 
will be the product of the excess cost per dry short ton multiplied by 
the number of Federal-related dry short tons of byproduct material at 
the site or the actual costs incurred and approved by the Department, 
whichever is less.
    (d) Any costs of remedial action for which reimbursement is sought 
from excess funds determined by the Department to be available is 
subject to all requirements of this part except the per dry short ton 
limit on reimbursement established by paragraph (d) of Sec. 765.11.

[[Page 329]]



PART 766--URANIUM ENRICHMENT DECONTAMINATION AND DECOMMISSIONING FUND; PROCEDURES FOR SPECIAL ASSESSMENT OF DOMESTIC UTILITIES--Table of Contents




                           Subpart A--General

Sec.
766.1  Purpose.
766.2  Applicability.
766.3  Definitions.

              Subpart B--Procedures for Special Assessment

766.100  Scope.
766.101  Data utilization.
766.102  Calculation methodology.
766.103  Special Assessment invoices.
766.104  Reconciliation, adjustments and appeals.
766.105  Payment procedures.
766.106  Late payment fees.
766.107  Prepayment of future Special Assessments.

    Authority: 42 U.S.C. 2201, 2297g, 2297g-1, 2297g-2, 7254.

    Source: 59 FR 41963, Aug. 15, 1994, unless otherwise noted.



                           Subpart A--General



Sec. 766.1  Purpose.

    The provisions of this part establish procedures for the Special 
Assessment of domestic utilities for the Uranium Enrichment 
Decontamination and Decommissioning Fund pursuant to sections 1801, 1802 
and 1803 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 
Sec. 2011 et seq.).



Sec. 766.2  Applicability.

    This part applies to all domestic utilities in the United States 
that purchased separative work units from the DOE between 1945 and 
October 23, 1992.



Sec. 766.3  Definitions.

    For the purposes of this part, the following terms shall be defined 
as follows:
    CPI-U means the Consumer Price Index for all-urban consumers 
published by the Department of Labor.
    Commercial electricity generation means the production of 
electricity for sale to consumers.
    DOE means the United States Department of Energy and its predecessor 
agencies.
    Domestic utility means any utility in the United States that has 
purchased SWUs produced by DOE for the purpose of commercial electrical 
generation during the period beginning in 1945 to October 23, 1992.
    Fund means an account in the U.S. Treasury referred to as the 
Uranium Enrichment Decontamination and Decommissioning Fund, established 
by section 1801 of the Atomic Energy Act of 1954, as amended.
    Oak Ridge Operations Office means the Oak Ridge Operations Office of 
the Department of Energy in Oak Ridge, Tennessee.
    Special Assessment means the Special Assessment levied on domestic 
utilities for payments into the Fund.
    SWU means a separative work unit, the common measure by which 
uranium enrichment services are sold.
    TESS means the Toll Enrichment Services System, which is the 
database that tracks uranium enrichment services transactions of the DOE 
Oak Ridge Operations Office for the purpose of planning, toll 
transaction processing, customer invoicing and historical tracking of 
SWU deliveries.
    Use and burnup charges mean lease charges for the consumption of 
SWUs and natural uranium.



              Subpart B--Procedures for Special Assessment



Sec. 766.100  Scope.

    This subpart sets forth the procedures for the Special Assessment of 
domestic utilities for funds to be deposited in the Fund.



Sec. 766.101  Data utilization.

    DOE shall use the records from the Toll Enrichment Services System 
(TESS) and other records maintained by the Oak Ridge Operations Office 
in order to determine the total SWUs purchased from DOE for all 
purposes. DOE shall use records from TESS, relevant records of domestic 
utilities, and such other information as DOE deems to be reliable and 
probative in determining the number of SWUs that were purchased by each 
domestic utility prior

[[Page 330]]

to October 24, 1992. A domestic utility shall be considered to have 
purchased a SWU from DOE if the SWU was produced by DOE but purchased by 
the domestic utility from another source. DOE shall consider a purchase 
to have occurred upon the delivery of a SWU to the domestic utility 
purchasing the SWU. A domestic utility shall not be considered to have 
purchased a SWU from DOE if the SWU was purchased by the domestic 
utility but subsequently sold to another source.



Sec. 766.102  Calculation methodology.

    (a) Calculation of Domestic Utilities' Annual Assessment Ratio to 
the Fund. Domestic utilities shall be assessed annually for their share 
of the Fund. The amount of the assessment shall be determined by the 
ratio of SWUs produced by DOE and purchased by domestic utilities prior 
to October 24, 1992, to the total number of SWUs produced by DOE for all 
purposes (including SWUs produced for defense purposes). All 
calculations will be carried out to the fifth significant digit. This 
ratio is expressed by the following hypothetical example:

------------------------------------------------------------------------
 SWUs purchased                 Total SWUs                   Special    
by all domestic               produced--all                 assessment  
   utilities                     purposes                     ratio     
------------------------------------------------------------------------
12345..........            45678            =         .27026    
------------------------------------------------------------------------

    (b) Calculation of the Baseline Total Annual Special Assessment for 
Domestic Utilities. The Annual Special Assessment ratio calculated in 
paragraph (a) of this section shall be multiplied by $480 million, 
yielding the total amount of the Baseline Total Annual Special 
Assessment as of October 1992. In the event that this amount is in 
excess of $150 million, the Baseline Total Annual Special Assessment 
shall be capped at $150 million. All calculations will be carried out to 
the fifth significant digit. The Baseline Total Annual Special 
Assessment is determined as shown in the following hypothetical example:

------------------------------------------------------------------------
                                  Annual                 Baseline total 
     Total fund                 assessment              annual special  
                                   ratio                  assessment    
------------------------------------------------------------------------
$480,000,000.......     x         0.27026        =        $129,724,800  
------------------------------------------------------------------------

    (c) Calculation of Baseline Total Annual Special Assessment per 
Utility. The ratio of the total number of SWUs purchased by an 
individual domestic utility for commercial electricity generation, to 
the total number of SWUs purchased by all domestic utilities for 
commercial electricity generation, multiplied by the Baseline Total 
Annual Special Assessment calculated in paragraph (b) of this section, 
determines an individual utility's share of the Baseline Total Annual 
Special Assessment. All calculations will be carried out to the fifth 
significant digit. A hypothetical example of such a calculation follows:

----------------------------------------------------------------------------------------------------------------
                                                                           Baseline total                       
    Single               All utility            Utility ratio              annual special     Individual utility
 utility SWUs                SWUs                                            assessment       special Assessment
----------------------------------------------------------------------------------------------------------------
300..........            12345        =         .02430       x          $129,724,800        $3,152,312.64  
----------------------------------------------------------------------------------------------------------------

    (d) Calculation of Inflation Adjustment. The Baseline Total Annual 
Special Assessment billed to domestic utilities shall be adjusted for 
inflation using the most recently published monthly CPI-U and the CPI-U 
for October 1992. All calculations will be carried out to the fifth 
significant digit. A hypothetical example of such a calculation follows:

------------------------------------------------------------------------
                                                           Adjustment   
 CPI-U (Mar 93)               CPI-U (Oct 92)               multiplier   
------------------------------------------------------------------------
150.............            141.8         =          1.05783    
------------------------------------------------------------------------


                                                                        
  Utility special              Adjustment              Adjusted utility 
     Assessment                multiplier                 assessment    
                                                                        
$3,152,312.64......    x         1.05783        =        $3,334,610.88  
                                                                        



Sec. 766.103  Special Assessment invoices.

    (a) DOE shall issue annually a Special Assessment invoice to each 
domestic utility. This invoice will specify itemized quantities of 
enrichment services by reactor. In each Special Assessment invoice, DOE 
shall require payment, on or before 30 days from the date of each 
invoice, of that utility's prorated share of the Baseline Total

[[Page 331]]

Annual Special Assessment, as adjusted for inflation using the most 
recently published monthly CPI-U data.
    (b) DOE shall enclose with the Fiscal Year 1993 Special Assessment 
invoice a sealed, business confidential, summary SWU transaction 
statement including:
    (1) TESS information which documents, by reactor, the basis of the 
utility's assessment;
    (2) A list of domestic utilities subject to the Special Assessment;
    (3) The total number of SWUs purchased from DOE by all domestic 
utilities for all purposes prior to October 24, 1992.
    (4) The total number of SWUs purchased from DOE for all purposes 
prior to October 24, 1992, including SWUs purchased or produced for 
defense purposes; and
    (5) Such other information as may be appropriate.
    (c) With regard to any fiscal year after Fiscal Year 1993, DOE shall 
enclose a summary SWU transaction statement with Special Assessment 
invoices that will include updated information regarding adjustments to 
Special Assessments resulting from the reconciliation and appeals 
process under Section 766.104.
    (d) The date of each Annual Special Assessment invoicing will be set 
on or about October 1 with payment due 30 calendar days from the date of 
invoice starting with the Fiscal Year 1995 Special Assessment.



Sec. 766.104  Reconciliation, adjustments and appeals.

    (a) A domestic utility requesting an adjustment shall, within 30 
days from the date of a Special Assessment invoice, file a notice 
requesting an adjustment. Such notice shall include an explanation of 
the basis for the adjustment and any supporting documents, and may 
include a request for a meeting with DOE to discuss its invoice. If more 
time is needed to gather probative information, DOE will consider 
utility requests for up to 90 days additional time, providing that the 
initial notice requesting an adjustment was timely filed. The notice 
shall be filed at the address set forth in the Special Assessment 
invoice, and filing of this notice is complete only upon receipt by DOE. 
Domestic utilities are considered to have met the filing requirements 
upon DOE's receipt of the notice requesting an adjustment without regard 
to DOE's acceptance of supporting documentation. The filing of a notice 
for an adjustment shall not stay the obligation to pay.
    (b) DOE may request additional information from domestic utilities 
and may acquire data from other sources.
    (c) After reviewing a notice submitted under paragraph (a) of this 
section and other relevant information, and after making any necessary 
adjustment to its records in light of reliable and adequately probative 
records submitted in connection with the request for adjustment or 
otherwise obtained by DOE, DOE shall make a written determination 
granting or denying the requested adjustment. As appropriate, DOE shall 
modify the application of TESS data for any discrepancies or further 
transactions raised during the reconciliation process.
    (d) Any domestic utility that wishes to dispute a written 
determination under paragraph (c) of this section shall have the right 
to file an appeal with the Office of Hearings and Appeals, U.S. 
Department of Energy, 1000 Independence Avenue S.W., Washington, DC 
20585. Except for the Fiscal Year 1993 Special Assessment, any appeal 
must be filed on or before 30 days from the date of the written 
determination and should contain information of the type described in 10 
CFR part 1003, subpart C. With regard to a written determination under 
paragraph (c) of this section concerning a Fiscal Year 1993 Special 
Assessment, a domestic utility must file an appeal on or before 30 days 
from the effective date of this paragraph or from the date of such 
written determination, whichever is later. The decision of the Office of 
Hearings and Appeals shall be the final decision of DOE. Upon completion 
of the reconciliation process, all records of SWU transactions shall be 
finalized and shall become the basis of subsequent Special Assessment 
invoices. These records shall be revised to reflect any decisions from 
the Office of Hearings and Appeals and any applicable court rulings.

[[Page 332]]

    (e) Refunds of Special Assessments shall be provided in cases where 
DOE has determined, as a result of reconciliation, that an overpayment 
has been made by a domestic utility, and that the domestic utility has 
no further current obligation to DOE.
[59 FR 41963, Aug. 15, 1994, as amended at 60 FR 15017, Mar. 21, 1995]



 Sec. 766.105  Payment procedures.

    DOE shall specify payment details and instructions in all Special 
Assessment invoices. Each domestic utility shall make payments to the 
Fund by wire transfer to the Department of Treasury.



Sec. 766.106  Late payment fees.

    In the case of a late payment by a domestic utility of its Special 
Assessment, the domestic utility shall pay interest at the per annum 
rate (365-day basis) established by DOE for general application to 
monies due DOE and not received by DOE on or before a designated due 
date. Interest shall accrue beginning the date of the designated payment 
except that, whenever the due date falls on a Saturday, Sunday, or a 
United States legal holiday, interest shall commence on the next day 
immediately following which is not a Saturday, Sunday, or United States 
legal holiday. Late payment provisions for the Special Assessment to the 
Fund shall be based on the Treasury Current Value of Funds Rate (which 
is published annually by the Treasury and used in assessing interest 
charges for outstanding debts on claims owed to the United States 
Government), plus six (6) percent pro rata on a daily basis. The 
additional six (6) percent charge shall not go into effect until five 
(5) business days after payment was originally due. Late payment fees 
shall be invoiced within two days of receipt of utility payment of the 
special assessment when delinquency is less than 30 days. For longer 
periods of delinquency, DOE will submit additional invoices, as 
appropriate. Late payment fees will be due 30 days from the date of 
invoice.



Sec. 766.107  Prepayment of future Special Assessments

    DOE shall accept prepayment of future Special Assessments upon 
request by a domestic utility. A domestic utility's liability for the 
future assessments shall be satisfied to the extent of the prepayments. 
DOE shall use the pro rata share of prepayments attributable to a given 
fiscal year plus the Special Assessments collected from utilities who 
did not prepay for that fiscal year, in order to determine that the 
total amount of Special Assessments collected from domestic utilities in 
a given fiscal year does not exceed $150 million, annually adjusted for 
inflation.



PART 780--PATENT COMPENSATION BOARD REGULATIONS--Table of Contents




                      Subpart A--General Provisions

Sec.
780.1  Scope.
780.2  Definitions.
780.3  Jurisdiction of the Patent Compensation Board.
780.4  Filing and service of documents.
780.5  Applications--General form, content, and filing.
780.6  Department participation.
780.7  Designation of interested persons as parties.
780.8  Security.
780.9  Rules of procedure before the Board.
780.10  Decision of the Board.
780.11  Records of the Board.

  Subpart B--Declaring Patents Affected With the Public Interest Under 
              Section 153a of the Atomic Energy Act of 1954

780.20  Initiation of proceeding.
780.21  Notice.
780.22  Opposition, support and request for hearing.
780.23  Hearing and decision.
780.24  Criteria for declaring a patent affected with the public 
          interest.

Subpart C--Application for a License Pursuant to Section 153b(2) of the 
                        Atomic Energy Act of 1954

780.30  Filing of application.
780.31  Contents of application.
780.32  Response and request for hearing.
780.33  Hearing and decision.
780.34  Criteria for decision to issue a license.

[[Page 333]]

780.35  Communication of decision to General Counsel.
780.36  Conditions and issuance of license.

  Subpart D--Application for a License Pursuant to Section 153c of the 
                        Atomic Energy Act of 1954

780.40  Filing of application.
780.41  Contents of application.
780.42  Notice of hearing.
780.43  Response.
780.44  Hearing and decision.
780.45  Criteria for decision to issue a license.
780.46  Communication of decision to General Counsel.
780.47  Conditions and issuance of license.

 Subpart E--Applications for Royalties and Awards Under Section 157 of 
the Atomic Energy Act of 1954 and Compensation Under Section 173 of the 
 Atomic Energy Act of 1954 and the Invention Secrecy Act (35 U.S.C. 183)

780.50  Applicants.
780.51  Form and content.
780.52  Notice and hearing.
780.53  Criteria for decisions for royalties, awards and compensation.

    Authority: 42 U.S.C. 7151, 7254; 42 U.S.C. 5814, 5815; 42 U.S.C. 
2183, 2187, 2223; 35 U.S.C. 183; North American Free Trade Agreement, 
Article 1709(10), as implemented by the North American Free Trade 
Agreement Implementing Act, Pub. L. 103-182.

    Source: 46 FR 39581, Aug. 4, 1981, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 780.1  Scope.

    The regulations in this part establish the procedures, terms, and 
conditions for Patent Compensation Board:
    (a) Proceedings to declare a patent affected with the public 
interest pursuant to section 153a of the Atomic Energy Act of 1954 (Pub. 
L. 83-703; 42 U.S.C. 2183);
    (b) Proceedings to determine a reasonable royalty fee pursuant to 
section 157 of the Atomic Energy Act of 1954;
    (c) Proceedings for the grant of an award pursuant to section 157 of 
the Atomic Energy Act of 1954;
    (d) Proceedings to obtain compensation pursuant to section 173 of 
the Atomic Energy Act of 1954 and the Invention Secrecy Act (35 U.S.C. 
183);

And for applications to the Department of Energy (DOE) for a patent 
license pursuant to sections 153b(2) and 153c of the Atomic Energy Act 
of 1954.



Sec. 780.2  Definitions.

    (a) Act means the Atomic Energy Act of 1954 (Pub. L. 83-703; 42 
U.S.C. 2011).
    (b) Application means the application filed by an applicant for a 
patent license, for the determination of a reasonable royalty fee, for 
an award, or for compensation under this part.
    (c) Board means the Patent Compensation Board.
    (d) Chairman means the Chairman of the Patent Compensation Board.
    (e) Department, or DOE, or Department of Energy means the Department 
of Energy, established by the Department of Energy Organization Act 
(Pub. L. 95-91; 42 U.S.C. 7101).
    (f) Party means the applicant, patent owner, Department 
representative, and any person admitted as a party by the Board for any 
proceeding under this part.
    (g) Patent Owner means the owner of record in the United States 
Patent and Trademark Office.
    (h) Secretary means the Secretary of the Department of Energy or the 
delegate of the Secretary of Energy.



Sec. 780.3  Jurisdiction of the Patent Compensation Board.

    The Patent Compensation Board was established by section 157 of the 
Atomic Energy Act of 1954. It was transferred to the Energy Research and 
Development Administration pursuant to section 104(d) of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5814) and subsequently to the 
Department of Energy by section 301 of the Department of Energy 
Organization Act (42 U.S.C. 7151). Under section 157, the Board is given 
authority to determine reasonable royalty fees or resolve issues 
involving the grant of awards. In addition, the Board has authority:
    (a) To hear and make decisions as to compensation under section 173 
of the Act (42 U.S.C. 2223) and the Invention Secrecy Act (35 U.S.C. 
183);
    (b) To hear and make decisions as to whether a specific patent is 
affected with the public interest pursuant to section 153a of the Act;

[[Page 334]]

    (c) To hear and make decisions as to whether a specific patent 
license should be granted under sections 153b(2) and 153e of the Act;
    (d) To give notices, hold hearings and take such other actions as 
may be necessary under section 153; and
    (e) To exercise all powers available under the Act and necessary for 
the performance of these duties, including the issuance of such rules of 
procedure as may be necessary.



Sec. 780.4  Filing and service of documents.

    (a) All communications regarding proceedings subject to this part 
should be addressed to: Chairman, Patent Compensation Board, U.S. 
Department of Energy, Webb Building, Room 1006, 4040 N. Fairfax Drive, 
Arlington, Virginia 22203. All documents offered for filing shall be 
accompanied by proof of service upon all parties to the proceeding or 
their attorneys of record as required by law, rule, or order of the 
Department. Service on the Department shall be by mail, telegram, or 
delivery to: Office of the Assistant General Counsel for Patents, U.S. 
Department of Energy, Washington, DC 20585.
    (b) Filing by mail or telegram will be deemed to be complete as of 
the time of deposit in the United States mail or with a telegraph 
company.



Sec. 780.5  Applications--General form, content, and filing.

    (a) Each application shall be signed by the applicant and shall 
state the applicant's name and address. If the applicant is a 
corporation, the application shall be signed by an authorized officer of 
the corporation, and the application shall indicate the state of 
incorporation. Where the applicant elects to be represented by counsel, 
a signed notice to that effect shall be filed with the Board.
    (b) Each application must contain a concise statement of all of the 
essential facts upon which it is based. No particular form of statement 
is required. Each application shall be verified by the applicant or by 
the person having the best knowledge of such facts. In the case of facts 
stated on information and belief, the source of such information and 
grounds of belief shall be given.
    (c) Each application must identify any person whose interest the 
applicant believes may be affected by the proceeding before the Board.
    (d) Three copies of each application shall be filed with the Board. 
However, only one copy of the accompanying exhibits need be filed.
    (e) The Board will acknowledge the receipt of the application in 
writing and advise the applicant of the docket number assigned to the 
application.



Sec. 780.6  Department participation.

    The Department shall be a party to all proceedings under this part, 
and the Office of the General Counsel will represent the Department's 
interests before the Board.



Sec. 780.7  Designation of interested persons as parties.

    In any proceeding under this part, the Board shall admit as a party 
any person, upon application of such person or on the Board's own 
initiative, whose interest may be affected by the proceeding.



Sec. 780.8  Security.

    In any proceeding under this part, the Board shall take such steps 
as necessary pursuant to chapter 12 of the Act and section 181 of the 
Act to assure compliance with Department security regulations and the 
common defense.



Sec. 780.9  Rules of procedure before the Board.

    Except as set forth in this part, all Board proceedings, including 
the hearing and decision, shall be conducted pursuant to the rules of 
practice of the Department of Energy Board of Contract Appeals, 10 CFR 
part 1023, modified as the Board may determine to be necessary and 
appropriate.



Sec. 780.10  Decision of the Board.

    The decision of the Board in any proceeding under this part shall 
constitute the final action of the Department on the matter.



Sec. 780.11  Records of the Board.

    The records of the Board in cases filed before it, including the 
pleadings,

[[Page 335]]

the transcript, and the final decision, shall be open to public 
inspection, except to the extent that such records or portions thereof 
are withheld from disclosure by the Board pursuant to 10 CFR part 1004.



  Subpart B--Declaring Patents Affected With the Public Interest Under 
              Section 153a of the Atomic Energy Act of 1954



Sec. 780.20  Initiation of proceeding.

    When any person in the Department believes that the Department 
should declare a patent affected with the public interest pursuant to 
section 153a of the Act, that person shall make such a recommendation to 
the Under Secretary. If, after consultation with the General Counsel, 
the Under Secretary agrees with the recommendation, the Under Secretary 
shall initiate in writing a proceeding under section 153a before the 
Board. The communication of the Under Secretary to the Board shall 
identify the patent and state the basis for the proposed declaration.



Sec. 780.21  Notice.

    The Board will serve upon the patent owner and all other parties a 
written notice of the Department's proposed action to declare the patent 
affected with the public interest, and the notice shall identify the 
patent and state the basis for the proposed declaration.



Sec. 780.22  Opposition, support and request for hearing.

    (a) Any party may, within thirty (30) days after service of the 
notice or such other time as may be provided by the terms of the notice, 
file with the Board a written statement in opposition to or in support 
of the Department's proposed action. Such statement may also include a 
request for hearing. The statement shall contain a concise description 
of the facts, law, or any other relevant matter which the party believes 
should be reviewed by the Board during its consideration of the proposed 
declaration. If the request for a hearing is timely received, the Board 
shall call a hearing and provide notice of the time and place to all 
parties.
    (b) Failure of all parties to oppose the proposed action or to 
request a hearing within the time specified in the notice shall be 
deemed an acquiescence to that action and may result in a declaration by 
the Board that the patent is affected with the public interest.



Sec. 780.23  Hearing and decision.

    If a timely request for a hearing is made by any party, the Board 
will proceed with a hearing and decision. If a hearing is not requested, 
the Board shall prepare and issue its decision on the record.



Sec. 780.24  Criteria for declaring a patent affected with the public interest.

    A patent shall be declared to be affected with the public interest 
pursuant to section 153a of the Act upon the Board's final decision 
that:
    (a) The invention or discovery covered by the patent is of primary 
importance in the production or utilization of special nuclear material 
or atomic energy; and
    (b) The licensing of such invention or discovery under section 153 
of the Act is of primary importance to effectuate the policies and 
purposes of the Act.



Subpart C--Application for a License Pursuant to Section 153b(2) of the 
                        Atomic Energy Act of 1954



Sec. 780.30  Filing of application.

    An applicant for a license pursuant to section 153b(2) of the Act, 
under a patent which the Department has declared to be affected with the 
public interest, shall file an application with the Board in accordance 
with Sec. 780.5. The Board will docket the application and serve notice 
of the docketing upon all parties.



Sec. 780.31  Contents of application.

    Each application shall contain, in addition to the requirements 
specified in Sec. 780.5, the following information:
    (a) The activities in the production or utilization of special 
nuclear material or atomic energy to which applicant proposes to apply 
the patent license;

[[Page 336]]

    (b) The nature and purpose of the applicant's intended use of the 
patent license;
    (c) The relationship of the invention or discovery to the authorized 
activities to which it is to be applied, including an estimate of the 
effect on such activities stemming from the grant or denial of the 
license;
    (d) Efforts made by the applicant to obtain a patent license from 
the owner of the patent;
    (e) Terms, if any, on which the owner of the patent proposes to 
grant the applicant a patent license;
    (f) The terms the applicant proposes for the patent license; and
    (g) A request for either a hearing or a decision on the record.



Sec. 780.32  Response and request for hearing.

    Any party within thirty (30) days after service of the notice of 
docketing of the application:
    (a) May file with the Board a response containing a concise 
statement of the facts or law or any other relevant information which 
that party believes should be considered by the Board in opposition to 
or in support of the proposed application; and
    (b) May file a request for a hearing or for a decision on the 
record.



Sec. 780.33  Hearing and decision.

    If any party requests a hearing, the Board will proceed with a 
hearing and decision. If a hearing is not requested, the Board shall on 
the basis of the record prepare and issue its decision.



Sec. 780.34  Criteria for decision to issue a license.

    A license shall issue to the applicant to use the invention covered 
by the patent declared to be affected with the public interest pursuant 
to subsection 153b(2) of the Act upon a final decision that:
    (a) The activities to which the patent license is proposed to be 
applied are of primary importance to the applicant's conduct of an 
activity authorized under the Act; and
    (b) The applicant has made efforts to obtain reasonable commercial 
terms and conditions and such efforts have not been successful within a 
reasonable period of time. The requirement to make such efforts may be 
waived by the Board in the case of a national emergency or other 
circumstances of extreme urgency or in cases of public non-commercial 
use. Where this requirement is waived due to national emergency or other 
circumstances of extreme urgency, the owner of the patent shall be 
notified as soon as reasonably practicable. Where this requirement is 
waived for a public non-commercial use, the owner of the patent shall be 
notified promptly.
[46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68734, Dec. 29, 1993]



Sec. 780.35  Communication of decision to General Counsel.

    Following a determination to issue a patent license under section 
153b(2) of the Act, the Board shall send the decision to the General 
Counsel and instruct the General Counsel to issue the license on terms 
deemed equitable by the Department and generally not less fair than 
those granted by the patentee or by the Department to similar licensees 
for comparable use.



Sec. 780.36  Conditions and issuance of license.

    (a) Upon receipt of the Board's decision and instruction to issue a 
patent license, the General Counsel shall issue a license which complies 
with the following:
    (1) The scope and durations of such use shall be limited to the 
purpose for which it was authorized;
    (2) Such use shall be non-exclusive;
    (3) Such use shall be non-assignable, except with that part of the 
enterprise or goodwill that enjoys such use;
    (4) Any such use shall be authorized predominantly for the supply of 
the U.S. market; and,
    (5) Authorization for such use shall be liable, subject to adequate 
protection of the legitimate interests of the persons so authorized, to 
be terminated if and when the circumstances that led to it cease to 
exist and are unlikely to recur.
    (b) The Board shall have the authority to review, on motivated 
request, the continued existence of these circumstances. The parties 
will propose and agree on a reasonable royalty fee

[[Page 337]]

within a reasonable time as determined by the General Counsel. A 
reasonable royalty shall provide adequate remuneration for the 
circumstances of each case, taking into account the economic value of 
the authorization. If a party does not agree with the terms and 
conditions of the license as determined by the General Counsel or if a 
royalty fee cannot be agreed upon within the reasonable time period 
established by the General Counsel, any party may, within 30 days after 
the expiration of such time period, initiate a proceeding before the 
Board, in accordance with subpart E of this part, for a reconsideration 
of the General Counsel's determination. After the proceeding under 
subpart E of this part is completed, the General Counsel shall modify 
the patent license in accordance with the Board's determination.
[58 FR 68734, Dec. 29, 1993]



  Subpart D--Application for a License Pursuant to Section 153c of the 
                        Atomic Energy Act of 1954



Sec. 780.40  Filing of application.

    An application to the Department, pursuant to section 153c of the 
Act, for the issuance of a license to use the invention or discovery 
covered by a patent useful in the production or utilization of special 
nuclear material or atomic energy shall be filed with the Board in 
accordance with requirements of Sec. 780.5.



Sec. 780.41  Contents of application.

    In addition to the information specified in Sec. 780.5, each 
application shall contain the following:
    (a) The applicant's contention, with supporting data, that the 
invention or discovery covered by the patent is of primary importance in 
the production or utilization of special nuclear material or atomic 
energy;
    (b) The applicant's contention, with supporting data, that the 
licensing of such invention or discovery is of primary importance to the 
conduct of the activities of the applicant, including information 
concerning:
    (1) The activities in the production or utilization of special 
nuclear material or atomic energy to which applicant proposes to apply 
the license;
    (2) The nature and purpose of the applicant's intended use of the 
patent license; and
    (3) The relationship of the invention or discovery to the activities 
to which it is to be applied, including an estimate of the effect of 
such activities stemming from the grant or denial of the license.
    (c) The applicant's contention, with supporting data, that the 
activities to which the patent license are proposed to be applied are of 
primary importance to the furtherance of policies and purposes of the 
Act;
    (d) The applicant's contention, with supporting data, that such 
applicant cannot otherwise obtain a patent license from the owner of the 
patent on terms which are reasonable for the applicant's intended use of 
the patent, including information concerning:
    (1) Efforts made by applicant to obtain a patent license from the 
owner of the patent; and
    (2) Terms, if any, on which the owner of the patent proposed to 
grant applicant a patent license.
    (e) The terms the applicant proposes as reasonable for the patent 
license; and
    (f) A copy of any license, permit, or lease obtained by the 
applicant under the procedures outlined in section 153(c) of the Act.



Sec. 780.42  Notice of hearing.

    Within thirty (30) days after the filing of the application, the 
Board will serve on all parties a notice of hearing to be held not later 
than sixty (60) days after the filing of the application.



Sec. 780.43  Response.

    Any party may file a response with the Board containing a concise 
statement of the facts or law or any other relevant information in 
opposition to or in support of the application which that party believes 
should be considered by the Board. Such response must be filed by a 
party within twenty (20) days after being served a copy of the 
application.

[[Page 338]]



Sec. 780.44  Hearing and decision.

    In accordance with section 153d of the Act, the Board shall hold a 
hearing and issue a final decision on the application.



Sec. 780.45  Criteria for decision to issue a license.

    A license shall issue to the applicant to use the invention covered 
by the patent for the purposes stated in the application upon a final 
decision that:
    (a) The invention or discovery covered by the patent is of primary 
importance in the production or utilization of special nuclear material 
or atomic energy;
    (b) The licensing of such invention or discovery is of primary 
importance to the conduct of the activities of the applicant;
    (c) The activities to which the patent license is proposed to be 
applied by such applicant are of primary importance to the furtherance 
of policies and purposes of the Act; and
    (d) The applicant has made efforts to obtain reasonable commercial 
terms and conditions and such efforts have not been successful within a 
reasonable period of time. The requirement to make such efforts may be 
waived by the Board in the case of a national emergency or other 
circumstances of extreme urgency or in cases of public non-commercial 
use. Where this requirement is waived due to national emergency or other 
circumstances of extreme urgency, the owner of the patent shall be 
notified as soon as reasonably practicable. Where this requirement is 
waived for a public non-commercial use, the owner of the patent shall be 
notified promptly.
[46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68734, Dec. 29, 1993]



Sec. 780.46  Communication of decision to General Counsel.

    When the Board decides to issue a patent license under section 153c 
of the Act, the Board shall send the decision to the General Counsel and 
instruct the General Counsel to issue the license on terms deemed 
equitable by the Department and generally not less fair than those 
granted by the patentee or by the Department to similar licensees for 
comparable use.



Sec. 780.47  Conditions and issuance of license.

    (a) Upon receipt of the Board's decision and instruction to issue a 
patent license, the General Counsel shall issue a license which complies 
with the following:
    (1) The scope and durations of such use shall be limited to the 
purpose for which it was authorized;
    (2) Such use shall be non-exclusive;
    (3) Such use shall be non-assignable, except with that part of the 
enterprise or goodwill that enjoys such use;
    (4) Any such use shall be authorized predominantly for the supply of 
the U.S. market; and,
    (5) Authorization for such use shall be liable, subject to adequate 
protection of the legitimate interests of the persons so authorized, to 
be terminated if and when the circumstances that led to it cease to 
exist and are unlikely to recur.
    (b) The Board shall have the authority to review, on motivated 
request, the continued existence of these circumstances. The parties 
will propose and agree on a reasonable royalty fee within a reasonable 
time as determined by the General Counsel. A reasonable royalty shall 
provide adequate remuneration for the circumstances of each case, taking 
into account the economic value of the authorization. If a party does 
not agree with the terms and conditions of the license as determined by 
the General Counsel or if a royalty fee cannot be agreed upon within the 
reasonable time period established by the General Counsel, any party 
may, within 30 days after the expiration of such time period, initiate a 
proceeding before the Board, in accordance with subpart E of this part, 
for a reconsideration of the General Counsel's determination. After the 
proceeding under subpart E of this part is completed, the General 
Counsel shall modify the patent license in accordance with the Board's 
determination.
[46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68734, Dec. 29, 1993]

[[Page 339]]



Subpart E--Application for Royalties and Awards Under Section 157 of the 
  Atomic Energy Act of 1954 and Compensation Under Section 173 of the 
 Atomic Energy Act of 1954 and the Invention Secrecy Act (35 U.S.C. 183)



Sec. 780.50  Applicants.

    (a) Any owner or licensee of a patent licensed under section 158 or 
subsections b or e of section 153 of the Act may file an application 
with the Board for the determination of a reasonable royalty fee.
    (b) Any owner or licensee of a patent licensed under subsections b 
or e of section 153 of the Act may file an application with the Board 
for the modification of any terms and conditions of the license.
    (c) Any person who has made an invention or discovery useful in the 
production or utilization of special nuclear material or atomic energy, 
has complied with the provisions of section 151c, but, under the Act, is 
not entitled to a royalty for such invention or discovery, may file an 
application for an award.
    (d) Any owner of a patent application that contains restricted data 
not belonging to the United States which the Department has communicated 
to any foreign nation may make application for just compensation 
pursuant to section 173 of the Act.
    (e) Any patent applicant, whose patent is withheld because of a 
secrecy order issued at the request of the Department may, beginning at 
the date the patent applicant is notified that, except for such order, 
the application is otherwise in condition for allowance, apply for 
compensation for the damage caused by the secrecy order and/or for the 
use of the invention by the Government, resulting from any disclosure to 
the Department required by the Invention Secrecy Act.



Sec. 780.51  Form and content.

    (a) Each application shall contain a statement of the applicant's 
interest in the patent, patent application, invention or discovery and 
identify any other claimants of whom the applicant has knowledge.
    (b) Each application must contain a concise statement of all of the 
essential facts upon which it is based. No particular form of statement 
is required, but it will facilitate consideration of the application if 
the following specific data accompany the application:
    (1) In the case of an issued patent, a copy of the patent.
    (2) In the case of a patent application, a copy of the application 
and of all Patent and Trademark Office actions and responses thereto.
    (3) In the case of an invention or discovery as to which a report 
has been filed with the Department pursuant to subsection c of section 
151 of the Act, a copy of such report.
    (4) In the case of an award, the date relied upon as the date of 
invention.
    (5) In all cases, a statement of the extent to which the invention 
or discovery was developed through federally financed research or with 
other Federal support.
    (6) In all cases, the degree of the utility, novelty, and importance 
of the invention or discovery.
    (7) In all cases, a statement of the actual use by the Federal 
Government or others of such invention or discovery, to the extent known 
to the applicant.
    (8) In all cases, the cost of developing the invention or discovery 
and acquiring the patent or patent application.
    (9) The royalty fee proposed, the proposed terms and conditions of a 
license agreement, or the amount sought as compensation or award, as 
well as the basis used in calculating such fee, compensation or award 
and whether a lump sum or periodic payments are sought.
    (10) In an application for just compensation pursuant to section 173 
of the Act, the ownership of the invention that is the subject matter of 
the patent application at the time the Department communicated the 
restricted data shall be set forth, and any restricted data contained in 
the application shall be specifically identified.
    (11) In an application for compensation under the authority provided 
in the Invention Secrecy Act (35 U.S.C.

[[Page 340]]

183), for the damage caused by imposition of a secrecy order on a patent 
application and/or for the use of the invention by the Government, the 
date of the secrecy order, the date of the notice that the patent 
application is in condition for allowance, and, if known to the 
applicant, the date of the first use of the invention by the Government.



Sec. 780.52  Notice and hearing.

    The Board shall, in its discretion, afford the applicable party an 
opportunity for a hearing for the presentation of relevant evidence. 
Thirty (30) days notice shall be given of the time and place of such 
hearing. After expiration of the notice period, the Board shall proceed 
with a hearing and render its decision.



Sec. 780.53  Criteria for decisions for royalties, awards and compensation.

    (a) In deciding a reasonable royalty fee for a patent licensed under 
section 158 or sections 153b or 153e of the Act, the Board shall 
consider:
    (1) The economic value of the compulsory license and the Board shall 
strive to provide adequate remuneration for the circumstances of each 
case.
    (2) Any defense, general or special, that a defendant could plead in 
an action for infringement;
    (3) The extent to which such patent was developed through federally 
financed research or with other Federal support;
    (4) The degree of utility, novelty, and importance of the invention 
or discovery; and
    (5) The cost to the owner of the patent of developing such invention 
or discovery or of acquiring such patent.
    (b) In deciding whether or not to grant an award, under section 157 
of the Act, for the making of an invention or discovery useful in the 
production or utilization of special nuclear material or atomic energy, 
the Board shall take into account the considerations set forth in 
Sec. 780.53(a) of this part and the actual use of such invention or 
discovery.
    (c) In deciding whether or not to provide compensation, pursuant to 
section 173 of the Act, to a person who owns a patent application that 
contains restricted data not belonging to the United States which the 
Department has communicated to a foreign nation, the Board shall take 
into account the considerations set forth in Sec. 780.53(b) of this part 
and the damage to the applicant resulting from such communication.
    (d) In the course of its review of an application to provide 
compensation, pursuant to 35 U.S.C. 183, to an applicant whose patent 
was withheld because of a secrecy order issued at the request of the 
Department, the Board shall take into account the considerations set 
forth in Sec. 780.53(b) of this part and:
    (1) The damage sustained by the applicant as a result of the secrecy 
order; and
    (2) The use of the invention by the Government resulting from the 
disclosure of such invention to the Department.
[46 FR 39581, Aug. 4, 1981, as amended at 58 FR 68735, Dec. 29, 1993]



PART 781--DOE PATENT LICENSING REGULATIONS--Table of Contents




                           General Provisions

Sec.
781.1  Scope.
781.2  Policy.
781.3  Definitions.
781.4  Communications.

             Types of Licenses and Conditions for Licensing

781.51  Nonexclusive licenses.
781.52  Exclusive and partially exclusive licenses.
781.53  Additional licenses.

                               Procedures

781.61  Publication of DOE inventions available for license.
781.62  Contents of a license application.
781.63  Published notices.
781.64  Termination.
781.65  Appeals.
781.66  Third-party termination proceedings.

                           Special Provisions

781.71  Litigation.
781.81  Transfer of custody.

    Authority: Dept. of Energy Organization Act, sec. 301, Pub. L. 95-91 
(42 U.S.C. 7301); Federal Nonnuclear Energy Research and Development Act 
of 1974, sec. 9(g), Pub. L.

[[Page 341]]

93-577 (42 U.S.C. 5908(g)); Atomic Energy Act of 1954, as amended, secs. 
156, 161g, Pub. L. 83-703 (42 U.S.C. 2186, 2201g); Presidential 
Statement, 36 FR 16887, Aug. 26, 1971.

    Source: 45 FR 73447, Nov. 4, 1980, unless otherwise noted.

                           General Provisions



Sec. 781.1  Scope.

    The regulations of this part establish the procedures, terms, and 
conditions upon which licenses may be granted in inventions covered by 
patents or patent applications, both domestic and foreign, vested in the 
United States of America, as represented by or in the custody of the 
Department of Energy.



Sec. 781.2  Policy.

    (a) The inventions covered by the patents and patent applications, 
both foreign and domestic, vested in the Government of the United States 
of America, as represented by or in the custody of the Department, 
normally will best serve the public interest when they are developed to 
the point of practical or commercial application and made available to 
the public in the shortest possible time. This may be accomplished by 
the granting of express nonexclusive, exclusive, or partially exclusive 
licenses for the practice of these inventions. However, it is recognized 
that there may be inventions as to which the Department deems dedication 
to the public by publication the preferable method of accomplishing 
these objectives.
    (b) Although DOE encourages the nonexclusive licensing of its 
inventions to promote competition and to achieve their widest possible 
utilization, the commercial development of certain inventions may 
require a substantial capital investment that private manufacturers may 
be unwilling to risk under a nonexclusive license. Thus, DOE may grant 
exclusive or partially exclusive licenses where the granting of such 
exclusive or partially exclusive licenses is consistent with 
Sec. 781.52.
    (c) Decisions as to grants or denials of any license application 
will, in the discretion of the Secretary, be based on the Department's 
view of what is in the best interests of the United States and the 
general public under the provisions of these regulations. Decisions of 
the Department under these regulations may be made on the Secretary's 
behalf by the General Counsel or the General Counsel's delegate, except 
where otherwise delegated to the Invention Licensing Appeal Board. When 
the Department determines that it is appropriate to grant a license, the 
license will be negotiated on terms and conditions most favorable to the 
interests of the United States and the general public.
    (d) No license shall be granted or implied under a DOE invention 
except as provided for in these regulations, in patent rights articles 
under Department procurement regulations (41 CFR part 9-9), in 
agreements between DOE and other Government bodies, or in any existing 
or future treaty or agreement between the United States and any foreign 
government or intergovernmental organization.
    (e) No grant of a license under this part shall be construed to 
confer upon any licensee any immunity from the antitrust laws or from 
liability for patent misuse, and the acquisition and use of rights 
pursuant to this part shall not be immunized from the operation of State 
or Federal law by reason of the source of the grant.



Sec. 781.3  Definitions.

    (a) Board means the Invention Licensing Appeal Board.
    (b) Department of Energy, Department, or DOE mean the Department of 
Energy, established by the Department of Energy Organization Act (Pub. 
L. 95-91; 42 U.S.C. 7101).
    (c) DOE invention means an invention covered by a U.S. or foreign 
patent or patent application that is vested in the Government of the 
United States, as represented by or in the custody of the Department or 
any of its predecessors, and which is designated by the Department as 
appropriate for the grant of an express nonexclusive, exclusive, or 
partially exclusive license.
    (d) Exclusive license means a license in which the licensee has the 
exclusive right under the patent for a part or the full term of the 
patent, subject only to the retention by the U.S. Government of a 
license and rights in the invention, as specified herein.

[[Page 342]]

    (e) Partially exclusive license means (1) an exclusive license where 
the exclusive right granted is limited to making or using or selling the 
invention, or is limited to specified fields of use or use in specified 
geographic locations; or (2) a license where the number of licenses 
under the particular invention is limited.
    (f) Person means any individual, partnership, corporation, 
association, or institution, or other entity.
    (g) Predecessor means the Energy Research and Development 
Administration, the Atomic Energy Commission, and any of the Government 
entities or parts thereof whose functions were transferred to the 
Department of Energy pursuant to title III of the Department of Energy 
Organization Act.
    (h) Responsible applicant means an applicant who, in the discretion 
of the Department, has the intention, plans, and ability expeditiously 
to bring the invention to the point of practical or commercial 
application.
    (i) Secretary means the Secretary of Energy or the delegate of the 
Secretary of Energy.
    (j) To the point of practical or commercial application means to 
manufacture in the case of composition or product, to practice in the 
case of a process, or to operate in the case of a machine, under such 
conditions as to establish that the invention is being worked and that 
its benefits are reasonably accessible to the public.
    (k) United States and the general public means the United States 
Government, United States citizens, and United States organizations.
    (l) United States Organization means any partnership, corporation, 
association, or institution where 75 percent or more of the voting 
interest is owned by United States citizens.



Sec. 781.4  Communications.

    All communications concerning the regulations in this part, 
including applications for licenses, should be addressed or delivered to 
the General Counsel, Attention: Assistant General Counsel for Patents, 
U.S. Department of Energy, Washington, DC 20545.

             Types of Licenses and Conditions for Licensing



Sec. 781.51  Nonexclusive licenses.

    (a) Availability of licenses. Except as provided in Sec. 781.52, DOE 
inventions will be made available for the grant of nonexclusive, 
revocable licenses to responsible applicants. However, when in the best 
interests of the United States and the general public, licenses may be 
restricted to manufacture in the United States. Factors which the 
Department will consider in so restricting a license include, but are 
not limited to, the following:
    (1) The nature of the invention;
    (2) The effect of the license upon the policies of the United States 
Government;
    (3) The effect of the license upon domestic and international 
commerce and competition;
    (4) The effect of the license upon the balance of payments of the 
United States; and
    (5) The effect of the license upon the overall posture of the United 
States in world markets.
    (b) Terms of grant. Nonexclusive licenses shall contain such terms 
and conditions as the Department may determine appropriate for the 
protection of the interests of the United States and the general public, 
including but not limited to the following:
    (1) The duration of the license will be negotiated and may be 
extended upon application therefor, provided the licensee complies with 
all the terms of the license and shows that substantial utilization has 
been, or within a reasonable time will be, achieved.
    (2) The license shall require the licensee to bring the invention to 
the point of practical or commercial application in the geographic area 
of the license, within a period of time specified in the license or such 
period as may be extended by the Department, upon request in writing to 
the General Counsel, for good cause shown. The license shall further 
require the licensee to continue to make the benefits of the invention 
reasonable accessible in the geographic area of the license.
    (3) The license may be granted for all or less than all fields of 
use of the invention and in any one or all of the

[[Page 343]]

countries, or any lesser geographic area thereof, in which the invention 
is covered by a patent or a patent application.
    (4) Reasonable royalties may be charged for nonexclusive licenses on 
DOE inventions. Factors to be considered in determining whether to 
charge royalties, or the amount thereof, include but are not limited to, 
the following:
    (i) The nature of the invention;
    (ii) Applicant's status as a small business, minority business, or 
business in an economically depressed, low-income or labor surplus area;
    (iii) The extent of U.S. Government contribution to the development 
of the invention;
    (iv) The degree of development of the invention;
    (v) The extent of effort necessary for the licensee to bring the 
invention to the point of practical or commercial application;
    (vi) The extent of effort necessary to create or penetrate the 
market for the invention;
    (vii) Whether the licensee is a U.S. citizen or U.S. organization; 
and
    (viii) Whether the invention is to be licensed in the U.S. or in a 
foreign country.
    (5) In the jurisdiction of the license, the license may extend to 
the licensee's subsidiaries and to affiliates within the corporate 
structure of which licensee is a part, if any. However, the license 
shall not be assignable or include the right to grant sublicenses 
without the approval of the Department in writing.
    (6) The licensee shall be required to submit written reports 
annually, and when specifically requested by the Department, on its 
efforts to bring the invention to a point of practical or commercial 
application and the extent to which the licensee continues to make the 
benefits of the invention reasonably accessible to the public. The 
reports shall contain information within the licensee's knowledge, or 
which the licensee may acquire under normal business practices, 
pertaining to the commercial use being made of the invention.
    (7) The Department may restrict the license to the fields of use or 
geographic areas in which the licensee has brought the invention to the 
point of practical or commercial application and continues to make the 
benefits of the invention reasonably accessible to the public.

(The information collection requirements contained in paragraph (b)(6) 
were approved by the Office of Management and Budget under control 
number 1902-0232)
[45 FR 73447, Nov. 4, 1980, as amended at 46 FR 63209, Dec. 31, 1981]



Sec. 781.52  Exclusive and partially exclusive licenses.

    (a) Availability of licenses. The Department may grant exclusive or 
partially exclusive licenses in any invention only if:
    (1) The invention has been published as available for licensing 
pursuant to Sec. 781.61 for a period of at least six (6) months;
    (2) It does not appear that the desired practical or commercial 
application has been or will be achieved on a nonexclusive basis, and 
that exclusive or partially exclusive licensing is a reasonable and 
necessary incentive to call forth the risk capital and expenses 
necessary to bring the invention to the point of practical or commercial 
application;
    (3) A sixty (60) day notice of a proposed exclusive or partially 
exclusive licensee has been provided, pursuant to Sec. 781.63(a), 
advising of an opportunity for a hearing; and
    (4) After termination of the sixty (60) day notice period, the 
Secretary has determined that:
    (i) The interests of the United States and the general public will 
best be served by the proposed license, in view of the license 
applicant's intention, plans, and ability to bring the invention to the 
point of practical or commercial application;
    (ii) The desired practical or commercial application has not been 
achieved, or is not likely expeditiously to be achieved, under any 
nonexclusive license which has been granted, or which may be granted, on 
the invention;
    (iii) Exclusive or partially exclusive licensing is a reasonable and 
necessary incentive to call forth the risk capital

[[Page 344]]

and expenses necessary to bring the invention to the point of practical 
or commercial application; and
    (iv) The proposed terms and scope of exclusivity are not 
substantially greater than necessary to provide the incentive for 
bringing the invention to the point of practical or commercial 
application and to permit the licensee to recoup its costs and a 
reasonable profit thereon;
    (5) Any determination pursuant to paragraph (a)(4) of this section 
regarding the practical or commercial application of an invention may be 
limited to the making, using or selling of an invention, a specific 
field of use, or a geographic location, provided that the grant of such 
license will not tend substantially to lessen competition or result in 
undue concentration in any section of the United States in any line of 
commerce to which the technology to be licensed relates.
    (b) Limited number of partially exclusive licenses. In appropriate 
circumstances, and only after compliance with the requirements of 
paragraph (a) of this section, the Department may offer a limited number 
of partially exclusive licenses under a particular invention, when 
limitation of the number of licenses is found to be in the public 
interest and consistent with the purpose of these regulations. Factors 
to be considered in a determination to offer a limited number of 
licenses under a particular invention include, but are not limited to, 
the following: (1) The nature of the invention; (2) the projected market 
size; (3) the need for limitation of licenses to attract risk capital; 
and (4) the need for limitation of licenses to achieve expeditious 
commercialization of the invention. When such a determination is made, a 
Notice of Intent to limit the number of licenses shall be published in 
the Federal Register, identifying the invention and advising that the 
Department will entertain no further applications for license under the 
subject invention unless, within 60 days of the publication of the 
notice, the General Counsel receives, in writing, responses in 
accordance with Sec. 781.63.
    (c) Selection of exclusive licensee or partially exclusive licensee 
among multiple applicants. When a determination is made by the 
Department that grant of an exclusive license or partially exclusive 
license under a particular invention is a reasonable and necessary 
incentive, in accordance with paragraphs (a) and (b) of this section, to 
call forth the risk capital and expenses required to bring the invention 
to the point of practical or commercial application, and there is more 
than one applicant in a particular jurisdiction seeking an exclusive 
license, and no applicant will accept either a nonexclusive or a 
partially exclusive license, the Department shall make a written 
determination selecting an exclusive licensee. Similarly, when a 
determination is made to grant a limited number of partially exclusive 
licenses under a particular invention and there are more applicants for 
such licenses than acceptable, the Department shall make a written 
determination selecting a limited number of partially exclusive 
licenses. Factors to be considered in making these determinations 
include, but are not limited to, the following:
    (1) The relative intentions, plans, and abilities of the applicants 
to further the technical and market development of the invention and to 
bring the invention to the point of practical or commercial application;
    (2) The projected impact on competition in the U.S.;
    (3) Projected market size;
    (4) The benefit to the U.S. Government, U.S. organizations, and the 
U.S. public;
    (5) Assistance to small business and minority business enterprises 
and economically depressed, low-income, and labor-surplus areas; and
    (6) Whether the applicant is a U.S. citizen or U.S. organization.
    (d) Terms of grant. Exclusive or partially exclusive licenses shall 
contain such terms and conditions as the Secretary may determine to be 
appropriate for the protection of the interests of the United States and 
the general public, including but not limited to the following:
    (1) The duration of the license will be negotiated, and the terms 
and scope of exclusivity shall not be substantially greater than 
necessary to provide the incentive for bringing the invention to the 
point of practical or commercial

[[Page 345]]

application and to permit the licensee to recoup its costs and a 
reasonable profit thereon. Extensions are permissible only through 
reapplication for an exclusive or partially exclusive license under 
procedures established in these regulations. The license shall be 
subject to any compulsory license provision required by law in a 
particular jurisdiction.
    (2) The license shall require the licensee to bring the invention to 
the point of practical or commercial application in the geographic area 
of the license, within a period of time specified in the license or such 
period as may be extended by the Department, upon request in writing to 
the General Counsel, for good cause shown. The license shall further 
require the licensee to continue to make the benefits of the invention 
reasonably accessible in the geographic area of the license. In 
specifying the period for bringing the invention to the point of 
practical or commercial application, the license shall specify the 
minimum sum to be expended by the licensee and/or other specific actions 
to be taken by it within the time periods indicated in the license.
    (3) The license may be granted for all or less than all fields of 
use of the invention and in any one or all of the countries, or any 
lesser geographic area thereof, in which the invention is covered by a 
patent or a patent application.
    (4) Reasonable royalties shall be charged by the Department unless 
the Department determines that charging of royalties would not be in the 
best interests of the United States and the general public.
    (5) In the jurisdiction of the license, the license may extend to 
the licensee's subsidiaries and to affiliates within the corporate 
structure of which the licensee is a part, if any. However, the license 
shall not be assignable or include the right to grant sublicenses 
without the approval of the Department in writing.
    (6) The licensee shall be required to submit written reports 
annually, and when specifically requested by the Department, on its 
efforts to bring the invention to the point of practical or commercial 
application and the extent to which the licensee continues to make the 
benefits of the invention reasonably accessible to the public. The 
reports shall contain information within the licensee's knowledge, or 
which the licensee may acquire under normal business practices, 
pertaining to the commercial use being made of the invention.
    (7) The license shall reserve at least an irrevocable, nonexclusive, 
paid-up license to make, use and sell the invention throughout the world 
by or on behalf of the United States (including any Government agency), 
the States, and domestic municipal governments, unless the Secretary 
determines that it would not be in the public interest to reserve such a 
license for the States and domestic municipal governments.
    (8) The license shall reserve in the United States the right to 
sublicense the licensed invention to any foreign government pursuant to 
any existing or future treaty or agreement, if the Secretary determines 
it would be in the national interest to acquire this right.
    (9) The license shall reserve in the Secretary the right to require 
the granting of a nonexclusive or partially exclusive sublicense to a 
responsible applicant or applicants, upon terms reasonable under the 
circumstances, (i) to the extent that the invention is required for 
public use by governmental regulations, (ii) as may be necessary to 
fulfill health, safety, or energy needs, or (iii) for such other 
purposes as may be stipulated in the license.
    (10) The license shall reserve in the Secretary the right to 
terminate such license, in whole or in part, subject to the notice and 
appeal provisions of Secs. 781.64 and 781.65, unless the licensee 
demonstrates to the satisfaction of the Secretary that he has taken 
effective steps, or within a reasonable time thereafter is expected to 
take such steps, necessary to accomplish substantial utilization of the 
invention.
    (11) The license shall reserve in the Secretary the right, 
commencing three years after the grant of the license, to terminate the 
license, in whole or in part, subject to the provisions of Sec. 781.66 
and following a publicly-noticed

[[Page 346]]

hearing, initiated pursuant to a petition by an interested person 
justifying such hearing--
    (i) If the Secretary determines, upon review of such material as he 
deems relevant and after the licensee or other interested person has had 
the opportunity to provide such relevant and material information as the 
Secretary may require, that such license has tended substantially to 
lessen competition or to result in undue concentration in any section of 
the United States in any line of commerce to which the technology 
relates; or
    (ii) If the licensee fails to demonstrate to the satisfaction of the 
Secretary at such hearing that he has taken effective steps, or within a 
reasonable time thereafter is expected to take such steps, necessary to 
accomplish substantial utilization of the invention.



Sec. 781.53  Additional licenses.

    Subject to any outstanding licenses, nothing in this part shall 
preclude the Department from granting additional nonexclusive, or 
exclusive, or partially exclusive licenses for inventions covered by 
this part when the Department determines that to do so would provide for 
an equitable exchange of patent rights. The following circumstances are 
examples in which such licenses may be granted:
    (a) In consideration of the settlement of interferences;
    (b) In consideration of a release of any claims;
    (c) In exchange for or as a part of the consideration for a license 
under adversely held patents; or
    (d) In consideration for the settlement or resolution of any 
proceeding under the Department of Energy Organization Act or other law.

                               Procedures



Sec. 781.61  Publication of DOE inventions available for license.

    (a) The Department will publish periodically in the Federal Register 
a list of the DOE inventions available for licensing under this part. In 
addition, a list of those DOE inventions that are protected in the 
United States will be published in the U.S. Patent and Trademark Office 
Official Gazette and in the National Technical Information Service 
(NTIS) publication ``Government Inventions for Licensing.''
    (b) Interested persons may obtain copies of such lists by contacting 
the General Counsel, Attention: Assistant General Counsel for Patents, 
U.S. Department of Energy, Washington, DC 20545. Copies of U.S. patents 
may be obtained from the U.S. Patent and Trademark Office, Washington, 
DC 20231. Copies of U.S. patent applications, specifications, or 
microfiche reproductions thereof may be secured at reasonable cost from 
the National Technical Information Service (NTIS), Springfield, Virginia 
22151.



Sec. 781.62  Contents of a license application.

    An application for a license under a DOE invention must be 
accompanied by a processing fee of $25 for each patent or patent 
application under which a license is desired, which shall be credited 
towards royalty if royalties are charged, and must include the following 
information:
    (a) Identification of the invention for which the license is 
desired, including the title of the invention and the patent application 
serial number or the patent number of the invention;
    (b) Name and address of the person applying for a license and 
whether the applicant is a U.S. citizen or U.S. organization;
    (c) Name and address of a representative of the applicant to whom 
correspondence should be sent and any notices served;
    (d) Nature and type of the applicant's business;
    (e) Applicant's status, if any, as a small business firm, minority 
business firm, or business firm located in a labor surplus area, low-
income area, or economically depressed area.
    (f) Identification of the source of the applicant's information 
concerning the availability of a license on the invention;
    (g) A statement of the field or fields of use in which the applicant 
intends to practice the invention;
    (h) A statement of the geographic area or areas in which the 
applicant

[[Page 347]]

proposes to practice the invention, including a statement of any foreign 
countries in which the applicant proposes to practice the invention;
    (i) A description of the applicant's technical and financial 
capability and plan for bringing the invention to a point of practical 
or commercial application, and the applicant's offer to implement that 
plan, if the license is granted.
    (j) The amount of royalty fees or other consideration, if any, that 
the applicant would be willing to pay the Government for the license;
    (k) Applicant's knowledge of the extent to which the invention is 
being practiced by private industry and the Government; and
    (l) In the case of an exclusive or partially exclusive license 
application, any facts which the applicant believes will show that it is 
in the public interest for the Department to grant such a license rather 
than a nonexclusive license and that such exclusive or partially 
exclusive license should be granted to the applicant.

(Approved by the Office of Management and Budget under control number 
1901-0232) *
---------------------------------------------------------------------------


    * Editorial Note: The section amended at 46 FR 63209, Dec. 31, 1981, 
appears as Sec. 781.52.
---------------------------------------------------------------------------

[45 FR 73447, Nov. 4, 1980, as amended at 46 FR 63209, Dec. 31, 1981]



Sec. 781.63  Published notices.

    (a) A notice of a proposed exclusive license or partially exclusive 
licenses shall be published in the Federal Register, and a copy of the 
notice shall be sent to the Attorney General. The notice shall include:
    (1) Identification of the invention;
    (2) Identification of the proposed exclusive licensee or partially 
exclusive licensees;
    (3) Duration and scope of the proposed license;
    (4) A statement that the license will be granted unless:
    (i) An application for a nonexclusive license, submitted by a 
responsible applicant pursuant to Sec. 781.62, is received by the 
Department within sixty (60) days from the publication of the notice in 
the Federal Register, and the Department determines that the applicant 
has established that it has already achieved, or is likely expeditiously 
to achieve, practical or commercial application under a nonexclusive 
license; or
    (ii) The Department determines, based upon evidence and argument 
submitted in writing by a third party, that it would not be in the 
interest of the United States and the general public to grant the 
exclusive or partially exclusive licenses; and
    (5) A statement advising that applicants or third parties 
participating in response to the Federal Register notice shall have the 
right to appeal any adverse decision, including the right to request an 
oral hearing, in accordance with Sec. 781.65.
    (b) In situations where the Department intends to limit the number 
of partially exclusive licenses under a particular invention pursuant to 
Sec. 781.52(b), the notice in paragraph (a) of this section will be 
modified to reflect that intent and to invite applicants to apply for 
such partially exclusive licenses by a date specified in the notice.
    (c) If an exclusive or partially exclusive license has been granted 
or, in whole or in part, terminated pursuant to this regulation, notice 
thereof shall be published in the Federal Register. Such notice shall 
include:
    (1) Identification of the invention;
    (2) Identification of the licensee; and
    (3) If a license grant, the duration and scope of the license; or
    (4) If a termination in whole or in part, the effective date of the 
termination and whether it is in whole or in part.



Sec. 781.64  Termination.

    (a) The Department may terminate, in whole or in part, a license:
    (1) For failure, within the time specified in the license, to take 
steps necessary to accomplish substantial utilization of the invention;
    (2) For failure of the licensee, upon bringing the invention to the 
point of practical or commercial application, to continue to make the 
benefits of the invention reasonably accessible to the public;
    (3) If an exclusive or partially exclusive license, for failure of 
the licensee to expend the minimum sum or to take

[[Page 348]]

any other action specified in the license agreement;
    (4) For failure of the licensee to make any payments or periodic 
reports required by the license;
    (5) For a false statement or omission of a material fact in the 
license application submitted pursuant to Sec. 781.62 or in any required 
report;
    (6) For failure to grant a nonexclusive or partially exclusive 
license when required by the Secretary in accordance with this 
regulation; or
    (7) For breach of any other term or condition on which the license 
was issued.
    (b) Before terminating, in whole or in part, any license granted 
pursuant to this part, the Department shall mail to the licensee and any 
sublicensee of record, at the last address filed with the Department, a 
written notice of the Department's intention to terminate, in whole or 
in part, the license, with reasons therefor, and the licensee and any 
sublicensee shall be allowed thirty (30) days from the date of the 
mailing of such notice, or within such further period as may be granted 
by the Department for good cause shown in writing, to remedy any breach 
of any term or condition referred to in the notice or to show cause why 
the license should not be terminated in whole or in part.
    (c) Termination shall be effective upon final written notice thereof 
to the licensee, after consideration of the response, if any, to the 
notice of intent to terminate, unless an appeal is taken in accordance 
with Sec. 781.65, in which case the effective date of the termination is 
stayed, pending a final administrative decision on the appeal.



Sec. 781.65  Appeals.

    (a) The following parties have the right to appeal under this part:
    (1) A person whose application for a license has been denied;
    (2) A licensee or sublicensee whose license has been terminated, in 
whole or in part, pursuant to Sec. 781.64; and
    (3) A third party who has participated under Sec. 781.63 of this 
regulation.
    (b) Appeal under paragraph (a) of this section shall be initiated by 
filing a Notice of Appeal with the Secretary, ATTN: Invention Licensing 
Appeal Board, with a copy to the General Counsel ATTN: Assistant General 
Counsel for Patents, within thirty (30) days from the date of receipt of 
a written notice by the Department. The Notice of Appeal shall specify 
the portion of the decision from which the appeal is taken. A statement 
of fact and argument in the form of a brief in support of the appeal 
shall be submitted with the notice of appeal or within thirty (30) days 
thereafter. Upon receipt of a Notice of Appeal, the General Counsel 
shall have thirty (30) days to transmit a copy of the administrative 
record of the decision to the Board with a copy to appellant. The 
General Counsel shall respond to appellant within 30 days from receipt 
of appellant's brief.
    (c) The appellant shall have the burden of proving by a 
preponderance of evidence, based upon the administrative record as 
supplemented by evidence and argument submitted by the parties to the 
appeal, that the decision appealed from should be reversed or modified.
    (d) The Board shall offer to the applicant, or to any other party 
who has participated under Sec. 781.63, an opportunity to join as a 
party to the appeal.
    (e) A hearing may be requested by any party to the appeal within a 
time period set by the Board.
    (f) Except as set forth in this part, all Board proceedings shall be 
conducted pursuant to the Rules of Practice of the Department of Energy 
Board of Contract Appeals, 10 CFR part 1023, modified as the Board may 
determine to be necessary or appropriate.
    (g) The decision of the Board shall constitute the final action of 
the Department on the matter.



Sec. 781.66  Third-party termination proceedings.

    (a) Any interested person may petition the Secretary to terminate, 
in whole or in part, an exclusive or partially exclusive license three 
years after such license was granted.

The petition shall be sent to the Secretary, ATTN: Invention Licensing 
Appeal Board, and shall be verified and accompanied by any supporting 
documents or affidavits that the petitioner believes demonstrates that 
either:

[[Page 349]]

    (1) The license has tended substantially to lessen competition or to 
result in undue concentration; or
    (2) The licensee has not taken effective steps, or within a 
reasonable time thereafter is not expected to take such steps, necessary 
to accomplish substantial utilization of the invention.
    (b) Upon receipt of such a petition, the Board shall forward a copy 
of the petition and supporting documents to the General Counsel, ATTN: 
Assistant General Counsel for Patents. The General Counsel shall then 
forward a copy of the petition and supporting documents to the licensee, 
who shall have thirty (30) days from receipt of the petition to submit a 
response thereto together with any supporting documents and affidavits. 
The General Counsel shall then make a preliminary review of the 
petition, response, and any supporting documents or affidavits to 
determine whether a hearing on the matter is justified. If the General 
Counsel finds that a hearing on the matter has been justified, he shall 
so advise the Board in writing.
    (c) If the General Counsel finds that a hearing has not been 
justified by petitioner, he shall so find in writing. The General 
Counsel shall promptly notify the Board and the petitioner of the 
finding. The petitioner may appeal this finding by filing a Notice of 
Appeal with the Board within thirty (30) days of the date of the mailing 
of the finding by the General Counsel. The Board shall review the 
finding concerning petitioner's justification for a hearing, and shall 
uphold the finding of the General Counsel unless petitioner can 
demonstrate that the finding was arbitrary, capricious, or an abuse of 
discretion. If the Board reverses the finding as to the justification 
for a hearing, the petition shall be heard by the Board in accordance 
with the procedures outlined in paragraph (d) of this section.
    (d) When it has been determined, in accordance with paragraph (b) of 
this section, that a hearing is justified, the Board shall so notify the 
petitioner and the licensee, and the Board shall publish a Notice in the 
Federal Register advising the public that a hearing is to be scheduled. 
The Notice shall describe the subject matter of the hearing and shall 
advise of the right of any interested person to file a petition with the 
Board, within thirty (30) days of the Notice, showing cause why he 
should be added as a party to the hearing. The Board shall, in its 
discretion, determine who should be added as a party.
    (e) Any party shall have the right to request a full evidentiary 
hearing on the matter. In lieu thereof, if the parties agree, the matter 
may be decided at an ``informal'' hearing in which no party has the 
right to call and cross-examine witnesses, but in which the parties have 
the right to present oral argument to the Board to supplement briefs, 
affidavits, and other documentary evidence that may have been submitted. 
Any hearing and related procedures shall be conducted pursuant to the 
Rules of Practice of the Department of Energy Board of Contract Appeals, 
10 CFR part 1023, modified as the Board may determine to be necessary or 
appropriate.
    (f) If petitioner alleges that the exclusive or partially exclusive 
license has tended substantially to lessen competition or to result in 
undue concentration in any section of the country in any line of 
commerce to which the technology relates, the petitioner shall have the 
burden to prove the allegation by a preponderance of evidence.
    (g) If petitioner alleges that licensee has failed to accomplish 
substantial utilization of the invention and has presented sufficent 
proof, in accordance with paragraph (b) of this section, to justify a 
hearing on the matter, the licensee shall have the burden to prove, by a 
preponderance of evidence, that he has taken effective steps, or within 
a reasonable time thereafter is expected to take such steps, necessary 
to accomplish substantial utilization of the invention.
    (h) The Board shall make findings of fact and render a conclusion of 
law with respect to the challenged license. The conclusion of the Board 
shall constitute the final action of the Department on the matter.

                           Special Provisions



Sec. 781.71  Litigation.

    (a) An exclusive or partially exclusive licensee may be granted the 
right

[[Page 350]]

to sue at his own expense any party who infringes the rights set forth 
in his license and covered by the licensed patent. Upon a determination 
that the Government is a necessary party, the licensee may join the 
Government of the United States, upon consent of the Attorney General, 
as a party complainant in such suit. The licensee shall pay costs and 
any final judgment or decree that may be rendered against the Government 
in such suit. The Government shall have the absolute right to intervene 
in any such suit at its own expense.
    (b) The licensee shall be obligated to furnish promptly to the 
Government, upon request, copies of all pleadings and other papers filed 
in any such suit and of evidence adduced in proceedings relating to the 
licensed patent, including but not limited to, negotiations, agreements 
settling claims by a licensee based on a licensed patent, and all other 
books, documents, papers and records pertaining to such suit. If, as a 
result of any such litigation, the patent shall be declared invalid, the 
licensee shall have the right to surrender his license and be relieved 
from any further obligation thereunder.



Sec. 781.81  Transfer of custody.

    The Department may enter into an agreement to transfer custody of 
any patent to another Government agency for purposes of administration, 
including the granting of licenses pursuant to this part.



PART 782--CLAIMS FOR PATENT AND COPYRIGHT INFRINGEMENT--Table of Contents




                           Subpart A--General

Sec.
782.1  Purpose.
782.2  Objectives.
782.3  Authority.

                 Subpart B--Requirements and Procedures

782.5  Contents of communication initiating claim.
782.6  Processing of administrative claims.
782.7  Incomplete notice of infringement.
782.8  Indirect notice of infringement.

    Authority: Dept. of Energy Organization Act; sec. 651, 91 Stat. 601, 
42 U.S.C. 7261; Atomic Energy Act of 1954; sec. 107(d), 88 Stat. 1241, 
42 U.S.C. 5817(d); sec. 161(g), 80 Stat. 443, 42 U.S.C. 2201(g); sec. 
172, 62 Stat. 933, 42 U.S.C. 2223; Foreign Assistance Act of 1961, sec. 
2356, 75 Stat. 440, 22 U.S.C. 2356; Patents, Invention Secrecy Act; sec. 
183, 66 Stat. 4, 35 U.S.C. 183; Judiciary and Judical Procedure Act, 
sec. 1498, 62 Stat. 601, 28 U.S.C. 1498.

    Source: 45 FR 26950, Apr. 22, 1980, unless otherwise noted.



                           Subpart A--General



Sec. 782.1  Purpose.

    The purpose of this regulation is to set forth policies and 
procedures for the filing and disposition of claims asserted against the 
Department of Energy of infringement of privately owned rights in 
patented inventions or copyrighted works.



Sec. 782.2  Objectives.

    Whenever a claim of infringement of privately owned rights in 
patented inventions or copyrighted works is asserted against the 
Department of Energy, all necessary steps shall be taken to investigate 
and to settle administratively, to deny, or otherwise to dispose of such 
claim prior to suit against the United States.



Sec. 782.3  Authority.

    The General Counsel or the General Counsel's delegate is authorized 
to investigate, settle, deny, or otherwise dispose of all claims of 
patent and copyright infringement pursuant to 42 U.S.C. 2201(g), 2223, 
5817(d) and 7261; the Foreign Assistance Act of 1961, 22 U.S.C. 2356 
(formerly the Mutual Security Acts of 1951 and 1954); the Invention 
Secrecy Act, 35 U.S.C. 183; and 28 U.S.C. 1498.



                 Subpart B--Requirements and Procedures



Sec. 782.5  Contents of communication initiating claim.

    (a) Requirements for claim. A patent or copyright infringement claim 
for compensation, asserted against the United States as represented by 
the Department of Energy under any of the applicable statutes cited in 
Sec. 782.3, must be actually communicated to and received by an agency, 
organization, office, or

[[Page 351]]

field establishment within the Department of Energy. Claims must be in 
writing and must include the following:
    (1) An allegation of infringement;
    (2) A request, either expressed or implied, for compensation;
    (3) A citation of the patents or copyrighted items alleged to be 
infringed;
    (4) In the case of a patent infringement claim, a sufficiently 
specific designation to permit identification of the items or processes 
alleged to infringe the patents, giving the commercial designation if 
known to the claimant, or, in the case of a copyright infringement 
claim, the acts alleged to infringe the copyright;
    (5) In the case of a patent infringement claim, a designation of at 
least one claim of each patent alleged to be infringed or, in the case 
of a copyright infringement claim, a copy of each work alleged to be 
infringed;
    (6) As an alternative to paragraphs (a) (4) and (5) of this section, 
certification that the claimant has made a bona fide attempt to 
determine the items or processes which are alleged to infringe the 
patents, or the acts alleged to infringe the copyrights, but was unable 
to do so, giving reasons, and stating a reasonable basis for the 
claimant's belief that the patents or copyrighted items are being 
infringed.
    (b) Additional information for patent infringement claims. In 
addition to the information listed in paragraph (a) of this section the 
following material and information generally is necessary in the course 
of processing a claim of patent infringement. Claimants are encouraged 
to furnish this information at the time of filing a claim to permit 
rapid processing and resolution of the claim.
    (1) A copy of the asserted patents and identification of all claims 
of the patents alleged to be infringed.
    (2) Identification of all procurements known to claimant that 
involve the accused items or processes, including the identity of the 
vendors or contractors and the Government acquisition activity or 
activities.
    (3) A detailed identification and description of the accused 
articles or processes, particularly where the articles or processes 
relate to components or subcomponents of the item acquired, and an 
element-by-element comparison of representative claims with the accused 
articles or processes. If available, the identification and description 
should include documentation and drawings to illustrate the accused 
articles or processes in sufficient detail to enable verification that 
the claims of the asserted patents read on the accused articles or 
processes.
    (4) Names and addresses of all past and present licensees under the 
patents and copies of all license agreements and releases involving the 
patents.
    (5) A brief description of all litigation in which the patents have 
been or are now involved, and their present status.
    (6) A list of all persons to whom notices of infringement have been 
sent, including all departments and agencies of the Government, and a 
statement of the status or ultimate disposition of each.
    (7) A description of Government employment or military service, if 
any, by the inventors or patent owner.
    (8) A list of all contracts between the Government and inventors, 
patent owner, or anyone in privity with them that were in effect at the 
time of conception or actual reduction to practice of the inventions 
covered by the patents.
    (9) Evidence of title to the asserted patents or other right to make 
the claim.
    (10) If it is available to claimant, a copy of the Patent Office 
file of each patent.
    (11) Pertinent prior art of which the claimant has become aware 
after issuance of the asserted patents.
    In addition to the foregoing, if claimant can provide a statement 
that the investigation may be limited to the specifically identified 
accused articles or processes, or to a specific acquisition (e.g. 
identified contracts), it may speed disposition of the claim.
    (c) Denial for refusal to provide information. In the course of 
investigating a claim, it may become necessary for the Department of 
Energy to request information in the control and custody of claimant 
that is relevant to the disposition of the claim. Failure of the 
claimant to respond to a request for

[[Page 352]]

such information may be sufficient reason alone for denying a claim.



Sec. 782.6  Processing of administrative claims.

    (a) Filing and forwarding of claims. All communications regarding 
claims should be addressed to:

General Counsel, ATTN: Assistant General Counsel for Patents, Office of 
the General Counsel, U.S. Department of Energy, Washington, DC 20545.


If any communication relating to a claim or possible claim of patent or 
copyright infringement is received by an agency, organization, office, 
or field establishment within the Department of Energy, it should be 
forwarded to the Assistant General Counsel for Patents.
    (b) Disposition and notification. The General Counsel shall 
investigate and administratively settle, deny, or otherwise dispose of 
each claim by denial or settlement. When a claim is denied, the 
Department shall so notify the claimant or his authorized representative 
and provide the claimant with the reasons for denying the claim. 
Disclosure of information shall be subject to applicable statutes, 
regulations, and directives pertaining to security, access to official 
records, and the rights of others.



Sec. 782.7  Incomplete notice of infringement.

    (a) If a communication alleging patent or copyright infringement is 
received that does not meet the requirements set forth above in 
Sec. 782.5, the sender shall be advised in writing by the General 
Counsel:
    (1) That the claim for infringement has not been satisfactorily 
presented; and
    (2) Of the elements considered necessary to establish a claim.
    (b) A communication, such as a mere offer of a license, in which an 
infringement is not alleged in accordance with Sec. 782.5(a) of this 
part shall not be considered a claim for infringement.



Sec. 782.8  Indirect notice of infringement.

    If a patent or copyright owner communicates an allegation of 
infringement in the performance of a Government contract, grant, or 
other arrangement to addressees other than those specified in 
Sec. 782.5(a), such as Department of Energy contractors including 
contractors operating government-owned facilities, the communication 
shall not be considered a claim within the meaning of Sec. 782.5 until 
it meets the requirements of that section.



PART 783--WAIVER OF PATENT RIGHTS--Table of Contents




Sec.
783.1  Waiver.
783.2  Limitations.

    Authority: Secs. 152, 161, 68 Stat. 944, 948, as amended; (42 U.S.C. 
2182, 2201).

    Source: 41 FR 56784, Dec. 30, 1976, unless otherwise noted.



Sec. 783.1  Waiver.

    The Department of Energy, hereinafter ``DOE'', waives its rights 
under section 152 of the Atomic Energy Act of 1954 (66 Stat. 944) with 
respect to inventions and discoveries resulting from the use of the 
following materials and services:
    (a) Source materials, special nuclear materials, and heavy water 
distributed by DOE in accordance with the ``Schedules of Base Charges 
for Materials Sold of Leased by DOE for Use in Private Atomic Energy 
Development and Base Prices Which DOE Will Pay for Certain Products From 
Private Reactors.''
    (b) Radioactive and stable isotopes, irradiation services (this 
waiver does not include inventions or discoveries made by DOE or DOE 
contractor personnel in the course of or in connection with the 
performance of an irradiation service), and radioactive material 
resulting from the performance of an irradiation service sold or 
distributed by DOE in accordance with the prices and charges established 
by:
    (1) Oak Ridge National Laboratory Inventory and Price List of 
electromagnetically enriched and other stable isotopes.
    (2) Oak Ridge National Laboratory Catalog and Price List of 
radioisotopes, special materials, and services.
    (3) Idaho National Engineering Laboratory Catalog of Price and 
charges on irradiation services at the materials

[[Page 353]]

testing reactor. The waiver does include inventions or discoveries made 
by sponsor personnel in the course of their use of the Gamma Irradiation 
Facility at the Idaho National Engineering Laboratory.
    (4) Argonne National Laboratory schedule of charges for irradiation 
services at its irradiation facilities.
    (5) Brookhaven National Laboratory schedule of prices and charges 
for irradiation services and radioisotopes.



Sec. 783.2  Limitations.

    (a) Except with regard to the use of the Gamma facility at the Idaho 
National Engineering Laboratory, nothing contained in this part shall be 
deemed to waive any rights in inventions or discoveries where a person 
or a group of persons acting on behalf of the person requesting the 
irradiation service works at the DOE facility in connection with the 
irradiation service. In such event, special arrangements are made.
    (b) Nothing contained in this part shall be construed to affect the 
provisions of any written agreement to which DOE has or may become a 
party.



PART 784--PATENT WAIVER REGULATION--Table of Contents




Sec.
784.1   Scope and applicability.
784.2   Definitions.
784.3   Policy.
784.4   Advance waiver.
784.5   Waiver of identified inventions.
784.6   National security considerations for waiver of certain sensitive 
          inventions.
784.7   Class waiver.
784.8   Procedures.
784.9   Content of waiver requests.
784.10  Record of waiver determinations.
784.11  Bases for granting waivers.
784.12  Terms and conditions of waivers.
784.13  Effective dates.

    Authority: 42 U.S.C. 7151; 42 U.S.C. 5908; 42 U.S.C. 2182; 35 U.S.C. 
202 and 210; 42 U.S.C. 7261a.

    Source: 61 FR 36614, July 12, 1996, unless otherwise noted.



Sec. 784.1  Scope and applicability.

    (a) This part states the policy and establishes the procedures, 
terms and conditions governing waiver of the Government's rights in 
inventions made under contracts, grants, agreements, understandings or 
other arrangements with the Department of Energy (DOE).
    (b) This part applies to all inventions conceived or first actually 
reduced to practice in the course of or under any contract, grant, 
agreement, understanding, or other arrangement with or for the benefit 
of DOE (including any subcontract, subgrant, or subagreement), the 
patent rights disposition of which is governed by section 152 of the 
Atomic Energy Act of 1954, 42 U.S.C. 2182, or section 9 of the Federal 
Nonnuclear Energy Research and Development Act of 1974, 42 U.S.C. 5908. 
In funding agreements with nonprofit organizations or small business 
firms, when title or other rights are reserved to the Government under 
the authority of 35 U.S.C. 202(a), this part will apply to any waiver of 
such rights. The patent waiver provisions in this part supersede the 
patent waiver regulations previously included with patent regulations at 
41 CFR part 9-9.100.



Sec. 784.2  Definitions.

    As used in this part:
    Contract means procurement contracts, grants, agreements, 
understandings and other arrangements (including Cooperative Research 
and Development Agreements [CRADAs], Work for Others and User Facility 
agreements, which includes research, development, or demonstration work, 
and includes any assignment or substitution of the parties, entered 
into, with, or for the benefit of DOE.
    Contractor means entities performing under contracts as defined 
above.
    Patent Counsel means the DOE Patent Counsel assisting the 
contracting activity.



Sec. 784.3  Policy.

    (a) Section 6 of Public Law 96-517 (the Bayh-Dole patent and 
trademark amendments of 1980), as amended, as codified at 35 U.S.C. 
200--212, provides that title to inventions conceived or first actually 
reduced to practice in the course of or under any contract, grant, 
agreement, understanding, or other arrangement entered into with or for 
the benefit of the Department of Energy

[[Page 354]]

(DOE) vests in the United States, except where 35 U.S.C. 202 provides 
otherwise for nonprofit organizations or small business firms. However, 
where title to such inventions vests in the United States, the Secretary 
of Energy (hereinafter Secretary) or designee may waive all or any part 
of the rights of the United States, subject to required terms and 
conditions, with respect to any invention or class of inventions made or 
which may be made by any person or class of persons in the course of or 
under any contract of DOE if it is determined that the interests of the 
United States and the general public will best be served by such waiver. 
In making such determinations, the Secretary or designee shall have the 
following objectives:
    (1) Making the benefits of the energy research, development, and 
demonstration program widely available to the public in the shortest 
practicable time;
    (2) Promoting the commercial utilization of such inventions;
    (3) Encouraging participation by private persons in DOE's energy 
research, development, and demonstration programs; and
    (4) Fostering competition and preventing undue market concentration 
or the creation or maintenance of other situations inconsistent with the 
antitrust laws.
    (b) If it is not possible to attain the objectives in paragraphs 
(a)(1) through (4) immediately and simultaneously for any specific 
waiver determination, the Secretary or designee will seek to reconcile 
these objectives in light of the overall purposes of the DOE patent 
waiver policy, as set forth in section 152 of the Atomic Energy Act of 
1954, 42 U.S.C. 2182, section 9 of the Federal Nonnuclear Energy 
Research and Development Act of 1974, 42 U.S.C. 5908, Public Law 99-661, 
42 U.S.C. 7261a, and, where not inconsistent therewith, the Presidential 
Memorandum to the Heads of Executive Departments and Agencies on 
Government Patent Policy issued February 18, 1983 and Executive Order 
No. 12591 issued April 10, 1987.
    (c) The policy set forth in this section is applicable to all types 
of contracts as defined in Sec. 784.2 of this part.



Sec. 784.4  Advance waiver.

    This section covers inventions that may be conceived or first 
actually reduced to practice in the course of or under a particular 
contract. In determining whether an advance waiver will best serve the 
interests of the United States and the general public, the Secretary or 
designee (currently the Assistant General Counsel for Technology 
Transfer and Intellectual Property) shall, at a minimum, specifically 
include as considerations the following:
    (a) The extent to which the participation of the contractor will 
expedite the attainment of the purposes of the program;
    (b) The extent to which a waiver of all or any part of such rights 
in any or all fields of technology is needed to secure the participation 
of the particular contractor;
    (c) The extent to which the work to be performed under the contract 
is useful in the production or utilization of special nuclear material 
or atomic energy;
    (d) The extent to which the contractor's commercial position may 
expedite utilization of the research, development, and demonstration 
results;
    (e) The extent to which the Government has contributed to the field 
of technology to be funded under the contract;
    (f) The purpose and nature of the contract, including the intended 
use of the results developed thereunder;
    (g) The extent to which the contractor has made or will make 
substantial investment of financial resources or technology developed at 
the contractor's private expense which will directly benefit the work to 
be performed under the contract;
    (h) The extent to which the field of technology to be funded under 
the contract has been developed at the contractor's private expense;
    (i) The extent to which the Government intends to further develop to 
the point of commercial utilization the results of the contract effort;
    (j) The extent to which the contract objectives are concerned with 
the public health, public safety, or public welfare;

[[Page 355]]

    (k) The likely effect of the waiver on competition and market 
concentration;
    (l) In the case of a domestic nonprofit educational institution 
under an agreement not governed by Chapter 18 of Title 35, United States 
Code, the extent to which such institution has a technology transfer 
capability and program approved by the Secretary or designee as being 
consistent with the applicable policies of this section;
    (m) The small business status of the contractor under an agreement 
not governed by Chapter 18 of Title 35, United States Code, and
    (n) Such other considerations, such as benefit to the U.S. economy, 
that the Secretary or designee may deem appropriate.



Sec. 784.5  Waiver of identified inventions.

    This section covers the relinquishing by the Government to the 
contractor or inventor of title rights in a particular identified 
subject invention. In determining whether such a waiver of an identified 
invention will best serve the interests of the United States and the 
general public, the Secretary or designee shall, at a minimum, 
specifically include as considerations the following:
    (a) The extent to which such waiver is a reasonable and necessary 
incentive to call forth private risk capital for the development and 
commercialization of the invention;
    (b) The extent to which the plans, intentions, and ability of the 
contractor or inventor will obtain expeditious commercialization of such 
invention;
    (c) The extent to which the invention is useful in the production or 
utilization of special nuclear material or atomic energy;
    (d) The extent to which the Government has contributed to the field 
of technology of the invention;
    (e) The purpose and nature of the invention, including the 
anticipated use thereof;
    (f) The extent to which the contractor has made or will make 
substantial investment of financial resources or technology developed at 
the contractor's private expense which will directly benefit the 
commercialization of the invention;
    (g) The extent to which the field of technology of the invention has 
been developed at the contractor's expense;
    (h) The extent to which the Government intends to further develop 
the invention to the point of commercial utilization;
    (i) The extent to which the invention is concerned with the public 
health, public safety, or public welfare;
    (j) The likely effect of the waiver on competition and market 
concentration;
    (k) In the case of a domestic nonprofit educational institution 
under an agreement not governed by Chapter 18, Title 35, United States 
Code, the extent to which such institution has a technology transfer 
capability and program approved by the Secretary or designee as being 
consistent with the applicable policies of this section;
    (l) The small business status of the contractor, under an agreement 
not governed by Chapter 18 of Title 35, United States Code; and,
    (m) Such other considerations, such as benefit to the U.S. economy 
that the Secretary or designee may deem appropriate.



Sec. 784.6  National security considerations for waiver of certain sensitive inventions.

    (a) Whenever, in the course of or under any Government contract or 
subcontract of the Naval Nuclear Propulsion Program or the nuclear 
weapons programs or other atomic energy defense activities of the 
Department of Energy, a contractor makes an invention or discovery to 
which title vests in the Department of Energy pursuant to statute, the 
contractor may request waiver of any or all of the Government's property 
rights. The Secretary of Energy or designee may decide to waive the 
Government's rights.
    (b) In making a decision under this section, the Secretary or 
designee shall consider, in addition to the objectives of DOE waiver 
policy as specified in Sec. 784.3(a)(1) through (4), and the 
considerations specified in Sec. 784.4 for advance waivers, and 
Sec. 784.5 for waiver of identified inventions, the following:
    (1) Whether national security will be compromised;

[[Page 356]]

    (2) Whether sensitive technical information (whether classified or 
unclassified) under the Naval Nuclear Propulsion Program or the nuclear 
weapons programs or other atomic energy defense activities of the 
Department of Energy for which dissemination is controlled under Federal 
statutes and regulations will be released to unauthorized persons;
    (3) Whether an organizational conflict of interest contemplated by 
Federal statutes and regulations will result, and
    (4) Whether waiving such rights will adversely affect the operation 
of the Naval Nuclear Propulsion Program or the nuclear weapons programs 
or other atomic energy defense activities of the Department of Energy.
    (c) A decision under this Sec. 784.6 shall be made within 150 days 
after the date on which a complete request for waiver, as described by 
paragraph (d) of this section, has been submitted to the Patent Counsel 
by the contractor.
    (d) In addition to the requirements for content which apply 
generally to all waiver requests under paragraph (a) of this section, a 
requestor must include a full and detailed statement of facts, to the 
extent known by or available to the requestor, directed to the 
considerations set forth in paragraphs (b)(1) through (4) of this 
section, as applicable. To be considered complete, a waiver request must 
contain sufficient information, in addition to the content requirements 
under paragraphs (a) and (b) of this section, to allow the Secretary or 
designee to make a decision under this section. For advance waiver 
requests, such information shall include, at a minimum:
    (1) An identification of all of the requestor's contractual 
arrangements involving the Government (including contracts, 
subcontracts, grants, or other arrangements) in which the technology 
involved in the contract was developed or used and any other funding of 
the technology by the Government, whether direct or indirect, involving 
any other party, of which the requestor is aware;
    (2) A description of the requestor's past, current, and future 
private investment in and development of the technology which is the 
subject of the contract. This includes expenditures not reimbursed by 
the Government on research and development which will directly benefit 
the work to be performed under the instant contract, the amount and 
percentage of contract costs to be shared by the requestor, the out-of-
pocket costs of facilities or equipment to be made available by the 
requestor for performance of the contract work which are not charged 
directly or indirectly to the Government under contract, and the 
contractor's plans and intentions to further develop and commercialize 
the technology at private expense;
    (3) A description of competitive technologies or other factors which 
would ameliorate any anticompetitive effect of granting the waiver.
    (4) Identification of whether the contract pertains to work that is 
classified, or sensitive, i.e., unclassified but controlled pursuant to 
section 148 of the Atomic Energy Action of 1954, as amended (42 U.S.C. 
2168), or subject to export control under Chapter 17 of the Military 
Critical Technology List (MCTL) contained in Department of Defense 
Directive 5230.25 including identification of all principal uses of the 
subject matter of the contract, whether inside or outside the contractor 
program, and an indication of whether any such uses involve classified 
or sensitive technologies.
    (5) Identification of all DOE and DOD programs and projects in the 
same general technology as the contract for which the requestor intends 
to be providing program planning advice or has provided program planning 
advice within the last three years.
    (e) For identified invention requests under this section, such 
requests shall include at a minimum:
    (1) A brief description of the intentions of the requestor (or its 
present or intended licensee) to commercialize the invention. This 
description should include:
    (i) Estimated expenditures,
    (ii) Anticipated steps,
    (iii) The associated time periods to bring the invention to 
commercialization, and
    (iv) A statement that requestor (or its present or intended 
licensee) has

[[Page 357]]

the capability to carry out its stated intentions.
    (2) A description of any continuing Government funding of the 
development of the invention (including investigation of materials or 
processes for use therewith), from whatever Government source, whether 
direct or indirect, and, to the extent known by the requestor, any 
anticipated future Government funding to further develop the invention.
    (3) A description of competitive technologies or other factors which 
would ameliorate any anticompetitive effects of granting the waiver.
    (4) A statement as to whether or not the requestor would be willing 
to reimburse the Department of Energy for any and all costs and fees 
incurred by the Department in the preparation and prosecution of the 
patent applications covering the invention that is the subject of the 
waiver request.
    (5) Where applicable, a statement of reasons why the request was not 
timely filed in accordance with the applicable patent rights clause of 
the contract, or why a request for an extension of time to file the 
request was not filed in a timely manner.
    (6) Identification of whether the invention pertains to work that is 
classified, or sensitive, i.e., unclassified but controlled pursuant to 
section 148 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 
2168), or subject to export control under Chapter 17 of the Military 
Critical Technology List (MCTL) contained in Department of Defense 
Directive 5230.25, including identification of all principal uses of the 
invention inside or outside the contractor program, and an indication of 
whether any such uses involve classified or sensitive technologies.
    (7) Identification of all DOE and DOD programs and projects in the 
same general technology as the invention for which the requestor intends 
to be providing program planning advice or has provided program planning 
advice within the last three years.
    (8) A statement of whether a classification review of the invention 
disclosure, any resulting patent application(s), and/or any reports and 
other documents disclosing a substantial portion of the invention, has 
been made, together with any determinations on the existence of 
classified or sensitive information in either the invention disclosure, 
the patent application(s), or reports or other documents disclosing a 
substantial portion of the invention; and
    (9) Identification of any and all proposals, work for other 
activities, or other arrangements submitted by the requestor, DOE, or a 
third party, of which requestor is aware, which may involve further 
funding of the work on the invention at either the contractor facility 
where the invention arose or another facility owned by the Government.
    (f) Patent Counsel will notify the requestor promptly if the waiver 
request is found not to be a complete request and, in that event, will 
provide the requestor with a reasonable period, not to exceed 60 days, 
to correct any such incompleteness. If requestor does not respond within 
the allotted time period, the waiver request will be considered to be 
withdrawn. If requestor responds within the allotted time period, but 
the submittal is still deemed incomplete or insufficient, the waiver 
request may be denied.
    (g) As set forth in paragraph (c) of this section, waiver decisions 
shall be made within 150 days after the date on which a complete request 
for waiver of such rights, as specified in this section, has been 
submitted by the requestor to the DOE Patent Counsel. If the original 
waiver request does not result in a communication from DOE Patent 
Counsel indicating that the request is incomplete, the 150-day period 
for decision commences on the date of receipt of the waiver request. If 
the original waiver request results in a communication from DOE Patent 
Counsel indicating that the request is incomplete, the 150-day period 
for decision commences on the date on which supplementary information is 
received by Patent Counsel sufficient to make the waiver request 
complete. For advance waiver requests, if requestor is not notified that 
the request is incomplete, the 150-day period for decision commences on 
the date of receipt of the request, or on the date on which negotiation 
of contract terms is completed, whichever is later.

[[Page 358]]

    (h) Failure of DOE to make a patent waiver decision within the 
prescribed 150-day period shall in no way be construed as a grant of the 
waiver.



Sec. 784.7  Class waiver.

    This section covers relinquishing of patent title rights by the 
Government to a class of persons or to a class of inventions. The 
authorization for class waivers is to be found at 42 U.S.C. 5908(c). 
Class waivers may be appropriate in situations where all members of a 
particular class would likely qualify for an advance or identified 
invention waiver. Normally, class waivers are originated by the 
Department. However, any person with a direct and substantial interest 
in a DOE program may request a class waiver by forwarding a written 
request therefor to the Patent Counsel. While no particular format for 
requesting a class waiver is prescribed, any request for a class waiver 
and any resulting determination by the Secretary or designee must 
address the pertinent objectives and considerations set forth in 
Secs. 784.3(a), 784.4, 784.5, and 784.6.



Sec. 784.8  Procedures.

    (a) All requests for waivers shall be in writing. Each request for a 
waiver other than a class waiver shall include the information set forth 
in Sec. 784.9. Such requests may be submitted by existing or prospective 
contractors in the case of requests for an advance waiver and by 
contractors, including successor contractors at a facility, or employee-
inventors in the case of requests for waiver of identified inventions.
    (b) A request for an advance waiver should be submitted to the 
Contracting Officer (subcontractors may submit through their prime 
contractors) at any time prior to execution of the contract or 
subcontract, or within thirty days thereafter, or within such longer 
period as may be authorized by Patent Counsel for good cause shown in 
writing. If the purpose, scope, or cost of the contract is substantially 
altered by modification or extension after the waiver is granted, a new 
waiver request will be required. When advance waivers are granted, the 
provisions of the ``Patent Rights--Waiver'' clause set forth in 
Sec. 784.12 shall be used in contracts which are the subject of the 
waivers, unless modified with the approval of the Patent Counsel to 
conform to the scope of the waiver granted. (See Sec. 784.12.) Advance 
waivers may be requested for all inventions which may be conceived or 
first actually reduced to practice under a DOE contract. An advance 
waiver may also be requested for an identified invention conceived by 
the contractor before the contract but which may be first actually 
reduced to practice under the contract. Such waiver request must include 
a copy of any patent or patent application covering the identified 
invention, or if no patent application has been filed, a complete 
description of the invention.
    (c) A request for waiver (other than an advance or class waiver) for 
an identified invention must be submitted to the Patent Counsel at the 
time the invention is to be reported to DOE or not later than eight 
months after conception and/or first actual reduction to practice, 
whichever occurs first in the course of or under the contract, or such 
longer period as may be authorized by Patent Counsel for good cause 
shown in writing by the requestor. The time for submitting a waiver 
request will not normally be extended past the time the invention has 
been advertised for licensing by DOE. If the Government has already 
filed a patent application on the invention, the requestor should 
indicate whether or not it is willing to reimburse the Government for 
the costs of searching, prosecution, filing and maintenance fees, in the 
event the waiver is granted.
    (d) If the request for waiver contains insufficient information, the 
Patent Counsel may seek additional information from the requestor and 
from other sources. The Patent Counsel will thoroughly analyze the 
request in view of each of the objectives and considerations and shall 
also consider the overall rights obtained by the Government in the 
patent, copyright, and data clauses of the contract. Where it appears 
that a waiver of a lesser part of the rights of the United States than 
requested would be more appropriate in view of the policies set forth, 
the Patent Counsel should attempt to negotiate a compromise acceptable 
to both the requestor and DOE. If approval of a

[[Page 359]]

waiver is recommended, Patent Counsel shall obtain an indication of 
agreement by the requestor to the proposed waiver scope, terms and 
conditions.
    (e) The Patent Counsel will prepare a Statement of Considerations 
setting forth the rationale for either approving or denying the waiver 
request and will forward the Statement to the General Counsel or 
designee for review thereof. While the Statement need not provide 
specific findings as to each and every consideration of Sec. 784.4 or 
Sec. 784.5 of this part, it will cover those that are decisive, and it 
will explain the basis for the recommended determination. There may be 
occasions when the application of the various individual considerations 
of Sec. 784.4 or Sec. 784.5 of this part to a particular case could 
conflict, and in those instances the conflict will be reconciled giving 
due regard to the overall policies set forth in 784.3(a) (1) through 
(4).
    (f) The Patent Counsel will also obtain comments from the 
appropriate DOE program organization to assist the Patent Counsel in the 
waiver determination. Additionally, if any other Federal Government 
entity has provided funding or will be providing funding, or if a 
subject invention has been made in whole or in part by an employee of 
that entity, Patent Counsel shall obtain permission to waive title to 
the undivided interest in the invention from the cognizant official of 
that entity. In situations where time does not permit a delay in 
contract negotiations for the preparation and mailing of a full written 
statement, field Patent Counsel may submit a recommendation on the 
waiver orally to the Assistant General Counsel for Technology Transfer 
and Intellectual Property, who upon verbal consultation with the 
appropriate DOE program organization, shall provide a verbal decision to 
field Patent Counsel. All oral actions shall be promptly confirmed in 
writing. In approving waiver determinations, the Secretary or designee 
shall objectively review all requests for waiver in view of the 
objectives and considerations set forth in Secs. 784.3 through 784.6. If 
the determination and the rationale therefor is not accurately reflected 
in the Statement of Considerations which has been submitted for 
approval, a new Statement of Considerations shall be prepared.
    (g) In the event that a request for advance waiver is approved after 
the effective date of the contract, the Patent Counsel shall promptly 
notify the requestor by letter of the determination and the basis 
therefor. The letter shall state the scope, terms and conditions of such 
waiver. If the terms and conditions of an approved advance waiver were 
not incorporated in the contract when executed, the letter shall inform 
the requestor that the advance waiver shall be effective as of the 
effective date of the contract for an advance waiver of inventions 
identified, i.e., conceived prior to the effective date of the contract, 
or as of the date the invention is reported with an election by the 
contractor to retain rights therein, i.e., for an invention conceived or 
first actually reduced to practice after the effective date of the 
contract; provided a copy of the letter is signed and returned to the 
Contracting Officer by the requestor acknowledging the acceptance of the 
scope, terms and conditions of the advance waiver. After acceptance by 
the contractor of an advance waiver, the Contracting Officer shall cause 
a unilateral no-cost modification to be made to the contract 
incorporating the terms and conditions of the waiver in lieu of previous 
patent rights provisions.
    (h) In the event that a waiver request is denied, the requestor may, 
within thirty days after notification of the denial, request 
reconsideration. Such a request shall include any additional facts and 
rationale not previously submitted which support the request. Request 
for reconsideration shall be submitted and processed in accordance with 
the procedures for submitting waiver requests set forth in this section.



Sec. 784.9  Content of waiver requests.

    (a) Forms (OMB No. 1901-0800) for submitting requests for advance 
and identified invention waivers, indicating the necessary information, 
may be obtained from the Contracting Officer or Patent Counsel. All 
requests for advance and identified invention waivers shall include the 
following information:

[[Page 360]]

    (1) The requestor's identification, business address, and, if 
represented by Counsel, the Counsel's name and address;
    (2) An identification of the pertinent contract or proposed contract 
and a copy of the contract Statement of Work or a nonproprietary 
statement which fully describes the proposed work to be performed;
    (3) The nature and extent of waiver requested;
    (4) A full and detailed statement of facts, to the extent known by 
or available to the requestor, directed to each of the considerations 
set forth in Secs. 784.4 or 784.5 of this part, as applicable, and a 
statement applying such facts and considerations to the policies set 
forth in Sec. 784.3 of this part. It is important that this submission 
be tailored to the unique aspects of each request for waiver, and be as 
complete as feasible; and
    (5) The signature of the requestor or authorized representative with 
the following statement: ``The facts set forth in this request for 
waiver are within the knowledge of the requestor and are submitted with 
the intention that the Secretary or designee rely on them in reaching 
the waiver determination.''
    (b) In addition to the requirements of paragraph (a) of this 
section, requests for waiver of identified inventions shall include:
    (1) The full names of all inventors;
    (2) A statement of whether a patent application has been filed on 
the invention, together with a copy of such application if filed or, if 
not filed, a complete description of the invention;
    (3) If a patent application has not been filed, any information 
which may indicate a potential statutory bar to the patenting of the 
invention under 35 U.S.C. 102 or a statement that no such bar is known 
to exist; and
    (4) Where the requestor is the inventor, written authorization from 
the applicable contractor or subcontractor permitting the inventor to 
request a waiver.
    (c) Subject to statutes, DOE regulations, requirements, and 
restrictions on the treatment of proprietary and classified information; 
all material submitted in requests for waiver or in support thereof will 
be made available to the public after a determination on the waiver 
request has been made, regardless of whether a waiver is granted. 
Accordingly, requests for waiver should not normally contain information 
or data that the requestor is not willing to have made public. If 
proprietary or classified information is needed to make the waiver 
determination, such information shall be submitted only at the request 
of Patent Counsel.



Sec. 784.10  Record of waiver determinations.

    The Assistant General Counsel for Technology Transfer and 
Intellectual Property shall maintain and periodically update a publicly 
available record of waiver determinations.



Sec. 784.11  Bases for granting waivers.

    (a) The various factual situations which are appropriate for waivers 
cannot be categorized precisely because the appropriateness of a waiver 
will depend upon the manner in which the considerations set forth in 
Secs. 784.4 or 784.5, and 784.6 if applicable, of this part relate to 
the facts and circumstances surrounding the particular contracting 
situation or the particular invention, in order to best achieve the 
objectives set forth in Sec. 784.3 of this part. However, some examples 
where advance waivers might be appropriate are:
    (1) Cost-shared contracts;
    (2) Situations in which DOE is providing increased funding to a 
specific ongoing privately-sponsored research, development, or 
demonstration project;
    (3) Situations such as Work for Others Agreements, User Facility 
Agreements or CRADAs, involving DOE-approved private use of Government 
facilities where the waiver requestor is funding a substantial part of 
the costs; and
    (4) Situations in which the equities of the contractor are so 
substantial in relation to that of the Government that the waiver is 
necessary to obtain the participation of the contractor.
    (b) Waivers may be granted as to all or any part of the rights of 
the United States to an invention subject to certain rights retained by 
the United States as set forth in Sec. 784.12 of this

[[Page 361]]

part. The scope of the waiver will depend upon the relationship of the 
contractual situation or identified invention to considerations set 
forth in Secs. 784.4 or 784.5, and 784.6, if applicable, in order to 
best achieve the objectives set forth in Sec. 784.3. For example, 
waivers may be restricted to a particular field of use in which the 
contractor has substantial equities or a commercial position, or 
restricted to those uses that are not the primary object of the contract 
effort. Waivers may also be made effective for a specified duration of 
time, may be limited to particular geographic locations, may require the 
contractor to license others at reduced royalties in consideration of 
the Government's contribution to the research, development, or 
demonstration effort, or may require return of a portion of the 
royalties or revenue to the Government.
    (c) Contractors shall not use their ability to award subcontracts as 
economic leverage to acquire rights for themselves in the subcontractor 
inventions, where the subcontractor(s) would prefer to petition for 
title. A waiver granted to a prime contractor is not normally applicable 
to inventions of subcontractors. However, in appropriate circumstances, 
the waiver given to the prime contractor may be made applicable to the 
waivable inventions of any or all subcontractors, such as where there 
are pre-existing special research and development arrangements between 
the prime contractor and subcontractor, or where the prime contractor 
and subcontractor are partners in a cooperative effort. In addition, in 
such circumstances, the prime contractor may be permitted to acquire 
nonexclusive licenses in the subcontractors' inventions when a waiver of 
the subcontractor inventions is not covered by the prime contractor's 
waiver.
    (d) In advance waivers of identified inventions, the invention will 
be deemed to be a subject invention and the waiver will be considered as 
being effective as of the effective date of the contract (see 
Sec. 784.13(a)). This will be true regardless of whether the identified 
invention had been first actually reduced to practice prior to the time 
of contracting or would be reduced to practice under the contract or 
after expiration of the contract. One purpose of advance waivers of 
identified inventions is to establish the rights of the parties to such 
inventions when the facts surrounding the first actual reduction to 
practice prior to or during the contract are or will be difficult to 
establish.



Sec. 784.12  Terms and conditions of waivers.

    The terms and conditions for waivers are set forth in the ``Patent 
Rights--Waiver'' clause in this section. A waiver of all foreign and 
domestic patent rights under a contract authorizes the use of this 
clause with any additions prescribed by the DOE Acquisition Regulations 
(48 CFR Chapter 9) or the terms of the waiver. This clause shall not be 
used in contracts with small business firms or nonprofit organizations 
subject to 35 U.S.C. 200 et seq. If a waiver of different scope is 
granted, the clause shall be modified to conform to the scope of the 
waiver granted. Advance waivers for arrangements other than contracts, 
grants, and cooperative agreements may use other clause provisions 
approved by the Assistant General Counsel for Technology Transfer and 
Intellectual Property, except that all waivers for funding agreements 
shall be subject to the license of clause paragraph (b) and the 
provisions of clause paragraphs (i) and (j). The terms and conditions of 
the clause shall also constitute the basis for confirmatory licenses 
regarding waivers of identified inventions. For inventions under advance 
waivers, a duly executed and approved instrument fully confirmatory of 
all rights to which the Government is entitled is required to be 
submitted promptly after filing a patent application thereon. If, 
however, a waiver request is pending, delivery of the confirmatory 
instrument may be delayed until a determination on the waiver request is 
made. In the case of a waiver of an identified invention pursuant to a 
request for greater rights, the confirmatory instrument shall be agreed 
to or submitted to Patent Counsel before or at the time the waiver is 
granted.

                          Patent Rights--Waiver

    Use the clause at 48 CFR 52.227-12 with the following changes:

[[Page 362]]

    (1) In paragraph (a) ``Definitions'' add the following definitions:
    Background patent means a domestic patent covering an invention or 
discovery which is not a Subject Invention and which is owned or 
controlled by the Contractor at any time through the completion of this 
contract:
    (i) Which the Contractor, but not the Government, has the right to 
license to others without obligation to pay royalties thereon, and
    (ii) Infringement of which cannot reasonably be avoided upon the 
practice of any specific process, method, machine, manufacture or 
composition of matter (including relatively minor modifications thereof) 
which is a subject of the research, development, or demonstration work 
performed under this contract.
    Contract means any contract, grant, agreement, understanding, or 
other arrangement, which includes research, development, or 
demonstration work, and includes any assignment or substitution of 
parties.
    DOE patent waiver regulations means the Department of Energy patent 
waiver regulations at 10 CFR part 784.
    Patent Counsel means the Department of Energy Patent Counsel 
assisting the procuring activity.
    Secretary means the Secretary of Energy.
    (2) In paragraph (a) in the definition of ``Subject invention'' 
substitute: ``course of or'' for: ``performance of work''.
    (3) In paragraph (b) ``Allocation of principal rights,'' add at the 
beginning of first sentence:
    ``Whereas DOE has granted a waiver of rights to subject inventions 
to the Contractor,''.
    (4) In paragraph (c)(1), substitute:
    ``Patent Counsel within six months after conception or first actual 
reduction to practice, whichever occurs first in the course of or under 
this contract, but in any event, prior to any sale, public use, or 
public disclosure of such invention known to the Contractor.'' for.
    ``Contractor officer within 2 months after the inventor discloses it 
in writing to Contractor Personnel responsible for Patent matters * * * 
earlier.''
    (5) In paragraph (c)(2) add at the end: ``The Contractor shall 
notify the Patent Counsel as to those countries (including the United 
States) in which the Contractor will retain title not later than 60 days 
prior to the end of the statutory period.''
    (6) In paragraph (c)(3) substitute: ``but not later than at least 60 
days'' for ``or, if earlier,''
    (7) In paragraph (d) add (d)(5):
    ``(5) If the waiver authorizing the use of this clause is terminated 
as provided in paragraph (p) of this clause.''
    (8) In paragraph (e)(1) add: ``under paragraph (d) of this clause'' 
after ``Government obtains title.''
    (9) In paragraph (e)(2) substitute ``37 CFR part 404 and DOE 
licensing regulations.'' for ``the Federal Property Management 
regulations and agency licensing regulations (if any)''
    (10) In paragraph (f)(5) substitute ``the course of or'' for 
``performance of work''.
    (11) In paragraph (g) substitute paragraphs (1), (2) and (3) as 
follows:
    (1) Unless otherwise directed by the Contracting Officer, the 
Contractor shall include the clause at 48 CFR 952.227-11, suitably 
modified to identify the parties, in all subcontracts, regardless of 
tier, for experimental, developmental, or research work to be performed 
by a small business firm or nonprofit organization, except where the 
work of the subcontract is subject to an Exceptional Circumstances 
Determination by DOE. In all other subcontracts, regardless of tier, for 
experimental, developmental, demonstration, or research work, the 
Contractor shall include the patent rights clause at 48 CFR 952.227-13 
(suitably modified to identify the parties).
    (2) The Contractor shall not, as part of the consideration for 
awarding the subcontract, obtain rights in the subcontractor's subject 
inventions.
    (3) In the case of subcontractors at any tier, Department, the 
subcontractor, and Contractor agree that the mutual obligations of the 
parties created by this clause constitute a contract between the 
subcontractor and the Department with respect to those matters covered 
by this clause.
    (12) Substitute the following for paragraph (k):
    (k) Background Patents
    (1) The Contractor agrees:
    (i) to grant to the Government a royalty-free, nonexclusive license 
under any Background Patent for purposes of practicing a subject of this 
contract by or for the Government in research, development, and 
demonstration work only.
    (ii) that, upon written application by DOE, it will grant to 
responsible parties for purposes of practicing a subject of this 
contract, nonexclusive licenses under any Background Patent on terms 
that are reasonable under the circumstances. If, however, the Contractor 
believes that exclusive or partially exclusive rights are necessary to 
achieve expeditious commercial development or utilization, then a 
request may be made to DOE for DOE approval of such licensing by the 
Contractor.
    (2) Notwithstanding paragraph (k)(1)(ii), the Contractor shall not 
be obligated to license any Background Patent if the Contractor 
demonstrates to the satisfaction of the Secretary or his designee that:

[[Page 363]]

    (i) a competitive alternative to the subject matter covered by said 
Background Patent is commercially available from one or more other 
sources; or
    (ii) the Contractor or its licensees are supplying the subject 
matter covered by said Background Patent in sufficient quantity and at 
reasonable prices to satisfy market needs, or have taken effective steps 
or within a reasonable time are expected to take effective steps to so 
supply the subject matter.
    (13) Add new paragraph (l) Communications as follows:
    All reports and notifications required by this clause shall be 
submitted to the Patent Counsel unless otherwise instructed.
    (14) In paragraph (m) add to end of sentence: ``, except with 
respect to Background Patents, above.''
    (15) In paragraph (n)(4) substitute ``conducted in such a manner 
as'' for ``subject to appropriate conditions.''
    (16) In paragraph (o) add at the end of the parenthetical phrase in 
the heading to the paragraph: ``or grants''.
    (17) In paragraph (o) add paragraph (o)(1)(v) as follows:
    (v) Convey to the Government, using a DOE-approved form, the title 
and/or rights of the Government in each subject invention as required by 
this clause.
    (18) In paragraph (o), substitute the following for (o)(3):
    (3) Final payment under this contract shall not be made before the 
Contractor delivers to the Patent Counsel all disclosures of subject 
inventions required by paragraph (c)(1) of this clause, an acceptable 
final report pursuant to paragraph (f)(7)(ii) of this clause, and all 
past due confirmatory instruments, and the Patent Counsel has issued a 
patent clearance certification to the Contracting Officer.
    (19) Add paragraphs (p), (q), (r), and (s) as follows:
    (p) Waiver Terminations.
    Any waiver granted to the Contractor authorizing the use of this 
clause (including any retention of rights pursuant thereto by the 
Contractor under paragraph (b) of this clause) may be terminated at the 
discretion of the Secretary or his designee in whole or in part, if the 
request for waiver by the Contractor is found to contain false material 
statements or nondisclosure of material facts, and such were 
specifically relied upon by DOE in reaching the waiver determination. 
Prior to any such termination, the Contractor will be given written 
notice stating the extent of such proposed termination and the reasons 
therefor, and a period of 30 days, or such longer period as the 
Secretary or his designee shall determine for good cause shown in 
writing, to show cause why the waiver of rights should not be so 
terminated. Any waiver termination shall be subject to the Contractor's 
minimum license as provided in paragraph (e) of this clause.
    (q) Atomic Energy.
    No claim for pecuniary award or compensation under the provisions of 
the Atomic Energy Act of 1954, as amended, shall be asserted by the 
Contractor or its employees with respect to any invention or discovery 
made or conceived in the course of or under this contract.
    (r) Publication.
    It is recognized that during the course of work under this contract, 
the Contractor or its employees may from time to time desire to release 
or publish information regarding scientific or technical developments 
conceived or first actually reduced to practice in the course of or 
under this contract. In order that public disclosure of such information 
will not adversely affect the patent interests of DOE or the Contractor, 
approval for release of publication shall be secured from Patent Counsel 
prior to any such release or publication. In appropriate circumstances, 
and after consultation with the Contractor, Patent Counsel may waive the 
right of prepublication review.
    (s) Forfeiture of rights in unreported subject inventions.
    (1) The Contractor shall forfeit and assign to the Government, at 
the request of the Secretary of Energy or designee, all rights in any 
subject invention which the Contractor fails to report to Patent Counsel 
within six months after the time the Contractor:
    (i) Files or causes to be filed a United States or foreign patent 
application thereon; or
    (ii) Submits the final report required by paragraph (e)(2)(ii) of 
this clause, whichever is later.
    (2) However, the Contractor shall not forfeit rights in a subject 
invention if, within the time specified in paragraph (m)(1) of this 
clause, the Contractor:
    (i) Prepares a written decision based upon a review of the record 
that the invention was neither conceived nor first actually reduced to 
practice in the course of or under the contract and delivers the 
decision to Patent Counsel, with a copy to the Contracting Officer; or
    (ii) Contending that the subject invention is not a subject 
invention, the Contractor nevertheless discloses the subject invention 
and all facts pertinent to this contention to the Patent Counsel, with a 
copy to the Contracting Officer, or
    (iii) Establishes that the failure to disclose did not result from 
the Contractor's fault or negligence.
    (3) Pending written assignment of the patent application and patents 
on a subject invention determined by the Contracting Officer to be 
forfeited (such determination to be a Final Decision under the Disputes 
clause of this contract), the Contractor shall be

[[Page 364]]

deemed to hold the invention and the patent applications and patents 
pertaining thereto in trust for the Government. The forfeiture provision 
of this paragraph shall be in addition to and shall not supersede any 
other rights and remedies which the Government may have with respect to 
subject inventions.



Sec. 784.13  Effective dates.

    Waivers shall be effective on the following dates:
    (a) For advance waivers of identified inventions, i.e., inventions 
conceived prior to the effective date of the contract, on the effective 
date of the contract, even though the advance waiver may have been 
requested after that date;
    (b) For identified inventions under advance waivers, i.e., 
inventions conceived or first actually reduced to practice after the 
effective date of the contract, on the date the invention is reported 
with the election to retain rights as to that invention; and
    (c) For waivers of identified inventions (other than under an 
advance waiver), on the date of the letter from Patent Counsel notifying 
the requestor that the waiver has been granted.



PART 800--LOANS FOR BID OR PROPOSAL PREPARATION BY MINORITY BUSINESS ENTERPRISES SEEKING DOE CONTRACTS AND ASSISTANCE--Table of Contents




                           Subpart A--General

Sec.
800.001  Purpose.
800.002  Program management.
800.003  Definitions.
800.004  Eligibility.

          Subpart B--Loan Solicitation, Application and Review

800.100  Solicitation of applications.
800.101  Application requirements.
800.102  Review by Application Evaluation Panel.
800.103  Review by Application Approving Official.

                            Subpart C--Loans

800.200  Maximum loan; allowable costs.
800.201  Findings.
800.202  Loan terms and conditions.
800.203  Loan limits.
800.204  Deviations.

                     Subpart D--Loan Administration

800.300  Loan servicing.
800.301  Monitoring.
800.302  Loan limitation.
800.303  Assignment or transfer of loan.
800.304  Default.
800.305  Disclosure.
800.306  Noninterference with other laws.
800.307  Appeals.

    Authority: Sec. 211(e) of the Department of Energy (DOE) 
Organization Act, Pub. L. 95-91, Title II, as amended by Pub. L. 95-619, 
Title VI, sec. 641, Nov. 9, 1978, 92 Stat. 3284 (42 U.S.C. 7141).

    Source: 46 FR 44689, Sept. 4, 1981, unless otherwise noted.



                           Subpart A--General



Sec. 800.001  Purpose.

    The purpose of this regulation is to set forth policies and 
procedures for the award and administration of loans to minority 
business enterprises. The loans are to assist such enterprises in 
participating fully in research, development, demonstration and contract 
activities of the Department of Energy. The loans are to defray a 
percentage of the cost of obtaining DOE contracts and other agreements, 
including procurements, cooperative agreements, grants, loans and loan 
guarantees; of obtaining subcontracts with DOE operating contractors; 
and of obtaining contracts with first-tier subcontractors of DOE 
operating contractors in furtherance of the research, development, 
demonstration or other contract activities of DOE. Issuance of loans 
under this regulation is limited to the extent funds are provided in 
advance in appropriation acts. This regulation implements the authority 
for such loans in section 211(e) of the Department of Energy (DOE) 
Organization Act, Public Law 95-619, title VI, section 641, November 9, 
1978, 92 Stat. 3284 (42 U.S.C.A. 7141).
[48 FR 17574, Apr. 25, 1983]



Sec. 800.002  Program management.

    Program management responsibility for financial assistance awarded 
under this regulation has been assigned to the Office of Minority 
Economic Impact.

[[Page 365]]



Sec. 800.003  Definitions.

    For the purpose of this regulation:
    Act means the DOE Organization Act, Public Law 95-91, title II, as 
amended by the National Energy Conservation Policy Act, Public Law 95-
619, title VI, section 641.
    Applicant means a minority business enterprise which is seeking a 
loan under this regulation.
    Application Approving Official means the Director of the Office of 
Minority Economic Impact.
    Application Evaluation Panel (also referred to as the Panel) means a 
team of Federal employees appointed by the Application Approving 
Official to evaluate loan applications and make approval or disapproval 
recommendations regarding such applications.
    Borrower means an applicant who enters into a loan agreement with 
DOE.
    Contracting Officer means the DOE official warranted and authorized 
to contractually bind the Department of Energy and execute written 
agreements that are binding on the Department.
    Costs of a bid or proposal means the cost of preparing, submitting 
and supporting a bid or proposal, whether solicited or not, for a DOE 
contract or other agreement such as a procurement contract, grant, 
cooperative agreement, loan or loan guarantee; or a subcontract with a 
DOE operating contractor; or a contract with a first-tier subcontractor 
of a DOE operating contractor in furtherance of the research, 
development, demonstration or other contract activities of DOE.
    Default means the actual failure by the borrower to make payment of 
principal or interest in accordance with the terms and conditions of a 
loan issued under this regulation, or the failure of the borrower to 
meet any other requirement specified as a default condition in the loan 
agreement.
    Director means the Director of the Office of Minority Economic 
Impact (OMEI).
    Loan, in reference to a loan made pursuant to the regulation, means 
a transaction in which a contractual instrument (``loan agreement'') is 
executed between the United States, as lender, acting through the 
Secretary of Energy, and a borrower. The instrument must obligate the 
United States to provide the borrower with a specified amount(s) of 
United States funds for a specified period of time and must obligate the 
borrower to use the moneys to bid for and attempt to obtain contracts 
and other agreements relating to DOE research, development, 
demonstration and contract activities, and to repay the moneys at a 
specified time at an agreed rate of interest. The words `loan', `loan 
agreement' and `transaction' include (where the context does not require 
otherwise) the terms and conditions of related documents, such as the 
borrower's note or bond or other evidence of, or security for, the 
borrower's indebtedness.
    Minority Business Enterprise means a firm including a sole 
proprietorship, corporation, association, or partnership which is at 
least 50 percent owned or controlled by a member of a minority or group 
of members of a minority. For the purpose of this definition, `control' 
means direct or indirect possession of the power to direct, or cause the 
direction of, management and policies, whether through the ownership of 
voting securities, by contract or otherwise. An individual who is a 
citizen of the United States and who is a Negro, Puerto Rican, American 
Indian, Eskimo, Oriental, or Aleut, or is a Spanish speaking individual 
of Spanish descent, is a member of a ``minority'' as used in this 
regulation.
    Operating Contractors means contractors under contracts having one 
of the following purposes, in accordance with the provisions of 
Sec. 9.50.001(a)(1) of the DOE procurement regulations (title 41 CFR 
part 9-50):
    (a) DOE prime contracts for the management of Federal Government-
owned laboratories, production plants, and research facilities located 
on Federal Government-owned or Federal Government-leased sites, where 
the programs being conducted are considered of a long-term, continuing 
nature; or
    (b) DOE prime contracts for the operation of Federal Government-
owned facilities located on contractor-owned or leased sites where the 
programs being conducted are of a long-term, continuing nature. An 
example of this category would be those contracts with universities for 
the operation of Federal Government-owned facilities, for

[[Page 366]]

the purpose of conducting long-term basic research programs.
    (c) Other contracts performed on sites owned by the Federal 
Government when so designated by the appropriate procurement official.
    Secretary means the Secretary of the Department of Energy or his 
delegate.
[46 FR 44689, Sept. 4, 1981, as amended at 48 FR 17574, Apr. 25, 1983]



Sec. 800.004  Eligibility.

    In order to be eligible for a loan, an applicant must be a minority 
business enterprise as defined in Sec. 800.003.



          Subpart B--Loan Solicitation, Application and Review



Sec. 800.100  Solicitation of applications.

    The Secretary will periodically issue an announcement soliciting 
applications under this regulation. The announcement will be published 
in the Federal Register, synopsized in the Commerce Business Daily, and 
circulated to minority trade associations and organizations and to the 
Minority Business Development Agency and Small Business Administration. 
The announcement will indicate funds availability, eligibility 
requirements, application instructions, interest rates, maturities and 
other key loan terms and any applicable restrictions. In such 
solicitations, DOE shall further indicate that, in the case of 
applications for loans relating to bids or proposals for contracts with 
first-tier subcontractors of DOE operating contractors, information 
necessary to substantiate such applications may be unavailable to DOE 
from such subcontractors. If the substantiating information is not made 
available to DOE in a timely manner, the application may be rejected.
[46 FR 44689, Sept. 4, 1981, as amended at 48 FR 17574, Apr. 25, 1983]



Sec. 800.101  Application requirements.

    (a) Applications for loans shall be filed, one original and three 
copies with: Department of Energy, Washington, DC 20585, Attention: 
Announcement No. DE-PS60-MI.
    (b) An application for a loan under this regulation must include the 
following information. Items described in paragraphs (b)(1) through (7) 
of this section may be submitted for preliminary review in advance of a 
specific loan request but must be updated at time of loan request to 
reflect substantial changes.
    (1) Applicant's name and address, with a description of the kind and 
size of its business, its business experience and its history as a 
minority business enterprise.
    (2) Financial statements of applicant and its principals, including 
source of revenue and balance sheets for the current year and, as to 
applicant, for the two preceding years of applicant's existence as a 
business entity. The Secretary may require applicant to provide 
certification by a public accountant, or other certification acceptable 
to the Secretary.
    (3) A description of any other Federal financial backing (direct 
loans, guaranteed loans, grants, etc.) applied for or obtained by the 
applicant within the previous five years, or expected to be applied for.
    (4) A description of applicant's management structure, with list of 
applicant's key persons with their responsibilities and qualifications.
    (i) In the case of a specific loan request this list should include 
any contractor or consultant whose services are proposed in connection 
with the bid or proposal for which the loan is sought.
    (5) Affidavit(s) of eligibility (see Sec. 800.004).
    (6) Documentation as to applicant's authority to undertake the 
activities contemplated by the application. Such documentation shall 
take substantially the following form:
    (i) If the applicant is a corporation, a copy of the charter or 
certificate and articles of incorporation, with any amendments, duly 
certified by the Secretary of State of the State where organized, and a 
copy of the by-laws. There shall also be included a copy of all minutes, 
resolutions of stockholders or directors or other representatives of the 
applicant, properly attested, authorizing the filing of the application.
    (ii) If the applicant is an association, a verified copy of its 
articles of association, if any, with an attested copy of

[[Page 367]]

the resolution of its governing board, if any, authorizing the filing of 
the application.
    (iii) If the applicant is a business trust, a verified copy of the 
trust instrument and an attested copy of the resolution or other 
authority under which the application is made.
    (iv) If the applicant is a joint stock company, a verified copy of 
the articles of association and of the authorizing resolution.
    (v) If the application is made on behalf of a partnership, a copy of 
the partnership agreement, if any; if on behalf of a limited 
partnership, a duly certified copy, also, of the certificate of limited 
partnership, if such certificate is required to be obtained under state 
law governing such limited partnership.
    (7) Credit references.
    (8) Information on the award to be sought through the bid or 
proposal, as follows:
    (i) Title, and whether in response to a solicitation or unsolicited.
    (ii) Brief description of work to be performed.
    (iii) Sponsoring DOE office, including solicitation number, if any.
    (iv) If an unsolicited proposal is planned, the loan application 
shall indicate the appropriate DOE program personnel to be consulted as 
to whether there is potential for the proposal to be supported.
    (v) Schedule for preparation and submission of the bid or proposal.
    (9) Itemized cost estimates (and whether yet incurred).
    (10) The required loan amount, not to exceed 75 percent of total bid 
or proposal costs, in accordance with Sec. 800.200 on allowable costs.
    (11) Requested loan maturity, in accordance with Sec. 800.202(a)(3).
    (12) How applicant will finance performance of work under a 
successful bid or proposal.
    (13) Such other information as the Application Approving Official 
may deem necessary for evaluation in accordance with Sec. 800.103 and 
for compliance with the provisions of this regulation.
    (14) The application shall be signed by the applicant or on behalf 
of the applicant by an authorized representative. Verification may be by 
affidavit of an authorized representative of an applicant; attestation 
shall be by the authorized officer of an applicant.

    Note: Title 18 United States Code, section 1001 provides criminal 
penalties for fraud and intentional false statements in information 
submitted in such an application.



Sec. 800.102  Review by Application Evaluation Panel.

    (a) Applications for loans under this regulation shall be reviewed 
by an Application Evaluation Panel, which shall be appointed by the 
Application Approving Official. The Panel shall include, at a minimum, a 
representative of the Office of Minority Economic Impact, the 
contracting officer and a representative of the Office of the 
Controller.
    (b) Panel review shall be conducted pursuant to paragraph (c) or (d) 
of this section, as applicable, to evaluate, to clarify and to develop 
information contained in the application and such other information as 
the Application Approving Official or the Panel may request.
    (1) The Panel shall give priority to applications relating to a 
competitive solicitation, because of time limits on such solicitations. 
The Panel may defer action a maximum of five days after a solicitation 
has been announced in the Commerce Business Daily to provide all 
interested applicants an opportunity to apply.
    (2) Initial screening will be in the order applications are 
received, but time required to process an application may vary from case 
to case.
    (c) Panel review of specific loan requests.
    (1) If an application contains a specific loan request, and complies 
with Sec. 800.101, the Panel shall arrange for risk analysis, 
independent of any such analysis submitted by or on behalf of the 
applicant. Risk analysis shall be directed both to the loan request and 
to applicant's prospective performance of work pursuant to the bid or 
proposal.
    (2) The Panel shall evaluate the loan request in light of the risk 
analysis, and shall give its conclusions in writing to the Application 
Approving Official, with respect to the following and

[[Page 368]]

to such other considerations as that official may direct:
    (i) Applicant's eligibility as a minority business enterprise.
    (ii) Compliance with the application requirements of Sec. 800.101.
    (iii) Compliance with Sec. 800.200 on allowable costs.
    (iv) Applicant's financial ability to make the bid or proposal 
without the loan.
    (v) Applicant's contribution of, or ability to contribute, the 25% 
minimum share of allowable costs, or more.
    (vi) Applicant's ability to prepare an adequate bid or proposal, if 
the loan is made.
    (vii) Possibility of award to applicant pursuant to its bid or 
proposal.

    Note: Normally, not more than three loans will be approved for the 
same competitive award.

    (viii) Applicant's ability to perform pursuant to the bid or 
proposal.
    (ix) Likelihood that applicant will repay the requested loan, 
regardless of success of applicant's bid or proposal.
    (x) Optimal use of available program funds.
    (xi) The Panel's recommendation.
    (d) Panel review of other applications. If the application was 
submitted without a specific loan request, the Panel shall review the 
application in accordance with paragraph (b) of this section with the 
limited purpose of determining whether the applicant has complied with 
Sec. 800.101, except as to matters determinable only with respect to a 
future specific loan request, and shall inform the Application Approving 
Official in writing as to its determinations.



Sec. 800.103  Review by Application Approving Official.

    (a) The Application Approving Official shall consider the results of 
the Panel's review under section 102 (c) or (d), and such other 
information as the Application Approving Official determines to be 
relevant pursuant to the provisions of this regulation, and shall either 
approve or disapprove the application, giving it priority in accordance 
with the provisions of Sec. 800.102(b).
    (b) The Application Approving Official shall authorize a contracting 
officer to notify the applicant of approval or disapproval.
    (c) An applicant whose application has been rejected will be 
informed, on request, of the reason for rejection. Rejection is not a 
bar to submission of an appropriately revised application.



                            Subpart C--Loans



Sec. 800.200  Maximum loan; allowable costs.

    (a) A loan under this regulation shall not exceed 75 percent of 
allowable costs of a bid or proposal to obtain a DOE contract or other 
agreement (such as a procurement contract, cooperative agreement, grant, 
loan or loan guarantee), or a subcontract with a DOE operating 
contractor, or a contract with a first-tier subcontractor of a DOE 
operating contractor in furtherance of the research, development, 
demonstration or other contract activities of DOE.
    (b) To be allowable, costs must, in DOE's judgment:
    (1) Be consistent with the bidding cost principles of the Federal 
Procurement Regulation (41 CFR Ch. 1, 1-15.205-3) and DOE Procurement 
Regulation (41 CFR Ch. 9, 9-15.205-3); and;
    (2) Be necessary, reasonable and customary for the bid or proposal 
contemplated by the application; and
    (3) Be incurred, or expected to be incurred, by the applicant.
    (c) Costs which are, in general, allowable, if consistent with 
paragraph (b) of this section include, but are not limited to:
    (1) Bid bond premiums.
    (2) Financial, accounting, legal, engineering and other 
professional, consulting or similar fees and service charges.
    (3) Printing and reproduction costs.
    (4) Travel and transportation costs.
    (5) Costs of the loan application under this rule.
    (d) Costs that are not considered as allowable costs include the 
following:
    (1) Fees and commissions charged to the applicant, including 
finder's fees, for obtaining Federal funds.
    (2) Expenses, which, in DOE's judgment, have primarily an 
application broader than the specific loan request.

[[Page 369]]

    (3) Costs which, in DOE's judgment, fail to conform to paragraph (b) 
of this section.
[46 FR 44689, Sept. 4, 1981, as amended at 48 FR 17574, Apr. 25, 1983]



Sec. 800.201  Findings.

    A loan shall issue under this regulation only if the Secretary, 
having reviewed the action of the Application Approving Official, and 
having considered such other information as the Secretary may deem 
pertinent, has made all the findings that follow:
    (a) That the applicant is a minority business enterprise.
    (b) That the loan will assist the enterprise to participate in the 
research, development, demonstration or contract activities of the 
Department of Energy by providing funds needed by applicant for bid or 
proposal purposes.
    (c) That, by terms of the loan, applicant's use of the funds will be 
limited to bidding for and obtaining a contract or other agreement with 
the Department of Energy, a subcontract with a DOE operating contractor, 
or a contract with a first-tier subcontractor of a DOE operating 
contractor in furtherance of the research, development, demonstration or 
other contract activities of DOE.
    (d) That the funds to be loaned will not exceed 75% of applicant's 
costs in bidding for and obtaining the contract or agreement.
    (e) That the rate of interest on the loan has been determined in 
consultation with the Secretary of the Treasury.
    (f) That there is a reasonable prospect that the applicant will make 
the bid or proposal which is the purpose of the loan, will perform 
according to its bid or proposal, and will repay the loan according to 
the terms thereof, regardless of the success of its bid or proposal.
    (g) That the terms and conditions of the loan are acceptable to the 
Secretary and comply with this regulation and with section 211(e) of the 
Department of Energy Organization Act.
[46 FR 44689, Sept. 4, 1981, as amended at 48 FR 17574, Apr. 25, 1983]



Sec. 800.202  Loan terms and conditions.

    (a) The loan shall be based upon a loan agreement and the borrower's 
separate promissory note for the proceeds of the loan, including 
interest. The agreement and note shall be executed in writing between 
the borrower and the Secretary. The contracting officer shall execute 
the loan agreement on behalf of the Secretary. The loan agreement and 
the promissory note shall provide as follows, either at full length or 
by incorporation by reference to terms of the other of the two 
documents.
    (1) The borrower agrees to repay the loan of funds provided by the 
Secretary.
    (2) The interest rate on the loan is as established in consultation 
with the Secretary of the Treasury, taking into consideration the 
current average market yields of outstanding marketable obligations of 
the United States having maturities comparable to the loan.
    (3) The loan shall be repaid over a maximum period as follows, in 
equal monthly installments of principal and interest, unless a different 
frequency of installments is specified by the Secretary:

                                                                        
------------------------------------------------------------------------
                Loan value                      Maximum repayment \1\   
------------------------------------------------------------------------
$0--$5,000................................  3 years 3 months.           
$5,000--$25,000...........................  5 years 3 months.           
Excess of $25,000.........................  8 years 3 months.           
------------------------------------------------------------------------
\1\ Maximum repayment period from date of initial disbursement.         


Repayment of principal and interest shall begin within 90 days following 
the initial loan disbursement or such longer period as may be acceptable 
to the Secretary. Installments shall be applied to accrued interest 
first and then to repayment of principal. Past due installments shall 
accrue interest at the quarterly current-value-of-funds-rate specified 
by the Treasury for overdue accounts. Prepayments may be made at any 
time without penalty.
    (4) The borrower shall have appropriate opportunities, as specified 
in the loan agreement, to cure any default, failure, or breach of any of 
the covenants, conditions and obligations undertaken by the borrower 
pursuant to the provisions of the loan agreement.

[[Page 370]]

    (5) Loans of $10,000 or less will be disbursed in a single 
disbursement. Disbursement of loans larger than $10,000 shall be per 
schedule and documentation specified by the Secretary.
    (6) The loan may be used by the borrower to defray as much as, but 
no more than, 75 percent of the cost of the bid or proposal within the 
limitations specified in Sec. 800.200, on allowable costs. Costs 
incurred by the borrower prior to the effective date of the loan 
agreement, and allowable under Sec. 800.200, may be credited toward the 
borrower's share of costs if, in DOE's judgment, they were primarily 
related to the bid or proposal, but shall not be reimbursed from the 
loan.
    (7) The borrower shall make periodic reports regarding the bid or 
proposal.
    (8) The borrower shall maintain good standing under Federal, State 
and local laws and regulations applicable to the conduct of its 
business, including current payment of all taxes, fees and other charges 
and all requisite licenses and other governmental authorization 
necessary for the continued operation of the business throughout the 
term of the loan.
    (9) The borrower shall remain a minority business enterprise 
throughout the term of the loan.
    (10) The borrower shall return funds disbursed, but not required 
together with accrued interest thereon, to DOE, or to the servicing 
agent, if applicable, when its bid or proposal is ready for submission. 
The return of unrequired funds shall be by check separate from any 
payment of interest or principal, shall be identified by the borrower as 
a return of unrequired funds, and shall be accompanied by the borrower's 
certification that so much of the loan as has been disbursed to the 
borrower and not returned has been, or will be, expended by the borrower 
for costs allowable under Sec. 800.200.
    (11) Such other provisions as the Secretary deems appropriate.
    (b) The loan agreement shall also provide for loan servicing and 
monitoring in accordance with Sec. 800.300 and Sec. 800.301, loan 
limitation in accordance with Sec. 800.302, assignment and transfer in 
accordance with Sec. 800.303, default in accordance with Sec. 800.304 
and appeals in accordance with Sec. 800.307.
    (c) The Secretary may require, as preconditions to disbursement, 
that the borrower have specified amounts of working capital (including 
amounts derived from Federal financial assistance) and maintain 
specified financial ratios, where in the Secretary's judgment 
satisfaction of such preconditions is necessary to assure the borrower's 
ability to make and perform the contract, agreement or subcontract 
according to the bid or proposal, or is otherwise necessary to protect 
the interests of the United States.
    (d) The Secretary may require pledges, personal guarantees and other 
collateral security, and the maintenance of insurance on the borrower's 
assets and principals, in amounts and on terms appropriate in the 
Secretary's judgment, to protect the interests of the United States.



Sec. 800.203  Loan limits.

    The Secretary shall not make a loan in excess of $50,000, or make 
aggregate loans to the same minority business enterprise, including its 
affiliates, in any Federal fiscal year in excess of $100,000. In 
addition, the Secretary shall not increase a loan to an amount which 
would cause the limits set forth in the previous sentence to be 
exceeded. Nothing in this regulation shall be interpreted to restrict 
the Secretary, in making the various determinations provided for in this 
regulation, from taking into account considerations relating to the 
Office of Minority Economic Impact loan program as a whole.



Sec. 800.204  Deviations.

    (a) To the extent consistent with the Act, relevant appropriations 
acts, and other applicable statutes, DOE may deviate on an individual 
application basis from the requirements of this regulation upon a 
finding by the Secretary that such deviation is necessary or appropriate 
in the individual case for the accomplishment of program objectives.
    (b) The contracting officer may, subject to written agreement by 
other necessary parties, modify or amend the terms and conditions of a 
loan provided that such modification or amendment shall be consistent 
with this regulation.

[[Page 371]]



                     Subpart D--Loan Administration



Sec. 800.300  Loan servicing.

    (a) Servicing of a loan under this regulation may be performed by 
DOE, by another Federal agency, or by a servicing agent (commercial 
bank, broker, or other financial institution or entity) having the 
capability, and legally qualified, to service the loan consistently with 
the requirements of this regulation, which contracts with DOE to act as 
servicing agent. In determining the capability of a prospective 
servicing agent, DOE shall give due consideration to the experience of 
the agent in providing financial services to minority business 
enterprises.
    (b) If the servicing of the loan is by contract or other agreement, 
such contract or other agreement shall provide that the loan shall be 
serviced in accordance with this regulation and with the terms and 
conditions of the loan, under a standard of performance that a 
reasonable and prudent lender would require as to its own similar loan. 
Servicing responsibilities shall include, but not necessarily be limited 
to, the following:
    (1) Loan disbursements as set forth in the loan agreement.
    (2) Collection of principal and interest payments on a monthly 
basis.
    (3) Maintenance of records on loan accounts.
    (4) Notification of the Secretary, without delay, as to the 
following:
    (i) That the initial disbursement or loan drawdown is ready to be 
made, together with evidence from the borrower that the bid or proposal 
preparation has begun or is about to begin.
    (ii) The date and amount of each subsequent disbursement under the 
loan.
    (iii) Any nonreceipt of payment within 10 days after the date 
specified for payment, together with evidence of appropriate 
notification to the borrower.
    (iv) Any known failure by the borrower to comply with the terms and 
conditions of the loan agreement.
    (v) Evidence, if any, that the borrower is likely to default on any 
condition set forth in the loan agreement or may be unable to make the 
next scheduled payment of principal or interest.
    (5) Submittal to DOE of periodic (semi-annual or annual) reports on 
the status and conditions of the loan and of the borrower.



Sec. 800.301  Monitoring.

    The Secretary shall have the right to audit any and all costs of the 
bid or proposal for which the loan is sought or made and to exclude or 
reduce the includible amount of any cost in accordance with 
Sec. 800.200. Auditors who are employees of the United States 
Government, who are designated by the Secretary of Energy or by the 
Comptroller General of the United States, shall have access to, and the 
right to examine, any directly pertinent documents and records of an 
applicant or borrower at reasonable times under reasonable 
circumstances. The servicing agent, if any, shall make information 
regarding the loan available to the Secretary of Energy and Comptroller 
General to the extent lawful and within its ability. The Secretary may 
direct the applicant or borrower to submit to an audit by public 
accountant or equivalent acceptable to the Secretary.



Sec. 800.302  Loan limitation.

    The Secretary may limit the loan by written notice to the borrower 
to those amounts, if any, already disbursed under the loan, if the 
Secretary has determined that the borower has failed to comply with a 
material term or condition set forth in the loan agreement.



Sec. 800.303  Assignment or transfer of loan.

    Assignment or transfer of the loan and obligations thereunder may be 
made only with the prior written consent of the Secretary.



Sec. 800.304  Default.

    (a) In the event that the borrower fails to perform the terms and 
conditions of the loan, the borrower shall be in default and the 
Secretary shall have the right, at the Secretary's option, to accelerate 
the indebtedness and demand full payment of all principal and interest 
amounts outstanding under the loan.
    (b) No failure on the part of the Secretary to make demand at any 
time shall constitute a waiver of the rights held by the Secretary.

[[Page 372]]

    (c) Upon demand by the Secretary, the borrower shall have a period 
of not more than 30 days from the date of receipt of the Secretary's 
demand to make payment in full.
    (d) In the event that the failure on the part of the borrower to 
perform the terms and conditions of the loan does not constitute an 
intentional act, but is brought about as a result of circumstances 
largely beyond the control of the borrower, or is deemed by, the 
Secretary to be insubstantial, the Secretary may elect, at the 
Secretary's option, to defer such performance and/or restructure the 
repayment required by the loan agreement in any mutually acceptable 
manner.
    (e) Should the borrower fail to pay after demand as provided in 
paragraph (c) of this section, and no deferral or restructuring is 
agreed to by the Secretary as provided in paragraph (d) of this section, 
the Secretary shall undertake collection in accordance with the terms of 
the loan agreement and the applicable law.



Sec. 800.305  Disclosure.

    Information received from an applicant by DOE may be available to 
the public subject to the provision of 5 U.S.C. 552, 18 U.S.C. 1905 and 
10 CFR part 1004; provided that:
    (a) Subject to the requirements of law, information such as trade 
secrets, commercial and financial information, and other information 
concerning the minority business enterprise that the enterprise submits 
to DOE in writing, in an application, or at other times throughout the 
duration of the loan on a privileged or confidential basis, will not be 
disclosed without prior notice to submitter in accordance with DOE 
regulations concerning public disclosure of information. Any submitter 
asserting that the information is privileged or confidential should 
appropriately identify and mark such information.
    (b) Upon a showing satisfactory to the Secretary that any 
information or portion thereof obtained under this regulation would, if 
made public, divulge trade secrets or other proprietary information of 
the minority business enterprise, the Secretary may not disclose such 
information.
    (c) This section shall not be construed as authority to withhold 
information from Congress or from any committee of Congress upon request 
of the Chairman.



Sec. 800.306  Noninterference with other laws.

    Nothing in this regulation shall be construed to modify requirements 
imposed on the borrower by Federal, State and local government agencies 
in connection with permits, licenses, or other authorizations to conduct 
or finance its business.



Sec. 800.307  Appeals.

    Any dispute concerning questions of fact arising under the loan 
agreement shall be decided in writing by the contracting officer. The 
borrower may request the contracting officer to reconsider any such 
decision, which reconsideration shall be promptly undertaken. If not 
satisfied with the contracting officer's final decision, the borrower, 
upon receipt of such written decision, may appeal the decision within 60 
days in writing to the Chairman, Financial Assistance Appeals Board 
(FAAB), Department of Energy, Washington, DC 20585. The Board shall 
proceed in accordance with the Department of Energy's rules and 
regulations for such purpose. The decision of the Board with respect to 
such appeals shall be the final decision of the Secretary.



PART 810--ASSISTANCE TO FOREIGN ATOMIC ENERGY ACTIVITIES--Table of Contents




Sec.
810.1  Purpose.
810.2  Scope.
810.3  Definitions.
810.4  Communications.
810.5  Interpretations.
810.6  Authorization requirement.
810.7  Generally authorized activities.
810.8  Activities requiring specific authorization.
810.9  Restrictions on general and specific authorization.
810.10  Grant of specific authorization.
810.11  Revocation, suspension, or modification of authorization.
810.12  Information required in an application for specific 
          authorization.
810.13  Reports.

[[Page 373]]

810.14  Additional information.
810.15  Violations.
810.16  Effective date and savings clause.

    Authority: Secs. 57, 127, 128, 129, 161, and 223, Atomic Energy Act 
of 1954, as amended by the Nuclear Non-Proliferation Act of 1978, Pub. 
L. 95-242, 68 Stat. 932, 948, 950, 958, 92 Stat. 126, 136, 137, 138 (42 
U.S.C. 2077, 2156, 2157, 2158, 2201, 2273); Sec. 104 of the Energy 
Reorganization Act of 1974, Pub. L. 93-438; Sec. 301, Department of 
Energy Organization Act, Pub. L. 95-91.

    Source: 51 FR 44574, Dec. 10, 1986, unless otherwise noted.



Sec. 810.1  Purpose.

    These regulations implement section 57b of the Atomic Energy Act 
which empowers the Secretary of Energy to authorize U.S. persons to 
engage directly or indirectly in the production of special nuclear 
material outside the United States. Their purpose is to:
    (a) Indicate activities which have been generally authorized by the 
Secretary of Energy and thus require no further authorization;
    (b) Indicate activities which require specific authorization by the 
Secretary and explain how to request authorization; and
    (c) Explain reporting requirements for various activities.



Sec. 810.2  Scope.

    10 CFR part 810:
    (a) Applies to all persons subject to the jurisdiction of the United 
States who engage directly or indirectly in the production of special 
nuclear material outside the United States.
    (b) Applies to activities conducted either in the United States or 
abroad by such persons or by licensees, contractors or subsidiaries 
under their direction, supervision, responsibility or control.
    (c) Applies, but is not limited to, activities involving nuclear 
reactors and other nuclear fuel cycle facilities for the following: 
fluoride or nitrate conversion; isotope separation (enrichment); the 
chemical, physical or metallurgical processing, fabricating, or alloying 
of special nuclear material; production of heavy water, zirconium 
(hafnium-free or low-hafnium), nuclear-grade graphite, or reactor-grade 
beryllium; production of reactor-grade uranium dioxide from yellowcake; 
and certain uranium milling activities.
    (d) Does not apply to exports licensed by the Nuclear Regulatory 
Commission.



Sec. 810.3  Definitions.

    As used in part 810:
    Agreement for cooperation means an agreement with another nation or 
group of nations concluded under sections 123 or 124 of the Atomic 
Energy Act.
    Atomic Energy Act means the Atomic Energy Act of 1954, as amended.
    Classified information means National Security Information 
classified under Executive Order 12356 or any superseding order, or 
Restricted Data classified under the Atomic Energy Act.
    General authorization means an authorization granted by the 
Secretary of Energy under section 57b(2) of the Atomic Energy Act to 
provide certain assistance to foreign atomic energy activities and which 
is effective without a specific request to the Secretary or the issuance 
of an authorization to a particular person.
    IAEA means the International Atomic Energy Agency.
    NNPA means the Nuclear Non-Proliferation Act of 1978.
    NPT means the Treaty on the Non-Proliferation of Nuclear Weapons.
    Nuclear reactor means an apparatus, other than a nuclear explosive 
device, designed or used to sustain nuclear fission in a self-supporting 
chain reaction.
    Open meeting means a conference, seminar, trade show or other 
gathering that all technically qualified members of the public may 
attend and at which they may make written or other personal record of 
the proceedings, notwithstanding that (1) a reasonable registration fee 
may be charged, or (2) a reasonable numerical limit exists on actual 
attendance.
    Operational safety means the capability of a reactor to be operated 
in a manner that prevents uncontrolled or inadvertent criticality, 
prevents or mitigates uncontrolled release of radioactivity to the 
environment, monitors and limits staff exposure to radiation and 
radioactivity, and protects

[[Page 374]]

off-site population from exposure to radiation or radioactivity. 
Operational safety may be enhanced by providing expert advice, 
equipment, instrumentation, technology, software, services, analyses, 
procedures, training, or other assistance that improves the capability 
of the reactor to be operated in such a manner.
    Person means (1) any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency other than the Department of Energy, any State or 
political entity within a State; and (2) any legal successor, 
representative, agent or agency of the foregoing. Persons under U.S. 
jurisdiction are responsible for their foreign licensees, contractors or 
subsidiaries to the extent that the former have control over the 
activities of the latter.
    Production reactor means a nuclear reactor specially designed or 
used primarily for the production of plutonium or uranium-233.
    Public information means: (1) Information available in periodicals, 
books or other print or electronic media for distribution to any member 
of the public, or to a community of persons such as those in a 
scientific, engineering, or educational discipline or in a particular 
commercial activity who are interested in a subject matter; (2) 
Information available in public libraries, public reading rooms, public 
document rooms, public archives, or public data banks, or in university 
courses; (3) Information that has been presented at an open meeting (see 
definition of ``open meeting''); (4) Information that has been made 
available internationally without restriction on its further 
dissemination; or (5) Information contained in an application which has 
been filed with the U.S. Patent Office and eligible for foreign filing 
under 35 U.S.C. 184 or which has been made available under 5 U.S.C. 552, 
the Freedom of Information Act. Public information must be available to 
the public prior to or at the same time as it is transmitted to a 
foreign recipient. It does not include any technical embellishment, 
enhancement, explanation or interpretation which in itself is not public 
information, or information subject to sections 147 and 148 of the 
Atomic Energy Act.
    Restricted Data means all data concerning (1) design, manufacture or 
utilization of atomic weapons; (2) the production of special nuclear 
material; or (3) the use of special nuclear material in the production 
of energy, but shall not include data declassified or removed from the 
Restricted Data category pursuant to section 142 of the Atomic Energy 
Act.
    Sensitive nuclear technology means any information (including 
information incorporated in a production or utilization facility or 
important component part thereof) which is not available to the public 
[see definition of ``public information''] which is important to the 
design, construction, fabrication, operation, or maintenance of a 
uranium enrichment or nuclear fuel reprocessing facility or a facility 
for the production of heavy water, but shall not include Restricted Data 
controlled pursuant to Chapter 12 of the Atomic Energy Act. The 
information may take a tangible form such as a model, prototype, 
blueprint, or operation manual or an intangible form such as technical 
services.
    Source Material means: (1) Uranium or thorium, other than special 
nuclear material or (2) ores which contain by weight 0.05 percent or 
more of uranium or thorium, or any combination of these.
    Special nuclear material means (1) plutonium, (2) uranium-233, or 
(3) uranium enriched above 0.711 percent by weight in the isotope 
uranium-235.
    Specific authorization means an authorization granted by the 
Secretary of Energy under section 57b(2) of the Atomic Energy Act to a 
person to provide specified assistance to a foreign atomic energy 
activity in response to an application filed under 10 CFR part 810.
    United States, when used in a geographical sense, includes all 
territories and possessions of the United States.
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39638, July 26, 1993]



Sec. 810.4  Communications.

    (a) All communications concerning these regulations should be 
addressed

[[Page 375]]

to: U.S. Department of Energy, Washington, DC 20585. Attention: 
Director, Export Control Operations Division, IS-40, Office of Export 
Control and International Safeguards. Telephone (202) 586-2112.
    (b) Communications also may be delivered to the Department's 
headquarters at 1000 Independence Avenue, SW., Washington, DC. All 
clearly marked proprietary information will be given the maximum 
protection allowed by law.
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39638, July 26, 1993]



Sec. 810.5  Interpretations.

    A person may request the advice of the Director, Export Control 
Operations Division (AN-30) on whether a proposed activity falls outside 
the scope of part 810, is generally authorized under Sec. 810.7, or 
requires specific authorization under Sec. 810.8; however, unless 
authorized by the Secretary of Energy in writing, no interpretation of 
these regulations other than a written interpretation by the General 
Counsel is binding upon the Department. When advice is requested from 
the Director, Export Control Operations Division, or a binding, written 
determination is requested from the General Counsel, a response normally 
will be made within 30 days and, if this is not feasible, an interim 
response will explain the delay.
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39638, July 26, 1993]



Sec. 810.6  Authorization requirement.

    Section 57b of the Atomic Energy Act in pertinent part provides 
that:

    It shall be unlawful for any person to directly or indirectly engage 
in the production of any special nuclear material outside of the United 
States except (1) as specifically authorized under an agreement for 
cooperation made pursuant to section 123, including a specific 
authorization in a subsequent arrangement under section 131 of this Act, 
or (2) upon authorization by the Secretary of Energy after a 
determination that such activity will not be inimical to the interest of 
the United States: Provided, That any such determination by the 
Secretary of Energy shall be made only with the concurrence of the 
Department of State and after consultation with the Arms Control and 
Disarmament Agency, the Nuclear Regulatory Commission, the Department of 
Commerce, and the Department of Defense.



Sec. 810.7  Generally authorized activities.

    In accordance with section 57b(2) of the Atomic Energy Act, the 
Secretary of Energy has determined that the following activities are 
generally authorized, provided no sensitive nuclear technology is 
transferred:
    (a) Furnishing public information as defined in Sec. 810.3;
    (b) Furnishing information or assistance to prevent or correct a 
current or imminent radiological emergency posing a significant danger 
to the health and safety of the off-site population, provided the 
Department of Energy is notified in advance and does not object;
    (c) Furnishing information or assistance, including through 
continuing programs, to enhance the operational safety of an existing 
civilian nuclear power plant in a country listed in Sec. 810.8(a) or to 
prevent, reduce, or correct a danger to the health and safety of the 
off-site population posed by a civilian nuclear power plant in such a 
country; provided the Department of Energy is notified in advance by 
certified mail, return receipt requested, and approves the use of the 
authorization in writing; the Department will notify the applicant of 
the status of the request within 30 days from the date of receipt of the 
notification.
    (d) Implementing the Agreement between the United States of America 
and the International Atomic Energy Agency for the Application of 
Safeguards in the United States;
    (e) Participation in exchange programs approved by the Department of 
State in consultation with the Department of Energy;
    (f) Participation approved by a U.S. Government agency in IAEA 
programs, and activities of IAEA employees whose employment was approved 
by the U.S. Government;
    (g) Participation in open meetings as defined in Sec. 810.3 that are 
sponsored by educational, scientific, or technical organizations or 
institutions;
    (h) Otherwise engaging directly or indirectly in the production of 
special nuclear material outside the United States in ways that (1) do 
not involve any of the countries listed in Sec. 810.8(a)

[[Page 376]]

and (2) do not involve production reactors, enrichment, reprocessing, 
fabrication of nuclear fuel containing plutonium, or production of heavy 
water, as described in Sec. 810.8(c) (1) through (5).
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39639, July 26, 1993]



Sec. 810.8  Activities requiring specific authorization.

    Unless generally authorized by Sec. 810.7, a person requires 
specific authorization by the Secretary of Energy before:
    (a) Engaging directly or indirectly in the production of special 
nuclear material in any of the countries listed below:

Afghanistan
Albania
Algeria
Andorra
Angola
Armenia
Azerbaijan
Bahrain
Belarus
Burma (Myanmar)
Cambodia
China, People's Republic of
Comoros
Cuba
Djibouti
Georgia
Guyana
India
Iran
Iraq
Israel
Kazakhstan
Korea, People's Democratic Republic of
Kuwait
Kyrgyzstan
Laos
Libya
Mauritania
Moldova
Monaco
Mongolian People's Democratic Republic
Mozambique
Niger
Oman
Pakistan
Qatar
Russia
Saudi Arabia
Syria
Tajikistan
Turkmenistan
Ukraine
United Arab Emirates
Uzbekistan
Vanuatu
Vietnam
Zambia
Zimbabwe


Countries may be removed from or added to this list by amendments 
published in the Federal Register.
    (b) Providing sensitive nuclear technology for an activity in any 
foreign country;
    (c) Engaging in or providing assistance in any of the following 
activities with respect to any foreign country:
    (1) Designing production reactors or facilities for the separation 
of isotopes of source or special nuclear material (enrichment), chemical 
processing of irradiated special nuclear material (reprocessing), 
fabrication of nuclear fuel containing plutonium, or the production of 
heavy water;
    (2) Constructing, fabricating, operating, or maintaining such 
reactors or facilities;
    (3) Designing, constructing, fabricating, operating or maintaining 
components specially designed, modified or adapted for use in such 
reactors or facilities;
    (4) Designing, constructing, fabricating, operating or maintaining 
major critical components for use in such reactors or production-scale 
facilities; or
    (5) Designing, constructing, fabricating, operating, or maintaining 
research or test reactors capable of continuous operation above 5 
Megawatts Thermal.
    (6) Training in the activities of paragraphs (c) (1) through (5) of 
this section.
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39639, July 26, 1993; 
60 FR 43004, Aug. 18, 1995]



Sec. 810.9  Restrictions on general and specific authorization.

    A general or specific authorization granted by the Secretary of 
Energy under these regulations:
    (a) Is limited to activities involving only unclassified information 
and does not permit furnishing Restricted Data or other classified 
information.
    (b) Does not relieve a person from complying with relevant laws or 
the regulations of other Government agencies applicable to exports;
    (c) Does not authorize a person to engage in any activity when the 
person knows or has reason to know that the

[[Page 377]]

activity is intended to provide assistance in designing, developing, 
fabricating or testing a nuclear explosive device.



Sec. 810.10  Grant of specific authorization.

    (a) Any person proposing to provide assistance for which Sec. 810.8 
indicates specific authorization is required may apply for the 
authorization to the U.S. Department of Energy, Washington, DC 20585, 
Attention: Director, Export Control Operations Division, IS-40, Office 
of Export Control and International Safeguards.
    (b) The Secretary of Energy will approve an application for specific 
authorization if he determines, with the concurrence of the Department 
of State and after consultation with the Arms Control and Disarmament 
Agency, the Nuclear Regulatory Commission, the Department of Commerce, 
and the Department of Defense, that the activity will not be inimical to 
the interest of the United States. In making this determination, the 
Secretary will take into account:
    (1) Whether the United States has an agreement for nuclear 
cooperation with the nation or group of nations involved;
    (2) Whether the country involved is a party to the NPT, or a country 
for which the Treaty for the Prohibition of Nuclear Weapons in Latin 
America (Treaty of Tlatelolco) is in force;
    (3) Whether the country involved has entered into an agreement with 
the IAEA for the application of safeguards on all its peaceful nuclear 
activities;
    (4) Whether the country involved, if it has not entered into such an 
agreement, has agreed to accept IAEA safeguards when applicable to the 
proposed activity;
    (5) Other nonproliferation controls or conditions applicable to the 
proposed activity;
    (6) The relative significance of the proposed activity;
    (7) The availability of comparable assistance from other sources;
    (8) Any other factors that may bear upon the political, economic, or 
security interests of the United States, including U.S. obligations 
under international agreements or treaties.
    (c) If the proposed assistance involves the export of ``sensitive 
nuclear technology'' as defined in Sec. 810.3, the requirements of 
sections 127 and 128 of the Atomic Energy Act and of any applicable U.S. 
international commitments must also be met.
    (d) Approximately 30 days after the Secretary's grant of a specific 
authorization, a copy of the Secretary's determination may be provided 
to any person requesting it at the Department's Public Reading Room, 
unless the applicant submits information showing that public disclosure 
will cause substantial harm to its competitive position. This provision 
does not affect any other authority provided by law for the Department 
not to disclose information.
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39639, July 26, 1993]



Sec. 810.11  Revocation, suspension, or modification of authorization.

    The Secretary may revoke, suspend, or modify a general or specific 
authorization:
    (a) For any material false statement in an application for specific 
authorization or in any additional information submitted in its support;
    (b) For failing to provide a report or for any material false 
statement in a report submitted pursuant to Sec. 810.13;
    (c) If any authorized assistance is subsequently determined to be 
inimical to the interest of the United States or otherwise no longer 
meets the legal criteria for approval; or
    (d) Pursuant to section 129 of the Atomic Energy Act.



Sec. 810.12  Information required in an application for specific authorization.

    Each application shall contain:
    (a) The name, address, and citizenship of the applicant, and 
complete disclosure of all real parties in interest; if the applicant is 
a corporation or other legal entity, where it is incorporated or 
organized, the location of its principal office, and the degree of any 
control or ownership by any foreign person or entity;
    (b) A complete description of the proposed activity, including its 
approximate monetary value, the name and location of any facility or 
project involved, the name and address of the

[[Page 378]]

person or legal entity for which the activity is to be performed, and a 
detailed description of any specific project to which the activity 
relates;
    (c) Any information the applicant may wish to provide concerning the 
factors listed in Sec. 810.10(b); and
    (d) Designation of any information considered proprietary whose 
public disclosure would cause substantial harm to the competitive 
position of the applicant.



Sec. 810.13  Reports.

    (a) Any person who has received a specific authorization shall 
within 30 days after beginning the authorized activity provide to the 
Department of Energy a report containing the following information:
    (1) The name, address, and citizenship of the person submitting the 
report;
    (2) The name, address, and citizenship of the person or entity for 
which the activity is being performed;
    (3) A description of the activity, the date it began, its location, 
status, and anticipated date of completion; and
    (4) A copy of the Department of Energy's letter authorizing the 
activity.
    (b) Any person carrying out a specifically authorized activity shall 
inform DOE when the activity is completed or if it is terminated before 
completion.
    (c) Any person granted a specific authorization shall inform DOE 
when it is known that the proposed activity will not be undertaken and 
the granted authorization will not be used.
    (d) Any person, within 30 days after beginning any generally 
authorized activity under Sec. 810.7(b), (c), or (h), shall provide to 
the Department of Energy:
    (1) The name, address, and citizenship of the person submitting the 
report;
    (2) The name, address, and citizenship of the person or entity for 
which the activity is being performed; and
    (3) A description of the activity, the date it began, its location, 
status, and anticipated date of completion.
    (4) An assurance that the U.S. vendor has an agreement with the 
recipient ensuring that any subsequent transfer of materials, equipment, 
or technology transferred under general authorization to a country 
listed in Sec. 810.8(a) will only take place if the vendor obtains DOE 
approval.
    (e) Persons engaging in generally authorized activities as employees 
of persons required to report are not themselves required to report.
    (f) Persons engaging in activities generally authorized under 
Sec. 810.7(a), (d), (e), (f), and (g) are not subject to reporting 
requirements under this section.
    (g) All reports should be sent to: U.S. Department of Energy, 
Washington, DC 20585. Attention: Director, Export Control Operations 
Division, IS-40, Office of Export Control and International Safeguards.
[51 FR 44574, Dec. 10, 1986, as amended at 58 FR 39639, July 16, 1993]



Sec. 810.14  Additional information.

    The Department of Energy may at any time require a person engaging 
in any generally or specifically authorized activity to submit 
additional information.



Sec. 810.15  Violations.

    (a) The Atomic Energy Act provides that:
    (1) Permanent or temporary injunctions or restraining orders may be 
granted to prevent any person from violating any provision of the Atomic 
Energy Act or its implementing regulations.
    (2) Any person convicted of violating or conspiring or attempting to 
violate any provision of section 57 of the Atomic Energy Act may be 
fined up to $10,000 or imprisoned up to 10 years, or both. If the 
offense is committed with intent to injure the United States or to aid 
any foreign nation, the penalty could be up to life imprisonment and a 
$20,000 fine.
    (b) Title 18 of the United States Code, section 1001, provides that 
persons convicted of willfully falsifying, concealing, or covering up a 
material fact or making false, fictitious or fraudulent statements or 
representations may be fined up to $10,000 or imprisoned up to five 
years, or both.



Sec. 810.16  Effective date and savings clause.

    These regulations are effective on July 26, 1993. Except for actions 
that

[[Page 379]]

may be taken by DOE pursuant to Sec. 810.11, this revision does not 
affect the validity or terms of any specific authorizations granted 
under the previous regulations or generally authorized activities under 
the previous regulations for which the contracts, purchase orders, or 
licensing arrangements are already in effect on July 26, 1993. Persons 
engaging in activities that were generally authorized under the previous 
regulations but that require specific authorization under the revised 
regulations must request specific authorization within 90 days but may 
continue their activities until DOE acts on the request. Specific 
authorizations previously granted for assistance to the Soviet Union 
remain valid for the newly independent former republics of the Soviet 
Union.
[58 FR 39639, July 26, 1993]



PART 820--PROCEDURAL RULES FOR DOE NUCLEAR ACTIVITIES--Table of Contents




                           Subpart A--General

Sec.
820.1  Purpose and scope.
820.2  Definitions.
820.3  Separation of functions.
820.4  Conflict of interest.
820.5  Service.
820.6  Computation and extension of time.
820.7  Questions of policy or law.
820.8  Evidentiary matters.
820.9  Special assistant.
820.10  Office of the docketing clerk.
820.11  Information requirements.
820.12  Classified, confidential, and controlled information.

                     Subpart B--Enforcement Process

820.20  Purpose and scope.
820.21  Investigations.
820.22  Informal conference.
820.23  Consent order.
820.24  Preliminary notice of violation.
820.25  Final notice of violation.
820.26  Enforcement adjudication.
820.27  Answer.
820.28  Prehearing actions.
820.29  Hearing.
820.30  Post-hearing filings.
820.31  Initial decision.
820.32  Final order.
820.33  Default order.
820.34  Accelerated decision.
820.35  Ex parte discussions.
820.36  Filing, form, and service of documents.
820.37  Participation in an adjudication.
820.38  Consolidation and severance.
820.39  Motions.

                      Subpart C--Compliance Orders

820.40  Purpose and scope.
820.41  Compliance order.
820.42  Final order.
820.43  Appeal.

                       Subpart D--Interpretations

820.50  Purpose and scope.
820.51  General Counsel.
820.52  Procedures.

                       Subpart E--Exemption Relief

820.60  Purpose and scope.
820.61  Secretarial officer.
820.62  Criteria.
820.63  Procedures.
820.64  Terms and conditions.
820.65  Implementation plan.
820.66  Appeal.
820.67  Final order.

                      Subpart F--Criminal Penalties

820.70  Purpose and scope.
820.71  Standard.
820.72  Referral to the Attorney General.

                       Subpart G--Civil Penalties

820.80  Basis and purpose.
820.81  Amount of penalty.

Appendix A to Part 820--General Statement of Enforcement Policy

    Authority: 42 U.S.C. 2201, 2282(a), 7191; 28 U.S.C. 2461 note.

    Source: 58 FR 43692, Aug. 17, 1993, unless otherwise noted.



                           Subpart A--General



Sec. 820.1  Purpose and scope.

    (a) Scope. This part sets forth the procedures to govern the conduct 
of persons involved in DOE nuclear activities and, in particular, to 
achieve compliance with the DOE Nuclear Safety Requirements by all 
persons subject to those requirements.
    (b) Questions not addressed by these rules. Questions that are not 
addressed in this part shall be resolved at the discretion of the DOE 
Official.
    (c) Exclusion. Activities and facilities covered under E.O. 12344, 
42 U.S.C. 7158

[[Page 380]]

note, pertaining to Naval nuclear propulsion are excluded from the 
requirements of subparts D and E of this part regarding interpretations 
and exemptions related to this part. The Deputy Assistance Secretary for 
Naval Reactors or his designee will be responsible for formulating, 
issuing, and maintaining appropriate records of interpretations and 
exemptions for these facilities and activities.



Sec. 820.2  Definitions.

    (a) The following definitions apply to this part:
    Act or AEA means the Atomic Energy Act of 1954, as amended.
    Administrative Law Judge means an Administrative Law Judge appointed 
under 5 U.S.C. 3105.
    Consent Agreement means any written document, signed by the Director 
and a person, containing stipulations or conclusions of fact or law and 
a remedy acceptable to both the Director and the person.
    Contractor means any person under contract (or its subcontractors or 
suppliers) with the Department of Energy with the responsibility to 
perform activities or to supply services or products that are subject to 
DOE Nuclear Safety Requirements.
    Department means the United States Department of Energy or any 
predecessor agency.
    Director means the DOE Official to whom the Secretary has assigned 
the authority to issue Notices of Violation under subpart B of this 
part, including the Director of Enforcement, or his designee. With 
regard to activities and facilities covered under E.O. 12344, 42 U.S.C. 
7158 note, pertaining to Naval nuclear propulsion, the Director shall 
mean the Deputy Assistant Secretary for Naval Reactors or his designee.
    Docketing Clerk means the Office in DOE with which documents for an 
enforcement action must be filed and which is responsible for 
maintaining a record and a public docket for enforcement actions 
commencing with the filing of a Preliminary Notice of Violation. It is 
also the Office with which interpretations, exemptions, and any other 
documents designated by the Secretary shall be filed.
    DOE means the United States Department of Energy or any predecessor 
agency.
    DOE Nuclear Safety Requirements means the set of enforceable rules, 
regulations, or orders relating to nuclear safety adopted by DOE (or by 
another Agency if DOE specifically identifies the rule, regulation, or 
order) to govern the conduct of persons in connection with any DOE 
nuclear activity and includes any programs, plans, or other provisions 
intended to implement these rules, regulations, orders, a Nuclear 
Statute or the Act, including technical specifications and operational 
safety requirements for DOE nuclear facilities. For purposes of the 
assessment of civil penalties, the definition of DOE Nuclear Safety 
Requirements is limited to those identified in 10 CFR 820.20(b).
    DOE Official means the person, or his designee, in charge of making 
a decision under this part.
    Enforcement adjudication means the portion of the enforcement 
process that commences when a respondent requests an on-the-record 
adjudication of the assessment of a civil penalty and terminates when a 
Presiding Officer files an initial decision.
    Exemption means the final order that sets forth the relief, waiver, 
or release, either temporary or permanent, from a DOE Nuclear Safety 
Requirement, as granted by the appropriate Secretarial Officer pursuant 
to the provisions of subpart E of this part.
    Filing means, except as otherwise specifically indicated, the 
completion of providing a document to the Office of the Docketing Clerk 
and serving the document on the person to whom the document is 
addressed.
    Final Notice of Violation means a document issued by the Director in 
which the Director determines that the respondent has violated or is 
continuing to violate a DOE Nuclear Safety Requirement and includes:
    (i) A statement specifying the DOE Nuclear Safety Requirement to 
which the violation relates;
    (ii) A concise statement of the basis for the determination;
    (iii) Any remedy, including the amount of any civil penalty;

[[Page 381]]

    (iv) A statement explaining the reasoning behind any remedy; and
    (v) If the Notice assesses a civil penalty, notice of respondent's 
right:
    (A) To waive further proceedings and pay the civil penalty;
    (B) To request an on-the-record adjudication of the assessment of 
the civil penalty; or
    (C) To seek judicial review of the assessment of the civil penalty.
    Final Order means an order of the Secretary that represents final 
agency action and, where appropriate, imposes a remedy with which the 
recipient of the order must comply.
    General Counsel means the General Counsel of DOE or his designee.
    Hearing means an on-the-record enforcement adjudication open to the 
public and conducted under the procedures set forth in subpart B of this 
part.
    Initial Decision means the decision filed by the Presiding Officer 
based upon the record of the enforcement adjudication out of which it 
arises.
    Interpretation means a statement by the General Counsel concerning 
the meaning or effect of the Act, a Nuclear Statute, or a DOE Nuclear 
Safety Requirement which relates to a specific factual situation but may 
also be a ruling of general applicability where the General Counsel 
determines such action to be appropriate.
    Nuclear Statute means any statute or provision of a statute that 
relates to a DOE nuclear activity and for which DOE is responsible.
    Party means the Director and the respondent in an enforcement 
adjudication under this part.
    Person means any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency, any State or 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 any legal successor, representative, agent or agency of the 
foregoing; provided that person does not include the Department or the 
United States Nuclear Regulatory Commission. For purposes of civil 
penalty assessment, the term also includes affiliated entities, such as 
a parent corporation.
    Preliminary Notice of Violation means a document issued by the 
Director in which the Director sets forth the preliminary conclusions 
that the respondent has violated or is continuing to violate a DOE 
Nuclear Safety Requirement and includes:
    (i) A statement specifying the DOE Nuclear Safety Requirement to 
which the violation relates;
    (ii) A concise statement of the basis for alleging the violation;
    (iii) Any proposed remedy, including the amount of any proposed 
civil penalty; and
    (iv) A statement explaining the reasoning behind any proposed 
remedy.
    Presiding Officer means the Administrative Law Judge designated to 
be in charge of an enforcement adjudication who shall conduct a fair and 
impartial hearing, assure that the facts are fully elicited, adjudicate 
all issues, avoid delay, and shall have authority to:
    (i) Conduct an adjudicatory hearing under this part;
    (ii) Rule upon motions, requests, and offers of proof, dispose of 
procedural requests, and issue all necessary orders;
    (iii) Exercise the authority set forth in Sec. 820.8;
    (iv) Admit or exclude evidence;
    (v) Hear and decide questions of fact, law, or discretion, except 
for the validity of regulations and interpretations issued by DOE;
    (vi) Require parties to attend conferences for the settlement or 
simplification of the issues, or the expedition of the proceedings;
    (vii) Draw adverse inferences against a party that fails to comply 
with his orders;
    (viii) Do all other acts and take all measures necessary for the 
maintenance of order and for the efficient, fair and impartial 
adjudication of issues arising in proceedings governed by these rules.
    Remedy means any action necessary or appropriate to rectify, 
prevent, or penalize a violation of the Act, a Nuclear Statute, or a DOE 
Nuclear Safety

[[Page 382]]

Requirements, including the assessment of civil penalties, the 
requirement of specific actions, or the modification, suspension or 
recision of a contract.
    Respondent means any person to whom the Director addresses a Notice 
of Violation.
    Secretarial Officer means the Assistant Secretary or Office Director 
who is primarily responsible for the conduct of an activity under the 
Act. With regard to activities and facilities covered under E.O. 12344, 
42 U.S.C. 7158 note, pertaining to Naval nuclear propulsion, Secretarial 
Officer shall mean the Deputy Assistant Secretary for Naval Reactors.
    Secretary means the Secretary of Energy or his designee.
    (b) Terms defined in the Act and not defined in these rules are used 
consistent with the meanings given in the Act.
    (c) As used in this part, words in the singular also include the 
plural and words in the masculine gender also include the feminine and 
vice versa, as the case may require.



Sec. 820.3  Separation of functions.

    (a) Separation of functions. After a respondent requests an on-the-
record adjudication of an assessment of a civil penalty contained in a 
Final Notice of Violation, no person shall participate in a decision-
making function in an enforcement proceeding if he has been, is or will 
be responsible for an investigative or prosecutorial function related to 
that proceeding or if he reports to the person responsible for the 
investigative or prosecutorial function.
    (b) Director. The Director shall be responsible for the 
investigation and prosecution of violations of the DOE Nuclear Safety 
Requirements. After the request for an enforcement adjudication, the 
Director shall not discuss ex parte the merits of the proceeding with a 
DOE Official or any person likely to advise the DOE Official in the 
decision of the proceeding.
    (c) Presiding Officer. A Presiding Officer shall perform no duties 
inconsistent with his responsibilities as a Presiding Officer, and will 
not be responsible to or subject to the supervision or direction of any 
officer or employee engaged in the performance of an investigative or 
prosecutorial function. The Presiding Officer may not consult any person 
other than a member of his staff or a special assistant on any fact at 
issue unless on notice and opportunity for all parties to participate, 
except as required for the disposition of ex parte matters as authorized 
by law.



Sec. 820.4  Conflict of interest.

    A DOE Official may not perform functions provided for in this part 
regarding any matter in which he has a financial interest or has any 
relationship that would make it inappropriate for him to act. A DOE 
Official shall withdraw at any time from any action in which he deems 
himself disqualified or unable to act for any reason. Any interested 
person may at any time request the General Counsel to disqualify a DOE 
Official or request that the General Counsel disqualify himself. In the 
case of an enforcement adjudication, a motion to disqualify shall be 
made to the Presiding Officer. The request shall be supported by 
affidavits setting forth the grounds for disqualification of the DOE 
Official. A decision shall be made as soon as practicable and 
information may be requested from any person concerning the matter. If a 
DOE Official is disqualified or withdraws from the proceeding, a 
qualified individual who has none of the infirmities listed in this 
section shall replace him.



Sec. 820.5  Service.

    (a) General rule. Any document filed with the Docketing Clerk must 
be served on the addressee of the document and shall not be considered 
filed until service is complete and unless accompanied by proof of 
service; provided that the filing with the Docketing Clerk of any 
document addressed to the DOE Official shall be considered service on 
the DOE Official.
    (b) Service in an Enforcement Adjudication. Any document filed in an 
enforcement adjudication must be served on all other participants in the 
adjudication.
    (c) Who may be served. Any paper required to be served upon a person 
shall be served upon him or upon the representative designated by him or 
by law to receive service of papers. When

[[Page 383]]

an attorney has entered an appearance on behalf of a person, service 
must be made upon the attorney of record.
    (d) How service may be made. Service may be made by personal 
delivery, by first class, certified or registered mail or as otherwise 
authorized or required by the DOE Official. The DOE Official may require 
service by express mail.
    (e) When service is complete. Service upon a person is complete:
    (1) By personal delivery, on handing the paper to the individual, or 
leaving it at his office with his clerk or other person in charge or, if 
there is no one in charge, leaving it in a conspicuous place therein or, 
if the office is closed or the person to be served has no office, 
leaving it at his usual place of residence with some person of suitable 
age and discretion then residing there;
    (2) By mail, on deposit in the United States mail, properly stamped 
and addressed; or
    (3) By any other means authorized or required by the DOE Official.
    (f) Proof of service. Proof of service, stating the name and address 
of the person on whom served and the manner and date of service, shall 
be shown for each document filed, and may be made by:
    (1) Written acknowledgement of the person served or his counsel;
    (2) The certificate of counsel if he has made the service;
    (3) The affidavit of the person making the service; or
    (4) Any other means authorized or required by the DOE Official.
    (g) Deemed service. If a document is deemed filed under this part, 
then the service requirements shall be deemed satisfied when the 
document is deemed filed.



Sec. 820.6  Computation and extension of time.

    (a) Computation. In computing any period of time set forth in this 
part, except as otherwise provided, the day of the event from which the 
designated period begins to run shall not be included. Saturdays, 
Sundays, and Federal legal holidays shall be included. When a stated 
time expires on a Saturday, Sunday or Federal legal holiday, the stated 
time period shall be extended to include the next business day.
    (b) Extensions of time. A DOE Official may grant an extension of any 
time period set forth in this part.
    (c) Service by mail. Where a pleading or document is served by mail, 
five (5) days shall be added to the time allowed by these rules for the 
filing of a responsive pleading or document. Where a pleading or 
document is served by express mail, only two (2) days shall be added.



Sec. 820.7  Questions of policy or law.

    (a) Certification. There shall be no interlocutory appeal from any 
ruling order, or action decision of a DOE Official except as permitted 
by this section. A Presiding Officer in an enforcement adjudication may 
certify, in his discretion, a question to the Secretary, when the order 
or ruling involves an important question of law or policy concerning 
which there is substantial grounds for difference of opinion, and either 
an immediate decision will materially advance the ultimate termination 
of the proceeding, or subsequent review will be inadequate or 
ineffective.
    (b) Decision. The certified question shall be decided as soon as 
practicable. If the Secretary determines that the question was 
improvidently certified, or if he takes no action within thirty days of 
the certification, the certification is dismissed. The Secretary may 
decide the question on the basis of the submission made by the Presiding 
Officer or may request further information from any person.



Sec. 820.8  Evidentiary matters.

    (a) General. A DOE Official may obtain information or evidence for 
the full and complete investigation of any matter related to a DOE 
nuclear activity or for any decision required by this part. A DOE 
Official may sign, issue and serve subpoenas; administer oaths and 
affirmations; take sworn testimony; compel attendance of and sequester 
witnesses; control dissemination of any record of testimony taken 
pursuant to this section; subpoena and reproduce books, papers, 
correspondence, memoranda, contracts, agreements, or other relevant 
records or

[[Page 384]]

tangible evidence including, but not limited to, information retained in 
computerized or other automated systems in possession of the subpoenaed 
person.
    (b) Special Report Orders. A DOE Official may issue a Special Report 
Order (SRO) requiring any person involved in a DOE nuclear activity or 
otherwise subject to the jurisdiction of DOE to file a special report 
providing information relating to a DOE Nuclear Safety Requirement, the 
Act, or a Nuclear Statute, including but not limited to written answers 
to specific questions. The SRO may be in addition to any other reports 
required by this part.
    (c) Extension of Time. The DOE Official who issues a subpoena or SRO 
pursuant to this section, for good cause shown, may extend the time 
prescribed for compliance with the subpoena or SRO and negotiate and 
approve the terms of satisfactory compliance.
    (d) Reconsideration. Prior to the time specified for compliance, but 
in no event more than 10 days after the date of service of the subpoena 
or SRO, the person upon whom the document was served may request 
reconsideration of the subpoena or SRO with the DOE Official who issued 
the document. If the subpoena or SRO is not modified or rescinded within 
10 days of the date of the filing of the request, the subpoena or SRO 
shall be effective as issued and the person upon whom the document was 
served shall comply with the subpoena or SRO within 20 days of the date 
of the filing. There is no administrative appeal of a subpoena or SRO.
    (e) Service. A subpoena or SRO shall be served in the manner set 
forth in Sec. 820.5, except that service by mail must be made by 
registered or certified mail.
    (f) Fees. (1) A witness subpoenaed by a DOE Official shall be paid 
the same fees and mileage as paid to a witness in the district courts of 
the United States.
    (2) If a subpoena is issued at the request of a person other than an 
officer or agency of the United States, the witness fees and mileage 
shall be paid by the person who requested the subpoena. However, at the 
request of the person, the witness fees and mileage shall be paid by the 
DOE if the person shows:
    (i) The presence of the subpoenaed witness will materially advance 
the proceeding; and
    (ii) The person who requested that the subpoena be issued would 
suffer a serious hardship if required to pay the witness fees and 
mileage. The DOE Official issuing the subpoena shall make the 
determination required by this subsection.
    (g) Enforcement. If any person upon whom a subpoena or SRO is served 
pursuant to this section, refuses or fails to comply with any provision 
of the subpoena or SRO, an action may be commenced in the United States 
District Court to enforce the subpoena or SRO.
    (h) Certification. (1) Documents produced in response to a subpoena 
shall be accompanied by the sworn certification, under penalty of 
perjury, of the person to whom the subpoena was directed or his 
authorized agent that a diligent search has been made for each document 
responsive to the subpoena, and to the best of his knowledge, 
information, and belief all such documents responsive to the subpoena 
are being produced unless withheld on the grounds of privilege pursuant 
to paragraph (i) of this section.
    (2) Any information furnished in response to an SRO shall be 
accompanied by the sworn certification under penalty of perjury of the 
person to whom it was directed or his authorized agent who actually 
provides the information that to the best of his knowledge, information 
and belief a diligent effort has been made to provide all information 
required by the SRO, and all information furnished is true, complete, 
and correct unless withheld on grounds of privilege pursuant to 
paragraph (i) of this section.
    (3) If any document responsive to a subpoena is not produced or any 
information required by an SRO is not furnished, the certification shall 
include a statement setting forth every reason for failing to comply 
with the subpoena or SRO.
    (i) Withheld information. If a person to whom a subpoena or SRO is 
directed

[[Page 385]]

withholds any document or information because of a claim of attorney-
client or other privilege, the person submitting the certification 
required by paragraph (h) of this section also shall submit a written 
list of the documents or the information withheld indicating a 
description of each document or information, the date of the document, 
each person shown on the document as having received a copy of the 
document, each person shown on the document as having prepared or been 
sent the document, the privilege relied upon as the basis for 
withholding the document or information, a memorandum of law supporting 
the claim of privilege, and an identification of the person whose 
privilege is being asserted.
    (j) Statements/testimony.
    (1) If a person's statement/testimony is taken pursuant to a 
subpoena, the DOE Official shall determine whether the statement/
testimony shall be recorded and the means by which it is recorded.
    (2) A person whose statement/testimony is recorded may procure a 
copy of the transcript by making a written request for a copy and paying 
the appropriate fees. Upon proper identification, any potential witness 
or his attorney has the right to inspect the official transcript of the 
witness' own statement or testimony.
    (k) Sequestration. The DOE Official may sequester any person who 
furnishes documents or gives testimony. Unless permitted by the DOE 
Official, neither a witness nor his attorney shall be present during the 
examination of any other witnesses.
    (l) Attorney. (1) Any person whose statement or testimony is taken 
may be accompanied, represented and advised by his attorney; provided 
that, if the witness claims a privilege to refuse to answer a question 
on the grounds of self-incrimination, the witness must assert the 
privilege personally.
    (2) The DOE Official shall take all necessary action to regulate the 
course of testimony and to avoid delay and prevent or restrain 
contemptuous or obstructionist conduct or contemptuous language. The DOE 
Official may take actions as the circumstances may warrant in regard to 
any instances where any attorney refuses to comply with directions or 
provisions of this section.



Sec. 820.9  Special assistant.

    A DOE Official may appoint a person to serve as a special assistant 
to assist the DOE Official in the conduct of any proceeding under this 
part. Such appointment may occur at any appropriate time. A special 
assistant shall be subject to the disqualification provisions in 
Sec. 820.5. A special assistant may perform those duties assigned by the 
DOE Official, including but not limited to, serving as technical 
interrogators, technical advisors and special master.



Sec. 820.10  Office of the docketing clerk.

    (a) Docket. The Docketing Clerk shall maintain a docket for 
enforcement actions commencing with the issuance of a Preliminary Notice 
of Violation, interpretations issued pursuant to subpart D of this part, 
exemptions issued pursuant to subpart E of this part, and any other 
matters designated by the Secretary. A docket for an enforcement action 
shall contain all documents required to be filed in the proceeding.
    (b) Public inspection. Subject to the provisions of law restricting 
the public disclosure of certain information, any person may, during 
Department business hours, inspect and copy any document filed with the 
Docketing Clerk. The cost of duplicating documents shall be borne by the 
person seeking copies of such documents. The DOE Official may waive this 
cost in appropriate cases.
    (c) Transcript. Except as otherwise provided in this part, after the 
filing of a Preliminary Notice of Violation, all hearings, conferences, 
and other meetings in the enforcement process shall be transcribed 
verbatim. A copy of the transcript shall be filed with the Docketing 
Clerk promptly. The Docketing Clerk shall serve all participants with 
notice of the availability of the transcript and shall furnish the 
participants with a copy of the transcript upon payment of the cost of 
reproduction, unless a participant can show that the cost is unduly 
burdensome.



Sec. 820.11  Information requirements.

    (a) Any information pertaining to a nuclear activity provided to DOE 
by

[[Page 386]]

any person or maintained by any person for inspection by DOE shall be 
complete and accurate in all material respects.
    (b) No person involved in a DOE nuclear activity shall conceal or 
destroy any information concerning a violation of a DOE Nuclear Safety 
Requirement, a Nuclear Statute, or the Act.



Sec. 820.12  Classified, confidential, and controlled information

    (a) General rule. The DOE Official in charge of a proceeding under 
this part may utilize any procedures deemed appropriate to safeguard and 
prevent disclosure of classified, confidential, and controlled 
information, including Restricted Data and National Security 
Information, to unauthorized persons, with minimum impairment of rights 
and obligations under this part.
    (b) Obligation to protect restricted information. Nothing in this 
part shall relieve any person from safeguarding classified, 
confidential, and controlled information, including Restricted Data or 
National Security Information, in accordance with the applicable 
provisions of federal statutes and the rules, regulations, and orders of 
any federal agency.



                     Subpart B--Enforcement Process



Sec. 820.20  Purpose and scope.

    (a) Purpose. This subpart establishes the procedures for 
investigating the nature and extent of violations of the DOE Nuclear 
Safety Requirements, for determining, whether a violation has occurred, 
for imposing an appropriate remedy, and for adjudicating the assessment 
of a civil penalty.
    (b) Basis for civil penalties. DOE may assess civil penalties 
against any person subject to the provisions of this part who has 
entered into an agreement of indemnification under 42 U.S.C. 2210(d) (or 
any subcontractor or supplier thereto), unless exempted from civil 
penalties as provided in paragraph (c) of this section, on the basis of 
a violation of:
    (1) Any DOE Nuclear Safety Requirement set forth in the Code of 
Federal Regulations;
    (2) Any Compliance Order issued pursuant to subpart C of this part; 
or
    (3) Any program, plan or other provision required to implement any 
requirement or order identified in paragraphs (b)(1) or (b)(2) of this 
section.
    (c) Exemptions. The following contractors, and subcontractors and 
suppliers thereto, are exempt from the assessment of civil penalties 
under this subpart with respect to the activities specified below:
    (1) The University of Chicago for activities associated with Argonne 
National Laboratory;
    (2) The University of California for activities associated with Los 
Alamos National Laboratory, Lawrence Livermore National Laboratory, and 
Lawrence Berkeley National Laboratory;
    (3) American Telephone and Telegraph Company and its subsidiaries 
for activities associated with Sandia National Laboratory;
    (4) University Research Association, Inc. for activities associated 
with FERMI National Laboratory;
    (5) Princeton University for activities associated with Princeton 
Plasma Physics Laboratory;
    (6) The Associated Universities, Inc. for activities associated with 
the Brookhaven National Laboratory; and
    (7) Battelle Memorial Institute for activities associated with 
Pacific Northwest Laboratory.
    (d) Nonprofit educational institutions. Any educational institution 
that is considered nonprofit under the United States Internal Revenue 
Code shall receive automatic remission of any civil penalty assessed 
under this part.



Sec. 820.21  Investigations.

    (a) The Director may initiate and conduct investigations and 
inspections relating to the scope, nature and extent of compliance by a 
person with the Act and the DOE Nuclear Safety Requirements and take 
such action as he deems necessary and appropriate to the conduct of the 
investigation or inspection, including any action pursuant to 
Sec. 820.8.
    (b) Any person may request the Director to initiate an investigation 
or inspection pursuant to paragraph (a) of this section. A request for 
an investigation or inspection shall set forth the subject matter or 
activity to be investigated or inspected as fully as possible

[[Page 387]]

and include supporting documentation and information. No particular 
forms or procedures are required.
    (c) Any person who is requested to furnish documentary evidence, 
information or testimony in an investigation or during an inspection 
shall be informed, upon written request, of the general purpose of the 
investigation or inspection.
    (d) Information or documents that are obtained during any 
investigation or inspection shall not be disclosed unless the Director 
directs or authorizes the public disclosure of the investigation. Upon 
such authorization, the information or documents are a matter of public 
record and disclosure is not precluded by the Freedom of Information 
Act, 5 U.S.C. 552 and 10 CFR part 1004. A request for confidential 
treatment of information for purposes of the Freedom of Information Act 
shall not prevent disclosure by the Director if disclosure is determined 
to be in the public interest and otherwise permitted or required by law.
    (e) During the course of an investigation or inspection any person 
may submit at any time any document, statement of facts or memorandum of 
law for the purpose of explaining the person's position or furnish 
information which the person considers relevant to a matter or activity 
under investigation or inspection.
    (f) If facts disclosed by an investigation or inspection indicate 
that further action is unnecessary or unwarranted, the investigation may 
be closed without prejudice to further investigation or inspection by 
the Director at any time that circumstances so warrant.



Sec. 820.22  Informal conference.

    The Director may convene an informal conference to discuss any 
situation that might be a violation of the Act or a DOE Nuclear Safety 
Requirement, its significance and cause, any correction taken or not 
taken by the person, any mitigating or aggravating circumstances, and 
any other useful information. The Director may compel a person to attend 
the conference. This conference will not normally be open to the public 
and there shall be no transcript.



Sec. 820.23  Consent order.

    (a) Settlement policy. DOE encourages settlement of an enforcement 
proceeding at any time if the settlement is consistent with the 
objectives of the Act and the DOE Nuclear Safety Requirements. The 
Director and a person may confer at any time concerning settlement. 
These settlement conferences shall not be open to the public and there 
shall be no transcript.
    (b) Consent order. Notwithstanding any other provision of this part, 
DOE may at any time resolve any or all issues in an outstanding 
enforcement proceeding with a Consent Order. A Consent Order must be 
signed by the Director and the person who is its subject, or a duly 
authorized representative, must indicate agreement to the terms 
contained therein and must be filed. A Consent Order need not constitute 
an admission by any person that the Act or a DOE Nuclear Safety 
Requirement has been violated, nor need it constitute a finding by the 
DOE that such person has violated the Act or a DOE Nuclear Safety 
Requirement. A Consent Order shall, however, set forth the relevant 
facts which form the basis for the Order and what remedy, if any, is 
imposed.
    (c) Effect on enforcement adjudication. If a Consent Order is signed 
after the commencement of an enforcement adjudication, the adjudication 
of the issues subject to the Consent Order shall be stayed until the 
completion of the Secretarial Review Process. If the Consent Order 
becomes a Final Order, the adjudication shall be terminated or modified 
as specified in the Order.
    (d) Secretarial review. A Consent Order shall become a Final Order 
30 days after it is filed unless the Secretary files a rejection of the 
Consent Order or a Modified Consent Order. A Modified Consent Order 
shall become a Final Order if the Director and the person who is its 
subject sign it within 15 days of its filing.



Sec. 820.24  Preliminary notice of violation.

    (a) If the Director has reason to believe a person has violated or 
is continuing to violate a provision of the Act or a DOE Nuclear Safety 
Requirement, he may file a Preliminary Notice

[[Page 388]]

of Violation. The Notice and any transmittal documents shall contain 
sufficient information to fairly apprise the respondent of the facts and 
circumstances of the alleged violations and the basis of any proposed 
remedy, and to properly indicate what further actions are necessary by 
or available to respondent.
    (b) Within 30 days after the filing of a Preliminary Notice of 
Violation, the respondent shall file a reply.
    (c) The reply shall be in writing and signed by the person filing 
it. The reply shall contain a statement of all relevant facts pertaining 
to the situation that is the subject of the Notice. The reply shall 
state any facts, explanations and arguments which support a denial that 
a violation has occurred as alleged; demonstrate any extenuating 
circumstances or other reason why the proposed remedy should not be 
imposed or should be mitigated; and furnish full and complete answers to 
the questions set forth in the Notice. Copies of all relevant documents 
shall be submitted with the reply. The reply shall include a discussion 
of the relevant authorities which support the position asserted, 
including rulings, regulations, interpretations, and previous decisions 
issued by DOE.
    (d) The respondent may terminate an enforcement action if the reply 
agrees to comply with the proposed remedy and waives any right to 
contest the Notice or the remedy. If a respondent elects this option, 
the Preliminary Notice of Violation shall be deemed a Final Order upon 
the filing of the reply.



Sec. 820.25  Final notice of violation.

    (a) General rule. If, after reviewing the reply submitted by the 
respondent, the Director determines that a person violated or is 
continuing to violate a provision of the Act or a DOE Nuclear Safety 
Requirement, he may file a Final Notice of Violation. The Final Notice 
shall concisely state the determined violation, any designated penalty, 
and further actions necessary by or available to respondent.
    (b) Effect of final notice. (1) If a Final Notice of Violation does 
not contain a civil penalty, it shall be deemed filed as a Final Order 
15 days after the Final Notice is filed unless the Secretary files a 
Final Order which modifies the Final Notice.
    (2) If a Final Notice of Violation contains a civil penalty, the 
respondent must file within 30 days after the filing of the Final 
Notice:
    (i) A waiver of further proceedings;
    (ii) A request for an on-the-record adjudication; or
    (iii) A notice of intent to seek judicial review.
    (c) Effect of waiver. If a respondent waives further proceedings, 
the Final Notice of Violation shall be deemed a Final Order enforceable 
against the respondent. The respondent must pay any civil penalty set 
forth in the Notice of Violation within 60 days of the filing of waiver 
unless the Director grants additional time.
    (d) Effect of request. If a respondent files a request for an on-
the-record adjudication, then an enforcement adjudication commences.
    (e) Effect of notice of intent. If a respondent files a Notice of 
Intent, the Final Notice of Violation shall be deemed a Final Order 
enforceable against the respondent.
    (f) Amendment. The Director may amend the Final Notice of Violation 
at any time before an action takes place pursuant to paragraph (b) of 
this section. An amendment shall add fifteen days to the time periods 
under paragraph (b) of this section.
    (g) Withdrawal. The Director may withdraw the Final Notice of 
Violation, or any part thereof, at any time before an action under 
paragraph (b) of this section.



Sec. 820.26  Enforcement adjudication.

    If a respondent files a request for an on-the-record adjudication, 
an enforcement adjudication is initiated and the Docketing Clerk shall 
notify the Secretary who shall appoint an Administrative Law Judge to be 
the Presiding Officer.



Sec. 820.27  Answer.

    (a) General. If a respondent files a request for an on-the-record 
adjudication pursuant to Sec. 820.25, a written answer to the Final 
Notice of Violation shall be filed at the same time the request is 
filed.

[[Page 389]]

    (b) Contents of the answer. The answer shall clearly and directly 
admit, deny or explain each of the factual allegations contained in the 
Final Notice of Violation with regard to which respondent has any 
knowledge, information or belief. Where respondent has no knowledge, 
information or belief of a particular factual allegation and so states, 
the allegation is deemed denied. The answer shall also state the 
circumstance or argument that is alleged to constitute the grounds of 
defense and the facts that respondent intends to place at issue.
    (c) Failure to admit, deny, or explain. Failure of respondent to 
admit, deny, or explain any material factual allegation contained in the 
Final Notice of Violation constitutes an admission of the allegation.
    (d) Amendment of the answer. The respondent may amend the answer to 
the Final Notice of Violation upon motion granted by the Presiding 
Officer.



Sec. 820.28  Prehearing actions.

    (a) General. The Presiding Officer shall establish a schedule for 
the adjudication and take such other actions as he determines 
appropriate to conduct the adjudication in a fair and expeditious 
manner.
    (b) Prehearing conference. The Presiding Officer, at any time before 
a hearing begins, may direct the parties and their counsel, or other 
representatives, to appear at a conference before him to consider, as 
appropriate:
    (1) The settlement of the case;
    (2) The simplification of issues and stipulation of facts not in 
dispute;
    (3) The necessity or desirability of amendments to pleadings;
    (4) The exchange of exhibits;
    (5) The limitation of the number of expert or other witnesses;
    (6) Setting a time and place for the hearing; and
    (7) Any other matters that may expedite the disposition of the 
proceeding.
    (c) Exchange of witness lists and documents. Unless otherwise 
ordered by the Presiding Officer, at least five (5) days before any 
prehearing conference, each party shall make available to all other 
parties, as appropriate, the names of the expert and other witnesses it 
intends to call, together with a brief narrative summary of their 
expected testimony, and copies of all documents and exhibits that each 
party intends to introduce into evidence. Documents and exhibits shall 
be marked for identification as ordered by the Presiding Officer. 
Documents that have not been exchanged and witnesses whose names have 
not been exchanged shall not be introduced into evidence or allowed to 
testify without permission of the Presiding Officer. The Presiding 
Officer shall allow the parties reasonable opportunity to review new 
evidence.
    (d) Prehearing conference order. The Presiding Officer shall prepare 
an order incorporating any action taken at the conference. The summary 
shall incorporate any written stipulations or agreements of the parties 
and all rulings and appropriate orders containing directions to the 
parties.
    (e) Alternative to prehearing conference. If a prehearing conference 
is unnecessary or impracticable, the Presiding Officer, on motion or sua 
sponte, may direct the parties to make appropriate filings with him to 
accomplish any of the objectives set forth in this section.
    (f) Other discovery. (1) Except as provided by paragraph (c) of this 
section, further discovery under this section shall be permitted only 
upon determination by the Presiding Officer:
    (i) That such discovery will not in any way unreasonably delay the 
proceeding;
    (ii) That the information to be obtained is not otherwise 
obtainable; and
    (iii) That such information has significant probative value.
    (2) The Presiding Officer shall order depositions upon oral 
questions only upon a showing of good cause and upon a finding that:
    (i) The information sought cannot be obtained by alternative 
methods; or
    (ii) There is substantial reason to believe that relevant and 
probative evidence may otherwise not be preserved for presentation by a 
witness at the hearing.
    (3) Any party to the proceeding desiring an order to take further 
discovery shall make a motion therefor. Such a motion shall set forth:
    (i) The circumstances warranting the taking of the discovery;

[[Page 390]]

    (ii) The nature of the information expected to be discovered; and
    (iii) The proposed time and place where it will be taken. If the 
Presiding Officer determines that the motion should be granted, he shall 
issue an order for the taking of such discovery together with the 
conditions and terms thereof.
    (4) When the information sought to be obtained is within the control 
of one of the parties, failure to comply with an order issued pursuant 
to this paragraph may lead to the inference that the information to be 
discovered would be adverse to the party from whom the information was 
sought, or the issuance of a default order under 820.38.



Sec. 820.29  Hearing.

    (a) General. Except as otherwise provided by this part or the 
Presiding Officer, a hearing shall be conducted in accordance with the 
Federal Rules of Evidence. The Presiding Officer shall have the 
discretion to admit all evidence that is not irrelevant, immaterial, 
unduly repetitious, or otherwise unreliable or of little probative 
value, if he believes the evidence might facilitate the fair and 
expeditious resolution of the proceeding. But such evidence may be 
reasonably limited by the Presiding Officer in scope and length in order 
to permit prompt resolution of the proceeding. In the presentation, 
admission, disposition, and use of evidence, the Presiding Officer shall 
preserve the confidentiality of trade secrets and other commercial and 
financial information, and shall protect classified and unclassified 
controlled nuclear information, as well as any other information 
protected from public disclosure pursuant to law or regulation. The 
confidential, trade secret, or classified or otherwise protected status 
of any information shall not, however, preclude its being introduced 
into evidence. The Presiding Officer may make such orders as may be 
necessary to consider such evidence in camera, including the preparation 
of a supplemental initial decision to address questions of law, fact, or 
discretion that arise out of that portion of the evidence that is 
confidential, includes trade secrets, is classified, or is otherwise 
protected.
    (b) Subpoenas. The attendance of witnesses or the production of 
documentary evidence may be required by subpoena.
    (c) Examination of witnesses. There shall be no direct oral 
testimony by witnesses, except as permitted by the Presiding Officer. In 
lieu of oral testimony, the Presiding Officer shall admit into the 
record as evidence verified written statements of fact or opinion 
prepared by a witness. The admissibility of the evidence contained in 
the statement shall be subject to the same rules as if the testimony 
were produced under oral examination.Before any such statement is read 
or admitted into evidence, the witness shall have delivered a copy of 
the statement to the Presiding Officer and the opposing counsel not less 
than 10 days prior to the date the witness is scheduled to testify. The 
witness presenting the statement shall swear or affirm that the 
statement is true and accurate to the best of his knowledge, 
information, and belief and shall be subject to appropriate oral cross-
examination upon the contents thereof provided such cross-examination is 
not unduly repetitious.
    (d) Burden of presentation; burden of persuasion. The Director has 
the burden of going forward with and of proving that the violation 
occurred as set forth in the Notice of Violation and that the proposed 
civil penalty is appropriate. Following the establishment of a prima 
facie case, respondent shall have the burden of presenting and of going 
forward with any defense to the allegations set forth in the Notice of 
Violation. Each matter of controversy shall be determined by the 
Presiding Officer upon a preponderance of the evidence.



Sec. 820.30  Post-hearing filings.

    Within fifteen days after the filing of the transcript of the 
hearing, or within such longer time as may be fixed by the Presiding 
Officer, any party may file for the consideration of the Presiding 
Officer, proposed findings of fact, conclusions of law, and a proposed 
order, together with briefs in support thereof. Reply briefs may be 
filed within ten days of the filing of briefs. All filings shall be in 
writing, shall be

[[Page 391]]

served upon all parties, and shall contain adequate references to the 
record and authorities relied on.



Sec. 820.31  Initial decision.

    (a) Initial Decision. The Presiding Officer shall file an Initial 
Decision as soon as practicable after the period for filing reply briefs 
under 820.30 has expired. The Initial Decision shall contain findings of 
fact, conclusions regarding all material issues of law or discretion, as 
well as reasons therefor, any remedy and a proposed Final Order. A party 
may file comments on an Initial Decision within fifteen days of its 
filing.
    (b) Amount of civil penalty. If the Presiding Officer determines 
that a violation has occurred and that a civil penalty is appropriate, 
the Initial Decision shall set forth the dollar amount of the civil 
penalty. If the Presiding Officer decides to assess a penalty different 
in amount from the penalty assessed in the Final Notice of Violation, 
the Initial Decision shall set forth the specific reasons for the 
increase or decrease.



Sec. 820.32  Final order.

    (a) Effect of Initial Decision. The Initial Decision shall be deemed 
filed as a Final Order thirty days after the filing of the Initial 
Decision unless the Secretary files a Final Order that modifies the 
Initial Decision or the Secretary files a Notice of Review.
    (b) Notice of review. If the Secretary files a Notice of Review, he 
shall file a Final Order as soon as practicable after completing his 
review. The Secretary may, at his discretion, order additional 
procedures, remand the matter or modify the remedy, including an 
increase or decrease in the amount of the civil penalty from the amount 
recommended to be assessed in the Initial Decision.
    (c) Payment of a civil penalty. The respondent shall pay the full 
amount of any civil penalty assessed in the Final Order within thirty 
(30) days after the Final Order is filed unless otherwise agreed by the 
parties.



Sec. 820.33  Default order.

    (a) Default. The Presiding Officer, upon motion by a party or the 
filing of a Notice of Intent to issue a Default Order sua sponte, may 
find a party to be in default if the party fails to comply with the 
provisions of this part or an order of the Presiding Officer. The 
alleged defaulting party shall have ten days to answer the motion or the 
Notice of Intent. No finding of default shall be made against the 
respondent unless the Director presents sufficient evidence to the 
Presiding Officer to establish a prima facie case against the 
respondent. Default by respondent constitutes, for purposes of the 
pending action only, an admission of all facts alleged in the Final 
Notice of Violation and a waiver of respondent's rights to an on-the-
record adjudication of such factual allegations. Default by the Director 
shall result in an order to dismiss the Final Notice of Violation with 
prejudice.
    (b) Effect of default order. When the Presiding Officer finds a 
default has occurred, he shall file a Default Order against the 
defaulting party. This order shall constitute an Initial Decision.
    (c) Contents of a default order. A Default Order shall include 
findings of fact showing the grounds for the order, conclusions 
regarding all material issues of fact, law or discretion, and the 
remedy.



Sec. 820.34  Accelerated decision.

    (a) General. The Presiding Officer, upon motion of any party or sua 
sponte, may at any time render an Accelerated Decision in favor of the 
Director or the respondent as to all or any part of the adjudication, 
without further hearing or upon such limited additional evidence, such 
as affidavits, as he may require, if no genuine issue of material fact 
exists and a party is entitled to judgment as a matter of law, as to all 
or any part of the adjudication. In addition, the Presiding Officer, 
upon motion of the respondent, may render at any time an Accelerated 
Decision to dismiss an action without further hearing or upon such 
limited additional evidence as he requires, on the basis of failure to 
establish a prima facie case or other grounds that show no right to 
relief on the part of the Director.
    (b) Effect of Accelerated Decision. (1) If an Accelerated Decision 
is rendered as to all the issues and claims in the adjudication, the 
decision constitutes an

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Initial Decision of the Presiding Officer, and shall be filed with the 
Docketing Clerk.
    (2) If an Accelerated Decision is rendered on less than all issues 
or claims in the adjudication, the Presiding Officer shall determine 
what material facts exist without substantial controversy and what 
material facts remain controverted in good faith. He shall thereupon 
file an interlocutory order specifying the facts that appear 
substantially uncontroverted, and the issues and claims upon which the 
adjudication will proceed.



Sec. 820.35  Ex parte discussions.

    At no time after a respondent has requested an on-the-record 
adjudication of the assessment of a civil penalty shall a DOE Official, 
or any person who is likely to advise a DOE Official in the decision on 
the case, discuss ex parte the merits of the proceeding with any 
interested person outside DOE, with any DOE staff member who performs a 
prosecutorial or investigative function in such proceeding or a 
factually related proceeding, or with any representative of such person. 
Any ex parte memorandum or other communication addressed to a DOE 
Official during the pendency of the proceeding and relating to the 
merits thereof, by or on behalf of any party shall be regarded as 
argument made in the proceeding and shall be served upon all other 
parties. Any oral communication shall be set forth in a written 
memorandum and served on all other parties. The other parties shall be 
given an opportunity to reply to such memorandum or communication.



Sec. 820.36  Filing, form, and service of documents.

    (a) Filing in an enforcement proceeding. The original and three 
copies of any document in an enforcement proceeding shall be filed with 
the Docketing Clerk commencing with the filing of a Preliminary Notice 
of Violation.
    (b) Form of documents in an enforcement proceeding. (1) Except as 
provided herein, or by order of the DOE Official, there are no specific 
requirements as to the form of documents filed in an enforcement 
proceeding.
    (2) The first page of every document shall contain a caption 
identifying the respondent and the docket number.
    (3) The original of any document (other than exhibits) shall be 
signed by the person filing it or by his counsel or other 
representative. The signature constitutes a representation by the signer 
that he has read the pleading, letter or other document, that to the 
best of his knowledge, information and belief, the statements made 
therein are true, and that it is not interposed for delay.
    (4) The initial document filed by any person shall contain his name, 
address and telephone number. Any changes in this information shall be 
communicated promptly to the Docketing Clerk and all participants to the 
proceeding. A person who fails to furnish such information and any 
changes thereto shall be deemed to have waived his right to notice and 
service under this part.
    (5) The Docketing Clerk may refuse to file any document that does 
not comply with this section. Written notice of such refusal, stating 
the reasons therefor, shall be promptly given to the person submitting 
the document. Such person may amend and resubmit any document refused 
for filing.



Sec. 820.37  Participation in an adjudication.

    (a) Parties. In an enforcement adjudication, the Director and the 
respondent shall be the only parties; provided that the Presiding 
Officer may permit a person to intervene as a party if the person 
demonstrates it could be liable in the event a civil penalty is 
assessed.
    (b) Appearances. Any party to an enforcement adjudication may appear 
in person or by counsel or other representative. A partner may appear on 
behalf of a partnership and an officer may appear on behalf of a 
corporation. Persons who appear as counsel or other representative must 
conform to the standards of conduct and ethics required of practitioners 
before the courts of the United States.
    (c) Amicus Curiae. Persons not parties to an enforcement 
adjudication who wish to file briefs may so move. The motion shall 
identify the interest of the person and shall state the reasons

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why the proposed amicus brief is desirable. If the motion is granted, 
the Presiding Officer shall issue an order setting the time for filing 
such brief. An amicus curiae is eligible to participate in any briefing 
after his motion is granted, and shall be served with all briefs, reply 
briefs, motions, and orders relating to issues to be briefed.



Sec. 820.38  Consolidation and severance.

    (a) Consolidation. The Presiding Officer may, by motion or sua 
sponte, consolidate any or all matters at issue in two or more 
enforcement adjudications under this part where there exists common 
parties or common questions of fact or law, consolidation would expedite 
and simplify consideration of the issues, and consolidation would not 
adversely affect the rights of parties engaged in otherwise separate 
adjudications.
    (b) Severance. The Presiding Officer may, by motion or sua sponte, 
for good cause shown order any enforcement adjudication severed with 
respect to any or all parties or issues.



Sec. 820.39  Motions.

    (a) General. All motions in an enforcement adjudication except those 
made orally, shall be in writing, state the grounds therefor with 
particularity, set forth the relief or order sought, and be accompanied 
by any affidavit, certificate, other evidence, or legal memorandum 
relied upon.
    (b) Answer to motions. Except as otherwise specified by a particular 
provision of this part or by the Presiding Officer, a party shall have 
the right to file a written answer to the motion of another party within 
10 days after the filing of such motion. The answer shall be accompanied 
by any affidavit, certificate, other evidence, or legal memorandum 
relied upon. If no answer is filed within the designated period, the 
party may be deemed to have waived any objection to the granting of the 
motion. The Presiding Officer may set a shorter or longer time for an 
answer, or make such other orders concerning the disposition of motions 
as he deems appropriate.
    (c) Decision. The Presiding Officer shall rule on a motion as soon 
as practicable after the filing of the answer. The decision of the 
Presiding Officer on any motion shall not be subject to administrative 
appeal.



                      Subpart C--Compliance Orders



Sec. 820.40  Purpose and scope.

    This subpart provides for the issuance of Compliance Orders to 
prevent, rectify or penalize violations of the Act, a Nuclear Statute, 
or a DOE Nuclear Safety Requirement and to require action consistent 
with the Act, a Nuclear Statute, or a DOE Nuclear Safety Requirement.



Sec. 820.41  Compliance order.

    The Secretary may issue to any person involved in a DOE nuclear 
activity a Compliance Order that:
    (a) Identifies a situation that violates, potentially violates, or 
otherwise is inconsistent with the Act, a Nuclear Statute, or a DOE 
Nuclear Safety Requirement;
    (b) Mandates a remedy or other action; and,
    (c) States the reasons for the remedy or other action.



Sec. 820.42  Final order.

    A Compliance Order is a Final Order that constitutes a DOE Nuclear 
Safety Requirement that is effective immediately unless the Order 
specifies a different effective date.



Sec. 820.43  Appeal.

    Within fifteen days of the issuance of a Compliance Order, the 
recipient of the Order may request the Secretary to rescind or modify 
the Order. A request shall not stay the effectiveness of a Compliance 
Order unless the Secretary issues an order to that effect.



                       Subpart D--Interpretations



Sec. 820.50  Purpose and scope.

    This subpart provides for interpretations of the Act, Nuclear 
Statutes, and DOE Nuclear Safety Requirements. Any written or oral 
response to any written or oral question which is not provided pursuant 
to this subpart does not constitute an interpretation and does not 
provide any basis for action inconsistent with the Act, a Nuclear

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Statute, or a DOE Nuclear Safety Requirement.



Sec. 820.51  General Counsel.

    The General Counsel shall be the DOE Official responsible for 
formulating and issuing any interpretation concerning the Act, a Nuclear 
Statute or a DOE Nuclear Safety Requirement.



Sec. 820.52  Procedures.

    The General Counsel may utilize any procedure which he deems 
appropriate to comply with his responsibilities under this subpart. All 
interpretations issued under this subpart must be filed with the Office 
of the Docketing Clerk which shall maintain a docket for 
interpretations.



                       Subpart E--Exemption Relief



Sec. 820.60  Purpose and scope.

    This subpart provides for exemption relief from provisions of DOE 
Nuclear Safety Requirements at nuclear facilities.



Sec. 820.61  Secretarial officer.

    The Secretarial Officer who is primarily responsible for the 
activity to which a DOE Nuclear Safety Requirement relates may grant a 
temporary or permanent exemption from that requirement as requested by 
any person subject to its provisions; provided that, the Secretarial 
Officer responsible for environment, safety and health matters shall 
exercise this authority with respect to provisions relating to 
radiological protection of workers, the public and the environment. This 
authority may not be further delegated.



Sec. 820.62  Criteria.

    The criteria for granting an exemption to a DOE Nuclear Safety 
Requirement are determinations that the exemption:
    (a) Would be authorized by law;
    (b) Would not present an undue risk to public health and safety, the 
environment, or facility workers;
    (c) Would be consistent with the safe operation of a DOE nuclear 
facility; and
    (d) Involves special circumstances, including the following:
    (1) Application of the requirement in the particular circumstances 
conflicts with other requirements; or
    (2) Application of the requirement in the particular circumstances 
would not serve or is not necessary to achieve its underlying purpose, 
or would result in resource impacts which are not justified by the 
safety improvements; or
    (3) Application of the requirement would result in a situation 
significantly different than that contemplated when the requirement was 
adopted, or that is significantly different from that encountered by 
others similarly situated; or
    (4) The exemption would result in benefit to human health and safety 
that compensates for any detriment that may result from the grant of the 
exemption; or
    (5) Circumstances exist which would justify temporary relief from 
application of the requirement while taking good faith action to achieve 
compliance; or
    (6) There is present any other material circumstance not considered 
when the requirement was adopted for which it would be in the public 
interest to grant an exemption.



Sec. 820.63  Procedures.

    The Secretarial Officer shall utilize any procedures deemed 
necessary and appropriate to comply with his responsibilities under this 
subpart. All exemption decisions must set forth in writing the reasons 
for granting or denying the exemption, and if granted, the basis for the 
determination that the criteria in Sec. 820.62 have been met and the 
terms of the exemption. All exemption decisions must be filed with the 
Office of the Docketing Clerk which shall maintain a docket for 
exemption decisions issued pursuant to this subpart.



Sec. 820.64  Terms and conditions.

    An exemption may contain appropriate terms and conditions including, 
but not limited to, provisions that :
    (a) Limit its duration;
    (b) Require alternative action;
    (c) Require partial compliance; or
    (d) Establish a schedule for full or partial compliance.

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Sec. 820.65  Implementation plan.

    With respect to a DOE Nuclear Safety Requirement for which there is 
no regulatory provision for an implementation plan or schedule, an 
exemption may be granted to establish an implementation plan which 
reasonably demonstrates that full compliance with the requirement will 
be achieved within two years of the effective date of the requirement 
without a determination of special circumstances under Sec. 820.62(d).



Sec. 820.66  Appeal.

    Within fifteen (15) days of the filing of an exemption decision by a 
Secretarial Officer, the person requesting the exemption may file a 
Request to Review with the Secretary, or the Secretary may file, sua 
sponte, a Notice of Review. The Request to Review shall state 
specifically the respects in which the exemption determination is 
claimed to be erroneous, the grounds of the request, and the relief 
requested.



Sec. 820.67  Final order.

    If no filing is made under Sec. 820.66, an exemption decision 
becomes a Final Order fifteen (15) days after it is filed by a 
Secretarial Officer. If filing is made under Sec. 820.66, an exemption 
decision becomes a Final Order 45 days after it is filed by a 
Secretarial Officer, unless the Secretary stays the effective date or 
issues a Final Order that modifies the decision.



                      Subpart F--Criminal Penalties



Sec. 820.70  Purpose and scope.

    This subpart provides for the identification of criminal violations 
of the Act or DOE Nuclear Safety Requirements and the referral of such 
violations to the Department of Justice.



Sec. 820.71  Standard.

    If a person subject to the Act or the DOE Nuclear Safety 
Requirements has, by act or omission, knowingly and willfully violated, 
caused to be violated, attempted to violate, or conspired to violate any 
section of the Act or any applicable DOE Nuclear Safety Requirement, the 
person shall be subject to criminal sanctions under the Act.



Sec. 820.72  Referral to the Attorney General.

    If there is reason to believe a criminal violation of the Act or the 
DOE Nuclear Safety Requirements has occurred, DOE may refer the matter 
to the Attorney General of the United States for investigation or 
prosecution.



                       Subpart G--Civil Penalties

    Source: 62 FR 46184, Sept. 2, 1997, unless otherwise noted.



Sec. 820.80  Basis and purpose.

    This subpart implements the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (the Act) (Pub. L. 101-410), as amended by the 
Debt Collection Improvement Act of 1996 (Pub. L. 104-134, section 
31001). 28 U.S.C. 2461 note. As amended, the Act requires each agency 
head to adjust by regulation each civil monetary penalty provided by law 
within the jurisdiction of the Federal agency by the inflation 
adjustment specified in 28 U.S.C. 2461 note. This subpart increases the 
civil penalty amount specified in 42 U.S.C. 2282a.



Sec. 820.81  Amount of penalty.

    Any person subject to a penalty under 42 U.S.C. 2282a shall be 
subject to a civil penalty in an amount not to exceed $110,000 for each 
such violation. If any violation under 42 U.S.C. 2282a is a continuing 
one, each day of such violation shall constitute a separate violation 
for the purpose of computing the applicable civil penalty.

     Appendix A to Part 820--General Statement of Enforcement Policy

                             I. Introduction

    (a) This policy statement sets forth the general framework through 
which the U.S. Department of Energy (DOE) will seek to ensure compliance 
with its enforceable nuclear safety regulations and orders (hereafter 
collectively referred to as DOE Nuclear Safety Requirements) and, in 
particular, exercise the civil penalty authority provided to DOE in the 
Price Anderson Amendments Act of 1988, 42 U.S.C. 2282a (PAAA). The 
policy set forth herein is applicable to violations of DOE Nuclear 
Safety Requirements by DOE contractors who are indemnified under the 
Price Anderson Act, 42 U.S.C. 2210(d), and their subcontractors and 
suppliers (hereafter

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collectively referred to as DOE contractors). This policy statement is 
not a regulation and is intended only to provide general guidance to 
those persons subject to DOE's Nuclear Safety Requirements as specified 
in the PAAA. It is not intended to establish a ``cookbook'' approach to 
the initiation and resolution of situations involving noncompliance with 
DOE Nuclear Safety Requirements. Rather, DOE intends to consider the 
particular facts of each noncompliance situation in determining whether 
enforcement sanctions are appropriate and, if so, the appropriate 
magnitude of those sanctions. DOE may well deviate from this policy 
statement when appropriate in the circumstances of particular cases. 
This policy statement is not applicable to activities and facilities 
covered under E.O. 12344, 42 U.S.C. 7158 note, pertaining to Naval 
nuclear propulsion.
    (b) Both the Department of Energy Organization Act, 42 U.S.C. 7101, 
and the Atomic Energy Act of 1954, as amended, 42 U.S.C. 2011, require 
DOE to protect the public health and safety, as well as the safety of 
workers at DOE facilities, in conducting its nuclear activities, and 
grant DOE broad authority to achieve this goal.
    (c) The DOE goal in the compliance arena is to enhance and protect 
the radiological health and safety of the public and worker at DOE 
facilities by fostering a culture among both the DOE line organizations 
and the contractors that activity seeks to attain and sustain compliance 
with DOE Nuclear Safety Requirements. The enforcement program and policy 
have been developed with the express purpose of achieving safety 
inquisitiveness and voluntary compliance. DOE will establish effective 
administrative processes and positive incentives to the contractors for 
the open and prompt identification and reporting of noncompliances, and 
the initiation of comprehensive corrective actions to resolve both the 
noncompliance conditions and the program or process deficiencies that 
led to noncompliance.
    (d) In the development of the DOE enforcement policy, DOE recognizes 
that the reasonable exercise of its enforcement authority can help to 
reduce the likelihood of serious incidents. This can be accomplished by 
providing greater emphasis on a culture of safety in existing DOE 
operations, and strong incentives for contractors to identify and 
correct noncompliance conditions and processes in order to protect human 
health and the environment. DOE wants to facilitate, encourage, and 
support contractor initiatives for the prompt identification and 
correction of problems. These initiatives and activities will be duly 
considered in exercising enforcement discretion.
    (e) The PAAA provides DOE with the authority to compromise, modify, 
or remit civil penalties with or without conditions. In implementing the 
PAAA, DOE will carefully consider the facts of each case of 
noncompliance and will exercise appropriate discretion in taking any 
enforcement action. Part of the function of a sound enforcement program 
is to assure a proper and continuing level of safety vigilance. The 
reasonable exercise of enforcement authority will be facilitated by the 
appropriate application of safety requirements to nuclear facilities and 
by promoting and coordinating the proper contractor and DOE safety 
compliance attitude toward those requirements.

                               II. Purpose

    The purpose of the DOE enforcement program is to promote and protect 
the radiological health and safety of the public and workers at DOE 
facilities by:
    a. Ensuring compliance by DOE contractors with applicable DOE 
Nuclear Safety Requirements.
    b. Providing positive incentives for a DOE contractor's:
    (1) Timely self-identification of nuclear safety deficiencies,
    (2) Prompt and complete reporting of such deficiencies to DOE,
    (3) Root cause analyses of nuclear safety deficiencies,
    (4) Prompt correction of nuclear safety deficiencies in a manner 
which precludes recurrence, and
    (5) Identification of modifications in practices or facilities that 
can improve public or worker radiological health and safety.
    c. Deterring future violations of DOE requirements by a DOE 
contractor.
    d. Encouraging the continuous overall improvement of operations at 
DOE nuclear facilities.

                        III. Statutory Authority

    Section 17 of the PAAA makes most DOE contractors covered by the DOE 
Price-Anderson indemnification system, and their subcontractors and 
suppliers, subject to civil penalties for violations of applicable DOE 
nuclear safety rules, regulations and orders. 42 U.S.C. 2282a. 
Furthermore, section 18 of the PAAA makes all employees of DOE 
contractors, and their subcontractors and suppliers, subject to criminal 
penalties, including monetary penalties and imprisonment, for knowing 
and willful violations of applicable DOE nuclear safety rules, 
regulations and orders. 42 U.S.C. 2273(c). Suspected, or alleged, 
criminal violations are referred to the Department of Justice for 
appropriate action. 42 U.S.C. 2271. Therefore, DOE's enforcement 
authority and policy will apply only to civil penalties since decisions 
on criminal violations are the responsibility of the Department of 
Justice. However, referral of a case to the Department of Justice does

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not preclude DOE from taking civil enforcement action in accordance with 
this policy statement. Such actions will be coordinated with the 
Department of Justice to the extent practicable.

                          IV. Responsibilities

    The Director, as the principal enforcement officer of the DOE, has 
been delegated the authority to conduct enforcement investigations and 
conferences, issue Notices of Violations and proposed civil penalties, 
and represent DOE in an enforcement adjudication.

                         V. Procedural Framework

    (a) 10 CFR part 820 sets forth the procedures DOE will use in 
exercising its enforcement authority, including the issuance of Notices 
of Violation and the resolution of contested enforcement actions in the 
event a DOE contractor elects to litigate contested issues before an 
Administrative Law Judge.
    (b) Pursuant to 10 CFR 820.22, the Director initiates the civil 
penalty process by issuing a Preliminary Notice of Violation and 
Proposed Civil Penalty (PNOV). The DOE contractor is required to respond 
in writing to the PNOV, either admitting the violation and waiving its 
right to contest the proposed civil penalty and paying it, admitting the 
violation but asserting the existence of mitigating circumstances that 
warrant either the total or partial remission of the civil penalty, or 
denying that the violation has occurred and providing the basis for its 
belief that the PNOV is incorrect. After evaluation of the DOE 
contractor's response, the Director of Enforcement may determine that no 
violation has occurred, that the violation occurred as alleged in the 
PNOV but that the proposed civil penalty should be remitted in whole or 
in part, or that the violation occurred as alleged in the PNOV and that 
the proposed civil penalty is appropriate notwithstanding the asserted 
mitigating circumstances. In the latter two instances, the Director will 
issue a Final Notice of Violation (FNOV) or an FNOV and Proposed Civil 
Penalty.
    (c) An opportunity to challenge a proposed civil penalty either 
before an Administrative Law Judge or in a United States District Court 
is provided in the PAAA, 42 U.S.C. 2282a(c), and 10 CFR part 820 sets 
forth the procedures associated with an administrative hearing, should 
the contractor opt for that method of challenging the proposed civil 
penalty. A formal administrative enforcement proceeding pursuant to 
section 554 of the Administrative Procedures Act is not initiated until 
the DOE contractor against which a civil penalty has been proposed 
requests an administrative hearing rather than waiving its right to 
contest the civil penalty and paying it. However, it should be 
emphasized that DOE encourages the voluntary resolution of a 
noncompliance situation at any time, either informally prior to the 
initiation of an administrative proceeding or by consent order after a 
formal proceeding has begun.

                       VI. Severity of Violations

    (a) Violations of DOE Nuclear Safety Requirements have varying 
degrees of safety significance. Therefore, the relative importance of 
each violation must be identified as the first step in the enforcement 
process. Violations of DOE Nuclear Safety Requirements are categorized 
in three levels of severity to identify their relative safety 
significance, and Notices of Violation are issued for noncompliance 
which, when appropriate, propose civil penalties commensurate with the 
severity level of the violation(s) involved.
    (b) Severity Level I has been assigned to violations that are the 
most significant and Severity Level III violations are the least 
significant. Severity Level I is reserved for violations of DOE Nuclear 
Safety Requirements which involve actual or high potential for adverse 
impact on the safety of the public or workers at DOE facilities. 
Severity level II violations represent a significant lack of attention 
or carelessness toward responsibilities of DOE contractors for the 
protection of public or worker safety which could, if uncorrected, 
potentially lead to an adverse impact on public or worker safety at DOE 
facilities. Severity Level III violations are less serious but are of 
more than minor concern: i.e., if left uncorrected, they could lead to a 
more serious concern. In some cases, violations may be evaluated in the 
aggregate and a single severity level assigned for a group of 
violations.
    (c) Isolated minor violations of DOE Nuclear Safety Requirements 
will not be the subject of formal enforcement action through the 
issuance of a Notice of Violation. However, these minor violations will 
be identified as noncompliances and tracked to assure that appropriate 
corrective/remedial action is taken to prevent their recurrence, and 
evaluated to determine if generic or specific problems exist. If 
circumstances demonstrate that a number of related minor noncompliances 
have occurred in the same time frame (e.g. all identified during the 
same assessment), or that related minor noncompliances have recurred 
despite prior notice to the DOE contractor and sufficient opportunity to 
correct the problem, DOE may choose in its discretion to consider the 
noncompliances in the aggregate as a more serious violation warranting a 
Severity Level III designation, a Notice of Violation and a possible 
civil penalty.
    (d) The severity level of a violation will be dependent, in part, on 
the degree of culpability of the DOE contractor with regard to the 
violation. Thus, inadvertent or negligent

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violations will be viewed differently than those in which there is gross 
negligence, deception or wilfulness. In addition to the significance of 
the underlying violation and level of culpability involved, DOE will 
also consider the position, training and experience of the person 
involved in the violation. Thus, for example, a violation may be deemed 
to be more significant if a senior manager of an organization is 
involved rather than a foreman or non-supervisory employee. In this 
regard, while management involvement, direct or indirect, in a violation 
may lead to an increase in the severity level of a violation and 
proposed civil penalty, the lack of such involvement will not constitute 
grounds to reduce the severity level of a violation or mitigate a civil 
penalty. Allowance of mitigation in such circumstances could encourage 
lack of management involvement in DOE contractor activities and a 
decrease in protection of public and worker health and safety.
    (e) Other factors which will be considered by DOE in determining the 
appropriate severity level of a violation are the duration of the 
violation, the past performance of the DOE contractor in the particular 
activity area involved, whether the DOE contractor had prior notice of a 
potential problem, and whether there are multiple examples of the 
violation in the same time frame rather than an isolated occurrence. The 
relative weight given to each of these factors in arriving at the 
appropriate severity level will be dependent on the circumstances of 
each case.
    (f) DOE expects contractors to provide full, complete, timely, and 
accurate information and reports. Accordingly, the severity level of a 
violation involving either failure to make a required report or 
notification to the DOE or an untimely report or notification, will be 
based upon the significance of, and the circumstances surrounding, the 
matter that should have been reported. A contractor will not normally be 
cited for a failure to report a condition or event unless the contractor 
was actually aware, or should have been aware of the condition or event 
which it failed to report.

                      VII. Enforcement Conferences

    (a) Should DOE determine, after completion of all assessment and 
investigation activities associated with a potential or alleged 
violation of DOE Nuclear Safety Requirements, that there is a reasonable 
basis to believe that a violation has actually occurred, and the 
violation may warrant a civil penalty or issuance of an enforcement 
order, DOE will normally hold an enforcement conference with the DOE 
contractor involved prior to taking enforcement action. DOE may also 
elect to hold an enforcement conference for potential violations which 
would not ordinarily warrant a civil penalty or enforcement order but 
which could, if repeated, lead to such action. The purpose of the 
enforcement conference is to assure the accuracy of the facts upon which 
the preliminary determination to consider enforcement action is based, 
discuss the potential or alleged violations, their significance and 
causes, and the nature of and schedule for the DOE contractor's 
corrective actions, determine whether there are any aggravating or 
mitigating circumstances, and obtain other information which will help 
determine the appropriate enforcement action.
    (b) DOE contractors will be informed prior to a meeting when that 
meeting is considered to be an enforcement conference. Such conferences 
are informal mechanisms for candid pre-decisional discussions regarding 
potential or alleged violations and will not normally be open to the 
public. In circumstances for which immediate enforcement action is 
necessary in the interest of public or worker health and safety, such 
action will be taken prior to the enforcement conference, which may 
still be held after the necessary DOE action has been taken.

                        VIII. Enforcement Letter

    a. In cases where DOE has decided not to issue a Preliminary Notice 
of Violation, DOE may send an Enforcement Letter to the contractor 
signed by the Director. The Enforcement Letter is intended to 
communicate the basis of the decision not to pursue further enforcement 
action for a noncompliance. The Enforcement Letter is intended to direct 
contractors to the desired level of nuclear safety performance. It may 
be used when DOE concludes the specific noncompliance at issue is not of 
the level of significance warranted for issuance of a Preliminary Notice 
of Violation (PNOV). Even where a noncompliance may be significant, the 
Enforcement Letter recognizes that the contractor's actions may have 
attenuated the need for further enforcement action. The Letter will 
typically recognize how the contractor handled the circumstances 
surrounding the noncompliance and address additional areas requiring the 
contractor's attention and DOE's expectations for corrective action. The 
Enforcement Letter notifies the contractor that, when verification is 
received that corrective actions have been implemented, DOE will close 
the enforcement action.
    b. In many investigations, an Enforcement Letter may not be 
required. When DOE decides that a contractor has appropriately corrected 
a noncompliance or that the significance of the noncompliance is 
sufficiently low, it may close out an investigation simply through an 
annotation in the DOE Noncompliance Tracking System (NTS). See Guidance 
for Identifying, Reporting and Tracking Nuclear Safety Noncompliances,

[[Page 399]]

and Addendum, Noncompliance Tracking System Users Manual, DOE-HDBK-1089-
95, July 1995. A closeout of a noncompliance with or without an 
Enforcement Letter may only take place after DOE has confirmed that 
corrective actions have been completed.

                         IX. Enforcement Actions

    a. This section describes the enforcement sanctions available to DOE 
and specifies the conditions under which each may be used. The basic 
sanctions are Notices of Violation and civil penalties. In determining 
whether to impose enforcement sanctions, DOE will consider enforcement 
actions taken by other Federal or State regulatory bodies having 
concurrent jurisdiction, e.g., instances which involve NRC licensed 
entities which are also DOE contractors, and in which the NRC exercises 
its own enforcement authority.
    b. The nature and extent of the enforcement action is intended to 
reflect the seriousness of the violation involved. For the vast majority 
of violations for which DOE assigns severity levels as described 
previously, a Notice of Violation will be issued, requiring a formal 
response from the recipient describing the nature of and schedule for 
corrective actions it intends to take regarding the violation. 
Administrative actions, such as determination of award fees where DOE 
contracts provide for such determinations, will be considered separately 
from any civil penalties that may be imposed under this Enforcement 
Policy. Likewise, imposition of a civil penalty will be based on the 
circumstances of each case, unaffected by any award fee determination.

                         1. Notice of Violation

    a. A Notice of Violation (either a Preliminary or Final Notice) is a 
document setting forth the conclusion of the DOE Office of Nuclear 
Safety that one or more violations of DOE Nuclear Safety Requirements 
has occurred. Such a notice normally requires the recipient to provide a 
written response which may take one of several positions described in 
Section V of this policy statement. In the event that the recipient 
concedes the occurrence of the violation, it is required to describe 
corrective steps which have been taken and the results achieved; 
remedial actions which will be taken to prevent recurrence; and the date 
by which full compliance will be achieved.
    b. DOE will use the Notice of Violation as the standard method for 
formalizing the existence of a violation and, in appropriate cases as 
described in this section, the notice of violation will be issued in 
conjunction with the proposed imposition of a civil penalty. In certain 
limited instances, as described in this section, DOE may refrain from 
the issuance of an otherwise appropriate Notice of Violation. However, a 
Notice of Violation will virtually always be issued for willful 
violations, if past corrective actions for similar violations have not 
been sufficient to prevent recurrence and there are no other mitigating 
circumstances, or if the circumstances otherwise warrant increasing 
Severity Level III violations to a higher severity level.
    c. DOE contractors are not ordinarily cited for violations resulting 
from matters not within their control, such as equipment failures that 
were not avoidable by reasonable quality assurance measures, proper 
maintenance, or management controls. With regard to the issue of 
funding, however, DOE does not consider an asserted lack of funding to 
be a justification for noncompliance with DOE Nuclear Safety 
Requirements.
Should a contractor believe that a shortage of funding precludes it from 
achieving compliance with one or more DOE Nuclear Safety Requirements, 
it must pursue one of two alternative courses of action. First, it may 
request, in writing, an exemption from the requirement(s) in question 
from the appropriate Secretarial Officer (SO), explicitly addressing the 
criteria for exemptions set forth in 10 CFR 820.62. A justification for 
continued operation for the period during which the exemption request is 
being considered should also be submitted. In such a case, the SO must 
grant or deny the request in writing, explaining the rationale for the 
decision. Second, if the criteria for approval of an exemption cannot be 
demonstrated, the contractor, in conjunction with the SO, must take 
appropriate steps to modify, curtail, suspend or cease the activities 
which cannot be conducted in compliance with the DOE Nuclear Safety 
Requirement(s) in question.
    d. DOE expects the contractors which operate its facilities to have 
the proper management and supervisory systems in place to assure that 
all activities at DOE facilities, regardless of who performs them, are 
carried out in compliance with all DOE Nuclear Safety Requirements. 
Therefore, contractors are normally held responsible for the acts of 
their employees and subcontractor employees in the conduct of activities 
at DOE facilities. Accordingly, this policy should not be construed to 
excuse personnel errors.
    e. Finally, certain contractors are explicitly exempted from the 
imposition of civil penalties pursuant to the provisions of the PAAA, 42 
U.S.C. 2282a(d), for activities conducted at specified facilities. See 
10 CFR 820.20(c). In addition, in fairness to non-profit educational 
institutions, the Department has determined that they should be likewise 
exempted. See 10 CFR 820.20(d). However, compliance with DOE Nuclear 
Safety Requirements is no less important for these facilities than for 
other facilities in the DOE complex which work with, store or dispose of 
radioactive materials. Indeed, the exempted

[[Page 400]]

contractors conduct some of the most important nuclear-related research 
and development activities performed for the Department. Therefore, in 
order to serve the purposes of this enforcement policy and to emphasize 
the importance the Department places on compliance with all of its 
nuclear safety requirements, DOE intends to issue Notices of Violation 
to the exempted contractors and non-profit educational institutions when 
appropriate under this policy statement, notwithstanding the statutory 
and regulatory exemptions from the imposition of civil penalties.

                            2. Civil Penalty

    a. A civil penalty is a monetary penalty that may be imposed for 
violations of applicable DOE Nuclear Safety Requirements, including 
Compliance Orders. See 10 CFR 820.20(b). Civil penalties are designed to 
emphasize the need for lasting remedial action, deter future violations, 
and underscore the importance of DOE contractor self-identification, 
reporting and correction of violations of DOE Nuclear Safety 
Requirements.
    b. Absent mitigating circumstances as described below, or 
circumstances otherwise warranting the exercise of enforcement 
discretion by DOE as described in this section, civil penalties will be 
proposed for Severity Level I and II violations. Civil penalties will be 
proposed for Severity Level III violations which are similar to previous 
violations for which the contractor did not take effective corrective 
action. ``Similar'' violations are those which could reasonably have 
been expected to have been prevented by corrective action for the 
previous violation. DOE normally considers civil penalties only for 
similar Severity Level III violations that occur over a reasonable 
period of time to be determined at the discretion of DOE.
    c. DOE will impose different base level civil penalties considering 
the severity level of the violation(s) by Price-Anderson indemnified 
contractors. Table 1 shows the daily base civil penalties for the 
various categories of severity levels. However, as described above in 
Section IV, the imposition of civil penalties will also take into 
account the gravity, circumstances, and extent of the violation or 
violations and, with respect to the violator, any history of prior 
similar violations and the degree of culpability and knowledge.
    d. Regarding the factor of ability of DOE contractors to pay the 
civil penalties, it is not DOE's intention that the economic impact of a 
civil penalty be such that it puts a DOE contractor out of business. 
Contract termination, rather than civil penalties, is used when the 
intent is to terminate these activities. The deterrent effect of civil 
penalties is best served when the amount of such penalties takes this 
factor into account. However, DOE will evaluate the relationship of 
affiliated entities to the contractor (such as parent corporations) when 
it asserts that it cannot pay the proposed penalty.
    e. DOE will review each case involving a proposed civil penalty on 
its own merits and adjust the base civil penalty values upward or 
downward appropriately. As indicated above, Table 1 identifies the daily 
base civil penalty values for different severity levels. After 
considering all relevant circumstances, civil penalties may be escalated 
or mitigated based upon the adjustment factors described below in this 
section. In no instance will a civil penalty for any one violation 
exceed the statutory limit. However, it should be emphasized that if the 
DOE contractor is or should have been aware of a violation and has not 
reported it to DOE and taken corrective action despite an opportunity to 
do so, each day the condition existed may be considered as a separate 
violation and, as such, subject to a separate civil penalty. Further, as 
described in this section, the duration of a violation will be taken 
into account in determining the appropriate severity level of the base 
civil penalty.

              Table 1.--Severity Level Base Civil Penalties             
------------------------------------------------------------------------
                                                              Base civil
                                                               penalty  
                                                                amount  
                                                             (percentage
                       Severity level                         of maximum
                                                                civil   
                                                             penalty per
                                                              violation 
                                                               per day) 
------------------------------------------------------------------------
I..........................................................         100 
II.........................................................          50 
III........................................................          10 
------------------------------------------------------------------------

                          3. Adjustment Factors

    a. DOE's enforcement program is not an end in itself, but a means to 
achieve compliance with DOE Nuclear Safety Requirements, and civil 
penalties are not collected to swell the coffers of the United States 
Treasury, but to emphasize the importance of compliance and to deter 
future violations. The single most important goal of the DOE enforcement 
program is to encourage early identification and reporting of nuclear 
safety deficiencies and violations of DOE Nuclear Safety Requirements by 
the DOE contractors themselves rather than by DOE, and the prompt 
correction of any deficiencies and violations so identified. DOE 
believes

[[Page 401]]

that DOE contractors are in the best position to identify and promptly 
correct noncompliance with DOE Nuclear Safety Requirements. DOE expects 
that these contractors should have in place internal compliance programs 
which will ensure the detection, reporting and prompt correction of 
nuclear safety-related problems that may constitute, or lead to, 
violations of DOE Nuclear Safety Requirements before, rather than after, 
DOE has identified such violations. Thus, DOE contractors will almost 
always be aware of nuclear safety problems before they are discovered by 
DOE. Obviously, public and worker health and safety is enhanced if 
deficiencies are discovered (and promptly corrected) by the DOE 
contractor, rather than by DOE, which may not otherwise become aware of 
a deficiency until later on, during the course of an inspection, 
performance assessment, or following an incident at the facility. Early 
identification of nuclear safety-related problems by DOE contractors has 
the added benefit of allowing information which could prevent such 
problems at other facilities in the DOE complex to be shared with all 
appropriate DOE contractors.
    b. Pursuant to this enforcement philosophy, DOE will provide 
substantial incentive for the early self-identification, reporting and 
prompt correction of problems which constitute, or could lead to, 
violations of DOE Nuclear Safety Requirements. Thus, application of the 
adjustment factors set forth below may result in no civil penalty being 
assessed for violations that are identified, reported, and promptly and 
effectively corrected by the DOE contractor.
    c. On the other hand, ineffective programs for problem 
identification and correction are unacceptable. Thus, for example, where 
a contractor fails to disclose and promptly correct violations of which 
it was aware or should have been aware, substantial civil penalties are 
warranted and may be sought, including the assessment of civil penalties 
for continuing violations on a per day basis.
    d. Further, in cases involving willfulness, flagrant DOE-identified 
violations, repeated poor performance in an area of concern, or serious 
breakdown in management controls, DOE intends to apply its full 
statutory enforcement authority where such action is warranted.

                     4. Identification and Reporting

    Reduction of up to 50% of the base civil penalty shown in Table 1 
may be given when a DOE contractor identifies the violation and promptly 
reports the violation to the DOE. In weighing this factor, consideration 
will be given to, among other things, the opportunity available to 
discover the violation, the ease of discovery and the promptness and 
completeness of any required report. No consideration will be given to a 
reduction in penalty if the DOE contractor does not take prompt action 
to report the problem to DOE upon discovery, or if the immediate actions 
necessary to restore compliance with DOE Nuclear Safety Requirements or 
place the facility or operation in a safe configuration are not taken.

               5. Self-Identification and Tracking Systems

    a. DOE strongly encourages contractors to self-identify 
noncompliances with DOE Nuclear Safety Requirements before the 
noncompliances lead to a string of similar and potentially more 
significant events or consequences. When a contractor identifies a 
noncompliance through its own self-monitoring activity, DOE will 
normally allow a reduction in the amount of civil penalties, regardless 
of whether prior opportunities existed for contractors to identify the 
noncompliance. DOE will normally not allow a reduction in civil 
penalties for self-identification if significant DOE intervention was 
required to induce the contractor to report a noncompliance.
    b. Self-identification of a noncompliance is possibly the single 
most important factor in considering a reduction in the civil penalty 
amount. Consideration of self-identification is linked to, among other 
things, whether prior opportunities existed to discover the violation, 
and if so, the age and number of such opportunities; the extent to which 
proper contractor controls should have identified or prevented the 
violation; whether discovery of the violation resulted from a 
contractor's self-monitoring activity; the extent of DOE involvement in 
discovering the violation or in prompting the contractor to identify the 
violation; and the promptness and completeness of any required report. 
Self-identification is also considered by DOE in deciding whether to 
pursue an investigation.
    c. DOE has established a voluntary Noncompliance Tracking System 
(NTS) which allows contractors to elect to report noncompliances. In the 
guidance document supporting the NTS (DOE-HDBK-1089-95), DOE has 
established reporting thresholds for reporting items of noncompliance of 
potentially greater safety significance into the NTS. Contractors may, 
however, use their own self-tracking systems to track noncompliances 
below the reporting threshold. This self-tracking is considered to be 
acceptable self-reporting as long as DOE has access to the contractor's 
system and the contractor's system notes the item as a noncompliance 
with a DOE Nuclear Safety Requirement. For noncompliances that are below 
the reportability thresholds, DOE will credit contractor self-tracking 
as representing self-reporting. If an item is not reported in NTS but 
only tracked in the contractor's system and DOE subsequently finds the 
facts and their safety significance have been significantly 
mischaracterized, DOE will not credit

[[Page 402]]

the internal tracking as representing appropriate self-reporting.

                        6. Self-Disclosing Events

    a. DOE expects contractors to demonstrate acceptance of 
responsibility for safety of the public, workers, and the environment 
and to proactively identify noncompliance conditions in their programs 
and processes. In deciding whether to reduce any civil penalty proposed 
for violations revealed by the occurrence of a self-disclosing event, 
DOE will consider the ease with which a contractor could have discovered 
the noncompliance and the prior opportunities that existed to discover 
the noncompliance. When the occurrence of an event discloses 
noncompliances that the contractor could have or should have identified 
before the event, DOE will not generally allow a reduction in civil 
penalties for self-identification, even if the underlying noncompliances 
were reported to DOE. If a contractor simply reacts to events that 
disclose potentially significant consequences or downplays 
noncompliances which did not result in significant consequences to 
workers, the public, and the environment, such contractor actions do not 
lead to the improvement in nuclear safety contemplated by the Act.
    b. The key test is whether the contractor reasonably could have 
detected any of the underlying noncompliances that contributed to the 
event. Examples of events that provide opportunities to identify 
noncompliances include, but are not limited to:
    (1) prior notifications of potential problems such as those from DOE 
operational experience publications or vendor equipment deficiency 
reports;
    (2) normal surveillance, quality assurance assessments, and post-
maintenance testing;
    (3) readily observable parameter trends; and
    (4) contractor employee or DOE observations of potential safety 
problems. Failure to utilize these types of events and activities to 
address noncompliances may result in higher civil penalty assessments or 
a DOE decision not to reduce civil penalty amounts.
    c. For example, a critique of the event might find that one of the 
root causes was a lack of clarity in a Radiation Work Permit (RWP) which 
led to improper use of anti-contamination clothing and resulting uptake 
of contamination by the individual. DOE could subsequently conclude that 
no reduction in civil penalties for self-identification should be 
allowed since the event itself disclosed the inadequate RWP and the 
contractor could have, through proper independent assessment or by 
fostering a questioning attitude by its workers and supervisors, 
identified the inadequate RWP before the event.
    d. Alternatively, if, following a self-disclosing event, DOE found 
that the contractor's processes and procedures were adequate and the 
contractor's personnel generally behaved in a manner consistent with the 
contractor's processes and procedures, DOE could conclude that the 
contractor could not have been reasonably expected to find the single 
procedural noncompliance that led to the event and thus, might allow a 
reduction in civil penalties.

               7. Corrective Action To Prevent Recurrence

    The promptness (or lack thereof) and extent to which the DOE 
contractor takes corrective action, including actions to identify root 
cause and prevent recurrence, may result in up to a 50% increase or 
decrease in the base civil penalty shown in Table 1. For example, very 
extensive corrective action may result in reducing the proposed civil 
penalty as much as 50% of the base value shown in Table 1. On the other 
hand, the civil penalty may be increased as much as 50% of the base 
value if initiation or corrective action is not prompt or if the 
corrective action is only minimally acceptable. In weighing this factor, 
consideration will be given to, among other things, the appropriateness, 
timeliness and degree of initiative associated with the corrective 
action. The comprehensiveness of the corrective action will also be 
considered, taking into account factors such as whether the action is 
focused narrowly to the specific violation or broadly to the general 
area of concern.

                  8. DOE's Contribution to a Violation

    There may be circumstances in which a violation of a DOE Nuclear 
Safety Requirement results, in part or entirely, from a direction given 
by DOE personnel to a DOE contractor to either take, or forbear from 
taking an action at a DOE facility. In such cases, DOE may refrain from 
issuing an NOV, and may mitigate, either partially or entirely, any 
proposed civil penalty, provided that the direction upon which the DOE 
contractor relied is documented in writing, contemporaneously with the 
direction. It should be emphasized, however, that pursuant to 10 CFR 
820.50, no interpretation of a DOE Nuclear Safety Requirement is binding 
upon DOE unless issued in writing by the General Counsel. Further, as 
discussed in this section of this policy statement, lack of funding by 
itself will not be considered as a mitigating factor in enforcement 
actions.

                        9. Exercise of Discretion

    Because DOE wants to encourage and support DOE contractor initiative 
for prompt self-identification, reporting and correction of problems, 
DOE may exercise discretion as follows:
    a. In accordance with the previous discussion, DOE may refrain from 
issuing a civil penalty for a violation which meets all of the following 
criteria:

[[Page 403]]

    (1) The violation is promptly identified and reported to DOE before 
DOE learns of it.
    (2) The violation is not willful or a violation that could 
reasonably be expected to have been prevented by the DOE contractor's 
corrective action for a previous violation.
    (3) The DOE contractor, upon discovery of the violation, has taken 
or begun to take prompt and appropriate action to correct the violation.
    (4) The DOE contractor has taken, or has agreed to take, remedial 
action satisfactory to DOE to preclude recurrence of the violation and 
the underlying conditions which caused it.
    b. DOE may refrain from proposing a civil penalty for a violation 
involving a past problem, such as in engineering design or installation, 
that meets all of the following criteria:
    (1) It was identified by a DOE contractor as a result of a formal 
effort such as a Safety System Functional Inspection, Design 
Reconstitution program, or other program that has a defined scope and 
timetable which is being aggressively implemented and reported;
    (2) Comprehensive corrective action has been taken or is well 
underway within a reasonable time following identification; and
    (3) It was not likely to be identified by routine contractor efforts 
such as normal surveillance or quality assurance activities.
    c. DOE will not issue a Notice of Violation for cases in which the 
violation discovered by the DOE contractor cannot reasonably be linked 
to the conduct of that contractor in the design, construction or 
operation of the DOE facility involved, provided that prompt and 
appropriate action is taken by the DOE contractor upon identification of 
the past violation to report to DOE and remedy the problem.
    d. DOE may refrain from issuing a Notice of Violation for an item of 
noncompliance that meets all of the following criteria:
    (1) It was promptly identified by the DOE nuclear entity;
    (2) It is normally classified at a Severity Level III;
    (3) It was promptly reported to DOE;
    (4) Prompt and appropriate corrective action will be taken, 
including measures to prevent recurrence; and
    (5) It was not a willful violation or a violation that could 
reasonably be expected to have been prevented by the DOE contractor's 
corrective action for a previous violation.
    e. DOE may refrain from issuing a Notice of Violation for an item of 
noncompliance that meets all of the following criteria:
    (1) It was an isolated Severity Level III violation identified 
during a Tiger Team inspection conducted by the Office of Environment, 
Safety and Health, during an inspection or integrated performance 
assessment conducted by the Office of Nuclear Safety, or during some 
other DOE assessment activity.
    (2) The identified noncompliance was properly reported by the 
contractor upon discovery.
    (3) The contractor initiated or completed appropriate assessment and 
corrective actions within a reasonable period, usually before the 
termination of the onsite inspection or integrated performance 
assessment.
    (4) The violation is not willful or one which could reasonably be 
expected to have been prevented by the DOE contractor's corrective 
action for a previous violation.
    f. In situations where corrective actions have been completed before 
termination of an inspection or assessment, a formal response from the 
contractor is not required and the inspection or integrated performance 
assessment report serves to document the violation and the corrective 
action. However, in all instances, the contractor is required to report 
the noncompliance through established reporting mechanisms so the 
noncompliance issue and any corrective actions can be properly tracked 
and monitored.
    g. If DOE initiates an enforcement action for a violation at a 
Severity Level II or III and, as part of the corrective action for that 
violation, the DOE contractor identifies other examples of the violation 
with the same root cause, DOE may refrain from initiating an additional 
enforcement action. In determining whether to exercise this discretion, 
DOE will consider whether the DOE contractor acted reasonably and in a 
timely manner appropriate to the safety significance of the initial 
violation, the comprehensiveness of the corrective action, whether the 
matter was reported, and whether the additional violation(s) 
substantially change the safety significance or character of the concern 
arising out of the initial violation.
    h. It should be emphasized that the preceding paragraphs are solely 
intended to be examples indicating when enforcement discretion may be 
exercised to forego the issuance of a civil penalty or, in some cases, 
the initiation of any enforcement action at all. However, 
notwithstanding these examples, a civil penalty may be proposed or 
Notice of Violation issued when, in DOE's judgment, such action is 
warranted on the basis of the circumstances of an individual case.

   X. Procurement of Products or Services and the Reporting of Defects

    (a) DOE's enforcement policy is also applicable to subcontractors 
and suppliers to DOE Price-Anderson indemnified contractors. Through 
procurement contracts with these DOE contractors, subcontractors and 
suppliers are generally required to have quality assurance programs that 
meet applicable DOE Nuclear Safety Requirements. Suppliers of products 
or services provided in support of or

[[Page 404]]

for use in DOE facilities operated by Price-Anderson indemnified 
contractors are subject to certain requirements designed to ensure the 
high quality of the products or services supplied to DOE facilities that 
could, if deficient, adversely affect public or worker safety. DOE 
regulations require that DOE be notified whenever a DOE contractor 
obtains information reasonably indicating that a DOE facility (including 
its structures, systems and components) which conducts activities 
subject to the provisions of the Atomic Energy Act of 1954, as amended 
or DOE Nuclear Safety Requirements either fails to comply with any 
provision of the Atomic Energy Act or any applicable DOE Nuclear Safety 
Requirement, or contains a defect or has been supplied with a product or 
service which could create or result in a substantial safety hazard.
    (b) DOE will conduct audits and assessments of its contractors to 
determine whether they are ensuring that subcontractors and suppliers 
are meeting their contractual obligations with regard to quality of 
products or services that could have an adverse effect on public or 
worker radiological safety, and ensure that DOE contractors have in 
place adequate programs to determine whether products or services 
supplied to them for DOE facilities meet applicable DOE requirements and 
that substandard products or services are not used by Price-Anderson 
indemnified contractors at the facilities they operate for DOE. As part 
of the effort of ensuring that contractual and regulatory requirements 
are met, DOE may also audit or assess subcontractors and suppliers. 
These assessments could include examination of the quality assurance 
programs and their implementation by the subcontractors and suppliers 
through examination of product quality.
    (c) When audits or assessments determine that subcontractors or 
suppliers have failed to comply with applicable DOE Nuclear Safety 
Requirements or to fulfill contractual commitments designed to ensure 
the quality of a safety significant product or service, enforcement 
action will be taken. Notices of Violations and civil penalties will be 
issued, as appropriate, for DOE contractor failures to ensure that their 
subcontractors and suppliers provide products and services that meet 
applicable DOE requirements. Notices of Violations and civil penalties 
will also be issued to subcontractors and suppliers of DOE contractors 
which fail to comply with the reporting requirements set forth in any 
other applicable DOE Nuclear Safety Requirements.

                XI. Inaccurate and Incomplete Information

    (a) A violation of DOE Nuclear Safety Requirements for failure to 
provide complete and accurate information to DOE, 10 CFR 820.11, can 
result in the full range of enforcement sanctions, depending upon the 
circumstances of the particular case and consideration of the factors 
discussed in this section. Violations involving inaccurate or incomplete 
information or the failure to provide significant information identified 
by a DOE contractor normally will be categorized based on the guidance 
in section VI, ``Severity of Violations''.
    (b) DOE recognizes that oral information may in some situations be 
inherently less reliable than written submittals because of the absence 
of an opportunity for reflection and management review. However, DOE 
must be able to rely on oral communications from officials of DOE 
contractors concerning significant information. In determining whether 
to take enforcement action for an oral statement, consideration will be 
given to such factors as
    (b)(1) The degree of knowledge that the communicator should have had 
regarding the matter in view of his or her position, training, and 
experience;
    (b)(2) The opportunity and time available prior to the communication 
to assure the accuracy or completeness of the information;
    (b)(3) The degree of intent or negligence, if any, involved;
    (b)(4) The formality of the communication;
    (b)(5) The reasonableness of DOE reliance on the information;
    (b)(6) The importance of the information that was wrong or not 
provided; and
    (b)(7) The reasonableness of the explanation for not providing 
complete and accurate information.
    (c) Absent gross negligence or willfulness, an incomplete or 
inaccurate oral statement normally will not be subject to enforcement 
action unless it involves significant information provided by an 
official of a DOE contractor. However, enforcement action may be taken 
for an unintentionally incomplete or inaccurate oral statement provided 
to DOE by an official of a DOE contractor or others on behalf of the DOE 
contractor, if a record was made of the oral information and provided to 
the DOE contractor thereby permitting an opportunity to correct the oral 
information, such as if a transcript of the communication or meeting 
summary containing the error was made available to the DOE contractor 
and was not subsequently corrected in a timely manner.
    (d) When a DOE contractor has corrected inaccurate or incomplete 
information, the decision to issue a citation for the initial inaccurate 
or incomplete information normally will be dependent on the 
circumstances, including the ease of detection of the error, the 
timeliness of the correction, whether DOE or the DOE contractor 
identified the problem with the communication, and whether DOE relied on 
the information prior to the correction. Generally, if the

[[Page 405]]

matter was promptly identified and corrected by the DOE contractor prior 
to reliance by DOE, or before DOE raised a question about the 
information, no enforcement action will be taken for the initial 
inaccurate or incomplete information. On the other hand, if the 
misinformation is identified after DOE relies on it, or after some 
question is raised regarding the accuracy of the information, then some 
enforcement action normally will be taken even if it is in fact 
corrected.
    (e) If the initial submission was accurate when made but later turns 
out to be erroneous because of newly discovered information or advance 
in technology, a citation normally would not be appropriate if, when the 
new information became available, the initial submission was corrected.
    (f) The failure to correct inaccurate or incomplete information that 
the DOE contractor does not identify as significant normally will not 
constitute a separate violation. However, the circumstances surrounding 
the failure to correct may be considered relevant to the determination 
of enforcement action for the initial inaccurate or incomplete 
statement. For example, an unintentionally inaccurate or incomplete 
submission may be treated as a more severe matter if a DOE contractor 
later determines that the initial submission was in error and does not 
correct it or if there were clear opportunities to identify the error.

             XII. Secretarial Notification and Consultation

    The Secretary will be provided written notification of all 
enforcement actions involving proposed civil penalties. The Secretary 
will be consulted prior to taking action in the following situations:
    a. Proposals to impose civil penalties in an amount equal to or 
greater than the statutory limit;
    b. Any proposed enforcement action that involves a Severity Level I 
violation;
    c. Any action the Director believes warrants the Secretary's 
involvement; or
    d. Any proposed enforcement action on which the Secretary asks to be 
consulted.
[58 FR 43692, Aug. 17, 1993, as amended at 62 FR 52481, Oct. 8, 1997]



PART 830--NUCLEAR SAFETY MANAGEMENT--Table of Contents




Sec.
830.1  Scope.
830.2  Exclusions.
830.3  Definitions.
830.4  General rule.
830.5  Enforcement.
830.6  Records.
830.7  Graded approach.

                      Subpart A--General Provisions

830.100  Scope of subpart.
830.120  Quality assurance requirements.

                      Subpart B--Design [Reserved]

                    Subpart C--Operations [Reserved]

                Subpart D--Material Management [Reserved]

    Authority: 42 U.S.C. 2201; and 7191.

    Source: 59 FR 15851, Apr. 5, 1994, unless otherwise noted.



Sec. 830.1  Scope.

    This part governs the conduct of the Department of Energy (DOE) 
management and operating contractors and other persons at DOE nuclear 
facilities.



Sec. 830.2  Exclusions.

    This part does not apply to:
    (a) Activities that are regulated through a license by the Nuclear 
Regulatory Commission (NRC) or a State under an Agreement with the NRC, 
including activities certified by the NRC under section 1701 of the 
Atomic Energy Act;
    (b) Activities conducted under the authority of the Director, Naval 
Nuclear Propulsion Program, as described in Public Law 98-525; or
    (c) Activities conducted under the Nuclear Explosives and Weapons 
Safety Program relating to the prevention of accidental or unauthorized 
nuclear detonations.



Sec. 830.3  Definitions.

    (a) The following definitions apply to this part:
    Administrative Controls mean provisions relating to organization and 
management, procedures, record keeping, assessment, and reporting 
necessary to ensure safe operation of a facility.
    Contractor means any person under contract with the Department of 
Energy with responsibility to perform activities in connection with a 
nuclear facility.
    Department or DOE means the Department of Energy.
    Document means recorded information that describes, specifies, 
reports, certifies, requires, or provides data or results. A document is 
not considered a

[[Page 406]]

record until it meets the definition of record.
    Fissionable materials means a nuclide capable of sustaining a 
neutron-induced fission chain reaction (e.g., uranium-233, uranium-235, 
plutonium-238, plutonium-239, plutonium-241, neptunium-237, americium-
241, and curium-244).
    Graded Approach means a process by which the level of analysis, 
documentation, and actions necessary to comply with a requirement in 
this part are commensurate with:
    (1) The relative importance to safety, safeguards, and security;
    (2) The magnitude of any hazard involved;
    (3) The life cycle stage of a facility;
    (4) The programmatic mission of a facility;
    (5) The particular characteristics of a facility; and
    (6) Any other relevant factor.
    Hazard means a source of danger (i.e., material, energy source, or 
operation) with the potential to cause illness, injury, or death to 
personnel or damage to a facility or to the environment (without regard 
to the likelihood or credibility of accident scenarios or consequence 
mitigation).
    Implementation Plan means a document prepared by a contractor that 
sets forth:
    (1) When and how the actions appropriate to comply with the 
requirements of a section of this part, including the requirements of a 
plan or program required by the section, shall be taken, and
    (2) What relief will be sought if a contractor cannot attain full 
compliance with a requirement in a reasonable manner.
    Item is an all-inclusive term used in place of any of the following: 
appurtenance, assembly, component, equipment, material, module, part, 
structure, subassembly, subsystem, system, unit, or support systems.
    Nonreactor nuclear facility means those activities or operations 
that involve radioactive and/or fissionable materials in such form and 
quantity that a nuclear hazard potentially exists to the employees or 
the general public. Incidental use and generating of radioactive 
materials in a facility operation (e.g., check and calibration sources, 
use of radioactive sources in research and experimental and analytical 
laboratory activities, electron microscopes, and X-ray machines) would 
not ordinarily require the facility to be included in this definition. 
Transportation of radioactive materials, accelerators and reactors and 
their operations are not included. The application of any rule to a 
nonreactor nuclear facility shall be applied using a graded approach. 
Included are activities or operations that:
    (1) Produce, process, or store radioactive liquid or solid waste, 
fissionable materials, or tritium;
    (2) Conduct separations operations;
    (3) Conduct irradiated materials inspection, fuel fabrication, 
decontamination, or recovery operations;
    (4) Conduct fuel enrichment operations;
    (5) Perform environmental remediation or waste management activities 
involving radioactive materials; or
    (6) Design, manufacture, or assemble items for use with radioactive 
materials and/or fissionable materials in such form or quantity that a 
nuclear hazard potentially exists.
    Nuclear facility means reactor and nonreactor nuclear facilities.
    Person means any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency, any State or political subdivision of, or any 
political entity within a State, any foreign government or nation or 
other entity and any legal successor, representative, agent or agency of 
the foregoing; provided that person does not include the Department or 
the United States NRC.
    Process means a series of actions that achieves an end or result.
    Quality means the condition achieved when an item, service, or 
process meets or exceeds the user's requirements and expectations.
    Quality Assurance means all those actions that provide confidence 
that quality is achieved.
    Quality Assurance Program or QAP means the overall program 
established to assign responsibilities and authorities, define policies 
and requirements,

[[Page 407]]

and provide for the performance and assessment of work.
    Reactor means, unless it is modified by words such as containment, 
vessel, or core, the entire nuclear reactor facility, including the 
housing, equipment, and associated areas devoted to the operation and 
maintenance of one or more reactor cores. Any apparatus that is designed 
or used to sustain nuclear chain reactions in a controlled manner, 
including critical and pulsed assemblies and research, test, and power 
reactors, is defined as a reactor. All assemblies designed to perform 
subcritical experiments that could potentially reach criticality are 
also to be considered reactors. Critical assemblies are special nuclear 
devices designed and used to sustain nuclear reactions. Critical 
assemblies may be subject to frequent core and lattice configuration 
change and may be used frequently as mockups of reactor configurations.
    Record means a completed document or other media that provides 
objective evidence of an item, service, or process.
    Service means the performance of work, such as design, construction, 
fabrication, inspection, nondestructive examination/testing, 
environmental qualification, equipment qualification, repair, 
installation, or the like.
    (b) Terms defined in the Act and not defined in these rules are used 
consistent with the meanings given in the Act.
    (c) As used in this part, words in the singular also include the 
plural and words in the masculine gender also include the feminine and 
vice versa, as the case may require.



Sec. 830.4  General rule.

    (a) No person shall take or cause to be taken any action 
inconsistent with the requirements of this part or any program, plan, 
schedule, or other process established by this part.
    (b) With respect to a particular DOE nuclear facility, the 
contractor responsible for the design, construction, operation, or 
decommissioning of that facility shall be responsible for implementation 
of, and compliance with, the requirements of this part.
    (c) When a section of this part expressly requires a plan, program, 
or implementation plan, the provisions of any such plan, program, or 
implementation plan, as approved by DOE, shall be the basis used to 
determine compliance with the relevant nuclear safety requirements in 
the section.



Sec. 830.5  Enforcement.

    The requirements in this part are DOE Nuclear Safety Requirements 
and are subject to enforcement by all appropriate means, including the 
imposition of civil and criminal penalties in accordance with the 
provisions of part 820 of this title.



Sec. 830.6  Records.

    A person shall maintain complete and accurate records as necessary 
to substantiate its compliance with the requirements of this part.



Sec. 830.7  Graded approach.

    (a) Where indicated in a subpart, a graded approach shall be 
utilized to comply with the requirements.
    (b) Whenever a graded approach is applied in meeting a DOE nuclear 
safety requirement, the bases for selecting an action pursuant to the 
graded approach shall be documented.



                      Subpart A--General Provisions



Sec. 830.100  Scope of subpart.

    This subpart prescribes requirements that are generally applicable 
to more than one phase of the life cycle of a DOE nuclear facility.



Sec. 830.120  Quality assurance requirements.

    (a) General Rule. (1) A contractor responsible for a DOE nuclear 
facility shall:
    (i) Conduct its work in accordance with the criteria of paragraph 
(c) of this section;
    (ii) Develop and submit for approval by DOE a Quality Assurance 
Program (QAP) for the work; and
    (iii) Implement the QAP, as approved and modified by DOE.
    (b) Quality Assurance Program. (1) A contractor shall develop a QAP 
by applying the quality assurance criteria specified in paragraph (c) of 
this section. A QAP shall include a discussion of how the criteria of 
paragraph (c) of

[[Page 408]]

this section will be satisfied. The criteria of paragraph (c) of this 
section shall be applied using a graded approach. The contractor shall 
use appropriate standards, wherever applicable, to develop and implement 
its QAP.
    (2) Within 180 days after May 5, 1994, a contractor shall submit to 
DOE for approval a current QAP and an implementation plan.
    (3) A contractor may, at any time, make changes to an approved QAP. 
Changes made over the previous year shall be submitted annually to DOE 
for review. A submittal shall identify the changes, the pages affected, 
the reason for the changes, and the basis for concluding that the 
revised QAP continues to satisfy the requirements of this section. 
Changes made to correct spelling, punctuation, or other editorial items 
do not require explanation.
    (4) Implementation plans and QAPs shall be regarded as approved by 
DOE 90 days after submittal, unless approved or rejected by DOE at an 
earlier date, and shall include any modification made or directed by 
DOE.
    (c) Quality assurance criteria.--(1) Management (i) Program. A 
written QAP shall be developed, implemented, and maintained. The QAP 
shall describe the organizational structure, functional 
responsibilities, levels of authority, and interfaces for those 
managing, performing, and assessing the work. The QAP shall describe 
management processes, including planning, scheduling, and resource 
considerations.
    (ii) Personnel Training and Qualification. Personnel shall be 
trained and qualified to ensure they are capable of performing their 
assigned work. Personnel shall be provided continuing training to ensure 
that job proficiency is maintained.
    (iii) Quality Improvement. Processes to detect and prevent quality 
problems shall be established and implemented. Items, services, and 
processes that do not meet established requirements shall be identified, 
controlled, and corrected according to the importance of the problem and 
the work affected. Correction shall include identifying the causes of 
problems and working to prevent recurrence. Item characteristics, 
process implementation, and other quality-related information shall be 
reviewed and the data analyzed to identify items, services, and 
processes needing improvement.
    (iv) Documents and Records. Documents shall be prepared, reviewed, 
approved, issued, used, and revised to prescribe processes, specify 
requirements, or establish design. Records shall be specified, prepared, 
reviewed, approved, and maintained.
    (2) Performance--(i) Work Processes. Work shall be performed to 
established technical standards and administrative controls using 
approved instructions, procedures, or other appropriate means. Items 
shall be identified and controlled to ensure their proper use. Items 
shall be maintained to prevent their damage, loss, or deterioration. 
Equipment used for process monitoring or data collection shall be 
calibrated and maintained.
    (ii) Design. Items and processes shall be designed using sound 
engineering/scientific principles and appropriate standards. Design 
work, including changes, shall incorporate applicable requirements and 
design bases. Design interfaces shall be identified and controlled. The 
adequacy of design products shall be verified or validated by 
individuals or groups other than those who performed the work. 
Verification and validation work shall be completed before approval and 
implementation of the design.
    (iii) Procurement. Procured items and services shall meet 
established requirements and perform as specified. Prospective suppliers 
shall be evaluated and selected on the basis of specified criteria. 
Processes to ensure that approved suppliers continue to provide 
acceptable items and services shall be established and implemented.
    (iv) Inspection and Acceptance Testing. Inspection and testing of 
specified items, services, and processes shall be conducted using 
established acceptance and performance criteria. Equipment used for 
inspections and tests shall be calibrated and maintained.
    (3) Assessment--(i) Management Assessment. Managers shall assess 
their management processes. Problems that hinder the organization from 
achieving its objectives shall be identified and corrected.

[[Page 409]]

    (ii) Independent Assessment. Independent assessments shall be 
planned and conducted to measure item and service quality, to measure 
the adequacy of work performance, and to promote improvement. The group 
performing independent assessments shall have sufficient authority and 
freedom from the line to carry out its responsibilities. Persons 
conducting independent assessments shall be technically qualified and 
knowledgeable in the areas assessed.



                      Subpart B--Design [Reserved]



                    Subpart C--Operations [Reserved]



                Subpart D--Material Management [Reserved]



PART 835--OCCUPATIONAL RADIATION PROTECTION--Table of Contents




                      Subpart A--General Provisions

Sec.
835.1  Scope.
835.2  Definitions.
835.3  General rule.
835.4  Radiological units.

                Subpart B--Radiation Protection Programs

835.101  Radiation protection programs.
835.102  Internal audits.

         Subpart C--Standards for Internal and External Exposure

835.201  [Reserved]
835.202  Occupational exposure limits for general employees.
835.203  Combining internal and external dose equivalents resulting from 
          DOE activities.
835.204  Planned special exposures.
835.205  Determination of compliance for non-uniform exposure of the 
          skin.
835.206  Limits for the embryo/fetus.
835.207  Limits for minors.
835.208  Limits for members of the public entering a controlled area.
835.209  Concentrations of radioactive material in air.

                          Subpart D  [Reserved]

                 Subpart E--Monitoring in the Workplace

835.401  General requirements.
835.402  Individual monitoring.
835.403  Area monitoring.
835.404  Radioactive contamination control and monitoring.

                    Subpart F--Entry Control Program

835.501  Radiological areas.
835.502  High and very high radiation areas.

                     Subpart G--Posting and Labeling

835.601  General requirements.
835.602  Controlled areas.
835.603  Radiological areas.

                           Subpart H--Records

835.701  General provisions.
835.702  Individual monitoring records.
835.703  Monitoring and workplace records.
835.704  Administrative records.

                    Subpart I--Reports to Individuals

835.801  Reports to individuals.

                  Subpart J--Radiation Safety Training

835.901  General employees.
835.902  Radiological workers.
835.903  Radiological control technicians.

                      Subpart K--Design and Control

835.1001  Design and control.
835.1002  Facility design and modifications.
835.1003  Control procedures.

 Subpart L--Releases of Materials and Equipment From Radiological Areas

835.1101  Releases of materials and equipment from radiological areas.

                          Subpart M  [Reserved]

                  Subpart N--Accidents and Emergencies

835.1301  General provisions.
835.1302  Emergency exposure situations.
835.1303  [Reserved]
835.1304  Nuclear accident dosimetry.

Appendix A to Part 835--Derived Air Concentrations (DAC) for Controlling 
          Radiation Exposure to Workers at DOE Facilities
Appendix B to Part 835--Alternative Absorption Factors and Lung 
          Retention Classes for Specific Compounds
Appendix C to Part 835--Derived Air Concentrations (DAC) for Workers 
          From External Exposure During Immersion in a Contaminated 
          Atmospheric Cloud
Appendix D to Part 835--Surface Radioactivity Values
Appendix E to Part 835  [Reserved]

    Authority: 42 U.S.C. 2201; 7191.

[[Page 410]]


    Source: 58 FR 65485, Dec. 14, 1993, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 835.1  Scope.

    (a) General. The rules in this part establish radiation protection 
standards, limits, and program requirements for protecting individuals 
from ionizing radiation resulting from the conduct of DOE activities.
    (b) Exclusion. The requirements in this part do not apply to:
    (1) Activities that are regulated through a license by the Nuclear 
Regulatory Commission or a State under an Agreement with the Nuclear 
Regulatory Commission, including activities certified by the Nuclear 
Regulatory Commission under section 1701 of the Atomic Energy Act;
    (2) Activities conducted under the authority of the Director, Naval 
Nuclear Propulsion Program, as described in Pub. L. 98-525;
    (3) Activities conducted under the Nuclear Explosives and Weapons 
Safety Program relating to the prevention of accidental or unauthorized 
nuclear detonations; or
    (4) Background radiation, radiation doses received as a patient for 
the purposes of medical diagnosis or therapy, or radiation doses 
received from voluntary participation in medical research programs.



Sec. 835.2  Definitions.

    (a) As used in this part:
    Airborne radioactive material or airborne radioactivity means 
radioactive material in any chemical or physical form that is dissolved, 
mixed, suspended, or otherwise entrained in air.
    Airborne radioactivity area means any area where the measured 
concentration of airborne radioactivity, above natural background, 
exceeds or is likely to exceed 10 percent of the derived air 
concentration (DAC) values listed in appendix A or appendix C of this 
part.
    ALARA means ``As Low As is Reasonably Achievable,'' which is the 
approach to radiation protection to manage and control exposures (both 
individual and collective) to the work force and to the general public 
to as low as is reasonable, taking into account social, technical, 
economic, practical, and public policy considerations. As used in this 
part, ALARA is not a dose limit but a process which has the objective of 
attaining doses as far below the applicable limits of this part as is 
reasonably achievable.
    Ambient air means the general air in the area of interest (e.g., the 
general room atmosphere), as distinct from a specific stream or volume 
of air that may have different properties.
    Annual limit on intake (ALI) means the derived limit for the amount 
of radioactive material taken into the body of an adult worker by 
inhalation or ingestion in a year. ALI is the smaller value of intake of 
a given radionuclide in a year by the reference man (ICRP Publication 
23) that would result in a committed effective dose equivalent of 5 rems 
(0.05 sievert) or a committed dose equivalent of 50 rems (0.5 sievert) 
to any individual organ or tissue. ALI values for intake by ingestion 
and inhalation of selected radionuclides are based on Table 1 of the 
U.S. Environmental Protection Agency's Federal Guidance Report No. 11, 
Limiting Values of Radionuclide Intake and Air Concentration and Dose 
Conversion Factors for Inhalation, Submersion, and Ingestion, published 
September 1988. This document is available from the National Technical 
Information Service, Springfield, VA.
    Background means radiation from:
    (i) Naturally occurring radioactive materials which have not been 
technologically enhanced;
    (ii) Cosmic sources;
    (iii) Global fallout as it exists in the environment (such as from 
the testing of nuclear explosive devices);
    (iv) Radon and its progeny in concentrations or levels existing in 
buildings or the environment which have not been elevated as a result of 
current or prior activities; and
    (v) Consumer products containing nominal amounts of radioactive 
material or producing nominal amounts of radiation.
    Bioassay means the determination of kinds, quantities, or 
concentrations, and, in some cases, locations of radioactive material in 
the human body, whether by direct measurement or by analysis, and 
evaluation of radioactive

[[Page 411]]

materials excreted or removed from the human body.
    Calibration means to adjust and/or determine either:
    (i) The response or reading of an instrument relative to a standard 
(e.g., primary, secondary, or tertiary) or to a series of conventionally 
true values; or
    (ii) The strength of a radiation source relative to a standard 
(e.g., primary, secondary, or tertiary) or conventionally true value.
    Contamination area means any area where contamination levels are 
greater than the values specified in appendix D of this part, but less 
than or equal to 100 times those levels.
    Continuous air monitor (CAM) means an instrument that continuously 
samples and measures the levels of airborne radioactive materials on a 
``real-time'' basis and has alarm capabilities at preset levels.
    Contractor means any entity under contract with the Department of 
Energy with the responsibility to perform activities at a DOE site or 
facility.
    Controlled area means any area to which access is managed in order 
to protect individuals from exposure to radiation and/or radioactive 
material. Individuals who enter only the controlled area without 
entering radiological areas are not expected to receive a total 
effective dose equivalent of more than 100 mrem (0.001 sievert) in a 
year.
    Declared pregnant worker means a woman who has voluntarily declared 
to her employer, in writing, her pregnancy for the purpose of being 
subject to the occupational exposure limits to the embryo/fetus as 
provided in Sec. 835.206. This declaration may be revoked, in writing, 
at any time by the declared pregnant worker.
    Derived air concentration (DAC) means, for the radionuclides listed 
in appendix A of this part, the airborne concentration that equals the 
ALI divided by the volume of air breathed by an average worker for a 
working year of 2000 hours (assuming a breathing volume of 2400 m\3\). 
For the radionuclides listed in appendix C of this part, the air 
immersion DACs were calculated for a continuous, non-shielded exposure 
via immersion in a semi-infinite atmospheric cloud. The value is based 
upon the derived airborne concentration found in Table 1 of the U.S. 
Environmental Protection Agency's Federal Guidance Report No. 11, 
Limiting Values of Radionuclide Intake and Air Concentration and Dose 
Conversion Factors for Inhalation, Submersion, and Ingestion, published 
September 1988. This document is available from the National Technical 
Information Service, Springfield, VA.
    DOE activities means an activity taken for or by the DOE that has 
the potential to result in the occupational exposure of an individual to 
radiation or radioactive material. The activity may be, but is not 
limited to, design, construction, operation, or decommissioning. To the 
extent appropriate, the activity may involve a single DOE facility or 
operation or a combination of facilities and operations, possibly 
including an entire site.
    Entrance or access point means any location through which an 
individual could gain access to areas controlled for the purposes of 
radiation protection. This includes entry or exit portals of sufficient 
size to permit human entry, irrespective of their intended use.
    General employee means an individual who is either a DOE or DOE 
contractor employee; an employee of a subcontractor to a DOE contractor; 
or a visitor who performs work for or in conjunction with DOE or 
utilizes DOE facilities.
    High contamination area means any area where contamination levels 
are greater than 100 times the values specified in appendix D of this 
part.
    High radiation area means any area, accessible to individuals, in 
which radiation levels could result in an individual receiving a deep 
dose equivalent in excess of 0.1 rem (0.001 sievert) in 1 hour at 30 
centimeters from the radiation source or from any surface that the 
radiation penetrates.
    Individual means any human being.
    Member of the public means an individual who is not occupationally 
exposed to radiation or radioactive material. An individual is not a 
``member of the public'' during any period in which the individual 
receives occupational exposure.

[[Page 412]]

    Minor means an individual less than 18 years of age.
    Monitoring means actions intended to detect and quantify 
radiological conditions.
    Nonstochastic effects means effects due to radiation exposure for 
which the severity varies with the dose and for which a threshold 
normally exists (e.g., radiation-induced opacities within the lens of 
the eye).
    Occupational exposure means an individual's exposure to ionizing 
radiation (external and internal) as a result of that individual's work 
assignment. Occupational exposure does not include planned special 
exposures, exposure received as a medical patient, background radiation, 
or voluntary participation in medical research programs.
    Person means any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency, any State or political subdivision of, or any 
political entity within a State, any foreign government or nation or 
other entity, and any legal successor, representative, agent or agency 
of the foregoing; provided that person does not include the Department 
or the United States Nuclear Regulatory Commission.
    Radiation means ionizing radiation: alpha particles, beta particles, 
gamma rays, X-rays, neutrons, high-speed electrons, high-speed protons, 
and other particles capable of producing ions. Radiation as used in this 
part, does not include non-ionizing radiation, such as radio- or micro-
waves, or visible, infrared, or ultraviolet light.
    Radiation area means any area accessible to individuals in which 
radiation levels could result in an individual receiving a deep dose 
equivalent in excess of 0.005 rem (0.05 millisievert) in 1 hour at 30 
centimeters from the source or from any surface that the radiation 
penetrates.
    Radiological area means any area within a controlled area which must 
be posted as a ``radiation area,'' ``high radiation area,'' ``very high 
radiation area,'' ``contamination area,'' ``high contamination area,'' 
or ``airborne radioactivity area'' in accordance with Sec. 835.603.
    Radiological worker means a general employee whose job assignment 
involves operation of radiation producing devices or working with 
radioactive materials, or who is likely to be routinely occupationally 
exposed above 0.1 rem (0.001 sievert) per year total effective dose 
equivalent.
    Representative, as applied to the sampling of radioactive material, 
means sampling in such a manner that the sample closely approximates 
both the amount of activity and the physical and chemical properties of 
the material (e.g., particle size and solubility in the case of air 
sampling of the aerosol to which workers may be exposed).
    Stochastic effects means malignant and hereditary diseases for which 
the probability of an effect occurring, rather than its severity, is 
regarded as a function of dose without a threshold for radiation 
protection purposes.
    Survey means an evaluation of the radiological conditions and 
potential hazards incident to the production, use, transfer, release, 
disposal, or presence of radioactive material or other sources of 
radiation. When appropriate, such an evaluation includes a physical 
survey of the location of radioactive material and measurements or 
calculations of levels of radiation, or concentrations or quantities of 
radioactive material present.
    Very high radiation area means any area accessible to individuals in 
which radiation levels could result in an individual receiving an 
absorbed dose in excess of 500 rads (5 grays) in one hour at 1 meter 
from a radiation source or from any surface that the radiation 
penetrates.
    Year means the period of time beginning on or near January 1 used to 
determine compliance with the provisions of this part. The starting date 
of the year used to determine compliance may be changed provided that 
the change is made at the beginning of the year and that no day is 
omitted or duplicated in consecutive years.
    (b) As used in this part to describe various aspects of radiation 
dose:
    Absorbed dose (D) means the energy absorbed by matter from ionizing 
radiation per unit mass of irradiated material at the place of interest 
in that material. The absorbed dose is expressed

[[Page 413]]

in units of rad (or gray) (1 rad = 0.01 gray).
    Collective dose means the sum of the total effective dose equivalent 
values for all individuals in a specified population. Collective dose is 
expressed in units of person-rem (or person-sievert).
    Committed dose equivalent (HT,50) means the dose 
equivalent calculated to be received by a tissue or organ over a 50-year 
period after the intake of a radionuclide into the body. It does not 
include contributions from radiation sources external to the body. 
Committed dose equivalent is expressed in units of rem (or sievert).
    Committed effective dose equivalent (HE,50) means the sum 
of the committed dose equivalents to various tissues in the body 
(HT,50), each multiplied by the appropriate weighting factor 
(wT)--that is, HE,50 =  wT 
HT,50. Committed effective dose equivalent is expressed in 
units of rem (or sievert).
    Cumulative total effective dose equivalent means the sum of the 
total effective dose equivalents recorded for an individual for each 
year of employment at a DOE or DOE contractor site or facility, 
effective January 1, 1989.
    Deep dose equivalent means the dose equivalent derived from external 
radiation at a depth of 1 cm in tissue.
    Dose equivalent (H) means the product of absorbed dose (D) in rad 
(or gray) in tissue, a quality factor (Q), and other modifying factors 
(N). Dose equivalent is expressed in units of rem (or sievert) (1 rem = 
0.01 sievert).
    Effective dose equivalent (HE) means the summation of the 
products of the dose equivalent received by specified tissues of the 
body (HT) and the appropriate weighting factor 
(wT)--that is, HE =  wT 
HT. It includes the dose from radiation sources internal and/
or external to the body. The effective dose equivalent is expressed in 
units of rem (or sievert).
    External dose or exposure means that portion of the dose equivalent 
received from radiation sources (e.g., ``external sources'') outside the 
body.
    Extremity means hands and arms below the elbow or feet and legs 
below the knee.
    Internal dose or exposure means that portion of the dose equivalent 
received from radioactive material taken into the body (e.g., ``internal 
sources'').
    Lens of the eye dose equivalent means the external exposure of the 
lens of the eye and is taken as the dose equivalent at a tissue depth of 
0.3 cm.
    Quality factor means the principal modifying factor used to 
calculate the dose equivalent from the absorbed dose; the absorbed dose 
(expressed in rad or gray) is multiplied by the appropriate quality 
factor (Q).
    (i) The quality factors to be used for determining dose equivalent 
in rem are shown below:

                             Quality Factors                            
------------------------------------------------------------------------
                                                               Quality  
                       Radiation type                           factor  
------------------------------------------------------------------------
X-rays, gamma rays, positrons, electrons (including tritium             
 beta particles)...........................................            1
Neutrons,  10 keV...............................            3
Neutrons, > 10 keV.........................................           10
Protons and singly-charged particles of unknown energy with             
 rest mass greater than one atomic mass unit...............           10
Alpha particles and multiple-charged particles (and                     
 particles of unknown charge) of unknown energy............           20
------------------------------------------------------------------------
When spectral data are insufficient to identify the energy of the       
  neutrons, a quality factor of 10 shall be used.                       
                                                                        

    (ii) When spectral data are sufficient to identify the energy of the 
neutrons, the following mean quality factor values may be used:

                      Quality Factors for Neutrons                      
 [Mean quality factors, Q (maximum value in a 30-cm dosimetry phantom), 
 and values of neutron flux density that deliver in 40 hours, a maximum 
              dose equivalent of 100 mrem (0.001 sievert).]             
------------------------------------------------------------------------
                                                               Neutron  
                                                    Mean         flux   
             Neutron energy (MeV)                 quality    density (cm
                                                   factor      -2 s-1)  
------------------------------------------------------------------------
2.5 x 10 -8 thermal...........................            2          680
1 x 10 -7.....................................            2          680
1 x 10 -6.....................................            2          560
1 x 10 -5.....................................            2          560
1 x 10 -4.....................................            2          580
1 x 10 -3.....................................            2          680
1 x 10 -2.....................................          2.5          700
1 x 10 -1.....................................          7.5          115
5 x 10 -1.....................................           11           27
1.............................................           11           19
2.5...........................................            9           20
5.............................................            8           16
7.............................................            7           17
10............................................          6.5           17
14............................................          7.5           12
20............................................            8           11
40............................................            7           10
60............................................          5.5           11
1 x 10 2......................................            4           14
2 x 10 2......................................          3.5           13
3 x 10 2......................................          3.5           11

[[Page 414]]

                                                                        
4 x 10 2......................................          3.5           10
                                                                        
------------------------------------------------------------------------

    Shallow dose equivalent means the dose equivalent deriving from 
external radiation at a depth of 0.007 cm in tissue.
    Total effective dose equivalent (TEDE) means the sum of the 
effective dose equivalent (for external exposures) and the committed 
effective dose equivalent (for internal exposures). For purposes of 
compliance with this part, deep dose equivalent to the whole body may be 
used as effective dose equivalent for external exposures.
    Weighting factor (wT) means the fraction of the overall 
health risk, resulting from uniform, whole body irradiation, 
attributable to specific tissue (T). The dose equivalent to tissue, T, 
is multiplied by the appropriate weighting factor to obtain the 
effective dose equivalent contribution from that tissue. The weighting 
factors are as follows:

                  Weighting Factors For Various Tissues                 
------------------------------------------------------------------------
                                                              Weighting 
                    Organs or tissues, T                      factor, wT
------------------------------------------------------------------------
Gonads.....................................................         0.25
Breasts....................................................         0.15
Red bone marrow............................................         0.12
Lungs......................................................         0.12
Thyroid....................................................         0.03
Bone surfaces..............................................         0.03
Remainder 1................................................         0.30
Whole body 2...............................................        1.00 
------------------------------------------------------------------------
\1\ ``Remainder'' means the five other organs or tissues with the       
  highest dose (e.g., liver, kidney, spleen, thymus, adrenal, pancreas, 
  stomach, small intestine, and upper large intestine). The weighting   
  factor for each remaining organ or tissue is 0.06.                    
\2\ For the case of uniform external irradiation of the whole body, a   
  weighting factor (wT) equal to 1 may be used in determination of the  
  effective dose equivalent.                                            
                                                                        

    Whole body means, for the purposes of external exposure, head, trunk 
(including male gonads), arms above and including the elbow, or legs 
above and including the knee.
    (c) Terms defined in the Atomic Energy Act and not defined in this 
part are used consistent with the meanings given in the Act.
    (d) As used in this part, words in the singular also include the 
plural and words in the masculine gender also include the feminine and 
vice versa, as the case may be.



Sec. 835.3  General rule.

    (a) No person or DOE personnel shall take or cause to be taken any 
action inconsistent with the requirements of:
    (1) This part; or
    (2) Any program, plan, schedule, or other process established by 
this part.
    (b) With respect to a particular DOE activity, contractor management 
shall be responsible for compliance with the requirements of this part.
    (c) Where there is no contractor for a DOE activity, DOE shall 
ensure implementation of and compliance with the requirements of this 
part.
    (d) Nothing in this part shall be construed as limiting actions that 
may be necessary to protect health and safety.



Sec. 835.4  Radiological units.

    Unless otherwise specified, the quantities used in the records 
required by this part shall be clearly indicated in special units of 
curie, rad, or rem, including multiples and subdivisions of these units. 
The SI units, becquerel (Bq), gray (Gy), and sievert (Sv), are only 
provided parenthetically in this part for reference with scientific 
standards. These SI units are not authorized for use in records required 
under this part.



                Subpart B--Radiation Protection Programs



Sec. 835.101  Radiation protection programs.

    (a) A DOE activity shall be conducted in compliance with a 
documented radiation protection program (RPP) as approved by the DOE.
    (b) The DOE may direct or make modifications to a RPP.
    (c) The content of each RPP shall be commensurate with the nature of 
the activities performed and shall include formal plans and measures for 
applying the as low as reasonably achievable (ALARA) process to 
occupational exposure.

[[Page 415]]

    (d) The RPP shall specify the existing and/or anticipated 
operational tasks that are intended to be within the scope of the RPP. 
Except as provided in Sec. 835.101(i), any task outside the scope of a 
RPP shall not be initiated until an update of the RPP is approved by 
DOE.
    (e) The content of the RPP shall address, but shall not necessarily 
be limited to, each requirement in this part.
    (f) The RPP shall include plans, schedules, and other measures for 
achieving compliance with regulations of this part. Compliance with this 
part shall be achieved no later than January 1, 1996.
    (g) The RPP for an existing activity shall be submitted to DOE no 
later than January 1, 1995.
    (h) An update of the RPP shall be submitted to DOE:
    (1) Whenever a change or an addition to the RPP is made;
    (2) Prior to the initiation of a task not within the scope of the 
RPP; or
    (3) Within 180 days of the effective date of any modifications to 
this part.
    (i) Changes, additions, or updates to the RPP may become effective 
without prior Department approval only if the changes do not decrease 
the effectiveness of the RPP and the RPP, as changed, continues to meet 
the requirements of this part. Proposed changes that decrease the 
effectiveness of the RPP shall not be implemented without submittal to 
and approval by the Department.
    (j) An initial RPP or an update shall be considered approved 180 
days after its submission unless rejected by DOE at an earlier date.



Sec. 835.102  Internal audits.

    Internal audits of all functional elements of the radiation 
protection program shall be conducted no less frequently than every 3 
years and shall include program content and implementation.



         Subpart C--Standards for Internal and External Exposure



Sec. 835.201  [Reserved]



Sec. 835.202  Occupational exposure limits for general employees.

    (a) The occupational exposure to general employees resulting from 
DOE activities, other than planned special exposures under Sec. 835.204 
and emergency exposure situations under Sec. 835.1302, shall be 
controlled so the following annual limits are not exceeded:
    (1) A total effective dose equivalent of 5 rems (0.05 sievert);
    (2) The sum of the deep dose equivalent for external exposures and 
the committed dose equivalent to any organ or tissue other than the lens 
of the eye of 50 rems (0.5 sievert);
    (3) A lens of the eye dose equivalent of 15 rems (0.15 sievert); and
    (4) A shallow dose equivalent of 50 rems (0.5 sievert) to the skin 
or to any extremity.
    (b) All occupational exposure received during the current year shall 
be included when demonstrating compliance with Sec. 835.202(a).
    (c) Exposures from background, therapeutic and diagnostic medical 
radiation, and voluntary participation in medical research programs 
shall not be included in dose records or in the assessment of compliance 
with the occupational exposure limits.



Sec. 835.203  Combining internal and external dose equivalents resulting from DOE activities.

    (a) The total effective dose equivalent during a year shall be 
determined by summing the effective dose equivalent from external 
exposures and the committed effective dose equivalent from intakes 
during the year. For purposes of compliance with this part, deep dose 
equivalent to the whole body may be used as effective dose equivalent 
for external exposures.
    (b) Determinations of the effective dose equivalent shall be made 
using the

[[Page 416]]

weighting factor values provided in Sec. 835.2.
    (c) For the case of uniform external irradiation of the whole body, 
a weighting factor (wT) equal to 1 may be used in the 
determination of the effective dose equivalent.



Sec. 835.204  Planned special exposures.

    (a) A planned special exposure may be authorized for a radiological 
worker to receive doses in addition to and accounted for separately from 
the doses received under the limits specified in Sec. 835.202(a), 
provided that each of the following conditions is satisfied:
    (1) The planned special exposure is considered only in an 
exceptional situation when alternatives that might prevent a 
radiological worker from exceeding the limit in Sec. 835.202(a)(1) are 
unavailable or impractical;
    (2) The contractor management (and employer, if the employer is not 
the contractor) specifically requests the planned special exposure, in 
writing; and
    (3) Joint written approval from the appropriate DOE Headquarters 
program office and the Assistant Secretary for Environment, Safety and 
Health is received.
    (b) Prior to requesting an individual to participate in an 
authorized planned special exposure, the individual's dose from all 
previous planned special exposures and all doses in excess of the 
occupational dose limits shall be determined.
    (c) An individual shall not receive a planned special exposure that, 
in addition to the doses determined in Sec. 835.204(b), would result in 
a dose exceeding the following:
    (1) A total effective dose equivalent of 5 rems (0.05 sievert) in 
the current year; and
    (2) A cumulative total effective dose equivalent of 25 rems (0.25 
sievert).
    (d) Prior to a planned special exposure, written consent shall be 
obtained from each individual involved. Each individual shall be:
    (1) Informed of the purpose of the planned operations and procedures 
to be used;
    (2) Informed of the estimated doses and associated potential risks 
and specific radiological conditions and other hazards which might be 
involved in performing the task; and
    (3) Instructed in the measures to be taken to keep the dose ALARA 
considering other risks that may be present.
    (e) Records of the conduct of a planned special exposure shall be 
maintained and a written report submitted within 30 days after the 
planned special exposure to the approving organizations identified in 
Sec. 835.204(a)(3).
    (f) The dose from planned special exposures is not to be considered 
in controlling future occupational dose of the individual under 
Sec. 835.202(a), but is to be included in records and reports required 
under this part.



Sec. 835.205  Determination of compliance for non-uniform exposure of the skin.

    (a) Non-uniform exposures of the skin from X-rays, beta radiation, 
and/or radioactive material on the skin are to be assessed as specified 
in this section.
    (b) For purposes of demonstrating compliance with 
Sec. 835.202(a)(4), assessments shall be conducted as follows:
    (1) Area of skin irradiated is 100 cm\2\ or more. The non-uniform 
dose equivalent received during the year shall be averaged over the 100 
cm\2\ of the skin receiving the maximum dose, added to any uniform dose 
equivalent also received by the skin, and recorded as the shallow dose 
equivalent to any extremity or skin for the year.
    (2) Area of skin irradiated is 10 cm\2\ or more, but is less than 
100 cm\2\. The non-uniform dose equivalent (H) to the irradiated area 
received during the year shall be added to any uniform dose equivalent 
also received by the skin and recorded as the shallow dose equivalent to 
any extremity or skin for the year. H is the dose equivalent averaged 
over the 1 cm\2\ of skin receiving the maximum absorbed dose, D, reduced 
by the fraction f, which is the irradiated area in cm\2\ divided by 100 
cm\2\ (i.e., H=fD). In no case shall a value of f less than 0.1 be used.
    (3) Area of skin irradiated is less than 10 cm\2\. The non-uniform 
dose equivalent shall be averaged over the 1 cm \2\ of skin receiving 
the maximum dose. This dose equivalent shall:

[[Page 417]]

    (i) Be recorded in the individual's occupational exposure history as 
a special entry; and
    (ii) Not be added to any other shallow dose equivalent to any 
extremity or skin recorded as the dose equivalent for the year.



Sec. 835.206  Limits for the embryo/fetus.

    (a) The dose equivalent limit for the embryo/fetus from the period 
of conception to birth, as a result of occupational exposure of a 
declared pregnant worker, is 0.5 rem (0.005 sievert).
    (b) Substantial variation above a uniform exposure rate that would 
satisfy the limits provided in Sec. 835.206(a) shall be avoided.
    (c) If the dose equivalent to the embryo/fetus is determined to have 
already exceeded 0.5 rem (0.005 sievert) by the time a worker declares 
her pregnancy, the declared pregnant worker shall not be assigned to 
tasks where additional occupational exposure is likely during the 
remaining gestation period.



Sec. 835.207  Limits for minors.

    Any minor exposed to radiation and/or radioactive material during 
direct on-site access at a DOE site or facility shall not exceed 0.1 rem 
(0.001 sievert) total effective dose equivalent in a year.



Sec. 835.208  Limits for members of the public entering a controlled area.

    Any member of the public exposed to radiation and/or radioactive 
material during direct on-site access at a DOE site or facility shall 
not exceed 0.1 rem (0.001 sievert) total effective dose equivalent in a 
year.



Sec. 835.209  Concentrations of radioactive material in air.

    (a) The derived air concentration (DAC) values given in appendices A 
and C to this part shall be used in the control of occupational 
exposures to airborne radioactive material.
    (b) With regard to inhalation exposures and external exposures from 
airborne radionuclides, compliance with this part shall be demonstrated 
through conformity with Sec. 835.101 and Sec. 835.202 which establishes 
the applicable regulatory limits.
    (c) The estimation of internal dose shall be based on bioassay data 
rather than air concentration values unless bioassay data are:
    (1) Unavailable;
    (2) Inadequate; or
    (3) Internal dose estimates based on representative air 
concentration values are demonstrated to be as or more accurate.



                          Subpart D  [Reserved]



                 Subpart E--Monitoring in the Workplace



Sec. 835.401  General requirements.

    (a) Monitoring of individuals and areas shall be performed to:
    (1) Demonstrate compliance with the regulations in this part;
    (2) Document radiological conditions in the workplace;
    (3) Detect changes in radiological conditions;
    (4) Detect the gradual buildup of radioactive material in the 
workplace; and
    (5) Verify the effectiveness of engineering and process controls in 
containing radioactive material and reducing radiation exposure.
    (b) Area monitoring in the workplace shall be routinely performed, 
as necessary, to identify and control potential sources of personnel 
exposure to radiation and/or radioactive material.
    (c) Instruments used for monitoring and contamination control shall 
be:
    (1) Periodically maintained and calibrated on an established 
frequency of at least once per year;
    (2) Appropriate for the type(s), levels, and energies of the 
radiation(s) encountered;
    (3) Appropriate for existing environmental conditions; and
    (4) Routinely tested for operability.



Sec. 835.402  Individual monitoring.

    (a) For the purpose of monitoring individual exposures to external 
radiation, personnel dosimetry shall be provided to and used by:
    (1) Radiological workers who, under typical conditions, are likely 
to receive one or more of the following:

[[Page 418]]

    (i) An effective dose equivalent to the whole body of 0.1 rem (0.001 
sievert) or more in a year;
    (ii) A shallow dose equivalent to the skin or to any extremity of 5 
rems (0.05 sievert) or more in a year;
    (iii) A lens of the eye dose equivalent of 1.5 rems (0.015 sievert) 
or more in a year;
    (iv) A deep dose equivalent from external exposures to any organ or 
tissue other than the lens of the eye of 5 rems (0.05 sievert);
    (2) Declared pregnant workers who are likely to receive from 
external sources a dose equivalent to the embryo/fetus in excess of 10 
percent of the applicable limit in Sec. 835.206;
    (3) Minors and members of the public likely to receive, in 1 year, 
from external sources, a dose in excess of 50 percent of the applicable 
limits in Sec. 835.207 or Sec. 835.208, respectively; or
    (4) Individuals entering a high or very high radiation area.
    (b) Personnel external dosimetry programs shall be adequate to 
demonstrate compliance with Sec. 835.202, including routine dosimeter 
calibration and conformance with the requirements of the DOE Laboratory 
Accreditation Program for Personnel Dosimetry.
    (c) For the purpose of monitoring individual exposures to internal 
radiation, internal dose evaluation programs (including routine bioassay 
programs) shall be conducted for:
    (1) Radiological workers who, under typical conditions, are likely 
to receive 0.1 rem (0.001 sievert) or more committed effective dose 
equivalent, and/or 5 rems (0.05 sievert) or more committed dose 
equivalent to any organ or tissue, from all occupational radionuclide 
intakes in a year;
    (2) Declared pregnant workers likely to receive an intake resulting 
in a dose equivalent to the embryo/fetus in excess of 10 percent of the 
limit stated in Sec. 835.206; or
    (3) Minors and members of the public who are likely to receive, in 1 
year, an intake resulting in a committed effective dose equivalent in 
excess of 50 percent of the limits stated in Sec. 835.207 or 
Sec. 835.208, respectively.
    (d) Internal dose evaluation programs shall be adequate to 
demonstrate compliance with Sec. 835.202.



Sec. 835.403  Area monitoring.

    (a) Measurements of radioactivity concentrations in the ambient air 
of the workplace shall be performed as follows:
    (1) Air sampling shall be performed in occupied areas where, under 
typical conditions, an individual is likely to receive an annual intake 
of 2 percent or more of the specified ALI values. For a given 
radionuclide and lung retention class, the ALI is the product of the DAC 
listed in appendix A of this part and the constant 2.4 x 109 
ml. Samples shall be taken as necessary to detect and evaluate the level 
or concentration of airborne radioactive material at work locations.
    (2) Real-time air monitoring, using continuous air monitors as 
defined in Sec. 835.2, shall be performed in normally occupied areas 
where an individual is likely to be exposed to a concentration of 
airborne radioactivity exceeding 1 DAC as specified in appendix A of 
this part or where there is a need to alert potentially exposed 
individuals to unexpected increases in airborne radioactivity levels.
    (3) For the airborne radioactive material that could be encountered, 
real-time air monitors shall have alarm capability and sufficient 
sensitivity to alert potentially exposed individuals that immediate 
action is necessary in order to minimize or terminate inhalation 
exposures.
    (b) Monitoring of radiation in the workplace shall be performed 
using stationary (area) or portable radiation instruments, or a 
combination thereof. The instruments shall be readily available and 
shall be capable of measuring ambient radiation dose rates for the 
purpose of controlling radiation exposures.



Sec. 835.404  Radioactive contamination control and monitoring.

    (a) Instruments and techniques used for radioactive contamination 
monitoring and control shall be adequate to ensure compliance with the 
requirements specified in this section.

[[Page 419]]

    (b) Appropriate controls shall be maintained and verified which 
prevent the inadvertent transfer of removable contamination to locations 
outside of radiological areas under normal operating conditions.
    (c) Any area in which contamination levels exceed the values 
specified in appendix D of this part shall be:
    (1) Posted in accordance with Sec. 835.603; and
    (2) Controlled in a manner commensurate with the physical and 
chemical characteristics of the contaminant, the radionuclides present, 
and the fixed and removable contamination levels.
    (d) Areas with fixed contamination exceeding the total radioactivity 
values specified in appendix D of this part may be located outside of 
radiological areas provided the following conditions are met:
    (1) Removable contamination levels are below the levels specified in 
appendix D of this part;
    (2) Unrestricted access to the area is not likely to cause any 
individual to receive a total effective dose equivalent in excess of 0.1 
rem (0.001 sievert) in a year;
    (3) The area is routinely monitored;
    (4) The area is clearly marked to alert personnel of the 
contaminated status;
    (5) Appropriate administrative procedures are established and 
exercised to maintain control of these areas; and
    (6) Dose rates do not exceed levels which would require posting in 
accordance with Sec. 835.603.
    (e) Entry control pursuant to Sec. 835.501 and posting pursuant to 
Sec. 835.603 are not required for areas with fixed contamination meeting 
the conditions of Sec. 835.404(d).
    (f) Appropriate monitoring to detect and prevent the spread of 
contamination shall be performed by individuals exiting radiological 
areas established to control removable contamination and/or airborne 
radioactivity.
    (g) Protective clothing shall be required for entry to areas in 
which removable contamination exists at levels exceeding those specified 
in appendix D to this part.



                    Subpart F--Entry Control Program



Sec. 835.501  Radiological areas.

    (a) Personnel entry control shall be maintained for each 
radiological area.
    (b) The degree of control shall be commensurate with existing and 
potential radiological hazards within the area.
    (c) One or more of the following methods shall be used to ensure 
control:
    (1) Signs and barricades;
    (2) Control devices on entrances;
    (3) Conspicuous visual and/or audible alarms;
    (4) Locked entrance ways; or
    (5) Administrative controls.
    (d) Administrative procedures shall be written as necessary to 
demonstrate compliance with the provisions of this section. These 
administrative procedures shall include actions essential to ensure the 
effectiveness and operability of barricades, devices, alarms, and locks. 
Authorizations shall be required to perform specific work within the 
area and shall include specific radiation protection measures.
    (e) No control(s) shall be installed at any radiological area exit 
that would prevent rapid evacuation of personnel under emergency 
conditions.



Sec. 835.502  High and very high radiation areas.

    (a) High radiation areas. One or more of the following features 
shall be used for each entrance or access point to a high radiation area 
where radiation levels exist such that an individual could exceed a deep 
dose equivalent to the whole body of 1 rem (0.01 sievert) in any one 
hour at 30 centimeters from the source or from any surface that the 
radiation penetrates:
    (1) A control device that prevents entry to the area when high 
radiation levels exist or upon entry causes the radiation level to be 
reduced below that level defining a high radiation area;
    (2) A device that functions automatically to prevent use or 
operation of the radiation source or field while personnel are in the 
area;
    (3) A control device that energizes a conspicuous visible or audible 
alarm signal so that the individual entering

[[Page 420]]

the high radiation area and the supervisor of the activity are made 
aware of the entry;
    (4) Entryways that are locked. During periods when access to the 
area is required, positive control over each entry is maintained;
    (5) Continuous direct or electronic surveillance that is capable of 
preventing unauthorized entry;
    (6) A control device that will automatically generate audible and 
visual alarm signals to alert personnel in the area before use or 
operation of the radiation source and in sufficient time to permit 
evacuation of the area or activation of a secondary control device that 
will prevent use or operation of the source.
    (b) Very high radiation areas. In addition to the above 
requirements, additional measures shall be implemented to ensure 
individuals are not able to gain access to very high radiation areas 
when dose rates are in excess of the posting requirements of 
Sec. 835.603(c).
    (c) No control(s) shall be established in a high or very high 
radiation area that would prevent rapid evacuation of personnel.



                     Subpart G--Posting and Labeling



Sec. 835.601  General requirements.

    (a) Working areas that require posting because of the presence, or 
potential presence, of radiation and/or radioactive material are 
delineated in the subsequent paragraphs of this section. Radioactive 
items or containers of radioactive materials, shall be individually 
labeled if adequate warning is not provided by control measures and 
required posting.
    (b) DOE approved signs, labels, and radiation symbols shall be used 
to identify areas specified in this subpart.
    (c) Required signs and labels shall have a yellow background. The 
radiation symbol shall be black or magenta.
    (d) Signs required by this subpart shall be clear and conspicuously 
posted and may include radiological protection instructions.
    (e) The posting requirements in this section may be modified to 
reflect the special considerations of DOE activities conducted at 
private residences. Such modifications shall provide the same level of 
protection to individuals as the existing provisions in this section.



Sec. 835.602  Controlled areas.

    (a) Each access point to a controlled area (as defined in 
Sec. 835.2) shall be posted, identifying it as a controlled area, 
whenever radioactive material and/or radiation fields which would 
require posting under Sec. 835.603 may be present in the area.
    (b) Signs used for this purpose may be selected by the contractor to 
avoid conflict with local security requirements.



Sec. 835.603  Radiological areas.

    Each access point to a radiological area (as defined in Sec. 835.2) 
shall be posted with conspicuous signs bearing the wording provided in 
this section.
    (a) Radiation Area. The words ``Caution, Radiation Area'' shall be 
posted at any area accessible to individuals in which radiation levels 
could result in an individual receiving a deep dose equivalent in excess 
of 0.005 rem (0.05 millisievert) in 1 hour at 30 centimeters from the 
source or from any surface that the radiation penetrates.
    (b) High Radiation Area. The words ``Danger, High Radiation Area'' 
shall be posted at any area accessible to individuals in which radiation 
levels could result in an individual receiving a deep dose equivalent in 
excess of 0.1 rem (0.001 sievert) in 1 hour at 30 centimeters from the 
radiation source or from any surface that the radiation penetrates.
    (c) Very High Radiation Area. The words ``Grave Danger, Very High 
Radiation Area'' shall be posted at any area accessible to individuals 
in which radiation levels could result in an individual receiving an 
absorbed dose in excess of 500 rads (5 grays) in one hour at 1 meter 
from the radiation source or from any surface that the radiation 
penetrates.
    (d) Airborne Radioactivity Area. The words ``Caution, Airborne 
Radioactivity Area'' shall be posted for any occupied area in which 
airborne radioactivity levels exceed, or are likely to exceed, 10 
percent of the DAC value listed

[[Page 421]]

in appendix A or appendix C of this part.
    (e) Contamination Area. The words ``Caution, Contamination Area'' 
shall be posted where contamination levels exceed values listed in 
appendix D of this part, but are less than or equal to 100 times those 
values.
    (f) High Contamination Area. The words ``Danger, High Contamination 
Area'' shall be posted where contamination levels are greater than 100 
times the values listed in appendix D of this part.



                           Subpart H--Records



Sec. 835.701  General provisions.

    (a) Records shall be maintained to document compliance with this 
part and with radiation protection programs required by Sec. 835.101.
    (b) Unless otherwise specified in this subpart, records shall be 
retained until final disposition is authorized by DOE.



Sec. 835.702  Individual monitoring records.

    (a) Records shall be maintained to document doses received by all 
individuals for whom monitoring was required pursuant to Sec. 835.402 
and doses received during planned special exposures, accidents, and 
emergency conditions.
    (b) The results of individual external and internal dose 
measurements that are performed, but are not required by Sec. 835.402, 
shall be recorded. Recording of the non-uniform shallow dose equivalent 
to the skin caused by contamination on the skin (see Sec. 835.205) is 
not required if the dose is less than 2 percent of the limit specified 
for the skin in Sec. 835.202(a)(4).
    (c) The records required by this section shall:
    (1) Be sufficient to evaluate compliance with Sec. 835.202;
    (2) Be sufficient to provide dose information necessary to complete 
reports required by subpart I of this part and by Departmental 
requirements for occurrence reporting and processing;
    (3) Include the following quantities for external dose received 
during the year:
    (i) The effective dose equivalent from external sources of radiation 
(deep dose equivalent may be used as effective dose equivalent for 
external exposure);
    (ii) The lens of the eye dose equivalent;
    (iii) The shallow dose equivalent to the skin; and
    (iv) The shallow dose equivalent to the extremities.
    (4) Include the following quantities for internal dose resulting 
from intakes received during the year:
    (i) Committed effective dose equivalent;
    (ii) Committed dose equivalent to any organ or tissue of concern; 
and
    (iii) Estimated intake and identity of radionuclides.
    (5) Include the following quantities for the summation of the 
external and internal dose:
    (i) Total effective dose equivalent in a year;
    (ii) For any organ or tissue assigned an internal dose during the 
year, the sum of the deep dose equivalent from external exposures and 
the committed dose equivalent to that organ or tissue; and
    (iii) Cumulative total effective dose equivalent received from 
external and internal sources while employed at the site or facility, 
since January 1, 1989.
    (6) Include the dose equivalent to the embryo/fetus of a declared 
pregnant worker.
    (d) Documentation of all occupational exposure received during the 
current year shall be obtained when demonstrating compliance with 
Sec. 835.202(a). In the absence of formal records of previous 
occupational exposure during the year, a written estimate signed by the 
individual may be accepted.
    (e) Efforts shall be made to obtain records of prior years 
occupational internal and external exposure.
    (f) The records specified in this section that are identified with a 
specific individual shall be readily available to that individual.
    (g) Data necessary to allow future verification or reassessment of 
the recorded doses shall be recorded.
    (h) All records required by this section shall be transferred to the 
DOE upon cessation of activities at the site that could cause exposure 
to individuals.

[[Page 422]]



Sec. 835.703  Monitoring and workplace records.

    The following information shall be documented and maintained:
    (a) Results of surveys for radiation and radioactive material in the 
workplace as required by Secs. 835.401, 835.403, and 835.404;
    (b) Results of surveys, measurements, and calculations used to 
determine individual occupational exposure from external and internal 
sources;
    (c) Results of surveys for the release of material and equipment as 
required by Sec. 835.1101(d); and
    (d) Results of maintenance and calibration performed on:
    (1) Instruments used for area monitoring and contamination control 
as required by Sec. 835.401; and
    (2) Devices used for individual monitoring as required by 
Secs. 835.401 and 835.402.



Sec. 835.704  Administrative records.

    (a) Training records shall be maintained, as necessary, to 
demonstrate compliance with Secs. 835.901, 835.902, and 835.903.
    (b) Actions taken to maintain occupational exposures as low as 
reasonably achievable, including the actions required for this purpose 
by Sec. 835.101, as well as facility design and control actions required 
by Secs. 835.1001, 835.1002, and 835.1003, shall be documented.
    (c) Records shall be maintained to document the results of internal 
audits and other reviews of program content and implementation.
    (d) Written declarations of pregnancy shall be maintained.
    (e) Changes in equipment, techniques, and procedures used for 
monitoring in the workplace shall be documented.



                    Subpart I--Reports to Individuals



Sec. 835.801  Reports to individuals.

    (a) Radiation exposure data for individuals monitored in accordance 
with Sec. 835.402 shall be reported as specified in this section. The 
information shall include the data required under Sec.  835.702(c). Each 
notification and report shall be in writing and include: the DOE site or 
facility name, the name of the individual, and the individual's social 
security number or employee number.
    (b) Upon the request from an individual terminating employment, 
records of exposure shall be provided to that individual as soon as the 
data are available, but not later than 90 days after termination. A 
written estimate of the radiation dose received by that employee based 
on available information shall be provided at the time of termination, 
if requested.
    (c) Each DOE- or DOE-contractor-operated site or facility shall, on 
an annual basis, provide a radiation dose report to each individual 
monitored during the year at that site or facility in accordance with 
Sec. 835.402.
    (d) Detailed information concerning any individual's exposure shall 
be made available to the individual upon request of that individual, 
consistent with the provisions of the Privacy Act (5 U.S.C. 552a).
    (e) When a DOE contractor is required to report to the Department, 
pursuant to Departmental requirements for occurrence reporting and 
processing, any exposure of an individual to radiation and/or 
radioactive material, or planned special exposure in accordance with 
Sec. 835.204(e), the contractor shall also provide that individual with 
a report on his or her exposure data included therein. Such report shall 
be transmitted at a time not later than the transmittal to the 
Department.



                  Subpart J--Radiation Safety Training



Sec. 835.901  General employees.

    (a) All general employees shall be trained in radiation safety prior 
to receiving occupational exposure during access to controlled areas at 
a DOE site or facility. Allowance may be made for previous DOE training 
on generic radiation safety topics (i.e., those not specific to a site 
or facility), provided the training was received at another DOE site or 
facility within the past 2 years. Documentation of the previous training 
shall clearly identify the individual's name, date of training, topics 
covered, and name of the certifying individual. The knowledge of 
radiation safety possessed by general

[[Page 423]]

employees shall be verified by examination.
    (b) Retraining shall be provided when there is a significant change 
to radiation protection policies and procedures that affect general 
employees and shall be conducted at intervals not to exceed 2 years.



Sec. 835.902  Radiological workers.

    Radiological worker training programs and retraining shall be 
established and conducted at intervals not to exceed 2 years to 
familiarize the worker with the fundamentals of radiation protection and 
the ALARA process. Training shall include both classroom and applied 
training. Training shall either precede assignment as a radiological 
worker or be concurrent with assignment as a radiological worker if the 
worker is accompanied by and under the direct supervision of a trained 
radiological worker. Radiological worker training not specific to a 
given site or facility may be waived provided that: This training has 
been received at another DOE site or facility within the past 2 years; 
there is provision of proof-of-training in the form of a certification 
document containing the individual's name, date of training, and 
specific topics covered; and an appropriate official has certified the 
training of the individual. The knowledge of radiation safety possessed 
by radiological workers shall be verified by examination prior to an 
unsupervised assignment. The training shall include procedures specific 
to an individual's job assignment. The level of training is to be 
commensurate with each worker's assignment.



Sec. 835.903  Radiological control technicians.

    Training and retraining programs for radiological control 
technicians shall be established and conducted at intervals not to 
exceed 2 years to familiarize technicians with the fundamentals of 
radiation protection and the proper procedures for maintaining exposures 
ALARA. This program shall include both classroom and applied training. 
The training shall either precede performance of tasks assigned to 
radiological control technicians or be concurrent with such task 
assignments if the individual is accompanied by and under the direct 
supervision of a trained individual. The required level of knowledge of 
radiation safety possessed by radiological control technicians shall be 
verified by examination to include demonstration prior to any 
unsupervised work assignment. The training program shall include 
procedures specific to the site or facility where the technician is 
assigned. The level of training shall be commensurate with the 
technician's assignment. Allowance may be made for previous DOE training 
on generic radiation safety topics (i.e., those not specific to a site 
or facility), provided the training was received within the past 2 
years. Documentation of the previous training shall clearly identify the 
individual's name, date of training, topics covered, and name of the 
certifying individual.



                      Subpart K--Design and Control



Sec. 835.1001  Design and control.

    (a) Measures shall be taken to maintain radiation exposure in 
controlled areas as low as is reasonably achievable through facility and 
equipment design and administrative control. The primary methods used 
shall be physical design features (e.g., confinement, ventilation, 
remote handling, and shielding). Administrative controls and procedural 
requirements shall be employed only as supplemental methods to control 
radiation exposure.
    (b) For specific activities where use of physical design features 
are demonstrated to be impractical, administrative controls and 
procedural requirements shall be used to maintain radiation exposures 
ALARA.



Sec. 835.1002  Facility design and modifications.

    During the design of new facilities or modification of old 
facilities, the following objectives shall be adopted:
    (a) Optimization methods shall be used to assure that occupational 
exposure is maintained ALARA in developing and justifying facility 
design and physical controls.
    (b) The design objective for controlling personnel exposure from 
external

[[Page 424]]

sources of radiation in areas of continuous occupational occupancy (2000 
hours per year) shall be to maintain exposure levels below an average of 
0.5 mrem (5 microsieverts) per hour and as far below this average as is 
reasonably achievable. The design objectives for exposure rates for 
potential exposure to a radiological worker where occupancy differs from 
the above shall be ALARA and shall not exceed 20 percent of the 
applicable standards in Sec. 835.202.
    (c) Regarding the control of airborne radioactive material, the 
design objective shall be, under normal conditions, to avoid releases to 
the workplace atmosphere and in any situation, to control the inhalation 
of such material by workers to levels that are ALARA; confinement and 
ventilation shall normally be used.
    (d) The design or modification of a facility and the selection of 
materials shall include features that facilitate operations, 
maintenance, decontamination, and decommissioning.



Sec. 835.1003  Control procedures.

    (a) During routine operations, the combination of design features 
and administrative control procedures shall provide that:
    (1) The anticipated magnitude of the total effective dose equivalent 
shall not exceed 5 rems (0.05 sievert) in a year;
    (2) The anticipated magnitude of the committed dose equivalent to 
any organ or tissue, plus any deep dose equivalent from external 
exposure, shall not exceed 50 rems (0.5 sievert) in a year; and
    (3) Exposure levels are as low as reasonably achievable.
    (b) Compliance with the requirements in paragraph (a) of this 
section shall be demonstrated by appropriate monitoring pursuant to the 
provisions of subpart E of this part.



 Subpart L--Releases of Materials and Equipment From Radiological Areas



Sec. 835.1101  Releases of materials and equipment from radiological areas.

    The following requirements apply for the release of materials and 
equipment from radiological areas for use in controlled areas:
    (a) In radiological areas established to control surface or airborne 
radioactive material, material and equipment shall be treated as 
radioactive material and shall not be released from radiological areas 
to controlled areas if either of the following conditions exist:
    (1) Measurements of accessible surfaces show that either the total 
or removable contamination levels exceed the values specified in 
appendix D to this part; or
    (2) Prior use suggests that the contamination levels on inaccessible 
surfaces are likely to exceed the values specified in appendix D to this 
part.
    (b) Material and equipment exceeding the total or removable 
contamination levels specified in appendix D to this part may be 
conditionally released for movement on-site from one radiological area 
for immediate placement in another radiological area only if appropriate 
monitoring and control procedures are established and exercised.
    (c) Material and equipment with fixed contamination levels that 
exceed the limits specified in appendix D to this part may be released 
for use in controlled areas outside of the radiological areas with the 
following provisions:
    (1) Removable contamination levels are below the level specified in 
appendix D of this part; and
    (2) Materials shall be routinely monitored, clearly labeled, or 
tagged to alert personnel of the contaminated

[[Page 425]]

status; appropriate administrative procedures shall be established and 
exercised to maintain control of these items.
    (d) The records for release of material and equipment shall describe 
the property, date on which the release survey was performed, identity 
of the individual who performed the survey, type and identification 
number of the survey instrument used, and results of the survey.



                          Subpart M  [Reserved]



                  Subpart N--Accidents and Emergencies



Sec. 835.1301  General provisions.

    (a) A general employee whose occupational exposure has exceeded any 
of the limits specified in Secs. 835.202 or 835.205 may be permitted to 
return to work in radiological areas during the current year providing 
that all of the following conditions are met:
    (1) Approval is first obtained from the contractor management and 
the Head of the responsible DOE field organization;
    (2) The individual receives counseling from radiological protection 
and medical personnel regarding the consequences of receiving additional 
occupational exposure during the year; and
    (3) The affected employee agrees to return to radiological work.
    (b) All exposures exceeding the limits specified in Secs. 835.202 or 
835.205 shall be recorded in the affected individual's occupational 
exposure file and reported to the DOE in accordance with Departmental 
requirements for occurrence reporting and processing.
    (c) When the conditions under which the emergency or accident 
exposures were received have been eliminated, operating management shall 
notify the Head of the responsible DOE field organization.
    (d) Operations after an emergency or accidental exposure in excess 
of the limits specified in Secs. 835.202 or 835.205 may be resumed only 
with the approval of the DOE.
    (e) Occurrence reports to DOE regarding emergencies and/or accidents 
shall be prepared and submitted in accordance with Departmental 
requirements for occurrence reporting and processing.



Sec. 835.1302  Emergency exposure situations.

    (a) The risk of injury to those individuals involved in rescue and 
recovery operations shall be minimized.
    (b) Operating management shall weigh actual and potential risks to 
rescue and recover individuals against the benefits to be gained.
    (c) Rescue action that might involve substantial personal risk shall 
be performed by volunteers.
    (d) The dose limits for individuals performing these operations are 
as follows:

              Guidelines for Control of Emergency Exposures             
------------------------------------------------------------------------
   Dose limit \1\                                                       
    (whole body)         Activity performed            Conditions       
------------------------------------------------------------------------
5 rems                All.....................                          
10 rems.............  Protecting major          Where lower dose limit  
                       property.                 not practicable.       
25 rems.............  Lifesaving or protection  Where lower dose limit  
                       of large populations.     not practicable.       
25 rems               Lifesaving or protection  Only on a voluntary     
                       of large populations.     basis to personnel     
                                                 fully aware of the     
                                                 risks involved.        
------------------------------------------------------------------------
\1\ The lens of the eye dose limit is three times the listed values. The
  shallow dose limit to the skin of the whole body and the extremities  
  is ten times the listed values. These doses are in addition to and    
  accounted for separately from the doses received under the limits in  
  Secs.  835.202 and 835.205.                                           
                                                                        

    (e) Each individual selected shall be trained in accordance with 
Sec. 835.902 and briefed beforehand of the known or anticipated hazards 
to which the individual will be subjected.



Sec. 835.1303  [Reserved]



Sec. 835.1304  Nuclear accident dosimetry.

    (a) Installations possessing sufficient quantities of fissile 
material to potentially constitute a critical mass, such that the 
excessive exposure of personnel to radiation from a nuclear accident is 
possible, shall provide nuclear accident dosimetry for those personnel.
    (b) Nuclear accident dosimetry shall include the following:
    (1) A method to conduct initial screening of personnel involved in a 
nuclear accident to determine whether

[[Page 426]]

significant exposures to radiation occurred;
    (2) Methods and equipment for analysis of biological materials;
    (3) A system of fixed nuclear accident dosimeter units; and
    (4) Personal nuclear accident dosimeters worn by all personnel who 
enter locations in which installed criticality alarm systems are 
required.

Appendix A to Part 835--Derived Air Concentrations (DAC) for Controlling 
             Radiation Exposure to Workers at DOE Facilities

    The derived air concentrations (DAC) for limiting radiation 
exposures through inhalation of radionuclides by workers are listed in 
this appendix. The values are based on either a stochastic (committed 
effective dose equivalent) dose limit of 5 rems (0.05 Sv) or a non-
stochastic (organ) dose limit of 50 rems (0.5 Sv) per year, whichever is 
more limiting.

    Note: the 15 rems [0.15 Sv] dose limit for the lens of the eye does 
not appear as a critical organ dose limit.)

    The columns in this appendix contain the following information: (1) 
Radionuclide; (2) inhaled air DAC for lung retention class D, W, and Y 
in units of Ci/ml; (3) inhaled air DAC for lung retention class 
D, W, and Y in units of Bq/m 3; and (4) an indication of 
whether or not the DAC for each class is controlled by the stochastic 
(effective dose equivalent) or nonstochastic (tissue) dose. The classes 
D, W, and Y have been established to describe the clearance of inhaled 
radionuclides from the lung. This classification refers to the 
approximate length of retention in the pulmonary region. Thus, the range 
of half-times for retention in the pulmonary region is less than 10 days 
for class D (days), from 10 to 100 days for class W (weeks), and greater 
than 100 days for class Y (years). The DACs are listed by radionuclide, 
in order of increasing atomic mass, and are based on the assumption that 
the particle size distribution of the inhaled material is unknown and an 
assumed particle size distribution of 1 m is used. For 
situations where the particle size distribution is known to differ 
significantly from 1 m, appropriate corrections can be made to 
both the estimated dose to workers and the DACs.

[[Page 427]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                                        Inhaled air-lung retention class \3\               Inhaled air-lung retention class \3\           Stochastic or 
                                -------------------------------------------------------------------------------------------------------      organ 1    
          Radionuclide                             Ci/ml                                         Bq/m 3                       -----------------
                                -------------------------------------------------------------------------------------------------------                 
                                        D                W                Y                 D                W                Y            ( D/ W/ Y)   
--------------------------------------------------------------------------------------------------------------------------------------------------------
H-3 (Water) 2..................  2.E-05           2.E-05           2.E-05           8.E+05            8.E+05           8.E+05           St/St/St        
H-3 (Elemental) 2..............  5.E-01           5.E-01           5.E-01           2.E+10            2.E+10           2.E+10           St/St/St        
Be-7...........................         -         9.E-06           8.E-06                   -         3.E+05           3.E+05             /St/St        
Be-10..........................         -         6.E-08           6.E-09                   -         2.E+03           2.E+02             /St/St        
C-11 (Org) 2...................  2.E-04           2.E-04           2.E-04           6.E+06            6.E+06           6.E+06           St/St/St        
C-11 (CO) 2....................  5.E-04           5.E-04           5.E-04           2.E+07            2.E+07           2.E+07           St/St/St        
C-11 (CO2) 2...................  3.E-04           3.E-04           3.E-04           1.E+07            1.E+07           1.E+07           St/St/St        
C-14 (Org) 2...................  1.E-06           1.E-06           1.E-06           4.E+07            4.E+04           4.E+07           St/St/St        
C-14 (CO) 2....................  7.E-04           7.E-04           7.E-04           3.E+07            3.E+07           3.E+07           St/St/St        
C-14 (CO2) 2...................  9.E-05           9.E-05           9.E-05           3.E+06            3.E+06           3.E+06           St/St/St        
F-18...........................  3.E-05           4.E-05           3.E-05           1.E+06            1.E+06           1.E+06           St/St/St        
Na-22..........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Na-24..........................  2.E-06                  -                -         8.E+04                   -                -         St/  /          
Mg-28..........................  7.E-07           5.E-07                  -         3.E+04            2.E+04                  -         St/St/          
Al-26..........................  3.E-08           3.E-08                  -         1.E+03            1.E+03                  -         St/St/          
Si-31..........................  1.E-05           1.E-05           1.E-05           4.E+05            5.E+05           4.E+05           St/St/St        
Si-32..........................  1.E-07           5.E-08           2.E-09           4.E+03            2.E+03           8.E+01           St/St/St        
P-32...........................  4.E-07           2.E-07                  -         1.E+04            6.E+03                  -         St/St/          
P-33...........................  3.E-06           1.E-06                  -         1.E+05            4.E+04                  -         St/St/          
S-35...........................  7.E-06           9.E-07                  -         3.E+05            3.E+04                  -         St/St/          
S-35 (Gas).....................         -         6.E-06                  -                 -         2.E+05                  -           /St/          
Cl-36..........................  1.E-06           1.E-07                  -         4.E+04            4.E+03                  -         St/St/          
Cl-38..........................  2.E-05           2.E-05                  -         6.E+05            7.E+05                  -         St/St/          
Cl-39..........................  2.E-05           2.E-05                  -         8.E+05            9.E+05                  -         St/St/          
K-40...........................  2.E-07                  -                -         6.E+03                   -                -         St/  /          
K-42...........................  2.E-06                  -                -         7.E+04                   -                -         St/  /          
K-43...........................  4.E-06                  -                -         1.E+05                   -                -         St/  /          
K-44...........................  3.E-05                  -                -         1.E+06                   -                -         St/  /          
K-45...........................  5.E-05                  -                -         2.E+06                   -                -         St/  /          
Ca-41..........................         -         2.E-06                  -                 -         6.E+04                  -           /E/           
Ca-45..........................         -         3.E-07                  -                 -         1.E+04                  -           /St/          
Ca-47..........................         -         4.E-07                  -                 -         1.E+04                  -           /St/          
Sc-43..........................         -                -         1.E-05                   -                -         4.E+05             /  /St        
Sc-44m.........................         -                -         3.E-07                   -                -         1.E+04             /  /St        
Sc-44..........................         -                -         5.E-06                   -                -         2.E+05             /  /St        
Sc-46..........................         -                -         1.E-07                   -                -         4.E+03             /  /St        
Sc-47..........................         -                -         1.E-06                   -                -         5.E+04             /  /St        
Sc-48..........................         -                -         6.E-07                   -                -         2.E+04             /  /St        
Sc-49..........................         -                -         2.E-05                   -                -         8.E+05             /  /St        
Ti-44..........................  5.E-09           1.E-08           2.E-09           2.E+02            4.E+02           9.E+01           St/St/St        
Ti-45..........................  1.E-05           1.E-05           1.E-05           4.E+05            5.E+05           5.E+05           St/St/St        
V-47...........................  4.E-05           4.E-05                  -         1.E+06            1.E+06                  -         St/St/          
V-48...........................  4.E-07           3.E-07                  -         2.E+04            1.E+04                  -         St/St/          
V-49...........................  1.E-05           7.E-06                  -         5.E+05            3.E+05                  -         BS/St/          
Cr-48..........................  5.E-06           3.E-06           3.E-06           2.E+05            1.E+05           1.E+05           St/St/St        

[[Page 428]]

                                                                                                                                                        
Cr-49..........................  3.E-05           4.E-05           4.E-05           1.E+06            2.E+06           1.E+06           St/St/St        
Cr-51..........................  2.E-05           1.E-05           8.E-06           7.E+05            4.E+05           3.E+05           St/St/St        
Mn-51..........................  2.E-05           2.E-05                  -         8.E+05            9.E+05                  -         St/St/          
Mn-52m.........................  4.E-05           4.E-05                  -         1.E+06            2.E+06                  -         St/St/          
Mn-52..........................  5.E-07           4.E-07                  -         2.E+04            1.E+04                  -         St/St/          
Mn-53..........................  5.E-06           5.E-06                  -         2.E+05            2.E+05                  -         BS/St/          
Mn-54..........................  4.E-07           3.E-07                  -         1.E+04            1.E+04                  -         St/St/          
Mn-56..........................  6.E-06           9.E-06                  -         2.E+05            3.E+05                  -         St/St/          
Fe-52..........................  1.E-06           1.E-06                  -         5.E+04            4.E+04                  -         St/St/          
Fe-55..........................  8.E-07           2.E-06                  -         3.E+04            6.E+04                  -         St/St/          
Fe-59..........................  1.E-07           2.E-07                  -         5.E+03            8.E+03                  -         St/St/          
Fe-60..........................  3.E-09           8.E-09                  -         1.E+02            3.E+02                  -         St/St/          
Co-55..........................         -         1.E-06           1.E-06                   -         4.E+04           4.E+04             /St/St        
Co-56..........................         -         1.E-07           8.E-08                   -         5.E+03           3.E+03             /St/St        
Co-57..........................         -         1.E-06           3.E-07                   -         4.E+04           1.E+04             /St/St        
Co-58m.........................         -         4.E-05           3.E-05                   -         1.E+06           1.E+06             /St/St        
Co-58..........................         -         5.E-07           3.E-07                   -         2.E+04           1.E+04             /St/St        
Co-60m.........................         -         2.E-03           1.E-03                   -         6.E+07           4.E+07             /St/St        
Co-60..........................         -         7.E-08           1.E-08                   -         3.E+03           5.E+02             /St/St        
Co-61..........................         -         3.E-05           2.E-05                   -         1.E+06           9.E+05             /St/St        
Co-62m.........................         -         7.E-05           7.E-05                   -         3.E+06           2.E+06             /St/St        
Ni-56 (Inorg)..................  8.E-07           5.E-07                  -         3.E+04            2.E+04                  -         St/St/          
Ni-56 (Vapor)..................         -         5.E-07                  -                 -         2.E+04                  -           /St/          
Ni-57 (Inorg)..................  2.E-06           1.E-06                  -         7.E+04            5.E+04                  -         St/St/          
Ni-57 (Vapor)..................         -         3.E-06                  -                 -         1.E+05                  -           /St/          
Ni-59 (Inorg)..................  2.E-06           3.E-06                  -         6.E+04            1.E+05                  -         St/St/          
Ni-59 (Vapor)..................         -         8.E-07                  -                 -         3.E+04                  -           /St/          
Ni-63 (Inorg)..................  7.E-07           1.E-06                  -         3.E+04            4.E+04                  -         St/St/          
Ni-63 (Vapor)..................         -         3.E-07                  -                 -         1.E+04                  -           /St/          
Ni-65 (Inorg)..................  1.E-05           1.E-05                  -         4.E+05            5.E+05                  -         St/St/          
Ni-65 (Vapor)..................         -         7.E-06                  -                 -         3.E+05                  -           /St/          
Ni-66 (Inorg)..................  7.E-07           3.E-07                  -         3.E+04            1.E+04                  -         St/St/          
Ni-66 (Vapor)..................         -         1.E-06                  -                 -         5.E+04                  -           /St/          
Cu-60..........................  4.E-05           5.E-05           4.E-05           1.E+06            2.E+06           2.E+06           St/St/St        
Cu-61..........................  1.E-05           2.E-05           1.E-05           5.E+05            6.E+05           5.E+05           St/St/St        
Cu-64..........................  1.E-05           1.E-05           9.E-06           5.E+05            4.E+05           3.E+05           St/St/St        
Cu-67..........................  3.E-06           2.E-06           2.E-06           1.E+05            8.E+04           7.E+04           St/St/St        
Zn-62..........................         -                -         1.E-06                   -                -         4.E+04             /  /St        
Zn-63..........................         -                -         3.E-05                   -                -         1.E+06             /  /St        
Zn-65..........................         -                -         1.E-07                   -                -         4.E+03             /  /St        
Zn-69m.........................         -                -         3.E-06                   -                -         1.E+05             /  /St        
Zn-69..........................         -                -         6.E-05                   -                -         2.E+06             /  /St        
Zn-71m.........................         -                -         7.E-06                   -                -         3.E+05             /  /St        
Zn-72..........................         -                -         5.E-07                   -                -         2.E+04             /  /St        
Ga-65..........................  7.E-05           8.E-05                  -         3.E+06            3.E+06                  -         St/St/          

[[Page 429]]

                                                                                                                                                        
Ga-66..........................  1.E-06           1.E-06                  -         5.E+04            5.E+04                  -         St/St/          
Ga-67..........................  6.E-06           4.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Ga-68..........................  2.E-05           2.E-05                  -         6.E+05            8.E+05                  -         St/St/          
Ga-70..........................  7.E-05           8.E-05                  -         3.E+06            3.E+06                  -         St/St/          
Ga-72..........................  2.E-06           1.E-06                  -         6.E+04            5.E+04                  -         St/St/          
Ga-73..........................  6.E-06           6.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Ge-66..........................  1.E-05           8.E-06                  -         4.E+05            3.E+05                  -         St/St/          
Ge-67..........................  4.E-05           4.E-05                  -         1.E+06            2.E+06                  -         St/St/          
Ge-68..........................  2.E-06           4.E-08                  -         6.E+04            2.E+03                  -         St/St/          
Ge-69..........................  6.E-06           3.E-06                  -         2.E+05            1.E+05                  -         St/St/          
Ge-71..........................  2.E-04           2.E-05                  -         7.E+06            6.E+05                  -         St/St/          
Ge-75..........................  3.E-05           3.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Ge-77..........................  4.E-06           2.E-06                  -         2.E+05            9.E+04                  -         St/St/          
Ge-78..........................  9.E-06           9.E-06                  -         4.E+05            3.E+05                  -         St/St/          
As-69..........................         -         5.E-05                  -                 -         2.E+06                  -           /St/          
As-70..........................         -         2.E-05                  -                 -         8.E+05                  -           /St/          
As-71..........................         -         2.E-06                  -                 -         7.E+04                  -           /St/          
As-72..........................         -         6.E-07                  -                 -         2.E+04                  -           /St/          
As-73..........................         -         7.E-07                  -                 -         3.E+04                  -           /St/          
As-74..........................         -         3.E-07                  -                 -         1.E+04                  -           /St/          
As-76..........................         -         6.E-07                  -                 -         2.E+04                  -           /St/          
As-77..........................         -         2.E-06                  -                 -         8.E+04                  -           /St/          
As-78..........................         -         9.E-06                  -                 -         3.E+05                  -           /St/          
Se-70..........................  1.E-05           2.E-05                  -         6.E+05            7.E+05                  -         St/St/          
Se-73m.........................  6.E-05           6.E-05                  -         2.E+06            2.E+06                  -         St/St/          
Se-73..........................  6.E-06           7.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Se-75..........................  3.E-07           3.E-07                  -         1.E+04            9.E+03                  -         St/St/          
Se-79..........................  3.E-07           2.E-07                  -         1.E+04            9.E+03                  -         St/St/          
Se-81m.........................  3.E-05           3.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Se-81..........................  9.E-05           1.E-04                  -         3.E+06            4.E+06                  -         St/St/          
Se-83..........................  5.E-05           5.E-05                  -         2.E+06            2.E+06                  -         St/St/          
Br-74m.........................  1.E-05           2.E-05                  -         6.E+05            6.E+05                  -         St/St/          
Br-74..........................  3.E-05           3.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Br-75..........................  2.E-05           2.E-05                  -         7.E+05            8.E+05                  -         St/St/          
Br-76..........................  2.E-06           2.E-06                  -         7.E+04            7.E+04                  -         St/St/          
Br-77..........................  1.E-05           8.E-06                  -         4.E+05            3.E+05                  -         St/St/          
Br-80m.........................  7.E-06           6.E-06                  -         3.E+05            2.E+05                  -         St/St/          
Br-80..........................  8.E-05           9.E-05                  -         3.E+06            3.E+06                  -         St/St/          
Br-82..........................  2.E-06           2.E-06                  -         6.E+04            6.E+04                  -         St/St/          
Br-83..........................  3.E-05           3.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Br-84..........................  2.E-05           3.E-05                  -         9.E+05            1.E+06                  -         St/St/          
Rb-79..........................  5.E-05                  -                -         2.E+06                   -                -         St/  /          
Rb-81m.........................  1.E-04                  -                -         5.E+06                   -                -         St/  /          
Rb-81..........................  2.E-05                  -                -         8.E+05                   -                -         St/  /          
Rb-82m.........................  7.E-06                  -                -         3.E+05                   -                -         St/  /          
Rb-83..........................  4.E-07                  -                -         2.E+04                   -                -         St/  /          
Rb-84..........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Rb-86..........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Rb-87..........................  6.E-07                  -                -         2.E+04                   -                -         St/  /          
Rb-88..........................  3.E-05                  -                -         1.E+06                   -                -         St/  /          

[[Page 430]]

                                                                                                                                                        
Rb-89..........................  6.E-05                  -                -         2.E+06                   -                -         St/  /          
Sr-80..........................  5.E-06                  -         5.E-06           2.E+05                   -         2.E+05           St/  /St        
Sr-81..........................  3.E-05                  -         3.E-05           1.E+06                   -         1.E+06           St/  /St        
Sr-83..........................  3.E-06                  -         2.E-06           1.E+05                   -         5.E+04           St/  /St        
Sr-85m.........................  3.E-04                  -         3.E-04           9.E+06                   -         1.E+07           St/  /St        
Sr-85..........................  1.E-06                  -         7.E-07           4.E+04                   -         2.E+04           St/  /St        
Sr-87m.........................  5.E-05                  -         6.E-05           2.E+06                   -         2.E+06           St/  /St        
Sr-89..........................  3.E-07                  -         6.E-08           1.E+04                   -         2.E+03           St/  /St        
Sr-90..........................  8.E-09                  -         2.E-09           3.E+02                   -         6.E+01           BS/  /St        
Sr-91..........................  2.E-06                  -         1.E-06           9.E+04                   -         5.E+04           St/  /St        
Sr-92..........................  4.E-06                  -         3.E-06           1.E+05                   -         1.E+05           St/  /St        
Y-86m..........................         -         2.E-05           2.E-05                   -         9.E+05           9.E+05             /St/St        
Y-86...........................         -         1.E-06           1.E-06                   -         5.E+04           5.E+04             /St/St        
Y-87...........................         -         1.E-06           1.E-06                   -         5.E+04           5.E+04             /St/St        
Y-88...........................         -         1.E-07           1.E-07                   -         4.E+03           4.E+03             /St/St        
Y-90m..........................         -         5.E-06           5.E-06                   -         2.E+05           2.E+05             /St/St        
Y-90...........................         -         3.E-07           2.E-07                   -         1.E+04           9.E+03             /St/St        
Y-91m..........................         -         1.E-04           7.E-05                   -         4.E+06           3.E+06             /St/St        
Y-91...........................         -         7.E-08           5.E-08                   -         3.E+03           2.E+03             /St/St        
Y-92...........................         -         3.E-06           3.E-06                   -         1.E+05           1.E+05             /St/St        
Y-93...........................         -         1.E-06           1.E-06                   -         4.E+04           4.E+04             /St/St        
Y-94...........................         -         3.E-05           3.E-05                   -         1.E+06           1.E+06             /St/St        
Y-95...........................         -         6.E-05           6.E-05                   -         2.E+06           2.E+06             /St/St        
Zr-86..........................  2.E-06           1.E-06           1.E-06           6.E+04            4.E+04           4.E+04           St/St/St        
Zr-88..........................  9.E-08           2.E-07           1.E-07           3.E+03            7.E+03           5.E+03           St/St/St        
Zr-89..........................  2.E-06           1.E-06           1.E-06           5.E+04            4.E+04           4.E+04           St/St/St        
Zr-93..........................  3.E-09           1.E-08           2.E-08           1.E+02            4.E+02           9.E+02           BS/BS/BS        
Zr-95..........................  6.E-08           2.E-07           1.E-07           2.E+03            6.E+03           4.E+03           BS/St/St        
Zr-97..........................  8.E-07           6.E-07           5.E-07           3.E+04            2.E+04           2.E+04           St/St/St        
Nb-88..........................         -         1.E-04           9.E-05                   -         4.E+06           3.E+06             /St/St        
Nb-89 (66 min).................         -         2.E-05           2.E-05                   -         6.E+05           6.E+05             /St/St        
Nb-89 (122 min)................         -         8.E-06           7.E-06                   -         3.E+05           2.E+05             /St/St        
Nb-90..........................         -         1.E-06           1.E-06                   -         4.E+04           4.E+04             /St/St        
Nb-93m.........................         -         5.E-07           7.E-08                   -         2.E+04           3.E+03             /St/St        
Nb-94..........................         -         8.E-08           6.E-09                   -         3.E+03           2.E+02             /St/St        
Nb-95m.........................         -         1.E-06           9.E-07                   -         4.E+04           4.E+04             /St/St        
Nb-95..........................         -         5.E-07           5.E-07                   -         2.E+04           2.E+04             /St/St        
Nb-96..........................         -         1.E-06           1.E-06                   -         4.E+04           4.E+04             /St/St        
Nb-97..........................         -         3.E-05           3.E-05                   -         1.E+06           1.E+06             /St/St        
Nb-98..........................         -         2.E-05           2.E-05                   -         8.E+05           8.E+05             /St/St        
Mo-90..........................  3.E-06                  -         2.E-06           1.E+05                   -         7.E+04           St/  /St        
Mo-93m.........................  7.E-06                  -         6.E-06           3.E+05                   -         2.E+05           St/  /St        
Mo-93..........................  2.E-06                  -         7.E-08           8.E+04                   -         3.E+03           St/  /St        
Mo-99..........................  1.E-06                  -         6.E-07           4.E+04                   -         2.E+04           St/  /St        
Mo-101.........................  6.E-05                  -         6.E-05           2.E+06                   -         2.E+06           St/  /St        

[[Page 431]]

                                                                                                                                                        
Tc-93m.........................  7.E-05           1.E-04                  -         2.E+06            5.E+06                  -         St/St/          
Tc-93..........................  3.E-05           4.E-05                  -         1.E+06            2.E+06                  -         St/St/          
Tc-94m.........................  2.E-05           2.E-05                  -         7.E+05            9.E+05                  -         St/St/          
Tc-94..........................  8.E-06           1.E-05                  -         3.E+05            4.E+05                  -         St/St/          
Tc-96m.........................  1.E-04           1.E-04                  -         4.E+06            4.E+06                  -         St/St/          
Tc-96..........................  1.E-06           9.E-07                  -         5.E+04            3.E+04                  -         St/St/          
Tc-97m.........................  3.E-06           5.E-07                  -         1.E+05            2.E+04                  -         SW/St/          
Tc-97..........................  2.E-05           2.E-06                  -         8.E+05            9.E+04                  -         St/St/          
Tc-98..........................  7.E-07           1.E-07                  -         3.E+04            5.E+03                  -         St/St/          
Tc-99m.........................  6.E-05           1.E-04                  -         2.E+06            4.E+06                  -         St/St/          
Tc-99..........................  2.E-06           3.E-07                  -         8.E+04            1.E+04                  -         SW/St/          
Tc-101.........................  1.E-04           2.E-04                  -         5.E+06            6.E+06                  -         St/St/          
Tc-104.........................  3.E-05           4.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Ru-94..........................  2.E-05           3.E-05           2.E-05           7.E+05            1.E+06           9.E+05           St/St/St        
Ru-97..........................  8.E-06           5.E-06           5.E-06           3.E+05            2.E+05           2.E+05           St/St/St        
Ru-103.........................  7.E-07           4.E-07           3.E-07           3.E+04            2.E+04           1.E+04           St/St/St        
Ru-105.........................  6.E-06           6.E-06           5.E-06           2.E+05            2.E+05           2.E+05           St/St/St        
Ru-106.........................  4.E-08           2.E-08           5.E-09           1.E+03            8.E+02           2.E+02           St/St/St        
Rh-99m.........................  2.E-05           3.E-05           3.E-05           9.E+05            1.E+06           1.E+06           St/St/St        
Rh-99..........................  1.E-06           9.E-07           8.E-07           5.E+04            3.E+04           3.E+04           St/St/St        
Rh-100.........................  2.E-06           2.E-06           2.E-06           8.E+04            6.E+04           6.E+04           St/St/St        
Rh-101m........................  5.E-06           3.E-06           3.E-06           2.E+05            1.E+05           1.E+05           St/St/St        
Rh-101.........................  2.E-07           3.E-07           7.E-08           8.E+03            1.E+04           2.E+03           St/St/St        
Rh-102m........................  2.E-07           2.E-07           5.E-08           8.E+03            6.E+03           2.E+03           St/St/St        
Rh-102.........................  4.E-08           7.E-08           2.E-08           1.E+03            3.E+03           9.E+02           St/St/St        
Rh-103m........................  4.E-04           5.E-04           5.E-04           2.E+07            2.E+07           2.E+07           St/St/St        
Rh-105.........................  5.E-06           3.E-06           2.E-06           2.E+05            1.E+05           9.E+04           St/St/St        
Rh-106m........................  1.E-05           1.E-05           1.E-05           4.E+05            6.E+05           5.E+05           St/St/St        
Rh-107.........................  1.E-04           1.E-04           1.E-04           4.E+06            4.E+06           4.E+06           St/St/St        
Pd-100.........................  6.E-07           5.E-07           6.E-07           2.E+04            2.E+04           2.E+04           St/St/St        
Pd-101.........................  1.E-05           1.E-05           1.E-05           5.E+05            5.E+05           5.E+05           St/St/St        
Pd-103.........................  3.E-06           2.E-06           1.E-06           1.E+05            7.E+04           5.E+04           St/St/St        
Pd-107.........................  9.E-06           3.E-06           2.E-07           3.E+05            1.E+05           6.E+03           K /St/St        
Pd-109.........................  3.E-06           2.E-06           2.E-06           1.E+05            8.E+04           7.E+04           St/St/St        
Ag-102.........................  8.E-05           9.E-05           8.E-05           3.E+06            3.E+06           3.E+06           St/St/St        
Ag-103.........................  4.E-05           6.E-05           5.E-05           2.E+06            2.E+06           2.E+06           St/St/St        
Ag-104m........................  4.E-05           5.E-05           5.E-05           2.E+06            2.E+06           2.E+06           St/St/St        
Ag-104.........................  3.E-05           6.E-05           6.E-05           1.E+06            2.E+06           2.E+06           St/St/St        
Ag-105.........................  4.E-07           7.E-07           7.E-07           2.E+04            3.E+04           3.E+04           St/St/St        
Ag-106m........................  3.E-07           4.E-07           4.E-07           1.E+04            1.E+04           1.E+04           St/St/St        
Ag-106.........................  7.E-05           8.E-05           8.E-05           3.E+06            3.E+06           3.E+06           St/St/St        
Ag-108m........................  8.E-08           1.E-07           1.E-08           3.E+03            4.E+03           4.E+02           St/St/St        
Ag-110m........................  6.E-08           8.E-08           4.E-08           2.E+03            3.E+03           1.E+03           St/St/St        
Ag-111.........................  7.E-07           4.E-07           4.E-07           2.E+04            1.E+04           1.E+04           L /St/St        
Ag-112.........................  3.E-06           4.E-06           4.E-06           1.E+05            2.E+05           1.E+05           St/St/St        
Ag-115.........................  4.E-05           4.E-05           3.E-05           1.E+06            1.E+06           1.E+06           St/St/St        
Cd-104.........................  3.E-05           5.E-05           5.E-05           1.E+06            2.E+06           2.E+06           St/St/St        
Cd-107.........................  2.E-05           2.E-05           2.E-05           8.E+05            9.E+05           8.E+05           St/St/St        
Cd-109.........................  1.E-08           5.E-08           5.E-08           5.E+02            2.E+03           2.E+03           K /K /St        
Cd-113m........................  1.E-09           4.E-09           5.E-09           4.E+01            1.E+02           2.E+02           K /K /St        

[[Page 432]]

                                                                                                                                                        
Cd-113.........................  9.E-10           3.E-09           6.E-09           4.E+01            1.E+02           2.E+02           K /K /St        
Cd-115m........................  2.E-08           5.E-08           6.E-08           8.E+02            2.E+03           2.E+03           K /St/St        
Cd-115.........................  6.E-07           5.E-07           6.E-07           2.E+04            2.E+04           2.E+04           St/St/St        
Cd-117m........................  5.E-06           7.E-06           6.E-06           2.E+05            3.E+05           2.E+05           St/St/St        
Cd-117.........................  5.E-06           7.E-06           6.E-06           2.E+05            3.E+05           2.E+05           St/St/St        
In-109.........................  2.E-05           3.E-05                  -         7.E+05            1.E+06                  -         St/St/          
In-110 (69 min)................  2.E-05           2.E-05                  -         7.E+05            9.E+05                  -         St/St/          
In-110 (5 h)...................  7.E-06           8.E-06                  -         3.E+05            3.E+05                  -         St/St/          
In-111.........................  3.E-06           3.E-06                  -         1.E+05            1.E+05                  -         St/St/          
In-112.........................  3.E-04           3.E-04                  -         1.E+07            1.E+07                  -         St/St/          
In-113m........................  6.E-05           8.E-05                  -         2.E+06            3.E+06                  -         St/St/          
In-114m........................  3.E-08           4.E-08                  -         1.E+03            2.E+03                  -         St/St/          
In-115m........................  2.E-05           2.E-05                  -         7.E+05            7.E+05                  -         St/St/          
In-115.........................  6.E-10           2.E-09                  -         2.E+01            8.E+01                  -         St/St/          
In-116m........................  3.E-05           5.E-05                  -         1.E+06            2.E+06                  -         St/St/          
In-117m........................  1.E-05           2.E-05                  -         5.E+05            7.E+05                  -         St/St/          
In-117.........................  7.E-05           9.E-05                  -         3.E+06            3.E+06                  -         St/St/          
In-119m........................  5.E-05           6.E-05                  -         2.E+06            2.E+06                  -         St/St/          
Sn-110.........................  5.E-06           5.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Sn-111.........................  9.E-05           1.E-04                  -         4.E+06            4.E+06                  -         St/St/          
Sn-113.........................  5.E-07           2.E-07                  -         2.E+04            9.E+03                  -         St/St/          
Sn-117m........................  5.E-07           6.E-07                  -         2.E+04            2.E+04                  -         BS/St/          
Sn-119m........................  1.E-06           4.E-07                  -         4.E+04            1.E+04                  -         St/St/          
Sn-121m........................  4.E-07           2.E-07                  -         1.E+04            9.E+03                  -         St/St/          
Sn-121.........................  6.E-06           5.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Sn-123m........................  5.E-05           6.E-05                  -         2.E+06            2.E+06                  -         St/St/          
Sn-123.........................  3.E-07           7.E-08                  -         1.E+04            3.E+03                  -         St/St/          
Sn-125.........................  4.E-07           2.E-07                  -         1.E+04            5.E+03                  -         St/St/          
Sn-126.........................  2.E-08           3.E-08                  -         9.E+02            1.E+03                  -         St/St/          
Sn-127.........................  8.E-06           8.E-06                  -         3.E+05            3.E+05                  -         St/St/          
Sn-128.........................  1.E-05           1.E-05                  -         4.E+05            6.E+05                  -         St/St/          
Sb-115.........................  1.E-04           1.E-04                  -         4.E+06            5.E+06                  -         St/St/          
Sb-116m........................  3.E-05           6.E-05                  -         1.E+06            2.E+06                  -         St/St/          
Sb-116.........................  1.E-04           1.E-04                  -         4.E+06            5.E+06                  -         St/St/          
Sb-117.........................  9.E-05           1.E-04                  -         3.E+06            4.E+06                  -         St/St/          
Sb-118m........................  8.E-06           9.E-06                  -         3.E+05            3.E+05                  -         St/St/          
Sb-119.........................  2.E-05           1.E-05                  -         7.E+05            4.E+05                  -         St/St/          
Sb-120 (16 min)................  2.E-04           2.E-04                  -         7.E+06            8.E+06                  -         St/St/          
Sb-120 (6 d)...................  9.E-07           6.E-07                  -         3.E+04            2.E+04                  -         St/St/          
Sb-122.........................  1.E-06           4.E-07                  -         4.E+04            2.E+04                  -         St/St/          
Sb-124m........................  3.E-04           3.E-04                  -         1.E+07            9.E+06                  -         St/St/          
Sb-124.........................  4.E-07           1.E-07                  -         1.E+04            4.E+03                  -         St/St/          
Sb-125.........................  1.E-06           2.E-07                  -         4.E+04            8.E+03                  -         St/St/          
Sb-126m........................  8.E-05           8.E-05                  -         3.E+06            3.E+06                  -         St/St/          
Sb-126.........................  4.E-07           2.E-07                  -         2.E+04            8.E+03                  -         St/St/          

[[Page 433]]

                                                                                                                                                        
Sb-127.........................  9.E-07           4.E-07                  -         3.E+04            1.E+04                  -         St/St/          
Sb-128 (9 h)...................  2.E-06           1.E-06                  -         6.E+04            5.E+04                  -         St/St/          
Sb-128 (10 min)................  2.E-04           2.E-04                  -         6.E+06            7.E+06                  -         St/St/          
Sb-129.........................  4.E-06           4.E-06                  -         1.E+05            1.E+05                  -         St/St/          
Sb-130.........................  3.E-05           3.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Sb-131.........................  1.E-05           1.E-05                  -         4.E+05            4.E+05                  -         T /T /          
Te-116.........................  9.E-06           1.E-05                  -         3.E+05            5.E+05                  -         St/St/          
Te-121m........................  8.E-08           2.E-07                  -         3.E+03            6.E+03                  -         BS/St/          
Te-121.........................  2.E-06           1.E-06                  -         7.E+04            5.E+04                  -         St/St/          
Te-123m........................  9.E-08           2.E-07                  -         3.E+03            8.E+03                  -         BS/St/          
Te-123.........................  8.E-08           2.E-07                  -         3.E+03            7.E+03                  -         BS/BS/          
Te-125m........................  2.E-07           3.E-07                  -         7.E+03            1.E+04                  -         BS/St/          
Te-127m........................  1.E-07           1.E-07                  -         4.E+03            4.E+03                  -         BS/St/          
Te-127.........................  9.E-06           7.E-06                  -         4.E+05            3.E+05                  -         St/St/          
Te-129m........................  3.E-07           1.E-07                  -         1.E+04            4.E+03                  -         St/St/          
Te-129.........................  3.E-05           3.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Te-131m........................  2.E-07           2.E-07                  -         6.E+03            6.E+03                  -         T /T /          
Te-131.........................  2.E-06           2.E-06                  -         8.E+04            8.E+04                  -         T /T /          
Te-132.........................  9.E-08           9.E-08                  -         4.E+03            3.E+03                  -         T /T /          
Te-133m........................  2.E-06           2.E-06                  -         8.E+04            8.E+04                  -         T /T /          
Te-133.........................  9.E-06           9.E-06                  -         4.E+05            4.E+05                  -         T /T /          
Te-134.........................  1.E-05           1.E-05                  -         4.E+05            4.E+05                  -         T /T /          
I-120m.........................  9.E-06                  -                -         3.E+05                   -                -         St/  /          
I-120..........................  4.E-06                  -                -         1.E+05                   -                -         T /  /          
I-121..........................  7.E-06                  -                -         3.E+05                   -                -         T /  /          
I-123..........................  3.E-06                  -                -         1.E+05                   -                -         T /  /          
I-124..........................  3.E-08                  -                -         1.E+03                   -                -         T /  /          
I-125..........................  3.E-08                  -                -         1.E+03                   -                -         T /  /          
I-126..........................  1.E-08                  -                -         5.E+02                   -                -         T /  /          
I-128..........................  5.E-05                  -                -         2.E+06                   -                -         St/  /          
I-129..........................  4.E-09                  -                -         1.E+02                   -                -         T /  /          
I-130..........................  3.E-07                  -                -         1.E+04                   -                -         T /  /          
I-131..........................  2.E-08                  -                -         7.E+02                   -                -         T /  /          
I-132m.........................  4.E-06                  -                -         1.E+05                   -                -         T /  /          
I-132..........................  3.E-06                  -                -         1.E+05                   -                -         T /  /          
I-133..........................  1.E-07                  -                -         4.E+03                   -                -         T /  /          
I-134..........................  2.E-05                  -                -         7.E+05                   -                -         E /  /          
I-135..........................  7.E-07                  -                -         2.E+04                   -                -         T /  /          
Cs-125.........................  6.E-05                  -                -         2.E+06                   -                -         St/  /          
Cs-127.........................  4.E-05                  -                -         2.E+06                   -                -         St/  /          
Cs-129.........................  1.E-05                  -                -         5.E+05                   -                -         St/  /          
Cs-130.........................  8.E-05                  -                -         3.E+06                   -                -         St/  /          
Cs-131.........................  1.E-05                  -                -         5.E+05                   -                -         St/  /          
Cs-132.........................  2.E-06                  -                -         6.E+04                   -                -         St/  /          
Cs-134m........................  6.E-05                  -                -         2.E+06                   -                -         St/  /          
Cs-134.........................  4.E-08                  -                -         2.E+03                   -                -         St/  /          
Cs-135m........................  8.E-05                  -                -         3.E+06                   -                -         St/  /          
Cs-135.........................  5.E-07                  -                -         2.E+04                   -                -         St/  /          
Cs-136.........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Cs-137.........................  7.E-08                  -                -         2.E+03                   -                -         St/  /          

[[Page 434]]

                                                                                                                                                        
Cs-138.........................  2.E-05                  -                -         9.E+05                   -                -         St/  /          
Ba-126.........................  6.E-06                  -                -         2.E+05                   -                -         St/  /          
Ba-128.........................  7.E-07                  -                -         3.E+04                   -                -         St/  /          
Ba-131m........................  6.E-04                  -                -         2.E+07                   -                -         St/  /          
Ba-131.........................  3.E-06                  -                -         1.E+05                   -                -         St/  /          
Ba-133m........................  4.E-06                  -                -         1.E+05                   -                -         St/  /          
Ba-133.........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Ba-135m........................  5.E-06                  -                -         2.E+05                   -                -         St/  /          
Ba-139.........................  1.E-05                  -                -         5.E+05                   -                -         St/  /          
Ba-140.........................  6.E-07                  -                -         2.E+04                   -                -         St/  /          
Ba-141.........................  3.E-05                  -                -         1.E+06                   -                -         St/  /          
Ba-142.........................  6.E-05                  -                -         2.E+06                   -                -         St/  /          
La-131.........................  5.E-05           7.E-05                  -         2.E+06            3.E+06                  -         St/St/          
La-132.........................  4.E-06           5.E-06                  -         2.E+05            2.E+05                  -         St/St/          
La-135.........................  4.E-05           4.E-05                  -         2.E+06            2.E+06                  -         St/St/          
La-137.........................  3.E-08           1.E-07                  -         1.E+03            4.E+03                  -         L /E /          
La-138.........................  2.E-09           6.E-09                  -         5.E+01            2.E+02                  -         St/St/          
La-140.........................  6.E-07           5.E-07                  -         2.E+04            2.E+04                  -         St/St/          
La-141.........................  4.E-06           5.E-06                  -         1.E+05            2.E+05                  -         St/St/          
La-142.........................  9.E-06           1.E-05                  -         4.E+05            5.E+05                  -         St/St/          
La-143.........................  4.E-05           4.E-05                  -         2.E+06            1.E+06                  -         St/St/          
Ce-134.........................         -         3.E-07           3.E-07                   -         1.E+04           1.E+04             /St/St        
Ce-135.........................         -         2.E-06           2.E-06                   -         6.E+04           5.E+04             /St/St        
Ce-137m........................         -         2.E-06           2.E-06                   -         7.E+04           6.E+04             /St/St        
Ce-137.........................         -         6.E-05           5.E-05                   -         2.E+06           2.E+06             /St/St        
Ce-139.........................         -         3.E-07           3.E-07                   -         1.E+04           1.E+04             /St/St        
Ce-141.........................         -         3.E-07           2.E-07                   -         1.E+04           9.E+03             /St/St        
Ce-143.........................         -         8.E-07           7.E-07                   -         3.E+04           2.E+04             /St/St        
Ce-144.........................         -         1.E-08           6.E-09                   -         4.E+02           2.E+02             /St/St        
Pr-136.........................         -         1.E-04           9.E-05                   -         4.E+06           4.E+06             /St/St        
Pr-137.........................         -         6.E-05           6.E-05                   -         2.E+06           2.E+06             /St/St        
Pr-138m........................         -         2.E-05           2.E-05                   -         8.E+05           7.E+05             /St/St        
Pr-139.........................         -         5.E-05           5.E-05                   -         2.E+06           2.E+06             /St/St        
Pr-142m........................         -         7.E-05           6.E-05                   -         3.E+06           2.E+06             /St/St        
Pr-142.........................         -         8.E-07           8.E-07                   -         3.E+04           3.E+04             /St/St        
Pr-143.........................         -         3.E-07           3.E-07                   -         1.E+04           1.E+04             /St/St        
Pr-144.........................         -         5.E-05           5.E-05                   -         2.E+06           2.E+06             /St/St        
Pr-145.........................         -         4.E-06           3.E-06                   -         1.E+05           1.E+05             /St/St        
Pr-147.........................         -         8.E-05           8.E-05                   -         3.E+06           3.E+06             /St/St        
Nd-136.........................         -         2.E-05           2.E-05                   -         9.E+05           8.E+05             /St/St        
Nd-138.........................         -         3.E-06           2.E-06                   -         1.E+05           8.E+04             /St/St        
Nd-139m........................         -         7.E-06           6.E-06                   -         3.E+05           2.E+05             /St/St        
Nd-139.........................         -         1.E-04           1.E-04                   -         5.E+06           4.E+06             /St/St        
Nd-141.........................         -         3.E-04           3.E-04                   -         1.E+07           9.E+06             /St/St        
Nd-147.........................         -         4.E-07           3.E-07                   -         2.E+04           1.E+04             /St/St        

[[Page 435]]

                                                                                                                                                        
Nd-149.........................         -         1.E-05           1.E-05                   -         4.E+05           4.E+05             /St/St        
Nd-151.........................         -         8.E-05           8.E-05                   -         3.E+06           3.E+06             /St/St        
Pm-141.........................         -         8.E-05           7.E-05                   -         3.E+06           3.E+06             /St/St        
Pm-143.........................         -         3.E-07           3.E-07                   -         9.E+03           1.E+04             /St/St        
Pm-144.........................         -         5.E-08           5.E-08                   -         2.E+03           2.E+03             /St/St        
Pm-145.........................         -         7.E-08           8.E-08                   -         3.E+03           3.E+03             /BS/St        
Pm-146.........................         -         2.E-08           2.E-08                   -         8.E+02           7.E+02             /St/St        
Pm-147.........................         -         6.E-08           6.E-08                   -         2.E+03           2.E+03             /BS/St        
Pm-148m........................         -         1.E-07           1.E-07                   -         5.E+03           5.E+03             /St/St        
Pm-148.........................         -         2.E-07           2.E-07                   -         8.E+03           8.E+03             /St/St        
Pm-149.........................         -         8.E-07           8.E-07                   -         3.E+04           3.E+04             /St/St        
Pm-150.........................         -         8.E-06           7.E-06                   -         3.E+05           3.E+05             /St/St        
Pm-151.........................         -         2.E-06           1.E-06                   -         6.E+04           5.E+04             /St/St        
Sm-141m........................         -         4.E-05                  -                 -         2.E+06                  -           /St/          
Sm-141.........................         -         7.E-05                  -                 -         3.E+06                  -           /St/          
Sm-142.........................         -         1.E-05                  -                 -         4.E+05                  -           /St/          
Sm-145.........................         -         2.E-07                  -                 -         8.E+03                  -           /St/          
Sm-146.........................         -         1.E-11                  -                 -         6.E-01                  -           /BS/          
Sm-147.........................         -         2.E-11                  -                 -         6.E-01                  -           /BS/          
Sm-151.........................         -         4.E-08                  -                 -         2.E+03                  -           /BS/          
Sm-153.........................         -         1.E-06                  -                 -         4.E+04                  -           /St/          
Sm-155.........................         -         9.E-05                  -                 -         3.E+06                  -           /St/          
Sm-156.........................         -         4.E-06                  -                 -         1.E+05                  -           /St/          
Eu-145.........................         -         8.E-07                  -                 -         3.E+04                  -           /St/          
Eu-146.........................         -         5.E-07                  -                 -         2.E+04                  -           /St/          
Eu-147.........................         -         7.E-07                  -                 -         3.E+04                  -           /St/          
Eu-148.........................         -         2.E-07                  -                 -         6.E+03                  -           /St/          
Eu-149.........................         -         1.E-06                  -                 -         5.E+04                  -           /St/          
Eu-150 (12 h)..................         -         3.E-06                  -                 -         1.E+05                  -           /St/          
Eu-150 (34 yr).................         -         8.E-09                  -                 -         3.E+02                  -           /St/          
Eu-152m........................         -         3.E-06                  -                 -         1.E+05                  -           /St/          
Eu-152.........................         -         1.E-08                  -                 -         4.E+02                  -           /St/          
Eu-154.........................         -         8.E-09                  -                 -         3.E+02                  -           /St/          
Eu-155.........................         -         4.E-08                  -                 -         1.E+03                  -           /BS/          
Eu-156.........................         -         2.E-07                  -                 -         7.E+03                  -           /St/          
Eu-157.........................         -         2.E-06                  -                 -         7.E+04                  -           /St/          
Eu-158.........................         -         2.E-05                  -                 -         9.E+05                  -           /St/          
Gd-145.........................  7.E-05           7.E-05                  -         2.E+06            3.E+06                  -         St/St/          
Gd-146.........................  5.E-08           1.E-07                  -         2.E+03            4.E+03                  -         St/St/          
Gd-147.........................  2.E-06           2.E-06                  -         6.E+04            5.E+04                  -         St/St/          
Gd-148.........................  3.E-12           1.E-11                  -         1.E-01            5.E-01                  -         BS/BS/          
Gd-149.........................  9.E-07           1.E-06                  -         3.E+04            4.E+04                  -         St/St/          
Gd-151.........................  2.E-07           5.E-07                  -         6.E+03            2.E+04                  -         BS/St/          
Gd-152.........................  4.E-12           2.E-11                  -         2.E-01            6.E-01                  -         BS/BS/          
Gd-153.........................  6.E-08           3.E-07                  -         2.E+03            9.E+03                  -         BS/St/          
Gd-159.........................  3.E-06           2.E-06                  -         1.E+05            9.E+04                  -         St/St/          
Tb-147.........................         -         1.E-05                  -                 -         5.E+05                  -           /St/          
Tb-149.........................         -         3.E-07                  -                 -         1.E+04                  -           /St/          
Tb-150.........................         -         9.E-06                  -                 -         3.E+05                  -           /St/          
Tb-151.........................         -         4.E-06                  -                 -         1.E+05                  -           /St/          

[[Page 436]]

                                                                                                                                                        
Tb-153.........................         -         3.E-06                  -                 -         1.E+05                  -           /St/          
Tb-154.........................         -         2.E-06                  -                 -         7.E+04                  -           /St/          
Tb-155.........................         -         3.E-06                  -                 -         1.E+05                  -           /St/          
Tb-156m (24 h).................         -         3.E-06                  -                 -         1.E+05                  -           /St/          
Tb-156m (5 h)..................         -         1.E-05                  -                 -         4.E+05                  -           /St/          
Tb-156.........................         -         6.E-07                  -                 -         2.E+04                  -           /St/          
Tb-157.........................         -         1.E-07                  -                 -         5.E+03                  -           /BS/          
Tb-158.........................         -         8.E-09                  -                 -         3.E+02                  -           /St/          
Tb-160.........................         -         1.E-07                  -                 -         4.E+03                  -           /St/          
Tb-161.........................         -         7.E-07                  -                 -         2.E+04                  -           /St/          
Dy-155.........................         -         1.E-05                  -                 -         4.E+05                  -           /St/          
Dy-157.........................         -         3.E-05                  -                 -         1.E+06                  -           /St/          
Dy-159.........................         -         1.E-06                  -                 -         4.E+04                  -           /St/          
Dy-165.........................         -         2.E-05                  -                 -         7.E+05                  -           /St/          
Dy-166.........................         -         3.E-07                  -                 -         1.E+04                  -           /St/          
Ho-155.........................         -         7.E-05                  -                 -         2.E+06                  -           /St/          
Ho-157.........................         -         6.E-04                  -                 -         2.E+07                  -           /St/          
Ho-159.........................         -         4.E-04                  -                 -         2.E+07                  -           /St/          
Ho-161.........................         -         2.E-04                  -                 -         7.E+06                  -           /St/          
Ho-162m........................         -         1.E-04                  -                 -         4.E+06                  -           /St/          
Ho-162.........................         -         1.E-03                  -                 -         4.E+07                  -           /St/          
Ho-164m........................         -         1.E-04                  -                 -         5.E+06                  -           /St/          
Ho-164.........................         -         3.E-04                  -                 -         1.E+07                  -           /St/          
Ho-166m........................         -         3.E-09                  -                 -         1.E+02                  -           /St/          
Ho-166.........................         -         7.E-07                  -                 -         3.E+04                  -           /St/          
Ho-167.........................         -         2.E-05                  -                 -         9.E+05                  -           /St/          
Er-161.........................         -         3.E-05                  -                 -         1.E+06                  -           /St/          
Er-165.........................         -         8.E-05                  -                 -         3.E+06                  -           /St/          
Er-169.........................         -         1.E-06                  -                 -         4.E+04                  -           /St/          
Er-171.........................         -         4.E-06                  -                 -         2.E+05                  -           /St/          
Er-172.........................         -         6.E-07                  -                 -         2.E+04                  -           /St/          
Tm-162.........................         -         1.E-04                  -                 -         4.E+06                  -           /St/          
Tm-166.........................         -         6.E-06                  -                 -         2.E+05                  -           /St/          
Tm-167.........................         -         8.E-07                  -                 -         3.E+04                  -           /St/          
Tm-170.........................         -         9.E-08                  -                 -         3.E+03                  -           /St/          
Tm-171.........................         -         1.E-07                  -                 -         5.E+03                  -           /BS/          
Tm-172.........................         -         5.E-07                  -                 -         2.E+04                  -           /St/          
Tm-173.........................         -         5.E-06                  -                 -         2.E+05                  -           /St/          
Tm-175.........................         -         1.E-04                  -                 -         4.E+06                  -           /St/          
Yb-162.........................         -         1.E-04           1.E-04                   -         5.E+06           4.E+06             /St/St        
Yb-166.........................         -         8.E-07           8.E-07                   -         3.E+04           3.E+04             /St/St        
Yb-167.........................         -         3.E-04           3.E-04                   -         1.E+07           1.E+07             /St/St        
Yb-169.........................         -         3.E-07           3.E-07                   -         1.E+04           1.E+04             /St/St        
Yb-175.........................         -         1.E-06           1.E-06                   -         5.E+04           5.E+04             /St/St        
Yb-177.........................         -         2.E-05           2.E-05                   -         8.E+05           7.E+05             /St/St        

[[Page 437]]

                                                                                                                                                        
Yb-178.........................         -         2.E-05           1.E-05                   -         6.E+05           6.E+05             /St/St        
Lu-169.........................         -         2.E-06           2.E-06                   -         7.E+04           7.E+04             /St/St        
Lu-170.........................         -         9.E-07           8.E-07                   -         3.E+04           3.E+04             /St/St        
Lu-171.........................         -         8.E-07           8.E-07                   -         3.E+04           3.E+04             /St/St        
Lu-172.........................         -         5.E-07           5.E-07                   -         2.E+04           2.E+04             /St/St        
Lu-173.........................         -         1.E-07           1.E-07                   -         4.E+03           4.E+03             /BS/St        
Lu-174m........................         -         1.E-07           9.E-08                   -         4.E+03           3.E+03             /BS/St        
Lu-174.........................         -         5.E-08           7.E-08                   -         2.E+03           2.E+03             /BS/St        
Lu-176m........................         -         1.E-05           1.E-05                   -         4.E+05           4.E+05             /St/St        
Lu-176.........................         -         2.E-09           3.E-09                   -         7.E+01           1.E+02             /BS/St        
Lu-177m........................         -         5.E-08           3.E-08                   -         2.E+03           1.E+03             /BS/St        
Lu-177.........................         -         9.E-07           9.E-07                   -         3.E+04           3.E+04             /St/St        
Lu-178m........................         -         8.E-05           7.E-05                   -         3.E+06           3.E+06             /St/St        
Lu-178.........................         -         5.E-05           5.E-05                   -         2.E+06           2.E+06             /St/St        
Lu-179.........................         -         8.E-06           6.E-06                   -         3.E+05           2.E+05             /St/St        
Hf-170.........................  2.E-06           2.E-06                  -         9.E+04            7.E+04                  -         St/St/          
Hf-172.........................  4.E-09           2.E-08                  -         1.E+02            6.E+02                  -         BS/BS/          
Hf-173.........................  5.E-06           5.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Hf-175.........................  4.E-07           5.E-07                  -         2.E+04            2.E+04                  -         BS/St/          
Hf-177m........................  2.E-05           4.E-05                  -         9.E+05            1.E+06                  -         St/St/          
Hf-178m........................  6.E-10           2.E-09                  -         2.E+01            8.E+01                  -         BS/BS/          
Hf-179m........................  1.E-07           3.E-07                  -         5.E+03            9.E+03                  -         BS/St/          
Hf-180m........................  9.E-06           1.E-05                  -         3.E+05            4.E+05                  -         St/St/          
Hf-181.........................  7.E-08           2.E-07                  -         3.E+03            7.E+03                  -         BS/St/          
Hf-182m........................  4.E-05           6.E-05                  -         1.E+06            2.E+06                  -         St/St/          
Hf-182.........................  3.E-10           1.E-09                  -         1.E+01            5.E+01                  -         BS/BS/          
Hf-183.........................  2.E-05           2.E-05                  -         7.E+05            8.E+05                  -         St/St/          
Hf-184.........................  3.E-06           3.E-06                  -         1.E+05            1.E+05                  -         St/St/          
Ta-172.........................         -         5.E-05           4.E-05                   -         2.E+06           2.E+06             /St/St        
Ta-173.........................         -         8.E-06           7.E-06                   -         3.E+05           3.E+05             /St/St        
Ta-174.........................         -         4.E-05           4.E-05                   -         1.E+06           1.E+06             /St/St        
Ta-175.........................         -         7.E-06           6.E-06                   -         3.E+05           2.E+05             /St/St        
Ta-176.........................         -         5.E-06           5.E-06                   -         2.E+05           2.E+05             /St/St        
Ta-177.........................         -         8.E-06           7.E-06                   -         3.E+05           3.E+05             /St/St        
Ta-178.........................         -         4.E-05           3.E-05                   -         1.E+06           1.E+06             /St/St        
Ta-179.........................         -         2.E-06           4.E-07                   -         8.E+04           1.E+04             /St/St        
Ta-180m........................         -         3.E-05           2.E-05                   -         1.E+06           9.E+05             /St/St        
Ta-180.........................         -         2.E-07           1.E-08                   -         7.E+03           4.E+02             /St/St        
Ta-182m........................         -         2.E-04           2.E-04                   -         8.E+06           6.E+06             /St/St        
Ta-182.........................         -         1.E-07           6.E-08                   -         5.E+03           2.E+03             /St/St        
Ta-183.........................         -         5.E-07           4.E-07                   -         2.E+04           2.E+04             /St/St        
Ta-184.........................         -         2.E-06           2.E-06                   -         8.E+04           7.E+04             /St/St        
Ta-185.........................         -         3.E-05           3.E-05                   -         1.E+06           1.E+06             /St/St        
Ta-186.........................         -         1.E-04           9.E-05                   -         4.E+06           3.E+06             /St/St        
W-176..........................  2.E-05                  -                -         8.E+05                   -                -         St/  /          
W-177..........................  4.E-05                  -                -         1.E+06                   -                -         St/  /          
W-178..........................  8.E-06                  -                -         3.E+05                   -                -         St/  /          
W-179..........................  7.E-04                  -                -         3.E+07                   -                -         St/  /          
W-181..........................  1.E-05                  -                -         5.E+05                   -                -         St/  /          
W-185..........................  3.E-06                  -                -         1.E+05                   -                -         St/  /          

[[Page 438]]

                                                                                                                                                        
W-187..........................  4.E-06                  -                -         2.E+05                   -                -         St/  /          
W-188..........................  5.E-07                  -                -         2.E+04                   -                -         St/  /          
Re-177.........................  1.E-04           2.E-04                  -         4.E+06            5.E+06                  -         St/St/          
Re-178.........................  1.E-04           1.E-04                  -         4.E+06            4.E+06                  -         St/St/          
Re-181.........................  4.E-06           4.E-06                  -         1.E+05            1.E+05                  -         St/St/          
Re-182 (64 h)..................  1.E-06           9.E-07                  -         4.E+04            3.E+04                  -         St/St/          
Re-182 (12 h)..................  5.E-06           6.E-06                  -         2.E+05            2.E+05                  -         St/St/          
Re-184m........................  1.E-06           2.E-07                  -         5.E+04            7.E+03                  -         St/St/          
Re-184.........................  2.E-06           6.E-07                  -         6.E+04            2.E+04                  -         St/St/          
Re-186m........................  7.E-07           6.E-08                  -         3.E+04            2.E+03                  -         SW/St/          
Re-186.........................  1.E-06           7.E-07                  -         5.E+04            3.E+04                  -         St/St/          
Re-187.........................  3.E-04           4.E-05                  -         1.E+07            2.E+06                  -         SW/St/          
Re-188m........................  6.E-05           6.E-05                  -         2.E+06            2.E+06                  -         St/St/          
Re-188.........................  1.E-06           1.E-06                  -         4.E+04            4.E+04                  -         St/St/          
Re-189.........................  2.E-06           2.E-06                  -         8.E+04            7.E+04                  -         St/St/          
Os-180.........................  2.E-04           2.E-04           2.E-04           6.E+06            8.E+06           7.E+06           St/St/St        
Os-181.........................  2.E-05           2.E-05           2.E-05           7.E+05            7.E+05           7.E+05           St/St/St        
Os-182.........................  2.E-06           2.E-06           2.E-06           9.E+04            7.E+04           6.E+04           St/St/St        
Os-185.........................  2.E-07           3.E-07           3.E-07           8.E+03            1.E+04           1.E+04           St/St/St        
Os-189m........................  1.E-04           9.E-05           7.E-05           4.E+06            3.E+06           3.E+06           St/St/St        
Os-191m........................  1.E-05           9.E-06           7.E-06           4.E+05            3.E+05           3.E+05           St/St/St        
Os-191.........................  9.E-07           7.E-07           6.E-07           3.E+04            3.E+04           2.E+04           St/St/St        
Os-193.........................  2.E-06           1.E-06           1.E-06           7.E+04            5.E+04           4.E+04           St/St/St        
Os-194.........................  2.E-08           2.E-08           3.E-09           7.E+02            9.E+02           1.E+02           St/St/St        
Ir-182.........................  6.E-05           6.E-05           5.E-05           2.E+06            2.E+06           2.E+06           St/St/St        
Ir-184.........................  1.E-05           1.E-05           1.E-05           4.E+05            5.E+05           4.E+05           St/St/St        
Ir-185.........................  5.E-06           5.E-06           4.E-06           2.E+05            2.E+05           2.E+05           St/St/St        
Ir-186.........................  3.E-06           3.E-06           2.E-06           1.E+05            1.E+05           9.E+04           St/St/St        
Ir-187.........................  1.E-05           1.E-05           1.E-05           5.E+05            5.E+05           4.E+05           St/St/St        
Ir-188.........................  2.E-06           2.E-06           1.E-06           7.E+04            6.E+04           5.E+04           St/St/St        
Ir-189.........................  2.E-06           2.E-06           2.E-06           7.E+04            6.E+04           6.E+04           St/St/St        
Ir-190m........................  8.E-05           9.E-05           8.E-05           3.E+06            3.E+06           3.E+06           St/St/St        
Ir-190.........................  4.E-07           4.E-07           4.E-07           1.E+04            2.E+04           1.E+04           St/St/St        
Ir-192m........................  4.E-08           9.E-08           6.E-09           1.E+03            3.E+03           2.E+02           St/St/St        
Ir-192.........................  1.E-07           2.E-07           9.E-08           4.E+03            6.E+03           3.E+03           St/St/St        
Ir-194m........................  4.E-08           7.E-08           4.E-08           2.E+03            3.E+03           2.E+03           St/St/St        
Ir-194.........................  1.E-06           8.E-07           8.E-07           5.E+04            3.E+04           3.E+04           St/St/St        
Ir-195m........................  1.E-05           1.E-05           9.E-06           4.E+05            4.E+05           3.E+05           St/St/St        
Ir-195.........................  2.E-05           2.E-05           2.E-05           6.E+05            8.E+05           7.E+05           St/St/St        
Pt-186.........................  2.E-05                  -                -         6.E+05                   -                -         St/  /          
Pt-188.........................  7.E-07                  -                -         3.E+04                   -                -         St/  /          
Pt-189.........................  1.E-05                  -                -         4.E+05                   -                -         St/  /          
Pt-191.........................  3.E-06                  -                -         1.E+05                   -                -         St/  /          
Pt-193m........................  2.E-06                  -                -         9.E+04                   -                -         St/  /          
Pt-193.........................  1.E-05                  -                -         4.E+05                   -                -         St/  /          

[[Page 439]]

                                                                                                                                                        
Pt-195m........................  2.E-06                  -                -         7.E+04                   -                -         St/  /          
Pt-197m........................  2.E-05                  -                -         7.E+05                   -                -         St/  /          
Pt-197.........................  4.E-06                  -                -         2.E+05                   -                -         St/  /          
Pt-199.........................  6.E-05                  -                -         2.E+06                   -                -         St/  /          
Pt-200.........................  1.E-06                  -                -         5.E+04                   -                -         St/  /          
Au-193.........................  1.E-05           8.E-06           8.E-06           4.E+05            3.E+05           3.E+05           St/St/St        
Au-194.........................  3.E-06           2.E-06           2.E-06           1.E+05            9.E+04           8.E+04           St/St/St        
Au-195.........................  5.E-06           6.E-07           2.E-07           2.E+05            2.E+04           6.E+03           St/St/St        
Au-198m........................  1.E-06           5.E-07           5.E-07           4.E+04            2.E+04           2.E+04           St/St/St        
Au-198.........................  2.E-06           7.E-07           7.E-07           6.E+04            3.E+04           3.E+04           St/St/St        
Au-199.........................  4.E-06           2.E-06           2.E-06           1.E+05            6.E+04           6.E+04           St/St/St        
Au-200m........................  1.E-06           1.E-06           1.E-06           5.E+04            4.E+04           4.E+04           St/St/St        
Au-200.........................  3.E-05           3.E-05           3.E-05           1.E+06            1.E+06           1.E+06           St/St/St        
Au-201.........................  9.E-05           1.E-04           9.E-05           3.E+06            4.E+06           4.E+06           St/St/St        
Hg-193m (Org)..................  6.E-06                  -                -         2.E+05                   -                -         St/  /          
Hg-193m (Inorg)................  4.E-06           3.E-06                  -         1.E+05            1.E+05                  -         St/St/          
Hg-193m (Vapor)................         -         4.E-06                  -                 -         1.E+05                  -           /St/          
Hg-193 (Org)...................  3.E-05                  -                -         1.E+06                   -                -         St/  /          
Hg-193 (Inorg).................  2.E-05           2.E-05                  -         7.E+05            6.E+05                  -         St/St/          
Hg-193 (Vapor).................         -         1.E-05                  -                 -         5.E+05                  -           /St/          
Hg-194 (Org)...................  1.E-08                  -                -         4.E+02                   -                -         St/  /          
Hg-194 (Inorg).................  2.E-08           5.E-08                  -         7.E+02            2.E+03                  -         St/St/          
Hg-194 (Vapor).................         -         1.E-08                  -                 -         5.E+02                  -           /St/          
Hg-195m (Org)..................  3.E-06                  -                -         9.E+04                   -                -         St/  /          
Hg-195m (Inorg)................  2.E-06           2.E-06                  -         8.E+04            6.E+04                  -         St/St/          
Hg-195m (Vapor)................         -             -2.E-06             -                 -         6.E+04                  -           /St/          
Hg-195 (Org)...................  2.E-05                  -                -         7.E+05                   -                -         St/  /          
Hg-195 (Inorg).................  1.E-05           1.E-05                  -         5.E+05            5.E+05                  -         St/St/          
Hg-195 (Vapor).................         -         1.E-05                  -                 -         5.E+05                  -           /St/          
Hg-197m (Org)..................  4.E-06                  -                -         1.E+05                   -                -         St/  /          
Hg-197m (Inorg)................  3.E-06           2.E-06                  -         1.E+05            8.E+04                  -         St/St/          
Hg-197m (Vapor)................         -         2.E-06                  -                 -         8.E+04                  -           /St/          
Hg-197 (Org)...................  6.E-06                  -                -         2.E+05                   -                -         St/  /          
Hg-197 (Inorg).................  5.E-06           4.E-06                  -         2.E+05            1.E+05                  -         St/St/          
Hg-197 (Vapor).................         -         3.E-05                  -                 -         1.E+05                  -           /St/          
Hg-199m (Org)..................  7.E-05                  -                -         3.E+06                   -                -         St/  /          
Hg-199m (Inorg)................  6.E-05           7.E-05                  -         2.E+06            3.E+06                  -         St/St/          
Hg-199m (Vapor)................         -         3.E-05                  -                 -         1.E+06                  -           /St/          
Hg-203 (Org)...................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Hg-203 (Inorg).................  5.E-07           5.E-07                  -         2.E+04            2.E+04                  -         St/St/          
Hg-203 (Vapor).................         -         3.E-07                  -                 -         1.E+04                  -           /St/          
Tl-194m........................  6.E-05                  -                -         2.E+06                   -                -         St/  /          
Tl-194.........................  3.E-04                  -                -         9.E+06                   -                -         St/  /          
Tl-195.........................  5.E-05                  -                -         2.E+06                   -                -         St/  /          
Tl-197.........................  5.E-05                  -                -         2.E+06                   -                -         St/  /          
Tl-198m........................  2.E-05                  -                -         9.E+05                   -                -         St/  /          
Tl-198.........................  1.E-05                  -                -         5.E+05                   -                -         St/  /          
Tl-199.........................  3.E-05                  -                -         1.E+06                   -                -         St/  /          
Tl-200.........................  5.E-06                  -                -         2.E+05                   -                -         St/  /          
Tl-201.........................  9.E-06                  -                -         3.E+05                   -                -         St/  /          

[[Page 440]]

                                                                                                                                                        
Tl-202.........................  2.E-06                  -                -         8.E+04                   -                -         St/  /          
Tl-204.........................  9.E-07                  -                -         3.E+04                   -                -         St/  /          
Pb-195m........................  8.E-05                  -                -         3.E+06                   -                -         St/  /          
Pb-198.........................  3.E-05                  -                -         1.E+06                   -                -         St/  /          
Pb-199.........................  3.E-05                  -                -         1.E+06                   -                -         St/  /          
Pb-200.........................  3.E-06                  -                -         1.E+05                   -                -         St/  /          
Pb-201.........................  9.E-06                  -                -         3.E+05                   -                -         St/  /          
Pb-202m........................  1.E-05                  -                -         4.E+05                   -                -         St/  /          
Pb-202.........................  2.E-08                  -                -         8.E+02                   -                -         St/  /          
Pb-203.........................  4.E-06                  -                -         2.E+05                   -                -         St/  /          
Pb-205.........................  6.E-07                  -                -         2.E+04                   -                -         St/  /          
Pb-209.........................  2.E-05                  -                -         9.E+05                   -                -         St/  /          
Pb-210.........................  1.E-10                  -                -         4.E+00                   -                -         BS/  /          
Pb-211.........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Pb-212.........................  1.E-08                  -                -         5.E+02                   -                -         St/  /          
Pb-214.........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Bi-200.........................  3.E-05           4.E-05                  -         1.E+06            2.E+06                  -         St/St/          
Bi-201.........................  1.E-05           2.E-05                  -         4.E+05            6.E+05                  -         St/St/          
Bi-202.........................  2.E-05           3.E-05                  -         6.E+05            1.E+06                  -         St/St/          
Bi-203.........................  3.E-06           2.E-06                  -         1.E+05            9.E+04                  -         St/St/          
Bi-205.........................  1.E-06           5.E-07                  -         4.E+04            2.E+04                  -         St/St/          
Bi-206.........................  6.E-07           4.E-07                  -         2.E+04            1.E+04                  -         St/St/          
Bi-207.........................  7.E-07           2.E-07                  -         3.E+04            5.E+03                  -         St/St/          
Bi-210m........................  2.E-09           3.E-10                  -         7.E+01            1.E+01                  -         K /St/          
Bi-210.........................  1.E-07           1.E-08                  -         4.E+03            4.E+02                  -         K /St/          
Bi-212.........................  1.E-07           1.E-07                  -         4.E+03            4.E+03                  -         St/St/          
Bi-213.........................  1.E-07           2.E-07                  -         5.E+03            5.E+03                  -         St/St/          
Bi-214.........................  3.E-07           4.E-07                  -         1.E+04            1.E+04                  -         St/St/          
Po-203.........................  3.E-05           4.E-05                  -         1.E+06            1.E+06                  -         St/St/          
Po-205.........................  2.E-05           3.E-05                  -         6.E+05            1.E+06                  -         St/St/          
Po-207.........................  1.E-05           1.E-05                  -         4.E+05            4.E+05                  -         St/St/          
Po-210.........................  3.E-10           3.E-10                  -         1.E+01            1.E+01                  -         E /St/          
At-207.........................  1.E-06           9.E-07                  -         4.E+04            3.E+04                  -         St/St/          
At-211.........................  3.E-08           2.E-08                  -         1.E+03            8.E+02                  -         St/St/          
Rn-220.........................  8.E-09 4              --\4\            --\4\       3.E+02 4               --\4\            --\4\             --\4\     
Rn-222.........................  3.E-08 4              --\4\            --\4\       1.E+03 4               --\4\            --\4\             --\4\     
Fr-222.........................  2.E-07                  -                -         7.E+03                   -                -         St/  /          
Fr-223.........................  3.E-07                  -                -         1.E+04                   -                -         St/  /          
Ra-223.........................         -         3.E-10                  -                 -         1.E+01                  -           /St/          
Ra-224.........................         -         7.E-10                  -                 -         3.E+01                  -           /St/          
Ra-225.........................         -         3.E-10                  -                 -         1.E+01                  -           /St/          
Ra-226.........................         -         3.E-10                  -                 -         1.E+01                  -           /St/          
Ra-227.........................         -         6.E-06                  -                 -         2.E+05                  -           /BS/          
Ra-228.........................         -         5.E-10                  -                 -         2.E+01                  -           /St/          
Ac-224.........................  1.E-08           2.E-08           2.E-08           4.E+02            8.E+02           7.E+02           BS/St/St        

[[Page 441]]

                                                                                                                                                        
Ac-225.........................  1.E-10           3.E-10           3.E-10           4.E+00            1.E+01           1.E+01           BS/St/St        
Ac-226.........................  1.E-09           2.E-09           2.E-09           5.E+01            8.E+01           7.E+01           BS/St/St        
Ac-227.........................  2.E-13           7.E-13           2.E-12           7.E-03            3.E-02           6.E-02           BS/BS/St        
Ac-228.........................  4.E-09           2.E-08           2.E-08           2.E+02            6.E+02           7.E+02           BS/BS/St        
Th-226.........................         -         7.E-08           6.E-08                   -         2.E+03           2.E+03             /St/St        
Th-227.........................         -         1.E-10           1.E-10                   -         5.E+00           5.E+00             /St/St        
Th-228.........................         -         4.E-12           7.E-12                   -         2.E-01           3.E-01             /BS/St        
Th-229.........................         -         4.E-13           1.E-12                   -         1.E-02           4.E-02             /BS/BS        
Th-230.........................         -         3.E-12           7.E-12                   -         9.E-02           2.E-01             /BS/BS        
Th-231.........................         -         3.E-06           3.E-06                   -         1.E+05           1.E+05             /St/St        
Th-232.........................         -         5.E-13           1.E-12                   -         2.E-02           4.E-02             /BS/BS        
Th-234.........................         -         9.E-08           6.E-08                   -         3.E+03           2.E+03             /St/St        
Pa-227.........................         -         5.E-08           4.E-08                   -         2.E+03           2.E+03             /St/St        
Pa-228.........................         -         5.E-09           5.E-09                   -         2.E+02           2.E+02             /BS/St        
Pa-230.........................         -         2.E-09           1.E-09                   -         7.E+01           5.E+01             /St/St        
Pa-231.........................         -         7.E-13           2.E-12                   -         2.E-02           6.E-02             /BS/BS        
Pa-232.........................         -         9.E-09           2.E-08                   -         3.E+02           9.E+02             /BS/BS        
Pa-233.........................         -         3.E-07           2.E-07                   -         1.E+04           9.E+03             /St/St        
Pa-234.........................         -         3.E-06           3.E-06                   -         1.E+05           1.E+05             /St/St        
U-230..........................  2.E-10           1.E-10           1.E-10           6.E+00            5.E+00           4.E+00           BS/St/St        
U-231..........................  3.E-06           2.E-06           2.E-06           1.E+05            9.E+04           7.E+04           St/St/St        
U-232..........................  9.E-11           2.E-10           3.E-12           3.E+00            6.E+00           1.E-01           BS/St/St        
U-233..........................  5.E-10           3.E-10           2.E-11           2.E+01            1.E+01           6.E-01           BS/St/St        
U-234..........................  5.E-10           3.E-10           2.E-11           2.E+01            1.E+01           6.E-01           BS/St/St        
U-235..........................  6.E-10           3.E-10           2.E-11           2.E+01            1.E+01           6.E-01           BS/St/St        
U-236..........................  6.E-10           3.E-10           2.E-11           2.E+01            1.E+01           6.E-01           BS/St/St        
U-237..........................  1.E-06           7.E-07           6.E-07           4.E+04            3.E+04           2.E+04           St/St/St        
U-238..........................  6.E-10           3.E-10           2.E-11           2.E+01            1.E+01           6.E-01           BS/St/St        
U-239..........................  8.E-05           7.E-05           6.E-05           3.E+06            3.E+06           2.E+06           St/St/St        
U-240..........................  2.E-06           1.E-06           1.E-06           6.E+04            4.E+04           4.E+04           St/St/St        
Np-232.........................         -         1.E-06 5                -                 -         4.E+04 5                -           /BS/          
Np-233.........................         -         1.E-03 5                -                 -         5.E+07 5                -           /St/          
Np-234.........................         -         1.E-06 5                -                 -         4.E+04 5                -           /St/          
Np-235.........................         -         5.E-07 5                -                 -         2.E+04 5                -           /BS/          
Np-236 (1.E+05 yr).............         -         1.E-11 5                -                 -         4.E-01 5                -           /BS/          
Np-236 (22 h)..................         -         2.E-08 5                -                 -         6.E+02 5                -           /BS/          
Np-237.........................         -         2.E-12 5                -                 -         9.E-02 5                -           /BS/          
Np-238.........................         -         4.E-08 5                -                 -         1.E+03 5                -           /BS/          
Np-239.........................         -         1.E-06 5                -                 -         4.E+04 5                -           /St/          
Np-240.........................         -         3.E-05 5                -                 -         1.E+06 5                -           /St/          
Pu-234.........................         -         9.E-08 5         8.E-08 5                 -         3.E+03 5         3.E+03 5           /St/St        
Pu-235.........................         -         1.E-03 5         1.E-03 5                 -         5.E+07 5         4.E+07 5           /St/St        
Pu-236.........................         -         7.E-12 5         1.E-11 5                 -         3.E-01 5         6.E-01 5           /BS/St        
Pu-237.........................         -         1.E-06 5         1.E-06 5                 -         5.E+04 5         5.E+04 5           /St/St        
Pu-238.........................         -         3.E-12 5         7.E-12 5                 -         9.E-02 5         3.E-01 5           /BS/BS        
Pu-239.........................         -         2.E-12 5         6.E-12 5                 -         8.E-02 5         2.E-01 5           /BS/BS        
Pu-240.........................         -         2.E-12 5         6.E-12 5                 -         8.E-02 5         2.E-01 5           /BS/BS        
Pu-241.........................         -         1.E-10 5         3.E-10 5                 -         4.E+00 5         1.E+01 5           /BS/BS        
Pu-242.........................         -         2.E-12 5         6.E-12 5                 -         9.E-02 5         2.E-01 5           /BS/BS        
Pu-243.........................         -         1.E-05 5         1.E-05 5                 -         5.E+05 5         6.E+05 5           /St/St        

[[Page 442]]

                                                                                                                                                        
Pu-244.........................         -         2.E-12 5         6.E-12 5                 -         9.E-02 5         2.E-01 5           /BS/BS        
Pu-245.........................         -         2.E-06 5         2.E-06 5                 -         7.E+04 5         6.E+04 5           /St/St        
Am-237.........................         -         1.E-04 5                -                 -         4.E+06 5                -           /St/          
Am-238.........................         -         1.E-06 5                -                 -         4.E+04 5                -           /BS/          
Am-239.........................         -         5.E-06 5                -                 -         2.E+05 5                -           /St/          
Am-240.........................         -         1.E-06 5                -                 -         4.E+04 5                -           /St/          
Am-241.........................         -         2.E-12 5                -                 -         8.E-02 5                -           /BS/          
Am-242m........................         -         2.E-12 5                -                 -         8.E-02 5                -           /BS/          
Am-242.........................         -         3.E-08 5                -                 -         1.E+03 5                -           /BS/          
Am-243.........................         -         2.E-12 5                -                 -         8.E-02 5                -           /BS/          
Am-244m........................         -         2.E-06 5                -                 -         6.E+04 5                -           /BS/          
Am-244.........................         -         7.E-08 5                -                 -         3.E+03 5                -           /BS/          
Am-245.........................         -         3.E-05 5                -                 -         1.E+06 5                -           /St/          
Am-246m........................         -         7.E-05 5                -                 -         3.E+06 5                -           /St/          
Am-246.........................         -         4.E-05 5                -                 -         2.E+06 5                -           /St/          
Cm-238.........................         -         4.E-07 5                -                 -         2.E+04 5                -           /St/          
Cm-240.........................         -         2.E-10 5                -                 -         8.E+00 5                -           /BS/          
Cm-241.........................         -         9.E-09 5                -                 -         4.E+02 5                -           /BS/          
Cm-242.........................         -         1.E-10 5                -                 -         4.E+00 5                -           /BS/          
Cm-243.........................         -         3.E-12 5                -                 -         1.E-01 5                -           /BS/          
Cm-244.........................         -         4.E-12 5                -                 -         2.E-01 5                -           /BS/          
Cm-245.........................         -         2.E-12 5                -                 -         8.E-02 5                -           /BS/          
Cm-246.........................         -         2.E-12 5                -                 -         8.E-02 5                -           /BS/          
Cm-247.........................         -         2.E-12 5                -                 -         9.E-02 5                -           /BS/          
Cm-248.........................         -         6.E-13 5                -                 -         2.E-02 5                -           /BS/          
Cm-249.........................         -         6.E-06 5                -                 -         2.E+05 5                -           /BS/          
Bk-245.........................         -         5.E-07                  -                 -         2.E+04                  -           /St/          
Bk-246.........................         -         1.E-06                  -                 -         5.E+04                  -           /St/          
Bk-247.........................         -         2.E-12                  -                 -         8.E-02                  -           /BS/          
Bk-249.........................         -         9.E-10                  -                 -         3.E+01                  -           /BS/          
Bk-250.........................         -         2.E-07                  -                 -         7.E+03                  -           /BS/          
Cf-244.........................         -         2.E-07 5         2.E-07 5                 -         9.E+03 5         9.E+03 5           /St/St        
Cf-246.........................         -         4.E-09 5         4.E-09 5                 -         2.E+02 5         1.E+02 5           /St/St        
Cf-248.........................         -         4.E-11 5         5.E-11 5                 -         1.E+00 5         2.E+00 5           /BS/St        
Cf-249.........................         -         2.E-12 5         6.E-12 5                 -         8.E-02 5         2.E-01 5           /BS/BS        
Cf-250.........................         -         5.E-12 5         1.E-11 5                 -         2.E-01 5         4.E-01 5           /BS/St        
Cf-251.........................         -         2.E-12 5         5.E-12 5                 -         8.E-02 5         2.E-01 5           /BS/BS        
Cf-252.........................         -         1.E-11 5         2.E-11 5                 -         4.E-01 5         6.E-01 5           /BS/St        
Cf-253.........................         -         8.E-10 5         7.E-10 5                 -         3.E+01 5         3.E+01 5           /St/St        
Cf-254.........................         -         9.E-12 5         7.E-12 5                 -         3.E-01 5         3.E-01 5           /St/St        
Es-250.........................         -         3.E-07                  -                 -         1.E+04                  -           /BS/          
Es-251.........................         -         4.E-07                  -                 -         2.E+04                  -           /BS/          
Es-253.........................         -         6.E-10                  -                 -         2.E+01                  -           /St/          
Es-254m........................         -         4.E-09                  -                 -         2.E+02                  -           /St/          
Es-254.........................         -         4.E-11                  -                 -         2.E+00                  -           /BS/          

[[Page 443]]

                                                                                                                                                        
Fm-252.........................         -         6.E-09                  -                 -         2.E+02                  -           /St/          
Fm-253.........................         -         4.E-09                  -                 -         2.E+02                  -           /St/          
Fm-254.........................         -         4.E-08                  -                 -         2.E+03                  -           /St/          
Fm-255.........................         -         9.E-09                  -                 -         3.E+02                  -           /St/          
Fm-257.........................         -         1.E-10                  -                 -         4.E+00                  -           /E /          
Md-257.........................         -         4.E-08                  -                 -         2.E+03                  -           /St/          
Md-258.........................         -         1.E-10                  -                 -         4.E+00                  -           /BS/          
--------------------------------------------------------------------------------------------------------------------------------------------------------
Footnotes for Appendix A                                                                                                                                
\1\ A determination of whether the DACs are controlled by stochastic (St) or nonstochastic (organ) dose, or if they both give the same result (E), for  
  each lung retention class, is given in this column. The key to the organ notation for nonstochastic dose is: BS= Bone surface, K= Kidney, L= Liver,   
  SW= Stomach wall, and T= Thyroid. A blank indicates that no calculations were performed for the lung retention class shown.                           
\2\ The ICRP identifies tritiated water and carbon as having immediate uptake and distribution; therefore no solubility classes are designated. For the 
  purposes of this table, the DAC values are shown as being constant, independent of solubility class. For tritiated water, the inhalation DAC values   
  allow for an additional 50% absorption through the skin, as described in ICRP Publication No. 30: Limits for Intakes of Radionuclides by Workers. For 
  elemental tritium, the DAC values are based solely on consideration of the dose-equivalent rate to the tissues of the lung from inhaled tritium gas   
  contained within the lung, without absorption in the tissues.                                                                                         
\3\ A dash indicates no values given for this data category.                                                                                            
\4\ These values are appropriate for protection from radon combined with its short-lived daughters and are based on information given in ICRP           
  Publication 32: Limits for Inhalation of Radon Daughters by Workers and Federal Guidance Report No. 11: Limiting Values of Radionuclide Intake and Air
  Concentrations, and Dose Conversion Factors for Inhalation, Submersion, and Ingestion (EPA 520/1-88-020). The values given are for 100% equilibrium   
  concentration conditions of the radon daughters with the parent. To allow for an actual measured equilibrium concentration or a demonstrated          
  equilibrium concentration, the values given in this table should be multiplied by the ratio (100%/actual %) or (100%/demonstrated %), respectively.   
  Alternatively, the DAC values for Rn-220 and Rn-222 may be replaced by 1 WL* and 1/3 WL*, respectively, for appropriate limiting of daughter          
  concentrations. Because of the dosimetric considerations for radon, no f1 or lung clearance values are listed.                                        
*A ``Working Level'' (WL) is any combination of short-lived radon daughters, in one liter of air without regard to the degree of equilibrium, that will 
  result in the ultimate emission of 1.3 E+05 MeV of alpha energy.                                                                                      
\5\ For the calculations, f1 values were obtained from ICRP Publication 48: The Metabolism of Plutonium and Related Elements. It is assumed that the    
  effective dose equivalents for inhalation are unchanged even though the f1 values have changed. This is because the contribution to organ dose from   
  inhalation is dependent mainly on transfer from lung to blood when f1 values are small. Also, the gastrointestinal tract dose would be unchanged      
  because the fraction of activity passing through the tract is (1.0- f1).                                                                              


[[Page 444]]

    Appendix B to Part 835--Alternative Absorption Factors and Lung 
                Retention Classes for Specific Compounds

    Alternative absorption factors and lung retention classes for 
specific compounds are listed by element in this appendix for cross-
referencing with the inhalation DACs in appendix A to this part. The 
data shown in this appendix are listed by element in alphabetical order.

----------------------------------------------------------------------------------------------------------------
                                     Atomic                                                                     
          Element/symbol              No.             Compound                  f 1         Lung retention class
----------------------------------------------------------------------------------------------------------------
Actinium/Ac.......................       89  Oxides, hydroxides........  1.E-03..........  Y                    
                                             Halides, nitrates.........  1.E-03..........  W                    
                                             All others................  1.E-03..........  D                    
Aluminum/Al.......................       13  Oxides, hydroxides,         1.E-02..........  W                    
                                              carbides, halides,                                                
                                              nitrates, elemental form.                                         
                                             All others................  1.E-02..........  D                    
Americium/Am......................       95  All forms.................  1.E-03..........  W                    
Antimony/Sb.......................       51  Oxides, hydroxides,         1.E-01..........  D                    
                                              halides, sulphides,                                               
                                              sulphates, nitrates.                                              
                                             All others................  1.E-02..........  W                    
Arsenic/As........................       33  All forms.................  5.E-01..........  W                    
Astatine/At.......................       85  All (as a halide).........  1.E + 00          W or D; dependent    
                                                                                            upon associated     
                                                                                            element.            
Barium/Ba.........................       56  All forms.................  1.E-01..........  D                    
Berkelium/Bk......................       97  All forms.................  5.E-04..........  W                    
Beryllium/Be......................        4  Oxides, halides, nitrates.  5.E-03..........  Y                    
                                             All others................  5.E-03..........  W                    
Bismuth/Bi........................       83  All except nitrates.......  5.E-02..........  W                    
                                             Nitrates..................  5.E-02..........  D                    
Bromine/Br........................       35  Bromides..................  1.E + 00          W or D; dependent    
                                                                                            upon associated     
                                                                                            element.            
Cadmium/Cd........................       48  Oxides, hydroxides........  5.E-02..........  Y                    
                                             Sulphates, halides........  5.E-02..........  W                    
                                             All others................  5.E-02..........  D                    
Calcium/Ca........................       20  All forms.................  3.E-01..........  W                    
Californium/Cf....................       98  Oxides, hydroxides........  1.E-03..........  Y                    
                                             All others................  1.E-03..........  W                    
Carbon/C..........................        6  Oxides 1..................          -         D                    
                                             Organic (C-11)............  1.E + 00          W                    
                                             Organic (C-14)............  1.E + 00          W                    
Cerium/Ce.........................       58  Oxides, hydroxides,         3.E-04..........  Y                    
                                              fluorides.                                                        
                                             All others................  3.E-04..........  W                    
Cesium/Cs.........................       55  All forms.................  1.E + 00          D                    
Chlorine/Cl.......................       17  Chloride..................  1.E + 00          W or D; dependent    
                                                                                            upon associated     
                                                                                            element.            
Chromium/Cr.......................       24  Oxides, hydroxides........  1.E-01..........  Y                    
                                             Halides, nitrates.........  1.E-01..........  W                    
                                             All others................  1.E-01..........  D                    
                                             Ingestion 2                                                        
                                             Trivalent.................  1.E-02..........  --                   
                                             Hexavalent................  1.E-01..........  --                   
Cobalt/Co.........................       27  Oxides, hydroxides,         5.E-02..........  Y                    
                                              halides, nitrates.                                                
                                             All others................  5.E-02..........  W                    
                                             Ingestion only 2..........  3.E-01..........  --                   
Copper/Cu.........................       29  Oxides, hydroxides........  5.E-01..........  Y                    
                                             Sulphites, halides,         5.E-01..........  W                    
                                              nitrates.                                                         
                                             All others................  5.E-01..........  D                    
Curium/Cm.........................       96  All forms.................  1.E-03..........  W                    
Dysprosium/Dy.....................       66  All forms.................  3.E-04..........  W                    
Einsteinium/Es....................       99  All forms.................  5.E-04..........  W                    
Erbium/Er.........................       68  All forms.................  3.E-04..........  W                    
Europium/Eu.......................       63  All forms.................  1.E-03..........  W                    
Fermium/Fm........................      100  All forms.................  5.E-04..........  W                    
Fluorine/F........................        9  Fluoride..................  1.E + 00          Y, W, or D; dependent
                                                                                            upon associated     
                                                                                            element.            
Francium/Fr.......................       87  All forms.................  1.E + 00          D                    
Gadolinium/Gd.....................       64  Oxides, hydroxides,         3.E-04..........  W                    
                                              fluorides.                                                        
                                             All others................  3.E-04..........  D                    
Gallium/Ga........................       31  Oxides, hydroxides,         1.E-03..........  W                    
                                              carbides, halides,                                                
                                              nitrates.                                                         
                                             All others................  1.E-03..........  D                    
Germanium/Ge......................       32  Oxides, sulphides, halides  1.E + 00          W                    
                                             All others................  1.E + 00          D                    
Gold/Au...........................       79  Oxides, hydroxides........  1.E-01..........  Y                    

[[Page 445]]

                                                                                                                
                                             Halides, nitrates.........  1.E-01..........  W                    
                                             All others................  1.E-01..........  D                    
Hafnium/Hf........................       72  Oxides, hydroxides,         2.E-03..........  W                    
                                              halides, carbides,                                                
                                              nitrates.                                                         
                                             All others................  2.E-03..........  D                    
Holmium/Ho........................       67  All forms.................  3.E-04..........  W                    
Hydrogen/H........................        1  Water, elemental..........  1.E + 00          --                   
Indium/In.........................       49  Oxides, hydroxides,         2.E-02..........  W                    
                                              halides.                                                          
                                             All others................  2.E-02..........  D                    
Iodine/I..........................       53  All forms.................  1.E + 00          D                    
Iridium/Ir........................       77  Oxides, hydroxides........  1.E-02..........  Y                    
                                             Halides, nitrates,          1.E-02..........  W                    
                                              metallic form.                                                    
                                             All others................  1.E-02..........  D                    
Iron/Fe...........................       26  Oxides, hydroxides,         1.E-01..........  W                    
                                              halides.                                                          
                                             All others................  1.E-01..........  D                    
Lanthanum/La......................       57  Oxides, hydroxides........  1.E-03..........  W                    
                                             All others................  1.E-03..........  D                    
Lead/Pb...........................       82  All forms.................  2.E-01..........  D                    
Lutetium/Lu.......................       71  Oxides, hydroxides,         3.E-04..........  Y                    
                                              fluorides.                                                        
                                             All others................  3.E-04..........  W                    
Magnesium/Mg......................       12  Oxides, hydroxides,         5.E-01..........  W                    
                                              carbides, halides,                                                
                                              nitrates.                                                         
                                             All others................  5.E-01..........  D                    
Manganese/Mn......................       25  Oxides, hydroxides,         1.E-01..........  W                    
                                              halides, nitrates.                                                
                                             All others................  1.E-01..........  D                    
Mendelevium/Md....................      101  All forms.................  5.E-04..........  W                    
Mercury/Hg........................       80  Oxides, hydroxides,         2.E-02..........  W                    
                                              halides, nitrates,                                                
                                              sulphites.                                                        
                                             Sulphates, elemental form.  2.E-02..........  D                    
                                             Organic forms.............  1.E + 00          D                    
                                             Vapor\1\..................          -         D                    
Molybdenum/Mo.....................       42  Oxides, hydroxides, MoS 2.  5.E-02..........  Y                    
                                             All others................  8.E-01..........  D                    
                                             Ingestion 2                                                        
                                             MoS 2.....................  5.E-02..........  --                   
                                             All Others................  8.E-01..........  --                   
Neodymium/Nd......................       60  Oxides, hydroxides,         3.E-04..........  W                    
                                              carbides, fluorides.                                              
                                             All others................  3.E-04..........  Y                    
Neptunium/Np......................       93  All forms.................  1.E-03..........  W                    
Nickel/Ni.........................       28  Oxides, hydroxides........  5.E-02..........  W                    
                                             All others (vapor) 1......          -         D                    
Niobium/Nb........................       41  Oxides, hydroxides........  1.E-02..........  Y                    
                                             All others................  1.E-02..........  W                    
Osmium/Os.........................       76  Oxides, hydroxides........  1.E-02..........  Y                    
                                             Halides, nitrates.........  1.E-02..........  W                    
                                             All others................  1.E-02..........  D                    
Palladium/Pd......................       46  Oxides, hydroxides........  5.E-03..........  Y                    
                                             Nitrates..................  5.E-03..........  W                    
                                             All others................  5.E-03..........  D                    
Phosphorus/P......................       15  Phosphates................  8.E-01..........  W or D; dependent    
                                                                                            upon associated     
                                                                                            element.            
Platinum/Pt.......................       78  All forms.................  1.E-02..........  D                    
Plutonium/Pu......................       94  Oxides, hydroxides........  1.E-05..........  Y                    
                                             Nitrates..................  1.E-04..........  W                    
                                             All other.................  1.E-03..........  W                    
                                             [Note: Use same values for                    .....................
                                              ingestion]                                                        
Polonium/Po.......................       84  Oxides, hydroxides,         1.E-01..........  W                    
                                              nitrates.                                                         
                                             All others................  1.E-01..........  D                    
Potassium/K.......................       19  All forms.................  1.E + 00          D                    
Praseodymium/Pr...................       59  Oxides, hydroxides,         3.E-04..........  Y                    
                                              carbides, fluorides.                                              
                                             All others................  3.E-04..........  W                    
Promethium/Pm.....................       61  Oxides, hydroxides,         3.E-04..........  Y                    
                                              carbides, fluorides.                                              
                                             All others................  3.E-04..........  W                    
Protactinium/Pa...................       91  Oxides, hydroxides........  1.E-03..........  Y                    
                                             All others................  1.E-03..........  W                    
Radium/Ra.........................       88  All forms.................  2.E-01..........  W                    
Rhenium/Re........................       75  Oxides, hydroxides,         8.E-01..........  W                    
                                              halides, nitrates.                                                
                                             All others................  8.E-01..........  D                    
Rhodium/Rh........................       45  Oxides, hydroxides........  5.E-02..........  Y                    
                                             Halides...................  5.E-02..........  W                    
                                             All others................  5.E-02..........  D                    
Rubidium/Rb.......................       37  All forms.................  1.E + 00          D                    
Ruthenium/Ru......................       44  Oxides, hydroxides........  5.E-02..........  Y                    
                                             Halides...................  5.E-02..........  W                    
                                             All others................  5.E-02..........  D                    
Samarium/Sm.......................       62  All forms.................  3.E-04..........  W                    

[[Page 446]]

                                                                                                                
Scandium/Sc.......................       21  All forms.................  1.E-04..........  Y                    
Selenium/Se.......................       34  Oxides, hydroxides,         8.E-01..........  W                    
                                              carbides.                                                         
                                             All others................  8.E-01..........  D                    
                                             Ingestion only 2..........  5.E-02..........  --                   
Silicon/Si........................       14  Ceramic forms.............  1.E-02..........  Y                    
                                             Oxides, hydroxides,         1.E-02..........  W                    
                                              carbides, nitrates.                                               
                                             All others................  1.E-02..........  D                    
Silver/Ag.........................       47  Oxides, hydroxides........  5.E-02..........  Y                    
                                             Nitrates, sulphides.......  5.E-02..........  W                    
                                             All others, elemental form  5.E-02..........  D                    
Sodium/Na.........................       11  All forms.................  1.E + 00          D                    
Strontium/Sr......................       38  SrTiO 3...................  1.E-02..........  Y                    
                                             All others (soluble)......  3.E-01..........  D                    
Sulfur/S..........................       16  All inorganic.............  8.E-01..........  D                    
                                             Elemental form............  8.E-01..........  W                    
                                             Gases.....................  1.E + 00          D                    
                                             Ingestion 2                                                        
                                             All inorganic.............  1.E-01..........  --                   
Tantalum/Ta.......................       73  Oxides, hydroxides,         1.E-03..........  Y                    
                                              halides, carbides,                                                
                                              nitrates, nitrides.                                               
                                             All others................  1.E-03..........  W                    
Technetium/Tc.....................       43  Oxides, hydroxides,         8.E-01..........  W                    
                                              halides, nitrates.                                                
                                             All others................  8.E-01..........  D                    
Tellurium/Te......................       52  Oxides, hydroxides,         2.E-01..........  W                    
                                              nitrates.                                                         
                                             All others................  2.E-01..........  D                    
Terbium/Tb........................       65  All forms.................  3.E-04..........  W                    
Thallium/Tl.......................       81  All forms.................  1.E + 00          D                    
Thorium/Th........................       90  Oxides, hydroxides........  2.E-04..........  Y                    
                                             All others................  2.E-04..........  W                    
Thulium/Tm........................       69  All forms.................  3.E-04..........  W                    
Tin/Sn............................       50  Oxides, hydroxides,         2.E-02..........  W                    
                                              halides, nitrates,                                                
                                              sulphides, Sn 3(PO 4) 4.                                          
                                             All others................  2.E-02..........  D                    
Titanium/Ti.......................       22  SrTiO 3...................  1.E-02..........  Y                    
                                             Oxides, hydroxides,         1.E-02..........  W                    
                                              carbides, halides,                                                
                                              nitrates.                                                         
                                             All others................  1.E-02..........  D                    
Tungsten/W........................       74  Ingestion 2                                                        
                                             Tungstic acid.............  1.E-02..........  --                   
                                             All others................  3.E-01..........  --                   
Uranium/U.........................       92  UO 2, U 3 O 8.............  2.E-03..........  Y                    
                                             UO 3, tetravalent           5.E-02..........  W                    
                                              compounds.                                                        
                                             UF 6, uranyl compounds....  5.E-02..........  D                    
Vanadium/V........................       23  Oxides, hydroxides,         1.E-02..........  W                    
                                              carbides, halides.                                                
                                             All others................  1.E-02..........  D                    
Ytterbium/Yb......................       70  Oxides, hydroxides,         3.E-04..........  Y                    
                                              fluorides.                                                        
                                             All others................  3.E-04..........  W                    
Yttrium/Y.........................       39  Oxides, hydroxides........  1.E-04..........  Y                    
                                             All others................  1.E-04..........  W                    
Zinc/Zn...........................       30  All forms.................  5.E-01..........  Y                    
Zirconium/Zr......................       40  Carbides..................  2.E-03..........  Y                    
                                             Oxides, hydroxides,         2.E-03..........  W                    
                                              halides, nitrates.                                                
                                             All others................  2.E-03..........  D                    
----------------------------------------------------------------------------------------------------------------
1 A dash indicates no data for the value shown.                                                                 
2 For ingestion, no lung retention classes are listed.                                                          

  Appendix C to Part 835--Derived Air Concentrations (DAC) for Workers 
 From External Exposure During Immersion in a Contaminated Atmospheric 
                                  Cloud

    The air immersion DAC values shown in this appendix are based on a 
stochastic limit of 5 rems (0.05 Sv) per year or a nonstochastic (organ) 
dose limit of 50 rems (0.5 Sv) per year. Four columns of information are 
presented: (1) Radionuclide; (2) half-life in units of seconds (s), 
minutes (min), hours (h), days (d), or years (yr); (3) air immersion DAC 
in units of Ci/ml; and (4) air immersion DAC in units of Bq/
m\3\. The data are listed by radionuclide in order of increasing atomic 
mass. The air immersion DACs were calculated for a continuous, 
nonshielded exposure via immersion in a semi-infinite atmospheric cloud.
    The DAC value for air immersion listed for a given radionuclide is 
determined either by a yearly limit on effective dose equivalent, which 
provides a limit on stochastic radiation effects, or by a limit on 
yearly dose equivalent to any organ, which provides a

[[Page 447]]

limit on nonstochastic radiation effects. For most of the radionuclides 
listed, the DAC value is determined by the yearly limit on effective 
dose equivalent. Thus, the few cases where the DAC value is determined 
by the yearly limit on shallow dose equivalent to the skin are indicated 
in the table by an appropriate footnote. Again, the DACs listed in this 
appendix account only for immersion in a semi-infinite cloud and do not 
account for inhalation or ingestion exposures.
    Three classes of radionuclides are included in the air immersion 
DACs as described below.
    (1) Class 1. The first class of radionuclides includes selected 
noble gases and short-lived activation products that occur in gaseous 
form. For these radionuclides, inhalation doses are negligible compared 
to the external dose from immersion in an atmospheric cloud.
    (2) Class 2. The second class of radionuclides includes those for 
which a DAC value for inhalation has been calculated, but for which the 
DAC value for external exposure to a contaminated atmospheric cloud is 
more restrictive (i.e., results in a lower DAC value). These 
radionuclides generally have half-lives of a few hours or less, or are 
eliminated from the body following inhalation sufficiently rapidly to 
limit the inhalation dose.
    (3) Class 3. The third class of radionuclides includes selected 
isotopes with relatively short half-lives. These radionuclides typically 
have half-lives that are less than 10 minutes, they do not occur as a 
decay product of a longer lived radionuclide, or they lack sufficient 
decay data to permit internal dose calculations. These radionuclides are 
also typified by a radioactive emission of highly intense, high-energy 
photons and rapid removal from the body following inhalation.
    The DAC values are given for individual radionuclides. For known 
mixtures of radionuclides, the sum of the ratio of the observed 
concentration of a particular radionuclide and its corresponding DAC for 
all radionuclides in the mixture must not exceed 1.0. For unknown 
radionuclides, the most restrictive DAC (lowest value) for those 
isotopes not known to be absent shall be used.

                                                                        
------------------------------------------------------------------------
                                               Air Immersion DAC        
  Radionuclide         Half-Life     -----------------------------------
                                      (Ci/ml)     (Bq/m \3\)   
------------------------------------------------------------------------
C-11              20.48 min.........  4.E-06            1.E+05          
N-13              9.97 min..........  4.E-06            1.E+05          
N-16              7.13 s............  7.E-07            3.E+04          
O-15              122.24 s..........  4.E-06            1.E+05          
F-18 \1\          109.74 min........  4.E-06            1.E+05          
Na-24 \1\         15.00 h...........  9.E-07            3.E+04          
Mg-27 \2\         9.458 min.........  5.E-06            2.E+05          
Al-28 \2\         2.240 min.........  2.E-06            7.E+04          
Cl-38 \1\         37.21 min.........  3.E-06            1.E+05          
Ar-37             35.02 d...........  3.E+00            1.E+11          
Ar-39             269 yr............  2.E-04 \3\        7.E+06 \3\      
Ar-41             1.827 h...........  3.E-06            1.E+05          
K-43 \1\          22.6 h............  5.E-06            2.E+05          
Ca-492            8.719 min.........  1.E-06            4.E+04          
Sc-44 \1\         3.927 h...........  2.E-06            7.E+04          
Sc-46m \2\        18.72 s...........  5.E-05            2.E+06          
Ti-45 \1\         3.08 h............  5.E-06            2.E+05          
Ti-51 \2\         5.752 min.........  1.E-05            4.E+05          
V-52 \2\          3.75 min..........  3.E-06            1.E+05          
Cr-49 \1\         42.09 min.........  5.E-06            2.E+05          
Mn-52m \1\        21.4 min..........  2.E-06            7.E+04          
Mn-56 \1\         2.5785 h..........  2.E-06            7.E+04          
Mn-57 \2\         1.47 min..........  6.E-05            2.E+06          
Co-60m \1\        10.47 min.........  1.E-03            4.E+07          
Ni-57 1,4         36.08 h...........  2.E-06            7.E+04          
Ni-65 1,5         2.520 h...........  8.E-06            3.E+05          
Cu-61 \1\         3.408 h...........  5.E-06            2.E+05          
Cu-62 \2\         9.74 min..........  5.E-06            2.E+05          
Ga-66 \1\         9.40 h............  2.E-06            7.E+04          
Ga-68 \1\         68.0 min..........  5.E-06            2.E+05          
Ga-72 \1\         14.1 h............  1.E-06            4.E+04          
Se-73 \1\         7.15 h............  4.E-06            1.E+05          
Br-77 \1\         57.04 h...........  1.E-05 \6\        4.E+05 \6\      
Br-80 \1\         17.4 min..........  5.E-05            2.E+06          
Br-82 \1\         35.30 h...........  1.E-06            4.E+04          
Br-84 \1\         31.80 min.........  2.E-06            7.E+04          
Br-85 \2\         172 s.............  5.E-05            2.E+06          
Kr-79             35.04 h...........  2.E-05            7.E+05          
Kr-81             2.1E+05 yr........  5.E-04            2.E+07          
Kr-83m            1.83 h............  5.E-02            2.E+09          
Kr-85             10.72 yr..........  1.E-04 \3\        4.E+06 \3\      

[[Page 448]]

                                                                        
Kr-85m            4.48 h............  3.E-05            1.E+06          
Kr-87             76.3 min..........  5.E-06            2.E+05          
Kr-88             2.84 h............  2.E-06            7.E+04          
Kr-89             3.16 min..........  2.E-06            7.E+04          
Kr-90             32.32 s...........  3.E-06            1.E+05          
Rb-81 \1\         4.58 h............  8.E-06            3.E+05          
Rb-82 \2\         1.25 min..........  2.E-06            7.E+04          
Rb-88 \1\         17.8 min..........  7.E-06            3.E+05          
Rb-89 \1\         15.44 min.........  2.E-06            7.E+04          
Rb-90 \2\         157 s.............  2.E-06            7.E+04          
Rb-90m \2\        258 s.............  1.E-06            4.E+04          
Sr-85m \1\        67.66 min.........  2.E-05            7.E+04          
Sr-87m \1\        2.805 h...........  6.E-05            2.E+06          
Sr-92 \1\         2.71 h............  3.E-06            1.E+05          
Sr-93 \2\         7.3 min...........  2.E-06            7.E+04          
Y-86 \1\          14.74 h...........  1.E-06            4.E+04          
Y-90m \1\         3.19 h............  5.E-06 \6\        2.E+05 \6\      
Y-91m \1\         49.71 min.........  9.E-06            3.E+05          
Nb-90 \1\         14.60 h...........  1.E-07            4.E+03          
Nb-94m \2\        6.26 min..........  9.E-04            3.E+07          
Nb-97 \1\         72.1 min..........  7.E-06            3.E+05          
Nb-97m \1\        60 s..............  6.E-06            2.E+05          
Mo-91 \2\         15.9 min..........  4.E-06            1.E+05          
Mo-101 \1\        14.61 min.........  3.E-06            1.E+05          
Tc-95 \1\         20.0 h............  5.E-06            2.E+05          
Tc-96m \1\        51.5 min..........  1.E-04            4.E+06          
Tc-99m \1\        6.02 h............  3.E-05            1.E+06          
Tc-101 \1\        14.2 min..........  1.E-05            4.E+05          
Ru-105 \1\        4.44 h............  5.E-06            2.E+05          
Rh-105m \2\       45 s..............  1.E-04            4.E+06          
Rh-106 \2\        29.92 s...........  2.E-05            7.E+05          
Ag-108 \2\        2.37 min..........  2.E-04            7.E+06          
Ag-109m \2\       39.6 s............  1.E-03            4.E+07          
Ag-110 \2\        24.57 s...........  9.E-05            3.E+06          
Cd-111m \2\       48.7 min..........  1.E-05            4.E+05          
Cd-117 \1\        2.49 h............  4.E-06            1.E+05          
Cd-117m \1\       3.36 h............  2.E-06            7.E+04          
In-113m \1\       1.658 h...........  2.E-05            7.E+05          
In-114 \2\        71.9 s............  1.E-04            4.E+06          
In-116m \1\       54.15 min.........  2.E-06            7.E+04          
In-117 \1\        43.8 min..........  7.E-06            3.E+05          
Sb-117 \1\        2.80 h............  3.E-05            1.E+06          
Sb-126m \1\       19.0 min..........  3.E-06            1.E+05          
Sb-129 \1\        4.40 h............  3.E-06            1.E+05          
Te-133 \1\        12.45 min.........  5.E-06            2.E+05          
Te-133m \1\       55.4 min..........  2.E-06            7.E+04          
Te-134 \1\        41.8 min..........  5.E-06            2.E+05          
I-122 \2\         3.62 min..........  5.E-06            2.E+05          
I-128 \1\         24.99 min.........  5.E-05            2.E+06          
I-132 \1\         2.30 h............  2.E-06            7.E+04          
I-134 \1\         52.6 min..........  1.E-06            4.E+04          
I-135 \1\         6.61 h............  7.E-07 \6\        3.E+04 \6\      
I-136 \2\         83 s..............  1.E-06            4.E+04          
Xe-122            20.1 h............  8.E-05            3.E+06          
Xe-123            2.14 h............  7.E-06            3.E+05          
Xe-125            16.8 h............  2.E-05            7.E+05          
Xe-127            36.406 d..........  1.E-05            4.E+05          
Xe-129m           8.89 d............  2.E-04            7.E+06          
Xe-131m           11.84 d...........  5.E-04            2.E+07          
Xe-133            5.245 d...........  1.E-04            4.E+06          
Xe-133m           2.19 d............  1.E-04            4.E+06          
Xe-135            9.11 h............  2.E-05            7.E+05          
Xe-135m           15.36 min.........  1.E-05            4.E+05          
Xe-137            3.83 min..........  2.E-05            7.E+05          
Xe-138            14.13 min.........  4.E-06            1.E+05          
Cs-126 \2\        1.64 min..........  4.E-06            1.E+05          
Cs-129 \1\        32.06 h...........  1.E-05 \6\        4.E+05 \6\      
Cs-138 \1\        32.2 min..........  2.E-06            7.E+04          
Cs-139 \2\        9.40 min..........  1.E-05            4.E+05          
Ba-137m \2\       2.552 min.........  7.E-06            3.E+05          
Ba-141 \1\        18.27 min.........  5.E-06            2.E+05          
Ba-142 \1\        10.70 min.........  5.E-06            2.E+05          

[[Page 449]]

                                                                        
La-142 \1\        95.4 min..........  1.E-06            4.E+04          
Pr-144m \2\       7.2 min...........  9.E-04            3.E+07          
Nd-149 \1\        1.73 h............  1.E-05            4.E+05          
Gd-162 \2\        9.7 min...........  1.E-05            4.E+05          
Td-162 \2\        7.76 min..........  4.E-06            1.E+05          
Dy-157 \1\        8.06 h............  1.E-05            4.E+05          
Re-182m \1\       12.7 h............  4.E-06            1.E+05          
Os-190m \2\       9.9 min...........  3.E-06            1.E+05          
Ir-190m \1\       3.2 h.............  8.E-05 \6\        3.E+06 \6\      
Au-195m \2\       30.6 s............  2.E-05            7.E+05          
Tl-200 \1\        26.1 h............  3.E-06            1.E+05          
Tl-207 \2\        4.77 min..........  4.E-05 \3\        1.E+06 \3\      
Tl-208 \2\        3.053 min.........  1.E-06            4.E+04          
Tl-209 \2\        2.20 min..........  2.E-06            7.E+04          
Tl-210 \2\        1.30 min..........  1.E-06            4.E+04          
Pb-204m \2\       66.9 min..........  2.E-06            7.E+04          
Bi-211 \2\        2.13 min..........  1.E-04            4.E+06          
Po-211 \2\        0.516 s...........  5.E-04            2.E+07          
Rn-220            55.61 s...........  8.E-09 \6\        3.E+02 \6\      
Rn-222            3.824 d...........  3.E-08 \6\        1.E+03 \6\      
Th-233 \2\        22.3 min..........  1.E-04            4.E+06          
Pa-234 \1\        6.70 h............  2.E-06            7.E+04          
Pa-234m \2\       1.17 min..........  4.E-05 \3\        1.E+06 \3\      
U-239 \1\         23.40 min.........  8.E-05 \6\        3.E+06 \6\      
Np-240 \1\        65 min............  4.E-06            1.E+05          
Np-240m \2\       7.4 min...........  1.E-05            4.E+05          
Am-246 \1\        25.0 min..........  4.E-06            1.E+05          
------------------------------------------------------------------------
\1\ Committed effective dose equivalent from inhalation is calculated in
  ICRP Publication 30, but the DAC value for external exposure to a     
  contaminated atmospheric cloud is more restrictive than the DAC value 
  for inhalation.                                                       
\2\ Committed effective dose equivalent from inhalation is not          
  calculated in ICRP Publication 30, but DAC value for external exposure
  to contaminated cloud should be more restrictive than DAC value for   
  inhalation due to relatively short half-life of radionuclide.         
\3\ DAC value is determined by limit on annual shallow dose equivalent  
  to skin, rather than yearly limit on effective dose equivalent.       
\4\ DAC value applies to radionuclide in vapor form only; DAC value for 
  inhalation is more restrictive for radionuclide in inorganic form.    
\5\ DAC value applies to radionuclide in inorganic or vapor form.       
\6\ DAC value for exposure to contaminated atmospheric cloud is the same
  as DAC value for inhalation.                                          

          Appendix D to Part 835--Surface Radioactivity Values

             Surface Radioactivity Values; 1 in dpm/100 cm 2            
------------------------------------------------------------------------
                                                          Total (Fixed +
                Nuclide                  Removable 2, 4  Removable) 2, 3
------------------------------------------------------------------------
U-nat, U-235, U-238, and associated                                     
 decay products........................           1,000            5,000
Transuranics, Ra-226, Ra-228, Th-230,                                   
 Th-228, Pa-231, Ac-227, I-125, I-129..              20              500
Th-nat, Th-232, Sr-90, Ra-223, Ra-224,                                  
 U-232, I-126, I-131, I-133............             200            1,000
Beta-gamma emitters (nuclides with                                      
 decay modes other than alpha emission                                  
 or spontaneous fission) except Sr-90                                   
 and others noted above.5..............           1,000            5,000
Tritium Organic Compounds; surfaces                                     
 contaminated by HT, HTO, and metal                                     
 tritide aerosols......................      [Reserved]      [Reserved] 
------------------------------------------------------------------------
1 The values in this appendix apply to radioactive contamination        
  deposited on, but not incorporated into the interior of, the          
  contaminated item. Where surface contamination by both alpha- and beta-
  gamma-emitting nuclides exists, the limits established for alpha- and 
  beta-gamma-emitting nuclides should apply independently.              
2 As used in this table, dpm (disintegrations per minute) means the rate
  of emission by radioactive material as determined by correcting the   
  counts per minute observed by an appropriate detector for background, 
  efficiency, and geometric factors associated with the instrumentation.
                                                                        
3 The levels may be averaged over one square meter provided the maximum 
  surface activity in any area of 100 cm 2 is less than three times the 
  value specified. For purposes of averaging, any square meter of       
  surface shall be considered to be above the activity guide G if: (1)  
  From measurements of a representative number n of sections it is      
  determined that 1/n n S i  G, where S i is the dpm/100 cm 2  
  determined from measurement of section i; or (2) it is determined that
  the sum of the activity of all isolated spots or particles in any 100 
  cm 2 area exceeds 3G.                                                 
4 The amount of removable radioactive material per 100 cm 2 of surface  
  area should be determined by swiping the area with dry filter or soft 
  absorbent paper, applying moderate pressure, and then assessing the   
  amount of radioactive material on the swipe with an appropriate       
  instrument of known efficiency. (Note--The use of dry material may not
  be appropriate for tritium.) When removable contamination on objects  
  of surface area less than 100 cm 2 is determined, the activity per    
  unit area should be based on the actual area and the entire surface   
  should be wiped. Except for transuranics and Ra-228, Ac-227, Th-228,  
  Th-230, Pa-231 and alpha emitters, it is not necessary to use swiping 
  techniques to measure removable contamination levels if direct scan   
  surveys indicate that the total residual surface contamination levels 
  are within the limits for removable contamination.                    
5 This category of radionuclides includes mixed fission products,       
  including the Sr-90 which is present in them. It does not apply to Sr-
  90 which has been separated from the other fission products or        
  mixtures where the Sr-90 has been enriched.                           


[[Page 450]]

                   Appendix E to Part 835  [Reserved]



PART 840--EXTRAORDINARY NUCLEAR OCCURRENCES--Table of Contents




Sec.
840.1  Scope and purpose.
840.2  Procedures.
840.3  Determination of extraordinary nuclear occurrence.
840.4  Criterion I--Substantial discharge of radioactive material or 
          substantial radiation levels offsite.
840.5  Criterion II--Substantial damages to persons offsite or property 
          offsite.

    Authority: Sec. 161 of the Atomic Energy Act of 1954, Pub. L. 83-
703, 68 Stat. 919 (42 U.S.C. 2201); sec. 170 of the Atomic Energy Act of 
1954, Pub. L. 85-256, 71 Stat. 576, as amended by Pub. L. 89-645, 80 
Stat. 891 (42 U.S.C. 2210); Department of Energy Organization Act, Pub. 
L. 95-91, 91 Stat. 565-613 (42 U.S.C. 7101-7352).

    Source: 49 FR 21473, May 21, 1984, unless otherwise noted.



Sec. 840.1  Scope and purpose.

    (a) Scope. This subpart applies to those DOE contractor activities 
to which the nuclear hazards indemnity provisions in 41 CFR 9-50.704-6 
apply, and to other persons indemnified with respect to such activities.
    (b) Purpose. One purpose of this subpart is to set forth the 
criteria which the DOE proposes to follow in order to determine whether 
there has been an ``extraordinary nuclear occurrence.'' The other 
purpose is to establish the conditions of the waivers of defenses 
proposed for incorporation in indemnity agreements.
    (1) The system is to come into effect only where the discharge or 
dispersal constitutes a substantial amount of source, special nuclear or 
byproduct material, or has caused substantial radiation levels offsite. 
The various limits in present DOE regulations are not appropriate for 
direct application in the determination of an ``extraordinary nuclear 
occurrence,'' for they were arrived at with other purposes in mind, and 
those limits have been set at a level which is conservatively arrived at 
by incorporating a significant safety factor. Thus, a discharge or 
dispersal which exceeds the limits in DOE regulations, or in DOE orders, 
although possible cause for concern, is not one which would be expected 
to cause substantial injury or damage unless it exceeds by some 
significant multiple the appropriate regulatory limit. Accordingly, in 
arriving at the values in the criteria to be deemed ``substantial'' it 
is more appropriate to adopt values separate from DOE health and safety 
orders, and, of course the selection of these values will not in any way 
affect such orders. A substantial discharge, for purposes of the 
criteria, represents a perturbation of the environment which is clearly 
above that which could be anticipated from the conduct of normal 
activities. The criteria are intended solely for the purposes of 
administration of DOE statutory responsibilities under Pub. L. 89-645, 
and are not intended to indicate a level of discharge or dispersal at 
which damage is likely to occur, or even a level at which some type of 
protective action is indicated. It should be clearly understood that the 
criteria in no way establish or indicate that there is a specific 
threshold of exposure at which biological damage from radiation will 
take place. It cannot be emphasized too frequently that the levels set 
to be used as criteria for the first part of the determination, that is, 
the criteria for amounts offsite or radiation levels offsite which are 
substantial, are not meant to indicate that, because such amounts or 
levels are determined to be substantial for purposes of administration, 
they are ``substantial'' in terms of their propensity for causing injury 
or damage.
    (2) It is the purpose of the second part of the determination that 
DOE decide whether there have in fact been or will probably be 
substantial damages to persons offsite or property offsite. The criteria 
for substantial damages were formulated, and the numerical values 
selected, on a wholly different basis from that on which the criteria 
used for the first part of the determination with respect to substantial 
discharge were derived. The only interrelation between the values 
selected for the discharge criteria and the damage criteria is that the 
discharge values are set so low that it is extremely unlikely the damage 
criteria could be satisfied unless the discharge values have been 
exceeded.

[[Page 451]]

    (3) The first part of the test is designed so that DOE can assure 
itself that something exceptional has occurred; that something untoward 
and unexpected has in fact taken place and that this event is of 
sufficient significance to raise the possibility that some damage to 
persons or property offsite has resulted or may result. If there appears 
to be no damage, the waivers will not apply because DOE will be unable, 
under the second part of the test, to make a determination that 
``substantial damages'' have resulted or will probably result. If 
damages have resulted or will probably result, they could vary from de 
minimis to serious, and the waivers will not apply until the damages, 
both actual and probable, are determined to be ``substantial'' within 
the second part of the test.
    (4) The presence or absence of an extraordinary nuclear occurrence 
determination does not concomitantly determine whether or not a 
particular claimant will recover on his claim. In effect, it is intended 
primarily to determine whether certain potential obstacles to recovery 
are to be removed from the route the claimant would ordinarily follow to 
seek compensation for his injury or damage. If there has not been an 
extraordinary nuclear occurrence determination, the claimant must 
proceed (in the absence of settlement) with a tort action subject to 
whatever issues must be met, and whatever defenses are available to the 
defendant, under the law applicable in the relevant jurisdiction. If 
there has been an extraordinary nuclear occurrence determination, the 
claimant must still proceed (in the absence of settlement) with a tort 
action, but the claimant's burden is substantially eased by the 
elimination of certain issues which may be involved and certain defenses 
which may be available to the defendant. In either case the defendant 
may defend with respect to such of the following matters as are in issue 
in any given claim: the nature of the claimant's alleged damages, the 
causal relationship between the event and the alleged damages, and the 
amount of the alleged damages.



Sec. 840.2  Procedures.

    (a) DOE may initiate, on its own motion, the making of a 
determination as to whether or not there has been an extraordinary 
nuclear occurrence. In the event DOE does not so initiate the making of 
a determination, any affected person, or any person with whom an 
indemnity agreement is executed may petition DOE for a determination of 
whether or not there has been an extraordinary nuclear occurrence. If 
DOE does not have, or does not expect to have, within 7 days after it 
has received notification of an alleged event, enough information 
available to make a determination that there has been an extraordinary 
nuclear occurrence, DOE will publish a notice in the Federal Register 
setting forth the date and place of the alleged event and requesting any 
persons having knowledge thereof to submit their information to DOE.
    (b) When a procedure is initiated under paragraph (a) of this 
section, the principal staff which will begin immediately to assemble 
the relevant information and prepare a report on which the DOE can make 
its determination will consist of the Directors or their designees of 
the following Divisions or Offices: Office of Nuclear Safety, Office of 
Operational Safety, Office of Health and Environmental Research, the 
General Counsel or his designee, and a representative of the program 
division whose facility or device may be involved.



Sec. 840.3  Determination of extraordinary nuclear occurrence.

    If the DOE determines that both of the criteria set forth in 
Sec. 840.4 and Sec. 840.5 have been met, it will make the determination 
that there has been an extraordinary nuclear occurrence. If the DOE 
publishes a notice in the Federal Register in accordance with 
Sec. 840.2(a) and does not make a determination within 90 days 
thereafter that there has been an extraordinary nuclear occurrence, the 
alleged event will be deemed not to be an extraordinary nuclear 
occurrence. The time for the making of a determination may be extended 
by DOE by notice published in the Federal Register.

[[Page 452]]



Sec. 840.4  Criterion I--Substantial discharge of radioactive material or substantial radiation levels offsite.

    DOE will determine that there has been a substantial discharge or 
dispersal of radioactive material offsite, or that there have been 
substantial levels of radiation offsite, when as a result of an event 
comprised of one or more related happenings, radioactive material is 
released from its intended place of confinement or radiation levels 
occur offsite and either of the following findings are also made:
    (a) DOE finds that one or more persons offsite were, could have 
been, or might be exposed to radiation or to radioactive material, 
resulting in a dose or in a projected dose in excess of one of the 
levels in the following table:

                     Total Projected Radiation Doses                    
------------------------------------------------------------------------
                                                                   Dose 
                         Critical organ                           (rems)
------------------------------------------------------------------------
Thyroid........................................................       30
Whole Body.....................................................       20
Bone Marrow....................................................       20
Skin...........................................................       60
Other organs or tissues........................................       30
------------------------------------------------------------------------

    Exposures from the following types of sources of radiation shall be 
included:
    (1) Radiation from sources external to the body;
    (2) Radioactive material that may be taken into the body from its 
occurrence in air or water; and
    (3) Radioactive material that may be taken into the body from its 
occurrence in food or on terrestrial surfaces.
    (b) DOE finds that--
    (1) Surface contamination of at least a total of any 100 square 
meters of offsite property has occurred as the result of a release of 
radioactive material from a production or utilization facility or device 
and such contamination is characterized by levels of radiation in excess 
of one of the values listed in column 1 or column 2 of the following 
table, or
    (2) Surface contamination of any offsite property has occurred as 
the result of a release of radioactive material in the course of 
transportation and such contamination is characterized by levels of 
radiation in excess of one of the values listed in column 2 of the 
following table:

                  Total Surface Contamination Levels 1                  
------------------------------------------------------------------------
                                   Column 1--Offsite    Column 2--Other 
         Type of emitter             property \2\      offsite property 
------------------------------------------------------------------------
Alpha emission from transuranic   3.5 microcuries     0.35 microcuries  
 isotopes.                         per square meter.   per square meter.
Alpha emission from isotopes      35 microcuries per  3.5 microcuries   
 other than transuranic isotopes.  square meter.       per square meter.
Beta or gamma emission..........  40 millirads/hour   4 millirads/hour 1
                                   1 cm (measured      cm (measured     
                                   through not more    through not more 
                                   than 7 milligrams   than 7 milligrams
                                   per square          per square       
                                   centimeter of       centimeter of    
                                   total absorber).    total absorber). 
------------------------------------------------------------------------
\1\ The maximum levels (above background), observed or projected, 8 or  
  more hours after initial deposition.                                  
\2\ Contiguous to site, owned or leased by person with whom an indemnity
  agreement is executed.                                                

[49 FR 21473, May 21, 1984; 49 FR 24374, June 13, 1984]



Sec. 840.5  Criterion II--Substantial damages to persons offsite or property offsite.

    (a) After DOE has determined that an event has satisfied Criterion 
I, DOE will determine that the event has resulted or will probably 
result in substantial damages to persons offsite or property offsite if 
any of the following findings are made:
    (1) DOE finds that such event has resulted in the death or 
hospitalization, within 30 days of the event, of five or more people 
located offsite showing objective clinical evidence of physical injury 
from exposure to the radioactive, toxic, explosive, or other hazardous 
properties of source, special nuclear, or byproduct material; or
    (2) DOE finds that $2,500,000 or more of damage offsite has been or 
will probably be sustained by any one person, or $5 million or more of 
such damage in the aggregate has been or will probably be sustained, as 
the result of such event; or
    (3) DOE finds that $5,000 or more of damage offsite has been or will 
probably be sustained by each of 50 or more persons, provided that $1 
million or more of such damage in the aggregate has been or will 
probably be sustained, as the result of such event.
    (b) As used in paragraphs (a) (2) and (3) of this section ``damage'' 
shall be that arising out of or resulting from the radioactive, toxic, 
explosive, or

[[Page 453]]

other hazardous properties of source, special nuclear, or byproduct 
material, and shall be based upon estimates of one or more of the 
following:
    (1) Total cost necessary to put affected property back into use.
    (2) Loss of use of affected property.
    (3) Value of affected property where not practical to restore to 
use.
    (4) Financial loss resulting from protective actions appropriate to 
reduce or avoid exposure to radiation or to radioactive materials.



PART 860--TRESPASSING ON DEPARTMENT OF ENERGY PROPERTY--Table of Contents




Sec.
860.1  Purpose.
860.2  Scope.
860.3  Trespass.
860.4  Unauthorized introduction of weapons or dangerous materials.
860.5  Violations and penalties.
860.6  Posting.
860.7  Effective date of prohibition on designated locations.
860.8  Applicability of other laws.

    Authority: Sec. 161, 68 Stat. 948, sec. 229, 70 Stat. 1070; (42 
U.S.C. 2201; 2278a); sec. 104, 88 Stat. 1237, sec. 105, 88 Stat. 1238 
(42 U.S.C. 5814, 5815); sec. 5, Pub. L. 100-185, 101 Stat. 1279 (18 
U.S.C. 3559); sec. 6, Pub. L. 100-185, 101 Stat. 1280 (18 U.S.C. 3571); 
sec. 7041, Pub. L. 100-690, 102 Stat. 4899 (18 U.S.C. 3559).

    Source: 58 FR 47985, Sept. 14, 1993, unless otherwise noted.



Sec. 860.1  Purpose.

    The regulations in this part are issued for the protection and 
security of facilities, installations and real property subject to the 
jurisdiction or administration, or in the custody of, the Department of 
Energy.



Sec. 860.2  Scope.

    The regulations in this part apply to all facilities, installations 
and real property subject to the jurisdiction or administration of the 
Department of Energy or in its custody which have been posted with a 
notice of the prohibitions and penalties set forth in this part.



Sec. 860.3  Trespass.

    Unauthorized entry upon any facility, installation or real property 
subject to this part is prohibited.



Sec. 860.4  Unauthorized introduction of weapons or dangerous materials.

    Unauthorized carrying, transporting, or otherwise introducing or 
causing to be introduced any dangerous weapon, explosive, or other 
dangerous instrument or material likely to produce substantial injury or 
damage to persons or property, into or upon any facility, installation 
or real property subject to this part, is prohibited.



Sec. 860.5  Violations and penalties.

    (a) Whoever willfully violates either Sec. 860.3 or Sec. 860.4 
shall, upon conviction, be guilty of an infraction punishable by a fine 
of not more than $5,000.
    (b) Whoever willfully violates either Sec. 860.3 or Sec. 860.4 with 
respect to any facility, installation or real property enclosed by a 
fence, wall, floor, roof, or other structural barrier shall upon 
conviction, be guilty of a Class A misdemeanor punishable by a fine not 
to exceed $100,000 or imprisonment for not more than one year, or both.



Sec. 860.6  Posting.

    Notices stating the pertinent prohibitions of Secs. 860.3 and 860.4 
and penalties of Sec. 860.5 will be conspicuously posted at all 
entrances of each designated facility, installation or parcel of real 
property and at such intervals along the perimeter as will provide 
reasonable assurance of notice to persons about to enter.



Sec. 860.7  Effective date of prohibition on designated locations.

    The prohibitions in Secs. 860.3 and 860.4 shall take effect as to 
any facility, installation or real property on publication in the 
Federal Register of the notice designating the facility, installation or 
real property and posting in accordance with Sec. 860.6.



Sec. 860.8  Applicability of other laws.

    Nothing in this part shall be construed to affect the applicability 
of the provisions of State or other Federal laws.



PART 861--CONTROL OF TRAFFIC AT NEVADA TEST SITE--Table of Contents




Sec.
861.1  Purpose.

[[Page 454]]

861.2  Scope.
861.3  Definitions.
861.4  Use of site streets.
861.5  Penalties.
861.6  Posting and distribution.
861.7  Applicability of other laws.

Appendix A to Part 861--Perimeter Description of DOE's Nevada Test Site

    Authority: 62 Stat. 281, as amended; sec. 103, 63 Stat. 380, as 
amended, sec. 205, 63 Stat. 389; sec. 161, 68 Stat. 948, as amended, 
sec. 1, 81 Stat. 54; 40 U.S.C. 318; 42 U.S.C. 2201; 5 U.S.C. 552; 
Federal Property Management Regulations T.R. D-11, 34 FR 1997, and 
Delegation of Authority to Manager, Nevada Operations Office.

    Source: 41 FR 56788, Dec. 30, 1976, unless otherwise noted.



Sec. 861.1  Purpose.

    The regulations in this part are designed to facilitate the control 
of traffic at the Nevada Test Site.



Sec. 861.2  Scope.

    This part applies to all persons who use the streets of the Nevada 
Test Site.



Sec. 861.3  Definitions.

    As used in this part:
    (a) DOE means the Department of Energy.
    (b) Nevada Test Site means DOE's Nevada Test Site located in Nye 
County, Nev. A perimeter description is attached as Appendix A to this 
part.
    (c) Nevada Test Site Traffic Regulations means the traffic 
directives promulgated by the Manager of the Nevada Operations Office 
pursuant to Sec. 861.4.
    (d) Person means every natural person, firm, trust partnership, 
association or corporation.
    (e) Street means the entire width between the boundary lines of 
every way when any part thereof is open to the use of those admitted to 
the Nevada Test Site for purposes of vehicular travel.
    (f) Traffic means pedestrians, ridden or herded animals, vehicles, 
and other conveyances, either singly or together, while using any 
roadway for purposes of travel.
    (g) Vehicle means every device in, upon or by which any person or 
property is or may be transported or drawn upon a roadway, excepting 
devices moved by human power or used exclusively upon stationary rails 
or tracks.



Sec. 861.4  Use of site streets.

    All persons using the streets of the Nevada Test Site shall do so in 
a careful and safe manner.
    (a) The Nevada Test Site Traffic Regulations supplement this section 
by identifying the specific traffic requirements relating to such 
matters as:
    (1) Enforcement and obedience to Traffic Regulations, including the 
authority of police officers and traffic regulations, and responsibility 
to report accidents.
    (2) Traffic signs, signals, and markings, including required 
compliance with traffic lanes and traffic control devices, and 
prohibitions on display of unauthorized traffic signs, signals, or 
marking or interference with authorized traffic control devices.
    (3) Speeding or driving under the influence of intoxicating liquor 
or drugs, including prohibitions on reckless driving, and promulgation 
of maximum permissible speeds.
    (4) Turning movements, including required position and method of 
turning at intersections, limitations on turning around, and obedience 
to turning markers and no-turn signs.
    (5) Stopping and yielding, including obedience to stop and yield 
signs, requirements, when entering stop or yield intersections, emerging 
from alleys, driveways, or buildings, operation of vehicles on approach 
of authorized emergency vehicles and stops when traffic is obstructed.
    (6) Pedestrians' rights and duties, including pedestrian's right-of-
way in crosswalks, when a pedestrian must yield, required use or right 
half of crosswalks and requirements concerning walking along roadways 
and prohibited pedestrian crossings.
    (7) Parking, stopping, and standing, specifying when parking, 
stopping, and standing are prohibited, including special provisions 
applicable to buses, requirements that parking not obstruct traffic and 
be close to curb, and concerning lamps on parked vehicles.
    (8) Privileges of drivers of authorized emergency vehicles, 
including exemptions from parking and standing, stopping, speeding and 
turning limitations,

[[Page 455]]


under specified circumstances and within specified limitations.
    (9) Miscellaneous driving rules, including requirements for convoys, 
and limitations on backing, opening and closing vehicle doors, following 
fire apparatus, crossing a fire hose, driving through a safety zone, 
through convoys, on sidewalks or shoulders of roadways, boarding or 
alighting from vehicles, passing a bus on the right, and unlawful 
riding.
    (b) The Nevada Test Site Traffic Regulations, when posted and 
distributed as specified in Sec. 861.6, shall have the same force and 
effect as if made a part hereof.



Sec. 861.5  Penalties.

    Any person doing any act forbidden or failing to do any act required 
by the Nevada Test Site Traffic Regulations shall, upon conviction, be 
punishable by a fine of not more than $50 or imprisonment for not more 
than 30 days, or both.



Sec. 861.6  Posting and distribution.

    Notices including the provisions of the Nevada Test Site Traffic 
Regulations will be conspicuously posted at the Nevada Test Site. Such 
other distribution of the Nevada Test Site Regulations will be made by 
the Manager as will provide reasonable assurance of notice to persons 
subject to the regulations.



Sec. 861.7  Applicability of other laws.

    Nothing in this part shall be construed to affect the applicability 
of the provisions of State laws or of other Federal laws.

 Appendix A to Part 861--Perimeter Description of DOE's Nevada Test Site

    The Nevada Test Site, containing approximately 858,764 acres located 
in Nye County, Nev., is described as follows:
Beginning at the northwesterly corner of the tract of land hereinafter 
described, said corner being at latitude 37 deg.20'45', longitude 
116 deg.34'20';
Thence easterly approximately 6.73 miles, to a point at latitude 
37 deg.20'45' longitude 116 deg.27'00';
Thence northeasterly approximately 4.94 miles to a point at latitude 
37 deg.23'07', longitude 116 deg.22'30';
Thence easterly approximately 4.81 miles to a point at latitude 
37 deg.23'07', longitude 116 deg.17'15';
Thence southeasterly approximately 6.77 miles to a point at latitude 
37 deg.19'47', longitude 116 deg.11'10';
Thence southerly approximately 5.27 miles to a point at latitude 
37 deg.15'12.043', longitude 116 deg.11'10';
Thence easterly approximately 14.21 miles to a point at latitude 
37 deg.15'07.268', longitude 115 deg.55'42.268';
Thence southerly approximately 39.52 miles to a point at latitude 
36 deg.40'43.752', longitude 115 deg.55'37.687';
Thence westerly approximately 2.87 miles to a point at latitude 
36 deg.40'40.227', longitude 115 deg.58'43.956';
Thence southerly approximately 5.23 miles to a point at latitude 
36 deg.36'07.317', longitude 115 deg.58'41.227';
Thence southwesterly along a perimeter distance approximately 5.82 miles 
to a point at latitude 36 deg.34'39.754', longitude 116 deg.04'11.167';
Thence northerly approximately 3.20 miles to a point at latitude 
36 deg.37'26.804', longitude 116 deg.04'11.355';
Thence northwesterly approximately 5.16 miles to a point at latitude 
36 deg.40'28.854', longitude 116 deg.08'17.749';
Thence westerly approximately 8.63 miles to a point at latitude 
36 deg.40'23.246', longitude 116 deg.17'37.466';
Thence southerly approximately 0.19 mile to a point at latitude 
36 deg.40'13.330', longitude 116 deg.17'37.461';
Thence westerly approximately 8.49 miles to a point at latitude 
36 deg.40'13.666', longitude 116 deg.26'47.915';
Thence northerly approximately 32.87 miles to a point at latitude 
37 deg.08'50', longitude 116 deg.26'44.125';
Thence northwesterly approximately 15.37 miles to a point at latitude 
37 deg.20'45', longitude 116 deg.34'20', the point of beginning herein.
[41 FR 56788, Dec. 30. 1978, as amended at 44 FR 37939, June 29, 1979]



PART 862--RESTRICTIONS ON AIRCRAFT LANDING AND AIR DELIVERY AT DEPARTMENT OF ENERGY NUCLEAR SITES--Table of Contents




Sec.
862.1  Purpose.
862.2  Scope.
862.3  Definitions.
862.4  Prohibitions and penalties.
862.5  Procedures for removal of downed aircraft.
862.6  Voluntary minimum altitude.
862.7  Designation of sites.


[[Page 456]]


    Authority: 42 U.S.C. 2201(b), 2201(i) and 2278(a).

    Source: 52 FR 29838, Aug. 12, 1987, unless otherwise noted.



Sec. 862.1  Purpose.

    The purpose of this part is to set forth Department of Energy, 
hereinafter ``DOE'', security policy regarding aircraft and air delivery 
on nuclear sites under the jurisdiction of DOE pursuant to the Atomic 
Energy Act of 1954, as amended (42 U.S.C. 2011 et seq.).



Sec. 862.2  Scope.

    (a) This part applies to all persons or aircraft entering or 
otherwise within or above areas within the boundaries of lands or waters 
subject to the jursidiction, administration, or in the custody of the 
DOE at sites designated by DOE.
    (b) This part is not applicable to:
    (1) Aircraft operating pursuant to official business of the Federal 
Government;
    (2) Aircraft over-flying or in the process of landing pursuant to 
official business of a state or local law enforcement authority with 
prior notification to DOE; or
    (3) Aircraft in the process of landing on a DOE site due to 
circumstances beyond the control of the operator and with prior 
notification to DOE, if possible.
    (c) Aircraft in paragraphs (b)(2) and (b)(3) of this section are 
within the scope of this part upon landing at a DOE designated site.



Sec. 862.3  Definitions.

    (a) Air delivery. Delivering or retrieving a person or object by 
airborne means, including but not limited to, aircraft.
    (b) Aircraft. A manned a unmanned device or any portion thereof, 
that is commonly used or intended to be used for flight in the air, 
including powerless flight. Such devices include but are not limited to 
any parachute, hovercraft, helicopter, glider, airplane or lighter than 
air vehicle.
    (c) Boundary. A delineation on a map of Federal interest in land or 
water utilized by DOE pursuant to the Atomic Energy Act of 1954, as 
amended:
    (1) Authorized by Congress, or
    (2) Published pursuant to law in the Federal Register, or
    (3) Filed or recorded with a State or political subdivision in 
accordance with applicable law.
    (d) Designated site. An area of land or water identified in 
accordance with Sec. 862.7 of this part.
    (e) Downed aircraft. An aircraft that is on a designated site due to 
emergency landing or for any other reason.
    (f) Manager of Operations. The Manager of a DOE Operations Office, 
the Manager of the Pittsburgh Naval Reactors Office, the Manager of the 
Schnectady Naval Reactors Office and, for designated sites administered 
directly by DOE Headquarters, the Director of the Office of Safeguards 
and Security.



Sec. 862.4  Prohibitions and penalties.

    (a) The following activities are prohibited by his part:
    (1) Operation or use of aircraft on lands or waters of designated 
sites.
    (2) Air delivery to or from designated sites.
    (3) Removal or movement of downed aircraft, or participation in the 
removal or movement of downed aircraft, from or on a designated site 
unless prior authorization is obtained pursuant to Sec. 862.5 of this 
part.
    (4) Failure to remove a downed aircraft from a designated site in 
accordance with an order issued by the cognizant DOE Manager of 
Operations under Sec. 862.5 of this part.
    (5) Violation of Federal Aviation Administration regulations 
regarding minimum altitudes and prohibited flight maneuvers over a 
designated site.
    (b) A person willfully engaging in activities prohibited by this 
part may be subject to the imposition of criminal penalties set forth in 
sections 223 and 229 of the Atomic Energy Act, as amended (42 U.S.C. 
2273 and 2278(a)).



Sec. 862.5  Procedures for removal of downed aircraft.

    (a) An aircraft on or brought on to a designated site, except as 
provided in Sec. 862.2 (b)(1), shall not be moved within or removed from 
such areas except as provided for in this section. All such aircraft are 
subject to full inspection

[[Page 457]]

by DOE security personnel upon landing upon order of the Manager of 
Operations or his designee. Any attempt to depart or remove the aircraft 
from a designated site without clearance obtained pursuant to this 
section, may be assumed to be indicative of hostile intent by security 
forces at such sites.
    (b)(1) The cognizant DOE Manager of Operations for a designated site 
may, on his own initiative, issue a written order to the owner or 
operator of a downed aircraft to require the removal of that aircraft 
from the site within 20 days of this notice. Such an order shall 
specify:
    (i) The date upon which removal operations must be completed;
    (ii) The times and means of access to and from the downed aircraft 
to be removed;
    (iii) The manner of removal; and
    (iv) An estimate of the cost of removal to DOE for which the owner 
or operator will be held liable if removal is accomplished by DOE.
    (2) The owner or operator of the downed aircraft may file a written 
petition, supported by affidavits, to the cognizant Manager of 
Operations requesting that the order be modified or set aside. The 
petition may be granted by the Manager of Operations for good cause 
shown, upon a finding that it is clearly consistent with the national 
security, public safety, and federal property interests. Such petition 
must be filed at least 10 days prior to the date upon which removal is 
to be initiated, as specified in the order. The written decision of the 
Manager of Operations shall be a final agency action.
    (c)(1) The owner of a downed aircraft may petition the cognizant 
Manager of Operations of permission to move or remove the downed 
aircraft from or within a designated site. The petition must provide 
assurances that the owner will fully compensate DOE for all costs 
incurred or damages experienced as a result of landing or removal 
through a contact for services. The Manager of Operations may, for good 
cause shown, waive part or all of the compensation which might otherwise 
be due DOE.
    (2) The Manager of Operations may deny such petition in whole or 
part and prohibit removal of a downed aircraft upon finding that:
    (i) The removal of a downed aircraft would create an unacceptable 
safety or security risk;
    (ii) The removal of a downed aircraft would result in excessive 
resource loss of property damage or an unacceptable disruption of 
federal activities;
    (iii) The removal of downed aircraft is impracticable or impossible;
    (iv) The owner has failed to provide adequate assurances that all 
costs incurred or damages experienced by DOE due to landing or removal 
of aircraft will be fully paid immediately upon removal by the owner 
under a contract for services;
    (v) An inspection of the aircraft has not been conducted by DOE 
security personnel.
    (3) In the event that such petition is granted in whole or part, the 
cognizant Manager of Operations may issue an order, as set forth in 
(b)(1) (i) through (iv) of this section. In the event that a petition is 
denied in whole or part, the Manager of Operations shall issue a written 
decision which shall set forth the reasons for such denial.
    (d) Failure to comply with an order issued by the Manager of 
Operations pursuant to this section is basis for DOE to consider the 
downed aircraft to be abandoned property. DOE may take whatever measures 
it deems necessary when it determines that downed aircraft is abandoned 
property.
    (e) Notwithstanding paragraphs (b) and (c) of this section, the 
Manager of Operations may move or remove a downed aircraft from such an 
area upon oral or written notification to the owner or operator of such 
aircraft upon a finding that national security or operational 
requirements necessitate expedited movement or removal. The owner or 
operator may be held jointly and separately liable for all expenses 
incurred by DOE in the movement or removal of such aircraft. Such 
expenses shall be deemed to be incurred through an implied contract at 
law for services.



Sec. 862.6  Voluntary minimum altitude.

    In addition to complying with all applicable FAA prohibitions or 
restrictions, aircraft are requested to maintain a minimum altitude of 
2,000 feet above the terrain of a designated site.

[[Page 458]]

Applicable FAA prohibitions or restrictions take precedence over this 
voluntary minimum altitude.



Sec. 862.7  Designation of sites.

    (a) DOE shall designate sites covered by this part as deemed 
necessary, consistent with the national security and public safety, 
through notice in the Federal Register.
    (b) This part shall be effective as to any facility, installation, 
or real property on publication in the Federal Register of the notice 
designating the site.
    (c) Upon designation of a site, the cognizant Manager of Operations 
may inform the public of such designation through press release or 
posting of notice at airfields in the vicinity of the designated site.



PART 871--AIR TRANSPORTATION OF PLUTONIUM--Table of Contents




Sec.
871.1  National security exemption.
871.2  Public health and safety exemption.
871.3  Records.
871.4  Limitation on redelegation of authority.

    Authority: Pub. L. 94-187, 88 Stat. 1077, 1078 (42 U.S.C. 2391 et 
seq.); Energy Reorganization Act, Pub. L. 93-438, 88 Stat. 1233 (42 
U.S.C. 5801 et seq.); secs. 2, 3, 91, 123, and 161 of the Atomic Energy 
Act of 1954, as amended.

    Source: 42 FR 48332, Sept. 23, 1977, unless otherwise noted.



Sec. 871.1  National security exemption.

    (a) The following DOE air shipments of plutonium are considered as 
being made for the purposes of national security within the meaning of 
section 502(2) of Public Law 94-187:
    (1) Shipments made in support of the development, production, 
testing, sampling, maintenance, repair, modification, or retirement of 
atomic weapons or devices;
    (2) Shipments made pursuant to international agreements for 
cooperation for mutual defense purposes; and
    (3) Shipments necessary to respond to an emergency situation 
involving a possible threat to the national security.
    (b) The Managers of DOE's Albuquerque, San Francisco, Oak Ridge, 
Savannah River, and Nevada Operations Offices may authorize air 
shipments falling within paragraph (a)(1) of this section, on a case-by-
case basis: Provided, That the matter falls within their respective 
scopes of responsibility and that they determine such shipment is 
required to be made by aircraft either because:
    (1) The delay resulting from using ground transportation methods 
would have serious adverse impact upon a national security requirement;
    (2) Safeguards or safety considerations dictate the use of air 
transportation;
    (3) The nature of the item to be shipped necessitates the use of air 
transportation in order to avoid possible damage which may be expected 
from other available transportation environments; or
    (4) The nature of the item being shipped necessitates rapid shipment 
by air in order to preserve the chemical, physical, or isotopic 
properties of the item.

They may also authorize air shipments falling within paragraph (a)(2) of 
this section in all cases since the inherent time delays of surface 
transportation for such shipments are considered unacceptable. They may 
also authorize air shipments falling within paragraph (a)(3) of this 
section in cases where failure to make shipments by air could jeopardize 
the national security of the United States.



Sec. 871.2  Public health and safety exemption.

    The Managers of DOE's Albuquerque, San Francisco, Oak Ridge, 
Savannah River, Nevada, Chicago, Idaho, and Richland Operations Offices 
may authorize, on a case-by-case basis, DOE air shipments of plutonium 
where they determine that rapid shipment by air is required to respond 
to an emergency situation involving possible loss of life, serious 
personal injuries, considerable property damage, or other significant 
threat to the public health and safety.



Sec. 871.3  Records.

    Determinations made by the authorizing officials pursuant to these 
rules

[[Page 459]]

shall be matters of record. Such authorizations shall be reported to the 
Assistant Administrator for National Security within twenty-four hours 
after authorization is granted.



Sec. 871.4  Limitation on redelegation of authority.

    The authority delegated in this part may not be redelegated without 
the prior approval of the Assistant Administrator for National Security.



PART 903--POWER AND TRANSMISSION RATES--Table of Contents




Subpart A--Procedures for Public Participation in Power and Transmission 
     Rate Adjustments and Extensions for the Alaska, Southeastern, 
          Southwestern, and Western Area Power Administrations

Sec.
903.1  Purpose and scope; application.
903.2  Definitions.
903.11  Advance announcement of rate adjustment.
903.13  Notice of proposed rates.
903.14  Consultation and comment period.
903.15  Public information forums.
903.16  Public comment forums.
903.17  Informal public meetings for minor rate adjustments.
903.18  Revision of proposed rates.
903.21  Completion of rate development; provisional rates.
903.22  Final rate approval.
903.23  Rate extensions.

    Authority: Secs. 301(b), 302(a), and 644 of Department of Energy 
Organization Act, Pub. L. 95-91 (42 U.S.C. 7101 et seq.); sec. 5 of the 
Flood Control Act of 1944 (16 U.S.C. 825s); the Reclamation Act of 1902 
(43 U.S.C. 372 et seq.), as amended and supplemented by subsequent 
enactments, particularly sec. 9(c) of the Reclamation Project Act of 
1939 (43 U.S.C. 485h(c)); and the Acts specifically applicable to 
individual projects or power systems.

    Source: 50 FR 37837, Sept. 18, 1985, unless otherwise noted.



Subpart A--Procedures for Public Participation in Power and Transmission 
     Rate Adjustments and Extensions for the Alaska, Southeastern, 
          Southwestern, and Western Area Power Administrations



Sec. 903.1  Purpose and scope; application.

    (a) Except as otherwise provided herein, these regulations establish 
procedures for the development of power and transmission rates by the 
Administrators of the Alaska, Southeastern, Southwestern, and Western 
Area Power Administrations; for the providing of opportunities for 
interested members of the public to participate in the development of 
such rates; for the confirmation, approval, and placement in effect on 
an interim basis by the Deputy Secretary of the Department of Energy of 
such rates; and for the submission of such rates to the Federal Energy 
Regulatory Commission with or without prior interim approval. These 
regulations supplement Delegation Order No. 0204-108 of the Secretary of 
Energy, which was published in the Federal Register and became effective 
on December 14, 1983 (48 FR 55664), with respect to the activities of 
the Deputy Secretary and the Administrators.
    (b) These procedures shall apply to all power and transmission rate 
adjustment proceedings for the Power Marketing Administrations (PMAs) 
which are commenced after these regulations become effective or were in 
process on the effective date of these regulations, but for which the 
FERC had not issued any substantive orders on or before December 14, 
1983. These procedures supersede ``Procedures for Public Participation 
in Power and Transmission Rate Adjustments and Extensions for the 
Alaska, Southeastern, Southwestern, and Western Area Power 
Administrations'' published in 45 FR 86983 (December 31, 1980) and 
amended at 46 FR 6864 (January 22, 1981) and 46 FR 25427 (May 7, 1981).

[[Page 460]]

    (c) Except to the extent deemed appropriate by the Administrator in 
accordance with applicable law, these procedures do not apply to rates 
for short term sales of capacity, energy, or transmission service.
[50 FR 37837, Sept. 18, 1985; 50 FR 48075, Nov. 21, 1985]



Sec. 903.2  Definitions.

    As used herein--
    (a) Administrator means the Administrator of the PMA whose rate is 
involved in the rate adjustment, or anyone acting in such capacity.
    (b) Department means the Department of Energy, including the PMAs 
but excluding the Federal Energy Regulatory Commission.
    (c) Deputy Secretary means the Deputy Secretary of the Department of 
Energy, or anyone acting in such capacity.
    (d) FERC means the Federal Energy Regulatory Commission.
    (e) Major rate adjustment means a rate adjustment other than a minor 
rate adjustment.
    (f) Minor rate adjustment means a rate adjustment which (1) will 
produce less than 1 percent change in the annual revenues of the power 
system or (2) is for a power system which has either annual sales 
normally less than 100 million kilowatt hours or an installed capacity 
of less than 20,000 kilowatts.
    (g) Notice means the statement which informs customers and the 
general public of Proposed Rates or proposed rate extensions, 
opportunities for consultation and comment, and public forums. The 
Notice shall be by and effective on the date of publication in the 
Federal Register. Whenever a time period is provided, the date of 
publication in the Federal Register shall determine the commencement of 
the time period, unless otherwise provided in the Notice. The Notice 
shall include the name, address, and telephone number of the person to 
contact if participation or further information is sought.
    (h) Power Marketing Administration or PMA means the Alaska Power 
Administration, Southeastern Power Administration, Southwestern Power 
Administration, or Western Area Power Administration.
    (i) Power system means a powerplant or a group of powerplants and 
related facilities, including transmission facilities, or a transmission 
system, that the PMA treats as one unit for the purposes of establishing 
rates and demonstrating repayment.
    (j) Proposed Rate means a rate revision or a rate for a new service 
which is under consideration by the Department on which public comment 
is invited.
    (k) Provisional Rate means a rate which has been confirmed, 
approved, and placed in effect on an interim basis by the Deputy 
Secretary.
    (l) Rate means the monetary charge or the formula for computing such 
a charge for any electric service provided by the PMA, including but not 
limited to charges for capacity (or demand), energy, or transmission 
service; however, it does not include leasing fees, service facility 
charges, or other types of facility use charges. A rate may be set forth 
in a rate schedule or in a contract.
    (m) Rate adjustment means a change in an existing rate or rates, or 
the establishment of a rate or rates for a new service. It does not 
include a change in rate schedule provisions or in contract terms, other 
than changes in the price per unit of service, nor does it include 
changes in the monetary charge pursuant to a formula stated in a rate 
schedule or a contract.
    (n) Rate schedule means a document identified as a ``rate 
schedule,'' ``schedule of rates,'' or ``schedule rate'' which designates 
the rate or rates applicable to a class of service specified therein and 
may contain other terms and conditions relating to the service.
    (o) Short term sales means sales that last for no longer than one 
year.
    (p) Substitute Rate means a rate which has been developed in place 
of the rate that was disapproved by the FERC.
[50 FR 37837, Sept. 18, 1985; 50 FR 48075, Nov. 21, 1985]



Sec. 903.11  Advance announcement of rate adjustment.

    The Administrator may announce that the development of rates for a 
new service or revised rates for an existing

[[Page 461]]

service is under consideration. The announcement shall contain pertinent 
information relevant to the rate adjustment. The announcement may be 
through direct contact with customers, at public meetings, by press 
release, by newspaper advertisement, and/or by Federal Register 
publication. Written comments relevant to rate policy and design and to 
the rate adjustment process may be submitted by interested parties in 
response to the announcement. Any comments received shall be considered 
in the development of Proposed Rates.



Sec. 903.13  Notice of proposed rates.

    (a) The Administrator shall give Notice tht Proposed Rates have been 
prepared and are under consideration. The Notice shall include:
    (1) The Proposed Rates;
    (2) An explanation of the need for and derivation of the Proposed 
Rates;
    (3) The locations at which data, studies, reports, or other 
documents used in developing the Proposed Rates are available for 
inspection and/or copying;
    (4) The dates, times, and locations of any initially scheduled 
public forums; and
    (5) Address to which written comments relative to the Proposed Rates 
and requests to be informed of FERC actions concerning the rates may be 
submitted.
    (b) Upon request, customers of the power system and other interested 
persons will be provided with copies of the principal documents used in 
developing the Proposed Rates.



Sec. 903.14  Consultation and comment period.

    All interested persons will have the opportunity to consult with and 
obtain information from the PMA, to examine backup data, and to make 
suggestions for modification of the Proposed Rates for a period ending 
(a) 90 days in the case of major rate adjustments, or 30 days in the 
case of minor rate adjustments, after the Notice of Proposed Rates is 
published in the Federal Register, except that such periods may be 
shortened for good cause shown; (b) 15 days after any answer which may 
be provided pursuant to Sec. 903.15(b) hereof; (c) 15 days after the 
close of the last public forum; or (d) such other time as the 
Administrator may designate; whichever is later. At anytime during this 
period, interested persons may submit written comments to the PMA 
regarding the Proposed Rates. The Administrator may also provide 
additional time for the submission of written rebuttal comments. All 
written comments shall be available at a designated location for 
inspection, and copies also will be furnished on request for which the 
Administrator may assess a fee. Prior to the action described in 
Sec. 903.21, the Administrator may, by appropriate announcement postpone 
any procedural date or make other procedural changes for good cause 
shown at the request of any party or on the Administrator's own motion. 
The Administrator shall maintain, and distribute on request, a list of 
interested persons.



Sec. 903.15  Public information forums.

    (a) One or more public information forums shall be held for major 
rate adjustments, except as otherwise provided in paragraph (c) of this 
section, and may be held for minor adjustments, to explain, and to 
answer questions concerning, the Proposed Rates and the basis of and 
justification for proposing such rates. The number, dates, and locations 
of such forums will be determined by the Administrator in accordance 
with the anticipated or demonstrated interest in the Proposed Rates. 
Notice shall be given in advance of such forums. A public information 
forum may be combined with a public comment forum held in accordance 
with Sec. 903.16.
    (b) The Administrator shall appoint a forum chairperson. Questions 
raised at the forum concerning the Proposed Rates and the studies shall 
be answered by PMA representatives at the forum, at a subsequent forum, 
or in writing at least 15 days before the end of the consultation and 
comment period. However, questions that involve voluminous data 
contained in the PMA records may be answered by providing an opportunity 
for consultation and for a review of the records at the PMA offices. As 
a minimum, the proceedings of the forum held at the principal location 
shall be transcribed. Copies of all

[[Page 462]]

documents introduced, and of questions and written answers shall be 
available at a designated location for inspection and copies will be 
furnished by the Administrator on request, for which a fee may be 
assessed. Copies of the transcript may be obtained from the transcribing 
service.
    (c) No public information forum need be held for major rate 
adjustments if, after the Administrator has given Notice of a scheduled 
forum, no person indicates in writing by a prescribed date an intent to 
appear at such public forum.



Sec. 903.16  Public comment forums.

    (a) One or more public comment forums shall be held for major rate 
adjustments, except as otherwise provided in paragraph (c) of this 
section, and may be held for minor rate adjustments, to provide 
interested persons an opportunity for oral presentation of views, data, 
and arguments regarding the Proposed Rates. The number, dates, and 
locations of such forums will be determined by the Administrator in 
accordance with the anticipated or demonstrated interest in the Proposed 
Rates. Notice shall be given at least 30 days in advance of the first 
public comment forum at each location and shall include the purpose, 
date, time, place, and other information relative to the forum, as well 
as the locations where pertinent documents are available for examination 
and/or copying.
    (b) The Administrator shall designate a forum chairperson. At the 
forum, PMA representatives may question those persons making oral 
statements and comments. The chairperson shall have discretion to 
establish the sequence of, and the time limits for, oral presentations 
and to determine if the comments are relevant and noncumulative. Forum 
proceedings shall be transcribed. Copies of all documents introduced 
shall be available at a designated location for inspection, and copies 
shall be furnished on request for which the Administrator may assess a 
fee. Copies of the transcript may be obtained from the transcribing 
service.
    (c) No public comment forum need be held for major rate adjustments 
if, after the Administrator has given notice of a scheduled forum, no 
person indicates in writing by a prescribed date an intent to appear at 
such public forum.



Sec. 903.17  Informal public meetings for minor rate adjustments.

    In lieu of public information or comment forums in conjunction with 
a minor rate adjustment, informal public meetings may be held if deemed 
appropriate by the Administrator. Such informal meetings will not 
require a Notice or a transcription.



Sec. 903.18  Revision of proposed rates.

    During or after the consultation and comment period and review of 
the oral and written comments on the Proposed Rates, the Administrator 
may revise the Proposed Rates. If the Administrator determines that 
further public comment should be invited, the Administrator shall afford 
interested persons an appropriate period to submit further written 
comments to the PMA regarding the revised Proposed Rates. The 
Administrator may convene one or more additional public information and/
or public comment forums. The Administrator shall give Notice of any 
such additional forums.



Sec. 903.21  Completion of rate development; provisional rates.

    (a) Following completion of the consultation and comment period and 
review of any oral and written comments on the Proposed Rates, the 
Administrator may: (1) Withdraw the proposal; (2) develop rates which in 
the Administrator's and the Deputy Secretary's judgment should be 
confirmed, approved, and placed into effect on an interim basis 
(Provisional Rates); or (3) develop rates which in the Administrator's 
judgment should be confirmed, approved, and placed into effect by the 
FERC on a final basis without being placed into effect on an interim 
basis. A statement shall be prepared and made available to the public 
setting forth the principal factors on which the Deputy Secretary's or 
the Administrator's decision was based. The statement shall include an 
explanation responding to the major comments, criticisms, and 
alternatives offered during the comment period. The Administrator shall 
certify that the rates are

[[Page 463]]

consistent with applicable law and that they are the lowest possible 
rates to customers consistent with sound business principles. The rates 
shall be submitted promptly to the FERC for confirmation and approval on 
a final basis.
    (b) The Deputy Secretary shall set the effective date for 
Provisional Rates. The effective date shall be at least 30 days after 
the Deputy Secretary's decision except that the effective date may be 
sooner when appropriate to meet a contract deadline, to avoid financial 
difficulties, to provide a rate for a new service, or to make a minor 
rate adjustment.
    (c) The effective date may be adjusted by the Administrator to 
coincide with the beginning of the next billing period following the 
effective date set by the Deputy Secretary for the Provisional Rates.
    (d) Provisional Rates shall remain in effect on an interim basis 
until: (1) They are confirmed and approved on a final basis by the FERC; 
(2) they are disapproved and the rates last previously confirmed and 
approved on a final basis become effective; (3) they are disapproved and 
higher Substitute Rates are confirmed and approved on a final basis and 
placed in effect by the FERC; (4) they are disapproved and lower 
Substitute Rates are confirmed and approved on a final basis by the 
FERC; or (5) they are superseded by other Provisional Rates placed in 
effect by the Deputy Secretary, whichever occurs first.



Sec. 903.22  Final rate approval.

    (a) Any rate submitted to the FERC for confirmation and approval on 
a final basis shall be accompanied with such supporting data, studies, 
and documents as the FERC may require, and also with the transcripts of 
forums, written answers to questions, written comments, the 
Administrator's certification, and the statement of principal factors 
leading to the decision. The FERC shall also be furnished a listing of 
those customers and other participants in the rate proceeding who have 
requested they be informed of FERC action concerning the rates.
    (b) If the FERC confirms and approves Provisional Rates on a final 
basis, such confirmation and approval shall be effective as of the date 
such rates were placed in effect by the Deputy Secretary, as such date 
may have been adjusted by the Administrator. If the FERC confirms and 
approves on a final basis rates submitted by the Administrator without 
interim approval, such confirmation and approval shall be effective on a 
date set by the FERC.
    (c) If the FERC disapproves Provisional Rates or other submitted 
rates, the Administrator shall develop Substitute Rates which take into 
consideration the reasons given by the FERC for its disapproval. If, in 
the Administrator's judgment, public comment should be invited upon 
proposed Substitute Rates, the Administrator may provide for a public 
consultation and comment period before submitting the Substitute Rates. 
Whether or not such public consultation and comment periods are 
provided, the Administrator will, upon request, provide customers of the 
power system and other interested persons with copies of the principal 
documents used in the development of the Substitute Rates. Within 120 
days of the date of FERC disapproval of submitted rates, including 
Substitute Rates, or such additional time periods as the FERC may 
provide, the Administrator will submit the Substitute Rates to the FERC. 
A statement explaining the Administrator's decision shall accompany the 
submission.
    (d) A Provisional Rate that is disapproved by the FERC shall remain 
in effect until higher or lower rates are confirmed and approved by the 
FERC on a final basis or are superseded by other rates placed into 
effect by the Deputy Secretary on an interim basis: Provided, That if 
the Administrator does not file a Substitute Rate within 120 days of the 
disapproval or such greater time as the FERC may provide, and if the 
rate has been disapproved because the FERC determined that it would 
result in total revenues in excess of those required by law, the rate 
last previously confirmed and approved on a final basis will become 
effective on a date and for a period determined by the FERC and revenues 
collected in excess of such rate during such period will be refunded in 
accordance with paragraph (g) of this section.

[[Page 464]]

    (e) If a Substitute Rate confirmed and approved on a final basis by 
the FERC is higher than the provisional rate which was disapproved, the 
Substitute Rate shall become effective on a subsequent date set by the 
FERC, unless a subsequent Provisional Rate even higher than the 
Substitute Rate has been put into effect. FERC confirmation and approval 
of the higher Substitute Rate shall constitute final confirmation and 
approval of the lower disapproved Provisional Rate during the interim 
period that it was in effect.
    (f) If a Substitute Rate confirmed and approved by the FERC on a 
final basis is lower than the disapproved provisional rate, such lower 
rate shall be effective as of the date the higher disapproved rate was 
placed in effect.
    (g) Any overpayment shall be refunded with interest unless the FERC 
determines that the administrative cost of a refund would exceed the 
amount to be refunded, in which case no refund will be required. The 
interest rate applicable to any refund will be determined by the FERC.
    (h) A rate confirmed and approved by the FERC on a final basis shall 
remain in effect for such period or periods as the FERC may provide or 
until a different rate is confirmed, approved and placed in effect on an 
interim or final basis: Provided, That the Deputy Secretary may extend a 
rate on an interim basis beyond the period specified by the FERC.



Sec. 903.23  Rate extensions.

    (a) The following regulations shall apply to the extension of rates 
which were previously confirmed and approved by the FERC or the Federal 
Power Commission, or established by the Secretary of the Interior, and 
for which no adjustment is comtemplated:
    (1) The Administrator shall give Notice of the proposed extension at 
least 30 days before the expiration of the prior confirmation and 
approval, except that such period may be shortened for good cause shown.
    (2) The Administrator may allow for consultation and comment, as 
provided in these procedures, for such period as the Administrator may 
provide. One or more public information and comment forums may be held, 
as provided in these procedures, at such times and locations and with 
such advance Notice as the Administrator may provide.
    (3) Following notice of the proposed extension and the conclusion of 
any consultation and comment period, the Deputy Secretary may extend the 
rates on an interim basis.
    (b) Provisional Rates and other existing rates may be extended on a 
temporary basis by the Deputy Secretary without advance notice or 
comment pending further action pursuant to these regulations or by the 
FERC. The Deputy Secretary shall publish notice in the Federal Register 
of such extension and shall promptly advise the FERC of the extension.



PART 904--GENERAL REGULATIONS FOR THE CHARGES FOR THE SALE OF POWER FROM THE BOULDER CANYON PROJECT--Table of Contents




                       Subpart A--Power Marketing

Sec.
904.1  Purpose.
904.2  Scope.
904.3  Definitions.
904.4  Marketing responsibilities.
904.5  Revenue requirements.
904.6  Charge for capacity and firm energy.
904.7  Base charge.
904.8  Lower basin development fund contribution charge.
904.9  Excess capacity.
904.10  Excess energy.
904.11  Lay off of energy.
904.12  Payments to contractors.
904.13  Disputes.
904.14  Future regulations.

    Authority: Reclamation Act of 1902 (32 Stat. 388); Boulder Canyon 
Project Act of 1928 (43 U.S.C. 617 et seq.); Boulder Canyon Project 
Adjustment Act of 1940 (43 U.S.C. 618 et seq.); Department of Energy 
Organization Act (42 U.S.C. 7101 et seq.); Colorado River Storage 
Project Act of 1956 (43 U.S.C. 620 et seq.); Colorado River Basin 
Project Act of 1968 (43 U.S.C. 1501 et seq.); and Hoover Power Plant Act 
of 1984 (98 Stat. 1333 (43 U.S.C. 619 et seq.)).

    Source: 51 FR 43154, Nov. 28, 1986, unless otherwise noted.



                       Subpart A--Power Marketing



Sec. 904.1  Purpose.

    (a) The Secretary of Energy, acting by and through the Administrator 
of

[[Page 465]]

the Western Area Power Administration (Administrator), is authorized and 
directed to promulgate charges for the sale of power generated at the 
Boulder Canyon Project powerplant, and also to promulgate such general 
regulations as the Secretary finds necessary and appropriate in 
accordance with the power marketing authorities in the Reclamation Act 
of 1902 (32 Stat. 388) and all acts amendatory thereof and supplementary 
thereto, and the Department of Energy Organization Act (42 U.S.C. 7101 
et seq.).
    (b) In accordance with the Boulder Canyon Project Act of 1928 (43 
U.S.C. 617 et seq.), as amended and supplemented (Project Act); the 
Boulder Canyon Project Adjustment Act of 1940 (43 U.S.C. 618 et seq.), 
as amended and supplemented (Adjustment Act); the Department of Energy 
Organization Act (42 U.S.C. 7101 et seq.); and the Hoover Power Plant 
Act of 1984 (98 Stat. 1333 (43 U.S.C. 619 et seq.)) (Hoover Power Plant 
Act); the Western Area Power Administration (Western) promulgates these 
General Regulations for the Charges for the Sale of Power From the 
Boulder Canyon Project (General Regulations) defining the methodology to 
be used in the computation of the charges for the sale of power from the 
Boulder Canyon Project.



Sec. 904.2  Scope.

    These General Regulations are effective June 1, 1987, and shall 
apply as the basis for computation of all charges applicable to any sale 
of power from the Boulder Canyon Project after May 31, 1987. ``General 
Regulations for Power Generation, Operation, Maintenance, and 
Replacement at the Boulder Canyon Project, Arizona/Nevada'' are the 
subject of a separate rulemaking of the Department of the Interior under 
43 CFR part 431. The ``General Regulations for Generation and Sale of 
Power in Accordance with the Boulder Canyon Project Adjustment Act'' 
(1941 General Regulations) dated May 20, 1941, and the ``General 
Regulations for Lease of Power'' dated April 25, 1930, terminate May 31, 
1987.



Sec. 904.3  Definitions.

    The following terms wherever used herein shall have the following 
meanings:
    (a) Billing Period shall mean the service period beginning on the 
first day and extending through the last day of any calendar month.
    (b) Boulder City Area Projects shall mean the Boulder Canyon 
Project, the Parker-Davis Project, and the United States entitlement in 
the Navajo Generating Station (a feature of the Central Arizona 
Project).
    (c) Capacity shall mean the aggregate of contingent capacity 
specified in section 105(a)(1)(A) and the contingent capacity specified 
in section 105(A)(1)(B) of the Hoover Power Plant Act (43 U.S.C. 619).
    (d) Central Arizona Project shall mean those works as described in 
section 1521(a) of the Colorado River Basin Project Act of 1968 (43 
U.S.C. 1501 et seq.), as amended.
    (e) Colorado River Dam Fund or Fund shall mean that special fund 
established by section 2 of the Project Act and which is to be used only 
for the purposes specified in the Project Act, the Adjustment Act, the 
Colorado River Basin Project Act of 1968, and the Hoover Power Plant 
Act.
    (f) Contract shall mean any contract for the sale of Boulder Canyon 
Project capacity and energy for delivery after May 31, 1987, between 
Western and any contractor.
    (g) Contractor shall mean the entities entering into contracts with 
Western for electric service pursuant to the Hoover Power Plant Act.
    (h) Excess Capacity shall mean capacity which is in excess of the 
lesser of: (1) Capacity that Hoover Powerplant is capable of generating 
with all units in service at a net effective head of 498 feet, or (2) 
1,951,000 kW.
    (i) Excess Energy shall mean energy obligated from the Project 
pursuant to section 105(a)(1)(C) of the Hoover Power Plant Act (43 
U.S.C. 619).
    (j) Firm Energy shall mean energy obligated from the Project 
pursuant to section 105(a)(1)(A) and section 105(a)(1)(B) of the Hoover 
Power Plant Act (43 U.S.C. 619).

[[Page 466]]

    (k) Overruns shall mean the use of capacity or energy, without the 
approval of Western, in amounts greater than Western's contract delivery 
obligation in effect for each type of service provided for in the 
Contract.
    (l) Project or Boulder Canyon Project shall mean all works 
authorized by the Project Act, the Hoover Power Plant Act, and any 
future additions authorized by Congress, to be constructed and owned by 
the United States, but exclusive of the main canal and appurtenances 
authorized by the Project Act, now known as the All-American Canal.
    (m) Replacements shall mean such work, materials, equipment, or 
facilities as determined by the United States to be necessary to keep 
the Project in good operating condition, but shall not include (except 
where used in conjunction with the word ``emergency'' or the phrase 
``however necessitated'') work, materials, equipment, or facilities made 
necessary by any act of God, or of the public enemy, or by any major 
catastrophe.
    (n) Uprating Program shall mean the program authorized by section 
101(a) of the Hoover Power Plant Act (43 U.S.C. 619(a)) for increasing 
the capacity of existing generating equipment and appurtenances at the 
Hoover Powerplant, as generally described in the report of the 
Department of the Interior, Bureau of Reclamation, entitled ``Hoover 
Powerplant Uprating, Special Report,'' issued in May 1980, as 
supplemented in the report entitled, ``January 1985 Supplement (revised 
September 1985) to Hoover Powerplant Uprating, Special Report-May 
1980.''



Sec. 904.4  Marketing responsibilities.

    (a) Capacity and energy available from the Project will be marketed 
by Western under terms of the Conformed General Consolidated Power 
Marketing Criteria or Regulations for Boulder City Area Projects 
(Conformed Criteria) published in the Federal Register (49 FR 50582) on 
December 28, 1984. Western shall dispose of capacity and energy from the 
Project in accordance with section 105(a)(1) of the Hoover Power Plant 
Act (43 U.S.C. 619(a)(1)), these General Regulations, and the Contracts 
between the Contractors and Western.
    (b) Procedures for the scheduling and delivery of capacity and 
energy shall be provided for in the Contracts between the Contractors 
and Western.



Sec. 904.5  Revenue requirements.

    (a) Western shall collect all electric service revenues from the 
Project in accordance with applicable statutes and regulations and 
deposit such revenues into the Colorado River Dam Fund. All receipts 
from the Project shall be available for payment of the costs and 
financial obligations associated with the Project. The Secretary of the 
Interior is responsible for the administration of the Colorado River Dam 
Fund.
    (b) The electric service revenue of the Project shall be collected 
through a charge, computed to be sufficient, together with other net 
revenues from the Project, to recover the following costs and financial 
obligations associated with the Project over the appropriate repayment 
periods set out in paragraph (c) of this section:
    (1) Annual costs of operation and maintenance;
    (2) Annual interest on unpaid investments in accordance with 
appropriate statutory authorities;
    (3) Annual repayment of funds, and all reasonable costs incurred in 
obtaining such funds, advanced by non-Federal Contractors to the 
Secretary of the Interior for the Uprating Program;
    (4) The annual payment of $300,000 to each of the States of Arizona 
and Nevada provided for in section 618(c) of the Adjustment Act and 
section 1543(c)(2) of the Colorado River Basin Project Act (43 U.S.C. 
1501 et seq.) (Basin Act), as amended or supplemented;
    (5) Capital costs of investments and Replacements, including amounts 
readvanced from the United States Treasury (Treasury);
    (6) Repayment to the Treasury of the advances to the Colorado River 
Dam Fund for the Project made prior to May 31, 1987, for which payment 
was deferred because of a deficiency in firm energy generation due to a 
shortage of

[[Page 467]]

available water, as provided for in article 14(a) of the 1941 General 
Regulations and section 8 of the Boulder City Act of 1958 (72 Stat. 
1726), as shown on the books of accounts of Reclamation as of May 31, 
1987;
    (7) Repayment to the Treasury of the first $25,000,000 of advances 
made to the Colorado River Dam Fund deemed to be allocated to flood 
control by section 617a(b) of the Project Act as provided by section 
618f of the Adjustment Act; and
    (8) Any other financial obligations of the Project imposed in 
accordance with law.
    (c) The Project repayment period shall extend to the final year 
allowed under applicable cost recovery criteria. The revenue for the 
costs and financial obligations set out in paragraph (b) of this section 
shall be collected over the following repayment periods:
    (1) The repayment period for advances made to the Colorado River Dam 
Fund from funds advanced to the Secretary of the Interior by non-Federal 
entities for the Uprating Program and associated work shall be the 
period commencing with the first day of the month following completion 
of each segment of the Uprating Program, or June 1, 1987, whichever is 
later, and ending September 30, 2017;
    (2) The repayment period for the payments to the Treasury of the 
advances to the Colorado River Dam Fund for the Project which were 
payable prior to May 31, 1987, but which were deferred pursuant to 
article 14(a) of the 1941 General Regulations and section 8 of the 
Boulder City Act of 1958, shall be the power contract period beginning 
June 1, 1987, and ending September 30, 2017. Such repayment period is 
based on a 50-year repayment period beginning June 1, 1937, adjusted for 
the periods the initial payments were deferred;
    (3) The repayment period for the payment to the Treasury of the 
first $25,000,000 of advances made to the Colorado River Dam Fund deemed 
to be allocated to flood control by section 617a(b) of the Project Act 
and deferred by section 618(f) of the Adjustment Act shall be the 50-
year period beginning June 1, 1987;
    (4) The repayment period for advances to the Colorado River Dam Fund 
for the Project made on or after June 1, 1937, and prior to June 1, 
1987, shall be the 50-year period beginning June 1 immediately following 
the year of operation in which the funds were advanced;
    (5) The repayment period for investments, other than for the visitor 
facilities authorized by section 101(a) of the Hoover Power Plant Act 
(43 U.S.C. 619(a)), made from Federal appropriations on or after June 1, 
1987, shall be a 50-year period beginning with the first day of the 
fiscal year following the fiscal year the investment is placed in 
service; and
    (6) The repayment period for the visitor facilities authorized by 
section 101(a) of the Hoover Power Plant Act (43 U.S.C. 619(a)) shall be 
the 50-year period beginning June 1, 1987, or when substantially 
completed, as determined by the Secretary of the Interior, if later.
    (d) Annual costs for operation and maintenance and payments to 
States as set out in paragraph (b) of this section shall be collected as 
long as revenues accrue from the operation of the Project.
    (e) Surplus revenues will also be collected for transfer from the 
Colorado River Dam Fund for contribution to the Lower Colorado River 
Basin Development Fund pursuant to section 1543(c)(2) of the Basin Act 
as amended by the Hoover Power Plant Act to provide revenue for the 
purposes of sections 1543(f) and 1543(g) of the Basin Act.
    (f) All annual costs will be calculated based on a Federal fiscal 
year. To accommodate the transition from the pre-1987 operating year of 
June 1 to May 31 to a fiscal year, there will be a 4-month transition 
period beginning June 1, 1987, and ending September 30, 1987.
    (g) If integrated operation of the Boulder Canyon Project with other 
Boulder City Area Projects and other Federal projects on the Colorado 
River, as provided in Sec. 904.9 of these General Regulations, confers a 
direct power benefit upon such other Boulder City Area Projects and such 
other Federal projects, or if a direct power benefit is conferred by 
other Boulder City Area Projects or other Federal projects on

[[Page 468]]

the Colorado River upon the Boulder Canyon Project, Western shall 
equitably apportion such benefits and appropriate charges among the 
Boulder Canyon Project, other Boulder City Area Projects, and other 
Federal projects on the Colorado River.



Sec. 904.6  Charge for capacity and firm energy.

    The charge for Capacity and Firm Energy from the Project shall be 
composed of two separate charges; a charge to provide for the basic 
revenue requirements, as identified in paragraphs (b), (c), and (d) of 
Sec. 904.5 of these General Regulations (Base Charge), and a charge to 
provide the surplus revenue for the Lower Colorado River Basin 
Development Fund contribution, as identified in paragraph (e) of 
Sec. 904.5 of these General Regulations (Lower Basin Development Fund 
Contribution Charge).



Sec. 904.7  Base charge.

    (a) The Base Charge shall be developed by the Administrator and 
promulgated in accordance with appropriate DOE regulations. The Base 
Charge shall be composed of a capacity component and an energy 
component.
    (b) The capacity component of the Base Charge shall be a dollar per 
kilowattmonth amount determined by (1) multiplying the estimated average 
annual revenue requirement developed pursuant to paragraphs (b), (c), 
and (d) of Sec. 904.5 of these General Regulations by 50 percent, and 
(2) dividing the results of that multiplication by the estimated average 
annual kW rating of the Project, and (3) dividing the quotient by 12. 
The total estimated kW rating will be based on the powerplant output 
capability with all units in service at 498 feet of net effective head 
or 1,951,000 kW, whichever is less. The capacity component of the Base 
Charge shall be applied each billing period to each kW of rated output 
to which each Contractor is entitled by Contract. Adjustments to the 
application of the capacity component shall be made during outages which 
cause significant reductions in capacity as provided by the Contract.
    (c) The energy component of the Base Charge shall be a mills per kWh 
amount determined by (1) multiplying the estimated average annual 
revenue requirements developed pursuant to paragraphs (b), (c), and (d) 
of Sec. 904.5 of these General Regulations by 50 percent and (2) 
dividing the results of that multiplication by the average annual kWh 
estimated to be available from the Project. The energy component of the 
Base Charge shall be applied to each kWh made available to each 
Contractor, as provided for by Contract, except for the energy purchased 
by Western, at the request of a Contractor, to meet that Contractor's 
deficiency in Firm Energy pursuant to section 105(a)(2) of the Hoover 
Power Plant Act (43 U.S.C. 619(a)(2)) and section F of the Conformed 
Criteria, and that Contractor's Uprating Program credit carry forward, 
as provided by Contract.
    (d) Application of the Base Charge to capacity and energy overruns 
will be provided for by Contract. The capacity component and the energy 
component of the Base Charge shall be applied each billing period for 
each Contractor.
    (e) The Base Charge shall be reviewed annually. The Base Charge 
shall be adjusted either upward or downward, when necessary and 
administratively feasible, to assure sufficient revenues to effect 
payment of all costs and financial obligations associated with the 
Project pursuant to paragraphs (b), (c), and (d) of Sec. 904.5 of these 
General Regulations. The Administrator shall provide all Contractors an 
opportunity to comment on any proposed adjustment to the Base Charge 
pursuant to the DOE's power rate adjustment procedures then in effect.



Sec. 904.8  Lower basin development fund contribution charge.

    (a) The Lower Basin Development Fund Contribution Charge will be 
developed by the Administrator of Western on the basis that the 
equivalent of 4\1/2\ mills or 2\1/2\ mills per kWh, as appropriate, 
required to be included in the rates charged to purchasers pursuant to 
section 1543(c)(2) of the Basin Act, as amended by the Hoover Power 
Plant Act, shall be collected from the energy sales of the Project.
    (b) The Lower Basin Development Fund Contribution Charge shall be 
applied to each kWh made available to

[[Page 469]]

each Contractor, as provided for by Contract, except for the energy 
purchased by Western at the request of a Contractor to meet:
    (1) That Contractor's deficiency in Firm Energy, pursuant to section 
105(a)(2) of the Hoover Power Plant Act (43 U.S.C. 619(a)(2)) and 
section F of the Conformed Criteria; and
    (2) That Contractor's Uprating Program credit carry forward as 
provided by Contract. A 4\1/2\ mills per kWh charge shall be applied to 
each kWh made available to an Arizona Contractor, and a 2\1/2\ mills per 
kWh charge shall be applied to each kWh made available to a California 
or Nevada Contractor; provided, that after the repayment period of the 
Central Arizona Project, a 2\1/2\ mills per kWh charge shall be applied 
to each kWh made available to the Arizona, California, and Nevada 
Contractors. The Lower Basin Development Fund Contribution Charge shall 
be applied to energy overruns. The Lower Basin Development Fund 
Contribution Charge shall be applied each billing period for each 
Contractor.



Sec. 904.9  Excess capacity.

    (a) If the Uprating Program results in Excess Capacity, Western 
shall be entitled to such Excess Capacity to integrate the operation of 
the Boulder City Area Projects and other Federal Projects on the 
Colorado River. Specific criteria for the use of Excess Capacity by 
Western will be provided by Contract. All Excess Capacity not required 
by Western for the purposes specified by Contract will be available to 
all Contractors at no additional cost on a pro rata basis based on the 
ratio of each Contractor's Capacity allocation to the total Capacity 
allocation.
    (b) Credits for benefits resulting from project integration shall be 
determined by Western and such benefits shall be apportioned in 
accordance with paragraph (9) of Sec. 904.5 of these General 
Regulations.



Sec. 904.10  Excess energy.

    (a) If excess Energy is determined by the United States to be 
available, it shall be made available to the Contractors, in accordance 
with the priority entitlement of section 105(a)(1)(C) of the Hoover 
Power Plant Act (43 U.S.C. 619(a)(1)(c)). After the annual first- and 
second-priority entitlement to excess energy has been obligated for 
delivery, Western will make available one-third of the third-priority 
excess energy to the Arizona Power Authority, one-third to the Colorado 
River Commission of Nevada, and one-third to the California Contractors.
    (b) Western will make available third-priority excess energy to the 
California Contractors based on the following formula:

F=\1/2\ (A/B+C/D) (E); Where:
A=Contractor's allocated Capacity
B=Total California allocated Capacity
C=Contractor's allocated Firm Energy
D=Total California allocated Firm Energy
E=Third-priority Excess Energy available to California
F=Contractor's third-priority Excess Energy

    (c) The charge for all Excess Energy shall be the charge for Boulder 
Canyon Project Firm Energy existing at the time the Excess Energy is 
made available to the Contractor, including the appropriate Lower Basin 
Development Fund Contribution Charge.



Sec. 904.11  Lay off of energy.

    (a) If any Contractor determines that it is temporarily unable to 
utilize Firm Energy or Excess Energy, Western will, at the Contractor's 
request, attempt to lay off the Firm Energy or Excess Energy the 
Contractor declares to be available for lay off, pursuant to the 
provisions for lay off of energy specified in the Contract.
    (b) If Western is unable to lay off such energy, or if the 
Contractor fails to request Western to attempt to lay off the energy, 
the Contractor will be billed for the Firm Energy or Excess Energy that 
was available to the Contractor but could not be delivered to the 
Contractor or sold to another customer.
    (c) In the event that Western must lay off the Firm Energy or Excess 
Energy at a rate lower than the effective Firm Energy rate, the 
Contractor will be billed for the difference between the

[[Page 470]]

amount that Western would have received at the then existing Firm Energy 
rate, including the appropriate Lower Basin Development Fund 
Contribution Charge, and the amount actually received.



Sec. 904.12  Payments to contractors.

    (a) Funds advanced to the Secretary of the Interior for the Uprating 
Program and costs reasonably incurred by the Contractor in advancing 
such funds, as approved by Western, shall be returned to the Contractor 
advancing the funds during the Contract period through credits on that 
Contractor's power bills. Appropriate credits will be developed and 
applied pursuant to terms and conditions agreed to by contract or 
agreement.
    (b) All other obligations of the United States to return funds to a 
Contractor shall be repaid to such Contractor through credits on power 
bills, with or without interest, pursuant to terms and conditions agreed 
to by contract or agreement.



Sec. 904.13  Disputes.

    (a) All actions by the Secretary of Energy, acting by and through 
the Administrator of Western, shall be binding unless or until reversed 
or modified in accordance with provisions contained herein.
    (b) Any disputes or disagreements as to interpretation or 
performance of the provisions of these General Regulations under the 
responsibility of Western shall first be presented to and decided by the 
Administrator. The Administrator shall be deemed to have denied the 
Contractor's contention or claim if it is not acted upon within ninety 
(90) days of its having been presented.
    (c) The decision of the Administrator shall be final unless, within 
thirty (30) days from the date of such decision, a written request for 
arbitration is received by the Administrator. The Administrator shall 
have ninety (90) days from the date of receipt of a request for 
arbitration either to concur in or deny in writing the request for such 
arbitration. Failure by the Administrator to take any action within the 
ninety (90) day period shall be deemed a denial of the request for 
arbitration. In the event of a denial of a request for arbitration, the 
decision of the Administrator shall become final. Upon adecision 
becoming final, the disputing Contractor's remedy lies with the 
appropriate Federal court. Any claim that a final decision of the 
Administrator violates any right accorded the Contractor under the 
Project Act, the Adjustment Act, or Title I of the Hoover Power Plant 
Act is barred unless suit asserting such claim is filed in a Federal 
court of competent jurisdiction within one (1) year after final refusal 
by the Administrator to correct the action complained of, in accordance 
with section 105(h) of the Hoover Power Plant Act.
    (d) When a timely request for arbitration is received by the 
Administrator and the Administrator concurs in writing, the disputing 
Contractor and the Administrator shall, within thirty (30) days after 
receipt of notice of such concurrence, each name one arbitrator to the 
panel of arbitrators which will decide the dispute. All arbitrators 
shall be skilled and experienced in the field pertaining to the dispute. 
In the event there is more than one disputing Contractor, the disputing 
Contractors shall collectively name one arbitrator to the panel of 
arbitrators. In the event of their failure collectively to name such an 
arbitrator within fifteen (15) days after their first meeting, that 
arbitrator shall be named as provided in the Commercial Arbitration 
Rules of the American Arbitration Association. The two arbitrators thus 
selected shall name a third arbitrator within thirty (30) days of their 
first meeting. In the event of their failure to so name such third 
arbitrator, that arbitrator shall be named as provided in the Commercial 
Arbitration Rules of the American Arbitration Association. The third 
arbitrator shall act as chairperson of the panel. The arbitration shall 
be governed by the Commercial Arbitration Rules of the American 
Arbitration Association. The arbitration shall be limited to the issue 
submitted. The panel of arbitrators shall not rewrite, change, or amend 
these General Regulations or the Contracts of any of the parties to the 
dispute. The panel of arbitrators shall render a final decision in this 
dispute within sixty (60) days

[[Page 471]]

after the date of the naming of the third arbitrator. A decision of any 
two of the three arbitrators named to the panel shall be final and 
binding on all parties involved in the dispute.



Sec. 904.14  Future regulations.

    (a) Western may from time to time promulgate such additional or 
amendatory regulations as deemed necessary for the administration of the 
Project in accordance with applicable law; Provided, That no right under 
any Contract shall be impaired or obligation thereunder be extended 
thereby.
    (b) Any modification, extension, or waiver of any provision of these 
General Regulations granted for the benefit of any one or more 
Contractors shall not be denied to any other Contractor.
    (c) Western reserves the right to terminate, modify, or extend these 
regulations, either partially or in their entirety, to the extent 
permitted by law or existing contract.



PART 905--ENERGY PLANNING AND MANAGEMENT PROGRAM--Table of Contents




                      Subpart A--General Provisions

Sec.
905.1  Purpose.
905.2  Definitions.

                 Subpart B--Integrated Resource Planning

905.10  Applicability.
905.11  Integrated resource plan contents.
905.12  Submittal procedures.
905.13  Approval criteria.
905.14  Small customer plan.
905.15  Processing of IRPs and small customer plans.
905.16  Annual IRP progress reports.
905.17  Noncompliance.
905.18  Administrative appeal process.
905.19  Periodic review by Western.
905.20  Freedom of Information Act.
905.21  Program review.

                  Subpart C--Power Marketing Initiative

905.30  Purpose and applicability.
905.31  Term.
905.32  Resource extensions and resource pool size.
905.33  Extension formula.
905.34  Adjustment provisions.
905.35  New customer eligibility.
905.36  Marketing criteria.
905.37  Process.

                       Subpart D--Energy Services

905.40  Technical assistance.

    Authority: 42 U.S.C. Secs. 7152 and 7191; 32 Stat. 388, as amended; 
and 42 U.S.C. Secs. 7275-7276c.

    Source: 60 FR 54174, Oct. 20, 1995, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 905.1  Purpose.

    The purposes of the Energy Planning and Management Program (Program) 
are to implement section 114 of the Energy Policy Act of 1992 (EPAct) 
and to extend the Western Area Power Administration's (Western) long-
term firm power resource commitments in support of customer integrated 
resource planning.



Sec. 905.2  Definitions.

    Administrator means the Administrator of Western.
    Applicable integrated resource plan or applicable IRP, when used 
with reference to a customer, means the integrated resource plan (IRP) 
approved by Western under these regulations for that customer.
    Customer means any entity that purchases firm capacity, with or 
without energy, from Western under a long-term firm power contract. The 
term includes a member-based association (MBA) and its distribution or 
user members that receive direct benefit from Western's power.
    Integrated resource planning means a planning process for new energy 
resources that evaluates the full range of alternatives, including new 
generating capacity, power purchases, energy conservation and 
efficiency, cogeneration and district heating and cooling applications, 
and renewable energy resources, in order to provide adequate and 
reliable service to a customer's electric consumers at the customer's or 
member's lowest system cost. The process shall take into account 
necessary features for system operation, such as diversity, reliability, 
dispatchability, and other factors of risk; shall take into account the 
ability to verify energy savings achieved

[[Page 472]]

through energy efficiency and the projected durability of such savings 
measured over time; and shall treat demand and supply resources on a 
consistent and integrated basis.
    Least-cost option means an option for providing reliable electric 
services to electric consumers which will, to the extent practicable, 
minimize life-cycle system costs, including adverse environmental 
effects, of providing such service. To the extent practicable, energy 
efficiency and renewable resources may be given priority in any least-
cost option.
    Long-term firm power contract means any contract with Western for 
the sale of firm capacity, with or without energy, which is to be 
delivered over a period of more than 1 year. This term includes 
contracts for the long-term sale of power from the Boulder Canyon 
Project.
    Member-Based Association or MBA means:
    (1) An entity composed of utilities or user members; or
    (2) An entity which acts as an agent for, or subcontracts with, but 
does not assume power supply responsibility for its principals or 
subcontractors, who are its members.
    Small customer means a customer with total annual sales or usage of 
25 GWh or less, as averaged over the previous 5 years, which is not a 
member of a joint action agency or a generation and transmission (G&T) 
cooperative with power supply responsibility, and that Western finds has 
limited economic, managerial, and resource capability to conduct 
integrated resource planning.
    Western means the Western Area Power Administration.



                 Subpart B--Integrated Resource Planning



Sec. 905.10  Applicability.

    (a) Each customer of Western must address its power resource needs 
in an IRP prepared and submitted to Western as provided herein, except 
for:
    (1) Those meeting the criteria for a small customer as detailed in 
Sec. 905.14 this part; and
    (2) State-regulated, investor-owned utilities.
    (b) Nothing in these regulations shall require a customer to take 
any action inconsistent with a requirement imposed by the Rural 
Utilities Service or a state utility commission which receives IRP 
filings from that customer.



Sec. 905.11  Integrated resource plan contents.

    (a) An integrated resource plan should support customer-developed 
goals and schedules. The plan should evaluate the full range of 
practicable alternatives for energy resources, and include:
    (1) An assessment of resources on an equitable basis, where supply-
side, demand-side, and renewable resources are compared on a fair and 
accurate basis to determine an appropriate low-cost resource portfolio, 
and
    (2) An integration of all options in a comprehensive manner.
    (b) IRPs must consider electrical energy resource needs and may 
consider, at the customer's option, water, natural gas, and other energy 
resources. Each IRP submitted to Western must satisfy the following 
requirements of section 114 of EPAct:
    (1) Identification and Comparison of All Practicable Energy 
Efficiency and Energy Supply Resource Options. This is an assessment and 
comparison of existing and future supply- and demand-side resource 
options available to a customer based upon its size, type, resource 
needs, geographic area, and competitive situation. Identification of 
resource options evaluated by the specific customer, or members in the 
case of IRP cooperatives or MBAs, must be provided. The options 
evaluated should relate to the resource situation unique to each Western 
customer as determined by profile data (such as service area, 
geographical characteristics, customer mix, historical loads, projected 
growth, existing system data, rates, and financial information) and load 
forecasts.
    (i) Supply-side options include, but are not limited to, purchased 
power contracts, conventional or renewable generation options.
    (ii) Demand-side options alter the customer's use pattern in a 
manner that provides for an improved combination of energy services at 
least cost to

[[Page 473]]

the customer and the ultimate consumer.
    (iii) Considerations that may be used to develop the potential 
options include cost, market potential, consumer preferences, 
environmental impacts, demand or energy impacts, implementation issues, 
revenue impacts, and commercial availability.
    (iv) The IRP discussion comparing resource options must include:
    (A) The method or rationale used to select the options to be 
compared,
    (B) The options evaluated,
    (C) The assumptions and costs related to the options, and
    (D) The evaluation methods, including any quantitative and 
qualitative methods used to compare the resource options.
    (2) An IRP must include an action plan covering a minimum period of 
5 years describing specific actions the customer will take to implement 
its IRP. This plan must outline both short-term (2 years) and long-term 
(5 years) actions proposed for implementation during the period covered 
by the plan. The action plan must summarize the load profile data and 
address the results of the resource evaluation. Where a customer is 
implementing integrated resource planning in response to State, Federal, 
and other initiatives, Western will accept action plans of other than 2 
and 5 years if they substantially comply with EPAct. For those customers 
not experiencing or anticipating load growth, the action plan 
requirement for the IRP may be satisfied by a discussion of current 
actions and procedures in place to reevaluate periodically the possible 
future need for new resources. The action plan must include the 
following four items:
    (i) Actions the customer expects to take in accomplishing the goals 
identified in the IRP;
    (ii) Milestones to be used to evaluate accomplishment of those 
actions during implementation;
    (iii) Quantified estimated energy and capacity benefits for each 
action planned; and
    (iv) Estimated or proposed costs for implementing each action.
    (3) An IRP must designate least-cost options to be utilized by the 
customer. This requires a comparative evaluation of supply- and demand-
side resources using a consistent economic evaluation method. This 
evaluation should identify the most cost-effective energy services to 
the consumer, taking into account reliability, economics, price, adverse 
environmental effects, risk, and all other factors influencing the 
quality of energy services. The analysis should consider impacts on 
suppliers, distribution entities, and end-use consumers, as applicable. 
The resource selection process and criteria must be explicit and 
identify the rationale for selection. An IRP may strike a reasonable 
balance among the applicable evaluation factors, as opposed to a plan 
which seeks to optimize any single criterion. Exceptions to least-cost-
based decisions may be made if the customer explains the basis for the 
decision and can show in the IRP that decisions were based on a 
reasonable analysis of resource options and environmental effects, were 
based on response to public input, or were required by Federal or State 
mandates.
    (4) To the extent practicable, the customer shall minimize adverse 
environmental effects of new resource acquisitions and document these 
efforts in the IRP. Customers are neither precluded from nor required to 
include a quantitative analysis of environmental externalities as a part 
of their integrated resource planning process. Customers are required to 
include a qualitative analysis of environmental effects.
    (5) In the preparation and development of an IRP (or any revision or 
amendment of an IRP), ample opportunity for full public participation 
shall be provided. The IRP shall describe how the customer: gathered 
information from the public, identified public concerns, shared 
information with the public, and responded to public comments.
    (i) Member-based associations and their members must demonstrate 
public participation in the preparation and development, revision, or 
amendment of the IRP. No specific number of meetings is required.
    (ii) As part of the public participation process, the governing body 
of an MBA and each MBA member (such as a

[[Page 474]]

board of directors or city council) must approve the IRP, confirming 
that all requirements have been met. MBA and member approvals must be 
indicated by signature of a responsible official in the IRP submitted to 
Western or by documentation of passage of an approval resolution by the 
appropriate governing body included or referred to in the IRP submitted 
to Western.
    (iii) For Western customers that do not purchase for resale, such as 
Federal and State government agencies, the public participation 
requirement is satisfied if there is review and concurrence by a top 
management official with resource acquisition responsibility, and the 
concurrence is noted in the IRP submitted to Western.
    (6) An IRP must include load forecasting. Load forecasting should 
include data which reflects the size, type, resource conditions, and 
demographic nature of the customer using an accepted load forecasting 
methodology, including but not limited to the time series, end-use, and 
econometric methods.
    (7) Customers must provide methods of validating predicted 
performance in order to determine whether objectives in the IRP are 
being met. These validation methods must include identification of the 
baseline from which a customer will measure the benefits of its IRP 
implementation. Baseline data that is unavailable should be identified. 
A reasonable balance must be struck between the cost of data collection 
and the benefits resulting from obtaining exact information.



Sec. 905.12  Submittal procedures.

    (a) An IRP submitted to Western for approval must have sufficient 
detail for Western to confirm it meets the requirements of these 
regulations. Only one IRP is required per customer, regardless of the 
number of long-term firm power contracts between the customer and 
Western.
    (b) Customers may submit IRPs to Western under one of the following 
options:
    (1) Customers may submit IRPs individually.
    (2) MBAs may submit individual IRPs for each of their members or 
submit one IRP on behalf of all or some of their members, that specifies 
the responsibilities and participation levels of individual members and 
the MBA. Such IRP or IRPs shall constitute the MBA's IRP where the MBA 
subcontracts or acts as an agent but does not assume power supply 
responsibility. Any member of an MBA may submit an individual IRP to 
Western in lieu of inclusion in an MBA IRP.
    (3) Integrated resource planning cooperatives approved by Western 
pursuant to paragraph (d) of this section must submit an IRP for its 
members.
    (4) Customers that Western determines to be small customers pursuant 
to section 905.14 may submit a small customer plan in lieu of an IRP.
    (c) Schedules.
    (1) Except as provided in paragraph (c)(2) of this section, 
customers must submit their initial IRP to the appropriate Area Manager 
no later than 1 year after the effective date of this rule, or after 
becoming a customer, whichever is later. Approved IRP cooperatives shall 
be allowed 18 months from Western's approval of the IRP cooperative 
request to submit an initial IRP.
    (2) Every customer must provide written notification to Western if 
it intends to seek approval for IRP cooperative or small customer 
status. This notification must be provided by the customer to the 
Western Area Manager of the Area in which the customer is located by 
December 19, 1995, or within 30 days from the time it becomes a 
customer, whichever is later.
    (3) If an IRP submittal is found to be insufficient after Western 
review, a notice of deficiencies will be provided to the entity that 
submitted the IRP. Western, working together with the customer, will 
determine the time allowable for resubmitting the IRP. However, the time 
allowed for resubmittal will not be greater than 9 months after the date 
of the disapproval, unless otherwise provided by contract language in 
effect as of the effective date of these regulations.
    (4) Updated IRPs must be submitted to the appropriate Area Manager 
every 5 years after Western's approval of the initial IRP.
    (5) Amendments and revisions to IRPs may be submitted at any time.

[[Page 475]]

    (d) Western shall respond to IRP cooperative status requests within 
30 days of receipt. If a request for IRP cooperative status is 
disapproved, the requesting customers must submit their initial IRPs no 
later than 1 year after the date of the letter of disapproval. Any 
subsequent requests by customers for IRP cooperative status will be 
responded to by Western within 30 days of receipt of the request. 
Western's approval of IRP cooperative status will not be based on any 
potential member's contractual status with Western.



Sec. 905.13  Approval criteria.

    (a) IRP or small customer plan approval will be based upon:
    (1) Whether the IRP or small customer plan satisfactorily addresses 
the criteria in these regulations; and
    (2) The reasonableness of the IRP or small customer plan given the 
size, type, resource needs, geographic area, and competitive situation 
of the customer.
    (b) Western will review resource choices in accordance with section 
114 of EPAct and these regulations. Western will disapprove IRPs if 
resource choices do not meet the reasonableness test set forth in (a)(2) 
of this section and the provisions of section 114 of EPAct.
    (c) Where a customer or group of customers implements integrated 
resource planning under a program responding to other Federal, State, or 
other initiatives, Western shall accept and approve such a plan as long 
as the IRP substantially complies with the requirements of these 
regulations.
    (d) In evaluating an IRP or small customer plan, Western shall 
consider water planning, efficiency improvements, and conservation in 
the same manner it considers energy planning and efficiencies. Customers 
that provide water utility services and customers that service 
irrigation load as part of their overall load may include water 
conservation activities in the IRP. To the extent practical, customers 
should convert their water savings to energy values.



Sec. 905.14  Small customer plan.

    (a) Small customers may submit a request to prepare a small customer 
plan in lieu of an IRP. Requests for small customer status must include 
data on total annual energy sales and usage for the 5 years prior to the 
request. This data will be averaged to determine overall annual energy 
sales and usage so that uncontrollable events, such as extreme weather, 
do not distort levelized energy sales and usage. Documentation of 
limited economic, managerial and resource capability must also be 
included in a request.
    (b) Western shall respond to small customer status requests within 
30 days of receipt of the request. If a request for small customer 
status is disapproved, the requesting customer must submit its initial 
IRP no later than 1 year after the date of the letter of disapproval. 
Any subsequent requests by customers for small customer status will be 
responded to by Western within 30 days of receipt of the request.
    (c) Small Customer Plan Contents.
    Small customer plans shall:
    (1) Consider all reasonable opportunities to meet future energy 
service requirements using demand-side management techniques, new 
renewable resources, and other programs that will provide retail 
consumers with electricity at the lowest possible cost;
    (2) Minimize, to the extent practicable, adverse environmental 
effects; and
    (3) Present in summary form the following information:
    (i) Customer name, address, phone number, and contact person;
    (ii) Type of customer;
    (iii) Current energy and demand profiles and data on total annual 
energy sales and usage for the previous 5 years;
    (iv) Future energy services projections;
    (v) The manner in which paragraphs (c) (1) and (2) of this section 
were considered; and
    (vi) Actions to be implemented over the next 5 years.
    (d) The first small customer plan must be submitted to the 
appropriate Western Area Manager within 1 year after Western's approval 
of the request for small customer status. Small customers must submit in 
writing a small customer plan every 5 years.

[[Page 476]]

    (e) Maintenance of Small Customer Status.
    (1) Every year on the anniversary of submittal of the plan, small 
customers must submit a letter to Western verifying that their annual 
energy sales or usage is 25 GWh or less averaged over the previous 5 
years, and identifying their achievements against their targeted action 
plans. The letter will be used for overall program evaluation and 
comparison with the customer's plan, and for verification of continued 
small customer status.
    (2) A customer ceases to be a small customer if it:
    (i) Exceeds total annual energy sales or usage of 25 GWh, as 
averaged over the previous 5 years,
    (ii) Becomes a member of a joint action agency or G&T cooperative 
with power supply responsibility, or
    (iii) No longer has a limited economic, managerial, and resource 
capability. Western will work with a customer who loses small customer 
status to develop an appropriate schedule, no longer than 1 year, for 
submittal of an IRP.
    (3) Membership in or contracting with an MBA that does not have 
power supply responsibility shall not affect a customer's status as a 
small customer. A small customer plan or annual letter may be submitted 
by or through an MBA that does not have power supply responsibility.



Sec. 905.15  Processing of IRPs and small customer plans.

    Western shall review all IRP and small customer plan submittals and 
notify the submitting entity of the plan's acceptability within 120 days 
after receipt.



Sec. 905.16  Annual IRP progress reports.

    IRP progress reports must be submitted each year within 30 days of 
the anniversary date of the approval of the currently applicable IRP in 
such form and containing such information as to describe the customer's 
accomplishments achieved pursuant to the action plan, including 
projected goals, implementation schedules, and resource expenditures, 
and energy and capacity benefits and renewable energy developments 
achieved as compared to those anticipated. Measured values are 
preferred, but reasonable estimates are acceptable if measurement is 
infeasible or not cost-effective. In lieu of a separate progress report, 
all information from the progress report may be combined with any other 
report that the customer submits to Western, at the customer's 
discretion, if that report is submitted within 30 days of the approval 
anniversary date of the currently applicable IRP.



Sec. 905.17  Noncompliance.

    (a) The penalty set forth in this section shall be imposed for 
failure to submit or resubmit an IRP or small customer plan in 
accordance with these regulations. The penalty also will be imposed when 
Western finds that the customer's activities are not consistent with the 
applicable IRP or small customer plan unless Western finds that a good 
faith effort has been made to comply with the approved IRP or small 
customer plan.
    (b) If it appears that a customer's activities may be inconsistent 
with the applicable IRP or small customer plan, Western will so notify 
the customer and offer the customer 30 days in which to provide evidence 
of its good faith effort to comply. If the customer does not correct the 
specified deficiency or submit such evidence, or if Western finds, after 
receipt of information from the customer, that a good faith effort has 
not been made, a penalty shall be imposed.
    (c) Western shall provide written notice of the imposition of a 
penalty to the customer, and to the MBA or IRP cooperative where 
applicable. The notice must specify the reasons for imposition of the 
penalty.
    (d) Imposition of Penalty.
    (1) Beginning with the first full billing period following the 
notice specified in paragraph (c) of this section a surcharge of 10 
percent of the monthly power charges will be imposed until the 
deficiency specified in the notice is cured, or until 12 months pass, 
provided that no such penalty shall be immediately imposed if the 
customer or its MBA or IRP cooperative has requested reconsideration by 
filing a written appeal with the appropriate Area Manager, pursuant to 
905.18.

[[Page 477]]

    (2) The surcharge imposed shall increase to 20 percent for the 
second 12 months and to 30 percent per year thereafter until the 
deficiency is cured.
    (3) After the first 12 months of imposition of the surcharge and in 
lieu of imposition of any further surcharge, Western may impose a 
penalty which would reduce the resource delivered under a customer's 
long-term firm power contract(s) by 10 percent. The resource reduction 
may be imposed either
    (i) When it appears to Western to be more effective to assure 
customer compliance, or
    (ii) When such reduction may be more cost-effective for Western.
    (4) The penalty provisions in existing contracts will continue to be 
in effect and shall be administered and enforced in accordance with such 
contract provisions.
    (e) The surcharge will be assessed on the total charges for all 
power obtained by a customer from Western and will not be limited to 
firm power charges. When a customer resolves the deficiencies, the 
imposed surcharge or power withdrawal will cease, beginning with the 
first full billing period after compliance is achieved.
    (f) In situations involving an IRP submitted by a member-based 
association on behalf of its members where a single member does not 
comply, a penalty or withdrawal shall be imposed upon the MBA on a pro 
rata basis in proportion to that member's share of the total MBA's power 
received from Western. In situations involving noncompliance by a member 
of an IRP cooperative, any applicable penalty shall be imposed directly 
upon that member if it has a firm power contract with Western. If the 
IRP cooperative member does not have a firm power contract with Western 
then a penalty or withdrawal shall be imposed upon the member's MBA or 
parent-type entity on a pro rata basis in proportion to that member's 
share of the total MBA's power received from Western.



Sec. 905.18  Administrative appeal process.

    (a) If a customer disagrees with Western's determination of the 
acceptability of its IRP submittal, its compliance with an approved IRP, 
or any other compliance issue, the customer may request reconsideration 
by filing a written appeal with the appropriate Area Manager. Appeals 
may be submitted any time such disagreements occur and should be 
specific as to the nature of the issue, the reasons for the 
disagreement, and any other pertinent facts which the customer believes 
should be brought to Western's attention. The Area Manager will respond 
within 45 days of receipt of the appeal. If resolution is not achieved 
at the Area Office level, a further appeal may then be made to the 
Administrator who will respond within 30 days of receipt.
    (b) Upon request, Western will agree to use mutually agreeable 
alternative dispute resolution procedures, to the extent allowed by law, 
to resolve issues or disputes relating to compliance with IRP 
requirements.
    (c) Western shall not impose a penalty while an appeal process is 
pending. However, if the appeal is unsuccessful for the customer, 
Western shall impose the penalty retroactively from the date the penalty 
would have been assessed if an appeal had not been filed.
    (d) A written appeal or use of alternative dispute resolution 
procedures does not suspend other reporting and compliance requirements 
under these regulations.



Sec. 905.19  Periodic review by Western.

    (a) Western will periodically review customer actions to determine 
whether they are consistent with the approved IRP. Small customer plans 
are not subject to this periodic review.
    (b) Beginning 3 years after the effective date of these regulations, 
Western shall periodically review selected, representative IRPs and the 
customer's implementation of the applicable IRP. These reviews are in 
addition to, and separate and apart from, the review of initial IRP 
submittals and updated IRPs made under Secs. 905.11 and 905.13 of these 
regulations.
    (c) Western will review a representative sample of IRPs from each of 
its marketing areas. The representative samples will consist of IRPs 
that reflect the diverse characteristics and circumstances of the 
customers that purchase power from Western. At a

[[Page 478]]

minimum, Western will review a sample of IRPs from the following:
    (1) IRPs indicating a need to acquire resources in the IRP study 
period;
    (2) IRPs prepared by individual customers, IRP cooperatives, and 
member-based associations; and
    (3) IRPs that do not show plans to implement DSM programs in the IRP 
study period.
    (d) Periodic reviews may consist of any combination of review of the 
customer's annual IRP progress reports, telephone interviews, or on-site 
visits. Western will document these periodic reviews and shall report on 
the results of the reviews in Western's annual report.



Sec. 905.20  Freedom of Information Act.

    IRPs and associated data submitted to Western will be made available 
to the public unless Western has determined, pursuant to 10 CFR Part 
1004, that particular information is exempt from public access under the 
Freedom of Information Act (FOIA). Customers may request confidential 
treatment of all or part of a submitted document under FOIA's exemption 
for confidential business information. Materials so designated and which 
Western determines to meet the exemption criteria in the FOIA will be 
treated as confidential and will not be disclosed to the public.



Sec. 905.21  Program review.

    Before January 1, 2000, and at appropriate intervals thereafter, 
Western shall initiate a public process to review these IRP regulations 
in order to determine whether the criteria for approval of IRPs should 
be revised to reflect changes in technology, needs, or other 
developments.



                  Subpart C--Power Marketing Initiative



Sec. 905.30  Purpose and applicability.

    (a) The Power Marketing Initiative (PMI) provides a framework for 
marketing Western's long-term firm hydroelectric resources. For covered 
projects, Western will make a major portion of the resources currently 
under contract available to existing long-term firm power customers for 
a period of time beyond the expiration date of their current contracts.
    (b) The Western projects covered by this subpart are the Pick-Sloan 
Missouri Basin Program--Eastern Division and the Loveland Area Projects 
(LAP). The PMI applies to covered projects to the extent it is 
consistent with other contractual and legal rights, and subject to any 
applicable project-specific environmental requirements.



Sec. 905.31  Term.

    Western will extend resource commitments for 20 years from the date 
existing contracts expire to existing customers with long-term firm 
power contracts from projects identified in section 905.30(b).



Sec. 905.32  Resource extensions and resource pool size.

    (a) Western will extend a project-specific percentage of the 
marketable resource, determined to be available at the time future 
resource extensions begin, to existing customers with long-term firm 
power contracts. The remaining unextended power will be used to 
establish project-specific resource pools. An initial level of 96 
percent of the marketable resource will be extended for the Pick-Sloan 
Missouri Basin Program--Eastern Division and the Loveland Area Projects.
    (b) At two 5-year intervals after the effective date of the 
extension to existing customers, Western shall create a project-specific 
resource pool increment of up to an additional 1 percent of the long-
term marketable resource under contract at the time. The size of the 
additional resource pool increment shall be determined by Western based 
on consideration of the actual fair-share needs of eligible new 
customers and other appropriate purposes.
    (c) The initial pool percentages shall be applied to the marketable 
resource determined to be available at the time future resource 
extensions begin. Subsequent percentages shall be applied to the 
resource under contract at the time.
    (d) The additional resource pool increments shall be established by 
pro rata withdrawals, on 2 years' notice,

[[Page 479]]

from then-existing customers. Withdrawals could be mitigated or delayed 
if good water conditions exist.
    (e) Once the extensions for existing customers and allocations to 
new customers from the resource pool have been made, additional power 
resources may become available for various reasons. Any additional 
available resources will be used as follows:
    (1) If power is reserved for new customers but not allocated, or 
resources are offered but not placed under contract, this power will be 
offered on a pro rata basis to customers that contributed to the 
resource pool through application of the extension formula in 
Sec. 905.33.
    (2) If power resources become available as a result of the 
enhancement of existing generation, project-use load efficiency 
upgrades, the development of new resources, or resources turned back to 
Western, Western may elect to use this power to reduce the need to 
acquire firming resources, retain the power for operational flexibility, 
sell these resources on a short-term basis, or allocate the power.
    (3) If resources become available due to imposition of penalties 
pursuant to Sec. 905.17, Western may make such resources available 
within the marketing area to existing customers that are in compliance 
with subpart B, subject to withdrawal.



Sec. 905.33  Extension formula.

    (a) The amount of power to be extended to an existing customer shall 
be determined according to this formula:
    Customer Contract Rate of Delivery (CROD) today/total project CROD 
under contract today x project-specific percentage x marketable resource 
determined to be available at the time future resource extensions begin 
= CROD extended.
    (b) Where contract rates of delivery vary by season, the formula 
shall be used on a seasonal basis to determine the extended power 
resource. A similar pro rata approach shall be used for energy 
extensions.
    (c) Determination of the amount of resource available after existing 
contracts expire, if significantly different from existing resource 
commitments, shall take place only after an appropriate public process.
    (d) The formula set forth in paragraph (a) of this section also 
should be used to determine the amounts of firm power subject to 
withdrawal at 5-year intervals after the effective date of the extension 
to existing customers, except that the percentage used would be up to 1 
percent for each of the two withdrawal opportunities, and the formula 
would use the customer CROD, project CROD and the resource under 
contract at the time.



Sec. 905.34  Adjustment provisions.

    Western reserves the right to adjust marketable resources committed 
to all customers with long-term firm power contracts only as required to 
respond to changes in hydrology and river operations, except as 
otherwise expressly provided in these regulations. Under contracts that 
extend resources under this PMI, existing customers shall be given at 
least 5 years' notice before adjustments are made. New customers may 
receive less notice. The earliest that any notice under this section 
shall become effective is the date that existing contractual commitments 
expire. Any adjustment shall only take place after an appropriate public 
process. Withdrawals to serve project use and other purposes provided 
for by contract shall continue to take place based on existing contract/
marketing criteria principles.



Sec. 905.35  New customer eligibility.

    (a) Allocations to new customers from the project-specific resource 
pools established under Sec. 905.32 shall be determined through separate 
public processes in each project's marketing area. New customers 
receiving an allocation must execute a long-term firm power contract to 
receive the allocated power and are required to comply with the IRP 
requirements in this part. Contracts with new customers shall expire on 
the same date as firm power contracts with all other customers of a 
project.
    (b) To be eligible for an allocation, a potential new customer must 
be a preference entity, as defined in Reclamation law, within the 
currently established marketing area for a project.

[[Page 480]]

    (c) Entities that desire to purchase power from Western for resale 
to consumers, including municipalities, cooperatives, public utility 
districts and public power districts, must have utility status. Native 
American tribes are not subject to this requirement. Utility status 
means that the entity has responsibility to meet load growth, has a 
distribution system, and is ready, willing, and able to purchase power 
from Western on a wholesale basis for resale to retail consumers. To be 
eligible to apply for power available from a project's initial resource 
pool, those entities that desire to purchase Western power for resale to 
consumers must have attained utility status by December 31, 1996, for 
the Pick-Sloan Missouri Basin Program--Eastern Division, and by 
September 30, 2000, for the Loveland Area Projects. To be eligible to 
apply for power from subsequent resource pool increments, these entities 
must have attained utility status no later than 3 years prior to 
availability of the incremental addition to the resource pool. Deadlines 
for attaining utility status for other projects will be established at a 
later date.



Sec. 905.36  Marketing criteria.

    Western shall retain applicable provisions of existing marketing 
criteria for projects where resource commitments are extended beyond the 
current expiration date of long-term firm power sales contracts. Western 
must retain important marketing plan provisions such as classes of 
service, marketing area, and points of delivery, to the extent that 
these provisions are consistent with the PMI. The PMI, eligibility and 
allocation criteria for potential new customers, retained or amended 
provisions of existing marketing criteria, the project-specific resource 
definition, and the size of a project-specific resource pool shall 
constitute the future marketing plan for each project.



Sec. 905.37  Process.

    Modified contractual language shall be required to place resource 
extensions under contract. Resource extensions and allocations to new 
customers from the initial resource pool will take effect when existing 
contracts expire. These dates are December 31, 2000, for the Pick-Sloan 
Missouri Basin Program--Eastern Division and September 30, 2004, for the 
Loveland Area Projects. For the Pick-Sloan Missouri Basin Program--
Eastern Division, Western will offer contracts to existing customers for 
resource extensions no sooner than the effective date of the final 
regulations. For the Loveland Area Projects, existing contracts provide 
for potential adjustments to marketable resources in 1999. No contracts 
will be offered to existing customers for post-2004 Loveland Area 
Projects resources until the analysis of potential resource adjustments 
in 1999 has been completed and any adjustments are implemented. Existing 
power sales contracts require that this analysis be completed by 1996.



                       Subpart D--Energy Services



Sec. 905.40  Technical assistance.

    Western shall establish a program that provides technical assistance 
to customers to conduct integrated resource planning, implement 
applicable IRPs and small customer plans, and otherwise comply with the 
requirements of these regulations.



PART 960--GENERAL GUIDELINES FOR THE RECOMMENDATION OF SITES FOR NUCLEAR WASTE REPOSITORIES--Table of Contents




                      Subpart A--General Provisions

Sec.
960.1  Applicability.
960.2  Definitions.

                  Subpart B--Implementation Guidelines

960.3  Implementation guidelines.
960.3-1  Siting provisions.
960.3-1-1  Diversity of geohydrologic settings.
960.3-1-2  Diversity of rock types.
960.3-1-3  Regionality.
960.3-1-4  Evidence for siting decisions.
960.3-1-4-1  Site identification as potentially acceptable.
960.3-1-4-2  Site nomination for characterization.
960.3-1-4-3  Site recommendation for characterization.
960.3-1-4-4  Site recommendation for repository development.
960.3-1-5  Basis for site evaluations.
960.3-2  Siting process.

[[Page 481]]

960.3-2-1  Site screening for potentially acceptable sites.
960.3-2-2  Nomination of sites as suitable for characterization.
960.3-2-2-1  Evaluation of all potentially acceptable sites.
960.3-2-2-2  Selection of sites within geohydrologic settings.
960.3-2-2-3  Comparative evaluation of all sites proposed for 
          nomination.
960.3-2-2-4  The environmental assessment.
960.3-2-2-5  Formal site nomination.
960.3-2-3  Recommendation of sites for characterization.
960.3-2-4  Recommendation of sites for the development of repositories.
960.3-3  Consultation.
960.3-4  Environmental impacts.

                    Subpart C--Postclosure Guidelines

960.4  Postclosure guidelines.
960.4-1  System guideline.
960.4-2  Technical guidelines.
960.4-2-1  Geohydrology.
960.4-2-2  Geochemistry.
960.4-2-3  Rock characteristics.
960.4-2-4  Climatic changes.
960.4-2-5  Erosion.
960.4-2-6  Dissolution.
960.4-2-7  Tectonics.
960.4-2-8  Human interference.
960.4-2-8-1  Natural resources.
960.4-2-8-2  Site ownership and control.

                    Subpart D--Preclosure Guidelines

960.5  Preclosure guidelines.
960.5-1  System guidelines.
960.5-2  Technical guidelines.

                     Preclosure Radiological Safety

960.5-2-1  Population density and distribution.
960.5-2-2  Site ownership and control.
960.5-2-3  Meteorology.
960.5-2-4  Offsite installations and operations.

             Environment, Socioeconomics, and Transportation

960.5-2-5  Environmental quality.
960.5-2-6  Socioeconomic impacts.
960.5-2-7  Transportation.

      Ease and Cost of Siting, Construction, Operation, and Closure

960.5-2-8  Surface characteristics.
960.5-2-9  Rock characteristics.
960.5-2-10  Hydrology.
960.5-2-11  Tectonics.

Appendix I to Part 960--NRC and EPA Requirements for Postclosure 
          Repository Performance
Appendix II to Part 960--NRC and EPA Requirements for Preclosure 
          Repository Performance
Appendix III to Part 960--Application of the System and Technical 
          Guidelines During the Siting Process
Appendix IV to Part 960--Types of Information for the Nomination of 
          Sites as Suitable for Characterization

    Authority: The Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 
et seq.); Energy Reorganization Act of 1974 (42 U.S.C. 5801 et seq.); 
Department of Energy Organization Act of 1977 (42 U.S.C. 7101 et seq.); 
Nuclear Waste Policy Act of 1982 (Pub. L. 97-425, 96 Stat. 2201).

    Source: 49 FR 47752, Dec. 6, 1984, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 960.1  Applicability.

    These guidelines were developed in accordance with the requirements 
of Section 112(a) of the Nuclear Waste Policy Act of 1982 for use by the 
Secretary of Energy in evaluating the suitability of sites for the 
development of repositories. The guidelines will be used for suitability 
evaluations and determinations made pursuant to Section 112(b) and any 
preliminary suitability determinations required by Section 114(f). The 
guidelines set forth in this part are intended to complement the 
requirements set forth in the Act, 10 CFR part 60, and 40 CFR part 191. 
The DOE recognizes NRC jurisdiction for the resolution of differences 
between the guidelines and 10 CFR part 60. The guidelines have received 
the concurrence of the NRC. The DOE contemplates revising the guidelines 
from time to time, as permitted by the Act, to take into account 
revisions made to the above regulations and to otherwise update the 
guidelines as necessary. The DOE will submit the revisions to the NRC 
and obtain its concurrence before issuance.



Sec. 960.2  Definitions.

    As used in this part:
    Accessible environment means the atmosphere, the land surface, 
surface water, oceans, and the portion of the lithosphere that is 
outside the controlled area.
    Act means the Nuclear Waste Policy Act of 1982.
    Active fault means a fault along which there is recurrent movement, 
which is usually indicated by small,

[[Page 482]]

periodic displacements or seismic activity.
    Affected area means either the area of socioeconomic impact or the 
area of environmental impact, each of which will vary in size among 
potential repository sites.
    Affected Indian tribe means any Indian tribe (1) within whose 
reservation boundaries a repository for radioactive waste is proposed to 
be located or (2) whose federally defined possessory or usage rights to 
other lands outside the reservation's boundaries arising out of 
congressionally ratified treaties may be substantially and adversely 
affected by the locating of such a facility: Provided, That the 
Secretary of the Interior finds, upon the petition of the appropriate 
governmental officials of the tribe, that such effects are both 
substantial and adverse to the tribe.
    Affected State means any State that (1) has been notified by the DOE 
in accordance with Section 116(a) of the Act as containing a potentially 
acceptable site; (2) contains a candidate site for site characterization 
or repository development; or (3) contains a site selected for 
repository development.
    Application means the act of making a finding of compliance or 
noncompliance with the qualifying or disqualifying conditions specified 
in the guidelines of subparts C and D, in accordance with the types of 
findings specified in appendix III.
    Aquifer means a formation, a group of formations, or a part of a 
formation that contains sufficient saturated permeable material to yield 
significant quantities of water to wells and springs.
    Barrier means any material or structure that prevents or 
substantially delays the movement of water or radionuclides.
    Candidate site means an area, within a geohydrologic setting, that 
is recommended by the Secretary of Energy under section 112 of the Act 
for site characterization, approved by the President under section 112 
of the Act for characterization, or undergoing site characterization 
under section 113 of the Act.
    Closure means final backfilling of the remaining open operational 
areas of the underground facility and boreholes after the termination of 
waste emplacement, culminating in the sealing of shafts.
    Confining unit means a body of impermeable or distinctly less 
permeable material stratigraphically adjacent to one or more aquifers.
    Containment means the confinement of radioactive waste within a 
designated boundary.
    Controlled area means a surface location, to be marked by suitable 
monuments, extending horizontally no more than 10 kilometers in any 
direction from the outer boundary of the underground facility, and the 
underlying subsurface, which area has been committed to use as a 
geologic repository and from which incompatible activities would be 
prohibited before and after permanent closure.
    Cumulative releases of radionuclides means the total number of 
curies of radionuclides entering the accessible environment in any 
10,000-year period, normalized on the basis of radiotoxicity in 
accordance with 40 CFR part 191. The peak cumulative release of 
radionuclides refers to the 10,000-year period during which any such 
release attains its maximum predicted value.
    Decommissioning means the permanent removal from service of surface 
facilities and components neceessary for preclosure operations only, 
after repository closure, in accordance with regulatory requirements and 
environmental policies.
    Determination means a decision by the Secretary that a site is 
suitable for site characterization for the selection of a repository 
site or that a site is suitable for the development of a repository, 
consistent with applications of the guidelines of subparts C and D in 
accordance with the provisions set forth in subpart B.
    Disposal means the emplacement in a repository of high-level 
radioactive waste, spent nuclear fuel, or other highly radioactive 
material with no foreseeable intent of recovery, whether or not such 
emplacement permits the recovery of such waste, and the isolation of 
such waste from the accessible environment.
    Disqualifying condition means a condition that, if present at a 
site, would

[[Page 483]]

eliminate that site from further consideration.
    Disturbed zone means that portion of the controlled area, excluding 
shafts, whose physical or chemical properties are predicted to change as 
a result of underground facility construction or heat generated by the 
emplaced radioactive waste such that the resultant change of properties 
could have a significant effect on the preformance of the geologic 
repository.
    DOE means the U.S. Department of Energy or its duly authorized 
representatives.
    Effective porosity means the amount of interconnected pore space and 
fracture openings available for the transmission of fluids, expressed as 
the ratio of the volume of interconnected pores and openings to the 
volume of rock.
    Engineered-barrier system means the manmade components of a disposal 
system designed to prevent the release of radionuclides from the 
underground facility or into the geohydrologic setting. Such term 
includes the radioactive-waste form, radioactive-waste canisters, 
materials placed over and around such canisters, any other components of 
the waste package, and barriers used to seal penetrations in and into 
the underground facility.
    Environmental assessment means the document required by section 
112(b)(1)(E) of the Nuclear Waste Policy Act of 1982.
    Environmental impact statement means the document required by 
section 102(2)(C) of the National Environmental Policy Act of 1969. 
Sections 114(a) and 114(f) of the Nuclear Waste Policy Act of 1982 
include certain limitations on the National Environmental Policy Act 
requirements as they apply to the preparation of an environmental impact 
statement for the development of a repository at a characterized site.
    EPA means the U.S. Environmental Protection Agency or its duly 
authorized representatives.
    Evaluation means the act of carefully examining the characteristics 
of a site in relation to the requirements of the qualifying or 
disqualifying conditions specified in the guidelines of subparts C and 
D. Evaluation includes the consideration of favorable and potentially 
adverse conditions.
    Excepted means assumed to be probable or certain on the basis of 
existing evidence and in the absence of significant evidence to the 
contrary.
    Expected repository performance means the manner in which the 
repository is predicted to function, consideration those conditions, 
processes, and events that are likely to prevail or may occur during the 
time period of interest.
    Facility means any structure, system, or system component, including 
engineered barriers, created by the DOE to meet repository-performance 
or functional objectives.
    Fault means a fracture or a zone of fractures along which there has 
been displacement of the side relative to one another parallel to the 
fracture or zone of fractures.
    Faulting means the process of fracturing and displacement that 
produces a fault.
    Favorable condition means a condition that, though not necessary to 
qualify a site, is presumed, if present, to enhance confidence that the 
qualifying condition of a particular guideline can be met.
    Finding means a conclusion that is reached after evaluation.
    Geohydrologic setting means the system of geohydrologic units that 
is located within a given geologic setting.
    Geohydrologic system means the geohydrologic units within a geologic 
setting, including any recharge, discharge, interconnections between 
units, and any natural or man-induced processes or events that could 
affect ground-water flow within or among those units.
    Geohydrologic unit means an aquifer, a confining unit, or a 
combination of aquifers and confining units comprising a framework for a 
reasonably distinct geohydrologic system.
    Geologic repository means a system, requiring licensing by the NRC, 
that is intended to be used, or may be used, for the disposal of 
radioactive waste in excavated geologic media. A geologic repository 
includes (1) the geologic-repository operations area and (2) the portion 
of the geologic setting that provides isolation of the radioactive waste 
and is located within the controlled area.

[[Page 484]]

    Geologic-repository operations area means a radioactive-waste 
facility that is part of the geologic repository, including both surface 
and subsurface areas and facilities where waste-handling activities are 
conducted.
    Geologic setting means the geologic, hydrologic, and geochemical 
systems of the region in which a geologic-repository operations area is 
or may be located.
    Geomorphic processes means geologic processes that are responsible 
for the general configuration of the Earth's surface, including the 
development of present landforms and their relationships to underlying 
structures, and are responsible for the geologic changes recorded by 
these surface features.
    Ground water means all subsurface water as distinct from surface 
water.
    Ground-water flux means the rate of ground-water flow per unit area 
of porous or fractured media measured perpendicular to the direction of 
flow.
    Ground-water sources means aquifers that have been or could be 
economically and technologically developed as sources of water in the 
foreseeable future.
    Ground-water travel time means the time required for a unit volume 
of ground water to travel between two locations. The travel time is the 
length of the flow path divided by the velocity, where velocity is the 
average ground-water flux passing through the cross-sectional area of 
the geologic medium through which flow occurs, perpendicular to the flow 
direction, divided by the effective porosity along the flow path. If 
discrete segments of the flow path have different hydrologic properties, 
the total travel time will be the sum of the travel times for each 
discrete segment.
    Guideline means a statement of policy or procedure that may include, 
when appropriate, qualifying, disqualifying, favorable, or potentially 
adverse conditions as specified in the ``guidelines.''
    Guidelines means part 960 of title 10 of the Code of Federal 
Regulations--General Guidelines for the Recommendation of Sites for 
Nuclear Waste Repositories.
    High-level radioactive waste means (1) the highly radioactive 
material resulting from the reprocessing of spent nuclear fuel, 
including liquid waste produced directly in reprocessing and any solid 
material derived from such liquid waste that contains fission products 
in sufficient concentrations and (2) other highly radioactive material 
that the NRC, consistent with existing law, determines by rule requires 
permanent isolation.
    Highly populated area means any incoporated place (recognized by the 
decennial reports of the U.S. Bureau of the Census) of 2,500 or more 
persons, or any census designated place (as defined and delineated by 
the Bureau) of 2,500 or more persons, unless it can be demonstrated that 
any such place has a lower population density than the mean value for 
the continental United States. Counties or county equivalents, whether 
incorporated or not, are specifically excluded form the definition of 
``place'' as used herein.
    Host rock means the geologic medium in which the waste is emplaced, 
specifically the geologic materials that directly encompass and are in 
close proximity to the underground facility.
    Hydraulic conductivity means the volume of water that will move 
through a medium in a unit of time under a unit hydraulic gradient 
through a unit area measured perpendicular to the direction of flow.
    Hydraulic gradient means a change in the static pressure of ground 
water, expressed in terms of the height of water above a datum, per unit 
of distance in a given direction.
    Hydrologic process means any hydrologic phenomenon that exhibits a 
continuous change in time, whether slow or rapid.
    Hydrologic properties means those properties of a rock that govern 
the entrance of water and the capacity to hold, transmit, and deliver 
water, such as porosity, effective porosity, specific retention, 
permeability, and the directions of maximum and minimum permeabilities.
    Igneous activity means the emplacement (intrusion) of molten rock 
material (magma) into material in the Earth's crust or the expulsion 
(extrusion) of such material onto the Earth's surface or into its 
atmosphere or surface water.

[[Page 485]]

    Isolation means inhibiting the transport of radioactive material so 
that the amounts and concentrations of this material entering the 
accessible environment will be kept within prescribed limits.
    Likely means processing or displaying the qualities, 
characteristics, or attributes that provide a reasonable basis for 
confidence that what is expected indeed exists or will occur.
    Lithosphere means the solid part of the Earth, including any ground 
water contained within it.
    Member of the public means any individual who is not engaged in 
operations involving the management, storage, and disposal of 
radioactive waste. A worker so engaged is a member of the public except 
when on duty at the geologic-repository operations area.
    Mitigation means: (1) Avoiding the impact altogether by not taking a 
certain action or parts of an action; (2) minimizing impacts by limiting 
the degree or magnitude of the action and its implementation; (3) 
rectifying the impact by repairing, rehabilitating, or restoring the 
affected environment; (4) reducing or eliminating the impact over time 
by preservation and maintenance operations during the life of the 
action; or (5) compensating for the impact by replacing or providing 
substitute resources or environments.
    Model means a conceptual description and the associated mathematical 
representation of a system, subsystem, component, or condition that is 
used to predict changes from a baseline state as a function of internal 
and/or external stimuli and as a function of time and space.
    NRC means the U.S. Nuclear Regulatory Commission or its duly 
authorized representatives.
    Perched ground water means unconfined ground water separated from an 
underlying body of ground water by an unsaturated zone. Its water table 
is a perched water table. Perched ground water is held up by a perching 
bed whose permeability is so low that water percolating downward through 
it is not able to bring water in the underlying unsaturated zone above 
atmospheric pressure.
    Performance assessment means any analysis that predicts the behavior 
of a system or system component under a given set of constant and/or 
transient conditions. Performance assessments will include estimates of 
the effects of uncertainties in data and modeling.
    Permanent closure is synonymous with ``closure.''
    Postclosure means the period of time after the closure of the 
geologic repository.
    Potentially acceptable site means any site at which, after geologic 
studies and field mapping but before detailed geologic data gathering, 
the DOE undertakes preliminary drilling and geophysical testing for the 
definition of site location.
    Potentially adverse condition means a condition that is presumed to 
detract from expected system performance, but further evaluation, 
additional data, or the identification of compensating or mitigating 
factors may indicate that its effect on the expected system performance 
is acceptable.
    Preclosure means the period of time before and during the closure of 
the geologic repository.
    Pre-waste-emplacement means before the authorization of repository 
construction by the NRC.
    Qualifying condition means a condition that must be satisfied for a 
site to be considered acceptable with respect to a specific guideline.
    Quaternary Period means the second period of the Cenozoic Era, 
following the Tertiary, beginning 2 to 3 million years ago and extending 
to the present.
    Radioactive waste or ``waste'' means high-level radioactive waste 
and other radioactive materials, including spent nuclear fuel, that are 
received for emplacement in a geologic repository.
    Radioactive-waste facility means a facility subject to the licensing 
and related regulatory authority of the NRC pursuant to Sections 202(3) 
and 202(4) of the Energy Reorganization Act of 1974 (88 Stat. 1244).
    Radionuclide retardation means the process or processes that cause 
the time required for a given radionuclide to move between two locations 
to be greater than the ground-water travel time, because of physical and 
chemical interactions between the radionuclide and the geohydrologic 
unit through which the radionuclide travels.

[[Page 486]]

    Reasonably available technology means technology which exists and 
has been demonstrated or for which the results of any requisite 
development, demonstration, or confirmatory testing efforts before 
application will be available within the required time period.
    Repository is synonymous with ``geologic repository.''
    Repository closure is synonymous with ``closure.''
    Repository construction means all excavation and mining activities 
associated with the construction of shafts, shaft stations, rooms, and 
necessary openings in the underground facility, preparatory to 
radioactive-waste emplacement, as well as the construction of necessary 
surface facilities, but excluding site-characterization activities.
    Repository operation means all of the functions at the site leading 
to and involving radioactive-waste emplacement in the underground 
facility, including receiving, transportation, handling, emplacement, 
and, if necessary, retrieval.
    Repository support facilities means all permanent facilities 
constructed in support of site-characterization activities and 
repository construction, operation, and closure activities, including 
surface structures, utility lines, roads, railroads, and similar 
facilities, but excluding the underground facility.
    Restricted area means any area access to which is controlled by the 
DOE for purposes of protecting individuals from exposure to radiation 
and radioactive materials before repository closure, but not including 
any areas used as residential quarters, although a separate room or 
rooms in a residential building may be set apart as a restricted area.
    Retrieval means the act of intentionally removing radioactive waste 
before repository closure from the underground location at which the 
waste had been previously emplaced for disposal.
    Saturated zone means that part of the Earth's crust beneath the 
water table in which all voids, large and small, are ideally filled with 
water under pressure greater than atmospheric.
    Secretary means the Secretary of Energy.
    Site means a potentially acceptable site or a candidate site, as 
appropriate, until such time as the controlled area has been 
established, at which time the site and the controlled area are the 
same.
    Site characterization means activities, whether in the laboratory or 
in the field, undertaken to establish the geologic conditions and the 
ranges of the parameters of a candidate site relevant to the location of 
a repository, including borings, surface excavations, excavations of 
exploratory shafts, limited subsurface lateral excavations and borings, 
and in situ testing needed to evaluate the suitability of a candidate 
site for the location of a repository, but not including preliminary 
borings and geophysical testing needed to assess whether site 
characterization should be undertaken.
    Siting means the collection of exploration, testing, evaluation, and 
decision-making activities associated with the process of site 
screening, site nomination, site recommendation, and site approval for 
characterization or repository development.
    Source term means the kinds and amounts of radionuclides that make 
up the source of a potential release of radioactivity.
    Spent nuclear fuel means fuel that has been withdrawn from a nuclear 
reactor following irradiation, the constituent elements of which have 
not been separated by reprocessing.
    Surface facilities means repository support facilities within the 
restricted area.
    Surface water means any waters on the surface of the Earth, 
including fresh and salt water, ice, and snow.
    System means the geologic setting at the site, the waste package, 
and the repository, all acting together to contain and isolate the 
waste.
    System performance means the complete behavior of a repository 
system in response to the conditions, processes, and events that may 
affect it.
    Tectonic means of, or pertaining to, the forces involved in, or the 
resulting structures or features of, tectonics.
    Tectonics means the branch of geology dealing with the broad 
architecture of the outer part of the Earth, that is, the regional 
assembling of

[[Page 487]]

structural or deformational features and the study of their mutual 
relations, origin, and historical evolution.
    To the extent practicable means the degree to which an intended 
course of action is capable of being effected in a manner that is 
reasonable and feasible within a framework of constraints.
    Underground facility means the underground structure and the rock 
required for support, including mined openings and backfill materials, 
but excluding shafts, boreholes, and their seals.
    Unsaturated zone means the zone between the land surface and the 
water table. Generally, water in this zone is under less than 
atmospheric pressure, and some of the voids may contain air or other 
gases at atmospheric pressure. Beneath flooded areas or in perched water 
bodies, the water pressure locally may be greater than atmospheric.
    Waste form means the radioactive waste materials and any 
encapsulating or stabilizing matrix.
    Waste package means the waste form and any containers, shielding, 
packing, and other sorbent materials immediately surrounding an 
individual waste container.
    Water table means that surface in a body of ground water at which 
the water pressure is atmospheric.



                  Subpart B--Implementation Guidelines



Sec. 960.3  Implementation guidelines.

    The guidelines of this subpart establish the procedure and basis for 
applying the postclosure and the preclosure guidelines of subparts C and 
D, respectively, to evaluations of the suitability of sites for the 
development of repositories. As may be appropriate during the siting 
process, this procedure requires consideration of a variety of 
geohydrologic settings and rock types, regionality, and environmental 
impacts and consultation with affected States, affected Indian tribes, 
and Federal agencies.



Sec. 960.3-1  Siting provisions.

    The siting provisions establish the framework for the implementation 
of the siting process specified in Sec. 960.3-2. Sections 960.3-1-1 and 
960.3-1-2 require that consideration be given to sites situated in 
different geohydrologic settings and different types of host rock, 
respectively. These diversity guidelines are intended to balance the 
process of site selection by requiring consideration of a variety of 
geologic conditions and media, and thereby enhance confidence in the 
technical suitability of sites selected for the development of 
repositories. As required by the Act, Sec. 960.3-1-3 specifies 
consideration of a regional distribution of repositories after 
recommendation of a site for development of the first repository. 
Section 960.3-1-4 describes the evidence that is required to support 
siting decisions. Section 960.3-1-5 establishes the basis for site 
evaluations against the postclosure and the preclosure guidelines of 
subparts C and D during the various phases of the siting process.



Sec. 960.3-1-1  Diversity of geohydrologic settings.

    Consideration shall be given to a variety of geohydrologic settings 
in which sites for the development of repositories may be located. To 
the extent practicable, sites recommended as candidate sites for 
characterization shall be located in different geohydrologic settings.



Sec. 960.3-1-2  Diversity of rock types.

    Consideration shall be given to a variety of geologic media in which 
sites for the development of repositories may be located. To the extent 
practicable, and with due consideration of candidate sites characterized 
previously or approved for such characterization if the circumstances 
apply, sites recommended as candidate sites for characterization shall 
have different types of host rock.



Sec. 960.3-1-3  Regionality.

    In making site recommendations for repository development after the 
site for the first repository has been recommended, the Secretary shall 
give due consideration to the need for, and the advantages of, a 
regional distribution in the siting of subsequent repositories. Such 
consideration shall take into account the proximity of sites to 
locations at which waste is generated or temporarily stored and at which

[[Page 488]]

other repositories have been or are being developed.



Sec. 960.3-1-4  Evidence for siting decisions.

    The siting process involves a sequence of four decisions: The 
identification of potentially acceptable sites; the nomination of sites 
as suitable for characterization; the recommendation of sites as 
candidate sites for site characterization; and after the completion of 
site characterization and nongeologic data gathering, the recommendation 
of a candidate site for the development of a repository. Each of these 
decisions will be supported by the evidence specified below.



Sec. 960.3-1-4-1  Site identification as potentially acceptable.

    The evidence for the identification of a potentially acceptable site 
shall be the types of information specified in appendix IV of this part. 
Such evidence will be relatively general and less detailed than that 
required for the nomination of a site as suitable for characterization. 
Because the gathering of detailed geologic data will not take place 
until after the recommendation of a site for characterization, the 
levels of information may be relatively greater for the evaluation of 
those guidelines in subparts C and D that pertain to surface-
identifiable factors for such site. The sources of information shall 
include the literature in the public domain and the private sector, when 
available, and will be supplemented in some instances by surface 
investigations and conceptual engineering design studies conducted by 
the DOE. Geologic surface investigations may include the mapping of 
identifiable rock masses, fracture and joint characteristics, and fault 
zones. Other surface investigations will consider the aquatic and 
terrestrial ecology; water rights and uses; topography; potential 
offsite hazards; natural resource concentrations; national or State 
protected resources; existing transportation systems; meteorology and 
climatology; population densities, centers, and distributions; and 
general socioeconomic characteristics.



Sec. 960.3-1-4-2  Site nomination for characterization.

    The evidence required to support the nomination of a site as 
suitable for characterization shall include the types of information 
specified in appendix IV of this part and shall be contained or 
referenced in the environmental assessments to be prepared in accordance 
with the requirements of the Act. The source of this information shall 
include the literature and related studies in the public domain and the 
private sector, when available, and various meteorological, 
environmental, socioeconomic, and transportation studies conducted by 
the DOE in the affected area; exploratory boreholes in the region of 
such site, including lithologic logging and hydrologic and geophysical 
testing of such boreholes, laboratory testing of core samples for the 
evaluation of geochemical and engineering rock properties, and chemical 
analyses of water samples from such boreholes; surface investigations, 
including geologic mapping and geophysical surveys, and compilations of 
satellite imagery data; in situ or laboratory testing of similar rock 
types under expected repository conditions; evaluations of natural and 
man-made analogs of the repository and its subsystems, such as 
geothermally active areas, underground excavations, and case histories 
of socioeconomic cycles in areas that have experienced intermittent 
large-scale construction and industrial activities; and extrapolations 
of regional data to estimate site-specific characteristics and 
conditions. The exact types and amounts of information to be collected 
within the above categories, including such details as the specific 
types of hydrologic tests, combinations of geophysical tests, or number 
of exploratory boreholes, are dependent on the site-specific needs for 
the application of the guidelines of subparts C and D, in accordance 
with the provisions of this subpart and the application requirements set 
forth in appendix III of this part. The evidence shall also include 
those technical evaluations that use the information specified above and 
that provide additional bases for evaluating the ability of a site to 
meet the qualifying conditions of the guidelines

[[Page 489]]

of subparts C and D. In developing the above-mentioned bases for 
evaluation, as may be necessary, assumptions that approximate the 
characteristics or conditions considered to exist at a site, or expected 
to exist or occur in the future, may be used. These assumptions will be 
realistic but conservative enough to underestimate the potential for a 
site to meet the qualifying condition of a guideline; that is, the use 
of such assumptions should not lead to an exaggeration of the ability of 
a site to meet the qualifying condition.



Sec. 960.3-1-4-3  Site recommendation for characterization.

    The evidence required to support the recommendation of a site as a 
candidate site for characterization shall consist of the evaluations and 
data contained or referenced in the environmental assessment for such 
site, unless the Secretary certifies that such information, in the 
absence of additional preliminary borings or excavations, will not be 
adequate to satisfy applicable requirements of the Act.



Sec. 960.3-1-4-4  Site recommendation for repository development.

    The evidence required to support the recommendation of a candidate 
site for the development of a repository, after the completion of 
characterization activities at such site, shall consist of the 
information specified in section 114(a) of the Act for the comprehensive 
statement of the basis for such recommendation and section 114(f) of the 
Act for the environmental impact statement. This evidence shall be 
obtained by the characterization of such site, according to the 
requirements specified in section 113(b) of the Act and in 10 CFR 60.11, 
and by nongeologic data gathering.



Sec. 960.3-1-5  Basis for site evaluations.

    Evaluations of individual sites and comparisons between and among 
sites shall be based on the postclosure and preclosure guidelines 
specified in subparts C and D, respectively. Except for screening for 
potentially acceptable sites as specified in Sec. 960.3-2-1, such 
evaluations shall place primary significance on the postclosure 
guidelines and secondary significance on the preclosure guidelines, with 
each set of guidelines considered collectively for such purposes. Both 
the postclosure and the preclosure guidelines consist of a system 
guideline or guidelines and corresponding groups of technical 
guidelines. The postclosure guidelines of subpart C contain eight 
technicalguidelines in one group. The preclosure guidelines of subpart D 
contain eleven technical guidelines separated into three groups that 
represent, in decreasing order of importance, preclosure radiological 
safety; environment, socioeconomics, and transportation; and ease and 
cost of siting, construction, operation, and closure. The relative 
significance of any technical guideline to its corresponding system 
guideline is site specific. Therefore, for each technical guideline, an 
evaluation of compliance with the qualifying condition shall be made in 
the context of the collection of system elements and the evidence 
related to that guideline, considering on balance the favorable 
conditions and the potentially adverse conditions identified at a site. 
Similarly, for each system guideline, such evaluation shall be made in 
the context of the group of technical guidelines and the evidence 
related to that system guideline. For purposes of recommending sites for 
development as respositories, such evidence shall include analyses of 
expected respository performance to assess the likelihood of 
demonstrating compliance with 40 CFR part 191 and 10 CFR part 60, in 
accordance with Sec. 960.4-1. A site shall be disqualified at any time 
during the siting process if the evidence supports a finding by the DOE 
that a disqualifying condition exists or the qualifying condition of any 
system or technical guideline cannot be met. Comparisons between and 
among sites shall be based on the system guidelines, to the extent 
practicable and in accordance with the levels of relative significance 
specified above for the postclosure and the preclosure guidelines. Such 
comparisons are intended to allow comparative evaluations of sites in 
terms of the capabilities of the natural barriers for waste isolation 
and to identify innate deficiencies that could jeopardize compliance 
with such requirements. If the evidence for the sites is not adequate

[[Page 490]]

to substantiate such comparisons, then the comparisons shall be based on 
the groups of technical guidelines under the postclosure and the 
preclosure guidelines, considering the levels of relative significance 
appropriate to the postclosure and the preclosure guidelines and the 
order of importance appropriate to the subordinate groups within the 
preclosure guidelines. Comparative site evaluations shall place primary 
importance on the natural barriers of the site. In such evaluations for 
the postclosure guidelines of subpart C, engineered barriers shall be 
considered only to the extent necessary to obtain realistic source terms 
for comparative site evaluations based on the sensitivity of the natural 
barriers to such realistic engineered barriers. For a better 
understanding of the potential effects of engineered barriers on the 
overall performance of the repository system, these comparative 
evaluations shall consider a range of levels in the performance of the 
engineered barriers. That range of performance levels shall vary by at 
least a factor of 10 above and below the engineered-barrier performance 
requirements set forth in 10 CFR 60.113, and the range considered shall 
be identical for all sites compared. The comparisons shall assume 
equivalentengineered-barrier performance for all sites compared and 
shall be structured so that engineered barriers are not relied upon to 
compensate for deficiencies in the geologic media. Furthermore, 
engineered barriers shall not be used to compensate for an inadequate 
site; mask the innate deficiencies of a site; disguise the strengths and 
weaknesses of a site and the overall system; and mask differences 
between sites when they are compared. Site comparisons performed to 
support the recommendation of sites for the development of repositories 
in Sec. 960.3-2-4 shall evaluate predicted releases of radionuclides to 
the accessible environment. For the purposes of such comparison, the 
accessible environment shall consist of the atmosphere, the land 
surface, any nearby surface water, and those portions of the lithosphere 
that are situated more than 10 kilometers in a horizontal direction from 
the outer boundary of the original location of the waste emplacement in 
the geologic repository. Releases of different radionuclides shall be 
combined by the methods specified in appendix A of 40 CFR part 191. The 
comparisons specified above shall consist of two comparative evaluations 
that predict radionuclide releases for 100,000 years after repository 
closure and shall be conducted as follows. First, the sites shall be 
compared by means of evaluations that emphasize the performance of the 
natural barriers at the site. Second, the sites shall be compared by 
means of evaluations that emphasize the performance of the total 
repository system. These second evaluations shall consider the expected 
performance of the repository system; be based on the expected 
performance of waste packages and waste forms, in compliance with the 
requirements of 10 CFR 60.113, and on the expected hydrologic and 
geochemical conditions at each site; and take credit for the expected 
performance of all other engineered components of the repository system. 
The comparison of isolation capability shall be one of the significant 
considerations in the recommendation of sites for the development of 
repositories. The first of the two comparative evaluations specified in 
the preceding paragraph shall take precedence unless the second 
comparative evaluation would lead to substantially different 
recommendations. In the latter case, the two comparative evaluations 
shall receive comparable consideration. Sites with predicted isolation 
capabilities that differ by less than a factor of 10, with similar 
uncertainties, may be assumed to provide equivalent isolation.



Sec. 960.3-2  Siting process.

    The siting process begins with site screening for the identification 
of potentially acceptable sites. This process was completed for purposes 
of the first repository before the enactment of the Act, and the 
identification of such sites was made after enactment in accordance with 
the provisions of section 116(a) of the Act. The screening process for 
the identification of potentially acceptable sites for the second and 
subsequent repositories shall be conducted in accordance with the 
requirements specified in Sec. 960.3-2-1 of this subpart.

[[Page 491]]

The nomination of any site as suitable for characterization shall follow 
the process specified in Sec. 960.3-2-2, and such nomination shall be 
accompanied by an environmental assessment as specified in section 
112(b)(1)(E) of the Act. The recommendation of sites as candidate sites 
for characterization and the recommendation of a characterized site for 
the development of a repository shall be accomplished in accordance with 
the requirements specified in Secs. 960.3-2-3 and 960.3-2-4, 
respectively.



Sec. 960.3-2-1  Site screening for potentially acceptable sites.

    To identify potentially acceptable sites for the development of 
other than the first repository, the process shall begin with site-
screening activities that consider large land masses that contain rock 
formations of suitable depth, thickness, and lateral extent and have 
structural, hydrologic, and tectonic features favorable for waste 
containment and isolation. Within those large land masses, subsequent 
site-screening activities shall focus on successively smaller and 
increasingly more suitable land units. This process shall be developed 
in consultation with the States that contain land units under 
consideration. It shall be implemented in a sequence of steps that first 
applies the applicable disqualifying conditions to eliminate land units 
on the basis of the evidence specified in Sec. 960.3-1-4-1 and in 
accordance with the application requirements set forth in appendix III 
of this part. After the disqualifying conditions have been applied, the 
favorable and potentially adverse conditions, as identified for each 
remaining land unit, shall be evaluated. The presence of favorable 
conditions shall favor a given land unit, while the presence of 
potentially adverse conditions shall penalize that land unit. 
Recognizing that favorable conditions and potentially adverse conditions 
for different technical guidelines can exist in the same land unit, the 
DOE shall seek to evaluate the composite favorability of each land unit. 
Land units that, in the aggregrate, exhibit potentially adverse 
conditions shall be deferred in favor of land units that exhibit 
favorable conditions. The siting provisions that require diversity of 
geohydrologic settings and rock types and consideration of regionality, 
as specified in Secs. 960.3-1-1, 960.3-1-2, and 960.3-1-3, respectively, 
may be used to discriminate between land units and to establish the 
range of options in site screening. To identify a site as potentially 
acceptable, the evidence shall support a finding that the site is not 
disqualified in accordance with the application requirements set forth 
in appendix III of this part and shall support the decision by the DOE 
to proceed the continued investigation of the site on the basis of the 
favorable and potentially adverse conditions identified to date. In 
continuation of the screening process after such identification and 
before site nomination, the DOE may defer from further consideration 
land units or potentially acceptable sites or portions thereof on the 
basis of additional information or by the application of the siting 
provisions for diversity of geohydrologic settings, diversity of rock 
types, and regionality (Secs. 960.3-1-1, 960.3-1-2, and 960.3-1-3, 
respectively). The deferral of potentially acceptable sites will be 
described in the environmental assessments that accompany the nomination 
of at least five sites as suitable for characterization. In order to 
identify potentially acceptable sites for the second and subsequent 
repositories, the Secretary shall first identify the State within which 
the site is located in a decision-basis document that describes the 
process and the considerations that led to the identification of such 
site and that has been issued previously in draft for review and comment 
by such State. Second, when such document is final, the Secretary shall 
notify the Governor and the legislature of that State and the tribal 
council of any affected Indian tribe of the potentially acceptable site.



Sec. 960.3-2-2  Nomination of sites as suitable for characterization.

    From the sites identified as potentially acceptable, the Secretary 
shall nominate at least five sites determined suitable for site 
characterization for the selection of each repository site. For the 
second repository, at least three of the sites shall not have been

[[Page 492]]

nominated previously. Any site nominated as suitable for 
characterization for the first repository, but not recommended as a 
candidate site for characterization, may not be nominated as suitable 
for characterization for the second repository. The nomination of a site 
as suitable for characterization shall be accompanied by an 
environmental assessment as specified in section 112(b)(1)(E) of the 
Act. Such nomination shall be based on evaluations in accordance with 
the guidelines of this part, and the bases and relevant details of those 
evaluations and of the decision processes involved therein shall be 
contained in the environmental assessment for the site in the manner 
specified in this subpart. The evidence required to support such 
evaluations and siting decisions is specified in Sec. 960.3-1-4-2.



Sec. 960.3-2-2-1  Evaluation of all potentially acceptable sites.

    First, in considering sites for nomination, each of the potentially 
acceptable sites shall be evaluated on the basis of the disqualifying 
conditions specified in the technical guidelines of subparts C and D, in 
accordance with the application requirements set forth in appendix III 
of this part. This evaluation shall support a finding by the DOE that 
such sites is not disqualified.



Sec. 960.3-2-2-2  Selection of sites within geohydrologic settings.

    Second, the siting provision requiring diversity of geohydrologic 
settings, as specified in Sec. 960.3-1-1, shall be applied to group all 
potentially acceptable sites according to their geohydrologic settings. 
Third, for those geohydrologic settings that contain more than one 
potentially acceptable site, the preferred site shall be selected on the 
basis of a comparative evaluation of all potentially acceptable sites in 
that setting. This evaluation shall consider the distinguishing 
characteristics displayed by the potentially acceptable sites within the 
setting and the related guidelines from subparts C and D. That is, the 
appropriate guidelines shall be selected primarily on the basis of the 
kinds of evidence among sites for which distinguishing characteristics 
can be identified. Such comparative evaluation shall be made on the 
basis of the qualifying conditions for those guidelines, considering, on 
balance, the favorable conditions and potentially adverse conditions 
identified at each site. Due consideration shall also be given to the 
siting provisions specifying the basis for site evaluations in 
Sec. 960.3-1-5, to the extent practicable, and diversity of rock types 
in Sec. 960.3-1-2, if the circumstances so apply. If less than five 
geohydrologic settings are available for consideration, the above 
process shall be used to select two or more preferred sites from those 
settings that contain more than one potentially acceptable site, as 
required to obtain the number of sites to be nominated as suitable for 
characterization. For purposes of the second and subsequent 
repositories, due consideration shall also be given to the siting 
provision for regionality as specified in Sec. 960.3-1-3. Fourth, each 
preferred site within a geohydrologic setting shall be evaluated as to 
whether such site is suitable for the development of a repository under 
the qualifying condition of each guideline specified in subparts C and D 
that does not require site characterization as a prerequisite for the 
application of such guideline. The guidelines considered appropriate to 
this evaluation have been selected on the basis of their exclusion under 
the definition of site characterization as specified in Sec. 960.2. 
Although the final application of these guidelines, in accordance with 
the provisions set forth in appendix III of this part, does not require 
geologic data from site-characterization activities, such application 
will require additional data beyond those specified in appendix IV of 
this part, which will be obtained concurrently with site 
characterization. Such guidelines include those specified in Sec. 960.4-
2-8-2 (Site Ownership and Control) of subpart C; Secs. 960.5-1(a)(1) and 
960.5-1(a)(2) of subpart D (preclosure system guidelines for 
radiological safety and environmental quality, socioeconomics, and 
transportation); and Secs. 960.5-2-1 through 960.5-2-7 of subpart D 
(Population Density and Distribution, Site Ownership and Control, 
Meteorology, Offsite Installations and Operations, Environmental 
Quality,

[[Page 493]]

Socioeconomic Impacts, and Transportation). This evaluation shall 
consider on balance those favorable conditions and potentially adverse 
conditions identified as such at a preferred site in relation to the 
qualifying condition of each such guideline. For each such guideline, 
this evaluation shall focus on the suitability of the site for the 
development of a repository by considering the activities from the start 
of site characterization through decommissioning and shall support a 
finding by the DOE in accordance with the application requirements set 
forth in appendix III of this part. Fifth, each preferred site within a 
geohydrologic setting shall be evaluated as to whether such site is 
suitable for site characterization under the qualifying conditions of 
those guidelines specified in subparts C and D that require 
characterization (i.e., subsurface geologic, hydrologic, and geochemical 
data gathering). Such guidelines include those specified in Sec. 960.4-
1(a) (postclosure system guideline); Secs. 960.4-2-1 through 960.4-2-8-1 
of subpart C (Geohydrology, Geochemistry, Rock Characteristics, Climatic 
Changes, Erosion, Dissolution, Tectonics, Human Interference, and 
Natural Resources); Sec. 960.5-1(a)(3) (preclosure system guideline for 
ease and cost of siting, construction, operation, and closure); and 
Sec. 960.5-2-8 through 960.5-2-11 of subpart D (Surface Characteristics, 
Rock Characteristics, Hydrology, and Tectonics). This evaluation shall 
consider on balance the favorable conditions and potentially adverse 
conditions identified as such at a preferred site in relation to the 
qualifying condition of each such guideline. For each such guideline, 
this evaluation shall focus on the suitability of the site for 
characterization and shall support a finding by the DOE in accordance 
with the application requirements set forth in appendix III of this 
part.



Sec. 960.3-2-2-3  Comparative evaluation of all sites proposed for nomination.

    Sixth, for those potentially acceptable sites to be proposed for 
nomination, as determined by the process specified in Sec. 960.3-2-2-2, 
a reasonable comparative evaluation of each such site with all other 
such sites shall be made. For each site and for each guideline specified 
in subparts C and D, the DOE shall summarize the evaluations and 
findings specified under Sec. 960.3-2-2-1 and under the fourth and fifth 
provisions of Sec. 960.3-2-2-2. Each such summary shall allow 
comparisons to be made among sites on this basis of each guideline.



Sec. 960.3-2-2-4  The environmental assessment.

    To document the process specified above, and in compliance with 
section 112(b)(1)(E) of the Act, an environmental assessment shall be 
prepared for each site proposed for nomination as suitable for 
characterization. Each such environmental assessment shall describe the 
decision process by which such site was proposed for nomination as 
described in the preceding six steps and shall contain or reference the 
evidence that supports such process according to the requirements of 
Sec. 960.3-1-4-2 and appendix IV of this part. As specified in the Act, 
each environmental assessment shall include an evaluation of the effects 
of the site-characterization activities at the site on public health and 
safety and the environment; a discussion of alternative activities 
related to site characterization that may be taken to avoid such impact; 
and an assessment of the regional and local impacts of locating a 
repository at the site. The draft environmental assessment for each site 
proposed for nomination as suitable for characterization shall be made 
available by the DOE for public comment after the Secretary has notified 
the Governor and legislature of the State in which the site is located, 
and the governing body of the affected Indian tribe where such site is 
located, of such impending availability.



Sec. 960.3-2-2-5  Formal site nomination.

    After the final environmental assessments have been prepared, the 
Secretary shall nominate at least five sites that he determines suitable 
for site characterization for the selection of a repository site, and, 
in so doing, he shall cause to have published in the Federal Register a 
notice specifying the sites so nominated and announcing

[[Page 494]]

the availability of the final environmental assessments for such sites. 
This determination by the Secretary shall be based on the final 
environmental assessments for such sites, including, in particular, 
consideration of the available evidence, evaluations, and the resultant 
findings for the guidelines of subparts C and D so specified under the 
fourth and fifth provisions of Sec. 960.3-2-2-2. Before nominating a 
site, the Secretary shall notify the Governor and legislature of the 
State in which the site is located, and the governing body of the 
affected Indian tribe where such site is located, of such nomination and 
the basis for such nomination.



Sec. 960.3-2-3  Recommendation of sites for characterization.

    After the nomination of at least five sites as suitable for site 
characterization for the selection of the first repository, the 
Secretary shall recommend in writing to the President not less than 
three candidate sites for such characterization. The recommendation 
decision shall be based on the available geophysical, geologic, 
geochemical, and hydrologic data; other information; associated 
evaluations and findings reported in the environmental assessments 
accompanying the nominations; and the considerations specified below, 
unless the Secretary certifies that such available data will not be 
adequate to satisfy applicable requirements of the Act in the absence of 
further preliminary borings or excavations. On the basis of the evidence 
and in accordance with the siting provision specifying the basis for 
site evaluations in Sec. 960.3-1-5, the sites nominated as suitable for 
characterization shall be considered as to their order of preference as 
candidate sites for characterization. Subsequently, the siting 
provisions specifying diversity of geohydrologic settings, diversity of 
rock types, and, after the first repository, consideration of 
regionality in Secs. 960.3-1-1, 960.3-1-2, and 960.3-1-3, respectively, 
shall be considered to determine a final order of preference for the 
characterization of such sites. Considering this order of preference 
together with the available siting alternatives specified in the Act, 
the sites recommended as candidate sites for characterization shall 
offer, on balance, the most advantageous combination of characteristics 
and conditions for the successful development of repositories at such 
sites. The process for the recommendation of sites as candidate sites 
for characterization for the selection of any subsequent repository 
shall be the same as that specified above for the first repository.



Sec. 960.3-2-4  Recommendation of sites for the development of repositories.

    After completion of site characterization and nongeologic data 
gathering activities at the candidate sites for the development of the 
first repository, or from all of the characterized sites for the 
development of subsequent repositories, the candidate sites shall be 
compared with each other on the basis of the guidelines specified in 
subparts C and D according to the siting provision specifying the basis 
for site evaluations in Sec. 960.3-1-5. This comparison shall lead to a 
recommendation by the Secretary to the President of a site for the 
development of a repository. Together with any recommendation to the 
President to approve a site for the development of a repository, the 
Secretary shall make available to the public, and submit to the 
President, a comprehensive statement of the basis of such recommendation 
pursuant to the requirements specified in section 114(a)(1) of the Act, 
including an environmental impact statement prepared in accordance with 
the provisions of sections 114(a)(1)(D) and 114(f) of the Act. The 
environmental impact statement shall include the results of the 
comparative evaluation specified above and a description of the decision 
process that resulted in the selection of the candidate site recommended 
for the development of such repository.



Sec. 960.3-3  Consultation.

    The DOE shall provide to designated officials of the affected States 
and to the governing bodies of any affected Indian tribe timely and 
complete information regarding determinations or plans made with respect 
to the siting, site characterization, design, development, construction, 
operation, closure, decommissioning, licensing, or regulation of a 
repository. Written responses

[[Page 495]]

to written requests for information from the designated officials of 
affected States or affected Indian tribes will be provided within 30 
days after receipt of the written requests. In performing any study of 
an area for the purpose of determining the suitability of such area for 
the development of a repository, the DOE shall consult and cooperate 
with the Governor and the legislature of an affected State and the 
governing body of an affected Indian tribe in an effort to resolve 
concerns regarding public health and safety, environmental impacts, 
socioeconomic impacts, and technical aspects of the siting process. 
After notifying affected States and affected Indian tribes that 
potentially acceptable sites have been identified, or that a site has 
been approved for characterization, the DOE shall seek to enter into 
binding written agreements with such affected States or affected Indian 
tribes in accordance with the requirements of the Act. The DOE shall 
also consult, as appropriate, with other Federal agencies.



Sec. 960.3-4  Environmental impacts.

    Environmental impacts shall be considered by the DOE throughout the 
site characterization, site selection, and repository development 
process. The DOE shall mitigate significant adverse environmental 
impacts, to the extent practicable, during site characterization and 
repository construction, operation, closure, and decommissioning.



                    Subpart C--Postclosure Guidelines



Sec. 960.4  Postclosure guidelines.

    The guidelines in this subpart specify the factors to be considered 
in evaluating and comparing sites on the basis of expected repository 
performance after closure. The postclosure guidelines are separated into 
a system guideline and eight technical guidelines. The system guideline 
establishes waste containment and isolation requirements that are based 
on NRC and EPA regulations. These requirements must be met by the 
repository system, which contains natural barriers and engineered 
barriers. The engineered barriers will be designed to complement the 
natural barriers, which provide the primary means for waste isolation.



Sec. 960.4-1  System guideline.

    (a) Qualifying Condition. The geologic setting at the site shall 
allow for the physical separation of radioactive waste from the 
accessible environment after closure in accordance with the requirements 
of 40 CFR part 191, subpart B, as implemented by the provisions of 10 
CFR part 60. The geologic setting at the site will allow for the use of 
engineered barriers to ensure compliance with the requirements of 40 CFR 
part 191 and 10 CFR part 60 (see appendix I of this part).



Sec. 960.4-2  Technical guidelines.

    The technical guidelines in this subpart set forth qualifying, 
favorable, potentially adverse, and, in five guidelines, disqualifying 
conditions on the characteristics, processes, and events that may 
influence the performance of a repository system after closure. The 
favorable conditions and the potentially adverse conditions under each 
guideline are not listed in any assumed order of importance. Potentially 
adverse conditions will be considered if they affect waste isolation 
within the controlled area even though such conditions may occur outside 
the controlled area. The technical guidelines that follow establish 
conditions that shall be considered in determining compliance with the 
qualifying condition of the postclosure system guideline. For each 
technical guideline, an evaluation of qualification or disqualification 
shall be made in accordance with the requirements specified in subpart 
B.



Sec. 960.4-2-1  Geohydrology.

    (a) Qualifying condition. The present and expected geohydrologic 
setting of a site shall be compatible with waste containment and 
isolation. The geohydrologic setting, considering the characteristics of 
and the processes operating within the geologic setting, shall permit 
compliance with (1) the requirements specified in Sec. 960.4-1 for 
radionuclide releases to the accessible environment and (2) the 
requirements specified in 10 CFR 60.113 for radionuclide releases from 
the engineered-barrier system using reasonably available technology.

[[Page 496]]

    (b) Favorable conditions. (1) Site conditions such that the pre-
waste-emplacement ground-water travel time along any path of likely 
radionuclide travel from the disturbed zone to the accessible 
environment would be more than 10,000 years.
    (2) The nature and rates of hydrologic processes operating within 
the geologic setting during the Quaternary Period would, if continued 
into the future, not affect or would favorably affect the ability of the 
geologic repository to isolate the waste during the next 100,000 years.
    (3) Sites that have stratigraphic, structural, and hydrologic 
features such that the geohydrologic system can be readily characterized 
and modeled with reasonable certainty.
    (4) For disposal in the saturated zone, at least one of the 
following pre-waste-emplacement conditions exists:
    (i) A host rock and immediately surrounding geohydrologic units with 
low hydraulic conductivities.
    (ii) A downward or predominantly horizontal hydraulic gradient in 
the host rock and in the immediately surrounding geohydrologic units.
    (iii) A low hydraulic gradient in and between the host rock and the 
immediately surrounding geohydrologic units.
    (iv) High effective porosity together with low hydraulic 
conductivity in rock units along paths of likely radionuclide travel 
between the host rock and the accessible environment.
    (5) For disposal in the unsaturated zone, at least one of the 
following pre-waste-emplacement conditions exists:
    (i) A low and nearly constant degree of saturation in the host rock 
and in the immediately surrounding geohydrologic units.
    (ii) A water table sufficiently below the underground facility such 
that the fully saturated voids continuous with the water table do not 
encounter the host rock.
    (iii) A geohydrologic unit above the host rock that would divert the 
downward infiltration of water beyond the limits of the emplaced waste.
    (iv) A host rock that provides for free drainage.
    (v) A climatic regime in which the average annual historical 
precipitation is a small fraction of the average annual potential 
evapotranspiration.

    Note: The DOE will, in accordance with the general principles set 
forth in Sec. 960.1 of these regulations, revise the guidelines as 
necessary, to ensure consistency with the final NRC regulations on the 
unsaturated zone, which were published as a proposed rule on February 
16, 1984, in 49 FR 5934.

    (c) Potentially adverse conditions. (1) Expected changes in 
geohydrologic conditions--such as changes in the hydraulic gradient, the 
hydraulic conductivity, the effective porosity, and the ground-water 
flux through the host rock and the surrounding geohydrologic units--
sufficient to significantly increase the transport of radionuclides to 
the accessible environment as compared with pre-waste-emplacement 
conditions.
    (2) The presence of ground-water sources, suitable for crop 
irrigation or human consumption without treatment, along ground-water 
flow paths from the host rock to the accessible environment.
    (3) The presence in the geologic setting of stratigraphic or 
structural features--such as dikes, sills, faults, shear zones, folds, 
dissolution effects, or brine pockets--if their presence could 
significantly contribute to the difficulty of characterizing or modeling 
the geohydrologic system.
    (d) Disqualifying condition. A site shall be disqualified if the 
pre-waste-emplacement ground-water travel time from the disturbed zone 
to the accessible environment is expected to be less than 1,000 years 
along any pathway of likely and significant radionuclide travel.



Sec. 960.4-2-2  Geochemistry.

    (a) Qualifying condition. The present and expected geochemical 
characteristics of a site shall be compatible with waste containment and 
isolation. Considering the likely chemical interactions among 
radionuclides, the host rock, and the ground water, the characteristics 
of and the processes operating within the geologic setting shall permit 
compliance with (1) the requirements specified in Sec. 960.4-1 for 
radionuclide releases to the accessible environment and (2) the 
requirements specified in 10 CFR 60.113 for radionuclide

[[Page 497]]

releases from the engineered-barrier system using reasonably available 
technology.
    (b) Favorable conditions. (1) The nature and rates of the 
geochemical processes operating within the geologic setting during the 
Quaternary Period would, if continued into the future, not affect or 
would favorably affect the ability of the geologic repository to isolate 
the waste during the next 100,000 years.
    (2) Geochemical conditions that promote the precipitation, diffusion 
into the rock matrix, or sorption of radionuclides; inhibit the 
formation of particulates, colloids, inorganic complexes, or organic 
complexes that increase the mobility of radionuclides; or inhibit the 
transport of radionuclides by particulates, colloids, or complexes.
    (3) Mineral assemblages that, when subjected to expected repository 
conditions, would remain unaltered or would alter to mineral assemblages 
with equal or increased capability to retard radionuclide transport.
    (4) A combination of expected geochemical conditions and a 
volumetric flow rate of water in the host rock that would allow less 
than 0.001 percent per year of the total radionuclide inventory in the 
repository at 1,000 years to be dissolved.
    (5) Any combination of geochemical and physical retardation 
processes that would decrease the predicted peak cumulative releases of 
radionuclides to the accessible environment by a factor of 10 as 
compared to those predicted on the basis of ground-water travel time 
without such retardation.
    (c) Potentially adverse conditions. (1) Ground-water conditions in 
the host rock that could affect the solubility or the chemical 
reactivity of the engineered-barrier system to the extent that the 
expected repository performance could be compromised.
    (2) Geochemical processes or conditions that could reduce the 
sorption of radionuclides or degrade the rock strength.
    (3) Pre-waste-emplacement ground-water conditions in the host rock 
that are chemically oxidizing.



Sec. 960.4-2-3  Rock characteristics.

    (a) Qualifying condition. The present and expected characteristics 
of the host rock and surrounding units shall be capable of accommodating 
the thermal, chemical, mechanical, and radiation stresses expected to be 
induced by repository construction, operation, and closure and by 
expected interactions among the waste, host rock, ground water, and 
engineered components. The characteristics of and the processes 
operating within the geologic setting shall permit compliance with (1) 
the requirements specified in Sec. 960.4-1 for radionuclide releases to 
the accessible environment and (2) the requirements set forth in 10 CFR 
60.113 for radionuclide releases from the engineered-barrier system 
using reasonably available technology.
    (b) Favorable Conditions. (1) A host rock that is sufficiently thick 
and laterally extensive to allow significant flexibility in selecting 
the depth, configuration, and location of the underground facility to 
ensure isolation.
    (2) A host rock with a high thermal conductivity, a low coefficient 
of thermal expansion, or sufficient ductility to seal fractures induced 
by repository construction, operation, or closure or by interactions 
among the waste, host rock, ground water, and engineered components.
    (c) Potentially adverse conditions. (1) Rock conditions that could 
require engineering measures beyond reasonably available technology for 
the construction, operation, and closure of the repository, if such 
measures are necessary to ensure waste containment or isolation.
    (2) Potential for such phenomena as thermally induced fractures, the 
hydration or dehydration of mineral components, brine migration, or 
other physical, chemical, or radiation-related phenomena that could be 
expected to affect waste containment or isolation.
    (3) A combination of geologic structure, geochemical and thermal 
properties, and hydrologic conditions in the host rock and surrounding 
units such that the heat generated by the waste

[[Page 498]]

could significantly decrease the isolation provided by the host rock as 
compared with pre-waste-emplacement conditions.



Sec. 960.4-2-4  Climatic changes.

    (a) Qualifying condition. The site shall be located where future 
climatic conditions will not be likely to lead to radionuclide releases 
greater than those allowable under the requirements specified in 
Sec. 960.4-1. In predicting the likely future climatic conditions at a 
site, the DOE will consider the global, regional, and site climatic 
patterns during the Quaternary Period, considering the geomorphic 
evidence of the climatic conditions in the geologic setting.
    (b) Favorable conditions. (1) A surface-water system such that 
expected climatic cycles over the next 100,000 years would not adversely 
affect waste isolation.
    (2) A geologic setting in which climatic changes have had little 
effect on the hydrologic system throughout the Quaternary Period.
    (c) Potentially adverse conditions. (1) Evidence that the water 
table could rise sufficiently over the next 10,000 years to saturate the 
underground facility in a previously unsaturated host rock.
    (2) Evidence that climatic changes over the next 10,000 years could 
cause perturbations in the hydraulic gradient, the hydraulic 
conductivity, the effective porosity, or the ground-water flux through 
the host rock and the surrounding geohydrologic units, sufficient to 
significantly increase the transport of radionuclides to the accessible 
environment.



Sec. 960.4-2-5  Erosion.

    (a) Qualifying condition. The site shall allow the underground 
facility to be placed at a depth such that erosional processes acting 
upon the surface will not be likely to lead to radionuclide releases 
greater than those allowable under the requirements specified in 
Sec. 960.4-1. In predicting the likelihood of potentially disruptive 
erosional processes, the DOE will consider the climatic, tectonic, and 
geomorphic evidence of rates and patterns of erosion in the geologic 
setting during the Quaternary Period.
    (b) Favorable conditions. (1) Site conditions that permit the 
emplacement of waste at a depth of at least 300 meters below the 
directly overlying ground surface.
    (2) A geologic setting where the nature and rates of the erosional 
processes that have been operating during the Quaternary Period are 
predicted to have less than one chance in 10,000 over the next 10,000 
years of leading to releases of radionuclides to the accessible 
environment.
    (3) Site conditions such that waste exhumation would not be expected 
to occur during the first one million years after repository closure.
    (c) Potentially adverse conditions. (1) A geologic setting that 
shows evidence of extreme erosion during the Quaternary Period.
    (2) A geologic setting where the nature and rates of geomorphic 
processes that have been operating during the Quaternary Period could, 
during the first 10,000 years after closure, adversely affect the 
ability of the geologic repository to isolate the waste.
    (d) Disqualifying condition. The site shall be disqualified if site 
conditions do not allow all portions of the underground facility to be 
situated at least 200 meters below the directly overlying ground 
surface.



Sec. 960.4-2-6  Dissolution.

    (a) Qualifying condition. The site shall be located such that any 
subsurface rock dissolution will not be likely to lead to radionuclide 
releases greater than those allowable under the requirements specified 
in Sec. 960.4-1. In predicting the likelihood of dissolution within the 
geologic setting at a site, the DOE will consider the evidence of 
dissolution within that setting during the Quaternary Period, including 
the locations and characteristics of dissolution fronts or other 
dissolution features, if identified.
    (b) Favorable condition. No evidence that the host rock within the 
site was subject to significant dissolution during the Quaternary 
Period.
    (c) Potentially adverse condition. Evidence of dissolution within 
the geologic setting--such as breccia pipes, dissolution cavities, 
significant volumetric reduction of the host rock or

[[Page 499]]

surrounding strata, or any structural collapse--such that a hydraulic 
interconnection leading to a loss of waste isolation could occur.
    (d) Disqualifying condition. The site shall be disqualified if it is 
likely that, during the first 10,000 years after closure, active 
dissolution, as predicted on the basis of the geologic record, would 
result in a loss of waste isolation.



Sec. 960.4-2-7  Tectonics.

    (a) Qualifying condition. The site shall be located in a geologic 
setting where future tectonic processes or events will not be likely to 
lead to radionuclide releases greater than those allowable under the 
requirements specified in Sec. 960.4-1. In predicting the likelihood of 
potentially disruptive tectonic processes or events, the DOE will 
consider the structural, stratigraphic, geophysical, and seismic 
evidence for the nature and rates of tectonic processes and events in 
the geologic setting during the Quaternary Period.
    (b) Favorable condition. The nature and rates of igneous activity 
and tectonic processes (such as uplift, subsidence, faulting, or 
folding), if any, operating within the geologic setting during the 
Quaternary Period would, if continued into the future, have less than 
one chance in 10,000 over the first 10,000 years after closure of 
leading to releases of radionuclides to the accessible environment.
    (c) Potentially adverse conditions. (1) Evidence of active folding, 
faulting, diapirism, uplift, subsidence, or other tectonic processes or 
igneous activity within the geologic setting during the Quaternary 
Period.
    (2) Historical earthquakes within the geologic setting of such 
magnitude and intensity that, if they recurred, could affect waste 
containment or isolation.
    (3) Indications, based on correlations of earthquakes with tectonic 
processes and features, that either the frequency of occurrence or the 
magnitude of earthquakes within the geologic setting may increase.
    (4) More-frequent occurrences of earthquakes or earthquakes of 
higher magnitude than are representative of the region in which the 
geologic setting is located.
    (5) Potential for natural phenomena such as landslides, subsidence, 
or volcanic activity of such magnitudes that they could create large-
scale surface-water impoundments that could change the regional ground-
water flow system.
    (6) Potential for tectonic deformations--such as uplift, subsidence, 
folding, or faulting--that could adversely affect the regional ground-
water flow system.
    (d) Disqualifying condition. A site shall be disqualified if, based 
on the geologic record during the Quaternary Period, the nature and 
rates of fault movement or other ground motion are expected to be such 
that a loss of waste isolation is likely to occur.



Sec. 960.4-2-8  Human interference.

    The site shall be located such that activities by future generations 
at or near the site will not be likely to affect waste containment and 
isolation. In assessing the likelihood of such activities, the DOE will 
consider the estimated effectiveness of the permanent markers and 
records required by 10 CFR part 60, taking into account site-specific 
factors, as stated in Secs. 960.4-2-8-1 and 960.4-2-8-2, that could 
compromise their continued effectiveness.



Sec. 960.4-2-8-1  Natural resources.

    (a) Qualifying condition. This site shall be located such that--
considering permanent markers and records and reasonable projections of 
value, scarcity, and technology--the natural resources, including ground 
water suitable for crop irrigation or human consumption without 
treatment, present at or near the site will not be likely to give rise 
to interference activities that would lead to radionuclide releases 
greater than those allowable under the requirements specified in 
Sec. 960.4-1.
    (b) Favorable conditions. (1) No known natural resources that have 
or are projected to have in the foreseeable future a value great enough 
to be considered a commercially extractable resource.
    (2) Ground water with 10,000 parts per million or more of total 
dissolved solids along any path of likely radionuclide travel from the 
host rock to the accessible environment.

[[Page 500]]

    (c) Potentially adverse conditions. (1) Indications that the site 
contains naturally occurring materials, whether or not actually 
identified in such form that (i) economic extraction is potentially 
feasible during the foreseeable future or (ii) such materials have a 
greater gross value, net value, or commercial potential than the average 
for other areas of similar size that are representative of, and located 
in, the geologic setting.
    (2) Evidence of subsurface mining or extraction for resources within 
the site if it could affect waste containment or isolation.
    (3) Evidence of drilling within the site for any purpose other than 
repository-site evaluation to a depth sufficient to affect waste 
containment and isolation.
    (4) Evidence of a significant concentration of any naturally 
occurring material that is not widely available from other sources.
    (5) Potential for foreseeable human activities--such as ground-water 
withdrawal, extensive irrigation, subsurface injection of fluids, 
underground pumped storage, military activities, or the construction of 
large-scale surface-water impoundments--that could adversely change 
portions of the ground-water flow system important to waste isolation.
    (d) Disqualifying conditions. A site shall be disqualified if--
    (1) Previous exploration, mining, or extraction activities for 
resources of commercial importance at the site have created significant 
pathways between the projected underground facility and the accessible 
environment; or
    (2) Ongoing or likely future activities to recover presently 
valuable natural mineral resources outside the controlled area would be 
expected to lead to an inadvertent loss of waste isolation.



Sec. 960.4-2-8-2  Site ownership and control.

    (a) Qualifying condition. The site shall be located on land for 
which the DOE can obtain, in accordance with the requirements of 10 CFR 
part 60, ownership, surface and subsurface rights, and control of access 
that are required in order that potential surface and subsurface 
activities as the site will not be likely to lead to radionuclide 
releases greater than those allowable under the requirements specified 
in Sec. 960.4-1.
    (b) Favorable condition. Present ownership and control of land and 
all surface and subsurface rights by the DOE.
    (c) Potentially adverse condition. Projected land-ownership 
conflicts that cannot be successfully resolved through voluntary 
purchase-sell agreements, nondisputed agency-to-agency transfers of 
title, or Federal condemnation proceedings.



                    Subpart D--Preclosure Guidelines



Sec. 960.5  Preclosure guidelines.

    The guidelines in this subpart specify the factors to be considered 
in evaluating and comparing sites on the basis of expected repository 
performance before closure. The preclosure guidelines are separated into 
three system guidelines and eleven technical guidelines.



Sec. 960.5-1  System guidelines.

    (a) Qualifying conditions--(1) Preclosure radiological safety. Any 
projected radiological exposures of the general public and any projected 
releases of radioactive materials to restricted and unrestricted areas 
during repository operation and closure shall meet the applicable safety 
requirements set forth in 10 CFR part 20, 10 CFR part 60, and 40 CFR 
191, subpart A (see appendix II of this part).
    (2) Environment, socioeconomics, and transportation. During 
repository siting, construction, operation, closure, and decommissioning 
the public and the environment shall be adequately protected from the 
hazards posed by the disposal of radioactive waste.
    (3) Ease and cost of siting, construction, operation, and closure. 
Repository siting, construction, operation, and closure shall be 
demonstrated to be technically feasible on the basis of reasonably 
available technology, and the associated costs shall be demonstrated to 
be reasonable relative to other available and comparable siting options.

[[Page 501]]



Sec. 960.5-2  Technical guidelines.

    The technical guidelines in this subpart set forth qualifying, 
favorable, potentially adverse, and, in seven guidelines, disqualifying 
conditions for the characteristics, processes, and events that influence 
the suitability of a site relative to the preclosure system guidelines. 
These conditions are separated into three main groups: Preclosure 
radiological safety; environment, socioeconomics, and transportation; 
and ease and cost of siting, construction, operation, and closure. The 
first group includes conditions on population density and distribution, 
site ownership and control, meteorology, and offsite installations and 
operations. The second group includes conditions related to 
environmental quality and socioeconomic impacts in areas potentially 
affected by a repository and to the transportation of waste to a 
repository site. The third group includes conditions on the surface 
characteristics of the site, the characteristics of the host rock and 
surrounding strata, hydrology, and tectonics. The individual technical 
guidelines within each group, as well asthe favorable conditions and the 
potentially adverse conditions under each guideline, are not listed in 
any assumed order of importance. The technical guidelines that follow 
establish conditions that shall be considered in determining compliance 
with the qualifying conditions of the preclosure system guidelines. For 
each technical guideline, an evaluation of qualification or 
disqualification shall be made in accordance with the requirements 
specified in subpart B.

                     Preclosure Radiological Safety



Sec. 960.5-2-1  Population density and distribution.

    (a) Qualifying condition. The site shall be located such that, 
during repository operation and closure, (1) the expected average 
radiation dose to members of the public within any highly populated area 
will not be likely to exceed a small fraction of the limits allowable 
under the requirements specified in Sec. 960.5-1(a)(1), and (2) the 
expected radiation dose to any member of the public in an unrestricted 
area will not be likely to exceed the limit allowable under the 
requirements specified in Sec. 960.5-1(a)(1).
    (b) Favorable conditions. (1) A low population density in the 
general region of the site.
    (2) Remoteness of site from highly populated areas.
    (c) Potentially adverse conditions. (1) High residential, seasonal, 
or daytime population density within the projected site boundaries.
    (2) Proximity of the site to highly populated areas, or to areas 
having at least 1,000 individuals in an area 1 mile by 1 mile as defined 
by the most recent decennial count of the U.S. census.
    (d) Disqualifying conditions. A site shall be disqualified if--
    (1) Any surface facility of a repository would be located in a 
highly populated area; or
    (2) Any surface facility of a repository would be located adjacent 
to an area 1 mile by 1 mile having a population of not less than 1,000 
individuals as enumerated by the most recent U.S. census; or
    (3) The DOE could not develop an emergency preparedness program 
which meets the requirements specified in DOE Order 5500.3 (Reactor and 
Non-Reactor Facility Emergency Planning, Preparedness, and Response 
Program for Department of Energy Operations) and related guides or, when 
issued by the NRC, in 10 CFR part 60, subpart I, ``Emergency Planning 
Criteria.''



Sec. 960.5-2-2  Site ownership and control.

    (a) Qualifying condition. The site shall be located on land for 
which the DOE can obtain, in accordance with the requirements of 10 CFR 
60.121, ownership, surface and subsurface rights, and control of access 
that are required in order that surface and subsurface activities during 
repository operation and closure will not be likely to lead to 
radionuclide releases to an unrestricted area greater than those 
allowable under the requirements specified in Sec. 960.5-1(a)(1).
    (b) Favorable condition. Present ownership and control of land and 
all surface and subsurface mineral and water rights by the DOE.
    (c) Potentially adverse condition. Projected land-ownership 
conflicts that cannot be successfully resolved

[[Page 502]]

through voluntary purchase-sell agreements, nondisputed agency-to-agency 
transfers of title, or Federal condemnation proceedings.



Sec. 960.5-2-3  Meteorology.

    (a) Qualifying condition. The site shall be located such that 
expected meteorological conditions during repository operation and 
closure will not be likely to lead to radionuclide releases to an 
unrestricted area greater than those allowable under the requirements 
specified in Sec. 960.5-1(a)(1).
    (b) Favorable condition. Prevailing meteorological conditions such 
that any radioactive releases to the atmosphere during repository 
operation and closure would be effectively dispersed, thereby reducing 
significantly the likelihood of unacceptable exposure to any member of 
the public in the vicinity of the repository.
    (c) Potentially adverse conditions. (1) Prevailing meteorological 
conditions such that radioactive emissions from repository operation of 
closure could be preferentially transported toward localities in the 
vicinity of the repository with higher population densities than are the 
average for the region.
    (2) History of extreme weather phenomena--such as hurricanes, 
tornadoes, severe floods, or severe and frequent winter storms--that 
could significantly affect repository operation or closure.



Sec. 960.5-2-4  Offsite installations and operations.

    (a) Qualifying condition. The site shall be located such that 
present projected effects from nearby industrial, transportation, and 
military installations and operations, including atomic energy defense 
activities, (1) will not significantly affect repository siting, 
construction, operation, closure, or decommissioning or can be 
accommodated by engineering measures and (2), when considered together 
with emissions from repository operation and closure, will not be likely 
to lead to radionuclide releases to an unrestricted area greater than 
those allowable under the requirements specified in Sec. 960.5-1(a)(1).
    (b) Favorable condition. Absence of contributing radioactive 
releases from other nuclear installations and operations that must be 
considered under the requirements of 40 CFR 191, subpart A.
    (c) Potentially adverse conditions. (1) The presence of nearby 
potentially hazardous installations or operations that could adversely 
affect repository operation or closure.
    (2) Presence of other nuclear installations and operations, subject 
to the requirements of 40 CFR part 190 or 40 CFR part 191, subpart A, 
with actual or projected releases near the maximum value permissible 
under those standards.
    (d) Disqualifying condition. A site shall be disqualified if atomic 
energy defense activities in proximity to the site are expected to 
conflict irreconcilably with repository siting, construction, operation, 
closure, or decommissioning.

             Environment, Socioeconomics, and Transportation



Sec. 960.5-2-5  Environmental quality.

    (a) Qualifying condition. The site shall be located such that (1) 
the quality of the environment in the affected area during this and 
future generations will be adequately protected during repository 
siting, construction, operation, closure, and decommissioning, and 
projected environmental impacts in the affected area can be mitigated to 
an acceptable degree, taking into account programmatic, technical, 
social, economic, and environmental factors; and (2) the requirements 
specified in Sec. 960.5-1(a)(2) can be met.
    (b) Favorable conditions. (1) Projected ability to meet, within time 
constraints, all Federal, State, and local procedural and substantive 
environmental requirements applicable to the site and the activities 
proposed to take place thereon.
    (2) Potential significant adverse environmental impacts to present 
and future generations can be mitigated to an insignificant level 
through the application of reasonable measures, taking into account 
programmatic, technical, social, economic, and environmental factors.

[[Page 503]]

    (c) Potentially adverse conditions. (1) Projected major conflict 
with applicable Federal, State, or local environmental requirements.
    (2) Projected significant adverse environmental impacts that cannot 
be avoided or mitigated.
    (3) Proximity to, or projected significant adverse environmental 
impacts of the repository or its support facilities on, a component of 
the National Park System, the National Wildlife Refuge System, the 
National Wild and Scenic Rivers System, the National Wilderness 
Preservation System, or National Forest Land.
    (4) Proximity to, and projected significant adverse environmental 
impacts of the repository or its support facilities on, a significant 
State or regional protected resource area, such as a State park, a 
wildlife area, or a historical area.
    (5) Proximity to, and projected significant adverse environmental 
impacts of the repository and its support facilities on, a significant 
Native American resource, such as a major Indian religious site, or 
other sites of unique cultural interest.
    (6) Presence of critical habitats for threatened or endangered 
species that may be compromised by the repository or its support 
facilities.
    (d) Disqualifying conditions. Any of the following conditions shall 
disqualify a site:
    (1) During repository siting, construction, operation, closure, or 
decommissioning the quality of the environment in the affected area 
could not be adequately protected or projected environmental impacts in 
the affected area could not be mitigated to an acceptable degree, taking 
into account programmatic, technical, social, economic, and 
environmental factors.
    (2) Any part of the restricted area or repository support facilities 
would be located within the boundaries of a component of the National 
Park System, the National Wildlife Refuge System, the National 
Wilderness Preservation System, or the National Wild and Scenic Rivers 
System.
    (3) The presence of the restricted area or the repository support 
facilities would conflict irreconcilably with the previously designated 
resource-preservation use of a component of the National Park System, 
the National Wildlife Refuge System, the National Wilderness 
Preservation System, the National Wild and Scenic Rivers System, or 
National Forest Lands, or any comparably significant State protected 
resource that was dedicated to resource preservation at the time of the 
enactment of the Act.



Sec. 960.5-2-6  Socioeconomic impacts.

    (a) Qualifying condition. The site shall be located such that (1) 
any significant adverse social and/or economic impacts induced in 
communities and surrounding regions by repository siting, construction, 
operation, closure, and decommissioning can be offset by reasonable 
mitigation or compensation, as determined by a process of analysis, 
planning, and consultation among the DOE, affected State and local 
government jurisdictions, and affected Indian tribes; and (2) the 
requirements specified in Sec. 960.5-1(a)(2) can be met.
    (b) Favorable conditions. (1) Ability of an affected area to absorb 
the project-related population changes without significant disruptions 
of community services and without significant impacts on housing supply 
and demand.
    (2) Availability of an adequate labor force in the affected area.
    (3) Projected net increases in employment and business sales, 
improved community services, and increased government revenues in the 
affected area.
    (4) No projected substantial disruption of primary sectors of the 
economy of the affected area.
    (c) Potentially adverse conditions. (1) Potential for significant 
repository-related impacts on community services, housing supply and 
demand, and the finances of State and local government agencies in the 
affected area.
    (2) Lack of an adequate labor force in the affected area.
    (3) Need for repository-related purchase or acquisition of water 
rights, if such rights could have significant adverse impacts on the 
present or future development of the affected area.
    (4) Potential for major disruptions of primary sectors of the 
economy of the affected area.

[[Page 504]]

    (d) Disqualifying condition. A site shall be disqualified if 
repository construction, operation, or closure would significantly 
degrade the quality, or significantly reduce the quantity, of water from 
major sources of offsite supplies presently suitable for human 
consumption or crop irrigation and such impacts cannot be compensated 
for, or mitigated by, reasonable measures.



Sec. 960.5-2-7  Transportation.

    (a) Qualifying condition. The site shall be located such that (1) 
the access routes constructed from existing local highways and railroads 
to the site (i) will not conflict irreconcilably with the previously 
designated use of any resource listed in Sec. 960.5-2-5(d) (2) and (3); 
(ii) can be designed and constructed using reasonably available 
technology; (iii) will not require transportation system components to 
meet performance standards more stringent than those specified in the 
applicable DOT and NRC regulations, nor require the development of new 
packaging containment technology; (iv) will allow transportation 
operations to be conducted without causing an unacceptable risk to the 
public or unacceptable environmental impacts, taking into account 
programmatic, technical, social, economic, and environmental factors; 
and (2) the requirements of Sec. 960.5-1(a)(2) can be met.
    (b) Favorable conditions. (1) Availability of access routes from 
local existing highways and railroads to the site which have any of the 
following characteristics:
    (i) Such routes are relatively short and economical to construct as 
compared to access routes for other comparable siting options.
    (ii) Federal condemnation is not required to acquire rights-of-way 
for the access routes.
    (iii) Cuts, fills, tunnels, or bridges are not required.
    (iv) Such routes are free of sharp curves or steep grades and are 
not likely to be affected by landslides or rock slides.
    (v) Such routes bypass local cities and towns.
    (2) Proximity to local highways and railroads that provide access to 
regional highways and railroads and are adequate to serve the repository 
without significant upgrading or reconstruction.
    (3) Proximity to regional highways, mainline railroads, or inland 
waterways that provide access to the national transportation system.
    (4) Availability of a regional railroad system with a minimum number 
of interchange points at which train crew and equipment changes would be 
required.
    (5) Total projected life-cycle cost and risk for transportation of 
all wastes designated for the repository site which are significantly 
lower than those for comparable siting options, considering locations of 
present and potential sources of waste, interim storage facilities, and 
other repositories.
    (6) Availability of regional and local carriers--truck, rail, and 
water--which have the capability and are willing to handle waste 
shipments to the repository.
    (7) Absence of legal impediment with regard to compliance with 
Federal regulations for the transportation of waste in or through the 
affected State and adjoining States.
    (8) Plans, procedures, and capabilities for response to radioactive 
waste transportation accidents in the affected State that are completed 
or being developed.
    (9) A regional meteorological history indicating that significant 
transportation disruptions would not be routine seasonal occurrences.
    (c) Potentially adverse conditions. (1) Access routes to existing 
local highways and railroads that are expensive to construct relative to 
comparable siting options.
    (2) Terrain between the site and existing local highways and 
railroads such that steep grades, sharp switchbacks, rivers, lakes, 
landslides, rock slides, or potential sources of hazard to incoming 
waste shipments will be encountered along access routes to the site.
    (3) Existing local highways and railroads that could require 
significant reconstruction or upgrading to provide adequate routes to 
the regional and national transportation system.

[[Page 505]]

    (4) Any local condition that could cause the transportation-related 
costs, environmental impacts, or risk to public health and safety from 
waste transportation operations to be significantly greater than those 
projected for other comparable siting options.

      Ease and Cost of Siting, Construction, Operation, and Closure



Sec. 960.5-2-8  Surface characteristics.

    (a) Qualifying condition. The site shall be located such that, 
considering the surface characteristics and conditions of the site and 
surrounding area, including surface-water systems and the terrain, the 
requirements specified in Sec. 960.5-1(a)(3) can be met during 
repository siting, construction, operation, and closure.
    (b) Favorable conditions. (1) Generally flat terrain.
    (2) Generally well-drained terrain.
    (c) Potentially adverse condition. Surface characteristics that 
could lead to the flooding of surface or underground facilities by the 
occupancy and modification of flood plains, the failure of existing or 
planned man-made surface-water impoundments, or the failure of 
engineered components of the repository.



Sec. 960.5-2-9  Rock characteristics.

    (a) Qualifying condition. The site shall be located such that (1) 
the thickness and lateral extent and the characteristics and composition 
of the host rock will be suitable for accommodation of the underground 
facility; (2) repository construction, operation, and closure will not 
cause undue hazard to personnel; and (3) the requirements specified in 
Sec. 960.5-1(a)(3) can be met.
    (b) Favorable conditions. (1) A host rock that is sufficiently thick 
and laterally extensive to allow significant flexibility in selecting 
the depth, configuration, and location of the underground facility.
    (2) A host rock with characteristics that would require minimal or 
no artificial support for underground openings to ensure safe repository 
construction, operation, and closure.
    (c) Potentially adverse conditions. (1) A host rock that is suitable 
for repository construction, operation, and closure, but is so thin or 
laterally restricted that little flexibility is available for selecting 
the depth, configuration, or location of an underground facility.
    (2) In situ characteristics and conditions that could require 
engineering measures beyond reasonably available technology in the 
construction of the shafts and underground facility.
    (3) Geomechanical properties that could necessitate extensive 
maintenance of the underground openings during repository operation and 
closure.
    (4) Potential for such phenomena as thermally induced fracturing, 
the hydration and dehydration of mineral components, or other physical, 
chemical, or radiation-related phenomena that could lead to safety 
hazards or difficulty in retrieval during repository operation.
    (5) Existing faults, shear zones, pressurized brine pockets, 
dissolution effects, or other stratigraphic or structural features that 
could compromise the safety of repository personnel because of water 
inflow or construction problems.
    (d) Disqualifying condition. The site shall be disqualified if the 
rock characteristics are such that the activities associated with 
repository construction, operation, or closure are predicted to cause 
significant risk to the health and safety of personnel, taking into 
account mitigating measures that use reasonably available technology.



Sec. 960.5-2-10  Hydrology.

    (a) Qualifying condition. The site shall be located such that the 
geohydrologic setting of the site will (1) be compatible with the 
activities required for repository construction, operation, and closure; 
(2) not compromise the intended functions of the shaft liners and seals; 
and (3) permit the requirements specified in Sec. 960.5-1(a)(3) to be 
met.
    (b) Favorable conditions. (1) Absence of aquifers between the host 
rock and the land surface.
    (2) Absence of surface-water systems that could potentially cause 
flooding of the repository.
    (3) Availability of the water required for repository construction, 
operation, and closure.

[[Page 506]]

    (c) Potentially adverse condition. Ground-water conditions that 
could require complex engineering measures that are beyond reasonably 
available technology for repository construction, operation, and 
closure.
    (d) Disqualifying condition. A site shall be disqualified if, based 
on expected ground-water conditions, it is likely that engineering 
measures that are beyond reasonably available technology will be 
required for exploratory-shaft construction or for repository 
construction, operation, or closure.



Sec. 960.5-2-11  Tectonics.

    (a) Qualifying Conditions. The site shall be located in a geologic 
setting in which any projected effects of expected tectonic phenomena or 
igneous activity on repository construction, operation, or closure will 
be such that the requirements specified in Sec. 960.5-1(a)(3) can be 
met.
    (b) Favorable Condition. The nature and rates of faulting, if any, 
within the geologic setting are such that the magnitude and intensity of 
the associated seismicity are significantly less than those generally 
allowable for the construction and operation of nuclear facilities.
    (c) Potentially Adverse Conditions. (1) Evidence of active faulting 
within the geologic setting.
    (2) Historical earthquakes or past man-induced seismicity that, if 
either were to recur, could produce ground motion at the site in excess 
of reasonable design limits.
    (3) Evidence, based on correlations of earthquakes with tectonic 
processes and features, (e.g., faults) within the geologic setting, that 
the magnitude of earthquakes at the site during repository construction, 
operation, and closure may be larger then predicted from historical 
seismicity.
    (d) Disqualifying Condition. A site shall be disqualified if, based 
on the expected nature and rates of fault movement or other ground 
motion, it is likely that engineering measures that are beyond 
reasonably available technology will be required for exploratory-shaft 
construction or for repository construction, operation, or closure.

    Appendix I to Part 960--NRC and EPA Requirements for Postclosure 
                         Repository Performance

    Under proposed 40 CFR part 191, subpart B--Environmental Standards 
for Disposal, Sec. 191.13, ``Containment Requirements'', specifies that 
for 10,000 years after disposal (a) releases of radioactive materials to 
the accessible environment that are estimated to have more than one 
chance in 100 of occurring over a 10,000 year period (``reasonably 
foreseeable releases'') shall be projected to be less than the 
quantities permitted by Table 2 of that regulation's appendix; and (b) 
for ``very unlikely releases'' (i.e., those estimated to have between 
one chance in 100 and one chance in 10,000 of occurring over a 10,000 
year period), the limits specified in Table 2 would be multiplied by 10. 
The basis for Table 2 is an upper limit on long term risks of 1,000 
health effects over 10,000 years for a repository containing wastes 
generated from 100,000 metric tons of heavy metal of reactor fuel. For 
releases involving more than one radionuclide, the allowed release for 
each radionuclide is reduced to the fraction of its limit that insures 
that the overall limit on harm is not exceeded. Additionally, to provide 
confidence needed for compliance with the containment requirements 
specified above, Sec. 191.14, ``Assurance Requirements'', specifies the 
disposal of radioactive waste in accordance with seven requirements, 
relating to prompt disposal of waste; selection and design of disposal 
systems to keep releases to the accessible environment as small as 
reasonably achievable; engineered and natural barriers; nonreliance on 
active institutional controls after closure; passive controls after 
closure; natural resource areas; and design of disposal systems to allow 
future recovery of wastes.
    The guidelines will be revised as necessary after the adoption of 
final regulations by the EPA.
    The implementation of 40 CFR part 191, subpart B is required by 10 
CFR 60.112. 10 CFR 60.113 establishes minimum conditions to be met for 
engineered components and ground-water flow; specifically: (1) 
Containment of radioactive waste within the waste packages will be 
substantially complete for a period to be determined by the NRC taking 
into account the factors specified in 10 CFR 60.113(b) provided that 
such period shall be not less than 300 years nor more than 1,000 years 
after permanent closure of the geologic repository; (2) the release rate 
of any radionuclide from the engineered barrier system following the 
containment period shall not exceed one part in 100,000 per year of the 
inventory of that radionuclide calculated to be present at 1,000 years 
following permanent closure, or such other fraction of the inventory as 
may be approved or specified by the NRC, provided that this requirement 
does

[[Page 507]]

not apply to any radionuclide which is released at a rate less than 0.1% 
of the calculated total release rate limit. The calculated total release 
rate limit shall be taken to be one part in 100,000 per year of the 
inventory of radioactive waste originally emplaced in the underground 
facility that remains after 1,000 years of radioactive decay; and (3) 
the geologic repository shall be located so that pre-waste-emplacement 
ground-water travel time along the fastest path of likely radionuclide 
travel from the disturbed zone to the accessible environment shall be at 
least 1,000 years or such other travel time as may be approved or 
specified by the NRC.
    The guidelines will be revised as necessary to ensure consistency 
with 10 CFR part 60.

    Appendix II to Part 960--NRC and EPA Requirements for Preclosure 
                         Repository Performance

    Under proposed 40 CFR part 191, subpart A--Environmental Standards 
for Management and Storage, Section 191.03, ``Standards for Normal 
Operations'', specifies: (1) That operations should be conducted so as 
to reduce exposure to members of the public to the extent reasonably 
achievable, taking into account technical, social, and economic 
considerations; and (2) that, except for variances permitted for unusual 
operations under Section 191.04 as an upper limit, normal operations 
shall be conducted in such a manner as to provide reasonable assurance 
that the combined annual dose equivalent to any member of the public due 
to: (i) operations covered by 40 CFR part 190, (ii) planned discharges 
of radioactive material to the general environment from operations 
covered by this subpart, and (iii) direct radiation from these 
operations; shall not exceed 25 millirems to the whole body, 75 
millirems to the thyroid, or 25 millirems to any other organ.
    The guidelines will be revised as necessary after the adoption of 
final regulations by the EPA.
    The implementation of 40 CFR part 191, subpart A and 10 CFR part 20 
is required by 10 CFR 60.111. 10 CFR 60.111 also specifies requirements 
for waste retrieval, if necessary, including considerations of design, 
backfilling, and schedule. 10 CFR part 20 establishes (a) exposure 
limits for operating personnel and (b) permissible concentrations of 
radionuclides in uncontrolled areas for air and water. The latter are 
generally less restrictive than 40 CFR 191, subpart A, but may be 
limiting under certain conditions (i.e., if used as a maximum for short 
durations rather than annual averages).
    The guidelines will be revised as necessary to ensure consistency 
with 10 CFR part 60.

   Appendix III to Part 960--Application of the System and Technical 
                  Guidelines During the Siting Process

    1. This appendix presents a table that specifies how the guidelines 
of subparts C and D are to be applied at the principal decision points 
of the siting process. The decision points, as referenced in the table, 
are defined as follows:
    ``Potentially acceptable'' means the decision point at which a site 
is identified as potentially acceptable.
    ``Nomination and recommendation'' means the decision point at which 
a site is nominated as suitable for characterization or recommended as a 
candidate site for characterization.
    ``Repository site selection'' means the decision point at which a 
site is recommended for the development of a repository.
    2. The findings resulting from the application of a disqualifying 
condition for any particular guideline at a given decision point are 
denoted in the table by the numeral 1 or 2. The numerals 1 and 2 signify 
the types of findings that are required and are defined as follows:
    ``1'' means either of the following:
    (a) The evidence does not support a finding that the site is 
disqualified.

      or

    (b) The evidence supports a finding that the site is disqualified.
    ``2'' means either of the following:
    (a) The evidence supports a finding that the site is not 
disqualified on the basis of that evidence and is not likely to be 
disqualified.

      or

    (b) The evidence supports a finding that the site is disqualified or 
is likely to be disqualified.
    3. The findings resulting from the application of a qualifying 
condition for any particular guideline at a given decision point are 
denoted in the table by the numeral 3 or 4. The numerals 3 and 4 signify 
the types of findings that are required and are defined as follows:
    ``3'' means either of the following:
    (a) The evidence does not support a finding that the site is not 
likely to meet the qualifying condition.

      or

    (b) The evidence supports a finding that the site is not likely to 
meet the qualifying condition, and therefore the site is disqualified.
    ``4'' means either of the following:
    (a) The evidence supports a finding that the site meets the 
qualifying condition and is likely to continue to meet the qualifying 
condition.


[[Page 508]]


      or
    (b) The evidence supports a finding that the site cannot meet the 
qualifying condition or is unlikely to be able to meet the qualifying 
condition, and therefore the site is disqualified.
    4. If performance assessments are used to substantiate any of the 
above findings, those assessments shall include estimates of the effects 
of uncertainties in data and modeling.
    5. For both the disqualifying and qualifying conditions of any 
guideline, a higher finding (e.g., a ``2'' finding rather than ``1'') 
shall be made if there is sufficient evidence to support such a finding.

     Findings Resulting From the Application of the Qualifying and Disqualifying Conditions of the Technical    
                                      Guidelines at Major Siting Decisions                                      
----------------------------------------------------------------------------------------------------------------
                                                                                     Siting decision            
                                                                        ----------------------------------------
     Section 960                Guideline                Condition                                    Repository
                                                                         Potentially  Nomination and     site   
                                                                          acceptable  recommendation   selection
----------------------------------------------------------------------------------------------------------------
4-1(a)                 System....................  Qualifying..........  ...........            3             4 
4-2-1(a)               Geohydrology..............  ......do............  ...........            3             4 
4-2-1(d)               ......do..................  Disqualifying.......  ...........            1             2 
4-2-2(a)               Geochemistry..............  Qualifying..........  ...........            3             4 
4-2-3(a)               Rock Characteristics......  ......do............  ...........            3             4 
4-2-4(a)               Climatic Changes..........  ......do............  ...........            3             4 
4-2-5(a)               Erosion...................  ......do............  ...........            3             4 
4-2-5(d)               ......do..................  Disqualifying.......           1             1             2 
4-2-6(a)               Dissolution...............  Qualifying..........  ...........            3             4 
4-2-6(d)               ......do..................  Disqualifying.......           1             1             2 
4-2-7(a)               Tectonics.................  Qualifying..........  ...........            3             4 
4-2-7(d)               ......do..................  Disqualifying.......           1             1             2 
4-2-8-1(a)             Natural Resources.........  Qualifying..........  ...........            3             4 
4-2-8-1(d)(1)          ......do..................  Disqualifying.......           1             1             2 
4-2-8-1(d)(2)          ......do..................  ......do............  ...........            1             2 
4-2-8-2(a)             Site Ownership and Control  Qualifying..........  ...........            3             4 
5-1(a)(1)              System....................  ......do............  ...........            3             4 
5-1(a)(2)              ......do..................  ......do............  ...........            3             4 
5-1(a)(3)              ......do..................  ......do............  ...........            3             4 
5-2-1(a)               Population Density and      ......do............  ...........            3             4 
                        Distribution.                                                                           
5-2-1(d)(1)            ......do..................  Disqualifying.......           1             1             2 
5-2-1(d)(2)            ......do..................  ......do............           1             1             2 
5-2-1(d)(3)            ......do..................  ......do............  ...........            1             2 
5-2-2(a)               Site Ownership and Control  Qualifying..........  ...........            3             4 
5-2-3(a)               Meteorology...............  ......do............  ...........            3             4 
5-2-4(a)               Offsite Installations and   ......do............  ...........            3             4 
                        Operations.                                                                             
5-2-4(d)               ......do..................  Disqualifying.......           1             1             2 
5-2-5(a)               Environmental Quality.....  Qualifying..........  ...........            3             4 
5-2-5(d)(1)            ......do..................  Disqualifying.......  ...........            1             2 
5-2-5(d)(2)            ......do..................  ......do............           1             1             2 
5-2-5(d)(3)            ......do..................  ......do............           1             1             2 
5-2-6(a)               Socioeconomic Impacts.....  Qualifying..........  ...........            3             4 
5-2-6(d)               ......do..................  Disqualifying.......  ...........            1             2 
5-2-7(a)               Transportation............  Qualifying..........  ...........            3             4 
5-2-8(a)               Surface Characteristics...  ......do............  ...........            3             4 
5-2-9(a)               Rock Characteristics......  ......do............  ...........            3             4 
5-2-9(d)               ......do..................  Disqualifying.......  ...........            1             2 
5-2-10(a)              Hydrology.................  Qualifying..........  ...........            3             4 
5-2-10(d)              ......do..................  Disqualifying.......  ...........            1             2 
5-2-11(a)              Tectonics.................  Qualifying..........  ...........            3             4 
5-2-11(d)              ......do..................  Disqualifying.......           1             1             2 
----------------------------------------------------------------------------------------------------------------

  Appendix IV to Part 960--Types of Information for the Nomination of 
                 Sites as Suitable for Characterization

    The types of information specified below are those that the DOE 
expects will be included in the evidence used for evaluations and 
applications of the guidelines of subparts C and D at the time of 
nomination of a site as suitable for characterization. The types of 
information listed under each guideline are considered to be the most 
significant for the evaluation of that guideline. However, the types of 
information listed under any particular guideline will be used, as 
necessary, for the evaluation of any other guideline. As

[[Page 509]]

stated in Sec. 960.3-1-4-2, the DOE will use technically conservative 
assumptions or extrapolations of regional data, where necessary, to 
supplement this information. The information specified below will be 
supplemented with conceptual models, as appropriate, and analyses of 
uncertainties in the data.
    Before site-characterization studies and related nongeologic data 
gathering activities, the evidence is not expected to provide precise 
information, but, rather, to provide a reasonable basis for assessing 
the merits or shortcomings of the site against the guidelines of 
subparts C and D. Consequently, the types of information described below 
should be interpreted so as to accommodate differences among sites and 
differences in the information acquired before detailed studies.
    The specific information required for the guideline applications set 
forth in appendix III of this part is expected to differ from site to 
site because of site-specific factors, both with regard to favorable and 
potentially adverse conditions and with regard to the sources and 
reliability of the information. The types of information specified in 
this appendix will be used except where the findings set forth in 
appendix III of this part can be arrived at by reasonable alternative 
means or the information is not required for the particular site.

                    Section 960.4-2-1  Geohydrology.

    Description of the geohydrologic setting of the site, in context 
with its geologic setting, in order to estimate the pre-waste-
emplacement ground-water flow conditions. The types of information to 
support this description should include--
     Location and estimated hydraulic properties of aquifers, 
confining units, and aquitards.
     Potential areas and modes of recharge and discharge for 
aquifers.
     Regional potentiometric surfaces of aquifers.
     Likely flow paths from the repository to locations in the 
expected accessible environment, as based on regional data.
     Preliminary estimates of ground-water travel times along 
the likely flow paths from the repository to locations in the expected 
accessible environment.
     Current use of principal aquifers and State or local 
management plans for such use.

                    Section 960.4-2-2  Geochemistry.

    Description of the geochemical and hydrochemical conditions of the 
host rock, of the surrounding geohydrologic units, and along likely 
ground-water paths to locations in the expected accessible environment, 
in order to estimate the potential for the migration of radionuclides. 
The types of information to support this description should include--
     Petrology of the rocks.
     Mineralogy of the rocks and general characteristics of 
fracture fillings.
     Geochemical and mechanical stability of the minerals under 
expected repository conditions.
     General characteristics of the ground-water chemistry 
(e.g., reducing/oxidizing conditions and the principal ions that may 
affect the waste package or radionuclide behavior).
     Geochemical properties of minerals as related to 
radionuclide transport.

                Section 960.4-2-3  Rock characteristics.

    Description of the geologic and geomechanical characteristics of the 
site, in context with the geologic setting, in order to estimate the 
capability of the host rock and surrounding rock units to accommodate 
the thermal, mechanical, chemical, and radiation stresses expected to be 
induced by repository construction, operation, and closure and by 
expected interactions among the waste, host rock, ground-water, and 
engineered components of the repository system. The types of information 
to support this description should include--
     Approximate geology and stratigraphy of the site, including 
the depth, thickness, and lateral extent of the host rock and 
surrounding rock units.
     Approximate structural framework of the rock units and any 
major discontinuities identified from core samples.
     Approximate thermal, mechanical, and thermomechanical 
properties of the rocks, with consideration of the effects of time, 
stress, temperature, dimensional scale, and any major identified 
structural discontinuities.
     Estimates of the magnitude and direction of in situ stress 
and of temperature in the host rock and surrounding rock units.

                  Section 960.4-2-4  Climatic changes.

    Description of the climatic conditions of the site region, in 
context with global and regional patterns of climatic changes during the 
Quaternary Period, in order to project likely future changes in climate 
such that potential impacts on the repository can be estimated. The 
types of information to support this description should include--
     Expected climatic conditions and cycles, based on 
extrapolation of climates during the Quaternary Period.
     Geomorphology of the site region and evidence of changes 
due to climatic changes.
     Estimated effects of expected climatic cycles on the 
surface-water and the ground-water systems.

[[Page 510]]

                       Section 960.4-2-5  Erosion.

    Description of the structure, stratigraphy, and geomorphology of the 
site, in context with the geologic setting, in order to estimate the 
depth of waste emplacement and the likelihood for erosional processes to 
uncover the waste in less than one million years. The types of 
information to support this description should include--
     Depth, thickness, and lateral extent of the host rock and 
the overlying rock units.
     Lithology of the stratigraphic units above the host rock.
     Nature and rates of geomorphic processes during the 
Quaternary Period.

                     Section 960.4-2-6  Dissolution.

    Description of the stratigraphy, structure, hydrology, and 
geochemistry of the site, in context with the geologic setting, to 
delineate the approximate limits of subsurface rock dissolution, if any. 
This description should include such information as the following:
     The stratigraphy of the site, including rock units largely 
comprised of water-soluble minerals.
     The approximate extent and configuration of features 
indicative of dissolution within the geologic setting.

                      Section 960.4-2-7  Tectonics.

    Description of the tectonic setting of the site, in context with its 
geologic setting, in order to project the tectonic stability of the site 
over the next 10,000 years and to identify tectonic features and 
processes that could be reasonably expected to have a potentially 
adverse effect on the performance of the repository. The types of 
information to support this description should include--
     The tectonic history and framework of the geologic setting 
and the site.
     Quaternary faults in the geologic setting, including their 
length, displacement, and any information regarding the age of latest 
movement.
     Active tectonic processes, such as uplift, diapirism, 
tilting, subsidence, faulting, and volcanism.
     Estimate of the geothermal gradient.
     Estimate of the regional in situ stress field.
     The historical seismicity of the geologic setting.

                 Section 960.4-2-8  Human interference.

                 Section 960.4-2-8-1  Natural resources.

    Description of the mineral and energy resources of the site, in 
order to project whether past or future exploration and recovery could 
have a potentially adverse effect on the performance of the repository. 
The types of information to support this description should include--
     Known occurrences of energy and mineral resources, 
including ground water.
     Estimates of the present and projected value of these 
resources compared with resources contained in other areas of similar 
size in the geologic setting.
     Past and present drilling and mining operations in the 
vicinity of the site.

            Section 960.4-2-8-2  Site ownership and control.

    Description of the ownership of land for the geologic-repository 
operations area and the controlled area, in order to evaluate whether 
the DOE can obtain ownership of, and control access to, the site. The 
types of information to support this description should include--
     Present land ownership.

         Section 960.5-2-1  Population density and distribution.

    Description of the population density and distribution of the site 
region, in order to identify highly populated areas and the nearest 1 
mile by 1 mile area having a population greater than 1,000 persons. The 
types of information to support this description should include--
     The most-recent U.S. census, including population 
composition, distribution, and density.

             Section 960.5-2-2  Site ownership and control.

    Description of current ownership of land, including surface and 
subsurface mineral and water rights, in order to evaluate whether the 
DOE can obtain control of land within the projected restricted area. The 
types of information to support this description should include--
     Present land ownership.

                     Section 960.5-2-3  Meteorology.

    The meteorological setting, as determined from the closest recording 
station, in order to project meteorological conditions during repository 
operation and closure and their potential effects on the transport of 
airborne emissions. The types of information to support this description 
should include--
     Wind and atmospheric-dispersion characteristics.
     Precipitation characteristics.
     Extreme weather phenomena.

        Section 960.5-2-4  Offsite installations and operations.

    Description of offsite installations and operations in the vicinity 
of the site in order to estimate their projected effects on repository 
construction, operation, or closure. The types of information to support 
this description should include--
     Location and nature of nearby industrial, transportation, 
and military installations

[[Page 511]]

and operations, including atomic energy defense activities.

                Section 960.5-2-5  Environmental quality.

    Description of environmental conditions in order to estimate 
potential impacts on public health and welfare and on environmental 
quality. The types of information to support this description should 
include--
     Applicable Federal, State, and local procedural and 
substantive environmental requirements.
     Existing air quality and trends.
     Existing surface-water and ground-water quality and 
quantity.
     Existing land resources and uses.
     Existing terrestrial and aquatic vegetation and wildlife.
     Location of any identified critical habitats for threatened 
or endangered species.
     Existing aesthetic characteristics.
     Location of components of the National Park System, the 
National Wildlife Refuge System, the National Wild and Scenic Rivers 
System, the National Wilderness Preservation System, or National Forest 
Land.
     Location of significant State or regional protected 
resource areas, such as State parks, wildlife areas, or historical 
areas.
     Location of significant Native American resources such as 
major Indian religious sites, or other sites of unique cultural 
interest.

                Section 960.5-2-6  Socioeconomic impacts.

    Description of the socioeconomic conditions of the site, including 
population density and distribution, economics, community services and 
facilities, social conditions, and fiscal and government structure, in 
order to estimate the impacts that might result from site 
characterization and from the development of a repository at that site. 
The types of information to support this description should include--
     Population composition, density, and distribution.
     Economic base and economic activity, including major 
sectors of local economy.
     Employment distribution and trends by economic sector.
     Resource usage.
     Community services and infrastructure, including trends in 
use and current capacity utilization.
     Housing supply and demand.
     Life style and indicators of the quality of life.
     Existing social problems.
     Sources of, and trends in, local government expenditures 
and revenues.

                   Section 960.5-2-7  Transportation.

    Description of the transportation facilities in the vicinity of the 
site in order to evaluate existing or required access routes or 
improvements. The types of information to support this description 
should include--
     Estimates of the overall cost and risk of transporting 
waste to the site.
     Description of the road and rail network between the site 
and the nearest Interstate highways and major rail lines; also, 
description of the waterway system, if any.
     Analyses of the adequacy of the existing regional 
transportation network to handle waste shipments; the movement of 
supplies for repository construction, operation, and closure; removal of 
nonradioactive waste from the site; and the transportation of the labor 
force.
     Improvements anticipated to be required in the 
transportation network and their feasibility, cost, and environmental 
impacts.
     Compatibility of the required transportation network 
improvements with the local and regional transportation and land-use 
plans.
     Analysis of weather impacts on transportation.
     Analysis of emergency response requirements and 
capabilities related to transportation.

               Section 960.5-2-8  Surface characteristics.

    Description of the surface characteristics of the site, in order to 
evaluate whether repository construction, operation, and closure are 
feasible on the basis of site characteristics that influence those 
activities. The types of information to support this description should 
include--
     Topography of the site.
     Existing and planned surface bodies of water.
     Definition of areas of landslides and other potentially 
unstable slopes, poorly drained material, or materials of low bearing 
strength or of high liquefaction potential.

                Section 960.5-2-9  Rock characteristics.

    Description of the geologic and geomechanical characteristics of the 
site, in context with the geologic setting, in order to project the 
capability of the host rock and the surrounding rock units to provide 
the space required for the underground facility and safe underground 
openings during repository construction, operation, and closure. The 
types of information to support this description should include--
     Depth, thickness, and lateral extent of the host rock.
     Stratigraphic and structural features within the host rock 
and adjacent rock units.
     Thermal, mechanical, and thermomechanical properties and 
constructibility characteristics of the rocks, with consideration of the 
effects of time, stress, temperature, dimensional scale, and

[[Page 512]]

any major identified structural discontinuities.
     Fluid inclusions and gas content in the host rock.
     Estimates of the magnitude and direction of in situ stress 
and of temperature in the host rock.

                     Section 960.5-2-10  Hydrology.

    Description of the hydrology of the site, in context with its 
geologic setting, in order to project compatibility with repository 
construction, operation, and closure. The types of information to 
support this description should include--
     Surface-water systems, including recharge and runoff 
characteristics, and potential for flooding of the repository.
     Nature and location of aquifers, confining units, and 
aquitards.
     Potentiometric surfaces of aquifers.
     Hydraulic properties of geohydrologic units.

                     Section 960.5-2-11  Tectonics.

    Description of the tectonic setting of the site, in context with the 
regional setting, in order to estimate any expected effects of tectonic 
activity on repository construction, operation, or closure. The types of 
information to support this description should include--
     Quaternary faults.
     Active tectonic processes.
     Preliminary estimates of expected ground motion caused by 
the maximum potential earthquake within the geologic setting.



PART 961--STANDARD CONTRACT FOR DISPOSAL OF SPENT NUCLEAR FUEL AND/OR HIGH-LEVEL RADIOACTIVE WASTE--Table of Contents




                           Subpart A--General

Sec.
961.1  Purpose.
961.2  Applicability.
961.3  Definitions.
961.4  Deviations.
961.5  Federal agencies.

 Subpart B--Standard Contract for Disposal of Spent Nuclear Fuel and/or 
                      High-Level Radioactive Waste

961.11  Text of the contract.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254) 
and sec. 302, Pub. L. 97-425, 96 Stat. 2257 (42 U.S.C. 10222).

    Source: 48 FR 16599, Apr. 18, 1983, unless otherwise noted.



                           Subpart A--General



Sec. 961.1  Purpose.

    This part establishes the contractual terms and conditions under 
which the Department of Energy (DOE) will make available nuclear waste 
disposal services to the owners and generators of spent nuclear fuel 
(SNF) and high-level radioactive waste (HLW) as provided in section 302 
of the Nuclear Waste Policy Act of 1982 (Pub. L. 97-425). Under the 
contract set forth in Sec. 961.11 of this part, DOE will take title to, 
transport, and dispose of spent nuclear fuel and/or high-level 
radioactive waste delivered to DOE by those owners or generators of such 
fuel or waste who execute the contract. In addition, the contract will 
specify the fees owners and generators of SNF and/or HLW will pay for 
these services. All receipts, proceeds, and revenues realized by DOE 
under the contract will be deposited in the Nuclear Waste Fund, an 
account established by the Act in the U.S. Treasury. This fund will pay 
for DOE's radioactive waste disposal activities, the full costs of which 
will be borne by the owners and generators under contract with DOE for 
disposal services.



Sec. 961.2  Applicability.

    This part applies to the Secretary of Energy or his designee and any 
person who owns or generates spent nuclear fuel or high-level 
radioactive waste, of domestic origin, generated in a civilian nuclear 
power reactor. If executed in a timely manner, the contract contained in 
this part will commit DOE to accept title to, transport, and dispose of 
such spent fuel and waste. In exchange for these services, the owners or 
generators of such fuel or waste shall pay fees specified in the 
contract which are intended to recover fully the costs of the disposal 
services to be furnished by DOE. The contract must be signed by June 30, 
1983, or by the date on which such owner or generator commences 
generation of, or takes title to, such spent fuel or waste, whichever 
occurs later.



Sec. 961.3  Definitions.

    For purposes of this part--

[[Page 513]]

    Act means the Nuclear Waste Policy Act of 1982, Public Law 97-425, 
96 Stat. 2201 et seq., 42 U.S.C. 10101 et seq.
    Contract means the agreement set forth in Sec. 961.11 of this part 
and any duly executed amendment or modification thereto.
    Generator means any person who is licensed by the Nuclear Regulatory 
Commission to use a utilization or production facility under the 
authority of section 103 or 104 of the Atomic Energy Act of 1954 (42 
U.S.C. 2133, 2134).
    Owner means any person who has title to spent nuclear fuel or high-
level radioactive waste.
    Purchaser means any person, other than a Federal agency, who is 
licensed by the Nuclear Regulatory Commission to use a utilization or 
production facility under the authority of sections 103 or 104 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2133, 2134) or who has title to 
spent nuclear fuel or high level radioactive waste and who has executed 
a contract with DOE.
    Secretary means the Secretary of Energy of his designee.

Other definitions relating to the subject matter of this rule are set 
forth in Article II of the contract which is contained in Sec. 961.11, 
Text of the contract, of this part.



Sec. 961.4  Deviations.

    Requests for authority to deviate from this part shall be submitted 
in writing to the Contracting Officer, who shall forward the request for 
approval to the Senior Procurement Official, Headquarters. Each request 
for deviation shall contain the following information:
    (a) A statement of the deviation desired, including identification 
of the specific paragraph number(s) of the contract;
    (b) A description of the intended effect of the deviation;
    (c) The reason why the deviation is considered necessary or would be 
in the best interests of the Government;
    (d) The name of the owner or generator seeking the deviation and 
nuclear power reactor(s) affected;
    (e) A statement as to whether the deviation has been requested 
previously and, if so, circumstances of the previous request;
    (f) A statement of the period of time for which the deviation is 
needed; and
    (g) Any pertinent background information will contribute to a full 
understanding of the desired deviation.



Sec. 961.5  Federal agencies.

    Federal agencies or departments requiring DOE's disposal services 
for SNF and/or HLW will be accommodated by a suitable interagency 
agreement reflecting, as appropriate, the terms and conditions set forth 
in the contract in Sec. 961.11; Provided, however, that the fees to be 
paid by Federal agencies will be equivalent to the fees that would be 
paid under the contract.



 Subpart B--Standard Contract for Disposal of Spent Nuclear Fuel and/or 
                      High-Level Radioactive Waste



Sec. 961.11  Text of the contract.

    The text of the standard contract for disposal of spent nuclear fuel 
and/or high/level radioactive waste follows:

               U.S. Department of Energy Contract No. ----

     Contract for Disposal of Spent Nuclear Fuel and/or High-Level 
                            Radioactive Waste

    THIS CONTRACT, entered into this -- day of ------ 19--, by and 
between the UNITED STATES OF AMERICA (hereinafter referred to as the 
``Government''), represented by the UNITED STATES DEPARTMENT OF ENERGY 
(hereafter referred to as ``DOE'') and ------------, (hereinafter 
referred to as the ``Purchaser''), a corporation organized and existing 
under the laws of the State of ------------ [add as applicable: ``acting 
on behalf of itself and ------.''].
    Witnesseth that:
    Whereas, the DOE has the responsibility for the disposal of spent 
nuclear fuel and high-level radioactive waste of domestic origin from 
civilian nuclear power reactors in order to protect the public health 
and safety, and the environment; and
    Whereas, the DOE has the responsibility, following commencement of 
operation of a repository, to take title to the spent nuclear fuel or 
high-level radioactive waste involved as expeditiously as practicable 
upon the request of the generator or owner of such waste or spent 
nuclear fuel; and
    Whereas, all costs associated with the preparation, transportation, 
and the disposal

[[Page 514]]

of spent nuclear fuel and high-level radioactive waste from civilian 
nuclear power reactors shall be borne by the owners and generators of 
such fuel and waste; and
    Whereas, the DOE is required to collect a full cost recovery fee 
from owners and generators delivering to the DOE such spent nuclear fuel 
and/or high level radioactive waste; and
    Whereas, the DOE is authorized to enter into contracts for the 
permanent disposal of spent nuclear fuel and/or high-level radioactive 
waste of domestic origin in DOE facilities; and
    Whereas, the Purchaser desires to obtain disposal services from DOE; 
and
    Whereas, DOE is obligated and willing to provide such disposal 
services, under the terms and conditions hereinafter set forth; and
    Whereas, this contract is made and entered into under the authority 
of the DOE Organization Act (Pub. L. 95-91, 42 U.S.C. 7101 et seq.) and 
the Nuclear Waste Policy Act of 1982 (Pub. L. 97-425, 42 U.S.C. 10101 et 
seq.)
    Now, therefore, the parties hereto do hereby agree as follows:

                         Article I--Definitions

    As used throughout this contract, the following terms shall have the 
meanings set forth below:
    1. The term assigned three-month period means the period that each 
Purchaser will be assigned by DOE, giving due consideration to the 
Purchaser's assignment preference, for purposes of reporting kilowatt 
hours generated by the Purchaser's nuclear power reactor and for 
establishing fees due and payable to DOE.
    2. The term cask means a container for shipping spent nuclear fuel 
and/or high-level radioactive waste which meets all applicable 
regulatory requirements.
    3. The term civilian nuclear power reactor means a civilian nuclear 
powerplant required to be licensed under sections 103 or 104(b) of the 
Atomic Energy Act of 1954, as amended (42 U.S.C. 2133, 2134(b)).
    4. The term Commission means the United states Nuclear Regulatory 
Commission.
    5. The term contract means this agreement and any duly executed 
amendment or modification thereto.
    6. The term Contracting Officer means the person executing this 
contract on behalf of the Government, and any other officer or civilian 
employee who is a properly disignated Contracting Officer of the DOE; 
and the term includes, except as otherwise provided in this contract, 
the authorized representative of a Contracting Officer acting within the 
limits of his authority.
    7. The term delivery means the transfer of custody, f.o.b. carrier, 
of spent nuclear fuel or high-level radioactive waste from Purchaser to 
DOE at the Purchaser's civilian nuclear power reactor or such other 
domestic site as may be designated by the Purchaser and approved by DOE.
    8. The term disposal means the emplacement in a repository of high-
level radioactive waste, spent nuclear fuel, or other highly radioactive 
waste with no foreseeable intent of recovery, whether or not such 
emplacement permits recovery of such waste.
    9. The term DOE means the United States Department of Energy or any 
duly authorized representative thereof, including the Contracting 
Officer.
    10. The term DOE facility means a facility operated by or on behalf 
of DOE for the purpose of disposing of spent nuclear fuel and/or high-
level radioactive waste, or such other facility(ies) to which spent 
nuclear fuel and/or high-level radioactive waste may be shipped by DOE 
prior to its transportation to a disposal facility.
    11. The term full cost recovery, means the recoupment by DOE, 
through Purchaser fees and any interest earned, of all direct costs, 
indirect costs, and all allocable overhead, consistent with generally 
accepted accounting principles consistently applied, of providing 
disposal services and conducting activities authorized by the Nuclear 
Waste Policy Act of 1982 (Pub. L. 97-425). As used herein, the term cost 
includes the application of Nuclear Waste Fund moneys for those uses 
expressly set forth in section 302 (d) and (e) of the said Act and all 
other uses specified in the Act.
    12. The term high-level radioactive waste (HLW) means--
    (a) the highly radioactive material resulting from the reprocessing 
of spent nuclear fuel, including liquid waste produced directly in 
reprocessing and any solid material derived from such liquid waste that 
contains fission products in sufficient concentrations; and
    (b) other highly radioactive material that the Commission, 
consistent with existing law, determines by rule requires permanent 
isolation.
    13. The term electricity (kilowatt hours) generated and sold means 
gross electrical output produced by a civilian nuclear power reactor 
measured at the output terminals of the turbine generator minus the 
normal onsite nuclear station service loads during the time electricity 
is being generated multiplied by the total energy adjustment factor. For 
purposes of this provision, the following definition shall apply:
    a. The term Total Energy Adjustment Factor (TEAF) means the sum of 
individual owners' weighted energy adjustment factors.
    b. The term Weighted Energy Adjustment Factor (WEAF) means the 
product of an owner's energy adjustment factor times the owner's share 
of the plant.
    c. The term Owner's Energy Adjustment Factor (OEAF) means the sum of 
the individual

[[Page 515]]

owner's adjustment for sales to ultimate consumers and adjustment for 
sales for resale.
    d. The term Owner's Share of the plant (OS) means the owner's 
fraction of metered electricity sales, the owner's fraction of plant 
ownership, or the sponsor company's fixed entitlement percentage of the 
plant's output. This definition includes joint owners of generating 
companies or participants in a generation and transmission cooperative.
    e. The term Adjustment for Sales to ultimate Consumer (ASC) means 
the owner's fraction of sales to the ultimate consumer multiplied by the 
owner's sales to ultimate consumer adjustment factor.
    f. The term Fraction of Sales to ultimate Consumer (FSC) means the 
owner's fractional quantity of electricity sold to the ultimate consumer 
relative to the total of electricity sales (sales to ultimate consumers 
plus the sales for resale).
    g. The term Sales to ultimate Consumer Adjustment Factor (SCAF) 
means one minus the quotient of all electricity lost or otherwise not 
sold for each owner divided by the total electricity available for 
disposition to ultimate consumers. Electricity lost or otherwise not 
sold includes:
    (1) Energy furnished without charge;
    (2) Energy used by the company;
    (3) Transmission losses;
    (4) Distribution losses; and
    (5) Other unaccounted losses as reported to the Federal Government 
``Annual Report of Major Electric Utilities, Licensees and Others,'' 
Federal Energy Regulatory Commission (FERC) Form No.1; Rural 
Electrification Administration (REA) Forms 7 and 11 if appropriate; or 
the ``Annual Electric Utility Report,'' Energy Information 
Administration (EIA) Form EIA-861.
    h. The term Total Electricity Available for Disposition to Ultimate 
Consumers means the reporting year's total of all of a utility's 
electricity supply which is available for disposition, expressed in 
kilowatt hours, and is equal to the sum of the energy sources minus the 
electricity sold for resale by the utility.
    i. The term Adjustment for Sales for Resale (ASR) means the owner's 
fraction of sales for resale multiplied by the national average 
adjustment factor.
    j. The term Fraction of Sales for Resale (FSR) means the owner's 
fractional quantity of electricity sold for resale by the utility 
relative to the total of electricity sales.
    k. The term National Average Adjustment Factor (NAF) means the ratio 
of the national total of electricity sold to the national total of 
electricity available for disposition, based on the most recent 3 years 
of national data provided to the Federal Government, and will be set by 
the Contracting Officer. This term will be evaluated annually and 
revised in increments of .005.
    l. Pumped storage losses. If the proportion of nuclear generated 
electricity consumed by a pumped-storage hydro facility can be measured 
or estimated and if the electricity losses associated with pumped 
storage facilities can be documented (e.g. based on routine and uniform 
records of district power data on contributions from different 
electricity sources), a prorated nuclear share shall be allowed as an 
offset to gross electricity generation reported on the annex A of 
appendix G, NWPA-830G form. Specific methodologies for calculating these 
offsets must be approved by the Contracting Officer in advance.
    Instructions to annex A of appendix G, NWPA-830G provide the 
necessary information to calculate the energy adjustment factors.
    14. The term metric tons uranium means that measure of weight, 
equivalent to 2,204.6 pounds of uranium and other fissile and fertile 
material that are loaded into a reactor core as fresh fuel.
    15. The term Purchaser's site means the location of Purchaser's 
civilian nuclear power reactor or such other location as the Purchaser 
may designate.
    16. The term quarterly Treasury rate means the current value of 
funds rate as specified by the Treasury Fiscal Requirements Manual, 
Volume 1, Part 6, section 8020.20. This rate is published quarterly in 
the Federal Register prior to the beginning of the affected quarter.
    17. The term shipping lot means a specified quantity of spent 
nuclear fuel or high-level radioactive waste designated by Purchaser for 
delivery to DOE beginning on a specified date.
    18. The term spent nuclear fuel (SNF) means fuel that has been 
withdrawn from a nuclear reactor following irradiation, the 
consistituent elements of which have not been separated by reprocessing.
    19. The term spent nuclear fuel and high-level radioactive waste of 
domestic origin means irradiated fuel material used, and radioactive 
wastes resulting from such use, in nuclear power reactors located only 
in the United States.
    20. The term year means the period which begins on October 1 and 
ends on September 30.

                            Article II--Scope

    This contract applies to the delivery by Purchaser to DOE of SNF 
and/or HLW of domestic origin from civilian nuclear power reactors, 
acceptance of title by DOE to such SNF and/or HLW, subsequent 
transportation, and disposal of such SNF and/or HLW and, with respect to 
such material, establishes the fees to be paid by the Purchaser for the 
services to be rendered hereunder by DOE. The SNF and/or HLW shall be 
specified in a delivery commitment schedule as provided

[[Page 516]]

in Article V below. The services to be provided by DOE under this 
contract shall begin, after commencement of facility operations, not 
later than January 31, 1998 and shall continue until such time as all 
SNF and/or HLW from the civilian nuclear power reactors specified in 
appendix A, annexed hereto and made a part hereof, has been disposed of.

                            Article III--Term

    The term of this contract shall be from the date of execution until 
such time as DOE has accepted, transported from the Purchaser's site(s) 
and disposed of all SNF and/or HLW of domestic origin from the civilian 
nuclear power reactor(s) specified in appendix A.

               Article IV--Responsibilities of the Parties

                     A. Purchaser's Responsibilities

    1. Discharge Information.
    (a) On an annual basis, commencing October 1, 1983, the Purchaser 
shall provide DOE with information on actual discharges to date and 
projected discharges for the next ten (10) years in the form and content 
set forth in appendix B, annexed hereto and made a part hereof. The 
information to be provided will include estimates and projections and 
will not be Purchaser's firm commitment with respect to discharges or 
deliveries.
    (b) No later than October 1, 1983, the Purchaser shall provide DOE 
with specific information on:
    (1) Total spent nuclear fuel inventory as of April 7, 1983;
    (2) Total number of fuel assemblies removed from the particular 
reactor core prior to 12:00 a.m. April 7, 1983 for which there are plans 
for reinsertion in the core, indicating the current planned dates for 
reinsertion in the core. Estimates of the burned and unburned portion of 
each individual assembly are to be provided.
    (c) In the event that the Purchaser fails to provide the annual 
forecast in the form and content required by DOE, DOE may, in its sole 
discretion, require a rescheduling of any delivery commitment schedule 
then in effect.
    2. Preparation for Transportation.
    (a) The Purchaser shall arrange for, and provide, all preparation, 
packaging, required inspections, and loading activities necessary for 
the transportation of SNF and/or HLW to the DOE facility. The Purchaser 
shall notify DOE of such activities sixty (60) days prior to the 
commencement of such activities. The preparatory activities by the 
Purchaser shall be made in accordance with all applicable laws and 
regulations relating to the Purchaser's responsibilities hereunder. DOE 
may designate a representative to observe the preparatory activities 
conducted by the Purchaser at the Purchaser's site, and the Purchaser 
shall afford access to such representative.
    (b) Except as otherwise agreed to by DOE, the Purchaser shall advise 
DOE, in writing as specified in appendix F, annexed hereto and made a 
part hereof, as to the description of the material in each shipping lot 
sixty (60) days prior to scheduled DOE transportation of that shipping 
lot.
    (c) The Purchaser shall be responsible for incidental maintenance, 
protection and preservation of any and all shipping casks furnished to 
the Purchaser by DOE for the performance of this contract. The Purchaser 
shall be liable for any loss of or damage to such DOE-furnished 
property, and for expenses incidental to such loss or damage while such 
casks are in the possession and control of the Purchaser except as 
otherwise provided for hereunder. Routine cask maintenance, such as 
scheduled overhauls, shall not be the responsibility of the Purchaser.

                         B. DOE Responsibilities

    1. DOE shall accept title to all SNF and/or HLW, of domestic origin, 
generated by the civilian nuclear power reactor(s) specified in appendix 
A, provide subsequent transportation for such material to the DOE 
facility, and dispose of such material in accordance with the terms of 
this contract.
    2. DOE shall arrange for, and provide, a cask(s) and all necessary 
transportation of the SNF and/or HLW from the Purchaser's site to the 
DOE facility. Such cask(s) shall be furnished sufficiently in advance to 
accommodate scheduled deliveries. Such cask(s) shall be suitable for use 
at the Purchaser's site, meet applicable regulatory requirements, and be 
accompanied by pertinent information including, but not limited to, the 
following:
    (a) Written procedures for cask handling and loading, including 
specifications on Purchaser-furnished cannisters for containment of 
failed fuel;
    (b) Training for Purchaser's personnel in cask handling and loading, 
as may be necessary;
    (c) Technical information, special tools, equipment, lifting 
trunnions, spare parts and consumables needed to use and perform 
incidental maintenance on the cask(s); and
    (d) Sufficient documentation on the equipment supplied by DOE.
    3. DOE may fulfill any of its obligations, or take any action, under 
this contract either directly or through contractors.
    4. DOE shall annually provide to the Purchaser pertinent information 
on the waste disposal program including information on cost projections, 
project plans and progress reports.
    5. (a) Beginning on April 1, 1991, DOE shall issue an annual 
acceptance priority ranking for receipt of SNF and/or HLW at the DOE

[[Page 517]]

repository. This priority ranking shall be based on the age of SNF and/
or HLW as calculated from the date of discharge of such material from 
the civilian nuclear power reactor. The oldest fuel or waste will have 
the highest priority for acceptance, except as provided in paragraphs B 
and D of Article V and paragraph B.3 of Article VI hereof.
    (b) Beginning not later than July 1, 1987, DOE shall issue an annual 
capacity report for planning purposes. This report shall set forth the 
projected annual receiving capacity for the DOE facility(ies) and the 
annual acceptance ranking relating to DOE contracts for the disposal of 
SNF and/or HLW including, to the extent available, capacity information 
for ten (10) years following the projected commencement of operation of 
the initial DOE facility.

                  Article V--Delivery of SNF and/or HLW

                      A. Description of SNF and HLW

    The Purchaser shall deliver to DOE and DOE shall, as provided in 
this contract, accept the SNF and/or HLW which is described in 
accordance with Article VI.A. of this contract, for disposal thereof.

                     B. Delivery Commitment Schedule

    1. Delivery commitment schedule(s), in the form set forth in 
appendix C annexed hereto and made a part hereof, for delivery of SNF 
and/or HLW shall be furnished to DOE by Purchaser. After DOE has issued 
its proposed acceptance priority ranking, as described in paragraph B.5 
of Article IV hereof, beginning January 1, 1992 the Purchaser shall 
submit to DOE the delivery commitment schedule(s) which shall identify 
all SNF and/or HLW the Purchaser wishes to deliver to DOE beginning 
sixty-three (63) months thereafter. DOE shall approve or disapprove such 
schedules within three (3) months after receipt. In the event of 
disapproval, DOE shall advise the Purchaser in writing of the reasons 
for such disapproval and request a revised schedule from the Purchaser, 
to be submitted to DOE within thirty (30) days after receipt of DOE's 
notice of disapproval.
    2. DOE shall approve or disapprove such revised schedule(s) within 
sixty (60) days after receipt. In the event of disapproval, DOE shall 
advise the Purchaser in writing of the reasons for such disapproval and 
shall submit its proposed schedule(s). If these are not acceptable to 
the Purchaser, the parties shall promptly seek to negotiate mutually 
acceptable schedule(s). Purchaser shall have the right to adjust the 
quantities of SNF and/or HLW plus or minus (plus-minus) 
twenty percent (20%), and the delivery schedule up to two (2) months, 
until the submission of the final delivery schedule.

                       C. Final Delivery Schedule

    Final delivery schedule(s), in the form set forth in appendix D, 
annexed hereto and made a part hereof, for delivery of SNF and/or HLW 
covered by an approved delivery commitment schedule(s) shall be 
furnished to DOE by Purchaser. The Purchaser shall submit to DOE final 
delivery schedules not less than twelve (12) months prior to the 
delivery date specified therein. DOE shall approve or disapprove a final 
delivery schedule within forty-five (45) days after receipt. In the 
event of disapproval, DOE shall advise the Purchaser in writing of the 
reasons for such disapproval and shall request a revised schedule from 
the Purchaser, to be submitted to DOE within thirty (30) days after 
receipt of DOE's notice of disapproval. DOE shall approve or disapprove 
such revised schedule(s) within sixty (60) days after receipt. In the 
event of disapproval, DOE shall advise the Purchaser in writing of the 
reasons for such disapproval and shall submit its proposed schedule(s). 
If these are not acceptable to the Purchaser, the parties shall promptly 
seek to negotiate mutually acceptable schedule(s).

                         D. Emergency Deliveries

    Emergency deliveries of SNF and/or HLW may be accepted by DOE before 
the date provided in the delivery commitment schedule upon prior written 
approval by DOE.

                              E. Exchanges

    Purchaser shall have the right to determine which SNF and/or HLW is 
delivered to DOE; provided, however, that Purchaser shall comply with 
the requirements of this contract. Purchaser shall have the right to 
exchange approved delivery commitment schedules with parties to other 
contracts with DOE for disposal of SNF and/or HLW; provided, however, 
that DOE shall, in advance, have the right to approve or disapprove, in 
its sole discretion, any such exchanges. Not less than six (6) months 
prior to the delivery date specified in the Purchaser's approved 
delivery commitment schedule, the Purchaser shall submit to DOE an 
exchange request, which states the priority rankings of both the 
Purchaser hereunder and any other Purchaser with whom the exchange of 
approved delivery commitment schedules is proposed. DOE shall approve or 
disapprove the proposed exchange within thirty (30) days after receipt. 
In the event of disapproval, DOE shall advise the Purchaser in writing 
of the reasons for such disapproval.

                    Article VI--Criteria for Disposal

                         A. General Requirements

    1. Criteria.
    (a) Except as otherwise provided in this contract, DOE shall accept 
hereunder only

[[Page 518]]

such SNF and/or HLW which meets the General Specifications for such fuel 
and waste as set forth in appendix E, annexed hereto and made a part 
hereof.
    (b) Purchaser shall accurately classify SNF and/or HLW prior to 
delivery in accordance with paragraphs B and D of appendix E.
    2. Procedures.
    (a) Purchaser shall provide to DOE a detailed description of the SNF 
and/or HLW to be delivered hereunder in the form and content as set 
forth in appendix F, annexed hereto and made a part hereof. Purchaser 
shall promptly advise DOE of nay changes in said SNF and/or HLW as soon 
as they become known to the purchaser.
    (b) DOE's obligation for disposing of SNF under this contract also 
extends to other than standard fuel; however, for any SNF which has been 
designated by the Purchaser as other than standard fuel, as that term is 
defined in appendix E, the Purchaser shall obtain delivery and procedure 
confirmation from DOE prior to delivery. DOE shall advise Purchaser 
within sixty (60) days after receipt of such confirmation request as to 
the technical feasibility of disposing of such fuel on the currently 
agreed to schedule and any schedule adjustment for such services.

                        B. Acceptance Procedures

    1. Acceptance Priority Ranking.
    Delivery commitment schedules for SNF and/or HLW may require the 
disposal or more material than the annual capacity of the DOE disposal 
facility (or facilities) can accommodate. The following acceptance 
priority ranking will be utilized:
    (a) Except as may be provided for in subparagraph (b) below and 
Article V.D. of this contract, acceptance priority shall be based upon 
the age of the SNF and/or HLW as calculated from the date of discharge 
of such material from the civilian nuclear power reactor. DOE will first 
accept from Purchaser the oldest SNF and/or HLW for disposal in the DOE 
facility, except as otherwise provided for in paragraphs B and D of 
Article V.
    (b) Notwithstanding the age of the SNF and/or HLW, priority may be 
accorded any SNF and/or HLW removed from a civilian nuclear power 
reactor that has reached the end of its useful life or has been shut 
down permanently for whatever reason.
    2. Verification of SNF and/or HLW.
    During cask loading and prior to acceptance by DOE for 
transportation to the DOE facility, the SNF and/or HLW description of 
the shipping lot shall be subject to verification by DOE. To the extent 
the SNF and/or HLW is consistent with the description submitted and 
approved, in accordance with appendices E and F, DOE agrees to accept 
such SNF and/or HLW for disposal when DOE has verified the SNF and/or 
HLW description, determined the material is properly loaded, packaged, 
marked, labeled and ready for transportation, and has taken custody, as 
evidenced in writing, of the material at the Purchaser's site, f.o.b. 
carrier. A properly executed off-site radioactive shipment record 
describing cask contents must be prepared by the Purchaser along with a 
signed certification which states: ``This is to certify that the above-
named materials are properly described, classified, packaged, marked and 
labeled and are in proper condition for transfer according to the 
applicable regulations of the U. S. Department of Transportation.''
    3. Improperly described SNF and/or HLW.
    (a) Prior to Acceptance-- If SNF and/or HLW is determined by DOE to 
be improperly described prior to acceptance by DOE at the Purchaser's 
site, DOE shall promptly notify the Purchaser in writing of such 
determination. DOE reserves the right, in its sole discretion, to refuse 
to accept such SNF and/or HLW until the SNF and/or HLW has been properly 
described. The Purchaser shall not transfer such SNF and/or HLW to DOE 
unless DOE agrees to accept such SNF and/or HLW under such other 
arrangements as may be agreed to, in writing, by the parties.
    (b) After Acceptance-- If subsequent to its acceptance DOE finds 
that such SNF and/or HLW is improperly described, DOE shall promptly 
notify the Purchaser, in writing, of such finding. In the event of such 
notification, Purchaser shall provide DOE with a proper designation 
within thirty (30) days. In the event of a failure by the Purchaser to 
provide such proper designation, DOE may hold in abeyance any and all 
deliveries scheduled hereunder.

                           Article VII--Title

    Title to all SNF and/or HLW accepted by DOE for disposal shall pass 
to DOE at the Purchaser's site as provided for in Article VI hereof. DOE 
shall be solely repsonsible for control of all material upon passage of 
title. DOE shall have the right to dispose as it sees fit of any SNF 
and/or HLW to which it has taken title. The Purchaser shall have no 
claim against DOE or the Government with respect to such SNF or HLW nor 
shall DOE or the Government be obligated to compensate the Purchaser for 
such material.

                 Article VIII--Fees and Terms of Payment

                                 A. Fees

    1. Effective April 7, 1983, Purchaser shall be charged a fee in the 
amount of 1.0 mill per kilowatt hour (1M/kWh) electricity generated and 
sold.
    2. For SNF, or solidified high-level radioactive waste derived from 
SNF, which fuel was used to generate electricity in a civilian nuclear 
power reactor prior to April 7, 1983, a one-time fee will be assessed by 
applying industry-wide average dollar per kilogram charges to four (4) 
distinct ranges of fuel burnup so that the integrated cost across all

[[Page 519]]

discharged (i.e. spent) fuel is equivalent to an industry-wide average 
charge of 1.0 mill per kilowatt-hour. For purposes of this contract, 
discharged nuclear fuel is that fuel removed from the reactor core with 
no plans for reinsertion. In the event that any such fuel withdrawn with 
plans for reinsertion is not reinserted, then the applicable fee for 
such fuel shall be calculated as set forth in this paragraph 2. The 
categories of spent nuclear fuel burnup and the fee schedule are listed 
below:

                            [In 1982 dollars]                           
------------------------------------------------------------------------
                                                                 Dollars
                Nuclear spent fuel burnup range                    per  
                                                                kilogram
------------------------------------------------------------------------
0 to 5,000 MWDT/MTU...........................................    $80.00
5,000 to 10,000 MWDT/MTU......................................    142.00
10,000 to 20,000 MWDT/MTU.....................................    162.00
Over 20,000 MWDT/MTU..........................................    184.00
------------------------------------------------------------------------

    This fee shall not be subject to adjustment, and the payment thereof 
by the Purchaser shall be made to DOE as specified in paragraph B of 
this Article VIII.
    3. For in-core fuel as of April 7, 1983, that portion of the fuel 
burned through April 6, 1983 shall be subject to the one-time fee as 
calculated in accordance with the following methodology: [a] determine 
the total weight in kilograms of unranium loaded initially in the 
particular core; [b] determine the total megawatt-days (thermal) which 
have been generated by all of the fuel assemblies in the said core as of 
12:00 A.M. April 7, 1983; [c] divide the megawatt-days (thermal) 
generated in the said core by the total metric tons of initially loaded 
uranium in that core and multiply the quotient by the conversion factor 
0.0078 to obtain a value in dollars per kilogram; and [d] multiply the 
dollars per kilogram value by the kilograms determined in [a] above to 
derive the dollar charge for the one-time fee to be paid for the 
specified in-core fuel as of 12:00 A.M. April 7, 1983. For purposes of 
this contract, in-core fuel is that fuel in the reactor core as of the 
date specified, plus any fuel removed from the reactor with plans for 
reinsertion. That portion of such fuel unburned as of 12:00 A.M. April 
7, 1983 shall be subject to the 1.0 mill per kilowatt-hour charge.
    4. DOE will annually review the adequacy of the fees and adjust the 
1M/KWH fee, if necessary, in order to assure full cost recovery by the 
Government. Any proposed adjustment to the said fee will be transmitted 
to Congress and shall be effective after a period of ninety (90) days of 
continuous session has elapsed following receipt of such transmittal 
unless either House of Congress adopts a resolution disapproving the 
proposed adjustment. Any adjustment to the 1M/KWH fee under paragraph 
A.1. of this Article VIII shall be prospective.

                               B. Payment

    1. For electricity generated and sold by the Purchaser's civilian 
nuclear power reactor(s) on or after April 7, 1983, fees shall be paid 
quarterly by the Purchaser and must be received by DOE not later than 
the close of the last business day of the month following the end of 
each assigned 3-month period. The first payment shall be due on July 31, 
1983, for the period April 7, 1983, to June 30, 1983. (Add as 
applicable: A one-time adjustment period payment shall be due on 
__________, for the period __________ to __________.) The assigned 3-
month period, for purposes of payment and reporting of electricity 
generated and sold shall begin __________.
    2. For SNF discharged prior to April 7, 1983, and for in-core burned 
fuel as of 12:00 A.M. April 7, 1983, the Purchaser shall, within two (2) 
years of contract execution, select one of the following fee payment 
options:
    (a) Option 1-- The Purchaser's financial obligation for said fuel 
shall be prorated evenly over forty (40) quarters and will consist of 
the fee plus interest on the outstanding fee balance. The interest from 
April 7, 1983, to date of the first payment is to be calculated based 
upon the 13-week Treasury bill rate, as reported on the first such 
issuance following April 7, 1983, and compounded quarterly thereafter by 
the 13-week Treasury bill rates as reported on the first such issuance 
of each succeeding assigned three-month period. Beginning with the first 
payment, interest is to be calculated on Purchaser's financial 
obligation plus accrued interest, at the ten-year Treasury note rate in 
effect on the date of the first payment. In no event shall the end of 
the forty (40) quarters extend beyond the first scheduled delivery date 
as reflected in the DOE-approved delivery commitment schedule. All 
payments shall be made concurrently with the assigned three month period 
payments. At any time prior to the end of the forty (40) quarters, 
Purchaser may, without penalty, make a full or partial lump sum payment 
at any of the assigned three month period payment dates. Subsequent 
quarterly payments will be appropriately reduced to reflect the 
reduction in the remaining balance in the fee due and payable. The 
remaining financial obligation, if any, will be subject to interest at 
the same ten-year Treasury note rate over the remainder of the ten year 
period.
    (b) Option 2-- The Purchaser's financial obligation shall be paid in 
the form of a single payment anytime prior to the first delivery, as 
reflected in the DOE approved delivery commitment schedule, and shall 
consist of the fee plus interest on the outstanding fee balance. 
Interest is to be calculated from April 7, 1983, to the date of the 
payment based upon the 13-week Treasury bill rate, as reported on the 
first such issuance following April 7, 1983, and compounded quarterly

[[Page 520]]

thereafter by the 13-week Treasury bill rates as reported on the first 
such issuance of each succeeding assigned three-month period until 
payment.
    (c) Option 3-- The Purchaser's financial obligation shall be paid 
prior to June 30, 1985, or prior to two (2) years after contract 
execution, whichever comes later, in the form of a single payment and 
shall consist of all outstanding fees for SNF and in-core fuel burned 
prior to April 7, 1983. Under this option, no interest shall be due to 
DOE from April 7, 1983, to the date of full payment on the outstanding 
fee balance.
    3. Method of Payment:
    (a) Payments shall be made by wire transfer, in accordance with 
instructions specified by DOE in appendix G, annexed hereto and made a 
part hereof, and must be received within the time periods specified in 
paragraph B.1. of this Article VIII.
    (b) The Purchaser will complete a Standard Remittance Advice, as set 
forth in appendix G, for each assigned three month period payment, and 
mail it postmarked no later than the last business day of the month 
following each assigned three month period to Department of Energy, 
Office of Controller, Cash Management Division, Box 500, Room D-208, 
Germantown, Maryland 20874.
    4. Any fees not paid on a timely basis or underpaid because of 
miscalculation will be subject to interest as specified in paragraph C 
of this Article VIII.

                        C. Interest on Late Fees

    1. DOE will notify the Purchaser of amounts due only when unpaid or 
underpaid by the dates specified in paragraph B above. Interest will be 
levied according to the following formula:
Interest=Unpaid balance due to DOE for assigned three month period  x  
Quarterly Treasury rate plus six percent (6%)  x  Number of months late 
including month of payment (fractions rounded up to whole months) 
 12

    2. Interest is payable at any time prior to the due date for the 
subsequent assigned three month period fee payment. Nonpayment by the 
end of the subsequent assigned three month period will result in 
compounding of interest due. Purchaser shall complete a Standard 
Remittance Advice of interest payments.
    3. Following the assessment of a late fee by DOE, payments will be 
applied against accrued interest first and the principal thereafter.

                          D. Effect of Payment

    Upon payment of all applicable fees, interest and penalties on upaid 
or underpaid amounts, the Purchaser shall have no further financial 
obligation to DOE for the disposal of the accepted SNF and/or HLW.

                                E. Audit

    1. The DOE or its representative shall have the right to perform any 
audits or inspections necessary to determine whether Purchaser is paying 
the correct amount under the fee schedule and interest provisions set 
forth in paragraphs A, B and C above.
    2. Nothing in this contract shall be deemed to preclude an audit by 
the General Accounting Office of any transaction under this contract.
    3. The Purchaser shall furnish DOE with such records, reports and 
data as may be necessary for the determination of quantities delivered 
hereunder and for final settlement of amounts due under this contract 
and shall retain and make available to DOE and its authorized 
representative examination at all reasonable times such records, reports 
and data for a period of three (3) years from the completion of delivery 
of all material under this contract.

                           Article IX--Delays

                A. Unavoidable Delays by Purchaser or DOE

    Neither the Government nor the Purchaser shall be liable under this 
contract for damages caused by failure to perform its obligations 
hereunder, if such failure arises out of causes beyond the control and 
without the fault or negligence of the party failing to perform. In the 
event circumstances beyond the reasonable control of the Purchaser or 
DOE--such as acts of God, or of the public enemy, acts of Government in 
either its sovereign or contractual capacity, fires, floods, epidemics, 
quarantine restrictions, strikes, freight embargoes and unusually severe 
weather--cause delay in scheduled delivery, acceptance or transport of 
SNF and/or HLW, the party experiencing the delay will notify the other 
party as soon as possible after such delay is ascertained and the 
parties will readjust their schedules, as appropriate, to accommodate 
such delay.

                 B. Avoidable Delays by Purchaser or DOE

    In the event of any delay in the delivery, acceptance or transport 
of SNF and/or HLW to or by DOE caused by circumstances within the 
reasonable control of either the Purchaser or DOE or their respective 
contractors or suppliers, the charges and schedules specified by this 
contract will be equitably adjusted to reflect any estimated additional 
costs incurred by the party not responsible for or contributing to the 
delay.

                          Article X--Suspension

    A. In addition to any other rights DOE may have hereunder, DOE 
reserves the right, at no cost to the Government, to suspend this 
contract or any portion thereof upon

[[Page 521]]

written notice to the Purchaser within ninety (90) days of the 
Purchaser's failure to perform its obligations hereunder, and the 
Purchaser's failure to take corrective action within thirty (30) days 
after written notice of such failure to perform as provided above, 
unless such failure shall arise from causes beyond the control and 
without the fault or negligence of the Purchaser, its contractors or 
agents. However, the Purchaser's obligation to pay fees required 
hereunder shall continue unaffected by any suspension. Any such 
suspension shall be rescinded if and when DOE determines that Purchaser 
has completed corrective action.
    B. The DOE reserves the right to suspend any scheduled deliveries in 
the event that a national emergency requires that priority be given to 
Government programs to the exclusion of the work under this contract. In 
the event of such a suspension by the Government, the DOE shall refund 
that portion of payments representing services not delivered as 
determined by the Contracting Officer to be an equitable adjustment. Any 
disagreement arising from the refund payment, if any, shall be resolved 
as provided in the clause of this contract, entitled ``DISPUTES.''

                          Article XI--Remedies

    Nothing in this contract shall be construed to preclude either party 
from asserting its rights and remedies under the contract or at law.

                          Article XII--Notices

    All notices and communications between the parties under this 
contract (except notices published in the Federal Register) shall be in 
writing and shall be sent to the following addressees:
 To DOE:________________________________________________________________
 _______________________________________________________________________
________________________________________________________________________
To the Purchaser:_______________________________________________________
 _______________________________________________________________________
________________________________________________________________________
    However, the parties may change the addresses or addressees for such 
notices or communications without formal modification to this contract; 
provided, however, that notice of such changes shall be given by 
registered mail.

    Article XIII--Representation Concerning Nuclear Hazards Indemnity

    A. DOE represents that it will include in its contract(s) for the 
operation of any DOE facility an indemnity agreement based upon Section 
170(d) of the Atomic Energy Act of 1954, as amended, a copy of which 
agreement shall be furnished to the Purchaser; that under said 
agreement, DOE shall have agreed to indemnify the contractor and other 
persons indemnified against claims for public liability (as defined in 
said Act) arising out of or in connection with contractual activities; 
that the indemnity shall apply to covered nuclear incidents which (1) 
take place at a contract location; or (2) arise out of or in the course 
of transportation of source, special nuclear or by-product material to 
or from a contract location. The obligation of DOE to indemnify shall be 
subject to the conditions stated in the indemnity agreement.
    B. The provisions of this Article XIII shall continue beyond the 
term of this contract.

                         Article XIV--Assignment

    The rights and duties of the Purchaser may be assignable with 
transfer of title to the SNF and/or HLW involved; provided, however, 
that notice of any such transfer shall be made to DOE within ninety (90) 
days of transfer.

                         Article XV--Amendments

    The provisions of this contract has been developed in the light of 
uncertainties necessarily attendant upon long-term contracts. 
Accordingly, at the request of either DOE or Purchaser, the parties will 
negotiate and, to the extent mutually agreed, amend this contract as the 
parties may deem to be necessary or proper to reflect their respective 
interests; provided, however, that any such amendment shall be 
consistent with the DOE final rule published in the Federal Register on 
April 18, 1983 entitled, ``Standard Contract for Disposal or SNF and/or 
HLW'', as the same may be amended from time to time.

                          Article XVI--Disputes

    A. Except as otherwise provided in this contract, any dispute 
concerning a question of fact arising under this contract which is not 
disposed of by agreement shall be decided by the Contracting Officer, 
who shall reduce his decision to writing and mail or otherwise furnish a 
copy thereof to the Purchaser. The decision of the Contracting Officer 
shall be final and conclusive unless within ninety (90) days from the 
date of receipt of such copy, the Purchaser mails or otherwise furnishes 
to the Contracting Officer a written appeal addressed to the DOE Board 
of Contract Appeals (Board). The decision of the Board shall be final 
and conclusive unless determined by a court of competent jursidiction to 
have been fraudulent, or capricious, or arbitrary, or so grossly 
erroneous as necessarily to imply bad faith or not supported by 
substantial evidence. In connection with any appeal proceeding under 
this clause, the Purchaser shall proceed diligently with the performance 
of the contract and in accordance with the Contracting Officer's 
decision.
    B. For Purchaser claims of more than $50,000, the Purchaser shall 
submit with the

[[Page 522]]

claim a certification that the claim is made in good faith; the 
supporting data are accurate and complete to the best of the Purchaser's 
knowledge and belief; and the amount requested accurately reflects the 
contract adjustment for which the Purchaser believes the Government is 
liable. The certification shall be executed by the Purchaser if an 
individual. When the Purchaser is not an individual, the certification 
shall be executed by a senior company official in charge at the 
Purchaser's plant or location involved, or by an officer or general 
partner of the Purchaser having overall responsibility for the conduct 
of the Purchaser's affairs.
    C. For Purchaser claims of $50,000 or less, the Contracting Officer 
must render a decision within sixty (60) days. For Purchaser claims in 
excess of $50,000, the Contracting Officer must decide the claim within 
sixty (60) days or notify the Purchaser of the date when the decision 
will be made.
    D. This ``Disputes'' clause does not preclude consideration of law 
questions in connection with decisions provided for in paragraph A 
above; provided, however, that nothing in this contract shall be 
construed as making final the decision of any administrative official, 
representative, or board on a question of law.

                 Article XVII--Officials Not To Benefit

    No member of or delegate to Congress or resident commissioner shall 
be admitted to any share or part of this contract, or to any benefit 
that may arise therefrom, but this provision shall not be construed to 
extend to this contract if made with a corporation for its general 
benefit.

             Article XVIII--Covenant Against Contingent Fees

    The Purchaser warrants that no person or selling agency has been 
employed or retained to solicit or secure this contract upon an 
agreement or understanding for a commission, percentage, brokerage, or 
contingent fee, excepting bona fide employees or bona fide established 
commercial or selling agencies maintained by the Purchaser for the 
purpose of securing business. For breach or violation of this warranty, 
the Government shall have the right to annul this contract without 
liability or in its discretion to increase the contract price or 
consideration, or otherwise recover, the full amount of such commission, 
brokerage, or contingent fee.

                   Article XIX--Examination of Records

    The Purchaser agrees that the Comptroller General of the United 
States or any of his duly authorized representatives shall have access 
to and the right to examine any directly pertinent books, documents, 
papers and records of the Purchaser involving transactions related to 
this contract until the expiration of three years after final payment 
under this contract.

                           Article XX--Permits

    The Government and the Purchaser shall procure all necessary permits 
or licenses (including any special nuclear material licenses) and comply 
with all applicable laws and regulations of the United States, States 
and municipalities necessary to execute their respective 
responsibilities and obligations under this contract.

                  Article XXI--Rights in Technical Data

                             A. Definitions.

    1. Technical data means recorded information regardless of form or 
characteristic, of a specific or technical nature. It may, for example, 
document research, experimental, developmental, or demonstration, or 
engineering work, or be usable or used to define a design or process, or 
to procure, produce, support, maintain or operate material. The data may 
be graphic or pictorial delineations in media such as drawings or 
photographs, text in specifications or related performance or design-
type documents or computer software (including computer programs, 
computer software data bases, and computer software documentation). 
Examples of technical data include research and engineering data, 
engineering drawings and associated lists, specifications, standards, 
process sheets, manuals, technical reports, catalog item identification, 
and related information. Technical data as used herein do not include 
financial reports, cost analyses, and other information incidental to 
contract administration.
    2. Proprietary data means technical data which embody trade secrets 
developed at private expense, such as design procedures or techniques, 
chemical composition of materials, or manufacturing methods, processes, 
or treatments, including minor modifications thereof, provided that such 
data:
    (a) Are not generally known or available from other sources without 
obligation concerning their confidentiality;
    (b) Have not been made available by the owner to others without 
obligation concerning its confidentiality; and
    (c) Are not already available to the Government without obligation 
concerning their confidentiality.
    3. Contract data means technical data first produced in the 
performance of the contract, technical data which are specified to be 
delivered under the contract, or technical data actually delivered in 
connection with the contract.
    4. Unlimited rights means rights to use, duplicate, or disclose 
technical data, in whole or in part, in any manner and for any purpose 
whatsoever, and to permit others to do so.

[[Page 523]]

                        B. Allocation of Rights.

    1. The Government shall have:
    (a) Unlimited rights in contract data except as otherwise provided 
below with respect to proprietary data properly marked as authorized by 
this clause;
    (b) The right to remove, cancel, correct or ignore any marking not 
authorized by the terms of this contract on any technical data furnished 
hereunder, if in response to a written inquiry by DOE concerning the 
proprietary nature of the markings, the Purchaser fails to respond 
thereto within 60 days or fails to substantiate the proprietary nature 
of the markings. In either case, DOE will notify the Purchaser of the 
action taken;
    (c) No rights under this contract in any technical data which are 
not contract data.
    2. Subject to the foregoing provisions of this rights in technical 
data clause, the Purchaser shall have the right to mark proprietary data 
it furnishes under the contract with the following legend and no other, 
the terms of which shall be binding on the Government:

                          Limited Rights Legend

    This ``proprietary data,'' furnished under ``Contract No. ----'' 
with the U.S. Department of Energy may be duplicated and used by the 
Government with the express limitations that the ``proprietary data'' 
may not be disclosed outside the Government or be used for purposes of 
manufacture without prior permission of the Purchaser, except that 
further disclosure or use may be made solely for the following purposes:
    (a) This ``proprietary data'' may be disclosed for evaluation 
purposes under the restriction that the ``proprietary data'' be retained 
in confidence and not be further disclosed;
    (b) This ``proprietary data'' may be disclosed to contractors 
participating in the Government's program of which this contract is a 
part, for information or use in connection with the work performed under 
their contracts and under the restriction that the ``proprietary data'' 
be retained in confidence and not be further disclosed; or
    (c) This ``proprietary data'' may be used by the Government or 
others on its behalf for emergency work under the restriction that the 
``proprietary data'' be retained in confidence and not be further 
disclosed. This legend shall be marked on any reproduction of this data 
in whole or in part.
    3. In the event that proprietary data of a third party, with respect 
to which the Purchaser is subject to restrictions on use or disclosure, 
is furnished with the Limited Rights Legend above, Purchaser shall 
secure the agreement of such third party to the rights of the Government 
as set forth in the Limited Rights Legend. DOE shall upon request 
furnish the names of those contractors to which proprietary data has 
been disclosed.

                      Article XXII--Entire Contract

    A. This contract, which consists of Articles I through XXII and 
appendices A through G, annexed hereto and made a part hereof, contains 
the entire agreement between the parties with respect to the subject 
matter hereof. Any representation, promise, or condition not 
incorporated in this contract shall not be binding on either party. No 
course of dealing or usage of trade or course of performance shall be 
relevant to explain or supplement any provision contained in this 
contract.
    B. Nothing in this contract is intended to affect in any way the 
contractual obligation of any other persons with whom the Purchaser may 
have contracted with respect to assuming some or all disposal costs or 
to accept title to SNF and/or HLW.

                              C. Appendices

A. Nuclear Power Reactor(s) or Other Facilities Covered
B. Discharge Information (Ten Year; Annual)
C. Delivery Commitment Schedule
D. Final Delivery Schedule
E. General Specifications
F. Detailed Description of Purchaser's Fuel
G. Standard Remittance Advice For Payment of Fees

    In witness whereof, the parties hereto have executed this contract 
as of the day and year first above written.

United States of America
United States Department of Energy
 By:____________________________________________________________________
  (Contracting Officer)

Witnesses as to Execution on Behalf of Purchaser
 (Name)_________________________________________________________________
 (Address)______________________________________________________________
 (Name)_________________________________________________________________
 (Address)______________________________________________________________
(Purchaser's Company Name)
 By:____________________________________________________________________
 Title:_________________________________________________________________
    I, (Name), certify that I am the (Title) of the corporation named as 
Purchaser herein; that (Name) who signed this document on behalf of the 
Purchaser was then (Title) of said corporation; that said document was 
duly signed for and on behalf of said corporation by authority of its 
governing body and is within the scope of its corporate powers.
    In Witness Whereof, I have hereunto affixed my hand and the seal of 
said corporation this ---- day of ----, 1983
    (Corporate Seal)
 (Signature)____________________________________________________________

[[Page 524]]

                               Appendix A

          Nuclear Power Reactor(s) or Other Facilities Covered

 Purchaser______________________________________________________________
 Contract Number/Date ----/----_________________________________________
 Reactor/Facility Name__________________________________________________
Location:
 Street_________________________________________________________________
 City___________________________________________________________________
 County/State --------/_________________________________________________
 Zip Code_______________________________________________________________
 Capacity (MWE)--Gross__________________________________________________
Reactor Type:
    BWR  {time} 
    PWR  {time} 
  Other (Identify)______________________________________________________
 Facility Description___________________________________________________
 Date of Commencement of Operation______________________________________
(actual or estimated)
 NRC License :_________________________________________________________
By Purchaser:
 Signatue_______________________________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________

                               Appendix B

                       Ten Year Discharge Forecast

    To be used for DOE planning purposes only and does not represent a 
firm commitment by Purchaser.
 Purchaser______________________________________________________________
 Contract Number/Date --------/_________________________________________
 Reactor/Facility Name__________________________________________________
Location:
 Street_________________________________________________________________
 City___________________________________________________________________
 County/State --------/_________________________________________________
Zip Code
Type: BWR {time} 
      PWR {time} 
Other (Identify)________________________________________________________

----------------------------------------------------------------------------------------------------------------
                                                                                                          10 yr 
                                     1      2      3      4      5      6      7      8      9      10    total 
----------------------------------------------------------------------------------------------------------------
Discharge date--mo/yr (or                                                                                       
 refueling shut down date).......  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .......
Metric tons:                                                                                                    
    --initial....................  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .......
    --discharged.................  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .......
Number of assemblies discharged                                                                                 
 (per cycle).....................  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .......
                                                                                                                
----------------------------------------------------------------------------------------------------------------

    By Purchaser:
 Signature______________________________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________

                        Appendix B (Enclosure 1)

                            Actual Discharges

 Purchaser______________________________________________________________
 Contract Number/Date___________________________________________________
 Reactor/Facility Name__________________________________________________
Location:
 Street_________________________________________________________________
 City___________________________________________________________________
 County/State___________________________________________________________
 Zip Code_______________________________________________________________
Type:
    BWR {time} 
    PWR {time} 
Other (Identify)________________________________________________________
 Refueling Shutdown Date________________________________________________
Metric Tons Uranium (Initial/Discharged);
 Initial________________________________________________________________
 Discharged_____________________________________________________________
 Number of Assemblies Discharged:_______________________________________
    Any false, fictitious or fraudulent statement may be punishable by 
fine or imprisonment (U.S. Code, Title 18, Section 1001).
By Purchaser:
 Signature______________________________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________

                               Appendix C

                      Delivery Commitment Schedule

    This delivery commitment schedule shall be submitted by Purchaser to 
DOE as specified in Article V.B. of this contract.
 Purchaser______________________________________________________________
 Contract Number/Date___________________________________________________
 Reactor/Facility Name__________________________________________________
Location:
 Street_________________________________________________________________
 City___________________________________________________________________
 County/State___________________________________________________________
 Zip Code_______________________________________________________________
 Type Cask Required:____________________________________________________
 Shipping Lot Number____________________________________________________
(Assigned by DOE)
Proposed Shipping Mode:
    Truck {time} 
    Rail {time} 
    Barge {time} 
DOE Assigned Delivery Commitment Date___________________________________
Range of Discharge Date(s) (Earliest to Latest)
Mo---- Day---- Yr---- to Mo---- Day---- Yr----
Metric Tons Uranium:
 (Initial)______________________________________________________________
 (Discharged)___________________________________________________________
Number of Assemblies:
 BWR____________________________________________________________________
 PWR____________________________________________________________________

[[Page 525]]

 Other__________________________________________________________________
    Unless otherwise agreed to in writing by DOE, the Purchaser shall 
furnish herewith to DOE suitable proof of ownership of the SNF and/or 
HLW to be delivered hereunder. The Purchaser shall notify DOE in writing 
at the earliest practicable date of any change in said ownership.
    Any false, fictitious or fraudulent statement may be punishable by 
fine or imprisonment (U.S. Code, Title 18, Section 1001).
By Purchaser:
 Signature______________________________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________
Approved by DOE:
 Technical Representative_______________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________
 Contracting Officer____________________________________________________
 Date___________________________________________________________________

                               Appendix D

                         Final Delivery Schedule

(To be submitted to DOE by Purchaser for each designated Purchaser 
Delivery site not later than twelve (12) months prior to estimated date 
of first delivery)
 Purchaser:_____________________________________________________________
 Contract Number/Date___________________________________________________
 Reactor/Facility Name__________________________________________________
Location:
 Street_________________________________________________________________
 City___________________________________________________________________
 County/State___________________________________________________________
 Zip Code_______________________________________________________________
 Type(s) cask(s) required:______________________________________________
 No. Assembilies per cask_______________________________________________
 Shipping Lot Number____________________________________________________
Shipping Mode:
(Assigned by DOE)
 Truck__________________________________________________________________
 Rail___________________________________________________________________
 Barge__________________________________________________________________
Metric Tons Uranium:
 (Initial)______________________________________________________________
 (Discharged)___________________________________________________________
Range of Discharge Date(s) (Earliest to Latest)
(From approved commitment schedule)
Mo---- Day---- Yr---- to Mo---- Day---- Yr----
Number of Assemblies:
 BWR____________________________________________________________________
 PWR____________________________________________________________________
 Other__________________________________________________________________
Purchaser's Delivery First Estimate
Mo---- Day---- Yr---- last Mo---- Day---- Mo----
    Unless otherwise agreed to in writing by DOE, the Purchaser shall 
furnish herewith to DOE suitable proof of ownership of the SNF and/or 
HLW to be delivered hereunder. The Purchaser shall notify DOE in writing 
at the earliest practicable date of any change in said ownership.
    To confirm acceptability of delivery date(s):
 Purchaser Contact______________________________________________________
 Phone__________________________________________________________________
 Title__________________________________________________________________
 DOE Contact____________________________________________________________
 Phone__________________________________________________________________
 Title__________________________________________________________________
    Any false, fictitious or fraudulent statement may be punishable by 
fine or imprisonment (U.S. Code, Title 18, Section 1001).
By Purchaser:
 Signature______________________________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________
Approved by DOE:
 Technical Representative_______________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________
 Contracting Officer____________________________________________________
 Date___________________________________________________________________

                               Appendix E

                         General Specifications

                     A. Fuel Category Identification

    1. Categories--Purchaser shall use reasonable efforts, utilizing 
technology equivalent to and consistent with the commercial practice, to 
properly classify Spent Nuclear Fuel (SNF) prior to delivery to DOE, as 
follows:
    a. Standard Fuel means SNF that meets all the General Specifications 
therefor set forth in paragraph B below.
    b. Nonstandard Fuel means SNF that does not meet one or more of the 
General Specifications set forth in subparagraphs 1 through 5 of 
paragraph B below, and which is classified as Nonstandard Fuel Classes 
NS-1 through NS-5, pursuant to paragraph B below.
    c. Failed Fuel means SNF that meets the specifications set forth in 
subparagraphs 1 through 3 of paragraph B below, and which is classified 
as Failed Fuel Class F-1 through F-3 pursuant to subparagraph 6 of 
paragraph B below.
    d. Fuel may have ``Failed Fuel'' and/or several ``Nonstandard Fuel'' 
classifications

    B. Fuel Description and Subclassification--General Specifications

    1. Maximum Nominal Physical Dimensions.

                                                                        
------------------------------------------------------------------------
                                     Boiling water     Pressurized water
                                     reactor (BWR)       reactor (PWR)  
------------------------------------------------------------------------
Overall Length..................  14 feet, 11 inches  14 feet, 10       
                                                       inches.          
Active Fuel Length..............  12 feet, 6 inches.  12 feet, 0 inches.
Cross Section \1\...............  6 inches  x  6      9 inches  x  9    
                                   inches.             inches.          
------------------------------------------------------------------------
\1\ The cross section of the fuel assembly shall not include the        
  channel.                                                              
Note: Fuel that does not meet these specifications shall be classified  
  as Nonstandard Fuel--Class NS-1.                                      

[[Page 526]]

                                                                        

    2. Nonfuel Components. Nonfuel components including, but not limited 
to, control spiders, burnable poison rod assemblies, control rod 
elements, thimble plugs, fission chambers, and primary and secondary 
neutron sources, that are contained within the fuel assembly, or BWR 
channels that are an integral part of the fuel assembly, which do not 
require special handling, may be included as part of the spent nuclear 
fuel delivered for disposal pursuant to this contract.

    Note: Fuel that does not meet these specifications shall be 
classified as Nonstandard Fuel--Class NS-2.

    3. Cooling. The minimum cooling time for fuel is five (5) years.

    Note: Fuel that does not meet this specification shall be classified 
as Nonstandard Fuel--Class NS-3.

    4. Non-LWR Fuel. Fuel from other than LWR power facilities shall be 
classified as Nonstandard Fuel--Class NS-4. Such fuel may be unique and 
require special handling, storage, and disposal facilities.
    5. Consolidated Fuel Rods. Fuel which has been disassembled and 
stored with the fuel rods in a consolidated manner shall be classified 
as Nonstandard Fuel Class NS-5.
    6. Failed Fuel.
    a. Visual Inspection.
    Assemblies shall be visually inspected for evidence of structural 
deformity or damage to cladding or spacers which may require special 
handling. Assemblies which [i] are structurally deformed or have damaged 
cladding to the extent that special handling may be required or [ii] for 
any reason cannot be handled with normal fuel handling equipment shall 
be classified as Failed Fuel--Class F-1.
    b. Previously Encapsulated Assemblies.
    Assemblies encapsulated by Purchaser prior to classification 
hereunder shall be classified as Failed Fuel--Class F-3. Purchaser shall 
advise DOE of the reason for the prior encapsulation of assemblies in 
sufficient detail so that DOE may plan for appropriate subsequent 
handling.
    c. Regulatory Requirements.
    Spent fuel assemblies shall be packaged and placed in casks so that 
all applicable regulatory requirements are met.

                   C. Summary of Fuel Classifications

    1. Standard Fuel:
    a. Class S-1: PWR
    b. Class S-2: BWR
    2. Nonstandard Fuel:
    a. Class NS-1: Physical Dimensions
    b. Class NS-2: Non Fuel Components
    c. Class NS-3: Short Cooled
    d. Class NS-4: Non-LWR
    e. Class NS-5: Consolidated Fuel Rods.
    3. Failed Fuel:
    a. Class F-1: Visual Failure or Damage
    b. Class F-2: Radioactive ``Leakage''
    c. Class F-3: Encapsulated

                     D. High-Level Radioactive Waste

    The DOE shall accept high-level radioactive waste. Detailed 
acceptance criteria and general specifications for such waste will be 
issued by the DOE no later than the date on which DOE submits its 
license application to the Nuclear Regulatory Commission for the first 
disposal facility.

                               Appendix F

                Detailed Description of Purchaser's Fuel

    This information shall be provided by Purchaser for each distinct 
fuel type within a Shipping Lot not later than sixty (60) days prior to 
the schedule transportation date.
 Purchaser______________________________________________________________
Contract Number/Date ----/--------
 Reactor/Facility Name--________________________________________________
 _______________________________________________________________________
________________________________________________________________________
    I. Drawings included in generic dossier: --------

    1. Fuel Assembly DWG ----
    2. Upper & Lower end fittings DWG ----
    Dossier Number: ----
    DOE Shipping Lot : ----
     Assemblies Described:

    ------BWR
    ------PWR
    ------Other

    II. Design Material Descriptions.

Fuel Element:


    1. Element type ---- (rod, plate, etc.)
    2. Total length) ----/(in.)
    3. Active length ---- (in.)
    4. Cladding material ---- (Zr, s.s., etc.)

Assembly Description:

    1. Number of Elements ----
    2. Overall dimensions (length ---- (cross section) ---- (in.)
    3. Overall weight ----

    III. Describe any distortions, cladding damage or other damage to 
the spent fuel, or nonfuel components within this Shipping Lot which 
will require special handling procedures. (Attach additional pages if 
needed.)
 _______________________________________________________________________
________________________________________________________________________
    IV. Assembly Number ----
    Shipping Lot ----

------------------------------------------------------------------------
                                                   Irradiation history  
                                                        cycle No.       
                                                ------------------------
                                                  1    2    3    4    5 
------------------------------------------------------------------------
1. Startup date (mo/day/yr)....................  ...  ...  ...  ...  ...
2. Shutdown date (mo/day/yr)...................  ...  ...  ...  ...  ...
3. Cumulative fuel exposure (mwd/mtu)..........  ...  ...  ...  ...  ...
4. Avg. reactor power (mwth)...................  ...  ...  ...  ...  ...

[[Page 527]]

                                                                        
5. Total heat output/assembly in watts, using an approved calculational 
 method: -------- as of Date --------                                   
------------------------------------------------------------------------

    Any false, fictitious or fradulent statement may be punishable by 
fine or imprisonment (U.S. Code, Title 18, Section 1001).
    By Purchaser:
 Signature______________________________________________________________
 Title__________________________________________________________________
 Date___________________________________________________________________

[[Page 528]]

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[[Page 532]]



                          Annex B to Appendix G

         Standard Remittance of Advice (RA) for Payment of Fees

    This Annex should be completed only for SNF burned before midnight 
between April 6/7, 1983.
    I. Identification
    A. Purchaser:------------
    B. Unit identification (Only one unit may be covered in each 
report.)
 1. Reactor/Facility Name:______________________________________________
 2. Location:___________________________________________________________
 3. Type:_______________________________________________________________
 4. Capacity:___________________________________________________________
 5. Date of Commencement of Operations:_________________________________
 6. NRC License No.:____________________________________________________
    II. Fee Calculation
    A. Discharged nuclear fuel

                                                                                                                
                                                                                                                
                                                                                                                
1. Burnup \1\ (MWDT/MTU)......................................        0-    5,000-    10,000    20,000          
                                                                   5,000    10,000    20,000        up          
2. Initial loading (KgU) (with indicated burnup)..............  ........  ........  ........  ........          
3. Fee rate ($/KgU)...........................................     80.00    142.00    162.00    184.00          
4. Fee ($)....................................................  ........  ........  ........  ........          
5. Total fee (4)..............................................                                                  
                                                                                                                

    B. Nuclear fuel in the reactor core as of midnight of 6/7 April 
1983.

                                                                        
------------------------------------------------------------------------
                                                 Burnup \1\ as          
                               Initial loading  of midnight 6/7         
   Assembly identification          (KgU)          April 1983      Fee  
                                                   (MWDT/MTU)           
------------------------------------------------------------------------
 1...........................  ...............  ...............  .......
 2...........................  ...............  ...............  .......
 3...........................  ...............  ...............  .......
 4...........................  ...............  ...............  .......
 5...........................  ...............  ...............  .......
 6...........................  ...............  ...............  .......
 7...........................  ...............  ...............  .......
 8...........................  ...............  ...............  .......
 9...........................  ...............  ...............  .......
10...........................  ...............  ...............  .......
11...........................  ...............  ...............  .......
12...........................  ...............  ...............  .......
13...........................  ...............  ...............  .......
14...........................  ...............  ...............  .......
15...........................  ...............  ...............  .......
16...........................  ...............  ...............  .......
17...........................  ...............  ...............  .......
18...........................  ...............  ...............  .......
19...........................  ...............  ...............  .......
20...........................  ...............  ...............  .......
21...........................  ...............  ...............  .......
22...........................  ...............  ...............  .......
23...........................  ...............  ...............  .......
24...........................  ...............  ...............  .......
25...........................  ...............  ...............  .......
------------------------------------------------------------------------
\1\ Please provide (as an attachment) a clear reference to the          
  methodology used to derive the burnup figures (computer codes, etc.)  
  and a clear reference to all data used in the derivation of those     
  figures.                                                              

    C. Total fee.

(Approved by the Office of Management and Budget under control number 
1091-0260)
[48 FR 16599, Apr. 18, 1983; 48 FR 23160, May 24, 1983, as amended at 52 
FR 35359, Sept. 18, 1987; 56 FR 67659, Dec. 31, 1991]



PART 962--BYPRODUCT MATERIAL--Table of Contents




Sec.
962.1  Scope.
962.2  Purpose.
962.3  Byproduct material.

    Authority: The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.); 
Energy Reorganization Act of 1974 (42 U.S.C. 5801 et seq.); Department 
of Energy Organization Act (42 U.S.C. 7101 et seq.); Nuclear Waste 
Policy Act (Pub. L. 97-425, 96 Stat. 2201).

    Source: 52 FR 15940, May 1, 1987, unless otherwise noted.



Sec. 962.1  Scope.

    This part applies only to radioactive waste substances which are 
owned or produced by the Department of Energy at facilities owned or 
operated by or for the Department of Energy under the Atomic Energy Act 
of 1954 (42 U.S.C. 2011 et seq). This part does not apply to substances 
which are not owned or produced by the Department of Energy.



Sec. 962.2  Purpose.

    The purpose of this part is to clarify the meaning of the term 
``byproduct material'' under section 11e(1) of the Atomic Energy Act of 
1954 (42 U.S.C. 2014(e)(1)) for use only in determining the Department 
of Energy's obligations under the Resource Conservation and Recovery Act 
(42 U.S.C. 6901 et seq.) with regard to radioactive waste substances 
owned or produced by the Department of Energy pursuant to the exercise 
of its responsibilities under the Atomic Energy Act of 1954. This part 
does not affect materials defined as byproduct material under section 
11e(2) of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e)(2)).

[[Page 533]]



Sec. 962.3  Byproduct material.

    (a) For purposes of this part, the term byproduct material means any 
radioactive material (except special nuclear material) yielded in or 
made radioactive by exposure to the radiation incident to the process of 
producing or utilizing special nuclear material.
    (b) For purposes of determining the applicability of the Resource 
Conservation and Recovery Act (42 U.S.C. 6901 et seq.) to any 
radioactive waste substance owned or produced by the Department of 
Energy pursuant to the exercise of its atomic energy research, 
development, testing and production responsibilities under the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.), the words ``any radioactive 
material,'' as used in paragraph (a) of this section, refer only to the 
actual radionuclides dispersed or suspended in the waste substance. The 
nonradioactive hazardous component of the waste substance will be 
subject to regulation under the Resource Conservation and Recovery Act.

[[Page 535]]



          CHAPTER X--DEPARTMENT OF ENERGY (GENERAL PROVISIONS)




  --------------------------------------------------------------------

Part                                                                Page
1000            Transfer of proceedings to the Secretary of 
                    Energy and the Federal Energy Regulatory 
                    Commission..............................         537
1002            Official seal and distinguishing flag.......         540
1003            Office of Hearings and Appeals procedural 
                    regulations.............................         542
1004            Freedom of information......................         560
1005            Intergovernmental review of Department of 
                    Energy programs and activities..........         573
1008            Records maintained on individuals (Privacy 
                    Act)....................................         577
1009            General policy for pricing and charging for 
                    materials and services sold by DOE......         593
1010            Conduct of employees........................         595
1013            Program fraud civil remedies and procedures.         596
1014            Administrative claims under Federal Tort 
                    Claims Act..............................         612
1015            Collection of claims owed the United States.         615
1016            Safeguarding of restricted data.............         622
1017            Identification and protection of 
                    unclassified controlled nuclear 
                    information.............................         630
1018            Referral of debts to IRS for tax refund 
                    offset..................................         642
1021            National Environmental Policy Act 
                    implementing procedures.................         643
1022            Compliance with floodplain/wetlands 
                    environmental review requirements.......         669
1023            Contract appeals............................         674
1024            Procedures for financial assistance appeals.         691
1036            Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................         695
1039            Uniform relocation assistance and real 
                    property acquisition for Federal and 
                    federally assigned programs.............         717
1040            Nondiscrimination in federally assisted 
                    programs................................         717

[[Page 536]]

1041            Enforcement of nondiscrimation on the basis 
                    of handicap in programs or activities 
                    conducted by the Department of Energy...         759
1045            Nuclear classification and declassification 
                    (Eff. 6-29-98)..........................         765
1045            National security information (Eff. until 6-
                    29-98)..................................         779
1046            Physical protection of security interests...         781
1047            Limited arrest authority and use of force by 
                    protective force officers...............         792
1048            Trespassing on Strategic Petroleum Reserve 
                    facilities and other property...........         796
1049            Limited arrest authority and use of force by 
                    protective force officers of the 
                    Strategic Petroleum Reserve.............         797
1050            Foreign gifts and decorations...............         800
1060            Payment of travel expenses of persons who 
                    are not Government employees............         809

[[Page 537]]



PART 1000--TRANSFER OF PROCEEDINGS TO THE SECRETARY OF ENERGY AND THE FEDERAL ENERGY REGULATORY COMMISSION--Table of Contents






Sec. 1000.1  Transfer of proceedings.

    (a) Scope. This part establishes the transfer of proceedings pending 
with regard to those functions of various agencies which have been 
consolidated in the Department of Energy and identifies those 
proceedings which are transferred into the jurisdiction of the Secretary 
and those which are transferred into the jurisdiction of the Federal 
Energy Regulatory Commission.
    (b) Proceedings transferred to the Secretary. The following 
proceedings are transferred to the Secretary:
    (1) All Notices of Proposed Rulemaking, pending and outstanding, 
which have been proposed by the Department of Energy and the Department 
of Energy;
    (2) All Notices of Inquiry which have been issued by the Department 
of Energy;
    (3) All Requests for Interpretations which have been filed pursuant 
to 10 CFR part 205, subpart F, and on which no interpretation has been 
issued, with the Office of General Counsel of the Department of Energy;
    (4) All Applications for Exception Relief which have been filed 
pursuant to 10 CFR part 205, subpart D, and on which no final decision 
and order has been issued, with the Office of Exceptions and Appeals of 
the Department of Energy;
    (5) All petitions for special redress, relief or other extraordinary 
assistance which have been filed pursuant to 10 CFR part 205, subpart R, 
and on which no order has been issued, with the Office of Private 
Grievances and Redress of the Department of Energy;
    (6) All appeals from Remedial Orders, Exception Decisions and 
Orders, Interpretations issued by the Office of General Counsel, and 
other agency orders which have been filed pursuant to 10 CFR part 205, 
subpart H, and on which no order has been issued prior to October 1, 
1977, with the Office of Exceptions and Appeals of the Department of 
Energy;
    (7) All applications for modification or rescission of any DOE order 
or interpretation which have been filed pursuant to 10 CFR part 205, 
subpart J, and on which no order has been issued prior to October 1, 
1977, with the Office of Exceptions and Appeals of the Federal Energy 
Administation;

    Note: For a document relating to procedures for natural gas import 
and export proceedings see 42 FR 61856, Dec. 7, 1977.

    (8) All applications for temporary stays and stays which have been 
filed pursuant to 10 CFR part 205, subpart I, and on which no order has 
been issued, with the Office of Exceptions and Appeals of the Department 
of Energy;
    (9) All applications which have been filed with the Office of 
Regulatory Programs of the Department of Energy and on which no final 
order has been issued;
    (10) All investigations which have been instituted and have not been 
resolved by the Office of Compliance of the Department of Energy;
    (11) All Notices of Probable Violation which have been issued prior 
to October 1, 1977, by the Office of Compliance of Department of Energy;
    (12) All Notices of Proposed Disallowance which have been issued 
prior to October 1, 1977, by the Office of Compliance of Department of 
Energy;
    (13) All Prohibition Orders which have been issued pursuant to 10 
CFR part 303 and as to which no Notice of Effectiveness has been issued;
    (14) From the Department of the Interior:
    (i) The tentative power rate adjustments for the Central Valley 
Project, California, proposed on September 12, 1977 (42 FR 46619, 
September 16, 1977).
    (15) From the Interstate Commerce Commission:
    (i) Ex Parte No. 308 (Sub-No. 1)--Investigation of Common Carrier 
Pipelines.
    (16) From the Federal Power Commission:
    (i) Cases:
    (A) Northwest Pipeline Corporation, Docket No. CP75-340.
    (B) Midwestern Gas Transmission Co., Docket No. CP77-458, et al.
    (C) St. Lawrence Gas Company, Docket No. G-17500.

[[Page 538]]

    (D) U.S.D.I. Bonneville Power Administration, Docket No. E-9563.
    (E) U.S.D.I. Southwestern Power Administration, Docket No. E-7201.
    (F) U.S.D.I. Southeastern Power Administration, Docket No. E-6957.
    (G) Tenneco InterAmerica, Inc., Docket No. CP77-561.
    (ii) Applications:
    (A) Maine Public Service Co., Docket No. E-6751. (ERA Docket No. IE-
78-1).
    (B) Northern States Power Co., Docket No. E-9589, (ERA Docket No. 
IE-78-2).
    (C) Arizona Public Service Co., Docket No. IT-5331. (ERA Docket No. 
IE-78-3).
    (D) Niagara Mohawk Power Corp., Docket No, E-7022. (ERA Docket No. 
IE-77-6).
    (E) Maine Public Service Co., Docket No. IT-6027. (ERA Docket No. 
PP-12).
    (F) Boise Cascade, Docket No. E-7765. (ERA Docket No. PP-52).
    (G) Bonneville Power Administration, Docket No. IT-5959. (ERA Docket 
No. PP-10).
    (H) EPR--Oregon (Geothermal Steam Leases).
    (I) EPR--Utah (Geothermal Steam Leases).
    (J) EPR--Idaho (Geothermal Steam Leases).
    (K) EPR--Oregon (Geothermal Steam Leases).
    (L) EPR--Idaho (Geothermal Steam Leases).
    (iii) Rulemakings:
    (A) Implementation of sections 382(b) and 382(c) of the Energy 
Policy and Conservation Act of 1975. Docket No. RM77-3.

    (B) New Form Nos:

    151, Docket No. RM76-19.
    153, Docket No. RM76-27.
    154, Docket No. RM76-33.
    156, Docket No. RM76-32.
    157, Docket No. RM76-21.
    158, Docket No. RM76-31.
    159, Docket No. RM76-23.
    160, Docket No. RM76-20.
    161, Docket No. RM76-26.
    162, Docket No. RM76-34.
    155, Docket No. RM76-28.
    163, Docket No. RM76-30.
    164, Docket No. RM76-25.

    (C) Procedures for the Filing of Federal Rate Schedules Docket No. 
RM77-9.
    (iv) Project withdrawals and power site revocations:
    (A) Project 1021, 1226, 1606, and 1772--(Wyoming)--U.S. Forest 
Service (Applicant).
    (B) Project Nos. 1021, 1226, 1606, and 1772--(Wyoming)--U.S. Forest 
Service (Applicant).
    (C) Project Nos. 220 and 691--(Wyoming)--Cliff Gold Mining Co. 
(Applicant for P-691) The Colowyo Gold Mining Co. (Applicant for P-220).
    (D) Project No. 1203--(Wyoming)--F. D. Foster (Applicant).
    (E) Project No. 1241--(Wyoming)--F. B. Hommel (Applicant).
    (F) Project No. 847--(Oregon)--H. L. Vorse (Applicant).
    (G) Project No. 907--(Colorado)--S. B. Collins (Applicant).
    (H) Project No. 941--(Colorado)--Marian Mining Company (Applicant).
    (I) Project Nos. 347 and 418--(Colorado)--Jones Brothers (Applicant 
for P-347) Frank Gay et al. (Applicant for P-418).
    (J) Project Nos. 373, 521, 937, 1024, 1415, 1546, 1547, and 1025--(  
  )--U.S. Forest (Applicant).
    (K) Project No. 163--(Colorado)--James F. Meyser and Edward E. Drach 
(Applicants).
    (L) Project Nos. 385, 445, 506, 519, 1220, 1296, 1418, 1519, 1576, 
1615, 1616, 1618, 1678, 1682, and 1750--(Colorado)--U.S. Forest Service 
(Applicant).
    (M) DA-117--(Alaska)--Bureau of Land Management (Applicant).
    (N) Project No. 114--(Alaska)--Elizabeth H. Graff et al. 
(Applicant).
    (O) DA-222--(Washington)--Bureau of Land Management (Applicant).
    (P) DA-562--(Oregon)--U.S. Geological Survey (Applicant).
    (Q) DA-601--(Idaho)--Bureau of Land Management (Applicant).
    (R) DA-509--(Colorado)--Fed. Highway Admin. (Applicant).
    (S) DA-616--(Idaho)--U.S. Forest Service (Applicant).
    (T) DA-1--(South Carolina)--U.S. Forest Service (Applicant).
    (U) DA-1116--(California)--U.S. Geological Survey (Applicant).
    (V) DA-154--(Arizona)--U.S. Geological Survey (Applicant).

[[Page 539]]

    (W) DA-1098--(California)--Merced Irrigation District (Applicant).
    (c) Proceedings transferred to the Commission. There are hereby 
transferred to the jurisdiction of the Federal Energy Regulatory 
Commission the following proceedings:
    (1) From the Interstate Commerce Commission:
    (i) Ex Parte No. 308--Valuation of Common Carrier Pipelines.
    (ii) I&S 9164--Trans Alaska Pipeline System--Rate Filings (including 
I&S 9164 (Sub-No. 1), NOR 36611, NOR 36611 (Sub-No. 1), NOR 36611 (Sub-
No. 2), NOR 36611 (Sub-No. 3), NOR 36611 (Sub-No. 4)).
    (iii) I&S 9089--General Increase, December 1975, Williams Pipeline 
Company.
    (iv) I&S 9128--Anhydrous Ammonia, Gulf Central Pipeline Company.
    (v) NOR 35533 (Sub-No. 3)--Petroleum Products, Southwest & Midwest 
Williams Pipeline.
    (vi) NOR 35794--Northville Dock Pipeline Corp. et al.
    (vii) NOR 35895--Inexco Oil Company v. Belle Fourche Pipeline Co. et 
al.
    (viii) NOR 36217--Department of Defense v. Interstate Storage & 
Pipeline Corp.
    (ix) NOR 36423--Petroleum Products Southwest to Midwest Points.
    (x) NOR 36520--Williams Pipeline Company--Petroleum Products 
Midwest.
    (xi) NOR 36553--Kerr-McGee Refining Corporation v. Texoma Pipeline 
Co.
    (xii) Suspension Docket 67124--Williams Pipe Line Co.--General 
Increase.
    (xiii) Valuation Docket 1423--Williams Pipeline Company (1971-1974 
inclusive).
    (2) To remain with the Commission until forwarding to the Secretary:

The following proceedings will continue in effect under the jurisdiction 
of the Commission until the timely filing of all briefs on and opposing 
exceptions to the initial decision of the presiding Administration Law 
Judge, at which time the Commission shall forward the record of the 
proceeding to the Secretary for decision on those matters within his 
jurisdiction:
    (i) El Paso Eastern Co., et al., Docket No. CP 77-330, et al.
    (ii) Tenneco Atlantic Pipeline Co., et al., Docket No. CP 77-100, et 
al.
    (iii) Distrigas of Massachusetts Corp., et al., Docket No. CP 70-
196, et al.
    (iv) Distrigas of Massachusetts Corp., et al., Docket No. CP 77-216, 
et al.
    (v) Eascogas LNG, Inc., et al., Docket No. CP 73-47, et al.
    (vi) Pacific Indonesia LNG Co., et al., Docket No. CP74-160, et al., 
(except as provided in paragraph (c)(3) of this section).
    (3) The Amendment to Application of Western LNG Terminal Associates, 
filed on November 11, 1977, in Pacific Indonesia LNG Co., et al., FPC 
Docket No. CP74-160, et al., ERA Docket No. 77-001-LNG, is transferred 
to the jurisdiction of the Commission until timely filing of all briefs 
on and opposing exceptions to the Initial Decision of the presiding 
Administrative Law Judge on that Amendment, at which time the Commission 
shall forward a copy of the record of that proceeding to the Secretary 
of Energy for decision on those matters within his jurisdiction. (If the 
Commission waives the preparation of an initial decision, the Commission 
will forward a copy of the record after completion of the hearing, or 
after the timely filing of any briefs submitted to the Commission, 
whichever occurs later.)
    (d) Residual clause. All proceedings (other than proceedings 
described in paragraphs (b) and (c) of this section) pending with regard 
to any function of the Department of Energy, the Department of Energy, 
Department of the Interior, the Department of Commerce, the Department 
of Housing and Urban Development, the Department of Navy, and the Naval 
Reactor and Military Applications Programs which is transferred to the 
Department of Energy (DOE) by the DOE Organization Act, will be 
conducted by the Secretary. All proceedings (other than proceedings 
described in paragraphs (b) and (c) of this section) before the Federal 
Power Commission or Interstate Commerce Commission will be conducted by 
the Federal Energy Regulatory Commission.


[[Page 540]]


(Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 567 (42 
U.S.C. 7101 et seq.); E.O. 12009, 42 FR 46267)
[42 FR 55534, Oct. 17, 1977, as amended at 43 FR 21434, May 18, 1978; 43 
FR 21658, May 19, 1978]



PART 1002--OFFICIAL SEAL AND DISTINGUISHING FLAG--Table of Contents




                           Subpart A--General

Sec.
1002.1  Purpose.
1002.2  Definitions.
1002.3  Custody of official seal and distinguishing flags.

                        Subpart B--Official Seal

1002.11  Description of official seal.
1002.12  Use of replicas, reproductions, and embossing seals.

                     Subpart C--Distinguishing Flag

1002.21  Description of distinguishing flag.
1002.22  Use of distinguishing flag.

                      Subpart D--Unauthorized Uses

1002.31  Unauthorized uses of the seal and flag.

    Authority: 42 U.S.C. 7264.

    Source: 43 FR 20782, May 15, 1978, unless otherwise noted.



                           Subpart A--General



Sec. 1002.1  Purpose.

    The purpose of this part is to describe the official seal and 
distinguishing flag of the Department of Energy, and to prescribe rules 
for their custody and use.



Sec. 1002.2  Definitions.

    For purposes of this part--
    (a) DOE means all organizational units of the Department of Energy.
    (b) Embossing seal means a display of the form and content of the 
official seal made on a die so that the seal can be embossed on paper or 
other medium.
    (c) Official seal means the original(s) of the seal showing the 
exact form, content, and colors therof.
    (d) Replica means a copy of the official seal displaying the 
identical form, content, and colors thereof.
    (e) Reproduction means a copy of the official seal displaying the 
form and content thereof, reproduced in only one color.
    (f) Secretary means the Secretary of DOE.



Sec. 1002.3  Custody of official seal and distinguishing flags.

    The Secretary or his designee shall:
    (a) Have custody of:
    (1) The official seal and prototypes thereof, and masters, molds, 
dies, and all other means of producing replicas, reproductions, and 
embossing seals; and
    (2) Production, inventory and loan records relating to items 
specified in paragraph (a)(1) of this section; and
    (b) Have custody of distinguishing flags, and be responsible for 
production, inventory, and loan records thereof.



                        Subpart B--Official Seal



Sec. 1002.11  Description of official seal.

    The Department of Energy hereby prescribes as its official seal, of 
which judicial notice shall be taken pursuant to section 654 of the 
Department of Energy Organization Act of 1977, 42 U.S.C. 7264, the 
imprint illustrated below and described as follows:
[GRAPHIC] [TIFF OMITTED] TC01OC91.039

    (a)(1) The official seal includes a green shield bisected by a gold-
colored lightning bolt, on which is emblazoned a gold-colored symbolic 
sun, atom, oil derrick, windmill, and dynamo. It is crested by the white 
head of an eagle, atop a white rope. Both appear on a blue field 
surrounded by concentric circles in which the name of the agency,

[[Page 541]]

in gold, appears on a green background. Detailing is in black.
    (2) The colors used in the configuration are dark green, dark blue, 
gold, black, and white.
    (3) The eagle represents the care in planning and the purposefulness 
of efforts required to respond to the Nation's increasing demands for 
energy. The sun, atom, oil derrick, windmill, and dynamo serve as 
representative technologies whose enhanced development can help meet 
these demands. The rope represents the cohesiveness in the development 
of the technologies and their link to our future capabilities. The 
lightning bolt represents the power of the natural forces from which 
energy is derived and the Nation's challenge in harnessing the forces.
    (4) The color scheme is derived from nature, symbolizing both the 
source of energy and the support of man's existence. The blue field 
represents air and water, green represents mineral resources and the 
earth itself, and gold represents the creation of energy in the release 
of natural forces. By invoking this symbolism, the color scheme 
represents the Nation's commitment to meet its energy needs in a manner 
consistent with the preservation of the natural environment.



Sec. 1002.12  Use of replicas, reproductions, and embossing seals.

    (a) The Secretary and his designees are authorized to affix 
replicas, reproductions, and embossing seals to appropriate documents, 
certifications, and other material for all purposes as authorized by 
this section.
    (b) Replicas may be used only for:
    (1) Display in or adjacent to DOE facilities, in Department 
auditoriums, presentation rooms, hearing rooms, lobbies, and public 
document rooms.
    (2) Offices of senior officials.
    (3) Official DOE distinguishing flags, adopted and utilized pursuant 
to subpart C.
    (4) Official awards, certificates, medals, and plaques.
    (5) Motion picture film, video tape and other audiovisual media 
prepared by or for DOE and attributed thereto.
    (6) Official prestige publications which represent the achievements 
or mission of DOE.
    (7) Non-DOE facilities in connection with events and displays 
sponsored by DOE, and public appearances of the Secretary or other 
designated senior DOE Officials.
    (8) For other such purposes as determined by the Director of the 
Office of Administrative Services.
    (c) Reproductions may be used only on:
    (1) DOE letterhead stationery.
    (2) Official DOE identification cards and security credentials.
    (3) Business cards for DOE employees.
    (4) Official DOE signs.
    (5) Official publications or graphics issued by and attributed to 
DOE, or joint statements of DOE with one or more Federal agencies, State 
or local governments, or foreign governments.
    (6) Official awards, certificates, and medals.
    (7) Motion picture film, video tape, and other audiovisual media 
prepared by or for DOE and attributed thereto.
    (8) For other such purposes as determined by the Director of the 
Office of Administrative Services.
    (d) Embossing seals may be used only on:
    (1) DOE legal documents, including interagency or intergovernmental 
agreements, agreements with States, foreign patent applications, and 
similar documents.
    (2) For other such purposes as determined by the General Counsel or 
the Director of Administration.
    (e) Any person who uses the official seal, replicas, reproductions, 
or embossing seals in a manner inconsistent with this part shall be 
subject to the provisions of 18 U.S.C. 1017, providing penalties for the 
wrongful use of an official seal, and to other provisions of law as 
applicable.
    (f) The official seal is being registered with the World 
Intellectual Property Organization through the U.S. Patent and Trademark 
Office.



                     Subpart C--Distinguishing Flag



Sec. 1002.21  Description of distinguishing flag.

    (a) The base or field of the flag shall be white, and a replica of 
the official seal shall appear on both sides thereof.

[[Page 542]]

    (b)(1) The indoor flag shall be of rayon banner, measure 4'4' on 
hoist by 5'6' on the fly, exclusive of heading and hems, and be fringed 
on three edges with yellow rayon fringe, 2\1/2\' wide.
    (2) The outdoor flag shall be of heavy weight nylon, and measure 
either 3' on the hoist by 5' on the fly or 5' on the hoist by 8' on the 
fly, exclusive of heading and hems.
    (c) Each flag shall be manufactured in accordance with U.S. 
Department of Defense Military Specification Mil-F-2692. The official 
seal shall be screen printed on both sides, and on each side, the 
lettering shall read from left to right. Headings shall be Type II in 
accordance with the Institute of Heraldry Drawing No. 5-1-45E.



Sec. 1002.22  Use of distinguishing flag.

    (a) DOE distinguishing flags may be used only:
    (1) In the offices of the Secretarial officers, Chairman of the 
Federal Energy Regulatory Commission, and heads of field locations 
designated below:

Power Administrations.
Regional Offices.
Operations Offices.
Certain Field Offices and other locations as designated by the Director 
of Administration.

    (2) At official DOE ceremonies.
    (3) In Department auditoriums, official presentation rooms, hearing 
rooms, lobbies, public document rooms, and in non-DOE facilities in 
connection with events or displays sponsored by DOE, and public 
appearances of DOE officials.
    (4) On or in front of DOE installation buildings.
    (5) Other such purposes as determined by the Director of 
Administration.



                      Subpart D--Unauthorized Uses



Sec. 1002.31  Unauthorized uses of the seal and flag.

    The official seal and distinguishing flag shall not be used except 
as authorized by the Director of Administration in connection with:
    (a) Contractor-operated facilities.
    (b) Souvenir or novelty items.
    (c) Toys or commercial gifts or premiums.
    (d) Letterhead design, except on official Departmental stationery.
    (e) Matchbook covers, calendars, and similar items.
    (f) Civilian clothing or equipment.
    (g) Any article which may disparage the seal or flag or reflect 
unfavorably upon DOE.
    (h) Any manner which implies Departmental endorsement of commercial 
products or services, or of the user's policies or activities.



PART 1003--OFFICE OF HEARINGS AND APPEALS PROCEDURAL REGULATIONS--Table of Contents




                      Subpart A--General Provisions

Sec.
1003.1  Purpose and scope.
1003.2  Definitions.
1003.3  Appearance before the OHA.
1003.4  Filing of documents.
1003.5  Computation of time.
1003.6  Extension of time.
1003.7  Service.
1003.8  Subpoenas, special report orders, oaths, witnesses.
1003.9  General filing requirements.
1003.10  Effective date of orders.
1003.11  Address for filing documents.
1003.12  Ratification of prior directives, orders and actions.
1003.13  Public reference room.
1003.14  Notice of proceedings.

                          Subpart B--Exceptions

1003.20  Purpose and scope.
1003.21  What to file.
1003.22  Where to file.
1003.23  Notice.
1003.24  Contents.
1003.25  OHA evaluation.
1003.26  Decision and Order.
1003.27  Appeal of exception order.

                           Subpart C--Appeals

1003.30  Purpose and scope.
1003.31  Who may file.
1003.32  What to file.
1003.33  Where to file.
1003.34  Notice.
1003.35  Contents.
1003.36  OHA evaluation.
1003.37  Decision and Order.

                            Subpart D--Stays

1003.40  Purpose and scope.
1003.41  What to file.
1003.42  Where to file.
1003.43  Notice.

[[Page 543]]

1003.44  Contents.
1003.45  OHA evaluation.
1003.46  Decision and Order.

                  Subpart E--Modification or Rescission

1003.50  Purpose and scope.
1003.51  What to file.
1003.52  Where to file.
1003.53  Notice.
1003.54  Contents.
1003.55  OHA evaluation.
1003.56  Decision and Order.

                   Subpart F--Conferences and Hearings

1003.60  Purpose and scope.
1003.61  Conferences.
1003.62  Hearings.

                Subpart G--Private Grievances and Redress

1003.70  Purpose and scope.
1003.71  Who may file.
1003.72  What to file.
1003.73  Where to file.
1003.74  Notice.
1003.75  Contents.
1003.76  OHA evaluation of request.
1003.77  Decision and Order.

    Authority: 15 U.S.C. 761 et seq.; 42 U.S.C. 7101 et seq.

    Source: 60 FR 15006, Mar. 21, 1995, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1003.1  Purpose and scope.

    This part establishes the procedures to be utilized and identifies 
the sanctions that are available in most proceedings before the Office 
of Hearings and Appeals of the Department of Energy. These procedures 
provide standard rules of practice in a variety of informal 
adjudications when jurisdiction is vested in the Office of Hearings and 
Appeals. Any or all of the procedures contained in this part may be 
incorporated by reference in another DOE rule or regulation which 
invokes the adjudicatory authority of the Office of Hearings and 
Appeals. The procedures may also be made applicable at the direction of 
an appropriate DOE official if incorporated by reference in the 
delegation. These rules do not apply in instances in which DOE 
regulations themselves contain procedures governing OHA proceedings 
conducted under authority of those particular regulations. (E.g., 10 CFR 
part 708-DOE Contractor Employee Protection Program; 10 CFR part 710-
Criteria and Procedures for Determining Eligibility for Access to 
Classified Matter or Special Nuclear Material.) These rules also do not 
apply to matters before the DOE Board of Contract Appeals or other 
procurement and financial assistance appeals boards, which are covered 
by their own rules.
[60 FR 15006, Mar. 21, 1995, as amended at 61 FR 35114, July 5, 1996]



Sec. 1003.2  Definitions.

    (a) As used in this part:
    Action means an order issued, or a rulemaking undertaken, by the 
DOE.
    Aggrieved, with respect to a person, means adversely affected by an 
action of the DOE.
    Conference means an informal meeting between the Office of Hearings 
and Appeals and any person aggrieved by an action of the DOE.
    Director means the Director of the Office of Hearings and Appeals or 
duly authorized delegate.
    DOE means the Department of Energy, created by the Department of 
Energy Organization Act (42 U.S.C. 7101 et seq.).
    Duly authorized representative means a person who has been 
designated to appear before the Office of Hearings and Appeals in 
connection with a proceeding on behalf of a person interested in or 
aggrieved by an action of the DOE. Such appearance may consist of the 
submission of a written document, a personal appearance, verbal 
communication, or any other participation in the proceeding.
    Exception means the waiver or modification of the requirements of a 
rule, regulation or other DOE action having the effect of a rule as 
defined by 5 U.S.C. 551(4) under a specific set of facts, pursuant to 
subpart B of this part.
    Federal legal holiday means the first day of January, the third 
Monday of January, the third Monday of February, the last Monday of May, 
the fourth day of July, the first Monday of September, the second Monday 
of October, the eleventh day of November, the fourth Thursday of 
November, the twenty-fifth day of December, or any

[[Page 544]]

other calendar day designated as a holiday by federal statute or 
Executive order.
    OHA means the Office of Hearings and Appeals of the Department of 
Energy.
    Order means the whole or a part of a final disposition, whether 
affirmative, negative, injunctive, or declaratory in form, of DOE in a 
matter other than rulemaking but including licensing. This definition 
does not include internal DOE orders and directives issued by the 
Secretary of Energy or delegate in the management and administration of 
departmental elements and functions.
    Person means any individual, firm, estate, trust, sole 
proprietorship, partnership, association, company, joint-venture, 
corporation, governmental unit or instrumentality thereof, or a 
charitable, educational or other institution, and includes any officer, 
director, owner or duly authorized representative thereof.
    Proceeding means the process and activity, and any part thereof, 
instituted by the OHA, either on its own initiative or in response to an 
application, complaint, petition or request submitted by a person, that 
may lead to an action by the OHA.
    SRO means a special report order issued pursuant to Sec. 1003.8(b) 
of this part.
    (b) Throughout this part the use of a word or term in the singular 
shall include the plural, and the use of the male gender shall include 
the female gender.



Sec. 1003.3  Appearance before the OHA.

    (a) A person may make an appearance, including personal appearances 
in the discretion of the OHA, and participate in any proceeding 
described in this part on his own behalf or by a duly authorized 
representative. Any application, appeal, petition, or request filed by a 
duly authorized representative shall contain a statement by such person 
certifying that he is a duly authorized representative. Falsification of 
such certification will subject such person to the sanctions stated in 
18 U.S.C. 1001.
    (b) Suspension and disqualification. The OHA may deny, temporarily 
or permanently, the privilege of participating in proceedings, including 
oral presentation, to any individual who is found by the OHA--
    (1) To have made false or misleading statements, either verbally or 
in writing;
    (2) To have filed false or materially altered documents, affidavits 
or other writings;
    (3) To lack the specific authority to represent the person seeking 
an OHA action; or
    (4) To have engaged in or to be engaged in contumacious conduct that 
substantially disrupts a proceeding.



Sec. 1003.4  Filing of documents.

    (a) Any document filed with the OHA must be addressed as required by 
Sec. 1003.11, and should conform to the requirements contained in 
Sec. 1003.9. All documents and exhibits submitted become part of an OHA 
file and will not be returned.
    (b) A document submitted in connection with any proceeding 
transmitted by first class United States mail and properly addressed is 
considered to be filed upon mailing.
    (c) Hand-delivered documents to be filed with the OHA shall be 
submitted to Room 1E-234 at 1000 Independence Avenue, SW., Washington, 
DC, on business days between the hours of 2:00 p.m. and 4:30 p.m.
    (d) Documents hand delivered or received electronically after 
regular business hours are deemed filed on the next regular business 
day.



Sec. 1003.5  Computation of time.

    (a) Days. (1) Except as provided in paragraph (b) of this section, 
in computing any period of time prescribed or allowed by these 
regulations or by an order of the OHA, the day of the act, event, or 
default from which the designated period of time begins to run is not to 
be included. The last day of the period so computed is to be included 
unless it is a Saturday, Sunday, or federal legal holiday, in which 
event the period runs until the end of the next day that is not a 
Saturday, Sunday, or a federal legal holiday.
    (2) Saturdays, Sundays and federal legal holidays shall be excluded 
from

[[Page 545]]

the computation of time when the period of time allowed or prescribed is 
7 days or less.
    (b) Hours. If the period of time prescribed in an order issued by 
the OHA is stated in hours rather than days, the period of time shall 
begin to run upon actual notice of such order, whether by verbal or 
written communication, to the person directly affected, and shall run 
without interruption, unless otherwise provided in the order, or unless 
the order is stayed, modified, suspended or rescinded. When a written 
order is transmitted by verbal communication, the written order shall be 
served as soon thereafter as is feasible.
    (c) Additional time after service by mail. Whenever a person is 
required to perform an act, to cease and desist therefrom, or to 
initiate a proceeding under this part within a prescribed period of time 
after issuance to such person of an order, notice or other document and 
the order, notice or other document is served solely by mail, 3 days 
shall be added to the prescribed period.



Sec. 1003.6  Extension of time.

    When a document is required to be filed within a prescribed time, an 
extension of time to file may be granted by the OHA upon good cause 
shown.



Sec. 1003.7  Service.

    (a) All documents required to be served under this part shall be 
served personally or by first class United States mail, except as 
otherwise provided.
    (b) Service upon a person's duly authorized representative shall 
constitute service upon that person.
    (c) Official United States Postal Service receipts from certified 
mailing shall constitute evidence of service.



Sec. 1003.8  Subpoenas, special report orders, oaths, witnesses.

    (a) In accordance with the provisions of this section and as 
otherwise authorized by law, the Director may sign, issue and serve 
subpoenas; administer oaths and affirmations; take sworn testimony; 
compel attendance of and sequester witnesses; control dissemination of 
any record of testimony taken pursuant to this section; subpoena and 
reproduce books, papers, correspondence, memoranda, contracts, 
agreements, or other relevant records or tangible evidence including, 
but not limited to, information retained in computerized or other 
automated systems in possession of the subpoenaed person.
    (b) The Director may issue a Special Report Order requiring any 
person subject to the jurisdiction of the OHA to file a special report 
providing information relating to the OHA proceeding, including but not 
limited to written answers to specific questions. The SRO may be in 
addition to any other reports required.
    (c) The Director, for good cause shown, may extend the time 
prescribed for compliance with the subpoena or SRO and negotiate and 
approve the terms of satisfactory compliance.
    (d) Prior to the time specified for compliance, but in no event more 
than 10 days after the date of service of the subpoena or SRO, the 
person upon whom the document was served may file a request for review 
of the subpoena or SRO with the Director. The Director then shall 
provide notice of receipt to the person requesting review, may extend 
the time prescribed for compliance with the subpoena or SRO, and may 
negotiate and approve the terms of satisfactory compliance.
    (e) If the subpoena or SRO is not modified or rescinded within 10 
days of the date of the Director's notice of receipt:
    (1) The subpoena or SRO shall be effective as issued; and
    (2) The person upon whom the document was served shall comply with 
the subpoena or SRO within 20 days of the date of the Director's notice 
of receipt, unless otherwise notified in writing by the Director.
    (f) There is no administrative appeal of a subpoena or SRO.
    (g) A subpoena or SRO shall be served upon a person named in the 
document by delivering a copy of the document to the person named.
    (h) Delivery of a copy of a subpoena or SRO to a natural person may 
be made by:
    (1) Handing it to the person;
    (2) Leaving it at the person's office with the person in charge of 
the office;

[[Page 546]]

    (3) Leaving it at the person's dwelling or usual place of abode with 
a person of suitable age and discretion who resides there;
    (4) Mailing it to the person by certified mail, at his last known 
address; or
    (5) Any method that provides the person with actual notice prior to 
the return date of the document.
    (i) Delivery of a copy of a subpoena or SRO to a person who is not a 
natural person may be made by:
    (1) Handing it to a registered agent of the person;
    (2) Handing it to any officer, director, or agent in charge of any 
office of such person;
    (3) Mailing it to the last known address of any registered agent, 
officer, director, or agent in charge of any office of the person by 
certified mail; or
    (4) Any method that provides any registered agent, officer, 
director, or agent in charge of any office of the person with actual 
notice of the document prior to the return date of the document.
    (j) A witness subpoenaed by the OHA may be paid the same fees and 
mileage as paid to a witness in the district courts of the United 
States.
    (k) If in the course of a proceeding a subpoena is issued at the 
request of a person other than an officer or agency of the United 
States, the witness fees and mileage shall be paid by the person who 
requested the subpoena. However, at the request of the person, the 
witness fees and mileage may be paid by the OHA if the person shows:
    (1) The presence of the subpoenaed witness will materially advance 
the proceeding; and
    (2) The person who requested that the subpoena be issued would 
suffer a serious hardship if required to pay the witness fees and 
mileage.
    (l) If any person upon whom a subpoena or SRO is served pursuant to 
this section refuses or fails to comply with any provision of the 
subpoena or SRO, an action may be commenced in the appropriate United 
States District Court to enforce the subpoena or SRO.
    (m) Documents produced in response to a subpoena shall be 
accompanied by the sworn certification, under penalty of perjury, of the 
person to whom the subpoena was directed or his authorized agent that:
    (1) A diligent search has been made for each document responsive to 
the subpoena; and
    (2) To the best of his knowledge, information, and belief each 
document responsive to the subpoena is being produced.
    (n) Any information furnished in response to an SRO shall be 
accompanied by the sworn certification, under penalty of perjury, of the 
person to whom it was directed or his authorized agent who actually 
provides the information that:
    (1) A diligent effort has been made to provide all information 
required by the SRO; and
    (2) All information furnished is true, complete, and correct.
    (o) If any document responsive to a subpoena is not produced or any 
information required by an SRO is not furnished, the certification shall 
include a statement setting forth every reason for failing to comply 
with the subpoena or SRO. If a person to whom a subpoena or SRO is 
directed withholds any document or information because of a claim of 
attorney-client or other privilege, the person submitting the 
certification required by paragraph (m) or (n) of this section also 
shall submit a written list of the documents or the information withheld 
indicating a description of each document or information, the date of 
the document, each person shown on the document as having received a 
copy of the document, each person shown on the document as having 
prepared or been sent the document, the privilege relied upon as the 
basis for withholding the document or information, and an identification 
of the person whose privilege is being asserted.
    (p) If testimony is taken pursuant to a subpoena, the Director shall 
determine whether the testimony shall be recorded and the means by which 
the testimony is recorded.
    (q) A witness whose testimony is recorded may procure a copy of his 
testimony by making a written request for a copy and paying the 
appropriate fees. However, the Director may deny the request for good 
cause. Upon proper

[[Page 547]]

identification, any witness or his attorney has the right to inspect the 
official transcript of the witness' own testimony.
    (r) The Director may sequester any person subpoenaed to furnish 
documents or give testimony. Unless permitted by the Director, neither a 
witness nor his attorney shall be present during the examination of any 
other witnesses.
    (s) A witness whose testimony is taken may be accompanied, 
represented and advised by his attorney as follows:
    (1) Upon the initiative of the attorney or witness, the attorney may 
advise his client, in confidence, with respect to the question asked his 
client, and if the witness refuses to answer any question, the witness 
or his attorney is required to briefly state the legal grounds for such 
refusal; and
    (2) If the witness claims a privilege to refuse to answer a question 
on the grounds of self-incrimination, the witness must assert the 
privilege personally.
    (t) The Director shall take all necessary action to regulate the 
course of testimony and to avoid delay and prevent or restrain 
contemptuous or obstructionist conduct or contemptuous language. OHA may 
take actions as the circumstances may warrant in regard to any instances 
where any attorney refuses to comply with directions or provisions of 
this section.



Sec. 1003.9  General filing requirements.

    (a) Purpose and scope. The provisions of this section shall apply to 
all documents required or permitted to be filed with the OHA. One copy 
of each document must be filed with the original, except as provided in 
paragraph (f) of this section. A telefax filing of a document will be 
accepted only if immediately followed by the filing by mail or hand-
delivery of the original document.
    (b) Signing. Any document that is required to be signed, shall be 
signed by the person filing the document. Any document filed by a duly 
authorized representative shall contain a statement by such person 
certifying that he is a duly authorized representative. (A false 
certification is unlawful under the provisions of 18 U.S.C. 1001.) The 
signature by the person or duly authorized representative constitutes a 
certificate by the signer that the signer has read the document and that 
to the best of the signer's knowledge, information and belief formed 
after reasonable inquiry, the document is well grounded in fact, 
warranted under existing law, and submitted in good faith and not for 
any improper purpose such as to harass or to cause unnecessary delay. If 
a document is signed in violation of this section, OHA may impose the 
sanctions specified in section 1003.3 and other sanctions determined to 
be appropriate.
    (c) Labeling. An application, petition, or other request for action 
by the OHA should be clearly labeled according to the nature of the 
action involved both on the document and on the outside of the envelope 
in which the document is transmitted.
    (d) Obligation to supply information. A person who files an 
application, petition, appeal or other request for action is under a 
continuing obligation during the proceeding to provide the OHA with any 
new or newly discovered information that is relevant to that proceeding. 
Such information includes, but is not limited to, information regarding 
any other application, petition, appeal or request for action that is 
subsequently filed by that person with any DOE office.
    (e) The same or related matters. A person who files an application, 
petition, appeal or other request for action by the OHA shall state 
whether, to the best knowledge of that person, the same or related 
issue, act or transaction has been or presently is being considered or 
investigated by any other DOE office, other federal agency, department 
or instrumentality; or by a state or municipal agency or court; or by 
any law enforcement agency, including, but not limited to, a 
consideration or investigation in connection with any proceeding 
described in this part. In addition, the person shall state whether 
contact has been made by the person or one acting on his behalf with any 
person who is employed by the DOE with regard to the same issue, act or 
transaction or a related issue, act or

[[Page 548]]

transaction arising out of the same factual situation; the name of the 
person contacted; whether the contact was verbal or in writing; the 
nature and substance of the contact; and the date or dates of the 
contact.
    (f) Request for confidential treatment. (1) If any person filing a 
document with the OHA claims that some or all of the information 
contained in the document is exempt from the mandatory public disclosure 
requirements of the Freedom of Information Act (5 U.S.C. 552), is 
information referred to in 18 U.S.C. 1905, or is otherwise exempt by law 
from public disclosure, and if such person requests the OHA not to 
disclose such information, such person shall file together with the 
document two copies of the document from which has been deleted the 
information for which such person wishes to claim confidential 
treatment. The person shall indicate in the original document that it is 
confidential or contains confidential information and must file a 
statement specifying the justification for non-disclosure of the 
information for which confidential treatment is claimed. If the person 
states that the information comes within the exception codified at 5 
U.S.C. 552(b)(4) for trade secrets and commercial or financial 
information, such person shall include a statement specifying why such 
information is privileged or confidential. If the person filing a 
document does not submit two copies of the document with the 
confidential information deleted, the OHA may assume that there is no 
objection to public disclosure of the document in its entirety.
    (2) The OHA retains the right to make its own determination with 
regard to any claim of confidentiality, under criteria specified in 10 
CFR 1004.11. Notice of the decision by the OHA to deny such claim, in 
whole or in part, and an opportunity to respond shall be given to a 
person claiming confidentiality of information no less than five days 
prior to its public disclosure.
    (g) Each application, petition or request for OHA action shall be 
submitted as a separate document, even if the applications, petitions, 
or requests deal with the same or a related issue, act or transaction, 
or are submitted in connection with the same proceeding.



Sec. 1003.10  Effective date of orders.

    Any order issued by the OHA under this part is effective as against 
all persons having actual or constructive notice thereof upon issuance, 
in accordance with its terms, unless and until it is stayed, modified, 
suspended, or rescinded. An order is deemed to be issued on the date, as 
specified in the order, on which it is signed by the Director of the OHA 
or his designee, unless the order provides otherwise.



Sec. 1003.11  Address for filing documents.

    All applications, requests, petitions, appeals, written 
communications and other documents to be submitted to or filed with the 
OHA, as provided in this part or otherwise, shall be addressed to the 
Office of Hearings and Appeals, U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585. The OHA has facilities 
for the receipt of transmissions via FAX, at FAX Number (202) 586-4972.



Sec. 1003.12  Ratification of prior directives, orders and actions.

    All orders and other directives issued, all proceedings initiated, 
and all other actions taken in accordance with 10 CFR part 205 prior to 
the effective date of this part, are hereby confirmed and ratified, and 
shall remain in full force and effect as if issued under this part, 
unless or until they are altered, amended, modified or rescinded in 
accordance with the provisions of this part.



Sec. 1003.13  Public reference room.

    There shall be maintained at the OHA, 1000 Independence Avenue, SW., 
Washington, DC, a public reference room in which shall be made available 
for public inspection and copying, during business hours from 1:00 p.m. 
to 5:00 p.m.:
    (a) A list of all persons who have applied for an exception, or 
filed an appeal or petition, and a digest of each application;
    (b) Each Decision and Order, with confidential information deleted, 
issued in response to an application for

[[Page 549]]

an exception, petition or other request, or at the conclusion of an 
appeal; and
    (c) Any other information in the possession of OHA which is required 
by statute to be made available for public inspection and copying, and 
any other information that the OHA determines should be made available 
to the public.



Sec. 1003.14  Notice of proceedings.

    At regular intervals, the OHA shall publish in the Federal Register 
a digest of the applications, appeals, petitions and other requests 
filed, and a summary of the Decisions and Orders issued by the OHA, 
pursuant to proceedings conducted under this part.



                          Subpart B--Exceptions



Sec. 1003.20  Purpose and scope.

    (a) This subpart establishes the procedures for applying for an 
exception or exemption, as provided for in section 504 (42 U.S.C. 7194) 
of the Department of Energy Organization Act (42 U.S.C. 7101 et seq.), 
from a rule, regulation or DOE action having the effect of a rule as 
defined by 5 U.S.C. 551(4), based on an assertion of serious hardship, 
gross inequity or unfair distribution of burdens, and for consideration 
of such application by the OHA. The procedures contained in this subpart 
may be incorporated by reference in another DOE rule or regulation which 
invokes the adjudicatory authority of the Office of Hearings and 
Appeals. The procedures may also be made applicable to proceedings 
undertaken at the direction of an appropriate DOE official if 
incorporated by reference in the delegation.
    (b) The filing of an application for an exception shall not 
constitute grounds for noncompliance with the requirements from which an 
exception is sought, unless a stay has been issued in accordance with 
subpart D of this part.
[60 FR 15006, Mar. 21, 1995, as amended at 61 FR 35114, July 5, 1996]



Sec. 1003.21  What to file.

    A person seeking relief under this subpart shall file an 
``Application for Exception,'' which should be clearly labeled as such 
both on the application and on the outside of the envelope in which the 
application is transmitted, and shall be in writing. The general filing 
requirements stated in Sec. 1003.9 shall be complied with in addition to 
the requirements stated in this subpart.



Sec. 1003.22  Where to file.

    All applications for exception shall be filed with the OHA at the 
address provided in Sec. 1003.11.



Sec. 1003.23  Notice.

    (a) The applicant shall send by United States mail a copy of the 
application and any subsequent amendments or other documents relating to 
the application, or a copy from which confidential information has been 
deleted in accordance with Sec. 1003.9(f), to each person who is 
reasonably ascertainable by the applicant as a person who would be 
aggrieved by the OHA action sought. The copy of the application shall be 
accompanied by a statement that the person may submit comments regarding 
the application within 10 days. The application filed with the OHA shall 
include certification to the OHA that the applicant has complied with 
the requirements of this paragraph and shall include the names and 
addresses of each person to whom a copy of the application was sent.
    (b) Notwithstanding the provision of paragraph (a) of this section, 
if an applicant determines that compliance with paragraph (a) of this 
section would be impracticable, the applicant shall:
    (1) Comply with the requirements of paragraph (a) of this section 
with regard to those persons whom it is reasonable and practicable to 
notify; and
    (2) Include with the application a description of the persons or 
class or classes of persons to whom notice was sent. The OHA may require 
the applicant to provide additional or alternative notice, may determine 
that the notice required by paragraph (a) of this section is not 
impracticable, or may determine that notice should be published in the 
Federal Register.
    (c) The OHA shall serve notice on any other person readily 
identified by the OHA as one who would be aggrieved by the OHA action 
sought and may serve

[[Page 550]]

notice on any other person that written comments regarding the 
application will be accepted if filed within 10 days of service of such 
notice.
    (d) Any person submitting written comments to the OHA with respect 
to an application filed under this subpart shall send a copy of the 
comments, or a copy from which confidential information has been deleted 
in accordance with Sec. 1003.9(f), to the applicant. The person shall 
certify to the OHA that he has complied with the requirements of this 
paragraph. The OHA may notify other persons participating in the 
proceeding of such comments and provide an opportunity for such persons 
to respond.



Sec. 1003.24  Contents.

    (a) The application shall contain a full and complete statement of 
all relevant facts pertaining to the circumstances, act or transaction 
that is the subject of the application and to the OHA action sought. 
Such facts shall include the names and addresses of all affected persons 
(if reasonably ascertainable); a complete statement of the business or 
other reasons that justify the act or transaction; a description of the 
acts or transactions that would be affected by the requested OHA action; 
and a full discussion of the pertinent provisions and relevant facts 
contained in the documents submitted with the application. Copies of all 
relevant contracts, agreements, leases, instruments, and other documents 
shall be submitted with the application.
    (b) The applicant shall state whether he requests or intends to 
request that there be a conference or hearing regarding the application. 
Any request not made at the time the application is filed shall be made 
as soon thereafter as possible. The request and the OHA determination on 
the request shall be made in accordance with subpart F of this part.
    (c) The application shall include a discussion of all relevant 
authorities, including, but not limited to, DOE rules, regulations, and 
decisions on appeals and exceptions relied upon to support the 
particular action sought therein.
    (d) The application shall specify the exact nature and extent of the 
relief requested.



Sec. 1003.25  OHA evaluation.

    (a)(1) OHA may initiate an investigation of any statement in an 
application and utilize in its evaluation any relevant facts obtained by 
such investigation. The OHA may solicit and accept submissions from 
third persons relevant to any application provided that the applicant is 
afforded an opportunity to respond to all third person submissions. In 
evaluating an application, the OHA may consider any other source of 
information. The OHA on its own initiative may convene a hearing or 
conference, if, in its discretion, it considers that such hearing or 
conference will advance its evaluation of the application. The OHA may 
issue appropriate orders as warranted in the proceeding.
    (2) If the OHA determines that there is insufficient information 
upon which to base a decision and if upon request additional information 
is not submitted by the applicant, the OHA may dismiss the application 
without prejudice. If the failure to supply additional information is 
repeated or willful, the OHA may dismiss the application with prejudice. 
If the applicant fails to provide the notice required by Sec. 1003.23, 
the OHA may dismiss the application without prejudice.
    (b)(1) The OHA shall consider an application for an exception only 
when it determines that a more appropriate proceeding is not provided by 
DOE regulations.
    (2) An application for an exception may be granted to alleviate or 
prevent serious hardship, gross inequity or unfair distribution of 
burdens.
    (3) An application for an exception shall be decided in a manner 
that is, to the extent possible, consistent with the disposition of 
previous applications for exception.



Sec. 1003.26  Decision and Order.

    (a) Upon consideration of the application and other relevant 
information received or obtained during the proceeding, the OHA shall 
issue an order granting or denying the application, in whole or in part.

[[Page 551]]

    (b) The Decision and Order shall include a written statement setting 
forth the relevant facts and the legal basis of the order. The Decision 
and Order shall provide that any person aggrieved thereby may file an 
appeal in accordance with Sec. 1003.27.
    (c) The OHA shall serve a copy of the Decision and Order upon the 
applicant, any other person who participated in the proceeding, and upon 
any other person readily identifiable by the OHA as one who is aggrieved 
by such Decision and Order.



Sec. 1003.27  Appeal of exception order.

    (a) Except as provided in paragraph (b) of this section, any person 
aggrieved by an order issued by the OHA under this subpart may file an 
appeal with the OHA in accordance with subpart C of this part. Any 
appeal filed under this paragraph must be filed within 30 days of 
service, or constructive service under Sec. 1003.14, of the order from 
which the appeal is taken.
    (b) Any person aggrieved or adversely affected by the denial of a 
request for exception relief filed pursuant to Sec. 504 of the 
Department of Energy Organization Act (42 U.S.C. 7194) may appeal to the 
Federal Energy Regulatory Commission, in accordance with the 
Commission's regulations.



                           Subpart C--Appeals



Sec. 1003.30  Purpose and scope.

    This subpart establishes the procedures for the filing of an 
administrative appeal of a DOE order and for the consideration of the 
appeal by the Office of Hearings and Appeals. Unless a program rule or 
regulation or a DOE delegation of authority provides otherwise, a person 
aggrieved by a DOE order appealable under this subpart has not exhausted 
his or her administrative remedies until an appeal has been filed under 
this subpart and an order granting or denying the appeal has been 
issued. A person filing an appeal must also file an ``Application for 
Stay'' under subpart D of this part if the grant of a stay is necessary 
under Section 10(c) of the Administrative Procedure Act (5 U.S.C. 704) 
to preclude judicial review pending final action on the appeal.



Sec. 1003.31  Who may file.

    Any person may file an appeal under this subpart who is so 
authorized by Sec. 1003.27, a program rule or regulation, or a DOE 
delegation of authority.



Sec. 1003.32  What to file.

    A person filing under this subpart shall file an ``Appeal of Order'' 
which should be clearly labeled as such both on the appeal and on the 
outside of the envelope in which the appeal is transmitted, and shall be 
in writing. The general filing requirements stated in Sec. 1003.9 shall 
be complied with in addition to the requirements stated in this subpart.



Sec. 1003.33  Where to file.

    The appeal shall be filed with the OHA at the address provided in 
Sec. 1003.11.



Sec. 1003.34  Notice.

    (a) The appellant shall send by United States mail a copy of the 
appeal and any subsequent amendments or other documents relating to the 
appeal, or a copy from which confidential information has been deleted 
in accordance with Sec. 1003.9(f), to each person who is reasonably 
ascertainable by the appellant as a person who would be aggrieved by the 
OHA action sought, including those who participated in the process that 
led to the issuance of the order from which the appeal has been taken. 
The copy of the appeal shall be accompanied by a statement that the 
person may submit comments regarding the appeal to the OHA within 10 
days. The appeal filed with the OHA shall include certification to the 
OHA that the appellant has complied with the requirements of this 
paragraph and shall include the names and addresses of each person to 
whom a copy of the appeal was sent.
    (b) Notwithstanding the provisions of paragraph (a) of this section, 
if any appellant determines that compliance with paragraph (a) of this 
section would be impracticable, the appellant shall:
    (1) Comply with the requirements of paragraph (a) of this section 
with regard to those persons whom it is reasonable and possible to 
notify; and

[[Page 552]]

    (2) Include with the appeal a description of the persons or class or 
classes of persons to whom notice was not sent. The OHA may require the 
appellant to provide additional or alternative notice, may determine 
that the notice required by paragraph (a) of this section is not 
impracticable, or may determine that notice should be published in the 
Federal Register.
    (c) The OHA shall serve notice on any other person readily 
identifiable by the OHA as one who would be aggrieved by the OHA action 
sought and may serve notice on any other person that written comments 
regarding the appeal will be accepted if filed within 10 days of the 
service of that notice.
    (d) Any person submitting written comments to the OHA with respect 
to an appeal filed under this subpart shall send a copy of the comments, 
or a copy from which confidential information has been deleted in 
accordance with Sec. 1003.9(f), to the appellant. The person shall 
certify to the OHA that he has complied with the requirements of this 
paragraph. The OHA may notify other persons participating in the 
proceeding of such comments and provide an opportunity for such persons 
to respond.



Sec. 1003.35  Contents.

    (a) The appeal shall contain a concise statement of grounds upon 
which it is brought and a description of the relief sought. It shall 
include a discussion of all relevant authorities, including, but not 
limited to, DOE rules, regulations, and decisions on appeals and 
exceptions relied upon to support the appeal. If the appeal includes a 
request for relief based on significantly changed circumstances, there 
shall be a complete description of the events, acts, or transactions 
that comprise the significantly changed circumstances, and the appellant 
shall state why, if the significantly changed circumstance is new or 
newly discovered facts, such facts were not or could not have been 
presented during the process that led to the issuance of the order from 
which the appeal has been taken. For purposes of this subpart, the term 
``significantly changed circumstances'' shall mean--
    (1) The discovery of material facts that were not known or could not 
have been known at the time of the process that led to the issuance of 
the order from which the appeal has been taken;
    (2) The discovery of a law, rule, regulation, order or decision on 
an appeal or any exception that was in effect at the time of the process 
that led to the issuance of the order from which the appeal has been 
taken, and which, if such had been made known to DOE, would have been 
relevant and would have substantially altered the outcome; or
    (3) A substantial change in the facts or circumstances upon which an 
outstanding and continuing order affecting the appellant was issued, 
which change has occurred during the interval between issuance of the 
order and the date of the appeal and was caused by forces or 
circumstances beyond the control of the appellant.
    (b) A copy of the order that is the subject of the appeal shall be 
submitted with the appeal.
    (c) The appellant shall state whether he requests or intends to 
request that there be a conference or hearing regarding the appeal. Any 
request not made at the time the appeal is filed shall be made as soon 
thereafter as possible. The request and the OHA determination on the 
request shall be made in accordance with subpart F of this part.



Sec. 1003.36  OHA evaluation.

    (a)(1) The OHA may initiate an investigation of any statement in an 
appeal and utilize in its evaluation any relevant facts obtained by such 
investigation. The OHA may solicit and accept submissions from third 
persons relevant to any appeal provided that the appellant is afforded 
an opportunity to respond to all third person submissions. In evaluating 
an appeal, the OHA may consider any other source of information. The OHA 
on its own initiative may convene a conference or hearing if, in its 
discretion, it considers that such conference or hearing will advance 
its evaluation of the appeal.
    (2) If the OHA determines that there is insufficient information 
upon which to base a decision and if, upon request, the necessary 
additional information is not submitted, the OHA may dismiss the appeal 
with leave to refile within a specified time. If the failure to supply

[[Page 553]]

additional information is repeated or willful, the OHA may dismiss the 
appeal with prejudice. If the appellant fails to provide the notice 
required by Sec. 1003.34, the OHA may dismiss the appeal without 
prejudice.
    (b) The OHA may issue an order summarily denying the appeal if--
    (1) It is not filed in a timely manner, unless good cause is shown; 
or
    (2) It is defective on its face for failure to state, and to present 
facts and legal argument in support thereof, that the DOE action was 
erroneous in fact or in law, or that it was arbitrary or capricious.
    (c) The OHA may deny any appeal if the appellant does not establish 
that--
    (1) The appeal was filed by a person aggrieved by a DOE action;
    (2) The DOE's action was erroneous in fact or in law; or
    (3) The DOE's action was arbitrary or capricious.



Sec. 1003.37  Decision and Order.

    (a) Upon consideration of the appeal and other relevant information 
received or obtained during the proceeding, the OHA shall enter an 
appropriate order, which may include the modification of the order that 
is the subject of the appeal.
    (b) The Decision and Order shall include a written statement setting 
forth the relevant facts and the legal basis of the Decision and Order. 
The Decision and Order shall state that it is a final order of the DOE 
of which the appellant may seek judicial review.
    (c) The OHA shall serve a copy of the Decision and Order upon the 
appellant, any other person who participated in the proceeding, and upon 
any other person readily identifiable by the OHA as one who is aggrieved 
by such Decision and Order.



                            Subpart D--Stays



Sec. 1003.40  Purpose and scope.

    (a) This subpart establishes the procedures for applying for a stay. 
It also specifies the nature of the relief which may be effectuated 
through the approval of a stay.
    (b) An application for a stay will be considered if it is incident 
to a submission over which OHA has jurisdiction. An application for stay 
may also be considered if the stay is requested pending judicial review 
of an order issued by the OHA.
    (c) All applicable DOE rules, regulations, orders, and generally 
applicable requirements shall be complied with unless and until an 
application for a stay is granted.



Sec. 1003.41  What to file.

    A person filing under this subpart shall file an ``Application for 
Stay'' which should be clearly labeled as such both on the application 
and on the outside of the envelope in which the application is 
transmitted. The application shall be in writing. The general filing 
requirements stated in Sec. 1003.9 shall be complied with in addition to 
the requirements stated in this subpart.



Sec. 1003.42  Where to file.

    An Application for Stay shall be filed with the OHA at the address 
provided in Sec. 1003.11.



Sec. 1003.43  Notice.

    (a) An applicant for stay shall notify each person readily 
identifiable as one who will be directly aggrieved by the OHA action 
sought that it has filed an Application for Stay. The applicant shall 
serve the application on each identified person and shall notify each 
such person that the OHA will receive and endeavor to consider, subject 
to time constraints imposed by the urgency of the proceeding, written 
comments on the application that are submitted immediately.
    (b) Any person submitting written comments to the OHA with respect 
to an application filed under this subpart shall send a copy of the 
comments, or a copy from which confidential information has been deleted 
in accordance with Sec. 1003.9(f), to the applicant. The person shall 
certify to the OHA that he has complied with the requirements of this 
paragraph. The OHA may notify other persons participating in the 
proceeding of such comments and provide an opportunity for such persons 
to respond.
    (c) The OHA shall require the applicant to take reasonable measures 
depending on the circumstances and urgency of the case to notify each 
person

[[Page 554]]

readily identified as one that would be directly aggrieved by the OHA 
action sought of the date, time and place of any hearing or other 
proceedings in the matter. However, if the Director of the OHA concludes 
that the circumstances presented by the applicant justify immediate 
action, the OHA may issue a Decision on the Application for Stay prior 
to receipt of written comments or the oral presentation of views by 
adversely affected parties.



Sec. 1003.44  Contents.

    (a) An Application for Stay shall contain a full and complete 
statement of all relevant facts pertaining to the act or transaction 
that is the subject of the application and to the OHA action sought. 
Such facts shall include, but not be limited to, all information that 
relates to satisfaction of the criteria in Sec. 1003.45(b).
    (b) The application shall include a description of the proceeding 
incident to which the stay is being sought. This description shall 
contain a discussion of all DOE actions relevant to the proceeding.
    (c) The applicant shall state whether he requests that a conference 
or hearing be convened regarding the application, as provided in subpart 
F of this part.



Sec. 1003.45  OHA evaluation.

    (a)(1) The OHA may initiate an investigation of any statement in an 
application and utilize in its evaluation any relevant facts obtained by 
such investigation. The OHA may order the submission of additional 
information, and may solicit and accept submissions from third persons 
relevant to an application provided that the applicant is afforded an 
opportunity to respond to all third person submissions. In evaluating an 
application, the OHA may also consider any other source of information, 
and may conduct hearings or conferences either in response to requests 
by parties in the proceeding or on its own initiative.
    (2) If the OHA determines that there is insufficient information 
upon which to base a decision and if upon request additional information 
is not submitted by the applicant, the OHA may dismiss the application 
without prejudice. If the failure to supply additional information is 
repeated or willful, the OHA may dismiss the application with prejudice.
    (3) The OHA shall process applications for stay as expeditiously as 
possible. When administratively feasible, the OHA shall grant or deny an 
Application for Stay within 10 business days after receipt of the 
application.
    (4) Notwithstanding any other provision of the DOE regulations, the 
OHA may make a decision on any Application for Stay prior to the receipt 
of written comments.
    (b) The criteria to be considered and weighed by the OHA in 
determining whether a stay should be granted are:
    (1) Whether a showing has been made that an irreparable injury will 
result in the event that the stay is denied;
    (2) Whether a showing has been made that a denial of the stay will 
result in a more immediate hardship or inequity to the applicant than a 
grant of the stay would cause to other persons affected by the 
proceeding;
    (3) Whether a showing has been made that it would be desirable for 
public policy reasons to grant immediate relief pending a decision by 
OHA on the merits;
    (4) Whether a showing has been made that it is impossible for the 
applicant to fulfill the requirements of an outstanding order or 
regulatory provision; and
    (5) Whether a showing has been made that there is a strong 
likelihood of success on the merits.



Sec. 1003.46  Decision and Order.

    (a) In reaching a decision with respect to an Application for Stay, 
the OHA shall consider all relevant information in the record. An 
Application for Stay may be decided by the issuance of an order either 
during the course of a hearing or conference in which an official 
transcript is maintained or in a separate written Decision and Order. 
Any such order shall include a statement of the relevant facts and the 
legal basis of the decision. The approval or denial of a stay is not an 
order of the OHA that is subject to administrative or judicial review.
    (b) In its discretion and upon a determination that it would be 
desirable to

[[Page 555]]

do so in order to further the objectives stated in the regulations or in 
the statutes the DOE is responsible for administering, the OHA may order 
a stay on its own initiative.



                  Subpart E--Modification or Rescission



Sec. 1003.50  Purpose and scope.

    This subpart establishes the procedures for the filing of an 
application for modification or rescission of a DOE order. An 
application for modification or rescission is a summary proceeding that 
will be initiated only if the criteria described in Sec. 1003.55(b) are 
satisfied.



Sec. 1003.51  What to file.

    A person filing under this subpart shall file an ``Application for 
Modification (or Rescission),'' which should be clearly labeled as such 
both on the application and on the outside of the envelope in which the 
application is transmitted, and shall be in writing. The general filing 
requirements stated in Sec. 1003.9 shall be complied with in addition to 
the requirements stated in this subpart.



Sec. 1003.52  Where to file.

    The application shall be filed with the OHA at the address provided 
in Sec. 1003.11.



Sec. 1003.53  Notice.

    (a) The applicant shall send by United States mail a copy of the 
application and any subsequent amendments or other documents relating to 
the application, from which confidential information has been deleted in 
accordance with Sec. 1003.9(f), to each person who is reasonably 
ascertainable by the applicant as a person who would be aggrieved by the 
OHA action sought, including persons who participated in the process 
that led to the issuance of the order for which the modification or 
rescission is sought. The copy of the application shall be accompanied 
by a statement that the person may submit comments regarding the 
application to the OHA within 10 days. The application filed with the 
OHA shall include certification to the OHA that the applicant has 
complied with the requirements of this paragraph and shall include the 
names and addresses of all persons to whom a copy of the application was 
sent.
    (b) If an applicant determines that compliance with paragraph (a) of 
this section would be impracticable, the applicant shall:
    (1) Comply with the requirements of paragraph (a) of this section 
with regard to those persons whom it is reasonable and possible to 
notify; and
    (2) Include with the application a description of the persons or 
class or classes of persons to whom notice was not sent. The OHA may 
require the applicant to provide additional or alternative notice, may 
determine that the notice required by paragraph (a) of this section is 
not impracticable, or may determine that notice should be published in 
the Federal Register.
    (c) The OHA shall serve notice on any other person readily 
identifiable by the OHA as one who would be aggrieved by the OHA action 
sought and may serve notice on any other person that written comments 
regarding the application will be accepted if filed within 10 days of 
service of that notice.
    (d) Any person submitting written comments to the OHA with respect 
to an application filed under this subpart shall send a copy of the 
comments, or a copy from which confidential information has been deleted 
in accordance with Sec. 1003.9(f), to the applicant. The person shall 
certify to the OHA that he has complied with the requirement of this 
paragraph. The OHA may notify other persons participating in the 
proceeding of such comments and provide an opportunity for such persons 
to respond.



Sec. 1003.54  Contents.

    (a) The application shall contain a full and complete statement of 
all relevant facts pertaining to the circumstances, act or transaction 
that is the subject of the application and to the OHA action sought. 
Such facts shall include the names and addresses of all affected persons 
(if reasonably ascertainable), a complete statement of the business or 
other reasons that justify the act or transaction, a description of the 
acts or transactions

[[Page 556]]

that would be affected by the requested action, and a full description 
of the pertinent provisions and relevant facts contained in any relevant 
documents. Copies of all contracts, agreements, leases, instruments, and 
other documents relevant to the application shall be submitted to the 
OHA upon its request. A copy of the order of which modification or 
rescission is sought shall be included with the application.
    (b) The applicant shall state whether he requests or intends to 
request that there be a conference regarding the application. Any 
request not made at the time the application is filed shall be made as 
soon thereafter as possible. The request and the OHA determination on 
the request shall be made in accordance with subpart F of this part.
    (c) The applicant shall fully describe the events, acts, or 
transactions that comprise the significantly changed circumstances, as 
defined in Sec. 1003.55(b)(2), upon which the application is based. The 
applicant shall state why, if the significantly changed circumstance is 
new or newly discovered facts, such facts were not or could not have 
been presented during the process that led to the issuance of the order 
for which modification or rescission is sought.
    (d) The application shall include a discussion of all relevant 
authorities, including, but not limited to, DOE rules, regulations, and 
decisions on appeal and exceptions relied upon to support the action 
sought therein.



Sec. 1003.55  OHA evaluation.

    (a)(1) The OHA may initiate an investigation of any statement in an 
application and utilize in its evaluation any relevant facts obtained by 
such investigation. The OHA may solicit and accept submissions from 
third persons relevant to any application for modification or rescission 
provided that the applicant is afforded an opportunity to respond to all 
third person submissions. In evaluating an application for modification 
or rescission, the OHA may convene a conference, on its own initiative, 
if, in its discretion, it considers that such conference will advance 
its evaluation of the application.
    (2) If the OHA determines that there is insufficient information 
upon which to base a decision and if upon request the necessary 
additional information is not submitted, the OHA may dismiss the 
application without prejudice. If the failure to supply additional 
information is repeated or willful, the OHA may dismiss the application 
with prejudice. If the applicant fails to provide the notice required by 
Sec. 1003.53, the OHA may dismiss the application without prejudice.
    (b)(1) An application for modification or rescission of an order 
shall be processed only if--
    (i) The application demonstrates that it is based on significantly 
changed circumstances; and
    (ii) The period within which a person may file an appeal has lapsed 
or, if an appeal has been filed, a final order has been issued.
    (2) For purposes of this subpart, the term ``significantly changed 
circumstances'' shall mean--
    (i) The discovery of material facts that were not known or could not 
have been known at the time of the proceeding and action upon which the 
application is based;
    (ii) The discovery of a law, rule, regulation, order or decision on 
appeal or exception that was in effect at the time of the proceeding 
upon which the application is based and which, if such had been made 
known to the OHA, would have been relevant to the proceeding and would 
have substantially altered the outcome; or
    (iii) There has been a substantial change in the facts or 
circumstances upon which an outstanding and continuing order of the OHA 
affecting the applicant was issued, which change has occurred during the 
interval between issuance of such order and the date of the application 
and was caused by forces or circumstances beyond the control of the 
applicant.



Sec. 1003.56  Decision and Order.

    (a) Upon consideration of the application and other relevant 
information received or obtained during the proceeding, the OHA shall 
issue a Decision and Order granting or denying the application.
    (b) The Decision and Order shall include a written statement setting 
forth the relevant facts and the legal basis of

[[Page 557]]

the Decision and Order. When appropriate, the Decision and Order shall 
state that it is a final order of which the applicant may seek judicial 
review.
    (c) The OHA shall serve a copy of the Decision and Order upon the 
applicant, any other person who participated in the proceeding and upon 
any other person readily identifiable by the OHA as one who is aggrieved 
by such Decision and Order.



                   Subpart F--Conferences and Hearings



Sec. 1003.60  Purpose and scope.

    This subpart establishes the procedures for requesting and 
conducting an OHA conference or hearing. Such proceedings shall be 
convened in the discretion of the OHA, consistent with OHA requirements.



Sec. 1003.61  Conferences.

    (a) The OHA in its discretion may direct that a conference be 
convened, on its own initiative or upon request by a person, when it 
appears that such conference will materially advance the proceeding. The 
determination as to who may attend a conference convened under this 
subpart shall be in the discretion of the OHA, but a conference will 
usually not be open to the public.
    (b) A conference may be requested in connection with any proceeding 
of the OHA by any person who would be aggrieved by that proceeding. The 
request may be made in writing or verbally, but must include a specific 
showing as to why such conference will materially advance the 
proceeding. The request shall be addressed to the OHA, as provided in 
Sec. 1003.11.
    (c) A conference may only be convened after actual notice of the 
time, place and nature of the conference is provided to the person who 
requested the conference.
    (d) When a conference is convened in accordance with this section, 
each person may present views as to the issues involved. Documentary 
evidence may be presented at the conference, but will be treated as if 
submitted in the regular course of the proceeding. A transcript of the 
conference will not usually be prepared. However, the OHA in its 
discretion may have a verbatim transcript prepared.
    (e) Because a conference is solely for the exchange of views 
incident to a proceeding, there will be no formal reports or findings 
unless the OHA in its discretion determines that such would be 
advisable.



Sec. 1003.62  Hearings.

    (a) The OHA in its discretion may direct that a hearing be convened 
on its own initiative or upon request by a person, when it appears that 
such hearing will materially advance the proceeding. All hearings 
convened pursuant to this subpart shall be conducted by the Director of 
the OHA or his designee. The determination as to who may attend a 
hearing convened under this subpart shall be in the discretion of OHA. 
Hearings will be open to the public, but may be closed at the discretion 
of OHA if the reason is put in the record.
    (b) A hearing may be requested by an applicant, appellant, or any 
other person who would be aggrieved by the OHA action sought. The 
request shall be in writing and shall include a specific showing as to 
why such hearing will materially advance the proceeding. The request 
shall be addressed to the OHA at the address provided in Sec. 1003.11.
    (c) A hearing may be convened only after actual notice of the time, 
place, and nature of the hearing is provided both to the applicant or 
appellant and to any other person readily identifiable by the OHA as one 
who would be aggrieved by the OHA action involved. The notice shall 
include, as appropriate:
    (1) A statement that such person may participate in the hearing; or
    (2) A statement that such person may request a separate conference 
or hearing regarding the application or appeal.
    (d) When a hearing is convened in accordance with this section, each 
person may present views as to the issue or issues involved. Documentary 
evidence may be presented at the hearing, but will be treated as if 
submitted in the regular course of the proceeding. A transcript of the 
hearing will be prepared.

[[Page 558]]

    (e) If material factual issues remain in dispute after an 
application or appeal has been filed, the Director of the OHA or his 
designee may issue an order convening an evidentiary hearing in which 
witnesses shall testify under oath, subject to cross-examination, for 
the record and in the presence of a Presiding Officer. A Motion for 
Evidentiary Hearing should specify the type of witness or witnesses 
whose testimony is sought, the scope of questioning that is anticipated, 
and the relevance of the questioning to the proceeding. A motion may be 
summarily denied for lack of sufficient specificity, because an 
evidentiary hearing would place an undue burden on another person or the 
DOE, or because an evidentiary hearing would cause undue delay.
    (f) A Motion for Evidentiary Hearing must be served on any person 
from whom information is sought and on parties to the underlying 
administrative action. Any person who wishes to respond to a Motion for 
Evidentiary Hearing must do so within ten days of service.
    (g) In reaching a decision with respect to a request for a hearing 
or motion filed under this subpart, the OHA shall consider all relevant 
information in the record. If an order is issued granting a hearing or 
evidentiary hearing, in whole or in part, the order shall specify the 
parties, any limitations on the participation of a party, and the issues 
to be considered. An order of the OHA issued under this section is an 
interlocutory order which is subject to further administrative review or 
appeal only upon issuance of a final Decision and Order in the 
proceeding concerned.
    (h) At any evidentiary hearing, the parties shall have the 
opportunity to present material evidence that directly relates to a 
particular issue set forth for hearing. The Presiding Officer may 
administer oaths or affirmations, rule on objections to the presentation 
of evidence, receive relevant material, require the advance submission 
of documents offered as evidence, dispose of procedural requests, 
determine the format of the hearing, modify any order granting a Motion 
for Evidentiary Hearing, direct that written motions, documents or 
briefs be filed with respect to issues raised during the course of the 
hearing, ask questions of witnesses, issue subpoenas, direct that 
documentary evidence be served upon other parties (under protective 
order if such evidence is deemed confidential) and otherwise regulate 
the conduct of the hearing.



                Subpart G--Private Grievances and Redress



Sec. 1003.70  Purpose and scope.

    The OHA shall receive and consider petitions that seek special 
redress relief or other extraordinary assistance as provided for in the 
Federal Energy Administration Act of 1974, Section 21 (15 U.S.C. 780), 
apart from or in addition to the other proceedings described in this 
part. This subpart may also apply if cross referenced in another DOE 
rule or regulation, or in a DOE delegation of authority. Petitions under 
this subpart shall include those seeking special assistance based on an 
assertion that DOE is not complying with its rules, regulations, or 
orders.



Sec. 1003.71  Who may file.

    Any person may file a petition under this subpart who is adversely 
affected by any DOE rule, regulation or order subject to 15 U.S.C. 780 
or who is so authorized by a program rule or regulation or a DOE 
delegation of authority.



Sec. 1003.72  What to file.

    The person seeking relief under this subpart shall file a ``Petition 
for Special Redress or Other Relief,'' which shall be clearly labeled as 
such both on the petition and on the outside of the envelope in which it 
is transmitted, and shall be in writing. The general filing requirements 
stated in Sec. 1003.9 shall be complied with in addition to the 
requirements stated in this subpart.



Sec. 1003.73  Where to file.

    A petition shall be filed with the OHA at the address provided in 
Sec. 1003.11.



Sec. 1003.74  Notice.

    (a) The person filing the petition, except a petition that asserts 
that the

[[Page 559]]

DOE is not complying with agency rules, regulations, or orders, shall 
send by United States mail a copy of the petition and any subsequent 
amendments or other documents relating to the petition, or a copy from 
which confidential information has been deleted in accordance with 
Sec. 1003.9(f), to each person who is reasonably ascertainable by the 
petitioner as a person who would be aggrieved by the OHA action sought. 
The copy of the petition shall be accompanied by a statement that the 
person may submit comments regarding the petition to the OHA within 10 
days. The copy filed with the OHA shall include certification that the 
requirements of this paragraph have been complied with and shall include 
the names and addresses of each person to whom a copy of the petition 
was sent.
    (b) Notwithstanding the provisions of paragraph (a) of this section, 
if the petitioner determines that compliance with paragraph (a) of this 
section would be impracticable, the petitioner shall:
    (1) Comply with the requirements of paragraph (a) of this section 
with regard to those persons whom it is reasonable and practicable to 
notify; and
    (2) Include with the petition a description of the persons or class 
or classes of persons to whom notice was not sent.
    (3) The OHA may require the petitioner to provide additional or 
alternative notice, or may determine that the notice required by 
paragraph (a) of this section is not impracticable, or may determine 
that notice should be published in the Federal Register.
    (c) The OHA shall serve notice on any other person readily 
identifiable by the OHA as one who would be aggrieved by the OHA action 
sought and may serve notice on any other person that written comments 
regarding the petition will be accepted if filed within 10 days of 
service of that notice.
    (d) Any person submitting written comments to the OHA regarding a 
petition filed under his subpart shall send a copy of the comments, or a 
copy from which confidential information has been deleted in accordance 
with Sec. 1003.9(f), to the petitioner. The person shall certify to the 
OHA that he has complied with the requirements of this paragraph. The 
OHA may notify other persons participating in the proceeding of such 
comments and provide an opportunity for such persons to respond.



Sec. 1003.75  Contents.

    The petition shall contain a full and complete statement of all 
relevant facts pertaining to the circumstances, act or transaction that 
is the subject of the petition and to the OHA action sought. Such facts 
shall include, but not be limited to, the names and addresses of all 
affected persons (if reasonably ascertainable); a complete statement of 
the business or other reasons that justify the act or transaction, if 
applicable; a description of the act or transaction, if applicable; a 
description of the acts or transactions that would be affected by the 
requested action; a full discussion of the pertinent provisions and 
relevant facts contained in the documents submitted with the petition, 
and an explanation of how the petitioner is aggrieved by DOE's position. 
Copies of all contracts, agreements, leases, instruments, and other 
documents relevant to the petition shall be submitted to the OHA upon 
its request.



Sec. 1003.76  OHA evaluation of request.

    (a)(1) The OHA may initiate an investigation of any statement in a 
petition and utilize in its evaluation any relevant facts obtained by 
such investigation. The OHA may solicit and accept submissions from 
third persons relevant to any petition provided that the petitioner is 
afforded an opportunity to respond to all third person submissions. In 
evaluating a petition, the OHA may consider any other source of 
information. The OHA on its own initiative may convene a conference, if, 
in its discretion, it considers that such will advance its evaluation of 
the petition.
    (2) If the OHA determines that there is insufficient information 
upon which to base a decision and if, upon request, the necessary 
additional information is not submitted, the OHA may dismiss the 
petition without prejudice. If the failure to supply additional 
information is repeated or willful, the OHA may dismiss the petition 
with prejudice. If the petitioner fails to provide

[[Page 560]]

the notice required by Sec. 1003.74, the OHA may dismiss the petition 
without prejudice.
    (b)(1) The OHA will dismiss without prejudice a ``Petition for 
Special Redress or Other Relief'' if it determines that another more 
appropriate proceeding is provided by this part.
    (2) The OHA will dismiss with prejudice a ``Petition for Special 
Redress or Other Relief'' filed by a person who has exhausted his 
administrative remedies with respect to any proceeding provided by this 
part, and received a final order therefrom that addresses the same issue 
or transaction.



Sec. 1003.77  Decision and Order.

    (a) Upon consideration of the petition and other relevant 
information received or obtained during the proceeding, the OHA will 
issue a Decision and Order granting or denying the petition.
    (b) The Decision and Order denying or granting the petition shall 
include a written statement setting forth the relevant facts and legal 
basis for the Decision and Order. Such Decision and Order shall state 
that it is a final order of the DOE of which the petitioner may seek 
judicial review.



PART 1004--FREEDOM OF INFORMATION--Table of Contents




Sec.
1004.1  Purpose and scope.
1004.2  Definitions.
1004.3  Public reading facilities and policy on contractor records.
1004.4  Elements of a request.
1004.5  Processing requests for records.
1004.6  Requests for classified records.
1004.7  Responses by authorizing officials: Form and content.
1004.8  Appeals of initial denials.
1004.9  Fees for providing records.
1004.10  Exemptions.
1004.11  Handling information of a private business, foreign government, 
          or an international organization.
1004.12  Computation of time.

    Authority: 5 U.S.C. 552.

    Source: 53 FR 15661, May 3, 1988, unless otherwise noted.



Sec. 1004.1  Purpose and scope.

    This part contains the regulations of the Department of Energy (DOE) 
that implement 5 U.S.C. 552, Pub. L. 89-487, as amended by Pub. L. 93-
502, 88 Stat. 1561, by Pub. L. 94-409, 90 Stat. 1241, and by Pub. L. 99-
570, 100 Stat. 3207-49. The regulations of this part provide information 
concerning the procedures by which records may be requested from all DOE 
offices, excluding the Federal Energy Regulatory Commission (FERC). 
Records of the DOE made available pursuant to the requirements of 5 
U.S.C. 552 shall be furnished to members of the public as prescribed by 
this part. Persons seeking information or records of the DOE may find it 
helpful to consult with a DOE Freedom of Information Officer before 
invoking the formal procedures set out below. To the extent permitted by 
other laws, the DOE will make records available which it is authorized 
to withhold under 5 U.S.C. 552 whenever it determines that such 
disclosure is in the public interest.



Sec. 1004.2  Definitions.

    As used in this part:
    (a) Appeal Authority means the Office of Hearings and Appeals.
    (b) Authorizing or Denying Official means that DOE officer as 
identified by the Directorate of Administration by separate directive, 
having custody of or responsibility for records requested under 5 U.S.C. 
552. In DOE Headquarters, the term refers to The Freedom of Information 
Officer as defined below and officials who report directly to either the 
Office of the Secretary or a Secretarial Officer as also defined below. 
In the Field Offices, the term refers to the head of a field location 
identified in Sec. 1004.2(h) and the heads of field offices to which 
they provide administrative support and have delegated this authority.
    (c) `Commercial use' request refers to a request from or on behalf 
of one who seeks information for a use or purpose that furthers the 
commercial, trade, or profit interests of the requester or the person on 
whose behalf the request is made. In determining whether a requester 
properly belongs in this category, agencies must determine how the 
requester will use the documents requested. Moreover, where DOE has 
reasonable cause to doubt the use to which a requester will put the 
records

[[Page 561]]

sought, or where that use is not evident from the request itself, the 
DOE will seek additional clarification before assigning the request to a 
specific category.
    (d) Department or Department of Energy (DOE) means all 
organizational entities which are a part of the executive department 
created by Title II of the DOE Organization Act, Pub L. 95-91. This 
specifically excludes the FERC.
    (e) Direct costs means those expenditures which the DOE actually 
incurs in searching for and duplicating (and in the case of commercial 
requesters, reviewing) documents to respond to a FOIA request. Direct 
costs include, for example, the salary of the employee performing the 
work (the basic rate of pay for the employee plus 16 percent of that 
rate to cover benefits) and the cost of operating duplicating machinery. 
Not included in direct costs are overhead expenses such as costs of 
space, and heating or lighting the facility in which the records are 
stored.
    (f) Duplication refers to the process of making a copy of a document 
necessary to respond to a FOIA request. Such copies can take the form 
of, but are not limited to, paper copy, microform, audiovisual 
materials, or machine readable documentation (e.g., magnetic tape or 
disk). The copy provided must be in a form that can be reasonably used 
by requesters.
    (g) Educational institution refers to a preschool, a public or 
private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program or programs of scholarly research.
    (h) Freedom of Information Officer means the person designated to 
administer the Freedom of Information Act at the following DOE offices:
    (1) Alaska Power Administration, P.O. Box 020050, Juneau, AK 99802-
0050.
    (2) Albuquerque Operations Office, P.O. Box 5400, Albuquerque, NM 
87115.
    (3) Bartlesville Project Office, P.O. Box 1398, Bartlesville, OK 
74005.
    (4) Bonneville Power Administration, P.O. Box 3621-AL, Portland, OR 
97208-3621.
    (5) Chicago Operations Office, 9800 South Cass Avenue, Argonne, IL 
60439.
    (6) Headquarters, Department of Energy, Washington, DC 20585.
    (7) Idaho Operations Office, 785 DOE Place, Idaho Falls, ID 83402.
    (8) Morgantown Energy Technology Center, P.O. Box 880, Morgantown, 
WV 26507.
    (9) Nevada Operations Office, P.O. Box 98518, Las Vegas, NV 89193-
8518.
    (10) Oak Ridge Operations Office, P.O. Box E, Oak Ridge, TN 37831.
    (11) Pittsburgh Energy Technology Center, P.O. Box 10940, 
Pittsburgh, PA 15236-0940.
    (12) Richland Operations Office, P.O. Box 550, Richland, WA 99352.
    (13) San Francisco Operations Office, 1333 Broadway, Oakland, CA 
94612.
    (14) Savannah River Operations Office, P.O. Box A, Aiken, SC 29802.
    (15) Southeastern Power Administration, Samuel Elbert Building, 
Elberton, GA 30635.
    (16) Southwestern Power Administration, ATTN: SWPA-120, P.O. Box 
1619, Tulsa, OK 74101.
    (17) Strategic Petroleum Reserve Project Management Office, 900 
Commerce Road East, New Orleans, LA 70123.
    (18) Western Area Power Administration, P.O. Box 3402, Golden, CO 
80401.
    (i) General Counsel means the General Counsel provided for in 
section 202(b) of the DOE Organization Act, or any DOE attorney 
designated by the General Counsel as having responsibility for 
counseling the Department on Freedom of Information Act matters.
    (j) Headquarters means all DOE facilities functioning within the 
Washington metropolitan area.
    (k) Non-commercial scientific institution refers to an institution 
that is not operated on a ``commercial'' basis as that term is 
referenced in Sec. 1004.2(c), and which is operated solely for the 
purpose of conducting scientific research, the results of which are not 
intended to promote any particular product or industry.
    (l) Office means any administrative or operating unit of the DOE, 
including those in field offices.

[[Page 562]]

    (m) Representative of the news media refers to any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term news means information that is 
about current events or that would be of current interest to the public. 
Examples of news media entities include television or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only in those instances when they can qualify as disseminators of 
``news'') who make their products available for purchase or subscription 
by the general public. These examples are not intended to be all-
inclusive.
    Moreover, as traditional methods of news delivery evolve (e.g., 
electronic dissemination of newspapers through telecommunications 
services), such alternative media would be included in this category. In 
the case of ``freelance'' journalists, they may be regarded as working 
for a news organization if they can demonstrate a solid basis for 
expecting publication through that organization, even though not 
actually employed by it. A publication contract would be the clearest 
proof, but agencies may also look to the past publication record of a 
requester in making this determination.
    (n) Review refers to the process of examining documents located in 
response to a commercial use request (see Sec. 1004.2(c)) to determine 
whether any portion of any document located is permitted to be withheld. 
It also includes processing any documents for disclosure, e.g., doing 
all that is necessary to excise them and otherwise pepare them for 
release. Review does not include time spent resolving general legal or 
policy issues regarding the application of exemptions.
    (o) Search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within documents. The DOE will search for 
material in the most efficient and least expensive manner in order to 
minimize cost for both DOE and the requester. For example, DOE will not 
engage in line-by-line search when merely duplicating an entire document 
would prove the less expensive and quicker method of complying with a 
request. ``Search'' will be distinguished, moreover, from ``review'' of 
material in order to determine whether the material is exempt from 
disclosure. Searches may be done manually or by computer using existing 
programming.
    (p) Secretarial Officer means the General Counsel; Assistant 
Secretary, Management and Administration; Assistant Secretary for 
Congressional, Intergovernmental, and Public Affairs; Assistant 
Secretary for International Affairs and Energy Emergencies; Assistant 
Secretary for Nuclear Energy; Assistant Secretary for Fossil Energy; 
Assistant Secretary, Conservation and Renewable Energy; Assistant 
Secretary for Defense Programs; Assistant Secretary for Environment, 
Safety, and Health; Administrator, Economic Regulatory Administration; 
Administrator, Energy Information Administration; Director of Energy 
Research; Director of Civilian Radioactive Waste Management; Director of 
Minority Economic Impact, and the Inspector General.
    (q) Statute specifically providing for setting the level of fees for 
particular types of records, at 5 U.S.C. 552(a)(4)(A)(vi), means any 
statute that specifically requires a government agency, such as the 
Government Printing Office (GPO) or the National Technical Information 
Service (NTIS), to set the level of fees for particular types of 
records, in order to:
    (1) Serve both the general public and private sector organizations 
by conveniently making available government information;
    (2) Ensure that groups and individuals pay the cost of publications 
and other services which are for their special use so that these costs 
are not borne by the general taxpaying public;
    (3) Operate an information dissemination activity on a self-
sustaining basis to the maximum extent possible; or
    (4) Return revenue to the Treasury for defraying, wholly or in part, 
appropriated funds used to pay the cost of disseminating government 
information.

[[Page 563]]



Sec. 1004.3  Public reading facilities and policy on contractor records.

    (a) The DOE Headquarters will maintain, in the public reading 
facilities, the materials which are required by 5 U.S.C. 552(a)(2) to be 
made available for public inspection and copying. The principal public 
reading facility will be located at the Freedom of Information Office, 
1000 Independence Avenue, SW, Washington, DC. A complete listing of 
other facilities is available from the Freedom of Information Officer at 
DOE Headquarters.
    (b) Each of the designated field offices will maintain in public 
reading facilities certain materials maintained in the Headquarters 
facility and other materials associated with the particular field 
offices.
    (c) Each of these public reading facilities will maintain and make 
available for public inspection and copying current indices of the 
materials at that facility which are required to be indexed by 5 U.S.C. 
552(a)(2) or other applicable statutes.
    (d) [Reserved]
    (e) Contractor Records. (1) When a contract with DOE provides that 
any records acquired or generated by the contractor in its performance 
of the contract shall be the property of the Government, DOE will make 
available to the public such records that are in the possession of the 
Government or the contractor, unless the records are exempt from public 
disclosure under 5 U.S.C. 552(b)(2).
    (2) Notwithstanding paragraph (e)(1) of this section, records owned 
by the Government under contract that contain information or technical 
data having commercial value as defined in Sec. 1004.3(e)(4) or 
information for which the contractor claims a privilege recognized under 
Federal or State law shall be made available only when they are in the 
possession of the Government and not otherwise exempt under 5 U.S.C. 
552(b).
    (3) The policies stated in this paragraph:
    (i) Do not affect or alter contractors' obligations to provide to 
DOE upon request any records that DOE owns under contract, or DOE's 
rights under contract to obtain any contractor records and to determine 
their disposition, including public dissemination; and
    (ii) Will be applied by DOE to maximize public disclosure of records 
that pertain to concerns about the environment, public health or safety, 
or employee grievances.
    (4) For purposes of Sec. 1004.3(e)(2), ``technical data and 
information having commercial value'' means technical data and related 
commercial or financial information which is generated or acquired by a 
contractor and possessed by that contractor, and whose disclosure the 
contractor certifies to DOE would cause competitive harm to the 
commercial value or use of the information or data.
[53 FR 15661, May 3, 1988, as amended at 59 FR 63884, Dec. 12, 1994]



Sec. 1004.4  Elements of a request.

    (a) Addressed to the Freedom of Information Officer. A request for a 
record of the DOE which is not available in a public reading facility, 
as described in Sec. 1004.3, shall be addressed to the appropriate 
Headquarters or field Freedom of Information Officer, Department of 
Energy, at a location listed in Sec. 1004.2(h) of this part, and both 
the envelope and the letter shall be clearly marked ``Freedom of 
Information Request.'' Except as provided in Sec. 1004.4(e), a request 
will be considered to be received by the DOE for purposes of 5 U.S.C. 
552(a)(6) upon actual receipt by the Freedom of Information Officer. 
Requests delivered after regular business hours of the Freedom of 
Information Office are considered received on the next regular business 
day.
    (b) Request must be in writing and for reasonably described records. 
A request for access to records must be submitted in writing and must 
reasonably describe the records requested to enable DOE personnel to 
locate them with a reasonable amount of effort. Where possible, specific 
information regarding dates, titles, file designations, and other 
information which may help identify the records should be supplied by 
the requester, including the names and titles of any DOE officers or 
employees who have been contacted regarding the request prior to the 
submission of a written request. If the request relates to a matter in 
pending

[[Page 564]]

litigation, the court and its location should be identified to aid in 
locating the documents. If the records are known to be in a particular 
office of the DOE, the request should identify that office.
    (c) Categorical requests. (1) Must meet reasonably described records 
requirement. A request for all records falling within a reasonably 
specific and well-defined category shall be regarded as conforming to 
the statutory requirement that records be reasonably described if DOE 
personnel can reasonably determine which particular records are sought 
in the request. The request must enable the DOE to identify an locate 
the records sought by a process that is not unreasonably burdensome or 
disruptive of DOE operations. The Freedom of Information Officer may 
take into consideration problems of search which are associated with the 
files of an individual office within the Department and determine that a 
request is not one for reasonably described documents as it pertains to 
that office.
    (2) Assistance in reformulating a non-conforming request. If a 
request does not reasonably describe the records sought, as specified in 
paragraph (c)(1) of this section, the DOE response will specify the 
reasons why the request failed to meet the requiremnts of paragraph 
(c)(1) of this section and will invite the requester to confer with 
knowledgeable DOE personnel in an attempt to restate the request or 
reduce the request to managable proportions by reformulation or by 
agreeing on an orderly procedure for the production of the records. If 
DOE responds that additional information is needed from the requester to 
render records reasonably described, any reformulated request submitted 
by the requester will be treated as an initial request for purposes of 
calculating the time for DOE response.
    (d) Nonexistent records. (1) 5 U.S.C. 552 does not require the 
compilation or creation of a record for the purpose of satisfying a 
request for records.
    (2) 5 U.S.C. 552 does not require the DOE to honor a request for a 
record not yet in existence, even where such a document may be expected 
to come into existence at a later time.
    (3) If a requested record is known to have been destroyed or 
otherwise disposed of, or if no such record is known to exist, the 
requester will be so notified.
    (e) Assurance of willingness to pay fees. A request shall include 
(1) an assurance to pay whatever fees will be assessed in accordance 
with Sec. 1004.9, (2) an assurance to pay those fees not exceeding some 
specified dollar amount, or (3) a request for a waiver or reduction of 
fees. No request will be deemed to have been received until the DOE has 
received some valid assurance of willingness to bear fees anticipated to 
be associated with the processing of the request or a specific request 
of a waiver or reduction of fees.
    (f) Requests for records or information of other agencies. Some of 
the records in the files of the DOE have been obtained from other 
Federal agencies or contain information obtained from other Federal 
agencies.
    (1) Where a document originated in another Federal agency, the 
Authorizing Official will refer the request to the originating agency 
and so inform the requester, unless the originator agrees to direct 
release by DOE.
    (2) Requests for DOE records containing information received from 
another agency, or records prepared jointly by DOE and other agencies, 
will be treated as requests for DOE records except that the Authorizing 
Official will coordinate with the appropriate official of the other 
agency. The notice of determinaton to the requester, in the event part 
or all of the record is recommended for denial by the other agency, will 
cite the other agency Denying Official as well as the appropriate DOE 
Denying Official if a denial by DOE is also involved.



Sec. 1004.5  Processing requests for records.

    (a) Freedom of Information Officers will be responsible for 
processing requests for records submitted pursuant to this part. Upon 
receiving such a request, the Freedom of Information Officer will, 
except as provided in paragraph (c) of this section, ascertain which 
Authorizing Official has responsibility for, custody of, or concern with 
the records requested. The Freedom of

[[Page 565]]

Information Officer will review the request, consulting with the 
Authorizing Official where appropriate, to determine its compliance with 
Sec. 1004.4. Where a request complies with Sec. 1004.4, the Freedom of 
Information Officer will acknowledge receipt of the request to the 
requester and forward the request to the Authorizing Official for 
action.
    (b) The Authorizing Official will promptly identify and review the 
records encompassed by the request. The Authorizing Official will 
prepare a written response (1) granting the request, (2) denying the 
request, (3) granting/denying it in part, (4) replying with a response 
stating that the request has been referred to another agency under 
Sec. 1004.4(f) or Sec. 1004.6(e), (5) informing the requester that 
responsive records cannot be located or do not exist.
    (c) Where a request involves records which are in the custody of or 
are the concern of more than one Authorizing Official, the Freedom of 
Information Officer will identify all concerned Authorizing Officials, 
send copies of the request to them and forward the request for action to 
the Authorizing Official that can reasonably be expected to have custody 
of most of the requested records. This Authorizing Official will prepare 
a DOE response to the requester consistent with paragraph (b) of this 
section, which will identify any other Authorizing Official, having 
responsibility for the denial of records.
    (d) Time for processing requests. (1) Action pursuant to paragraph 
(b) of this section will be taken within 10 working days of receipt of a 
request for DOE records (``receipt'' is defined in Sec. 1004.4(a)), 
except that, if unusual circumstances require an extension of time 
before a decision on a request can be reached and the person requesting 
records is promptly informed in writing by the Authorizing Official of 
the reasons for such extension and the date on which a determination is 
expected to be dispatched, then the Authorizing Official may take an 
extension not to exceed 10 working days.
    (2) For purposes of this section and Sec. 1004.8(d), the term 
``unusual circumstances'' may include but is not limited to the 
following:
    (i) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
offices processing the request;
    (ii) The need to search for, collect and appropriately examine a 
voluminous amount of separate and distinct records which are responsive 
to a single request; or
    (iii) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request, or among two or more components of the 
Department having substantial subject matter interest therein.
    (3) The requester must be promptly notified in writing of the 
extension, the reasons for the extension, and the date on which a 
determination is expected to be made.
    (4) If no determination has been made at the end of the 10-day 
period, or the last extension thereof, the requester may deem his 
adminstrative remedies to have been exhausted, giving rise to a right of 
review in a district court of the United States as specified in 5 U.S.C. 
552(a)(4). When no determination can be made within the applicable time 
limit, the responsible Authorizing Official will nevertheless continue 
to process the request. If the DOE is unable to provide a response 
within the statutory period, the Authorizing Official will inform the 
requester of the reason for the delay; the date on which a determination 
may be expected to be made; that the requester can seek remedy through 
the courts, but ask the requester to forego such action until a 
determination is made.
    (5) Nothing in this part shall preclude the Authorizing Official and 
a requester from agreeing to an extension of time for the initial 
determination on a request. Any such agreement will be confirmed in 
writing and will clearly specify the total time agreed upon.



Sec. 1004.6  Requests for classified records.

    (a) All requests for classified records and Unclassified Controlled 
Nuclear Information will be subject to the provisions of this part with 
the special qualifications noted below.

[[Page 566]]

    (b) All requests for records made in accordance with this part, 
except those requests for access to classified records which are made 
specifically pursuant to the mandatory review provisions of Executive 
Order 12356 or any successor thereto, may be automatically considered a 
Freedom of Information Act request.
    (c) Concurrence of the Director of Classification is required on all 
responses involving requests for classified records. The Director of 
Classification will be informed of the request by either the Freedom of 
Information Officer or the Authorizing Official to whom the action is 
assigned, and will advise the office originating the records, or having 
responsibility for the records, and consult with such office or offices 
prior to making a determination under this section.
    (d) The written notice of a determination to deny records, or 
portions of records, which contain both classified material and other 
exempt material, will be concurred in by the Director of Classification 
who will be the Denying Official for the classified portion of such 
records in accordance with Secs. 1004.5(c) and 1004.7(b)(2). If other 
DOE officials or appropriate officials of other agencies are responsible 
for denying any portion of the record, their names and titles or 
positions will be listed in the notice of denial in accordance with 
Secs. 1004.5(c) and 1004.7(b)(2) and it will be clearly indicated what 
portion or portions they were responsible for denying.
    (e) Requests for DOE records containing classified information 
received from another agency, and requests for classified documents 
originating in another agency, will be coordinated with or referred to 
the other agency consistent with the provisions of Sec. 1004.4(f). 
Coordination or referral of information or documents subject to this 
section will be effected by the Director of Classification (in 
consultation with the Authorizing Official) with the appropriate 
official of the other agency.



Sec. 1004.7  Responses by authorizing officials: Form and content.

    (a) Form of grant. Records requested pursuant to Sec. 1004.4 will be 
made available promptly, when they are identified and determined to be 
nonexempt under this Regulation, the Freedom of Information Act, and 
where the applicable fees are $15 or less or where it has been 
determined that the payment of applicable fees should be waived. Where 
the applicable fees exceed $15, the records may be made available before 
all charges are paid.
    (b) Form of denial. A reply denying a request for a record will be 
in writing. It will be signed by the Denying Official pursuant to 
Sec. 1004.5 (b) or (c) and will include:
    (1) Reason for denial. A statement of the reason for denial, 
containing a reference to the specific exemption under the Freedom of 
Information Act authorizing the withholding of the record and a brief 
explanation of how the exemption applies to the record withheld, and a 
statement of why a discretionary release is not appropriate.
    (2) Persons responsible for denial. A statement setting forth the 
name and the title or position of each Denying Official and identifying 
the portion of the denial for which each Denying Official is 
responsible.
    (3) Segregation of nonexempt material. A statement or notation 
addressing the issue of whether there is any segregable nonexempt 
material in the documents or portions thereof identified as being 
denied.
    (4) Adequacy of search. Although a determination that no such record 
is known to exist is not a denial, the requester will be informed that a 
challenge may be made to the adequacy of the search by appealing within 
30 calendar days to the Office of Hearings and Appeals.
    (5) Administrative appeal. A statement that the determination to 
deny documents made within the statutory time period, may be appealed 
within 30 calendar days to the Office of Hearings and Appeals.



Sec. 1004.8  Appeal of initial denials.

    (a) Appeal to Office of Hearings and Appeals. When the Authorizing 
Official has denied a request for records in whole or in part or has 
responded that there are no documents responsive to the request 
consistent with Sec. 1004.4(d), or when the Freedom of Information 
Officer has denied a request for waiver

[[Page 567]]

of fees consistent with Sec. 1004.9, the requester may, within 30 
calendar days of its receipt, appeal the determination to the Office of 
Hearings and Appeals.
    (b) Elements of appeal. The appeal must be in writing, addressed to 
the Director, Office of Hearings and Appeals, Department of Energy, 1000 
Independence Avenue SW., Washington, DC 20585 and both the envelope and 
letter must be clearly marked ``Freedom of Information Appeal.'' The 
appeal must contain a concise statement of grounds upon which it is 
brought and a description of the relief sought. It should also include a 
discussion of all relevant authorities, including, but not limited to, 
DOE (and predecessor agencies) rulings, regulations, interpretations and 
decisions on appeals and any judicial determinations being relied upon 
to support the appeal. A copy of the letter containing the determination 
which is being appealed, must be submitted with the appeal.
    (c) Receipt of appeal. An appeal will be considered to be received 
for purposes of 5 U.S.C. 552(a)(6) upon receipt by the appeal authority. 
Documents delivered after regular business hours of the Office of 
Hearings and Appeals are considerd received on the next regular business 
day.
    (d) Action within 20 working days. (1) The appeal authority will act 
upon the appeal within 20 working days of its receipt, except that if 
unusual circumstances (as defined in Sec. 1004.5(d)(2)) require an 
extension of time before a decision on a request can be reached, the 
appeal authority may extend the time for final action for an additional 
10 working days less the number of days of any statutory extension which 
may have been taken by the Authorizing Official during the period of 
initial determination.
    (2) The requester must be promptly notified in writing of the 
extension, setting forth the reasons for the extension, and the date on 
which a determination is expected to be issued.
    (3) If no determination on the appeal has been issued at the end of 
the 20-day period or the last extension thereof, the requester may 
consider his administrative remedies to be exhausted and seek a review 
in a district court of the United States as specified in 5 U.S.C. 
552(a)(4). When no determination can be issued within the applicable 
time limit, the appeal will nevertheless continue to be processed; on 
expiration of the time limit the requester will be informed of the 
reason for the delay, of the date on which a determination may be 
expected to be issued, and of his right to seek judicial review in the 
United States district court in the district in which he resides or has 
his principal place of business, the district in which the records are 
situated, or the District of Columbia. The requester may be asked to 
forego judicial review until determination of the appeal.
    (4) Nothing in this part will preclude the appeal authority and a 
requester from agreeing to an extension of time for the decision on an 
appeal. Any such agreement will be confirmed in writing by the appeal 
authority and will clearly specify the total time agreed upon for the 
appeal decision.
    (e) Form of action on appeal. The appeal authority's action on an 
appeal will be in writing and will set forth the reason for the 
decision. It will also contain a statement that it constitutes final 
agency action on the request and that judicial review will be available 
either in the district in which the requester resides or has a principal 
place of business, the district in which the records are situated, or in 
the District of Columbia. Documents determined by the appeal authority 
to be documents subject to release will be made promptly available to 
the requester upon payment of any applicable fees.
    (f) Classified records and records covered by section 148 of the 
Atomic Energy Act. The Secretary of Energy or his designee will make the 
final determination concerning appeals involving the denial of requests 
for classified information or the denial of requests for information 
falling within the scope of section 148 of the Atomic Energy Act of 
1954, as amended (42 U.S.C. 2168).



Sec. 1004.9  Fees for providing records.

    (a) Fees to be charged. The DOE will charge fees that recoup the 
full allowable direct costs incurred. The DOE will use the most 
efficient and least costly methods to comply with requests for documents 
made under the

[[Page 568]]

FOIA. The DOE may contract with private sector services to locate, 
reproduce and disseminate records in response to FOIA requests when that 
is the most efficient and least costly method. When doing so, however, 
the DOE will ensure that the ultimate cost to the requester is no 
greater than it would be if the DOE itself had performed these tasks. In 
no case will the DOE contract out responsibilities which the FOIA 
provides that only the agency may discharge, such as determining the 
applicability of an exemption, or determining whether to waive or reduce 
fees. Where the DOE can identify documents that are responsive to a 
request and are maintained for public distribution by other agencies 
such as the National Technical Information Service and the Government 
Printing Office, the Freedom of Information Officer will inform 
requesters of the procedures to obtain records from those sources.
    (1) Manual searches for records. Whenever feasible, the DOE will 
charge for manual searches for records at the salary rate(s) (i.e. basic 
pay plus 16 percent) of the employee(s) making the search.
    (2) Computer searches for records. The DOE will charge at the actual 
direct cost of providing the service. This will include the cost of 
operating the central processing unit (CPU) for that portion of 
operating time that is directly attributable to searching for records 
responsive to a FOIA request and operator/programmer salary.
    (3) Review of records. The DOE will charge requesters who are 
seeking documents for commercial use for time spent reviewing records to 
determine whether they are exempt from mandatory disclosure. Charges 
will be assessed only for the initial review (i.e., the review 
undertaken the first time the DOE analyzes the applicability of a 
specific exemption to a particular record or portion of a record. The 
DOE will not charge for review at the administrative appeal level of an 
exemption already applied. However, records or portions of records 
withheld in full under an exemption which is subsequently determined not 
to apply may be reviewed again to determine the applicability of other 
exemptions not previously considered. The costs for such a subsequent 
review would be properly assessable.
    (4) Duplication of records. The DOE will make a per-page charge for 
paper copy reproduction of documents. At present, the charge for paper 
to paper copies will be five cents per page and the charge for microform 
to paper copies will be ten cents per page. For computer generated 
copies, such as tapes or printouts, the DOE will charge the actual cost, 
including operator time, for production of the tape or printout. For 
other methods of reproduction or duplication, we will charge the actual 
direct costs of producing the document(s).
    (5) Other charges. It shall be noted that complying with requests 
for special services such as those listed below is entirely at the 
discretion of this agency. Neither the FOIA nor its fee structure cover 
these kinds of services. The DOE will recover the full direct costs of 
providing services such as those enumerated below to the extent that we 
elect to provide them:
    (i) Certifying that records are true copies;
    (ii) Sending records by special methods such as express mail, etc.
    (6) Restrictions on assessing fees. With the exception of requesters 
seeking documents for a commercial use, section (a)(4)(A)(iv) of the 
Freedom of Information Act, as amended, DOE will provide the first 100 
pages of duplication and the first two hours of search time without 
charge. Moreover, DOE will not charge fees to any requester, including 
commercial use requesters, if the cost of collecting the fee would be 
equal to or greater than the fee itself. These provisions work together, 
so that except for commercial use requesters, DOE will not begin to 
assess fees until after the Department has provided the free search and 
reproduction. For example, if a request involves two hours and ten 
minutes of search time and results in 105 pages of documents, DOE will 
charge for only 10 minutes of search time and only five pages of 
reproduction. If this cost is equal to or less than $15.00, the amount 
DOE incurs to process a fee collection,

[[Page 569]]

no charges would be assessed. For purposes of these restrictions on 
assessment of fees, the word ``pages'' refers to paper copies of a 
standard agency size which will be normally be ``8\1/2\ x 11'' or 
``11 x 14.'' Thus, requesters would not be entitled to 100 microfiche or 
100 computer disks, for example. A microfiche containing the equivalent 
of 100 pages or 100 pages of computer printout, however, might meet the 
terms of the restriction. Similarly, the term ``search time'' is based 
on a manual search. To apply this term to searches made by computer, the 
DOE will determine the hourly cost of operating the central processing 
unit and the operator's hourly salary plus 16 percent. When the cost of 
the search (including the operator time and the cost of operating the 
computer to process a request) equals the equivalent dollar amount of 
two hours of the salary of the computer operator conducting the search, 
DOE will begin assessing charges for computer search.
    (7) Notification of charges. If the DOE determines or estimates that 
the fees to be assessed under this section may amount to more than 
$25.00, the requester will be informed of the estimated amount of fees, 
unless the requester has previously indicated a willingness to pay the 
amount estimated by the agency. In cases where a requester has been 
notified that actual or estimated fees may amount to more than $25.00, 
the request will be deemed not to have been received until the requester 
has agreed to pay the anticipated total fee. A notice to a requester 
pursuant to this paragraph will offer him the opportunity to confer with 
DOE personnel in order to reformulate his request to meet his needs at a 
lower cost.
    (8) Waiving or reducing fees. The DOE will furnish documents without 
charge or at reduced charges if disclosure of the information is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the government 
and disclosure is not primarily in the commercial interest of the 
requester. This fee waiver standard thus sets forth two basic 
requirements, both of which must be satisfied before fees will be waived 
or reduced. First it must be established that disclosure of the 
requested information is in the public interest because it is likely to 
contribute significantly to public understanding of the operations or 
activities of the government. Second, it must be established that 
disclosure of the information is not primarily in the commercial 
interest of the requester. When these requirements are satisfied, based 
upon information supplied by a requester or otherwise made known to the 
DOE, the waiver or reduction of a FOIA fee will be granted. In 
determining when fees should be waived or reduced the Freedom of 
Information Officer should address the following two criteria:
    (i) That disclosure of the Information ``is in the Public Interest 
Because it is Likely to Contribute Significantly to Public Understanding 
of the Operations or Activities of the Government.'' Factors to be 
considered in applying this criteria include but are not limited to:
    (A) The subject of the request: Whether the subject of the requested 
records concerns ``the operations or activities of the government'';
    (B) The informative value of the information to be disclosed: 
Whether the disclosure is ``likely to contribute'' to an understanding 
of government operations or activities;
    (C) The contribution to an understanding by the general public of 
the subject likely to result from disclosure; and
    (D) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of government operations or activities.
    (ii) If Disclosure of the Information ``is Not Primarily in the 
Commercial Interest of the Requester.'' Factors to be considered in 
applying this criteria include but are not limited to:
    (A) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure; and, if so
    (B) The primary interest in disclosure: Whether the magnitude of the 
identified commercial interest of the

[[Page 570]]

requester is sufficiently large, in comparison with the public interest 
in disclosure, that disclosure is ``primarily in the commercial interest 
of the requester.''
    (b) Fees to be charged--categories of requesters. There are four 
categories of FOIA requesters: Commercial use requesters; educational 
and non-commercial scientific institutions; representatives of the news 
media; and all other requesters. The Freedom of Information Officer will 
make determinations regarding categories of requesters as defined at 
Sec. 1004.2. The Headquarters Freedom of Information Officer will assist 
field Freedom of Information Officers in categorizing requesters, and 
will resolve conflicting categorizations. The FOIA prescribes specific 
levels of fees for each of these categories:
    (1) Commercial use requesters. When the DOE receives a request for 
documents which appears to be for commercial use, charges will be 
assessed to recover the full direct costs of searching for, reviewing 
for release, and duplicating the records sought. Commerical use 
requesters are not entitled to two hours of free search time nor 100 
free pages of reproduction of documents. The DOE will recover the cost 
of searching for and reviewing records even if there is ultimately no 
disclosure of records.
    (2) Educational and non-commercial scientific institution 
requesters. The DOE will provide documents to requesters in this 
category for the cost of reproduction only, excluding charges for the 
first 100 pages. To be eligible for inclusion in this category, 
requesters must show that the request is being made as authorized by and 
under the auspices of a qualifying institution and that the records are 
not sought for a commercial use, but are sought in furtherance of 
scholarly (if the request is from an educational institution) or 
scientific (if the request is from a non-commercial scientific 
institution) research.
    (3) Requesters who are representatives of the news media. The DOE 
will provide documents to requesters in this category for the cost of 
reproduction only, excluding charges for the first 100 pages. To be 
eligible for inclusion in this category, a requester must meet the 
criteria in Sec. 1004.2(m), and his or her request must not be made for 
a commercial use. With respect to this class of requesters, a request 
for records supporting the news dissemination function of the requester 
will not be considered to be a request for a commercial use.
    (4) All other requesters. The DOE will charge requesters who do not 
fall into any of the above categories fees which recover the full 
reasonable direct cost of searching for and reproducing records that are 
responsive to the request, except that the first 100 pages of 
reproduction and the first two hours of search time will be furnished 
without charge. Moreover, requests from individuals for records about 
themselves filed in DOE systems of records will continue to be processed 
under the fee provisions of the Privacy Act of 1974.
    (5) Charging interest--notice and rate. Interest will be charged 
those requesters who fail to pay fees. The DOE will begin to assess 
interest charges on the amount billed on the 31st day following the day 
on which the billing was sent to the requester. Interest will be at the 
rate prescribed in section 3717 of Title 31 U.S.C. and will accrue from 
the date of the billing.
    (6) Charges for unsuccessful search. The DOE will assess charges for 
time spent searching even if the search fails to identify responsive 
records or if records located are determined to be exempt from 
disclosure. If the DOE estimates that search charges are likely to 
exceed $25, it will notify the requester of the estimated amount of 
fees, unless the requester has indicated in advance his willingness to 
pay fees as high as those anticipated. Such a notice will offer the 
requester the opportunity to confer with agency personnel in order to 
reformulate the request to reduce the cost of the request.
    (7) Aggregating requests. A requester may not file multiple requests 
each seeking portions of a document or documents, solely to avoid 
payment of fees. When the DOE reasonably believes that a requester or, a 
group of requesters acting in concert, is attempting to break a request 
down into a series of requests for the purpose of evading the assessment 
of fees, the DOE will aggregate any such requests and charge the

[[Page 571]]

appropriate fees. The DOE may consider the time period in which the 
requests have been made in its determination to aggregate the related 
requests. In no case will DOE aggregate multiple requests on unrelated 
subjects from one requester.
    (8) Advance payments. Requesters are not required to make an advance 
payment (i.e., payment before action is commenced or continued on a 
request) unless:
    (i) The DOE estimates or determines that allowable charges that a 
requester may be required to pay are likely to exceed $250.00. In such 
cases, the DOE will notify the requester of the likely cost and obtain a 
satisfactory assurance of full payment where the requester has a history 
of prompt payment of FOIA fees, or require an advance payment of an 
amount up to the full estimated charges in the case of requesters with 
no history of payment.
    (ii) A requester has previously failed to pay a fee in a timely 
fashion (i.e., within 30 days of the date of the billing). The DOE will 
require the requester to pay the full amount delinquent plus any 
applicable interest as provided in paragraph (b)(5) of this section, or 
demonstrate that he has, in fact, paid the delinquent fee; and to make 
an advance payment of the full amount of the estimated current fee 
before we begin to process a new request or a pending request from that 
requester.
    When the DOE acts under paragraphs (b)(8) (i) or (ii) of this 
section, the administrative time limits prescribed in subsection (a)(6) 
of the FOIA (i.e., 10 working days from receipt of initial requests and 
20 working days from receipt of appeals from initial denials, plus 
permissible extensions of these time limits) will begin only after the 
DOE has received fee payments described above.
    (c) Effect of the Debt Collection Act of 1982 (Pub. L. 97-365). The 
DOE will use the authorities of the Debt Collection Act, including 
disclosure to consumer reporting agencies and the use of collection 
agencies, where appropriate, to encourage payment of fees.



Sec. 1004.10  Exemptions.

    (a) 5 U.S.C. 552 exempts from all of its publication and disclosure 
requirements nine categories of records which are described in paragraph 
(b) of that section. These categories include such matters as national 
defense and foreign policy information; investigatory records; internal 
procedures and communications; materials exempted from disclosure by 
other statutes; confidential, commercial, and financial information; and 
matters involving personal privacy.
    (b) Specifically, the exemptions in 5 U.S.C. 552(b) will be applied 
consistent with Sec. 1004.1 of these regulations to matters that are:
    (1) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interest of the national 
defense or foreign policy and are in fact properly classified pursuant 
to such Executive Order;
    (2) Related solely to the internal personnel rules and practices of 
an agency;
    (3) Specifically exempted from disclosure by statute (other than 5 
U.S.C. 552(b)), provided that such statute (i) requires that the matters 
be withheld from the public in such a manner as to leave no discretion 
on the issue, or (ii) establishes particular criteria for withholding or 
refers to particular types of matters to be withheld; for example 
Restricted Data and Formerly Restricted Data under the Atomic Energy Act 
of 1954, as amended (42 U.S.C. 2011 et seq.) are covered by this 
exemption;
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (5) Inter-agency or intra-agency memoranda or letters which would 
not be available by law to a party other than an agency in litigation 
with the agency;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information (i) could reasonably be expected to interfere 
with enforcement proceedings, (ii) would deprive a person

[[Page 572]]

of a right to a fair trial or an impartial adjudication, (iii) could 
reasonably be expected to constitute an unwarranted invasion of personal 
privacy, (iv) could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source, (v) would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law, or (vi) could 
reasonably be expected to endanger the life or physical safety of any 
individual;
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (c) Any reasonably segregated non-exempt portion of a record will be 
provided to a requester. The DOE will delete portions which are 
withholdable under the exemptions listed above.



Sec. 1004.11  Handling information of a private business, foreign government, or an international organization.

    (a) Whenever a document submitted to the DOE contains information 
which may be exempt from public disclosure, it will be handled in 
accordance with the procedures in this section. While the DOE is 
responsible for making the final determination with regard to the 
disclosure or nondisclosure of information contained in requested 
documents, the DOE will consider the submitter's views (as that term is 
defined in this section) in making its determination. Nothing in this 
section will preclude the submission of a submitter's views at the time 
of the submission of the document to which the views relate, or at any 
other time.
    (b) When the DOE may determine, in the course of responding to a 
Freedom of Information request, not to release information submitted to 
the DOE (as described in paragraph (a) of this section, and contained in 
a requested document) without seeking any or further submitter's views, 
no notice will be given the submitter.
    (c) When the DOE, in the course of responding to a Freedom of 
Information request, cannot make the determination described in 
paragraph (b) of this section without having for consideration the 
submitter's views, the submitter shall be promptly notified and provided 
an opportunity to submit his views on whether information contained in 
the requested document (1) is exempt from the mandatory public 
disclosure requirements of the Freedom of Information Act, (2) contains 
information referred to in 18 U.S.C. 1905, or (3) is otherwise exempt by 
law from public disclosure. The DOE will make its own determinations as 
to whether any information is exempt from disclosure. Notice of a 
determination by the DOE that a claim of exemption made pursuant to this 
paragraph is being denied will be given to a person making such a claim 
no less than seven (7) calendar days prior to intended public disclosure 
of the information in question. For purposes of this section, notice is 
deemed to be given when mailed to the submitter at the submitter's last 
known address.
    (d) When the DOE, in the course of responding to a Freedom of 
Information request, cannot make the determination described in 
paragraph (b) of this section and, without recourse to paragraph (c) of 
this section, previously has received the submitter's views, the DOE 
will consider such submitter's views and will not be required to obtain 
additional submitter's views under the procedure described in paragraph 
(c) of this section. The DOE will make its own determination with regard 
to any claim that information be exempted from disclosure. Notice of the 
DOE's determination to deny a claim of exemption made pursuant to

[[Page 573]]

this paragraph will be given to a person making such a claim no less 
than seven (7) calendar days prior to its intended public disclosure.
    (e) Notwithstanding any other provision of this section, DOE offices 
may require a person submitting documents containing information that 
may be exempt by law from mandatory disclosure to (1) submit copies of 
each document from which information claimed to be confidential has been 
deleted or (2) require that the submitter's views be otherwise made 
known at the time of the submission. Notice of a determination by the 
DOE that a claim of exemption is being denied will be given to a person 
making such a claim no less than seven (7) calendar days prior to 
intended public disclosure of the information in question. For purposes 
of this section, notice is deemed to be given when mailed to the 
submitter at the submitter's last known address.
    (f) Criteria for determining the applicability of 5 U.S.C. 
552(b)(4). Subject to subsequent decisions of the Appeal Authority, 
criteria to be applied in determining whether information is exempt from 
mandatory disclosure pursuant to Exemption 4 of the Freedom of 
Information Act include:
    (1) Whether the information has been held in confidence by the 
person to whom it pertains;
    (2) Whether the information is of a type customarily held in 
confidence by the person to whom it pertains and whether there is a 
reasonable basis therefore;
    (3) Whether the information was transmitted to and received by the 
Department in confidence;
    (4) Whether the information is available in public sources;
    (5) Whether disclosure of the information is likely to impair the 
Government's ability to obtain similar information in the future; and
    (6) Whether disclosure of the information is likely to cause 
substantial harm to the competitive position of the person from whom the 
information was obtained.
    (g) When the DOE, in the course of responding to a Freedom of 
Information request, determines that information exempt from the 
mandatory public disclosure requirements of the Freedom of Information 
Act is to be released in accordance with Sec. 1004.1, the DOE will 
notify the submitter of the intended discretionary release no less than 
seven (7) days prior to intended public disclosure of the information in 
question.
    (h) As used in this section, the term submitter's views means, with 
regard to a document submitted to the DOE, an item-by-item indication, 
with accompanying explanation, addressing whether the submitter 
considers the information contained in the document to be exempt from 
the mandatory public disclosure requirements of the Freedom of 
Information Act, to be information referred to in 18 U.S.C. 1905, or to 
be otherwise exempt by law from mandatory public disclosure. The 
accompanying explanation shall specify the justification for 
nondisclosure of any information under consideration. If the submitter 
states that the information comes within the exemption in 5 U.S.C. 
552(b)(4) for trade secrets and commercial or financial information, the 
submitter shall include a statement specifying why such information is 
privileged or confidential and, where appropriate, shall address the 
criteria in paragraph (f) of this section. In all cases, the submitter 
shall address the question of whether or not discretionary disclosure 
would be in the public interest.



Sec. 1004.12  Computation of time.

    Except as otherwise noted, in computing any period of time 
prescribed or allowed by this part, the day of the event from which the 
designated period of time begins to run is not to be included; the last 
day of the period so computed is to be included; and Saturdays, Sundays, 
and legal holidays are excepted.



PART 1005--INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES--Table of Contents




Sec.
1005.1  What is the purpose of these regulations?
1005.2  What definitions apply to these regulations?

[[Page 574]]

1005.3  What programs and activities of the Department are subject to 
          these regulations?
1005.4  What are the Secretary's general responsibilities under the 
          Order?
1005.5  What is the Secretary's obligation with respect to Federal 
          interagency coordination?
1005.6  What procedures apply to the selection of programs and 
          activities under these regulations?
1005.7  How does the Secretary communicate with state and local 
          officials concerning the Department's programs and activities?
1005.8  How does the Secretary provide states an opportunity to comment 
          on proposed Federal financial assistance and direct Federal 
          development?
1005.9  How does the Secretary receive and respond to comments?
1005.10  How does the Secretary make efforts to accommodate 
          intergovernmental concerns?
1005.11  What are the Secretary's obligations in interstate situations?
1005.12  How may a state simplify, consolidate, or substitute federally 
          required state plans?
1005.13  May the Secretary waive any provision of these regulations?

    Authority: E. O. 12372, July 14, 1982, 47 FR 30959, as amended April 
8, 1983, 48 FR 15887; sec. 401 of the Intergovernmental Cooperation Act 
of 1968, as amended (31 U.S.C. 6506).

    Source: 48 FR 29182, June 24, 1983, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 47 FR 57369, December 23, 1982, 48 FR 17101, April 21, 
1983, and 48 FR 29096, June 24, 1983.



Sec. 1005.1  What is the purpose of these regulations?

    (a) The regulations in this part implement Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' issued July 14, 1982 
and amended on April 8, 1983. These regulations also implement 
applicable provisions of section 401 of the Intergovernmental 
Cooperation Act of 1968.
    (b) These regulations are intended to foster an intergovernmental 
partership and a strengthened Federalism by relying on state processes 
and on state, areawide, regional and local coordination for review of 
proposed federal financial assistance and direct federal development.
    (c) These regulations are intended to aid the internal management of 
the Department, and are not intended to create any right or benefit 
enforceable at law by a party against the Department or its officers.



Sec. 1005.2  What definitions apply to these regulations?

    Department means the U.S. Department of Energy.
    Order means Executive Order 12372, issued July 14, 1982, and amended 
April 8, 1983 and titled ``Intergovernmental Review of Federal 
Programs.''
    Secretary means the Secretary of the U.S. Department of Energy or an 
official or employee of the Department acting for the Secretary under a 
delegation of authority.
    State means any of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust 
Territory of the Pacific Islands.



Sec. 1005.3  What programs and activities of the Department are subject to these regulations?

    (a) The Secretary publishes in the Federal Register a list of the 
Department's program and activities that are subject to the order and 
these regulations.
    (b) Unless otherwise stated in the Federal Register listing 
identified in paragraph (a) of this section, these regulations do not 
apply to the Department's financial assistance transactions with other 
than governmental entities.
    (c) The Bonneville Power Administration shall satisfy the 
requirements of these regulations by compliance with the consultation 
requirements of the Pacific Northwest Electric Power Planning and 
Conservation Act, Public Law 96-501.

[[Page 575]]



Sec. 1005.4  What are the Secretary's general responsibilities under the Order?

    (a) The Secretary provides opportunities for consultation by elected 
officials of those state and local governments that would provide the 
nonfederal funds, for, or that would be directly affected by, proposed 
federal financial assistance from, or direct federal development by, the 
Department.
    (b) If a state adopts a process under the Order to review and 
coordinate proposed federal financial assistance and direct federal 
development, the Secretary, to the extent permitted by law:
    (1) Uses the state process to determine official views of state and 
local elected officials;
    (2) Communicates with state and local elected officials as early in 
a program planning cycle as is reasonably feasible to explain specific 
plans and actions;
    (3) Make efforts to accommodate state and local elected official's 
concerns with proposed federal financial assistance and direct federal 
development that are communicated through the state process;
    (4) Allows the states to simplify and consolidate existing federally 
required state plan submissions;
    (5) Where state planning and budgeting systems are sufficient and 
where permitted by law, encourages the substitution of State plans for 
federally required state plans;
    (6) Seeks the coordination of views of affected state and local 
elected officials in one state with those of another state when proposed 
federal financial assistance or direct federal development has an impact 
on interstate metropolitan urban centers or other interstate areas; and
    (7) Supports state and local governments by discouraging the 
reauthorization or creation of any planning organization which is 
federally-funded, which has a limited purpose, and which is not 
adequately representative of, or accountable to, state or local elected 
officials.



Sec. 1005.5  What is the Secretary's obligation with respect to Federal interagency coordination?

    The Secretary, to the extent practicable, consults with and seeks 
advice from all other substantially affected federal departments and 
agencies in an effort to assure full coordination between such agencies 
and the Department regarding programs and activities covered under these 
regulations.



Sec. 1005.6  What procedures apply to the selection of programs and activities under these regulations?

    (a) A state may select any program or activity published in the 
Federal Register in accordance with Sec. 1005.3 of this part for 
intergovernmental review under these regulations. Each state, before 
selecting programs and activities, shall consult with local elected 
officials.
    (b) Each state that adopts a process shall notify the Secretary of 
the Department's programs and activities selected for that process.
    (c) A state may notify the Administrator of changes in its 
selections at any time. For each change, the state shall submit to the 
Secretary an assurance that the state has consulted with local elected 
officials regarding the change. The Department may establish deadlines 
by which states are required to inform the Secretary of changes in their 
program selections.
    (d) The Secretary uses a state's process as soon as feasible, 
depending on individual programs and activities, after the Secretary is 
notified of its selections.



Sec. 1005.7  How does the Secretary communicate with state and local officials concerning the Department's programs and activities?

    (a) [Reserved]
    (b) The Secretary provides notice to directly affected state, 
areawide, regional, and local entities in a state of proposed Federal 
financial assistance or direct Federal development if:
    (1) The state has not adopted a process under the Order; or

[[Page 576]]

    (2) The assistance or development involves a program or activity not 
selected for the state process. This notice may be made by publication 
in the Federal Register or other appropriate means, which the Department 
in its discretion deems appropriate.



Sec. 1005.8  How does the Secretary provide states an opportunity to comment on proposed Federal financial assistance and direct Federal development?

    (a) Except in unusual circumstances, the Secretary gives state 
processes or directly affected State, areawide, regional and local 
officials and entities--
    (1) At least 30 days from the date established by the Secretary to 
comment on proposed Federal financial assistance in the form of 
noncompeting continuation awards; and
    (2) At least 60 days from the date established by the Secretary to 
comment on proposed direct Federal development or Federal financial 
assistance other than noncompeting continuation awards.
    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with the Department have been 
delegated.



Sec. 1005.9  How does the Secretary receive and respond to comments?

    (a) The Secretary follows the procedures in Sec. 1005.10 if:
    (1) A state office or official is designated to act as a single 
point of contact between a state process and all federal agencies, and
    (2) That office or official transmits a state process recommendation 
for a program selected under Sec. 1005.6.
    (b)(1) The single point of contact is not obligated to transmit 
comments from state, areawide, regional or local officials and entities 
where there is no state process recommendation.
    (2) If a state process recommendation is transmitted by a single 
point of contact, all comments from, state, areawide, regional, and 
local officials and entities that differ from it must also be 
transmitted.
    (c) If a state has not established a process, or is unable to submit 
a state process recommendation, state, areawide, regional and local 
officials and entities may submit comments either to the applicant or to 
the Department.
    (d) If a program or activity is not selected for a state process, 
state, areawide, regional and local officials and entities may submit 
comments either to the applicant or to the Department. In addition, if a 
state process recommendation for a nonselected program or activity is 
transmitted to the Department by the single point of contact, the 
Secretary follows the procedures of Sec. 1005.10 of this part.
    (e) The Secretary considers comments which do not constitute a state 
process recommendation submitted under these regulations and for which 
the Secretary is not required to apply the procedures of Sec. 1005.10 of 
this part, when such comments are provided by a single point of contact, 
by the applicant, or directly to the Department by a commenting party.



Sec. 1005.10  How does the Secretary make efforts to accommodate intergovernmental concerns?

    (a) If a state process provides a state process recommendation to 
the Department through its single point of contact, the Secretary 
either:
    (1) Accepts the recommendation;
    (2) Reaches a mutually agreeable solution with the state process; or
    (3) Provides the single point of contact with such written 
explanation of the decision, as the Secretary in his or her discretion 
deems appropriate. The Secretary may also supplement the written 
explanation by providing the explanation to the single point of contact 
by telephone, other telecommunication, or other means.
    (b) In any explanation under paragraph (a)(3) of this section, the 
Secretary informs the single point of contact that:
    (1) The Department will not implement its decision for at least ten 
days after the single point of contact receives the explanation; or
    (2) The Secretary has reviewed the decision and determined that, 
because of unusual circumstances, the waiting period of at least ten 
days is not feasible.
    (c) For purposes of computing the waiting period under paragraph 
(b)(1)

[[Page 577]]

of this section, a single point of contact is presumed to have received 
written notification 5 days after the date of mailing of such 
notification.



Sec. 1005.11  What are the Secretary's obligations in interstate situations?

    (a) The Secretary is responsible for:
    (1) Identifying proposed federal financial assistance and direct 
federal development that have an impact on interstate areas;
    (2) Notifying appropriate officials and entities in states which 
have adopted a process and which select the Department's program or 
activity;
    (3) Making efforts to identify and notify the affected state, 
areawide, regional, and local officials and entities in those states 
that have not adopted a process under the Order or do not select the 
Department's program or activity;
    (4) Responding pursuant to Sec. 1005.10 of this part if the 
Secretary receives a recommendation from a designated areawide agency 
transmitted by a single point of contact, in cases in which the review, 
coordination, and communication with the Department have been delegated.
    (b) The Secretary uses the procedures in Sec. 1005.10 if a state 
process provides a state process recommendation to the Department 
through a single point of contact.



Sec. 1005.12  How may a state simplify, consolidate, or substitute federally required state plans?

    (a) As used in this section:
    (1) Simplify means that a state may develop its own format, choose 
its own submission date, and select the planning period for a state 
plan.
    (2) Consolidate means that a state may meet statutory and regulatory 
requirements by combining two or more plans into one document and that 
the state can select the format, submission date, and planning period 
for the consolidated plan.
    (3) Substitute means that a state may use a plan or other document 
that it has developed for its own purposes to meet Federal requirements.
    (b) If not inconsistent with law, a state may decide to try to 
simplify consolidate, or substitute federally required state plans 
without prior approval by the Secretary.
    (c) The Secretary reviews each state plan that a state has 
simplified, consolidated, or substituted and accepts the plan only if 
its contents meet federal requirements.



Sec. 1005.13  May the Secretary waive any provision of these regulations?

    In an emergency, the Secretary may waive any provision of these 
regulations.



PART 1008--RECORDS MAINTAINED ON INDIVIDUALS (PRIVACY ACT)--Table of Contents




                      Subpart A--General Provisions

Sec.
1008.1  Purpose and scope.
1008.2  Definitions.
1008.3  Employee standards of conduct with regard to privacy.
1008.4  Procedures for identifying the individual making a request for 
          access to or amendment of records.
1008.5  Effect of the Freedom of Information Act (FOIA).

               Subpart B--Requests for Access or Amendment

1008.6  Procedures for Privacy Act requests.
1008.7  Processing of requests.
1008.8  Action in response to a request for access: disclosure of 
          requested information to subject individuals.
1008.9  Action in response to a request for access: initial denial of 
          access.
1008.10  Action in response to a request for correction or amendment of 
          records.
1008.11  Appeals of denials of requests pursuant to Sec. 1008.6.
1008.12  Exemptions.
1008.13  Fees.
1008.14  Requests under false pretenses.
1008.15  Civil remedies.

                 Subpart C--Disclosure to Third Parties

1008.16  Prohibition against disclosure.
1008.17  Conditions of disclosure.
1008.18  Accounting for disclosures.
1008.19  Criminal penalties--improper disclosure.

     Subpart D--Maintenance and Establishment of Systems of Records

1008.20  Content of systems of records.
1008.21  Collection of information by DOE about an individual for a 
          system of records.

[[Page 578]]

1008.22  Use and collection of social security numbers.
1008.23  Public notice of systems of records.
1008.24  Criminal penalties--failure to publish a system notice.

    Authority: Dept. of Energy Organization Act, Pub. L. 95-91, 
Executive Order 12091, 42 FR 46267, Privacy Act of 1974, Pub. L. 93-579 
(5 U.S.C. 552a).

    Source: 45 FR 61577, Sept. 16, 1980, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1008.1  Purpose and scope.

    (a) This part establishes the procedures to implement the Privacy 
Act of 1974 (Pub. L. 93-579, 5 U.S.C. 552a) within the Department of 
Energy.
    (b) This part applies to all systems of records, as defined in 
Sec. 1008.2(m), maintained by DOE.
    (c) This part applies to all divisions within the DOE, and to the 
personnel records of the Federal Energy Regulatory Commission (FERC), 
which are maintained by DOE on behalf of FERC. These regulations do not 
apply to other systems of records maintained by FERC. These regulations 
also apply to DOE contractors and their employees to the extent required 
by 5 U.S.C. 552a(m).



Sec. 1008.2  Definitions.

    (a) Department or Department of Energy (DOE) means all 
organizational entities which are a part of the executive department 
created by title II of the Department of Energy Organization Act, Public 
Law 95-91, except the Federal Energy Regulatory Commission (FERC).
    (b) Director, Office of Hearings and Appeals means the Director or 
his delegate.
    (c) DOE locations means each of the following DOE components:

    (1) Alaska Power Administration, P.O. Box 50, Juneau, AK 88801.
    (2) Albuquerque Operations Office, P.O. Box 5400, Albuquerque, NM 
87115.

    Note: This office has cognizance over the following area offices: 
Amarillo, Dayton, Kansas City, Los Alamos, Pinellas, Rocky Flats and 
Sanria.

    (3) Bartlesville Energy Technology Center, P.O. Box 1398, 
Bartlesville, OK 74003.
    (4) Bonneville Power Administration, P.O. Box 3621, Portland, OR 
97268.
    (5) Chicago Operations Office, 9800 South Cass Avenue, Argonne, IL 
60439.

    Note: This office has cognizance over the Batvia and Brookhaven area 
offices and the New Brunswick laboratory.

    (6) Grand Forks Energy Technology Center, P.O. Box 8213, University 
Station, Grand Forks, ND 58201.
    (7) Grand Junction Office, P.O. Box 2567, Grand Junction, CO 81502.
    (8) Headquarters, Department of Energy, 1000 Independence Avenue, 
SW., Washington, DC 20585.
    (9) Idaho Operations Office, 550 Second Street, Idaho Falls, ID 
83401.
    (10) Laramie Energy Technology Center, P.O. Box 3395, University 
Station, Laramie, WY 82070.
    (11) Morgantown Energy Technology Center, P.O. Box 880, Morgantown, 
WV 26505.
    (12) Nevada Operations Office, P.O. Box 14100, Las Vegas, NV 89114.
    (13) Oak Ridge Operations Office, P.O. Box E, Oak Ridge, TN 37830.
    (14) Oak Ridge Technical Information Center, P.O. Box 62, Oak Ridge, 
TN 37830.
    (15) Pittsburgh Energy Technology Center, 4800 Forbes Avenue, 
Pittsburgh, PA 15213.
    (16) Region I, Analex Building, Room 700, 150 Causeway Street, 
Boston, MA 02114.
    (17) Region II, 26 Federal Plaza, Room 3206, New York, NY 10007.
    (18) Region III, 1421 Cherry Street, 10th Floor, Philadelphia, PA 
19102.
    (19) Region IV, 1655 Peachtree Street, NE., 8th Floor, Atlanta, GA 
30309.
    (20) Region V, 175 West Jackson Boulevard, Room A-333, Chicago, IL 
60604.
    (21) Region VI, P.O. Box 35228, 2626 West Mockingbird Lane, Dallas, 
TX 75235.
    (22) Region VII, Twelve Grand Building, 1150 Grand Avenue, Kansas 
City, MO 64106.
    (23) Region VIII, P.O. Box 26247--Belmar Branch, 1075 South Yukon 
Street, Lakewood, CO 80226.
    (24) Region IX, 111 Pine Street, Third Floor, San Francisco, CA 
94111.
    (25) Region X, 1992 Federal Building, 915 Second Avenue, Seattle, WA 
98174.
    (26) Richland Operations Office, P.O. Box 550, Richland, WA 99352.
    (27) San Francisco Operations Office, 1333 Broadway, Wells Fargo 
Building, Oakland, CA 94612.
    (28) Savannah River Operations Office, P.O. Box ``A,'' Aiken, SC 
29801.
    (29) Southeastern Power Administration, Elberton, GA 30635.
    (30) Southwestern Power Administration, P.O. Drawer 619, Tulsa, OK 
74101.
    (31) Western Area Power Administration, P.O. Box 3402, Golden, CO 
80401.


[[Page 579]]


    (d) General Counsel means the General Counsel provided for in 
section 202(b) of the Department of Energy Organization Act, or any DOE 
attorney designated by the General Counsel.
    (e) Headquarters means all DOE facilities functioning within the 
Washington, DC metropolitan area.
    (f) Individual means a citizen of the United States or an alien 
lawfully admitted for permanent residence, but does not include 
proprietorships, businesses, or corporations. Where appropriate, the 
term individual also includes a duly authorized representative of an 
individual.
    (g) Maintain means maintain, collect, use, or disseminate.
    (h) Privacy Act Officer means the person designated by the Director, 
Office of Administration, as responsible for administering the DOE's 
program for implementing the requirements of the Privacy Act of 1974 at 
the DOE locations listed at Sec. 1008.2(c).
    (i) Record means any item, collection, or grouping of information 
about an individual that is maintained by or for the DOE including, but 
not limited, to education, financial transactions, medical history, and 
criminal or employment history, and that contains that individual's 
name, or other identifying number, symbol, or other identifying 
particulars assigned to the individual, such as a finger or voice print 
or photograph. See subsection (a)(4) of the Act.
    (j) Routine use means, with respect to the disclosure of a record, 
the use of such record for a purpose which is compatible with the 
purpose for which it was collected. See subsection (a)(7) of the Act.
    (k) Statistical record means a record in a system of records 
maintained for statistical research or reporting purposes only and not 
used in whole or in part in making any determination about an 
identifiable individual, except as provided by 13 U.S.C. 8. See 
subsection (a)(6) of the Act.
    (l) System Manager means the DOE official who is responsible for a 
system of records as designated in the system notice of that system of 
records published by DOE.
    (m) System of records means a group of any records under DOE control 
from which information is retrieved by the name of the individual or by 
some identifying number, symbol, or other identifying particulars 
assigned to the individual. See subsection (a)(5) of the Act.
    (n) Act means the Privacy Act of 1974, Public Law 93-579; references 
to subsections of the Act mean subsections of section 3 of the Act.



Sec. 1008.3  Employee standards of conduct with regard to privacy.

    (a) The Headquarters DOE Privacy Act Officer shall assure that DOE 
personnel are advised of the provisions of the Privacy Act, including 
the criminal penalties and civil liabilities provided therein, 
(subsections (g) and (i) of the Act), and that DOE personnel are made 
aware of their responsibilities: to protect the security of personal 
information to assure its accuracy, relevance, timeliness and 
completeness; to avoid unauthorized disclosure; and to insure that no 
system of records concerning individuals, no matter how insignificant or 
specialized, is maintained without public notice.
    (b) DOE personnel shall:
    (1) Collect or maintain no information of a personal nature about 
individuals unless relevant and necessary to achieve a purpose or carry 
out a responsibility of the DOE as required by statute or by Executive 
Order. See subsection (e)(1) of the Act and Sec. 1008.18(a).
    (2) Collect information, wherever possible, directly from the 
individual to whom it pertains. See subsection (e)(2) of the Act and 
Sec. 1009.19(a).
    (3) Inform individuals from whom information is collected of the 
authority for collection, the principal purposes for which the 
information will be used, the routine uses that will be made of the 
information, and the effects of not furnishing the information. See 
subsection (e)(3) of the Act and Sec. 1008.19(b).
    (4) Collect, maintain, use or disseminate no information concerning 
an individual's rights guaranteed by the First Amendment, unless:
    (i) The individual has volunteered such; or
    (ii) The information is expressly authorized by statute to be 
collected, maintained, used or disseminated; or

[[Page 580]]

    (iii) The activities involved are pertinent to and within the scope 
of an authorized law enforcement activity. See subsection (e)(7) of the 
Act and Sec. 1008.18(b).
    (5) Advise their supervisors of the existence or proposal of any 
system of records which retrieves information about individuals by the 
individual's name or other identifying number, symbol, or identifying 
particulars assigned to the individual.
    (6) Maintain an accounting, in the prescribed form, of all 
disclosures of information other than those to officers or employees who 
have a need for the record in the performance of their duties and those 
required under the Freedom of Information Act. See subsection (c) of the 
Act.
    (7) Disclose no records other than to DOE personnel without the 
advance written consent of the individual, except as authorized by 5 
U.S.C. 552a(b) including routine uses published in the Federal Register.
    (8) Maintain and process information concerning individuals with 
care to insure that no inadvertent disclosure of the information is 
made. See subsection (e)(10) of the Act.
    (9) Inform the proper DOE authorities of any information maintained 
in a DOE system of records which is not authorized by the Privacy Act of 
1974.
    (c) Heads of Headquarters Divisions and Offices and heads of the 
other DOE locations shall review annually the systems of records subject 
to their responsibility to insure compliance with the requirements of 
the Privacy Act of 1974.



Sec. 1008.4  Procedures for identifying the individual making a request for access to or amendment of records.

    (a) When a request for information about or for access to or 
correction of a record pertaining to an individual and contained in a 
system of records has been made pursuant to Sec. 1008.6, valid 
identification of the individual making the request shall be required 
before information will be given, access granted or a correction 
considered, to insure that information is given, corrected, or records 
disclosed or corrected only at the request of the proper person.
    (b) Subject to paragraphs (c) and (d) of this section, an individual 
making a request may establish his identity by:
    (1) Including with his request, if submitted by mail, a photocopy of 
two identifying documents bearing his name and signature, one of which 
shall bear his current home or business address and date of birth; or
    (2) Appearing at the appropriate DOE location during the regular 
business hours and presenting either of the following:
    (i) One identifying document bearing the individual's photograph and 
signature, such as a driver's license or passport; or
    (ii) Two identifying documents bearing the individual's name and 
signature, one of which shall bear the individual's current home or 
business address and date of birth; or
    (3) Providing such other proof of identity as the Privacy Act 
Officer deems satisfactory in the circumstances of a particular request.
    (c) If the Privacy Act Officer or the appropriate System Manager 
determines that the information in a record is so sensitive that 
unauthorized access could cause harm or embarrassment to the individual 
whose record in involved, or if the individual making the request is 
unable to produce satisfactory evidence of identity under paragraph (b) 
or (d) of this section, the individual making the request may be 
required to submit a notarized statement attesting to his identity and 
his understanding of the criminal penalties provided under section 1001 
of title 18 of the United States Code for making false statements to a 
Government agency and under subsection (i)(3) of the Act for obtaining 
records under false pretenses. Copies of these statutory provisions and 
forms of such notarized statements may be obtained upon request from the 
Privacy Act Officer, Headquarters, Department of Energy, Washington, DC.
    (d) When an individual acting as the parent of a minor or the legal 
guardian of the person to whom a record pertains makes a request 
pursuant to Sec. 1008.6 of this part:

[[Page 581]]

    (1) Such an individual shall establish his personal identity in the 
same manner required in either paragraph (b) or (c) of this section.
    (2) In addition, such an individual shall establish his identity in 
the representative capacity of parent or legal guardian. In the case of 
the parent of a minor, the proof of identity shall be a certified or 
authenticated copy of the minor's birth certificate. In the case of the 
legal guardian of a person who has been declared incompetent due to 
physical or mental incapacity or age by a court of competent 
jurisdiction, the proof of identity shall be a certified or 
authenticated copy of the order from a court of competent jurisdiction.
    (3) A parent or legal guardian may act only for a living individual, 
not for a decedent. Requests for the records of decedents will be 
handled under the Freedom of Information Act (5 U.S.C. 552).



Sec. 1008.5  Effect of the Freedom of Information Act (FOIA).

    (a) DOE shall not rely on any exemption contained in the Freedom of 
Information Act (5 U.S.C. 552) to withhold from the individual to whom 
it pertains, any record which is otherwise accessible to such individual 
under this part.
    (b) DOE shall rely on subsection (b) of the Privacy Act to withhold 
information from a person other than the person to whom the record 
pertains only when the information is also exempt from disclosure under 
the FOIA.
    (c) Where a request for access to records is submitted pursuant to 
both the FOIA and the Privacy Act, the DOE shall, to the maximum extent 
possible, process the request under the provisions of this part, 
including the time limits of this part.



               Subpart B--Requests for Access or Amendment



Sec. 1008.6  Procedures for Privacy Act requests.

    (a) Any individual may--
    (1) Ask the DOE whether a system of records maintained by the DOE 
contains records about him or her;
    (2) Request access to information pertaining to him or her that is 
maintained in a DOE system of records;
    (3) Request that information about him or her in a DOE system of 
records be amended or corrected. Requests for correction or amendment 
may include inquiries concerning:
    (i) Whether such information is relevant or necessary to accomplish 
a purpose that DOE is required to accomplish by statute or Executive 
Order; or
    (ii) If the information is to be used by the DOE in making a 
determination about the individual, whether the information is as 
accurate, relevant, timely, or complete as is reasonably necessary to 
assure fairness in the determination.
    (b) Requests submitted pursuant to this section shall:
    (1) Be in writing and signed by the individual making the request;
    (2) State that the request is a ``Privacy Act Access'' or ``Privacy 
Act Amendment'' request;
    (3) Include the identification information required by Sec. 1008.4;
    (4) Specify, if possible, the title and identifying number of the 
system of records as listed in DOE's published notices of system of 
records;
    (5) Provide if possible any additional information to aid DOE in 
responding to the request, for example, a description of the records 
sought;
    (6) Indicate, as appropriate, the time, place, and form of access 
sought.
    (c) Any request not addressed and marked as specified in paragraph 
(a) of this section shall be forwarded immediately to the appropriate 
Privacy Act Officer. An improperly addressed request will not be deemed 
to have been received for purposes of measuring time periods pursuant to 
Secs. 1008.7 and 1008.10 until actual receipt by the appropriate Privacy 
Act Officer. The individual making the request shall be notified that 
the request was improperly addressed and the date when the request was 
received by the Privacy Act Officer.
    (d) Assistance in preparing an access request pursuant to this 
section may be obtained from any DOE Privacy Act Officer at the 
locations listed at Sec. 1008.2(e).

[[Page 582]]

    (e) An individual shall not be required to state a reason or 
otherwise justify his request for information or access to a record 
pertaining to him/her that is contained in a system of records.



Sec. 1008.7  Processing of requests.

    (a) Receipt of a request made in accordance with Sec. 1008.6 shall 
be promptly acknowledged by the Privacy Act Officer.
    (b) Each request shall be acted upon promptly. Every effort will be 
made to respond within ten working days of the date of receipt by the 
System Manager or designee. If a response cannot be made within ten 
working days, the appropriate Privacy Act Officer shall send an interim 
response providing information on the status of the request, including 
an estimate of the time within which action is expected to be taken on 
the request and asking for any further information as may be necessary 
to respond to the request. Action will be completed as soon as possible, 
but not later than 20 working days after receipt of the original 
specific inquiry. In unusual circumstances and for good cause, the 
appropriate Privacy Act Officer may decide that action cannot be 
completed within the initial 20 working days. In such case, the 
appropriate Privacy Act Officer will advise the individual of the reason 
for the delay and the date (not to exceed an additional 20 working days) 
by which action can be expected to be completed.
    (c) The term unusual circumstances as used in this section includes 
situations where a search for requested records from inactive storage is 
necessary; cases where a voluminous amount of data is involved; 
instances where information on other individuals must be separated or 
expunged from the particular record; and cases where consultation with 
other agencies which have substantial interest in the response to the 
request is necessary.
    (d) Upon receiving a request, the Privacy Act Officer shall 
ascertain which System Manager or Managers of the DOE have primary 
responsibility for, custody of, or concern with the system or systems of 
records subject to the request and shall forward the request to such 
System Manager or Managers. The System Manager or Managers shall 
promptly identify and, in consultation with the General Counsel, review 
the records encompassed by the request.
    (e) Where the request is for access to or information about records, 
after reviewing the material the System Manager or Managers concerned 
shall transmit to the Privacy Act Officer the requested material. The 
transmission to the Privacy Act Officer shall include any recommendation 
that the request be granted or wholly or partially denied and shall set 
forth any exemption categories supporting denials. Any denial 
recommendation must be concurred in by the appropriate General Counsel.
    (f) Where the request is for correction or amendment of records, 
after reviewing the material the System Manager or Managers shall 
transmit a recommended decision to the Privacy Act Officer. Any 
recommendation that the request be granted or wholly or partially denied 
shall cite the exemption relied on and set forth the policy 
considerations supporting a denial. Any recommendation of denial must be 
concurred in by General Counsel.



Sec. 1008.8  Action in response to a request for access: disclosure of requested information to subject individuals.

    (a) Consistent with the recommendation of the System Manager and the 
concurrence of the appropriate General Counsel, the Privacy Act Officer 
shall provide to the requesting individual the information about or 
access to a record or information pertaining to the individual contained 
in a system of records, unless the request is being denied in accordance 
with Sec. 1008.9 of this part. The Privacy Act Officer shall notify the 
individual of such determination and provide the following information:
    (1) Whether there is information or a record pertaining to him that 
is contained in a system of records;
    (2) The methods of access as set forth in paragraph (b) of this 
section;
    (3) The place at which the record or information may be inspected;
    (4) The earliest date on which the record or information may be 
inspected and the period of time that the record

[[Page 583]]

or information will remain available for inspection. In no event shall 
the earliest date be later than thirty calendar days from the date of 
notification.
    (5) An indication that copies of the records are enclosed, or the 
estimated date by which a copy of the record could be mailed and the 
estimate of fees that would be charged to provide other than the first 
copy of the record, pursuant to Sec. 1008.13.
    (6) The fact that the individual, if he wishes, may be accompanied 
by another person during the in-person review of the record or 
information, provided that the individual shall first furnish to the 
Privacy Act Officer a written statement authorizing disclosure of that 
individual's record in the accompanying person's presence; and
    (7) Any additional requirements that must be satisfied in order to 
provide information about or to grant access to the requested record or 
information.
    (b) The following methods of access to records or information 
pertaining to an individual and contained in a system of records may be 
available to that individual depending on the circumstances of a 
particular request:
    (1) A copy of the record may be enclosed with the initial response 
in accordance with paragraph (a) of this section;
    (2) Inspection in person may be arranged during the regular business 
hours of the DOE in the office specified by the Privacy Act Officer;
    (3) Transfer of records to a Federal facility more convenient to the 
individual may be arranged, but only if the Privacy Act Officer 
determines that a suitable facility is available, that the individual's 
access can be properly supervised at that facility, and that transmittal 
of the records or information to that facility will not unduly interfere 
with operations of the DOE or involve unreasonable costs, in terms of 
money or manpower; and
    (4) The requested number of copies in addition to the initial copy 
may be mailed at the request of the individual, subject to payment of 
the fees prescribed in Sec. 1008.13.
    (c) If the Privacy Act Officer believes, based upon a recommendation 
of the System Manager and the agency's medical officer, that disclosure 
of medical and/or psychological information directly to an individual 
could have an adverse effect upon that individual, the individual may be 
asked:
    (1) To designate in writing a physician or mental health 
professional to whom he would like the records to be disclosed; or
    (2) To submit a signed statement by his physician or a mental health 
professional indicating that, in his view, disclosure of the requested 
records or information directly to the individual will not have an 
adverse effect upon the individual. If the individual refuses to 
designate a physician or mental health professional, or to submit a 
signed statement from his physician or mental health professional as 
provided in paragraphs (c) (1) and (2) of this section, the request will 
be considered denied, and the appeal rights provided in Sec. 1008.11 
will be available to the individual.
    (d) The Privacy Act Officer shall supply such other information and 
assistance at the time of an individual's review of his record as is 
necessary to make the record intelligible to the individual.
    (e) The DOE will, as required by subsection (d)(1), assure an 
individual's right ``to review his or her record and have a copy made of 
all or any portion thereof in a form comprehensible to him.'' However, 
original records will be made available to individuals only under the 
supervision of the Privacy Act Officer or his designee. Individuals will 
be provided at their request with a copy, but not the original, of 
records pertaining to them.



Sec. 1008.9  Action in response to a request for access: initial denial of access.

    (a) A request by an individual for information about or access to a 
record or information pertaining to that individual that is contained in 
a system of records may be denied only upon a determination by the 
appropriate System Manager, with the concurrence of the appropriate 
General Counsel, that:
    (1) The record is subject to an exemption under Sec. 1008.12;

[[Page 584]]

    (2) The record is information compiled in reasonable anticipation of 
a civil action or proceeding; or
    (3) The individual has unreasonably failed to comply with the 
procedural requirements of this part.
    (b) The Privacy Act Officer shall give written notice of the denial 
of a request of information about or access to records or information 
pertaining to the individual and contained in a system of records. Such 
written notice shall be sent by certified or registered mail, return 
receipt requested and shall include the following information:
    (1) The System Manager's name and title;
    (2) The reasons for the denial, including citation to the 
appropriate sections of the Privacy Act and this part; and
    (3) Notification of the individual's right to appeal the denial 
pursuant to Sec. 1008.11 and to administrative and judicial review under 
5 U.S.C. 552a(g)(1)(B), as limited by 552a(g)(5).
    (c) Nothing in this section shall:
    (1) Require the furnishing of information or records that are not 
retrieved by the name or by some other identifying number, symbol or 
identifying particular of the individual making the request;
    (2) Prevent a System Manager from waiving any exemption authorizing 
the denial of records, in accordance with Sec. 1008.12.



Sec. 1008.10  Action in response to a request for correction or amendment of records.

    (a) The Privacy Act Officer must respond in writing to the requester 
for amendment of a record within 10 working days of receipt. This 
response shall inform the requester of the decision whenever possible.
    (b) If the decision cannot be reached within 10 working days, the 
requester shall be informed of the reason for delay and the date (within 
20 working days) it is expected that the decision will be made.
    (c) The Privacy Act Officer, consistent with the recommendation of 
the System Manager or Managers, as concurred in by the appropriate 
General Counsel, if appropriate, shall do one of the following:
    (1) Instruct the System Manager to make the requested correction or 
amendment; and advise the individual in writing of such action, 
providing either a copy of the corrected or amended record, or a 
statement as to the means whereby the correction or amendment was 
accomplished in cases where a copy cannot be provided (for example, 
erasure of information from a record maintained only in an electronic 
data bank); or
    (2) Inform the individual in writing that his request is denied in 
whole or in part. Such denial shall be sent by certified or registered 
mail, return receipt requested, and shall provide the following 
information:
    (i) The System Manager's name and title;
    (ii) The reasons for the denial; including citation to the 
appropriate sections of the Act and this part; and
    (iii) Notification of the individual's right to appeal the denial 
pursuant to Sec. 1008.11 and to administrative and judicial review under 
5 U.S.C. 552a(g)(1)(B), as limited by 5 U.S.C. 552a(g)(5).
    (iv) Notification of the right of the individual to submit a 
statement of disagreement consistent with Sec. 1008.11(g).
    (d) Whenever an individual's record is amended pursuant to a request 
by that individual, the Privacy Act Officer or the System Manager, as 
appropriate, shall notify all persons and agencies to which the amended 
portion of the record had been disclosed prior to its amendment, if an 
accounting of such disclosure was required by the Act. The notification 
shall request a recipient agency maintaining the record to acknowledge 
receipt of the notification, to correct or amend the record and to 
apprise an agency or person to which it had disclosed the record of the 
substance of the amendment.
    (e) The following criteria will be taken into account by the DOE in 
reviewing a request for amendment:
    (1) The sufficiency of the evidence submitted by the individual;
    (2) The factual accuracy of the information;
    (3) The relevance and necessity of the information in relation to 
the purpose for which it was collected;

[[Page 585]]

    (4) If such information is used in making any determination about 
the individual, whether the information is as accurate, relevant, 
timely, and complete as is reasonably necessary to assure fairness to 
the individual in such determination;
    (5) The degree of possibility that denial of the request could 
unfairly result in a determination adverse to the individual;
    (6) The nature of the record sought to be corrected or amended; and
    (7) The propriety and feasibility of complying with the specific 
means of amendment requested by the individual.
    (f) The DOE will not undertake to gather evidence for the 
individual, but does reserve the right to verify the evidence that the 
individual submits.
    (g) Amendment of a record requested by an individual may be denied 
upon a determination that:
    (1) The individual has failed to establish, by a preponderance of 
the evidence, the propriety of the amendment in relation to the criteria 
stated in paragraph (c) of this section;
    (2) The record sought to be amended was compiled in a terminated 
judicial, quasi-judicial or quasi-legislative proceeding to which the 
individual was a party or participant;
    (3) The record sought to be amended is the subject of a pending 
judicial, quasi-judicial or quasi-legislative proceeding to which the 
individual is a party or participant;
    (4) The amendment would violate a duly enacted statute or 
promulgated regulation;
    (5) The individual has unreasonably failed to comply with the 
procedural requirements of this part; or
    (6) The record has been properly exempted from the provisions of 
subsection (d) of the Act.
    (h) Nothing in this section shall restrict the DOE from granting in 
part or denying in part a request for amendment of records.
[45 FR 61577, Sept. 16, 1980; 46 FR 31637, June 17, 1981]



Sec. 1008.11  Appeals of denials of requests pursuant to Sec. 1008.6.

    (a) Any individual may appeal the denial of a request made by him 
for information about or for access to or correction or amendment of 
records. An appeal shall be filed within 30 calendar days after receipt 
of the denial. When an appeal is filed by mail, the postmark is 
conclusive as to timeliness. The appeal shall be in writing and must be 
signed by the individual. The words ``PRIVACY ACT APPEAL'' should appear 
in capital letters on the envelope and the letter. Appeals of denials 
relating to records maintained in government-wide systems of records 
reported by the OPM, shall be filed, as appropriate, with the Assistant 
Director for Agency Compliance and Evaluation, Office of Personnel 
Management (OPM), 1900 E Street, NW., Washington, DC 20415. All other 
appeals relating to DOE records shall be directed to the Director, 
Office of Hearings and Appeals (OHA), Department of Energy, 
Headquarters, Washington, DC.
    (b) An appeal not addressed and marked as specified in paragraph (a) 
of this section shall be forwarded immediately to the Assistant Director 
for Agency Compliance and Evaluation, OPM, or the Director, OHA, as 
appropriate. An appeal that is not properly addressed by an individual 
shall not be deemed to have been received for purposes of time periods 
in this section until actual receipt of the appeal by the Assistant 
Director, OPM, or the Director, OHA. In each instance when an appeal so 
forwarded is received, the individual filing the appeal shall be 
notified that the appeal was improperly addressed and the date when the 
appeal was received by the Assistant Director, OPM, or the Director, 
OHA.
    (c) The appeal shall include the following:
    (1) A copy of the original request for access or for amendment;
    (2) A copy of the initial denial; and
    (3) A statement of the reasons why the initial denial is believed to 
be in error.
    (d) The records or record to which the individual was denied access, 
or which was requested to be corrected or amended, will be supplied to 
the appropriate appeal authority by the Privacy Act Officer who issued 
the initial denial. While such records normally will comprise the entire 
record on appeal,

[[Page 586]]

the appeal authority may seek such additional information as is 
necessary to assure that the final determination is fair and equitable.
    (e) No personal appearance or hearing on appeal will be allowed.
    (f) The appropriate appeal authority for DOE records shall act upon 
the appeal and issue a final determination in writing no later than 20 
working days from the date on which the appeal is received. However, the 
appeal authority may extend the ten-day period upon a determination that 
a fair and equitable review cannot be made within that period. In such 
cases the individual shall be advised in writing of the reason for the 
extension and of the estimated date by which a final determination will 
be issued. The final determination shall be issued not later than the 
30th working day after receipt of the appeal unless unusual 
circumstances, as defined in Sec. 1008.7, are present, whereupon an 
additional 30 days may be extended.
    (g) If an appeal of a denial of access is granted, a copy of the 
determination shall be transmitted promptly to the individual, the 
Privacy Act Officer and the appropriate System Manager. Upon receipt of 
the determination, the Privacy Act Officer promptly shall take action 
consistent with Sec. 1008.8.
    (h) If an appeal of a denial of correction or amendment is granted, 
the final determination shall identify the specific corrections or 
amendments to be made. A copy of the determination shall be transmitted 
promptly to the individual, the Privacy Act Officer and the appropriate 
System Manager. Upon receipt of the determination, the Privacy Act 
Officer promptly shall take steps to insure that the actions set forth 
in Sec. 1008.10 (a) and (b) are taken.
    (i) If the appeal of a denial of access is denied, the final 
determination shall state the reasons for the denial and shall be 
transmitted promptly to the individual, the Privacy Act Officer and the 
appropriate System Manager. The determination shall also include a 
statement identifying the right of the individual to administrative and 
judicial review pursuant to 5 U.S.C. 552a(g)(1)(B) as limited by 5 
U.S.C. 552a(g)(5).
    (j) If the appeal of a denial of correction or amendment is denied, 
the final determination shall state the reasons for the denial and shall 
be transmitted promptly to the individual, the Privacy Act Officer and 
the appropriate System Manager.
    (1) The determination also shall include the following:
    (i) Notice of the right of the individual to file with the Privacy 
Act Officer a concise, signed statement of reasons for disagreeing with 
the final determination, receipt of which statement will be acknowledged 
by the Privacy Act Officer.
    (ii) An indication that any disagreement statement filed by the 
individual will be noted and appended to the disputed record and that a 
copy of the statement will be provided by the Privacy Act Officer or the 
System Manager, as appropriate, to persons and agencies to which the 
record is disclosed subsequent to the date of receipt of such statement;
    (iii) An indication that the DOE shall append to any disagreement 
statement filed by the individual a copy of the final determination or a 
summary thereof, which determination or summary also will be provided to 
persons and agencies to which the disagreement statement is disclosed; 
and,
    (iv) A statement of the right of the individual to administrative 
and judicial review under 5 U.S.C. 552a(g)(1)(B), as limited by 5 U.S.C. 
552a(g)(5).
    (2) Although a copy of the final determination or a summary thereof 
will be treated as part of the individual's record for purposes of 
disclosure in instances where the individual has filed a disagreement 
statement, it will not be subject to correction or amendment by the 
individual.
    (3) Where an individual files a statement of disagreement consistent 
with paragraph (j)(1) of this section, the Privacy Act Officer shall 
take steps to insure that the actions provided in paragraphs (j)(1) (i), 
(ii) and (iii) of this section are taken.



Sec. 1008.12  Exemptions.

    (a) General exemptions--(1) Generally. 5 U.S.C. 552a(j)(2) allows 
the exemption of any system of records within the

[[Page 587]]

DOE from any part of section 552a except subsections (b), (c)(1) and 
(2), (e)(4)(A) through (F) (e)(6), (7), (9), (10), and (11), and (i) of 
the Act if the system of records is maintained by a DOE component which 
performs as its principal function any activity pertaining to the 
enforcement of criminal laws, including police efforts to prevent, 
control, or reduce crime or to apprehend criminals, and which consists 
of:
    (i) Information compiled for the purpose of identifying individual 
criminal offenders and alleged offenders;
    (ii) Information compiled for the purpose of a criminal 
investigation, including reports of informants and investigators, and 
associated with an identifiable individual; or
    (iii) Reports identifiable to an individual compiled at any stage of 
the process of enforcement of the criminal laws from arrest or 
indictment through release from supervision.
    (2) Applicability of general exemptions to DOE systems of records--
(i) Investigative Files of the Inspector General (DOE-54). This system 
of records is being exempted pursuant to subsection (j)(2) of the Act in 
order to aid the Office of the Inspector General in the performance of 
its law enforcement function. The system is exempted from subsections 
(c)(3) and (4); (d)(1)-(4); (e)(1)-(3); (4)(G), (H), and (I); (5) and 
(8); and (g) of the Act. The system is exempt from these provisions for 
the following reasons: notifying an individual at the individual's 
request of the existence of records in an investigative file pertaining 
to such individual, or granting access to an investigative file could 
(A) interfere with investigative and enforcement proceedings and with 
co-defendants' right to a fair trial; (B) disclose the identity of 
confidential sources and reveal confidential information supplied by 
these sources; and (C) disclose investigative techniques and procedures.
    (ii) Law Enforcement Investigative Records (DOE-84). This system of 
records is being exempted pursuant to subsection (j)(2) of the Act to 
enable the Office of Counterintelligence to carry out its duties and 
responsibilities as they pertain to its law enforcement function. The 
system is exempted from subsections (c)(3) and (4), (d), (e) (1), (2), 
and (3), (e)(4) (G) and (H), (e)(8), (f), and (g) of the Act. The system 
is exempt from these provisions for the following reasons: Notifying an 
individual at the individual's request of the existence of records in an 
investigative file pertaining to such individual, or granting access to 
an investigative file could interfere with investigative and enforcement 
proceedings and with co-defendants' right to a fair trial; disclose the 
identity of confidential sources and reveal confidential information 
supplied by these sources; and disclose investigative techniques and 
procedures.
    (b) Specific exemptions. Subsection (k) of the Privacy Act 
establishes seven categories of systems of records which may be exempted 
from subsections (c)(3), (d), (e)(1), (e)(4)(G), (H) and (I), and (7) of 
the Act. The Department has exempted systems of records under four of 
these provisions, as follows:
    (1) Classified material. (i) Subsection (k)(1) permits exemption of 
systems of records that are specifically authorized under criteria 
established under statute or Executive Order to be kept secret in the 
interest of national defense or foreign policy, and are in fact properly 
classified pursuant to such statute or Executive Order. Restricted Data 
and Formerly Restricted Data under the Atomic Energy Act of 1954, as 
amended, are included in this exemption.
    (ii) The DOE systems of records listed below have been exempted 
under subsection (k)(1) to the extent they contain classified 
information, in order to prevent serious damage to the national defense 
or foreign policy that could arise from providing individuals access to 
classified information. Systems exempted under subsection (k)(1) are:

    (A) Alien Visits and Participation (DOE-52).
    (B) Clearance Board Cases (DOE-46).
    (C) Security Correspondence Files (DOE-49).
    (D) Foreign Travel Records (DOE-27)
    (E) Legal Files (Claims, Litigations, Criminal Violation, Patents, 
and other Legal Files) (DOE-41).
    (F) Personnel Security Clearance Files (DOE-43).
    (G) Personnel Security Clearance Index (Automated) (DOE-42).
    (H) Special Access Authorization for Categories of Classified 
Information (DOE-44).

[[Page 588]]

    (I) Administrative and Analytical Records and Reports (DOE-81).
    (J) Law Enforcement Investigative Records (DOE-84).

    (2) Investigatory material compiled for law enforcement purposes. 
(i) Subsection (k)(2) permits the exemption of investigatory material 
compiled for law enforcement purposes: Provided, however, That if any 
individual is denied any right, privilege, or benefit to which he would 
otherwise be entitled by Federal law, or for which he would otherwise be 
eligible, as a result of the maintenance of such material, such material 
shall be provided to such individual, except to the extent that the 
disclosure of such material would reveal the identity of a source who 
furnished information to the Government under an express promise that 
the identity of the source would be held in confidence, or, prior to 
September 27, 1975, under an implied promise that the identity of the 
source would be held in confidence.
    (ii) The DOE systems of records listed below have been exempted 
under subsection (k)(2) in order to prevent subjects of investigation 
from frustrating the investigatory process through access to records 
about themselves or as a result of learning the identities of 
confidential informants; to prevent disclosure of investigative 
techniques; to maintain the ability to obtain necessary information; and 
thereby to insure the proper functioning and integrity of law 
enforcement activities. Systems of records exempted under subsection 
(k)(2) are:

    (A) Alien Visits and Participation (DOE-52).
    (B) Clearance Board Cases (DOE-46).
    (C) Security Correspondence Files (DOE-49).
    (D) Foreign Travel Records (DOE-27).
    (E) Legal Files (Claims, Litigation, Criminal Violations, Patents, 
and other Legal Files) (DOE-41).
    (F) Personnel Security Clearance Files (DOE-43).
    (G) Personnel Security Clearance Index (Automated) (DOE-42).
    (H) Special Access Authorization for Categories of Classified 
Information (DOE-44).
    (I) DOE Personnel and General Employment Records (DOE-1) (only 
personnel investigative records concerning current and former DOE 
employees and applicants for employment by DOE).
    (J) Investigative Files of the Inspector General (DOE-54) (only 
investigative records concerning past and present DOE employees).
    (K) Administrative and Analytical Records and Reports (DOE-81).
    (L) Law Enforcement Investigative Records (DOE-84).
    (M) Allegation-Based Inspections Files of the Office of Inspector 
General (DOE-83).

    (3) Investigatory material compiled for determining suitability for 
Federal employment. (i) Subsection (k)(5) permits exemption of systems 
of records that contain investigatory material compiled solely for the 
purpose of determining suitability, eligibility, or qualification for 
Federal civilian employment, military service, Federal contracts, or 
access to classified information, but only to the extent that the 
disclosure of such material would reveal the identity of a source who 
furnished information to the Government under an express promise that 
the identity of the source would be held in confidence, or, prior to 
September 27, 1975, under an implied promise that the identity of the 
source would be held in confidence.
    (ii) The DOE systems of records listed below have been exempted 
under subsection (k)(5) to the extent they contain the kinds of records 
described in subsection (k)(5) in order to maintain DOE's ability to 
obtain candid information on candidates for employment, contracts, or 
access to classified information and to fulfill commitments made to 
sources to protect the confidentiality of information, and thereby to 
facilitate proper selection or continuation of the best applicants or 
persons for a given position or contract. Systems exempted under 
subsection (k)(5) are:

    (A) DOE Personnel and General Employment Records (DOE-1);
    (B) Personnel Security Clearance Files (DOE-43);
    (C) Investigative Files of the Inspector General (DOE-54);
    (D) Alien Visits and Participation (DOE-52);
    (E) Clearance Board Cases (DOE-46);
    (F) Security Correspondence Files (DOE-49);
    (G) Foreign Travel Records (DOE-27);

[[Page 589]]

    (H) Legal Files (Claims, Litigation, Criminal Violations, Patents, 
and other Legal Files) (DOE-41);
    (I) Personnel Security Clearance Index (Automated) (DOE-42);
    (J) Special Access Authorization for Categories of Classified 
Information (DOE-44);
    (K) DOE Personnel: Supervisor-Maintained Personnel Records (DOE-2);
    (L) Applications for DOE Employment (DOE-4);
    (M) Administrative and Analytical Records and Reports (DOE-81);
    (N) Law Enforcement Investigative Records (DOE-84).
    (O) Allegation-Based Inspections Files of the Office of Inspector 
General (DOE-83).

    (4) Testing or examination material. (i) Subsection (k)(6) permits 
exemption of systems of records that include testing or examination 
material used solely to determine individual qualifications for 
appointment or promotion in the Federal service, the disclosure of which 
would compromise the objectivity or fairness of the testing of 
examination process.
    (ii) The DOE systems of records listed below have been exempted to 
the extent they contain testing or examination material in order to 
protect the integrity of the personnel testing and evaluation process 
and to avoid providing individuals with unfair advantage, by premature 
or unfair disclosure of testing or rating information. Systems exempted 
under subsection (k)(6) are:

    (A) (DOE-2) DOE Personnel: Supervisor-Maintained Personnel Records.
    (B) (DOE-4) Applications for DOE Employment.
    (C) (DOE-1) DOE Personnel and General Employment Records.

    (c) Application of exemptions to particular requests. (1) The 
Privacy Act Officer, consistent with the recommendation of the System 
Manager and with concurrence of the appropriate General Counsel, may 
make available records which the DOE is authorized to withhold under 
this section.
    (2) With respect to records containing material or information that 
would reveal the identity of a source who was given an assurance of 
confidentiality, a determination to make records available pursuant to 
paragraph (c)(1) of this section shall be made only if the source 
consents to the release of such information to the individual, or if it 
is determined that the material or information is not adverse or 
detrimental to the individual, or for good cause shown. The exercise of 
discretion with respect to waiver of the exemption shall be final.
    (3) Prior to making a determination to deny access to a record in a 
system of records covered by exemption (k)(1) for classified material 
(see paragaph (b)(1) of this section), the System Manager shall consult 
with the Director, Division of Classification, to verify the current 
classification status of the information in the requested record.
[45 FR 61577, Sept. 16, 1980, as amended at 60 FR 35836, July 12, 1995; 
62 FR 67519, Dec. 24, 1997]

    Effective Date Note: At 62 FR 67519, Dec. 24, 1997, Sec. 1008.12 was 
amended by adding paragraphs (b)(2)(ii)(M) and (b)(3)(ii)(O), effective 
Jan. 23, 1998.



Sec. 1008.13  Fees.

    (a) The only fees to be charged to or collected from an individual 
under the provisions of this part are for copying records at the request 
of the individual. The fee charged shall be consistent with the fee 
schedule set forth in paragraph (b) of this section.
    (1) No fees shall be charged or collected for the following: Search 
for and retrieval of records; review of records; copying by the DOE 
incident to granting access; copying at the initiative of the DOE 
without a request from the individual; copying when the aggregate of 
fees for copying is $25 or less; time spent providing copies; 
transportation of records and personnel; and first class postage.
    (2) It is the policy of the DOE to provide an individual with one 
copy of each record corrected or amended pursuant to request without 
charge.
    (3) As required by the Office of Personnel Management in its 
published regulations implementing the Act, the DOE will charge no fee 
for a single copy of a personnel record covered by that Commission's 
Government-wide published notice of systems of records.
    (b) The schedule of fees is as follows:
    (1) $.10 per copy of each page.
    (2) For other forms of copying and other forms of materials (e.g., 
cassettes, computer materials), the direct

[[Page 590]]

cost of the materials, personnel, and equipment shall be charged, but 
only with prior specific approval of the person making the request, when 
such charges would be in excess of $25.
    (c) The Privacy Act Officer may, upon application by an individual, 
furnish any records without charge or at a reduced rate, if the Privacy 
Act Officer determines that such waiver or reduction of fees is in the 
public interest.
    (d) Payment shall be made by check or money order payable to the 
United States Department of Energy.
    (e) Advance payment of all or part of the fees may be required at 
the discretion of the Privacy Act Officer. Unless the individual 
requesting the copies specifically states that he is willing to pay 
whatever fees are assessed for meeting the request or, alternatively, 
specifies an amount in excess of $25 that he is willing to pay and which 
in fact covers the anticipated fees for meeting the request, a request 
that is expected to involve assessed fees in excess of $25 shall not be 
deemed to have been received, for purposes of the time periods specified 
in Secs. 1008.7 and 1008.10 until the individual making the request is 
notified of the anticipated cost, agrees to bear it, and makes any 
advance deposit required. Such notification shall be made by the Privacy 
Act Officer as promptly as possible after receipt of the request.



Sec. 1008.14  Requests under false pretenses.

    Subsection (i)(3) of the Act provides that any person who knowingly 
and willingly requests or obtains any record concerning an individual 
from an agency under false pretenses shall be quilty of a misdeamenaor 
and fined not more than $5,000.



Sec. 1008.15  Civil remedies.

    Subsection (g) of the Act provides that an individual may bring suit 
against the DOE for a violation of the Privacy Act, as follows:
    (a) If the DOE refuses to grant a request for access to an 
individual's records, the court may order the DOE to provide the 
individual with access to his or her records and award reasonable 
litigation costs and attorney's fees.
    (b) If the DOE refuses to amend a record or fails to review an 
amendment request as required by subsection (d)(3) of the Act, the court 
may order the DOE to make the amendment and award reasonable litigation 
costs and attorney's fees.
    (c) If the DOE makes an adverse determination based on a record 
which is not maintained in an accurate, timely, relevant, and complete 
manner, the individual may be awarded actual damages of at least $1,000. 
In order to prevail, the individual must show that:
    (1) The DOE's action was willful and intentional; and
    (2) The adverse determination was based on the faulty record.
    (d) If the DOE fails to comply with any other provision of the 
Privacy Act or agency rule promulgated under the Act, in such a way as 
to have an adverse effect on the individual, the court may award actual 
damages of at least $1,000. In order to prevail, the individual must 
show that:
    (1) The DOE's action was willful and intentional; and
    (2) The agency's action had an adverse effort on the individual; and
    (3) The adverse effect was causally related to the DOE's action.



                 Subpart C--Disclosure to Third Parties



Sec. 1008.16  Prohibition against disclosure.

    Except as provided in Sec. 1008.17, the DOE shall not disclose any 
record which is contained in a system of records, by any means of 
communication, to any agency or to any person other than the individual 
who is the subject of the record.



Sec. 1008.17  Conditions of disclosure.

    (a) Notwithstanding the prohibition contained in Sec. 1008.16, the 
DOE may disclose records covered by this part (1) to the individual to 
whom the record pertains or to an agency or (2) to a person other than 
the individual where he has given his prior written consent to the 
disclosure or has made a written request for such disclosure.
    (b) Notwithstanding the prohibition contained in Sec. 1008.16 the 
DOE may also

[[Page 591]]

disclose records covered by this part whenever the disclosure is:
    (1) To officers and employees of the DOE who have a need for the 
record in the performance of their duties;
    (2) Required under the Freedom of Information Act (5 U.S.C. 552);
    (3) For a routine use (as defined in Sec. 1008.2) which is described 
in the Federal Register notice for the system of records which the 
disclosure is to be made;
    (4) To the Bureau of the Census for purposes of planning or carrying 
out a census or survey or related activity pursuant to the provisions of 
title 13 of the United States Code;
    (5) To a recipient who has provided the agency with advance adequate 
written assurance that the record will be used solely as a statistical 
research or reporting record, and the record is to be transferred in a 
form that is not individually identifiable;
    (6) To the National Archives of the United States as a record which 
has sufficient historical or other value to warrant its continued 
preservation by the United States Government, or for evaluation by the 
Administrator of General Services or his designee to determine whether 
the record has such value;
    (7) To another agency or to an instrumentality of any governmental 
jurisdiction within or under the control of the United States for a 
civil or criminal law enforcement activity if the activity is authorized 
by law and if the head of the agency or instrumentality has made a 
written request to the DOE specifying the particular portion desired and 
the law enforcement activity for which the record is sought;
    (8) To a person pursuant to a showing of compelling circumstances 
affecting the health or safety of an individual if upon such disclosure 
notification is transmitted to the last known address of such 
individual;
    (9) To either House of Congress, or to any committee or subcommittee 
thereof, any joint committee of Congress or subcommittee of any such 
joint committee, to the extent of matter within its jurisdiction;
    (10) To the Comptroller General, or any of his authorized 
representatives, in the course of the performance of the duties of the 
General Accounting Office;
    (11) Pursuant to the order of a court of competent jurisdiction.
    (c) Notwithstanding the prohibition contained in Sec. 1008.16 of 
this part, the DOE may also disclose records covered by this part when 
disseminating a corrected or amended record or notation of a 
disagreement statement as required by subsection (c)(4) of the Act.



Sec. 1008.18  Accounting for disclosures.

    (a) For each disclosure of information contained in a system of 
records under his control, except disclosures to authorized officers and 
employees of DOE and disclosures required by the Freedom of Information 
Act, the appropriate System Manager shall keep an accurate accounting 
of:
    (1) The date, nature, and purposes of each disclosure of a record 
made to any person or to another agency; and
    (2) The name and address of the person or agency to which the 
disclosure was made.
    (b) The accounting shall be retained for at least five years or the 
life of the record, whichever is longer, after the disclosure for which 
the accounting is made.
    (c) The accounting described in paragraph (a) of this section shall 
be made available to the individual named in the record upon written 
request to the Privacy Act Officer at the appropriate DOE location 
listed at Sec. 1008.2(c) of this part. However, the accounting shall not 
be revealed with respect to disclosures made under Sec. 1008.17(b)(7) of 
this part, pertaining to law enforcement activity; or with respect to 
disclosures involving system of records for which DOE had claimed an 
exemption from certain requirements of the Act, as provided in 
Sec. 1008.12 of this part.
    (d) Whenever an amendment or correction of a record or a notation of 
dispute concerning the accuracy of records is made by the DOE in 
accordance with Secs. 1008.10(a)(2)(iv) and 1008.11(g) of this part, DOE 
shall inform any person or other agency to whom the record was 
previously disclosed if an accounting of the disclosure was made 
pursuant to the requirements of paragraph (a) of this section, unless 
the disclosure was made pursuant to Sec. 1008.17(b)(7) of

[[Page 592]]

this part; or the disclosure involved a system of records of which DOE 
has claimed an exemption from certain requirements of the Act, as 
provided in Sec. 1008.12 of this part.
    (e) The System Manager shall make reasonable efforts to serve notice 
on an individual when any record containing information about such 
individual in a DOE system of records is disclosed to any person under 
compulsory legal process when such process becomes a matter of public 
record.
    (f) Prior to disclosing any record about an individual to any person 
other than an agency, unless the disclosure is pursuant to the Freeedom 
of Information Act, the System Manager shall make reasonable efforts to 
assure that each record is accurate, complete, timely, and relevant for 
DOE's purposes.



Sec. 1008.19  Criminal penalties--improper disclosure.

    Subsection (i)(1) of the Act provides that a Federal employee who 
willfully discloses information subject to the Privacy Act in violation 
of the Act or rules promulgated under it shall be guilty of a 
misdemeanor and fined up to $5,000.



     Subpart D--Maintenance and Establishment of Systems of Records



Sec. 1008.20  Content of systems of records.

    (a) The DOE will maintain in its records only such information about 
an individual as is relevant and necessary to accomplish a purpose DOE 
is required to accomplish by statute or by Executive Order of the 
President, unless an exemption ot this requirement has been claimed by 
DOE, as provided in Sec. 1008.12 of this part.
    (b) The DOE will maintain no record describing how any individual 
exercises rights guaranteed by the First Amendment unless expressly 
authorized by statute or by the individual about whom the record is 
maintained or unless it is pertinent to and within the scope of an 
authorized law enforcement activity.
    (c) The DOE will maintain all records that are used by it to make 
any determination about any individual with such accuracy, relevance, 
timeliness and completeness as is reasonably necessary to assure 
fairness to the individual in such determination.



Sec. 1008.21  Collection of information by DOE about an individual for a system of records.

    (a) The DOE will collect information, to the greatest extent 
practicable, directly from the subject individual when the use of the 
information may result in adverse determinations about an individual's 
rights, benefits and privileges under Federal programs, unless an 
exemption from the Act to this requirement has been claimed by DOE as 
provided in Sec. 1008.12
    (b) Unless an exemption from the Act has been claimed by DOE under 
subsection (j)(2), as provided in Sec. 1008.12, DOE shall inform each 
individual whom it asks to supply information, on the form or other 
means by which it uses to collect the information, or on a separate form 
that can be retained by the individual, of the following:
    (1) The authority (whether granted by statute or by Executive Order 
of the President) that authorizes the solicitation of the information 
and whether the provision of such information is mandatory or voluntary;
    (2) The principal purpose or purposes for which the information is 
intended to be used;
    (3) The routine uses that may be made of the information, as 
published in the Federal Register pursuant to the requirements of the 
Act; and
    (4) The effect on the individual, if any, of not providing all or 
any part of the requested information.



Sec. 1008.22  Use and collection of social security numbers.

    (a) The System Manager of each system of records which utilizes 
social security numbers as a method of identification without statutory 
authorization or authorization by regulation adopted prior to January 1, 
1975, shall revise the system to avoid future collection and use of the 
social security numbers.
    (b) Heads of Headquarters Divisions and Offices and heads of the 
other DOE locations shall insure that employees

[[Page 593]]

authorized to collect information from individuals are advised that 
individuals may not be required to furnish social security numbers 
without statutory authorization, and that individuals who are requested 
to provide social security numbers voluntarily must be advised that 
furnishing the number is not required and that no penalty or denial of 
benefits will flow from the refusal to provide it.



Sec. 1008.23  Public notice of systems of records.

    (a) The DOE shall publish in the Federal Register at least annually 
a notice of the existence and character of each of its systems of 
records, which notice shall include:
    (1) The name and location of the system;
    (2) The categories of individuals on whom records are maintained in 
the system;
    (3) The categories of records maintained in the system;
    (4) Each routine use of the records contained in the system, 
including the categories of users and the purpose of such use, subject 
to paragraph (d) of this section;
    (5) The policies and practices of the DOE regarding storage, 
retrievability, access controls, retention, and disposal of the records;
    (6) The title and business address of the DOE official who is 
responsible for the system of records;
    (7) The DOE procedures whereby an individual can be notified at his 
request if the system of records contains a record pertaining to him;
    (8) The DOE procedures whereby an individual can be notified at his 
request about how he can gain access to any record pertaining to him 
contained in the system or records, and how he can contest its content; 
and
    (9) The categories of source of records in the systems.
    (b) Notwithstanding the requirements of paragraph (a) of this 
section, the notice of systems of records shall not necessarily include 
the information in paragraphs (a) (7) through (9) of this section if DOE 
has claimed a general or specific exemption from the requirements of the 
Act, as provided in Sec. 1008.12.
    (c) Copies of the notices as printed in the Federal Register shall 
be available at the DOE locations listed at Sec. 1008.2(c). Requests by 
mail for copies of such notices should be sent to Privacy Act Officer, 
Headquarters, U.S. Department of Energy, Washington, DC. 20585. The 
first copy will be furnished free of charge. For each additional copy, 
the costs of printing and handling may be charged.
    (d) DOE shall publish in the Federal Register notice of any new 
routine use or intended routine use of a record in the system of 
records, at least 30 calendar days prior to the implementation of any 
new routine use of a record in a system of records, or at least 30 
calendar days prior to publication of the annual notice of such routine 
uses, as provided in paragraph (a) of this section, an opportunity for 
interested persons to submit written comments consisting of data, views, 
or arguments regarding such use to DOE, shall be provided.



Sec. 1008.24  Criminal penalties--failure to publish a system notice.

    Subsection (i)(2) of the Act provides that an agency officer or 
employee who willfully maintains a system of records without publishing 
a system notice as required by subsection (e)(4) of the Act shall be 
guilty of a misdemeanor and fined up to $5,000.



PART 1009--GENERAL POLICY FOR PRICING AND CHARGING FOR MATERIALS AND SERVICES SOLD BY DOE--Table of Contents




Sec.
1009.1  Purpose and scope.
1009.2  Definitions.
1009.3  Policy.
1009.4  Exclusions.
1009.5  Supersessions.
1009.6  Dissemination of prices and charges.

    Authority: Sec. 644 of the Dept. of Energy Organization Act, Pub. L. 
95-91, 91 Stat. 565 (42 U.S.C. 7254); Atomic Energy Act of 1954, as 
amended (42 U.S.C. 2011 et seq.) ``User Fee Statue'', 31 U.S.C. 483a, 42 
U.S.C. 2111, 2112 and 2201.

    Source: 45 FR 70430, Oct. 24, 1980, unless otherwise noted.

[[Page 594]]



Sec. 1009.1  Purpose and scope.

    (a) This part establishes Department of Energy policy for 
establishing prices and charges for Department materials and services 
sold to organizations and persons outside the Federal Government.
    (b) This part applies to all elements of the Department except the 
Federal Energy Regulatory Commission.



Sec. 1009.2  Definitions.

    For the purposes of this regulation:
    (a) Allocable cost means a cost allocable to a particular cost 
objective (i.e., a specific function, project, process, or organization) 
if the costs incurred are chargeable or assignable to such cost 
objectives in accordance with the relative benefits received or other 
equitable relationships. Subject to the foregoing, a cost is allocable 
if:
    (1) It is incurred solely for materials or services sold;
    (2) It benefits both the customer and the Department in proportions 
that can be approximated through use of reasonable methods, or
    (3) It is necessary to the overall operation of the Department and 
is deemed to be assignable in part to materials or services sold.
    (b) Byproduct material means any radioactive material (except 
special nuclear material) yielded in or made radioactive by exposure to 
the radiation incident to the process of producing or utilizing special 
nuclear material.
    (c) Charges means an accumulation of job related costs for materials 
and services sold by the Department.
    (d) Commerical price means the price that a willing buyer is 
currently paying or would pay a willing seller for materials and 
services in the market.
    (e) Direct cost is any cost which can be identified specifically 
with a particular final cost objective.
    (f) Full cost includes all direct costs and all allocable costs of 
producing the material or providing the service consistent with 
generally accepted accounting principles. Direct costs and allocable 
costs may include, but are not limited to, the following cost elements:
    (1) Direct labor.
    (2) Personnel fringe benefits.
    (3) Direct materials.
    (4) Other direct costs.
    (5) Processing materials and chemicals.
    (6) Power and other utilities.
    (7) Maintenance.
    (8) Indirect cost, i.e., common costs which cannot be directly 
assigned to specific cost objectives and are therefore allocated to cost 
objectives in a systematic cost allocation process.
    (9) Depreciation which includes depreciation costs that are directly 
associated with facilities and equipment utilized, and allocated 
depreciation costs for support and general facilities and equipment.
    (10) Added factor includes general and administrative costs and 
other support costs that are incurred for the benefit of the Department, 
an organizational unit or a material or service as a whole.
    (g) Prices means the monetary amounts generally established and 
published for recurring sales of the same materials and services.
    (h) Source material means uranium or thorium.
    (i) Special nuclear material means plutonium, uranium enriched in 
the isotope 233 or in the isotope 235, or any materials artificially 
enriched by any of the foregoing. Special Nuclear Material does not 
include source material.



Sec. 1009.3  Policy.

    (a) The Department's price or charge for materials and services sold 
to persons and organizations outside the Federal Government shall be the 
Government's full cost for those materials and services, unless 
otherwise provided in this part.
    (b) Exceptions from the Department pricing and charging policy may 
be authorized in accordance with the following provisions:
    (1) Prices and charges for byproduct material sold pursuant to 42 
U.S.C. 2111 and 2112 et seq. shall be either the full cost recovery 
price or the commercial price, whichever is higher, except that lower 
prices and charges may be established by the Department if it is 
determined that such lower prices and charges (i) will provide 
reasonable compensation to the Government for such material, (ii) will 
not discourage the use of or the development of

[[Page 595]]

sources of supply independent of the DOE of such material, and (iii) 
will encourage research and development. In individual cases, if (ii) 
and (iii) cannot be equally accommodated, greater weight will be given 
to encouragement of research and development.
    (2) Prices and charges for materials and services sold pursuant to 
42 U.S.C. 2201 shall be either the full cost recovery price or the 
commercial price, whichever is higher, except that lower prices and 
charges may be established by the Department if it is determined that 
such lower prices and charges will provide reasonable compensation to 
the Government and will not discourage the development of sources of 
supply independent of the DOE of such material.



Sec. 1009.4  Exclusions.

    This part shall not apply when the amount to be priced or charged is 
otherwise provided for by statute, Executive Order, or regulations. This 
part does not apply to:
    (a) Fees, penalties and fines established by the Economic Regulatory 
Administration of DOE.
    (b) Power marketing and related activities of the Alaska Power 
Administration, the Bonneville Power Administration, the Southeastern 
Power Administration, the Southwestern Power Administration, and the 
Western Power Administration.
    (c) Crude oil, natural gas and other petroleum products and services 
by or from the Naval Petroleum and Oil Shale Reserves.
    (d) Uranium enriching services, source material, and special nuclear 
material.
    (e) Requests for information under the Freedom of Information Act 
and the Privacy Act.
    (f) Energy data and information provided by the Energy Information 
Administration.
    (g) Crude oil and related materials and services from the Strategic 
Petroleum Reserve.
    (h) The disposal of excess and surplus property.
    (i) Access permits for uranium enrichment technology issued in 
accordance with 10 CFR part 725.
    (j) Materials and services provided pursuant to a cooperative 
agreement, research assistance contract or grant, or made available to a 
DOE contractor in connection with a contract, the primary purpose of 
which is to procure materials or services for DOE.



Sec. 1009.5  Supersessions.

    Prices which appear in Federal Register Notices previously published 
by the Department, or its predecessor agencies, for materials and 
services covered by this rule are hereby superseded.



Sec. 1009.6  Dissemination of prices and charges.

    Current prices and charges for specific materials and services are 
available from the DOE laboratory or office providing the material or 
service, or from the responsible program office. If this office cannot 
be determined, inquiries regarding the appropriate contact office should 
be addressed to the Office, of Finance and Accounting, Product 
Accounting and Pricing Branch, Mail Station 4A-139, 1000 Independence 
Avenue, SW., Washington, DC 20585.



PART 1010--CONDUCT OF EMPLOYEES--Table of Contents




Sec.
1010.101  General.
1010.102  Cross-reference to employee ethical conduct standards and 
          financial disclosure regulations.
1010.103  Reporting wrongdoing.
1010.104  Cooperation with the Inspector General.
1010.105  Conflict of interest waiver.

    Authority: 5 U.S.C. 301, 303; 5 U.S.C. App. (Inspector General Act 
of 1978); 18 U.S.C. 208; and E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., 
p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 
306.

    Source: 61 FR 35088, July 5, 1996, unless otherwise noted.



Sec. 1010.101  General.

    This part applies to employees of the Department of Energy (DOE), 
excluding employees of the Federal Energy Regulatory Commission.

[[Page 596]]



Sec. 1010.102  Cross-reference to employee ethical conduct standards and financial disclosure regulations.

    Employees of DOE are subject to the Standards of Ethical Conduct for 
Employees of the Executive Branch at 5 CFR part 2635, the DOE regulation 
at 5 CFR part 3301 which supplements the executive branch-wide 
standards, the executive branch-wide financial disclosure regulations at 
5 CFR part 2634, and the executive branch-wide employee responsibilities 
and conduct regulation at 5 CFR part 735.



Sec. 1010.103  Reporting wrongdoing.

    (a) Employees shall, in fulfilling the obligation of 5 CFR 
2635.101(b)(11), report fraud, waste, abuse, and corruption in DOE 
programs, including on the part of DOE employees, contractors, 
subcontractors, grantees, or other recipients of DOE financial 
assistance, to the Office of Inspector General or other appropriate 
Federal authority.
    (b) All alleged violations of the ethical restrictions described in 
section 1010.102 that are reported in accordance with (a) of this 
section to an appropriate authority within the Department shall in turn 
be referred by that authority to the designated agency ethics official 
or his delegatee, or the Inspector General.



Sec. 1010.104  Cooperation with the Inspector General.

    Employees shall respond to questions truthfully under oath when 
required, whether orally or in writing, and must provide documents and 
other materials concerning matters of official interest. An employee is 
not required to respond to such official inquiries if answers or 
testimony may subject the employee to criminal prosecution.



Sec. 1010.105  Conflict of interest waiver.

    If a financial interest arises from ownership by an employee, or 
other person or enterprise referred to in 5 CFR 2635.402(b)(2), of stock 
in a widely diversified mutual fund or other regulated investment 
company that in turn owns stock in, or bonds of, another enterprise, 
that financial interest is exempt from the prohibition of 5 CFR 
2635.402(a).



PART 1013--PROGRAM FRAUD CIVIL REMEDIES AND PROCEDURES--Table of Contents




Sec.
1013.1  Basis and purpose.
1013.2  Definitions.
1013.3  Basis for civil penalties and assessments.
1013.4  Investigation.
1013.5  Review by the reviewing official.
1013.6  Prerequisites for issuing a complaint.
1013.7  Complaint.
1013.8  Service of complaint.
1013.9  Answer.
1013.10  Default upon failure to file an answer.
1013.11  Referral of complaint and answer to the ALJ.
1013.12  Notice of hearing.
1013.13  Parties to the hearing.
1013.14  Separation of functions.
1013.15  Ex parte contacts.
1013.16  Disqualification of reviewing official or ALJ.
1013.17  Rights of parties.
1013.18  Authority of the ALJ.
1013.19  Prehearing conferences.
1013.20  Disclosure of documents.
1013.21  Discovery.
1013.22  Exchange of witness lists, statements and exhibits.
1013.23  Subpoenas for attendance at hearing.
1013.24  Protective order.
1013.25  Witness fees.
1013.26  Form, filing and service of papers.
1013.27  Computation of time.
1013.28  Motions.
1013.29  Sanctions.
1013.30  The hearing and burden of proof.
1013.31  Determining the amount of penalties and assessments.
1013.32  Location of hearing.
1013.33  Witnesses.
1013.34  Evidence.
1013.35  The record.
1013.36  Post-hearing briefs.
1013.37  Initial decision.
1013.38  Reconsideration of initial decision.
1013.39  Appeal to authority head.
1013.40  Stays ordered by the Department of Justice.
1013.41  Stay pending appeal.
1013.42  Judicial review.
1013.43  Collection of civil penalties and assessments.
1013.44  Right to administrative offset.
1013.45  Deposit in Treasury of United States.
1013.46  Compromise or settlement.
1013.47  Limitations.

    Authority: 31 U.S.C. 3801-3812; 28 U.S.C. 2461 note.

    Source: 53 FR 44385, Nov. 3, 1988, unless otherwise noted.

[[Page 597]]



Sec. 1013.1  Basis and purpose.

    (a) Basis. This part implements the Program Fraud Civil Remedies Act 
of 1986, Pub. L. 99-509, sections 6101-6104, 100 Stat. 1874 (October 21, 
1986), codified at 31 U.S.C. 3801-3812. 31 U.S.C. 3809 of the statute 
requires each authority head to promulgate regulations necessary to 
implement the provisions of the statute.
    (b) Purpose. This part (1) establishes administrative procedures for 
imposing civil penalties and assessments against persons who make, 
submit, or present, or cause to be made, submitted, or presented, false, 
fictitious, or fraudulent claims or written statements to authorities or 
to their agents, and (2) specifies the hearing and appeal rights of 
persons subject to allegations of liability for such penalties and 
assessments.



Sec. 1013.2  Definitions.

    ALJ means an Admininstrative Law Judge in the authority appointed 
pursuant to 5 U.S.C. 3105 or detailed to the authority pursuant to 5 
U.S.C. 3344.
    Authority means the Department of Energy.
    Authority head means the Secretary or the Under Secretary of the 
Department of Energy.
    Benefit means, in the context of ``statement,'' anything of value, 
including but not limited to any advantage, preference, privilege, 
license, permit, favorable decision, ruling, status, or loan guarantee.
    Claim means any request, demand, or submission--
    (a) Made to the authority for property, services, or money 
(including money representing grants, loans, insurance, or benefits);
    (b) Made to a recipient of property, services, or money from the 
authority or to a party to a contract with the authority--
    (1) For property or services if the United States--
    (i) Provided such property or services;
    (ii) Provided any portion of the funds for the purchase of such 
property or services; or
    (iii) Will reimburse such recipient or party for the purchase of 
such property or services; or
    (2) For the payment of money (including money representing grants, 
loans, insurance, or benefits) if the United States--
    (i) Provided any portion of the money requested or demanded; or
    (ii) Will reimburse such recipient or party for any portion of the 
money paid on such request or demand; or
    (c) Made to the authority which has the effect of decreasing an 
obligation to pay or account for property, services, or money.
    Complaint means the administrative complaint served by the reviewing 
official on the defendant under Sec. 1013.7 of this part.
    Defendant means any person alleged in a complaint under Sec. 1013.7 
of this part to be liable for a civil penalty or assessment under 
Sec. 1013.3 of this part.
    Department means the Department of Energy.
    Government means the United States Government.
    Individual means a natural person.
    Initial decision means the written decision of the ALJ required by 
Sec. 1013.10 or Sec. 1013.37 of this part, and includes a revised 
initial decision issued following a remand or a motion for 
reconsideration.
    Investigating official means the Inspector General of the Department 
of Energy or an officer or employee of the Inspector General designated 
by the Inspector General and serving in a position for which the rate of 
basic pay is not less than the minimum rate of basic pay for grade GS-16 
under the General Schedule.
    Knows or has reason to know, means that a person, with respect to a 
claim or statement--
    (a) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent;
    (b) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (c) Acts in reckless disregard of the truth or falsity of the claim 
or statement.
    Makes, wherever it appears, shall include the terms presents, 
submits, and causes to be made, presented, or submitted. As the context 
requires, making or made, shall likewise include the corresponding forms 
of such terms.

[[Page 598]]

    Person means any individual, partnership, corporation, association, 
or private organization, and includes the plural of that term.
    Representative means an attorney, who is a member in good standing 
of the bar of any State, Territory, or possession of the United States 
or of the District of Columbia or the Commonwealth of Puerto Rico, and 
designated by a party in writing.
    Reviewing official means the General Counsel of the Department or 
his designee who is--
    (a) Not subject to supervision by, or required to report to, the 
investigating official;
    (b) Not employed in the organizational unit of the authority in 
which the investigating official is employed; and
    (c) Serving in a position for which the rate of basic pay is not 
less than the minimum rate of basic pay for grade GS-16 under the 
General Schedule.
    Statement means any representation, certification, affirmation, 
document, record, or accounting or bookkeeping entry made--
    (a) With respect to a claim or to obtain the approval or payment of 
a claim (including relating to eligibility to make a claim); or
    (b) With respect to (including relating to eligibility for)--
    (1) A contract with, or a bid or proposal for a contract with; or
    (2) A grant, loan, or benefit from, the authority, or any State, 
political subdivision of a State, or other party, if the United States 
Government provides any poztion of the money or property under such 
contract or for such grant, loan, or benefit, or if the Government will 
reimburse such State, political subdivision, or party for any portion of 
the money or property under such contract or for such grant, loan, or 
benefit.



Sec. 1013.3  Basis for civil penalties and assessments.

    (a) Claims. (1) Except as provided in paragraph (c) of this section, 
any person who makes a claim that the person knows or has reason to 
know--
    (i) Is false, fictitious, or fraudulent;
    (ii) Includes or is supported by any written statement which asserts 
a material fact which is false, fictitious, or fraudulent;
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making such statement has a 
duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed, shall be subject, in addition to 
any other remedy that may be prescribed by law, to a civil penalty of 
not more than $5,500 for each such claim.
    (2) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, or money constitutes a separate claim.
    (3) A claim shall be considered made to the authority, recipient, or 
party when such claim is actually made to an agent, fiscal intermediary, 
or other entity, including any State or political subdivision thereof, 
acting for or on behalf of such authority, recipient, or party.
    (4) Each claim for property, services, or money is subject to a 
civil penalty regardless of whether such property, services, or money is 
actually delivered or paid.
    (5) If the Government has made any payment (including transferred 
property or provided services) on a claim, a person subject to a civil 
penalty under paragraph (a)(1) of this section shall also be subject to 
an assessment of not more than twice the amount of such claim or that 
portion thereof that is determined to be in violation of paragraph 
(a)(1) of this section. Such assessment shall be in lieu of damages 
sustained by the Government because of such claim.
    (b) Statements. (1) Except as provided in paragraph (c) of this 
section, any person who makes a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that

[[Page 599]]

the person making the statement has a duty to include in such statement, 
and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may be 
prescribed by law, to a civil penalty of not more than $5,500 for each 
such statement.
    (2) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (3) A statement shall be considered made to the authority when such 
statement is actually made to an agent, fiscal intermediary, or other 
entity, including any State or political subdivision thereof, acting for 
or on behalf of such authority.
    (c) Application for certain benefits. (1) In the case of any claim 
or statement made by any individual relating to any of the benefits 
listed in paragraph (c)(2) of this section received by such individual, 
such individual may be held liable for penalties and assessments under 
this section only if such claim or statement is made by such individual 
in making application for such benefits with respect to such 
individual's eligibility to receive such benefits.
    (2) For purposes of paragraph (c) of this section, the term 
``benefits'' means benefits under part A of the Energy Conservation in 
Existing Buildings Act of 1976, which are intended for the personal use 
of the individual who receives the benefits or for a member of the 
individual's family.
    (d) No proof of specific intent to defraud is required to establish 
liability under this section.
    (e) In any case in which it is determined that more than one person 
is liable for making a claim or statement under this section, each such 
person may be held liable for a civil penalty under this section.
    (f) In any case in which it is determined that more than one person 
is liable for making a claim under this section on which the Government 
has made payment (including transferred property or provided services), 
an assessment may be imposed against any such person or jointly and 
severally against any combination of such persons.
[53 FR 44385, Nov. 3, 1988, as amended at 62 FR 46184, Sept. 2, 1997]



Sec. 1013.4  Investigation.

    (a) If an investigating official concludes that a subpoena pursuant 
to the authority conferred by 31 U.S.C. 3804(a) is warranted--
    (1) The subpoena so issued shall notify the person to whom it is 
addressed of the authority under which the subpoena is issued and shall 
identify the records or documents sought;
    (2) The investigating official may designate a person to act on his 
or her behalf to receive the documents sought; and
    (3) The person receiving such subpoena shall be required to tender 
to the investigating official or the person designated to receive the 
documents a certification that the documents sought have been produced, 
or that such documents are not available and the reasons therefor, or 
that such documents, suitably identified, have been withheld based upon 
the assertion of an identified privilege.
    (b) If the investigating official concludes that an action under the 
Program Fraud Civil Remedies Act may be warranted, the investigating 
official shall submit a report containing the findings and conclusions 
of such investigation to the reviewing official.
    (c) Nothing in this section shall preclude or limit an investigating 
official's discretion to refer allegations directly to the Department of 
Justice for suit under the False Claims Act or other civil relief, or to 
preclude or limit such official's discretion to defer or postpone a 
report or referral to the reviewing official to avoid interference with 
a criminal investigation or prosecution.
    (d) Nothing in this section modifies any responsibility of an 
investigating official to report violations of criminal law to the 
Attorney General.



Sec. 1013.5  Review by the reviewing official.

    (a) If, based on the report of the investigating official under 
Sec. 1013.4(b) of this part, the reviewing official determines that 
there is adequate evidence

[[Page 600]]

to believe that a person is liable under Sec. 1013.3 of this part, the 
reviewing official shall transmit to the Attorney General a written 
notice of the reviewing official's intention to issue a complaint under 
Sec. 1013.7 of this part.
    (b) Such notice shall include--
    (1) A statement of the reviewing official's reasons for issuing a 
complaint;
    (2) A statement specifying the evidence that supports the 
allegations of liability;
    (3) A description of the claims or statements upon which the 
allegations of liability are based;
    (4) An estimate of the amount of money or the value of property, 
services, or other benefits requested or demanded in violation of 
Sec. 1013.3 of this part;
    (5) A statement of any exculpatory or mitigating circumstances that 
may relate to the claims or statements known by the reviewing official 
or the investigating official; and
    (6) A statement that there is a reasonable prospect of collecting an 
appropriate amount of penalties and assessments.



Sec. 1013.6  Prerequisites for issuing a complaint.

    (a) The reviewing official may issue a complaint under Sec. 1013.7 
of this part only if--
    (1) The Department of Justice approves the issuance of a complaint 
in a written statement described in 31 U.S.C. 3803(b)(1), and
    (2) In the case of allegations of liability under Sec. 1013.3(a) of 
this part with respect to a claim, the reviewing official determines 
that, with respect to such claim or a group of related claims submitted 
at the same time such claim is submitted (as defined in paragraph (b) of 
this section), the amount of money or the value of property or services 
demanded or requested in violation of Sec. 1013.3(a) of this part does 
not exceed $150,000.
    (b) For the purposes of this section, a related group of claims 
submitted at the same time shall include only those claims arising from 
the same transaction (e.g., grant, loan, application, or contract) that 
are submitted simultaneously as part of a single request, demand, or 
submission.
    (c) Nothing in this section shall be construed to limit the 
reviewing official's authority to join in a single complaint against a 
person claims that are unrelated or were not submitted simultaneously, 
regardless of the amount of money, or the value of property or services, 
demanded or requested.



Sec. 1013.7  Complaint.

    (a) On or after the date the Department of Justice approves the 
issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the 
reviewing official may serve a complaint on the defendant, as provided 
in Sec. 1013.8 of this part.
    (b) The complaint shall state--
    (1) The allegations of liability against the defendant, including 
the statutory basis for liability, an identification of the claims or 
statements that are the basis for the alleged liability, and the reasons 
why liability allegedly arises from such claims or statements;
    (2) The maximum amount of penalties and assessments for which the 
defendant may be held liable;
    (3) Instructions for filing an answer to request a hearing, 
including a specific statement of the defendant's right to request a 
hearing by filing an answer and to be represented by a representative; 
and
    (4) That failure to file an answer within 30 days of service of the 
complaint will result in the imposition of the maximum amount of 
penalties and assessments without right to appeal, as provided in 
Sec. 1013.10 of this part.
    (c) At the same time the reviewing official serves the complaint, he 
or she shall serve the defendant with a copy of these regulations.



Sec. 1013.8  Service of complaint.

    (a) Service of a complaint must be made by certified or registered 
mail or by delivery in any manner authorized by Rule 4(d) of the Federal 
Rules of Civil Procedure. Service is complete upon receipt.
    (b) Proof of service, stating the name and address of the person on 
whom the complaint was served, and the manner and date of service, may 
be made by--
    (1) Affidavit of the individual serving the complaint by delivery;

[[Page 601]]

    (2) A United States Postal Service return receipt card acknowledging 
receipt; or
    (3) Written acknowledgment of receipt by the defendant or his or her 
representative.



Sec. 1013.9  Answer.

    (a) The defendant may request a hearing by filing an answer with the 
reviewing official within 30 days of service of the complaint. An answer 
shall be deemed to be a request for hearing.
    (b) In the answer, the defendant--
    (1) Shall admit or deny each of the allegations of liability made in 
the complaint;
    (2) Shall state any defense on which the defendant intends to rely;
    (3) May state any reasons why the defendant contends that the 
penalties and assessments should be less than the statutory maximum; and
    (4) Shall state the name, address, and telephone number of the 
person authorized by the defendant to act as defendant's representative, 
if any.
    (c) If the defendant is unable to file an answer meeting the 
requirements of paragraph (b) of this section within the time provided, 
the defendant may, before the expiration of 30 days from service of the 
complaint, file with the reviewing official a general answer denying 
liability and requesting a hearing, and a request for an extension of 
time within which to file an answer meeting the requirements of 
paragraph (b) of this section. The reviewing offical shall file promptly 
with the ALJ the complaint, the general answer denying liability, and 
the request for an extension of time as provided in Sec. 1013.11 of this 
part. For good cause shown, the ALJ may grant the defendant up to 30 
additional days within which to file an answer meeting the requirements 
of paragraph (b) of this section.



Sec. 1013.10  Default upon failure to file an answer.

    (a) If the defendant does not file an answer within the time 
prescribed in Sec. 1013.9(a) of this part, the reviewing official may 
refer the complaint to the ALJ.
    (b) Upon the referral of the complaint, the ALJ shall promptly serve 
on defendant in the manner prescribed in Sec. 1013.8 of this part, a 
notice that an initial decision shall be issued under this section.
    (c) The ALJ shall assume the facts alleged in the complaint to be 
true, and, if such facts establish liability under Sec. 1013.3 of this 
part, the ALJ shall issue an initial decision imposing the maximum 
amount of penalties and assessments allowed under the statute.
    (d) Except as otherwise provided in this section, by failing to file 
a timely answer, the defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the initial decision shall become final and binding upon the parties 
30 days after it is issued.
    (e) If, before such an initial decision becomes final, the defendant 
files a motion with the ALJ seeking to reopen on the grounds that 
extraordinary circumstances prevented the defendant from filing an 
answer, the initial decision shall be stayed pending the ALJ's decision 
on the motion.
    (f) If, on such motion, the defendant can demonstrate extraordinary 
circumstances excusing the failure to file a timely answer, the ALJ 
shall withdraw the initial decision in paragraph (c) of this section, if 
such a decision has been issued, and shall grant the defendant an 
opportunity to answer the complaint.
    (g) A decision of the ALJ denying a defendant's motion under 
paragraph (e) of this section is not subject to reconsideration under 
Sec. 1013.38 of this part.
    (h) The defendant may appeal to the authority head the decision 
denying a motion to reopen by filing a notice of appeal with the 
authority head within 15 days after the ALJ denies the motion. The 
timely filing of a notice of appeal shall stay the initial decision 
until the authority head decides the issue.
    (i) If the defendant files a timely notice of appeal with the 
authority head, the ALJ shall forward the record of the proceeding to 
the authority head.
    (j) The authority head shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's

[[Page 602]]

failure to file a timely answer based solely on the record before the 
ALJ.
    (k) If the authority head decides that extraordinary circumstances 
excused the defendant's failure to file a timely answer, the authority 
head shall remand the case to the ALJ with instructions to grant the 
defendant an opportunity to answer.
    (l) If the authority head decides that the defendant's failure to 
file a timely answer is not excused, the authority head shall reinstate 
the initial decision of the ALJ, which shall become final and binding 
upon the parties 30 days after the authority head issues such decision.



Sec. 1013.11  Referral of complaint and answer to the ALJ.

    Upon receipt of an answer, the reviewing official shall file the 
complaint and answer with the ALJ.



Sec. 1013.12  Notice of hearing.

    (a) When the ALJ receives the complaint and answer, the ALJ shall 
promptly serve a notice of hearing upon the defendant in the manner 
prescribed by Sec. 1013.8 of this part. At the same time, the ALJ shall 
send a copy of such notice to the representative for the Government.
    (b) Such notice shall include--
    (1) The tentative time, date, and place, and the nature of the 
hearing;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The matters of fact and law to be asserted;
    (4) A description of the procedures for the conduct of the hearing;
    (5) The name, address, and telephone number of the representative of 
the Government and of the defendant, if any; and
    (6) Such other matters as the ALJ deems appropriate.



Sec. 1013.13  Parties to the hearing.

    (a) The parties to the hearing shall be the defendant and the 
authority.
    (b) Pursuant to 31 U.S.C. 3730(c)(5), a private plaintiff under the 
False Claims Act may participate in these proceedings to the extent 
authorized by the provisions of that Act.



Sec. 1013.14  Separation of functions.

    (a) The investigating official, the reviewing official, and any 
employee or agent of the authority who takes part in investigating, 
preparing, or presenting a particular case may not, in such case or a 
factually related case--
    (1) Participate in the hearing as the ALJ;
    (2) Participate or advise in the initial decision or the review of 
the initial decision by the authority head, except as a witness or a 
representative in public proceedings; or
    (3) Make the collection of penalties and assessments under 31 U.S.C. 
3806.
    (b) The ALJ shall not be responsible to, or subject to the 
supervision or direction of, the investigating official or the reviewing 
official.
    (c) Except as provided in paragraph (a) of this section, the 
representative for the Government may be employed anywhere in the 
authority, including in the offices of either the investigating official 
or the reviewing official.



Sec. 1013.15  Ex parte contacts.

    No party or person (except employees of the ALJ's office) shall 
communicate in any way with the ALJ on any matter at issue in a case, 
unless on notice and opportunity for all parties to participate. This 
provision does not prohibit a person or party from inquiring about the 
status of a case or asking routine questions concerning administrative 
functions or procedures.



Sec. 1013.16  Disqualification of reviewing official or ALJ.

    (a) A reviewing official or ALJ in a particular case may disqualify 
himself or herself at any time.
    (b) A party may file with the ALJ a motion for disqualification of a 
reviewing official or an ALJ. Such motion shall be accompanied by an 
affidavit alleging personal bias or other reason for disqualification.
    (c) Such motion and affidavit shall be filed promptly upon the 
party's discovery of reasons requiring disqualification, or such 
objections shall be deemed waived.
    (d) Such affidavit shall state specific facts that support the 
party's belief that personal basis or other reason for disqualification 
exists and the time

[[Page 603]]

and circumstances of the party's discovery of such facts. It shall be 
accompanied by a certificate of the representative of record that it is 
made in good faith.
    (e) Upon the filing of such a motion and affidavit, the ALJ shall 
proceed no further in the case until he or she resolves the matter of 
disqualification in accordance with paragraph (f) of this section.
    (f)(1) If the ALJ determines that a reviewing official is 
disqualified, the ALJ shall dismiss the complaint without prejudice.
    (2) If the ALJ disqualifies himself or herself, the case shall be 
reassigned promptly to another ALJ.
    (3) If the ALJ denies a motion to disqualify, the authority head may 
determine the matter only as part of his or her review or the initial 
decision upon appeal, if any.



Sec. 1013.17  Rights of parties.

    Except as otherwise limited by this part, all parties may--
    (a) Be accompanied, represented, and advised by a representative;
    (b) Participate in any conference held by the ALJ;
    (c) Conduct discovery;
    (d) Agree to stipulations of fact or law, which shall be made part 
of the record;
    (e) Present evidence relevant to the issues at the hearing;
    (f) Present and cross-examine witnesses;
    (g) Present oral arguments at the hearing as permitted by the ALJ; 
and
    (h) Submit written briefs and proposed findings of fact and 
conclusions of law.



Sec. 1013.18  Authority of the ALJ.

    (a) The ALJ shall conduct a fair and impartial hearing, avoid delay, 
maintain order, and assure that a record of the proceeding is made.
    (b) The ALJ has the authority to--
    (1) Set and change the date, time, and place of the hearing upon 
reasonable notice to the parties;
    (2) Continue or recess the hearing in whole or in part for a 
reasonable period of time;
    (3) Hold conferences to identify or simplify the issues, or to 
consider other matters that may aid in the expeditious disposition of 
the proceeding;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas requiring the attendance of witnesses and the 
production of documents at depositions or at hearings;
    (6) Rule on motions and other procedural matters;
    (7) Regulate the scope and timing of discovery;
    (8) Regulate the course of the hearing and the conduct of 
representatives and parties;
    (9) Examine witnesses;
    (10) Receive, rule on, exclude, or limit evidence;
    (11) Upon motion of a party, take official notice of facts; decide 
cases, in whole or in part, by summary judgment where there is no 
disputed issue of material fact;
    (12) Conduct any conference, argument, or hearing on motions in 
person or by telephone; and
    (13) Exercise such other authority as is necessary to carry out the 
responsibilities of the ALJ under this part.
    (c) The ALJ does not have the authority to find Federal statutes or 
regulations invalid.



Sec. 1013.19  Prehearing conferences.

    (a) The ALJ may schedule prehearing conferences as appropriate.
    (b) Upon the motion of any party, the ALJ shall schedule at least 
one prehearing conference at a reasonable time in advance of the 
hearing.
    (c) The ALJ may use prehearing conferences to discuss the following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations and admissions of fact or as to the contents and 
authenticity of documents;
    (4) Whether the parties can agree to submission of the case on a 
stipulated record;
    (5) Whether a party chooses to waive appearance at an oral hearing 
and to submit only documentary evidence (subject to the objection of 
other parties) and written argument;

[[Page 604]]

    (6) Limitation of the number of witnesses);
    (7) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (8) Discovery;
    (9) The time, date, and place for the hearing; and
    (10) Such other matters as may tend to expedite the fair and just 
disposition of the proceedings.
    (d) The ALJ may issue an order containing all matters agreed upon by 
the parties or ordered by the ALJ at a prehearing conference.



Sec. 1013.20  Disclosure of documents.

    (a) Upon written request to the reviewing official, the defendant 
may review any relevant and material documents, transcripts, records, 
and other materials that relate to the allegations set out in the 
complaint and upon which the findings and conclusions of the 
investigating official under Sec. 1013.4(b) are based, unless such 
documents are subject to a privilege under Federal law. Upon payment of 
fees for duplication, the defendant may obtain copies of such documents.
    (b) Upon written request to the reviewing official, the defendant 
also may obtain a copy of all exculpatory information in the possession 
of the reviewing official or investigating official relating to the 
allegations in the complaint, even if it is contained in a document that 
would otherwise be privileged. If the document would otherwise be 
privileged, only that portion containing exculpatory information must be 
disclosed.
    (c) The notice sent to the Attorney General from the reviewing 
official as described in Sec. 1013.5 of the part is not discoverable 
under any circumstances.
    (d) The defendant may file a motion to compel disclosure of the 
documents subject to the provisions of this section. Such a motion may 
only be filed with the ALJ following the filing of an answer pursuant to 
Sec. 1013.9 of this part.



Sec. 1013.21  Discovery.

    (a) The following types of discovery are authorized:
    (1) Requests for production of documents for inspection and copying;
    (2) Requests for admissions of the authenticity of any relevant 
document or of the truth of any relevant fact;
    (3) Written interrogatories; and
    (4) Depositions.
    (b) For the purpose of this section and Secs. 1013.22 and 1013.23 of 
this part, the term ``documents'' includes information, documents, 
reports, answers, records, accounts, papers, and other data and 
documentary evidence. Nothing contained herein shall be interpreted to 
require the creation of a document.
    (c) Unless mutually agreed to by the parties, discovery is available 
only as ordered by the ALJ. The ALJ shall regulate the timing of 
discovery.
    (d) Motions for discovery. (1) A party seeking discovery may file a 
motion with the ALJ. Such a motion shall be accompanied by a copy of the 
requested discovery, or in the case of depositions, a summary of the 
scope of the proposed deposition.
    (2) Within ten days of service, a party may file an opposition to 
the motion and/or a motion for protective order as provided in 
Sec. 1013.24 of this part.
    (3) The ALJ may grant a motion for discovery only if he or she finds 
that the discovery sought--
    (i) Is necessary for the expeditious, fair, and reasonable 
consideration of the issues;
    (ii) Is not unduly costly or burdensome;
    (iii) Will not unduly delay the proceeding; and
    (iv) Does not seek privileged information.
    (4) The burden of showing that discovery should be allowed is on the 
party seeking discovery.
    (5) The ALJ may grant discovery subject to a protective order under 
Sec. 1013.24 of this part.
    (e) Depositions. (1) If a motion for deposition is granted, the ALJ 
shall issue a subpoena for the deponent, which may require the deponent 
to produce documents. The subpoena shall specify the time, date, and 
place at which the deposition will be held.
    (2) The party seeking to depose shall serve the subpoena in the 
manner prescribed in Sec. 1013.8 of this part.
    (3) The deponent may file with the ALJ a motion to quash the 
subpoena or

[[Page 605]]

a motion for a protective order within ten days of service.
    (4) The party seeking to depose shall provide for the taking of a 
verbatim transcript of the deposition, which it shall make available to 
all other parties for inspection and copying.
    (f) Each party shall bear its own costs of discovery.



Sec. 1013.22  Exchange of witness lists, statements and exhibits.

    (a) At least 15 days before the hearing or at such other time as may 
be ordered by the ALJ, the parties shall exchange witness lists, copies 
of prior statements of proposed witnesses, and copies of proposed 
hearing exhibits, including copies of any written statements that the 
party intends to offer in lieu of live testimony in accordance with 
Sec. 1013.33(b) of this part. At the time the above documents are 
exchanged, any party that intends to rely on the transcript of 
deposition testimony in lieu of live testimony at the hearing, if 
permitted by the ALJ, shall provide each party with a copy of the 
specific pages of the transcript it intends to introduce into evidence.
    (b) If a party objects, the ALJ shall not admit into evidence the 
testimony of any witness whose name does not appear on the witness list 
or any exhibit not provided to the opposing party as provided above 
unless the ALJ finds good cause for the failure or that there is no 
prejudice to the objecting party.
    (c) Unless another party objects within the time set by the ALJ, 
documents exchanged in accordance with paragraph (a) of this section 
shall be deemed to be authentic for the purpose of admissibility at the 
hearing.



Sec. 1013.23  Subpoenas for attendance at hearing.

    (a) A party wishing to procure the appearance and testimony of any 
individual at the hearing may request that the ALJ issue a subpoena.
    (b) A subpoena requiring the attendance and testimony of an 
individual may also require the individual to produce documents at the 
hearing.
    (c) A party seeking a subpoena shall file a written request therefor 
not less than 15 days before the date fixed for the hearing unless 
otherwise allowed by the ALJ for good cause shown. Such request shall 
specify any documents to be produced and shall designate the witnesses 
and describe the address and location thereof with sufficient 
particularity to permit such witnesses to be found.
    (d) The subpoena shall specify the time, date, and place at which 
the witness is to appear and any documents the witness is to produce.
    (e) The party seeking the subpoena shall serve it in the manner 
prescribed in Sec. 1013.8 of this part. A subpoena on a party or upon an 
individual under the control of a party may be served by first class 
mail.
    (f) A party or the individual to whom the subpoena is directed may 
file with the ALJ a motion to quash the subpoena within ten days after 
service or on or before the time specified in the subpoena for 
compliance if it is less than ten days after service.



Sec. 1013.24  Protective order.

    (a) A party or a prospective witness or deponent may file a motion 
for a protective order with respect to discovery sought by an opposing 
party or with respect to the hearing, seeking to limit the availability 
or disclosure of evidence.
    (b) In issuing a protective order, the ALJ may make any order which 
justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense, including one or 
more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time or place;
    (3) That the discovery may be had only through a method of discovery 
other than that requested;
    (4) That certain matters not be inquired into, or that the scope of 
discovery be limited to certain matters;
    (5) That discovery be conducted with no one present except persons 
designated by the ALJ;
    (6) That the contents of discovery or evidence be sealed;
    (7) That a deposition after being sealed be opened only by order of 
the ALJ;

[[Page 606]]

    (8) That a trade secret or other confidential research, development, 
commercial information, or facts pertaining to any criminal 
investigation, proceeding, or other administrative investigation not be 
disclosed or be disclosed only in a designated way; or
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened as directed by the 
ALJ.



Sec. 1013.25  Witness fees.

    The party requesting a subpoena shall pay the cost of the fees and 
mileage of any witness subpoenaed in the amounts that would be payable 
to a witness in a proceeding in United States District Court. A check 
for witness fees and mileage shall accompany the subpoena when served, 
except that when a subpoena is issued on behalf of the authority, a 
check for witness fees and mileage need not accompany the subpoena.



Sec. 1013.26  Form, filing and service of papers.

    (a) Form. (1) Documents filed with the ALJ shall include an original 
and two copies.
    (2) Every pleading and paper filed in the proceeding shall contain a 
caption setting forth the title of the action, the case number assigned 
by the ALJ, and a designation of the paper (e.g., motion to quash 
subpoena).
    (3) Every pleading and paper shall be signed by, and shall contain 
the address and telephone number of the party or the person on whose 
behalf the paper was filed, or his or her representative.
    (4) Papers are considered filed when they are mailed. Date of 
mailing may be established by a certificate from the party or its 
representative or by proof that the document was sent by certified or 
registered mail.
    (b) Service. A party filing a document with the ALJ shall, at the 
time of filing, serve a copy of such document on every other party. 
Service upon any party of any document other than those required to be 
served as prescribed in Sec. 1013.8 of this part shall be made by 
delivering a copy or by placing a copy of the document in the United 
States mail, postage prepaid, and addressed to the party's last known 
address. When a party is represented by a representative, service shall 
be made upon such representative in lieu of the actual party.
    (c) Proof of service. A certificate by the individual serving the 
document by personal delivery or by mail, setting forth the manner of 
service, shall be proof of service.



Sec. 1013.27  Computation of time.

    (a) In computing any period of time under this part or in an order 
issued thereunder, the time begins with the day following the act, 
event, or default, and includes the last day of the period, unless it is 
a Saturday, Sunday, or legal holiday observed by the Federal government, 
in which event it includes the next business day.
    (b) When the period of time allowed is less than seven days, 
intermediate Saturday, Sundays, and legal holidays observed by the 
Federal government shall be excluded from the computation.
    (c) Where a document has been served or issued by placing it in the 
mail, an additional five days will be added to the time permitted for 
any response.



Sec. 1013.28  Motions.

    (a) Any application to the ALJ for an order or ruling shall be by 
motion. Motions shall state the relief sought, the authority relied 
upon, and the facts alleged, and shall be filed with the ALJ and served 
on all other parties.
    (b) Except for motions made during a prehearing conference or at the 
hearing, all motions shall be in writing. The ALJ may require that oral 
motions be reduced to writing.
    (c) Within 15 days after a written motion is served, or such other 
time as may be fixed by the ALJ, any party may file a response to such 
motion.
    (d) The ALJ may not grant a written motion before the time for 
filing responses thereto has expired, except upon consent of the parties 
or following a hearing on the motion, but may overrule or deny such 
motion without awaiting a response.
    (e) The ALJ shall make a reasonable effort to dispose of all 
outstanding motions prior to the beginning of the hearing.

[[Page 607]]



Sec. 1013.29  Sanctions.

    (a) The ALJ may sanction a person, including any party or 
representative, for--
    (1) Failing to comply with an order, rule, or procedure governing 
the proceeding;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with an order, including an order 
for taking a deposition, the production of evidence within the party's 
control, or a request for admission, the ALJ may--
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) In the case of requests for admission, deem each matter of which 
an admission is requested to be admitted;
    (3) Prohibit the party failing to comply with such order from 
introducing evidence concerning, or otherwise relying upon, testimony 
relating to the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) If a party fails to prosecute or defend an action under this 
part commenced by service of a notice of hearing, the ALJ may dismiss 
the action or may issue an initial decision imposing penalties and 
assessments.
    (e) The ALJ may refuse to consider any motion, request, response, 
brief or other document which is not filed in a timely fashion.



Sec. 1013.30  The hearing and burden of proof.

    (a) The ALJ shall conduct a hearing on the record in order to 
determine whether the defendant is liable for a civil penalty or 
assessment under Sec. 1013.3 of this part, and, if so, the appropriate 
amount of any such civil penalty or assessment considering any 
aggravating or mitigating factors.
    (b) The authority shall prove defendant's liability and any 
aggravating factors by a preponderance of the evidence.
    (c) The defendant shall prove any affirmative defenses and any 
mitigating factors by a preponderance of the evidence.
    (d) The hearing shall be open to the public unless otherwise ordered 
by the ALJ for good cause shown.



Sec. 1013.31  Determining the amount of penalties and assessments.

    (a) In determining an appropriate amount of civil penalties and 
assessments, the ALJ and the authority head, upon appeal, should 
evaluate any circumstances that mitigate or aggravate the violation and 
should articulate in their opinions the reasons that support the 
penalties and assessments they impose. Because of the intangible costs 
of fraud, the expense of investigating such conduct, and the need to 
deter others who might be similarly tempted, ordinarily double damages 
and a significant civil penalty should be imposed.
    (b) Although not exhaustive, the following factors are among those 
that may influence the ALJ and the authority head in determining the 
amount of penalties and assessments to impose with respect to the 
misconduct (i.e., the false, fictitious, or fraudulent claims or 
statement) charged in the complaint:
    (1) The number of false, fictitious, or fraudulent claims or 
statements;
    (2) The time period over which such claims or statements were made;
    (3) The degree of the defendant's culpability with respect to the 
misconduct;
    (4) The amount of money or the value of the property, services, or 
benefit falsely claimed;
    (5) The value of the Government's actual loss as a result of the 
misconduct, including foreseeable consequential damages and the costs of 
investigation;
    (6) The relationship of the amount imposed as civil penalties to the 
amount of the Government's loss;
    (7) The potential or actual impact of the misconduct upon national 
defense,

[[Page 608]]

public health or safety, or public confidence in the management of 
Government programs and operations, including particularly the impact on 
the intended beneficiaries of such programs;
    (8) Whether the defendant has engaged in a pattern of the same or 
similar misconduct;
    (9) Whether the defendant attempted to conceal the misconduct;
    (10) The degree to which the defendant has involved others in the 
misconduct or in concealing it;
    (11) Where the misconduct of employees or agents is imputed to the 
defendant, the extent to which the defendant's practices fostered or 
attempted to preclude such misconduct;
    (12) Whether the defendant cooperated in or obstructed an 
investigation of the misconduct;
    (13) Whether the defendant assisted in identifying and prosecuting 
other wrongdoers;
    (14) The complexity of the program or transaction, and the degree of 
the defendant's sophistication with respect to it, including the extent 
of the defendant's prior participation in the program or in similar 
transactions;
    (15) Whether the defendant has been found, in any criminal, civil, 
or administrative proceeding to have engaged in similar misconduct or to 
have dealt dishonestly with the Government of the United States or of a 
State, directly or indirectly; and
    (16) The need to deter the defendant and others from engaging in the 
same or similar misconduct.
    (c) Nothing in this section shall be construed to limit the ALJ or 
the authority head from considering any other factors that in any given 
case may mitigate or aggravate the offense for which penalties and 
assessments are imposed.



Sec. 1013.32  Location of hearing.

    (a) The hearing may be held--
    (1) In any judicial district of the United States in which the 
defendant resides or transacts business;
    (2) In any judicial district of the United States in which the claim 
or statement in issue was made; or
    (3) In such other place as may be agreed upon by the defendant and 
the ALJ.
    (b) Each party shall have the opportunity to present argument with 
respect to the location of the hearing.
    (c) The hearing shall be held at the place and at the time ordered 
by the ALJ.



Sec. 1013.33  Witnesses.

    (a) Except as provided in paragraph (b) of this section, testimony 
at the hearing shall be given orally by witnesses under oath or 
affirmation.
    (b) At the discretion of the ALJ, testimony may be admitted in the 
form of a written statement or deposition. Any such written statement 
must be provided to all other parties along with the last known address 
of such witness, in a manner which allows sufficient time for other 
parties to subpoena such witness for cross-examination at the hearing. 
Prior written statements of witnesses proposed to testify at the hearing 
and deposition transcripts shall be exchanged as provided in 
Sec. 1013.22(a) of this part.
    (c) The ALJ shall exercise reasonable control over the mode and 
order of interrogating witnesses and presenting evidence so as to (1) 
make the interrogation and presentation effective for the ascertainment 
of the truth, (2) avoid needless consumption of time, and (3) protect 
witnesses from harassment or undue embarrassment.
    (d) The ALJ shall permit the parties to conduct such cross-
examination as may be required for a full and true disclosure of the 
facts.
    (e) At the discretion of the ALJ, a witness may be cross-examined on 
matters relevant to the proceeding without regard to the scope of his or 
her direct examination. To the extent permitted by the ALJ, cross-
examination on matters outside the scope of direct examination shall be 
conducted in the manner of direct examination and may proceed by leading 
questions only if the witness is a hostile witness, an adverse party, or 
a witness identified with an adverse party.
    (f) Upon motion of any party, the ALJ shall order witnesses excluded 
so that they cannot hear the testimony of other witnesses. This rule 
does not authorize exclusion of--
    (1) A party who is an individual;

[[Page 609]]

    (2) In the case of a party that is not an individual, an officer or 
employee of the party appearing for the entity pro se or designated by 
the party's representative; or
    (3) An individual whose presence is shown by a party to be essential 
to the presentation of its case, including an individual employed by the 
Government engaged in assisting the representative for the Government.



Sec. 1013.34  Evidence.

    (a) The ALJ shall determine the admissibility of evidence.
    (b) Except as provided in this part, the ALJ shall not be bound by 
the Federal Rules of Evidence. However, the ALJ may apply the Federal 
Rules of Evidence where appropriate, e.g., to exclude unreliable 
evidence.
    (c) The ALJ shall exclude irrelevant and immaterial evidence.
    (d) Although relevant, evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, 
confusion of the issues, or by considerations of undue delay or needless 
presentation of cumulative evidence.
    (e) Although relevant, evidence may be excluded if it is privileged 
under Federal law.
    (f) Evidence concerning offers of compromise or settlement shall be 
inadmissible to the extent provided in Rule 408 of the Federal Rules of 
Evidence.
    (g) The ALJ shall permit the parties to introduce rebuttal witnesses 
and evidence.
    (h) All documents and other evidence offered or taken for the record 
shall be open to examination by all parties, unless otherwise ordered by 
the ALJ pursuant to Sec. 1013.24 of this part.



Sec. 1013.35  The record.

    (a) The hearing will be recorded and transcribed. Transcripts may be 
obtained following the hearing from the ALJ at a cost not to exceed the 
actual cost of duplication.
    (b) The transcript of testimony, exhibits and other evidence 
admitted at the hearing, and all papers and requests filed in the 
proceeding constitute the record for the decision by the ALJ and the 
authority head.
    (c) The record may be inspected and copied (upon payment of a 
reasonable fee) by anyone, unless otherwise ordered by the ALJ pursuant 
to Sec. 1013.24 of this part.



Sec. 1013.36  Post-hearing briefs.

    The ALJ may require the parties to file post-hearing briefs. In any 
event, any party may file a post-hearing brief. The ALJ shall fix the 
time for filing such briefs, not to exceed 60 days from the date the 
parties receive the transcript of the hearing or, if applicable, the 
stipulated record. Such briefs may be accompanied by proposed findings 
of fact and conclusions of law. The ALJ may permit the parties to file 
reply briefs.



Sec. 1013.37  Initial decision.

    (a) The ALJ shall issue an initial decision based only on the 
record, which shall contain findings of fact, conclusions of law, and 
the amount of any penalties and assessments imposed.
    (b) The findings of fact shall include a finding on each of the 
following issues:
    (1) Whether the claims or statements identified in the complaint, or 
any portions thereof, violate Sec. 1013.3 of this part;
    (2) If the person is liable for penalties or assessments, the 
appropriate amount of any such penalties or assessments considering any 
mitigating or aggravating factors that he or she finds in the case, such 
as those described in Sec. 1013.31 of this part.
    (c) The ALJ shall promptly serve the initial decision on all parties 
within 90 days after the time for submission of post-hearing briefs and 
reply briefs (if permitted) has expired. The ALJ shall at the same time 
serve all parties with a statement describing the right of any defendant 
determined to be liable for a civil penalty or assessment to file a 
motion for reconsideration with the ALJ or a notice of appeal with the 
authority head. If the ALJ fails to meet the deadline contained in this 
paragraph, he or she shall notify the parties of the reason for the 
delay and shall set a new deadline.

[[Page 610]]

    (d) Unless the initial decision of the ALJ is timely appealed to the 
authority head, or a motion for reconsideration of the initial decision 
is timely filed, the initial decision shall constitute the final 
decision of the authority head and shall be final and binding on the 
parties 30 days after it is issued by the ALJ.



Sec. 1013.38  Reconsideration of initial decision.

    (a) Except as provided in paragraph (d) of this section, any party 
may file a motion for reconsideration of the initial decision within 20 
days of receipt of the initial decision. If service was made by mail, 
receipt will be presumed to be five days from the date of mailing in the 
absence of contrary proof.
    (b) Every such motion must set forth the matters claimed to have 
been erroneously decided and the nature of the alleged errors. Such 
motion shall be accompanied by a supporting brief.
    (c) Responses to such motions shall be allowed only upon request of 
the ALJ.
    (d) No party may file a motion for reconsideration of an initial 
decision that has been revised in response to a previous motion for 
reconsideration.
    (e) The ALJ may dispose of a motion for reconsideration by denying 
it or by issuing a revised initial decision.
    (f) If the ALJ denies a motion for reconsideration, the initial 
decision shall constitute the final decision of the authority head and 
shall be final and binding on the parties 30 days after the ALJ denies 
the motion, unless the initial decision is timely appealed to the 
authority head in accordance with Sec. 1013.39.
    (g) If the ALJ issues a revised initial decision, that decision 
shall constitute the final decision of the authority head and shall be 
final and binding on the parties 30 days after it is issued, unless it 
is timely appealed to the authority head in accordance with Sec. 1013.39 
of this part.



Sec. 1013.39  Appeal to authority head.

    (a) Any defendant who has filed a timely answer and who is 
determined in an initial decision to be liable for a civil penalty or 
assessment may appeal such decision to the authority head by filing a 
notice of appeal with the authority head in accordance with this 
section.
    (b)(1) A notice of appeal may be filed at any time within 30 days 
after the ALJ issues an initial decision. However, if any party files a 
motion for reconsideration under Sec. 1013.38 of this part, 
consideration of the appeal shall be stayed automatically pending 
resolution of the motion for reconsideration.
    (2) If a motion for reconsideration is timely filed, a notice of 
appeal may be filed within 30 days after the ALJ denies the motion or 
issues a revised initial decision, whichever applies.
    (3) The authority head may extend the initial 30-day period for an 
additional 30 days if the defendant files with the authority head a 
request for an extension within the initial 30-day period and shows good 
cause.
    (c) If the defendant files a timely notice of appeal with the 
authority head and the time for filing motions for reconsideration under 
Sec. 1013.38 of this part has expired, the ALJ shall forward the record 
of the proceeding to the authority head.
    (d) A notice of appeal shall be accompanied by a written brief 
specifying exceptions to the initial decision and reasons supporting the 
exceptions.
    (e) The representative for the Government may file a brief in 
opposition to exceptions within 30 days of receiving the notice of 
appeal and accompanying brief.
    (f) There is no right to appear personally before the authority 
head.
    (g) There is no right to appeal any interlocutory ruling by the ALJ.
    (h) In reviewing the initial decision, the authority head shall not 
consider any objection that was not raised before the ALJ unless a 
demonstration is made of extraordinary circumstances causing the failure 
to raise the objection.
    (i) If any party demonstrates to the satisfaction of the authority 
head that additional evidence not presented at such hearing is material 
and that there were reasonable grounds for the failure to present such 
evidence at such hearing, the authority head shall remand the matter to 
the ALJ for consideration of such additional evidence.

[[Page 611]]

    (j) The authority head may affirm, reduce, reverse, compromise, 
remand, or settle any penalty or assessment determined by the ALJ in any 
initial decision.
    (k) The authority head shall promptly serve each party to the appeal 
with a copy of the decision of the authority head and a statement 
describing the right of any person determined to be liable for a penalty 
or an assessment to seek judicial review.
    (l) Unless a petition for review is filed as provided in 31 U.S.C. 
3805 after a defendant has exhausted all administrative remedies under 
this part and within 60 days after the date on which the authority head 
serves the defendant with a copy of the authority head's decision, a 
determination that a defendant is liable under Sec. 1013.3 of this part 
is final and is not subject to judicial review.



Sec. 1013.40  Stays ordered by the Department of Justice.

    If at any time the Attorney General or an Assistant Attorney General 
designated by the Attorney General transmits to the authority head a 
written finding that continuation of the administrative process 
described in this part with respect to a claim or statement may 
adversely affect any pending or potential criminal or civil action 
related to such claim or statement, the authority head shall stay the 
process immediately. The authority head may order the process resumed 
only upon receipt of the written authorization of the Attorney General.



Sec. 1013.41  Stay pending appeal.

    (a) An initial decision is stayed automatically pending disposition 
of a motion for reconsideration or of an appeal to the authority head.
    (b) No administrative stay is available following a final decision 
of the authority head.



Sec. 1013.42  Judicial review.

    Section 3805 of title 31, United States Code, authorizes judicial 
review by an appropriate United States District Court of a final 
decision of the authority head imposing penalties or assessments under 
this part and specifies the procedures for such review.



Sec. 1013.43  Collection of civil penalties and assessments.

    Sections 3806 and 3808(b) of title 31, United States Code, 
authorizes actions for collection of civil penalties and assessments 
imposed under this part and specify the procedures for such actions.



Sec. 1013.44  Right to administrative offset.

    The amount of any penalty or assessment which has become final, or 
for which a judgment has been entered under Sec. 1013.42 or Sec. 1013.43 
of this part, or any amount agreed upon in a compromise or settlement 
under Sec. 1013.46 of this part, may be collected by administrative 
offset under 31 U.S.C. 3716, except that an administrative offset may 
not be made under this subsection against a refund of an overpayment of 
Federal taxes, then or later owing by the United States to the 
defendant.



Sec. 1013.45  Deposit in Treasury of United States.

    All amounts collected pursuant to this part shall be deposited as 
miscellaneous receipts in the Treasury of the United States, except as 
provided in 31 U.S.C. 3806(g).



Sec. 1013.46  Compromise or settlement.

    (a) Parties may make offers of compromise or settlement at any time.
    (b) The reviewing official has the exclusive authority to compromise 
or settle a case under this part at any time after the date on which the 
reviewing official is permitted to issue a complaint and before the date 
on which the ALJ issues an initial decision.
    (c) The authority head has exclusive authority to compromise or 
settle a case under this part at any time after the date on which the 
ALJ issues an initial decision, except during the pendency of any review 
under Sec. 1013.42 of this part or during the pendency of any action to 
collect penalties and assessments under Sec. 1013.43 of this part.
    (d) The Attorney General has exclusive authority to compromise or 
settle a case under this part during the pendency of any review under 
Sec. 1013.42 of this part or of any action to recover penalties and 
assessments under 31 U.S.C. 3806.

[[Page 612]]

    (e) The investigating official may recommend settlement terms to the 
reviewing official, the authority head, or the Attorney General, as 
appropriate. The reviewing official may recommend settlement terms to 
the authority head, or the Attorney General, as appropriate.
    (f) Any compromise or settlement must be in writing.



Sec. 1013.47  Limitations.

    (a) The notice of hearing with respect to a claim or statement must 
be served in the manner specified in Sec. 1013.8 of this part within 6 
years after the date on which such claim or statement is made.
    (b) If the defendant fails to file a timely answer, service of 
notice under Sec. 1013.10(b) of this part shall be deemed a notice of a 
hearing for purposes of this section.
    (c) The statute of limitations may be extended by agreement of the 
parties.



PART 1014--ADMINISTRATIVE CLAIMS UNDER FEDERAL TORT CLAIMS ACT--Table of Contents




Sec.
1014.1  Scope of regulations.
1014.2  Administrative claim; when presented; appropriate office.
1014.3  Administrative claim; who may file.
1014.4  Administrative claims; evidence and information to be submitted.
1014.5  Authority to adjust, determine, compromise, and settle.
1014.6  Limitation on authority.
1014.7  Referral to Department of Justice.
1014.8  Investigation and examination.
1014.9  Final denial of claim.
1014.10  Action on approved claims.
1014.11  Penalties.

    Authority: Sec. 1(a), 80 Stat. 306, (28 U.S.C. 2672); 28 CFR part 
14; sec. 644, Pub. L. 95-91, 91 Stat. 599, (42 U.S.C. 7254).

    Source: 45 FR 7768, Feb. 4, 1980, unless otherwise noted.



Sec. 1014.1  Scope of regulations.

    (a) These regulations shall apply only to claims asserted under the 
Federal Tort Claims Act, as amended, accruing on or after January 18, 
1967, for money damages against the United States for injury to, or loss 
of, property or personal injury or death caused by the negligent or 
wrongful act or omission of any employee of the Department of Energy 
(DOE) while acting within the scope of office or employment.
    (b) The terms DOE, Department, and Department of Energy as used in 
this part mean the agency established by the Department of Energy 
Organization Act (Pub. L. 95-91), 42 U.S.C. 7101, et seq., including the 
Federal Energy Regulatory Commission, but do not include any contractor 
of the Department.
    (c) The regulations in this part supplement the Attorney General's 
regulations in part 14 of chapter 1 of title 28 CFR as amended. Those 
regulations, including subsequent amendments thereto, and the 
regulations in this part apply to the consideration by DOE of 
administrative claims under the Federal Tort Claims Act.



Sec. 1014.2  Administrative claim; when presented; appropriate office.

    (a) For purposes of these regulations, a claim shall be deemed to 
have been presented when DOE receives, at a place designated in 
paragraph (b) of this section, an executed Standard Form 95 or other 
written notification of an incident, accompanied by a claim for money 
damages in a definite amount for injury to or loss of property, personal 
injury, or death, that is alleged to have occurred by reason of the 
incident. A claim that should have been presented to DOE but which was 
mistakenly addressed to or filed with another Federal agency, shall be 
deemed to be presented to DOE on the date the claim is received by DOE. 
A claim mistakenly addressed to or filed with DOE shall be transferred 
to the appropriate Federal agency, if ascertainable, or returned to the 
claimant.
    (b) Claims should be mailed in envelopes marked ``Attention Office 
of General Counsel.'' Claims shall be mailed or delivered to the DOE 
installation or office employing the person or persons whose acts or 
omissions are alleged to have caused the loss, damage, or injury, unless 
the claimant does not know that address. If the proper address is 
unknown, claims may be mailed or delivered to: The General Counsel, U.S. 
Department of Energy, Washington, DC 20585. Forms may be obtained from 
the same places.

[[Page 613]]

    (c) A claim may be amended by the claimant at any time before final 
DOE action or before the exercise of the claimant's option under 28 
U.S.C. 2675(a). Amendments shall be submitted in writing and signed by 
the claimant or a duly authorized agent or legal representative. If an 
amendment to a pending claim is filed in time, the DOE shall have 6 
months to decide the claim as amended. The claimant's option under 28 
U.S.C. 2675(a) shall not accrue until 6 months after the filing of an 
amendment.



Sec. 1014.3  Administrative claim; who may file.

    (a) A claim for injury to or loss of property may be presented by 
the owner of the property interest that is the subject of the claim or 
the owner's duly authorized agent or legal representative.
    (b) A claim for personal injury may be presented by the injured 
person or the claimant's duly authorized agent or legal representative.
    (c) A claim based on death may be presented by the executor or 
administrator of the decedent's estate or by any other person legally 
entitled to assert such a claim under the applicable State law.
    (d) A claim for a loss that was wholly compensated by an insurer 
with the rights of a subrogee may be presented by the insurer. A claim 
for loss that was partially compensated by an insurer with the rights of 
a subrogee may be presented by the insurer or the insured individually, 
as their respective interests appear, or jointly. Whenever an insurer 
presents a claim asserting the rights of a subrogee, it shall present 
with its claim appropriate evidence that it has the rights of a 
subrogee.
    (e) A claim presented by an agent or legal representative shall be 
presented in the name of the claimant, be signed by the agent or legal 
representative, show the title or legal capacity of the person signing, 
and be accompanied by evidence of authority to present a claim on behalf 
of the claimant.



Sec. 1014.4  Administrative claims; evidence and information to be submitted.

    (a) Death. In support of a claim based on death, the claimant may be 
required to submit the following evidence or information:
    (1) An authenticated death certificate or other competent evidence 
showing the cause of death, the date of death, and the age of the 
decedent.
    (2) Decedent's employment or occupation at time of death, including 
monthly or yearly salary or earnings (if any), and the duration of last 
employment or occupation.
    (3) Full names, addresses, birth dates, kinship, and marital status 
of the decedent's survivors, including identification of those survivors 
who were dependent for support upon the decedent at the time of death.
    (4) The degree of support afforded by the decedent to each survivor 
dependent upon decedent for support at the time of death.
    (5) Decedent's general physical and mental condition before death.
    (6) Itemized bills for medical and burial expenses incurred by 
reason of the incident causing death, or itemized receipts of payment 
for such expenses.
    (7) If damages for pain and suffering prior to death are claimed, a 
physican's detailed statement specifying the injuries suffered, the 
duration of pain and suffering, any drugs administered for pain, and the 
decedent's physical condition between injury and death.
    (8) Any other evidence or information that may have a bearing on 
either the responsibility of the United States for the death or the 
amount of damages claimed.
    (b) Personal injury. In support of a claim for personal injury, 
including pain and suffering, the claimant may be required to submit the 
following evidence or information:
    (1) A written report by the attending physician or dentist setting 
forth the nature and extent of the injury, the nature and extent of 
treatment, any degree of temporary or permanent disability, the 
prognosis, the period of hospitalization, and any diminished earning 
capacity. In addition, the claimant may be required to submit to

[[Page 614]]

a physical or mental examination by a physician employed by the DOE or 
another Federal agency. A copy of the physician's report shall be made 
available to the claimant upon the claimant's written request, provided 
that the claimant has, upon request, made or agrees to make available to 
the DOE any physician's reports previously or thereafter made of the 
physical or mental condition which is the subject matter of the claim.
    (2) Itemized bills for medical, dental, and hospital expenses 
incurred, or itemized receipts of payment for such expenses.
    (3) If the prognosis reveals that future treatment will be needed, a 
statement of the expected expenses of such treatment.
    (4) If a claim is made for loss of time from employment, a written 
statement from the claimant's employer showing actual time lost from 
employment, whether the claimant is a full-time or part-time employee, 
and the wages or salary actually lost.
    (5) If a claim is made for loss of income and the claimant is self-
employed, documentary evidence showing the amounts of earnings actually 
lost.
    (6) Any other evidence or information that may bear on either the 
responsibility of the United States for the personal injury or the 
damages claimed.
    (c) Property damage. In support of a claim for injury to or loss of 
property, real or personal, the claimant may be required to submit the 
following evidence or information:
    (1) Proof of ownership of the property interest that is the subject 
of the claim.
    (2) A detailed statement of the amount claimed with respect to each 
item of property.
    (3) An itemized receipt of payment for necessary repairs or itemized 
written estimates of the cost of such repairs.
    (4) A statement listing date of purchase, purchase price, and 
salvage value, where repair is not economical.
    (5) Any other evidence or information that may bear on either the 
responsibility of the United States for the injury to or loss of 
property or the damages claimed.



Sec. 1014.5  Authority to adjust, determine, compromise, and settle.

    The General Counsel, the Deputy General Counsel, the Deputy General 
Counsel for Legal Services, the Assistant General Counsel for Legal 
Counsel, and any employees of the Department designated by the General 
Counsel to receive and act on tort claims at Headquarters and field 
locations are authorized to act on claims.



Sec. 1014.6  Limitation on authority.

    (a) An award, compromise, or settlement of a claim in excess of 
$25,000 shall be made only with the prior written approval of the 
Attorney General or his or her designee. For the purposes of this 
paragraph, a principal claim and any derivative or subrogated claim 
shall be treated as a single claim.
    (b) An administrative claim may be adjusted, determined, 
compromised, or settled only after the Department of Justice has been 
consulted if, in the opinion of the General Counsel or designee:
    (1) A new precedent may be involved;
    (2) A question of policy may be involved;
    (3) The United States may be entitled to indemnity or contribution 
from a third party and the DOE is unable to adjust the third party 
claim; or
    (4) The compromise of a particular claim, as a practical matter, may 
control the disposition of a related claim in which the amount to be 
paid may exceed $25,000.
    (c) An administrative claim may be adjusted, determined, 
compromised, or settled only after consultation with the Department of 
Justice when the DOE is aware that the United States or an employee, 
agent, or cost-type contractor of the United States is involved in 
litagation based on a claim arising out of the same incident or 
transaction.
    (d) The authority of DOE subordinate claims officials to make 
awards, compromises, and settlements of over $10,000 is subject to the 
approval of the General Counsel, the Deputy General Counsel, or the 
Deputy General Counsel for Legal Services.

[[Page 615]]



Sec. 1014.7  Referral to Department of Justice.

    (a) When Department of Justice approval or consultation is required 
under Sec. 1014.6, the referral or request shall be transmitted to the 
Department of Justice by the General Counsel or designee.
    (b) When a designee of the General Counsel is processing a claim 
requiring consultation with, or approval of, either the DOE General 
Counsel or the Department of Justice, the referral or request shall be 
sent to the General Counsel in writing and shall contain:
    (1) A short and concise statement of the facts and of the reasons 
for the referral or request,
    (2) Copies of relevant portions of the claim file, and
    (3) A statement of recommendations or views.



Sec. 1014.8  Investigation and examination.

    The DOE may investigate, or may request any other Federal agency to 
investigate, a claim and may conduct, or request another Federal agency 
to conduct, a physical examination of a claimant and provide a report of 
the physical examination.



Sec. 1014.9  Final denial of claim.

    (a) Final denial of an administrative claim shall be in writing and 
sent to the claimant, or the claimant's attorney or legal representative 
by certified or registered mail. The notification of final denial may 
include a statement of the reasons for the denial and shall include a 
statement that, if the claimant is dissatisfied with the Department's 
action, the claimant may file suit in an appropriate U.S. District Court 
not more than 6 months after the notification is mailed.
    (b) Before the commencement of suit and before the 6-month period 
provided in 28 U.S.C. 2401(b) expires, a claimant, or the claimant's 
duly authorized agent, or legal representative, may file a written 
request with the DOE General Counsel for reconsideration of a final 
denial of a claim. Upon the timely filing of a request for 
reconsideration the DOE shall have 6 months from the date of filing to 
decide the claim, and the claimant's option under 28 U.S.C. 2675(a) 
shall not accrue until 6 months after the request for reconsideration is 
filed. Final DOE action on a request for reconsideration shall be made 
in accordance with the provisions of paragraph (a) of this section.



Sec. 1014.10  Action on approved claims.

    (a) Payment of any approved claim shall not be made unless the 
claimant executes (1) a Standard Form 1145, (2) a claims settlement 
agreement, or (3) a Standard Form 95, as appropriate consistent with 
applicable rules of the Department of Justice, Department of the 
Treasury, and the General Accounting Office. When a claimant is 
represented by an attorney, the voucher for payment shall designate both 
the claimant and the attorney as payees, and the check shall be 
delivered to the attorney, whose address shall appear on the voucher.
    (b) If the claimant or the claimant's agent or legal representative 
accepts any award, compromise, or settlement made pursuant to the 
provisions of section 2672 or 2677 of title 28, United States Code, that 
acceptance shall be final and conclusive on the claimant, the claimant's 
agent or legal representative, and any other person on whose behalf or 
for whose benefit the claim has been presented. The acceptance shall 
constitute a complete release of any claim against the United States and 
against any employee of the Government whose act or omission gave rise 
to the claim, by reason of the same subject matter.



Sec. 1014.11  Penalties.

    A person who files a false claim or makes a false or fraudulent 
statement in a claim against the United States may be liable to a fine 
of not more than $10,000 or to imprisonment for not more than 5 years, 
or both (18 U.S.C. 1001), and, in addtion, to a forfeiture of $2,000 and 
a penalty of double the loss or damage sustained by the United States 
(31 U.S.C 231).



PART 1015--COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents




Sec.
1015.1  Purpose.
1015.2  Applicability.

[[Page 616]]

1015.3  Demand for payment.
1015.4  Interest, administrative charges, and penalty charges.
1015.5  Responsibility for collection.
1015.6  Collection by administrative offset.
1015.7  Settlement of claims.
1015.8  Referral for litigation.
1015.9  Disclosure to consumer reporting agencies and referral to 
          collection agencies.
1015.10  Credit report.

    Authority: 31 U.S.C. 3701-3719; Pub. L. 97-365, 96 Stat. 1754.

    Source: 53 FR 24624, June 29, 1988, unless otherwise noted.



Sec. 1015.1  Purpose.

    This part establishes procedures for the Department of Energy (DOE) 
to collect, compromise, or terminate collection action on claims of the 
United States for money or property arising from activities under DOE 
jurisdiction. It specifies the agency procedures and the rights of the 
debtor applicable to claims for the payment of debts owed to the United 
States. It incorporates, as appropriate, the Federal Claims Collection 
Standards (4 CFR parts 101-105). It sets forth procedures by which DOE:
    (a) Will collect claims owed to the United States;
    (b) Will determine and collect interest and other charges on those 
claims;
    (c) Will compromise claims; and
    (d) Will refer unpaid claims for litigation.
[53 FR 24624, June 29, 1988; 53 FR 27798, July 22, 1988]



Sec. 1015.2  Applicability.

    (a) This part applies to all claims due the United States under the 
Federal Claims Collection Act, as amended by the Debt Collection Act (31 
U.S.C. 3701-3719), arising from activities under the jurisdiction of DOE 
unless such claims are otherwise subject to applicable laws or 
regulations. For purposes of this part, claims include, but are not 
limited to, amounts due the United States from fees, loans, loan 
guarantees, overpayments, fines, civil penalties, damages, interest, 
sale of products and services, and other sources. This part provides the 
procedures for collection of claims by administrative offset under 31 
U.S.C. 3716. DOE 2200.2, Collection From Employees for Indebtedness to 
the United States, provides the procedures for collection of claims by 
Federal salary offset under 5 U.S.C. 5514. The failure of DOE to include 
in this part any provision of the Federal Claims Collection Standards 
does not prevent DOE from applying the provision. The failure of DOE to 
comply with any provision of this part or of the Federal Claims 
Collection Standards shall not be available as a defense to any debtor 
in terms of affecting the merits of the underlying indebtedness.
    (b) All claims due from Federal employees will be collected in 
accordance with DOE 2200.2, Collection from Employees for Indebtedness 
to the United States, or successor internal directives. DOE 2200.2 
provides for hearings as required under 5 U.S.C. 5514 and 4 CFR part 
102.
    (c) Claims arising from the audit of transportation accounts 
pursuant to 31 U.S.C. 3726 shall be determined, collected, compromised, 
terminated, or settled in accordance with regulations published under 
the authority of 31 U.S.C. 3726 (see 41 CFR parts 101-141, administered 
by the Director, Office of Transportation Audits, General Services 
Administration) and are otherwise excepted from these regulations.
    (d) (1) Claims arising out of acquisition contracts, subcontracts, 
and purchase orders which are subject to the Federal Acquisition 
Regulation Systems, including the Federal Acquisition Regulation, 48 CFR 
subpart 32.6, and the Department of Energy Acquisition Regulations, 48 
CFR subpart 932.6, shall be determined or settled in accordance with 
those regulations.
    (2) Claims arising out of financial assistance instruments (e.g., 
grants, subgrants, contracts under grants, cooperative agreements, and 
contracts under cooperative agreements) and loans and loan guarantees 
shall be determined or settled in accordance with internal DOE 
directives. Relevant provisions currently are set forth primarily at 10 
CFR 600.26 and 10 CFR 600.112(f)
[53 FR 24624, June 29, 1988; 53 FR 27798, July 22, 1988]



Sec. 1015.3  Demand for payment.

    (a) A total of three progressively stronger written demands at not 
more than approximately 30-day intervals will normally be made unless a 
response or other information indicates

[[Page 617]]

that a further demand would be futile or unnecessary. When necessary to 
protect the Government's interest, written demand may be preceded by 
other appropriate actions under the Federal Claims Collection Standards, 
including immediate offset, as provided in paragraph (d)(2) of this 
section, and/or referral for litigation.
    (b) The initial written demand for payment should inform the debtor 
of the following:
    (1) The basis for the claim;
    (2) The amount of the claim;
    (3) Any right to a review of the claim within DOE;
    (4) The date by which DOE expects full payment and after which the 
account is considered delinquent (this is the due date and is normally 
not more than 30 days from the date the written initial demand was 
either mailed, hand-delivered, or otherwise transmitted);
    (5) The provision for interest, penalties, and administrative 
charges in accordance with 31 U.S.C. 3717, if payment is not received by 
the due date (see Sec. 1015.4 for details regarding interest, 
administrative charges, and penalty charges); and
    (6) The DOE's intent to utilize any applicable collection actions 
made available by the Debt Collection Act of 1982 and the Federal Claims 
Collection Standards. When determined necessary to protect the 
Government's interest, DOE may initiate any of the actions available 
under the referenced Act and/or Standards. These actions may include, 
but are not limited to, immediate referral for litigation, 
administrative offset (as provided in paragraph (d)(2) of this section), 
reports to credit bureaus, and referrals to collection agencies.
    (c) If the debt is not paid by the date specified in the initial 
written demand, two progressively stronger demands shall be sent to the 
debtor unless a response or other information indicates that additional 
written demands would either be futile or unnecessary. These written 
demands will be timed so as to provide an adequate period of time within 
which the debtor could be expected to respond. While shorter periods of 
time are acceptable, intervals of approximately 30 days should be 
sufficient. Depending on the circumstances of the particular case, the 
demand letters may state:
    (1) The amount of any late payment charge (interest, penalties, and 
administrative charges) added to the debt;
    (2) That the delinquent debt may be reported to a credit reporting 
agency;
    (3) That the debt may be referred to a private collection agency for 
collection;
    (4) That the debt may be collected through administrative offset in 
accordance with the Federal Claims Collection Standards (4 CFR part 
102); and
    (5) That the debt may be referred for litigation.
    (d)(1) Before collecting a debt by administrative offset, the debtor 
shall be advised of the following information either in the initial 
written demand and/or subsequent written demands, or by separate notice 
of DOE's intent to collect the debt by administrative offset:
    (i) Nature and amount of debt;
    (ii) Payment due date;
    (iii) The intent of DOE to collect by administrative offset (in 
accordance with the Federal Claims Collection Standards (4 CFR part 
102)), including requesting other Federal agencies to help in the offset 
whenever possible, if the debtor has not made voluntary payment, has not 
requested a hearing or review of the claim within DOE as set out in 
paragraph (d)(1)(v) of this section, or has not made arrangements for 
payment as set out in paragraph (d)(1)(vi) of this section by the 
payment due date;
    (iv) The right of the debtor to inspect and copy the DOE records 
related to the claim. Any costs associated therewith shall be borne by 
the debtor. The debtor shall give reasonable notice in advance to DOE of 
the date upon which it intends to inspect and copy the records involved;
    (v) The right of the debtor to a hearing or review of the claim. DOE 
shall provide the debtor with a reasonable opportunity for an oral 
hearing when: (A) An applicable statute authorizes or requires DOE to 
consider waiver of the indebtedness involved, the debtor requests waiver 
of the indebtedness, and the waiver determination turns on an issue of 
credibility or veracity; or (B) the debtor requests reconsideration of

[[Page 618]]

the debt and DOE determines that the question of indebtedness cannot be 
resolved by review of the documentary evidence, for example, when the 
validity of the debt turns on an issue of credibility or veracity. 
Unless otherwise required by law, an oral hearing under this section is 
not required to be a formal evidentiary-type hearing, although DOE will 
document all significant matters discussed at the hearing. This section 
does not require an oral hearing with respect to debt collection systems 
in which determinations of indebtedness or waiver rarely involve issues 
of credibility or veracity and DOE has determined that review of the 
written record is ordinarily an adequate means to correct prior 
mistakes. In administering such a system, DOE is not required to sift 
through all of the requests received in order to accord oral hearings in 
those few cases which may involve issues of credibility or veracity. In 
those cases where an oral hearing is not required by this section, DOE 
will accord the debtor a ``paper'' hearing, that is, DOE will make its 
determination on the request for waiver or reconsideration based upon a 
review of the written record. If the claim is disputed in full or in 
part, the debtor's written response to the demand must include a request 
for review of the claim within DOE. If the debtor disputes the claim, 
the debtor shall explain why the debt is incorrect. The explanation 
should be supported by affidavits, canceled checks, or other relevant 
information. The written response must reach DOE by the payment due 
date. A written response received after the payment due date may be 
accepted if the debtor can show that the delay was due to circumstances 
beyond the debtor's control or failure to receive notice of the time 
limit. The debtor's written response shall state the basis for the 
dispute. If only part of the claim is disputed, the undisputed portion 
should be paid by the date stated in the initial demand. DOE shall 
notify the debtor, within 30 days whenever feasible, whether DOE's 
determination of the debt has been sustained, amended, or canceled. If 
DOE either sustains or amends its determination, it shall notify the 
debtor of its intent to collect by administrative offset unless payment 
is received within 15 days of the mailing of the notification of its 
decision; and
    (vi) The right of the debtor to offer to make a written agreement to 
repay the amount of the claim. The acceptance of such an agreement is 
discretionary with DOE. If the debtor requests a repayment arrangement 
because a payment of the amount due would create a financial hardship, 
DOE will assess the debtor's financial condition based on financial 
statements submitted by the debtor. Dependent upon the evaluation of the 
financial condition of the debtor, DOE and the debtor may agree to a 
written installment repayment schedule. The debtor should execute a 
confess-judgment note which specifies all of the terms of the 
arrangement. The size and frequency of the installment payments should 
bear a reasonable relation to the size of the debt and the debtor's 
ability to pay. Interest, administrative charges, and penalty charges 
shall be provided for in the note. The debtor shall be provided with a 
written explanation of the consequences of signing a confess-judgment 
note. The debtor shall sign a statement acknowledging receipt of the 
written explanation which shall provide that the statement was read and 
understood before execution of the note and that the note is being 
signed knowingly and voluntarily. Some form of objective evidence of 
these facts will be maintained in DOE's file on the debtor.
    (2) In cases in which the procedural requirements specified in this 
paragraph have previously been provided to the debtor in connection with 
the same debt under some other statutory or regulatory authority, such 
as pursuant to a notice of audit disallowance, DOE is not required to 
duplicate those requirements before taking administrative offset. 
Furthermore, DOE may effect administrative offset against a payment to 
be made to a debtor prior to completion of the required procedures if 
failure to take the offset would substantially prejudice the 
Government's ability to collect the debt and the time before the payment 
is to be made does not reasonably permit the completion of those 
procedures. Such prior offset will be promptly followed

[[Page 619]]

by completion of those procedures. Amounts recovered by administrative 
offset found not to be owed to DOE shall be promptly refunded.
    (e) At any time during the collection cycle, DOE may take any of the 
actions authorized under this section or under the Federal Claims 
Collection Standards. These actions include, but are not limited to, 
reports to credit bureaus, referrals to collection agencies, termination 
of contract, debarment, and administrative offset, as authorized in 31 
U.S.C. 3701-3719.
[53 FR 24624, June 29, 1988; 53 FR 27798, July 22, 1988]



Sec. 1015.4  Interest, administrative charges, and penalty charges.

    (a) DOE shall assess interest on unpaid claims at the rate of the 
current value of funds to the Treasury as prescribed by the Secretary of 
the Treasury on the date the computation of interest begins unless a 
higher rate of interest is necessary to protect the interests of the 
Government. DOE shall assess administrative charges to cover the costs 
of processing and handling overdue claims. Administrative charges will 
be assessed concurrent with the interest assessment and will be based on 
actual costs incurred or an average of additional costs incurred in 
processing and handling claims in similar stages of delinquency. DOE 
shall assess penalty charges of six percent a year on any part of a debt 
more than 90 days past due. Such assessment will be retroactive to the 
first day the debt became delinquent. The imposition of interest, 
administrative charges, and penalty charges is made in accordance with 
31 U.S.C. 3717.
    (b) Interest will be computed from the date the initial demand is 
mailed, hand-delivered, or otherwise transmitted to the debtor. If the 
claim or any portion thereof is paid within 30 days after the date on 
which interest began to accrue, the associated interest shall be waived. 
This period for waiver of interest may be extended in individual cases 
if there is good cause to do so and it is in the public interest. 
Interest will only be computed on the principal of the claim and the 
interest rate will remain fixed for the duration of the indebtedness, 
except where a debtor has defaulted on a repayment agreement and seeks 
to enter into a new agreement. A new rate which reflects at a minimum 
the current value of funds to the Treasury at the time the new agreement 
is executed may be set, if applicable, and interest on interest and 
related charges may be charged where the debtor has defaulted on a 
previous repayment agreement. Charges which accrued but were not 
collected under the defaulted agreement shall be added to the principal 
to be paid under the new repayment schedule.
    (c) DOE may waive interest, administrative charges, or penalty 
charges if it finds that one or more of the following conditions exist:
    (1) The debtor is unable to pay any significant sum toward the claim 
within a reasonable period of time;
    (2) Collection of interest, administrative charges, or penalty 
charges will jeopardize collection of the principal of the claim; or
    (3) It is otherwise in the best interests of the United States, 
including the situation in which an offset or installment payment 
agreement is in effect.
    (d) Exemptions. (1) The provisions of 31 U.S.C. 3717 do not apply:
    (i) To debts owed by any State or local government;
    (ii) To debts arising under contracts which were executed prior to, 
and were in effect on (i.e., were not completed as of) October 25, 1982;
    (iii) To debts where an applicable statute, regulation required by 
statute, loan agreement, or contract either prohibits such charges or 
explicitly fixes the charges that apply to the debts involved; or
    (iv) Debts arising under the Social Security Act, the Internal 
Revenue Code of 1954, or the tariff laws of the United States.
    (2) DOE may, however, assess interest and related charges on debts 
which are not subject to 31 U.S.C. 3717 to the extent authorized under 
the common law or other applicable statutory authority.
[53 FR 24624, June 29, 1988; 53 FR 27798, July 22, 1988]

[[Page 620]]



Sec. 1015.5  Responsibility for collection.

    (a) Heads of DOE Headquarters Elements and Field Elements or their 
designees must immediately notify the appropriate finance office of 
claims arising from their operations. A claim will be recorded and 
controlled by the responsible finance office upon receipt of 
documentation from a competent authority establishing the amount due.
    (b) The collection of claims under the control of the finance 
offices will be aggressively pursued in accordance with the provisions 
of part 102 of the Federal Claims Collection Standards (4 CFR part 102). 
Whenever feasible, debts owed to the United States, together with 
interest, administrative charges, and penalty charges, should be 
collected in full in one lump sum. If the debtor requests installment 
payments, the finance offices will be responsible for determining the 
financial hardship of debtors and, when appropriate, shall arrange 
installment payment schedules. Claims which cannot be collected directly 
or by administrative offset shall be written off as administratively 
uncollectible in accordance with authority delegated to the Heads of DOE 
Field Elements and the Controller.
    (c) The Controller or designee, in consultation with the General 
Counsel or other designated Counsel at Headquarters, or Heads of DOE 
Field Elements or designees, in consultation with the Chief Counsels or 
other designated Counsels in field locations, may compromise or suspend 
or terminate collection action on referred claims that do not exceed 
$20,000, exclusive of interest, penalties, and administrative charges, 
in accordance with the Federal Claims Collection Act and the Federal 
Claims Collection Standards parts 103 and 104 (4 CFR parts 103 and 104).
    (d) Recommendations to compromise or suspend or terminate collection 
action on claims that exceed $20,000, exclusive of interest, penalties, 
and administrative charges, will be referred to the Department of 
Justice consistent with paragraph (c) of this section and in accordance 
with the Federal Claims Collection Act and the Federal Claims Collection 
Standards. Referrals to the Department of Justice shall be made in 
accordance with 4 CFR part 105 of the Federal Claims Collection 
Standards



Sec. 1015.6  Collection by administrative offset.

    (a) Administrative offset. (1) Whenever feasible and not otherwise 
prohibited, after a debtor fails to pay the claim, request a review of 
the claim, or make an arrangement for payment, DOE shall collect claims 
under this part by means of administrative offset against obligations of 
the United States to the debtor, pursuant to 31 U.S.C. 3716. In 
appropriate circumstances, DOE may give due consideration to the 
debtor's financial condition or whether offset would tend to 
substantially interfere with or defeat the purposes of the program 
authorizing the payments against which offset is contemplated. For 
example, under a grant program in which payments are made in advance of 
the grantee's performance, offset will normally be inappropriate. This 
concept generally does not apply, however, where payment is in the form 
of reimbursement. Determination as to whether collection by 
administrative offset is feasible will be made by DOE on a case-by-case 
basis, in the exercise of sound discretion. DOE will consider not only 
whether administrative offset can be accomplished both practically and 
legally, but also whether offset is best suited to further and protect 
all of the Government's interests.
    (2) DOE will not initiate administrative offset to collect a debt 
under 31 U.S.C. 3716 more than 10 years after the Government's right to 
collect the debt first accrued, unless facts material to the 
Government's right to collect the debt were not known and could not 
reasonably be known by the DOE official or officials who were charged 
with the responsibility to discover and collect such debt.
    (3) DOE is not authorized by 31 U.S.C. 3716 to use administrative 
offset with respect to:
    (i) Debts owed by any State or local government;
    (ii) Debts arising under or payments made under the Social Security 
Act, the Internal Revenue Code of 1954, or the tariff laws of the United 
States; or

[[Page 621]]

    (iii) Any case in which collection of the type of debt involved by 
administrative offset is explicitly provided for or prohibited by 
another statute.

However, unless otherwise provided for by contract or law, debts or 
payments which are not subject to administrative offset under 31 U.S.C. 
3716 may be collected by administrative offset under the common law or 
other applicable statutory authority.
    (4) Salary offsets and offsets against military retired pay are 
governed by 5 U.S.C. 5514.
    (5) Collection by administrative offset of amounts payable from the 
Civil Service Retirement and Disability Fund will be made pursuant to 31 
U.S.C. 3716 and 5 U.S.C. 5705 and regulations thereunder.
    (6) Collections made by administrative offset under 31 U.S.C. 3716, 
shall be in accordance with the procedural requirements set forth in 
Sec. 1015.3(d) of this part.
    (b) Interagency requests. (1) Requests to DOE by other Federal 
agencies for administrative offset should be in writing and forwarded to 
the Department of Energy, Office of the Controller (MA-3), 1000 
Independence Avenue, SW., Washington, DC 20585.
    (2) Requests by DOE to other Federal agencies holding funds payable 
to the debtor should be in writing and forwarded, certified return 
receipt, as specified by that agency in its regulations. If such rule is 
not readily available or identifiable, the request should be submitted 
to that agency's office of legal counsel with a request that it be 
processed in accordance with their internal procedures.
    (3) Requests to DOE should be processed within 30 calendar days of 
receipt. If such processing is not practical or feasible, notice to 
extend the time period for another 30 calendar days should be forwarded 
10 calendar days prior to the expiration of the first 30-day period.
    (4) Requests to or from DOE must be accompanied by a written 
certification that the debtor owes the debt (including the amount) and 
that the requesting agency has fully complied with the provisions of 4 
CFR 102.3. DOE will cooperate with other agencies in effecting 
collection unless the offset would be otherwise contrary to law.
    (5) If administrative offset cannot be effected through DOE or other 
known Federal agency accounts payable, then DOE will place a complete 
stop order against amounts otherwise payable to the debtor by placing 
the name of that debtor on the Department of the Army ``List of 
Contractors Indebted to the United States.'' If any amounts are 
discovered under this procedure, they will be offset against the debt 
owed to DOE provided that applicable provisions of 4 CFR parts 101-105 
have been met and the offset would not otherwise be contrary to law.



Sec. 1015.7  Settlement of claims.

    (a) In accordance with the provisions of 4 CFR part 103, DOE 
officials listed in Sec. 1015.5(c) of this part may settle claims not 
exceeding $20,000, exclusive of interest, penalties, and administrative 
charges, by compromise at less than the principal of the claim if:
    (1) The debtor shows an inability to pay the full amount within a 
reasonable time or refuses to pay the claim in full and DOE is unable to 
enforce collection in full within a reasonable time by enforced 
collection proceedings;
    (2) There is real doubt concerning the Government's ability to prove 
its case in court for the full amount claimed, either because of the 
legal issues involved or a bona fide dispute as to the facts;
    (3) The amount of the claim does not justify the actual foreseeable 
cost of collecting the claim; or
    (4) A combination of the above reasons.
    (b) DOE may suspend or terminate collection action in accordance 
with the terms and procedures contained in 4 CFR part 104.



Sec. 1015.8  Referral for litigation.

    Claims on which aggressive collection action has been taken in 
accordance with 4 CFR part 102 and which cannot be compromised or on 
which collection action cannot be suspended or terminated under 4 CFR 
parts 103 and 104 will be referred to the General Accounting Office or 
the Department

[[Page 622]]

of Justice, as appropriate, in accordance with the procedures in 4 CFR 
part 105.



Sec. 1015.9  Disclosure to consumer reporting agencies and referral to collection agencies.

    DOE may disclose delinquent debts to consumer reporting agencies in 
accordance with 31 U.S.C. 3711(f) and may refer delinquent debts to debt 
collection agencies under the revised Federal Claims Collection 
Standards and other applicable authorities. Information will be 
disclosed to reporting agencies and referred to collection agencies in 
accordance with the terms and conditions of agreements entered into 
between the General Services Administration, DOE, and the reporting and 
collection agencies. The terms and conditions of such agreements shall 
specify that all of the rights and protections afforded to the debtor 
under 31 U.S.C. 3711(f) have been fulfilled.



Sec. 1015.10  Credit report.

    In order to aid DOE in making appropriate determinations as to the 
collection and compromise of claims; the collection of interest, 
administrative charges, and penalty charges; the use of administrative 
offset; the use of other collection methods; and the likelihood of 
collecting the claim, DOE may institute a credit investigation of the 
debtor at any time following receipt of knowledge of the claim.



PART 1016--SAFEGUARDING OF RESTRICTED DATA--Table of Contents




                           General Provisions

Sec.
1016.1  Purpose.
1016.2  Scope.
1016.3  Definitions.
1016.4  Communications.
1016.5  Submission of procedures by access permit holder.
1016.6  Specific waivers.
1016.7  Interpretations.

                            Physical Security

1016.8  Approval for processing access permittees for security facility 
          approval.
1016.9  Processing security facility approval.
1016.10  Grant, denial, or suspension of security facility approval.
1016.11  Cancellation of requests for security facility approval.
1016.12  Termination of security facility approval.
1016.21  Protection of Restricted Data in storage.
1016.22  Protection while in use.
1016.23  Establishment of security areas.
1016.24  Special handling of classified material.
1016.25  Protective personnel.

                         Control of Information

1016.31  Access to Restricted Data.
1016.32  Classification and preparation of documents.
1016.33  External transmission of documents and material.
1016.34  Accountability for Secret Restricted Data.
1016.35  Authority to reproduce Restricted Data.
1016.36  Changes in classification.
1016.37  Destruction of documents or material containing Restricted 
          Data.
1016.38  Suspension or revocation of access authorization.
1016.39  Termination, suspension, or revocation of security facility 
          approval.
1016.40  Termination of employment or change of duties.
1016.41  Continued applicability of the regulations in this part.
1016.42  Reports.
1016.43  Inspections.
1016.44  Violations.

    Authority: Sec. 161i, 68 Stat. 948 (42 U.S.C. 2201).

    Source: 48 FR 36432, Aug. 10, 1983, unless otherwise noted.

                           General Provisions



Sec. 1016.1  Purpose.

    The regulations in this part establish requirements for the 
safeguarding of Secret and Confidential Restricted Data received or 
developed under an access permit. This part does not apply to Top Secret 
information since no such information may be forwarded to an access 
permittee within the scope of this regulation.



Sec. 1016.2  Scope.

    The regulations in this part apply to all persons who may require 
access to Retricted Data used, processed, stored, reproduced, 
transmitted, or handled in connection with an access permit.

[[Page 623]]



Sec. 1016.3  Definitions.

    (a) Access authorization or security clearance. An administrative 
determination by the DOE that an individual who is either a DOE 
employee, applicant for employment, consultant, assignee, other Federal 
department or agency employee (and other persons who may be designated 
by the Secretary of Energy), or a DOE contractor or subcontractor 
employee and an access permittee is eligible for access to Restricted 
Data. Access authorizations or security clearances granted by DOE are 
designated as ``Q,'' ``Q(X),'' ``L,'' ``L(X),'' ``Top Secret,'' or 
``Secret.'' For the purpose of this chapter only ``Q,'' ``Q(X),'' ``L,'' 
and ``L(X)'' access authorizations or clearances will be defined.
    (1) ``Q'' access authorizations or clearances are based upon full 
field investigations conducted by the Federal Bureau of Investigation, 
Office of Personnel Management, or another Government agency which 
conducts personnel security investigations. They permit an individual to 
have access, on a ``need to know'' basis, to Top Secret, Secret, and 
Confidential Restricted Data, Formerly Restricted Data, National 
Security Information, or special nuclear material in Category I or II 
quantities as required in the performance of duties.
    (2) ``Q(X)'' access authorizations or clearances are based upon the 
same full field investigations as described in Sec. 1016.3(a)(1), above. 
When ``Q'' access authorizations or clearances are granted to access 
permittees they are identified as ``Q(X)'' access authorizations or 
clearances and authorize access only to the type of Secret Restricted 
Data as specified in the permit and consistent with appendix A, 10 CFR 
part 725, ``Categories of Restricted Data Available.''
    (3) ``L'' access authorizations or clearances are based upon 
National Agency Checks and Inquiries (NACI) for Federal employees, or 
National Agency Checks (NAC) for non-Federal employees, conducted by the 
Office of Personnel Management. They permit an individual to have 
access, on a ``need to know'' basis, to Confidential Restricted Data, 
Secret and Confidential Formerly Restricted Data, or Secret and 
Confidential National Security Information, required in the performance 
of duties, provided such information is not designated ``CRYPTO'' 
(classified cryptographic information), other classified communications 
security (``COMSEC'') information, or intelligence information.
    (4) ``L(X)'' access authorizations or clearances are based upon the 
same National Agency Checks as described in paragraph (a)(3), of this 
section. When ``L'' access authorizations or clearances are granted to 
access permittees, they are identified as ``L(X)'' access authorizations 
or clearances and authorize access only to the type of Confidential 
Retricted Data as specified in the permit and consistent with appendix 
A, 10 CFR part 725, ``Categories of Restricted Data Available.''
    (b) Act. The Atomic Energy Act of 1954 (68 Stat. 919) as amended.
    (c) Authorized classifier. An individual authorized in writing by 
appropriate DOE authority to classify, declassify, or downgrade the 
classification of information, work, projects, documents, and materials.
    (d) Classified mail address. A mail address established for each 
access permittee approved by the DOE to which all Restricted Data for 
the permittee is to be sent.
    (e) Classified matter. Documents and material containing classified 
information.
    (f) Combination lock. A built-in combination lock on a security 
container which is of tempered steel alloy hard plate, at least \1/4\' 
in thickness and Rockwell hardness of C-63 to C-65, of sufficient size 
and so located as to sufficiently impede access to the locking mechanism 
by drilling of the lock or container.
    (g) DOE. The United States Department of Energy or its duly 
authorized representatives.
    (h) Document. Any piece of recorded information regardless of its 
physical form or characteristics.
    (i) Formerly Restricted Data. Classified information jointly 
determined by the DOE and the Department of Defense to be related 
primarily to the military utilization of atomic weapons and removed by 
the DOE from the Restricted Data category pursuant to section

[[Page 624]]

142(d) of the Atomic Energy Act of 1954, as amended.
    (j) Infraction. An act or omission involving failure to comply with 
DOE safeguards and security orders or directives, and may include a 
violation of law.
    (k) Intrusion alarm. A tamper-indicating electrical, electro-
mechanical, electro-optical, electronic or similar device which will 
detect unauthorized intrusion by an individual into a building or 
security area, and alert protective personnel by means of actuated 
visible and audible signals.
    (l) Material. A chemical substance without regard to form; 
fabricated or processed item; or assembly, machinery, or equipment.
    (m) Matter. Documents or material.
    (n) National Security. The national defense and foreign relations of 
the United States.
    (o) National Security Information. Information that has been 
determined pursuant to Executive Order 12356 of April 2, 1982, 
``National Security Information'' or any predecessor order to require 
protection against unauthorized disclosure and that is so designated.
    (p) ``Need to know.'' A determination by persons having 
responsibility for classified information or mattter, that a proposed 
recipient's access to such classified information or matter is necessary 
in the performance of official, contractual, or access permit duties of 
employment under cognizance of the DOE.
    (q) Permittee. The holder of an Access Permit issued pursuant to the 
regulations set forth in 10 CFR part 725, ``Permits For Access to 
Restricted Data.''
    (r) Person. Any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency other than DOE, any State or any political subdivision 
of, or any political entity within a State, or other entity; and any 
legal successor, representative, agency, or agency of the foregoing.
    (s) Protective personnel. Guards or watchmen or other persons 
designated responsibility for the protection of classified matter.
    (t) Restricted Data. All data concerning design, manufacture, or 
utilization of atomic weapons; the production of special nuclear 
material; or the use of special nuclear material in the production of 
energy, but shall not include data declassified or removed from the 
Restricted Data category pursuant to section 142 of the Act.
    (u) Security area. A physically defined space containing classified 
matter and subject to physical protection and personnel access controls.
    (v) Security clearance. See access authorization.
    (w) Security facility. Any facility, including an access permittee, 
which has been approved by the DOE for using, processing, storing, 
reproducing, transmitting, or handling classified matter.
    (x) Security facility approval. A determination by the DOE that a 
facility, including an access permittee, is eligible to use, process, 
store, reproduce, transmit, or handle classified matter.
    (y) Security Plan. A written plan by the access permittee, and 
submitted to the DOE for approval, which outlines the permittee's 
proposed security procedures and controls for the protection of 
Restricted Data and which includes a floor plan of the area in which the 
matter is to be used, processed, stored, reproduced, transmitted, or 
handled.
    (z) Security survey. An onsite examination by a DOE representative 
of all devices, equipment, and procedures employed at a security 
facility to safeguard classified matter.



Sec. 1016.4  Communications.

    Communications concerning rulemaking, i.e., petition to change part 
1016, should be addressed to the Assistant Secretary for Defense 
Programs (DP-1), U.S. Department of Energy, Washington, D.C. 20545. All 
other communications concerning the regulations in this part should be 
addressed to U.S. Department of Energy Operations Offices as listed in 
appendix B of 10 CFR part 725, administering access permits for the 
geographical area.



Sec. 1016.5  Submission of procedures by access permit holder.

    No access permit holder shall have access to Restricted Data until 
he shall have submitted to the DOE a written statement of his procedures 
for the safeguarding of Restricted Data and for

[[Page 625]]

the security education of his employees, and DOE shall have determined 
and informed the permittee that his procedures for the safeguarding of 
Restricted Data are in compliance with the regulations in this part and 
that his procedures for the security education of his employees, who 
will have access to Restricted Data, are informed about and understand 
the regulations in this part.



Sec. 1016.6  Specific waivers.

    DOE may, upon application of any interested party, grant such 
waivers from the requirements of this part as it determines are 
authorized by law and will not constitute an undue risk to the common 
defense and security.



Sec. 1016.7  Interpretations.

    Except as specifically authorized by the Secretary of Energy in 
writing, no interpretation of the meaning of the regulations in this 
part by any officer or employee of DOE other than a written 
interpretation by the General Counsel will be recognized to be binding 
upon DOE.

                            Physical Security



Sec. 1016.8  Approval for processing access permittees for security facility approval.

    (a) An access permittee who has a need to use, process, store, 
reproduce, transmit, or handle Restricted Data at any location in 
connection with its permit shall promptly request a DOE security 
facility approval.
    (b) The request shall include the following information: The name 
and address of the permittee; the extent and scope of the classified 
activity and the highest classification of Restricted Data to be 
received; a written statement in the form of a security plan which 
outlines the permittee's proposed security procedures and controls for 
the protection of Restricted Data, including a floor plan of the 
areas(s) in which the classified matter is to be used, processed, 
stored, reproduced, transmitted, and handled.
    (c) The DOE will promptly inform the permittee of the acceptability 
of the request for further processing and will notify the permittee of 
its decision in writing.



Sec. 1016.9  Processing security facility approval.

    The following receipt of an acceptable request for security facility 
approval, the DOE will perform an initial security survey of the 
permittee's facility to determine that granting a security facility 
approval would be consistent with the national security. If DOE makes 
such a determination, security facility approval will be granted. If 
not, security facility approval will be withheld pending compliance with 
the security survey recommendations or until a waiver is granted 
pursuant to Sec. 1016.6 of this part.



Sec. 1016.10  Grant, denial, or suspension of security facility approval.

    Notification of the DOE's grant, denial, or suspension of security 
facility approval will be furnished the permittee in writing, or orally 
with written confirmation. This information may also be furnished to 
representatives of the DOE, DOE contractors, or other Federal agencies 
having a need to transmit Restricted Data to the permittee.



Sec. 1016.11  Cancellation of requests for security facility approval.

    When a request for security facility approval is to be withdrawn or 
cancelled, the DOE Operations Office will be notified by the requester 
immediately by telephone and confirmed in writing so that processing of 
this approval may be terminated.



Sec. 1016.12  Termination of security facility approval.

    Security facility approval will be terminated when:
    (a) There is no longer a need to use, process, store, reproduce, 
transmit, or handle Restricted Data at the facility; or
    (b) The DOE makes a determination that continued security facility 
approval is not in the interest of national security.

In such cases the permittee will be notified in writing of the 
determination, and the procedures outlined in Sec. 1016.39 of this part 
will apply.

[[Page 626]]



Sec. 1016.21  Protection of Restricted Data in storage.

    (a) Persons who possess Restricted Data pursuant to an Access Permit 
shall store Secret and Confidential documents and material when not in 
use in accordance with one of the following methods:
    (1) In a locked vault, safe, or safe-type steel file cabinet having 
a 3-position dial-type combination lock; or
    (2) In a dual key, bank safety deposit box; or
    (3) In a steel file cabinet secured by a steel lock bar and a 3-
position dial-type changeable combination padlock; or
    (4) In a locked steel file cabinet when located in a security area 
established under Sec. 1016.23 or when the cabinet or the place in which 
the cabinet is located is under DOE-approved intrusion alarm protection.
    (b) Changes of combination: Each permittee shall change the 
combination on locks of his safekeeping equipment whenever such 
equipment is placed in use, whenever an individual knowing the 
combination no longer requires access to the repository as a result of 
change in duties or position in the permittee's organization, or 
termination of employment with the permittee or whenever the combination 
has been subjected to compromise, and in any event at least once a year. 
Permittees shall classify records of combinations no lower than the 
highest classification of the documents and material authorized for 
storage in the safekeeping equipment concerned.
    (c) The lock on safekeeping equipment of the type specified in 
paragraph (a)(4) of this section shall be replaced immediately whenever 
a key is lost.



Sec. 1016.22  Protection while in use.

    While in use, documents and material containing Restricted Data 
shall be under the direct control of an appropriately cleared 
individual, and the Restricted Data shall be capable of being removed 
from sight immediately.



Sec. 1016.23  Establishment of security areas.

    (a) When, because of their nature or size, it is impracticable to 
safeguard documents and material containing Restricted Data in 
accordance with the provisions of Secs. 1016.21 and 1016.22, a security 
area to protect such documents and material shall be established.
    (b) The following controls shall apply to security areas:
    (1) Security areas shall be separated from adjacent areas by a 
physical barrier designed to prevent entrance into such areas, and 
access to the Restricted Data within the areas, by unauthorized 
individuals.
    (2) During working hours, admittance shall be controlled by an 
appropriately cleared individual posted at each unlocked entrance.
    (3) During nonworking hours, admittance shall be controlled by 
protective personnel on patrol, with protective personnel posted at 
unlocked entrances, or by such intrusion alarm system as DOE may 
approve.
    (4) Each individual authorized to enter a security area shall be 
issued a distinctive badge or pass when the number of employees assigned 
to the area exceeds thirty.



Sec. 1016.24  Special handling of classified material.

    When the Restricted Data contained in material is not ascertainable 
by observation or examination at the place where the material is located 
and when the material is not readily removable because of size, weight, 
radioactivity, or similar factors, DOE may authorize the permittee to 
provide such lesser protection than is otherwise required by 
Secs. 1016.21 to 1016.23 inclusive, as DOE determines to be commensurate 
with the difficulty of removing the material.



Sec. 1016.25  Protective personnel.

    Whenever protective personnel are required by Sec. 1016.23, such 
protective personnel shall:
    (a) Possess a ``Q'' or ``L'' security clearance or access 
authorization or ``Q(X)'' or ``L(X)'' access authorization if the 
Restricted Data being protected is classified Confidential, or a ``Q'' 
security clearance or access authorization or ``Q(X)'' access 
authorization if the Restricted Data being protected is classified 
Secret.
    (b) Be armed with sidearms of not less than .38 caliber.

[[Page 627]]

                         Control of Information



Sec. 1016.31  Access to Restricted Data.

    (a) Except as DOE may authorize, no person subject to the 
regulations in this part shall permit any individual to have access to 
Secret or Confidential Restricted Data in his possession unless the 
individual has an appropriate security clearance or access authorization 
granted by DOE, or has been certified by DOD or NASA through DOE, and;
    (1) The individual is authorized by an Access Permit to receive 
Restricted Data in the categories involved and, in the case of Secret 
Restricted Data, the permittee determines that such access is required 
in the course of his duties, or
    (2) The individual needs such access in connection with such duties 
as a DOE employee or DOE contractor employee, or as certified by DOD or 
NASA.
    (b) Inquiries concerning the clearance status of individuals, the 
scope of Access Permits, or the nature of contracts should be addressed 
to the DOE Operations Office administering the permit as set forth in 
appendix B of part 725.



Sec. 1016.32  Classification and preparation of documents.

    (a) Classification. Restricted Data generated or possessed by an 
Access Permit holder must be appropriately marked. CG-UF-3, ``Guide to 
the Unclassified Fields of Research,'' will be furnished each permittee. 
In the event a permittee originates classified information which falls 
within the definition of Restricted Data or information which he is not 
positive is not within that definition and CG-UF-3 does not provide 
positive classification guidance for such information, he shall 
designate the information as Confidential, Restricted Data and request 
classification guidance from the DOE through the Classification Officer 
at the Operations Office administering the Permit, who will refer the 
request to the Director, Office of Classification, U.S. DOE, Washington, 
D.C. 20545 if he does not have authority to provide the guidance.
    (b) Classification consistent with content. Each document containing 
Restricted Data shall be classified Secret or Confidential according to 
its own content.
    (c) Document which custodian believes improperly classified or 
lacking appropriate classification markings. If a person receives a 
document which, in his opinion, is not properly classified, or omits the 
appropriate classification markings, he shall communicate with the 
sender and suggest the classification which he believes appropriate. 
Pending final determination of proper classification, such documents 
shall be safeguarded with the highest classification in question.
    (d) Classification markings. Unless otherwise authorized below, the 
assigned classification of a document shall be conspicuously marked or 
stamped at the top and bottom of each page and on the front cover, if 
any, and the document shall bear the following additional markings on 
the first page and on the front cover:

                             Restricted Data

    This document contains Restricted Data as defined in the Atomic 
Energy Act of 1954. Its transmittal or the disclosure of its contents in 
any manner to an unauthorized person is prohibited.

    (e) Documentation. (1) All Secret documents shall bear on the first 
page a properly completed documentation stamp such as the following: 
This document consists of -- pages. Copy No. -- of -- Series --.
    (2) The series designation shall be a capital letter beginning with 
the letter ``A'' designating the original set of copies prepared. Each 
subsequent set of copies of the same documents shall be identified by 
the succeeding letter of the alphabet.
    (f) Letter of transmittal. A letter of transmitting Restricted Data 
shall be marked with a classification at least as high as its highest 
classified enclosure. When the contents of the letter of transmittal 
warrant lower classification or requires no classification, a stamp or 
marking such as the following shall be used in the letter:

When separated from enclosures handle this document as ----.

[[Page 628]]

    (g) Permanently fastened documents. Classified books or pamphlets, 
the pages of which are permanently and securely fastened together, shall 
be conspicuously marked or stamped with the assigned classification in 
letters at least one-fourth (\1/4\) inch in height at the top and bottom 
on the outside front cover, on the title page, on the front page, and on 
the inside and outside of the back cover. The additional markings 
referred to in paragraph (d) of this section shall be placed on the 
first page and on the front cover.
    (h) Physically connected documents. The classification of a file or 
group of physically connected documents shall be at least as high as 
that of the most highly classified document therein. It shall bear only 
one overall classification, although pages, paragraphs, sections, or 
components thereof may bear different classifications. Each document 
separated from the file or group shall be handled in accordance with its 
individual classification.
    (i) Attachment of security markings. Documents which do not lend 
themselves to marking or stamping shall have securely affixed or 
attached a tag, sticker, or similar device bearing the appropriate 
security markings.



Sec. 1016.33  External transmission of documents and material.

    (a) Restrictions. (1) Documents and material containing Restricted 
Data shall be transmitted only to persons who possess appropriate 
clearance or access authorization and are otherwise eligible for access 
under the requirements of Sec. 1016.31.
    (2) In addition, such documents and material shall be transmitted 
only to persons who possess facilities for their physicial security 
consistent with this part. Any person subject to the regulations in this 
part who transmits such documents or material shall be deemed to have 
fulfilled his obligations under this subparagraph by securing a written 
certification from the prospective recipient that such recipient 
possesses facilities for its physical security consistent with this 
part.
    (3) Documents and material containing Restricted Data shall not be 
exported from the United States without prior authorization of DOE.
    (b) Preparation of documents. Documents containing Restricted Data 
shall be prepared for transmission outside an individual installation in 
accordance with the following:
    (1) They shall be enclosed in two sealed, opaque envelopes or 
wrappers.
    (2) The inner envelope or wrapper shall be addressed in the ordinary 
manner and sealed with tape, the appropriate classification shall be 
placed on both sides of the envelope, and the additional marking 
referred to in Sec. 1016.32(d) shall be placed on the side bearing the 
address.
    (3) The outer envelope or wrapper shall be addressed in the ordinary 
manner. No classification, additional marking, or other notation shall 
be affixed which indicates that the document enclosed therein contains 
classified information or Restricted Data.
    (4) A receipt which identifies the document, the date of transfer, 
the recipient, and the person transferring the document shall accompany 
the document and shall be signed by the recipient and returned to the 
sender whenever the custody of a Secret document is transferred.
    (c) Preparation of material. Material, other than documents, 
containing Restricted Data shall be prepared for shipment outside an 
individual installation in accordance with the following:
    (1) The material shall be so packaged that the classified 
characteristics will not be revealed.
    (2) A receipt which identifies the material, the date of shipment, 
the recipient, and the person transferring the material shall accompany 
the material, and the recipient shall sign such receipt whenever the 
custody of Secret material is transferred.
    (d) Methods of transportation. (1) Secret matter shall be 
transported only by one of the following methods:
    (i) By messenger-courier system specifically created for that 
purpose.
    (ii) Registered mail.
    (iii) By protective services provided by United States air or 
surface commercial carriers under such conditions as may be preserved by 
the DOE.

[[Page 629]]

    (iv) Individuals possessing appropriate DOE security clearance or 
access authorization who have been given written authority by their 
employers.
    (2) Confidential matter may be transported by one of the methods set 
forth in paragraph (d)(1) of this section or by U.S. first class, 
express, or certified mail.
    (e) Telecommunication of classified information. There shall be no 
telecommunication of Restricted Data unless the secure telecommunication 
system has been approved by the DOE.
    (f) Telephone conversations. Classified information shall not be 
discussed over the telephone.



Sec. 1016.34  Accountability for Secret Restricted Data.

    Each permittee possessing documents containing Secret Restricted 
Data shall establish a document accountability procedure and shall 
maintain records to show the disposition of all such documents which 
have been in his custody at any time.



Sec. 1016.35  Authority to reproduce Restricted Data.

    Secret Restricted Data will not be reproduced without the written 
permission of the originator, his successor, or high authority. 
Confidential Restricted Data may be reproduced to the minimum extent 
necessary consistent with efficient operation without the necessity for 
permission.



Sec. 1016.36  Changes in classification.

    Documents containing Restricted Data shall not be downgraded or 
declassified except as authorized by DOE. Requests for downgrading or 
declassification shall be submitted to the DOE Operations Office 
administering the permit; or U.S. DOE, Washington, DC 20545, Attention: 
Office of Classification. If the appropriate authority approves a change 
of classification or declassification, the previous classification 
marking shall be canceled and the following statement, properly 
completed, shall be placed on the first page of the document:

    Classification canceled (or changed to)
 _______________________________________________________________________
(Insert appropriate classification)
 by_____________________________________________________________________
(Person authorizing change in classification)
 by_____________________________________________________________________
(Signature of person making change and date thereof)

Any persons making a change in classification or receiving notice of 
such a change shall forward notice of the change in classification to 
holders of all copies as shown in their records.



Sec. 1016.37  Destruction of documents or material containing Restricted Data.

    Documents containing Restricted Data may be destroyed by burning, 
pulping, or another method that assures complete destruction of the 
information which they contain. If the document contains Secret 
Restricted Data, a permanent record of the subject, title, report number 
of the document, its date of preparation, its series designation and 
copy number, and the date of destruction shall be signed by the person 
destroying the document and shall be maintained in the office of the 
last custodian. Restricted Data contained in material, other than 
documents, may be destroyed only by a method that assures complete 
obliteration, removal, or destruction of the Restricted Data.



Sec. 1016.38  Suspension or revocation of access authorization.

    In any case where the access authorization of an individual subject 
to the regulations in this part is suspended or revoked in accordance 
with the procedures set forth in 10 CFR part 710, such individual shall, 
upon due notice from DOE of such suspension or revocation and demand by 
DOE, deliver to DOE any and all Restricted Data in his possession for 
safekeeping and such further disposition as DOE determines to be just 
and proper.



Sec. 1016.39  Termination, suspension, or revocation of security facility approval.

    (a) If the need to use, process, store, reproduce, transmit, or 
handle classified matter no longer exists, the security facility 
approval will be terminated. The permittee may deliver all Restricted 
Data to the DOE or to a person authorized to receive them; or the

[[Page 630]]

permittee may destroy all such Restricted Data. In either case, the 
facility must submit a certification of nonpossession of Restricted Data 
to the DOE.
    (b) In any instance where security facility approval has been 
suspended or revoked based on a determination of the DOE that further 
possession of classified matter by the permittee would endanger the 
common defense and national security, the permittee shall, upon notice 
from the DOE, immediately deliver all Restricted Data to the DOE along 
with a certificate of nonpossession of Restricted Data.



Sec. 1016.40  Termination of employment or change of duties.

    Each permittee shall furnish promptly to DOE written notification of 
the termination of employment of each individual who possesses an access 
authorization under his Permit or whose duties are changed so that 
access to Restricted Data is no longer needed. Upon such notification, 
DOE may:
    (a) Terminate the individual's access authorization, or
    (b) Transfer the individual's access authorization to the new 
employer of the individual to allow continued access to Restricted Data 
where authorized, pursuant to DOE regulations.



Sec. 1016.41  Continued applicability of the regulations in this part.

    The expiration, suspension, revocation, or other termination of a 
security clearance or access authorization or security facility approval 
shall not relieve any person from compliance with the regulations in 
this part.



Sec. 1016.42  Reports.

    Each permittee shall immediately report to the DOE office 
administering the permit any alleged or suspected violation of the 
Atomic Energy Act of 1954, as amended, Espionage Act, or other Federal 
statutes related to Restricted Data. Additionally, the permittee shall 
report any infractions, losses, compromises, or possible compromise of 
Restricted Data.



Sec. 1016.43  Inspections.

    The DOE shall make such inspections and surveys of the premises, 
activities, records, and procedures of any person subject to the 
regulations in this part as DOE deems necessary to effectuate the 
purposes of the Act, E.O. 12356, and DOE orders and procedures.



Sec. 1016.44  Violations.

    An injunction or other court order may be obtained prohibiting any 
violation of any provision of the Act or any regulation or order issued 
thereunder. Any person who willfully violates, attempts to violate, or 
conspires to violate any provision of the Act or any regulation or order 
issued thereunder, including the provisions of this part, may be guilty 
of a crime and upon conviction may be punished by fine or imprisonment, 
or both, as provided by law.



PART 1017--IDENTIFICATION AND PROTECTION OF UNCLASSIFIED CONTROLLED NUCLEAR INFORMATION--Table of Contents




Sec.
1017.1  Purpose and scope.
1017.2  Applicability.
1017.3  Definitions.
1017.4  Policy.
1017.5  Prohibitions.
1017.6  Exemptions.
1017.7  Identification of unclassified controlled nuclear information.
1017.8  Categories of unclassified controlled nuclear information.
1017.9  Adverse effect test.
1017.10  Nuclear material determinations.
1017.11  Quarterly report.
1017.12  Review and denial of documents or material.
1017.13  Retirement of documents or material.
1017.14  Joint information, documents, or material.
1017.15  Markings on documents or material.
1017.16  Access to unclassified controlled nuclear information.
1017.17  Physical protection requirements.
1017.18  Violations.

    Authority: 42 U.S.C. 2168; 28 U.S.C. 2461 note.

    Source: 50 FR 15822, Apr. 22, 1985, unless otherwise noted.



Sec. 1017.1  Purpose and scope.

    (a) This part contains regulations of the Department of Energy (DOE) 
implementing section 148 (42 U.S.C. 2168)

[[Page 631]]

of the Atomic Energy Act which prohibits the unauthorized dissemination 
of certain unclassified government information. This information, 
identified by the term ``Unclassified Controlled Nuclear Information'' 
(UCNI), is limited to information concerning atomic energy defense 
programs.
    (b) These regulations--
    (1) Provide for the review of information prior to its designation 
as UCNI;
    (2) Describe how information is determined to be UCNI;
    (3) Establish minimum physical protection standards for documents 
and material containing UCNI;
    (4) Specify who may have access to UCNI; and
    (5) Establish a procedure for the imposition of penalties on persons 
who violate section 148 of the Atomic Energy Act or any regulation or 
order of the Secretary issued under section 148 of the Atomic Energy 
Act, including these regulations.



Sec. 1017.2  Applicability.

    These regulations apply to--
    (a) Any person authorized access to UCNI;
    (b) Any person not authorized access to UCNI who acquires, attempts 
to acquire, or conspires to acquire, in violation of these regulations, 
Government information in any document or material containing an UCNI 
notice (refer to Sec. 1017.15); and
    (c) Any person not authorized access to UCNI but who wants to be 
authorized access to UCNI.



Sec. 1017.3  Definitions.

    As used in this part--
    (a) Atomic Energy Act means the Atomic Energy Act of 1954, as 
amended (42 U.S.C. 2011 et seq.).
    (b) Atomic Energy Defense Programs means activities, equipment, and 
facilities of the DOE or other Government agencies utilized or engaged 
in support of the--
    (1) Development, production, testing, sampling, maintenance, repair, 
modification, assembly, utilization, transportation, or retirement of 
nuclear weapons or components of nuclear weapons;
    (2) Production, utilization, or transportation of nuclear material 
for military applications; or
    (3) Safeguarding of activities, equipment, or facilities which 
support the functions in paragraphs (b)(1) and (b)(2) of this section, 
including the protection of nuclear weapons, components of nuclear 
weapons, or nuclear material for military applications at a fixed 
facility or in transit.
    (c) Authorized Individual means a person who has been granted 
routine access to UCNI under Sec. 1017.16(a).
    (d) Component means any operational, experimental, or research-
related part, subsection, design, or material used in the manufacture or 
utilization of a nuclear weapon, nuclear explosive device, or nuclear 
weapon test assembly.
    (e) Controlling Official means an individual authorized under 
Sec. 1017.7(a) to make a determination that specific Government 
information is, is not, or is no longer UCNI, such determination serving 
as the basis for determinations by a Reviewing Official that a document 
or material contains, does not contain, or no longer contains UCNI.
    (f) Denying Official means an individual authorized under 
Sec. 1017.12(b) to deny a request made under statute or Executive order 
for all or any portion of a document or material containing UCNI.
    (g) Document or Material means the physical medium on or in which 
information is recorded, or a product or substance which contains or 
reveals information, regardless of its physical form or characteristics.
    (h) Formerly Restricted Data means a category of information 
classified under section 142 d. of the Atomic Energy Act.
    (i) Government means the Executive Branch of the United States 
Government.
    (j) Government Information means any fact or concept, regardless of 
its physical form or characteristics, that is owned by, produced by or 
for, or otherwise controlled by the United States Government.
    (k) In Transit means the physical movement of a nuclear weapon, a 
component of a nuclear weapon, or nuclear material from one part to 
another part

[[Page 632]]

of a facility or from one facility to another facility. An item is 
considered ``in transit'' until it has been relinquished to the custody 
of the authorized recipient at its ultimate destination. An item in 
temporary storage pending shipment to its ultimate destination is ``in 
transit.''
    (l) National Security Information means a category of information 
classified under Executive Order 12356, ``National Security 
Information,'' or its successor executive orders.
    (m) Nuclear Material means special nuclear material, byproduct 
material, or source material as defined by sections 11 aa., 11e., and 
11z., respectively, of the Atomic Energy Act, or any other material used 
in the production, testing, utilization, or assembly of nuclear weapons 
or components of nuclear weapons that the Secretary determines to be 
nuclear material under Sec. 1017.10(a).
    (n) Nuclear Weapon means atomic weapon.
    (o) Physical Security means the combination of operational and 
security equipment, personnel, and procedures used to protect 
facilities, information, documents, or material against theft, sabotage, 
diversion, or other criminal acts.
    (p) Restricted Data means a category of information classified under 
section 142 of the Atomic Energy Act.
    (q) Reviewing Official means an individual authorized under 
Sec. 1017.12(a) to make a determination, based on guidelines which 
reflect decisions of Controlling Officials, that a document or material 
contains UCNI.
    (r) Safeguards means an integrated system of physical protection, 
personnel reliability, accountability, and material control measures 
designed to deter, prevent, detect, and respond to unauthorized access, 
diversion, or possession of a nuclear weapon, a component of a nuclear 
weapon or nuclear material.
    (s) Secretary means the Secretary of Energy.
    (t) Unauthorized Dissemination means the intentional or negligent 
transfer, in any manner, by any person, of information contained in a 
document or material determined by a Reviewing Official to contain UCNI 
and marked in accordance with Sec. 1017.15 to any person other than an 
Authorized Individual or a person granted special access to UCNI under 
Sec. 1017.16(b).
    (u) Unclassified Controlled Nuclear Information means certain 
unclassified government information prohibited from unauthorized 
dissemination under section 148 of the Atomic Energy Act--
    (1) Which concerns atomic energy defense programs;
    (2) Which pertains to--
    (i) The design of production facilities or utilization facilities;
    (ii) Security measures (including security plans, procedures, and 
equipment) for the physical protection of--
    (A) Production or utilization facilities;
    (B) Nuclear material contained in such facilities; or
    (C) Nuclear material in transit; or
    (iii) The design, manufacture, or utilization of any nuclear weapon 
or component if the design, manufacture, or utilization of such weapon 
or component was contained in any information declassified or removed 
from the Restricted Data category by the Assistant Secretary for Defense 
Programs (or the head of the predecessor agency of the Department of 
Energy) pursuant to section 142 of the Atomic Energy Act; and
    (3) Whose unauthorized dissemination, as determined by a Controlling 
Official, 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--
    (i) Illegal production of nuclear weapons; or
    (ii) Theft, diversion, or sabotage of nuclear materials, equipment, 
or facilities.



Sec. 1017.4  Policy.

    It is the policy of the DOE to make information publicly available 
to the fullest extent possible. These regulations shall be interpreted 
and implemented so as to apply the minimum restrictions needed to 
protect the health and safety of the public or the common defense and 
security, consistent with the requirement in section 148 of the

[[Page 633]]

Atomic Energy Act to prohibit the unauthorized dissemination of UCNI. 
For example--
    (a) Although UCNI is not subject to disclosure under the Freedom of 
Information Act (FOIA), documents or material containing both UCNI and 
other information which is not UCNI shall have the portions of the 
document or material not containing UCNI released to the maximum 
possible extent in response to a request made under the FOIA, subject to 
other exemptions of the FOIA; and
    (b) To the fullest extent possible, the fundamental DOE policy of 
full disclosure of documents prepared under the National Environmental 
Policy Act (NEPA) and its implementing regulations will be followed. In 
some cases, this will mean that UCNI may be excised from documents to be 
made publicly available and prepared as an appendix, or otherwise 
segregated so as to allow the release of the nonsensitive portions of a 
document.



Sec. 1017.5  Prohibitions.

    Government information shall not be controlled as UCNI in order to--
    (a) Conceal violations of law, inefficiency, or administrative 
error;
    (b) Prevent embarrassment to a person or organization;
    (c) Restrain competition; or
    (d) Prevent or delay the release of any information that does not 
properly qualify as UCNI.



Sec. 1017.6  Exemptions.

    (a) Information exempt from these regulations includes--
    (1) Information that is not government information;
    (2) Information that concerns activities, facilities, or equipment 
outside the scope of atomic energy defense programs;
    (3) Information that is classified as Restricted Data, Formerly 
Restricted Data, or National Security Information, or that is protected 
from disclosure under section 147 of the Atomic Energy Act (42 U.S.C. 
2167);
    (4) Basic scientific information (i.e., information resulting from 
research directed toward increasing fundamental scientific knowledge or 
understanding rather than any practical application of that knowledge);
    (5) Applied scientific information (i.e., information resulting from 
research whose objective is to gain knowledge or understanding necessary 
for determining the means by which a specific need may be met) but not 
including that pertaining to:
    (i) The design of production facilities or utilization facilities;
    (ii) Security measures (including security plans, procedures, and 
equipment) for the physical protection of:
    (A) Production or utilization facilities,
    (B) Nuclear material contained in such facilities, or
    (C) Nuclear material in transit; or
    (iii) The design, manufacture, or utilization of any nuclear weapon 
or component if the design, manufacture, or utilization of such weapon 
or component was contained in any information declassified or removed 
from the Restricted Data category by the Secretary (or the head of the 
predecessor agency of the Department of Energy) pursuant to section 142 
of the Atomic Energy Act;
    (6) Safety information used to protect employees from occupational 
hazards, except for government information that reveals an exploitable 
vulnerability or design element that is UCNI;
    (7) Radiation exposure data and all other personal health 
information;
    (8) Information pertaining to the public health and safety and to 
the protection of the environment, except for government information 
that reveals an exploitable vulnerability or design element that is 
UCNI;
    (9) Information concerning the transportation of low level or 
commercially generated radioactive waste; and
    (10) Waste Isolation Pilot Plant (WIPP) information, except for 
government information that deals with safeguards or physical security 
for the WIPP project.
    (b) Documents exempt from these regulations include--
    (1) Documents prepared under Council on Environmental Quality 
regulations or DOE guidelines complying

[[Page 634]]

with the National Environmental Policy Act, except those portions of a 
document revealing an exploitable vulnerability or design element that 
is UCNI;
    (2) Documents or material that a Reviewing Official determines to 
have been widely disseminated in the public domain (e.g., to a public 
library or a university library); and
    (3) For documents which contain UCNI, any reasonably segregable 
portions of documents which do not contain UCNI or which contain 
information otherwise exempt from disclosure.



Sec. 1017.7  Identification of unclassified controlled nuclear information.

    (a) Authorities--(1) Controlling Officials. A Controlling Official 
having cognizance over certain government information is authorized to 
make a determination that the government information is or is not UCNI. 
A Controlling Official with overall cognizance over UCNI under 
consideration for decontrol is authorized to make a determination that 
the information is no longer UCNI. Each Controlling Official having 
cognizance over UCNI under consideration for decontrol shall concur in 
the determination to decontrol the UCNI prior to the UCNI being 
decontrolled.
    (2) Designation. The Secretary may designate the Deputy Secretary, 
the Under Secretary, a Secretarial Officer of the DOE, or a Manager of a 
DOE Operations Office to be a Controlling Official for government 
information within his or her cognizance. The Controlling Official may 
redelegate his or her authority in accordance with the redelegation 
provisions in the designation of authority from the Secretary.
    (3) Controlling Officials shall exercise their authorities in strict 
compliance with the rules, prohibitions, and exemptions described in 
these regulations.
    (b) Criteria. Prior to a specific type of information being 
identified and controlled as UCNI, a Controlling Official shall insure 
that the information under review meets each of the following criteria:
    (1) The information is government information.
    (2) The information is limited to information concerning atomic 
energy defense programs.
    (3) The information is within the scope of at least one of the three 
categories of UCNI in Sec. 1017.8.
    (4) Unauthorized dissemination of the information under review meets 
the adverse effect test in Sec. 1017.9.
    (5) The information is the minimum amount of information necessary 
to be controlled to protect the health and safety of the public or the 
common defense and security.
    (6) The purpose for controlling the information is not prohibited 
under Sec. 1017.5.
    (7) The information is not exempt from these regulations under 
Sec. 1017.6.
    (c) Procedures. A Controlling Official shall report each 
determination to control or decontrol UCNI to the Assistant Secretary 
for Defense Programs for--
    (1) Inclusion in the quarterly report required in Sec. 1017.11; and
    (2) Incorporation into guidelines which Reviewing Officials consult 
in their review of documents and material for UCNI.



Sec. 1017.8  Categories of unclassified controlled nuclear information.

    In order for information to be considered for control as UCNI, it 
must be within the scope of at least one of the following categories and 
it must meet each of the other criteria in Sec. 1017.7(b).
    (a) Category A--Unclassified Controlled Production or Utilization 
Facility Design Information. This category includes certain unclassified 
government information concerning--
    (1) The design of production or utilization facilities which are 
related to atomic energy defense programs; or
    (2) Design-related operational information concerning the 
production, processing, or utilization of nuclear material for atomic 
energy defense programs.
    (b) Category B--Unclassified Controlled Safeguards and Security 
Information. This category includes certain unclassified government 
information concerning security measures for the protection of--
    (1) Production or utilization facilities related to atomic energy 
defense programs;
    (2) Nuclear material to be used for military applications, 
regardless of its

[[Page 635]]

physical state or form, contained in these facilities; or
    (3) Nuclear material to be used for military applications, 
regardless of its physical state or form, that is in transit.
    (c) Category C--Declassified Controlled Nuclear Weapon Information. 
This category includes certain declassified government information 
concerning the design, manufacture, or utilization of nuclear weapons or 
components of nuclear weapons that was once classified as Restricted 
Data but which has been declassified or removed from the Restricted Data 
Category by the Assistant Secretary for Defense Programs (or the head of 
predecessor agencies of the Department of Energy) under section 142 of 
the Atomic Energy Act.



Sec. 1017.9  Adverse effect test.

    (a) Determination. In order for a Controlling Official to control 
government information as UCNI, the Controlling Official shall make a 
determination that the unauthorized dissemination of the government 
information under review could reasonably be expected to result in a 
significant adverse effect on the health and safety of the public or the 
common defense and security by significantly increasing the likelihood 
of--
    (1) Illegal production of a nuclear weapon; or
    (2) Theft, diversion, or sabotage of nuclear material, equipment, or 
facilities.
    (b) Other factors. In making a determination under Sec. 1017.9(a), a 
Controlling Official may consider how the dissemination of government 
information under review for control as UCNI could assist a potential 
criminal in--
    (1) Selecting a target for an act of theft, diversion, or sabotage 
of nuclear material, equipment, or facilities (e.g., relative importance 
of a facility; location, form, and quantity of nuclear material);
    (2) Planning and committing an act of theft, diversion, or sabotage 
of nuclear material, equipment, or facilities (e.g., design of 
operational and security systems; building plans; methods and procedures 
for transfer, accountability, and handling of nuclear material; security 
plans, procedures, and capabilities);
    (3) Measuring the success of an act of theft, diversion or sabotage 
of nuclear material, equipment, or facilities (e.g., actual or 
hypothetical consequences of the sabotage of specific vital equipment or 
facilities);
    (4) Illegally fabricating, acquiring, or detonating a nuclear 
explosive device (e.g., unclassified nuclear weapon design information 
useful in designing a primitive nuclear device; location of unique 
nuclear materials needed to fabricate such a device; location of a 
nuclear weapon); or
    (5) Dispersing hazardous nuclear material which could be used as an 
environmental contaminant (e.g., location, form, and quantity of nuclear 
material).



Sec. 1017.10  Nuclear material determinations.

    (a) The Secretary may determine that a material other than special 
nuclear material, byproduct material, or source material as defined by 
the Atomic Energy Act is included within the scope of the term ``nuclear 
material'' if--
    (1) The material is used in the production, testing, utilization; or 
assembly of atomic weapons or components of atomic weapons; and
    (2) Unauthorized acquisition of the material could reasonably be 
expected to result in a significant adverse effect on the health and 
safety of the public or the common defense and security because the 
specific material--
    (i) Could be used as a hazardous environmental contaminant; or
    (ii) Could be of significant assistance in the illegal production of 
a nuclear weapon.
    (b) Designation of a material as a nuclear material under paragraph 
(a) of this section does not make all information about the material 
UCNI. Specific information about the material must still meet each of 
the criteria in Sec. 1017.7(b) prior to its being identified and 
controlled as UCNI.



Sec. 1017.11  Quarterly report.

    The Assistant Secretary for Defense Programs shall prepare a report 
on a quarterly basis, to be made available

[[Page 636]]

upon request to any interested person, detailing the application during 
the previous quarter of each regulation or order prescribed or issued 
under section 148 of the Atomic Energy Act, including these regulations. 
Requests for this report may be sent to the Assistant Secretary for 
Defense Programs (refer to Sec. 1017.16(b)(1) for the address).
    This report must--
    (a) Identify types of government information determined to be UCNI 
by any Controlling Official during the previous quarter;
    (b) Include a justification specifying why the government 
information is UCNI; and
    (c) Include a justification that these regulations have been applied 
so as to protect from disclosure only the minimum amount of government 
information necessary to protect the health and safety of the public or 
the common defense and security.



Sec. 1017.12  Review and denial of documents or material.

    (a) Reviewing Officials. A Reviewing Official with cognizance over 
the information contained in a document or material is authorized to--
    (1) Make a determination, based on guidelines which reflect 
decisions of Controlling Officials, that the document or material 
contains, does not contain, or no longer contains UCNI; and
    (2) Apply or remove UCNI markings to or from the document or 
material.
    (b) Denying Officials. A Denying Official with cognizance over the 
information contained in a document or material is authorized to deny a 
request made under a statute or Executive order for all or any portion 
of the document or material that contains UCNI. The Denying Official 
bases his or her denial on guidelines which reflect decisions of 
Controlling Officials. The Denying Official insures that the Reviewing 
Official who determined that the document or material contains UCNI 
correctly applied and interpreted the guidelines.
    (c) Designation. Reviewing and Denying Officials are designated in 
accordance with Departmental directives issued by the Secretary.



Sec. 1017.13  Retirement of documents or material.

    (a) Unmarked documents or material. Any document or material which 
is not marked as containing UCNI but which contains government 
information within the scope of the categories in Sec. 1017.8 shall be 
marked with the notice in Sec. 1017.15(a)(2) upon retirement to a 
repository (e.g., an agency's centralized records storage area, a 
Federal Records Center, the National Archives of the United States). The 
Secretary may approve alternative procedures to those described in this 
paragraph.
    (b) Marked documents or material. A document or material containing 
an UCNI notice (refer to Sec. 1017.15) is not required to be reviewed by 
a Reviewing Official upon or subsequent to retirement, except that a 
Reviewing Official shall review any retired document or material upon 
request for its release into the public domain.
    (c) Existing documents or material. Any document or material retired 
to a repository prior to the effective date of these regulations need 
not be reviewed for UCNI. However, any such document or material that is 
subsequently determined by a Reviewing Official to contain UCNI must be 
marked and protected by the repository in accordance with these 
regulations, upon notification from the Reviewing Official to the 
repository having the document or material.



Sec. 1017.14  Joint information, documents, or material.

    (a) Joint Information. A Controlling Official shall coordinate with 
any other Government agency or DOE organization having cognizance over 
the information under consideration for control or decontrol prior to 
making the determination that the information is or is no longer UCNI.
    (b) Joint documents or material. A Reviewing Official or a Denying 
Official reviewing a document or material for decontrol and public 
release shall coordinate this review with the DOE organization or 
Government agency originating the document or material and with each DOE 
organization or Government agency having cognizance over any information 
contained in the document or material.

[[Page 637]]

    (c) Resolution of disagreements. Since the DOE has overall 
cognizance over all UCNI and sole responsibility for implementation of 
section 148 of the Atomic Energy Act, the Secretary has the final 
authority to resolve all disagreements concerning--
    (1) The identification of UCNI that is within the cognizance of more 
than one DOE organization or of a Government agency in addition to the 
DOE; or
    (2) The control or decontrol or all or any part of any document or 
material originated by or for the DOE or another Government agency that 
contains UCNI.
    (d) Notification of determinations. An official making a 
determination concerning joint information, documents, or material shall 
inform affected organizations within the DOE or in other Government 
agencies of his or her determination.
    (e) Other government information control systems. A document 
containing information within the scope of section 148 of the Atomic 
Energy Act may also contain information within the scope of other 
government information control systems. Where this is the case, the 
requirements of the more restrictive system apply.



Sec. 1017.15  Markings on documents or material.

    (a) Documents or material which may contain UCNI. (1) Any person who 
originates or has in his or her possession a document or material that 
the person believes may contain UCNI, may mark in a conspicuous manner 
the document or material with the notice in the paragraph (a)(2) of this 
section prior to transmitting the document or material to a Reviewing 
Official for a formal determination.
    (2) Any Authorized Individual who originates or has in his or her 
possession a document or material that the Authorized Individual 
believes may contain UCNI, shall mark in a conspicuous manner the 
document or material with the following notice--
    (i) Prior to transmitting the document or material outside of the 
Authorized Individual's organization;
    (ii) Prior to transmitting the document or material to a Reviewing 
Official; or
    (iii) Upon the retirement of the document or material under 
Sec. 1017.13:

                      Not for Public Dissemination

    May contain Unclassified Controlled Nuclear Information subject to 
section 148 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 
2168). Approval by the Department of Energy prior to release is 
required.

    (b) Documents or material which contain UCNI. A Reviewing Official 
shall mark in a conspicuous manner each document or material that the 
Reviewing Official determines to contain UCNI with one of the following 
notices:

     (1) Unclassified Controlled Nuclear Information Not for Public 
                              Dissemination

    Unauthorized dissemination subject to civil and criminal sanctions 
under section 148 of the Atomic Energy Act of 1954, as amended (42 
U.S.C. 2168).

                    (2) Not for Public Dissemination

    Unauthorized dissemination subject to civil and criminal sanctions 
under 42 U.S.C. 2168.

    (c) Other markings. UCNI markings may be applied regardless of any 
other distribution control markings (e.g., ``Official Use Only,'' 
company proprietary) that are also on a document or material.



Sec. 1017.16  Access to unclassified controlled nuclear information.

    (a) Routine access. (1) A Reviewing Official is an Authorized 
Individual for documents or material that the Reviewing Official 
determines to contain UCNI.
    (2) An Authorized Individual, for UCNI in his or her possession or 
control, may determine that another person is an Authorized Individual 
who may be granted access to the UCNI, subject to the following 
limitations, and who may further disseminate the UCNI under the 
provisions of this section. The person to be granted routine access to 
the UCNI must--
    (i) Have a need-to-know in the performance of official duties or DOE 
authorized activities for the UCNI to which routine access is to be 
granted; and
    (ii) Be a U.S. citizen who is--
    (A) A Government employee or a member of the U.S. Armed Forces;

[[Page 638]]

    (B) An employee of a Government contractor or subcontractor, or of a 
prospective Government contractor or subcontractor for the purpose of 
bidding on a Government contract or subcontract;
    (C) A Government consultant or DOE advisory committee member;
    (D) A Member of Congress;
    (E) A staff member of a congressional committee or of an individual 
Member of Congress;
    (F) The Governor of a State, his or her designated representative, 
or a State government official;
    (G) A local government official or an Indian tribal government 
official;
    (H) A member of a State, local, or Indian tribal law enforcement or 
emergency response organization; or
    (I) A DOE access permittee authorized access by the Secretary under 
part 725 of this title to Restricted Data applicable to civil use of 
atomic energy; or
    (iii) Be a person who is not a U.S. citizen but who is--
    (A) A Government employee or a member of the U.S. Armed Forces;
    (B) An employee of a Government contractor or subcontractor; or
    (C) A Government consultant or DOE advisory committee member; or
    (iv) Be a person who is not a U.S. citizen but who may be granted 
routine access to UCNI by an Authorized Individual in conjunction with--
    (A) An international nuclear cooperative activity approved by the 
Government;
    (B) U.S. diplomatic dealings with foreign government officials;
    (C) An agreement for cooperation under section 123 of the Atomic 
Energy Act; or
    (D) Provisions of treaties, mutual defense acts, Government 
contracts or subcontracts.
    (3) The Secretary may impose additional administrative controls 
concerning the granting of routine access to UCNI by an Authorized 
Individual to a person who is not a U.S. citizen.
    (4) An Authorized Individual may only disseminate UCNI to another 
Authorized Individual or to a person granted special access to UCNI 
under paragraph (b) of this section.
    (5) The Assistant Secretary for Defense Programs may waive any of 
the requirements for determination of routine access to UCNI specified 
in paragraph (a) of this section.
    (b) Special access. (1) A person not authorized routine access to 
UCNI under paragraph (a) of this section may submit a request for 
special access to UCNI to the--

Assistant Secretary for Defense Programs, U.S. Department of Energy, 
    Washington, DC 20585

    (2) Such a request must include--
    (i) The name, current residence or business address, birthplace, 
birthdate, and country of citizenship of the person submitting the 
request;
    (ii) A description of the UCNI for which special access is being 
requested;
    (iii) A description of the purpose for which the UCNI is needed; and
    (iv) Certification by the requester of his or her understanding of 
and willingness to abide by these regulations.
    (3) The Assistant Secretary for Defense Programs shall base his or 
her decision to grant special access to UCNI on an evaluation of--
    (i) The sensitivity of the UCNI for which special access is being 
requested (i.e., the worst-case, adverse effect on the health and safety 
of the public or the common defense and security which would result from 
illegal use of the UCNI);
    (ii) The purpose for which the UCNI is needed (e.g., will the UCNI 
be used for commercial or other private purposes or will it be used for 
public benefit to fulfill statutory or regulatory responsibilities);
    (iii) The likelihood of unauthorized dissemination by the requester 
of the UCNI; and
    (iv) The likelihood of the requester using the UCNI for illegal 
purposes.
    (4) The Assistant Secretary for Defense Programs shall attempt to 
notify a person who requests special access to UCNI within 30 days of 
receipt of the request as to whether or not special access to the 
requested UCNI is granted. If a final determination on the request 
cannot be made within 30 days or receipt of the request, the Assistant 
Secretary for Defense Programs shall notify the requester, within 30 
days of the

[[Page 639]]

request, as to when the final determination on the request may be made.
    (5) A person granted special access to UCNI is not an Authorized 
Individual under paragraph (a) of this section and shall not further 
disseminate the UCNI.
    (c) Notification of responsibilities--(1) Routine access. An 
Authorized Individual granting routine access to UCNI to another person 
under paragraph (a) of this section shall notify each person granted 
such access (other than when the person being granted such access is a 
Government employee, a member of the U.S. Armed Forces, or an employee 
of a Government contractor or subcontractor) of applicable regulations 
and orders concerning UCNI and of any special redistribution limitations 
that the Authorized Individual determines to apply for the specific UCNI 
to which routine access is being granted.
    (2) Special access. The Assistant Secretary for Defense Programs 
shall notify each person granted special access to UCNI under paragraph 
(b) of this section of applicable regulations concerning UCNI prior to 
dissemination of the UCNI to the person.
    (d) Other persons. Persons not granted routine access to UCNI under 
paragraph (a) of this section or special access to UCNI under paragraph 
(b) of this section shall not have access to UCNI.



Sec. 1017.17  Physical protection requirements.

    (a) General. UCNI requires protection from unauthorized 
dissemination. UCNI must be protected and controlled in a manner 
consistent with that customarily accorded other types of unclassified 
but sensitive information (e.g., proprietary business information, 
personnel or medical records of employees, attorney-client information). 
Each Government agency and Government contractor authorized access to 
UCNI shall establish and maintain a system for the protection of UCNI in 
their possession or under their control that is consistent with the 
physical protection standards established in this section. Each 
Authorized Individual or person granted special access to UCNI under 
Sec. 1017.16(b) who receives, acquires, or produces UCNI or a document 
or material containing UCNI shall take reasonable and prudent steps to 
ensure that it is protected from unauthorized dissemination by adhering 
to these regulations and their implementing directives.
    (b) Protection in use or storage. An Authorized Individual or a 
person granted special access to UCNI under Sec. 1017.16(b) shall 
maintain physical control over any document or material containing an 
UCNI notice that is in use so as to prevent unauthorized access to it. 
When any document or material containing an UCNI notice is not in use, 
it must be stored in a secure container (e.g., locked desk or file 
cabinet) or in a location where access is limited (e.g., locked or 
guarded office, controlled access facility).
    (c) Reproduction. A document or material containing an UCNI notice 
may be reproduced to the minimum extent necessary consistent with the 
need to carry out official duties without permission of the originator, 
provided the reproduced document or material is marked and protected in 
the same manner as the original document or materials.
    (d) Destruction. A document or material containing an UCNI notice 
may be disposed of by any method which assures sufficiently complete 
destruction to prevent its retrieval (providing the disposal is 
authorized by the Archivist of the United States under 41 CFR 101-11.4 
and by agency records disposition schedules).
    (e) Transmission. (1) A document or material containing an UCNI 
notice must be packaged to prevent disclosure of the presence of UCNI 
when transmitted by a means which could allow access to the document or 
material by a person who is not an Authorized Individual or a person 
granted special access to UCNI under Sec. 1017.6(b). The address and 
return address must be indicated on the outside of the package.
    (2) A document or material containing an UCNI notice may be 
transmitted by--
    (i) U.S. first class, express, certified, or registered mail;
    (ii) Any means approved for the transmission of classified documents 
or material;

[[Page 640]]

    (iii) An Authorized Individual or a person granted special access to 
UCNI under Sec. 1017.16(b), when he or she can control access to the 
document or material being transmitted; or
    (iv) Any other means determined by the Assistant Secretary for 
Defense Programs to be sufficiently secure.
    (3) UCNI may be discussed or transmitted over an unprotected 
telephone or telecommunications circuit when required by operational 
considerations. More secure means of communication should be utilized 
whenever possible.
    (f) Automated Data Processing (ADP). UCNI may be processed or 
produced on any ADP system which is certified for classified information 
or which complies with the guidelines of Office of Management and Budget 
Circular No. A-71, ``Security of Federal Automated Information Systems'' 
or which has been approved for such use in accordance with the 
provisions of applicable DOE directives.



Sec. 1017.18  Violations.

    (a) Civil penalty. Any person who violates section 148 of the Atomic 
Energy Act or any regulation or order of the Secretary issued under 
section 148 of the Atomic Energy Act, including these regulations, is 
subject to a civil penalty. The Assistant Secretary for Defense Programs 
may recommend to the Secretary imposition of this civil penalty, which 
shall not exceed $110,000 for each violation.
    (1) Written notification. (i) Whenever the Assistant Secretary for 
Defense Programs believes that a person is subject to imposition of a 
civil penalty under the provisions of section 148b(1) of the Atomic 
Energy Act, the Assistant Secretary for Defense Programs shall notify 
the person in writing by certified mail, return receipt requested, of--
    (A) The date, facts, and nature of each act or omission with which 
the person is charged;
    (B) The particular provision of section 148 of the Atomic Energy Act 
or its implementing regulations or orders involved in the violation;
    (C) Each penalty which the Assistant Secretary for Defense Programs 
proposes to recommend the Secretary impose and its amount;
    (D) The right of the person to submit to the Assistant Secretary for 
Defense Programs the person's written reply to each of the allegations 
in the notification letter. The person shall mail or deliver any reply 
letter within twenty days of receipt of the notification letter from the 
Assistant Secretary for Defense Programs.
    (E) The right of the person to submit to the Assistant Secretary for 
Defense Programs a written request for a hearing under paragraph (a)(2) 
of this section.
    (F) The fact that, upon failure of the person to pay any civil 
penalty imposed by the Secretary, the penalty may be collected by civil 
action under paragraph (a)(5) of this section.
    (ii) The Assistant Secretary for Defense Programs shall respond in 
writing within ten days of the receipt of a reply or a hearing request 
letter.
    (iii) The Assistant Secretary for Defense Programs, at the request 
of the person accused of a violation, may extend for a reasonable period 
the time limit for submitting a reply or a hearing request letter.
    (2) Hearing. Any person who receives a notification letter under 
paragraph (a)(1)(i) of this section may request a hearing to answer 
under oath or affirmation the allegations contained in the notification 
letter. The person shall mail or deliver any hearing request letter to 
the Assistant Secretary for Defense Programs within twenty days of 
receipt of the notification letter. Upon receipt from the person of a 
written request for a hearing, the Assistant Secretary for Defense 
Programs shall request that the Secretary appoint a Hearing Officer and, 
if necessary, a Hearing Counsel.
    (i) The Hearing Counsel. The Hearing Counsel, if appointed, shall--
    (A) Represent the Department;
    (B) Consult with the person or the person's counsel prior to the 
hearing; and
    (C) Examine and cross-examine witnesses during the hearing.
    (ii) The Hearing Officer. The Hearing Officer shall--
    (A) Be responsible for the administrative preparations for the 
hearing;
    (B) Convene the hearing as soon as is reasonable;

[[Page 641]]

    (C) Conduct the hearing in a manner which is fair and impartial;
    (D) Arrange for the presence of witnesses and physical evidence at 
the hearing;
    (E) Make a recommendation that violation of section 148 of the 
Atomic Energy Act or any regulation or order of the Secretary issued 
under section 148 of the Atomic Energy Act, including these regulations, 
has occurred only if the DOE proves by the preponderance of the evidence 
that such a violation occurred; and
    (F) Submit his or her recommendation, accompanied by a statement of 
the findings and reasons supporting them, to the Secretary for the 
Secretary's final determination on the imposition of a civil penalty.
    (iii) Rights of the person. The person may--
    (A) Present evidence in his or her own behalf, through witnesses, or 
by documents;
    (B) Cross-examine witnesses and rebut records or other physical 
evidence (except as provided in paragraph (a)(2)(iv)(D) of this 
section);
    (C) Be present during the entire hearing (except as provided in 
paragraph (a)(2)(iv)(D) of this section);
    (D) Be accompanied, represented, and advised by counsel of his or 
her own choosing; and
    (E) Testify in his or her own behalf.
    (iv) Conduct of the Hearing.
    (A) A summarized record of the hearing shall be made.
    (B) All relevant and material evidence is admissible (except as 
provided in paragraph (a)(2)(iv)(D) of this section); however, formal 
rules of evidence are not applicable.
    (C) Witnesses shall testify under oath and are subject to cross-
examination (except as provided in paragraph (a)(2)(iv)(D) of this 
section).
    (D) If the Hearing Officer determines that the testimony of a 
witness or any documentary or physical evidence contains classified 
information or UCNI, such testimony or evidence will not be considered 
unless it is material. If it is material, a nonsensitive summary of the 
testimony or records or description of the physical evidence shall be 
made available to the person to the maximum extent possible, consistent 
with the requirements of national security or the public health and 
safety. In all such cases, the Hearing Officer, in considering such 
testimony or evidence, shall take into account that the person did not 
have an opportunity to cross-examine the witness or review the actual 
document or evidence.
    (E) The DOE bears the burden of proving that a violation of section 
148 of the Atomic Energy Act or any regulation or order of the Secretary 
issued under section 148 of the Atomic Energy Act, including these 
regulations, has occurred.
    (v) Failure to request a hearing. If the person fails to file a 
written request for a hearing within the specified time period, the 
person relinquishes his or her right to a hearing. If the person does 
not request a hearing, the Assistant Secretary for Defense Programs 
shall transmit his or her recommendation, with any supporting materials, 
to the Secretary for the Secretary's final determination on the 
imposition of the civil penalty.
    (3) Final determination. The Secretary makes the final determination 
on the disposition of a violation. The Secretary may uphold, compromise 
or mitigate, or remit any penalty recommended by the Assistant Secretary 
for Defense Programs.
    (4) Appeal. A person whom the Secretary has determined violated 
section 148 of the Atomic Energy Act or any regulations or orders of the 
Secretary issued under section 148 of the Atomic Energy Act, including 
these regulations, may appeal the determination of the Secretary to an 
appropriate United States District Court.
    (5) Collection of Penalty. (i) The Secretary may request the 
Attorney General to institute a civil action to collect a penalty 
imposed by the Secretary under this section.
    (ii) The Attorney General has the exclusive power to uphold, 
compromise or mitigate, or remit any civil penalty imposed by the 
Secretary under this section and referred to the Attorney General for 
collection.
    (b) Criminal penalty. Any person who violates section 148 of the 
Atomic Energy Act or any regulations or orders of the Secretary issued 
under section

[[Page 642]]

148 of the Atomic Energy Act, including these regulations may be subject 
to a criminal penalty under section 223 of the Atomic Energy Act. In 
such case, the Secretary refers the matter to the Attorney General for 
investigation and possible prosecution.
[50 FR 15822, Apr. 22, 1985, as amended at 62 FR 46184, Sept. 2, 1997]



PART 1018--REFERRAL OF DEBTS TO IRS FOR TAX REFUND OFFSET--Table of Contents




Sec.
1018.1  Purpose.
1018.2  Applicability and scope.
1018.3  Administrative charges.
1018.4  Notice requirement before offset.
1018.5  Review within the Department.
1018.6  Departmental determination.
1018.7  Stay of offset.

    Authority: 31 U.S.C. 3720A; Pub. L. 98-369; 98 Stat. 1153.

    Source: 54 FR 773, Jan. 9, 1989 (interim), unless otherwise noted.



Sec. 1018.1  Purpose.

    This part establishes procedures for the Department of Energy (DOE) 
to refer past-due debts to the Internal Revenue Service (IRS) for offset 
against the income tax refunds of persons owing debts to DOE. It 
specifies the agency procedures and the rights of the debtor applicable 
to claims for the payment of debts owed to DOE.



Sec. 1018.2  Applicability and scope.

    (a) These regulations implement 31 U.S.C. 3720A which authorizes the 
IRS to reduce a tax refund by the amount of a past-due legally 
enforceable debt owed to the United States.
    (b) For purposes of this section, a past-due legally enforceable 
debt referable to the IRS is a debt which is owed to the United States 
and:
    (1) Except in the case of a judgment debt, has been delinquent for 
at least three months but has not been delinquent for more than ten 
years at the time the offset is made;
    (2) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (3) Is ineligible for administrative offset under 31 U.S.C. 3716(a) 
by reason of 31 U.S.C. 3716(c)(2) or cannot be collected by 
administrative offset under 31 U.S.C. 3716(a) by the Department against 
amounts payable to or on behalf of the debtor by or on behalf of the 
Dapartment;
    (4) With respect to which DOE has given the taxpayer at least 60 
days from the date of notification to present evidence that all or part 
of the debt is not past-due or legally enforceable, has considered 
evidence presented by such taxpayer, and has determined that an amount 
of such debt is past-due and legally enforceable;
    (5) Has been disclosed by DOE to a consumer reporting agency as 
authorized by 31 U.S.C. 3711(f), unless a consumer reporting agency 
would be prohibited from using such information by 15 U.S.C. 1681c, or 
unless the amount of the debt does not exceed $100.00;
    (6) With respect to which DOE has notified or has made a reasonable 
attempt to notify the taxpayer that the debt is past-due and, unless 
repaid within 60 days thereafter, the debt will be referred to the IRS 
for offset against any overpayment of tax;
    (7) Is at least $25.00;
    (8) All other requirements of 31 U.S.C. 3720A and the Department of 
the Treasury regulations codified at 26 CFR 301.6402-6T relating to the 
eligibility of a debt for tax return offset have been satisfied.



Sec. 1018.3  Administrative charges.

    In accordance with 10 CFR part 1015, all administrative charges 
incurred in connection with the referral of the debts to the IRS shall 
be assessed on the debt and thus increase the amount of the offset.



Sec. 1018.4  Notice requirement before offset.

    A request for reduction of an IRS tax refund will be made only after 
the DOE makes a determination that an amount is owed and past-due and 
provides the debtor with 60 days written notice. The DOE's notice of 
intention to collect by IRS tax refund offset (Notice of Intent) will 
state:
    (a) The amount of the debt;
    (b) That unless the debt is repaid within 60 days from the date of 
the DOE's Notice of Intent, DOE intends to collect the debt by 
requesting the IRS to reduce any amounts payable to the

[[Page 643]]

debtor as refunds of Federal taxes paid by an amount equal to the amount 
of the debt and all accumulated interest and other charges;
    (c) That the debtor has a right to present evidence that all or part 
of the debt is not past-due or legally enforceable; and
    (d) A mailing address for forwarding any written correspondence and 
a contact name and phone number for any questions.



Sec. 1018.5  Review within the Department.

    (a) Notification by debtor. A debtor who receives a Notice of Intent 
has the right to present evidence that all or part of the debt is not 
past-due or not legally enforceable. To exercise this right, the debtor 
must:
    (1) Send a written request for a review of the evidence to the 
address provided in the notice.
    (2) State in the request the amount disputed and the reasons why the 
debtor believes that the debt is not past-due or is not legally 
enforceable.
    (3) Include in the request any documents which the debtor wishes to 
be considered or state that additional information will be submitted 
within the remainder of the 60-day period.
    (b) Submission of evidence. The debtor may submit evidence showing 
that all or part of the debt is not past-due or not legally enforceable 
along with the notification required by paragraph (a) of this section. 
Failure to submit the notification and evidence within 60 days will 
result in an automatic referral of the debt to the IRS without further 
action by DOE.
    (c) Review of the evidence. DOE will consider all available evidence 
related to the debt. Within 30 days, if feasible, DOE will notify the 
debtor whether DOE has sustained, amended, or cancelled its 
determination that the debt is past-due and legally enforceable.



Sec. 1018.6  Departmental determination.

    (a) Following review of the evidence, DOE will issue a written 
decision which will include the supporting rationale for the decision.
    (b) If DOE either sustains or amends its determination, it shall 
notify the debtor of its intent to refer the debt to the IRS for offset 
against the debtor's Federal income tax refund. If DOE cancels its 
original determination, the debt will not be referred to IRS.



Sec. 1018.7  Stay of offset.

    If the debtor timely notifies the DOE that he or she is exercising 
the right described in Sec. 1018.5(a) of this part and timely submits 
evidence in accordance with Sec. 1018.5(b) of this part, any notice to 
the IRS will be stayed until the issuance of a written decision which 
sustains or amends its original determination.



PART 1021--NATIONAL ENVIRONMENTAL POLICY ACT IMPLEMENTING PROCEDURES--Table of Contents




                           Subpart A--General

Sec.
1021.100  Purpose.
1021.101  Policy.
1021.102  Applicability.
1021.103  Adoption of CEQ NEPA regulations.
1021.104  Definitions.
1021.105  Oversight of Agency NEPA activities.

                      Subpart B--DOE Decisionmaking

1021.200  DOE planning.
1021.210  DOE decisionmaking.
1021.211  Interim actions: Limitations on actions during the NEPA 
          process.
1021.212  Research, development, demonstration, and testing.
1021.213  Rulemaking.
1021.214  Adjudicatory proceedings.
1021.215  Applicant process.
1021.216  Procurement, financial assistance, and joint ventures.

                   Subpart C--Implementing Procedures

1021.300  General requirements.
1021.301  Agency review and public participation.
1021.310  Environmental impact statements.
1021.311  Notice of intent and scoping.
1021.312  [Reserved]
1021.313  Public review of environmental impact statements.
1021.314  Supplemental environmental impact statements.
1021.315  Records of decision.
1021.320  Environmental assessments.
1021.321  Requirements for environmental assessments.
1021.322  Findings of no significant impact.
1021.330  Programmatic (including site-wide) NEPA documents.

[[Page 644]]

1021.331  Mitigation action plans.
1021.340  C1assified, confidential, and otherwise exempt information.
1021.341  Coordination with other environmental review requirements.
1021.342  Interagency cooperation.
1021.343  Variances.

                  Subpart D--Typical Classes of Actions

1021.400  Level of NEPA review.
1021.410  Application of categorical exclusions (classes of actions that 
          normally do not require EAs or EISs).

Appendix A to Subpart D to Part 1021--Categorical Exclusions Applicable 
          to General Agency Actions
Appendix B to Subpart D to Part 1021--Categorical Exclusions Applicable 
          to Specific Agency Actions
Appendix C to Subpart D to Part 1021--Classes of Actions that Normally 
          Require EAs but not Necessarily EISs
Appendix D to Subpart D to Part 1021--Classes of Actions that Normally 
          Require EISs

    Authority: 42 U.S.C. 7254; 42 U.S.C. 4321 et seq.

    Source: 57 FR 15144, Apr. 24, 1992, unless otherwise noted.



                           Subpart A--General



Sec. 1021.100  Purpose.

    The purpose of this part is to establish procedures that the 
Department of Energy (DOE) shall use to comply with section 102(2) of 
the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4332(2)) 
and the Council on Environmental Quality (CEQ) regulations for 
implementing the procedural provisions of NEPA (40 CFR parts 1500-1508). 
This part supplements, and is to be used in conjunction with, the CEQ 
Regulations.



Sec. 1021.101  Policy.

    It is DOE's policy to follow the letter and spirit of NEPA; comply 
fully with the CEQ Regulations; and apply the NEPA review process early 
in the planning stages for DOE proposals.



Sec. 1021.102  Applicability.

    (a) This part applies to all organizational elements of DOE except 
the Federal Energy Regulatory Commission.
    (b) This part applies to any DOE action affecting the quality of the 
environment of the United States, its territories or possessions. DOE 
actions having environmental effects outside the United States, its 
territories or possessions are subject to the provisions of Executive 
Order 12114, ``Environmental Effects Abroad of Major Federal Actions'' 
(3 CFR, 1979 Comp., p. 356; 44 FR 1957, January 4, 1979), DOE guidelines 
implementing that Executive Order (46 FR 1007, January 5, 1981), and the 
Department of State's ``Unified Procedures Applicable to Major Federal 
Actions Relating to Nuclear Activities Subject to Executive Order 
12114'' (44 FR 65560, November 13, 1979).



Sec. 1021.103  Adoption of CEQ NEPA regulations.

    DOE adopts the regulations for implementing NEPA published by CEQ at 
40 CFR parts 1500 through 1508.



Sec. 1021.104  Definitions.

    (a) The definitions set forth in 40 CFR part 1508 are referenced and 
used in this part.
    (b) In addition to the terms defined in 40 CFR part 1508, the 
following definitions apply to this part:
    Action means a project, program, plan, or policy, as discussed at 40 
CFR 1508.18, that is subject to DOE's control and responsibility. Not 
included within this definition are purely ministerial actions with 
regard to which DOE has no discretion. For example, ministerial actions 
to implement congressionally mandated funding for actions not proposed 
by DOE and as to which DOE has no discretion (i.e., statutorily 
mandated, congressionally initiated ``passthroughs'').
    Advance NOI means a formal public notice of DOE's intent to prepare 
an EIS, which is published in advance of an NOI in order to facilitate 
public involvement in the NEPA process.
    American Indian tribe means any Indian tribe, band, nation, pueblo, 
or other organized group or community, including any Alaska native 
entity, which is recognized as eligible for the special programs or 
services provided by the United States because of their status as 
Indians.
    Categorical exclusion means a category of actions, as defined at 40 
CFR 1508.4 and listed in appendix A or B to

[[Page 645]]

subpart D of this part, for which neither an EA nor an EIS is normally 
required.
    CEQ means the Council on Environmental Quality as defined at 40 CFR 
1508.6.
    CEQ Regulations means the regulations issued by CEQ (40 CFR parts 
1500-1508) to implement the procedural provisions of NEPA.
    CERCLA-excluded petroleum and natural gas products means petroleum, 
including crude oil or any fraction thereof, that is not otherwise 
specifically listed or designated as a hazardous substance under section 
101(14) of the Comprehensive Environmental Response, Compensation, and 
Liability Act (CERCLA) (42 U.S.C. 9601.101(14)) and natural gas, natural 
gas liquids, liquefied natural gas, or synthetic gas usable for fuel or 
of pipeline quality (or mixtures of natural gas and such synthetic gas).
    Contaminant means a substance identified within the definition of 
contaminant in section 101(33) of CERCLA (42 U.S.C. 9601.101(33)).
    Day means a calendar day.
    DOE means the U.S. Department of Energy.
    DOE proposal (or proposal) means a proposal, as discussed at 40 CFR 
1508.23 (whether initiated by DOE, another Federal agency, or an 
applicant), for an action, if the proposal requires a DOE decision.
    EA means an environmental assessment as defined at 40 CFR 1508.9.
    EIS means an environmental impact statement as defined at 40 CFR 
1508.11, or, unless this part specifically provides otherwise, a 
Supplemental EIS.
    EPA means the U.S. Environmental Protection Agency.
    FONSI means a Finding of No Significant Impact as defined at 40 CFR 
1508.13.
    Hazardous substance means a substance identified within the 
definition of hazardous substances in section 101(14) of CERCLA (42 
U.S.C. 9601.101(14)). Radionuclides are hazardous substances through 
their listing under section 112 of the Clean Air Act (42 U.S.C. 7412) 
(40 CFR part 61, subpart H).
    Host state means a state within whose boundaries DOE proposes an 
action at an existing facility or construction or operation of a new 
facility.
    Host tribe means an American Indian tribe within whose tribal lands 
DOE proposes an action at an existing facility or construction or 
operation of a new facility. For purposes of this definition, tribal 
lands means the area of ``Indian country,'' as defined in 18 U.S.C. 
1151, that is under the tribe's jurisdiction. That section defines 
Indian country as:
    (i) All land within the limits of any Indian reservation under the 
jurisdiction of the United States government, notwithstanding the 
issuance of any patent, and including rights-of-way running through the 
reservation;
    (ii) All dependent Indian communities within the borders of the 
United States whether within the original or subsequently acquired 
territory thereof, and whether within or without the limits of a state; 
and
    (iii) All Indian allotments, the Indian titles to which have not 
been extinguished, including rights-of-way running through the same.
    Interim action means an action concerning a proposal that is the 
subject of an ongoing EIS and that DOE proposes to take before the ROD 
is issued, and that is permissible under 40 CFR 1506.1: Limitations on 
actions during the NEPA process.
    Mitigation Action Plan means a document that describes the plan for 
implementing commitments made in a DOE EIS and its associated ROD, or, 
when appropriate, an EA or FONSI, to mitigate adverse environmental 
impacts associated with an action.
    NEPA means the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.).
    NEPA document means a DOE NOI, EIS, ROD, EA, FONSI, or any other 
document prepared pursuant to a requirement of NEPA or the CEQ 
Regulations.
    NEPA review means the process used to comply with section 102(2) of 
NEPA.
    NOI means a Notice of Intent to prepare an EIS as defined at 40 CFR 
1508.22.
    Notice of Availability means a formal notice, published in the 
Federal Register, that announces the issuance and public availability of 
a draft or final

[[Page 646]]

EIS. The EPA Notice of Availability is the official public notification 
of an EIS; a DOE Notice of Availability is an optional notice used to 
provide information to the public.
    Pollutant means a substance identified within the definition of 
pollutant in section 101(33) of CERCLA (42 U.S.C. 9601.101(33)).
    Program means a sequence of connected or related DOE actions or 
projects as discussed at 40 CFR 1508.18(b)(3) and 1508.25(a).
    Programmatic NEPA document means a broad-scope EIS or EA that 
identifies and assesses the environmental impacts of a DOE program; it 
may also refer to an associated NEPA document, such as an NOI, ROD, or 
FONSI.
    Project means a specific DOE undertaking including actions approved 
by permit or other regulatory decision as well as Federal and federally 
assisted activities, which may include design, construction, and 
operation of an individual facility; research, development, 
demonstration, and testing for a process or product; funding for a 
facility, process, or product; or similar activities, as discussed at 40 
CFR 1508.18(b)(4).
    ROD means a Record of Decision as described at 40 CFR 1505.2.
    Scoping means the process described at 40 CFR 1501.7; ``public 
scoping process'' refers to that portion of the scoping process where 
the public is invited to participate, as described at 40 CFR 1501.7 
(a)(1) and (b)(4).
    Site-wide NEPA document means a broad-scope EIS or EA that is 
programmatic in nature and identifies and assesses the individual and 
cumulative impacts of ongoing and reasonably foreseeable future actions 
at a DOE site; it may also refer to an associated NEPA document, such as 
an NOI, ROD, or FONSI.
    Supplement Analysis means a DOE document used to determine whether a 
supplemental EIS should be prepared pursuant to 40 CFR 1502.9(c), or to 
support a decision to prepare a new EIS.
    Supplemental EIS means an EIS prepared to supplement a prior EIS as 
provided at 40 CFR 1502.9(c).
    The Secretary means the Secretary of Energy.
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36239, July 9, 1996]



Sec. 1021.105  Oversight of Agency NEPA activities.

    The Assistant Secretary for Environment, Safety and Health, or his/
her designee, is responsible for overall review of DOE NEPA compliance. 
Further information on DOE's NEPA process and the status of individual 
NEPA reviews may be obtained upon request from the Office of NEPA Policy 
and Assistance, U.S. Department of Energy, 1000 Independence Avenue, 
SW., Washington, DC 20585-0119.
[61 FR 36239, July 9, 1996]



                      Subpart B--DOE Decisionmaking



Sec. 1021.200  DOE planning.

    (a) DOE shall provide for adequate and timely NEPA review of DOE 
proposals, including those for programs, policies, projects, 
regulations, orders, or legislation, in accordance with 40 CFR 1501.2 
and this section. In its planning for each proposal, DOE shall include 
adequate time and funding for proper NEPA review and for preparation of 
anticipated NEPA documents.
    (b) DOE shall begin its NEPA review as soon as possible after the 
time that DOE proposes an action or is presented with a proposal.
    (c) DOE shall determine the level of NEPA review required for a 
proposal in accordance with Sec. 1021.300 and subpart D of this part.
    (d) During the development and consideration of a DOE proposal, DOE 
shall review any relevant planning and decisionmaking documents, whether 
prepared by DOE or another agency, to determine if the proposal or any 
of its alternatives are considered in a prior NEPA document. If so, DOE 
shall consider adopting the existing document, or any pertinent part 
thereof, in accordance with 40 CFR 1506.3.



Sec. 1021.210  DOE decisionmaking.

    (a) For each DOE proposal, DOE shall coordinate its NEPA review with 
its decisionmaking. Sections 1021.211 through 1021.214 of this part 
specify

[[Page 647]]

how DOE will coordinate its NEPA review with decision points for certain 
types of proposals (40 CFR 1505.1(b)).
    (b) DOE shall complete its NEPA review for each DOE proposal before 
making a decision on the proposal (e.g., normally in advance of, and for 
use in reaching, a decision to proceed with detailed design), except as 
provided in 40 CFR 1506.1 and Secs. 1021.211 and 1021.216 of this part.
    (c) During the decisionmaking process for each DOE proposal, DOE 
shall consider the relevant NEPA documents, public and agency comments 
(if any) on those documents, and DOE responses to those comments, as 
part of its consideration of the proposal (40 CFR 1505.1(d)) and shall 
include such documents, comments, and responses as part of the 
administrative record (40 CFR 1505.1(c)).
    (d) If an EIS or EA is prepared for a DOE proposal, DOE shall 
consider the alternatives analyzed in that EIS or EA before rendering a 
decision on that proposal; the decision on the proposal shall be within 
the range of alternatives analyzed in the EA or EIS (40 CFR 1505.1(e)).
    (e) When DOE uses a broad decision (such as one on a policy or 
program) as a basis for a subsequent narrower decision (such as one on a 
project or other site-specific proposal), DOE may use tiering (40 CFR 
1502.20) and incorporation of material by reference (40 CFR 1502.21) in 
the NEPA review for the subsequent narrower proposal.



Sec. 1021.211  Interim actions: Limitations on actions during the NEPA process.

    While DOE is preparing an EIS that is required under 
Sec. 1021.300(a) of this part, DOE shall take no action concerning the 
proposal that is the subject of the EIS before issuing an ROD, except as 
provided at 40 CFR 1506.1. Actions that are covered by, or are a part 
of, a DOE proposal for which an EIS is being prepared shall not be 
categorically excluded under subpart D of these regulations unless they 
qualify as interim actions under 40 CFR 1506.1.



Sec. 1021.212  Research, development, demonstration, and testing.

    (a) This section applies to the adoption and application of programs 
that involve research, development, demonstration, and testing for new 
technologies (40 CFR 1502.4(c)(3)). Adoption of such programs might also 
lead to commercialization or other broad-scale implementation by DOE or 
another entity.
    (b) For any proposed program described in paragraph (a) of this 
section, DOE shall begin its NEPA review (if otherwise required by this 
part) as soon as environmental effects can be meaningfully evaluated, 
and before DOE has reached the level of investment or commitment likely 
to determine subsequent development or restrict later alternatives, as 
discussed at 40 CFR 1502.4(c)(3).
    (c) For subsequent phases of development and application, DOE shall 
prepare one or more additional NEPA documents (if otherwise required by 
this part).



Sec. 1021.213  Rulemaking.

    (a) This section applies to regulations promulgated by DOE.
    (b) DOE shall begin its NEPA review of a proposed rule (if otherwise 
required by this part) while drafting the proposed regulation, and as 
soon as environmental effects can be meaningfully evaluated.
    (c) DOE shall include any relevant NEPA documents, public and agency 
comments (if any) on those documents, and DOE responses to those 
comments, as part of the administrative record (40 CFR 1505.1(c)).
    (d) If an EIS is required, DOE will normally publish the draft EIS 
at the time it publishes the proposed rule (40 CFR 1502.5(d)). DOE will 
normally combine any public hearings required for a proposed rule with 
the public hearings required on the draft EIS under Sec. 1021.313 of 
this part. The draft EIS need not accompany notices of inquiry or 
advance notices of proposed rulemaking that DOE may use to gather 
information during early stages of regulation development. When engaged 
in

[[Page 648]]

rulemaking for the purpose of protecting the public health and safety, 
DOE may issue the final rule simultaneously with publication of the EPA 
Notice of Availability of the final EIS in accordance with 40 CFR 
1506.10(b).
    (e) If an EA is required, DOE will normally complete the EA and 
issue any related FONSI prior to or simultaneously with issuance of the 
proposed rule; however, if the EA leads to preparation of an EIS, the 
provisions of paragraph (d) of this section shall apply.



Sec. 1021.214  Adjudicatory proceedings.

    (a) This section applies to DOE proposed actions that involve DOE 
adjudicatory proceedings, excluding judicial or administrative civil or 
criminal enforcement actions.
    (b) DOE shall complete its NEPA review (if otherwise required by 
this part) before rendering any final adjudicatory decision. If an EIS 
is required, the final EIS will normally be completed at the time of or 
before final staff recommendation, in accordance with 40 CFR 1502.5(c).
    (c) DOE shall include any relevant NEPA documents, public and agency 
comments (if any) on those documents, and DOE responses to those 
comments, as part of the administrative record (40 CFR 1505.1(c)).



Sec. 1021.215  Applicant process.

    (a) This section applies to actions that involve application to DOE 
for a permit, license, exemption or allocation, or other similar 
actions, unless the action is categorically excluded from preparation of 
an EA or EIS under subpart D of this part.
    (b) The applicant shall:
    (1) Consult with DOE as early as possible in the planning process to 
obtain guidance with respect to the appropriate level and scope of any 
studies or environmental information that DOE may require to be 
submitted as part of, or in support of, the application;
    (2) Conduct studies that DOE deems necessary and appropriate to 
determine the environmental impacts of the proposed action;
    (3) Consult with appropriate Federal, state, regional and local 
agencies, American Indian tribes and other potentially interested 
parties during the preliminary planning stages of the proposed action to 
identify environmental factors and permitting requirements;
    (4) Notify DOE as early as possible of other Federal, state, 
regional, local or American Indian tribal actions required for project 
completion to allow DOE to coordinate the Federal environmental review, 
and fulfill the requirements of 40 CFR 1506.2 regarding elimination of 
duplication with state and local procedures, as appropriate;
    (5) Notify DOE of private entities and organizations interested in 
the proposed undertaking, in order that DOE can consult, as appropriate, 
with these parties in accordance with 40 CFR 1501.2(d)(2); and
    (6) Notify DOE if, before DOE completes the environmental review, 
the applicant plans to take an action that is within DOE's jurisdiction 
that may have an adverse environmental impact or limit the choice of 
alternatives. If DOE determines that the action would have an adverse 
environmental impact or would limit the choice of reasonable 
alternatives under 40 CFR 1506.1(a), DOE will promptly notify the 
applicant that DOE will take appropriate action to ensure that the 
objectives and procedures of NEPA are achieved in accordance with 40 CFR 
1506.1(b).
    (c) For major categories of DOE actions involving a large number of 
applicants, DOE may prepare and make available generic guidance 
describing the recommended level and scope of environmental information 
that applicants should provide.
    (d) DOE shall begin its NEPA review (if otherwise required by this 
part) as soon as possible after receiving an application described in 
paragraph (a) of this section, and shall independently evaluate and 
verify the accuracy of information received from an applicant in 
accordance with 40 CFR 1506.5(a). At DOE's option, an applicant may 
prepare an EA in accordance with 40 CFR 1506.5(b). If an EIS is 
prepared, the EIS shall be prepared by DOE or by a contractor that is 
selected by DOE and that may be funded by the applicant, in accordance 
with 40 CFR 1506.5(c). The contractor shall provide a disclosure 
statement in accordance with 40 CFR 1506.5(c), as discussed in 
Sec. 1021.312(b)(4)

[[Page 649]]

of this part. DOE shall complete any NEPA documents (or evaluation of 
any EA prepared by the applicant) before rendering a final decision on 
the application and shall consider the NEPA document in reaching its 
decision, as provided in Sec. 1021.210 of this part.



Sec. 1021.216  Procurement, financial assistance, and joint ventures.

    (a) This section applies to DOE competitive and limited-source 
procurements, to awards of financial assistance by a competitive 
process, and to joint ventures entered into as a result of competitive 
solicitations, unless the action is categorically excluded from 
preparation of an EA or EIS under subpart D of this part. Paragraphs 
(b), (c), and (i) of this section apply as well to DOE sole-source 
procurements of sites, systems, or processes, to noncompetitive awards 
of financial assistance, and to sole-source joint ventures, unless the 
action is categorically excluded from preparation of an EA or EIS under 
subpart D of this part.
    (b) When relevant in DOE's judgment, DOE shall require that 
offeror's submit environmental data and analyses as a discrete part of 
the offeror's proposal. DOE shall specify in its solicitation document 
the type of information and level of detail for environmental data and 
analyses so required. The data will be limited to those reasonably 
available to offerors.
    (c) DOE shall independently evaluate and verify the accuracy of 
environmental data and analyses submitted by offerors.
    (d) For offers in the competitive range, DOE shall prepare and 
consider an environmental critique before the selection.
    (e) The environmental critique will be subject to the 
confidentiality requirements of the procurement process.
    (f) The environmental critique will evaluate the environmental data 
and analyses submitted by offerors; it may also evaluate supplemental 
information developed by DOE as necessary for a reasoned decision.
    (g) The environmental critique will focus on environmental issues 
that are pertinent to a decision on proposals and will include:
    (1) A brief discussion of the purpose of the procurement and each 
offer, including any site, system, or process variations among the 
offers having environmental implications;
    (2) A discussion of the salient characteristics of each offeror's 
proposed site, system, or process as well as alternative sites, systems, 
or processes;
    (3) A brief comparative evaluation of the potential environmental 
impacts of the offers, which will address direct and indirect effects, 
short-term and long-term effects, proposed mitigation measures, adverse 
effects that cannot be avoided, areas where important environmental 
information is incomplete and unavailable, unresolved environmental 
issues and practicable mitigating measures not included in the offeror's 
proposal; and
    (4) To the extent known for each offer, a list of Federal, Tribal, 
state, and local government permits, licenses, and approvals that must 
be obtained.
    (h) DOE shall prepare a publicly available environmental synopsis, 
based on the environmental critique, to document the consideration given 
to environmental factors and to record that the relevant environmental 
consequences of reasonable alternatives have been evaluated in the 
selection process. The synopsis will not contain business, confidential, 
trade secret or other information that DOE otherwise would not disclose 
pursuant to 18 U.S.C. 1905, the confidentiality requirements of the 
competitive procurement process, 5 U.S.C. 552(b) and 41 U.S.C. 423. To 
assure compliance with this requirement, the synopsis will not contain 
data or other information that may in any way reveal the identity of 
offerors. After a selection has been made, the environmental synopsis 
shall be filed with EPA, shall be made publicly available, and shall be 
incorporated in any NEPA document prepared under paragraph (i) of this 
section.
    (i) If an EA or EIS is required, DOE shall prepare, consider and 
publish the EA or EIS in conformance with the CEQ Regulations and other 
provisions of this part before taking any action pursuant to the 
contract or award of financial assistance (except as provided

[[Page 650]]

at 40 CFR 1506.1 and Sec. 1021.211 of this part). If the NEPA process is 
not completed before the award of the contract, financial assistance, or 
joint venture, then the contract, financial assistance, or joint venture 
shall be contingent on completion of the NEPA process (except as 
provided at 40 CFR 1506.1 and Sec. 1021.211 of this part). DOE shall 
phase subsequent contract work to allow the NEPA review process to be 
completed in advance of a go/no-go decision.



                   Subpart C--Implementing Procedures



Sec. 1021.300  General requirements.

    (a) DOE shall determine, under the procedures in the CEQ Regulations 
and this part, whether any DOE proposal:
    (1) Requires preparation of an EIS;
    (2) Requires preparation of an EA; or
    (3) Is categorically excluded from preparation of either an EIS or 
an EA.

DOE shall prepare any pertinent documents as required by NEPA, the CEQ 
Regulations, or this part.
    (b) Notwithstanding any other provision of these regulations, DOE 
may prepare a NEPA document for any DOE action at any time in order to 
further the purposes of NEPA. This may be done to analyze the 
consequences of ongoing activities, support DOE planning, assess the 
need for mitigation, fully disclose the potential environmental 
consequences of DOE actions, or for any other reason. Documents prepared 
under this paragraph shall be prepared in the same manner as DOE 
documents prepared under paragraph (a) of this section.



Sec. 1021.301  Agency review and public participation.

    (a) DOE shall make its NEPA documents available to other Federal 
agencies, states, local governments, American Indian tribes, interested 
groups, and the general public, in accordance with 40 CFR 1506.6, except 
as provided in Sec. 1021.340 of this part.
    (b) Wherever feasible, DOE NEPA documents shall explain technical, 
scientific, or military terms or measurements using terms familiar to 
the general public, in accordance with 40 CFR 1502.8.
    (c) DOE shall notify the host state and host tribe of a DOE 
determination to prepare an EA or EIS for a DOE proposal, and may notify 
any other state or American Indian tribe that, in DOE's judgment, may be 
affected by the proposal.
    (d) DOE shall provide the host state and host tribe with an 
opportunity to review and comment on any DOE EA prior to DOE's approval 
of the EA. DOE may also provide any other state or American Indian tribe 
with the same opportunity if, in DOE's judgment, the state or tribe may 
be affected by the proposed action. At DOE's discretion, this review 
period shall be from 14 to 30 days. DOE shall consider all comments 
received from a state or tribe during the review period before approving 
or modifying the EA, as appropriate. If all states and tribes afforded 
this opportunity for preapproval review waive such opportunity, or 
provide a response before the end of the comment period, DOE may proceed 
to approve or take other appropriate action on the EA before the end of 
the review period.
    (e) Paragraphs (c) and (d) of this section shall not apply to power 
marketing actions, such as rate-setting, in which a state or American 
Indian tribe is a customer, or to any other circumstances where DOE 
determines that such advance information could create a conflict of 
interest.



Sec. 1021.310  Environmental impact statements.

    DOE shall prepare and circulate EISs and related RODs in accordance 
with the requirements of the CEQ Regulations, as supplemented by this 
subpart. DOE shall include in draft and final EISs a disclosure 
statement executed by any contractor (or subcontractor) under contract 
with DOE to prepare the EIS document, in accordance with 40 CFR 
1506.5(c).
[61 FR 36239, July 9, 1996]



Sec. 1021.311  Notice of intent and scoping.

    (a) DOE shall publish an NOI in the Federal Register in accordance 
with 40 CFR 1501.7 and containing the elements specified in 40 CFR 
1508.22 as soon as practicable after a decision is made to prepare an 
EIS. However, if

[[Page 651]]

there will be a lengthy period of time between its decision to prepare 
an EIS and the time of actual preparation, DOE may defer publication of 
the NOI until a reasonable time before preparing the EIS, provided that 
DOE allows a reasonable opportunity for interested parties to 
participate in the EIS process. Through the NOI, DOE shall invite 
comments and suggestions on the scope of the EIS. DOE shall disseminate 
the NOI in accordance with 40 CFR 1506.6.
    (b) If there will be a lengthy delay between the time DOE has 
decided to prepare an EIS and the beginning of the public scoping 
process, DOE may publish an Advance NOI in the Federal Register to 
provide an early opportunity to inform interested parties of the pending 
EIS or to solicit early public comments. This Advance NOI does not serve 
as a substitute for the NOI provided for in paragraph (a) of this 
section.
    (c) Publication of the NOI in the Federal Register shall begin the 
public scoping process. The public scoping process for a DOE EIS shall 
allow a minimum of 30 days for the receipt of public comments.
    (d) Except as provided in paragraph (g) of this section, DOE shall 
hold at least one public scoping meeting as part of the public scoping 
process for a DOE EIS. DOE shall announce the location, date, and time 
of public scoping meetings in the NOI or by other appropriate means, 
such as additional notices in the Federal Register, news releases to the 
local media, or letters to affected parties. Public scoping meetings 
shall not be held until at least 15 days after public notification. 
Should DOE change the location, date, or time of a public scoping 
meeting, or schedule additional public scoping meetings, DOE shall 
publicize these changes in the Federal Register or in other ways as 
appropriate.
    (e) In determining the scope of the EIS, DOE shall consider all 
comments received during the announced comment period held as part of 
the public scoping process. DOE may also consider comments received 
after the close of the announced comment period.
    (f) A public scoping process is optional for DOE supplemental EISs 
(40 CFR 1502.9(c)(4)). If DOE initiates a public scoping process for a 
supplemental EIS, the provisions of paragraphs (a) through (f) of this 
section shall apply.
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36239, July 9, 1996]



Sec. 1021.312  [Reserved]



Sec. 1021.313  Public review of environmental impact statements.

    (a) The public review and comment period on a DOE draft EIS shall be 
no less than 45 days (40 CFR 1506.10(c)). The public comment period 
begins when EPA publishes a Notice of Availability of the document in 
the Federal Register.
    (b) DOE shall hold at least one public hearing on DOE draft EISs. 
Such public hearings shall be announced at least 15 days in advance. The 
announcement shall identify the subject of the draft EIS and include the 
location, date, and time of the public hearings.
    (c) DOE shall prepare a final EIS following the public comment 
period and hearings on the draft EIS. The final EIS shall respond to 
oral and written comments received during public review of the draft 
EIS, as provided at 40 CFR 1503.4. In addition to the requirements at 40 
CFR 1502.9(b), a DOE final EIS shall include any Statement of Findings 
required by 10 CFR part 1022, ``Compliance with Floodplain/Wetlands 
Environmental Review Requirements.''
    (d) DOE shall use appropriate means to publicize the availability of 
draft and final EISs and the time and place for public hearings on a 
draft EIS. The methods chosen should focus on reaching persons who may 
be interested in or affected by the proposal and may include the methods 
listed in 40 CFR 1506.6(b)(3).



Sec. 1021.314  Supplemental environmental impact statements.

    (a) DOE shall prepare a supplemental EIS if there are substantial 
changes to the proposal or significant new circumstances or information 
relevant to environmental concerns, as discussed in 40 CFR 1502.9(c)(1).
    (b) DOE may supplement a draft EIS or final EIS at any time, to 
further the purposes of NEPA, in accordance with 40 CFR 1502.9(c)(2).

[[Page 652]]

    (c) When it is unclear whether or not an EIS supplement is required, 
DOE shall prepare a Supplement Analysis.
    (1) The Supplement Analysis shall discuss the circumstances that are 
pertinent to deciding whether to prepare a supplemental EIS, pursuant to 
40 CFR 1502.9(c).
    (2) The Supplement Analysis shall contain sufficient information for 
DOE to determine whether:
    (i) An existing EIS should be supplemented;
    (ii) A new EIS should be prepared; or
    (iii) No further NEPA documentation is required.
    (3) DOE shall make the determination and the related Supplement 
Analysis available to the public for information. Copies of the 
determination and Supplement Analysis shall be provided upon written 
request. DOE shall make copies available for inspection in the 
appropriate DOE public reading room(s) or other appropriate location(s) 
for a reasonable time.
    (d) DOE shall prepare, circulate, and file a supplement to a draft 
or final EIS in the same manner as any other draft and final EISs, 
except that scoping is optional for a supplement. If DOE decides to take 
action on a proposal covered by a supplemental EIS, DOE shall prepare a 
ROD in accordance with the provisions of Sec. 1021.315 of this part.
    (e) When applicable, DOE will incorporate an EIS supplement, or the 
determination and supporting Supplement Analysis made under paragraph 
(c) of this section, into any related formal administrative record on 
the action that is the subject of the EIS supplement or determination 
(40 CFR 1502.9(c)(3)).



Sec. 1021.315  Records of decision.

    (a) No decision may be made on a proposal covered by an EIS during a 
30-day ``waiting period'' following completion of the final EIS, except 
as provided at 40 CFR 1506.1 and 1506.10(b) and Sec. 1021.211 of this 
part. The 30-day period starts when the EPA Notice of Availability for 
the final EIS is published in the Federal Register.
    (b) If DOE decides to take action on a proposal covered by an EIS, a 
ROD shall be prepared as provided at 40 CFR 1505.2 (except as provided 
at 40 CFR 1506.1 and Sec. 1021.211 of this part).
    (c) DOE RODs shall be published in the Federal Register and made 
available to the public as specified in 40 CFR 1506.6, except as 
provided in 40 CFR 1507.3(c) and Sec. 1021.340 of this part.
    (d) No action shall be taken until the decision has been made 
public. DOE may implement the decision before the ROD is published in 
the Federal Register if the ROD has been signed and the decision and the 
availability of the ROD have been made public by other means (e.g., 
press release, announcement in local media).
    (e) DOE may revise a ROD at any time, so long as the revised 
decision is adequately supported by an existing EIS. A revised ROD is 
subject to the provisions of paragraphs (b), (c), and (d) of this 
section.
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36239, July 9 1996]



Sec. 1021.320  Environmental assessments.

    DOE shall prepare and circulate EAs and related FONSIs in accordance 
with the requirements of the CEQ Regulations, as supplemented by this 
subpart.



Sec. 1021.321  Requirements for environmental assessments.

    (a) When to prepare an EA. As required by 40 CFR 1501.4(b), DOE 
shall prepare an EA for a proposed DOE action that is described in the 
classes of actions listed in appendix C to subpart D of this part, and 
for a proposed DOE action that is not described in any of the classes of 
actions listed in appendices A, B, or D to subpart D, except that an EA 
is not required if DOE has decided to prepare an EIS. DOE may prepare an 
EA on any action at any time in order to assist agency planning and 
decisionmaking.
    (b) Purposes. A DOE EA shall serve the purposes identified in 40 CFR 
1508.9(a), which include providing sufficient evidence and analysis for 
determining whether to prepare an EIS or to issue a FONSI. If 
appropriate, a DOE EA shall also include any floodplain/wetlands 
assessment prepared under 10 CFR part 1022 and may include analyses 
needed for other environmental determinations.

[[Page 653]]

    (c) Content. A DOE EA shall comply with the requirements found at 40 
CFR 1508.9. In addition to any other alternatives, DOE shall assess the 
no action alternative in an EA, even when the proposed action is 
specifically required by legislation or a court order.



Sec. 1021.322  Findings of no significant impact.

    (a) DOE shall prepare a FONSI only if the related EA supports the 
finding that the proposed action will not have a significant effect on 
the human environment. If a required DOE EA does not support a FONSI, 
DOE shall prepare an EIS and issue a ROD before taking action on the 
proposal addressed by the EA, except as permitted under 40 CFR 1506.1 
and Sec. 1021.211 of this part.
    (b) In addition to the requirements found at 40 CFR 1508.13, a DOE 
FONSI shall include the following:
    (1) Any commitments to mitigations that are essential to render the 
impacts of the proposed action not significant, beyond those mitigations 
that are integral elements of the proposed action, and a reference to 
the Mitigation Action Plan prepared under Sec. 1021.331 of this part;
    (2) Any ``Statement of Findings'' required by 10 CFR part 1022, 
``Compliance with Floodplain/Wetlands Environmental Review 
Requirements'';
    (3) The date of issuance; and
    (4) The signature of the DOE approving official.
    (c) DOE shall make FONSIs available to the public as provided at 40 
CFR 1501.4(e)(1) and 1506.6; DOE shall make copies available for 
inspection in the appropriate DOE public reading room(s) or other 
appropriate location(s) for a reasonable time.
    (d) DOE shall issue a proposed FONSI for public review and comment 
before making a final determination on the FONSI if required by 40 CFR 
1501.4(e)(2); DOE may issue a proposed FONSI for public review and 
comment in other situations as well.
    (e) Upon issuance of the FONSI, DOE may proceed with the proposed 
action subject to any mitigation commitments expressed in the FONSI that 
are essential to render the impacts of the proposed action not 
significant.
    (f) DOE may revise a FONSI at any time, so long as the revision is 
supported by an existing EA. A revised FONSI is subject to all 
provisions of paragraph (d) of this section.
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36239, July 9, 1996]



Sec. 1021.330  Programmatic (including site-wide) NEPA documents.

    (a) When required to support a DOE programmatic decision (40 CFR 
1508.18(b)(3)), DOE shall prepare a programmatic EIS or EA (40 CFR 
1502.4). DOE may also prepare a programmatic EIS or EA at any time to 
further the purposes of NEPA.
    (b) A DOE programmatic NEPA document shall be prepared, issued, and 
circulated in accordance with the requirements for any other NEPA 
document, as established by the CEQ Regulations and this part.
    (c) As a matter of policy when not otherwise required, DOE shall 
prepare site-wide EISs for certain large, multiple-facility DOE sites; 
DOE may prepare EISs or EAs for other sites to assess the impacts of all 
or selected functions at those sites.
    (d) DOE shall evaluate site wide NEPA documents prepared under 
Sec. 1021.330(c) at least every five years. DOE shall evaluate site-wide 
EISs by means of a Supplement Analysis, as provided in Sec. 1021.314. 
Based on the Supplement Analysis, DOE shall determine whether the 
existing EIS remains adequate or whether to prepare a new site-wide EIS 
or supplement the existing EIS, as appropriate. The determination and 
supporting analysis shall be made available in the appropriate DOE 
public reading room(s) or in other appropriate location(s) for a 
reasonable time.
    (e) DOE shall evaluate site-wide EAs by means of an analysis similar 
to the Supplement Analysis to determine whether the existing site-wide 
EA remains adequate, whether to prepare a new site-wide EA, revise the 
FONSI, or prepare a site wide EIS, as appropriate. The determination and 
supporting analysis shall be made available in the appropriate DOE 
public reading room(s) or in other appropriate location(s) for a 
reasonable time.

[[Page 654]]



Sec. 1021.331  Mitigation action plans.

    (a) Following completion of each EIS and its associated ROD, DOE 
shall prepare a Mitigation Action Plan that addresses mitigation 
commitments expressed in the ROD. The Mitigation Action Plan shall 
explain how the corresponding mitigation measures, designed to mitigate 
adverse environmental impacts associated with the course of action 
directed by the ROD, will be planned and implemented. The Mitigation 
Action Plan shall be prepared before DOE takes any action directed by 
the ROD that is the subject of a mitigation commitment.
    (b) In certain circumstances, as specified in Sec. 1021.322(b)(2), 
DOE shall also prepare a Mitigation Action Plan for commitments to 
mitigations that are essential to render the impacts of the proposed 
action not significant. The Mitigation Action Plan shall address all 
commitments to such necessary mitigations and explain how mitigation 
will be planned and implemented. The Mitigation Action Plan shall be 
prepared before the FONSI is issued and shall be referenced therein.
    (c) Each Mitigation Action Plan shall be as complete as possible, 
commensurate with the information available regarding the course of 
action either directed by the ROD or the action to be covered by the 
FONSI, as appropriate. DOE may revise the Plan as more specific and 
detailed information becomes available.
    (d) DOE shall make copies of the Mitigation Action Plans available 
for inspection in the appropriate DOE public reading room(s) or other 
appropriate location(s) for a reasonable time. Copies of the Mitigation 
Action Plans shall also be available upon written request.



Sec. 1021.340  Classified, confidential, and otherwise exempt information.

    (a) Notwithstanding other sections of this part, DOE shall not 
disclose classified, confidential, or other information that DOE 
otherwise would not disclose pursuant to the Freedom of Information Act 
(FOIA) (5 U.S.C. 552) and 10 CFR 1004.10(b) of DOE's regulations 
implementing the FOIA, except as provided by 40 CFR 1506.6(f).
    (b) To the fullest extent possible, DOE shall segregate any 
information that is exempt from disclosure requirements into an appendix 
to allow public review of the remainder of a NEPA document.
    (c) If exempt information cannot be segregated, or if segregation 
would leave essentially meaningless material, DOE shall withhold the 
entire NEPA document from the public; however, DOE shall prepare the 
NEPA document, in accordance with the CEQ Regulations and this part, and 
use it in DOE decisionmaking.



Sec. 1021.341  Coordination with other environmental review requirements.

    (a) In accordance with 40 CFR 1500.4(k) and (o), 1502.25, and 
1506.4, DOE shall integrate the NEPA process and coordinate NEPA 
compliance with other environmental review requirements to the fullest 
extent possible.
    (b) To the extent possible, DOE shall determine the applicability of 
other environmental requirements early in the planning process, in 
consultation with other agencies when necessary or appropriate, to 
ensure compliance and to avoid delays, and shall incorporate any 
relevant requirements as early in the NEPA review process as possible.



Sec. 1021.342  Interagency cooperation.

    For DOE programs that involve another Federal agency or agencies in 
related decisions subject to NEPA, DOE will comply with the requirements 
of 40 CFR 1501.5 and 1501.6. As part of this process, DOE shall 
cooperate with the other agencies in developing environmental 
information and in determining whether a proposal requires preparation 
of an EIS or EA, or can be categorically excluded from preparation of 
either. Further, where appropriate and acceptable to the other agencies, 
DOE shall develop or cooperate in the development of interagency 
agreements to facilitate coordination and to reduce delay and 
duplication.



Sec. 1021.343  Variances.

    (a) Emergency actions. DOE may take an action without observing all 
provisions of this part or the CEQ Regulations, in accordance with 40 
CFR 1506.11, in emergency situations that

[[Page 655]]

demand immediate action. DOE shall consult with CEQ as soon as possible 
regarding alternative arrangements for emergency actions having 
significant environmental impacts. DOE shall document, including 
publishing a notice in the Federal Register, emergency actions covered 
by this paragraph within 30 days after such action occurs; this 
documentation shall identify any adverse impacts from the actions taken, 
further mitigation necessary, and any NEPA documents that may be 
required.
    (b) Reduction of time periods. On a case-by-case basis, DOE may 
reduce time periods established in this part that are not required by 
the CEQ Regulations. If DOE determines that such reduction is necessary, 
DOE shall publish a notice in the Federal Register specifying the 
revised time periods and the rationale for the reduction.
    (c) Other. Any variance from the requirements of this part, other 
than as provided by paragraphs (a) and (b) of this section, must be 
soundly based on the interests of national security or the public 
health, safety, or welfare and must have the advance written approval of 
the Secretary; however, the Secretary is not authorized to waive or 
grant a variance from any requirement of the CEQ Regulations (except as 
provided for in those regulations). If the Secretary determines that a 
variance from the requirements of this part is within his/her authority 
to grant and is necessary, DOE shall publish a notice in the Federal 
Register specifying the variance granted and the reasons.



                  Subpart D--Typical Classes of Actions



Sec. 1021.400  Level of NEPA review.

    (a) This subpart identifies DOE actions that normally:
    (1) Do not require preparation of either an EIS or an EA (are 
categorically excluded from preparation of either document) (appendices 
A and B to this subpart D);
    (2) Require preparation of an EA, but not necessarily an EIS 
(appendix C to this subpart D); or
    (3) Require preparation of an EIS (appendix D to this subpart D).
    (b) Any completed, valid NEPA review does not have to be repeated, 
and no completed NEPA documents need to be redone by reasons of these 
regulations, except as provided in Sec. 1021.314.
    (c) If a DOE proposal is encompassed within a class of actions 
listed in the appendices to this subpart D, DOE shall proceed with the 
level of NEPA review indicated for that class of actions, unless there 
are extraordinary circumstances related to the specific proposal that 
may affect the significance of the environmental effects of the 
proposal.
    (d) If a DOE proposal is not encompassed within the classes of 
actions listed in the appendices to this subpart D, or if there are 
extraordinary circumstances related to the proposal that may affect the 
significance of the environmental effects of the proposal, DOE shall 
either:
    (1) Prepare an EA and, on the basis of that EA, determine whether to 
prepare an EIS or a FONSI; or
    (2) Prepare an EIS and ROD.



Sec. 1021.410  Application of categorical exclusions (classes of actions that normally do not require EAs or EISs).

    (a) The actions listed in appendices A and B to this subpart D are 
classes of actions that DOE has determined do not individually or 
cumulatively have a significant effect on the human environment 
(categorical exclusions).
    (b) To find that a proposal is categorically excluded, DOE shall 
determine the following:
    (1) The proposal fits within a class of actions that is listed in 
appendix A or B to this subpart D;
    (2) There are no extraordinary circumstances related to the proposal 
that may affect the significance of the environmental effects of the 
proposal. Extraordinary circumstances are unique situations presented by 
specific proposals, such as scientific controversy about the 
environmental effects of the proposal; uncertain effects or effects 
involving unique or unknown risks; or unresolved conflicts concerning 
alternate uses of available resources within the meaning of section 
102(2)(E) of NEPA; and

[[Page 656]]

    (3) The proposal is not ``connected'' (40 CFR 1508.25(a)(1)) to 
other actions with potentially significant impacts, is not related to 
other proposed actions with cumulatively significant impacts (40 CFR 
1508.25(a)(2)), and is not precluded by 40 CFR 1506.1 or Sec. 1021.211 
of this part.
    (c) All categorical exclusions may be applied by any organizational 
element of DOE. The sectional divisions in appendix B to this subpart D 
are solely for purposes of organization of that appendix and are not 
intended to be limiting.
    (d) A class of actions includes activities foreseeably necessary to 
proposals encompassed within the class of actions (such as associated 
transportation activities and award of implementing grants and 
contracts).

Appendix A to Subpart D to Part 1021--Categorical Exclusions Applicable 
                        to General Agency Actions

                            Table of Contents

A1.  Routine administrative/financial/personnel actions
A2.  Contract interpretations/amendments/modifications, clarifying or 
          administrative
A3.  Certain actions by Office of Hearings and Appeals
A4.  Interpretations/rulings for existing regulations
A5.  Rulemaking (interpreting/amending), no change in environmental 
          effect
A6.  Rulemakings, procedural
A7.  Transfer of property, use unchanged
A8.  Award of contracts for technical support/management and operation/
          personal services
A9.  Information gathering/data analysis/document preparation/
          dissemination
A10.  Reports or recommendations on non-DOE legislation
A11.  Technical advice and assistance to organizations
A12.  Emergency preparedness planning
A13.  Procedural Orders, Notices, and guidelines
A14.  Approval of technical exchange arrangements
A15.  Umbrella agreements for cooperation in energy research and 
          development

    A1  Routine actions necessary to support the normal conduct of 
agency business, such as administrative, financial, and personnel 
actions.
    A2  Contract interpretations, amendments, and modifications that are 
clarifying or administrative in nature.
    A3  Adjustments, exceptions, exemptions, appeals, and stays, 
modifications, or rescissions of orders issued by the Office of Hearings 
and Appeals.
    A4  Interpretations and rulings with respect to existing 
regulations, or modifications or rescissions of such interpretations and 
rulings.
    A5  Rulemaking interpreting or amending an existing rule or 
regulation that does not change the environmental effect of the rule or 
regulation being amended.
    A6  Rulemakings that are strictly procedural, such as rulemaking 
(under 48 CFR part 9) establishing procedures for technical and pricing 
proposals and establishing contract clauses and contracting practices 
for the purchase of goods and services, and rulemaking (under 10 CFR 
part 600) establishing application and review procedures for, and 
administration, audit, and closeout of, grants and cooperative 
agreements.
    A7  Transfer, lease, disposition, or acquisition of interests in 
personal property (e.g., equipment and materials) or real property 
(e.g., permanent structures and land), if property use is to remain 
unchanged; i.e., the type and magnitude of impacts would remain 
essentially the same.
    A8  Award of contracts for technical support services, management 
and operation of a government-owned facility, and personal services.
    A9  Information gathering (including, but not limited to, literature 
surveys, inventories, audits), data analysis (including computer 
modelling), document preparation (such as conceptual design or 
feasibility studies, analytical energy supply and demand studies), and 
dissemination (including, but not limited to, document mailings, 
publication, and distribution; and classroom training and informational 
programs), but not including site characterization or environmental 
monitoring. (Also see B3.1.)
    A10  Reports or recommendations on legislation or rulemaking that is 
not proposed by DOE.
    A11  Technical advice and planning assistance to international, 
national, state, and local organizations.
    A12  Emergency preparedness planning activities, including the 
designation of onsite evacuation routes.
    A13  Administrative, organizational, or procedural Orders, Notices, 
and guidelines.
    A14  Approval of technical exchange arrangements for information, 
data, or personnel with other countries or international organizations, 
including, but not limited to, assistance in identifying and analyzing 
another country's energy resources, needs and options.

[[Page 657]]

    A15  Approval of DOE participation in international ``umbrella'' 
agreements for cooperation in energy research and development activities 
that would not commit the U.S. to any specific projects or activities.
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36239, July 9, 1996]

Appendix B to Subpart D to Part 1021--Categorical Exclusions Applicable 
                       to Specific Agency Actions

                            Table of Contents

B  Conditions that are integral elements of the classes of actions in 
          appendix B
B1  Categorical exclusions applicable to facility operation
B1.1  Rate increases less than inflation (not power marketing, but see 
          B4.3)
B1.2  Training exercises and simulation
B1.3  Routine maintenance/custodial services for buildings, structures, 
          infrastructures, equipment
B1.4  Installation/modification of air conditioning systems for existing 
          equipment
B1.5  Improvements to cooling water systems within existing building, 
          structure
B1.6  Installation/modification of retention tanks, small basins to 
          control runoff, spills
B1.7  Acquisition/installation/operation/removal of communication 
          systems, data processing equipment
B1.8  Modifications to screened water intake/outflow structures
B1.9  Placement of airway safety markings/painting (not lighting) of 
          existing lines, antennas
B1.10  Routine onsite storage of activated material at existing facility
B1.11  Fencing, no adverse effect on wildlife movement/surface water 
          flow
B1.12  Detonation/burning of failed/damaged high explosives or 
          propellants
B1.13  Construction/acquisition/relocation of onsite pathways, short 
          onsite access roads/railroads
B1.14  Refueling of a nuclear reactor
B1.15  Siting/construction/operation of support buildings/support 
          structures
B1.16  Removal of asbestos from buildings
B1.17  Removal of polychlorinated biphenyl-containing items from 
          buildings, other aboveground locations
B1.18  Siting/construction/operation of additional/replacement water 
          supply wells
B1.19  Siting/construction/operation of microwave/radio communication 
          towers
B1.20  Protect/restore/improve fish and wildlife habitat
B1.21  Noise abatement
B1.22  Relocation of buildings
B1.23  Demolition/disposal of buildings
B1.24  Transfer of structures/residential, commercial, industrial use
B1.25  Transfer of land/habitat preservation, wildlife management
B1.26  Siting/construction/operation/decommissioning of small water 
          treatment facilities, less than approximately 250,000 gallons 
          per day capacity
B1.27  Disconnection of utilities
B1.28  Minor activities to place a facility in an environmentally safe 
          condition, no proposed uses
B1.29  Siting/construction/operation/decommissioning of small onsite 
          disposal facility for construction and demolition waste
B1.30  Transfer actions
B1.31  Relocation/operation of machinery and equipment
B1.32  Traffic flow adjustments, existing roads
B2  Categorical exclusions applicable to safety and health
B2.1  Modifications to enhance workplace habitability
B2.2  Installation of/improvements to building/equipment instrumentation 
          (remote controls, emergency warning systems, monitors)
B2.3  Installation of equipment for personnel safety and health
B2.4  Equipment Qualification Programs
B2.5  Safety and environmental improvements of a facility, replacement/
          upgrade of facility components
B2.6  Packaging/transportation/storage of radioactive sources upon 
          request by the Nuclear Regulatory Commission or other 
          cognizant agency
B3  Categorical exclusions applicable to site characterization, 
          monitoring, and general research
B3.1  Site characterization/environmental monitoring
B3.2  Aviation activities for survey/monitoring/security
B3.3  Research related to conservation of fish and wildlife
B3.4  Transport packaging tests for radioactive/hazardous material
B3.5  Tank car tests
B3.6  Siting/construction/operation/decommissioning of facilities for 
          bench-scale research, conventional laboratory operations, 
          small-scale research and development and pilot projects
B3.7  Siting/construction/operation of new infill exploratory, 
          experimental oil/gas/geothermal wells
B3.8  Outdoor ecological/environmental research in small area
B3.9  Certain Clean Coal Technology Demonstration Program activities
B3.10  Siting/construction/operation/decommissioning of particle 
          accelerators, including electron beam accelerators, primary 
          beam energy less than approximately 100 MeV

[[Page 658]]

B3.11  Outdoor tests, experiments on materials and equipment components, 
          no source, special nuclear, or byproduct materials involved
B3.12  Siting/construction/operation/decommissioning of microbiological 
          and biomedical facilities
B3.13  Magnetic fusion experiments, no tritium fuel use
B4  Categorical exclusions applicable to Power Marketing Administrations 
          and to all of DOE with regard to power resources

    B4.1  Contracts/marketing plans/policies for excess electric power.
    B4.2  Export of electric energy.
    B4.3  Electric power marketing rate changes, within normal operating 
limits.
B4.4  Power marketing services within normal operating limits
B4.5  Temporary adjustments to river operations within existing 
          operating constraints
    B4.6  Additions/modifications to electric power transmission 
facilities within previously developed area.
B4.7  Adding/burying fiber optic cable
B4.8  New electricity transmission agreements for transfer of power
B4.9  Multiple use of DOE transmission line rights-of-way
    B4.10  Deactivation, dismantling and removal of electric powerlines 
and substations.
    B4.11  Construction or modification of electric power substations.
    B4.12  Construction of electric powerlines approximately 10 miles in 
length or less, not integrating major new sources.
    B4.13  Reconstruction and minor relocation of existing electric 
powerlines approximately 20 miles in length or less.
B5  Categorical exclusions applicable to conservation, fossil, and 
          renewable energy activities
B5.1  Actions to conserve energy
B5.2  Modifications to oil/gas/geothermal pumps and piping
B5.3  Modification (not expansion)/abandonment of oil storage access/
          brine injection/gas/geothermal wells, not part of site closure
B5.4  Repair/replacement of sections of pipeline within maintenance 
          provisions
B5.5  Construction/operation of short crude oil/gas/steam/geothermal 
          pipeline segments
B5.6  Oil spill cleanup operations
B5.7  Import/export natural gas, no new construction
B5.8  Import/export natural gas, new cogeneration powerplant
B5.9  Temporary exemption for any electric powerplant
B5.10  Certain permanent exemptions for any existing electric powerplant
B5.11  Permanent exemption for mixed natural gas and petroleum
B5.12  Workover of existing oil/gas/geothermal well
B6  Categorical exclusions applicable to environmental restoration and 
          waste management activities
B6.1  Small-scale, short-term cleanup actions under RCRA, Atomic Energy 
          Act, or other authorities
B6.2  Siting/construction/operation of pilot-scale waste collection/
          treatment/stabilization/containment facilities
B6.3  Improvements to environmental control systems
B6.4  Siting/construction/operation/decommissioning of facility for 
          storing packaged hazardous waste for 90 days or less
B6.5  Siting/construction/operation/decommissioning of facility for 
          characterizing/sorting packaged waste, overpacking waste
B6.6  Modification of facility for storing, packaging, repacking waste 
          (not high-level, spent nuclear fuel)
B6.7  Granting/denying petitions for allocation of commercial disposal 
          capacity
B6.8  Modifications for waste minimization/reuse of materials
B6.9  Small-scale temporary measures to reduce migration of contaminated 
          groundwater
B6.10  Siting/construction/operation/decommissioning of small upgraded 
          or replacement waste storage facilities
B7  Categorical exclusions applicable to international activities
B7.1  Emergency measures under the International Energy Program
B7.2  Import/export of special nuclear or isotopic materials

 B. Conditions That Are Integral Elements of the Classes of Actions in 
                               Appendix B

    B. The classes of actions listed below include the following 
conditions as integral elements of the classes of actions. To fit within 
the classes of actions listed below, a proposal must be one that would 
not:
    (1) Threaten a violation of applicable statutory, regulatory, or 
permit requirements for environment, safety, and health, including 
requirements of DOE and/or Executive Orders.
    (2) Require siting and construction or major expansion of waste 
storage, disposal, recovery, or treatment facilities (including 
incinerators), but the proposal may include categorically excluded waste 
storage, disposal, recovery, or treatment actions.
    (3) Disturb hazardous substances, pollutants, contaminants, or 
CERCLA-excluded petroleum and natural gas products that preexist in the 
environment such that there would be uncontrolled or unpermitted 
releases; or

[[Page 659]]

    (4) Adversely affect environmentally sensitive resources. An action 
may be categorically excluded if, although sensitive resources are 
present on a site, the action would not adversely affect those resources 
(e.g., construction of a building with its foundation well above a sole-
source aquifer or upland surface soil removal on a site that has 
wetlands). Environmentally sensitive resources include, but are not 
limited to:
    (i) Property (e.g., sites, buildings, structures, objects) of 
historic, archeological, or architectural significance designated by 
Federal, state, or local governments or property eligible for listing on 
the National Register of Historic Places;
    (ii) Federally-listed threatened or endangered species or their 
habitat (including critical habitat), Federally- proposed or candidate 
species or their habitat, or state-listed endangered or threatened 
species or their habitat;
    (iii) Wetlands regulated under the Clean Water Act (33 U.S.C. 1344) 
and floodplains;
    (iv) Areas having a special designation such as Federally- and 
state-designated wilderness areas, national parks, national natural 
landmarks, wild and scenic rivers, state and Federal wildlife refuges, 
and marine sanctuaries;
    (v) Prime agricultural lands;
    (vi) Special sources of water (such as sole-source aquifers, 
wellhead protection areas, and other water sources that are vital in a 
region); and
    (vii) Tundra, coral reefs, or rain forests.

       B1. Categorical Exclusions Applicable to Facility Operation

    B1.1  Rate increases for products or services marketed by parts of 
DOE other than Power Marketing Administrations and approval of rate 
increases for non-DOE entities that do not exceed the change in the 
overall price level in the economy (inflation), as measured by the Gross 
National Product (GNP) fixed weight price index published by the 
Department of Commerce, during the period since the last rate increase. 
(Also see B4.3.)
    B1.2  Training exercises and simulations (including, but not limited 
to, firing-range training, emergency response training, fire fighter and 
rescue training, and spill cleanup training).
    B1.3  Routine maintenance activities and custodial services for 
buildings, structures, rights-of-way, infrastructures (e.g., pathways, 
roads, and railroads), vehicles and equipment, and localized vegetation 
and pest control, during which operations may be suspended and resumed. 
Custodial services are activities to preserve facility appearance, 
working conditions, and sanitation, such as cleaning, window washing, 
lawn mowing, trash collection, painting, and snow removal. Routine 
maintenance activities, corrective (that is, repair), preventive, and 
predictive, are required to maintain and preserve buildings, structures, 
infrastructures, and equipment in a condition suitable for a facility to 
be used for its designated purpose. Routine maintenance may result in 
replacement to the extent that replacement is in kind and is not a 
substantial upgrade or improvement. In kind replacement includes 
installation of new components to replace outmoded components if the 
replacement does not result in a significant change in the expected 
useful life, design capacity, or function of the facility. Routine 
maintenance does not include replacement of a major component that 
significantly extends the originally intended useful life of a facility 
(for example, it does not include the replacement of a reactor vessel 
near the end of its useful life). Routine maintenance activities 
include, but are not limited to:
    (a) Repair of facility equipment, such as lathes, mills, pumps, and 
presses;
    (b) Door and window repair or replacement;
    (c) Wall, ceiling, or floor repair;
    (d) Reroofing;
    (e) Plumbing, electrical utility, and telephone service repair;
    (f) Routine replacement of high-efficiency particulate air filters;
    (g) Inspection and/or treatment of currently installed utility 
poles;
    (h) Repair of road embankments;
    (i) Repair or replacement of fire protection sprinkler systems;
    (j) Road and parking area resurfacing, including construction of 
temporary access to facilitate resurfacing;
    (k) Erosion control and soil stabilization measures (such as 
reseeding and revegetation);
    (l) Surveillance and maintenance of surplus facilities in accordance 
with DOE Order 5820.2, ``Radioactive Waste Management'';
    (m) Repair and maintenance of transmission facilities, including 
replacement of conductors of the same nominal voltage, poles, circuit 
breakers, transformers, capacitors, crossarms, insulators, and downed 
transmission lines, in accordance, where appropriate, with 40 CFR part 
761 (Polychlorinated Biphenyls Manufacturing, Processing, Distribution 
in Commerce, and Use Prohibitions);
    (n) Routine testing and calibration of facility components, 
subsystems, or portable equipment (including but not limited to, control 
valves, in-core monitoring devices, transformers, capacitors, monitoring 
wells, lysimeters, weather stations, and flumes); and
    (o) Routine decontamination of the surfaces of equipment, rooms, hot 
cells, or other interior surfaces of buildings (by such activities as 
wiping with rags, using strippable latex, and minor vacuuming), 
including removal of contaminated intact equipment and

[[Page 660]]

other materials (other than spent nuclear fuel or special nuclear 
material in nuclear reactors).
    B1.4  Installation or modification of air conditioning systems 
required for temperature control for operation of existing equipment.
    B1.5  Minor improvements to cooling water systems within an existing 
building or structure if the improvements would not: (1) Create new 
sources of water or involve new receiving waters; (2) adversely affect 
water withdrawals or the temperature of discharged water; or (3) 
increase introductions of or involve new introductions of hazardous 
substances, pollutants, contaminants, or CERCLA-excluded petroleum and 
natural gas products.
    B1.6  Installation or modification of retention tanks or small 
(normally under one acre) basins and associated piping and pumps for 
existing operations to control runoff or spills (such as under 40 CFR 
part 112). Modifications include, but are not limited to, installing 
liners or covers.
    B1.7  Acquisition, installation, operation, and removal of 
communication systems, data processing equipment, and similar electronic 
equipment.
    B1.8  Modifications to screened water intake and outflow structures 
such that intake velocities and volumes and water effluent quality and 
volumes are consistent with existing permit limits.
    B1.9  Placement of airway safety markings and painting (but 
excluding lighting) of existing electrical transmission lines and 
antenna structures in accordance with Federal Aviation Administration 
standards.
    B1.10  Routine, onsite storage at an existing facility of activated 
equipment and material (including lead) used at that facility, to allow 
reuse after decay of radioisotopes with short half-lives.
    B1.11  Installation of fencing, including that for border marking, 
that will not adversely affect wildlife movements or surface water flow.
    B1.12  Detonation or burning of explosives or propellants that 
failed in outdoor tests (i.e., duds) or were damaged in outdoor tests 
(e.g., by fracturing) in outdoor areas designated and routinely used for 
explosive detonation or burning under an existing permit issued by state 
or local authorities.
    B1.13  Construction, acquisition, and relocation of onsite pathways 
and short onsite access roads and railroads.
    B1.14  Refueling of an operating nuclear reactor, during which 
operations may be suspended and then resumed.
    B1.15  Siting, construction (or modification), and operation of 
support buildings and support structures (including, but not limited to, 
trailers and prefabricated buildings) within or contiguous to an already 
developed area (where active utilities and currently used roads are 
readily accessible). Covered support buildings and structures include 
those for office purposes; parking; cafeteria services; education and 
training; visitor reception; computer and data processing services; 
employee health services or recreation activities; routine maintenance 
activities; storage of supplies and equipment for administrative 
services and routine maintenance activities; security (including 
security posts); fire protection; and similar support purposes, but 
excluding facilities for waste storage activities, except as provided in 
other parts of this appendix.
    B1.16  Removal of asbestos-containing materials from buildings in 
accordance with 40 CFR part 61 (National Emission Standards for 
Hazardous Air Pollutants), subpart M (National Emission Standard for 
Asbestos); 40 CFR part 763 (Asbestos), subpart G (Asbestos Abatement 
Projects); 29 CFR part 1910, subpart I (Personal Protective Equipment), 
Sec. 1910.134 (Respiratory Protection); subpart Z (Toxic and Hazardous 
Substances), Sec. 1910.1001 (Asbestos, tremolite, anthophyllite and 
actinolite); and 29 CFR part 1926 (Safety and Health Regulations for 
Construction), subpart D (Occupational Health and Environmental 
Controls), Sec. 1926.58 (Asbestos, tremolite, anthophyllite, and 
actinolite), other appropriate Occupational Safety and Health 
Administration standards in title 29, chapter XVII of the CFR, and 
appropriate state and local requirements, including certification of 
removal contractors and technicians.
    B1.17  Removal of polychlorinated biphenyl (PCB)-containing items, 
such as transformers or capacitors, PCB-containing oils flushed from 
transformers, PCB-flushing solutions, and PCB-containing spill materials 
from buildings or other aboveground locations in accordance with 40 CFR 
part 761 (Polychlorinated Biphenyls Manufacturing, Processing, 
Distribution in Commerce, and Use Prohibitions).
    B1.18  Siting, construction, and operation of additional water 
supply wells (or replacement wells) within an existing well field, or 
modification of an existing water supply well to restore production, if 
there would be no drawdown other than in the immediate vicinity of the 
pumping well, no resulting long-term decline of the water table, and no 
degradation of the aquifer from the new or replacement well.
    B1.19  Siting, construction, and operation of microwave and radio 
communication towers and associated facilities, if the towers and 
associated facilities would not be in an area of great visual value.
    B1.20  Small-scale activities undertaken to protect, restore, or 
improve fish and wildlife habitat, fish passage facilities (such as fish 
ladders or minor diversion channels), or fisheries.

[[Page 661]]

    B1.21  Noise abatement measures, such as construction of noise 
barriers and installation of noise control materials.
    B1.22  Relocation of buildings (including, but not limited to, 
trailers and prefabricated buildings) to an already developed area 
(where active utilities and currently used roads are readily 
accessible).
    B1.23  Demolition and subsequent disposal of buildings, equipment, 
and support structures (including, but not limited to, smoke stacks and 
parking lot surfaces).
    B1.24  Transfer, lease, disposition or acquisition of interests in 
uncontaminated permanent or temporary structures, equipment therein, and 
only land that is necessary for use of the transferred structures and 
equipment, for residential, commercial, or industrial uses (including, 
but not limited to, office space, warehouses, equipment storage 
facilities) where, under reasonably foreseeable uses, there would not be 
any lessening in quality, or increases in volumes, concentrations, or 
discharge rates, of wastes, air emissions, or water effluents, and 
environmental impacts would generally be similar to those before the 
transfer, lease, disposition, or acquisition of interests. 
Uncontaminated means that there would be no potential for release of 
substances at a level, or in a form, that would pose a threat to public 
health or the environment.
    B1.25  Transfer, lease, disposition or acquisition of interests in 
uncontaminated land for habitat preservation or wildlife management, and 
only associated buildings that support these purposes. Uncontaminated 
means that there would be no potential for release of substances at a 
level, or in a form, that would pose a threat to public health or the 
environment.
    B1.26  Siting, construction (or expansion, modification, or 
replacement), operation, and decommissioning of small (total capacity 
less than approximately 250,000 gallons per day) wastewater and surface 
water treatment facilities whose liquid discharges are externally 
regulated, and small potable water and sewage treatment facilities.
    B1.27  Activities that are required for the disconnection of utility 
services such as water, steam, telecommunications, and electrical power 
after it has been determined that the continued operation of these 
systems is not needed for safety.
    B1.28  Minor activities that are required to place a facility in an 
environmentally safe condition where there is no proposed use for the 
facility. These activities would include, but are not limited to, 
reducing surface contamination, and removing materials, equipment or 
waste, such as final defueling of a reactor, where there are adequate 
existing facilities for the treatment, storage, or disposal of the 
materials, equipment or waste. These activities would not include 
conditioning, treatment, or processing of spent nuclear fuel, high-level 
waste, or special nuclear materials.
    B1.29  Siting, construction, operation, and decommissioning of a 
small (less than approximately 10 acres) onsite disposal facility for 
construction and demolition waste which would not release substances at 
a level, or in a form, that would pose a threat to public health or the 
environment. These wastes, as defined in the Environmental Protection 
Agency's regulations under the Resource Conservation and Recovery Act, 
specifically 40 CFR 243.101, include building materials, packaging, and 
rubble.
    B1.30  Transfer actions, in which the predominant activity is 
transportation, and in which the amount and type of materials, equipment 
or waste to be moved is small and incidental to the amount of such 
materials, equipment, or waste that is already a part of ongoing 
operations at the receiving site. Such transfers are not regularly 
scheduled as part of ongoing routine operations.
    B1.31  Relocation of machinery and equipment, such as analytical 
laboratory apparatus, electronic hardware, maintenance equipment, and 
health and safety equipment, including minor construction necessary for 
removal and installation, where uses of the relocated items will be 
similar to their former uses and consistent with the general missions of 
the receiving structure.
    B1.32  Traffic flow adjustments to existing roads at DOE sites 
(including, but not limited to, stop sign or traffic light installation, 
adjusting direction of traffic flow, and adding turning lanes). Road 
adjustments such as widening or realignment are not included.

       B2. Categorical Exclusions Applicable to Safety and Health

    B2.1  Modifications of an existing structure to enhance workplace 
habitability (including, but not limited to: improvements to lighting, 
radiation shielding, or heating/ventilating/air conditioning and its 
instrumentation; and noise reduction).
    B2.2  Installation of, or improvements to, building and equipment 
instrumentation (including, but not limited to, remote control panels, 
remote monitoring capability, alarm and surveillance systems, control 
systems to provide automatic shutdown, fire detection and protection 
systems, announcement and emergency warning systems, criticality and 
radiation monitors and alarms, and safeguards and security equipment).
    B2.3  Installation of, or improvements to, equipment for personnel 
safety and health, including, but not limited to, eye washes, safety 
showers, radiation monitoring devices, and fumehoods and associated 
collection and exhaust systems, provided that emissions would not 
increase.
    B2.4  Development and implementation of Equipment Qualification 
Programs (under

[[Page 662]]

DOE Order 5480.6, ``Safety of DOE-owned Nuclear Reactors'') to augment 
information on safety-related system components or to improve systems 
reliability.
    B2.5  Safety and environmental improvements of a facility, including 
replacement and upgrade of facility components, that do not result in a 
significant change in the expected useful life, design capacity, or 
function of the facility and during which operations may be suspended 
and then resumed. Improvements may include, but are not limited to: 
Replacement/upgrade of control valves, in-core monitoring devices, 
facility air filtration systems, or substation transformers or 
capacitors; addition of structural bracing to meet earthquake standards 
and/or sustain high wind loading; and replacement of aboveground or 
belowground tanks and related piping if there is no evidence of leakage, 
based on testing that meets performance requirements in 40 CFR part 280, 
subpart D (40 CFR part 280.40). This includes activities taken under 
RCRA, subtitle I; 40 CFR part 265, subpart J; 40 CFR part 280, subparts 
B, C, and D; and other applicable state, Federal and local requirements 
for underground storage tanks. These actions do not include rebuilding 
or modifying substantial portions of a facility, such as replacing a 
reactor vessel.
    B2.6  Packaging, transportation, and storage of radioactive 
materials from the public domain, in accordance with the Atomic Energy 
Act upon a request by the Nuclear Regulatory Commission or other 
cognizant agency, which would include a State that regulates radioactive 
materials under an agreement with the Nuclear Regulatory Commission or 
other agencies that may, under unusual circumstances, have 
responsibilities regarding the materials that are included in the 
categorical exclusion. Covered materials are those for which possession 
and use by Nuclear Regulatory Commission licensees has been 
categorically excluded under 10 CFR 51.22(14) or its successors. 
Examples of these radioactive materials (which may contain source, 
byproduct or special nuclear materials) are density gauges, therapeutic 
medical devices, generators, reagent kits, irradiators, analytical 
instruments, well monitoring equipment, uranium shielding material, 
depleted uranium military munitions, and packaged radioactive waste not 
exceeding 50 curies.

    B3. Categorical Exclusions Applicable to Site Characterization, 
                    Monitoring, and General Research

    B3.1  Onsite and offsite site characterization and environmental 
monitoring, including siting, construction (or modification), operation, 
and dismantlement or closing (abandonment) of characterization and 
monitoring devices and siting, construction, and associated operation of 
a small-scale laboratory building or renovation of a room in an existing 
building for sample analysis. Activities covered include, but are not 
limited to, site characterization and environmental monitoring under 
CERCLA and RCRA. Specific activities include, but are not limited to:
    (a) Geological, geophysical (such as gravity, magnetic, electrical, 
seismic, and radar), geochemical, and engineering surveys and mapping, 
including the establishment of survey marks;
    (b) Installation and operation of field instruments, such as stream-
gauging stations or flow-measuring devices, telemetry systems, 
geochemical monitoring tools, and geophysical exploration tools;
    (c) Drilling of wells for sampling or monitoring of groundwater or 
the vadose (unsaturated) zone, well logging, and installation of water-
level recording devices in wells;
    (d) Aquifer response testing;
    (e) Installation and operation of ambient air monitoring equipment;
    (f) Sampling and characterization of water, soil, rock, or 
contaminants;
    (g) Sampling and characterization of water effluents, air emissions, 
or solid waste streams;
    (h) Installation and operation of meteorological towers and 
associated activities, including assessment of potential wind energy 
resources;
    (i) Sampling of flora or fauna; and
    (j) Archeological, historic, and cultural resource identification in 
compliance with 36 CFR part 800 and 43 CFR part 7.
    B3.2  Aviation activities for survey, monitoring, or security 
purposes that comply with Federal Aviation Administration regulations.
    B3.3  Field and laboratory research, inventory, and information 
collection activities that are directly related to the conservation of 
fish or wildlife resources and that involve only negligible habitat 
destruction or population reduction.
    B3.4  Drop, puncture, water-immersion, thermal, and fire tests of 
transport packaging for radioactive or hazardous materials to certify 
that designs meet the requirements of 49 CFR Secs. 173.411 and 173.412 
and requirements of severe accident conditions as specified in 10 CFR 
Sec. 71.73.
    B3.5  Tank car tests under 49 CFR part 179 (including, but not 
limited to, tests of safety relief devices, pressure regulators, and 
thermal protection systems).
    B3.6  Siting, construction (or modification), operation, and 
decommissioning of facilities for indoor bench-scale research projects 
and conventional laboratory operations (for example, preparation of 
chemical standards and sample analysis); small-scale research and 
development projects; and

[[Page 663]]

small-scale pilot projects (generally less than two years) conducted to 
verify a concept before demonstration actions. Construction (or 
modification) will be within or contiguous to an already developed area 
(where active utilities and currently used roads are readily 
accessible). See also C12.
    B3.7  Siting, construction, and operation of new infill exploratory 
and experimental (test) oil, gas, and geothermal wells, which are to be 
drilled in a geological formation that has existing operating wells.
    B3.8  Outdoor ecological and other environmental research (including 
siting, construction, and operation of a small-scale laboratory building 
or renovation of a room in an existing building for sample analysis) in 
a small area (generally less than five acres) that would not result in 
any permanent change to the ecosystem.
    B3.9  Demonstration actions proposed under the Clean Coal Technology 
Demonstration Program, if the actions would not increase the quantity or 
rate of air emissions. These demonstration actions include, but are not 
limited to:
    (a) Test treatment of 20 percent or less of the throughput product 
(solid, liquid, or gas) generated at an existing and fully operational 
coal combustion or coal utilization facility;
    (b) Addition or replacement of equipment for reduction or control of 
sulfur dioxide, oxides of nitrogen, or other regulated substances that 
requires only minor modification to the existing structures at an 
existing coal combustion or coal utilization facility for which the 
existing use remains unchanged; and
    (c) Addition or replacement of equipment for reduction or control of 
sulfur dioxide, oxides of nitrogen, or other regulated substances that 
involves no permanent change in the quantity or quality of coal being 
burned or used and involves no permanent change in the capacity factor 
of the coal combustion or coal utilization facility, other than for 
demonstration purposes of two years or less in duration.
    B3.10  Siting, construction, operation, and decommissioning of a 
particle accelerator, including electron beam accelerator with primary 
beam energy less than approximately 100 MeV, and associated beamlines, 
storage rings, colliders, and detectors for research and medical 
purposes, within or contiguous to an already developed area (where 
active utilities and currently used roads are readily accessible), or 
internal modification of any accelerator facility regardless of energy 
that does not increase primary beam energy or current.
    B3.11  Outdoor tests and experiments for the development, quality 
assurance, or reliability of materials and equipment (including, but not 
limited to, weapon system components), under controlled conditions that 
would not involve source, special nuclear, or byproduct materials. 
Covered activities may include, but are not limited to, burn tests (such 
as tests of electric cable fire resistance or the combustion 
characteristics of fuels), impact tests (such as pneumatic ejector tests 
using earthen embankments or concrete slabs designated and routinely 
used for that purpose), or drop, puncture, water-immersion, or thermal 
tests.
    B3.12  Siting, construction (or modification), operation, and 
decommissioning of microbiological and biomedical diagnostic, treatment 
and research facilities (excluding Biosafety Level-3 and Biosafety 
Level-4; reference: Biosafety in Microbiological and Biomedical 
Laboratories, 3rd Edition, May 1993, U.S. Department of Health and Human 
Services Public Health Service, Centers of Disease Control and 
Prevention, and the National Institutes of Health (HHS Publication No. 
(CDC) 93-8395)) including, but not limited to, laboratories, treatment 
areas, offices, and storage areas, within or contiguous to an already 
developed area (where active utilities and currently used roads are 
readily accessible). Operation may include the purchase, installation, 
and operation of biomedical equipment, such as commercially available 
cyclotrons that are used to generate radioisotopes and 
radiopharmaceuticals, and commercially available biomedical imaging and 
spectroscopy instrumentation.
    B3.13  Performing magnetic fusion experiments that do not use 
tritium as fuel, with existing facilities (including necessary 
modifications).

B4. Categorical Exclusions Applicable to Power Marketing Administrations 
            and to All of DOE with Regard to Power Resources

    B4.1  Establishment and implementation of contracts, marketing 
plans, policies, allocation plans, or acquisition of excess electric 
power that does not involve: (1) the integration of a new generation 
resource, (2) physical changes in the transmission system beyond the 
previously developed facility area, unless the changes are themselves 
categorically excluded, or (3) changes in the normal operating limits of 
generation resources.
    B4.2  Export of electric energy as provided by Section 202(e) of the 
Federal Power Act over existing transmission systems or using 
transmission system changes that are themselves categorically excluded.
    B4.3  Rate changes for electric power, power transmission, and other 
products or services provided by a Power Marketing Administration that 
are based on a change in revenue requirements if the operations of 
generation projects would remain within normal operating limits.
    B4.4  Power marketing services, including storage, load shaping, 
seasonal exchanges, or other similar activities if the operations of

[[Page 664]]

generating projects would remain within normal operating limits.
    B4.5  Temporary adjustments to river operations to accommodate day-
to-day river fluctuations, power demand changes, fish and wildlife 
conservation program requirements, and other external events if the 
adjustments would occur within the existing operating constraints of the 
particular hydrosystem operation.
    B4.6  Additions or modifications to electric power transmission 
facilities that would not affect the environment beyond the previously 
developed facility area including, but not limited to, switchyard rock 
grounding upgrades, secondary containment projects, paving projects, 
seismic upgrading, tower modifications, changing insulators, and 
replacement of poles, circuit breakers, conductors, transformers, and 
crossarms.
    B4.7  Adding fiber optic cable to transmission structures or burying 
fiber optic cable in existing transmission line rights-of-way.
    B4.8  New electricity transmission agreements, and modifications to 
existing transmission arrangements, to use a transmission facility of 
one system to transfer power of and for another system, if no new 
generation projects would be involved and no physical changes in the 
transmission system would be made beyond the previously developed 
facility area.
    B4.9  Grant or denial of requests for multiple use of a transmission 
facility rights-of-way, such as grazing permits and crossing agreements, 
including electric lines, water lines, and drainage culverts.
    B4.10  Deactivation, dismantling, and removal of electric 
powerlines, substations, switching stations, and other transmission 
facilities, and right-of-way abandonment.
    B4.11  Construction of electric power substations (including 
switching stations and support facilities) with power delivery at 230 kV 
or below, or modification (other than voltage increases) of existing 
substations and support facilities, that could involve the construction 
of electric powerlines approximately 10 miles in length or less, or 
relocation of existing electric powerlines approximately 20 miles in 
length or less, but not the integration of major new generation 
resources into a main transmission system.
    B4.12  Construction of electric powerlines approximately 10 miles in 
length or less that are not for the integration of major new generation 
resources into a main transmission system.
    B4.13  Reconstruction (upgrading or rebuilding) and/or minor 
relocation of existing electric powerlines approximately 20 miles in 
length or less to enhance environmental and land use values. Such 
actions include relocations to avoid right-of-way encroachments, resolve 
conflict with property development, accommodate road/highway 
construction, allow for the construction of facilities such as canals 
and pipelines, or reduce existing impacts to environmentally sensitive 
areas.

   B5. Categorical Exclusions Applicable to Conservation, Fossil, and 
                       Renewable Energy Activities

    B5.1  Actions to conserve energy, demonstrate potential energy 
conservation, and promote energy-efficiency that do not increase the 
indoor concentrations of potentially harmful substances. These actions 
may involve financial and technical assistance to individuals (such as 
builders, owners, consultants, designers), organizations (such as 
utilities), and state and local governments. Covered actions include, 
but are not limited to: programmed lowering of thermostat settings, 
placement of timers on hot water heaters, installation of solar hot 
water systems, installation of efficient lighting, improvements in 
generator efficiency and appliance efficiency ratings, development of 
energy-efficient manufacturing or industrial practices, and small-scale 
conservation and renewable energy research and development and pilot 
projects. The actions could involve building renovations or new 
structures in commercial, residential, agricultural, or industrial 
sectors. These actions do not include rulemakings, standard-settings, or 
proposed DOE legislation.
    B5.2  Modifications to oil, gas, and geothermal facility pump and 
piping configurations, manifolds, metering systems, and other 
instrumentation that would not change design process flow rates or 
affect permitted air emissions.
    B5.3  Modification (but not expansion) or abandonment (including 
plugging), which is not part of site closure, of crude oil storage 
access wells, brine injection wells, geothermal wells, and gas wells.
    B5.4  Repair or replacement of sections of a crude oil, produced 
water, brine, or geothermal pipeline, if the actions are determined by 
the Army Corps of Engineers to be within the maintenance provisions of a 
DOE permit under section 404 of the Clean Water Act.
    B5.5  Construction and subsequent operation of short crude oil, 
steam, geothermal, or natural gas pipeline segments between DOE 
facilities and existing transportation, storage, or refining facilities 
within a single industrial complex, if the pipeline segments are within 
existing rights-of-way.
    B5.6  Removal of oil and contaminated materials recovered in oil 
spill cleanup operations in accordance with the National Oil and 
Hazardous Substances Pollution Contingency Plan (NCP) and disposed of in 
accordance with local contingency plans in accordance with the NCP.
    B5.7  Approval of new authorization or amendment of existing 
authorization to import/export natural gas under section 3 of the

[[Page 665]]

Natural Gas Act that does not involve new construction and only requires 
operational changes, such as an increase in natural gas throughput, 
change in transportation, or change in storage operations.
    B5.8  Approval of new authorization or amendment of existing 
authorization to import/export natural gas under section 3 of the 
Natural Gas Act involving a new cogeneration powerplant (as defined in 
the Powerplant and Industrial Fuel Use Act) within or adjacent to an 
existing industrial complex and requiring less than 10 miles of new gas 
pipeline.
    B5.9  The grant or denial of any temporary exemption under the 
Powerplant and Industrial Fuel Use Act of 1978 for any electric 
powerplant.
    B5.10  The grant or denial of any permanent exemption under the 
Powerplant and Industrial Fuel Use Act of 1978 of any existing electric 
powerplant other than an exemption under (1) section 312(c) relating to 
cogeneration, (2) section 312(l) relating to scheduled equipment 
outages, (3) section 312(b) relating to certain state or local 
requirements, and (4) section 312(g) relating to certain intermediate 
load powerplants.
    B5.11  The grant or denial of a permanent exemption from the 
prohibitions of Title II of the Powerplant and Industrial Fuel Use Act 
of 1978 for any new electric powerplant to permit the use of certain 
fuel mixtures containing natural gas or petroleum.
    B5.12  Workover (operations to restore production, such as 
deepening, plugging back, pulling and resetting lines, and squeeze 
cementing) of an existing oil, gas, or geothermal well to restore 
production when workover operations will be restricted to the existing 
wellpad and not involve any new site preparation or earth work that 
would adversely affect adjacent habitat.

 B6. Categorical Exclusions Applicable to Environmental Restoration and 
                       Waste Management Activities

    B6.1  Small-scale, short-term cleanup actions, under RCRA, Atomic 
Energy Act, or other authorities, less than approximately 5 million 
dollars in cost and 5 years duration, to reduce risk to human health or 
the environment from the release or threat of release of a hazardous 
substance other than high-level radioactive waste and spent nuclear 
fuel, including treatment (e.g., incineration), recovery, storage, or 
disposal of wastes at existing facilities currently handling the type of 
waste involved in the action. These actions include, but are not limited 
to:
    (a) Excavation or consolidation of contaminated soils or materials 
from drainage channels, retention basins, ponds, and spill areas that 
are not receiving contaminated surface water or wastewater, if surface 
water or groundwater would not collect and if such actions would reduce 
the spread of, or direct contact with, the contamination;
    (b) Removal of bulk containers (for example, drums, barrels) that 
contain or may contain hazardous substances, pollutants, contaminants, 
CERCLA-excluded petroleum or natural gas products, or hazardous wastes 
(designated in 40 CFR part 261 or applicable state requirements), if 
such actions would reduce the likelihood of spillage, leakage, fire, 
explosion, or exposure to humans, animals, or the food chain;
    (c) Removal of an underground storage tank including its associated 
piping and underlying containment systems in compliance with RCRA, 
subtitle I; 40 CFR part 265, subpart J; and 40 CFR part 280, subparts F 
and G if such action would reduce the likelihood of spillage, leakage, 
or the spread of, or direct contact with, contamination;
    (d) Repair or replacement of leaking containers;
    (e) Capping or other containment of contaminated soils or sludges if 
the capping or containment would not affect future groundwater 
remediation and if needed to reduce migration of hazardous substances, 
pollutants, contaminants, or CERCLA-excluded petroleum and natural gas 
products into soil, groundwater, surface water, or air;
    (f) Drainage or closing of man-made surface impoundments if needed 
to maintain the integrity of the structures;
    (g) Confinement or perimeter protection using dikes, trenches, 
ditches, diversions, or installing underground barriers, if needed to 
reduce the spread of, or direct contact with, the contamination;
    (h) Stabilization, but not expansion, of berms, dikes, impoundments, 
or caps if needed to maintain integrity of the structures;
    (i) Drainage controls (for example, run-off or run-on diversion) if 
needed to reduce offsite migration of hazardous substances, pollutants, 
contaminants, or CERCLA-excluded petroleum or natural gas products or to 
prevent precipitation or run-off from other sources from entering the 
release area from other areas;
    (j) Segregation of wastes that may react with one another or form a 
mixture that could result in adverse environmental impacts;
    (k) Use of chemicals and other materials to neutralize the pH of 
wastes;
    (l) Use of chemicals and other materials to retard the spread of the 
release or to mitigate its effects if the use of such chemicals would 
reduce the spread of, or direct contact with, the contamination;
    (m) Installation and operation of gas ventilation systems in soil to 
remove methane or petroleum vapors without any toxic or radioactive co-
contaminants if appropriate filtration or gas treatment is in place;
    (n) Installation of fences, warning signs, or other security or site 
control precautions if

[[Page 666]]

humans or animals have access to the release; and
    (o) Provision of an alternative water supply that would not create 
new water sources if necessary immediately to reduce exposure to 
contaminated household or industrial use water and continuing until such 
time as local authorities can satisfy the need for a permanent remedy.
    B6.2  The siting, construction, and operation of temporary 
(generally less than 2 years) pilot-scale waste collection and treatment 
facilities, and pilot-scale (generally less than one acre) waste 
stabilization and containment facilities (including siting, 
construction, and operation of a small-scale laboratory building or 
renovation of a room in an existing building for sample analysis) if the 
action: (1) Supports remedial investigations/feasibility studies under 
CERCLA, or similar studies under RCRA, such as RCRA facility 
investigations/corrective measure studies, or other authorities, and (2) 
would not unduly limit the choice of reasonable remedial alternatives 
(by permanently altering substantial site area or by committing large 
amounts of funds relative to the scope of the remedial alternatives).
    B6.3  Improvements to environmental monitoring and control systems 
of an existing building or structure (for example, changes to scrubbers 
in air quality control systems or ion-exchange devices and other 
filtration processes in water treatment systems) if during subsequent 
operations (1) any substance collected by the environmental control 
systems would be recycled, released, or disposed of within existing 
permitted facilities and (2) there are applicable statutory or 
regulatory requirements or permit conditions for disposal, release, or 
recycling of any hazardous substance or CERCLA-excluded petroleum 
natural gas products that are collected or released in increased 
quantity or that were not previously collected or released.
    B6.4  Siting, construction (or modification or expansion), 
operation, and decommissioning of an onsite facility for storing 
packaged hazardous waste (as designated in 40 CFR part 261) for 90 days 
or less or for longer periods as provided in 40 CFR 262.34 (d), (e), or 
(f) (e.g., accumulation or satellite areas).
    B6.5  Siting, construction (or modification or expansion), 
operation, and decommissioning of an onsite facility for characterizing 
and sorting previously packaged waste or for overpacking waste, other 
than high-level radioactive waste, if operations do not involve 
unpacking waste. These actions do not include waste storage (covered 
under B6.4, B6.6, B6.10, and C16) or the handling of spent nuclear fuel.
    B6.6  Modification (excluding increases in capacity) of an existing 
structure used for storing, packaging, or repacking waste other than 
high-level radioactive waste or spent nuclear fuel, to handle the same 
class of waste as currently handled at that structure.
    B6.7  Under the Low-Level Radioactive Waste Policy Amendments Act of 
1985 (5(c)(5)), granting of a petition qualified under 10 CFR 730.6 for 
allocation of commercial disposal capacity for an unusual or unexpected 
volume of commercial low-level radioactive waste or denying such a 
petition when adequate storage capacity exists at the petitioner's 
facility.
    B6.8  Minor operational changes at an existing facility to minimize 
waste generation and for reuse of materials. These changes include, but 
are not limited to, adding filtration and recycle piping to allow reuse 
of machining oil, setting up a sorting area to improve process 
efficiency, and segregating two waste streams previously mingled and 
assigning new identification codes to the two resulting wastes.
    B6.9  Small-scale temporary measures to reduce migration of 
contaminated groundwater, including the siting, construction, operation, 
and decommissioning of necessary facilities. These measures include, but 
are not limited to, pumping, treating, storing, and reinjecting water, 
by mobile units or facilities that are built and then removed at the end 
of the action.
    B6.10  Siting, construction (or modification), operation, and 
decommissioning of a small upgraded or replacement facility (less than 
approximately 50,000 square feet in area) at a DOE site within or 
contiguous to an already developed area (where active utilities and 
currently used roads are readily accessible) for storage of waste that 
is already at the site at the time the storage capacity is to be 
provided. These actions do not include the storage of high-level 
radioactive waste, spent nuclear fuel or any waste that requires special 
precautions to prevent nuclear criticality. See also B6.4, B6.5, B6.6, 
and C16.

    B7. Categorical Exclusions Applicable to International Activities

    B7.1  Planning and implementation of emergency measures pursuant to 
the International Energy Program.
    B7.2  Approval of import or export of small quantities of special 
nuclear materials or isotopic materials in accordance with the Nuclear 
Non-Proliferation Act of 1978 and the ``Procedures Established Pursuant 
to the Nuclear Non Proliferation Act of 1978'' (43 FR 25326, June 9, 
1978).
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36239-36242, July 9, 
1996; 61 FR 64608, Dec. 6, 1996]

[[Page 667]]

 Appendix C to Subpart D to Part 1021--Classes of Actions that Normally 
                  Require EAs But Not Necessarily EISs

                            Table of Contents

C1. [Reserved]
C2. Rate increases more than inflation, not power marketing

    C3. Electric power marketing rate changes, not within normal 
operating limits.
    C4. Reconstructing and constructing electric powerlines.
C5. Implementation of Power Marketing Administration systemwide 
          vegetation management program
C6. Implementation of Power Marketing Administration systemwide erosion 
          control program
    C7. Allocation of electric power, no major new generation resource/
major changes in operation of generation resources/major new loads.
C8. Protection of fish and wildlife habitat
C9. Field demonstration projects for wetlands
C10. [Reserved]
C11. Siting/construction/operation/decommissioning of low- or medium-
          energy particle acceleration facility with primary beam energy 
          greater than approximately 100 MeV
C12. Siting/construction/operation of energy system prototypes
C13. Import/export natural gas, minor new construction (other than a 
          cogeneration powerplant)
C14. Siting/construction/operation of water treatment facilities greater 
          than approximately 250,000 gallons per day capacity
C15. Siting/construction/operation of research and development 
          incinerators/nonhazardous waste incinerators
C16. Siting/construction/operation/decommissioning of large waste 
          storage facilities

    C1  [Reserved]
    C2  Rate increases for products or services marketed by DOE, except 
for electric power, power transmission, and other products or services 
provided by the Power Marketing Administrations, and approval of rate 
increases for non-DOE entities, that exceed the change in the overall 
price level in the economy (inflation), as measured by the GNP fixed 
weight price index published by the Department of Commerce, during the 
period since the last rate increase for that product or service.
    C3  Rate changes for electric power, power transmission, and other 
products or services provided by Power Marketing Administrations that 
are based on changes in revenue requirements if the operations of 
generation projects would not remain within normal operating limits.
    C4  Reconstructing (upgrading or rebuilding) existing electric 
powerlines more than approximately 20 miles in length or constructing 
new electric powerlines more than approximately 10 miles in length.
    C5  Implementation of a Power Marketing Administration system-wide 
vegetation management program.
    C6  Implementation of a Power Marketing Administration system-wide 
erosion control program.
    C7  Establishment and implementation of contracts, policies, 
marketing plans, or allocation plans for the allocation of electric 
power that do not involve (1) the addition of new generation resources 
greater than 50 average megawatts, (2) major changes in the operating 
limits of generation resources greater than 50 average megawatts, or (3) 
service to discrete new loads of 10 average megawatts or more over a 12 
month period. This applies to power marketing operations and to siting, 
construction, and operation of power generating facilities at DOE sites.
    C8  Protection, restoration, or improvement of fish and wildlife 
habitat, fish passage facilities, and fish hatcheries if the proposed 
action may adversely affect an environmentally sensitive resource.
    C9  Field demonstration projects for wetlands mitigation, creation, 
and restoration.
    C10  [Reserved]
    C11  Siting, construction (or modification), operation, and 
decommissioning of a low- or medium-energy (but greater than 
approximately 100 MeV primary beam energy) particle acceleration 
facility, including electron beam acceleration facilities, and 
associated beamlines, storage rings, colliders, and detectors for 
research and medical purposes, within or contiguous to an already 
developed area (where active utilities and currently used roads are 
readily accessible).
    C12  Siting, construction, and operation of energy system prototypes 
including, but not limited to, wind resource, hydropower, geothermal, 
fossil fuel, biomass, and solar energy pilot projects.
    C13  Approval or disapproval of an application to import/export 
natural gas under section 3 of the Natural Gas Act involving minor new 
construction (other than a cogeneration powerplant), such as adding new 
connections, looping, or compression to an existing natural gas pipeline 
or converting an existing oil pipeline to a natural gas pipeline using 
the same right-of-way.
    C14  Siting, construction (or expansion), operation, and 
decommissioning of wastewater, surface water, potable water, and sewage 
treatment facilities with a total capacity greater than approximately 
250,000 gallons per day, and of lower capacity wastewater and surface 
water treatment facilities

[[Page 668]]

whose liquid discharges are not subject to external regulation.
    C15  Siting, construction (or expansion), and operation of research 
and development incinerators for any type of waste and of any other 
incinerators that would treat nonhazardous solid waste (as designated in 
40 CFR Part 261.4(b)).
    C16  Siting, construction (or modification to increase capacity), 
operation, and decommissioning of packaging and unpacking facilities 
(that may include characterization operations) and large storage 
facilities (greater than approximately 50,000 square feet in area) for 
waste, except high-level radioactive waste, generated onsite or 
resulting from activities connected to site operations. These actions do 
not include storage, packaging, or unpacking of spent nuclear fuel. See 
also B6.4, B6.5, B6.6, and B6.10.
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36242, July 9, 1996; 61 
FR 64608, Dec. 6, 1996]

 Appendix D to Subpart D to Part 1021--Classes of Actions That Normally 
                              Require EISs

                            Table of Contents

D1. Strategic Systems
D2. Siting/construction/operation/decommissioning of nuclear fuel 
          reprocessing facilities
D3. Siting/construction/operation/decommissioning of uranium enrichment 
          facilities
D4. Siting/construction/operation/decommissioning of reactors
D5. Main transmission system additions
D6. Integrating transmission facilities

    D7. Allocation of electric power, major new generation resources/
major changes in operation of generation resources/major loads.
D8. Import/export of natural gas, involving major new facilities
D9. Import/export of natural gas, involving significant operational 
          change
D10. Siting/construction/operation/decommissioning of major treatment, 
          storage, and disposal facilities for high-level waste and 
          spent nuclear fuel
D11. Siting/construction/expansion of waste disposal facility for 
          transuranic waste
D12. Siting/construction/operation of incinerators (other than research 
          and development, other than nonhazardous solid waste)

    D1  Strategic Systems, as defined in DOE Order 430.1, ``Life-Cycle 
Asset Management,'' and designated by the Secretary.
    D2  Siting, construction, operation, and decommissioning of nuclear 
fuel reprocessing facilities.
    D3  Siting, construction, operation, and decommissioning of uranium 
enrichment facilities.
    D4  Siting, construction, operation, and decommissioning of power 
reactors, nuclear material production reactors, and test and research 
reactors.
    D5  Main transmission system additions (that is, additions of new 
transmission lines) to a Power Marketing Administration's main 
transmission grid.
    D6  Integrating transmission facilities (that is, transmission 
system additions for integrating major new sources of generation into a 
Power Marketing Administration's main grid).
    D7  Establishment and implementation of contracts, policies, 
marketing plans or allocation plans for the allocation of electric power 
that involve (1) the addition of new generation resources greater than 
50 average megawatts, (2) major changes in the operating limits of 
generation resources greater than 50 average megawatts, or (3) service 
to discrete new loads of 10 average megawatts or more over a 12 month 
period. This applies to power marketing operations and to siting 
construction, and operation of power generating facilities at DOE sites.
    D8  Approval or disapproval of an application to import/export 
natural gas under section 3 of the Natural Gas Act involving major new 
natural gas pipeline construction or related facilities, such as 
construction of new liquid natural gas (LNG) terminals, regasification 
or storage facilities, or a significant expansion of an existing 
pipeline or related facility or LNG terminal, regasification, or storage 
facility.
    D9  Approval or disapproval of an application to import/export 
natural gas under section 3 of the Natural Gas Act involving a 
significant operational change, such as a major increase in the quantity 
of liquid natural gas imported or exported.
    D10  Siting, construction, operation, and decommissioning of major 
treatment, storage, and disposal facilities for high-level waste and 
spent nuclear fuel, including geologic repositories, but not including 
onsite replacement or upgrades of storage facilities for spent nuclear 
fuel at DOE sites where such replacement or upgrade will not result in 
increased storage capacity.
    D11  Siting, construction (or expansion), and operation of a 
disposal facility for transuranic (TRU) waste and TRU mixed waste (TRU 
waste also containing hazardous waste as designated in 40 CFR part 261).
    D12  Siting, construction, and operation of incinerators, other than 
research and development incinerators or incinerators for nonhazardous 
solid waste (as designated in 40 CFR part 261.4(b)).
[57 FR 15144, Apr. 24, 1992, as amended at 61 FR 36243, July 9, 1996; 61 
FR 64608, Dec. 6, 1996]

[[Page 669]]



PART 1022--COMPLIANCE WITH FLOODPLAIN/WETLANDS ENVIRONMENTAL REVIEW REQUIREMENTS--Table of Contents




                           Subpart A--General

Sec.
1022.1  Background.
1022.2  Purpose and scope.
1022.3  Policy.
1022.4  Definitions.
1022.5  Applicability.

          Subpart B--Procedures for Floodplain/Wetlands Review

1022.11  Floodplain/wetlands determination.
1022.12  Floodplain/wetlands assessment.
1022.13  Applicant responsibilities.
1022.14  Public review.
1022.15  Notification of decision.
1022.16  Requests for authorizations or appropriations.
1022.17  Follow-up.
1022.18  Timing of floodplain/wetlands actions.
1022.19  Selection of a lead agency and consultation among participating 
          agencies.
1022.20  Public inquiries.
1022.21  Updating regulations.

    Authority: E.O. 11988 (May 24, 1977); and E.O. 11990 (May 24, 1977).

    Source: 44 FR 12596, Mar. 7, 1979, unless otherwise noted.



                           Subpart A--General



Sec. 1022.1  Background.

    Executive Order (E.O.) 11988--Floodplain Management (May 24, 1977), 
requires each Federal agency to issue or amend existing regulations and 
procedures to ensure that the potential effects of any action it may 
take in a floodplain are evaluated and that its planning programs and 
budget requests reflect consideration of flood hazards and floodplain 
management. Guidance for implementation of the Order is provided in the 
Floodplain Management Guidelines of the U.S. Water Resources Council (40 
FR 6030, Feb. 10, 1978). Executive Order 11990--Protection of Wetlands 
(May 24, 1977), requires all Federal agencies to issue or amend existing 
procedures to ensure consideration of wetlands protection in 
decisionmaking. It is the intent of both Executive orders that Federal 
agencies implement the floodplain/wetlands requirements through existing 
procedures such as those established to implement the National 
Environmental Policy Act (NEPA) of 1969. In those instances where the 
impacts of actions in floodplains and/or wetlands are not significant 
enough to require the preparation of an environmental impact statement 
(EIS) under section 102(2)(C) of NEPA, alternative floodplain/wetlands 
evaluation procedures are to be established.



Sec. 1022.2  Purpose and scope.

    (a) This part establishes policy and procedures for discharging the 
Department of Energy's (DOE's) responsibilities with respect to 
compliance with E.O. 11988 and E.O. 11990, including:
    (1) DOE policy regarding the consideration of floodplain/wetlands 
factors in DOE planning and decisionmaking; and
    (2) DOE procedures for identifying proposed actions located in 
floodplain/wetlands, providing opportunity for early public review of 
such proposed actions, preparing floodplain/wetlands assessments, and 
issuing statements of findings for actions in a floodplain.
    (b) To the extent possible, DOE will accommodate the requirements of 
E.O. 11988 and E.O. 11990 through applicable DOE NEPA procedures.



Sec. 1022.3  Policy.

    DOE shall exercise leadership and take action to:
    (a) Avoid to the extent possible the long- and short-term adverse 
impacts associated with the destruction of wetlands and the occupancy 
and modification of floodplains and wetlands, and avoid direct and 
indirect support of floodplain and wetlands development wherever there 
is a practicable alternative.
    (b) Incorporate floodplain management goals and wetlands protection 
considerations into its planning, regulatory, and decisionmaking 
processes, and shall to the extent practicable:
    (1) Reduce the hazard and risk of flood loss;
    (2) Minimize the impact of floods on human safety, health, and 
welfare;
    (3) Restore and preserve natural and beneficial values served by 
floodplains;

[[Page 670]]

    (4) Require the construction of DOE structures and facilities to be, 
at a minimum, in accordance with the standards and criteria set forth 
in, and consistent with the intent of, the regulations promulgated by 
the Federal Insurance Administration pursuant to the National Flood 
Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq.;
    (5) Minimize the destruction, loss, or degradation of wetlands;
    (6) Preserve and enhance the natural and beneficial values of 
wetlands;
    (7) Promote public awareness of flood hazards by providing 
conspicuous delineations of past and probable flood heights on DOE 
property which has suffered flood damage or is in an identified flood 
hazard area and which is used by the general public; and
    (8) Prior to the completion of any financial transaction related to 
an area located in a floodplain, which is guaranteed, approved, 
regulated or insured by DOE, inform any private participating parties of 
the flood-related hazards involved.
    (c) Undertake a careful evaluation of the potential effects of any 
DOE action taken in a floodplain and any new construction undertaken by 
DOE in wetlands not located in a floodplain.
    (d) Identify, evaluate, and, as appropriate implement alternative 
actions which may avoid or mitigate adverse floodplain/wetlands impacts; 
and
    (e) Provide opportunity for early public review of any plans or 
proposals for actions in floodplains and new construction in wetlands.



Sec. 1022.4  Definitions.

    For purposes of this part:
    (a) Action means any DOE activity, including, but not limited to:
    (1) Acquiring, managing, and disposing of Federal lands and 
facilities;
    (2) DOE-undertaken, financed, or assisted construction and 
improvements; and
    (3) The conduct of DOE activities and programs affecting land use, 
including but not limited to water and related land resources planning, 
regulating and licensing activities.
    (b) Base Flood means that flood which has a 1 percent chance of 
occurrence in any given year (also known as a 100-year flood).
    (c) Critical Action means any activity for which even a slight 
chance of flooding would be too great. Such actions may include the 
storage of highly volatile, toxic, or water reactive materials.
    (d) Environmental Assessment (EA) means a document for which DOE is 
responsible that serves to: (1) Briefly provide sufficient evidence and 
analysis for determining whether to prepare an environmental impact 
statement (EIS) or a finding of no significant impact, (2) aid DOE 
compliance with NEPA when no EIS is necessary, and (3) facilitate 
preparation of an EIS when one is necessary. The EA shall include brief 
discussions of the need for the proposal, alternatives, environmental 
impacts of the proposed action and alternatives, and a listing of 
agencies and persons consulted.
    (e) Environmental Impact Statement means a document prepared in 
accordance with the requirements of section 102(2)(C) of NEPA.
    (f) Facility means any man-placed item other than a structure.
    (g) Finding of No Significant Impact (FONSI) means a document 
prepared by DOE which briefly presents the reasons why an action will 
not significantly effect on the human environment and for which an EIS 
therefore will not be prepared.
    (h) Flood or Flooding means a temporary condition of partial or 
complete inundation of normally dry land areas from the overflow of 
inland and/or tidal waters, and/or the unusual and rapid accumulation or 
runoff of surface waters from any source.
    (i) Floodplain means the lowlands adjoining inland and coastal 
waters and relatively flat areas and floodprone areas of offshore 
islands including, at a minimum, that area inundated by a 1 percent or 
greater chance flood in any given year. The base floodplain is defined 
as the 100-year (1.0 percent) floodplain. The critical action floodplain 
is defined as the 500-year (0.2 percent) floodplain.
    (j) Floodplain Action means any DOE action which takes place in a 
floodplain.

[[Page 671]]

    (k) Floodplain/Wetlands Assessment means an evaluation consisting of 
a description of a proposed action, a discussion of its effects on the 
floodplain/wetlands, and consideration of alternatives.
    (l) Floodproofing means the modification of individual structures 
and facilities, their sites, and their contents to protect against 
structural failure, to keep water out, or to reduce the effects of water 
entry.
    (m) High Hazard Areas means those portions of riverine and coastal 
floodplains nearest the source of flooding which are frequently flooded 
and where the likelihood of flood losses and adverse impacts on the 
natural and beneficial values served by floodplains is greatest.
    (n) Minimize means to reduce to the smallest degree practicable.
    (o) New Construction for the purpose of compliance with E.O. 11990 
includes draining, dredging, channelizing, filling, diking, impounding, 
and related activities and any structures or facilities begun or 
authorized after October 1, 1977.
    (p) Practicable means capable of being accomplished within existing 
constraints. The test of what is practicable depends on the situation 
and includes consideration of many factors, such as environment, cost, 
technology, and implementation time.
    (q) Public Notice means a brief notice published in the Federal 
Register, and circulated to affected and interested persons and 
agencies, which describes a proposed floodplain/wetlands action and 
affords the opportunity for public review.
    (r) Preserve means to prevent modification to the natural 
floodplain/wetlands environment or to maintain it as closely as possible 
to its natural state.
    (s) Restore means to reestablish a setting or environment in which 
the natural functions of the floodplain can again operate.
    (t) Statement of Findings means a statement issued pursuant to E.O. 
11988 which explains why a DOE action is proposed in a floodplain, lists 
alternatives considered, indicates whether the action conforms to State 
and local floodplain standards, and describes steps to be taken to 
minimize harm to or within the floodplain.
    (u) Structure means a walled or roofed building, including mobile 
homes and gas or liquid storage tanks.
    (v) Wetlands means those areas that are inundated by surface or 
groundwater with a frequency sufficient to support and under normal 
circumstances does or would support a prevalence of vegetative or 
aquatic life that requires saturated or seasonally saturated soil 
conditions for growth and reproduction. Wetlands generally include 
swamps, marshes, bogs, and similar areas such as sloughs, potholes, wet 
meadows, river overflow, mudflats, and natural ponds.
    (w) Wetlands Action means an action undertaken by DOE in a wetlands 
not located in a floodplain, subject to the exclusions specified at 
Sec. 1022.5(c).



Sec. 1022.5  Applicability.

    (a) This part shall apply to all organizational units of DOE, except 
that it shall not apply to the Federal Energy Regulatory Commission.
    (b) This part shall apply to all proposed floodplain/wetlands 
actions, including those sponsored jointly with other agencies, where 
practicable alternatives to the proposed action are still available. 
With respect to programs and projects for which the appropriate 
environmental review has been completed or a final EIS filed prior to 
the effective date of these regulations, DOE shall, in lieu of the 
procedures set forth in this part, review the alternatives identified in 
the environmental review or in the final EIS to determine whether an 
alternative action may avoid or minimize impacts on the floodplain/
wetlands. If project or program implementation has progressed to the 
point where review of alternatives is no longer practicable, or if DOE 
determines after a review of alternatives to take action in a 
floodplain, DOE shall design or modify the selected alternative in order 
to minimize potential harm to or within the floodplain and to restore 
and preserve floodplain values. DOE shall publish in the Federal 
Register, a brief description of measures to be employed and shall 
endeavor to notify appropriate Federal, State, and local agencies and

[[Page 672]]

persons or groups known to be interested in the action.
    (c) This part shall not apply to wetlands projects under 
construction prior to October 1, 1977; wetlands projects for which all 
of the funds have been appropriated through fiscal year 1977; or 
wetlands projects and programs for which a draft or final EIS was filed 
prior to October 1, 1977. With respect to proposed actions located in 
wetlands (not located in a floodplain), this part shall not apply to the 
issuance by DOE of permits, licenses, or allocations to private parties 
for activities involving wetlands which are located on non-Federal 
property.
    (d) This part applies to activities in furtherance of DOE 
responsibilities for acquiring, managing, and disposing of Federal lands 
and facilities. When property in a floodplain or wetlands is proposed 
for lease, easement, right-of-way, or disposal to non-Federal public or 
private parties, DOE shall: (1) Identify those uses that are restricted 
under Federal, State, or local floodplains or wetlands regulations; (2) 
attach other appropriate restrictions to the uses of the property; or 
(3) withhold the property from conveyance.
    (e) This part applies to activities in furtherance of DOE 
responsibilities for providing federally undertaken, financed, or 
assisted construction and improvements. Applicants for assistance shall 
provide DOE with an analysis of the impacts which would result from any 
proposed wetland or floodplain activity.
    (f) This part applies to activities in furtherance of DOE 
responsibilities for conducting Federal activities and programs 
affecting land use, including but not limited to, water and related 
resource planning, regulating and licensing activity.
    (g) This part ordinarily shall not apply to routine maintenance of 
existing facilities and structures on DOE property within a floodplain/
wetlands since such actions normally have minimal or no adverse impact 
on a floodplain/wetlands. However, where unusual circumstances indicate 
the possibility of impact on a floodplain/wetlands, DOE shall consider 
the need for a floodplain/wetlands assessment for such actions.
    (h) The policies and procedures of this part which are applicable to 
floodplain actions shall apply to all proposed actions which occur in a 
wetlands located in a floodplain.



          Subpart B--Procedures for Floodplain/Wetlands Review



Sec. 1022.11  Floodplain/wetlands determination.

    (a) Concurrent with its review of a proposed action to determine 
appropriate NEPA requirements, DOE shall determine the applicability of 
the floodplain management and wetlands protection requirements of this 
part.
    (b) In making the floodplain determination, DOE shall utilize the 
Flood Insurance Rate Maps (FIRM's) or the Flood Hazard Boundary Maps 
(FHBM's) prepared by the Federal Insurance Administration of the 
Department of Housing and Urban Development to determine if a proposed 
action is located in the base or critical action floodplain, as 
appropriate. For a proposed action in an area of predominantly Federal 
or State land holdings where FIRM or FHBM maps are not available, 
information shall be sought from the land administering agency (e.g., 
Bureau of Land Management, Soil Conservation Service, etc.) or from 
agencies with floodplain analysis expertise.
    (c) In making the wetlands determination, DOE shall utilize 
information available from the following sources, as appropriate:
    (1) U.S. Fish and Wildlife Service National Wetlands Inventory;
    (2) U.S. Department of Agriculture Soil Conservation Service Local 
Identification Maps;
    (3) U.S. Geological Survey Topographic Maps;
    (4) State wetlands inventories; and
    (5) Regional or local government-sponsored wetland or land use 
inventories.



Sec. 1022.12  Floodplain/wetlands assessment.

    (a) If DOE determines, pursuant to Secs. 1022.5 and 1022.11, that 
this part is applicable to the proposed action, DOE shall prepare a 
floodplain/wetlands assessment, which shall contain the following 
information:

[[Page 673]]

    (1) Project Description. This section shall describe the nature and 
purpose of the proposed action, and shall include a map showing its 
location with respect to the floodplain and/or wetlands. For actions 
located in a floodplain, the high hazard areas shall be delineated and 
the nature and extent of the potential hazard shall be discussed.
    (2) Floodplain/Wetlands Effects. This section shall discuss the 
positive and negative, direct and indirect, and long- and short-term 
effects of the proposed action on the floodplain and/or wetlands. The 
effects of a proposed floodplain action on lives and property, and on 
natural and beneficial floodplain values shall be evaluated. For actions 
taken in wetlands, the effects on the survival, quality, and natural and 
beneficial values of the wetlands shall be evaluated.
    (3) Alternatives. Alternatives to the proposed action which may 
avoid adverse effects and incompatible development in the floodplain/
wetlands shall be considered, including alternate sites, actions, and no 
action. Measures that mitigate the adverse effects of actions in a 
floodplain or wetlands, including but not limited to minimum grading 
requirements, runoff controls, design and construction constraints, and 
protection of ecology-sensitive areas shall be addressed.
    (b) For proposed floodplain or wetlands actions for which an EA or 
EIS is required, the floodplain/wetlands assessment shall be prepared 
concurrent with and included in the appropriate NEPA document.
    (c) For floodplain/wetlands actions for which neither an EA or EIS 
is prepared, a separate document shall be issued as the floodplain/
wetlands assessment.



Sec. 1022.13  Applicant responsibilities.

    DOE may require applicants for a DOE permit, license, certificate, 
financial assistance, contract award, allocation or other entitlement to 
submit a report on a proposed floodplain/wetlands action. The report 
shall contain the information specified at Sec. 1022.12 and shall be 
prepared in accordance with the guidance contained in this part.



Sec. 1022.14  Public review.

    (a) For proposed floodplain/wetlands actions for which an EIS is 
required, the opportunity for early public review will be provided 
through applicable NEPA procedures. A Notice of Intent to prepare an EIS 
may be used to satisfy this requirement.
    (b) For proposed floodplain/wetlands actions for which no EIS is 
required, DOE shall provide the opportunity for early public review 
through publication of a Public Notice, which shall be published in the 
Federal Register, as soon as practicable after a determination that a 
floodplain/wetlands may be affected and at least 15 days prior to the 
issuance of a statement of findings with respect to a proposed 
floodplain action. DOE shall take appropriate steps to inform Federal, 
State, and local agencies and persons or groups known to be interested 
in or affected by the proposed floodplain/wetlands action. The Public 
Notice shall include a description of the proposed action and its 
location and may be incorporated with other notices issued with respect 
to the proposed action.
    (c) Following publication of the Public Notice, DOE shall allow 15 
days for public comment prior to making its decision on the proposed 
action, except as specified in Sec. 1022.18(c). At the close of the 
public comment period, DOE shall reevaluate the practicability of 
alternatives to the proposed floodplain/wetlands action and the 
mitigating measures, taking into account all substantive comments 
received.



Sec. 1022.15  Notification of decision.

    (a) If DOE finds that no practicable alternative to locating in the 
floodplain/wetlands is available, consistent with the policy set forth 
in E.O. 11988, DOE shall, prior to taking action, design or modify its 
action in order to minimize potential harm to or within the floodplain/
wetlands.
    (b) For actions which will be located in a floodplain, DOE shall 
publish a brief (not to exceed three pages) statement of findings which 
shall contain:
    (1) A brief description of the proposed action, including a location 
map;
    (2) An explanation indicating why the action is proposed to be 
located in the floodplain;

[[Page 674]]

    (3) A list of alternatives considered;
    (4) A statement indicating whether the action conforms to applicable 
State or local floodplain protection standards; and
    (5) A brief description of steps to be taken to minimize potential 
harm to or within the floodplain.

For floodplain actions which require preparation of an EA or EIS, the 
statement of findings may be incorporated into the FONSI or final EIS, 
as appropriate, or issued separately. Where no EA or EIS is required, 
DOE shall publish the statement of findings in the Federal Register and 
distribute copies to Federal, State, and local agencies and others who 
submitted comments as a result of the Public Notice. For floodplain 
actions subject to the Office of Management and Budget (OMB) Circular A-
95, DOE shall send the statement of findings to the State and areawide 
A-95 Clearinghouses for the geographic area affected.



Sec. 1022.16  Requests for authorizations or appropriations.

    DOE shall indicate in any requests for new authorizations or 
appropriations transmitted to OMB, if a proposed action will be located 
in a floodplain or wetlands, whether the proposed action is in accord 
with the requirements of E.O. 11990 E.O. 11988, and these regulations.



Sec. 1022.17  Follow-up.

    For those DOE actions taken in floodplain/wetlands, DOE shall verify 
that the implementation of the selected alternative, particularly with 
regard to any adopted mitigating measures, is proceeding as described in 
the floodplain/wetlands assessment and statement of findings.



Sec. 1022.18  Timing of floodplain/wetlands actions.

    (a) Prior to implementing a proposed floodplain action, DOE shall 
endeavor to allow at least 15 days of public review after publication of 
the statement of findings.
    (b) With respect to wetlands actions (not located in a floodplain), 
DOE shall take no action prior to 15 days after publication of the 
Public Notice in the Federal Register.
    (c) Where emergency circumstances, statutory deadlines, of 
overriding considerations of program or project expense or effectiveness 
exist, the minimum time periods may be waived.



Sec. 1022.19  Selection of a lead agency and consultation among participating agencies.

    When DOE and one or more other Federal agencies are directly 
involved in a floodplain/wetlands action, DOE shall consult with such 
other agencies to determine if a floodplain/wetlands assessment is 
required, to identify the appropriate lead or joint agency 
responsibilities, to identify the applicable regulations, and to 
establish procedures for interagency coordination during the 
environmental review process.



Sec. 1022.20  Public inquiries.

    Inquiries regarding DOE's floodplain/wetlands activities may be 
directed to the Assistant Secretary for Environment, Department of 
Energy, Washington, DC 20545.



Sec. 1022.21  Updating regulations.

    DOE shall periodically review these regulations, evaluate their 
effectiveness, and make appropriate revisions.



PART 1023--CONTRACT APPEALS--Table of Contents




            Overview: Organization, Functions and Authorities

Sec.
1023.1  Introductory material on the Board and its functions.
1023.2  Organization and location of the Board.
1023.3  Principles of general applicability.
1023.4  Authorities.
1023.5  Duties and responsibilities of the Chair.
1023.6  Duties and responsibilities of Board members and staff.
1023.7  Board decisions; assignment of judges.
1023.8  Alternative dispute resolution (ADR).
1023.9  General guidelines.

            Subpart A--Rules of the Board of Contract Appeals

1023.101  Scope and purpose.
1023.102  Effective date.
1023.120  Rules of practice.

[[Page 675]]

                          Subpart B  [Reserved]

   Subpart C--Procedures Relating to Awards Under the Equal Access to 
                               Justice Act

                           General Provisions

1023.300  Definitions.
1023.301  Purpose of these rules.
1023.302  When the Act applies.
1023.303  Proceedings covered.
1023.304  Eligibility of applicants.
1023.305  Standards for awards.
1023.306  Allowable fees and expenses.
1023.307  [Reserved]
1023.308  Awards against other agencies.

                  Information Required from Applicants

1023.310  Contents of application--overview.
1023.311  Net worth exhibit.
1023.312  Documentation of fees and expenses.
1023.313  When an application may be filed.

                 Procedures for Considering Applications

1023.320  Filing and service of documents.
1023.321  Answer to application.
1023.322  Reply.
1023.323  Comments by other parties.
1023.324  Settlement.
1023.325  Further proceedings.
1023.326  Board decision.
1023.327  Reconsideration.
1023.328  Judicial review.
1023.329  Payment of award.

    Authority: 42 U.S.C. 2201, 5814, 7151, 7251; 5 U.S.C. 301; 41 U.S.C. 
321, 322, 601-613; 5 U.S.C. 571-583; 9 U.S.C. 1-16, unless otherwise 
noted.

            Overview: Organization, Functions and Authorities

    Source: 62 FR 24806, May 7, 1997, unless otherwise noted.



Sec. 1023.1  Introductory material on the Board and its functions.

    (a) The Energy Board of Contract Appeals (``EBCA'' or ``Board'') 
functions as a separate quasi-judicial entity within the Department of 
Energy (DOE). The Secretary has delegated to the Board's Chair the 
appropriate authorities necessary for the Board to maintain its separate 
operations and decisional independence.
    (b) The Board's primary function is to hear and decide appeals from 
final decisions of DOE contracting officers on claims pursuant to the 
Contract Disputes Act of 1978 (CDA), 41 U.S.C. 601 et seq. The Board's 
Rules of Practice for these appeals are set forth in subpart A of this 
part. Rules relating to recovery of attorney fees and other expenses 
under the Equal Access to Justice Act are set forth in subpart C of this 
part.
    (c) In addition to its functions under the CDA, the Secretary in 
Delegation Order 0204-162 has authorized the Board to:
    (1) Adjudicate appeals from agency contracting officers' decisions 
not taken pursuant to the CDA (non-CDA disputes) under the Rules of 
Practice set forth in subpart A of this part;
    (2) Perform other quasi-judicial functions that are consistent with 
the Board members' duties under the CDA as directed by the Secretary;
    (3) Serve as the Energy Financial Assistance Appeals Board to hear 
and decide certain appeals by the Department's financial assistance 
recipients as provided in 10 CFR 600.22, under Rules of Procedure set 
forth in 10 CFR part 1024;
    (4) Serve as the Energy Invention Licensing Appeals Board to hear 
and decide appeals from license terminations, denials of license 
applications and petitions by third-parties for license terminations, as 
provided in 10 CFR part 781, under Rules of Practice set forth in 
subpart A of this part, modified by the Board as determined to be 
necessary and appropriate with advance notice to the parties; and
    (5) Serve as the Energy Patent Compensation Board to hear and 
decide, as provided in 10 CFR part 780, certain applications and 
petitions filed under authority provided by the Atomic Energy Act of 
1954, ch. 1073, 68 Stat. 919 (1954), and the Invention Secrecy Act, 35 
U.S.C. 181-188, including:
    (i) Whether a patent is affected with the public interest;
    (ii) Whether a license to a patent affected by the public interest 
should be granted and equitable terms therefor; and
    (iii) Whether there should be allotment of royalties, award, or 
compensation to a party contributing to the making of certain categories 
of inventions or discoveries, or an owner of a patent within certain 
categories, under Rules of Practice set forth in subpart A of this part, 
modified by the Board as

[[Page 676]]

determined to be necessary and appropriate, with advance notice to the 
parties.
    (d) The Board provides alternative disputes resolution neutral 
services and facilities, as agreed between the parties and the Board, 
for:
    (1) Disputes related to the Department's prime contracts and to 
financial assistance awards made by the Department.
    (2) Disputes related to contracts between the Department's cost-
reimbursement contractors, including Management and Operating 
Contractors (M&Os) and Environmental Remediation Contractors (ERMCs), 
and their subcontractors. Additionally, with the consent of both the 
responsible prime DOE cost-reimbursement contractor and the cognizant 
DOE Contracting Officer, the Board may provide neutral services and 
facilities for disputes under second tier subcontracts where the costs 
of litigating the dispute might be ultimately charged to the DOE as 
allowable costs through the prime contract.
    (3) Other matters involving DOE procurement and financial 
assistance, as appropriate.



Sec. 1023.2  Organization and location of the Board.

    (a) Location of the Board. (1) The Board's offices are located at, 
and hand and commercial parcel deliveries should be made to: Board of 
Contract Appeals, U.S. Department of Energy, 950 L'Enfant Plaza, SW., 
Suite 810, Washington, DC 20024.
    (2) The Board's mailing address is as follows. The entire nine digit 
ZIP code should be used to avoid delay: Board of Contract Appeals, U.S. 
Department of Energy, HG-50, Building 950, Washington, DC 20585-0116.
    (3) The Board's telephone numbers are (202) 426-9316 (voice) and 
(202) 426-0215 (facsimile).
    (b) Organization of the Board. As required by the CDA, the Board 
consists of a Chair, a Vice Chair, and at least one other member. 
Members are designated Administrative Judges. The Chair is designated 
Chief Administrative Judge and the Vice Chair, Deputy Chief 
Administrative Judge.



Sec. 1023.3  Principles of general applicability.

    (a) Adjudicatory functions. The following principles shall apply to 
all adjudicatory activities whether pursuant to the authority of the 
CDA, authority delegated under this part, or authority of other laws, 
rules, or directives.
    (1) The Board shall hear and decide each case independently, fairly, 
and impartially.
    (2) Decisions shall be based exclusively upon the record established 
in each case. Written or oral communication with the Board by or for one 
party is not permitted without participation or notice to other parties. 
Except as provided by law, no person or agency, directly or indirectly 
involved in a matter before the Board, may submit off the record to the 
Board or the Board's staff any evidence, explanation, analysis, or 
advice (whether written or oral) regarding any matter at issue in an 
appeal, nor shall any member of the Board or of the Board's staff accept 
or consider ex parte communications from any person. This provision does 
not apply to consultation among Board members or staff or to other 
persons acting under authority expressly granted by the Board with 
notice to parties. Nor does it apply to communications concerning the 
Board's administrative functions or procedures, including ADR.
    (3) Decisions of the Board shall be final agency decisions and shall 
not be subject to administrative appeal or administrative review.
    (b) Alternative Dispute Resolution (ADR) Functions. (1) Board judges 
and personnel shall perform ADR related functions impartially, with 
procedural fairness, and with integrity and diligence.
    (2) Ex parte communications with Board staff and judges limited to 
the nature, procedures, and availability of ADR through the Board are 
permitted and encouraged. Once parties have agreed to engage in ADR and 
have entered into an ADR agreement accepted by the Board, ex parte 
communications by Board neutrals, support staff and parties shall be as 
specified by any applicable agreements or protocols and as is consistent 
with law, integrity, and fairness.

[[Page 677]]

    (3) Board-supplied neutrals and support personnel shall keep ADR 
matters confidential and comply with any confidentiality requirements of 
ADR agreements accepted by the Board. Board personnel may not disclose 
any confidential information unless permitted by the parties or required 
to do so by law.



Sec. 1023.4  Authorities.

    (a) Contract Disputes Act Authorities. The CDA imposes upon the 
Board the duty, and grants it the powers necessary, to hear and decide, 
or to otherwise resolve through agreed procedures, appeals from 
decisions made by agency contracting officers on contractor claims 
relating to contracts entered into by the DOE or relating to contracts 
of another agency, as provided in Section 8(d) of the CDA, 41 U.S.C. 
607(d). The Board may issue rules of practice or procedure for 
proceedings pursuant to the CDA. The CDA also imposes upon the Board the 
duty, and grants it powers necessary, to act upon petitions for orders 
directing contracting officers to issue decisions on claims relating to 
such contracts, 41 U.S.C. 605(c)(4). The Board may apply through the 
Attorney General to an appropriate United States District Court for an 
order requiring a person, who has failed to obey a subpoena issued by 
the Board, to produce evidence or to give testimony, or both, 41 U.S.C. 
610.
    (b) General Powers and Authorities. The Board's general powers 
include, but are not limited to, the powers to:
    (1) Manage its cases and docket; issue procedural orders; conduct 
conferences and hearings; administer oaths; authorize and manage 
discovery, including depositions and the production of documents or 
other evidence; take official notice of facts within general knowledge; 
call witnesses on its own motion; engage experts; dismiss actions with 
or without prejudice; decide all questions of fact or law raised in an 
action; and make and publish rules of practice and procedure;
    (2) Exercise, in proceedings to which it applies, all powers granted 
to arbitrators by the Federal Arbitration Act, 9 U.S.C. 1-14, including 
the power to issue summonses.
    (c) In addition to its authorities under the CDA, the Board has been 
delegated by Delegation Order 0204-162 issued by the Secretary of 
Energy, the following authorities:
    (1) Issue rules, including rules of procedure, not inconsistent with 
this section and departmental regulations;
    (2) Issue subpoenas under the authority of Sec. 161.c of the Atomic 
Energy Act of 1954, 42 U.S.C. 2201(c), as applicable;
    (3) Such other authorities as the Secretary may delegate.



Sec. 1023.5  Duties and responsibilities of the Chair.

    The Chair shall be responsible for the following:
    (a) The proper administration of the Board;
    (b) Assignment and reassignment of cases, including alternative 
dispute resolution (ADR) proceedings, to administrative judges, hearing 
officers, and decision panels;
    (c) Monitoring the progress of individual cases to promote their 
timely resolution;
    (d) Appointment and supervision of a Recorder;
    (e) Arranging for the services of masters, mediators, and other 
neutrals;
    (f) Issuing delegations of Board authority to individual 
administrative judges, panels of judges, commissioners, masters, and 
hearing officers within such limits, if any, which a majority of the 
members of the Board shall establish;
    (g) Designating an acting chair during the absence of both the Chair 
and the Vice Chair;
    (h) Designating a member of another Federal board of contract 
appeals to serve as the third member of a decision panel if the Board is 
reduced to less than three members because of vacant positions, 
protracted absences, disabilities or disqualifications;
    (i) Authorizing and approving ADR arrangements for Board cases; 
obtaining non-Board personnel to serve as settlement judges, third-party 
neutrals, masters and similar capacities; authorizing the use of Board-
provided personnel and facilities in ADR capacities, for matters before 
the

[[Page 678]]

Board, and for other matters when requested by officials of the DOE; and 
entering into arrangements with other Federal administrative forums for 
the provision of personnel to serve in ADR capacities on a reciprocal 
basis;
    (j) Recommending to the Secretary the selection of qualified and 
eligible members. New members shall, upon selection, be appointed to 
serve as provided in the CDA;
    (k) Determining whether member duties are consistent with the CDA; 
and
    (l) Reporting Board activities to the Secretary not less often than 
biennially.



Sec. 1023.6  Duties and responsibilities of Board members and staff.

    (a) As is consistent with the Board's functions, Board members and 
staff shall perform their duties with the highest integrity and 
consistent with the principles set forth in Sec. 1023.3.
    (b) Members of the Board and Board attorneys may serve as 
commissioners, magistrates, masters, hearing officers, arbitrators, 
mediators, and neutrals and in other similar capacities.
    (c) Except as may be ordered by a court of competent jurisdiction, 
members of the Board and its staff are permanently barred from ex parte 
disclosure of information concerning any Board deliberations.



Sec. 1023.7  Board decisions; assignment of judges.

    (a) In each case, the Chair shall assign an administrative judge as 
the Presiding Administrative Judge to hear a case and develop the record 
upon which the decision will be made. A Presiding Judge has authority to 
act for the Board in all non-dispositive matters, except as otherwise 
provided in this Part. This subparagraph shall not preclude the 
Presiding Administrative Judge from taking dispositive actions as 
provided in this Part or by agreement of the parties. Other persons 
acting as commissioners, magistrates, masters, or hearing officers shall 
have such powers as the Board shall delegate.
    (b) Except as provided by law, rule, or agreement of the parties, 
contract appeals and other cases are assigned to a deciding panel 
established by the Board Chair consisting of two or more administrative 
judges.
    (c) The concurring votes of a majority of a deciding panel shall be 
sufficient to decide an appeal. All members assigned to a panel shall 
vote unless unavailable. The Chair will assign an additional member if 
necessary to resolve tie votes.



Sec. 1023.8  Alternative dispute resolution (ADR).

    (a) Statement of Policy. It is the policy of the DOE and of the 
Board to facilitate consensual resolution of disputes and to employ ADR 
in all of the Board's functions when agreed to by the parties. ADR is a 
core judicial function performed by the Board and its judges.
    (b) ADR for Docketed Cases. Pursuant to the agreement of the 
parties, the Board, in an exercise of discretion, may approve either the 
use of Board-annexed ADR (ADR which is conducted under Board auspices 
and pursuant to Board order) or the suspension of the Board's procedural 
schedule to permit the parties to engage in ADR outside of the Board's 
purview. While any form of ADR may be employed, the forms of ADR 
commonly employed using Board judges as neutrals are: case evaluation by 
a settlement judge (with or without mediation by the judge); 
arbitration; mini-trial; summary (time and procedurally limited) trial 
with one-judge; summary binding (non-appealable) bench decision; and 
fact-finding.
    (c) ADR for Non-Docketed Disputes. As a general matter the earlier a 
dispute is identified and resolved, the less the financial and other 
costs incurred by the parties. When a contract is not yet complete there 
may be opportunities to eliminate tensions through ADR and to confine 
and resolve problems in a way that the remaining performance is eased 
and improved. For these reasons, the Board is available to provide a 
full range of ADR services and facilities before, as well as after, a 
case is filed with the Board. A contracting officer's decision is not a 
prerequisite for the Board to provide ADR services and such services may 
be furnished whenever they are warranted by the overall best interests 
of the parties. The forms

[[Page 679]]

of ADR most suitable for mid-performance disputes are often the non-
dispositive forms such as mediation, facilitation and fact-finding, 
mini-trials, or non-binding arbitration, although binding arbitration is 
also available.
    (d) Availability of Information on ADR. Parties are encouraged to 
consult with the Board regarding the Board's ADR services at the 
earliest possible time. A handbook describing Board ADR is available 
from the Board upon request.



Sec. 1023.9  General guidelines.

    (a) The principles of this Overview shall apply to all Board 
functions unless a specific provision of the relevant rules of practice 
applies. It is, however, impractical to articulate a rule to fit every 
circumstance. Accordingly, this part, and the other Board Rules 
referenced in it, will be interpreted and applied consistent with the 
Board's responsibility to provide just, expeditious, and inexpensive 
resolution of cases before it. When Board rules of procedure do not 
cover a specific situation, a party may contend that the Board should 
apply pertinent provisions from the Federal Rules of Civil Procedure. 
However, while the Board may refer to the Federal Rules of Civil 
Procedure for guidance, such Rules are not binding on the Board absent a 
ruling or order to the contrary.
    (b) The Board is responsible to the parties, the public, and the 
Secretary for the expeditious resolution of cases before it. 
Accordingly, subject to the objection of a party, the procedures and 
time limitations set forth in rules of procedure may be modified, 
consistent with law and fairness. Presiding judges and hearing officers 
may issue prehearing orders varying procedures and time limitations if 
they determine that purposes of the CDA or the interests of justice 
would be advanced thereby and provided both parties consent. Parties 
should not consume an entire period authorized for an action if the 
action can be sooner completed. Informal communication between parties 
is encouraged to reduce time periods whenever possible.
    (c) The Board shall conduct proceedings in compliance with the 
security regulations and requirements of the Department or other agency 
involved.



            Subpart A--Rules of the Board of Contract Appeals

    Authority: Pub. L. 95-91, sec. 301, 91 Stat. 577; Pub. L. 95-563; EO 
10789.

    Source: 44 FR 64270, Nov. 6, 1979, unless otherwise noted.



Sec. 1023.101  Scope and purpose.

    The rules of the Board of Contract Appeals are intended to govern 
all appeal procedures before the Department of Energy Board of Contract 
Appeals (Board) which are within the scope of the Contract Disputes Act 
of 1978 (41 U.S.C. 601 et seq.). The rules, with modifications 
determined by the Board to be appropriate to the nature of the dispute, 
also apply to all other contract and subcontract related appeals which 
are properly before the Board.
[62 FR 24808, May 7, 1997]



Sec. 1023.102  Effective date.

    The rules of the Board of Contract Appeals shall apply to all 
proceedings filed on or after June 6, 1997, except that Rule 1 (a) and 
(b) of Sec. 1023.120 shall apply only to appeals filed on or after 
October 1, 1995.
[62 FR 24808, May 7, 1997]



Sec. 1023.120  Rules of practice.

    The following rules of practice shall govern the procedure as to all 
contract disputes appealed to this Board in accordance with this 
subpart:

                         Preliminary Procedures

                                  Rule

1  Appeals, how taken.
2  Notice of appeal, contents.
3  Docketing of appeals.
4  Contracting officer appeal file.
5  Motions.
6  Appellants election of procedure.
7  Pleadings.
8  Amendments of pleadings or record.
9  Hearing election.
10  Submission of appeal without a hearing.
11  Prehearing briefs.
12  Prehearing conference.
13  Optional Small Claims (Expedited) procedure.
14  Optional Accelerated procedure.
15  Settling the record.
16  Discovery--General.
17  Discovery--Depositions, interrogatories, admissions, production and 
          inspection.

[[Page 680]]

18  Subpoenas.
19  Time and service of papers.

                                Hearings

20  Hearings--Time and place.
21  Hearings--Notice.
22  Hearings--Unexcused absence of a party.
23  Hearings--Rules of evidence and examination of witneses.

                             Representation

24  Appellant.
25  Respondent.

                                Decisions

26  Decisions.
27  Motion for reconsideration.
28  Remand from court.

                               Dismissals

29  Dismissals without prejudice.
30  Dismissal for failure to prosecute.

                                Sanctions

31  Failure to obey Board order.

                         Preliminary Procedures

    Rule 1  Appeals, How Taken. (a) Notice of an appeal shall be in 
writing and mailed or otherwise furnished to the Board within 90 days 
from the date of receipt of a contracting officer's decision. A copy of 
the notice shall be furnished at the same time to the contracting 
officer from whose descision the appeal is taken.
    (b) Where the contractor has submitted a claim of $100,000 or less 
to the contracting officer and has requested a written decision within 
60 days from receipt of the request, and where the contracting officer 
has not done so, the contractor may file a notice of appeal as provided 
in subparagraph (a) above, citing the failure of the contracting officer 
to issue a decision.
    (c) Where the contractor has submitted a claim in excess of $100,000 
to the contracting officer and the contracting officer has failed to 
issue a decision within a reasonable time, the contractor may file a 
notice of appeal as provided in subparagraph (a) above, citing the 
failure to issue a decision.
    (d) Upon docketing of appeals filed pursuant to (b) or (c) of this 
Rule, the Board, at its option, may stay further proceedings pending 
issuance of a final decision by the contracting officer within the time 
fixed by the Board, or order the appeal to proceed without the 
contracting officer's decision.
    Rule 2  Notice of Appeal, Contents. A notice of appeal must indicate 
that an appeal is being taken and must identify the contract (by 
number), and the department, administration, agency or bureau involved 
in the dispute, the decision from which the appeal is taken, and the 
amount in dispute, if known. The notice of appeal should be signed by 
the appellant (the contractor making the appeal), or by the appellant's 
duly authorized representative or attorney. The complaint referred to in 
Rule 7 may be filed with the notice of appeal, or the appellant may 
designate the notice of appeal as a complaint, if it otherwise fulfills 
the requirements of a complaint.
    Rule 3  Docketing of Appeals. When a notice of appeal in any form 
has been received by the Board, it shall be docketed promptly. Notice of 
docketing shall be mailed promptly to all parties (with a copy of these 
rules to appellant).
    Rule 4  Contracting Officer Appeal File. (a) Composition: Within 30 
days after receipt of notice that an appeal has been docketed, the 
contracting officer shall assemble and transmit to the Board one copy of 
the appeal file with an additional copy each to appellant (except that 
items 1 and 2, below, need not be retransmitted to the appellant) and to 
attorney for respondent. The appeal file shall consist of all documents 
pertinent to the appeal, including:
    (1) The contracting officer's decision and findings of fact from 
which the appeal is taken;
    (2) The contract, including pertinent specifications, modifications, 
plans, and drawings;
    (3) All correspondence between the parties pertinent to the appeal, 
including the letters of claim in response to which the decision was 
issued;
    (4) Transcripts of any testimony taken during the course of 
proceedings, and affidavits or statements of any witnesses on the matter 
in dispute made prior to the filing of the notice of appeal with the 
Board; and
    (5) Any additional information considered pertinent.
    (b) Organization: Documents in the appeal file may be originals, 
legible facsimiles, or anthenticated copies. They shall be arranged in 
chronological order, where practicable, and indexed to identify readily 
the contents of the file. The contracting officer's final decision and 
the contract shall be conveniently placed in the file for ready 
reference.
    (c) Supplements: Within 30 days after receipt of a copy of the 
appeal file assembled by the contracting officer, the appellant may 
supplement the file by transmitting to the Board any additional 
documents which it considers pertinent to the appeal and shall furnish 
two copies of such documents to attorney for respondent.
    (d) Burdensome documents. The Board may waive the requirement of 
furnishing to the other party copies of bulky, lengthy, or out-of-size 
documents in the appeal file when a party has shown that doing so would 
impose an undue burden. At the time a party files with the Board a 
document as to which such a waiver has been granted, the other party 
shall be notified that the document or a copy

[[Page 681]]

is available for inspection at the offices of the Board or of the party 
filing the document.
    (e) Status of Documents: Documents in the appeal file or supplements 
thereto shall become part of the historical record but shall not be 
included in the record upon which the Board's decision will be rendered 
unless each individual document has been offered and admitted into 
evidence.
    Rule 5  Motions. (a) Any timely motion may be considered by the 
Board. Motions shall be in writing (unless made during a conference or a 
hearing), shall indicate the relief or order sought, and shall state 
with particularity the grounds therefore. Those motions which would 
dispose of a case shall be filed promptly and shall be supported by a 
brief. The Board may, on its own motion initiate any motion by notice to 
the parties.
    (b) Parties may respond to a dispositive motion within 20 days of 
receipt, or as otherwise ordered by the Board. Answering material to all 
other motions may be filed within 10 days after receipt. Replies to 
responses ordinarily will not be allowed.
    (c) Board rules relating to pleadings, service and number of copies 
shall apply to all motions. In its discretion, the Board may permit a 
hearing on a motion, and may require presentation of briefs, or it may 
defer a decision pending hearing on both the motion and the merits.
    Rule 6  Appellants election of procedures. (a) The election to use 
Small Claims (Expedited) (Rule 13) or Accelerated (Rule 14) procedures 
is available only to appellant. The election shall be filed with the 
Board in writing no later than 30 days after receipt of notice that the 
appeal has been docketed, unless otherwise allowed by the Board.
    (b) Where the amount in dispute is $100,000 or less, appellant may 
elect to use the Accelerated procedures. Where the amount is $50,000 or 
less, appellant may elect to use the Small Claims (Expedited) or the 
Accelerated procedures. Any question regarding the amount in dispute 
shall be determined by the Board.
    Rule 7  Pleadings. (a) Complaint. Within 30 days after receipt of 
notice that the appeal has been docketed, the appellant shall file with 
the Board an original and two copies of a complaint setting forth 
simple, concise and direct statements of each of its claims. Appellant 
shall also set forth the basis, with appropriate reference to contract 
provisions, of each claim and the dollar amount claimed, to the extent 
known. This pleading shall fulfill the generally recognized requirements 
of a complaint, although no particular form is required. A copy of the 
complaint shall be served upon the attorney for the respondent or, if 
the identity of the latter is not known, upon the General Counsel, 
Department of Energy, Forrestal Building, Washington, D.C. 20585. If the 
complaint is not filed within 30 days and in the opinion of the Board 
the issues before the Board are sufficiently defined, appellant's claim 
and Notice of Appeal may be deemed to set forth its complaint and the 
respondent shall be so notified.
    (b) Answer. Within 30 days after receipt of complaint, or a Rule 
7(a) notice from the Board, the respondent shall file with the Board an 
original and two copies of an Answer, setting forth simple, concise and 
direct statements of respondent's defense to each claim asserted by 
appellant. This pleading shall fulfill the generally recognized 
requirements of an Answer, and shall set forth any affirmative defenses 
or counter-claims as appropriate. Should the answer not be filed within 
30 days, the Board may, in its discretion, enter a general denial on 
behalf of the respondent and the parties shall be so notified.
    Rule 8  Amendments of Pleadings or Record. (a) The Board upon its 
own initiative or upon application by a party may order a party to make 
a more definite statement of the complaint or answer, or to reply to an 
answer. The application for such an order suspends the time for 
responsive pleadings. The Board may, in its discretion, and within the 
proper scope of the appeal, permit either party to amend its pleadings 
upon conditions fair to both parties.
    (b) When issues not raised by the pleadings are tried by express or 
implied consent of the parties, or by permission of the Board, they 
shall be treated in all respects as if they had been raised in the 
pleadings. In such instances, motions to amend the pleadings to conform 
to the proof may be entered, but are not required. Similarly, if 
evidence is objected to at a hearing on the ground that it is not 
relevant to an issue raised by the pleadings, it may be admitted but the 
objecting party may be granted a continuance if necessary to enable it 
to meet such evidence.
    Rule 9  Hearing Election. Except as may be required under Rules 13 
or 14, each party shall advise the Board following service upon 
appellant of respondent's Answer, or a Rule 7(b) Notice from the Board, 
whether it desires a hearing as prescribed in Rules 20 through 23.
    Rule 10  Submission of Appeal without a Hearing. Either party may 
elect to waive a hearing and to submit its case upon the record as 
settled pursuant to Rule 15. Waiver by one party shall not deprive the 
other party of an opportunity for a hearing. Submission of a case 
without hearing does not relieve the parties from the necessity of 
proving the facts supporting their allegations or defenses. Affidavits, 
depositions, admissions, answers to interrogatories, and stipulations 
may be employed to supplement other documentary evidence in the Board

[[Page 682]]

record. The Board may permit such submission to be supplemented by oral 
argument and by briefs.
    Rule 11  Prehearing Briefs. The Board may, in its discretion, 
require the parties to submit prehearing briefs in any case or motion. 
If the Board does not require briefs, either party may, upon timely 
notice to the other party, furnish a prehearing brief to the Board. In 
any case where a prehearing brief is submitted, it shall be furnished so 
as to be received by the Board at least 15 days prior to the date set 
for hearing, and a copy shall simultaneously be furnished to the other 
party.
    Rule 12  Prehearing Conference. (a) Whether the case is to be 
submitted under Rule 10, or heard pursuant to Rules 20 through 23, the 
Board may, upon its own initiative or upon the application of either 
party, arrange a telephone conference or call upon the parties to appear 
before an administrative judge for a conference to consider:
    (1) Simplification, clarification, or severing of the issues;
    (2) The possibility of obtaining stipulations, admissions, 
agreements and rulings on documents, understandings on matters already 
of record, or similar agreements that will avoid unnecessary proof;
    (3) Agreements and rulings to facilitate discovery;
    (4) Limitation of the number of expert witnesses, or avoidance with 
similar cumulative evidence;
    (5) The possibility for settlement of any or all of the issues in 
dispute; and
    (6) Such other matters as may aid in the disposition of the appeal 
including the filing of proposed Findings of Fact and Conclusions of 
Law, briefs, and other such papers.
    (b) Any conference results not reflected in a transcript shall be 
reduced to writing by the Administrative Judge and the writing shall 
thereafter constitute part of the evidentiary record.
    Rule 13  Optional Small Claims (Expedited) Procedure. (a) the Small 
Claims (Expedited) procedure for disputes involving $50,000, or less, 
provides for simplified rules of procedure to facilitate the decision of 
an appeal, whenever possible, within 120 days after the Board receives 
written notice of the election.
    (b) Promptly upon receipt of an appellant's election of the Small 
Claims (Expedited) procedure in accordance with Rule 6, the assigned 
Administrative Judge will arrange an informal meeting or a telephone 
conference with both parties to:
    (1) Identify and simplify the issues in dispute;
    (2) Establish a simplified procedure appropriate to the particular 
appeal;
    (3) Determine whether a hearing is desired, and, if so, fix a time 
and place;
    (4) Establish a schedule for the expedited resolution of the appeal; 
and
    (5) Assure that procedures have been instituted for informal 
discussions on the possibility of settlement of any or all of the 
disputes in question.
    (c) Failure to request an oral hearing within 15 days of receipt of 
notice of the Small Claims election shall be deemed a waiver and an 
election to submit the case on the record under Rule 10.
    (d) The subpoena power set forth in Rule 18 is available for use 
under the Small Claims (Expedited) procedure.
    (e) The filing of pleadings, motions, discovery proceedings or 
prehearing procedures will be permitted only to the extent consistent 
with the requirement of conducting the hearing at the scheduled time and 
place or, if no hearing is scheduled, of closing the record at an early 
time so as to permit a decision of the appeal within the target limit of 
120 days. The Board, in its discretion, may impose shortened time 
periods for any actions required or permitted under these rules, 
necessary to enable the Board to decide the appeal within the target 
date allowing whatever time, up to 30 days, that it considers necessary 
for the preparation of the decision after closing the record and the 
filing of briefs, if any.
    (f) Decisions in appeals considered under the Small Claims 
(Expedited) procedure will be rendered by a single Administrative Judge. 
If there is a hearing, the presiding Administrative Judge may, 
exercising discretion, hear closing oral arguments of the parties and 
then render an oral decision on the record. Whenever such an oral 
decision is rendered, the Board subsequently will furnish the parties 
with a written transcript of the decision for record and payment 
purposes and to establish the date for commencement of the time period 
for filing a motion for reconsideration under Rule 27.
    (g) Decisions of the Board under the Small Claims (Expedited) 
procedure shall have no value as precedent for future cases and, in the 
absence of fraud, cannot be appealed.
    Rule 14  Optional Accelerated Procedure. (a) This option makes 
available an Accelerated procedure, for disputes involving $100,000 or 
less, whereby the appeal is resolved, whenever possible, within 180 days 
from board notice of the election.
    (b) Promptly upon receipt of appellant's election of the Accelerated 
procedure in accordance with Rule 6, the assigned Administrative Judge 
will arrange an informal meeting or a telephone conference with both 
parties to:
    (1) Identify and simplify the issues in dispute;
    (2) Establish a simplified procedure appropriate to the particular 
appeal;
    (3) Determine whether a hearing is desired and, if so, fix a time 
and place;
    (4) Establish a schedule for the accelerated resolution of the 
appeal; and

[[Page 683]]

    (5) Assure that procedures have been instituted for informal 
discussions on the possibility of settlement of any or all of the 
disputes in question.
    (c) Failure by either party to request an oral hearing within 15 
days of receipt of notice of the election under Rule 6 shall be deemed a 
waiver and an election to submit on the record under Rule 10.
    (d) The subpoena power set forth in Rule 18 is available for use 
under the Accelerated procedure.
    (e) The filing of pleadings, motions, discovery proceedings or 
prehearing procedures will be permitted only to the extent consistent 
with the requirement for conducting the hearing at the scheduled time 
and place or, if no hearing is scheduled, the closing of the record at 
an early time so as to permit decision of the appeal within the target 
limit of 180 days. The Board, in its discretion, may impose shortened 
time periods for any actions required or permitted under these rules, 
necessary to enable the Board to decide the appeal within the target 
date, allowing whatever time, up to 30 days, that it considers necessary 
for the preparation of the decision after closing the record and the 
filing of briefs, if any.
    (f) Decisions in appeals considered under the Accelerated procedure 
will be rendered by a single Administrative Judge with the concurrence 
of another assigned Administrative Judge or an additional member in the 
event of disagreement.
    Rule 15  Settling the Record. (a) The record upon which the Board's 
decision will be rendered consists of the documents, papers and exhibits 
admitted in evidence, and the pleadings, prehearing conference memoranda 
or orders, prehearing briefs, admissions, stipulations, transcripts of 
conferences and hearings, and posthearing briefs. The record will, at 
all reasonable times, be available for inspection by the parties at the 
office of the Board. In cases submitted pursuant to Rule 10 the 
evidentiary records shall be comprised of those documents, papers and 
exhibits submitted by the parties and admitted by the Board.
    (b) Except as the Board, in its discretion, may otherwise order, no 
proof shall be received in evidence after completion of the evidentiary 
hearing or, in cases submitted on the record, after notification by the 
Board that the case is ready for decision.
    (c) The weight to be attached to any evidence of record will rest 
within the sound discretion of the Board. The Board may in any case 
require either party, with appropriate notice to the other party, to 
submit additional evidence on any matter relevant to the appeal.
    Rule 16  Discovery--General. (a) General Policy and Protective 
Orders--The parties are encouraged to engage in voluntary discovery 
procedures. In connection with any deposition or other discovery 
procedure, the Board may make any order required to protect a party or 
person from annoyance, embarrassment, or undue burden or expense. Those 
orders may include limitations on the scope, method, time and place for 
discovery, and provisions for protecting trade secrets or other 
confidential information or documents.
    (b) Expenses--Each party bears its own expenses associated with 
discovery, unless in the discretion of the Board, the expenses are 
apportioned otherwise.
    (c) Subpoenas--Where appropriate, a party may request the issuance 
of a subpoena under the provisions of Rule 18.
    Rule 17  Discovery--Depositions, Interrogatories, Admissions, 
Production and Inspection. (a) When Depositions Permitted--If the 
parties are unable to agree upon the taking of a deposition, the Board 
may, upon application of either party and for good cause shown, order 
the taking of testimony of any person by deposition upon oral 
examination or written interrogatories before any officer authorized to 
administer oaths at the place of examination.
    (b) Orders on Depositions--The time, place, and manner of taking 
depositions shall be as mutually agreed by the parties, or failing such 
agreement, as governed by order of the Board.
    (c) Depositions as Evidence--No testimony taken by depositions shall 
be considered as part of the evidence in the hearing of an appeal until 
such testimony is offered and received as evidence at such hearing. It 
will not ordinarily be received as evidence if the deponent is present 
and can testify at the hearing. In such instances, however, the 
deposition may be used to contradict or impeach the testimony of the 
deponent given at the hearing. In cases submitted on the record, the 
Board may, in its discretion, receive depositions to supplement the 
record.
    (d) Interrogatories, etc.--After an appeal has been filed with the 
Board, a party may serve on the other party: (1) Written interrogatories 
to be addressed separately in writing, signed under oath and answered 
within 30 days unless objections are filed within 10 days of receipt; 
(2) a request for the admission of specified facts or the authenticity 
of any documents, to be answered or objected to within 30 days after 
service. The factual statements and the authenticity of the documents 
shall be deemed admitted upon failure of a party, to timely respond; and 
(3) a request for the production, inspection and copying of any 
documents or objects not privileged, which are relevant to the appeal.
    (e) Any discovery engaged in under this Rule shall be subject to the 
provisions of Rule 16.
    Rule 18  Subpoenas. (a) Voluntary Cooperation--Each party is 
expected to cooperate and make available witnesses and evidence

[[Page 684]]

under its control without issuance of a subpoena. Additionally, parties 
will secure voluntary attendance of desired third-party witnesses and 
production of desired third-party books, papers, documents, or tangible 
things whenever possible.
    (b) Procedure
    (1) Upon request of a party and after a showing of relevance a 
subpoena may be issued requiring the attendance of a witness for the 
purpose of taking testimony at a deposition or hearing and, if 
appropriate, the production by the witness, at the deposition or 
hearing, of documentary evidence, including inspection and copying, as 
designated in the subpoena.
    (2) The request shall identify the name, title, and address of the 
person to whom the subpoena is addressed, the specific documentary 
evidence sought, the time and place proposed and a showing of relevancy 
to the appeal.
    (3) Every subpoena shall state the name of the Board, the title of 
the appeal, and shall command each person to whom it is directed to 
attend and give testimony, and if appropriate, to produce specified 
documentary evidence at a time and place therein specified. The 
presiding Administrative Judge shall sign the subpoena and may, in his 
discretion, enter the name of the witness, or the documentary evidence 
sought, or may leave it blank. The party requesting the subpoena shall 
complete the subpoena before service.
    (4) Where the witness is located in a foreign country, a letter 
rogatory or subpoena may be issued and served under the circumstances 
and in the manner provided in 28 U.S.C. 1781-1784.
    (c) Requests to Quash or Modify--Upon motion made promptly but in 
any event not later than the time specified in the subpoena for 
compliance, the Board may: (i) Quash or modify the subpoena if it is 
unreasonable and oppressive or for other good cause shown; (ii) 
condition denial of the motion upon payment by the person in whose 
behalf the subpoena was issued of the reasonable cost of producing the 
subpoenaed documentary evidence; or (iii) apply protective provisions 
under Rule 16(a).
    (d) Service--
    (1) The party requesting the subpoena shall arrange for service.
    (2) A subpoena may be served at any place by a United States Marshal 
or Deputy Marshal, or by any other person who is not a party and not 
less than 18 years of age. Service of a subpoena shall be made by 
personally delivering a copy to the person named therein and tendering 
the fees for one day's attendance and the mileage that would be allowed 
in the courts of the United States. When the subpoena is issued on 
behalf of the United States or an officer or agency of the United 
States, money payments need not be tendered in advance of attendance.
    (3) The party requesting a subpoena shall be responsible for the 
payment of fees and mileage of the witness and of the officer who serves 
the subpoena. The failure to make payment of such charges on demand may 
be deemed by the Board as a sufficient ground for striking the testimony 
of the witness and any documentary evidence the witness has produced.
    (e) Contumacy or Refusal to Obey a Subpoena. In case of a contumacy 
or refusal to obey a subpoena by a person who resides, is found, or 
transacts business within the jurisdiction of a United States Court, the 
Board will apply to the Court through the Attorney General of the United 
States for an order requiring the person to appear before the Board or a 
member thereof to give testimony or produce evidence or both. Any 
failure of any such person to obey the order of the Court may be 
punished by the Court as a contempt thereof.
    Rule 19  Time and Service of Papers. (a) All pleadings, briefs or 
other papers submitted to the Board shall be filed in triplicate and a 
copy shall be sent to other parties. Such communications shall be sent 
by delivering in person or by mailing, properly addressed with postage 
prepaid, to the opposing party or, where the party is represented by 
counsel, to its counsel. Pleadings, briefs or other papers filed with 
the Board shall be accompanied by a statement, signed by the originating 
party, saying when, how, and to whom a copy was sent.
    (b) The Board may extend any time limitation for good cause and in 
accordance with legal precedent. All requests for time extensions shall 
be in writing except when raised during a recorded hearing.
    (c) In computing any period of time, the day of the event from which 
the designated period of time begins to run shall not be included, but 
the last day of the period shall be included unless it is a Saturday, 
Sunday, or a legal holiday, in which event the period shall run to the 
end of the next business day. Unless otherwise stated in a Rule or Board 
Order, dates will be met and papers considered filed when deposited in 
the mail system of the U.S. Postal Service, or hand-delivery is 
acknowledged at the Board offices.

                                Hearings

    Rule 20  Hearings: Time and Place. Hearings will be held at such 
places determined by the Board to best serve the interests of the 
parties and the Board. Hearings will be scheduled at the discretion of 
the Board with due consideration to the regular order of appeals, the 
requirements for expedited or accelerated procedures and other pertinent 
factors. On request by either party and for good cause, the Board may, 
in its discretion, change the time and place of a hearing.
    Rule 21  Hearings: Notice. The parties shall be given at least 15 
days notice of time and

[[Page 685]]

place set for hearings. In scheduling hearings, the Board will consider 
the desires of the parties and the requirement for just and inexpensive 
determination of appeals without unnecessary delay. Notices of hearing 
shall be promptly acknowledged by the parties. Failure to promptly 
acknowledge shall be deemed consent to the time and place.
    Rule 22  Hearings: Unexcused Absence of a Party. The unexcused 
absence of a party at the time and place set for hearing will not be 
occasion for delay. In the event of such absence, the presiding 
Administrative Judge may order the hearing to proceed and the case will 
be regarded as submitted by the absent party as under Rule 10.
    Rule 23  Hearings: Rules of Evidence and Examination of Witnesses. 
(a) Nature of Hearings--Hearings shall be as informal as may be 
reasonable and appropriate under the circumstances. Appellant and the 
respondent may offer such evidence as they deem appropriate and as would 
be admissible under the Federal Rules of Evidence or in the sound 
discretion of the presiding judge. The parties may stipulate the 
testimony that would be given by a witness if the witness were present. 
The Board may require evidence in addition to that offered by the 
parties.
    (b) Examination of Witnesses--Witnesses before the Board will be 
examined orally under oath or affirmation, unless the presiding 
Administrative Judge shall otherwise order.

                             Representation

    Rule 24  Appellant. An individual appellant may appear before the 
Board in person, a corporation by one of its officers; and a partnership 
or joint venture by one of its members; or any of these by an attorney 
at law duly licensed in any state, commonwealth, territory, the District 
of Columbia, or in a foreign country. An attorney representing an 
appellant shall file a written notice of appearance with the Board.
    Rule 25  Respondent. Counsel may, in accordance with their 
authority, represent the interest of the Government or other client 
before the Board. They shall file notices of appearance with the Board, 
and serve notice on appellant or appellant's attorney.

                             Board Decision

    Rule 26  Decisions. Except as allowed under Rule 13, decisions of 
the Board shall be in writing upon the record as described in Rule 15 
and will be forwarded simultaneously to both parties. The rules of the 
Board and all final orders and decisions shall be available for public 
inspection at the offices of the Board.
    Rule 27  Motion for Reconsideration. (a) Motion for reconsideration 
shall set forth specifically the grounds relied upon to sustain the 
motion and shall be filed within 30 days after receipt of a copy of the 
Board's decision.
    (b) Motions for reconsideration of cases decided under either the 
Small Claims (Expedited) procedure or the Accelerated procedure need not 
be decided within the original 120-day or 180-day limit, but shall be 
processed and decided rapidly.
    Rule 28  Remand from Court. Whenever any court remands a case to the 
Board for further proceedings, each of the parties shall, within 20 days 
of such remand, submit a report to the Board recommending procedures to 
be followed so as to comply with the court's order. The Board shall 
consider the reports and enter special orders.

                               Dismissals

    Rule 29  Dismissal Without Prejudice. In certain cases, appeals 
docketed before the Board are required to be placed in a suspense status 
and the Board is unable to proceed with disposition thereof for reasons 
not within the control of the Board. Where the suspension has continued, 
or may continue, for an inordinate length of time, the Board may, in its 
discretion, dismiss such appeals from its docket without prejudice to 
their restoration when the cause of suspension has been removed. Unless 
either party or the Board acts within three years to reinstate any 
appeal dismissed without prejudice, the dismissal shall be deemed with 
prejudice.
    Rule 30  Dismissal for Failure to Prosecute. Whenever a record 
discloses the failure of any party to file documents required by these 
rules, respond to notices or correspondence from the Board or otherwise 
indicates an intention not to continue the prosecution or defense of an 
appeal, the Board may issue an order requiring the offending party to 
show cause why the appeal should not be dismissed or granted, as 
appropriate. If no cause, the Board may take such action as it deems 
reasonable and proper.

                                Sanctions

    Rule 31  Failure to Obey Board Order. If any party fails or refuses 
to obey an order issued by the Board, the Board may issue such orders as 
it considers necessary to the just and expeditious conduct of the 
appeal, including dismissal with prejudice.
[44 FR 64270, Nov. 6, 1979. Redesignated at 62 FR 24808, May 7, 1997]



                          Subpart B  [Reserved]



   Subpart C--Procedures Relating to Awards Under the Equal Access to 
                               Justice Act

    Authority: Sec. 644, Title VI, Pub. L. 95-91, 91 Stat. 599; 5 U.S.C. 
504.

[[Page 686]]


    Source: 57 FR 53542, Nov. 12, 1992, unless otherwise noted.

                           General Provisions



Sec. 1023.300  Definitions.

    For purposes of these procedures:
    Agency Counsel means the attorney representing the Department or 
other agency in a proceeding under this subpart.
    Board means the Department of Energy Board of Contract Appeals.
    Covered Proceeding means an underlying proceeding as specified by 
paragraph (a) of Sec. 1023.303.
    Days means calendar days.



Sec. 1023.301  Purpose of these rules.

    The Equal Access to Justice Act, 5 U.S.C. 504 (called ``the Act'' in 
this subpart), provides for the award of attorney fees and other 
expenses to eligible individuals and entities who are parties to covered 
proceedings. An eligible party may receive an award when it prevails 
over an agency, unless the agency's position was substantially justified 
or special circumstances make an award unjust. These procedures describe 
the parties eligible for awards and covered Board proceedings. They also 
explain how to apply for awards and the procedures and standards that 
the Board will use to make them.



Sec. 1023.302  When the Act applies.

    The Act applies to any covered proceeding pending or commenced 
before the Board on or after August 5, 1985. It also applies to any such 
proceeding commenced before the Board on or after October 1, 1984, and 
finally disposed of before August 5, 1985, provided that an application 
for fees and expenses, as described in Sec. 1023.310 of this subpart, 
has been filed with the Board within 30 days after August 5, 1985, and 
to any such proceeding pending on or commenced on or after October 1, 
1981, in which an application for fees and other expenses was timely 
filed and was dismissed for lack of jurisdiction.



Sec. 1023.303  Proceedings covered.

    (a) The Act applies to appeals from decisions of contracting 
officers made pursuant to section 6 of the Contract Disputes Act of 1978 
(41 U.S.C. 605) to the Board as provided in section 8 of that Act (41 
U.S.C. 607).
    (b) If a proceeding includes both matters covered by the Act and 
matters specifically excluded from coverage, any award made will include 
only fees and expenses related to covered issues.



Sec. 1023.304  Eligibility of applicants.

    (a) To be eligible for an award of attorney fees and other expenses 
under the Act, the applicant must be a party to the covered proceeding 
for which it seeks an award. The term ``party'' is defined in 5 U.S.C. 
551(3). The applicant must show that it meets all conditions of 
eligibility set out in this subpart.
    (b) The types of eligible applicants are as follows:
    (1) An individual with a net worth of not more than $2 million;
    (2) The sole owner of an unincorporated business who has a net worth 
of not more than $7 million, including both personal and business 
interests, and not more than 500 employees;
    (3) A charitable or other tax-exempt organization described in 
section 501(c)(3) of the Internal Revenue Code (26 U.S.C. 501(c)(3)) 
with not more than 500 employees;
    (4) A cooperative association as defined in 15(a) of the 
Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500 
employees; and
    (5) Any other partnership, corporation, association, unit of local 
government, or organization with a net worth of not more than $7 million 
and not more than 500 employees.
    (c) For the purpose of eligibility, the net worth and number of 
employees of an applicant shall be determined as of the date the 
applicant filed its appeal under 41 U.S.C. 606.
    (d) An applicant who owns an unincorporated business will be 
considered as an ``individual'' rather than a ``sole owner of an 
unincorporated business'' if the issues on which the applicant prevails 
are related primarily to personal interests rather than to business 
interests.
    (e) The employees of an applicant include all persons who regularly 
perform services for remuneration for the applicant, under the 
applicant's direction and control. Part-time employees

[[Page 687]]

shall be included on a proportional basis.
    (f) The net worth and number of employees of the applicant and all 
of its affiliates shall be aggregated to determine eligibility. Any 
individual, corporation or other entity that directly or indirectly 
controls or owns a majority of the voting shares or other interests of 
the applicant, or any corporation or other entity of which the applicant 
directly or indirectly owns or controls a majority of the voting shares 
or other interest, will be considered an affiliate for purposes of this 
part, unless the Board determines that such treatment would be unjust 
and contrary to the purposes of the Act in light of the actual 
relationship between the affiliated entities. In addition, the Board may 
determine that financial relationships of the applicant, other than 
those described in this paragraph, constitute special circumstances that 
would make an award unjust.
    (g) An applicant that participates in a proceeding primarily on 
behalf of one or more other persons or entities that would be ineligible 
is not itself eligible for an award.



Sec. 1023.305  Standards for awards.

    (a) A prevailing applicant may receive an award for fees and 
expenses incurred in connection with a proceeding or in a significant 
and discrete substantive portion of the proceeding, unless the position 
of the agency over which the applicant has prevailed was substantially 
justified. The position of the agency includes, in addition to the 
position taken by the agency in the covered proceeding, the action or 
failure to act by the agency upon which the covered proceeding is based. 
The burden of proof that an award should not be made to an eligible 
prevailing applicant because the agency's position was substantially 
justified is on the agency counsel.
    (b) An award will be reduced or denied if the applicant has unduly 
or unreasonably protracted the proceeding or if special circumstances 
make the award sought unjust.



Sec. 1023.306  Allowable fees and expenses.

    (a) Awards will be based on rates customarily charged by persons 
engaged in the business of acting as attorneys or expert witnesses even 
if the services were made available without charge or at a reduced rate 
to the applicant.
    (b) No award for the fee of an attorney under these rules may exceed 
$75 per hour. No award to compensate an expert witness may exceed the 
highest rate at which the respondent agency or agencies pay expert 
witnesses. However, an award may also include the reasonable expenses of 
the attorney or witness as a separate item, if the attorney or witness 
ordinarily charges clients separately for such expenses.
    (c) In determining the reasonableness of the fee sought for an 
attorney or expert witness, the Board shall consider the following:
    (1) If the attorney or witness is in private practice, his or her 
customary fees for similar services, or, if an employee of the 
applicant, the fully allocated costs of the services;
    (2) The prevailing rate for similar services in the community in 
which the attorney or witness ordinarily performs services;
    (3) The time actually spent in the representation of the applicant;
    (4) The time reasonably spent in light of the difficulty or 
complexity of the issues in the proceeding; and
    (5) Such other factors as may bear on the value of the services 
provided.
    (d) The reasonable cost of any study, analysis, engineering report, 
test, project or similar matter prepared on behalf of a party may be 
awarded, to the extent that the charge for the services does not exceed 
the prevailing rate for similar services, and the study or other matter 
was necessary for preparation of applicant's case.



Sec. 1023.307  [Reserved]



Sec. 1023.308  Awards against other agencies.

    If an applicant is entitled to an award because it prevails over 
another agency of the United States Government that participates in a 
proceeding before the Board and takes a position

[[Page 688]]

that is not substantially justified, the award or an appropriate portion 
of the award shall be made against that agency.

                  Information Required From Applicants



Sec. 1023.310  Contents of application--overview.

    (a) An application for an award of fees and expenses under the Act 
shall identify the applicant and the proceeding for which an award is 
sought. The application shall show that the applicant has prevailed and 
identify the position of the agency or agencies that the applicant 
alleges was not substantially justified. Unless the applicant is an 
individual, the application shall also state the number of employees of 
the applicant and describe briefly the type and purpose of its 
organization or business.
    (b) The application shall also include a statement that the 
applicant's net worth does not exceed $2 million (if an individual) or 
$7 million (for all other applicants, including their affiliates). The 
applicant shall attach a net worth exhibit that satisfies the 
requirements of section 1023.311. However, an applicant may omit this 
statement and forego the attachment of the net worth exhibit if:
    (1) It attaches a copy of a ruling by the Internal Revenue Service 
that it qualifies as an organization described in 501(c)(3) of the 
Internal Revenue Code (26 U.S.C. 501(c)(3)) or, in the case of a tax-
exempt organization not required to obtain a ruling from the Internal 
Revenue Service on its exempt status, a statement that describes the 
basis for the applicant's belief that it qualifies under such section; 
or
    (2) It states that it is a cooperative association as defined in 
15(a) of the Agricultural Marketing Act (12 U.S.C. 1141j(a)).
    (c) The application shall state the amount of fees and expenses for 
which an award is sought. The applicant must document fees and expenses 
as required in Sec. 1023.312.
    (d) The application may also include any other matters that the 
applicant wishes the Board to consider in determining whether, and in 
what amount, an award should be made.
    (e) The application shall be signed by the applicant or an 
authorized officer or attorney of the applicant. It shall also contain 
or be accompanied by a written verification under oath or under penalty 
of perjury that the information provided in the application is true and 
correct.



Sec. 1023.311  Net worth exhibit.

    (a) Each applicant, except a qualified tax-exempt organization or 
cooperative association, must provide with its application a detailed 
exhibit showing the net worth of the applicant and any affiliates (as 
defined in Sec. 1023.304(f) of this subpart) when the proceeding was 
initiated. The exhibit may be in any form convenient to the applicant 
that provides full disclosure of the applicant's and its affiliates' 
assets and liabilities and is sufficient to determine whether the 
applicant qualifies under the standards in this part. The presiding 
administrative judge may require an applicant to file additional 
information to determine its eligibility for an award.
    (b) Ordinarily, the net worth exhibit will be included in the public 
record of the proceeding. However, an applicant that objects to public 
disclosure of information in any portion of the exhibit may submit that 
portion directly to the presiding administrative judge in a sealed 
envelope labeled ``Confidential Financial Information,'' accompanied by 
a motion for a protective order setting forth the ground therefor. A 
protective order may be granted for good cause shown.



Sec. 1023.312  Documentation of fees and expenses.

    The application shall be accompanied by full documentation of the 
fees and expenses, including the cost of any study, analysis, 
engineering report, test, project or similar matter, for which an award 
is sought. A separate, itemized statement shall be submitted for each 
professional firm or individual whose services are covered by the 
application. The statement should show the hours spent in connection 
with the Contract Disputes Act appeal by each individual, a description 
of the specific

[[Page 689]]

services performed, the rates at which each fee has been computed, any 
expenses for which reimbursement is sought, the total amount claimed, 
and the total amount paid or payable by the applicant or by any other 
person or entity for the services provided. The presiding administrative 
judge may require the applicant to provide vouchers, receipts, logs, or 
other substantiation for any fees or expenses claimed pursuant to 
Sec. 1023.306 of this subpart.



Sec. 1023.313  When an application may be filed.

    (a) An application may be filed whenever the applicant has prevailed 
in the proceeding, or, with permission of the Board for good cause 
shown, when the applicant has prevailed in a significant and discrete 
substantive portion of the proceeding, but in no case later than 30 days 
after the Board's final disposition of the proceeding.
    (b) For purposes of paragraph (a) of this section, final disposition 
means the date on which a decision or order disposing of the merits of 
the proceeding or any other complete resolution of the proceeding, such 
as a settlement or voluntary dismissal, becomes final and unappealable.
    (c) If reconsideration of a decision is sought as to which an 
applicant believes it has prevailed, proceedings for the award of fees 
shall be stayed pending final disposition of the underlying controversy. 
When the United States appeals the underlying merits of a covered 
proceeding to a court, no decision on an application for fees and other 
expenses in connection with that proceeding shall be made until a final 
and unreviewable decision is rendered by the court on that appeal or 
until the underlying merits of the case have been finally determined 
pursuant to the appeal.

                 Procedures for Considering Applications



Sec. 1023.320  Filing and service of documents.

    Any application for an award, or other pleading or document relating 
to an application, shall be filed and served on all parties to the 
proceeding in the same manner as other pleadings in the underlying 
proceeding, except as provided in Sec. 1023.311(b) for confidential 
financial information.



Sec. 1023.321  Answer to application.

    (a) Within 30 days after service of an application, counsel 
representing the agency against which an award is sought may file an 
answer to the application. Unless agency counsel requests an extension 
of time for filing or files a statement of intent to negotiate under 
paragraph (b) of this section, failure to file an answer within the 30-
day period may be treated as a consent to the award requested.
    (b) If agency counsel and the applicant believe that the issues in 
the fee application can be settled, they may jointly file a statement of 
their intent to negotiate a settlement. The filing of this statement 
shall extend the time for filing an answer for an additional 30 days. 
Further extensions may be granted by the presiding administrative judge 
upon request by agency counsel and the applicant.
    (c) The answer shall explain in detail any objections to the award 
requested and identify the facts relied on in support of agency 
counsel's position. If the answer is based on any alleged facts not 
already in the record of the proceeding, agency counsel shall include 
with the answer either supporting affidavits or a request for further 
proceedings under Sec. 1023.325.



Sec. 1023.322  Reply.

    Within 15 days after service of an answer, the applicant may file a 
reply. If the reply is based on any alleged facts not already in the 
record of the proceeding, the applicant shall include with the reply 
either supporting affidavits or a request for further proceedings under 
Sec. 1023.325.



Sec. 1023.323  Comments by other parties.

    Any party to a proceeding other than the applicant and agency 
counsel may file comments on an application within 30 days after it is 
served or on an answer within 15 days after it is served. A commenting 
party may not participate further in proceedings on the application 
unless the Board determines that

[[Page 690]]

the public interest requires such participation in order to permit full 
exploration of matters raised in the comments.



Sec. 1023.324  Settlement.

    The applicant and agency counsel may agree on a proposed settlement 
of the award before final action on the application, either in 
connection with a settlement of the underlying proceeding or after the 
underlying proceeding has been concluded, in accordance with the 
agency's standard settlement procedure. If a prevailing party and agency 
counsel agree on a proposed settlement of an award before an application 
has been filed, the application shall be filed with the proposed 
settlement.



Sec. 1023.325  Further proceedings.

    (a) Ordinarily, the determination of an award will be made on the 
basis of the written record. However, on request of either the applicant 
or agency counsel, or, on his or her own initiative, the presiding 
administrative judge may order further proceedings, such as an informal 
conference, oral argument, additional written submissions or, as to 
issues other than substantial justification (such as the applicant's 
eligibility or substantiation of fees and expenses), pertinent discovery 
or an evidentiary hearing. Such further proceedings shall be held only 
when necessary for full and fair resolution of the issues arising from 
the application, and shall be conducted as promptly as possible. Whether 
or not the position of the agency was substantially justified shall be 
determined on the basis of the administrative record as a whole, 
including the contracting officer Appeal File and supplements filed 
pursuant to Rule 4 of the Board's Rules of Practice, 10 CFR part 1023, 
which is made in the covered proceeding for which fees and other 
expenses are sought.
    (b) A request that the presiding administrative judge order further 
proceedings under this section shall specifically identify the 
information sought or the disputed issues and shall explain why the 
additional proceedings are necessary to resolve the issues.



Sec. 1023.326  Board decision.

    The Board shall issue its decision on the application as 
expeditiously as is practicable after completion of proceedings on the 
application. Whenever possible, the decision shall be made by the same 
administrative judge or panel that decided the contract appeal for which 
fees are sought. The decision shall include written findings and 
conclusions on the applicant's eligibility and status as a prevailing 
party, and an explanation of the reasons for any difference between the 
amount requested and the amount awarded. The decision shall also 
include, if at issue, findings on whether the agency's position was 
substantially justified, whether the applicant unduly protracted the 
proceedings, or whether special circumstances make the award unjust. If 
the applicant has sought an award against more than one agency, the 
decision shall allocate responsibility for payment of any award made 
among the agencies, and shall explain the reasons for the allocation 
made.



Sec. 1023.327  Reconsideration.

    Either party may seek reconsideration of the decision on the fee 
application in accordance with 10 CFR 1023.120, Rule 27.
[57 FR 53542, Nov. 12, 1992, as amended at 62 FR 24808, May 7, 1997]



Sec. 1023.328  Judicial review.

    Judicial review of a final Board decision on an application for an 
award may be sought as provided in 5 U.S.C. 504(c)(2).



Sec. 1023.329  Payment of award.

    An applicant seeking payment of an award shall submit to agency 
counsel a copy of the Board's final decision granting the award, 
accompanied by a certification that the applicant will not seek review 
of the decision in the United States courts. Agency counsel will forward 
the submission to the appropriate disbursing official. The agency will 
pay the amount awarded to the applicant within 60 days.

[[Page 691]]



PART 1024--PROCEDURES FOR FINANCIAL ASSISTANCE APPEALS--Table of Contents




Sec.
1024.1  Scope and purpose.
1024.2  Authority.
1024.3  General.
1024.4  Rules of procedure.

    Authority: Dept. of Energy Organization Act, Pub. L. 95-91, 91 Stat. 
577 (42 U.S.C. 7101, et seq.); E.O. 10789; Pub. L. 95-224, 92 Stat. 3 
(41 U.S.C. 501-509).

    Source: 45 FR 29764, May 5, 1980, unless otherwise noted.



Sec. 1024.1  Scope and purpose.

    These procedures establish a process permitting recipients of 
financial assistance to appeal adverse final decisions made by financial 
assistance officers or contracting officers. The objective is to provide 
a timely, just, and inexpensive resolution of disputes involving grants, 
cooperative agreements, loan guarantees, loan agreements, or other 
financial assistance instruments.



Sec. 1024.2  Authority.

    The authority of the Board derives from direct delegation of the 
Secretary to hear and decide finally for the Department appeals from any 
decision brought before it on disputes arising under financial 
assistance agreements.



Sec. 1024.3  General.

    (a) A recipient or party to a grant, cooperative agreement, loan 
guarantee or agreement, or other such financial assistance may have a 
right to appeal disputes with the Department. Such a right may be set 
forth in statutes, in Departmental regulations dealing with the type of 
financial assistance involved, or in the agreement itself.
    (b) Appeals are decided by the Financial Assistance Appeals Board in 
Accordance with the procedures set forth in these regulations. Decisions 
will be by majority vote and will be the final disposition of the matter 
within the Department.
    (1) The Board is located in the Washington, DC metropolitan area and 
its address is: Webb Building, room 1006, 4040 North Fairfax Drive, 
Arlington, Virginia 22203.
    (2) The Administrative Judge assigned to hear and develop the record 
on an appeal has authority to act for the Board with respect to such 
appeal within the limits assigned and as set forth in these rules.
    (c) In order that a right to appeal may be exercised in a timely 
manner, a financial assistance recipient must appeal, in writing, within 
60 days after receipt of a ``final decision'' on the matter by a 
financial assistance or contracting officer.
    (d) The appeal may take one of the following three alternative 
courses, depending on the amount of the claim and degree of formality 
desired or needed:
    (1) The first method is to proceed on the basis of a written record, 
without any oral presentations. It is the quickest and simplest process 
available to an appellant. All appeals involving less than $10,000 will 
be decided on this basis, unless, on application made by the appellant, 
or the respondent, the Board rules otherwise. This method is also 
available for appeals where the amount in dispute is more than $10,000 
if an election is made in accordance with Rule 2. (See Sec. 1024.4)
    (2) A second method is to use a conference-type hearing in which the 
written record is supplemented with an informal oral presentation. It is 
the second fastest process available to an appellant and is conducted in 
a relatively informal manner which may require little, if any, 
testimony, and may even be conducted by a telephone conference call 
where deemed appropriate.
    (3) The third method, and the most time consuming is the use of an 
adversary evidentiary hearing. Because of the procedural and logistical 
aspects involved, this method is more expensive and time consuming than 
the other two methods for both the appellant and respondent. Generally, 
this method is used only if there are complex facts in dispute.
    (e) All three methods are designed to be as informal as possible; 
nevertheless, it should be recognized that the Board must have an 
adequate record on which to base a sound decision. While an orderly 
presentation of evidence is required, the Board attempts to be as 
flexible as possible in the interests of arriving at an impartial, 
inexpensive

[[Page 692]]

and expeditious resolution of the matter.
    (f) The services of an attorney are not necessarily required, 
especially as to the first method. The appellant should note, however, 
that the respondent is represented by an attorney. Hearings, if held, 
are transcribed, and witnesses are required to present information or 
evidence at such hearings under oath. In each case, the Board shall 
issue a written decision unless otherwise requested by a party and the 
request is approved.
[45 FR 29764, May 5, 1980, as amended at 57 FR 56441, Nov. 30, 1992]



Sec. 1024.4  Rules of procedure.

    The following rules of procedure shall govern all financial 
assistance disputes appealed to the Board in accordance with this 
subpart:

                                  Rule

    1. Filing of an appeal; acknowledgment.
    2. Selection of an appeal method.
    3. Development of the record.
    4. Objections to evidence submitted.
    5. Alternative methods of appeal.
    6. Parties to the appeal.
    7. Representation before the Board.
    8. Dismissal for failure to meet deadlines and other requirements.
    9. The Board's powers, functions, and responsibilities.
    10. Ex parte communications (communications outside the record).
    11. Notice and location of hearings.
    12. Calculation of time periods.

               Rule 1. Filing of an Appeal; Acknowledgment

    (a) A brief written notice of appeal, along with a copy of the final 
agency decision being appealed shall be submitted within 60 days after 
receipt of the decision. The notice must indicate that an appeal is 
intended, and must clearly state the issues in controversy, and the 
relief requested. This notice, if sufficiently detailed, may serve as 
the appellant's initial complaint. See Rule 3(a).
    (b) The appeal notice shall be mailed or delivered to the financial 
Assistance Appeals Board (for address see Sec. 1024.3(b)(1)), with a 
copy to the official whose decision is being appealed, and a second copy 
to the General Counsel, Department of Energy, Washington DC 20585.
    (c) upon receiving the appeal notice, the Board will promptly 
acknowledge receipt of the notice of appeal and will notify the parties 
of the date docketed.

                  Rule 2. Selection of an Appeal Method

    Unless submitted earlier, within 20 days after the appellant 
receives the Board's notice of docketing, the appellant must submit to 
the Board, with copy to respondent, a letter electing one of the three 
methods available for processing the appeal. For disputes involving less 
than $10,000, method `'1'' (as set forth in Rule 5(a)) will 
automatically apply unless appellant specifically petitions and is 
granted the right to proceed under one of the other two methods. In 
exceptional circumstances, the respondent may likewise request the use 
of one of the other two methods. This election letter must identify the 
attorney or other person who will repesent the appellant, if the notice 
of appeal did not already do so. (See Rule 7(a)). In case the parties 
disagree as to the appeal method to be used, the Board will finally 
decide.

                    Rule 3. Development of the Record

    (a) Appellant; complaint. (1) Within 30 days after receiving the 
docketing notice from the Board, the appellant shall:
    (i) Submit a complaint, or
    (ii) Submit a specific request (for approval by the Board), that the 
final decision as issued by the financial assistance officer or 
contracting officer, together with the notice of appeal, adequately 
describe the matter in dispute and will serve as the complaint.
    (2) The complaint shall include: A copy of the decision appealed 
from; relevant portions of the applicable assistance agreements; a 
statement of the amount, if any, in dispute; and, if the appellant is 
proceeding under method 1 or 2, a copy of any documents supporting its 
claim. The documents must be organized chronologically and accompanied 
by an indexed list identifying each document by date, originator and 
addressee.
    (3) To reduce the burden on the appellant, the appellant may 
specify, in an appropriate index, those relevant documents already in 
the possession of the respondent which the respondent will then add to 
those documents submitted in its answer.
    (b) Respondent; answer. (1) Respondent shall submit an answer within 
30 days after receipt of a complaint, or after receipt of a notice from 
the Board that the decision and notice of appeal shall serve as the 
complaint. The Board may enter a general denial on behalf of the 
respondent upon its failure to submit an answer within the time 
limitation.
    (2) In its answer the respondent shall submit to the Board, with 
copy to appellant, two copies of any documents, other than those 
submitted by appellant in its complaint--which the respondent considers 
to be material. These should be organized and indexed as required under 
paragraph (a) of this rule and shall include those documents already in 
the possession of the Department

[[Page 693]]

and identified and requested by the appellant in accordance with 
paragraph (a) of this rule.
    (c) The Board, on its own initiative, or in response to an 
appropriate request from a party to the dispute, may order a party to 
submit additional material wherever the Board considers it useful in 
resolving the dispute.

                Rule 4. Objections to Evidence Submitted

    (a) Any objection to a document or other evidence submitted in the 
complaint or answer shall be raised as early as possible. The parties 
shall attempt to resolve such objections informally between themselves 
before asking the Board to intercede.
    (b) For those appeals that are to be resolved on the basis of a 
written record under method 1, either party may object to inclusion of 
materials or documents at any point prior to conclusion of the briefing 
schedule.
    (c) For those appeals that are submitted for resolution using method 
2, either party may object to inclusion of materials or documents at any 
time prior to the conclusion of the hearing.
    (d) For those appeals processed under method 3, any materials or 
documents submitted shall not be included in the record upon which the 
Board's decision will be based unless they are specifically offered and 
admitted into evidence.
    (e) The Board will use the Federal Rules of Evidence as a guide in 
determining admissibility of evidence but may exercise its sound 
discretion where appropriate.

                  Rule 5. Alternative Methods of Appeal

    (a) Method 1. Proceeding on the written record. (1) Within 20 days 
after the appellant receives the respondent's answer, the appellant may 
submit to the Board (with a copy to respondent) a brief or statement 
containing the appellant's argument in support of its claim. Within 20 
days after receipt of the appellant's brief or statement, the respondent 
may submit to the Board (with a copy to the appellant) a brief or 
statement containing the agency's response. Appellant may submit a 
further reply, but must do so within 10 days after appellant's receipt 
of respondent's submission.
    (2) Accelerating the procedure. The appellant may choose one or more 
of the following mechanisms to speed the process.
    (i) The appellant may choose to submit a single brief or statement 
with, or as part of, its election letter, and may consolidate the 
election letter with its notice of appeal.
    (ii) Where the appeal involves an amount in dispute of less that 
$10,000, the appellant may, upon specific request, have the Board issue 
a brief final order affirming or reversing the agency financial 
assistance officer or contracting officer decision, without a written 
decision.
    (3) Inadequate record. (i) If the Board decides that the written 
record presented is inadequate, the Board may present written questions 
to the parties; require further briefing on specified issues; require 
that oral testimony be presented; or take any other action that it 
considers necessary to develop a record upon which to base a sound 
decision.
    (ii) One or both parties may sometimes believe that an issue on 
appeal requires more development than has been achieved on the written 
record. Therefore, on request of either or both parties, and if the 
Board agrees that it is appropriate to further develop the record, the 
Board may require the use of further appropriate procedures as 
applicable to hearings conducted pursuant to paragraphs (b) or (c) of 
this rule.
    (4) Record for decision. The record upon which the decision will be 
based will consist of the complaint and answer (after disposition of all 
objections), the briefs or statements of the parties, and any other 
documents or material specifically allowed by the Board. A decision will 
be issued as soon as practicable (whenever possible within 30 days) 
after all submissions are filed or after the time for filing has 
expired.
    (b) Method 2: Conference hearing--(1) Witness statement. Within 20 
days after the filing and receipt of respondent's answer, each party 
shall submit a witness statement to the Board, with a copy to the other 
party. The witness statement must contain a list of anticipated 
witnesses, with a brief summary of the expected testimony of each, and a 
description of the testimony's relevance to the specific issues and to 
the matter in dispute. The statement may also contain a list of 
questions which the presiding Board member may ask of the other party's 
witness, or an identification of issue areas in which inquiry by the 
presiding Board member would be appropriate. The Board may on its own 
initiative reject unduly repetitious, lengthy or otherwise burdensome 
questions, and may order a party to include additional witnesses, or to 
exclude multiple witnesses who would testify on the same matter.
    (2) Response to the witness statement. Within 15 days after each 
party receives the other's witness statement, each party may respond by 
submitting a supplemental statement to the Board, with a copy to the 
other party. The supplemental statement may add to earlier information, 
or may present any written objections to the proposed questions or issue 
areas, or to the proposed witnesses.
    (3) The conference hearing. (i) As soon as preparations are 
concluded, the Board will set a date for a hearing, to be held at a time 
and place determined by the Board to best serve the interests of all 
concerned. On request by either party, and for good cause, the Board 
may, in its discretion, change the time and place of the hearing. The 
parties

[[Page 694]]

are responsible for producing witnesses specified in the witness 
statements at the time and place set for the hearing conference. A 
transcript or other recording will be made.
    (ii) At the conference hearing, each party may make a brief opening 
statement. The witnesses will be questioned based on their statements; 
and the Board may inquire further of each witness for information which 
may or may not be included in the witness' statement. At the end of each 
witness' testimony, either party may suggest additional questions, which 
the Board may ask, if no objections thereto have been sustained. The 
Board may permit or require the parties or their representatives to 
comment further on issues of fact or law. Brief closing statements will 
be permitted.
    (iii) Except for opening and closing statements, and any questions 
asked during direct testimony, or as otherwise specifically allowed by 
the Board, the only oral communications in the record will be those of 
the Board member and the witnesses. Generally, no documentary evidence 
will be received at a conference hearing. Although the conference 
hearing is informal, witnesses will be required to testify under oath.
    (4) Procedures after the hearing. Upon request, post hearing briefs 
may be allowed to be submitted within an appropriate time as may be set 
by the Board. No rebuttal briefs shall be permitted.
    (5) Record for decision. The record upon which the decision will be 
based will consist of the complaint and answer (after disposition of the 
objections), the hearing transcript, briefs of the parties, and any 
other such documents specifically admitted by the Board into the record. 
The Board will issue a decision as soon as practicable (whenever 
possible within 60 days) after all submissions are filed or after the 
time for filing has expired.
    (c) Method 3: Full evidentiary hearing--(1) Special requirement. If 
the appellant decides it is appropriate to seek a full evidentiary 
hearing, its election letter submitted under Rule 2 must specifically 
indicate this choice. This method may also be used where the disputed 
matter involves a complex fact situation or would require extensive 
preparation. In such circumstances, the respondent my request, and the 
Board may approve, the use of this method. When this method is adopted, 
the Board may use the Rules of Procedure of the Board of Contract 
Appeals (10 CFR part 1023) as may be needed to provide an orderly 
proceeding.
    (2) Informal conference before the hearing. Generally, the Board 
will require the parties to appear at an early prehearing conference 
(which, at the option of the Board, may be conducted by telephone 
conference call), to consider any of the following: the possibility of 
settlement; simplifying and clarifying issues; stipulations and 
admissions of facts; limitations on evidence and witnesses that will be 
presented at the hearing; agreement on issues in dispute; and any other 
matter that may aid in disposing of the appeal. The Board, in its 
discretion, may record the results of the conference in a document which 
will be made part of the record, or may have the prehearing conference 
transcribed.
    (3) Record for decision. The record upon which the decision will be 
based by the Board will consist of the complaint and answer, other 
pleadings, orders, stipulations that resulted from prehearing 
conferences, the transcript and testimony of any witness, any additional 
papers or exhibits introduced at the hearing, and the briefs of the 
parties. The Board will issue a decision as soon as practicable 
(whenever possible within 120 days) after all briefs are filed or after 
the time for filing briefs has expired.

                      Rule 6. Parties to the Appeal

    Generally, the only parties to the appeal are the financial 
assistance recipient which received the final agency decision on which 
the appeal is based, and the Department. However, upon request the Board 
may allow a third party to present the case on appeal or appear with a 
party in the case, when the Board determines that the third party is a 
real party in interest.

                 Rule 7. Representation Before the Board

    (a) The appellant. An appellant may appear before the Board in 
person or through a representative. The appellant's notice of appeal, or 
the appellant's election letter submitted pursuant to Rule 2 must 
specify the name, address and telephone number of the appellant's 
representative. An attorney representing appellant shall file a written 
notice of appearance. If represented by someone other than an attorney, 
appellant shall submit a declaration, signed by a responsible official 
of the appellant, that the person is authorized to act for the 
appellant.
    (b) The respondent. As soon as practicable, and no more than 20 days 
after receiving the notice of appeal under Rule 1, the attorney 
representing the interest of the respondent shall file a notice of 
appearance and shall serve the notice on the appellant, or the 
appellant's attorney.

 Rule 8. Dismissal for Failure To Meet Deadlines and Other Requirements

    (a) Whenever an appeal record discloses the failure of any party to 
file documents required by these rules, respond to notices or 
correspondence from the Board, or otherwise indicates an intention by 
that party not to continue the prosecution or defense of an appeal, the 
Board may issue an order requiring the offending party to show cause why 
the appeal should not be dismissed, or granted, as appropriate. If the 
offending party does

[[Page 695]]

not, or is not able to respond adequately, the Board may take such 
action as it deems reasonable and proper.
    (b) If any party fails or refuses to obey an order issued by the 
Board, the Board may issue such orders as it considers necessary to 
permit the just and expeditious conduct of the appeal, including 
dismissal.

       Rule 9. The Board's Powers, Functions, and Responsibilities

    The Board has been delegated all powers necessary for the 
performance of its duties, including but not limited to the authority to 
conduct hearings, call witnesses, dismiss appeals with or without 
prejudice, order the production of documents and other evidence, 
administer oaths and affirmations, issue subpoenas, order depositions to 
be taken, take official notice of facts within general knowledge, and 
decide all questions of fact and law. In discharging its functions, the 
Board shall provide an expeditious, just, and relatively inexpensive 
forum for resolving the dispute.

  Rule 10. Ex Parte Communications (Communications Outside the Record)

    (a) Written or oral communications with a Board member by one party 
without the participation or notice to the other about the merits of the 
appeal is not permitted. No member of the Board, or the Board's staff, 
shall consider, nor shall any person directly or indirectly involved in 
an appeal, submit any off the record information, whether written or 
oral, relating to any matter at issue in an appeal.
    (b) This rule does not apply to communications among members and 
staff, nor to communications concerning the Board's administrative 
functions or procedures.

                Rule 11. Notice and Location of Hearings

    Hearings will be held at such places and at such times determined by 
the Board to best serve the interests of the parties and the Board. In 
scheduling hearings, the Board will consider the desires of the parties 
and the requirement for just and inexpensive determination of appeals 
without unnecessary delay. The parties shall be given at least 15 days 
notice of time and place set for hearings.

                  Rule 12. Calculation of Time Periods

    If a due date for the filing of any paper under these procedures 
falls on a Sunday, Saturday, or Federal holiday, then it shall be 
extended to the next calendar working day.



PART 1036--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                           Subpart A--General

Sec.
1036.100  Purpose.
1036.105  Definitions.
1036.110  Coverage.
1036.115  Policy.

                       Subpart B--Effect of Action

1036.200  Debarment or suspension.
1036.205  Ineligible persons.
1036.210  Voluntary exclusion.
1036.215  Exception provision.
1036.220  Continuation of covered transactions.
1036.225  Failure to adhere to restrictions.

                          Subpart C--Debarment

1036.300  General.
1036.305  Causes for debarment.
1036.310  Procedures.
1036.311  Investigation and referral.
1036.312  Notice of proposed debarment.
1036.313  Opportunity to contest proposed debarment.
1036.314  Debarring official's decision.
1036.315  Settlement and voluntary exclusion.
1036.320  Period of debarment.
1036.325  Scope of debarment.

                          Subpart D--Suspension

1036.400  General.
1036.405  Causes for suspension.
1036.410  Procedures.
1036.411  Notice of suspension.
1036.412  Opportunity to contest suspension.
1036.413  Suspending official's decision.
1036.415  Period of suspension.
1036.420  Scope of suspension.

       Subpart E--Responsibilities of GSA, Agency and Participants

1036.500  GSA responsibilities.
1036.505  DOE responsibilities.
1036.510  Participant's responsibilities.

          Subpart F--Drug-Free Workplace Requirements (Grants)

1036.600  Purpose.
1036.605  Definitions.
1036.610  Coverage.

[[Page 696]]

1036.615  Grounds for suspension of payments, suspension or termination 
          of grants, or suspension or debarment.
1036.620  Effect of violation.
1036.625  Exception provision.
1036.630  Certification requirements and procedures.
1036.635  Reporting of and employee sanctions for convictions of 
          criminal drug offenses.

    Subpart G--Additional DOE Procedures for Debarment and Suspension

1036.700  Procedures.
1036.705  Coordination with Department of Justice.
1036.715  Effects of being listed on the GSA list.

Appendix A to Part 1036--Certification Regarding Debarment, Suspension, 
          and Other Responsibility Matters--Primary Covered Transactions
Appendix B to Part 1036--Certification Regarding Debarment, Suspension, 
          Ineligibility and Voluntary Exclusion--Lower Tier Covered 
          Transactions
Appendix C to Part 1036--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: E.O. 12549; Sec. 5151-5160 of the Drug-Free Workplace Act 
of 1988(Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 701 et seq.); 
Secs. 644 and 646, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254 and 
7256); Pub. L. 97-258, 98 Stat. 1003-1005(31 U.S.C.) 6301-6308.

    Source: 53 FR 19204, May 26, 1988, unless otherwise noted.

    Editorial Note 1: Nomenclature changes affecting this part appear at 
53 FR 19204, May 26, 1988.


    Editorial Note 2: For additional information, see related documents 
published at 52 FR 20360, May 29, 1987; 53 FR 19160, May 26, 1988; 53 FR 
34474, Sept. 6, 1988, and 55 FR 21688, May 25, 1990.

    Cross Reference: See also Office of Management and Budget notice 
published at 60 FR 33036, June 26, 1995.



                           Subpart A--General



Sec. 1036.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see definition of 
``ineligible'' in Sec. 1036.105), and participants who have voluntarily 
excluded themselves from participation in covered transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR Part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.
[60 FR 33040, 33043, June 26, 1995]

[[Page 697]]



Sec. 1036.105  Definitions.

    The following definitions apply to this part:
    Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
    Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
    Awardee. Any organization or individual that:
    (1) Submits proposals for, or is awarded, or reasonably may be 
expected to submit proposals for, or be awarded a DOE agreement; or
    (2) Conducts business with DOE as an agent or representative of an 
awardee.
    Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
    Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
    Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
    (3) The DOE debarring official is the Deputy Assistant Secretary for 
Procurement and Assistance Management or designee.
    DOE. The Department of Energy, including the Federal Energy 
Regulatory Commission.
    Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
    Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing regulations, the 
equal employment opportunity acts and executive orders, or the 
environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
    Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its

[[Page 698]]

equivalent, to the last known address of a party, its identified 
counsel, its agent for service of process, or any partner, officer, 
director, owner, or joint venturer of the party. Notice, if 
undeliverable, shall be considered to have been received by the 
addressee five days after being properly sent to the last address known 
by the agency.
    Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
    Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
    Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
    Principal. Officer, director, owner, partner, key employee, or other 
person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (1) Principal investigators.
    (2) [Reserved]
    Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
    Respondent. A person against whom a debarment or suspension action 
has been initiated.
    State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
    Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
    (3) The DOE suspending official is the Deputy Assistant Secretary 
for Procurement and Assistance Management or designee.
    Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act proceedings as may ensue. A person so excluded 
is ``suspended.''
    Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.
[53 FR 19204, May 26, 1988, as amended at 53 FR 19172, May 26, 1988; 60 
FR 33040, 33044, June 26, 1995; 61 FR 39856, July 31, 1996]



Sec. 1036.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.

[[Page 699]]

    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will apply. Subpart B, ``Effect of Action,'' Sec. 1036.200, ``Debarment 
or suspension,'' sets forth the consequences of a debarment or 
suspension. Those consequences would obtain only with respect to 
participants and principals in the covered transactions and activities 
described in Sec. 1036.110(a). Sections 1036.325, ``Scope of 
debarment,'' and 1036.420, ``Scope of suspension,'' govern the extent to 
which a specific participant or organizational elements of a participant 
would be automatically included within a debarment or suspension action, 
and the conditions under which affiliates or persons associated with a 
participant may also be brought within the scope of the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995 shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995 shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.
    (1) Debarment and suspension of DOE procurement contractors is 
covered by 48 CFR (DEAR) 909.4.

[[Page 700]]

    (2) [Reserved]
[53 FR 19204, May 26, 1988 as amended at 60 FR 33041, 33044, June 26, 
1995; 61 FR 39856, July 31, 1996]



Sec. 1036.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                       Subpart B--Effect of Action



Sec. 1036.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 1036.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 1036.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.
[60 FR 33041, 33044, June 26, 1995]



Sec. 1036.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 1036.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 1036.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 1036.315 are 
excluded in accordance with the terms of their settlements. DOE shall, 
and participants may, contact the original action agency to ascertain 
the extent of the exclusion.



Sec. 1036.215  Exception provision.

    DOE may grant an exception permitting a debarred, suspended, or 
voluntarily excluded person, or a person proposed for debarment under 48 
CFR part 9, subpart 9.4, to participate in a particular covered 
transaction upon a

[[Page 701]]

written determination by the agency head or an authorized designee 
stating the reason(s) for deviating from the Presidential policy 
established by Executive Order 12549 and Sec. 1036.200. However, in 
accordance with the President's stated intention in the Executive Order, 
exceptions shall be granted only infrequently. Exceptions shall be 
reported in accordance with Sec. 1036.505(a).
    (a) The DOE authorized designee is the Deputy Assistant Secretary 
for Procurement and Assistance Management or designee.
    (b) [Reserved]
[60 FR 33041, 33044, June 26, 1995, as amended at 61 FR 39856, July 31, 
1996]



Sec. 1036.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in 
Sec. 1036.215.
[60 FR 33041, 33044, June 26, 1995]



Sec. 1036.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 1036.215 or Sec. 1036.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly do business with a person that 
filed an erroneous certification.
[60 FR 33041, 33044, June 26, 1995]



                          Subpart C--Debarment



Sec. 1036.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 1036.305, using procedures established in Secs. 1036.310 through 
1036.314. The existence of a cause for debarment, however, does not 
necessarily require that the person be debarred; the seriousness of the 
person's acts or omissions and any mitigating factors shall be 
considered in making any debarment decision.



Sec. 1036.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 1036.300 through 1036.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or

[[Page 702]]

destruction of records, making false statements, receiving stolen 
property, making false claims, or obstruction of justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 1036.215 or Sec. 1036.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 1036.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart F of this part, relating 
to providing a drug-free workplace, as set forth in Sec. 1036.615 of 
this part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.
[53 FR 19204, May 26, 1988, as amended at 54 FR 4950 and 4952, Jan. 31, 
1989]



Sec. 1036.310  Procedures.

    DOE shall process debarment actions as informally as practicable, 
consistent with the principles of fundamental fairness, using the 
procedures in Secs. 1036.311 through 1036.314.



Sec. 1036.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 1036.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 1036.305 for proposing 
debarment;
    (d) Of the provisions of Sec. 1036.311 through Sec. 1036.314, and 
any other DOE procedures, if applicable, governing debarment 
decisionmaking; and
    (e) Of the potential effect of a debarment.
    (f) That within 30 days after receipt of the notice, the respondent 
may submit, or make a written request for an opportunity to submit, to 
the debarring official or designee, information and argument in 
opposition to the proposed debarment, including any additional specific 
information that may raise a genuine dispute over the material facts. 
The submission in opposition may be made in person, in writing or 
through a representative; and

[[Page 703]]

    (g) That the respondent's name and address have been placed on the 
GSA List.
[53 FR 19204, May 26, 1988, as amended at 53 FR 19173, May 26, 1988; 61 
FR 39856, July 31, 1996]



Sec. 1036.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (1) A request for a meeting should be sent to the debarring 
official.
    (2) [Reserved]
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.
[53 FR 19204, May 26, 1988 as amended at 53 FR 19173, May 26, 1988; 61 
FR 39856, July 31, 1996]



Sec. 1036.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c)(1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 1036.215.
    (v) Advising whether the decision limits the debarment or suspension 
action to affected covered transactions involving particular 
commodities, products, services, or forms of energy, or to projects or 
work performed in specified geographic regions;
    (vi) Stating that a copy of the debarment notice was sent to GSA and 
that the respondent's name and address will be added to the 
Nonprocurement List; and

[[Page 704]]

    (vii) Advising that if less than an entire organization is debarred, 
the identity or description of the organizational element(s) included 
within the scope of the debarment.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.
[53 FR 19204, May 26, 1988 as amended at 53 FR 19173, May 26, 1988; 61 
FR 39856, July 31, 1996]



Sec. 1036.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, DOE may, at any 
time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart E).
[53 FR 19204, May 26, 1988 as amended at 53 FR 19173, May 26, 1988; 61 
FR 39856, July 31, 1996]



Sec. 1036.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart F of this part generally should not exceed 
three years. Where circumstances warrant, a longer period of debarment 
may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart F of this part (see 1036.305(c)(5)), the period of debarment 
shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 1036.311 through 1036.314 shall be followed to extend the 
debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.
[53 FR 19204, May 26, 1988, as amended at 54 FR 4950 and 4953, Jan. 31, 
1989]



Sec. 1036.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 1036.311 through 
1036.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall

[[Page 705]]

be evidence of such knowledge, approval, or acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement may be imputed 
to other participants if the conduct occurred for or on behalf of the 
joint venture, grant pursuant to a joint application, or similar 
arrangement or with the knowledge, approval, or acquiescence of these 
participants. Acceptance of the benefits derived from the conduct shall 
be evidence of such knowledge, approval, or acquiescence.



                          Subpart D--Suspension



Sec. 1036.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 1036.405 using procedures established in Secs. 1036.410 
through 1036.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 1036.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 1036.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 1036.400 through 1036.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in 
Sec. 1036.305(a); or
    (2) That a cause for debarment under Sec. 1036.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 1036.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. DOE shall process suspension actions as 
informally as practicable, consistent with principles of fundamental 
fairness, using the procedures in Sec. 1036.411 through Sec. 1036.413.



Sec. 1036.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further Federal Government 
dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 1036.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Sec. 1036.411 through Sec. 1036.413 and any 
other [DOE] procedures, if applicable, governing suspension 
decisionmaking; and
    (g) Of the effect of the suspension.

[[Page 706]]

    (h) That within 30 days after receipt of the notice, the respondent 
may submit, or make a written request for an opportunity to submit, to 
the suspending official or designee, information and argument in 
opposition to the suspension, including any additional specific 
information that may raise a genuine dispute over the material facts. 
The submission in opposition may be made in person, in writing, or 
through a representative.
    (i) That the suspension is effective as of the date of the notice.
    (j) That the respondent's name and address have been placed on the 
GSA List.
[53 FR 19204, May 26, 1988 as amended at 53 FR 19173, May 26, 1988; 61 
FR 39856, July 31, 1996]



Sec. 1036.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on the same facts as the 
suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.
[53 FR 19204, May 26, 1988 as amended at 53 FR 19173, May 26, 1988; 61 
FR 39856, July 31, 1996]



Sec. 1036.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 1036.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 1036.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion

[[Page 707]]

of an investigation or ensuing legal, debarment, or Program Fraud Civil 
Remedies Act proceedings, unless terminated sooner by the suspending 
official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 1036.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 1036.325), except that the procedures of Secs. 1036.410 
through 1036.413 shall be used in imposing a suspension.



       Subpart E--Responsibilities of GSA, Agency and Participants



Sec. 1036.500  GSA responsibilities.

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.



Sec. 1036.505  DOE responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which DOE has granted exceptions under Sec. 1036.215 permitting 
participation by debarred, suspended, or voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 1036.500(b) and of 
the exceptions granted under Sec. 36.215 within five working days after 
taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) Agency officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (Tel. ).
    (e) Agency officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.



Sec. 1036.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is

[[Page 708]]

not required to, check the Nonprocurement List for its principals (Tel. 
). Adverse information on the certification will not necessarily result 
in denial of participation. However, the certification, and any 
additional information pertaining to the certification submitted by the 
participant, shall be considered in the administration of covered 
transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(Tel. ).
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to DOE if at any time the 
participant learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances. Participants 
in lower tier covered transactions shall provide the same updated notice 
to the participant to which it submitted its proposals.



          Subpart F--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688 and 21691, May 25, 1990, unless otherwise noted.



Sec. 1036.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 1036.605  Definitions.

    (a) Except as amended in this section, the definitions of 
Sec. 1036.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All ``direct charge'' employees;
    (ii) All ``indirect charge'' employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

[[Page 709]]


This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers the instrumentality to be an agency of the 
State government.



Sec. 1036.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts A, B, C, D and E of this part apply 
to matters covered by this subpart, except where specifically modified 
by this subpart. In the event of any conflict between provisions of this 
subpart and other provisions of this part, the provisions of this 
subpart are deemed to control with respect to the implementation of 
drug-free workplace requirements concerning grants.



Sec. 1036.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 1036.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of subparagraphs (A.) (a)-(g) and/or (B.) of the 
certification (Alternate I to appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.

[[Page 710]]



Sec. 1036.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 1036.615, and in accordance with applicable law, the grantee shall 
be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 1036.320(a)(2) of this 
part).



Sec. 1036.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 1036.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.

[[Page 711]]

    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 1036.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall report the conviction, in writing, within 10 calendar 
days, to his or her Federal agency grant officer, or other designee, 
unless the Federal agency has designated a central point for the receipt 
of such notices. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002.)



    Subpart G--Additional DOE Procedures for Debarment and Suspension

    Source: 53 FR 19173, May 26, 1988, unless otherwise noted. 
Redesignated at 54 FR 4953, Jan. 31, 1989.



Sec. 1036.700  Procedures.

    (a) Decisionmaking process for debarments. (1) In actions based upon 
a conviction or civil judgment, and other actions in which there is no 
genuine dispute over material facts, the debarring official shall make a 
decision on the basis of all the information in the administrative 
record, including any submissions made by the awardee. If no suspension 
is in effect, the decision shall be made within 30 working days after 
receipt of any information and argument submitted by the awardee, unless 
the debarring official extends this period for good cause. The debarring 
official shall consider information and argument in opposition to the 
proposed debarment including identification of disputed material facts. 
If the respondent fails to submit a timely written response to a notice 
of proposed debarment, the debarring official shall notify the 
respondent in accordance with 10 CFR 1036.312 that the awardee is 
debarred.
    (2) In actions not based upon a conviction or civil judgment, if it 
is found that the awardee's submission in opposition raises a genuine 
dispute over facts material to the proposed debarment, at the request of 
the awardee, the debarring official shall refer the matter to the Energy 
Board of Contract Appeals for a fact-finding conference, in accordance 
with rules consistent with this section promulgated by the Energy Board 
of Contract Appeals. The Energy Board of Contract Appeals shall report 
to the Debarring Official findings of fact, not conclusions of law. The 
findings shall resolve any disputes over material facts based on a 
preponderance of evidence.

[[Page 712]]

    (b) Decisionmaking process for suspensions. (1) In actions based on 
an indictment, the suspending official shall make a decision based upon 
the administrative record, which shall include submissions made by the 
awardee.
    (2) In actions not based on an indictment, if it is found that the 
awardee's submission in opposition raises a genuine dispute over facts 
material to the suspension and if no determination has been made, on the 
basis of Department of Justice advice, that substantial interest of the 
Government in pending or contemplated legal proceedings based on the 
same facts as the suspension would be prejudiced, the suspending 
official shall, at the request of the awardee, refer the matter to the 
Energy Board of Contract Appeals for a fact-finding conference, in 
accordance with rules promulgated by the Energy Board of Contract 
Appeals. The Energy Board of Contract Appeals shall report to the 
Suspending Official findings of fact, not conclusions of law. The 
findings shall resolve any disputes over material facts based on 
adequate evidence.
    (c) Meeting. Upon receipt of a timely request therefore from the 
respondent, the debarring/suspending official shall schedule a meeting 
between the debarring/suspending official and the respondent, to be held 
no later than 30 days from the date the request is received. The 
debarring/suspending official may postpone the date of the meeting if 
the respondent requests a postponement in writing. At the meeting, the 
respondent, appearing personally or through an attorney or other 
authorized representative, may informally present and explain evidence 
that causes for debarment or suspension do not exist, evidence of any 
mitigating factors, and arguments concerning the imposition, scope, 
duration, or effects of a proposed debarment or suspension.
    (d) Fact-finding conference. The purpose of a fact-finding 
conference under this section is to provide the respondent an 
opportunity to dispute material facts and to provide the debarring/
suspending official with findings of fact based, as applicable, on 
adequate evidence or on a preponderance of the evidence. If the 
debarring/suspending official determines that a written response or a 
presentation at the meeting under paragraph (c) of this section puts 
material facts in dispute, the debarring/suspending official shall refer 
the matter to the Energy Board of Contract Appeals for fact-finding. The 
fact-finding conference shall be conducted in accordance with rules 
promulgated by the Energy Board of Contract Appeals. The Energy Board of 
Contract Appeals shall report to the Debarring Official findings of 
fact, but not conclusions of law. The findings shall resolve any 
disputes over material facts based on a preponderance of evidence if the 
case involves a proposal to debar, or on adequate evidence if the case 
involves a suspension. Since convictions or civil judgments generally 
establish the cause for debarment by a preponderance of the evidence, 
there usually is no genuine dispute over a material fact that warrants a 
fact-finding conference for those proposed debarments based on 
convictions or civil judgments.
[61 FR 39856, July 31, 1996]



Sec. 1036.705  Coordination with Department of Justice.

    Whenever a meeting or fact-finding conference is requested, under 
Sec. 1036.700(c), the debarring/suspending official's legal 
representative shall obtain the advice of appropriate Department of 
Justice officials concerning the impact disclosure of evidence at the 
meeting or fact-finding conference could have on any pending civil or 
criminal investigation or legal proceeding. If such official requests in 
writing that evidence needed to establish the existence of a cause for 
suspension or proposed debarment not be disclosed to the respondent, the 
debarring/suspending official shall:
    (a) Decline to rely on such evidence and withdraw (without 
prejudice) the suspension or proposed debarment until such time as 
disclosure of the evidence is authorized; or
    (b) Deny additional proceedings and base the decision on all 
information in the administrative recording, including any submissions 
made by the respondent.
[53 FR 19173, May 26, 1988. Redesignated at 54 FR 4953, Jan. 31, 1989, 
as amended at 61 FR 39857, July 31, 1996]

[[Page 713]]



Sec. 1036.715  Effects of being listed on the GSA list.

    The Deputy Assistant Secretary for Procurement and Assistance 
Management or designee may grant an exception to the prohibitions of 
paragraphs (a) through (e) of this section by issuing a written 
determination setting forth the compelling reasons justifying the waiver 
in accordance with Sec. 1036.215.
    (a) DOE shall not solicit, or consider, and shall return any 
proposal submitted by a contractor, awardee, or person on the GSA List 
or a person on the Nonprocurement List, to the extent that the 
solicitation activity or proposal falls within the scope of the 
suspension, proposed debarment, debarment, ineligibility of voluntary 
exclusion, as indicated on the GSA List or Nonprocurement List.
    (b) DOE shall not award, extend, renew any agreement or primary 
covered transaction with an awardee or person on the GSA List or on the 
Nonprocurement List, to the extent that the activity falls within the 
scope of the suspension, proposed debarment, debarment, ineligibility or 
voluntary exclusion, as indicated on the GSA List or Nonprocurement 
List.
    (c) DOE shall not approve or consent to any new, continuation, 
renewal award or extension of a subagreement or lower tier covered 
transaction with a contractor, awardee, or person on the GSA List and 
shall not approve or consent to any new, continuation, renewal award or 
extension of a subagreement or lower tier covered transaction with a 
person on the Nonprocurement List, to the extent that the award falls 
within the scope of the suspension proposed debarment, debarment, 
ineligibility or voluntary exclusion.
    (d) DOE shall disapprove or not consent to the selection (by an 
awardee or participant) or a individual or principal to serve as a 
principal investigator, as a project manager, in a position of 
responsibility for the administration of Federal funds, or in another 
key personnel position, if the individual is on the GSA List or the 
Nonprocurement List.
    (e) DOE shall not conduct business with an agent or representative 
whose name appears on the GSA List or the Nonprocurement List.
    (f) DOE shall review existing agreements and may initiate a review 
of any subagreements with a contractor, awardee or person on the GSA 
List or on the Nonprocurement List for the purpose of determining 
whether termination or other remedial action, available under the terms 
of the agreement, subagreement, or applicable law, is necessary to 
protect the Government's interest.
    (g) DOE shall review the GSA List and the Nonprocurement List before 
conducting a preaward survey or soliciting proposals, making new, 
continuation, or renewal awards or otherwise extending the duration of 
existing agreements, or approving or consenting to the award, extension, 
or renewal of subagreements.
    (h) DOE participants shall not award, extend, renew any agreement or 
lower tier covered transaction with an awardee or person that fails to 
complete the certification required by Sec. 1036.510(b), or that the 
participant knows that the certification is false.
[53 FR 19173, May 26, 1988. Redesignated at 54 FR 4953, Jan. 31, 1989, 
as amended at 61 FR 39857, July 31, 1996]

Appendix A to Part 1036--Certification Regarding Debarment, Suspension, 
     and Other Responsibility Matters--Primary Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or

[[Page 714]]

agency determined to enter into this transaction. If it is later 
determined that the prospective primary participant knowingly rendered 
an erroneous certification, in addition to other remedies available to 
the Federal Government, the department or agency may terminate this 
transaction for cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.
[60 FR 33042, 33044, June 26, 1995]

[[Page 715]]

Appendix B to Part 1036--Certification Regarding Debarment, Suspension, 
 Ineligibility and Voluntary Exclusion--Lower Tier Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.
[60 FR 33042, 33044, June 26, 1995]

  Appendix C to Part 1036--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may

[[Page 716]]

take action authorized under the Drug-Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All ``direct charge'' 
employees; (ii) all ``indirect charge'' employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Reqardinq Druq-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under subparagraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under subparagraph (d)(2), with respect to any employee 
who is so convicted--

[[Page 717]]

    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:
Place of Performance (Street address, city, county, state, zip code)
 _______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include the 
identification number(s) of each affected grant.
[55 FR 21690, 21691, May 25, 1990]



PART 1039--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents




    Authority: Section 213, Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 
(42 U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).



Sec. 1039.1  Uniform relocation assistance and real property acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987 (Title IV 
of Pub. L. 100-17, 101 Stat. 246-255, 42 U.S.C. 4601 note) are set forth 
in 49 CFR part 24.
[52 FR 48017, Dec. 17, 1987; 54 FR 8912, 8913, Mar. 2, 1989]



PART 1040--NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS--Table of Contents




                      Subpart A--General Provisions

Sec.
1040.1  Purpose.
1040.2  Application.
1040.3  Definitions--General.
1040.4  Assurances required and preaward review.
1040.5  Designation of responsible employee.
1040.6  Notice.
1040.7  Remedial and affirmative action and self-evaluation.
1040.8  Effect of employment opportunity.

 Subpart B--Title VI of the Civil Rights Act of 1964; Section 16 of the 
 Federal Energy Administration Act of 1974, as Amended; and Section 401 
                of the Energy Reorganization Act of 1974

1040.11  Purpose and application.
1040.12  Definitions.
1040.13  Discrimination prohibited.
1040.14  Covered employment.

   Subpart C--Nondiscrimination on the Basis of Sex--Title IX of the 
                Education Amendments of 1972, as Amended

1040.21  Purpose.
1040.22  Application.
1040.23  Definitions.
1040.24  Effects of other requirements.
1040.25  Educational institutions controlled by religious organizations.
1040.26  Military and merchant marine educational institutions.
1040.27  Membership practices of certain organizations.
1040.28  Admissions.
1040.29  Educational institutions eligible to submit transition plans.
1040.30  Transition plans.

[[Page 718]]

1040.31  Discrimination on the basis of sex in admission and recruitment 
          prohibited: admission.
1040.32  Preference in admission.
1040.33  Recruitment.
1040.34  Education programs and activities.
1040.35  Housing.
1040.36  Comparable facilities.
1040.37  Access to course offerings.
1040.38  Access to schools operated by LEA's.
1040.39  Counseling and use of appraisal and counseling materials.
1040.40  Financial assistance.
1040.41  Employment assistance to students.
1040.42  Health and insurance benefits and services.
1040.43  Marital or parental status.
1040.44  Athletics.
1040.45  Textbooks and curricular materials.
1040.46  Procedures.

                          Employment Practices

1040.47  Employment.
1040.48  Employment criteria.
1040.49  Recruitment.
1040.50  Compensation.
1040.51  Job classification and structure.
1040.52  Fringe benefits.
1040.53  Marital or parental status.
1040.54  Effect of State or local law or other requirements.
1040.55  Advertising.
1040.56  Pre-employment inquiries.
1040.57  Sex as a bona-fide occupational qualification.

 Subpart D--Nondiscrimination on the Basis of Handicap--Section 504 of 
               the Rehabilitation Act of 1973, as Amended

                           General Provisions

1040.61  Purpose and application.
1040.62  Definitions.
1040.63  Discrimination prohibited.
1040.64  Effect of State or local law or other requirements and effect 
          of employment opportunities.
1040.65  Procedures.

                          Employment Practices

1040.66  Discrimination prohibited.
1040.67  Reasonable accommodation.
1040.68  Employment criteria.
1040.69  Preemployment inquiries.

                          Program Accessibility

1040.71  Discrimination prohibited.
1040.72  Existing facilities.
1040.73  New construction.
1040.74  Program accessibility in historic properties.

Subpart E--Nondiscrimination on the Basis of Age--Age Discrimination Act 
                           of 1975, as Amended

                           General Provisions

1040.81  Purpose.
1040.82  Application.
1040.83  Definitions.

              Standards for Determining Age Discrimination

1040.84  Rules against age discrimination.
1040.85  Definitions of ``Normal Operation'' and ``Statutory 
          Objective''.
1040.86  Exceptions to the rules against age discrimination. Normal 
          operation or statutory objective of any program or activity.
1040.87  Exceptions to the rules against age discrimination. Reasonable 
          factors other than age.
1040.88  Remedial and affirmative action by recipients.
1040.89  Burden of proof.

                   Responsibilities of DOE Recipients

1040.89-1  General responsibilities.
1040.89-2  Notice to subrecipients.
1040.89-3  Information requirements.

         Investigation, Conciliation and Enforcement Procedures

1040.89-4  Compliance reviews.
1040.89-5  Complaints.
1040.89-6  Mediation.
1040.89-7  Investigation.
1040.89-8  Prohibition against intimidation or retaliation.
1040.89-9  Compliance procedure.
1040.89-10  Hearings, decisions, post-termination proceedings.
1040.89-11  Remedial action by recipients.
1040.89-12  Alternate funds disbursal procedure.
1040.89-13  Exhaustion of administrative remedies.


Appendix A to Subpart E to Part 1040--DOE Federally Assisted Programs 
          Containing Age Distinctions

Subpart F--Nondiscrimination Under Title VIII of the Civil Rights Act of 
                       1968, as Amended [Reserved]

                      Subpart G--Program Monitoring

1040.101  Compliance reviews.
1040.102  Compliance information.
1040.103  [Reserved]
1040.104  Complaint investigation.

                         Subpart H--Enforcement

                      Means of Effecting Compliance

1040.111  Means available.

[[Page 719]]

1040.112  Noncompliance with assurances.
1040.113  Deferral.
1040.114  Termination of or refusal to grant or to continue Federal 
          financial assistance.
1040.115  Other means authorized by law.

                         Opportunity for Hearing

1040.121  Notice of opportunity for hearing.
1040.122  Request for hearing or review.
1040.123  Consolidated or joint hearings.
1040.124  Responsibility of the Federal Energy Regulatory Commission.

                             Judicial Review

1040.131  Judicial review.

Appendix A to Part 1040--Federal Financial Assistance of the Department 
          of Energy to Which This Part Applies

    Authority: 20 U.S.C. 1681-1686; 29 U.S.C. 794; 42 U.S.C. 2000d to 
2000d-4a, 3601-3631, 5891, 6101-6107, 6870, 7101 et seq.

    Source: 45 FR 40515, June 13, 1980, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1040.1  Purpose.

    The purpose of this part is to implement Title VI of the Civil 
Rights Act of 1964, Pub. L. 88-352; section 16 of the Federal Energy 
Administration Act of 1974, as amended, Pub. L. 93-275; section 401 of 
the Energy Reorganization Act of 1974, Pub. L. 93-438; Title IX of the 
Education Amendments of 1972, as amended, Pub. L. 92-318, Pub. L. 93-568 
and Pub. L. 94-482; section 504 of the Rehabilitation Act of 1973, as 
amended, Pub. L. 93-112; the Age Discrimination Act of 1975, Pub. L. 94-
135; Title VIII of the Civil Rights Act of 1968, Pub. L. 90-284; and 
civil rights provisions of statutes administered pursuant to authority 
under the DOE Organization Act, Pub. L. 95-91, so no person shall, on 
the ground of race, color, national origin, sex (when covered by section 
16 and section 401), handicap, or age, be excluded from participation 
in, be denied the benefits of, be subjected to discrimination under, or 
be denied employment, where a primary purpose of the program or activity 
is to provide employment or when the delivery of program services is 
affected by the recipient's employment practices (under section 504, all 
grantee and subgrantee employment practices are covered regardless of 
the purpose of the program), in connection with any program or activity 
receiving Federal financial assistance from the Department of Energy 
(after this referred to as DOE or the Department). Employment coverage 
may be broader in scope when section 16, section 401, or Title IX are 
applicable.



Sec. 1040.2  Application.

    (a) The application of this part is to any program or activity for 
which Federal financial assistance is authorized under laws administered 
by DOE. Programs to which this part applies are listed in Appendix A of 
this part. Appendix A is to be revised from time to time by notice 
published in the Federal Register. This part applies to money paid, 
property transferred, or other Federal financial assistance including 
cooperative agreements extended under any program or activity, by way of 
grant, loan, or contract by DOE, or grants awarded in the performance of 
a contract with DOE by an authorized contractor or subcontractor, the 
terms of which require compliance with this part. If any statutes 
implemented by this part are otherwise applicable, the failure to list a 
program in Appendix A does not mean the program is not covered by this 
part.
    (b) This part does not apply to:
    (1) Contracts of insurance or guaranty;
    (2) Employment practices under any program or activity except as 
provided in Secs. 1040.12, 1040.14, 1040.41, 1040.47 and 1040.66; or
    (3) Procurement contracts under Title 41 CFR part 1 or part 9.



Sec. 1040.3  Definitions--General.

    (a) Academic institution includes any school, academy, college, 
university, institute, or other association, organization, or agency 
conducting or administering any program, project, or facility designed 
to educate or train individuals.
    (b) Administrative law judge means a person appointed by the 
reviewing authority to preside over a hearing held under this part.
    (c) Agency or Federal agency refers to any Federal department or 
agency which extends Federal financial assistance.

[[Page 720]]

    (d) Applicant for assistance means one who submits an application, 
request, or plan required to be approved by a Department official or by 
a primary recipient as a condition to becoming eligible for Federal 
financial assistance.
    (e) Assistant Attorney General refers to the Assistant Attorney 
General, Civil Rights Division, United States Department of Justice.
    (f) Director, FAPD refers to the Director, Federally Assisted 
Programs Division, Office of Equal Opportunity, DOE.
    (g) Compliance Review means an analysis of a recipient's selected 
employment practices or delivery of services for adherence to provisions 
of any of the subparts of this part.
    (h) Department means the Department of Energy (DOE).
    (i) FERC means the Federal Energy Regulatory Commission, DOE.
    (j) Where designation of persons by race, color, or national origin 
is required, the following designations are to be used:
    (1) Black, not of Hispanic origin. A person having origins in any of 
the black racial groups of Africa.
    (2) Hispanic. A person of Mexican, Puerto Rican, Cuban, Central or 
South American or other Spanish Culture or origin, regardless of race.
    (3) Asian or Pacific Islander. A person having origins in any of the 
original peoples of the Far East, Southeast Asia, the Indian 
Subcontinent, or the Pacific Islands. This includes, for example, China, 
India, Japan, Korea, the Philippine Islands, Hawaiian Islands, and 
Samoa.
    (4) American Indian or Alaskan Native. A person having origins in 
any of the original peoples of North America and who maintains cultural 
identification through tribal affiliation or community recognition.
    (5) White, not of Hispanic origin. A person having origins in any of 
the original peoples of Europe, North Africa, or the Middle East.

Additional subcategories based on national origin or primary language 
spoken may be used where appropriate on either a national or a regional 
basis. Paragraphs (j) (1) through (5), inclusive, set forth in this 
section are in conformity with Directive No. 15 of the Office of Federal 
Statistical Policy and Standards. To the extent that these designations 
are modified, paragraphs (j) (1) through (5), inclusive, set forth in 
this section are to be interpreted to conform with those modifications.
    (k) Director means the Director, Office of Equal Opportunity, DOE.
    (l) Disposition means any treatment, handling, decision, sentencing, 
confinement, or other proscription of conduct.
    (m) Employment practices, see individual section headings.
    (n) Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or interest in such property, and the provision of facilities 
includes the construction, expansion, renovation, remodeling, 
alteration, or acquisition of facilities.
    (o) Federal financial assistance includes:
    (1) Grants and loans of Federal funds,
    (2) The grant or donation of Federal property and interest in 
property,
    (3) The detail of or provision of services by Federal personnel,
    (4) The sale and lease of, and the permission to use (on other than 
a casual or transient basis), Federal property or any interest in such 
property, the furnishing of services without consideration or at a 
nominal consideration, or at a consideration which is reduced for the 
purpose of assisting the recipient, or in recognition of the public 
interest to be served by the sale, lease, or furnishing of services to 
the recipient, and
    (5) Any Federal agreement, arrangement, or other contract which has 
as one of its purposes the provision of assistance.
    (p) General Counsel mean the Office of the General Counsel 
Department of Energy.
    (q) Government organization means the political subdivision for a 
prescribed geographical area.
    (r) Investigations include fact-finding efforts and attempts to 
secure voluntary resolution of complaints.
    (s) Noncompliance means the failure of a recipient or subrecipient 
to comply with any subpart of this part.
    (t) Primary recipient means any person, group, organization, state, 
or local unit of government which is authorized or required to extend 
Federal financial

[[Page 721]]

assistance to another recipient for the purpose of carrying out a 
program.
    (u) Program includes any program, project, or activity for the 
provision of services, financial aid, or other benefits to individuals 
(including education or training, health, welfare, rehabilitation, 
housing, or other services, whether provided through an employee of the 
grantee or provided by others through contracts or other arrangements 
with the grantee, and including work opportunities and cash or loan or 
other assistance to individuals), or for the provision of facilities for 
furnishing services, financial aid, or other benefits to individuals. 
The services, financial aid, or other benefits provided under a program 
receiving Federal financial assistance shall be deemed to include any 
services, financial aid, or other benefits provided with the aid of 
Federal financial assistance or with the aid of any non-Federal funds, 
property, or other resources required to be expended or made available 
for the program to meet matching requirements or other conditions which 
must be met in order to receive the Federal financial assistance, and to 
include any services, financial aid, or other benefits provided in or 
through a facility provided with the aid of Federal resources or such 
non-Federal resources.
    (v) Responsible Departmental or DOE Official means the official of 
the Department of Energy that has been assigned the principal 
responsibility for administration of the law extending Federal financial 
assistance.
    (w) Reviewing authority means the component of the Department 
delegated authority by the Secretary to appoint, and to review the 
decisions of, administrative law judges in cases arising under this 
part.
    (x) Secretary means the Secretary of the Department of Energy.
    (y) The term United States includes the states of the United States, 
the District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Island, American Samoa, Guam, Wake Island, the Canal Zone, and all other 
territories and possessions of the United States, and the term State 
includes any one of the foregoing.
    (z) Headquarters means DOE offices located in Washington, D.C.



Sec. 1040.4  Assurances required and preaward review.

    (a) Assurances. An applicant for Federal financial assistance for a 
program or activity to which this part applies shall submit an assurance 
on a form specified by the Director that the program or activity will be 
operated in compliance with applicable subparts. Such assurances are to 
include provisions which give the United States a right to seek judicial 
enforcement.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended in the form of real property or to provide real 
property or structure on the property, the assurance obligates the 
recipient or, in the case of a subsequent transfer, the transferee, for 
the period during which the real property or structures are used for the 
purpose for which Federal financial assistance is extended or for 
another purpose involving the provision of similar services or benefits.
    (2) In the case of Federal financial assistance extended to provide 
personal property, the assurance obligates the recipient for the period 
during which it retains ownership or possession of the property.
    (3) In all other cases, the assurance obligates the recipient to all 
terms and conditions contained in the certificate of assurance for the 
period during which Federal financial assistance is extended.
    (c) Covenants. Where Federal financial assistance is provided in the 
form of real property, structures, improvements on or interests in the 
property, or in the case where Federal financial assistance is provided 
in the form of a transfer of real property or interest in the property 
from the Department:
    (1) The instrument effecting or recording this transfer is to 
contain a covenant running with the land to assure nondiscrimination for 
the period during which the real property is used for a purpose for 
which the Federal financial assistance is extended or for another 
purpose involving the provision of similar services or benefits; or
    (2) Where no transfer of property is involved or imposed with 
Federal financial assistance, the recipient shall agree to include the 
covenant described in paragraph (c)(1) of this section in

[[Page 722]]

the instrument effecting or recording any subsequent transfer of the 
property.
    (3) Where Federal financial assistance is provided in the form of 
real property or interest in the property from the Department, the 
covenant is to also include a condition coupled with a right to be 
reserved by the Department to revert title to the property in the event 
of a material breach of the covenant. If a transferee of real property 
manages to mortgage or otherwise encumber the real property as security 
for financing construction of new or improvement of existing facilities 
on the property for the purpose for which the property was transferred, 
the Director may, upon request of the transferee and, if necessary to 
accomplish such financing and upon such conditions, as he or she deems 
appropriate, agree to forbear the exercise of the right to revert title 
for so long as the lien of the mortgage or other encumbrance remains 
effective.
    (d) Assurances from government agencies. In the case of any 
application from any department, agency or office of any State or local 
government for Federal financial assistance for any specified purpose, 
the assurance required by this section is to extend to any other 
department, agency, or office of the same governmental unit if the 
policies of such other department, agency, or office will substantially 
affect the project for which Federal financial assistance is requested. 
That requirement may be waived by the responsible Department official if 
the applicant establishes, to the satisfaction of the responsible 
Department official, that the practices in other agencies or parts of 
programs of the governmental unit will in no way affect:
    (1) Its practices in the program for which Federal financial 
assistance is sought;
    (2) The beneficiaries of or participants in or persons affected by 
such program; or
    (3) Full compliance with the subpart as respects such program.
    (e) Assurance from academic and other institutions. (1) In the case 
of any application for Federal financial assistance for any purpose to 
an academic institution, the assurance required by this section is to 
extend to admission practices and to all other practices relating to the 
treatment of students.
    (2) The assurance required with respect to an academic institution, 
detention or correctional facility, or any other institution or 
facility, insofar as the assurance relates to the institution's 
practices with respect to admission or other treatment of individuals as 
students, patients, wards, inmates, persons subject to control, or 
clients of the institution or facility or to the opportunity to 
participate in the provision of services, disposition, treatment, or 
benefits to such individuals, shall be applicable to the entire 
institution or facility.
    (f) Continuing State programs. Any State or State agency 
administering a program which receives continuing Federal financial 
assistance subject to this part shall, as a condition for the extension 
of such assistance:
    (1) Provide a statement that the program is (or, in the case of a 
new program, will be) conducted in compliance with applicable subparts; 
and
    (2) Provide for such methods of administration as are found by the 
Director or a designee to give reasonable assurance that the primary 
recipient and all other recipients of Federal financial assistance under 
such program will comply with this part.
    (g) Assistance for construction. Where the assistance is sought for 
the construction of a facility, or a part of a facility, the assurance 
is to extend to the entire facility. If a facility to be constructed is 
part of a larger system, the assurance is to extend to the larger 
system.
    (h) Pre-award review. Prior to and as a condition of approval, all 
applications for Federal financial assistance are to be reviewed by the 
appropriate Civil Rights Department official who is to make a written 
determination of the applicant's compliance with this part. The basis 
for such a determination is to be the submission of the assurance of 
compliance as specified in paragraph (a) and a review of data to be 
submitted by the applicant as specified by the Director. For purposes of 
this subsection, the appropriate departmental

[[Page 723]]

official at headquarters level is the Director, FAPD, Office of Equal 
Opportunity, and at the regional level it is to be the Civil Rights 
Officer delegated by the Director as having review authority for 
determining compliance with requirements of this part. Where a 
determination of compliance cannot be made from this data, DOE may 
require the applicant to submit necessary additional information and may 
take other steps necessary to make the determination of compliance. Such 
other steps may include, for example, communicating with local 
government officials or protected class organizations and field reviews. 
Any agreement to achieve voluntary compliance as a result of a preaward 
review shall be in writing. In the case of Title VI, the Director will 
notify the Assistant Attorney General of instances of probable 
noncompliance determined as the result of application reviews. The 
opportunity for a hearing as provided under Sec. 1040.113 is applicable 
to this section.



Sec. 1040.5  Designation of responsible employee.

    (a) Designation of responsible employee. Each recipient shall 
designate at least one employee to coordinate its efforts to carry outs 
its responsibilities under this part. The recipient shall publish the 
name, office address and telephone number of the employee or employees 
appointed under this paragraph.
    (b) A recipient shall display prominently, in reasonable numbers and 
places, posters which state that the recipient operates a program or 
programs subject to the nondiscrimination provisions of applicable 
subparts, summarize those requirements, note availability of information 
regarding this part from the recipient and DOE, and explain briefly the 
procedures for filing a complaint. Information on requirements of this 
part, complaint procedures and the rights of beneficiaries are to be 
included in handbooks, manuals, pamphlets, and other materials which are 
ordinarily distributed to the public to describe the federally assisted 
programs and the requirements for participation by recipients and 
beneficiaries. To the extent that recipients are required by law or 
regulation to publish or broadcast program information in the news 
media, the recipient shall insure that such publications and broadcasts 
state that the program in question is an equal opportunity program or 
otherwise indicate that discrimination in the program is prohibited by 
Federal law.
    (c) Where a significant number or proportion of the population 
eligible to be served or likely to be directly affected by a federally 
assisted program requires service or information in a language other 
than English in order to be informed of or to participate in the 
program, the recipient shall take reasonable steps, considering the 
scope of the program and size and concentration of such population, to 
provide information in appropriate languages (including braille) to such 
persons. This requirement applies to written material of the type which 
is ordinarily distributed to the public. The Department may require a 
recipient to take additional steps to carry out the intent of this 
subsection.



Sec. 1040.6  Notice.

    (a) A recipient shall take appropriate, initial and continuing steps 
to notify participants, beneficiaries, applicants and employees, 
including those with impaired vision or hearing, and unions or 
professional organizations holding collective bargaining or professional 
agreements with the recipient that it does not discriminate on the basis 
of race, color, national origin, sex (where sec. 16 or sec. 401 apply), 
handicap, or age. The notification is to state, where appropriate, that 
the recipient does not discriminate in admission or access to, and 
treatment of, or employment in its programs and activities and inform 
employees of their rights under this part. The notification is to 
include an identification of the responsible employee designated under 
Sec. 1040.5. A recipient shall make the initial notification required by 
this paragraph within 90 days of the effective date of this part. 
Methods of initial and continuing notification may include the posting 
of notices, publication in newspapers and magazines, placement of 
notices in recipients' publications, and distribution of memoranda or 
other written communications.

[[Page 724]]

    (b) If a recipient publishes or uses recruitment materials or 
publications containing general information that it makes available to 
participants, beneficiaries, applicants, or employees, it shall include 
in those materials or publications a statement of the policy described 
in paragraph (a) of this section. A recipient may meet the requirement 
of this paragraph either by including appropriate inserts in existing 
materials and publications or by revising and reprinting the materials 
and publications.
    (c) The provisions of Sec. 1040.5(c) to provide information in 
appropriate languages (including braille), apply to this section.



Sec. 1040.7  Remedial and affirmative action and self-evaluation.

    (a) Remedial action. If the Director finds that a recipient has 
discriminated against persons on the basis of race, color, national 
origin, sex, handicap, or age in any program or activity receiving 
Federal financial assistance, the recipient shall take remedial action 
as the Director considers necessary to overcome the effects of the 
discrimination.
    (b) Affirmative action. In the absence of a finding of 
discrimination on the basis of race, color, national origin, sex, 
handicap, or age in any program or activity, a recipient may continue a 
program that will encourage participation by all persons regardless of 
race, color, national origin, sex, handicap, or age.
    (c) Self-evaluation. Each recipient shall, within one year of the 
effective date of this part:
    (1) Whenever possible, evaluate, with the assistance of interested 
persons, including handicapped persons or organizations representing 
handicapped persons, its current policies and practices and the effects 
thereof that do not or may not meet the requirements of this part;
    (2) Modify any policies and practices which do not or may not meet 
the requirements of this part; and
    (3) Take appropriate remedial steps to eliminate the effects of 
discrimination which resulted or may have resulted from adherence to 
these questionable policies and practices.
    (d) Availability of self-evaluation and related materials. Recipient 
shall maintain on file, for at least three years following its 
completion, the evaluation required under paragraph (c) of this section, 
and shall provide to the Director, upon request, a description of any 
modifications made under paragraph (c)(2) of this section and of any 
remedial steps taken under paragraph (c)(3) of this section.



Sec. 1040.8  Effect of employment opportunity.

    Due to limited opportunities in the past, certain protected groups 
may be underrepresented in some occupations or professions. A 
recipient's obligation to comply with this part is not alleviated by use 
of statistical information which reflects limited opportunities in those 
occupations or professions.



 Subpart B--Title VI of the Civil Rights Act of 1964; Section 16 of the 
 Federal Energy Administration Act of 1974, as Amended; and Section 401 
                of the Energy Reorganization Act of 1974



Sec. 1040.11  Purpose and application.

    (a) The purpose of this subpart is to implement title VI of the 
Civil Rights Act of 1964 (title VI) and the pertinent regulations of DOE 
so that no person in the United States shall, on the ground of race, 
color, or national origin, be excluded from participation in, be denied 
the benefits of, or otherwise be subjected to discrimination under any 
program or activity receiving Federal financial assistance of the type 
subject to title VI. This subpart also implements section 16 of the 
Federal Energy Administration Act of 1974, as amended (section 16) and 
section 401 of the Energy Reorganization of 1974 (section 401) so that 
no person shall be excluded on the ground of sex from participation in, 
be denied the benefits of, or be subjected to discrimination under any 
program or activity receiving Federal financial assistance subject to 
section 16 or 401. The coverage of employment practices is explained in 
Sec. 1040.14.

[[Page 725]]

    (b) The application of this subpart is to delivery of services by 
and the covered employment practices of recipients and subrecipients 
administering, participating in, or substantially benefiting from any 
program or activity receiving Federal financial assistance under laws 
administered by DOE covered by title VI. In addition to services and 
employment practices, this subpart applies to any activities of 
recipients or subrecipients receiving Federal financial assistance 
subject to section 16 and section 401.



Sec. 1040.12  Definitions.

    (a) Covered employment means employment practices covered by title 
VI, section 16 and section 401.
    (1) Under title VI, such practices are those which:
    (i) Exist in a program where a primary objective of the Federal 
financial assistance is to provide employment; or
    (ii) Cause discrimination on the basis of race, color, or national 
origin with respect to beneficiaries or potential beneficiaries of the 
assisted program.
    (2) Under section 16 and section 401, such practices include, but 
are not limited to, employment practices covered by title VI when 
alleging discrimination on the basis of sex. All employment practices of 
a recipient or subrecipient of Federal financial assistance subject to 
section 16 and section 401 are covered employment practices.
    (b) Title VI refers to title VI of the Civil Rights Act of 1964, 42 
U.S.C. 2000d et seq. which prohibits discrimination on the ground of 
race, color or national origin in programs and activities receiving 
Federal financial assistance. The definitions set forth in Sec. 1040.3 
of subpart A to the extent not inconsistent with this subpart, are 
applicable to and incorporated into this subpart.



Sec. 1040.13  Discrimination prohibited.

    (a) General. No person in the United States shall be excluded on the 
ground of race, color, national origin, or sex (when covered by section 
16 or section 401), from participation in, be denied the benefits of, or 
be otherwise subjected to discrimination under any program to which this 
subpart applies.
    (b) Specific discriminatory action prohibited. A recipient under any 
program to which this subpart applies may not, directly or through 
contractual or other arrangements, on the ground of race, color, 
national origin or sex (when covered by section 16 or section 401):
    (1) Deny any individual any disposition, service, financial aid, or 
benefit provided under the program;
    (2) Provide any disposition, service, financial aid, or benefit to 
an individual which is different, or is provided in a different manner, 
from that provided to others under the program;
    (3) Subject an individual to segregation or separate treatment in 
any matter related to his/her receipt of any disposition, service, 
financial aid, or benefit under the program;
    (4) Restrict an individual in any way in the enjoyment of any 
advantage or privilege enjoyed by others receiving any disposition, 
service, financial aid, or benefit under the program;
    (5) Treat an individual differently from others in determining 
whether such individual satisfies any admission, enrollment, quota, 
eligibility, membership, or other requirement or condition which 
individuals must meet in order to be provided any disposition, service, 
financial aid, function or benefit provided under the program;
    (6) Deny an individual an opportunity to participate in the program 
through the provision of services or otherwise afford such individual an 
opportunity to do so which is different from that afforded others under 
the program (including the opportunity to participate in the program as 
an employee but only to the extent set forth in Sec. 1040.14 of this 
subpart); or
    (7) Deny a person the opportunity to participate as a member of a 
planning or advisory body which is an integral part of the program.
    (c) A recipient, in determining the type of Federal financial 
assistance (i.e., disposition, services, financial aid, benefits, or 
facilities) which will be provided under any program, or the class of 
individuals to whom, or the situations in which the assistance will be 
provided, may not, directly or through contractual or other 
arrangements,

[[Page 726]]

utilize criteria or methods of administration which have the effect of 
subjecting individuals to discrimination because of their race, color, 
national origin, or sex (when covered by section 16 and section 401) or 
have the effect of defeating or substantially impairing accomplishment 
of the program objectives with respect to individuals of a particular 
race, color, national origin, or sex (when covered by section 16 or 
section 401).
    (d) In determining the site or location of facilities, a recipient 
or applicant may not make selections with the purpose or effect of 
excluding individuals from, denying them the benefits of, or subjecting 
them to discrimination because of race, color, national origin, or sex 
(when covered by section 16 or 401) or with the purpose or effect of 
defeating or substantially impairing the accomplishment of the 
objectives of title VI or this subpart.
    (e) For the purpose of this section, the disposition, services, 
financial aid, or benefits provided under a program receiving Federal 
financial assistance include any portion of any program, function, or 
activity conducted by a recipient of Federal financial assistance in 
which the program, function, or activity is directly or indirectly 
improved, enhanced, enlarged, or benefited by the Federal financial 
assistance or by which the recipient makes use of any facility, 
equipment or property provided with the aid of Federal financial 
assistance.
    (f) The enumeration of specific forms of prohibited discrimination 
in this paragraph and in Sec. 1040.14 of this subpart does not limit the 
generality of the prohibition in paragraph (a) of this section.
    (g) Exemptions. Exclusion from programs for protected groups. An 
individual is not to be considered subjected to discrimination by reason 
of his/her exclusion from the benefits of a program limited to 
individuals of a particular race, color, national origin or sex 
different from his/hers when the exclusion is provided for or required 
by Federal law, for example, programs funded exclusively to serve on-
reservation Indians.



Sec. 1040.14  Covered employment.

    (a) Employment practices. (1) Whenever a primary objective of the 
Federal financial assistance to a program to which this subpart applies 
is to provide employment, a recipient of the assistance may not 
(directly or through contractual or other arrangements) subject any 
individual to discrimination on the grounds of race, color, national 
origin, or sex (when covered by section 16 and section 401) in its 
employment practices under the program (including recruitment or 
recruitment advertising, employment, layoff, or termination, upgrading, 
demotion or transfer, training, participation in upward mobility 
programs, rates of pay or other forms of compensation, and use of 
facilities). This prohibition also applies to programs where the primary 
objective of the Federal financial assistance is:
    (i) To assist individuals through employment to meet expenses 
incident to the commencement or continuation of their education or 
training;
    (ii) To provide work experience which contributes to the education 
or training of the individuals involved;
    (iii) To reduce the unemployment of individuals or to help them 
through employment to meet subsistence needs; or
    (iv) To provide employment to individuals who, because of handicaps, 
cannot be readily absorbed in the competitive labor market. The 
requirements applicable to construction under any such program are to be 
those specified in or under part III of Executive Order 11246, as 
amended, or any Executive Order which supersedes it.
    (2) In regard to Federal financial assistance which does not have 
provision of employment as a primary objective, the provisions of 
paragraph (a)(1) of this section apply to the employment practices of 
the recipient if discrimination on the ground of race, color, national 
origin, or sex (when covered by section 16 or section 401) in such 
employment practices tends to exclude persons from participation in, 
deny them the benefits of, or subject them to discrimination under the 
program receiving Federal financial assistance. In any such case, the 
provisions of paragraph (a)(1) of this section apply to

[[Page 727]]

the extent necessary to assure equality of opportunity to and 
nondiscriminatory treatment of beneficiaries.
    (3) Paragraph (a)(1) also applies to covered employment as defined 
in Sec. 1040.12(a)(2).
    (b) Enforcement of title VI compliance with respect to covered 
employment practices is not to be superseded by State or local merit 
systems relating to the employment practices of the same recipient.



   Subpart C--Nondiscrimination on the Basis of Sex--Title IX of the 
                Education Amendments of 1972, as Amended



Sec. 1040.21  Purpose.

    The purpose of this subpart is to implement title IX of the 
Education Amendments of 1972, Pub. L. 92-318, as amended by Pub. L. 93-
568, and Pub. L. 94-482, which is designed to eliminate (with certain 
exceptions) discrimination on the basis of sex in any education program 
or activity receiving Federal financial assistance, whether or not the 
program or activity is offered or sponsored by an educational 
institution as defined in this subpart.



Sec. 1040.22  Application.

    Except as provided in Secs. 1040.25, 1040.26, and 1040.27, this 
subpart applies to every recipient and to each education program or 
activity operated by the recipient which receives or benefits from 
Federal financial assistance.



Sec. 1040.23  Definitions.

    (a) Title IX means title IX of the Education Amendments of 1972, 
Pub. L. 92-318, as amended by sec. 3 of Pub. L. 93-568, 88 Stat. 1855, 
(except secs. 904 and 906 of the Amendments), 20 U.S.C. 1681, 1682, 
1683, 1685, and 1686.
    (b) Educational Institution means a local educational agency 
(L.E.A.) as defined by section 801(f) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 881), a pre-school, a private 
elementary or secondary school, or an applicant or recipient of the type 
defined by paragraphs (c), (d), (e), or (f) of this section.
    (c) Institution of graduate higher education means an institution 
which:
    (1) Offers academic study beyond the bachelor of arts or bachelor of 
science degree, whether or not leading to a certificate of any higher 
degree in the liberal arts and sciences; or
    (2) Awards any degree in a professional field beyond the first 
professional degree (regardless of whether the first professional degree 
in the field is awarded by an institution of undergraduate higher 
education or professional education); or
    (3) Awards no degree and offers no further academic study, but 
operates ordinarily for the purpose of facilitating research by persons 
who have received the highest graduate degree in any field of study.
    (d) Institution of undergraduate higher education means:
    (1) An institution offering at least two, but less than four years 
of college level study beyond the high school level leading to a diploma 
or an associate degree or wholly or principally creditable toward a 
baccalaureate degree; or
    (2) An institution offering academic study leading to a 
baccalaureate degree; or
    (3) An agency or body which certifies credentials or offers degrees, 
but which may or may not offer academic study.
    (e) Institution of professional education means an institution 
(except any institution of undergraduate higher education) which offers 
a program of academic study that leads to a first professional degree in 
a field for which there is a national specialized accrediting agency 
recognized by the United States Commissioner of Education.
    (f) Institution of vocational education means a school or 
institution (except an institution of professional, graduate, or 
undergraduate higher education) which has as its primary purpose 
preparation of students to pursue a technical, skilled, or semi-skilled 
occupation or trade, or to pursue study in a technical field, whether or 
not the school or institution offers certificates, diplomas, or degrees 
and whether or not it offers full time study.
    (g) Administratively separate unit means a school, department, or 
college of an educational institution (other

[[Page 728]]

than a local educational agency), admission to which is independent of 
admission to any other component of the institution.
    (h) Admission means selection for part-time, full-time, special, 
associate, transfer, exchange, or any other enrollment, membership, or 
matriculation in or at an education program or activity operated by a 
recipient.
    (i) Student means a person who has gained admission.
    (j) Transition plan means a plan subject to the approval of the 
United States Commissioner of Education under sec. 901(a)(2) of the 
Education Amendments of 1972, under which an educational institution 
operates in making the transition from being an educational institution 
which admits only students of one sex to being one which admits students 
of both sexes without discrimination. The definitions set forth in 
Sec. 1040.3 of subpart A of this part, to the extent not inconsistent 
with this subpart, are made applicable to and incorporated into this 
subpart.



Sec. 1040.24  Effects of other requirements.

    (a) Effect of other Federal provisions. The obligations imposed by 
this subpart are independent of, and do not alter, obligations not to 
discriminate on the basis of sex imposed by title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e et seq.); Executive Order 11246, as 
amended; Sec. 799A and Sec. 845 of the Public Health Service Act (42 
U.S.C. 295h-9 and 298b-2); the Equal Pay Act (29 U.S.C. 206 and 206(d); 
and any other Act of Congress or Federal regulation.
    (b) Effect of state or local law or other requirements. The 
obligation to comply with this subpart is not obviated or alleviated by 
any State or local law or other requirement which would render any 
applicant or student ineligible, or limit the eligibility of any 
applicant or student, on the basis of sex, to practice any occupation or 
profession.
    (c) Effect of rules or regulations of private organizations. The 
obligation to comply with this subpart is not obviated or alleviated by 
any rule or regulation of any organization, club, athletic or other 
league or association, which would render any applicant or student 
ineligible to participate or limit the eligibility or participation of 
any applicant or student, on the basis of sex, in any education program 
or activity operated by a recipient and which receives or benefits from 
Federal financial assistance.



Sec. 1040.25  Educational institutions controlled by religious organizations.

    (a) Application. This subpart does not apply to an educational 
institution which is controlled by a religious organization to the 
extent that application of this subpart would not be consistent with the 
religious tenets of such an organization.
    (b) Exemption. An educational institution which wishes to claim the 
exemption set forth in paragraph (a) of this section is to do so by 
submitting, in writing, to the Director a statement by the highest 
ranking official of the institution identifying the provisions of this 
subpart which conflict with a specific tenet of the religious 
organization.



Sec. 1040.26  Military and merchant marine educational institutions.

    This subpart does not apply to an educational institution whose 
primary purpose is the training of individuals for military service of 
the United States or for the merchant marine.



Sec. 1040.27  Membership practices of certain organizations.

    (a) Social fraternities and sororities. This subpart does not apply 
to the membership practices of social fraternities and sororities which 
are exempt from taxation under Sec. 501(a) of the Internal Revenue Code 
of 1954, the active membership of which consists primarily of students 
in attendance at institutions of higher education.
    (b) Y.M.C.A., Y.W.C.A., Girl Scouts, Boy Scouts, and Camp Fire 
Girls. This subpart does not apply to the membership practices of the 
Young Men's Christian Association, the Young Women's Christian 
Association, the Girl Scouts, the Boy Scouts, and the Camp Fire Girls.
    (c) Voluntary youth service organizations. This subpart does not 
apply to

[[Page 729]]

the membership practices of voluntary youth service organizations which 
are exempt from taxation under Sec. 501(a) of the Internal Revenue Code 
of 1954, the membership of which has been traditionally limited to 
members of one sex and principally to persons of less than nineteen 
years of age.



Sec. 1040.28  Admissions.

    (a) Admission to education institutions prior to June 24, 1973 are 
not covered by this subpart.
    (b) Administratively separate units. For the purposes, only, of this 
section, Secs. 1040.28 and 1040.29, each administratively separate unit 
shall be deemed to be an educational institution.
    (c) Application of Secs. 1040.31 through 1040.33. Except as provided 
in paragraphs (c) and (d) of this section, Secs. 1040.31 through 1040.33 
apply to each recipient. A recipient to which Secs. 1040.31 through 
1040.33 apply shall not discriminate on the basis of sex in admission or 
recruitment in violation of those sections.
    (d) Educational institutions. Except as provided in paragraph (e) of 
this section as to recipients which are educational institutions, 
Secs. 1040.31 through 1040.33 apply only to institutions of vocational 
education, professional education, graduate higher education, and public 
institutions of undergraduate higher education.
    (e) Public institutions of undergraduate higher education. Sections 
1040.31 through 1040.33 do not apply to any public institutions of 
undergraduate higher education which, traditionally and continually from 
its establishment, has had a policy of admitting only students of one 
sex.



Sec. 1040.29  Educational institutions eligible to submit transition plans.

    (a) Application. This section applies to each educational 
institution to which Secs. 1040.31 through 1040.33 apply which:
    (1) Admitted only students of one sex as regular students as of June 
23, 1972; or
    (2) Admitted only students of one sex as regular students as of June 
23, 1965, but after that admitted as regular students individuals of the 
sex not admitted prior to June 23, 1965.
    (b) Provision for transition plans. An educational institution to 
which this section applies is not to discriminate on the basis of sex in 
admission or recruitment in violation of Secs. 1040.31 through 1040.33 
unless it is carrying out a transition plan approved by the United 
States Commissioner of Education as described in Sec. 1040.30, which 
plan provides for the elimination of discrimination by the earliest 
practicable date but in no event later than 90 days following final 
publication of this regulation.



Sec. 1040.30  Transition plans.

    (a) Submission of plans. Any institution to which Sec. 1040.28 
applies and which is composed of more than one administratively separate 
unit may submit either a single transition plan applicable to all units 
or separate transition plans applicable to each unit.
    (b) Content of plans. In order to be approved by the United States 
Commissioner of Education, a transition plan is to:
    (1) State the name, address, and Federal Interagency Committee on 
Education (FICE) Code of the educational institution submitting the 
plan, the administratively separate units to which the plan is 
applicable, the name, address, and telephone number of the person to 
whom questions concerning the plan may be addressed. The person who 
submits the plan shall be the chief administrator or president of the 
institution, or another individual legally authorized to bind the 
institution to all actions set forth in the plan.
    (2) State whether the educational institution or administratively 
separate unit admits students of both sexes as regular students and, if 
so, when it began to do so.
    (3) Identify and describe, with respect to the educational 
institution or administratively separate unit, any obstacles to 
admitting students without discrimination on the basis of sex.
    (4) Describe in detail the steps necessary to eliminate as soon as 
practicable each obstacle indentified and indicate the schedule for 
taking these steps and the individual responsible for their 
implementation.
    (5) Include estimates of the number of students, by sex, expected to 
apply

[[Page 730]]

for, be admitted to, and enter each class during the period covered by 
the plan.
    (c) Nondiscrimination. No policy or practice of a recipient to which 
Sec. 1040.29 applies is to result in treatment of applicants to, or 
students of, the recipient in violation of Secs. 1040.31 through 1040.33 
unless such treatment is necessitated by an obstacle identified in 
paragraph (b)(3) of this section and a schedule for eliminating that 
obstacle has been provided as required by paragraph (b)(4) of this 
section.
    (d) Effects of past exclusion. To overcome the effects of past 
exclusion of students on the basis of sex, each educational institution 
to which Sec. 1040.29 applies is to include in its transition plan and 
implement specific steps designed to encourage individuals of the 
previously excluded sex to apply for admission to the institution. The 
steps are to include instituting recruitment programs which emphasize 
the institution's commitment to enrolling students of the sex previously 
excluded.



Sec. 1040.31  Discrimination on the basis of sex in admission and recruitment prohibited: admission.

    (a) General. No person shall, on the basis of sex, be denied 
admission or be subjected to discrimination in admission by any 
recipient to which Secs. 1040.31, 1040.32, and 1040.33 apply, except as 
provided in Secs. 1040.29 and 1040.30.
    (b) Specific prohibitions. (1) In determining whether a person 
satisfies any policy or criterion for admission, or in making any offer 
of admission, a recipient to which Secs. 1040.31, 1040.32, and 1040.33 
apply shall not:
    (i) Give preference to one person over another on the basis of sex, 
by ranking applicants separately on that basis, or otherwise;
    (ii) Apply numerical limitations upon the number or proportion of 
persons of either sex who may be admitted; or
    (iii) Deny an equal opportunity for admission on the basis of sex.
    (2) A recipient shall not administer or operate any test or other 
criterion for admission which has a disproportionate adverse effect on 
persons on the basis of sex unless the use of the test or criterion is 
shown to predict validly success in the education program or activity 
and alternative tests or criteria which do not have a disproportionate 
adverse affect are shown to be unavailable.
    (c) Prohibitions relating to marital or parental status. In 
determining whether a person satisfies any policy or criterion for 
admission, or in making any offer of admission, a recipient to which 
Secs. 1040.31, 1040.32, and 1040.33 apply:
    (1) Shall not apply any rule concerning the actual or potential 
parental, family, or marital status of a student or applicant which 
treats persons differently on the basis of sex;
    (2) Shall not discriminate against or exclude any persons on the 
basis of pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom, or establish or follow any rule or practice which 
discriminates or excludes;
    (3) Shall treat disabilities related to pregnancy, childbirth, 
termination of pregnancy, or recovery therefrom in the same manner and 
under the same policies as any other temporary disability or physical 
condition; or
    (4) Shall not make pre-admission inquiry as to the marital status of 
an applicant for admission, including whether such applicant is ``Miss'' 
or ``Mrs.'' A recipient may make pre-admission inquiry as to the sex of 
an applicant for admission but only if the inquiry is made equally of 
applicants of both sexes and if the results of the inquiry are not used 
in connection with discrimination prohibited by this subpart.



Sec. 1040.32  Preference in admission.

    A recipient to which Secs. 1040.31, 1040.32, and 1040.33 apply shall 
not give preference to applicants for admission on the basis of 
attendance at any educational institution or other school or entity 
which admits as students or predominantly members of one sex if the 
giving of such preference has the effect of discriminating on the basis 
of sex in violation of Secs. 1040.31, 1040.32, and 1040.33.



Sec. 1040.33  Recruitment.

    (a) Nondiscriminatory recruitment. A recipient to which 
Secs. 1040.31, 1040.32, and 1040.33 apply shall not discriminate on the 
basis of sex in the recruitment and admission of students. A recipient 
may

[[Page 731]]

be required to undertake additional recruitment efforts for one sex as 
remedial action under Sec. 1040.7(a) and may choose to undertake these 
efforts as affirmative action under Sec. 1040.7(b).
    (b) Recruitment at certain institutions. A recipient to which 
Secs. 1040.31, 1040.32, and 1040.33 apply shall not recruit primarily or 
exclusively at educational institutions, schools, or entities which 
admit as students only or predominantly members of one sex, if these 
actions have the effect of discriminating on the basis of sex in 
violation of Secs. 1040.31, 1040.32, and 1040.33.



Sec. 1040.34  Education programs and activities.

    (a) General. Except as provided elsewhere in this subpart, no person 
shall, on the basis of sex, be excluded from participation in, be denied 
the benefits of, or be subjected to discrimination under any academic, 
extracurricular, research, occupational training, or other education 
program or activity operated by a recipient which receives or benefits 
from Federal financial assistance. This subpart does not apply to 
actions of a recipient in connection with admission of its students to 
an education program or activity of--
    (1) A recipient to which Secs. 1040.31, 1040.32, and 1040.33 do not 
apply; or
    (2) An entity, not a recipient, to which Secs. 1040.31, 1040.32, and 
1040.33 would not apply if the entity were a recipient.
    (b) Specific prohibitions. Except as provided in Secs. 1040.34 
through 1040.45, in providing any aid, benefit, or service to a student, 
a recipient shall not, on the basis of sex:
    (1) Treat one person differently from another in determining whether 
the person satisfies any requirement or condition for the provision of 
the aid, benefit, or service;
    (2) Provide different aid, benefits, or services or provide aid, 
benefits, or services in a different manner;
    (3) Deny any person any such aid, benefit, or service;
    (4) Subject any person to separate or different rules of behavior, 
sanctions, or other treatment;
    (5) Discriminate against any person in the application of any rules 
of appearance;
    (6) Apply any rule concerning the domicile or residence of a student 
or applicant, including eligibility for in-state fees and tuition;
    (7) Aid or perpetuate discrimination against any person by providing 
significant assistance to any agency, organization, or person which 
discriminates on the basis of sex in providing any aid, benefit or 
service to students or employees;
    (8) Otherwise limit any person in the enjoyment of any right, 
privilege, advantage, or opportunity.
    (c) Assistance administered by a recipient educational institution 
to study at a foreign institution. A recipient educational institution 
may administer or assist in the administration of scholarships, 
fellowships, or other awards established by foreign or domestic wills, 
trusts, or similar legal instruments, or by acts of foreign governments 
and restricted to members of one sex, which are designed to provide 
opportunities to study abroad, and which are awarded to students who are 
already matriculating at or who are graduates of the recipient 
institution. A recipient educational institution which administers or 
assists in the administration of such scholarships, fellowships, or 
other awards which are restricted to members of one sex must provide, or 
otherwise make available, reasonable opportunities for similar studies 
for members of the other sex. Such opportunities may be derived from 
either domestic or foreign sources.
    (d) Programs not operated by recipient. (1) This paragraph applies 
to recipients which require participation by any applicant or student in 
any education program or activity not operated wholly by the recipient, 
or which facilitates, permits, or considers participation in educational 
consortia and cooperative employment and student-teaching assignments.
    (2) The recipient:
    (i) Shall develop and implement a procedure designed to assure 
itself that the operator or sponsor of such other education program or 
activity takes no action affecting any applicant, student, or employee 
of the recipient which this subpart would prohibit the recipient from 
taking; and

[[Page 732]]

    (ii) Shall not facilitate, require, permit, or consider 
participation if such action occurs.



Sec. 1040.35  Housing.

    (a) General. A recipient shall not, on the basis of sex, apply 
different rules or regulations, impose different fees or requirements, 
or offer different services or benefits related to housing, except as 
provided in this section (including housing provided only to married 
students).
    (b) Housing provided by recipient. (1) A recipient may provide 
separate housing on the basis of sex.
    (2) Housing provided by a recipient to students of one sex, when 
compared to that provided to students of the other sex, shall be as a 
whole:
    (i) Proportionate in quantity to the number of students of that sex 
applying for such housing; and
    (ii) Comparable in quality and cost to the student.
    (c) Other housing. (1) A recipient shall not, on the basis of sex, 
administer different policies or practices concerning occupancy by its 
students of housing other than provided by the recipient.
    (2) A recipient which, through solicitation, listing, approval of 
housing, or otherwise, assists any agency, organization, or person in 
making housing available to any of its students, shall take reasonable 
action as may be necessary to assure itself that housing as is provided 
to students of one sex, when compared to that provided to students of 
the other sex, is as a whole:
    (i) Proportionate in quantity; and
    (ii) Comparable in quality and cost to the student. A recipient may 
render this assistance to any agency, organization, or person which 
provides all or part of such housing to students only of one sex.



Sec. 1040.36  Comparable facilities.

    A recipient may provide separate toilet, locker room, and shower 
facilities on the basis of sex, but the facilities provided for students 
of one sex are to be comparable to the facilities provided for students 
of the other sex.



Sec. 1040.37  Access to course offerings.

    A recipient shall not provide any course or otherwise carry out any 
of its education program or activity separately on the basis of sex, or 
require or refuse participation by any of its students on that basis, 
including health, physical education, industrial, business, vocational, 
technical, home economics, music, and adult education courses.
    (a) With respect to classes and activities in physical education at 
the elementary school level, the recipient shall comply fully with this 
section as expeditiously as possible but in no event later than one year 
from the effective date of this regulation.
    (b) This section does not prohibit grouping of students in physical 
education classes and activities by ability as asessed by objective 
standards of individual performance developed and applied without regard 
to sex.
    (c) This section does not prohibit separation of students by sex 
within physical education classes or activities during participation in 
wrestling, boxing, rugby, ice hockey, football, basketball, and other 
sports, the purpose or major activity of which involves bodily contact.
    (d) Where use of a single standard of measuring skill or progress in 
a physical education class has an adverse effect on members of one sex, 
the recipient shall use appropriate standards which do not have that 
effect.
    (e) Portions of classes in elementary and secondary schools which 
deal exclusively with human sexuality may be conducted in separate 
sessions for boys and girls.
    (f) Recipients may make requirements based on vocal range or quality 
which may result in a chorus or choruses of one or predominantly one 
sex.



Sec. 1040.38  Access to schools operated by LEAs.

    A recipient which is a local educational agency shall not, on the 
basis of sex, exclude any person from admission to:
    (a) Any institution of vocational education operated by the 
recipient; or
    (b) Any other school or educational unit operated by the recipient, 
unless the recipient otherwise makes available to a person, under the 
same policies and criteria of admission, courses, services, and 
facilities comparable to

[[Page 733]]

each course, service, and facility offered in or through the schools.



Sec. 1040.39  Counseling and use of appraisal and counseling materials.

    (a) Counseling. A recipient shall not discriminate against any 
person on the basis of sex in counseling or guidance of students or 
applicants for admission.
    (b) Use of appraisal and counseling materials. A recipient which 
uses testing or other materials for appraising or counseling students 
shall not use different materials for students on the basis of their sex 
or use materials which permit or require different treatment of students 
on the basis of sex unless the different materials cover the same 
occupations and interest areas and use of the different materials is 
shown to be essential to eliminate sex bias. Recipients shall develop 
and use internal procedures for ensuring that materials do not 
discriminate on the basis of sex. Where the use of a counseling test or 
other instrument results in a substantially disproportionate number of 
members of one sex in any particular course of study or classification, 
the recipient shall take action to assure itself that the disproportion 
is not the result of discrimination in the instrument or its 
application.
    (c) Disproportion in classes. Where a recipient finds that a 
particular class contains a substantially disproportionate number of 
individuals of one sex, the recipient shall take action to assure itself 
that the disproportion is not the result of discrimination on the basis 
of sex in counseling, appraisal materials, or by counselors.



Sec. 1040.40  Financial assistance.

    (a) General. Except as provided in paragraphs (b), (c), and (d) of 
this section, in providing financial assistance to any of its students, 
a recipient shall not:
    (1) On the basis of sex, provide different amounts or types of 
assistance, limit eligibility for assistance which is of any particular 
type or source, apply different criteria, or otherwise discriminate;
    (2) Through solicitation, listing, approval, provision of facilities 
or other services, assist any foundation, trust, agency, organization, 
or person which provides assistance to any of the recipient's students 
in a manner which discriminates on the basis of sex; or
    (3) Apply any rule or assist in application of any rule concerning 
eligibility for assistance which treats persons of one sex different 
from persons of the other sex with regard to marital or parental status.
    (b) Financial aid established by certain legal instruments. (1) A 
recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established pursuant to domestic or foreign wills, trusts, bequests, or 
similar legal instruments or by acts of a foreign government which 
require that awards be made to members of a particular sex specified in 
those documents provided that the overall effect of the award of such 
sex-restricted scholarships, fellowships and other forms of financial 
assistance does not discriminate on the basis of sex.
    (2) To ensure nondiscriminatory awards of assistance as required in 
paragraph (b)(1) of this section, recipients shall develop and use 
procedures under which:
    (i) Students are selected for award of financial assistance on the 
basis of nondiscriminatory criteria and not on the basis of availability 
of funds restricted to members of a particular sex;
    (ii) An appropriate sex-restricted scholarship, fellowship, or other 
form of financial assistance is allocated to each student selected under 
paragraph (b)(2)(i) of this section; and
    (iii) No student is denied the award for which he or she was 
selected under paragraph (b)(a)(i) of this section because of the 
absence of a scholarship, fellowship, or other form of financial 
assistance designated for a member of that student's sex.
    (c) Athletic scholarships. (1) To the extent that a recipient awards 
athletic scholarships or grants-in-aid, it shall provide reasonable 
opportunities for the awards for members of each sex in proportion to 
the number of students of each sex participating in interscholastic or 
intercollegiate athletics.
    (2) Separate athletic scholarships or grants-in-aid for members of 
each sex may be provided as part of separate athletic teams of members 
of each sex

[[Page 734]]

to the extent consistent with this section and Sec. 1040.44 of this 
subpart.



Sec. 1040.41  Employment assistance to students.

    (a) Assistance by recipient in making available outside employment. 
A recipient which assists any agency, organization or person in making 
employment available to any of its students--
    (1) Shall assure itself that the employment is made available 
without discrimination on the basis of sex; and
    (2) Shall not render services to any agency, organization, or person 
which discriminates on the basis of sex in its employment practices.
    (b) Employment of students by recipients. A recipient which employs 
any of its students shall assure itself that all employment is made 
available without discrimination on the basis of sex.



Sec. 1040.42  Health and insurance benefits and services.

    In providing a medical, hospital, accident, or life insurance 
benefit, service, policy, or plan to any of its students, a recipient 
shall not discriminate on the basis of sex. This section is not to 
prohibit a recipient from providing any benefit or service which may be 
used by a different proportion of students of one sex than of the other, 
including family planning services. However, any recipient which 
provides full coverage health service shall provide gynecological care.



Sec. 1040.43  Marital or parental status.

    (a) Status generally. A recipient shall not apply any rule 
concerning a student's actual or potential parental, family, or marital 
status which treats students differently on the basis of sex.
    (b) Pregnancy and related conditions. (1) A recipient shall not 
discriminate against any student, or exclude any student from its 
education program or activity, including any class or extra-curricular 
activity, on the basis of the student's pregnancy, childbirth, false 
pregnancy, termination of pregnancy, or recovery therefrom unless the 
student requests voluntarily to participate in a separate portion of the 
program or activity of the recipient.
    (2) A recipient may require the student to obtain the certification 
of a physician that the student is physically and emotionally able to 
continue participation in the normal education program or activity so 
long as the certification is required of all students for other physical 
or emotional conditions requiring the attention of a physician.
    (3) A recipient which operates a portion of its educational program 
or activity separately for pregnant students, admittance to which is 
completely voluntary on the part of the student as provided in paragraph 
(b)(1) of this section, shall ensure that the instructional program in 
the separate program is comparable to that offered to non-pregnant 
students.
    (4) A recipient shall treat pregnancy, childbirth, false pregnancy, 
termination of pregnancy and recovery therefrom in the same manner and 
under the same policies as any other temporary disability with respect 
to any medical or hospital benefit, service, plan, or policy which the 
recipient administers, operates, offers or participates in with respect 
to students admitted to the recipient's educational program or activity.
    (5) In the case of a recipient which does not maintain a leave 
policy for its students, or in the case of a student who does not 
otherwise qualify for leave under such a policy, a recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy and 
recovery therefrom as a justification for a leave of absence for a 
period of time considered medically necessary by the student's 
physician, at the conclusion of which the student shall be reinstated to 
the status which she held when the leave began.



Sec. 1040.44  Athletics.

    (a) General. No person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, be treated differently from 
another person or otherwise be discriminated against in any 
interscholastic, intercollegiate, club, or intramural athletics offered 
by the recipient, and no recipient shall provide any athletics 
separately on the basis of sex.
    (b) Separate teams. Notwithstanding the requirements of paragraph 
(a) of this section, a recipient may operate or sponsor separate teams 
for members of

[[Page 735]]

each sex where selection for teams is based upon competitive skill or 
the activity involved is a contact sport. However, where a recipient 
operates or sponsors a team in a particular sport for members of one sex 
but operates or sponsors no such team for members of the other sex, and 
athletic opportunities for members of that sex have previously been 
limited, members of the excluded sex shall be allowed to try-out for the 
team offered unless the sport involved is a contact sport. For the 
purposes of this subpart, contact sports include boxing, wrestling, 
rugby, ice hockey, football, basketball and other sports, the purpose of 
major activity of which involves bodily contact.
    (c) Equal opportunity. A recipient which operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics shall 
provide equal athletic opportunity for members of both sexes. In 
determining whether equal opportunities are available, the Director, 
FAPD, is to consider, among other factors:
    (1) Whether the selection of sports and levels of competition 
effectively accommodate the interests and abilities of members of both 
sexes;
    (2) The provision of equipment and supplies;
    (3) Scheduling of games and practice time;
    (4) Travel and per diem allowance;
    (5) Opportunity to receive coaching and academic tutoring;
    (6) Assignment and compensation of coaches and tutors;
    (7) Provision of locker rooms, practice and competitive facilities;
    (8) Provision of medical and training facilities and services;
    (9) Provision of housing and dining facilities and services; and
    (10) Publicity.

Unequal aggregate expenditures for members of each sex or unequal 
expenditures for male and female teams, if a recipient operates or 
sponsors separate teams, will not constitute noncompliance with this 
section, but the Director, FAPD, may consider the failure to provide 
necessary funds for teams for one sex in assessing equality of 
opportunity for members of each sex.
    (d) Adjustment period. A recipient which operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
elementary, secondary or post-secondary school level shall comply fully 
with this section as expeditiously as possible, but in no event later 
than one year from the effective date of this regulation.



Sec. 1040.45  Textbooks and curricular material.

    Nothing in this regulation is to be interpreted as requiring, 
prohibiting, or abridging, in any way, the use of particular textbooks 
or curricular materials.



Sec. 1040.46  Procedures.

    The procedural provisions applicable to Title VI of the Civil Rights 
Act of 1964 are adopted and incorporated in this section by reference. 
These procedures may be found in subparts G and H of this part.

                          Employment Practices



Sec. 1040.47  Employment.

    (a) General. (1) No person shall on the basis of sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination in recruitment, employment consideration, or selection, 
whether for full-time or part-time employment, under any educational 
program or activity operated by a recipient which receives or benefits 
from Federal financial assistance.
    (2) A recipient shall make all employment decisions in any education 
program or activity operated by such recipient in a nondiscriminatory 
manner and shall not limit, segregate, or classify applicants or 
employees in any way which could adversely affect any applicant's or 
employee's employment opportunities or status because of sex.
    (3) A recipient shall not enter into any contractual or other 
relationship which directly or indirectly has the effect of subjecting 
employees or students to discrimination prohibited by this subpart, 
including relationships with employment and referral agencies, with 
labor unions, and with organizations providing or administering fringe 
benefits to employees of the recipient.

[[Page 736]]

    (4) A recipient shall not grant preferences to applicants for 
employment on the basis of attendance at any education institution or 
entity which admits as students only or predominantly members of one 
sex, if giving of such preferences has the effect of discriminating on 
the basis of sex in violation of this part.
    (b) Application. The provisions of this subpart appply to:
    (1) Recruitment, advertising, and the process of application for 
employment;
    (2) Hiring, upgrading, promotion, consideration for an award of 
tenure, demotion, transfer, layoff, termination, application of nepotism 
policies, right of return from layoff, and rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, classifications and structure, including 
position descriptions, lines of progression, and seniority lists;
    (5) The terms of any collective bargaining agreement;
    (6) Granting and return from leaves of absence, leave for pregnancy, 
childbirth, false pregnancy, termination of pregnancy, leave for persons 
of either sex to care for children or dependents, or any other leave;
    (7) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (8) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, selection for tuition assistance, selection for sabbaticals 
and leaves of absence to pursue training;
    (9) Employer-sponsored activities, including social or recreational 
programs; and
    (10) Any other term, condition, or privilege of employment.



Sec. 1040.48  Employment criteria.

    A recipient shall not administer or operate any text or other 
criterion for any employment opportunity which has a disproportionately 
adverse effect on persons on the basis of sex unless:
    (a) Use of such test or other criterion is shown to predict validly 
successful performance in the position in question; and
    (b) Alternative tests or criteria for such purpose, which do not 
have such disproportionately adverse effect, are shown to be 
unavailable.



Sec. 1040.49  Recruitment.

    (a) Nondiscriminatory recruitment and hiring. A recipient shall not 
discriminate on the basis of sex in the recruitment and hiring of 
employees. Where a recipient has been found to be presently 
discriminating on the basis of sex in the recruitment or hiring of 
employees, or has been found to have in the past so discriminated, the 
recipient shall recruit members of the sex so discriminated against so 
as to overcome the effects of such past or present discrimination.
    (b) Recruitment patterns. A recipient shall not recruit primarily or 
exclusively at entities which furnish as applicants only or 
predominantly members of one sex if such actions have the effect of 
discriminating on the basis of sex in violation of this subpart.



Sec. 1040.50  Compensation.

    A recipient shall not make or enforce any policy or practice which, 
on the basis of sex:
    (a) Makes distinctions in rates of pay or other compensation;
    (b) Results in the payment of wages to employees of one sex at a 
rate less than that paid to employees of the opposite sex for equal work 
on jobs, the performance of which requires equal skill, effort, and 
responsibility, and which are performed under similar working 
conditions.



Sec. 1040.51  Job classification and structure.

    A recipient shall not:
    (a) Classify a job as being for males or for females;
    (b) Maintain or establish separate lines of progression, seniority 
lists, career ladders, or tenure systems based on sex; or
    (c) Maintain or establish separate lines of progression, seniority 
systems, career ladders, or tenure systems for similar jobs, position 
descriptions, or job requirements which classify persons on the basis of 
sex, unless sex is a

[[Page 737]]

bona-fide occupational qualification for the positions in question as 
set forth in Sec. 1040.57.



Sec. 1040.52  Fringe benefits.

    (a) Fringe benefits defined. For purposes of this part, fringe 
benefits means: Any medical, hospital, accident, life insurance or 
retirement benefit, service, policy or plan, any profit-sharing or bonus 
plan, leave, and any other benefit or service for employment not subject 
to the provision of Sec. 1040.50.
    (b) Prohibitions. A recipient shall not:
    (1) Discriminate on the basis of sex with regard to making fringe 
benefits available to employees or make fringe benefits available to 
spouses, families, or dependents of employees differently upon the basis 
of the employee's sex;
    (2) Administer, operate, offer, or participate in a fringe benefit 
plan which does not provide either for equal periodic benefits for 
members of each sex, or for equal contributions to the plan by such 
recipient for members of each sex; or
    (3) Administer, operate, offer, or participate in a pension or 
retirement plan which establishes different optional or compulsory 
retirement ages based on sex or which otherwise discriminates in 
benefits on the basis of sex.



Sec. 1040.53  Marital or parental status.

    (a) General. A recipient shall not apply any policy or take any 
employment action:
    (1) Concerning the potential marital, parental, or family status of 
an employee or applicant for employment which treats persons differently 
on the basis of sex; or
    (2) Which is based upon whether an employee or applicant for 
employment is the head of household or principal wage earner in such 
employee's or applicant's family unit.
    (b) Pregnancy. A recipient shall not discriminate against or exclude 
from employment any employee or applicant for employment on the basis of 
pregnancy, childbirth, false pregnancy, termination of pregnancy, or 
recovery therefrom.
    (c) Pregnancy as a temporary disability. A recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy, 
recovery therefrom and any temporary disability resulting therefrom as 
any other temporary disability for all job related purposes, including 
commencement, duration and extensions of leave, payment of disability 
income, accrual of seniority and any other benefit or service, and 
reinstatement, and under any fringe benefit offered to employees by 
virtue of employment.
    (d) Pregnancy leave. In the case of a recipient which does not 
maintain a leave policy for its employees, or in the case of an employee 
with insufficient leave or accrued employment time to qualify for leave 
under such a policy, a recipient shall treat pregnancy, childbirth, 
false pregnancy, termination of pregnancy and recovery therefrom as a 
justification for a leave of absence without pay for a reasonable period 
of time. At the conclusion of the leave of absence, the employee shall 
be reinstated to the status which she held when the leave began or to a 
comparable position without decrease in rate of compensation or loss of 
promotional opportunities or any other right or privilege of employment.



Sec. 1040.54  Effect of State or local law or other requirements.

    (a) Prohibitory requirements. The obligation to comply with this 
subpart is not obviated or alleviated by the existence of any state or 
local law or other requirement which imposes prohibitions or limits upon 
employment of members of one sex which are not imposed upon members of 
the other sex.
    (b) Benefits. A recipient which provides any compensation, service, 
or benefit to members of one sex pursuant to a State or local law or 
other requirement shall provide the same compensation, service, or 
benefit to members of the other sex.



Sec. 1040.55  Advertising.

    A recipient shall not in any advertising related to employment 
indicate preference, limitation, specification, or discrimination based 
on sex unless sex is a bona-fide occupational qualification for the 
particular job in question.



Sec. 1040.56  Pre-employment inquiries.

    (a) Marital status. A recipient shall not make pre-employment 
inquiry as

[[Page 738]]

to the marital status of an applicant for employment, including whether 
such applicant is ``Miss or Mrs.''
    (b) Sex. A recipient may make pre-employment inquiry as to the sex 
of an applicant for employment, but only if such inquiry is made equally 
of such applicants of both sexes and if the results of such inquiry are 
not used in connection with discrimination prohibited by this part.



Sec. 1040.57  Sex as a bona-fide occupational qualification.

    A recipient may take action otherwise prohibited by this subpart 
provided it is shown that sex is a bona fide occupational qualification 
for that action, such that consideration of sex with regard to such 
action is essential to successful operation of the employment function 
concerned. A recipient shall not take action pursuant to this section 
which is based upon alleged comparative employment characteristics or 
stereotyped characterizations, but nothing contained in this section 
shall prevent a recipient from considering an employee's sex in relation 
to employment in a locker room or toilet facility used only by members 
of one sex.



 Subpart D--Nondiscrimination on the Basis of Handicap--Section 504 of 
               the Rehabilitation Act of 1973, as Amended

                           General Provisions



Sec. 1040.61  Purpose and application.

    (a) The purpose of this subpart is to implement sec. 504 of the 
Rehabilitation Act of 1973, which is designed to eliminate 
discrimination on the basis of handicap in any program or activity 
receiving Federal financial assistance.
    (b) This subpart applies to each recipient or subrecipient of 
Federal financial assistance from DOE and to each program or activity 
that receives or benefits from assistance.



Sec. 1040.62  Definitions.

    (a) Executive Order means Executive Order 11914, titled 
``Nondiscrimination With Respect to the Handicapped in Federally 
Assisted Programs'' issued on April 28, 1976.
    (b) Section 504 means sec. 504 of the Rehabilitation Act of 1973, 
Pub. L. 93-112, as amended by the Rehabilitation Act Amendments of 1974, 
Pub. L. 93-516, 29 U.S.C. 794.
    (c) Handicapped person means any person who has a physical or mental 
impairment which substantially limits one or more major life activities, 
has a record of such impairment, or is regarded as having such an 
impairment.
    (d) As used in paragraph (c) of this section, the phrase:
    (1) Physical or mental impairment means--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive, digestive, 
genito-urinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness and drug addiction and 
alcoholism, when current use of drugs and/or alcohol is not detrimental 
to or interferes with the employee's performance, nor constitutes a 
direct threat to property or safety of others.
    (2) Major life activities means functions such as caring for one's 
self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means:
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but that is treated

[[Page 739]]

by a recipient as constituting such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraphs (d)(1) (i) 
and (ii) of this section, but is treated by a recipient as having such 
an impairment.
    (e) Qualified handicapped person means:
    (1) With respect to employment, a handicapped person who, with 
reasonable accommodation, can perform the essential functions of the job 
in question;
    (2) With respect to public preschool, elementary, secondary, or 
adult education services, a handicapped person:
    (i) Of an age during which non-handicapped persons are provided such 
services;
    (ii) Of any age during which it is mandatory under state law to 
provide such services to handicapped persons; or
    (iii) To whom a state is required to provide a free appropriate 
public education under sec. 612 of the Education for All Handicapped 
Children Act of 1975, Pub. L. 94-142.
    (3) With respect to postsecondary and vocational education services, 
a handicapped person who meets the academic and technical standards 
requisite to admission or participation in the recipient's education 
program or activity; and
    (4) With respect to other services, a handicapped person who meets 
the essential eligibility requirements for the receipt of such services.
    (f) Handicap means condition or characteristic that renders a person 
a handicapped person as defined in paragraph (c) of this section.
    (g) Historic properties means those architecturally, historically or 
culturally significant properties listed in or eligible for listing in 
the National Register of Historic Places or such properties designated 
under a statute of the appropriate State or local governmental body.
    (h) Building alterations means those changes to the existing 
conditions and equipment of a building which do not involve any 
structural changes, but which typically improve and upgrade a building, 
such as alterations to stairways, doors, toilets, elevators, and site 
improvements.
    (i) Structural changes means those changes which alter the structure 
of a historic building including, but not limited to, its bearing walls 
and all types of post and beam systems in wood, steel, iron or concrete.

The definitions set forth in Sec. 1040.3 of this part, to the extent not 
inconsistent with this subpart, are made applicable to and incorporated 
into this subpart.



Sec. 1040.63  Discrimination prohibited.

    (a) General. No qualified handicapped person shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity that receives or benefits from Federal financial assistance 
from DOE.
    (b) Discriminatory actions prohibited. (1) A recipient, in providing 
any aid, benefit, or service, may not directly or through contractual, 
licensing, or other arrangements, on the basis of handicap--
    (i) Deny a qualified person the opportunity to participate in or 
benefit from the aid, benefit or service;
    (ii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless the action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Aid or perpetuate discrimination against a qualified handicapped 
person by providing significant assistance to an agency, organization, 
or person that

[[Page 740]]

discriminates on the basis of handicap in providing any aid, benefit, or 
services to beneficiaries of the recipient's program;
    (vi) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vii) Otherwise limit a qualified handicapped person in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit or service.
    (2) For purposes of this part, aids, benefits, and services, to be 
equally effective, are not required to produce the identical result or 
level of achievement for handicapped and nonhandicapped persons, but 
must afford handicapped persons equal opportunity to obtain the same 
result, to gain the same benefit, or to reach the same level of 
achievement in the most integrated setting appropriate to the person's 
needs.
    (3) Despite the existence of permissible separate or different 
programs or activities, a recipient may not deny a qualified handicapped 
person the opportunity to participate in programs or activities that are 
not separate or different.
    (4) A recipient may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration that:
    (i) Have the effect of subjecting qualified handicapped persons to 
discrimination on the basis of handicap;
    (ii) Have the purpose or effect of defeating or substantially 
impairing accomplishment of the objectives of the recipient's program 
with respect to handicapped persons; or
    (iii) Perpetuate the discrimination of another recipient if both 
recipients are subject to common administrative control or are agencies 
of the same state.
    (5) In determining the site of a facility, an applicant for 
assistance or a recipient may not make selections that--
    (i) Have the effect of excluding handicapped persons from, denying 
them the benefits of, or otherwise subjecting them to discrimination 
under any program or activity that receives Federal financial assistance 
from DOE; or
    (ii) Have the purpose or effect of defeating or substantially 
impairing the accomplishment of the objectives of the program or 
activity with respect to handicapped persons.
    (6) As used in this section, the aid, benefit, or service provided 
under a program or activity receiving or benefitting from Federal 
financial assistance includes any aid, benefit, or service provided in 
or through a facility that has been constructed, expanded, altered, 
leased or rented, or otherwise acquired, in whole or in part, with 
Federal financial assistance.
    (c) Programs limited by Federal law. The exclusion of non-
handicapped persons from the benefits of a program limited by Federal 
statute or Executive order to handicapped persons or the exclusion of a 
specific class of handicapped persons from a program limited by Federal 
statute or Executive order to a different class of handicapped persons 
is not prohibited by this part.
    (d) Recipients shall take appropriate steps to ensure that 
communications with their applicants, employees and handicapped persons 
participating in federally assisted programs of activities or receiving 
aids, benefits or services, are available to persons with impaired 
vision and hearing.
    (e) The enumeration of specific forms of prohibited discrimination 
in this paragraph does not limit the generality of the prohibition in 
paragraph (a) of this section.



Sec. 1040.64  Effect of State or local law or other requirements and effect of employment opportunities.

    (a) The obligation to comply with this subpart is not obviated or 
alleviated by the existence of any State or local law or other 
requirement that, on the basis of handicap, imposes prohibitions or 
limits upon the eligibility of qualified handicapped persons to receive 
services or to practice any occupation or profession.
    (b) The obligation to comply with this part is not obviated or 
alleviated because employment opportunities in any occupation or 
profession are or may be more limited for handicapped persons than for 
non-handicapped persons.
    (c) Effect of other regulations. All regulations, orders, or similar 
directions

[[Page 741]]

issued by any officer of DOE which impose requirements designed to 
prohibit discrimination against individuals on the grounds of race, 
color, national origin, sex, age or handicap under any program to which 
this part applies, and which authorize the suspension, termination or 
refusal to grant or to continue Federal financial assistance under any 
program for failure to comply with these requirements, are superseded to 
the extent that discrimination is prohibited by this part. Nothing in 
this part is to relieve any person of the obligation assumed or imposed 
under any superseded regulation, order, instruction, or similar 
direction prior to the effective date of this part. Nothing in this part 
is to supersede the effective date of this part. Nothing in this part is 
to supersede Executive Orders 10925, 11114, 11063, 11246, and 
regulations issued under these authorities, or supersede any other 
regulations or instructions which prohibit discrimination on the ground 
of race, color, national origin, sex, age, or handicap in any program or 
activity to which this part does not apply.



Sec. 1040.65  Procedures.

    The procedural provisions applicable to Title VI of the Civil Rights 
Act of 1964 are adopted and incorporated in this section by reference. 
These procedures may be found in subparts G and H of this part.

                          Employment Practices



Sec. 1040.66  Discrimination prohibited.

    (a) General. (1) No qualified handicapped person shall, on the basis 
of handicap, be subjected to discrimination employment under any program 
or activity to which this subpart applies.
    (2) A recipient shall make all decisions concerning employment under 
any program or activity to which this part applies in a manner which 
ensures that discrimination on the basis of handicap does not occur and 
may not limit, segregate, or classify applicants or employees in any way 
that adversely affects their opportunities or status because of 
handicap.
    (3) A recipient may not participate in a contractual or other 
relationship that has the effect of subjecting qualified handicapped 
applicants or employees to discrimination prohibited by this subpart. 
The relationships referred to in this paragraph include relationships 
with employment and referral agencies, labor unions, organizations 
providing or administering fringe benefits to employees of the 
recipient, and organizations providing training and apprenticeship 
programs.
    (b) Specific activities. The provisions of this subpart apply to:
    (1) Recruitment, advertising, and processing of applications for 
employment;
    (2) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff, and 
rehiring;
    (3) Rates of pay or any other form of compensation and changes in 
compensation;
    (4) Job assignments, job classifications, organizational structures, 
position descriptions, lines of progression, and seniority lists;
    (5) Leaves of absence, sick or otherwise;
    (6) Fringe benefits available by virtue of employment, whether 
administered by the recipient or not;
    (7) Selection and provision of financial support for training, 
including apprenticeship, professional meetings, conferences, and other 
related activities, and selection for leaves of absence to pursue 
training;
    (8) Employer sponsored activities, including social or recreational 
programs; and
    (9) Any other term, condition, or privilege of employment.
    (c) A recipient's obligation to comply with this subpart is not 
affected by any inconsistent term of any collective bargaining agreement 
to which it is a party.



Sec. 1040.67  Reasonable accommodation.

    (a) A recipient shall make reasonable accommodation to the known 
physical or mental limitations of an otherwise qualified handicapped 
applicant or employee unless the recipient can demonstrate that the 
accommodation would impose an undue hardship on the operation of its 
program.
    (b) Reasonable accommodation may include:

[[Page 742]]

    (1) Making facilities used by employees readily accessible to and 
usable by handicapped persons; and
    (2) Job restructuring, part-time or modified work schedules, 
acquisition or modification of equipment or devices, the provision of 
readers or interpreters, and other similar actions.
    (c) In determining, under paragraph (a) of this section, whether an 
accommodation would impose an undue hardship on the operation of a 
recipient's program, factors to be considered include:
    (1) The overall size of the recipient's program with respect to 
number of employees, number and type of facilities, and size of budget;
    (2) The type of the recipient's operation, including the composition 
and structure of the recipient's workforce; and
    (3) The nature and cost of the accommodation needed.
    (d) A recipient may not deny any employment opportunity to a 
qualified handicapped employee or applicant if the basis for the denial 
is the need to make reasonable accommodation to the physical or mental 
limitations of the employee or applicant.



Sec. 1040.68  Employment criteria.

    (a) A recipient may not use any employment test or other selection 
criterion that screens out or tends to screen out handicapped persons 
unless the test score or other selection criterion, as used by the 
recipient, is shown to be job-related for the position in question.
    (b) A recipient shall select and administer tests concerning 
employment to best ensure that, when administered to an applicant or 
employee who has a handicap that impairs sensory, manual, or speaking 
skills, the test results accurately reflect the applicant's or 
employee's job skills, aptitude or other factors the test purports to 
measure except where those skills are the factors that the test purports 
to measure.



Sec. 1040.69  Preemployment inquiries.

    (a) Except as provided in paragraphs (b) and (c) of this section, a 
recipient may not conduct a pre-employment medical examination or may 
not make pre-employment inquiry of an applicant as to whether the 
applicant is a handicapped person or as to the nature or severity of a 
handicap. A recipient may, however, make pre-employment inquiry into an 
applicant's ability to perform job-related functions.
    (b) When a recipient is taking remedial action to correct the 
effects of past discrimination, under Sec. 1040.7 of this part, or is 
taking voluntary action to overcome the effects of conditions that 
resulted in limited participation in its federally assisted program or 
activity under Sec. 1040.7 of subpart A of this part, or when a 
recipient is taking affirmative action under Sec. 503 of the 
Rehabilitation Act of 1973, as amended, the recipient may invite 
applicants for employment to indicate whether, and to what extent, they 
are handicapped Provided that:
    (1) The recipient states clearly on any written questionnaire used 
for this purpose or makes clear orally, if no written questionnaire is 
used, that the information requested is intended for use solely in 
connection with its remedial action obligations or its voluntary or 
affirmative action efforts; and
    (2) The recipient states clearly that the information is requested 
on a voluntary basis, that it will be kept confidential as provided in 
paragraph (d) of this section, that refusal to provide it will not 
subject the applicant or employee to any adverse treatment, and that it 
will be used only in accordance with this subpart.
    (c) Nothing in this section is to prohibit a recipient from 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty provided 
that all entering employees are subjected to the examination regardless 
of handicap or absence of handicap and results of the examination are 
used only in accordance with the requirements of this subpart.
    (d) Information obtained in accordance with this section concerning 
the medical condition or history of the applicant is to be collected and 
maintained on separate forms that are to be accorded confidentiality as 
medical records, except that:
    (1) Supervisors and managers may be informed regarding restrictions 
on the work or duties of handicapped persons

[[Page 743]]

and regarding necessary accommodations;
    (2) First aid and safety personnel may be informed, where 
appropriate, if the condition might require emergency treatment; and
    (3) Government officials investigating compliance with Sec. 504 of 
the Rehabilitation Act of 1973, as amended, shall be provided relevant 
information upon request.

                          Program Accessibility



Sec. 1040.71  Discrimination prohibited.

    No handicapped person shall, because a recipient's facilities are 
inaccessible to or unuseable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or be subjected to 
discrimination under any program or activity that receives or benefits 
from Federal financial assistance from DOE.



Sec. 1040.72  Existing facilities.

    (a) Program accessibility. A recipient shall operate any program or 
activity to which this subpart applies so that the program or activity, 
when viewed in its entirety, is readily accessible and useable by 
handicapped persons. This paragraph does not require a recipient to make 
each of its existing facilities or every part of a facility accessible 
to and useable by handicapped persons.
    (b) Methods. A recipient may comply with the requirements of 
paragraph (a) of this section through such means as redesign of 
equipment, reassignment of classes or other services to accessible 
buildings, assignment of aids to beneficiaries, home visits, delivery of 
health, welfare, or other social services at alternate accessible sites, 
alteration of existing facilities and construction of new facilities in 
conformance with the requirements of Sec. 1040.73 or any other methods 
that result in making its program or activity accessible to handicapped 
persons. A recipient is not required to make structural changes in 
existing facilities where other methods are effective in achieving 
compliance with paragraph (a) of this section. In choosing among 
available methods for meeting the requirement of paragraph (a) of this 
section, a recipient shall give priority to those methods that offer 
programs and activities to handicapped persons in the most integrated 
setting appropriate.
    (c) Time period. A recipient shall comply with the requirement of 
paragraph (a) of this section within 60 days of the effective date of 
this subpart except that where structural changes in facilities are 
necessary, the changes are to be made as expeditiously as possible, but 
in no event later than three years after the effective date of this 
subpart.
    (d) Transition plan. In the event that structural changes to 
facilities are necessary to meet the requirement of paragraph (a) of 
this section, a recipient shall develop, within 6 months of the 
effective date of this subpart, a transition plan setting forth the 
steps necessary to complete the changes. The plan is to be developed 
with the assistance of interested persons, including handicapped persons 
or organizations representing handicapped persons, and the plan is to 
meet with the approval of the Director, Federally Assisted Programs 
Division, Office of Equal Opportunity, DOE. A copy of the transition 
plan is to be made available for public inspection. At a minimum, the 
plan is to:
    (1) Identify physical obstacles in the recipient's facilities that 
limit the accessibility to and usability by handicapped persons of its 
program or activity.
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
full program accessibility and, if the time period or the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the person responsible for implementation of the plan.
    (e) Notice. The recipient shall adopt and implement procedures to 
ensure that interested persons, including persons with impaired vision 
or hearing, can obtain information concerning the existence and location 
of services, activities, and facilities that are accessible to, and 
useable by, handicapped persons.

[[Page 744]]



Sec. 1040.73  New construction.

    (a) Design and construction. Each facility or part of a facility 
constructed by, on behalf of, or for the use of a recipient is to be 
designed and constructed in a manner that the facility or part of the 
facility is readily accessible to, and useable by, handicapped persons, 
if the construction was commenced after the effective date of this 
subpart.
    (b) Alteration. Each facility or part of a facility which is altered 
by, on behalf of, or for the use of a recipient after the effective date 
of this subpart in a manner that affects or could affect the usability 
of the facility or part of the facility is, to the maximum extent 
feasible, to be altered in a manner that the altered portion of the 
facility is readily accessible to and useable by handicapped persons.
    (c) Conformance with Uniform Federal Accessibility Standards. (1) 
Effective as of January 18, 1991, design, construction, or alteration of 
buildings in conformance with sections 3-8 of the Uniform Federal 
Accessibility Standards (USAF) (appendix A to 41 CFR subpart 101-19.6) 
shall be deemed to comply with the requirements of this section with 
respect to those buildings. Departures from particular technical and 
scoping requirements of UFAS by the use of other methods are permitted 
where substantially equivalent or greater access to and usability of the 
building is provided.
    (2) For purposes of this section, section 4.1.6(1)(g) of UFAS shall 
be interpreted to exempt from the requirements of UFAS only mechanical 
rooms and other spaces that, because of their intended use, will not 
require accessibility to the public or beneficiaries or result in the 
employment or residence therein of persons with physical handicaps.
    (3) This section does not require recipients to make building 
alterations that have little likelihood of being accomplished without 
removing or altering a load-bearing structural member.
[45 FR 40515, June 13, 1980, as amended at 55 FR 52138 and 52140, Dec. 
19, 1990]



Sec. 1040.74  Program accessibility in historic properties.

    (a) Methods to accomplish program accessibility. In the case of 
historic properties, program accessibility shall mean that when programs 
are viewed in their entirety, they are accessible to and usable by 
handicapped persons. The recipient shall exhaust subsection (b)(1) 
(methods to accomplish program accessibility without building 
alterations or structural changes) before proceeding to subsection 
(b)(2) (methods to accomplish program accessibility resulting in 
building alterations). The recipient shall exhaust subsection (b)(2) 
(methods to accomplish program accessibility resulting in building 
alterations) before proceeding to subsection (b)(3) (methods to 
accomplish program accessibility resulting in structural changes).
    (1) Methods to accomplish program accessibility without building 
alterations or structural changes. The recipient shall investigate 
compliance methods which do not alter the historic character or 
architectural integrity of the property and shall utilize such methods 
unless such methods are ineffective in achieving accessibility. Such 
methods may include, but are not limited to:
    (i) Reassigning programs to accessible locations within the 
facility.
    (ii) Assigning persons to aid handicapped persons into or through an 
otherwise inaccessible facility.
    (iii) Delivering programs or activities at alternative accessible 
sites operated by or available for such use by the recipient.
    (iv) Adopting other innovative methods which make programs 
accessible to the handicapped.
    (2) Methods to accomplish program accessibility resulting in 
building alterations. The recipient shall determine that program 
accessibility cannot feasibly be accomplished by Methods to Accomplish 
Program Accessibility without Building Alterations or Structural 
Changes, subsection (b)(1) prior to utilizing building alteration as a 
method of accomplishing program accessibility. Alterations must comply 
with the accessibility standards adopted in these regulations. Building 
alterations shall be undertaken so as not to alter or destroy 
historically,

[[Page 745]]

architecturally, or culturally significant elements or features.
    (3) Methods to accomplish program accessibility resulting in 
structural changes. The recipient shall determine that program 
accessibility cannot feasibly be accomplished by Methods to Accomplish 
Program Accessibility without Building Alterations or Structural 
Changes, subsection (b)(2) before considering structural changes as a 
method of accomplishing program accessibility. Structural changes must 
comply with the accessibility standards adopted in these regulations. 
Structural changes shall be undertaken so as not to alter or destroy 
historically, architecturally or culturally significant elements or 
features.
    (b) Modification or waiver of accessibility standards. The 
applicability of the accessibility standards set forth in these 
regulations may be modified or waived on a case-by-case basis, upon 
application to the Director, FAPD, where the recipient can demonstrate 
that, because of the nature of the activity, the provision of access 
would be infeasible or would substantially impair the historic, 
architectural or cultural integrity of the historic property.

(National Historic Preservation Act of 1966, Pub. L. 89-665, 80 Stat 
915, 16 U.S.C. 470; 11593, 3 CFR 1971 Comp., p. 154; 36 CFR part 800)



Subpart E--Nondiscrimination on the Basis of Age--Age Discrimination Act 
                           of 1975, as Amended

    Authority: Age Discrimination Act of 1975, as amended, Pub. L. 94-
135, November 28, 1975 (43 U.S.C. 6101) et seq.; 45 CFR part 90.

    Source: 50 FR 8089, Feb. 27, 1985, unless otherwise noted.

                           General Provisions



Sec. 1040.81  Purpose.

    The purpose of these regulations is to implement the Age 
Discrimination Act of 1975, as Amended, which prohibits discrimination 
on the basis of age in programs or activities receiving Federal 
financial assistance. In accordance with the Age Discrimination Act, 
federally assisted programs and activities and recipients of Federal 
funds may continue to use age distinctions and factors other than age 
which meet the requirements of the Act and these regulations.



Sec. 1040.82  Application.

    (a) These regulations apply to each program or activity which 
receives or benefits from Federal financial assistance provided by DOE.
    (b) These regulations do not apply to--
    (1) An age distinction contained in that part of a Federal, State, 
or local statute or ordinance adopted by an elected, general purpose 
legislative body which:
    (i) Provides any benefits or assistance to persons based on age; or
    (ii) Establishes criteria for participation in age-related terms; or
    (iii) Describes intended beneficiaries or target groups in age-
related terms.
    (2) Any employment practice of any employer, employment agency, 
labor organization, or any labor-management joint apprenticeship 
training program.



Sec. 1040.83  Definitions.

    (a) Act means the Age Discrimination Act of 1975 as amended title 
III of Pub. L. 94-135, 42 U.S.C. 6101 et seq.
    (b) Action means any act, activity, policy, rule, standard or method 
of administration; or the use of any policy, rule, standard, or method 
of administration.
    (c) Age means how old a person is or the number of years from the 
date of a person's birth.
    (d) Age distinction means any action using age or an age-related 
term (for example, ``18 or over'').
    (e) Age-related term means a word or words which necessarily imply a 
particular age or range of ages (for example, ``children'', ``adult'', 
``older persons'', but not ``student'').
    (f) Days mean calendar days.
    (g) Discrimination means unlawful treatment based on age.
    (h) FERC means the Federal Energy Regulatory Commission.
    (i) Field Civil Rights Officer means the official in each DOE field 
office with responsibility for administering DOE's Civil Rights Program 
related to nondiscrimination in Federally assisted programs and 
activities.

[[Page 746]]

    (j) Recipient means any State or its political subdivision, 
instrumentality of a State or its political subdivision, any public or 
private agency, institution, organization, or other entity, or any 
person to which Federal financial assistance is extended, directly or 
through another recipient. Recipient includes any successor, assignee, 
or transferee, but excludes an individual who is the ultimate 
beneficiary of the assistance.
    (k) Secretary means the Secretary, Department of Energy.

              Standards for Determining Age Discrimination



Sec. 1040.84  Rules against age discrimination.

    The rules stated in this section are limited by the exceptions 
contained in Sec. 1040.86 and of these regulations.
    (a) General rule. No person in the United States shall, on the basis 
of age, be excluded from participation in, be denied the benefits of, or 
be subjected to discrimination under, any program or activity receiving 
Federal financial assistance.
    (b) Specific rules. A recipient may not, in any program or activity 
receiving Federal financial assistance, directly or through contractual, 
licensing, or other arrangements use age distinctions or take any other 
actions which have the effect, on the basis of age, of:
    (1) Excluding individuals from, denying them the benefits of, or 
subjecting them to discrimination under, a program or activity receiving 
Federal financial assistance; or
    (2) Denying or limiting individuals in their opportunity to 
participate in any program or activity receiving Federal financial 
assistance.
    (3) The specific forms of age discrimination listed in paragraph (b) 
of this section do not necessarily constitute a complete list.



Sec. 1040.85  Definitions of ``Normal Operation'' and ``Statutory Objective''.

    For purpose of Secs. 1040.86 and 1040.87, the terms normal operation 
and statutory objective shall have the following meanings:
    (a) Normal operation means the operation of a program or activity 
without significant changes that would impair its ability to meet its 
objectives.
    (b) Statutory objective means any purpose of a program or activity 
expressly stated in any Federal, State, or local statute or ordinance 
adopted by an elected, general purpose legislative body.



Sec. 1040.86  Exceptions to the rules against age discrimination. Normal operation or statutory objective of any program or activity.

    A recipient is permitted to take an action, otherwise prohibited by 
Sec. 1040.84, if the action reasonably takes into account age as a 
factor necessary to the normal operation or the achievement of any 
statutory objective of a program or activity. An action reasonably takes 
into account age as a factor necessary to the normal operation of a 
program or activity if:
    (a) Age is used as a measure or approximation of one or more other 
characteristics;
    (b) The other characteristic(s) must be measured or approximated in 
order for the normal operation of the program or activity to continue or 
to achieve any statutory objective of the program or activity;
    (c) The other characteristic(s) can be reasonably measured or 
approximated by the use of age; and
    (d) The other characteristic(s) are impractical to measure directly 
on an individual basis.



Sec. 1040.87  Exceptions to the rules against age discrimination. Reasonable factors other than age.

    A recipient is permitted to take an action otherwise prohibited by 
Sec. 1040.84 which is based on a factor other than age, even though that 
action may have a disproportionate effect on persons of different ages. 
An action may be based on a factor other than age only if the factor 
bears a direct and substantial relationship to the normal operation of 
the program or activity or to the achievement of a statutory objective.



Sec. 1040.88  Remedial and affirmative action by recipients.

    (a) Where a recipient is found to have discriminated on the basis of 
age, the recipient shall take such remedial action as the Director, 
Office of Equal

[[Page 747]]

Opportunity (OEO), considers necessary to overcome the effects of the 
discrimination.
    (b) Even in the absence of a finding of discrimination, a recipient 
may take affirmative action to overcome the effects of conditions that 
resulted in limited participation in the recipient's program or activity 
on the basis of age.
    (c) If a recipient operating a program which serves the elderly or 
children, in addition to persons of other ages, provides special 
benefits to the elderly or to children, the provision of those benefits 
shall be presumed to be voluntary affirmative action provided that it 
does not have the effect of excluding otherwise eligible persons from 
participation in the program.



Sec. 1040.89  Burden of proof.

    The burden of proving that an age distinction or other action falls 
within the exceptions outlined in Secs. 1040.86 and 1040.87 is on the 
recipient of Federal financial assistance.

                   Responsibilities of DOE Recipients



Sec. 1040.89-1  General responsibilities.

    Each DOE recipient has primary responsibility to ensure that its 
programs and activities are in compliance with the Act and these 
regulations. A recipient also has responsibility to maintain records, 
provide information, and afford access to its records to DOE, to the 
extent required to determine whether it is in compliance with the Act 
and these regulations.



Sec. 1040.89-2  Notice to subrecipients.

    Where a recipient awards Federal financial assistance from DOE to 
its subrecipients, the recipient shall provide the subrecipients written 
notice of their obligations under these regulations.



Sec. 1040.89-3  Information requirements.

    Each recipient shall: (a) Upon request make available to DOE 
information necessary to determine whether the recipient is complying 
with the Act and these regulations.
    (b) Permit reasonable access by DOE, upon request, to the books, 
records, accounts, and other recipient facilities and sources of 
information to the extent necessary to determine whether the recipient 
is in compliance with the Act and these regulations.

         Investigation, Conciliation and Enforcement Procedures



Sec. 1040.89-4  Compliance reviews.

    (a) DOE may conduct preaward and postaward compliance reviews of 
recipients as prescribed in this part or use other similar procedures 
that will permit it to investigate and correct violations of the Act and 
these regulations. DOE may conduct these reviews even in the absence of 
a complaint against a recipient. The review may be as comprehensive as 
necessary to determine whether a violation of these regulations has 
occurred.
    (b) If a compliance review indicates a violation of the Act or these 
regulations, DOE will attempt to achieve voluntary compliance with the 
Act. If voluntary compliance cannot be achieved, DOE will arrange for 
enforcement as described in Sec. 1040.89-10.



Sec. 1040.89-5  Complaints.

    (a) Any person, individually or as a member of a class or on behalf 
of others, may file a written complaint with DOE alleging discrimination 
prohibited by the Act or these regulations. A complainant must file a 
complaint within 180 days from the date he/she first had knowledge of 
the alleged act of discrimination. For good cause shown, however, the 
Director, Office of Equal Opportunity (OEO), may extend the time limit 
for filing a complaint. Complaints may be submitted to Field Civil 
Rights Officers located in DOE's field offices or to the Director, OEO, 
Forrestal Building, 1000 Independence Avenue, SW., Washington, D.C. 
20585.
    (b) The Director, OEO, will attempt to facilitate the filing of 
complaints wherever possible, including taking the following measures:
    (1) Accepting as a sufficient complaint any written statement which 
identifies the parties involved and the date the complainant first had 
knowledge of the alleged violation, describes generally the action or 
practice complained of, and is signed by the complainant.

[[Page 748]]

    (2) Freely permitting a complainant to add information to the 
complaint to meet the requirements of a sufficient complaint.
    (3) Widely disseminating information regarding the obligations of 
recipients under the Act and these regulations.
    (4) Notifying the complainant and the recipient of their rights and 
obligations under the complaint procedure, including the right to have a 
representative at all stages of the complaint procedure.
    (5) Notifying the complainant and the recipient (or their 
representatives) of their right to contact DOE for information and 
assistance regarding the complaint resolution process.
    (c) The Director, OEO, will refer any complaint outside the 
jurisdiction of DOE to the proper Federal department or agency and will 
also notify the complainant and the recipient of the referral. The 
notification will contain an explanation for the referral and the name, 
telephone number, and address of the Federal department or agency office 
having jurisdiction over the matter complained.



Sec. 1040.89-6  Mediation.

    (a) Referral of complaints for mediation. DOE will refer to the 
Federal Mediation and Conciliation Service, in accordance with 45 CFR 
90.43(c)(3), all complaints that:
    (1) Fall within the jurisdiction of the Act and these regulations; 
and
    (2) Contain all information necessary for further processing.
    (b) Both the complainant and the recipient shall participate in the 
mediation process to the extent necessary to reach an agreement or make 
an informed judgment that an agreement is not possible. There must be at 
least one meeting with the mediator before the Director, OEO, will 
accept a judgment that an agreement is not possible. However, the 
recipient and the complainant need not meet with the mediator at the 
same time.
    (c) If the complainant and the recipient reach an agreement, the 
mediator shall prepare a written statement of the agreement and have the 
complainant and the recipient sign it. The mediator shall send a copy of 
the agreement to the Director, OEO, DOE. DOE will take no further action 
on the complaint unless the complainant or the recipient fails to comply 
with the agreement.
    (d) DOE will use the mediation process for a maximum of 60 days 
after referring a complaint to mediation. Mediation ends if:
    (1) 60 days elapse from the time the mediation agency receives the 
complaint; or
    (2) Prior to the end of the 60 day mediation period, an agreement is 
reached; or
    (3) Prior to the end of that 60 day mediation period, the mediator 
determines that an agreement cannot be reached.
    (e) The mediator shall return unresolved complaints to the Director, 
OEO, DOE.



Sec. 1040.89-7  Investigation.

    (a) Informal Investigation. (1) The Director, OEO, will review 
complaints that are unresolved after mediation or are reopened because 
of a violation of a mediation agreement.
    (2) As part of this review, Field Civil Rights Officers will use 
informal fact finding methods, including joint or separate discussions 
with the complainant and recipient, to establish the facts and, if 
possible, settle the complaint on terms that are mutually agreeable to 
the parties.
    (3) If the complaint is resolved during the informal investigation, 
DOE will put the agreement in writing and have it signed by the parties 
and the Director, OEO.
    (4) The settlement shall not affect the operation of any other 
enforcement effort of DOE, including compliance reviews and 
investigation of other complaints which may involve the recipient.
    (5) The settlement is not a finding of discrimination against a 
recipient.
    (b) Formal Investigation. If Field Civil Rights Officers cannot 
resolve the complaint through informal inquiry, the Director, OEO, will 
assign an Investigator to conduct a formal investigation of the 
complaint. If the investigation indicates a violation of the Act or 
these regulations, DOE will attempt to obtain voluntary compliance. If 
DOE cannot obtain voluntary compliance, it

[[Page 749]]

will begin enforcement as described in Sec. 1040.89-10 and 10 CFR part 
1040, subpart H, Sec. 1040.111.



Sec. 1040.89-8  Prohibition against intimidation or retaliation.

    A recipient may not engage in acts of intimidation or retaliation 
against any person who:
    (a) Attempts to assert a right protected by the Act or these 
regulations; or
    (b) Cooperates in any mediation, investigation, hearing, or other 
part of DOE's investigation, conciliation, and enforcement process.



Sec. 1040.89-9  Compliance procedure.

    (a) DOE may enforce the Act and these regulations through procedures 
precribed in subpart H of DOE regulation 10 CFR part 1040--
Nondiscrimination in Federally Assisted Programs, which calls for--
    (1) Termination of a recipient's Federal financial assistance from 
DOE under the program or activity involved where the recipient has 
violated the Act or these regulations. The determination of the 
recipient's violation may be made only after a recipient has had an 
opportunity for a hearing on the record before the Federal Energy 
Regulatory Commission (FERC). Therefore, cases which are settled in 
mediation, or prior to a hearing, will not involve termination of a 
recipient's Federal financial assistance from DOE under this section.
    (2) Any other means authorized by law including, but not limited to:
    (i) Referral to the Department of Justice for proceedings to enforce 
any rights of the United States or obligations of the recipient created 
by the Act or these regulations, or under the terms of the Federal 
financial assistance.
    (ii) Use of any requirement of, or referral to, any Federal, State, 
or local government agency that will have the effect of correcting a 
violation of the Act of these regulations.
    (b) DOE will limit any termination under Sec. 1040.89-9(a)(1) to the 
particular recipient and particular program or activity DOE finds in 
violation of these regulations. DOE will not base any part of a 
termination on a finding with respect to any program or activity of the 
recipient which does not receive Federal financial assistance from DOE.
    (c) DOE will take no action under paragraph (a) until:
    (1) The Director, OEO, has advised the recipient of its failure to 
comply with the Act, these regulations, or the terms of the Federal 
financial assistance and has determined that voluntary compliance cannot 
be obtained.
    (2) Thirty (30) days have elapsed after the Secretary or the 
Secretary's designee has sent a written report of the circumstances and 
grounds of the action to the committees of the Congress having 
legislative jurisdiction over the Federal program or activity involved. 
The Secretary will file a report whenever any action is taken under 
paragraph (a) of this section.
    (d) DOE also may defer granting new Federal financial assistance to 
a recipient when a hearing under Sec. 1040.89-10 is initiated.
    (1) New Federal financial assistance from DOE includes all 
assistance for which DOE requires an application or approval, including 
renewal or continuation of existing activities, or authorization of new 
activities during the deferral period. New Federal financial assistance 
from DOE does not include increases in funding as a result of changes, 
computation of formula awards, or assistance awarded prior to the 
beginning of a hearing under Sec. 1040.89-10.
    (2) DOE will not defer new assistance until the recipient has 
received a notice of an opportunity for a hearing under Sec. 1040.89-10. 
DOE will not continue a deferral for more than 60 days unless a hearing 
has begun within that time or the time for beginning the hearing has 
been extended by mutual consent of the recipient and FERC. DOE will not 
continue a deferral for more than 30 days after the close of the 
hearing, unless the hearing resulted in a finding against the recipient.



Sec. 1040.89-10  Hearings, decisions, post-termination proceedings.

    DOE procedural provisions applicable to title VI of the Civil Rights 
Act of 1964 apply to DOE enforcement of these regulations. They are 10 
CFR subpart H Secs. 1040.121 through 1040.124.

[[Page 750]]



Sec. 1040.89-11  Remedial action by recipients.

    Where the Director, OEO, finds a recipient has discriminated on the 
basis of age, the recipient shall take such remedial action as the 
Director, OEO, may require to end the discrminatory practice or policy 
and/or to overcome the effects of the discrimination.



Sec. 1040.89-12  Alternate funds disbursal procedure.

    (a) When DOE withholds funds from a recipient under these 
regulations, the Secretary or designee may disburse the withheld funds 
directly to an alternate recipient(s), any public or private 
organization or agency, or State or political subdivision of the State.
    (b) The Secretary or designee will require any alternate recipient 
to demonstrate:
    (1) The ability to comply with these regulations; and
    (2) The ability to achieve the goals of the Federal statute 
authorizing the program or activity.



Sec. 1040.89-13  Exhaustion of administrative remedies.

    (a) A complainant may file a civil action following the exhaustion 
of administrative remedies under the Act. Administrative remedies are 
exhausted if:
    (1) One hundred eighty (180) days have elapsed since the complainant 
filed the complaint and DOE has made no findings with regard to the 
complainant; or
    (2) DOE issues any findings in favor of the recipient.
    (b) If DOE fails to make a finding within 180 days or issues a 
finding in favor of the recipient, the Director, OEO, will:
    (1) Promptly advise the complainant of this fact; and
    (2) Advise the complainant of his or her right to bring a civil 
action for injunctive relief; and
    (3) Inform the complainant:
    (i) That the complainant may bring a civil action only in a United 
States District Court for the district in which the recipient is located 
or transacts business;
    (ii) That a complainant prevailing in a civil action has the right 
to be awarded the costs of the action, including reasonable attorney 
fees, but that the complainant must demand these costs in the complaint;
    (iii) That, before commencing the action, the complainant shall give 
30 days notice, by registered mail, to the Secretary of DOE, the 
Secretary of the Department of Health and Human Services, the Attorney 
General of the United States, and the recipient;
    (iv) That the notice must state: the alleged violation of the Act 
and these regulations; the relief requested; the court in which the 
complainant is bringing the action; and whether or not attorney fees are 
demanded in the event the complainant prevails; and
    (v) That the complainant may not bring an action if the same alleged 
violation of the Act by the same recipient is the subject of a pending 
action in any court of the United States.

[[Page 751]]



                            Appendix A to Subpart E to Part 1040--DOE Federally Assisted Programs Containing Age Distinctions                           
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Use of age/age related team                                          
                                                                     ------------------------------------------------------                             
 Statute, Name, Public Law, and       Section and age distinction        Conditions        Establishes        Describes       Popular name or      CFDA 
            U.S. Code                                                    benefits or      criteria for    beneficiaries or        program          No.  
                                                                         assistance       participation     target groups                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
Energy Conservation and           Section 413(a). The Administrator   ................  ................  X                 Weatherization        81.042
 Production Act, Title IV, Part    shall develop and conduct, in                                                             Assistance Program         
 A; Public Law 94-385, 42 U.S.C.   accordance with the purpose and                                                           for Low-Income             
 6861-6870.                        provisions of this part, a                                                                Persons.                   
                                   weatherization program. In                                                                                           
                                   developing and conducting such                                                                                       
                                   program, the Administrator may,                                                                                      
                                   in accordance with this part and                                                                                     
                                   regulations promulgated under                                                                                        
                                   this part, make grants (1) to                                                                                        
                                   States, and (2) in accordance                                                                                        
                                   with the provisions of subsection                                                                                    
                                   (d), to Indian tribal                                                                                                
                                   organizations to serve Native                                                                                        
                                   Americans. Such grants shall be                                                                                      
                                   made for the purpose of providing                                                                                    
                                   financial assistance with regard                                                                                     
                                   to projects designed to provide                                                                                      
                                   for the weatherization of                                                                                            
                                   dwelling units, particularly                                                                                         
                                   those where elderly or                                                                                               
                                   handicapped low-income persons                                                                                       
                                   reside, in which the head of the                                                                                     
                                   household is a low-income person.                                                                                    
Interagency Agreement between     Interagency Agreement, Section 1,   ................  ................  X                 Summer Science           N/A
 the United States Department of   Purpose: ``The purpose of this                                                            Student Program.           
 Energy and the United States      agreement is to provide for a                                                                                        
 Department of Labor,              transfer of funds from the                                                                                           
 Interagency Agreement No. 99-9-   Department of Labor, Employment                                                                                      
 1656-07-11; Authority:            and Training Administration                                                                                          
 Comprehensive Employment and      (ETA), Office of Youth Programs                                                                                      
 Training Act of 1978 (CETA)       (OYP) to the Department of                                                                                           
 (Pub. L. 95-524, October 27,      Energy, Directorate of                                                                                               
 1978; 92 Stat. 1909; 29 U.S.C.    Administration (AD), Office of                                                                                       
 801), the Energy Reorganization   Industrial Relations (OIR), to                                                                                       
 Act of 1974, as amended (Pub.     fund the Summer Science Student                                                                                      
 L. 93-438, October 11, 1974; 88   Program (SSSP). The SSSP will                                                                                        
 Stat. 1233), and the Department   grant monies from DOL through DOE/                                                                                   
 of Energy Organization Act (DOE   OIR to DOE contractors to fund                                                                                       
 Act) (Pub. L. 95-91, August 4,    480 participant slots for                                                                                            
 1977); 91 Stat. 565; 42 U.S.C.    economically disadvantaged youths                                                                                    
 7101).                            in an integrated program of                                                                                          
                                   career motivation and basic                                                                                          
                                   academic skill enrichment. The                                                                                       
                                   program is designed to motivate                                                                                      
                                   economically disadvantaged and                                                                                       
                                   academically talented youths to                                                                                      
                                   continue their education and to                                                                                      
                                   pursue energy-related careers                                                                                        
                                   upon graduation from high school.                                                                                    
Executive Office of the           Quotation from October 23, 1979     ................  ................  X                 Summer Research          N/A
 President, Office of Science      memorandum, paragraph 2, ``The                                                            Apprenticeship             
 and Technology Policy,            objectives are to stimulate                                                               Program.                   
 Memorandum, Subject: Research     broader interest in the minority                                                                                     
 Apprenticeships for Minority      communities in careers in science                                                                                    
 High Schoolers, dated October     and engineering and to establish                                                                                     
 23, 1979.                         individual working relationships                                                                                     
                                   of high school students with                                                                                         
                                   active researchers who may become                                                                                    
                                   helpful mentors when students                                                                                        
                                   need advice on college and                                                                                           
                                   careers and need letters of                                                                                          
                                   recommendation''.                                                                                                    
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 752]]



Subpart F--Nondiscrimination Under Title VIII of the Civil Rights Act of 
                      1968, as Amended  [Reserved]



                      Subpart G--Program Monitoring



Sec. 1040.101  Compliance reviews.

    (a) The Director shall periodically conduct compliance reviews of 
selected recipients of DOE Federal financial assistance.
    (b) The Director shall seek to review those recipients which have 
the most serious equal opportunity problems which cause the greatest 
disparity in delivery of services on a nondiscriminatory basis. 
Selection for review is to be made on the basis of the following 
criteria, among others:
    (1) The relative disparity between the percentage of minorities, 
women, or handicapped persons, in the relevant labor market, and the 
percentage of minorities, women, or handicapped persons, employed by the 
recipient if employment practices are covered by this part;
    (2) The percentage of individuals covered by the Age Discrimination 
Act of 1975, minorities, women and handicapped persons in the population 
receiving program benefits.
    (3) The number and nature of discrimination complaints filed against 
a recipient with DOE or other Federal agencies;
    (4) The scope of the problems revealed by an investigation commenced 
on the basis of a complaint filed with DOE against a recipient; and
    (5) The amount of assistance provided to the recipient.
    (c) After selection of a recipient for review, the Director 
Federally Assisted Programs Division or the Director's designee, shall 
inform the recipient of the selection. The notice shall be in writing 
and posted thirty days prior to the scheduled review. The letter will 
ordinarily request data pertinent to the review and advise the recipient 
of:
    (1) The practices to be reviewed;
    (2) The programs or activities affected by the review;
    (3) The opportunity to make, at any time prior to receipt of DOE's 
finding, a written submission responding to DOE which explains, 
validates, or otherwise addresses the practices under review; and
    (4) The schedule under which the review will be conducted and a 
determination of compliance or noncompliance made.
    (d) Within 90 days of arriving on-site to conduct the review, the 
Director, FAPD, shall advise the recipient, in writing, of:
    (1) Preliminary findings;
    (2) Where appropriate, recommendations for achieving voluntary 
compliance; and
    (3) The opportunity to request DOE to engage in voluntary compliance 
negotiations prior to the Director's final determination of compliance 
or noncompliance. The Director or the Director's designee shall notify 
the Assistant Attorney General at the same time the recipient is 
notified of any matter where recommendations for achieving voluntary 
compliance are made.
    (e) If, within 45 days of the recipient's notification under 
paragraph (d) of this section, the Director's (FAPD) recommendations for 
compliance are not met, or voluntary compliance is not secured, or the 
preliminary findings are not shown to be false, the matter will be 
forwarded to the Director for a determination of compliance or 
noncompliance. The determination is to be made no later than 60 days 
after the recipient has been notified of the preliminary findings. If 
the Director makes a determination of noncompliance, the Department 
shall institute actions specified in subparts G and H.
    (f) Where the Director makes a formal determination of 
noncompliance, the recipient and the Assistant Attorney General shall be 
immediately advised, in writing, of the determination and of the fact 
that the recipient has an additional 10 days in which to come into 
voluntary compliance. If voluntary compliance has not been achieved 
within the 10 days, the Director shall institute proceedings under 
subpart H.
    (g) All agreements to come into voluntary compliance shall be in 
writing and signed by the Director and an official who has authority to 
legally bind the recipient.

[[Page 753]]



Sec. 1040.102  Compliance information.

    (a) Cooperation and assistance. Each responsible Departmental 
official shall, to the fullest extent practicable, seek the cooperation 
of recipients in obtaining compliance with this part and shall provide 
assistance and guidance to recipients to help them comply voluntarily 
with this part.
    (b) Compliance reports. Each recipient shall keep reports and submit 
to the responsible Department official or his/her designee, timely, 
complete, and accurate compliance reports at the times, in such form, 
and containing information as the responsible Department official or the 
designee may determine to be necessary to enable him/her to ascertain 
whether the recipient has complied or is complying with this part. In 
general, recipients should have available for DOE data on program 
participants, identified by race, color, national origin, sex, age and 
handicap status. In the case of any program under which a primary 
recipient extends Federal financial assistance to any other recipient or 
subcontracts with any other person or group, such other recipient shall 
also submit compliance reports to the primary recipient which will 
enable the primary recipient to carry out its obligations under this 
part.
    (c) Access to sources of information. Each recipient shall permit 
access by the responsible Department official or his/her designee during 
normal business hours to books, records, personnel records, accounts, 
other sources of information, and its facilities, which are pertinent to 
ascertain compliance with this part. The requirement for access to 
sources of information shall be contained in the certificate of 
assurance and agreed to by the recipient as a condition to award. 
Whenever any information required of a recipient is in the exclusive 
possession of any other agency, institution, or person and that agency, 
institution, or person fails or refuses to furnish that information, the 
recipient shall certify this in its report and set forth the efforts 
which it has made to obtain the information. The sub-recipient in such 
case shall be subject to proceedings described under subpart H of this 
part.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons information regarding the provisions of this section 
and its applicability to the program under which the recipient receives 
Federal financial assistance. Information is to be made available to 
beneficiaries, participants, and other interested persons in a manner 
which the responsible Department officials find necessary to inform such 
persons of the protections against discrimination assured them by this 
part and the statutes to which this part applies.



Sec. 1040.103  [Reserved]



Sec. 1040.104  Complaint investigation.

    (a) The Director, FAPD, shall investigate complaints of 
discrimination that allege a violation of--
    (1) Title VI of the Civil Rights Act of 1964, Sec. 16 of the Federal 
Energy Administration Act of 1974, as amended, or Sec. 401 of the Energy 
Reorganization Act of 1974;
    (2) Title IX of the Education Amendments of 1972, as amended;
    (3) Section 504 of the Rehabilitation Act of 1973, as amended;
    (4) Age Discrimination Act of 1975, as amended, (reserved in this 
part);
    (5) Title VIII of the Civil Rights Act of 1968, as amended, 
(reserved in this part);
    (6) This part; and
    (7) Civil rights provisions of statutes administered pursuant to the 
DOE Organization Act, Pub. L. 95-91.
    (b) No complaint will be investigated if it is received by an 
appropriate Departmental official more than 180 days after the date of 
the alleged discrimination, unless the time for filing is extended by 
the Director, FAPD, for good cause shown. Where a complaint is accepted 
for investigation, the Director, FAPD, will initiate a DOE 
investigation. The Director, FAPD, who is responsible for the 
investigation, shall notify the complainant, in writing, if the 
complaint has been accepted or rejected.
    (c) The Director, FAPD, or his/her designee shall conduct 
investigations of complaints as follows:

[[Page 754]]

    (1) Within 35 days of receipt of a complaint, the Director, FAPD, 
shall:
    (i) determine whether DOE has jurisdiction under paragraphs (a) and 
(b) of this section;
    (ii) If jurisdiction is not found, wherever possible, refer the 
complaint to the Federal agency with such jurisdiction and advise the 
complainant;
    (iii) If jurisdiction is found, notify the recipient alleged to be 
discriminating of receipt of the complaint; and
    (iv) Initiate the investigation.
    (2) The investigation will ordinarily be initiated by a letter 
requesting data pertinent to the complaint and advising the recipient 
of:
    (i) The nature of the complaint and, with the written consent of the 
complainant, the identity of the complainant. The identity of the 
complainant may be revealed by the Director, FAPD, OEO, without the 
complainant's written consent if the Director, FAPD, OEO, determines 
that such action is necessary for resolution of the complaint;
    (ii) The program or activities affected by the complaint;
    (iii) The opportunity to make, at any time prior to receipt of DOE's 
findings, a documentary submission responding to, rebutting, or denying 
the allegations made in the complaint; and
    (iv) The schedule under which the complaint will be investigated and 
a determination of compliance made.
    (3) Within 90 days of initiating the investigation, the Director, 
FAPD, shall advise the recipient, in writing of:
    (i) Preliminary findings;
    (ii) Where appropriate, recommendations for achieving voluntary 
compliance; and
    (iii) The opportunity to request DOE to engage in voluntary 
compliance negotiations prior to the Director's final determination of 
compliance or noncompliance. The Director or the Director's designee 
shall notify the Assistant Attorney General and the recipient of any 
matter where recommendations for achieving voluntary compliance are 
made.
    (4) If, within 45 days of the recipient's notification under 
paragraph (c)(3) of this section, the Director's (FAPD) recommendations 
for compliance are not met, or voluntary compliance is not secured, or 
the preliminary findings are not shown to be false, the matter will be 
forwarded to the Director, OEO, for a determination of compliance or 
noncompliance. The determination is to be made no later than 60 days 
after the recipient has been notified of the preliminary findings. If 
the Director makes a determination of noncompliance, the Department 
shall institute actions specified in subpart H.
    (5) Where the Director makes a formal determination of 
noncompliance, the recipient and the Assistant Attorney General shall be 
immediately advised, in writing, of the determination and of the fact 
that the recipient has an additional 10 days in which to come into 
voluntary compliance. If voluntary compliance has not been achieved 
within the 10 days, the Director shall institute proceedings under 
subpart H. All agreements to come into voluntary compliance shall be in 
writing and signed by the Director, OEO, and an official who has 
authority to legally bind the recipient. The complainant shall also be 
notified of any action taken including the closing of the complaint or 
achievement of voluntary compliance.
    (6) If the complainant or party other than the Attorney General has 
filed suit in Federal or State court alleging the same discrimination 
alleged in a complaint to DOE, and if during DOE's investigation, the 
trial of that suit would be in progress, DOE will consult with the 
Assistant Attorney General and court records to determine the need to 
continue or suspend the investigation and will monitor the litigation 
through the court docket and contacts with the complainant. Upon receipt 
of notice that the court has made a finding of discrimination against a 
recipient that would constitute a violation of this part, the DOE may 
institute administrative proceedings as specified in subpart H after DOE 
has advised the recipient, in writing, of an opportunity to request 
voluntary compliance under this section. All agreements to come into 
voluntary compliance shall be in writing and signed by the Director and 
an official who has authority to legally bind the recipient.

[[Page 755]]

    (7) The time limits listed in paragraphs (c)(1) through (c)(6) of 
this section shall be appropriately adjusted where DOE requests another 
Federal agency to act on the complaint. DOE is to monitor the progress 
of the matter through liaison with the other agency. Where the request 
to act does not result in timely resolution of the matter, DOE is to 
institute appropriate proceedings as required by this part.
    (d) Intimidatory or retaliatory acts prohibited. No recipient or 
other person shall intimidate, threaten, coerce, or discriminate against 
any individual for the purpose of interfering with any right or 
privilege secured by the laws implemented in this part or because the 
complainant has made a complaint, testified, assisted, or participated 
in any manner in an investigation, proceeding, or hearing under this 
subpart. The identity of complainants is to be kept confidential except 
as determined by the Director, FAPD, to be necessary to carry out the 
purpose of this subpart, including investigations, hearings, or judicial 
proceedings arising thereunder.



                         Subpart H--Enforcement

                      Means of Effecting Compliance



Sec. 1040.111  Means available.

    If there appears to be a failure or threatened failure to comply 
with any of the provisions of this part, and if the noncompliance or 
threatened noncompliance cannot be corrected by voluntary means, 
compliance with this part may be effected by the suspension, termination 
of, or refusal to grant or to continue Federal financial assistance, or 
by any other means authorized by law. Such other means may include, but 
are not limited to:
    (a) Referral to the Department of Justice with a recommendation that 
appropriate proceedings be brought to enforce any rights of the United 
States under any law including the Civil Rights Act of 1964, other 
statutes to which this part applies, or any assurance or other 
contractual undertaking; and
    (b) Any applicable proceeding under State or local law.



Sec. 1040.112  Noncompliance with assurances.

    If an applicant fails or refuses to furnish an assurance required 
under Sec. 1040.4 of subpart A of this part, or otherwise fails or 
refuses to comply with a requirement imposed by this part, such as 
Sec. 1040.102(c), subpart G of this part, action to refuse Federal 
financial assistance shall be taken in accordance with procedures of 
Sec. 1040.114 of this subpart.



Sec. 1040.113  Deferral.

    DOE may defer action on pending applications for assistance in such 
a case during pendency of administrative proceedings under Sec. 1040.114 
of this subpart.



Sec. 1040.114  Termination of or refusal to grant or to continue Federal financial assistance.

    No order suspending, terminating, or refusing to grant or continue 
Federal financial assistance is to become effective until:
    (a) Informational notice of the proposed order is given to the 
Executive Assistant to the Secretary, if the action is contemplated 
against a State or local government;
    (b) The Director has advised the applicant or recipient of his/her 
failure to comply and has determined that compliance cannot be secured 
by voluntary means. (It will be determined by the Director that 
compliance cannot be secured by voluntary means if it has not been 
secured within the time periods specifically set forth by this part.)
    (c) There has been an express finding on the record, after 
opportunity for hearing, of a failure by the applicant or recipient to 
comply with the requirement imposed by or under this part:
    (d) The FERC has notified the Secretary of its finding of 
noncompliance; and
    (e) The expiration of 30 days after the Secretary or a designee has 
filed with the committee of the House of Representatives and the 
committee of the Senate having legislative jurisdiction over the program 
involved, a full written report of the circumstances and the grounds for 
such action. Any action to suspend, terminate, or to refuse to grant or 
to continue Federal financial

[[Page 756]]

assistance is to be limited to the particular political entity or part 
of that entity or other applicant or recipient to whom the finding has 
been made and shall be limited in its effect to the particular program 
or part of the program in which the noncompliance has been found.



Sec. 1040.115  Other means authorized by law.

    No action to effect compliance by any other means authorized by law 
is to be taken until--
    (a) The Director has determined that compliance cannot be secured by 
voluntary means;
    (b) The recipient or other person has been notified by the Director, 
in writing, that it has been found in formal noncompliance and that it 
has 10 days before formal enforcement proceedings begin in which to 
enter into a written voluntary compliance agreement.
    (c) The expiration of at least ten (10) days from the mailing of the 
notice to the recipient or other person.

                         Opportunity for Hearing



Sec. 1040.121  Notice of opportunity for hearing.

    (a) Whenever an opportunity for hearing is required by 
Sec. 1040.113, the Director, OEO, or his/her designee shall serve on the 
applicant or recipient, by registered, certified mail, or return receipt 
requested, a notice of opportunity for hearing which will:
    (1) Inform the applicant or recipient of the action proposed to be 
taken and of his/her right within twenty (20) days of the date of the 
notice of opportunity for hearing, or another period which may be 
specified in the notice, to request a hearing;
    (2) Set forth the alleged item or items of noncompliance with this 
part;
    (3) Specify the issues;
    (4) State that compliance with this part may be effected by an order 
providing for the termination of or refusal to grant or to continue 
assistance, as appropriate, under the program involved; and
    (5) Provide that the applicant or recipient may file a written 
answer with the Director, OEO, to the notice of opportunity for hearing 
under oath or affirmation within twenty (20) days of its date, or 
another period which may be specified in the notice.
    (b) An applicant or recipient may file an answer, and waive or fail 
to request a hearing, without waiving the requirement for findings of 
fact and conclusions of law or the right to seek review by the FERC in 
accordance with the provisions established by the FERC. At the time an 
answer is filed, the applicant or recipient may also submit written 
information or argument for the record if he/she does not request a 
hearing.
    (c) An answer or stipulation may consent to the entry of an order in 
substantially the form set forth in the notice of opportunity for 
hearing. The order may be entered by the General Counsel or his/her 
designee. The consent of the applicant or recipient to the entry of an 
order shall constitute a waiver by him/her of a right to:
    (1) A hearing under Sec. 902 of title IX of the Education Amendments 
of 1972, Section 602 of title VI of the Civil Rights Act of 1964, 
Section 16, Section 401 and Sec. 1040.113;
    (2) Findings of fact and conclusions of law; and
    (3) Seek review by the FERC.
    (d) The failure of an applicant or recipient to file an answer 
within the period prescribed or, if the applicant or recipient requests 
a hearing, his failure to appear at the hearing shall constitute a 
waiver by him/her of a right to:
    (1) A hearing under Section 902 of title IX of the Education 
Amendments of 1972, Section 602 of title VI of the Civil Rights Act of 
1964, Section 16, Section 401, and Sec. 1040.113;
    (2) Conclusions of law; and
    (3) Seek review by the FERC.

In the event of such a waiver, the Secretary or a designee may find the 
facts on the basis of the record available and enter an order in 
substantially the form set forth in the notice of opportunity for 
hearing.
    (e) An order entered in accordance with paragraph (c) or (d) of this 
section shall constitute the final decision of DOE unless the FERC, 
within forty-five (45) days after entry of the order, issues a 
subsequent decision which

[[Page 757]]

shall then constitute the final decision of DOE.
    (f) A copy of an order entered by the FERC official shall be mailed 
to the applicant or recipient and to the complainant, if any.



Sec. 1040.122  Request for hearing or review.

    Whenever an applicant or recipient requests a hearing or review in 
accordance with Sec. 1040.121(a)(1) or (b), the DOE General Counsel or 
his/her designee shall submit such request along with other appropriate 
documents to the FERC.



Sec. 1040.123  Consolidated or joint hearings.

    In cases in which the same or related facts are asserted to 
constitute noncompliance with this part with respect to two or more 
programs to which this part applies or noncompliance with this part and 
the regulations of one or more other Federal departments or agencies 
issued to implement the requirements of the laws cited in this part, the 
Secretary or a designee, in coordination with FERC may, by agreement 
with other departments or agencies, where applicable, provide for the 
conduct of consolidated or joint hearings and for the application to 
such hearings of rules of procedure not inconsistent with this part. 
Final decision in such cases, insofar as programs subject to this part 
are concerned, shall be made in accordance with procedures established 
by the FERC.



Sec. 1040.124  Responsibility of the Federal Energy Regulatory Commission.

    The FERC has authority under section 402(b) of the DOE Organization 
Act, Pub. L. 95-91, to promulgate regulations regarding the conduct of 
hearings to deny or terminate Federal financial assistance. Rules for 
conduct of hearings will be published by the FERC and will be placed in 
title 18 CFR.

                             Judicial Review



Sec. 1040.131  Judicial review.

    Final DOE actions taken under this part to withhold or terminate 
Federal financial assistance are subject to judicial review under the 
following laws:
    (a) Title VI--Section 603 of the Civil Rights Act of 1964;
    (b) Title IX--Section 903 of the Education Amendments of 1972;
    (c) Section 16, Section 401, Section 504--Pub. L. 89-554, 5 U.S.C. 
702;
    (d) Section 419 and Section 420 of the Energy Conservation and 
Production Act of 1976, as amended.

Appendix A to Part 1040--Federal Financial Assistance of the Department 
                  of Energy to Which This Part Applies

    1. Access permits. Atomic Energy Act of 1954, as amended, Sections 
1, 2, 3 and 161(i), Public Law 83-703; 68 Stat. 919; 42 U.S.C. 2011-13, 
2201; and Title I Section 104(c) of the Energy Reorganization Act of 
1974, Public Law 93-438; 88 Stat. 1237; 42 U.S.C. 5814; Department of 
Energy Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    2. Motion pictures film libraries. Atomic Energy Act of 1954, as 
amended, Public Law 83-703, Sections 3 and 141(b), (68 Stat. 919), 42 
U.S.C. 2013 and 2161; the Energy Reorganization Act of 1974, Public Law 
93-438, Title I, Sections 103 and 107, (88 Stat. 1240), 42 U.S.C. 5817; 
Department of Energy Organization Act, Public Law 95-91, Title I, 
Section 102, and Title III, Section 301, (19 Stat. 565), 42 U.S.C. 7101; 
the National Energy Extension Service Act, Title V, Public Law 95-39, 
(91 Stat. 191), 42 U.S.C. 7001.
    3. Granting of patent licenses. Atomic Energy Act of 1954, as 
amended, Sections 156 and 161(g); Public Law 83-703; 68 Stat. 919, 42 
U.S.C. 2186 and 2201; Federal Nonnuclear Energy Research and Development 
Act of 1974; Section 9(f)(g)(h); Public Law 93-577; 88 Stat. 1887; 42 
U.S.C. 5908(f)(g)(h); Department of Energy Organization Act, 42 U.S.C. 
7101; Public Law 95-91.
    4. University Laboratory Cooperative Program. Atomic Energy Act of 
1954, as amended, Section 31 (a) and (b); Public Law 83-703; 68 Stat. 
919; 42 U.S.C. 2051; and Title I, Section 107, of the Energy 
Reorganization Act of 1974; Public Law 93-438; 88 Stat. 1240; 42 U.S.C. 
5817; Department of Energy Organization Act, 42 U.S.C. 7101; Public Law 
95-91.
    5. Facility training institutes, short courses, and workshops on 
energy and environmental subjects. Atomic Energy Act of 1954, as 
amended, Section 31 (a) and (b); Public Law 83-703; 68 Stat. 919; 42 
U.S.C. 2051; and Title I, Section 107, of the Energy Reorganization Act 
of 1974; 42 U.S.C. 7101; Public Law 93-438; 88 Stat. 1240; 42 U.S.C. 
5817; Department of Energy Organization Act, 42 U.S.C. 7101; Public Law 
95-91.

[[Page 758]]

    6. Reactor sharing and fuel assistance. Atomic Energy Act of 1954, 
as amended, Section 31 (a) and (b), Public Law 83-703; 68 Stat. 919; 42 
U.S.C. 2051; and Title I, Section 107, of the Energy Reorganization Act 
of 1974; Public Law 93-438, 88 Stat. 1240; 42 U.S.C. 5817; Department of 
Energy Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    7. Traineeships for graduate students in energy related fields. 
Atomic Energy Act of 1954, as amended, Sections 31 (a) (b); Public Law 
83-703; 68 Stat. 919; 42 U.S.C. 2051; and Title I, Section 107, of the 
Energy Reorganization Act of 1974; Public Law 93-458; 88 Stat. 1240; 42 
U.S.C. 5817; Public Law 93-409, Section 12(a); Public Law 94-163, 
Section 337; Public Law 93-577, Section 4(d); Public Law 93-275, Section 
5; Public Law 95-39, Title V, Section 502(7); Department of Energy 
Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    8. Energy related laboratory equipment grants. Atomic Energy Act of 
1954, as amended, Section 31 (a) and (b); Public Law 83-703; 68 Stat. 
919; 42 U.S.C. 2051; and Title I, Section 107, of the Energy 
Reorganization Act of 1974; Public Law 93-438; 88 Stat. 1240; 42 U.S.C. 
5817; Department of Energy Organization Act, 42 U.S.C. 7101; Public Law 
95-91.
    9. Information services exhibits, public speakers publications, 
reference and analysis. Atomic Energy Act of 1954, as amended, Section 3 
and 141b; Public Law 83-703; 68 Stat. 919; 42 U.S.C. 2013 and 2161; and 
Title I, Section 107, of the Energy Reorganization Act of 1974; Public 
Law 93-438; 88 Stat. 1240; 42 U.S.C. 5817; Department of Energy 
Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    10. Payments in lieu of property taxes. Atomic Energy Act of 1954, 
as amended, Section 168; Public Law 83-703; 68 Stat. 919; 42 U.S.C. 
2208; and Title I, Section 107, of the Energy Reorganization Act of 
1974; Public Law 93-438; 88 Stat. 1240; 42 U.S.C. 5817; Department of 
Energy Organization Act; 42 U.S.C. 7101; Public Law 95-91.
    11. Radiological emergency assistance. Atomic Energy Act of 1954, as 
amended, Public Law 83-703; 68 Stat. 919; 42 U.S.C. 2011 et seq.; and 
Title I, Section 107, of the Energy Reorganization Act of 1974; Public 
Law 93-438; 88 Stat. 1240; 42 U.S.C. 5817; Department of Energy 
Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    12. Nuclear industry seminars. Atomic Energy Act of 1954, as 
amended, Section 141(b); Public Law 83-703; 68 Stat. 919; 42 U.S.C. 
2161, and Title I, Section 107, of the Energy Reorganization Act of 
1974; Public Law 93-438, 88 Stat. 1240; 42 U.S.C. 5817; Department of 
Energy Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    13. Work experience. Atomic Energy Act of 1954, as amended, Section 
3, Public Law 83-703; 68 Stat. 919; 42 U.S.C. 2013; and Title I, Section 
107, of the Energy Reorganization Act of 1974; Public Law 93-438; 88 
Stat. 1240; 42 U.S.C. 5817; Department of Energy Organization Act; 42 
U.S.C. 7101; Public Law 95-91.
    14. Citizens: Workshops. Atomic Energy Act of 1954, as amended, 
Public Law 83-703, Section 3 and 141(b), 68 Stat. 919; 42 U.S.C. 2013 
and 2161; the Energy Reorganization Act of 1974; Public Law 93-438, 
Title I, Section 103 and 107, 88 Stat. 1240; 42 U.S.C. 5817, Department 
of Energy Organization Act, Public Law 95-91, Title I, Section 102, and 
Title III, Section 301, 91 Stat. 565; 42 U.S.C. 7101; the National 
Energy Extension Service Act, Title V, Public Law 95-39, 91 Stat. 191; 
42 U.S.C. 7001.
    15. Research and development in energy conservation. Atomic Energy 
Act of 1954, as amended, Section 31; Public Law 83-703; 68 Stat. 919; 42 
U.S.C. 2051; and Title I, Section 107, of the Energy Reorganization Act 
of 1974; Public Law 93-438; 88 Stat. 1240; Department of Energy 
Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    16. Energy related inventions. Section 14 of the Federal Non-Nuclear 
Energy Research and Development Act of 1974; Public Law 93-577; 68 Stat. 
1894; 42 U.S.C. 5913; Department of Energy Organization Act, 42 U.S.C. 
7101; Public Law 95-91.
    17. Research and development fission, fossil, solar, geothermal, 
electric and storage systems, magnetic fusion. Amendments to the Energy 
Reorganization Act of 1974 and the Atomic Energy Act of 1954; Department 
of Energy Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    18. Energy Information Administration Clearinghouse (EIAC). 
Department of Energy Organization Act, Section 205; Public Law 95-91.
    19. National Energy Information Center (NEIC). Federal Energy 
Administration Act of 1974, as amended, Section 20(a)(4); Public Law 93-
175; 15 U.S.C. 779; Department of Energy Organization Act, Section 301; 
Public Law 95-91.
    20. Grants for Offices of Consumer Services. Title II, Section 205 
of the Energy Conservation and Production Act, Public Law 94-385; 
Department of Energy Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    21. State Energy Conservation Program. Title III, Sections 361-366, 
Part C of the Energy Policy and Conservation Act, Public Law 94-163; 42 
U.S.C. 6321-6326; Department of Energy Organization Act, 42 U.S.C. 7101; 
Public Law 95-91.
    22. Weatherization Assistance Program for low income persons. Title 
IV, Part A of the Energy Conservation and Production Act, Public Law 94-
385; 42 U.S.C. 6861-6870; Department of Energy Organization Act, 42 
U.S.C. 7101; Public Law 95-91.
    23. Supplemental State Energy Conservation Program. Title IV, 
Section 432(a), Part B of the Energy Conservation and Production Act of 
1976, Public Law 94-385; 42 U.S.C. 6801 et seq.; Department of Energy 
Organization Act, 42 U.S.C. 7101; Public Law 95-91.

[[Page 759]]

    24. Public education in energy. Atomic Energy Act of 1954, as 
amended, Sections 31(a) and 31(b); Public Law 83-703; 68 Stat. 919; 42 
U.S.C. 2051; and Title I, Section 107 of the Energy Reorganization Act 
of 1974; Public Law 93-458; 88 Stat. 1240; 42 U.S.C. 5817; Public Law 
93-409, Section 12(a); Public Law 94-163, Section 337; Public Law 93-
577, Section 4(d); Public Law 93-275, Section 5; Public Law 95-39, Title 
V, Section 502(7); Department of Energy Organization Act, 42 U.S.C. 
7101; Public Law 95-91.
    25. Special studies and projects in energy education and training. 
Atomic Energy Act of 1954, as amended, Sections 31(a) and 31(b); Public 
Law 83-703; 68 Stat. 919; 42 U.S.C. 2051; and Title I, Section 107 of 
the Energy Reorganization Act of 1974; Public Law 93-458; 88 Stat. 1240; 
42 U.S.C. 5817; Public Law 93-409, Section 12(a); Public Law 93-163, 
Section 337; Public Law 93-577, Section 4(d); Public Law 93-275, Section 
5; Public Law 95-39, Title V, Section 502(7).
    26. Research and development in biomedical and environmental 
sciences. Atomic Energy Act of 1954, as amended, Section 31; Public Law 
83-703; 68 Stat. 919; 42 U.S.C. 2051; Title I, Section 107, of the 
Energy Reorganization Act of 1974; Public Law 93-438; 88 Stat. 1240; 42 
U.S.C. 5817; Department of Energy Organization Act, 42 U.S.C. 7101; 
Public Law 95-91.
    27. Preface (Pre-Freshman and Cooperative Education for Minorities 
In Engineering). Atomic Energy Act of 1954, as amended, Sections 31(a) 
and 31(b); Public Law 83-703; 68 Stat. 919; 42 U.S.C. 2051; and Title I, 
Section 107 of the Energy Reorganization Act of 1974; Public Law 93-458; 
88 Stat. 1240; 42 U.S.C. 5817; Department of Energy Organization Act, 
Public Law 95-91, Sections 102 and 203; Public Law 93-409, Section 
12(a); Public Law 94-163, Section 337; Public Law 93-577, Section 4(d); 
Public Law 93-275, Section 5; Public Law 95-39, Title V, Section 502(7).
    28. Materials allocation. Section 104, Energy Policy and 
Conservation Act (EPCA), Section 101(c) Defense Production Act of 1950, 
as amended (DPA), 50 U.S.C. 2071(c), Section 7, Executive Order 11912, 
April 13, 1976. Defense Mobilization Order No. 13, September 22, 1976, 
41 FR 43720; Department of Commerce, Bureau of Domestic Commerce, 
Delegation 4, 41 FR 52331, MA Regulations 10 CFR 216; Department of 
Energy Organization Act, 42 U.S.C. 7101; Public Law 95-91.
    29. Basic energy sciences, high energy and nuclear physics, and 
advanced technology and assessment projects. Atomic Energy Act of 1954, 
as amended, Section 31; Public Law 83-703; 68 Stat. 919; 42 U.S.C. 2051; 
and Title I, Section 107, of the Energy Reorganization Act of 1974; 
Public Law 93-438; 88 Stat. 1240; 42 U.S.C. 5817; Department of Energy 
Organization Act; 42 U.S.C. 7101; Public Law 95-91.
    30. Energy Extension Service. National Energy Extension Service Act; 
Title V, Public Law 95-39; Department of Energy Organization Act, 42 
U.S.C. 7101; Public Law 95-91.



PART 1041--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY THE DEPARTMENT OF ENERGY--Table of Contents




Sec.
1041.101  Purpose.
1041.102  Application.
1041.103  Definitions.
1041.104--1041.109  [Reserved]
1041.110  Self-evaluation.
1041.111  Notice.
1041.112--1041.129  [Reserved]
1041.130  General prohibitions against discrimination.
1041.131--1041.139  [Reserved]
1041.140  Employment.
1041.141--1041.148  [Reserved]
1041.149  Program accessibility: Discrimination prohibited.
1041.150  Program accessibility: Existing facilities.
1041.151  Program accessibility: New construction and alterations.
1041.152--1041.159  [Reserved]
1041.160  Communications.
1041.161--1041.169  [Reserved]
1041.170  Compliance procedures.
1041.171--1041.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 4574, Feb. 5, 1986. Redesignated at 52 FR 1902, Jan. 
16, 1987, unless otherwise noted.



Sec. 1041.101  Purpose.

    This part effectuates section 119 of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978, which amended section 504 of the Rehabilitation Act of 1973 to 
prohibit discrimination on the basis of handicap in programs or 
activities conducted by Executive agencies or the United States Postal 
Service.



Sec. 1041.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec. 1041.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.

[[Page 760]]

    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, telecommunications devices and other similar services 
and devices. Auxiliary aids useful for persons with impaired hearing 
include telephone handset amplifiers, telephones compatible with hearing 
aids, telecommunication devices for deaf persons (TDD's), interpreters, 
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    As used in this definition, the phrase:
    (l) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one of more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addition and 
alcholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in subparagraph (1) of 
this definition but is treated by the agency as having such an 
impairment.
    Qualified handicapped person means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who meets the essential eligibility 
requirements and who can achieve the purpose of the program or activity 
without modifications in the program or activity that the agency can 
demonstrate would result in a fundamental alteration in its nature; or
    (2) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity.
    (3) Qualified handicapped person is defined for purposes of 
employment in 29 CFR 1613.702(f), which is made applicable to this part 
by Sec. 1041.140.

[[Page 761]]

    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used 
in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.
[51 FR 4574, Feb. 5, 1986; 51 FR 7543, MAr. 5, 1986. Redesignated at 52 
FR 1902, Jan. 16, 1987]



Secs. 1041.104--1041.109  [Reserved]



Sec. 1041.110  Self-evaluation.

    (a) The agency shall, by April 9, 1987, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including handicapped persons or organizations representing handicapped 
persons, to participate in the self-evaluation process by submitting 
comments (both oral and written).
    (c) The agency shall, until three years following the completion of 
the self-evaluation, maintain on file and make available for public 
inspections:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 1041.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this regulation.



Secs. 1041.112--1041.129  [Reserved]



Sec. 1041.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualfied handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of

[[Page 762]]

administration the purpose or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited by Federal statute or Executive order to a different 
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.



Secs. 1041.131--1041.139  [Reserved]



Sec. 1041.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613, shall apply to employment in federally conducted programs or 
activities.



Secs. 1041.141--1041.148  [Reserved]



Sec. 1041.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1041.150, no qualified 
handicapped person shall, because the agency's facilities are 
inaccessible to or unusable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1041.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by handicapped persons; or
    (2) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1041.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
handicapped persons receive the benefits and services of the program or 
activity.
    (b) Methods. The agency may comply with the requirements of this 
section

[[Page 763]]

through such means as redesign of equipment, reassignment of services to 
accessible buildings, assignment of aides to beneficiaries, home visits, 
delivery of services at alternate accessible sites, alteration of 
existing facilities and construction of new facilities, use of 
accessible rolling stock, or any other methods that result in making its 
programs or activities readily accessible to and usable by handicapped 
persons. The agency is nor required to make structural changes in 
existing facilities where other methods are effective in achieving 
compliance with this section. The agency, in making alterations to 
existing buildings, shall meet accessibility requirements to the extent 
compelled by the Architectural Barriers Act of 1968, as amended (42 
U.S.C. 4151-4157), and any regulations implementing it. In choosing 
among available methods for meeting the requirements of this section, 
the agency shall give priority to those methods that offer programs and 
activities to qualified handicapped persons in the most integrated 
setting appropriate.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by June 6, 1986, except that 
where structural changes in facilities are undertaken, such changes 
shall be made by April 7, 1989, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by October 7, 1986, a transition plan setting 
forth the steps necessary to complete such changes. The agency shall 
provide an opportunity to interested persons, including handicapped 
persons or organizations representing handicapped persons, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.
[51 FR 4574, Feb. 5, 1986; 51 FR 7543, Mar. 5, 1986. Redesignated at 52 
FR 1902, Jan. 16, 1987]



Sec. 1041.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act (42 U.S.C. 4151-4157), as established in 41 
CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Secs. 1041.152--1041.159  [Reserved]



Sec. 1041.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
handicapped person.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used.

[[Page 764]]

    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1041.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity, 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, handicapped persons receive the benefits and services 
of the program or activity.



Secs. 1041.161--1041.169  [Reserved]



Sec. 1041.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Manager of Federally Assisted Programs shall be responsible 
for coordinating implementing of this section. Complaints may be sent to 
Director of Equal Opportunity, U.S. Department of Energy, Room 4B-112, 
1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-2218.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), or section 502 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 792), is not readily 
accessible to and usable by handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found;
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1041.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt

[[Page 765]]

of the request. If the head of the agency determines that additional 
information is needed from the complainant, he or she shall have 60 days 
from the date of receipt of the additional information to make his or 
her determination on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.
[51 FR 4574, Feb. 5, 1986. Redesignated and amended at 52 FR 1902, Jan. 
16, 1987]



Secs. 1041.171--1041.999  [Reserved]



PART 1045--NUCLEAR CLASSIFICATION AND DECLASSIFICATION (Eff. 6-29-98)--Table of Contents




   Subpart A--Program Management of the Restricted Data and Formerly 
                  Restricted Data Classification System

Sec.
1045.1  Purpose and scope.
1045.2  Applicability.
1045.3  Definitions.
1045.4  Responsibilities.
1045.5  Sanctions.
1045.6  Openness Advisory Panel.
1045.7  Suggestions or complaints.
1045.8  Procedural exemptions.
1045.9  RD classification performance evaluation.

  Subpart B--Identification of Restricted Data and Formerly Restricted 
                            Data Information

1045.10  Purpose and scope.
1045.11  Applicability.
1045.12  Authorities.
1045.13  Classification prohibitions.
1045.14  Process for classification and declassification of restricted 
          data and formerly restricted data information.
1045.15  Classification and declassification presumptions.
1045.16  Criteria for evaluation of restricted data and formerly 
          restricted data information.
1045.17  Classification levels.
1045.18  Newly generated information in a previously declassified 
          subject area.
1045.19  Accountability for classification and declassification 
          determinations.
1045.20  Ongoing call for declassification proposals.
1045.21  Privately generated restricted data.
1045.22  No comment policy.

Subpart C--Generation and Review of Documents Containing Restricted Data 
                      and Formerly Restricted Data

1045.30  Purpose and scope.
1045.31  Applicability.
1045.32  Authorities.
1045.33  Appointment of restricted data management official.
1045.34  Designation of restricted data classifiers.
1045.35  Training requirements.
1045.36  Reviews of agencies with access to restricted data and formerly 
          restricted data.
1045.37  Classification guides.
1045.38  Automatic declassification prohibition.
1045.39  Challenging classification and declassification determinations.
1045.40  Marking requirements.
1045.41  Use of classified addendums.
1045.42  Mandatory and Freedom of Information Act reviews for 
          declassification of restricted data and formerly restricted 
          data documents.
1045.43  Systematic review for declassification.
1045.44  Classification review prior to public release.
1045.45  Review of unmarked documents with potential restricted data or 
          formerly restricted data.
1045.46  Classification by association or compilation.

    Subpart D--Executive Order 12958: ``Classified National Security 
             Information'' Requirements Affecting the Public

1045.50  Purpose and scope.
1045.51  Applicability.
1045.52  Mandatory declassification review requests.
1045.53  Appeal of denial of mandatory declassification review requests.

    Authority: 42 U.S.C. 2011; E.O. 12958, 60 FR 19825, 3 CFR, 1995 
Comp., p. 333.

    Source: 62 FR 68509, Dec. 31, 1997, unless otherwise noted.

    Effective Date Note: At 62 FR 68509, Dec. 31, 1997, part 1045 was 
revised, effective June 29, 1998. For the convenience of the user, part 
1045 remaining in effect until June 29, 1998, follows the text of this 
new part.

[[Page 766]]



   Subpart A--Program Management of the Restricted Data and Formerly 
                  Restricted Data Classification System



Sec. 1045.1  Purpose and scope.

    This subpart establishes responsibilities associated with this part, 
describes the Openness Advisory Panel, defines key terms, describes 
sanctions related to violation of the policies and procedures in this 
part, and describes how to submit suggestions or complaints concerning 
the Restricted Data classification and declassification program, and how 
to request procedural exceptions.



Sec. 1045.2  Applicability.

    This subpart applies to--
    (a) Any person with authorized access to RD or FRD;
    (b) Any agency with access to RD or FRD; and
    (c) Any person who might generate information determined to be RD or 
FRD.



Sec. 1045.3  Definitions.

    As used in this part:
    Agency means any ``Executive Agency'' as defined in 5 U.S.C. 105; 
any ``Military Department'' as defined in 5 U.S.C. 102; and any other 
entity within the executive branch that comes into possession of RD or 
FRD information or documents.
    Atomic Energy Act means the Atomic Energy Act of 1954, as amended 
(42 U.S.C. 2011 et seq.).
    Authorized Holder means a person with the appropriate security 
clearance required to have access to classified information and the need 
to know the information in the performance of Government-approved 
activities.
    Automatic Declassification means the declassification of information 
or documents based solely upon:
    (1) The occurrence of a specific date or event as determined by the 
classifier; or
    (2) The expiration of a maximum time frame for duration of 
classification established under Executive Order 12958.
    Classification means the act or process by which information is 
determined to be classified information.
    Classification Guide means a written record of detailed instructions 
as to whether specific information is classified, usually concerning a 
system, plan, project, or program. It identifies information to be 
classified and specifies the level (and duration for NSI only) of 
classification assigned to such information. Classification guides are 
the primary basis for reviewing documents to determine whether they 
contain classified information.
    Classification Level means one of three designators:
    (1) Top Secret is applied to information (RD, FRD, or NSI), the 
unauthorized disclosure of which reasonably could be expected to cause 
exceptionally grave damage to the national security that the appropriate 
official is able to identify or describe.
    (2) Secret is applied to information (RD, FRD, or NSI), the 
unauthorized disclosure of which reasonably could be expected to cause 
serious damage to the national security that the appropriate official is 
able to identify or describe.
    (3) Confidential. (i) For NSI, Confidential is applied to 
information, the unauthorized disclosure of which reasonably could be 
expected to cause damage to the national security that the appropriate 
official is able to identify or describe.
    (ii) For RD and FRD, Confidential is applied to information, the 
unauthorized disclosure of which could reasonably be expected to cause 
undue risk to the common defense and security that the appropriate 
official is able to identify or describe.
    Classified Information means:
    (1) Information classified as RD or FRD under the Atomic Energy Act; 
or
    (2) Information determined to require protection against 
unauthorized disclosure under Executive Order (E.O.) 12958 or prior 
Executive Orders (also identified as National Security Information or 
NSI).
    Contractor means any industrial, educational, commercial or other 
entity, grantee or licensee at all tiers, including an individual, that 
has executed an

[[Page 767]]

agreement with the Federal Government for the purpose of performing 
under a contract, license or other agreement.
    Declassification means a determination by appropriate authority that 
information or documents no longer require protection, as classified 
information, against unauthorized disclosure in the interests of 
national security.
    Department or DOE means Department of Energy.
    Director of Declassification means the Department of Energy 
Director, Office of Declassification, or any person to whom the 
Director's duties are delegated. The Director of Declassification is 
subordinate to the Director of Security Affairs.
    Director of Security Affairs means the Department of Energy 
Director, Office of Security Affairs, or any person to whom the 
Director's duties are delegated.
    Document means the physical medium on or in which information is 
recorded, or a product or substance which contains or reveals 
information, regardless of its physical form or characteristics.
    Formerly Restricted Data (FRD) means classified information jointly 
determined by DOE and the DoD to be related primarily to the military 
utilization of nuclear weapons and removed (by transclassification) from 
the RD category pursuant to section 142(d) of the Atomic Energy Act.
    Government means the executive branch of the Federal Government of 
the United States.
    Government Information means information that is owned by, produced 
by or for, or is under the control of the U.S. Government.
    Information means facts, data, or knowledge itself, as opposed to 
the medium in which it is contained.
    Interagency Security Classification Appeals Panel (ISCAP) means a 
panel created pursuant to Executive Order 12958 to perform functions 
specified in that order with respect to National Security Information.
    National Security means the national defense or foreign relations of 
the United States.
    National Security Information (NSI) means information that has been 
determined pursuant to Executive Order 12958 or prior Executive Orders 
to require protection against unauthorized disclosure and is marked to 
indicate its classification status when in document form. NSI is 
referred to as ``defense information'' in the Atomic Energy Act.
    Nuclear weapon means atomic weapon.
    Person means:
    (1) Any individual, contractor, corporation, partnership, firm, 
association, trust, estate, public or private institution, group, 
Government agency, any State, or any political subdivision thereof, or 
any political entity within a State; and
    (2) Any legal successor, representative, agent, or agency of the 
foregoing.
    Portion Marking means the application of certain classification 
markings to individual words, phrases, sentences, paragraphs, or 
sections of a document to indicate their specific classification level 
and category.
    Restricted Data (RD) means a kind of classified information that 
consists of all data concerning the following, but not including data 
declassified or removed from the RD category pursuant to section 142 of 
the Atomic Energy Act:
    (1) Design, manufacture, or utilization of atomic weapons;
    (2) Production of special nuclear material; or
    (3) Use of special nuclear material in the production of energy.
    Restricted Data Classifier means an individual who derivatively 
classifies RD or FRD documents. Within the DoD, RD classifiers may also 
declassify FRD documents.
    Restricted Data Management Official means an individual appointed by 
any agency with access to RD and FRD who is responsible for managing the 
implementation of this part within that agency or any person to whom 
these duties are delegated. This person may be the senior agency 
official required by E.O. 12958.
    Secretary means the Secretary of Energy.
    Source Document means a classified document, other than a 
classification

[[Page 768]]

guide, from which information is extracted for inclusion in another 
document. The classification of the information extracted is determined 
by the classification markings shown in the source document.
    Special Nuclear Material means plutonium, uranium enriched in the 
isotope 233 or in the isotope 235, and any other material which the 
Secretary determines to be special nuclear material pursuant to the 
Atomic Energy Act.



Sec. 1045.4  Responsibilities.

    (a) The DOE Director of Declassification shall:
    (1) Manage the Government-wide system for the classification and 
declassification of RD and FRD in accordance with the Atomic Energy Act;
    (2) In coordination with the DoD, develop regulations to implement 
the RD and FRD classification system;
    (3) Determine whether nuclear-related information is RD;
    (4) Oversee agency implementation of the RD and FRD classification 
system to ensure compliance with this part;
    (5) Review agency implementing policies and conduct on-site reviews 
of each agency's program established under this part;
    (6) Prepare and distribute classification guides concerning RD and 
FRD and review such guides developed by any agency;
    (7) Consider and take action on complaints and suggestions from any 
person with respect to administration of this program; and
    (8) Periodically meet with interested members of the public to 
solicit input for the classification and declassification program.
    (b) The DOE Director of Security Affairs shall:
    (1) Declassify RD which may be published without undue risk to the 
common defense and security;
    (2) Jointly with the DoD, determine which information in the RD 
category relating primarily to the miliary utilization of nuclear 
weapons may be declassified or placed into the FRD category; and
    (3) Jointly with the DoD, declassify FRD which may be published 
without undue risk to the common defense and security.
    (c) The DoD jointly with the DOE shall:
    (1) Determine which information in the RD category relating 
primarily to the military utilization of nuclear weapons may be 
declassified or placed into the FRD category;
    (2) Ensure that classification guides for FRD and RD relating 
primarily to the military utilization of nuclear weapons are prepared; 
and
    (3) Declassify FRD and RD relating primarily to the military 
utilization of nuclear weapons which may be published without undue risk 
to the common defense and security.
    (d) The Nuclear Regulatory Commission (NRC) shall:
    (1) Jointly with the DOE, develop classification guides for programs 
over which both agencies have cognizance; and
    (2) Ensure the review and proper classification of RD by RD 
classifiers under this part, which is generated by the NRC or by its 
licensed or regulated facilities and activities.
    (e) Heads of Agencies with access to RD and FRD shall:
    (1) Ensure that RD and FRD are classified in such a manner as to 
assure the common defense and security in accordance with the policies 
established in this part;
    (2) Designate an RD management official to direct and administer the 
RD classification program within the agency; and
    (3) Promulgate implementing directives.
    (f) Agency RD management officials shall:
    (1) Jointly with the DOE, develop classification guides for programs 
over which both agencies have cognizance;
    (2) Ensure that agency and contractor personnel who generate RD and 
FRD documents have access to any classification guides needed;
    (3) Ensure that persons with access to RD and FRD are trained on the 
authorities required to classify and declassify RD and FRD information 
and documents and on handling procedures and that RD classifiers are 
trained on the procedures for classifying, declassifying, marking and 
handling RD and FRD information and documents; and

[[Page 769]]

    (4) Cooperate and provide information as necessary to the DOE 
Director of Declassification to fulfill responsibilities under this 
part.



Sec. 1045.5  Sanctions.

    (a) Knowing, willful, or negligent action contrary to the 
requirements of this part which results in the misclassification of 
information may result in appropriate sanctions. Such sanctions may 
range from administrative sanctions to civil or criminal penalties, 
depending on the nature and severity of the action as determined by 
appropriate authority, in accordance with applicable laws.
    (b) Other violations of the policies and procedures contained in 
this part may be grounds for administrative sanctions as determined by 
appropriate authority.



Sec. 1045.6  Openness Advisory Panel.

    The DOE shall maintain an Openness Advisory Panel, in accordance 
with the Federal Advisory Committee Act, to provide the Secretary with 
independent advice and recommendations on Departmental openness 
initiatives, including classification and declassification issues that 
affect the public.



Sec. 1045.7  Suggestions or complaints.

    (a) Any person who has suggestions or complaints regarding the 
Department's classification and declassification policies and procedures 
may direct them in writing to the Openness Coordinator, Department of 
Energy, Office of Declassification, 19901 Germantown Road, Germantown, 
Maryland 20874-1290.
    (b) Such letters should include a description of the issue or 
problem, the suggestion or complaint, all applicable background 
information, and an address for the response.
    (c) DOE will make every effort to respond within 60 days.
    (d) Under no circumstances shall persons be subject to retribution 
for making a suggestion or complaint regarding the Department's 
classification and declassification policies or programs.



Sec. 1045.8  Procedural exemptions.

    (a) Exemptions to the procedural provisions of this part may be 
granted by the DOE Director of Declassification.
    (b) A request for an exemption shall be made in writing to the DOE 
Director of Declassification and shall provide all relevant facts, 
justification, and a proposed alternate procedure.



Sec. 1045.9  RD classification performance evaluation.

    (a) Heads of agencies shall ensure that RD management officials and 
those RD classifiers whose duties involve the classification or 
declassification of significant numbers of RD or FRD documents shall 
have their personnel performance evaluated with respect to 
classification activities.
    (b) Procedures for the evaluation under paragraph (a) of this 
section may be the same as those in place for NSI related classification 
activities as required by Executive Order 12958.



  Subpart B--Identification of Restricted Data and Formerly Restricted 
                            Data Information



Sec. 1045.10  Purpose and scope.

    (a) This subpart implements sections 141 and 142 (42 U.S.C. 2161 and 
2162) of the Atomic Energy Act, which provide for Government-wide 
policies and procedures concerning the classification and 
declassification of RD and FRD information.
    (b) This subpart establishes procedures for classification 
prohibitions for RD and FRD, describes authorities and procedures for 
identifying RD and FRD information, and specifies the policies and 
criteria DOE shall use in determining if nuclear-related information is 
RD or FRD.



Sec. 1045.11  Applicability.

    This subpart applies to--
    (a) Any person with authorized access to RD or FRD;
    (b) Any agency with access to RD or FRD; and
    (c) Any person who might generate information determined to be RD or 
FRD.

[[Page 770]]



Sec. 1045.12  Authorities.

    (a) The DOE Director of Declassification may determine whether 
nuclear-related information is RD.
    (b) Except as provided in paragraph (c) of this section, the DOE 
Director of Security Affairs may declassify RD information.
    (c) The DOE Director of Security Affairs, jointly with the DoD, may 
determine which information in the RD category relating primarily to the 
military utilization of nuclear weapons may be declassified or placed 
into the FRD category.
    (d) The DOE Director of Security Affairs jointly with the DoD may 
declassify FRD information.



Sec. 1045.13  Classification prohibitions.

    In no case shall information be classified RD or FRD in order to:
    (a) Conceal violations of law, inefficiency, or administrative 
error;
    (b) Prevent embarrassment to a person, organization, or Agency;
    (c) Restrain competition;
    (d) Prevent or delay the release of information that does not 
require protection for national security or nonproliferation reasons;
    (e) Unduly restrict dissemination by assigning an improper 
classification level; or
    (f) Prevent or delay the release of information bearing solely on 
the physical environment or public or worker health and safety.



1045.14  Process for classification and declassification of restricted data and formerly restricted data information.

    (a) Classification of Restricted Data. (1) Submission of Potential 
RD for Evaluation. Any authorized holder who believes he or she has 
information which may be RD shall submit it to an RD classifier for 
evaluation. The RD classifier shall follow the process described in this 
paragraph whenever he or she is unable to locate guidance in a 
classification guide that can be applied to the information. The RD 
classifier shall forward the information to the DOE Director of 
Declassification via their local classification or security office. The 
DOE Director of Declassification shall determine whether the information 
is RD within 90 days of receipt by doing the following:
    (i) Determine whether the information is already classified RD under 
current classification guidance; or
    (ii) If it is not already classified, determine if the information 
concerns the design, manufacture, or utilization of nuclear weapons; the 
production of special nuclear material; or the use of special nuclear 
material in the production of energy; and
    (A) Apply the criteria in Sec. 1045.16 and Sec. 1045.17 as the basis 
for determining the appropriate classification; and
    (B) Provide notification of the decision by revising applicable 
classification guides, if appropriate.
    (2) Protection of Potential RD during Evaluation. Pending a 
determination by the DOE Director of Declassification, potential RD 
submitted for evaluation by authorized holders shall be protected at a 
minimum as Confidential Restricted Data.
    (b) Declassification of Restricted Data. The DOE Director of 
Security Affairs shall apply the criteria in Sec. 1045.16 when 
determining whether RD may be declassified.
    (c) Classification of Formerly Restricted Data. The DOE Director of 
Security Affairs, jointly with the DoD, shall remove information which 
relates primarily to the military utilization of nuclear weapons from 
the RD classification category and classify it as FRD.
    (d) Declassification of Formerly Restricted Data. The DOE Director 
of Security Affairs, jointly with the DoD, shall apply the criteria in 
Sec. 1045.16 when determining whether FRD may be declassified.



Sec. 1045.15  Classification and declassification presumptions.

    (a) The DOE Directors of Declassification and Security Affairs shall 
consider the presumptions listed in paragraphs (d) and (e) of this 
section before applying the criteria in Sec. 1045.16.
    (b) Not all areas of nuclear-related information are covered by the 
presumptions.
    (c) In general, existing information listed in paragraphs (d) and 
(e) of this section has the classification status indicated. Inclusion 
of specific existing

[[Page 771]]

information in one of the presumption categories does not mean that new 
information in a category is or is not classified, but only that 
arguments to differ from the presumed classification status of the 
information should use the appropriate presumption as a starting point.
    (d) The DOE Directors of Declassification and Security Affairs shall 
presume that information in the following areas is unclassified unless 
application of the criteria in Sec. 1045.16 indicates otherwise:
    (1) Basic science: mathematics, chemistry, theoretical and 
experimental physics, engineering, materials science, biology and 
medicine;
    (2) Magnetic confinement fusion technology;
    (3) Civilian power reactors, including nuclear fuel cycle 
information but excluding technologies for uranium enrichment;
    (4) Source materials (defined as uranium and thorium and ores 
containing them);
    (5) Fact of use of safety features (e.g., insensitive high 
explosives, fire resistant pits) to lower the risks and reduce the 
consequences of nuclear weapon accidents;
    (6) Generic weapons effects;
    (7) Physical and chemical properties of uranium and plutonium, most 
of their alloys and compounds, under standard temperature and pressure 
conditions;
    (8) Nuclear fuel reprocessing technology and reactor products not 
revealing classified production rates or inventories;
    (9) The fact, time, location, and yield range (e.g., less than 20 
kilotons or 20-150 kilotons) of U.S. nuclear tests;
    (10) General descriptions of nuclear material production processes 
and theory of operation;
    (11) DOE special nuclear material aggregate inventories and 
production rates not revealing size or details concerning the nuclear 
weapons stockpile;
    (12) Types of waste products resulting from all DOE weapon and 
material production operations;
    (13) Any information solely relating to the public and worker health 
and safety or to environmental quality; and
    (14) The simple association or simple presence of any material 
(i.e., element, compound, isotope, alloy, etc.) at a specified DOE site.
    (e) The DOE Directors of Declassification and Security Affairs shall 
presume that information in the following areas is classified unless the 
application of the criteria in Sec. 1045.16 indicates otherwise:
    (1) Detailed designs, specifications, and functional descriptions of 
nuclear explosives, whether in the active stockpile or retired;
    (2) Material properties under conditions achieved in nuclear 
explosions that are principally useful only for design and analysis of 
nuclear weapons;
    (3) Vulnerabilities of U.S. nuclear weapons to sabotage, 
countermeasures, or unauthorized use;
    (4) Nuclear weapons logistics and operational performance 
information (e.g., specific weapon deployments, yields, capabilities), 
related to military utilization of those weapons required by the DoD;
    (5) Details of the critical steps or components in nuclear material 
production processes; and
    (6) Features of military nuclear reactors, especially naval nuclear 
propulsion reactors, that are not common to or required for civilian 
power reactors.



Sec. 1045.16  Criteria for evaluation of restricted data and formerly restricted data information.

    (a) The DOE Director of Declassification shall classify information 
as RD and the DOE Director of Security Affairs shall maintain the 
classification of RD (and FRD in coordination with the DoD) only if 
undue risk of damage to the common defense and security from its 
unauthorized disclosure can be identified and described.
    (b) The DOE Director of Declassification shall not classify 
information and the DOE Director of Security Affairs shall declassify 
information if there is significant doubt about the need to classify the 
information.
    (c) The DOE Directors of Declassification and Security Affairs shall 
consider the presumptions in Sec. 1045.15 (d) and (e) before applying 
the criteria in paragraph (d) of this section.

[[Page 772]]

    (d) In determining whether information should be classified or 
declassified, the DOE Directors of Declassification and Security Affairs 
shall consider the following:
    (1) Whether the information is so widely known or readily apparent 
to knowledgeable observers that its classification would cast doubt on 
the credibility of the classification system;
    (2) Whether publication of the information would assist in the 
development of countermeasures or otherwise jeopardize any U.S. weapon 
or weapon system;
    (3) Whether the information would hinder U.S. nonproliferation 
efforts by significantly assisting potential adversaries to develop or 
improve a nuclear weapon capability, produce nuclear weapons materials, 
or make other military use of nuclear energy;
    (4) Whether publication of the information would have a detrimental 
effect on U.S. foreign relations;
    (5) Whether publication of the information would benefit the public 
welfare, taking into account the importance of the information to public 
discussion and education and potential contribution to economic growth; 
and, 6) Whether publication of the information would benefit the 
operation of any Government program by reducing operating costs or 
improving public acceptance.



1045.17  Classification levels.

    (a) Restricted Data. The DOE Director of Declassification shall 
assign one of the following classification levels to RD information to 
reflect the sensitivity of the information to the national security. The 
greater the damage expected from unauthorized disclosure, the higher the 
classification level assigned to the information.
    (1) Top Secret. The DOE Director of Declassification shall classify 
RD information Top Secret if it is vital to the national security and if 
its unauthorized disclosure could reasonably be expected to cause 
exceptionally grave damage to the national security. Examples of RD 
information that warrant Top Secret classification include detailed 
technical descriptions of critical features of a nuclear explosive 
design that would enable a proliferant or nuclear power to build or 
substantially improve a nuclear weapon, information that would make 
possible the unauthorized use of a U.S. nuclear weapon, or information 
revealing catastrophic failure or operational vulnerability in a U.S. 
nuclear weapon.
    (2) Secret. The DOE Director of Declassification shall classify RD 
information as Secret if its unauthorized disclosure could reasonably be 
expected to cause serious damage to the national security, but the RD 
information is not sufficiently comprehensive to warrant designation as 
Top Secret. Examples of RD information that warrant Secret 
classification include designs for specific weapon components (not 
revealing critical features), key features of uranium enrichment 
technologies, or specifications of weapon materials.
    (3) Confidential. The DOE Director of Declassification shall 
classify RD information as Confidential if it is deemed to be of 
significant use to a potential adversary or nuclear proliferant and its 
unauthorized disclosure could reasonably be expected to cause undue risk 
to the common defense and security. Examples of RD information that 
warrant Confidential classification are the amount of high explosives 
used in nuclear weapons, gaseous diffusion design information, and 
design information for Naval reactors.
    (b) Formerly Restricted Data. The DOE Director of Declassification, 
jointly with the DoD, shall assign one of the classification levels in 
paragraph (a) of this section to FRD information to reflect its 
sensitivity to the national security.



Sec. 1045.18  Newly generated information in a previously declassified subject area.

    (a) The DOE Director of Declassification may evaluate newly 
generated specific information in a previously declassified subject area 
using the criteria in section 1045.16 and classify it as RD, if 
warranted.
    (b) The DOE Director of Declassification shall not classify the 
information in such cases if it is widely disseminated in the public 
domain.

[[Page 773]]



Sec. 1045.19  Accountability for classification and declassification determinations.

    (a) Whenever a classification or declassification determination 
concerning RD or FRD information is made, the DOE Directors of 
Declassification and Security Affairs shall be able to justify the 
determination. For FRD and RD primarily related to military utilization, 
the DOE Directors of Declassification and Security Affairs shall 
coordinate the determination and justification with the DoD. If the 
determination involves a departure from the presumptions in 
Sec. 1045.15, the justification shall include a rationale for the 
departure. Often the justification itself will contain RD or FRD 
information. In such a case, the DOE Directors of Declassification and 
Security Affairs shall ensure that a separate justification can be 
prepared which is publicly releasable. The publicly releasable 
justification shall be made available to any interested person upon 
request to the DOE Director of Declassification.
    (b) The DOE Director of Declassification shall prepare a report on 
an annual basis on the implementation of this part. This report shall be 
available to any interested person upon request to the DOE Director of 
Declassification. Requests may be submitted to the Department of Energy, 
Director of Declassification, 19901 Germantown Road, Germantown, 
Maryland 20874-1290.



Sec. 1045.20  Ongoing call for declassification proposals.

    The DOE Director of Security Affairs shall consider proposals from 
the public or agencies or contractors for declassification of RD and FRD 
information on an ongoing basis. Declassification proposals for RD and 
FRD information shall be forwarded to the Department of Energy, Director 
of Security Affairs, 1000 Independence Avenue SW, Washington, DC 20585. 
Any proposed action shall include a description of the information 
concerned and may include a reason for the request. DOE and DoD shall 
coordinate with one another concerning declassification proposals for 
FRD information.



Sec. 1045.21  Privately generated restricted data.

    (a) DOE may classify RD which is privately generated by persons not 
pursuant to Government contracts, in accordance with the Atomic Energy 
Act.
    (b) In order for information privately generated by persons to be 
classified as RD, the Secretary or Deputy Secretary shall make the 
determination personally and in writing. This authority shall not be 
delegated.
    (c) DOE shall publish a Federal Register notice when privately 
generated information is classified as RD, and shall ensure that the 
content of the notice is consistent with protecting the national 
security and the interests of the private party.



Sec. 1045.22  No comment policy.

    (a) Authorized holders of RD and FRD shall not confirm or expand 
upon the classification status or technical accuracy of classified 
information in the public domain.
    (b) Unauthorized disclosure of classified information does not 
automatically result in the declassification of that information.
    (c) If the disclosure of classified information is sufficiently 
authoritative or credible, the DOE Director of Security Affairs shall 
examine the possibility of declassification.



Subpart C--Generation and Review of Documents Containing Restricted Data 
                      and Formerly Restricted Data



Sec. 1045.30  Purpose and scope.

    This subpart specifies Government-wide classification program 
implementation requirements for agencies with access to RD and FRD, 
describes authorities and procedures for RD and FRD document 
classification and declassification, provides for periodic or systematic 
review of RD and FRD documents, and describes procedures for the 
mandatory review of RD and FRD documents. This subpart applies to all RD 
and FRD documents, regardless of

[[Page 774]]

whether they also contain National Security Information (NSI), or other 
controlled information such as ``For Official Use Only'' information or 
``Unclassified Controlled Nuclear Information.''



Sec. 1045.31  Applicability.

    This subpart applies to--
    (a) Any person with authorized access to RD or FRD;
    (b) Any agency with access to RD or FRD; and
    (c) Any person generating a document containing RD or FRD.



Sec. 1045.32  Authorities.

    (a) Classification of RD and FRD documents. (1) To the maximum 
extent practical, all RD and FRD documents shall be classified based on 
joint DOE-Agency classification guides or Agency guides coordinated with 
the DOE. When it is not practical to use classification guides, source 
documents may be used as an alternative.
    (2) Only individuals designated as RD classifiers may classify RD 
and FRD documents, except within the DoD. Within the DoD, any individual 
with access to RD and FRD who has been trained may classify RD and FRD 
documents.
    (3) RD classifiers shall classify only documents in subject areas in 
which they have programmatic expertise.
    (4) RD classifiers may upgrade or downgrade the classification level 
of RD or FRD documents in accordance with joint DOE-Agency 
classification guides or Agency guides coordinated with the DOE. When it 
is not practical to use classification guides, source documents may be 
used as an alternative.
    (b) Declassification of RD and FRD documents. (1) Only designated 
individuals in the DOE may declassify documents containing RD.
    (2) Except as provided in paragraph (b)(3) of this section, only 
designated individuals in the DOE or appropriate individuals in DoD may 
declassify documents marked as FRD in accordance with joint DoD-DOE 
classification guides or DoD guides coordinated with the DOE.
    (3) The DOE and DoD may delegate these authorities to other agencies 
and to contractors. Contractors without the delegated authority shall 
send any document marked as RD or FRD that needs to be considered for 
declassification to the appropriate agency office.



Sec. 1045.33  Appointment of restricted data management official.

    (a) Each agency with access to RD or FRD shall appoint an official 
to be responsible for the implementation of this part and shall advise 
the DOE Director of Declassification of such appointment.
    (b) This official shall ensure the proper implementation of this 
part within his or her agency and shall serve as the primary point of 
contact for coordination with the DOE Director of Declassification on RD 
and FRD classification and declassification issues.
    (c) Within the DoD, an RD management official shall be appointed in 
each DoD agency.



Sec. 1045.34  Designation of restricted data classifiers.

    (a) Except within the DoD, RD management officials shall ensure that 
persons who derivatively classify RD or FRD documents are designated by 
position or by name as RD classifiers.
    (b) All contractor organizations with access to RD and FRD, 
including DoD contractors, shall designate RD classifiers.



Sec. 1045.35  Training requirements.

    (a) RD management officials shall ensure that persons with access to 
RD and FRD information are trained on the authorities required to 
classify and declassify RD and FRD information and documents and on 
handling procedures. RD management officials shall ensure that RD 
classifiers are trained on the procedures for classifying, 
declassifying, marking and handling RD and FRD information and 
documents.
    (b) The DOE Director of Declassification shall develop training 
materials related to implementation of this part and shall provide these 
materials to RD management officials and any other appropriate persons.
    (c) The DOE Director of Declassification shall review any RD-related 
training material submitted by agency and

[[Page 775]]

contractor representatives to ensure consistency with current policy.



Sec. 1045.36  Reviews of agencies with access to restricted data and formerly restricted data.

    (a) The DOE and each agency with access to RD and FRD shall consult 
periodically to assure appropriate implementation of this part. Such 
consultations may result in DOE conducting an on-site review within the 
agency if DOE and the RD management official determine that such a 
review would be mutually beneficial or that it is necessary to remedy a 
problem.
    (b) To address issues concerning implementation of this part, the 
DOE Director of Declassification shall establish a standing group of all 
RD management officials to meet periodically.



Sec. 1045.37  Classification guides.

    (a) The classification and declassification determinations made by 
the DOE Directors of Declassification and Security Affairs under the 
classification criteria in Sec. 1045.16 shall be promulgated in 
classification guides.
    (b) DOE shall jointly develop classification guides with the DoD, 
NRC, NASA, and other agencies as required for programs for which DOE and 
these agencies share responsibility.
    (c) Agencies shall coordinate with the DOE Director of 
Declassification whenever they develop or revise classification guides 
with RD or FRD information topics.
    (d) Originators of classification guides with RD or FRD topics shall 
review such guides at least every five years and make revisions as 
necessary.
    (e) RD classifiers shall use classification guides as the primary 
basis for classifying and declassifying documents containing RD and FRD.
    (f) Each RD management official shall ensure that all RD classifiers 
have access to all pertinent nuclear classification guides.



Sec. 1045.38  Automatic declassification prohibition.

    (a) Documents containing RD and FRD remain classified until a 
positive action by an authorized person is taken to declassify them.
    (b) In accordance with the Atomic Energy Act, no date or event for 
automatic declassification ever applies to RD and FRD documents, even if 
such documents also contain NSI.
    (c) E.O. 12958 acknowledges that RD and FRD are exempt from all 
provisions of the E.O., including automatic declassification.



Sec. 1045.39  Challenging classification and declassification determinations.

    (a) Any authorized holder of an RD or FRD document who, in good 
faith, believes that the RD or FRD document has an improper 
classification status is encouraged and expected to challenge the 
classification with the RD Classifier who classified the document.
    (b) Agencies shall establish procedures under which authorized 
holders of RD and FRD documents are encouraged and expected to challenge 
any classification status they believe is improper. These procedures 
shall assure that:
    (1) Under no circumstances are persons subject to retribution for 
bringing forth a classification challenge.
    (2) The individual who initially receives the challenge provides a 
response within 90 days to the person bringing forth the challenge.
    (3) A decision concerning a challenge involving RD or FRD may be 
appealed to the DOE Director of Declassification. In the case of FRD and 
RD related primarily to the military utilization of nuclear weapons, the 
DOE Director of Declassification shall coordinate with the DoD. If the 
justification for classification does not satisfy the person making the 
challenge, a further appeal may be made to the DOE Director of Security 
Affairs.
    (c) Classification challenges concerning documents containing RD and 
FRD information are not subject to review by the Interagency Security 
Classification Appeals Panel, unless those documents also contain NSI 
which is the basis for the challenge. In such cases, the RD and FRD 
portions of the document shall be deleted and then the NSI and 
unclassified portions shall be provided to the Interagency Security 
Classification Appeals Panel for review.

[[Page 776]]



Sec. 1045.40  Marking requirements.

    (a) RD classifiers shall ensure that each RD and FRD document is 
clearly marked to convey to the holder that it contains RD or FRD 
information, the level of classification assigned, and the additional 
markings in paragraphs (b)(3) and (4) of this section.
    (b) Front Marking. In addition to the overall classification level 
of the document, the following notices shall appear on the front of the 
document, as appropriate:
    (1) If the document contains RD:

RESTRICTED DATA

    This document contains RESTRICTED DATA as defined in the Atomic 
Energy Act of 1954. Unauthorized disclosure subject to administrative 
and criminal sanctions.
    (2) If the document contains FRD but does not contain RD:

FORMERLY RESTRICTED DATA

    Unauthorized disclosure subject to administrative and criminal 
sanctions. Handle as RESTRICTED DATA in foreign dissemination. Section 
144b, Atomic Energy Act of 1954.
    (3) An RD or FRD document shall be marked to identify the 
classification guide or source document, by title and date, used to 
classify the document:
    Derived from:

 _______________________________________________________________________
(Classification Guide or source document--title and date)

    (4) An RD or FRD document shall be marked with the identity of the 
RD classifier, unless the classifier is the same as the document 
originator or signer.
    RD Classifier:

 _______________________________________________________________________
(Name and position or title)

    (c) Interior Page. RD classifiers shall ensure that RD and FRD 
documents are clearly marked at the top and bottom of each interior page 
with the overall classification level and category of the document or 
the classification level and category of the page, whichever is 
preferred. The abbreviations ``RD'' and ``FRD'' may be used in 
conjunction with the document classification (e.g., SECRET RD or SECRET 
FRD).
    (d) Declassification Marking. Declassified RD and FRD documents 
shall be marked with the identity of the individual authorizing the 
declassification, the declassification date and the classification guide 
which served as the basis for the declassification. Individuals 
authorizing the declassification shall ensure that the following marking 
is affixed on RD and FRD documents which they declassify:
    Declassified on:

 _______________________________________________________________________
(Date)

    Authorizing Individual:

 _______________________________________________________________________
(Name and position or title)

    Authority:

 _______________________________________________________________________
(Classification Guide--title and date)



Sec. 1045.41  Use of classified addendums.

    (a) In order to maximize the amount of information available to the 
public and to simplify document handling procedures, document 
originators should segregate RD or FRD into an addendum whenever 
practical. When RD or FRD is segregated into an addendum, the originator 
shall acknowledge the existence of the classified addendum unless such 
an acknowledgment would reveal classified information.
    (b) When segregation of RD or FRD into an addendum is not practical, 
document originators are encouraged to prepare separate unclassified 
versions of documents with significant public interest.
    (c) When documents contain environmental, safety or health 
information and a separate unclassified version cannot be prepared, 
document originators are encouraged to provide a publicly releasable 
rationale for the classification of the documents.



Sec. 1045.42  Mandatory and Freedom of Information Act reviews for declassification of restricted data and formerly restricted data documents.

    (a) General. (1) Agencies with documents containing RD and FRD shall 
respond to mandatory review and Freedom of Information Act (FOIA) 
requests for these documents from the public.

[[Page 777]]

    (2) In response to a mandatory review or Freedom of Information Act 
request, DOE or DoD may refuse to confirm or deny the existence or 
nonexistence of the requested information whenever the fact of its 
existence or nonexistence is itself classified as RD or FRD.
    (b) Processing Requests. (1) Agencies shall forward documents 
containing RD to DOE for review.
    (2) Agencies shall forward documents containing FRD to the DOE or to 
the DoD for review, depending on which is the originating agency.
    (3) The DOE and DoD shall coordinate the review of RD and FRD 
documents as appropriate.
    (4) The review and appeal process is that described in subpart D of 
this part except for the appeal authority. DOE and DoD shall not forward 
RD and FRD documents to the the Interagency Security Classification 
Appeals Panel (ISCAP) for appeal review unless those documents also 
contain NSI. In such cases, the DOE or DoD shall delete the RD and FRD 
portions prior to forwarding the NSI and unclassified portions to the 
ISCAP for review.
    (5) Information Declassification Actions resulting from appeal 
reviews. (i) Appeal reviews of RD or FRD documents shall be based on 
existing classification guidance. However, the DOE Director of 
Declassification shall review the RD and FRD information in the appealed 
document to determine if it may be a candidate for possible 
declassification.
    (ii) If declassification of the information appears appropriate, the 
DOE Director of Declassification shall initiate a formal 
declassification action and so advise the requester.
    (c) Denying Official. (1) The denying official for documents 
containing RD is the DOE Director of Declassification.
    (2) The denying official for documents containing FRD is either the 
DOE Director of Declassification or an appropriate DoD official.
    (d) Appeal Authority. (1) The appeal authority for RD documents is 
the DOE Director of Security Affairs.
    (2) The appeal authority for FRD documents is either the DOE 
Director of Security Affairs, or an appropriate DoD official.
    (e) The denying official and appeal authority for Naval Nuclear 
Propulsion Information is the Director, Office of Naval Reactors.
    (f) RD and FRD information contained in documents shall be withheld 
from public disclosure under exemption 3 of the FOIA (5 U.S.C. 522 
(b)(3)) because such information is exempt under the statutory 
jurisdiction of the Atomic Energy Act.



Sec. 1045.43  Systematic review for declassification.

    (a) The Secretary shall ensure that RD documents, and the DoD shall 
ensure that FRD documents, are periodically and systematically reviewed 
for declassification. The focus of the review shall be based on the 
degree of public and researcher interest and likelihood of 
declassification upon review.
    (b) Agencies with RD or FRD document holdings shall cooperate with 
the DOE Director of Declassification (and with the DoD for FRD) to 
ensure the systematic review of RD and FRD documents.
    (c) Review of documents in particular areas of public interest shall 
be considered if sufficient interest is demonstrated. Proposals for 
systematic document reviews of given collections or subject areas should 
be addressed to the Director of Declassification, Department of Energy, 
19901 Germantown Road, Germantown, MD 20874-1290.



Sec. 1045.44  Classification review prior to public release.

    Any person with authorized access to RD or FRD who generates a 
document intended for public release in an RD or FRD subject area shall 
ensure that it is reviewed for classification by the appropriate DOE 
organization (for RD) or the appropriate DOE or DoD organization (for 
FRD) prior to its release.



Sec. 1045.45  Review of unmarked documents with potential restricted data or formerly restricted data.

    (a) Individuals reviewing NSI records of permanent historical value 
under the automatic or systematic review provisions of E.O. 12958 may 
come upon documents that they suspect may contain RD or FRD, but which 
are not so marked. Such documents are not subject to automatic 
declassification.

[[Page 778]]

    (b) Such documents shall be reviewed by an RD Classifier as soon as 
possible to determine their classification status. Assistance may be 
requested from the DOE Director of Declassification.



Sec. 1045.46  Classification by association or compilation.

    (a) If two pieces of unclassified information reveal classified 
information when associated, then RD classifiers may classify the 
document.
    (b) RD classifiers may classify a document because a number of 
pieces of unclassified information considered together contain some 
added value such as completeness or comprehensiveness of the information 
which warrants classification.



    Subpart D--Executive Order 12958: ``Classified National Security 
             Information'' Requirements Affecting the Public



Sec. 1045.50  Purpose and scope.

    This subpart describes the procedures to be used by the public in 
questioning or appealing DOE decisions regarding the classification of 
NSI under E.O. 12958 and 32 CFR part 2001.



Sec. 1045.51  Applicability.

    This subpart applies to any person with authorized access to DOE NSI 
or who desires access to DOE documents containing NSI.



Sec. 1045.52  Mandatory declassification review requests.

    All DOE information classified as NSI is subject to review for 
declassification by the DOE if:
    (a) The request for a review describes the document containing the 
information with sufficient specificity to enable the agency to locate 
it with a reasonable amount of effort;
    (b) The information is not exempted from search and review under the 
Central Intelligence Agency Information Act;
    (c) The information has not been reviewed for declassification 
within the past 2 years; and
    (d) The request is sent to the Department of Energy, Director of 
Declassification, 19901 Germantown Road, Germantown, Maryland 20874-
1290.



Sec. 1045.53  Appeal of denial of mandatory declassification review requests.

    (a) If the Department has reviewed the information within the past 2 
years, the request may not be processed. If the information is the 
subject of pending litigation, the processing of the request may be 
delayed pending completion of the litigation. The Department shall 
inform the requester of this fact and of the requester's appeal rights.
    (b) When the Director of Declassification has denied a request for 
review of NSI, the requester may, within 30 calendar days of its 
receipt, appeal the determination to the Director of Security Affairs.
    (c) Elements of appeal. The appeal shall be in writing and addressed 
to the Director of Security Affairs, Department of Energy, 1000 
Independence Avenue SW, Washington, DC 20585. The appeal shall contain a 
concise statement of grounds upon which it is brought and a description 
of the relief sought. It should also include a discussion of all 
relevant authorities which include, but are not limited to DOE (and 
predecessor agencies) rulings, regulations, interpretations, and 
decisions on appeals, and any judicial determinations being relied upon 
to support the appeal. A copy of the letter containing the determination 
being appealed shall be submitted with the appeal.
    (d) Receipt of appeal. An appeal shall be considered to be received 
upon receipt by the DOE Director of Security Affairs.
    (e) Action within 60 working days. The appeal authority shall act 
upon the appeal within 60 working days of its receipt. If no 
determination on the appeal has been issued at the end of the 60-day 
period, the requester may consider his or her administrative remedies to 
be exhausted and may seek a review by the Interagency Security 
Classification Appeals Panel (ISCAP). When no determination can be 
issued within the applicable time limit, the appeal shall nevertheless 
continue to be processed. On expiration of the time limit, DOE shall 
inform the requester

[[Page 779]]

of the reason for the delay, of the date on which a determination may be 
expected to be issued, and of his or her right to seek further review by 
the ISCAP. Nothing in this subpart shall preclude the appeal authority 
and the requester from agreeing to an extension of time for the decision 
on an appeal. The DOE Director of Security Affairs shall confirm any 
such agreement in writing and shall clearly specify the total time 
agreed upon for the appeal decision.
    (f) Form of action on appeal. The DOE Director of Security Affairs' 
action on an appeal shall be in writing and shall set forth the reason 
for the decision. The Department may refuse to confirm or deny the 
existence or nonexistence of requested information whenever the fact of 
its existence or nonexistence is itself classified under E.O. 12958.
    (g) Right of final appeal. The requester has the right to appeal a 
final Department decision or a failure to provide a determination on an 
appeal within the allotted time to the ISCAP for those appeals dealing 
with NSI. In cases where NSI documents also contain RD and FRD, the RD 
and FRD portions of the document shall be deleted prior to forwarding 
the NSI and unclassified portions to the ISCAP for review.

    Effective Date Note: At 62 FR 68509, Dec. 31, 1997, part 1045 was 
revised, effective June 29, 1998. For the convenience of the user, the 
text remaining in effect until June 29, 1998, is set forth as follows:



PART 1045--NATIONAL SECURITY INFORMATION

             Subpart A--Classification and Declassification

Sec.
1045.1  Purpose.
1045.2  Scope.
1045.3  Definitions.
1045.4  Responsibilities and authorities.
1045.5  Policy.
1045.6  Mandatory review for declassification.
1045.7  Suggestions or complaints.

    Authority: E.O. 12356 (47 FR 14874) April 6, 1982; Information 
Security Oversight Office Directive No. 1 (47 FR 27836) June 25, 1982.

    Source: 49 FR 27738, July 6, 1984, unless otherwise noted.

             Subpart A--Classification and Declassification

Sec. 1045.1  Purpose.

    This part establishes policy and procedures to be followed within 
the Department of Energy (DOE) for the classification and 
declassification of National Security Information (NSI) to the extent 
that they affect members of the public. Procedures are established for 
the submission of mandatory declassification review requests to the DOE 
made pursuant to section 3.4 of Executive Order (E.O.) 12356, ``National 
Security Information,'' April 2, 1982. Instructions for submitting 
suggestions or complaints regarding the DOE's information security 
program are given.

Sec. 1045.2  Scope.

    This part applies to the original classification and 
declassification of NSI and the derivative classification and 
declassification of documents or other material containing or revealing 
NSI within the DOE and its contractor and subcontractor organizations. 
Accordingly, Restricted Data and Formerly Restricted Data classified 
pursuant to the Atomic Energy Act of 1954, as amended, are outside the 
scope of this part.

Sec. 1045.3  Definitions.

    (a) Declassification means a determination that previously 
classified information, documents, or other material that contain or 
reveal such information no longer require protection against 
unauthorized disclosure in the interest of national security.
    (b) Document means any recorded information regardless of its 
physical form or characteristics.
    (c) Information means any knowledge or facts, distinct from its 
physical form or characteristics, that is owned by, produced by or for, 
or is under the control of the United States Government.
    (d) Material means any product or substance on or in which 
information is embodied.
    (e) National Security Information (NSI) means information that has 
been determined pursuant to E.O. 12356 or any predecessor order to 
require protection against unauthorized disclosure and that is so 
designated.
    (f) Original classification means an initial determination that 
information requires, in the interest of national security, protection 
against unauthorized disclosure, together with a classification 
designation signifying the level of protection required.

Sec. 1045.4  Responsibilities and authorities.

    (a) The Assistant Secretary for Defense Programs is responsible for 
making final determinations on appeals submitted by individuals who have 
been denied all or part of documents or other material containing or

[[Page 780]]

revealing NSI requested under the Mandatory Review for Declassification 
provisions of this regulation.
    (b) The Director of Classification is designated as the Senior 
Agency Official to direct and administer the Department's information 
security program, as required by section 5.3(a) of E.O. 12356. In 
addition, the Director of Classification is responsible for making 
initial denials of requests submitted by eligible individuals for 
documents or other material containing or revealing NSI requested under 
the Mandatory Review for Declassification provisions of this regulation.

Sec. 1045.5  Policy.

    (a) It is DOE policy to classify as NSI, in accordance with the 
provisions of E.O. 12356, information concerning the national defense 
and foreign relations of the United States which, in the interests of 
the United States and its citizens, must be protected against 
unauthorized disclosure.
    (b) It is DOE policy that only individuals specifically authorized 
to do so by the Secretary of Energy or his designee may originally 
classify or declassify information or derivatively classify or 
declassify documents or other material. Those who possess such authority 
must ensure that their determinations are made upon proper authority, 
are in compliance with E.O. 12356 and its implementing directives, 
appropriate statutes, and Departmental regulations, and are consistent 
with approved classification policy and guidance.

Sec. 1045.6  Mandatory review for declassification.

    (a) Except as provided in section 3.4(b) of E.O. 12356, all 
information classified under E.O. 12356 or its predecessor orders (i.e., 
National Security Information) is subject to a review for 
declassification by the originating agency, if the request:
    (1) Is made by a United States citizen or permanent resident alien, 
a Federal agency, or a State or local government;
    (2) Describes the document or material containing or revealing the 
NSI in question with sufficient specificity to enable it to be located 
with a reasonable effort; and
    (3) Is sent to the Director of Classification, U.S. Department of 
Energy, Washington, DC 20545.
    (b) Requests for mandatory declassification reviews will be 
processed as follows:
    (1) Invalid requests. The requester will be notified promptly by the 
Office of Classification when his or her request is not valid. This 
notification letter will contain the reasons why the request cannot be 
processed and, if applicable, what additional information is needed to 
allow processing of the request.
    (2) Valid requests. Upon receipt of a valid request for mandatory 
declassification review, the Office of Classification shall do the 
following:
    (i) Contact all appropriate organizations within the Department 
requesting that their files be searched for documents and material 
responsive to the request.
    (ii) Based on the results of the above search, determine if 
estimated review and coordination time required to process the request 
precludes a prompt declassification determination, and if so, inform the 
requester of the additional time needed to process the request.
    (iii) Review the documents or other material responsive to the 
request and determine whether or not the NSI under the purview of the 
Department contained in or revealed by the documents or other material 
can be declassified.
    (iv) Coordinate with other agencies the review of documents or other 
material originated by the Department that are responsive to the request 
and that contain information under the purview of those agencies.
    (v) After deletion of all NSI under the purview of the Department, 
forward a copy of any documents or other material originated by another 
agency to that agency for further processing and direct response to the 
requester, including a copy of the request together with recommendations 
for action and, after consultation with the originating agency, inform 
the requester of the referral.
    (vi) Transmit to the requester the final determination of the 
Director of Classification as to whether all or part of any documents or 
other material responsive to the request may be released to the 
requester. This determination must be made within one year from the date 
of receipt of the request except in unusual circumstances (e. g., delays 
caused by coordination of the review of responsive documents or other 
material originated by the Department with agencies having purview over 
information contained in or revealed by the documents or other 
material).
    (vii) In those cases where a fee (see 10 CFR 1004.9 for schedule of 
fees charged for documents or material provided to requesters) is to be 
charged, notify the requester of the estimated amount of the fee and 
await confirmation by the requester of willingness to pay the fee.
    (viii) In those cases where no fee is to be charged, or where the 
requester has agreed to pay the fee, and consistent with other 
applicable law, send the requester copies of declassified documents or 
other material or declassified portions of classified documents or other 
material that constitute coherent segments.

[[Page 781]]

    (ix) In those cases where all or part of documents or other material 
responsive to a request cannot be declassified, notify the requester 
that he or she has the right to administratively appeal the denial 
within 60 days of receipt of the denial letter. The requester should be 
notified that the appeal shall specify why the requester believes that 
the information in question does not warrant classification and, if 
possible, should include copies of the initial request letter and the 
denial letter from the Director of Classification. The appeal should be 
sent to the Assistant Secretary for Defense Programs, U.S. Department of 
Energy, Washington, DC 20545.
    (c) Appeals of denials of mandatory declassification review 
requests.
    (1) Immediately upon receipt of an appeal request, an ad hoc 
committee will be assembled and headed by a representative from the 
Office of the Assistant Secretary for Defense Programs and made up or 
representatives from any Department organizations that have an interest 
in the subject of the appeal.
    (2) The Office of Classification will provide the committee all 
information, documents, and any other assistance pertinent to the 
appeal, and will advise the committee with regard to the classification 
of the information involved.
    (3) The committee will review the basis for the denial and transmit 
its findings and recommendations to the Assistant Secretary for Defense 
Programs within 15 working days following receipt of the appeal.
    (4) Based on the committee report, the Assistant Secretary for 
Defense Programs shall make a final determination on the appeal within 
25 working days following receipt of the appeal. The head of the 
committee then shall notify the requester, within 30 working days 
following receipt of the appeal, in writing, of the final determination. 
Based on this determination and consistent with other applicable law, 
copies of declassified documents or other material or declassified 
portions of classified documents or other material responsive to the 
request will be released to the requester, upon payment of any required 
fees, and/or the requester will be given a statement as to why some or 
all of the documents or other material cannot be declassified.

Sec. 1045.7  Suggestions or complaints.

    Any individual who has suggestions or complaints regarding the 
Department's information security program may direct them in writing to 
the Director of Classification, U.S. Department of Energy, Washington, 
DC 20545. Such letters should include a description of the issue or 
problem, the suggestion or complaint, all applicable background 
information, and an address to which a response may be sent. The Office 
of Classification will review such submissions and will respond to the 
originator of the suggestion or complaint letter.



PART 1046--PHYSICAL PROTECTION OF SECURITY INTERESTS--Table of Contents




                           Subpart A--General

Sec.
1046.1  Purpose.
1046.2  Scope.
1046.3  Definitions.
1046.4  Use of number and gender.

                  Subpart B--Protective Force Personnel

1046.11  Medical and physical fitness qualification standards.
1046.12  Physical fitness training program.
1046.13  Medical certification.
1046.14  Access authorization.
1046.15  Training and qualification for security skills and knowledge.
1046.16  Training certification.

Appendix A to Subpart B to Part 1046--Medical and Physical Fitness 
          Qualification Standards
Appendix B to Subpart B to Part 1046--Training and Qualification for 
          Security Skills and Knowledge

    Authority: Sec. 2201, Pub. L. 83-703, 68 Stat. 919 (42 U.S.C. 2011 
et seq.); sec. 7151, Pub. L. 95-91, 91 Stat. 565 (42 U.S.C. 7101 et 
seq.)

    Source: 58 FR 45791, Aug. 31, 1993, unless otherwise noted.



                           Subpart A--General



Sec. 1046.1  Purpose.

    The purpose of this part is to set forth Department of Energy, 
hereinafter ``DOE,'' security policies and procedures regarding the 
physical protection of security interests.



Sec. 1046.2  Scope.

    This part applies to DOE contractor employees at Government-owned 
facilities, whether or not privately operated.



Sec. 1046.3  Definitions.

    For the purposes of this part:
    Contractor. The term ``contractor'' includes subcontractors at all 
tiers.
    Defensive combative personnel. Security police officers other than 
offensive combative personnel.
    Designated physician. An occupational medical physician who is 
recommended

[[Page 782]]

by the designated management supervisory official of the local DOE field 
office and authorized by the Medical Director, Office of Operational and 
Environmental Safety, Headquarters, to determine the medical and 
physical condition of protective force personnel. When an occupational 
medical physician is not available, physicians who are not board-
certified in occupational medicine may be recommended and authorized by 
the Medical Director as designated physicians for the purpose of this 
part. Designated physicians need not be employed full-time, but 
contractually shall be responsible to DOE for performance of the medical 
functions required by this part.
    Facility. An educational institution, manufacturing plant, 
laboratory, office building or other area utilized by the DOE or its 
contractors or subcontractors for the performance of work under DOE 
jurisdiction.
    Field organization. Any organizational component of the DOE located 
outside the Washington, DC metropolitan area.
    Guard. Also referred to as Security Officer, an unarmed individual 
who is employed for, and charged with, the protection of classified 
matter or Government property.
    Medical condition. General health, physical condition, and emotional 
and mental stability.
    Offensive combative personnel. Security police officers assigned to 
response force duties including pursuit and assault functions.
    Protective force personnel. Security officers and security police 
officers assigned to protective details, who are employed to protect DOE 
security interests.
    Requalification date. The date of expiration of current 
qualification at which demonstration of knowledge, skills and/or 
abilities is required to maintain specific job status.
    Security inspector. Also referred to as Security Police Officer, a 
uniformed person who is authorized under section 161.k of the Atomic 
Energy Act of 1954, as amended, or other statutory authority, to carry 
firearms and to make arrests without warrants and who is employed for, 
and charged with, the protection of classified matter, special nuclear 
material, or other Government property.
    Security police officer. An armed member of the protective force, 
previously referred to as a ``security inspector.''
    Special response team member. A security police officer who has been 
selected to be part of a unit specially trained to provide additional 
protection capability.



Sec. 1046.4  Use of number and gender.

    As used in this part, words in the singular also include the plural 
and words in the masculine also include the feminine and vice versa, as 
the use may require.



                  Subpart B--Protective Force Personnel



Sec. 1046.11  Medical and physical fitness qualification standards.

    (a) Except as provided in paragraph (b) of this section DOE 
contractors shall not employ as protective force personnel any 
individual who fails to meet the applicable medical and physical fitness 
qualification standards as set forth in appendix A, to this subpart, 
``Medical and Physical Fitness Qualification Standards.''
    (b)(1) Incumbent security police officers shall meet the applicable 
physical fitness qualification standards.
    (2) Current waivers to the medical qualification standards remain in 
effect and future waivers are permitted.
    (c) Each security police officer shall meet the applicable medical 
and physical fitness qualification standards every twelve months after 
the initial qualification. Each security officer shall meet the 
applicable medical standards every two (2) years after the initial 
qualification.
[58 FR 45792, Aug. 31, 1993; 58 FR 60102, Nov. 15, 1993]



Sec. 1046.12  Physical fitness training program.

    (a) Each incumbent security police officer, who has not met the 
applicable physical fitness qualification standard, shall participate in 
a DOE approved physical fitness training program. Once an incumbent 
security police officer has begun a physical fitness training

[[Page 783]]

program, it must be completed before the security police officer may 
take the applicable physical fitness qualification standards test. Once 
a physical fitness training program is completed, an incumbent security 
police officer has thirty (30) days to meet the applicable physical 
fitness qualification standards.
    (b) An incumbent security police officer who fails to qualify within 
thirty (30) days of completing a physical fitness training program shall 
participate in an additional training program. Upon completion of the 
additional physical fitness training program the security police officer 
has thirty (30) days to meet the applicable physical fitness 
qualification standard. No additional training or time extension to meet 
the standards is permitted except for unusual circumstances as set forth 
in appendix A to this subpart, paragraph G(2).
    (c) A security police officer who fails to requalify within thirty 
(30) days after his or her yearly anniversary date of the initial 
qualification shall participate in a physical fitness training program. 
Security police officers have a maximum of six (6) months from the 
anniversary date to requalify.
    (d) After his or her initial qualification, each incumbent security 
police officer shall participate in a DOE-approved physical fitness 
training program on a continuing basis. This training is for the purpose 
of ensuring that security police officers maintain the requisite 
physical fitness for effective job performance and to enable the 
individual security police officer to pass the applicable annual 
physical fitness requalification test without suffering any undue 
physical injury.



Sec. 1046.13  Medical certification.

    Each individual shall have a medical examination within thirty (30) 
days preceding participation in a physical fitness training program and 
the physical fitness qualification standards test, and a determination 
and written certification by a designated physician that there are no 
foreseeable medical risks as disclosed by the medical examination to the 
individual's participation in a physical fitness training program and 
the physical fitness qualification standards test.



Sec. 1046.14  Access authorization.

    Protective force personnel shall possess current access 
authorization for the highest level of classified matter to which they 
potentially have access. Security police officer personnel who have 
access to Category I or II quantities of special nuclear material (SNM) 
will be ``Q'' cleared. The specific level of access authorization for 
each duty assignment shall be designated by the site security 
organization and approved by the Head of the Field Element. Security 
police officers shall possess a minimum of an ``L'' or DOE Secret access 
authorization. Security police officers possessing less than ``Q'' 
access authorization shall not be assigned to offensive positions or 
duties where fully automatic firearms are required.



Sec. 1046.15  Training and qualification for security skills and knowledge.

    (a) DOE contractors shall only employ as protective force personnel 
individuals who successfully meet the requirements of a formal training 
program established in accordance with appendix B, ``Training and 
Qualification for Security Skills and Knowledge,'' to this subpart. The 
DOE contractor shall maintain individual training records until 1 year 
after the termination of the individual as a member of the protective 
force, unless a longer retention period is specified by other 
requirements.
    (b) DOE contractors shall employ as security police officers, 
including Special Response Team members, only individuals who are fully 
qualified and meet the firearms qualification standards set forth in 
appendix B to this subpart.



Sec. 1046.16  Training certification.

    DOE contractors shall employ as protective force personnel only 
individuals who have successfully completed all applicable training and 
qualification standards set forth in this subpart including appendices A 
and B. The DOE contractor shall maintain records of certification for 
each individual until 1

[[Page 784]]

year after the termination of the individual as a member of the 
protective force, unless a longer retention period is specified by other 
requirements.

   Appendix A to Subpart B to Part 1046--Medical and Physical Fitness 
                         Qualification Standards

    A. Applicability. This appendix A to subpart B of part 1046 provides 
the minimum, medical and physical fitness qualifications, criteria and 
guides to be used by designated physicians and management supervisory 
officials in advising responsible DOE officials whether the medical and 
physical condition of protective force personnel to be employed by DOE 
contractors reasonably assures that they can effectively perform their 
normal and emergency duties without undue hazard to themselves, fellow 
employees, the plant site and the general public.
    B. Application of Medical and Physical Fitness Qualification 
Standards.
    (1) The standards in this appendix are the minimum necessary to 
determine the medical and physical capability of protective force 
personnel to perform all normal and emergency duties effectively and 
safely.
    (2) Security police officer applicants shall meet the applicable 
medical and physical fitness standards in this appendix prior to 
assignment to security police officer duties.
    (3) Incumbent security police officers shall meet the applicable 
physical fitness standards in this appendix within one year of the 
effective date of theses standards and once every twelve months 
thereafter or shall be relieved of security police officer duties 
subject to the provisions in paragraph G of this appendix.
    (4) Incumbent security police officers shall meet the applicable 
medical standards prior to assignment to security police officer duties 
and annually thereafter, subject to the provisions of paragraph G of 
this appendix.
    (5) Security officers shall meet the applicable standards in this 
appendix prior to assignment to security officer duties and biennially 
thereafter, subject to the provisions of paragraph J of this appendix.
    (6) The determination of whether or not the examinee meets the 
medical standards in this appendix shall be made by a designated 
physician.
    (7) The determination of whether or not the examinee meets the 
physical fitness standards in this appendix shall be made by a 
designated management supervisory official in coordination with a 
designated physician.
    (8) When a designated physician determines that special medical 
evaluations and practical performance tests are necessary in order for 
an examinee to demonstrate the examinee's abilities to perform all 
normal and emergency duties, a determination of the adequacy of 
performance shall be made by a designated physician.
    (9) For those facilities where it is necessary to determine the 
medical qualification of security police officers or security police 
officer applicants to perform special assignment security police officer 
duties which might require exposure to unusually high levels of stress 
or physical exertion, field office managers may develop more stringent 
medical qualification requirements or additional medical or physical 
tests as necessary for such determinations. All such additional 
qualification requirements shall be forwarded, with justification, for 
the approval of the Director of Safeguards and Security, Headquarters, 
prior to application and if approved, shall be implemented in the same 
manner that these qualification standards have been implemented.
    (10) The provisions of DOE 5480.1A, ENVIRONMENTAL PROTECTION, 
SAFETY, AND HEALTH PROTECTION PROGRAM FOR DOE OPERATIONS, of 8-13-81, 
Chapter VIII, Part 4 (including any updates) apply for return to work 
after recovery from a temporarily disqualifying medical or surgical 
condition.
    C. Administrative Procedures and Requirements.
    (1) Medical Confidentiality and Retention of Medical Reports.
    (a) The medical information and data on each employee or applicant 
shall be maintained as confidential, privileged medical information and 
shall not be released by a designated physician without the written 
consent and release of the employee or applicant, except as permitted or 
required by law.
    (b) When an individual has been examined by a designated physician, 
all available history and test results should be retained by the 
responsible DOE or DOE contractor medical department, in accordance with 
DOE 5480.1A, Chapter VIII, Part 4, whether or not the individual 
completes the examination, and whether or not potentially disqualifying 
defects are recorded.
    (2) Change of Health Status of Protective Force Personnel.
    (a) It is the specific responsibility of protective force employees 
to report immediately to their supervisor any known or suspected change 
in their health which might impair their capacity for duty or the safe 
and effective performance of assigned job duties.
    (b) Supervisory personnel have the responsibility to make a timely 
report to a designated physician on any behavioral and health changes 
and deterioration in work performance that is observed in protective 
force personnel under their jurisdiction. Examples of areas that may 
indicate medical and emotional problems include: incidents of ineptness, 
poor judgment, lack of physical or

[[Page 785]]

emotional stamina, social incompatibility, excessive absence, lateness, 
and a tendency to become accident prone.
    (3) Use of Corrective Devices.
    (a) When the use of corrective devices, such as eyeglasses and 
hearing aids, is required to enable an examinee to meet successfully 
medical qualification requirements, a determination shall be made by a 
designated line supervisory authority that the use of all such devices 
is compatible with all emergency and protective equipment that the 
examinee may be required to wear or use while performing his or her 
assigned job duties.
    (b) It is incumbent upon cognizant field office management to 
exercise all reasonable and practicable effort to accommodate required 
emergency and protective equipment to the use of corrective devices, 
including the provision of equally effective alternate equipment if such 
is available.
    (c) If eyeglasses are used, they shall be of the safety glass type.
    D. Security Police Officer Medical Qualification Standards.
    (1) General Qualifications. The examinee shall possess mental, 
sensorial, and motor skills as required to perform safely and 
effectively all assigned job duties. Such qualifications include:
    (a) Mental alertness and reliable judgment;
    (b) Acuity of senses and ability of expression sufficient to allow 
accurate communication by written, spoken, audible, visible, or other 
signals; and,
    (c) Motor power, range of motion, neuro-muscular coordination and 
dexterity.
    (2) Specific Minimum Qualifications.
    (a) Head, Face, Neck, Scalp. Configuration suitable for fitting and 
effective use of personal protective equipment when the use of such 
equipment is required by assigned normal or emergency job duties.
    (b) Nose. Ability to detect odor of products of combustion and of 
tracer and marker gases.
    (c) Mouth and Throat. Capacity for clear and audible speech as 
required for effective communication on the job.
    (d) Ears. Hearing loss in the better ear not to exceed 30 db average 
at 500, 1000, 2000 Hz with no level greater than 40 db in any of these 
frequencies (by ISO 1964 and ANSI 1969 audiometry). If a hearing aid is 
necessary, suitable testing procedures shall be used to assure auditory 
acuity equivalent to the above requirement.
    (e) Eyes.
    (1) Distant Visual Acuity.
    (a) Uncorrected acuity of no less than 20/200 in the better eye.
    (b) Corrected acuity of at least 20/30 in the better eye and 20/40 
in the other eye.
    (c) If uncorrected distant vision in the better eye is not at least 
20/40, security police officers shall carry an extra pair of corrective 
lenses.
    (2) Near Visual Acuity. Corrected or uncorrected vision of at least 
20/40 (14/28 Snellen) in the better eye.
    (3) Color Vision. Ability to distinguish red, green, and yellow. 
Special color vision testing and certification shall be required where 
fine color discrimination is critical to the safe or effective 
performance of assigned job tasks.
    (4) Peripheral Vision. Field of vision in the horizontal meridian 
shall not be less than a total of 140 degrees.
    (5) Depth Perception. Adequate depth perception as measured by 
stereopsis or demonstration in a practical operational test.
    (f) Cardiorespiratory.
    (1) Respiratory. Capacity and reserve to perform physical exertion 
in emergencies at least equal to the demands of the job assignment, and 
ability to utilize respiratory protective filters and air supply masks 
when this emergency equipment is required by assigned job requirements.
    (2) Cardiovascular. Normal configuration and function. Capacity for 
exertion during emergencies. Normal resting pulse; regular pulse. Full 
symmetrical pulses in extremities and neck. Normotensive, with tolerance 
to rapid postural changes. If an examination reveals significant cardiac 
arrhythmia, murmur, enlargement, hypertension, hypotension, or other 
evidence of cardiovascular abnormality, an evaluation by a specialist in 
internal medicine or cardiology may be required and evaluated by a 
designated physician.
    (g) Abdomen and Viscera. No clinically significant abnormalities.
    (h) Musculo-Skeletal. Normal symmetrical structure, range of motion, 
and power.
    (i) Skin. No significant abnormal intolerance to chemical, 
mechanical and other physical agents. Capability to tolerate use of 
personal protective covering and decontamination procedures when 
required by assigned job duties.
    (j) Endocrine/Nutritional/Metabolic.
    Endocrine/nutritional/metabolic status adequate to meet the stresses 
and demands of assigned normal and emergency job duties. Ability to 
accommodate to changing work and meal schedules without potential or 
actual incapacity.
    (k) Hematopoietic. Normal function.
    (l) Lymphatic. Normal.
    (m) Neurological. Normal central and peripheral nervous system 
function.
    (n) Mental and Emotional. Normal mental status and an absence of 
neurotic or psychotic conditions which would affect adversely an ability 
to handle firearms safely or to act safely and effectively under normal 
and emergency conditions.
    (o) Laboratory.
    (1) Hemogram. Freedom from clinically significant abnormalities of 
the formed elements of the blood that could reasonably be

[[Page 786]]

expected to affect the safe and effective performance of assigned 
duties.
    (2) Urinalysis. Absence of proteinuria and glycosuria unless the 
absence of a disqualifying systemic or genitourinary condition and the 
absence of significant microscopic abnormality has been demonstrated.
    (3) Other Studies. Any other medical investigative procedure, 
including electrocardiogram and chest x-ray, which a designated 
physician considers necessary for adequate medical evaluation.
    E. Security Police Officer Medical Disqualification Standards.
    (1) Freedom from Incapacity. The examinee shall be free of any 
condition, habit, or practice which could reasonably be expected to 
result in sudden, subtle, or unexpected incapacitation.
    (2) Conditions for Medical Disqualification. The presence of any of 
the following conditions shall disqualify the examinee from employment 
as a security police officer.
    (a) Respiratory. Significant pulmonary pathology or decrease in 
pulmonary function which could interfere with the safe and effective 
performance of assigned job duties.
    (b) Cardiovascular.
1. Ischemic Heart Disease
2. Myocardial Infarction
3. Coronary Insufficiency
4. Angina Pectoris
5. Heart Failure
6. Significant Arrhythmia
7. Arterial Aneurysm
8. Significant Peripheral Vascular Insufficiency
9. Corrosive Heart Surgery
10. Corrective Arterial or Great Vessel Surgery
11. Prosthetic Valve
12. Artificial Pacemaker

    (c) Endocrine/Nutritional/Metabolic.
    (1) Any endocrine, nutritional, or metabolic condition that would 
not allow the examinee adequately to meet the stresses and demands of 
assigned normal or emergency job duties.
    (2) Inability to accommodate to changing work schedules or to a 
delay in meals without potential or actual incapacity.
    (3) Inability to tolerate prolonged use of wearing of protective 
garments such as respirator masks, air masks, or bullet resistant 
garments.
    (4) Diabetes mellitus requiring the use of insulin. Uncontrolled 
diabetes, ketoacidosis, or diabetic coma within the previous 2 years.
    (5) Obesity of such degree that it would interfere with the safe and 
effective performance of normal and emergency job duties.
    (d) Skin. Recurrent severe dermatitis or hypersensitivity to 
irritants or sensitizers sufficient to interfere with wearing required 
personal protective equipment or likely to be aggravated by or interfere 
with established or required decontamination procedures.
    (e) Hematopoietic Dysfunction. Clinically significant hematopoietic 
disorders which may interfere with the safe and effective performance of 
assigned job duties.
    (f) Malignant Neoplasms. Malignant neoplastic disease.
    (g) Neurological.
    (1) History of epilepsy or other convulsive disorder.
    (2) History of any disturbance of consciousness or neurological 
disease or any other presently existing condition that may interfere 
with the safe and effective performance of assigned job duties.
    (h) Eyes. Total blindness in one or both eyes.
    (i) Mental and Emotional. An established history or clinical 
diagnosis of any of the following:
    (1) Any psychological or mental condition which could cause impaired 
alertness, judgment, or motor ability. A history of clinically 
significant emotional or behavioral problems shall require thorough 
clinical evaluation which may include, but not necessarily be limited 
to, psychological testing and psychiatric evaluation.
    (2) Attempted suicide or an expressed threat of suicide.
    (3) A condition in which a person's intake of alcohol is sufficient 
to damage his or her physical health, job performance, personal 
functioning, or when alcohol has become a prerequisite to his or her 
daily functioning.
    (4) A condition in which a person is addicted to or dependent on 
drugs as evidenced by habitual use or a clear sense of need for the 
drug.
    (5) The use of prescribed or otherwise legally obtainable medication 
taken in such a dosage that a temporary delay in taking such medication 
might result in unacceptable incapacity. Examples of such medications 
are certain dosages or requirements for steroids, anticoagulants, 
antiarrhythmics, sedatives, and tranquilizers.
    F. Physical Fitness Standards for Security Police Officers.
    All persons authorized to carry firearms must meet a minimum 
standard of physical fitness. There are two categories for such persons: 
Offensive Combative and Defensive Combative. Persons not authorized to 
carry firearms are exempt from these physical fitness standards.
    (1) Offensive Combative Standard must be met by all security police 
officers assigned to response force duties. The standard is a one (1) 
mile run with a maximum qualifying time of 8 minutes 30 seconds and a 40 
yard prone-to-running dash with a maximum qualifying time of 8.0 
seconds.
    (2) Defensive Combative Standard must be met by all other security 
police officers authorized to carry firearms. The standard is

[[Page 787]]

one-half (0.5) mile run with a maximum qualifying time of 4 minutes 40 
seconds and a 40 yard prone-to-running dash with a maximum qualifying 
time of 8.5 seconds.
    (3) Qualification in the appropriate combative standard must be 
accomplished once every twelve months and under the supervision of the 
protective force training officer or other individuals designated by the 
responsible DOE field office.
    (4) Medical Certification.
    (a) Each individual who participates in a physical fitness training 
program to prepare to meet the physical fitness standards set forth in 
this appendix shall first be certified by a designated physician that he 
or she is medically fit to participate in the program. This 
certification shall be obtained not more than 30 days prior to each 
individual entering the physical fitness training program.
    (b) Before any individual takes the physical fitness standards test 
he or she shall first be certified by a designated physician that he or 
she is medically fit to take the physical fitness qualification test. 
This certification shall be obtained not more than 30 days before taking 
the physical fitness qualification test.
    (c) Individuals who require less than 30 days training prior to 
actual testing to meet the physical fitness standards need only obtain a 
single medical certification.
    (5) Initial Qualification Time Limit. Individuals authorized to 
carry firearms shall meet the applicable physical fitness standard by 
September 30, 1994 and annually, thereafter using the date of initial 
qualification as the anniversary date.
    (6) New Employees. Individuals authorized to carry firearms who are 
employed after September 30, 1993 shall meet the applicable physical 
fitness standard prior to his or her initial assignment to duties which 
requires such individual to carry firearms.
    (7) Training Program. Incumbent security police officers shall 
participate in a physical fitness training program.
    (8) Retesting. During each testing period a security police officer 
shall be permitted a maximum of six (6) and a minimum of two (2) 
opportunities to qualify or requalify before such security police 
officer must enter a training program or is removed from a security 
police officer position.
    G. Waiver of Security Police Officer Medical Standards and Time 
Extension to Meet Physical Fitness Standards.
    (1) Waivers of elements of the medical standards of this appendix 
may be granted for certain otherwise disqualifying medical or physical 
deficiencies by the cognizant field office management provided that:
    (a) The DOE field organization authority, in consultation with a 
designated physician, determines that a certain medical or physical 
defect may be considered for waiver without compromising the intent of 
these medical standards to assure that all security police officers are 
capable of safely and effectively performing all normal and emergency 
duties.
    (b) The individual demonstrates by medical examination and/or 
practical test, as determined necessary by a designated physician, the 
ability to perform effectively and safely all routine and emergency 
duties.
    (c) A statement of demonstrated ability must be prepared by a 
designated physician and must clearly (1) identify the individual, (2) 
state the nature and degree of the specific medical or physical defect, 
and (3) record the satisfactory medical evaluation and/or performance of 
the practical test required by a designated physician.
    (d) Waivers shall be reviewed, revalidated, and reissued at 
intervals not to exceed one (1) year.
    (e) Individuals who have been adversely affected by application of 
the standards may appeal the denial of waiver to the cognizant DOE 
safeguards and security field office for review within 60 days after the 
adverse action. Further evidence may be offered relating solely to the 
medical or physical fitness of the individual involved. Such individual 
may select a representative of his or her own choice to assist and/or 
appear in the individual's behalf in any appeal. After findings and a 
determination have been made at the field office level, such individual 
has a right to petition the Director of Safeguards and Security, DOE 
Headquarters, within 30 days of the field office's determination for a 
final determination based upon his or her review of the record of the 
case.
    (2) There will be no waivers granted from the physical fitness 
standards set forth in paragraph F of this appendix. However, time 
extensions not to exceed 6 months may be granted on a case-by-case basis 
for those individuals who, because of a temporary medical or physical 
condition as certified by a designated physician, are unable to satisfy 
the physical fitness standards within the required time period without 
suffering undue physical harm.
    (H) Security Officer Medical Qualification Standards.
    (1) General Qualifications. The examinee shall possess mental, 
sensory, and motor skills as required to perform safely and effectively 
all assigned job duties. Such qualifications include:
    (a) Mental alertness and reliable judgment.
    (b) Acuity of senses and ability of expression sufficient to allow 
accurate communication by written, spoken, audible, visible, or other 
signals.
    (c) Motor power, range of motion, neuro-muscular coordination, and 
dexterity.
    (2) Specific Minimum Qualifications.
    (a) Head, Face, Neck, and Scalp. Configuration suitable for fitting 
and effective use of personal protective equipment when the use

[[Page 788]]

of such equipment is required by assigned normal or emergency job 
duties.
    (b) Nose. Ability to detect odor of products of combustion and of 
tracer or marker gases.
    (c) Mouth and Throat. Capacity for clear and audible speech as 
required for effective communication on the job.
    (d) Ears. Hearing loss not to exceed 50 db average at 500, 1000, and 
2000 Hz in one ear (by ISO 1964 or ANSI 1969 audiometry).
    (e) Eyes. Near and distant visual acuity, with or without correction 
of at least 20/40 in the better eye. One-eyed individuals may qualify.
    I. Security Officer Medical Disqualification Standards.
    (1) Freedom from Incapacity. The examinee shall be free of any 
condition, habit, or practice which could reasonably be expected to 
result in sudden, subtle, or unexpected incapacitation.
    (2) Conditions for Medical Disqualification. The presence of any of 
the following conditions normally shall disqualify the examinee from 
employment as a security officer.
    (a) Respiratory. Significant pulmonary pathology or decrease in 
pulmonary function which could interfere with the safe and effective 
performance of assigned job duties.
    (b) Cardiovascular.
1. Ischemic Heart Disease
2. Myocardial Infarction
3. Coronary Insufficiency
4. Angina Pectoris
5. Heart Failure
6. Significant Arrhythmia
7. Arterial Aneurysm
8. Significant Peripheral Vascular Insufficiency

    (c) Endocrine/Nutritional/Metabolic.
    (1) Diabetes Mellitus. Uncontrolled diabetes, ketoacidosis, or 
diabetic coma within the previous two years.
    (2) Obesity. Obesity of such degree that it would interfere with the 
safe and effective performance of normal and emergency job duties.
    (d) Hematopoietic Dysfunction. Clinically significant hematopoietic 
disorders which may interfere with the safe and effective performance of 
assigned job duties.
    (e) Malignant Neoplasms. Malignant neoplastic disease.
    (f) Neurological.
    (1) History of epilepsy or other convulsive disorder.
    (2) History of any disturbance of consciousness or neurological 
disease or any other presently existing condition that may interfere 
with the safe and effective performance of assigned job duties.
    (g) Mental and Emotional. An established history or clinical 
diagnosis of any of the following:
    (1) Any psychological or mental condition which could cause impaired 
alertness, judgment, or motor ability. A history of clinically 
significant emotional or behavioral problems shall require thorough 
clinical evaluation which may include, but not necessarily be limited 
to, psychological testing and psychiatric evaluation.
    (2) Attempted suicide or an expressed threat of suicide.
    (3) A condition in which a person's intake of alcohol is sufficient 
to damage his or her physical health, job performance, personal 
functioning, or when alcohol has become a prerequisite to his or her 
daily functioning.
    (4) A condition in which a person is addicted to or dependent on 
drugs as evidenced by habitual use or a clear sense of need for the 
drug.
    (5) The use of prescribed or otherwise legally obtainable medication 
taken in such a dosage that a temporary delay in taking such medication 
might result in unacceptable incapacity. For example, certain dosages or 
requirements for steroids, anticoagulants, antiarryhythmics, sedatives, 
tranquilizers, etc.
    J. Waiver of Security Officer Medical Standards.
    Waivers of elements of the medical standards of this appendix may be 
granted for certain otherwise disqualifying medical or physical 
deficiencies by the cognizant field office management provided that:
    (1) The DOE field organization authority, in consultation with a 
designated physician, determines that a certain medical or physical 
defect may be considered for waiver without compromising the intent of 
these medical standards to assure that all security officers are capable 
of safely and effectively performing all normal and emergency duties.
    (2) The individual demonstrates by medical examination and/or 
practical test, as determined necessary by a designated physician, the 
ability to perform effectively and safely all routing and emergency 
duties.
    (3) A statement of demonstrated ability must be prepared by a 
designated physician and must clearly (1) identify the individual, (2) 
state the nature and degree of the specific medical or physical defect, 
and (3) record the satisfactory medical evaluation and/or performance of 
the practical test required by a designated physician.
    (4) Waivers shall be reviewed, revalidated, and reissued at 
intervals not to exceed two (2) years.
    (5) Individuals who have been adversely affected by application of 
these medical standards may appeal the denial of waiver to the cognizant 
DOE safeguards and security field office for review within 60 days after 
the adverse action. Further evidence may be offered relating solely to 
the medical or physical fitness of the individual involved. Such 
individual may select a representative of his or her own choice to 
assist and appear in the individual's behalf in any appeal. After 
findings and a determination have been made at

[[Page 789]]

the field office level, such individual has a right to petition the 
Director of Safeguards and Security, DOE Headquarters within 30 days of 
the field office's determination, for a final determination based upon 
his or her review of the record of the case.

  Appendix B to Subpart B to Part 1046--Training and Qualification for 
                      Security Skills and Knowledge

    A. Applicability. This appendix B to subpart B of part 1046 
specifies performance oriented requirements for the security training 
and qualification of DOE contractor security officers and security 
police officers, including Special Response Team members.
    B. Training and Qualifications.
    (1) DOE contractors responsible for protective force personnel will 
establish formal qualification requirements to ensure the competencies 
needed by protective force members to perform the tasks required to 
fulfill their assigned responsibilities. The qualification requirements 
will be supported by a formal training program which develops and 
maintains, in an effective and efficient manner, the knowledge, skills 
and abilities required to perform assigned tasks. The qualification and 
training programs will be based upon criteria established by the Central 
Training Academy (CTA) and approved by the Director, Office of 
Safeguards and Security, in coordination with program offices. The 
formal qualification and training program shall:
    (a) Be based on a valid and complete set of job tasks, with 
identified levels of skills and knowledge needed to perform the tasks;
    (b) Be aimed at achieving a well-defined, minimum level of 
competency required to perform each task acceptably;
    (c) Employ standardized lesson plans with clear performance 
objectives as a basis for instruction;
    (d) Include valid performance-based testing to determine and certify 
job readiness (i.e. qualification);
    (e) Be documented so that individual and overall training status is 
easily accessible. Individual training records shall be retained until 1 
year after termination of the employee as a member of the protective 
force, unless a longer retention period is specified by other 
requirements.
    (2) DOE contractors responsible for training protective force 
personnel shall prepare and review annually a task analysis detailing 
all of the required actions for a specific job assignment. The task 
analysis shall be used to prepare a job description and as a basic input 
document for local training requirements and be approved by the Head of 
the Field Element.
    (3) Security Officers.
    (a) Training requirements. Prior to initial assignment to duty, each 
security officer shall successfully complete a basic training course 
designed to provide the minimum level of skills and knowledge needed to 
competently perform all tasks associated with security officer job 
responsibilities. The required tasks and minimum levels of competency 
shall be determined by a site-specific job analysis, but will include 
task areas found in paragraph (3)(c) of this appendix as appropriate. 
The training program will be approved by the Head of the Field 
Organization and where applicable will include, but not necessarily be 
limited to, the following types of instruction:
    1. Orientation/standards of conduct;
    2. Security education/operations and material control and 
accountability;
    3. Safety training;
    4. Legal requirements and responsibilities;
    5. Weaponless self-defense;
    6. Intermediate force weapons;
    7. Communications;
    8. Vehicle operations; and
    9. Post and patrol operations.
    (b) Refresher Training. Each security officer will successfully 
complete a course of refresher training at least every 12 months to 
maintain the minimum level of competency required for the successful 
performance of tasks associated with security officer job 
responsibilities. The type and intensity of training shall be based on a 
site-specific job analysis and will be approved by the Head of the Field 
Organization. Failure to achieve a minimum level of competency shall 
result in the security officer's placement in a remedial training 
program. The remedial training program will be tailored to provide the 
security officer with the necessary training to afford a reasonable 
opportunity to meet the level of competency required by the job 
analysis. Failure to demonstrate competency at the completion of the 
remedial program shall result in loss of security officer status.
    (c) Knowledge, Skills and Abilities. Each security officer shall 
possess the skills necessary to protect DOE security interests from 
theft and other acts that may cause adverse impacts on national security 
or the health and safety of the public. The requirements for each 
security officer to demonstrate proficiency, familiarity, knowledge, 
skills, and abilities of the responsibilities identified in the job 
analysis include, but are not limited to:
    1. Procedures for conducting physical checks of repositories 
containing classified matter;
    2. Operation of all vehicles as required by duty assignment;
    3. Site and facility policies and procedures governing the security 
officer's role in site protection;
    4. Federal and state-granted authority applicable to assigned 
activities and relative

[[Page 790]]

responsibilities between the protective force and other law enforcement 
agencies;
    5. Post or patrol operations including:
a. Access control systems, procedures and operation
b. Contraband detection
c. Search techniques for persons, packages and vehicles
d. Badging and escort responsibilities
e. Familiarity and recognition of various types of sensitive matter 
being protected including the normal location, routine uses, and 
movements of the material at the duty post
f. Incident reporting
g. Methods of weaponless self defense

    (4) Security Police Officers.
    (a) Training requirements. Prior to initial assignment to duty, each 
security police officer shall successfully complete a basic training 
course designed to provide the minimum level of skills and knowledge 
needed to competently perform all tasks associated with security police 
officer job responsibilities. The required tasks and minimum levels of 
competency will be based on a site-specific job analysis, but will 
include task areas found in paragraph (4)(c) of this appendix as 
appropriate. The training program will be approved by the Head of the 
Field Organization and where applicable will include, but not 
necessarily be limited to, the following types of instruction:
1. Firearms training;
2. Orientation/standards of conduct;
3. Physical training;
4. Security education/operations and material control and 
accountability;
5. Safety training;
6. Legal requirements and responsibilities;
7. Tactical training;
8. Weaponless self-defense;
9. Intermediate force weapons;
10. Communications;
11. Vehicle operations; and
12. Post and patrol operations.

    (b) Refresher Training. Each security police officer shall 
successfully complete a course of refresher training at least every 12 
months to maintain the minimum level of competency required for the 
successful performance of tasks associated with security police officer 
job responsibilities. The type and intensity of training will be 
determined by a site-specific job analysis and will be approved by the 
Head of the Field Organization. Failure to achieve a minimum level of 
competency will result in the security police officer's placement in a 
remedial training program. The remedial training program will be 
tailored to provide the security police officer with the necessary 
training to afford a reasonable opportunity to meet the level of 
competency required by the job analysis. Failure to demonstrate 
competency at the completion of the remedial program shall result in 
loss of security police officer status.
    (c) Knowledge, Skills and Abilities. Each security police officer 
shall possess the individual and team skills necessary to enable that 
security police officer to protect DOE security interests from theft, 
sabotage, and other acts that may cause adverse impacts on national 
security or the health and safety of the public and to protect life and 
property. The requirements for each security police officer to 
demonstrate proficiency, familiarity, knowledge, skills, and abilities 
of the responsibilities identified in the job analysis include, but are 
not limited to:
    1. Knowledge and proficiency in the use and care of all weapons as 
required by duty assignment;
    2. Operation of all vehicles as required by duty assignment;
    3. Operation of all communication equipment as required by duty 
assignment;
    4. Knowledge of and the ability to apply site and facility policies 
and procedures governing the security police officer's role in site 
protection;
    5. Knowledge of Federal and state-granted authorities applicable to 
assigned activities and the relative responsibilities between the 
protective force and local law enforcement agencies in both normal and 
emergency operations.
    6. Knowledge of and the ability to apply DOE policy on the use of 
deadly force and limited arrest authority as set forth in 10 CFR part 
1047;
    7. Proficiency in post and patrol operations including:
a. Access control systems, procedures and operation
b. Contraband detection
c. Search techniques and systems for individuals, packages and vehicles
d. Badging and escort responsibilities
e. Response to and assessment of alarm annunciations and other 
indications of intrusion
f. Familiarity and recognition of various types of sensitive matter 
being protected including the normal location, routine uses, and 
movements of the material at the assigned duty post
g. Observation and physically checking buildings, rooms and repositories 
containing classified matter
h. Incident reporting
i. Response to civil disturbances (e.g., strikes, demonstrators)
j. Methods of self-defense and of arrest and detention
k. Basic procedures and elements of investigations
l. Tactical skills

    (5) Special Response Team.
    (a) Training requirements. Prior to initial assignment to duties as 
a Special Response Team member, a security police officer shall

[[Page 791]]

successfully complete a basic training course designed to provide the 
minimum level of skills and knowledge needed to competently perform all 
tasks associated with Special Response Team job responsibilities. The 
required tasks and minimum levels of competency will be based on a site-
specific job analysis, but will include the task areas identified for 
security police officers and specialized task areas found in paragraph 
(5)(c) of this appendix as appropriate. The training program will be 
approved by the Head of the Field Organization.
    (b) Refresher Training. Each security police officer assigned as a 
Special Response Team member will successfully complete a course of 
refresher training at least every 12 months to maintain the minimum 
level of competency required for the successful performance of tasks 
associated with security police officer and Special Response Team job 
responsibilities. The type and intensity of training will be determined 
by a site-specific job analysis and will be approved by the Head of the 
Field Organization.
    (c) Knowledge, Skills and Abilities. Special Response Team members 
will be security police officers with special training and shall possess 
the individual and team skills to provide additional protection 
capability as demanded by the particular targets, threats and 
vulnerabilities existing at their assigned DOE facilities. In addition 
to security police officer requirements, the requirements for each 
Special Response Team member to demonstrate proficiency, familiarity, 
knowledge, skills, and abilities of the responsibilities identified in 
the job analysis include, but are not limited to:
    1. Operate as a member of a mobile disciplined response team to 
engage and defeat adversaries as defined by the approved threat guidance 
for the facility.
    2. Provide and operate special weapons and other equipment which may 
be necessary to protect a particular facility or to effectively engage 
an adversary with advanced capabilities.
    3. Operate from special tactical vehicles which may be necessary for 
the protection of a particular facility.
    (6) Specialized Requirements. Each person who is assigned 
specialized responsibilities outside the scope of normal security police 
officer and Special Response Team duties shall successfully complete the 
appropriate basic and required periodic training. This training will 
enable the individual to achieve and maintain the minimum level of skill 
and knowledge needed to competently perform the tasks associated with 
the specialized job responsibilities, as well as maintain mandated 
certification, if applicable. Such personnel include, but are not 
limited to, flight crews, instructors, armorers, Central Alarm System 
operators, crisis negotiators, investigators, canine handlers, and law 
enforcement specialists. The scope of such duties will be based on site-
specific needs.
    (7) Supervisors.
    (a) Training Requirements. Protective force personnel who are 
assigned supervisory responsibilities shall successfully complete the 
appropriate basic and annual training necessary to achieve and maintain 
the minimum level of skill and knowledge needed to competently perform 
their supervisory job responsibilities. The required tasks and minimum 
levels of competency will be based on a site-specific job analysis and 
the specialized task areas found in paragraph (7)(b) of this appendix as 
appropriate.
    (b) Knowledge, Skills and Abilities. Each supervisor shall possess 
the skills necessary to effectively direct the actions of assigned 
personnel to protect DOE security interests from theft and other acts 
that may cause adverse impacts on national security or the health and 
safety of the public. The requirements for each supervisor to 
demonstrate proficiency, familiarity, knowledge, skills, and abilities 
of the responsibilities identified in the job analysis include, but are 
not limited to:
    1. Knowledge of the duties and qualifications of all supervised 
personnel;
    2. Familiarity with the basic operating functions of facilities for 
which the supervisor has protection responsibilities;
    3. Assurance that subordinates and their equipment are ready for 
duty at the start of each duty shift and the inspection of each duty 
post at least twice per shift, personally or by other means;
    4. Assurance that all duty logs and reports have been properly 
completed, distributed, and acted upon.
    (8) Training Exercises. Exercises of various types will be included 
in the training process for the purposes of achieving and maintaining 
skills and assessing individual and team competency levels. The types 
and frequency of training exercises are to be determined by the Head of 
the Field Organization or by the training needs analysis conducted as 
part of the training program. The training program will include as a 
minimum, the following:
    (a) General. At least monthly, exercises shall be conducted 
involving each shift. These exercises are to be planned so as to 
exercise the protective force's ability to prevent the successful 
completion of those adversarial acts defined in the approved site-threat 
statement.
    (b) Special Response Teams. Personnel assigned Special Response Team 
responsibilities shall participate in exercises at least monthly. Such 
exercises will involve the type of situations and scenarios appropriate 
to site-specific conditions.
    (c) Local Law Enforcement Agencies. Protective forces shall request 
the FBI and local law enforcement agencies that would assist

[[Page 792]]

the protective force during an incident to participate in exercises at 
least annually.
    (d) Records of each training exercise shall be prepared for 
management review and planning and retained for a period of 1 year, 
unless a longer retention period is specified by other requirements.
    (9) Firearms Qualification Standards.
    (a) No persons shall be authorized to carry a firearm as a security 
police officer until the responsible Head of the Field Organization is 
assured that the individual who is to be armed is qualified in 
accordance with firearms standards.
    (b) As a minimum, each security police officer shall meet the 
applicable firearms qualification standards every 6 months. The local 
DOE Operations Office shall permit the qualification to be accomplished 
any time prior to the actual 6 month requalification date. The actual 
qualification date will serve to establish a new requalification date 
for firearms qualification.
    (c) The DOE expects that protective force personnel will maintain 
firearms proficiency on a continuing basis. Therefore, in the case of a 
headquarters or field audit, or other situation directed by the Head of 
the Field Element, a security police officer may be required to 
demonstrate the ability to meet qualification standards. Failure to meet 
the performance standard will be treated as if the individual failed the 
first attempt during routine semiannual qualification. In this event the 
requirements of paragraphs (h), (i) and (j) of part 9 of appendix B 
subpart B will be followed.
    (d) Each security police officer shall qualify with all weapons 
required by duty assignment. Each security police officer shall be 
required to qualify with each firearm as indicated in the DOE 
requirements of the DOE qualification courses.
    (e) Each security police officer shall qualify with the same type of 
firearm and ammunition equivalent in trajectory and recoil as used while 
on duty. This ammunition shall be listed on the DOE approved ammunition 
list.
    (f) Each security police officer shall be given a basic principles 
of firearms safety presentation prior to any range activity. This does 
not require that a firearms safety presentation be given for each course 
of fire, but does require that prior to the start of range training or 
qualification for a given period (e.g., initial qualification, 
semiannual (every 6 months) qualification, training or range practice) 
each security police officer shall be given a range safety presentation.
    (g) Only courses of fire approved by the Office of Safeguards and 
Security (SA-10) as standardized DOE qualification courses, shall be 
used for firearms qualification.
    (h) Security police officers shall be allowed two initial attempts 
to qualify semiannually. A Range Master or other person in charge of the 
range will state to security police officer(s) on the firing line that 
``THIS IS A QUALIFYING RUN.'' Once this statement is made by the Range 
Master or person in charge, ``this qualifying run'' will constitute a 
qualification attempt. Each security police officer will be provided two 
qualifying attempts. The security police officer shall qualify during 
one of these attempts.
    (i) Failure to qualify shall result in suspension of a security 
police officer's authority under section 161.k. of the Atomic Energy Act 
of 1954, as amended, to carry firearms and to make arrests. The security 
police officer will then enter a standardized, remedial firearms 
training program developed by the Central Training Academy and approved 
by DOE. The remedial firearms training program will be a combination of 
basic weapon manipulation skills, firearms safety, and an additional 
segment of time tailored to provide the security police officer with the 
necessary individual training to afford a reasonable opportunity to meet 
the firearms qualification standards.
    (j) Any security police officer who, upon completion of the remedial 
training course, fails to qualify after two subsequent, additional 
attempts shall lose the security police officer status and his authority 
to carry firearms and to make arrests under section 161.k. of the Atomic 
Energy Act of 1954.
    (k) Any security police officer who requires remedial training on 
three (3) consecutive semiannual qualification periods, with the same 
firearm, shall lose security police officer status.
    (l) An appropriate DOE record shall be maintained for each security 
police officer who qualifies or who attempts to qualify. Records will be 
retained until 1 year after separation of a protective force officer 
from security police officer duties, unless a longer retention period is 
specified by other requirements. A supervisor or the training officer 
will be designated in writing as the individual authorized to certify 
the validity of the scores.



PART 1047--LIMITED ARREST AUTHORITY AND USE OF FORCE BY PROTECTIVE FORCE OFFICERS--Table of Contents




                           General Provisions

Sec.
1047.1  Purpose.
1047.2  Scope.
1047.3  Definitions.
1047.4  Arrest authority.
1047.5  Exercise of arrest authority--general guidelines.
1047.6  Use of physical force when making an arrest.
1047.7  Use of deadly force.


[[Page 793]]


    Authority: Sec. 2201, Pub. L. 83-703, 68 Stat. 919 (42 U.S.C. 2011 
et seq.); Department of Energy Organization Act, Pub. L. 95-91, 91 Stat. 
565 (42 U.S.C. 7101 et seq.).

    Source: 50 FR 30929, July 31, 1985, unless otherwise noted.



                           General Provisions



Sec. 1047.1  Purpose.

    The purpose of this part is to set forth Department of Energy 
(hereinafter ``DOE'') policy and procedures on the exercise of arrest 
authority and use of force by protective force personnel.



Sec. 1047.2  Scope.

    This part applies to DOE and DOE contractor protective force 
personnel armed pursuant to section 161.k. of the Atomic Energy Act of 
1954 (42 U.S.C. 2011 et seq.) to protect nuclear weapons, special 
nuclear material, clasified matter, nuclear facilities, and related 
property.



Sec. 1047.3  Definitions.

    (a) Act means section 161.k. of the Atomic Energy Act of 1954, as 
amended, (42 U.S.C. 2201.k.).
    (b) Arrest means any act, including taking, seizing or detaining of 
a person, that indicates an intention to take a person into custody and 
that subjects the person to the control of the person making the arrest.
    (c) Citizen's Arrest means that type of arrest which can be made by 
citizens in general and which is defined in the statutory and case law 
of each state.
    (d) Contractor means contractors and subcontractors at all tiers.
    (e) LLEA means local law enforcement agencies: city, county; and 
state.
    (f) Offender means the person to be arrested.
    (g) Protective Force Officer means any person authorized by DOE to 
carry firearms under section 161.k. of the Atomic Energy Act of 1954.
    (h) Special Nuclear Material (SNM) means: (1) Plutonium, uranium 
enriched in the isotope 233 or in the isotope 235, and any other 
material which DOE, pursuant to the provisions of Section 51 of the 
Atomic Energy Act of 1954, determines to be special nuclear material, 
but does not include source material; or (2) any material artificially 
enriched by any of the foregoing, but does not include source material.



Sec. 1047.4  Arrest authority.

    (a) Under the Act, the authority of a DOE protective force officer 
to arrest without warrant is limited to the performance of official 
duties and should be exercised only in the enforcement of:
    (1) The following laws only if property of the United States which 
is in the custody of the DOE or its contractors is involved:
    (i) Felonies: (A) Arson--18 U.S.C. 81--(only applicable to ``special 
maritime and territorial jurisdiction of the United States'' as defined 
by 18 U.S.C. 7).
    (B) Building or property within special maritime and territorial 
jurisdiction--18 U.S.C. 1363--(only applicable to ``special maritime and 
territorial jurisdiction of United States'' as defined by 18 U.S.C. 7).
    (C) Civil disorder--18 U.S.C. 231.
    (D) Communication lines, stations or systems--18 U.S.C. 1362.
    (E) Concealment, removal or mutilation generally--18 U.S.C. 2071.
    (F) Conspiracy--18 U.S.C. 371--(violation of this section is a 
felony if the offense which is the object of the conspiracy is a 
felony).
    (G) Destruction of motor vehicles or motor vehicle facilities--18 
U.S.C. 33.
    (H) Explosives--18 U.S.C. 844(f).
    (I) Government property or contracts--18 U.S.C. 1361--(violation of 
section is a felony if property damage exceeds $100).
    (J) Military, naval or official passes--18 U.S.C. 499--(pertains to 
forging or altering official passes).
    (K) Personal property of the United States--18 U.S.C. 2112.
    (L) Public money, property, or records--18 U.S.C. 641--(violation of 
section is a felony if the property value exceeds $100).
    (M) Sabotage--18 U.S.C. 2151, 2153-2156.
    (N) Violation under Physical Security Convention--18 U.S.C. 831.
    (ii) Misdemeanors: (A) Conspiracy--18 U.S.C. 371--(violation of 
section is a misdemeanor if the offense which is the object of the 
conspiracy is a misdemeanor).

[[Page 794]]

    (B) Explosives--18 U.S.C. 844(g).
    (C) Government property or contracts--18 U.S.C. 1361--(violation of 
section is a misdemeanor if the property damage does not exceed $100).
    (D) Official badges, identification cards, other insignia--18 U.S.C. 
701--(pertains to the manufacture, sale, and possession of official 
insignia).
    (E) Public money, property or records--18 U.S.C. 641--(violation of 
section is a misdemeanor if the property value does not exceed $100).
    (2) The following criminal provisions of the Atomic Energy Act:
    (i) Felonies: (A) Section 222. Violation of Specific Sections--42 
U.S.C. 2272.
    (B) Section 223. Violation of Sections Generally. 42 U.S.C. 2273.
    (C) Section 224. Communication of Restricted Data--42 U.S.C. 2274.
    (D) Section 225. Receipt of Restricted Data--42 U.S.C. 2275.
    (E) Section 226. Tampering with Restricted Data--42 U.S.C. 2276.
    (ii) Misdemeanors: (A) Section 227. Disclosure of Restricted Data--
42 U.S.C. 2277.
    (B) Section 229. Trespass Upon Commission (DOE) Installations--42 
U.S.C. 2278.
    (C) Section 230. Photographing, etc., of Commission (DOE) 
Installations--42 U.S.C. 2278.b.
    (b) Felony Arrests. A protective force officer is authorized to make 
an arrest for any felony listed in paragraph (a)(1)(i) or (a)(2)(i) of 
this section if the offense is committed in the presence of the 
protective force officer or if he or she has reasonable grounds to 
believe that the individual to be arrested has committed or is 
committing the felony.
    (1) In the presence of means that the criminal act must have taken 
place in the physical presence of (under the observation of) the 
protective force officer. Knowledge of the existence of a criminal 
violation obtained in any other way (e.g., information from other 
persons) is not sufficient to permit an arrest under this part of the 
Act.
    (2) Reasonable grounds to believe means that, at the moment of 
arrest, either the facts and circumstances within the knowledge of the 
protective force officer, or of which the protective force officer had 
reasonably trustworthy information, were sufficient to cause a prudent 
person to believe that the suspect had committed or was committing the 
offense.
    (c) Misdemeanor Arrest. A protective force officer is authorized to 
make an arrest for any misdemeanor listed in paragraph (a)(1)(ii) or 
(a)(2)(ii) of this section if the offense is committed in the presence 
of the protective force officer.
    (d) Other Authority. The Act does not provide authority to arrest 
for violations of state criminal statutes or for violations of federal 
criminal statutes other than those listed in paragraph (a) of this 
section. Therefore, arrests for violations of such other criminal 
statutes shall be made by other peace officers (e.g., U.S. Marshals or 
Federal Bureau of Investigation (FBI) agents for federal offenses; LLEA 
officers for state or local offenses) unless:
    (1) The protective force officer can make a citizen's arrest for the 
criminal offense under the law of the state,
    (2) The protective force officer is an authorized state peace 
officer or otherwise deputized by the particular state to make arrests 
for state criminal offenses, or
    (3) The protective force officer has been deputized by the U.S. 
Marshals Service or other federal law enforcement agency to make arrests 
for the criminal offense.
    (e) In those locations which are within the ``special maritime and 
territorial jurisdiction of the United States,'' as defined in 18 U.S.C. 
7, the Assimilative Crimes Act (18 U.S.C. 13) adopts the law of the 
state for any crime under state law not specifically prohibited by 
Federal statute and provides for federal enforcement of that state law. 
The local DOE Office of Chief Counsel, in coordination with contractor 
legal counsel, as appropriate, shall provide guidance in this matter.



Sec. 1047.5  Exercise of arrest authority--general guidelines.

    (a) In making an arrest, the protective force officer should 
announce his or her authority (e.g., ``Security Officer'') and that the 
person is under arrest prior to taking the person into custody. If the 
circumstances are such

[[Page 795]]

that making such announcements would be useless or dangerous to the 
officer or others, the protective force officer may dispense with these 
announcements.
    (b) The protective force officer at the time and place of arrest may 
search any arrested person for weapons and criminal evidence and the 
area into which the arrested person might reach for a weapon or to 
destroy evidence. Guidance on the proper conduct and limitations in 
scope of search and seizure of evidence shall be obtained from the local 
DOE Office of Chief Counsel, in coordination with contractor legal 
counsel, as appropriate.
    (c) After the arrest is effected, the arrested person shall be 
advised of his or her constitutional right against self-incrimination 
(Miranda warnings). If the circumstances are such that making such 
advisement is dangerous to the officer or others, this requirement may 
be postponed until the immediate danger has passed.
    (d) Custody of the person arrested should be transferred to other 
federal law enforcement personnel (i.e., U.S. Marshals or FBI agents) or 
to LLEA personnel, as appropriate, as soon as practicable. The arrested 
person should not be questioned or required to sign written statements 
unless:
    (1) Questioning is necessary for security or safety reasons (e.g., 
questioning to locate a bomb), or
    (2) Questioning is authorized by other federal law enforcement 
personnel or LLEA officers responsible for investigating the crime.



Sec. 1047.6  Use of physical force when making an arrest.

    (a) When a protective force officer has the right to make an arrest 
as discussed above, the protective force officer may use only that 
physical force which is reasonable and necessary to apprehend and arrest 
the offender; to prevent the escape of the offender; or to defend 
himself or herself or a third person from what the protective force 
officer believes to be the use or threat of imminent use of physical 
force by the offender. It should be noted that verbal abuse alone by the 
offender cannot be the basis under any circumstances for use of physical 
force by a protective force officer.
    (b) Protective force officers shall consult the local DOE Office of 
Chief Counsel and contractor legal counsel, as appropriate, for 
additional guidance on use of physical force in making arrests.



Sec. 1047.7  Use of deadly force.

    (a) Deadly force means that force which a reasonable person would 
consider likely to cause death or serious bodily harm. Its use may be 
justified only under conditions of extreme necessity, when all lesser 
means have failed or cannot reasonably be employed. A protective force 
officer is authorized to use deadly force only when one or more of the 
following circumstances exists:
    (1) Self-Defense. When deadly force reasonably appears to be 
necessary to protect a protective force officer who reasonably believes 
himself or herself to be in imminent danger of death or serious bodily 
harm.
    (2) Serious offenses against persons. When deadly force reasonably 
appears to be necessary to prevent the commission of a serious offense 
against a person(s) in circumstances presenting an imminent danger of 
death or serious bodily harm (e.g. sabotage of an occupied facility by 
explosives).
    (3) Nuclear weapons or nuclear explosive devices. When deadly force 
reasonably appears to be necessary to prevent the theft, sabotage, or 
unauthorized control of a nuclear weapon or nuclear explosive device.
    (4) Special nuclear material. When deadly force reasonably appears 
to be necessary to prevent the theft, sabotage, or unauthorized control 
of special nuclear material from an area of a fixed site or from a 
shipment where Category II or greater quantities are known or reasonably 
believed to be present.
    (5) Apprehension. When deadly force reasonably appears to be 
necessary to apprehend or prevent the escape of a person reasonably 
believed to: (i) have committed an offense of the nature specified in 
paragraphs (a)(1) through

[[Page 796]]

(a)(4)1 of this section; or (ii) be escaping by use of a 
weapon or explosive or who otherwise indicates that he or she poses a 
significant threat of death or serious bodily harm to the protective 
force officer or others unless apprehended without delay.
---------------------------------------------------------------------------


    \1\ These offenses are considered by the Department of Energy to 
pose a significant threat of death or serious bodily harm.
---------------------------------------------------------------------------

    (b) Additional Considerations Involving Firearms. If it becomes 
necessary to use a firearm, the following precautions shall be observed:
    (1) A warning, e.g. an order to halt, shall be given, if feasible, 
before a shot is fired.
    (2) Warning shots shall not be fired.



PART 1048--TRESPASSING ON STRATEGIC PETROLEUM RESERVE FACILITIES AND OTHER PROPERTY--Table of Contents




Sec.
1048.1  Purpose.
1048.2  Scope.
1048.3  Unauthorized entry.
1048.4  Unauthorized introduction of weapons or dangerous materials.
1048.5  Violations.
1048.6  Posting.
1048.7  Applicability of other laws.

    Authority: Sec. 662, Pub. L. No. 100-531, 102 Stat. 2652 (42 U.S.C. 
7270b); section 6, Pub. L. No. 100-185, 101 Stat. 1280 (18 U.S.C. 
3571(b)(5).

    Source: 56 FR 1910, Jan. 17, 1991, unless otherwise noted.



Sec. 1048.1  Purpose.

    The regulations in this part are issued for the protection and 
security of: (a) The Strategic Petroleum Reserve (SPR), its storage or 
related facilities, and real property subject to the jurisdiction or 
administration, or in the custody of DOE under part B, title I of the 
Energy Policy and Conservation Act, as amended (42 U.S.C. 6231-6247) 
(EPCA); and (b) persons upon the SPR or other property subject to DOE 
jurisdiction under part B, title I of the EPCA.



Sec. 1048.2  Scope.

    The regulations in this part apply to entry into or upon all SPR 
storage or related facilities, and real property subject to DOE 
jurisdiction or administration, or in its custody under part B, title I 
of the EPCA, which have been posted with a notice of the prohibitions 
and penalties contained in this part.



Sec. 1048.3  Unauthorized entry.

    Unauthorized entry into or upon an SPR facility or real property 
subject to this part, without authorization, is prohibited.



Sec. 1048.4  Unauthorized introduction of weapons or dangerous materials.

    Unauthorized carrying, transporting, introducing or causing to be 
introduced into or upon an SPR facility or real property subject to this 
part, of a dangerous weapon, explosive or other dangerous material 
likely to produce substantial injury or damage to persons or property, 
is prohibited.



Sec. 1048.5  Violations.

    Willful unauthorized entry, or willful unauthorized introduction of 
weapons or dangerous materials into or upon real property subject to 
this part, constitutes a violation of these regulations. Violation of 
these regulations is a misdemeanor, and a person convicted of violating 
these regulations is subject to the maximum fine permitted by law, 
imprisonment for not more than one year, or both.



Sec. 1048.6  Posting.

    Notices stating the pertinent prohibitions of Secs. 1048.3 and 
1048.4 and the penalties of Sec. 1048.5 will be conspicuously posted at 
all entrances of each facility or parcel of real property subject to the 
regulations in this part, and at such intervals along the perimeters 
thereof as will provide reasonable assurance of notice to persons about 
to enter.



Sec. 1048.7  Applicability of other laws.

    Nothing in this part shall be construed to affect the applicability 
of the provisions of State law or of any other Federal law.
[56 FR 1910, Jan. 17, 1991. Redesignated at 56 FR 48096, Sept. 24, 1991]

[[Page 797]]



PART 1049--LIMITED ARREST AUTHORITY AND USE OF FORCE BY PROTECTIVE FORCE OFFICERS OF THE STRATEGIC PETROLEUM RESERVE--Table of Contents




Sec.
1049.1  Purpose.
1049.2  Scope.
1049.3  Definitions.
1049.4  Arrest authority.
1049.5  Exercise of arrest authority--General guidelines.
1049.6  Exercise of arrest authority--Use of non-deadly force.
1049.7  Exercise of arrest authority--use of deadly force.
1049.8  Training of SPR Protective Force Officers and qualification to 
          carry firearms.
1049.9  Firearms and firearms incidents.
1049.10  Disclaimer.

    Authority: 42 U.S.C. 7101 et seq.

    Source: 56 FR 58492, Nov. 20, 1991, unless otherwise noted.



Sec. 1049.1  Purpose.

    The purpose of these guidelines is to set forth internal Department 
of Energy (DOE) security policies and procedures regarding the exercise 
of arrest authority and the use of force by DOE employees and DOE 
contractor and subcontractor employees while discharging their official 
duties pursuant to section 661 of the Department of Energy Organization 
Act.



Sec. 1049.2  Scope.

    These guidelines apply to the exercise of arrest authority and the 
use of force, as authorized by section 661 of the Department of Energy 
Organization Act, as amended, 42 U.S.C. 7101 et seq., by employees of 
DOE and employees of DOE's SPR security contractor and subcontractor. 
These policies and procedures apply with respect to the protection of:
    (a) The SPR and its storage or related facilities; and
    (b) Persons upon the SPR or its storage or related facilities.



Sec. 1049.3  Definitions.

    (a) Act means sections 661 of the Department of Energy Organization 
Act, as amended, (42 U.S.C. 7270a).
    (b) Arrest means an act resulting in the restriction of a person's 
movement, other than a brief consensual detention for purposes of 
questioning about a person's identity and requesting identification, 
accomplished by means of force or show of authority under circumstances 
that would lead a reasonable person to believe that he was not free to 
leave the presence of the officer.
    (c) Contractor means a contractor or subcontractor at any tier.
    (d) Deadly force means that force which a reasonable person would 
consider likely to cause death or serious bodily harm.
    (e) Protective Force Officer means a person designated by DOE to 
carry firearms pursuant to section 661 of the Act.
    (f) SPR means the Strategic Petroleum Reserve, its storage or 
related facilities, and real property subject to the jurisdiction or 
administration, or in the custody of the Department of Energy under part 
B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231-
6247).
    (g) Suspect means a person who is subject to arrest by a Protective 
Force Officer as provided in these guidelines.



Sec. 1049.4  Arrest authority.

    (a) Under the Act, the authority of a DOE Protective Force Officer 
to arrest without warrant is to be exercised only in the performance of 
official duties of protecting the SPR and persons within or upon the 
SPR.
    (b) A Protective Force Officer is authorized to make an arrest for a 
felony committed in violation of laws of the United States, or for a 
misdemeanor committed in violation of laws of the United States if the 
offense is committed in the officer's presence.
    (c) A Protective Force Officer also is authorized to make an arrest 
for a felony committed in violation of laws of the United States if the 
Officer has reasonably grounds to believe that the felony has been 
committed, or that the suspect is committing the felony, and is in the 
immediate area of the felony or is fleeing the immediate area of the 
felony. ``Reasonable grounds to believe'' means that the facts and 
circumstances within the knowledge of

[[Page 798]]

the Protective Force Officer at the moment of arrest, and of which the 
Protective Force Officer has reasonably trustworthy information, would 
be sufficient to cause a prudent person to believe that the suspect had 
committed or was committing a felony.



Sec. 1049.5  Exercise of arrest authority--General guidelines.

    (a) In making an arrest, and before taking a person into custody, 
the Protective Force Officer should:
    (1) Announce the Protective Force Officer's authority (e.g., by 
identifying himself as an SPR Protective Force Officer);
    (2) State that the suspect is under arrest; and
    (3) Inform the suspect of the crime for which the suspect is being 
arrested. If the circumstances are such that making these announcements 
would be useless or dangerous to the Officer or to another person, the 
Protective Force Officer may dispense with these announcements.
    (b) At the time and place of arrest, the Protective Force Officer 
may search the person arrested for weapons and criminal evidence, and 
may search the area into which the person arrested might reach to obtain 
a weapon to destroy evidence.
    (c) After the arrest is effected, the person arrested shall be 
advised of his constitutional right against self-incrimination 
(``Miranda warnings''). If the circumstances are such that immediately 
advising the person arrested of this right would result in imminent 
danger to the Officer or other persons, the Protective Force Officer may 
postpone this requirement. The person arrested shall be advised of this 
right as soon as practicable after the imminent danger has passed.
    (d) As soon as practicable after the arrest is effected, custody of 
the person arrested should be transferred to other Federal law 
enforcement personnel (e.g., U.S. Marshals or FBI agents) or to local 
law enforcement personnel, as appropriate, in order to ensure that the 
person is brought before a magistrate without unnecessary delay.
    (e) Ordinarily, the person arrested shall not be questioned or 
required to sign written statements unless such questioning is:
    (1) Necessary to establish the identity of the person arrested and 
the purpose for which such person is within or upon the SPR;
    (2) Necessary to avert an immediate threat to security or safety 
(e.g., to locate a bomb); or
    (3) Authorized by other Federal law enforcement personnel or local 
law enforcement personnel responsible for investigating the alleged 
crime.



Sec. 1049.6  Exercise of arrest authority--Use of non-deadly force.

    (a) When a Protective Force Officer is authorized to make an arrest 
as provided in the Act, the Protective Force Officer may use only that 
degree of non-deadly force that is reasonable and necessary to apprehend 
and arrest the suspect in order to prevent escape or to defend the 
Protective Force Officer or other persons from what the Officer 
reasonably believes to be the use or threat of imminent use of non-
deadly force by the suspect. Verbal abuse by the suspect, in itself, is 
not a basis for the use of non-deadly force by a Protective Force 
Officer under any circumstances.
    (b) Protective Force Officers should consult the local DOE Office of 
Chief Counsel and contractor legal counsel for additional guidance on 
the use of non-deadly force in the exercise of arrest authority, as 
appropriate.



Sec. 1049.7  Exercise of arrest authority--Use of deadly force.

    (a) The use of deadly force is authorized only under exigent 
circumstances where the Protective Force Officer reasonably believes 
that such force is necessary to:
    (1) Protect himself from an imminent threat of death or from serious 
bodily harm;
    (2) Protect any person or persons in or upon the SPR from an 
imminent threat of death or serious bodily harm.
    (b) If circumstances require the use of a firearm by a Protective 
Force Officer, the Officer shall give a verbal warning (e.g., an order 
to halt), if feasible. A Protective Force Officer shall not fire warning 
shots under any circumstances.

[[Page 799]]



Sec. 1049.8  Training of SPR Protective Force Officers and qualification to carry firearms.

    (a) Protective Force Officers shall successfully complete training 
required by applicable Department of Energy orders prior to receiving 
authorization to carry firearms. The Department of Energy Office of 
Safeguards and Security shall approve the course.
    (b) Prior to initial assignment to duty, Protective Force Officers 
shall successfully complete a basic qualification training course which 
equips them with at least the minimum level of competence to perform 
tasks associated with their responsibilities. The basic course shall 
include the following subject areas:

(1) Legal authority, including use of deadly force and exercise of 
limited arrest authority;
(2) Security operations, including policies and procedures;
(3) Security tactics, including tactics for Protective Force Officers 
acting alone or as a group;
(4) Use of firearms, including firearms safety and proficiency with all 
types of weapons expected to be used;
(5) Use of non-deadly weapons, weapon-less self-defense, and physical 
conditioning;
(6) Use of vehicles, including vehicle safety in routine and emergency 
situations;
(7) Safety, first aid, and elementary firefighting procedures;
(8) Operating in such a manner as to preserve SPR sites and facilities;
(9) Communications, including methods and procedures.
    (c) After completing training, and receiving the appropriate 
security clearance, Protective Force Officers shall be authorized to 
carry firearms and exercise limited arrest authority. Protective Force 
Officers shall receive an identification card, which must be carried 
whenever on duty and whenever armed.
    (d) On an annual basis, each Protective Force Officer must 
successfully complete training sufficient to maintain at least the 
minimum level of competency required for the successful performance of 
all assigned tasks identified for Protective Force Officers.
    (e) Protective Force Officers shall be qualified in the use of 
firearms by demonstrating proficiency in the use of firearms on a 
semiannual basis prior to receiving authorization to carry firearms. 
Protective Force Officers shall demonstrate proficiency in the use of 
all types of weapons expected to be used while on duty under both day 
and night conditions. In demonstrating firearms proficiency, Protective 
Force Officers shall use firearms of the same type and barrel length as 
firearms used by Protective Force Officers while on duty, and the same 
type of ammunition as that used by Protective Force Officers on duty. 
Before a Protective Force Officer is qualified in the use of firearms, 
the Officer shall complete a review of the basic principles of firearms 
safety.
    (f) Protective Force Officers shall be allowed two attempts to 
qualify in the use of firearms. Protective Force Officers shall qualify 
in the use of firearms within six months of failing to qualify. If an 
Officer fails to qualify, the Officer shall complete a remedial firearms 
training program. A Protective Force Officer who fails to qualify in the 
use of firearms after completion of a remedial program, and after two 
further attempts to qualify shall not be authorized to carry firearms or 
to exercise limited arrest authority.



Sec. 1049.9  Firearms and firearms incidents.

    (a) Protective Force Officers shall receive firearms of a type 
suitable to adequately protect persons and property within or upon the 
SPR. Firearms and ammunition shall be secured, inventoried, and 
maintained in accordance with applicable Department of Energy orders, 
when not in use.
    (b) The authority of a Protective Force Officer to carry firearms 
and to exercise limited arrest authority shall be suspended if the 
Officer participates in an incident involving the use of firearms. In 
such circumstances, the Officer shall be assigned to other duties, 
pending completion of an investigation.
    (c) Incidents involving the discharge of firearms shall be reported 
to the Department of Energy Headquarters

[[Page 800]]

Emergency Operations Center immediately, and to the SPR Project 
Management Office Security Division within 24 hours. The Strategic 
Petroleum Reserve Project Manager shall appoint a committee to 
investigate the incident.



Sec. 1049.10  Disclaimer.

    These guidelines are set forth solely for the purpose of internal 
Department of Energy guidance. These guidelines do not, and are not 
intended to, and may not be relied upon to, create any substantive or 
procedural rights enforceable at law by any party in any matter, civil 
or criminal. These guidelines do not place any limitations on otherwise 
lawful activities of Protective Force Officers or the Department of 
Energy.



PART 1050--FOREIGN GIFTS AND DECORATIONS--Table of Contents




                           Subpart A--General

Sec.
1050.101  Purpose and scope.
1050.102  Applicability.
1050.103  Definitions.
1050.104  Responsibilities and authorities.

  Subpart B--Guidelines for Acceptance of Foreign Gifts or Decorations

1050.201  Policy against accepting foreign gifts or decorations.
1050.202  Allowable acceptance of gifts.
1050.203  Acceptance of decorations.
1050.204  Advance approval for acceptance of gifts or decorations.

                  Subpart C--Procedures and Enforcement

1050.301  Reports.
1050.302  Use or disposal of gifts and decorations accepted on behalf of 
          the United States.
1050.303  Enforcement.

                 Subpart D--Gifts to Foreign Individuals

1050.401  Prohibition against use of appropriated funds.

Appendix I to Part 1050--DOE Form 3735.2--Foreign Gifts Statement

Appendix II to Part 1050--DOE Form 3735.3--Foreign Travel Statement

    Authority: The Constitution of the United States, Article I, Section 
9; 5 U.S.C. 7342; 22 U.S.C. 2694; 42 U.S.C. 7254 and 7262; 28 U.S.C. 
2461 note.

    Source: 45 FR 53972, Aug. 13, 1980, unless otherwise noted.



                           Subpart A--General



Sec. 1050.101  Purpose and scope.

    These regulations implement the provisions of the Foreign Gifts and 
Decorations Act (5 U.S.C. 7342), which establishes policies and 
procedures pertaining to the acceptance, use, and disposition of gifts 
or decorations from foreign governments. If an employee of Department of 
Energy (DOE) meets the requirements of these regulations, he or she is 
deemed to be in compliance with the DOE Conduct of Employees 
regulations, 10 CFR part 1010.



Sec. 1050.102  Applicability.

    These regulations apply to all DOE employees, including special 
Government employees, and civilian and military personnel of other 
Government agencies regularly detailed to DOE, and to spouses and 
dependents of such personnel. These regulations apply to all employees 
of the Federal Energy Regulatory Commission (FERC) to the extent the 
Commission by rule makes these regulations applicable to FERC employees. 
These regulations do not apply to gifts and bequests accepted by the 
Department as authorized by section 652 of the Department of Energy 
Organization Act (42 U.S.C. 7262), except as set forth in 
Sec. 1050.202(d) of this part. These regulations do not apply to 
assistance from a foreign government for participation by DOE employees 
in foreign cultural exchange programs pursuant to the Mutual Educational 
and Cultural Exchange Act (22 U.S.C. 2458a).



Sec. 1050.103  Definitions.

    (a) Employee means--
    (1) An employee of DOE or FERC as defined by 5 U.S.C. 2105 
(employees of DOE contractors are specifically excluded);
    (2) A special Government employee as defined in 18 U.S.C. 202(a), 
and an expert or consultant who is under contract to the DOE pursuant to 
5 U.S.C. 3109, including, in the case of an organization performing 
services under such section, any individual involved in the performance 
of such services;

[[Page 801]]

    (3) A member of a Uniformed Service or an employee of another 
Government agency assigned or detailed to the DOE or FERC;
    (4) The spouse of an individual described in paragraphs (a)(1) 
through (a)(3) of this section (unless such individual and his or her 
spouse are legally separated) or a dependent (within the meaning ot 
section 152 of the Internal Revenue Code of 1954) of such an individual, 
other than a spouse or dependent who is an employee under paragraphs 
(a)(1) through (a)(3).
    (b) Foreign government means:
    (1) Any unit of foreign governmental authority, including any 
foreign national, State, local, or municipal government;
    (2) Any international or multinational organization whose membership 
is composed of any unit of foreign government described in paragraph 
(b)(1); and
    (3) Any agent or representative of any such unit or such 
organization, while acting as such.
    (c) Gift means a tangible or intangible present (other than a 
decoration) tendered by, or received from, a foreign government.
    (d) Decoration means an order, device, medal, badge, insignia, 
emblem, or award tendered by, or received from, a foreign government.
    (e) Minimal value means that value as defined in regulations 
prescribed by the Administrator of General Services, in consultation 
with the Secretary of State, to reflect changes in the consumer price 
index for the immediately preceding 3-year period in accordance with the 
definition of ``minimal value'' as set forth in the Federal Property 
Management Regulations of title 41 of the Code of Federal Regulations as 
applied to the Utilization, Donation, and Disposal of Foreign Gifts and 
Decorations.
    (f) The Act means the Foreign Gifts and Decorations Act, 5 U.S.C. 
7342.
    (g) Appropriate General Counsel means either the DOE General Counsel 
when the employee involved is an employee of that portion of the DOE 
which excludes FERC, or the FERC General Counsel when the employee 
involved is an employee of FERC.
[45 FR 53972, Aug. 13, 1980, as amended at 59 FR 44896, Aug. 31, 1994]



Sec. 1050.104  Responsibilities and authorities.

    (a) The Director of Administration shall:
    (1) Assure that all employees are given access to or a copy of the 
Act and these regulations;
    (2) Maintain liaison with the Department of State and prepare 
Departmental reports to the Department of State consistent with the Act 
and these regulations;
    (3) Provide advice and assistance on implementation of the act and 
these regulations, in coordination with the Assistant Secretary for 
International Affairs (IA) and the appropriate General Counsel;
    (4) Collect and maintain for public inspection all employee 
statements submitted pursuant to these regulations;
    (5) Arrange for independent appraisal of the value of gifts or 
decorations, upon the request of the General Services Administration or 
the Inspector General (or other appropriate DOE official); and
    (6) Accept and maintain custody and make all determinations 
regarding the use and disposition of all gifts and decorations accepted 
by employees on behalf of the United States, in coordination with IA, 
the appropriate General Counsel, and, for gifts to the Secretary, Deputy 
Secretary or Under Secretary, the appropriate official in the Office of 
the Secretary.
    (b) The Assistant Secretary for International Affairs (IA) shall 
assist the Directorate of Administration, where appropriate, in making 
determinations concerning the effects of the proposed acceptance, use, 
or disposition of a foreign gift or decoration on the foreign relations 
of the United States.
    (c) The appropriate General Counsel shall assist the Directorate of 
Administration in matters relating to the interpretation and application 
of the Act, and these and any related regulations, and shall provide 
counseling and interpretation regarding the Act, and

[[Page 802]]

these and any related regulations, to employees.
    (d) The Inspector General shall investigate suspected violations of 
these regulations pursuant to Sec. 1050.303 below.



  Subpart B--Guidelines for Acceptance of Foreign Gifts or Decorations



Sec. 1050.201  Policy against accepting foreign gifts or decorations.

    (a) The Constitution of the United States, Article I, section 9, 
clause 8, provides that ``* * * no Person holding any Office of Profit 
or Trust under * * * [the United States], shall, without the consent of 
the Congress, accept of any present, Emolument, Office, or Title, of any 
kind whatever, from any * * * foreign State.'' In the Foreign Gifts and 
Decorations Act the Congress consented to the acceptance by Federal 
employees of gifts and decorations with certain constraints and under 
certain procedures. Acceptance of any gift or decoration not consistent 
with this Act, the Department of Energy Organization Act, or the 
regulations in this part is prohibited.
    (b) No employee shall request or otherwise encourage the tender of a 
gift or decoration from a foreign government. No employee shall accept a 
gift or decoration from a foreign government except as provided in 
Secs. 1050.202 or 1050.203 of this part and in accordance with the 
additional procedures set forth in Secs. 1050.204 and 1050.301 of this 
part.



Sec. 1050.202  Allowable acceptance of gifts.

    (a) An employee may accept and retain gifts from foreign governments 
where the gift is tendered or received as a souvenir or mark of 
courtesy, and is of minimal value. Initial responsibility for 
determining the value of a gift lies with the employee.
    (b) Subject to the prior approval requirements described in 
Sec. 1050.204(a) of this part, an employee may accept gifts of more than 
minimal value, tendered as a souvenir or mark of courtesy, where it 
appears that refusal of the gift would likely cause offense or 
embarrassment or otherwise adversely affect the foreign relations of the 
United States. Otherwise, an employee, when offered a gift of more than 
minimal value from a foreign government, other than a gift designated in 
paragraph (c) of this section, should advise the donor that acceptance 
of such gifts by the employee is contrary to the policy of the United 
States. If a gift described in this paragraph is accepted by an employee 
and not immediately returned thereby, it shall be deemed to have been 
accepted on behalf of the United States. Upon acceptance it becomes the 
property of the United States. Within 60 days after acceptance by the 
employee, the gift shall be deposited with the Directorate of 
Administration for disposal or official Departmental use as determined 
by the Directorate of Administration, in accordance with Sec. 1050.302 
of this part, and an appropriate statement shall be filed by the 
employee in accordance with Sec. 1050.301(a) of this part.
    (c) Subject to the prior approval requirements described in 
Sec. 1050.204(a) of this part, an employee may accept and retain gifts 
of more than minimal value:
    (1) Where the gift is in the nature of an educational scholarship.
    (2) Where the gift is in the form of medical treatment.

An employee accepting a gift pursuant to this paragraph shall file an 
appropriate statement in accordance with Sec. 1050.301(a) of this part.
    (d) An employee may accept gifts (whether or not of minimal value) 
of travel or expenses for travel (such as transportation, food, lodging, 
or entertainment) taking place entirely outside of the United States 
where the provision of such travel or expenses is in accordance with 
diplomatic custom or treaty and where the Head of the employee's Office 
grants prior written approval. A spouse or dependent may accept gifts of 
travel or travel expenses when accompanying the employee, provided this 
is done with the prior written approval of the Head of the employee's 
Office. The Head of the employee's Office shall consult with the 
appropriate General Counsel in connection with granting approval under 
this paragraph. Travel or expenses for travel may not be accepted merely 
for the personal benefit, pleasure, enjoyment,

[[Page 803]]

or financial enrichment of the individual involved. An appropriate 
statement shall be filed in accordance with Sec. 1050.301(b) of this 
part. When any portion of the travel (such as the origination or 
termination of a flight) is within the United States, it may not be paid 
for by a foreign government, except as set forth in paragraph (e) of 
this section.
    (e) Pursuant to section 652 of the DOE Organization Act, an employee 
may accept gifts from the International Atomic Energy Agency or other 
energy-related international organizations (e.g., the Nuclear Energy 
Agency and the International Energy Agency) covering transportation 
expenses to or from a foreign country in connection with scientific or 
technical assistance projects of such agencies for which the Department 
of Energy has lead U.S. Government agency responsibility. Such gifts may 
be accepted only with the prior written approval of the Head of the 
employee's Office, who is hereby delegated authority to accept such 
gifts in accordance with section 652.



Sec. 1050.203  Acceptance of decorations.

    (a) An employee may accept, retain and wear a decoration tendered by 
a foreign government in recognition of active field service in time of 
combat operations or awarded for other outstanding or unusually 
meritorious performance.
    (b) Acceptance of a decoration in accordance with paragraph (a) of 
this section shall be reviewed and approved by the Directorate of 
Administration in accordance with Sec. 1050.204 of this part. Otherwise, 
it will be deemed to have been accepted on behalf of the United States, 
shall become the property of the United States, and shall be deposited, 
within 60 days of acceptance, with the Directorate of Administration for 
disposal or official Departmental use as determined by the Directorate 
of Administration in accordance with Sec. 1050.302 of this part.



Sec. 1050.204  Advance approval for acceptance of gifts or decorations.

    (a) If an employee is advised that a gift of more than minimal value 
as described in Sec. 1050.202 (b) or (c) is to be tendered to him or 
her, the employee shall, if time permits, request the written advice of 
the Directorate of Administration regarding the appropriateness of 
accepting or refusing the gift. A request for approval shall be 
submitted to the Directorate of Administration in writing, stating the 
nature of the gift and the reasons for which it is being tendered. The 
Directorate of Administration shall consult with Assistant Secretary for 
International Affairs and the appropriate General Counsel in connection 
with advising the employee. If such advice cannot be obtained and 
refusal of the gift would likely cause offense or embarrassment or 
otherwise adversely effect the foreign relations of the United States, 
the gift may be accepted, but the Directorate of Administration shall be 
informed as soon as possible. In either event, the employee shall 
proceed as provided in Secs. 1050.202 and 1050.301 of this part.
    (b) Where an employee is notified of the intent of a foreign 
government to award him a decoration for outstanding or unusually 
meritorious service, approval required under Sec. 1050.203 should be 
obtained prior to acceptance of the award. A request for approval shall 
be submitted to the Directorate of Administration in writing, stating 
the nature of the decoration and the reasons for which it is being 
awarded. The Directorate of Administration shall consult with the 
Assistant Secretary for International Affairs and the appropriate 
General Counsel. If time does not permit the employee to obtain approval 
for the award of the decoration before its receipt, the employee may 
accept it, but shall seek such approval immediately thereafter.



                  Subpart C--Procedures and Enforcement



Sec. 1050.301  Reports.

    (a) Within 60 days of accepting a gift of more than minimal value, 
other than gifts of travel or travel expenses, which are covered in 
paragraph (b) of this section, an employee shall, in addition to 
depositing a tangible gift (e.g. wearing apparel, liquor, etc.) with the 
Directorate of Administration in accordance with Sec. 1050.202 of this 
part, file

[[Page 804]]

with the Directorate of Administration a statement concerning the gift 
containing the information identified on the sample form set forth in 
appendix I. The form set forth in appendix I must also be filed if the 
aggregate value of gifts accepted by the recipient from all sources over 
any period of one year exceeds $250.
    (b) Within 30 days after accepting travel or travel expenses in 
accordance with Sec. 1050.202 of this part, an employee shall file with 
the Directorate of Administration a statement concerning the travel 
containing the information identified on the sample form set forth in 
appendix II. Such a statement need not be filed, however, if the travel 
is in accordance with specific travel arrangements made by the 
Department in cooperation with the foreign government.
    (c) The Directorate of Administration shall:
    (1) Maintain the statements filed pursuant to these regulations and 
make them available for public inspection and copying during regular 
business hours; and
    (2) Not later than January 31 of each year compile and transmit to 
the Department of State for publication by the Department of State in 
the Federal Register a list of all statements filed pursuant to these 
regulations during the preceding calendar year.



Sec. 1050.302  Use or disposal of gifts and decorations accepted on behalf of the United States.

    (a) The Directorate of Administration shall accept and maintain 
custody of all tangible gifts and decorations accepted by employees on 
behalf of the United States pending their final disposition.
    (b) Whenever possible, the gift or decoration shall be returned to 
the original donor. The Directorate of Administration shall examine the 
circumstances surrounding its donation, and, in consultation with the 
Assistant Secretary for International Affairs, assess whether any 
adverse effect upon the United States foreign relations might result 
from return of the gift or decoration to the donor. The appropriate 
officials of the Department of State shall be consulted if the question 
of an adverse effect arises.
    (c) The Directorate of Administration may determine that the gift or 
decoration may be retained for the official use of the Department, if it 
can be properly displayed in an area at Headquarters or at a field 
facility accessible to employees or members of the public or if it is 
otherwise usable in carrying out the mission of the Department. The 
Assistant Secretary for International Affairs shall be consulted to 
determine whether failure to accept the gift or decoration for the 
official use of the Department will have an adverse effect on the 
foreign relations of the United States. In no case shall a gift or 
decoration be accepted for the official use of the Department when the 
enjoyment and beneficial use of the gift will accrue primarily to the 
benefit of the donee or any other individual employee. Gifts or 
decorations that are retained for the official use of the Department 
shall be handled in accordance with the provisions of paragraph (d) of 
this section when their official use is ended.
    (d) If a gift or decoration is not retained for official use of the 
Department, or if its official use has ended, the Directorate of 
Administration shall, within 30 days after its deposit or after its 
official use has ended--
    (1) Report the gift or decoration to the General Services 
Administration (GSA) for transfer, donation, or other disposal in 
accordance with the provisions of the Federal Property and 
Administrative Services Act of 1949 and the Federal Property Management 
Regulations at 41 CFR part 101-49, or
    (2) If the gift or decoration is in cash, currency, or monies 
(except those with possible historic or numismatic value), or is a 
noncash monetary gift such as a check, money order, bonds, shares of 
stock, or other negotiable instrument, forward it to the Finance and 
Accounting Office for deposit with the Department of the Treasury.
    (e) The Directorate of Administration shall retain custody of gifts 
and decorations not returned to the donor or retained for the official 
use of the

[[Page 805]]

Department until GSA directs it concerning their disposition. At the 
request of GSA, the Directorate of Administration shall arrange for 
appraisal of specific gifts and decorations.



Sec. 1050.303  Enforcement.

    (a) An employee who violates the provisions of the Act or these 
regulations may be subject to disciplinary action or civil penalty 
action as set forth in paragraphs (c) and (d) of this section.
    (b) Suspected violations of the Act or these regulations shall be 
reported promptly to the appropriate General Counsel and the Inspector 
General.
    (c) The Inspector General will be responsible for taking the 
following actions:
    (1) If the results of an investigation by the Inspector General do 
not provide any support for a determination that a violation of the Act 
or these regulations has occurred, then no further action shall be 
taken.
    (2) If it is determined that the employee knowingly and through 
actions within his own control has done any of the following, the matter 
shall be referred to the Attorney General for appropriate action:
    (i) Solicited or accepted a gift from a foreign government in a 
manner inconsistent with the provisions of the Act and these 
regulations;
    (ii) As the approved recipient of travel expenses failed to follow 
the procedures set forth in the Act and these regulations; or
    (iii) Failed to deposit or report a gift as required by the Act and 
these regulations.
    (3) If it is determined that the employee failed to deposit a 
tangible gift with the Directorate of Administration within 60 days, or 
to account properly for acceptance of travel expenses, or to comply with 
the requirements of these regulations relating to the disposal of gifts 
and decorations retained for official use, but that the criteria of 
knowledge and control specified in paragraph (c)(2) of this section for 
referral to the Attorney General have not been met, then the matter 
shall be referred by the Inspector General to appropriate Departmental 
officials for administrative action.
    (d) As set forth in section 7342(h) of title 5, United States Code, 
the Attorney General may bring a civil action in any district court of 
the United States against any employee who knowingly solicits or accepts 
a gift from a foreign government not consented to by the Act, or who 
fails to deposit or report such gift as required by the Act. The court 
in which such action is brought may assess a civil penalty against such 
employee in any amount not to exceed the retail value of the gift 
improperly solicited or received plus $5,500.
[45 FR 53972, Aug. 13, 1980, as amended at 62 FR 46184, Sept. 2, 1997]



                 Subpart D--Gifts to Foreign Individuals



Sec. 1050.401  Prohibition against use of appropriated funds.

    No appropriated funds other than funds from the ``Emergencies in the 
Diplomatic and Consular Service'' account of the Department of State may 
be used to purchase any tangible gift of more than minimal value for any 
foreign individual unless such gift has been approved by the Congress.
[59 FR 44896, Aug. 31, 1994]

[[Page 806]]


[GRAPHIC] [TIFF OMITTED] TC01OC91.040

      Statement Concerning Gifts Received From a Foreign Government
Item 1.  This statement is to be filed pursuant to the provisions of the 
        Foreign Gifts and Decorations Act (5 U.S.C. 7342, as amended by 
        Pub. L. 95-105, August 17, 1977) and DOE implementing 
        regulations at 10 CFR part 1050. These provisions apply to 
        foreign gifts tendered to or accepted by Federal employees and 
        their spouses and dependents. The name

[[Page 807]]

        of the employee should always be indicated in item 1; if the 
        employee is the recipient of the gift then items 5 and 6 should 
        be marked N/A-not applicable; if the recipient is a spouse or 
        dependent, then the appropriate information should be included 
        in items 5 and 6.

Item 2.  Self explanatory.

Items 3 and 4.  The Office or Division and the position of the employee 
        should be indicated here regardless of whether the recipient is 
        the employee or a spouse or dependent.

Items 5 and 6.  See above, Item 1.

Item 7.  Self explanatory.

Item 8.  Self explanatory.

Item 9.  Indicate the retail value in the United States at the time of 
        acceptance. If there is any uncertainty as to the value of the 
        gift, it is the recipient's responsibility to make a reasonable 
        effort to determine value. If the value is $100 or under, and if 
        the aggregate value of the gifts accepted by the recipient from 
        all sources over any period of one year does not exceed $250, 
        then the gift may be retained by the recipient and this 
        Statement need not be submitted.

Item 10.  Identify in this item whether or not approval to accept the 
        gift was sought or given in advance in accordance with 
        Sec. 1050.204 of the DOE regulations. Also identify those 
        circumstances supporting a determination that refusal of the 
        gift would likely cause offense or embarrassment or otherwise 
        adversely affect the foriegn relations of the United States.

Items 11 and 12.  Self explanatory.

Item 13.  Though there is no assurance that the item will be sold or if 
        it is sold that it will be feasible for the recipient to 
        participate in the sale, GSA regulations provide for 
        participation by the recipient where feasible.

[[Page 808]]

[GRAPHIC] [TIFF OMITTED] TC01OC91.041

  Statement Concerning Acceptance of Travel or Travel Expenses From a 
                           Foreign Government
Item 1.  This statement is to be filed pursuant to the provisions of the 
        Foreign Gifts and Decorations Act (5 U.S.C. 7342, as amended by 
        Pub. L. 95-105, August 17, 1977) and DOE implementing 
        regulations at 10 CFR part 1050. These provisions apply to 
        travel or travel

[[Page 809]]

        expenses for travel entirely outside of the United States \1\ 
        tendered to or accepted by Federal employees and their spouses 
        and dependents. The name of the employee should always be 
        indicated in item 1; if the employee is the recipient of the 
        travel or travel expenses, then items 5 and 6 should be marked 
        N/A-not applicable; if the recipient is a spouse or dependent, 
        then the appropriate information should be included in items 5 
        and 6.

Item 2.  Self explanatory.

Items 3 and 4.  The Office or Division of the employee should be 
        indicated here regardless of whether the recipient is the 
        employee or a spouse or dependent.

Items 5 and 6.  See above, Item 1.

Item 7a.  Indicate the location and mode of transportation and 
        approximate value in U.S. dollars, if possible. Attach itinerary 
        if available.

Item 7b.  Indicate nature and location of travel expenses provided and 
        approximate value in U.S. dollars, if possible. Attach itinerary 
        if available.

Item 8.  Indicate dates of travel.

Item 9.  Self explanatory.

Item 10.  Travel and travel expenses may be accepted in accordance with 
        DOE regulations where the travel is official agency business. 
        Spouses and dependents may accept such travel and expenses only 
        when accompanying the employee. Item 10 therefore should be 
        completed to identify the employee's official business whether 
        the recipient is an employee or a spouse or dependent.

Item 11.  Identify in this item any treaty or diplomatic custom that 
        related to acceptance of the travel or expenses, and any 
        circumstances indicating that acceptance would be consistent 
        with the interests of the U.S. Also provide information 
        regarding any prior approval of the acceptance.

Items 12, 13a, and 13b.  Self explanatory.



PART 1060--PAYMENT OF TRAVEL EXPENSES OF PERSONS WHO ARE NOT GOVERNMENT EMPLOYEES--Table of Contents




Sec.
1060.101  Persons who may be paid.
1060.201  Relatives, contractors, and assistance award recipients.
1060.301  Government employees.
1060.401  Applicability of internal DOE rules.
1060.501  Definitions.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 46 FR 35631, July 10, 1981, unless otherwise noted.



Sec. 1060.101  Persons who may be paid.

    (a) Payment may not be authorized or approved for transportation, 
lodging, subsistence, or other travel expenses from DOE funds to, or on 
behalf of, a person who is not a Government employee unless such payment 
is made--
    (1) Pursuant to an invitation received by that person from the 
Department to confer with a DOE employee on matters essential to the 
advancement of DOE programs or objectives and (i) in the case of a 
person invited to confer at the post of duty of the conferring DOE 
employee, a designated official has approved and stated the reasons for 
the invitation in writing, or (ii) in the case of a person invited to 
confer at a place other than the post duty of the conferring DOE 
employee, a principal departmental official has approved and stated the 
reasons for the invitation in writing;
    (2) Pursuant to an invitation for an interview to a prospective 
employee of the Department who is an applicant for (i) a position in the 
Department classified at GS-16 or above of the General Schedule or the 
rate of basic pay for which is fixed, other than under the General 
Schedule, at a rate equal to or greater than the minimum rate of

[[Page 810]]

basic pay fixed for GS-16, (ii) a position for which a determination has 
been made that there is a manpower shortage pursuant to 5 U.S.C. 5723, 
or (iii) a DOE position for which the Department has the exclusive 
duties of recruitment and selection;
    (3) In accordance with 28 U.S.C. 1821 or other applicable law, to a 
person who is subpoenaed by the Department to appear and testify or to 
appear and to produce documents at a designated place;
    (4) To a person who serves as a travel attendant for a handicapped 
individual who is authorized to travel at DOE expense and who cannot 
travel alone because of the handicap; or
    (5) Pursuant to a written determination of a principal departmental 
officer that it is in the interest of the Government to provide such 
payment, where the Counselor has determined in writing that the payment 
is authorized under 5 U.S.C. ch. 57 or other statutory authority.
    (b) The authority of a designated official or a principal 
departmental officer, as the case may be, to provide approval of an 
invitation to travel under paragraph (a)(1) and of a principal 
departmental officer to determine that payment of travel expenses is in 
the interest of the Government under paragraph (a)(5) of this section 
may not be delegated.
    (c) Within 30 days of providing written approval of an invitation 
under paragraph (a)(1)(i) of this section, a designated official who is 
an Administrator of a power administration or the head of a Field 
Organization shall transmit a copy of the written approval to the 
principal departmental officer to whom the official or the official's 
organization reports.
    (d) Payment of travel expenses may not be made pursuant to an 
invitation to travel under paragraphs (a)(1) or (a)(5) unless the 
written approval and statement of reasons required by paragraph (a)(1), 
or the written determinations required by paragraph (a)(5) of this 
section, are made before the travel to be authorized by the invitation 
takes place.
    (e) Nothing in this section shall be interpreted to prohibit payment 
for travel expenses that are reimbursable or allowable by the Department 
under the terms of a DOE contract or assistance award.



Sec. 1060.201  Relatives, contractors, and assistance award recipients.

    Notwithstanding any other provision in this part, a DOE employee may 
not authorize or approve, require another person to authorize or 
approve, or advocate the authorization or approval of, payment from DOE 
funds of travel expenses of a person who is not a Government employee 
and who is (a) the DOE employee's relative (except in the case of 
payment under Sec. 1060.101(a)(4)), or (b) in the case of payment under 
Sec. 1060.101(a)(1), a DOE contractor or a DOE assistance award 
recipient or the employee of a DOE contractor or a DOE assistance award 
recipient unless the travel expenses are incurred with respect to 
matters outside the scope of the contract or assistance award, as the 
case may be. (See also Sec. 1060.101(e).)



Sec. 1060.301  Government employees.

    Nothing in this part shall be interpreted as being applicable to 
authorization or approval of payment of travel expenses of Government 
employees, including DOE employees.



Sec. 1060.401  Applicability of internal DOE rules.

    Payment of travel expenses under Sec. 1060.101(a) (1) through (5) 
shall be subject to other Department rules relating to authorization of 
travel.



Sec. 1060.501  Definitions.

    For purposes of this part--
    (a) Counselor means the General Counsel of the Department or the 
General Counsel of the Federal Energy Regulatory Commission or their 
delegates, as appropriate.
    (b) Designated official means (1) a principal departmental officer, 
(2) an individual who is appointed to a position in the Department by 
the President of the United States with the advice and consent of the 
Senate, (3) the Administrator of a power administration, or (4) the head 
of a Field Organization.
    (c) DOE or Department means the Department of Energy established by 
the Department of Energy Organization

[[Page 811]]

Act, section 201, Pub. L. 95-91 (42 U.S.C. 7131).
    (d) Employee means--
    (1) An employee as defined by 5 U.S.C. 2105;
    (2) A special Government employee as defined in 18 U.S.C. 202(a);
    (3) A member of a Uniformed Service.
    (e) Handicapped individual means a person who has a physical or 
mental disability or health impairment, and includes an individual who 
is temporarily incapacitated because of illness or injury.
    (f) Principal departmental officer means the Secretary, Deputy 
Secretary, or Under Secretary, or, in the case of the Federal Energy 
Regulatory Commission, the Chairman or Executive Director of the 
Commission.
    (g) Relative means, with respect to a DOE employee, an individual 
who is related to the employee, by blood, marriage, or operation of law, 
as father, mother, son, daughter, brother, sister, uncle, aunt, great 
aunt, great uncle, first cousin, nephew, niece, husband, wife, 
grandchild, grandparent, father-in-law, mother-in-law, son-in-law, 
daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, 
stepson, stepdaughter, stepbrother, stepsister, half brother, or half 
sister, and shall also include the grandparent of an employee's spouse, 
an employee's fiance or fiancee, or any person residing in the 
employee's household.

[[Page 813]]



            CHAPTER XI--UNITED STATES ENRICHMENT CORPORATION




  --------------------------------------------------------------------

Part                                                                Page
1101            Sunshine Act regulations....................         814
1102            Procedures for disclosure of information 
                    under the Freedom of Information Act....         817

[[Page 814]]



PART 1101--SUNSHINE ACT REGULATIONS--Table of Contents




Sec.
1101.1  Purpose and scope.
1101.2  Definitions.
1101.3  Open meetings.
1101.4  Notice of meetings.
1101.5  Procedure for closing meetings.
1101.6  Criteria for closing meetings.
1101.7  Transcripts of closed meetings.
1101.8  Report to Congress.

    Authority: 5 U.S.C. 552b.

    Source: 59 FR 16979, Apr. 11, 1994, unless otherwise noted.



Sec. 1101.1  Purpose and scope.

    (a) The provisions of this part are intended to implement the 
requirements of section 3(a) of the Government in the Sunshine Act, 5 
U.S.C. 552b for the United States Enrichment Corporation 
(``Corporation'').
    (b) Nothing in this part expands or limits the present rights of any 
person under the Freedom of Information Act (5 U.S.C. 552), except that 
the exemptions set forth in Sec. 1101.6 shall govern in the case of any 
request made pursuant to the Freedom of Information Act to copy or 
inspect the transcripts, recordings, or minutes described in 
Sec. 1101.7.
    (c) Nothing in this part authorizes the Corporation to withhold from 
any individual any record, including transcripts, recordings, or minutes 
required by this part, which is otherwise accessible to such individual 
under the Privacy Act (5 U.S.C. 552a).
    (d) The requirements of chapter 33 of title 44 of the United States 
Code shall not apply to transcripts, recordings, and minutes described 
in Sec. 1101.7.



Sec. 1101.2  Definitions.

    For the purposes of this part:
    Agency means any agency, as defined in 5 U.S.C. 552(e), headed by a 
collegial body composed of two or more individual members, a majority of 
whom are appointed to such position by the President with the advice and 
consent of the Senate, and any subdivision thereof authorized to act on 
behalf of the agency.
    Board means the Board of Directors of the Corporation.
    Corporation means the United States Enrichment Corporation.
    Meeting means the deliberations of at least a quorum of the 
Corporation Board where such deliberations determine or result in the 
joint conduct or disposition of official Corporation business. A meeting 
may be conducted under this part through telephone or similar 
communications equipment by means of which all participants can hear 
each other. The term meeting does not include deliberations required or 
permitted by Sec. 1101.4 or Sec. 1101.5 and does not include the process 
of notation voting by circulated memorandum for the purpose of 
expediting consideration of routine matters.
    Member means an individual who is a member of the Corporation Board.
    Quorum means the number of members authorized to conduct Corporation 
business pursuant to the Corporation's bylaws.



Sec. 1101.3  Open meetings.

    Members shall not jointly conduct or dispose of Corporation business 
other than in accordance with this part. Except as provided in 
Sec. 1101.6, every portion of every meeting of the Corporation shall be 
open to public observation, and the Corporation shall provide suitable 
facilities therefor. The public is invited to observe and listen to all 
meetings of the Corporation, or portions thereof, open to public 
observation, but may not participate in the deliberations at such 
meetings or record any portion of such meetings by means of electronic 
or other devices or cameras.



Sec. 1101.4  Notice of meetings.

    (a) The Corporation shall make a public announcement of the time, 
place, nd subject matter of each meeting, whether it is to be open or 
closed to the public, and the name and telephone number of a Corporation 
official who can respond to requests for information about the meeting.
    (b) Such public announcement shall be made at least one week before 
the meeting unless a majority of the members determine by a recorded 
vote that the Corporation business requires that such meeting be called 
at an earlier date. If an earlier date is so established, the 
Corporation shall make

[[Page 815]]

such public announcement at the earliest practicable time.
    (c) Following a public announcement required by paragraph (a) of 
this section, the time or place of the meeting may be changed only if 
the Corporation publicly announces the change at the earliest 
practicable time. The subject matter of a meeting or the determination 
to open or close a meeting or portion of a meeting to the public may be 
changed following the public announcement required by paragraph (a) of 
this section only if a majority of the members determine by a recorded 
vote that the Corporation business so requires and that no earlier 
announcement of the change was possible and if the Corporation publicly 
announces such change and the vote of each member upon such change at 
the earliest, practicable time.
    (d) In addition to any other means which the Corporation may choose, 
public announcements required by this section shall be made by posting a 
notice in the reception area of the Corporation's headquarters at 6903 
Rockledge Drive, Bethesda, Maryland 20817.
    (e) Immediately following each public announcement required by this 
section, notice of the time, place, and subject matter of a meeting, 
whether the meeting is open or closed, any change in one of the 
preceding, and the name and phone number of the Corporation official 
designated to respond to requests for information about the meeting 
shall be submitted for publication in the Federal Register.
    (f) Votes taken pursuant to this section may be conducted through 
any means which the Corporation Board determines are appropriate, 
including a notation voting process.



Sec. 1101.5  Procedure for closing meetings.

    (a) Action under Sec. 1101.6 to close a meeting shall be taken only 
when a majority of the members vote to take such action. A separate vote 
shall be taken with respect to each meeting, a portion or portions of 
which are proposed to be closed to the public pursuant to Sec. 1101.6, 
or with respect to any information which is proposed to be withheld 
pursuant to Sec. 1101.6. A single vote may be taken with respect to a 
series of meetings, a portion or portions of which are proposed to be 
closed to the public, or with respect to any information concerning such 
series of meetings, so long as each meeting in such series involves the 
same particular matters and is scheduled to be held no more than thirty 
(30) days after the initial meeting in such series. The vote of each 
member participating in such vote shall be recorded and no proxies shall 
be allowed.
    (b) Notwithstanding that the members may have already voted not to 
close a meeting, whenever any person whose interests may be directly 
affected by a portion of a meeting requests that the agency close such 
portion to the public for any of the reasons referred to in paragraphs 
(e), (f), or (g) of Sec. 1101.6, the Board, upon request of any one of 
its members made prior to the commencement of such portion, shall vote 
by recorded vote whether to close such portion of the meeting.
    (c) Within one day of any vote taken pursuant to this section, the 
Corporation shall make publicly available a written copy of such vote 
reflecting the vote of each member on the question. If a portion of a 
meeting is to be closed to the public, the Corporation shall, within one 
day of the vote taken pursuant to this section, make publicly available 
a full written explanation of this action closing the portion together 
with a list of all persons expected to attend the meeting and their 
affiliation. Information to be made publicly available pursuant to this 
paragraph (c) shall be posted in the reception area of the Corporation's 
headquarters.
    (d) For every meeting closed pursuant to Sec. 1101.6, there shall be 
a certification by the General Counsel of the Corporation stating 
whether, in his or her opinion, the meeting may be closed to the public 
and each relevant exemptive provision. A copy of such certification 
shall be retained by the Corporation and shall be made publicly 
available.
    (e) Votes taken pursuant to this section may be conducted through 
any means which the Corporation Board determines are appropriate, 
including a notation voting process.

[[Page 816]]



Sec. 1101.6  Criteria for closing meetings.

    Except in a case where the Board finds that the public interest 
requires otherwise, the second sentence of Sec. 1101.3(a) shall not 
apply to any portion of a meeting and such portion may be closed to the 
public, an the requirements of Secs. 1101.4 and 1101.5 (a), (b), and (c) 
shall not apply to any information pertaining to such meeting otherwise 
required by this part to be disclosed to the public, where the Board 
properly determines that such portion or portions of its meeting or the 
disclosure of such information is likely to:
    (a) Disclose matters that are:
    (1) Specifically authorized under criteria established by an 
Executive order to be kept secret in the interests of national defense 
or foreign policy and
    (2) In fact properly classified pursuant to such Executive order;
    (b) Relate solely to the internal personnel rules and practices of 
the Corporation:
    (c) Disclose matters specifically exempted from disclosure by 
statute (other than 5 U.S.C. 552), provided that such statute:
    (1) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue, or
    (2) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld, including section 1314 of 
the Atomic Energy Act of 1954, as amended, 42 U.S.C. 2297b-13, with 
reference to trade secrets and commercial and financial information, and 
section 148 of the Atomic Energy Act of 1954, as amended, 42 U.S.C. 
2168, with reference to particular information regarding the facilities 
leased by the Corporation from the U.S. Department of Energy;
    (d) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (e) Involve accusing any person of a crime, or formally censuring 
any person;
    (f) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (g) Disclose investigatory records compiled for law enforcement 
purposes, or information which if written would be contained in such 
records, but only to the extent that the production of such records or 
information would:
    (1) Interfere with enforcement proceedings,
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (3) Constitute an unwarranted invasion of personal privacy,
    (4) Disclose the identity of a confidential source and, in the case 
of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation, confidential information 
furnished only by the confidential source,
    (5) Disclose investigative techniques and procedures, or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (h) Disclose information contained in or related to examination, 
operating or condition reports prepared by, on behalf of, or for the use 
of an agency responsible for the regulation or supervision of financial 
institutions;
    (i) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed action of 
an agency, except that this provision shall not apply in any instance 
where such an agency has already disclosed to the public the content or 
nature of its proposed action, or where such an agency is required by 
law to make such disclosure on its own initiative prior to taking final 
action on such proposal; or
    (j) Specifically concern the Corporation's participation in a civil 
action or proceeding, an action in a foreign court or international 
tribunal, or an arbitration, or the initiation, conduct, or disposition 
by the Corporation of a particular case of formal agency adjudication 
pursuant to the procedures in 5 U.S.C. 554 or otherwise involving a 
determination on the record after opportunity for a hearing.



Sec. 1101.7  Transcripts of closed meetings.

    (a) For every meeting closed pursuant to Sec. 1101.6, the presiding 
officer of the meeting shall prepare a statement setting forth the time 
and place of the

[[Page 817]]

meeting, and the persons present, and such statement shall be retained 
by the Corporation.
    (b) The Corporation shall maintain a complete transcript or 
electronic recording adequate to record fully the proceedings of each 
meeting, or portion of a meeting, closed to the public, except that in 
the case of a meeting, or portion of a meeting, closed to the public 
pursuant to paragraph (h) or (j) of Sec. 1101.6, the Corporation shall 
maintain either such a transcript or recording, or a set of minutes. 
Such minutes shall fully and clearly describe all matters discussed and 
shall provide a full and accurate summary of any actions taken, and the 
reasons therefor, including a description of each of the views expressed 
on any item and the record of any rollcall vote (reflecting the vote of 
each member on the question). All documents considered in connection 
with any action shall be identified in such minutes.
    (c) The Corporation shall maintain a complete verbatim copy of the 
transcript, a complete copy of the minutes, or a complete electronic 
recording of each meeting, or portion of a meeting, closed to the 
public, for a period of at least two (2) years after such meeting, or 
until one year after the conclusion of any Corporation proceeding with 
respect to which the meeting or portion was held, whichever occurs 
later.
    (d) Within a reasonable time after the adjournment of a meeting 
closed to the public, the Corporation shall make available to the 
public, at the Corporation's headquarters, the transcript, electronic 
recording, or minutes of the discussion of any item on the agenda, or of 
any item of the testimony of any witness received at the meeting, except 
for such item or items of such discussion or testimony as the 
Corporation determines to contain information which may be withheld 
under Sec. 1101.6. Copies of such transcript, electronic recording or 
minutes shall be furnished to any persons at the actual cost of 
duplication or transcription.



Sec. 1101.8  Report to Congress.

    The Corporation shall report to the Congress annually regarding its 
compliance with the requirements of the Government in the Sunshine Act, 
5 U.S.C. 552b.



PART 1102--PROCEDURES FOR DISCLOSURE OF INFORMATION UNDER THE FREEDOM OF INFORMATION ACT--Table of Contents




Sec.
1102.1  Purpose.
1102.2  Definitions.
1102.3  Policy.
1102.4  Public reading room.
1102.5  Availability of records on request.
1102.6  Exemptions.
1102.7  Officials authorized to grant or deny requests for records.
1102.8  Denials.
1102.9  Appeals of denials.
1102.10  Fees.
1102.11  Notice to submitters of certain information.

    Authority: 5 U.S.C. 552.

    Source: 59 FR 27437, May 27, 1994, unless otherwise noted.



Sec. 1102.1  Purpose.

    This part prescribes the procedures by which records of the United 
States Enrichment Corporation may be made available pursuant to section 
1314 of the Atomic Energy Act of 1954, as amended, 42 U.S.C. 2297b-13, 
and the Freedom of Information Act, 5 U.S.C. 552.



Sec. 1102.2  Definitions.

    As used in this part--
    Commercial use request means request from or on behalf of one who 
seeks information for a use or purpose that furthers the commercial, 
trade, or profit interests of the requester or the person on whose 
behalf the request is made. In determining whether a request for records 
properly belongs in this category, the Corporation will look to the use 
to which a requester will put the documents requested. When the 
Corporation has reasonable cause to doubt the use to which a requester 
will put the records sought, or where the use is not clear from the 
request itself, it will seek additional clarification before assigning 
the request to a specific category. If still in doubt, the Corporation 
will make the determination based on the factual circumstances 
surrounding

[[Page 818]]

the request, including the identity of the requester.
    Corporation means the United States Enrichment Corporation.
    Duplication means the process of making a copy of a document 
necessary to respond to a FOIA request. Such copies can take the form of 
paper copy, microform, audio-visual materials, or machine readable 
documentation (e.g., magnetic tape or disk), among others.
    Educational institution means a preschool, a public or private 
elementary or secondary school, an institution of graduate higher 
education, an institution of undergraduate higher education, an 
institution of professional education, or an institution of vocational 
education, which operates a program or programs of scholarly research.
    FOIA means the Freedom of Information Act, 5 U.S.C. 552.
    Freedom of Information Officer means the person designated to 
administer the FOIA at the Corporation's headquarters.
    General Counsel means the General Counsel of the Corporation or any 
Corporation attorney designated by the General Counsel as having 
responsibility for counseling the Corporation on FOIA requests.
    Headquarters means the Corporation's offices at 2 Democracy Center, 
6903 Rockledge Drive, Bethesda, Maryland 20817.
    Non-commercial scientific institution means an institution that is 
not operated on a ``commercial'' basis and which is operated solely for 
the purpose of conducting scientific research, the results of which are 
not intended to promote any particular product or industry.
    Records means books, papers, maps, photographs, or other documentary 
materials, regardless of physical form or characteristics, made or 
received by the Corporation in connection with the transaction of the 
Corporation's business and preserved by the Corporation as evidence of 
the organization, functions, policies, decisions, procedures, 
operations, or other activities of the Corporation or because of the 
informational value of data in them. The term does not include inter 
alia, books, magazines, or other materials acquired solely for library 
purposes and available through any officially designated library of the 
Corporation, or records that have been prepared by a contractor, and are 
available to the Corporation pursuant to the terms of a contract between 
the Corporation and the contractor (e.g., the contract for the operation 
and maintenance of the Corporation's leased gaseous diffusion plants), 
but which have not been delivered to the Corporation.
    Representative of the news media means any person actively gathering 
news for an entity that is organized and operated to publish or 
broadcast news to the public. The term ``news'' means information that 
is about current events or that would be of current interest to the 
public. Examples of news media entities include television or radio 
stations broadcasting to the public at large and publishers of 
periodicals (but only in those instances when they can qualify as 
disseminators of ``news'') who make their products available for 
purchase or subscription by the general public. These examples are not 
intended to be all-inclusive. Moreover, as traditional methods of news 
delivery evolve (e.g., electronic dissemination of newspapers through 
telecommunications services), such alternative media would be included 
in this category. In the case of ``freelance'' journalists, they will be 
regarded as working for a news organization if they can demonstrate a 
solid basis for expecting publication through that organization, even 
though not actually employed by it.
    Review means the process of examining documents located in response 
to a commercial use request to determine whether any portion of any 
document located is permitted to be withheld. It also includes 
processing any documents for disclosure, e.g., doing all that is 
necessary to excise them and otherwise prepare them for release. Review 
does not include time spent resolving general legal or policy issues 
regarding the application of exemptions.
    Search means all the time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within documents. The search should be

[[Page 819]]

conducted in the most efficient and least expensive manner. Searches may 
be done manually or by computer using existing programming.
    Working days means all days except Saturdays, Sundays, and legal 
public holidays.



Sec. 1102.3  Policy.

    The Corporation will make records concerning its operations, 
activities, and business available to the public upon request. Records 
will be withheld from the public only in accordance with the FOIA and 
this part. Records that may be exempt from disclosure may be made 
available as a matter of discretion when disclosure is not prohibited by 
law, and it does not appear adverse to legitimate interests of the 
public, the Corporation, or any person. The Corporation will attempt to 
provide assistance to requesting parties, including information about 
how a request may be submitted. The Corporation will act on requests for 
records in a timely manner.



Sec. 1102.4  Public reading room.

    (a) The Corporation will maintain in a public reading room at its 
headquarters the materials which are required by 5 U.S.C. 552(a)(2) and 
(5) to be made available for public inspection and copying, unless it is 
determined that such records should be withheld and are exempt from 
mandatory disclosure under the FOIA and Sec. 1102.6 of this part.
    (b) The public reading room will maintain and make available for 
public inspection and copying current indices of the materials which are 
required to be indexed by 5 U.S.C. 552(a)(2) or other applicable 
statutes. Because publication of such indices is unnecessary and 
impracticable and because current versions thereof will be available for 
inspection at the Corporation's public reading room, it is determined 
and so ordered that the Corporation will not publish the indices in the 
Federal Register.
    (c) Certain records maintained in the public reading room or 
otherwise made available pursuant to this part may be ``edited'' by the 
deletion of identifying details concerning individuals, to prevent a 
clearly unwarranted invasion of personal privacy. In such cases the 
record shall have attached to it a full explanation of the deletion.



Sec. 1102.5  Availability of records on request.

    (a) In addition to the records made available through the public 
reading room, the Corporation will make records available to any person 
in accordance with paragraphs (b) and (c) of this section, unless it is 
determined that such records are exempt from mandatory disclosure under 
the FOIA and Sec. 1102.6 of this part and that such records should be 
withheld by the Corporation.
    (b) Requests. (1) A request will be acceptable if it identifies a 
record with sufficient particularity to enable officials of the 
Corporation to locate the record with a reasonable amount of effort. 
Requests seeking records within a reasonably specific category will be 
deemed to conform to the statutory requirement of a request which 
``reasonably describes'' such records if professional employees of the 
Corporation who are familiar with the subject area of the request would 
be able, with a reasonable amount of effort, to determine which 
particular records are encompassed within the scope of the request, and 
to search for, locate, and collect the records without unduly burdening 
or materially interfering with operations because of the staff time 
consumed or the resulting disruption of files. If it is determined that 
a request does not reasonably describe the records sought as specified 
in this paragraph, the response denying the request on that ground shall 
specify the reasons why the request failed to meet the requirements of 
this paragraph and shall extend to the requester an opportunity to 
confer with Corporation personnel in order to attempt to reformulate the 
request in a manner that will meet the needs of the requester and the 
requirements of this paragraph.
    (2) To facilitate the location of records by the Corporation, a 
requester should try to provide the following kinds of information, if 
known: (i) the specific event or action to which the record refers; (ii) 
the unit or program of the Corporation which may be responsible for or 
may have produced the

[[Page 820]]

record; (iii) the date of the record or the date or period to which it 
refers or relates; (iv) the type of record such as an application, a 
grant, a contract, or a report; (v) personnel of the Corporation who may 
have prepared or have knowledge of the record; and (vi) citations to 
newspapers or publications which have referred to the record.
    (3) The Corporation is not required to create a record or to seek to 
acquire a record from its contractors in order to satisfy a request.
    (4) All requests for records under this section shall be made in 
writing, with the envelope and the letter clearly marked: ``Freedom of 
Information Request.'' All such requests shall be addressed to the 
Freedom of Information Officer, 2 Democracy Center, 6903 Rockledge 
Drive, Bethesda, MD 20817. Any request not marked and addressed as 
specified in this paragraph will be so marked by Corporation personnel 
as soon as it is properly identified, and forwarded immediately to the 
Freedom of Information Officer. A request improperly addressed will not 
be deemed to have been received for purposes of the time period set 
forth in paragraph (c) of this section until forwarding to the 
appropriate office has been effected. On receipt of an improperly 
addressed request, the Freedom of Information Officer shall notify the 
requester of the date on which the time period commenced to run.
    (5) A person desiring to secure copies of records by mail should 
write to the Freedom of Information Officer, 2 Democracy Center, 6903 
Rockledge Drive, Bethesda, Maryland 20817. The request must identify the 
records of which copies are sought in accordance with the requirements 
of this section, and the number of copies desired. Fees may be required 
to be paid in advance in accordance with Sec. 1102.10. The requester 
will be advised of the estimated fee, if any, as promptly as possible. 
If a waiver or reduction of fees is requested, the grounds for such 
request should be included in the letter.
    (c) The Freedom of Information Officer, upon receipt of a request 
for any records made in accordance with this section, shall make an 
initial determination of whether to comply with or deny such request and 
dispatch such determination to the requester within 10 working days 
after receipt of such request, except for unusual circumstances in which 
case the time limit may be extended for not more than 10 working days by 
written notice to the requester setting forth the reasons for such 
extension and the date on which a determination is expected to be 
dispatched. In determining whether to issue a notice of extension of 
time for a response to a request beyond the 10-day period, the Freedom 
of Information Officer shall consult with the Office of the General 
Counsel. As used herein, ``unusual circumstances'' are limited to the 
following, but only to the extent reasonably necessary to the proper 
processing of the particular request:
    (1) The need to search for and collect the requested records from 
the Corporation's field offices;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, including consultation with another agency having a 
substantial interest in the determination of the request or among 
components of the Corporation having substantial subject matter interest 
therein.
    (d) If no determination has been dispatched at the end of the 10-day 
period, or the last extension thereof, the requester may deem the 
request denied, and exercise a right of appeal in accordance with 
Sec. 1102.9. When no determination can be dispatched within the 
applicable time limit, the Freedom of Information Officer shall 
nevertheless continue to process the request. On expiration of the time 
limit, the Freedom of Information Officer shall inform the requester of 
the reason for the delay, of the date on which a determination may be 
expected to be dispatched, and of the right to treat the delay as a 
denial and to appeal to the Corporation's Chief Executive Officer 
(``CEO'') in accordance with Sec. 1102.9. The Freedom of Information 
Officer may ask the requester to forego appeal until a determination is 
made.

[[Page 821]]

    (e) After it has been determined to comply with a request, the 
Corporation will act with diligence in providing a substantive response 
to the requester.



Sec. 1102.6  Exemptions.

    (a) 5 U.S.C. 552 exempts from all of its publication and disclosure 
requirements matters falling within nine categories, which are described 
in paragraph (b) of that section.
    (b) Specifically, the exemptions of 5 U.S.C. 552(b) will be applied 
to matters that are:
    (1)(i) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interest of national defense or 
foreign policy and (ii) are in fact properly classified pursuant to such 
Executive Order;
    (2) Related solely to the internal personnel rules and practices of 
an agency;
    (3) Specifically exempted from disclosure by statute (other than 5 
U.S.C. 552b), provided that such statute (i) requires that the matters 
be withheld from the public in such a manner as to leave no discretion 
on the issue, or (ii) establishes particular criteria for withholding or 
refers to particular types of matters to be withheld, including sections 
148 and 1314 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 
2168, 2297b-13), the latter of which authorizes the Corporation to 
``protect trade secrets and commercial or financial information to the 
same extent as a privately owned corporation'';
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (5) Inter-agency or intra-agency memorandums or letters which would 
not be available by law to a party other than an agency in litigation 
with the Corporation;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Investigatory records compiled for law enforcement purposes, but 
only to the extent that the production of such records could reasonably 
be expected to (i) interfere with enforcement proceedings, (ii) deprive 
a person of a right to a fair trial or an impartial adjudication, (iii) 
constitute an unwarranted invasion of personal privacy, (iv) disclose 
the identity of a confidential source and, in the case of a record 
compiled by a criminal law enforcement authority in the course of a 
criminal investigation, or by an agency conducting a lawful national 
security intelligence investigation, confidential information furnished 
only by the confidential source, (v) disclose investigative techniques 
and procedures or guidelines for law enforcement investigations or 
prosecutions if such disclosure would risk circumvention of the law, or 
(vi) endanger the life or physical safety of law enforcement personnel;
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (c) In the event that one or more of the exemptions in paragraph (b) 
applies, any reasonably segregable portion of a record shall be provided 
to the requester after deletion of the portions that are exempt. In 
appropriate circumstances, subject to the discretion of Corporation 
officials, it may be possible to provide a requester with:
    (1) A summary of information in the exempt portion of a record; or
    (2) An oral description of the exempt portion of a record.
    (d) In determining whether any of the foregoing techniques, cited in 
paragraphs (c)(1) and (c)(2), should be employed or whether an exemption 
should be waived in accordance with paragraph (e) of this section, 
Corporation officials shall consult with the Office of General Counsel. 
No requester shall have a right to insist that any or all of the 
foregoing techniques should be employed in order to satisfy a request.
    (e) Records that may be exempted from disclosure pursuant to 
paragraph (b) of this section may be made available as a matter of 
discretion when disclosure is not prohibited by law, if it does not 
appear adverse to legitimate interests of the Corporation, the public, 
or any person.

[[Page 822]]



Sec. 1102.7  Officials authorized to grant or deny requests for records.

    The General Counsel shall furnish necessary advice to Corporation 
officials and staff as to their obligations under this part and shall 
take such other actions as may be necessary or appropriate to assure a 
consistent and equitable application of the provisions of this part by 
and within the Corporation. The Freedom of Information Officer, with 
concurrence from the appropriate program officials of the Corporation, 
is authorized to grant or deny requests under this part. The Freedom of 
Information Officer shall consult with the General Counsel before 
denying requests under this part, or before granting requests for waiver 
or modified application of an exemption or for categories of records 
which the General Counsel determines may present special or unusual 
problems.



Sec. 1102.8  Denials.

    (a) A denial of a written request for a record that complies with 
the requirements of Sec. 1102.5 shall be in writing and shall include 
the following:
    (1) A reference to the applicable exemption or exemptions in 
Sec. 1102.6(b) upon which the denial is based;
    (2) An explanation of how the exemption applies to the requested 
records;
    (3) A statement explaining whether there is any segregable nonexempt 
material of the record after deleting the exempt portions;
    (4) The name and title of the person or persons responsible for 
denying the request; and
    (5) An explanation of the right to appeal the denial and of the 
procedures for submitting an appeal, including the address of the 
official to whom appeals should be submitted.
    (6) Whenever the Corporation makes a record available subject to the 
deletion of a portion of the record, such action shall be deemed a 
denial of a record for purposes of paragraph (a) of this section.



Sec. 1102.9  Appeals of denials.

    (a) Any person whose written request has been denied is entitled to 
appeal the denial within thirty calendar days of issuance thereof by 
writing to the CEO of the Corporation at its headquarters. The envelope 
and letter should be clearly marked: ``Freedom of Information Appeal.'' 
An appeal need not be in any particular form, but should adequately 
identify the denial, if possible, by describing the requested record, 
identifying the official who issued the denial, and providing the date 
on which the denial was issued.
    (b) No personal appearance, oral argument, or hearing will 
ordinarily be permitted on appeal of a denial. Upon request and a 
showing of special circumstances, however, this limitation may be waived 
and an informal conference may be arranged with the Corporation CEO, or 
the CEO's designated representative, for this purpose.
    (c) The appeal decision of the CEO, or the CEO's designated 
representative, shall be in writing and, in the event the denial is in 
whole or in part upheld, shall contain an explanation responsive to the 
arguments advanced by the requester, the matters described in 
Sec. 1102.8(a) (1) through (4), and the provisions for judicial review 
of such decision under section 552(a)(4) of the FOIA. The appeal 
decision shall be dispatched to the requester within twenty working days 
after receipt of the appeal, unless an additional period is justified 
pursuant to Sec. 1102.5(c). The appeal decision shall constitute the 
final action of the Corporation. All such decisions shall be treated as 
final opinions under 5 U.S.C. 552(a)(2).



Sec. 1102.10  Fees.

    (a) Records provided routinely in the normal course of doing 
business will be provided at no charge.
    (b) Fees shall be limited to reasonable standard charges for 
document search, duplication, and review, when records are for a 
commercial use request;
    (c) Fees shall be limited to reasonable standard charges for 
duplication when records are not sought through a commercial use request 
and the request is made by an educational institution or non-commercial 
scientific institution, whose purpose is scholarly or scientific 
research, or a representative of the news media; and
    (d) For any request not described in paragraph (b) or (c) of this 
section, fees shall be limited to reasonable standard

[[Page 823]]

charges for search, review and duplication.
    (e) The schedule of charges for services regarding the production or 
disclosure of the Corporation's records is as follows:
    (1) Whenever feasible, for manual searches and reviews: The basic 
rate(s) of pay of the employee(s) making the search and review plus 16 
percent of the rate(s) to cover benefits.
    (2) Computer time: Because of the diversity in the types of 
configurations of computers which may be required in responding to 
requests for records maintained in whole or part in computerized form, 
it is not feasible to establish a uniform schedule of fees for search 
and printout of such records. The charge for personnel time shall be the 
basic rate(s) of pay of the employee(s) involved plus 16 percent of the 
rate(s) to cover benefits. The charge for the computer time involved and 
for any special supplies or materials used shall not exceed the direct 
cost to the Corporation.
    (3) Duplication of records: A per-page charge for paper copy 
reproduction of documents. At present, the charge is $0.10 per page.
    (4) Duplication of microform: Actual charges as incurred.
    (5) Certification of true copies: $1.00 each.
    (6) Packing and mailing records: Actual charges as incurred.
    (7) Special delivery or express mail: Actual charges as incurred.
    (f) A record shall be furnished without any charge or at a charge 
reduced below the fees established under paragraph (e) of this section 
if disclosure of the record is in the public interest because it is 
likely to contribute significantly to public understanding of the 
operations or activities of the government and is not primarily in the 
commercial interest of the requester.
    (1) In order to determine whether disclosure of the record ``is in 
the public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the 
government,'' the Corporation will consider the following four criteria:
    (i) The subject of the request: Whether the subject of the requested 
records concerns ``the operations or activities of the government'';
    (ii) The informative value of the record to be disclosed: Whether 
the disclosure is ``likely to contribute'' to an understanding of 
government operations or activities;
    (iii) The contribution to an understanding of the subject by the 
general public likely to result from disclosure: Whether disclosure of 
the requested record will contribute to ``public understanding''; and
    (iv) The significance of the contribution to public understanding: 
Whether the disclosure is likely to contribute ``significantly'' to 
public understanding of government operations or activities.
    (2) In order to determine whether disclosure of a record ``is not 
primarily in the commercial interest of the requester,'' the Corporation 
will consider the following two factors:
    (i) The existence and magnitude of a commercial interest: Whether 
the requester has a commercial interest that would be furthered by the 
requested disclosure; and, if so,
    (ii) The primary interest in disclosure: Whether the magnitude of 
the identified commercial interest of the requester is sufficiently 
large, in comparison with the public interest in disclosure, that 
disclosure is ``primarily in the commercial interest of the requester.''
    (3) A denial of a request for a waiver or reduction of fees will be 
subject to appeal in the same manner as appeals from denial of a request 
for information under Sec. 1102.9.
    (g) No fee will be charged under this section--
    (1) If the costs of routine collection and processing of the fee are 
likely to equal or exceed the amount of the fee; or
    (2) For any request described in paragraph (b), (c), or (d) of this 
section for the first two hours of search time and for the first one 
hundred pages of duplication.
    (h) No requester will be required to make an advance payment of any 
fee unless the requester has previously failed to pay fees in a timely 
fashion or the Corporation has determined that the fee will exceed $250.

[[Page 824]]

    (1) In the event that a requester has previously failed to pay a 
required fee (within 30 days of the date of billing), an advance deposit 
of the full amount of the anticipated fee together with the fee then due 
plus interest accrued may be required. The request will not be deemed to 
have been received by the Corporation until such payment is made.
    (2) In the event that the Corporation determines that an estimated 
fee will exceed $250, the requester shall be notified of the amount of 
the anticipated fee or such portion thereof as can readily be estimated. 
Such notification shall be transmitted as soon as possible, but in any 
event within five working days of such determination, giving the best 
estimate then available. The notification shall offer the requester the 
opportunity to confer with appropriate representatives of the 
Corporation for the purpose of reformulating the request so as to meet 
the requester's needs at a reduced cost. The request will not be deemed 
to have been received by the Corporation until an advance payment of the 
entire fee is made.
    (i) Interest will be charged to those requesters who fail to pay the 
fees charged. Interest will be assessed on the amount billed, starting 
on the 31st calendar day following the day on which the billing was 
sent. The rate charged will be as prescribed in 31 U.S.C. 3717.
    (j) If the Corporation reasonably believes that a requester or group 
of requesters is attempting to break a request into a series of requests 
for the purpose of evading the assessment of fees, the Corporation shall 
aggregate such requests and charge accordingly.
    (k) The Corporation reserves the right to limit the number of copies 
that will be provided of any record to a requester or to require that 
special arrangements for duplication be made in the case of bound 
volumes or other records representing unusual problems of handling or 
duplication.



Sec. 1102.11  Notice to submitters of certain information.

    (a) Upon receipt of a request for information that either, (1) the 
Freedom of Information Officer determines may be exempt from disclosure 
under paragraph (b)(4) of Sec. 1102.6 as privileged or confidential 
trade secrets or commercial or financial information submitted to the 
Corporation by a third party or entity (other than federal government 
agencies); or (2) is subject to an understanding of confidentiality 
between the Corporation and the submitter thereof, the Freedom of 
Information Officer shall provide the submitter of such information with 
notice of the request.
    (b) The Corporation shall afford a submitter of information covered 
by paragraph (a) of this section a period, generally not in excess of 10 
working days, within which to provide the Freedom of Information Officer 
a detailed statement of objections to the disclosure of such information 
by the Corporation. The submitter's response (if any) shall include all 
bases, factual or legal, for the withholding of the requested 
information pursuant to paragraph (b)(4) of Sec. 1102.6. If the Freedom 
of Information Officer does not receive a timely response from the 
submitter, the Freedom of Information Officer shall proceed with the 
determination of whether or not to release such information.
    (c) Whenever the Corporation decides to release any part of the 
information covered by paragraph (a) of this section over the objection 
of the submitter, the Corporation shall forward to the submitter a 
written statement providing a brief explanation why the Corporation did 
not agree with the submitter's objections; a description of the 
information to be released; and the expected date of the release.
    (d) If a requester or submitter brings suit against the Corporation 
seeking to compel or restrict the release of information covered by 
paragraph (a) of this section, the Corporation shall promptly notify the 
other party.
    (e) The notice requirement of this section shall not apply if:
    (1) The information has been published or otherwise made available 
to the public;
    (2) Disclosure of the information is required by law (other than 5 
U.S.C. 552);
    (3) The submitter has received notice of a previous FOIA request 
which encompassed the information requested

[[Page 825]]

in the later request, and the Corporation intends to withhold 
information in the same manner as in the previous FOIA request; or
    (4) Upon submitting the information or within a reasonable period 
thereafter, (i) the submitter reviewed its information in anticipation 
of future requests pursuant to the FOIA, (ii) the submitter provided the 
Corporation a statement of its objections to disclosure consistent with 
that described in paragraph (b) of this section, and (iii) the 
Corporation intends to release information consistent with the 
submitter's objections.

[[Page 827]]



CHAPTER XV--OFFICE OF THE FEDERAL INSPECTOR FOR THE ALASKA NATURAL GAS TRANSPORTATION SYSTEM




  --------------------------------------------------------------------

                    SUBCHAPTER A--GENERAL PROVISIONS

Part                                                                Page
1500            Functions, powers and duties................         828
1502            Organization................................         834
1504            Gathering, handling, and disclosing 
                    information.............................         836
1506            Employee standards of conduct...............         849
1530            Reimbursement of costs......................         864
                  SUBCHAPTER C--ENFORCEMENT PROCEDURES

1534            Enforcement procedures for regulations 
                    requiring equal opportunity during 
                    planning, construction, and initial 
                    operation of the Alaska Natural Gas 
                    Transportation System...................         868
1535            Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by Office of the 
                    Federal Inspector for the Alaska Natural 
                    Gas Transportation System...............         872

[[Page 828]]



                    SUBCHAPTER A--GENERAL PROVISIONS





PART 1500--FUNCTIONS, POWERS AND DUTIES--Table of Contents




                      Subpart A--General Provisions

Sec.
1500.101  Purpose.
1500.102  Seal.

                    Subpart B--Creation and Authority

1500.201  Summary.
1500.202  Statutory background.

                     Subpart C--Functions and Duties

1500.301  Summary.
1500.302  General monitoring and oversight.
1500.303  Permit scheduling and coordination.
1500.304  Approval of systems, plans, and design.
1500.305  Cost control.
1500.306  Enforcement of Federal laws.

    Authority: Alaska Natural Gas Transportation Act, 15 U.S.C. 719; 
Decision and Report to Congress on the Alaska Natural Gas Transportation 
System, Executive Office of the President, Energy Policy and Planning, 
issued September 22, 1977; Reorganization Plan No. 1 of 1979, 44 FR 
33663 (June 12, 1979); Executive Order 12142 of June 21, 1979, 44 FR 
36927 (June 25, 1979); and 5 U.S.C. 552(a)(1).

    Source: 46 FR 22328, Apr. 16, 1981, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 1500.101  Purpose.

    This part is intended to provide a general description of the 
functions, powers, and duties of the Office of the Federal Inspector for 
the Alaska Natural Gas Transportation System (OFI).



Sec. 1500.102  Seal.

    (a) The OFI has adopted an official seal of which judicial notice 
shall be taken. Its description is as follows: A blue circle encircled 
by a blue band with the words ``Office of the Federal Inspector, Alaska 
Natural Gas Transportation System'' encircling the blue band. Inside the 
circle, in white, are the letters ``FI''. Above the letters are three 
white symbols representing natural gas flames. The symbols get 
progressively smaller from left to right.
    (b) The Official Seal of the OFI is illustrated as follows:
    [GRAPHIC] [TIFF OMITTED] TC01OC91.042
    


                    Subpart B--Creation and Authority



Sec. 1500.201  Summary.

    (a)(1) Congress, in its 1976 legislation clearing the way for the 
Alaska Natural Gas Transportation System (ANGTS), included the 
requirement that a Federal Inspector be appointed to assure that the 
project be built as timely as possible, without excessive cost overruns, 
and with minimal harm to the enviromnent.
    (2) OFI was established pursuant to the Alaska Natural Gas 
Transportation Act of 1976 (ANGTA), 15 U.S.C. 719; Reorganization Plan 
No. 1 of 1979, 44 FR 33663 (June 12, 1979); and Executive Order No. 
12142, 44 FR 36927 (June 25, 1979).
    (b) The Alaska Natural Gas Transportation System (ANGTS) is the 
statutory designation for the system chosen by the President pursuant to 
his statutory authority to designate a system for the delivery of Alaska 
natural gas to the contiguous states. Section 7(a)(4) of ANGTA. The 
President designated an overland pipeline system beginning at Prudhoe 
Bay in Northern Alaska, continuing through Alaska into Canada. The 
system will split in Southern Alberta into eastern and western legs 
terminating in Dwight, Illinois, and Antioch, California, respectively. 
The ANGTS will be designed optimally to carry 2.0 to 2.5 billion cubic 
feet of gas per day, with greater volumes possible. It is more fully 
described in section 2 of the Decision and Report to Congress on the 
Alaska Natural

[[Page 829]]

Gas Transportation System (Decision) Executive Office of the President, 
Energy Policy and Planning, issued September 22, 1977.



Sec. 1500.202  Statutory background.

    (a) The Alaska Natural Gas Transportation Act of 1976 (ANGTA).
    (1) In 1976 ANGTS was given priority status, and thus removed from 
the standard regulatory process, by ANGTA. The Congressional purpose of 
ANGTA was twofold: to provide for a sound system-selection decision, 
involving the President, Congress, and many Federal agencies; and to 
expedite construction--once a system was selected--through a number of 
administrative and judicial innovations. One such innovation was the 
Federal Inspector.
    (2) The President was authorized and directed by section 7(a)(5) of 
ANGTA, 15 U.S.C. 719(e), to appoint either a single officer or a board 
as Federal Inspector, following issuance of his decision selecting a 
transportation system. The authorities first envisioned by Congress for 
the Federal Inspector entail monitoring, as contrasted to actual 
enforcement. In addition to the authority to establish a joint 
monitoring agreement with Alaska, to monitor compliance with all Federal 
laws, to compel submission of information, and to report to the 
President and Congress, the Federal Inspector was authorized to monitor 
closely the technical aspects of project planning and execution.
    (b) President's Decision. (1) In 1977 the President selected the 
Alcan (since changed to Alaskan Northwest Natural Gas Transportation 
Company) project, as he issued his Decision and Report to Congress on 
the Alaska Natural Gas Transportation System (Decision), Executive 
Office of the President, Energy Policy and Planning, issued September 
22, 1977. In section 5 thereof, the President determined that, in order 
to ensure coordinated government oversight, the Federal Inspector must, 
in addition to the ANGTA authorities (described in paragraph (a) of this 
section) have ``field-level supervisory authority over enforcement of 
terms and conditions from those Federal agencies having statutory 
responsibilities over various aspects of (ANGTS)'' (Id., at a 41-42). He 
concluded, however, that the necessary transfer of authorities would 
have to await a reorganization plan, which in turn necessitated 
compliance with the substantive and parliamentary requirements of the 
Reorganization Act of 1977, 5 U.S.C. 901, et seq.
    (2) In deferring appointment of the Federal Inspector until after 
transmitting a reorganization plan to Congress, the President 
substantially expanded the Federal Inspector concept, from Congress' 
watchdog to the focus of all enforcement of Federal laws related to 
ANGTS. Also as part of section 5 of the Decision, the President further 
expanded the Federal Inspector's authority to include pre-approval of 
the many important planning decisions to be made by the ANGTS sponsors. 
This took the form of numerous terms and conditions governing 
construction costs and schedule, safety and design, and environmental 
protection.
    (3) These myriad terms and conditions have the force of law. The 
President was authorized, by section 7(a)(6) of ANGTA, to include them 
in his Decision. And because the Decision in its entirety was given full 
legal effect, under section 8 of ANGTA by joint resolution, H.J. Res. 
621, Pub. L. 95-158, 95th Cong. 1st Sess., these terms and conditions 
have in essence become statutory in nature.
    (c) Reorganization Plan and Executive Order. (1) In 1979 the OFI was 
actually established, and the necessary transfer of authorities 
accomplished through, Reorganization Plan No. 1 of 1979. First, the OFI 
was transferred ``exclusive responsibility for enforcement of all 
Federal statutes relevant in any manner to preconstruction, 
construction, and initial operation'' of ANGTS. section 102 of the 
Reorganization Plan. The OFI is to enforce the legal requirements of 
many Federal agencies. The Environmental Protection Agency (EPA), the 
Army Corps of Engineers (COE), Department of Transportation (DOT), 
Department of Energy (DOE), Federal Energy Regulatory Commission (FERC), 
Department of the Interior (DOI), Department of Agriculture (USDA), and 
Department of the Treasury (Treasury), and their respective

[[Page 830]]

legal authorities, are specifically enumerated as the most likely to be 
enforced by the OFI relative to ANGTS. The OFI was also charged with 
enforcing the terms and conditions found in section 5 of the Decision, 
as well as fulfilling the monitoring duties set for the Federal 
Inspector in section 7(a)(5) of ANGTA and the supplemental enforcement 
duties found in section 11 of ANGTA.
    (2) Enforcement and monitoring constitute only part of the OFI's 
authority under the Reorganization Plan. Under section 202(b), for 
example, the OFI is to coordinate and expedite the permitting activities 
of the Federal agencies. This is a permit-scheduling function.
    (3) Under section 202(a) final enforcement actions of the OFI are 
subject to judicial review only under section 10 of ANGTA. Thus, 
complaints must be filed with the U.S. Court of Appeals for the District 
of Columbia Circuit within 60 days of the challenged final OFI action. 
Review is then expedited (90 days) and of limited scope.
    (4) The Reorganization Plan became effective as of July 1, 1979, as 
per Executive Order 12142. And with the Executive Order, the OFI 
officially came into existence.



                     Subpart C--Function and Duties



Sec. 1500.301  Summary.

    Through the combination of authorities described in Sec. 1500.202, 
the OFI oversees every aspect of ANGTS planning and execution. For ease 
of understanding, these functions (and the underlying legal authorities) 
are enumerated under five major groupings: general monitoring and 
oversight (Sec. 1500.302); scheduling of permits and other governmental 
authorizations (Sec. 1500.303); review and approval of systems, plans, 
and design during planning (Sec. 1500.304); cost control 
(Sec. 1500.305); and enforcement of Federal statutes and related terms 
and conditions (Sec. 1500.306).



Sec. 1500.302  General monitoring and oversight.

    Monitoring and oversight entails the following OFI functions:
    (a) Coordinating enforcement with Alaska. The OFI is to establish a 
``joint surveillance and monitoring agreement'' with the State of Alaska 
(section 7(a)(5)(A) of ANGTA). In this way Federal and State enforcement 
efforts can be coordinated, to avoid conflicts and to enhance 
efficiency. The OFI may also work jointly on compliance with the Lower 
48 states traversed by ANGTS.
    (b) Monitoring compliance with Federal laws. The OFI is to monitor 
compliance with applicable Federal laws and terms and conditions of the 
many Federal permits and other authorizations issued for ANGTS (section 
7(a)(5)(B) of ANGTA). This includes compliance with the terms and 
conditions attached to the authorizations.
    (c) Monitoring for effective planning. The OFI is to ``monitor 
actions taken to assure timely completion of construction schedules and 
the achievement of quality of construction, cost control, safety, and 
environmental protection * * *'' (section 7(a)(5)(C) of ANGTA). The 
breadth of this monitoring function requires that the OFI follow the 
various aspects of project planning and execution.
    (d) Reporting to Congress and the President. One purpose of the 
monitoring function is to provide the information for the OFI's current 
and periodic reports to Congress and the President on the status of 
ANGTS progress (section 7(a)(5)(E) of ANGTA). In this regard, the OFI 
publishes a quarterly report on the status of ANGTS (section 7(a)(5)(E) 
of ANGTA). This is available to the public upon request.



Sec. 1500.303  Permit scheduling and coordination.

    (a) The Reorganization Plan differentiates between permitting (so-
called ``nonenforcement'') and enforcement, only the latter function 
being transferred to the OFI. Nevertheless, the OFI is responsible for 
coordinating and expediting the issuance of permits and other 
authorizations by the Federal agencies. Section 9(a) and (b) of ANGTA, 
and Section 202(b) of the Reorganization Plan. OFI coordination can, for 
example, take the form of ``requiring submission of scheduling plans for 
all permits;'' and ``serving as the `one window' point for filing for 
and issuance of all necessary permits'' and

[[Page 831]]

data requests. Section 202(b) of the Reorganization Plan.
    (b) This coordination function goes beyond mere permit scheduling. 
It also involves the OFI, pursuant to Section 202(b) of the 
Reorganization Plan, in evaluating the many discretionary terms and 
conditions which each Federal agency may impose on ANGTS, to assure that 
they do not impair project expedition, as per Section 9(c) of ANGTA.



Sec. 1500.304  Approval of systems, plans, and design.

    All significant systems, plans, and design are subject to OFI 
scrutiny, as a precondition to commencement of construction (Section 5 
of the Decision and Section 102(h)(3) of the Reorganization Plan). 
Without listing every approval requirement, the following are the most 
significant:
    (a) Management plans. Prior to final certification, the ANGTS 
applicants must provide a ``detailed overall management plan'' for OFI 
approval (Section 5 of the Decision, Condition I.1.). Thus, at the 
outset the applicant's overall strategy for executing the project will 
be scrutinized.
    (b) Execution contracts. Several aspects of the contracts with 
execution contractors (the prime contractor for any given pipeline 
spread) must be approved by the OFI (Section 5 of the Decision, 
Conditions I.2, I.3, I.7, and I.8). These include contract form (if 
other than fixed-price), bonding and other prequalification 
requirements, labor relations procedure, and dispute procedures.
    (c) Cost and schedule control. The applicants must provide the OFI 
with detailed ``cost and schedule control techniques'' (Id., Condition 
I.4.). This entails, for example, manpower, material, logistical, and 
equipment planning.
    (d) Operating strategies. The OFI must approve the applicants' 
operating strategies. Equipment supply, repair facilities, and spare-
part inventories are among the items to be reviewed (Id., Condition 
I.6.).
    (e) Design review. The OFI's technical oversight is manifested most 
in approving the ``final design, design-cost estimate, and construction 
schedule'' for the ANGTS applicants (Id., Condition I.5.). Because 
construction may not start until final design is approved, this review 
is perhaps the OFI's primary means for assuring proper design and 
planning, as well as assuring the reasonableness of the design-cost 
estimate.
    (f) Quality control and assurance. The OFI must approve the 
procedures proposed for quality control and quality assurance during 
construction (Id., Condition I.9.). Apart from these procedures, the OFI 
must approve technical construction specifications and seismic 
monitoring systems, to assure pipeline safety and integrity of design, 
as well as approve plans to assure environmental protection (Id., Safety 
and Design Conditions II.2 and II.6; Environmental Condition III.2.).
    (g) Procurement review. As part of the bilateral agreement with 
Canada relative to ANGTS, the OFI, along with the Northern Pipeline 
Agency in Canada, is charged with endeavoring ``to ensure that the 
supply of goods and services to (ANGTS) will be on generally competitive 
terms'' (Decision, Section 7, paragraph 7(a)). Because sanctions for 
violation include reopening bids, procurement review occurs during the 
planning process, not after-the-fact. This review is accomplished 
through detailed reciprocal procedures, which were established by a 
``diplomatic exchange of notes'' and subsequently given regulatory 
approval by the FERC.



Sec. 1500.305  Cost control.

    In addition to the cost-control purpose and effect of monitoring 
(Sec. 1500.302) and systems approval (Sec. 1500.304), the OFI has 
additional and more direct cost-control functions.
    (a) The Incentive Rate of Return, developed by the Federal Energy 
Regulatory Commission (FERC), is to be administered by the OFI during 
planning and construction, Determination of Incentive Rate of Return, 
Order No. 31, Docket No. RM78-12, issued June 8, 1979. The OFI will rule 
on design changes prior to its approval of the final design during 
planning and construction (Determination of Incentive Rate of Return. 
Order No. 31, Docket No. RM78-12, issued June 8, 1979. The OFI

[[Page 832]]

cost estimate and on scope changes during construction).
    (b) both by transfer of enforcement functions under Section 102(d) 
of the Reorganization Plan, and also by delegation from the FERC 
pursuant to Section 202(b) of the Reorganization Plan, 45 FR 85511 
(December 29, 1980), the OFI will audit expenditures for rate base 
formation and accounting compliance. This audit must be performed on a 
timely basis during construction (Section 5 of the Decision, Finance 
Condition IV.2.).



Sec. 1500.306  Enforcement of Federal laws.

    (a) The OFI's enforcement function extends to ``all Federal statutes 
relevant in any manner to pre-construction, construction, and initial 
operation'' of ANGTS. Section 102 of the Reorganization Plan. This 
transfer includes, but is not limited to, the enforcement functions of 
the following agencies:
    (1) The Environmental Protection Agency. Such enforcement functions 
of the Administrator and others related to compliance with:
    (i) National Pollutant Discharge Elimination System permits (Section 
402 of the Clean Water Act of 1977 (CWA)). These permits are required 
for the discharge of pollutants into waters of the U.S.
    (ii) Spill prevention, containment, and countermeasure plans 
(Section 311 of CWA). These plans are required for major 
nontransportation oil storage at camps and other facilities.
    (iii) Review of permits issued by the Corps of Engineers for dredged 
and fill materials (Section 404 of CWA). These permits are required for 
the discharge of dredged or fill material into waters of the U.S.
    (iv) New Source Performance Standards (Section 111 of the Clean Air 
Act). Enforcement of standards of performance for new stationary sources 
of air pollution such as stationary gas turbines and incinerators.
    (v) Prevention of Significant Deterioration review and approval 
(Sections 160-169 of the Clean Air Act). Review of construction or 
modification of most stationary air emission sources which emit over 100 
tons per day of any air pollutant.
    (vi) Resource Conservation and Recovery permits (Resource 
Conservation and Recovery Act of 1976). Enforcement of permits for 
disposal or chemical destruction of hazardous wastes.
    (2) The U.S. Army Corps of Engineers. Such enforcement functions of 
the Secretary of the Army and others related to compliance with:
    (i) Dredged and fill material permits (Section 404 of CWA). 
Enforcement of permits regulating the discharge in waters of the U.S. of 
dredged materials and pollutants that comprise fill material.
    (ii) Permits for structures in navigable waters (Section 10 of 
Rivers and Harbors Appropriation Act of 1899). Enforcement for permits 
for structures, including piers, break waters, bulkheads, revetments, 
power transmission lines, and aids to navigation, as well as for certain 
work performed in navigable waters.
    (3) The Department of Transportation. Such enforcement functions of 
the Secretary of Transportation and others related to compliance with:
    (i) The Natural Gas Pipeline Safety Act of 1968 and related 
regulations. This entails a comprehensive oversight program to assure 
quality of construction and pipeline integrity.
    (ii) The Federal Aviation Act and related authorizations and 
regulations, such as, proposed private airport facilities, air traffic 
limitations, and height requirements for structures like microwave 
transmitter towers.
    (iii) Permits for bridges across navigable waters (Section 9 of 
Rivers & Harbors Appropriation Act of 1899).
    (4) The Department of Energy and the Federal Energy Regulatory 
Commission. Such enforcement functions of the Secretary of Energy, the 
Commission and others related to compliance with:
    (i) Certificates of public convenience and necessity (Section 7 of 
the Natural Gas Act).
    (ii) Authorizations for importation of natural gas, including gas 
imported from Alberta as predeliveries of Alaska gas (Section 3 of the 
Natural Gas Act). Enforcement of requirements for facilities necessary 
to transport this gas.

[[Page 833]]

    (5) The Department of the Interior. Such enforcement functions of 
the Secretary of the Interior and others related to compliance with:
    (i) Grants of rights-of-way and temporary use permits for Federal 
lands (Section 28 of Mineral Leasing Act). These grants and permits 
include those for gas pipelines and related facilities on Federal lands, 
as well as those for related temporary uses, such as campsites, roads, 
communications and monitoring sites.
    (ii) Land use permits for temporary use of public lands and other 
associated land uses (Section 302, 501, and 503-511 of the Federal Land 
Policy and Management Act of 1976). These permits provide authority for 
temporary use of Federal lands in addition to the authority under the 
Mineral Leasing Act and include permits for field work preparatory to 
applying for grants of right-of-way and other associated uses.
    (iii) Materials sales contracts (the Materials Act of 1947). These 
permits concern the removal of mineral or vegetative material from 
public lands.
    (iv) Rights-of-way across Indian lands (Rights of Way Through Indian 
Lands Act). Grants of rights-of-way issued by the Secretary after tribal 
consent.
    (v) Removal permits (the Materials Act of 1947). These permits also 
concern removal of mineral or vegetative material from public lands.
    (vi) Approval to cross national wildlife refuges (National Wildlife 
Refuge System Administration Act of 1966 and Upper Mississippi River 
Wildlife and Fish Refuge Act). Issuances of permits or rights-of-way or 
permits on wildlife refuges must have Interior approval as being 
compatible with the purpose for establishing the refuge.
    (vii) Wildlife consultation (Fish and Wildlife Coordination Act). 
Requirement for consultation with Fish and Wildlife Service as to the 
effects of rights-of-way or permits on wildlife resources.
    (viii) Protection of certain birds (Migratory Bird Treaty Act and 
Bald and Golden Eagles Protection Act). Interior is responsible for 
protecting migratory birds and eagles, their nests and eggs. Special use 
permits or waivers are available except in the case of eagles.
    (ix) Review of Corps of Engineers' dredged and fill material permits 
(Section 404 of CWA). See similar discussion under paragraph (a) of this 
section, EPA, and paragraph (b) of this section, the Corps.
    (x) Rights-of-way across recreation lands (Land and Water 
Conservation Fund Act of 1965). Compliance with restrictions for land 
acquired or developed with the assistance of the Fund.
    (xi) Historic preservation (National Historic Preservation Act of 
1966). Principally consultation on the effect of system activities on 
locations covered by the Act.
    (xii) Permits issued under the Antiquities Act of 1906. Such permits 
allow certain institutions to examine ruins, to excavate archeological 
sites and to gather objects of antiquity on or from Federal lands.
    (xiii) System activities requiring coordination and approval under 
the general authorities of:
    (A) The National Trails System Act,
    (B) The Wilderness Act,
    (C) The Wild and Scenic Rivers Act,
    (D) The National Environmental Policy Act of 1969,
    (E) The Act of April 27, 1935, dealing with the prevention of soil 
erosion, and
    (F) An Act to provide for the Preservation of Historical and 
Archeological Data.
    The enforcement functions under these Acts generally concern 
requirements that the purposes and protection set forth in the Act be 
observed, or, depending on the specific statute, at least be taken into 
account, in the performance of system activities.
    (xiv) Equal opportunity regulations published by the Department. 43 
CFR Part 34. These regulations require affirmative action to assure 
against discrimination in employment and contracting on ANGTS. Section 
17 of ANGTA.
    (6) The Department of Agriculture. Such enforcement functions of the 
Secretary of Agriculture or other related to compliance with:
    (i) Associated land use permits under grants of rights-of-way across 
Federal lands (Section 28 of the Mineral Leasing Act of 1920). Similar 
permits to those of Interior above except for lands administered by 
USDA.

[[Page 834]]

    (ii) Land use permits for associated land uses (Section 501 and 503-
511 of Federal Land Policy and Management Act of 1976). Similar permits 
to those of Interior above except for lands administered by USDA.
    (iii) Land use permits under the Organic Administration Act of June 
4, 1897 and Title III of Bankhead-Jones Farm Tenant Act of 1937. Permits 
for land use of a non right-of-way nature for National Forest System 
lands (under the first Act) and National Grasslands (under the second 
Act).
    (iv) Removal of materials under the Materials Act of 1947. Similar 
permits to those of Interior above except for lands administered by 
USDA.
    (v) Removal of objects of antiquity (Antiquities Act of 1906). 
Similar permits to those of Interior above except for lands administered 
by USDA.
    (vi) Construction and utilization of national forest roads (Roads 
and Trails System Act of 1964). Permanent or temporary easements issued 
for such roads.
    (vii) System activities requiring coordination and approval under 
the general authorities of:
    (A) The National Forest Management Act of 1976;
    (B) The Multiple Use Sustained-Yield Act of 1960;
    (C) The Forest and Rangelands Renewable Resources Planning Act of 
1974;
    (D) The National Trails System Act;
    (E) The Wilderness Act;
    (F) The Wild and Scenic Rivers Act;
    (G) The Land and Water Conservation Fund Act of 1965;
    (H) The Clean Water Act of 1977;
    (I) The Fish and Wildlife Coordination Act;
    (J) The Fish and Game Sanctuaries Act;
    (K) The National Historic Preservation Act of 1966;
    (L) An Act to provide for the preservation of Historical and 
Archeological Data;
    (M) The National Environmental Policy Act of 1969;
    (N) The Watershed Protection and Flood Prevention Act;
    (O) The Soil and Water Conservation Act of 1977; and
    (P) The Act of April 27, 1935, dealing with prevention of soil 
erosion.
    The enforcement functions under these acts generally concern 
requirements that the purposes and protections set forth in the acts be 
observed, or, depending on the specific statute, at least be taken into 
account, in the performance of system activities.
    (7) The Department of the Treasury. Such enforcement functions of 
the Secretary of the Treasury and others related to compliance with 
permits and regulations for interstate transport or storage of 
explosives.
    (8) The Department of Labor. Pursuant to memorandum of 
understanding, coordination of functions to assure compliance with:
    (i) The Federal Mine Safety and Health Act of 1977, and
    (ii) The Occupational Safety and Health Act of 1970.

Regulations promulgated pursuant to these acts are intended to reduce 
lost work time resulting from workplace injuries and illnesses.
    (b) The specific statutes and regulations listed above span the full 
spectrum of Federal regulatory law. Be they concerned with environmental 
protection, pipeline integrity, public convenience and necessity, or 
public land use, these statutes, and the resulting regulations, permits, 
and terms and conditions, require the OFI to oversee every aspect of 
ANGTS construction.



PART 1502--ORGANIZATION--Table of Contents




Sec.
1502.1  Purpose.
1502.2  Status.
1502.3  Federal Inspector.
1502.4  Executive policy board.
1502.5  Agency authorized officers.
1502.6  Citizens' Environmental Advisory Committee.
1502.7  Internal organization.
1502.8  Offices and hours.

    Authority: Alaska Natural Gas Transportation Act, 15 U.S.C. 719; 
Decision and Report to Congress on the Alaska Natural Gas Transportation 
System, Executive Office of the President, Energy Policy and Planning, 
issued September 22, 1977; Reorganization Plan No. 1 of 1979, 44 FR 
33663 (June 12, 1979); Executive Order 12142 of June 21, 1979, 44 FR 
36927 (June 25, 1979); and 5 U.S.C. 552(a)(1).

[[Page 835]]


    Source: 46 FR 22332, Apr. 17, 1981, unless otherwise noted.



Sec. 1502.1  Purpose.

    This part is intended to provide a general description of the 
organization of the Office of the Federal Inspector (OFI). More detailed 
information can be obtained from the OFI Public Information Officer.



Sec. 1502.2  Status.

    Pursuant to Section 101(a) of Reorganization Plan No. 1 of 1979, the 
OFI was created as an independent establishment in the Executive Branch. 
It is not a component of any department or other agency. The Federal 
Inspector reports to the Executive Office of the President.



Sec. 1502.3  Federal Inspector.

    Pursuant to Section 101(b) of Reorganization Plan No. 1 of 1979, the 
OFI is headed by a Federal Inspector. Pursuant to Section 7(a)(5) of 
ANGTA, the Federal Inspector was appointed by the President with the 
advice and consent of the Senate.



Sec. 1502.4  Executive policy board.

    Established by Executive Order No. 12142, the Executive Policy Board 
(EPB) is composed of high-level representatives of the Departments of 
Labor, Agriculture, Energy, Interior, Transportation, the U.S. Army 
Corps of Engineers, the Federal Energy Regulatory Commission, and the 
Environmental Protection Agency. The EPB advises the Federal Inspector 
on policy issues and the exercise of OFI authorities relating to 
enforcement actions (Section 201 of the Reorganization Plan). But the 
other functions proposed for the EPB in the Decision were transferred to 
the Federal Inspector (Id.).



Sec. 1502.5  Agency authorized officers.

    Each Federal agency which has approval authority for some aspect of 
the project must appoint an Agency Authorized Officer (AAO) to represent 
that agency in the Federal Inspector's Office (Section 101(c) of the 
Reorganization Plan). The AAOs work closely with their agencies and are 
responsible to the Federal Inspector for assuring timely completion of 
all necessary actions during this project. In addition, depending on the 
degree of delegation from the Federal Inspector, they may participate in 
major enforcement actions related to their agency's responsibilities 
(Section 202(a) of the Reorganization Plan).



Sec. 1502.6  Citizens' Environmental Advisory Committee.

    The Federal Inspector has established a Citizens' Environmental 
Advisory Committee to advise him regarding environmental issues 
associated with the Alaskan segment of the System. (45 FR 41741, June 
20, 1980). The Committee provides a formal, direct channel through which 
views of the environmental community can be made known to the Federal 
Inspector.



Sec. 1502.7  Internal organization.

    The OFI is headed by the Federal Inspector. There are two Deputy 
Federal Inspectors, one responsible for operations in Alaska and the 
Irvine Office and the other responsible for Lower 48 operations and the 
headquarters offices. An Executive Director coordinates the technical 
and administrative functions of the OFI. The following organizational 
components are under the Federal Inspector's supervision:
    (a) The Office of the General Counsel. The Office of the General 
Counsel provides all legal services to the Federal Inspector on matters 
related to environmental, technical, public utility, contract, 
administrative, and all other laws related to the ANGTS.
    (b) The Office of Equal Employment Opportunity/Minority Business 
Enterprise/Labor. The Office of Equal Employment Opportunity/Minority 
Business Enterprise/Labor (Office of EEO/MBE/Labor) monitors all 
external EEO and MBE matters including the development and 
implementation of the affirmative actions plans and regulations required 
by Section 17 of ANGTA and Title VII of the Civil Rights Act of 1964. 
This office also administers the OFI EEO program. In addition, the 
Office of EEO/MBE/Labor works with organized labor and the sponsors on 
EEO and other labor-related issues.
    (c) The Office of External Affairs. The Office of External Affairs 
is responsible for Congressional and Canadian liaison,

[[Page 836]]

public affairs, and intergovernmental affairs.
    (d) The Office of Administration. The Office of Administration is 
responsible for all normal personnel and financial management functions, 
including operation of the OFI management information system. In 
addition, this office provides contract management, procurement, 
internal audit, and security functions.
    (e) The Office of Policy Analysis. The Office of Policy Analysis 
analyzes major policy and economic issues as they arise and provides 
program evaluations and special organization studies for the Federal 
Inspector. It also provides policy oversight and program assistance on 
socioeconomic impact issues.
    (f) The Office of Engineering Review. The Office of Engineering 
Review reviews pipeline design and construction plans, quality assurance 
and control programs, change orders and requests, cost estimates, and 
provides both compliance guidance and technical advice and assistance 
for field inspections.
    (g) The Office of Environmental Review. The Office of Environmental 
Review has functions which are similar to those of the Office of 
Engineering Review, except that this office focuses its attention on 
solving environmental problems. Although structurally separate, these 
two units work closely to ensure that both engineering and environmental 
considerations are addressed in a coordinated manner.
    (h) The Office of Audit and Cost Analysis. The Office of Audit and 
Cost Analysis implements the incentive rate of return mechanism and 
conducts audits of the sponsors' records for purposes of rate base 
formation. It is also responsible for assuring that the project sponsors 
establish and maintain effective cost-control and other management 
systems. These activities enable the Federal Inspector to quickly 
determine the impact of major decisions on cost and scheduling and to 
anticipate any potential significant cost or schedule deviations on the 
part of the project sponsors.
    (i) The Office of Permits, Scheduling, and Compliance. The Office of 
Permits, Scheduling, and Compliance tracks, expedites, and coordinates 
Federal permit issuance. It also monitors resource requirements, 
generally oversees the regulatory process by working with and advising 
the field staff, provides guidance and criteria on the enforcement of 
terms and conditions, laws, and regulations and administers the joint 
surveillance and monitoring agreement.
    (j) Field Offices in Alaska, San Francisco, and Omaha. Field Offices 
in Alaska, San Francisco, and Omaha are responsible for monitoring any 
preconstruction activities, serve as the ``one window'' for processing 
permit applications, and monitor all construction and initial operation 
activities for the Alaska, Western and Eastern legs of the project. The 
field offices also enforce laws, regulations, and the terms and 
conditions of all permits, grants, certificates, and notices-to-proceed.



Sec. 1502.8  Offices and hours.

    (a) Offices of the OFI are in the following locations:
    (1) Headquarters. Room 2407, Post Office Building, 1200 Pennsylvania 
Avenue, NW. Washington, DC 20044;
    (2) San Francisco. Room 767, Matson Building, 215 Market Street, San 
Francisco, California 94105;
    (3) Irvine. 1st Floor, 2302 Martin Drive, Irvine, California 92715;
    (4) Anchorage. 605 West Fourth Avenue, Pouch 6619, Anchorage, Alaska 
99502;
    (5) Fairbanks. Suite 400, Central Office Building, 1001 Noble 
Street, Fairbanks, Alaska 99701; and
    (6) Omaha. Suite 350, 11414 West Center Road, Omaha, Nebraska 68144.
    (b) Business hours are from 8:30 a.m. to 5:00 p.m. in Washington, 
from 8:00 a.m. to 5 p.m. in Irvine, and from 7:30 a.m. to 4:00 p.m. in 
all other locations. Offices are open Monday through Friday, except for 
Federal holidays.



PART 1504--GATHERING, HANDLING, AND DISCLOSING INFORMATION--Table of Contents




   Subpart A--Procedures Governing OFI Information Requests, Subpoena 
       Process, Judicial Enforcement, and Administrative Sanctions

Sec.
1504.101  Scope.

[[Page 837]]

1504.102  General oversight--OFI requests for information.
1504.103  General oversight--informal sanctions.
1504.104  General oversight--subpoenas.
1504.105  General oversight--compliance orders.
1504.106  General oversight--judicial enforcement.
1504.107  Formal OFI proceedings--discovery.
1504.108  Formal OFI proceedings--subpoenas.
1504.109  Formal OFI proceedings--compliance orders.
1504.110  Formal OFI proceedings--judicial enforcement.

   Subpart B--Treatment of ``Sensitive'' and ``Business'' Information

1504.201  General policy.
1504.202  Document categories.
1504.203  Factors governing designation of information as ``sensitive''.
1504.204  Factors governing designation of information as ``business''.
1504.205  Procedures to designate information as ``sensitive''.
1504.206  Treatment of ``sensitive'' information.
1504.207  Procedures to designate information as ``business''.
1504.208  Treatment of ``business'' information.

               Subpart C--Public Requests for Information

1504.301  Purpose and scope.
1504.302  Policy on disclosure of OFI records.
1504.303  Partial disclosure of records.
1504.304  Existing records.
1504.305  Where and to whom requests for OFI records should be sent.
1504.306  Form of request.
1504.307  Requests which do not reasonably describe records sought.
1504.308  Responsibilities of Freedom of Information Officer.
1504.309  Time allowed for issuance of initial determination.
1504.310  Records of other Federal agencies.
1504.311  Records obtained from the public; notice to the donor.
1504.312  Initial denial of a request.
1504.313  Appeal from an initial denial.
1504.314  Appeal determination.
1504.315  Contents of determination denying appeal.
1504.316  Time allowed for issuance of appeal determination.
1504.317  Exemption categories.
1504.318  Fees; payment; waiver.

    Authority: 5 U.S.C. 552; secs. 7(a) (5) and 9 of ANGTA, 15 U.S.C. 
719; and secs. 102 and 202 of Reorganization Plan No. 1 of 1979.

    Source: 46 FR 61228, Dec. 15, 1981, unless otherwise noted.



   Subpart A--Procedures Governing OFI Information Requests, Subpoena 
       Process, Judicial Enforcement, and Administrative Sanctions



Sec. 1504.101  Scope.

    (a) The Federal Inspector has expansive authority to collect 
information which ``he deems necessary to carry out his 
responsibilities.'' Section 7(a)(5)(D) of the Alaska Natural Gas 
Transportation Act (ANGTA), 15 U.S.C. 719e(a)(5)(D). Absent voluntary 
submission, the Office of the Federal Inspector (OFI) may issue an 
administrative subpoena and, if necessary, pursue judicial enforcement 
of unsatisfied subpoenas.
    (b) This subpart describes the procedures which will be used when 
voluntary OFI requests for information relevant to the general oversight 
functions of the OFI are not fulfilled. It also provides the procedures 
to be used during any formal OFI proceeding for issuing and enforcing 
administrative subpoenas.



Sec. 1504.102  General oversight--OFI requests for information.

    (a) The OFI will exercise its jurisdiction mainly through general 
project oversight, not through ad hoc adjudication. As a result, most of 
the OFI's requests for information should occur outside the confines of 
litigation.
    (b) The OFI will make requests for information in writing, except 
when a written communication would result in an unacceptable delay, in 
which case any oral request will be confirmed in writing. Requests will 
provide an adequate description of the information requested and state a 
reasonable period of time, consistent with the mandate of ANGTA to 
expedite the regulatory process, within which the information should be 
submitted.
    (c) When the request for information has not been satisfied, the OFI 
may take further action under either or both Secs. 1504.103 and 
1504.104.

[[Page 838]]



Sec. 1504.103  General oversight--informal sanctions.

    (a) If the request for needed information is not satisfied, as per 
Sec. 1504.102(c), the OFI may--as an alternative to or in addition to 
issuing an administrative subpoena--withhold any regulatory approval or 
monitoring action to which the needed information relates.
    (b) The director of the OFI office responsible for the specific 
regulatory approval or monitoring action and in need of the information 
withheld or the Deputy Federal Inspector where appropriate may, after 
consultation with the General Counsel, withhold such approval or action, 
as per Sec. 1504.103(a).
    (c) Delays associated with the OFI withholding approval or action, 
as per paragraph (a) of this section, will be attributed to the 
recalcitrant entity, to which the unsatisfied but valid information 
request had been made.



Sec. 1504.104  General oversight--subpoenas.

    (a) Justification. If the request for needed information is not 
satisfied, as per Sec. 1504.102(c), the OFI may issue a subpoena 
compelling production under this section.
    (b) Issuance. Subpoenas for the production of information deemed 
necessary for the OFI to carry out its general oversight and monitoring 
responsibilities may be issued either by the Federal Inspector or by the 
OFI General Counsel or designee.
    (c) Contents. Subpoenas will bear the OFI name and seal and the name 
and position of the issuing officer. Subpoenas will command the 
production of reasonably described information at a designated place and 
time, not to exceed 10 calendar days from date of service. The subpoena 
will contain the statutory basis for the request of the information and 
how the requested information is relevant to the execution of OFI's 
authority.
    (d) Service. (1) A subpoena will be served upon the person(s) named 
in the subpoena by delivering a copy of the subpoena to the person(s) 
named.
    (2) Delivery of the subpoena may be made by:
    (i) Any legally-accepted method, or
    (ii) Any other method that provides the person with actual notice 
prior to the return date of the subpoena.
    (e) Motion to quash. A motion to quash a subpoena may be made no 
more than 5 calendar days from the date of service. Such motion shall be 
filed with the issuing officer and shall set forth specific reasons why 
the information requested is clearly not necessary for the OFI to carry 
out its duties. The issuing officer may deny or grant the motion in 
whole or part; stay or extend the time for compliance; or modify the 
subpoena as appropriate.



Sec. 1504.105  General oversight--compliance orders.

    (a) When a subpoena issued pursuant to Sec. 1504.104 has been 
neither quashed nor satisfied, the OFI may issue a compliance order, as 
per section 11(a)(1) of ANGTA, 15 U.S.C. 719i(a)(1). Either the Federal 
Inspector or the OFI General Counsel may issue such an order.
    (b) Such compliance order will specify: (1) The subpoena violated; 
and (2) a time of compliance, not to exceed 10 calendar days.



Sec. 1504.106  General oversight--judicial enforcement.

    In addition to pursuing remedies available under other applicable 
provisions of law, the OFI may, after the issuance and violation of a 
compliance order:
    (a) Seek judicial enforcement of the unsatisfied subpoena;
    (b) Commence a civil action pursuant to section 11(a)(2) of ANGTA, 
15 U.S.C. 719i(a)(2), in the district court of the United States having 
venue for appropriate relief, including an injunction against or civil 
penalties (not to exceed $25,000 per day) for, violating the compliance 
order; and/or
    (c) Where appropriate, seek an order from the district court holding 
the defendant in contempt of court.



Sec. 1504.107  Formal OFI proceedings--discovery.

    (a) To the extent that it undertakes an enforcement or other 
regulatory action which requires an agency hearing on the record or 
which otherwise could result in the imposition of serious

[[Page 839]]

sanctions against the responding person, the OFI will gather the 
necessary information through interrogatories, document production, 
depositions, and other forms of discovery.
    (b) The rules governing such discovery will appear as part of the 
OFI's rules of practice and procedure, 10 CFR part 1508.
    (c) Unjustified refusal to comply with discovery requests may result 
in the OFI issuing a subpoena compelling compliance, as per 
Sec. 1504.108.



Sec. 1504.108  Formal OFI proceedings--subpoenas.

    (a) Justification. If the discovery request for information is 
refused, as per Sec. 1504.107(c), if a requested witness refuses to 
appear, or if a party refuses to produce evidence, the OFI may issue a 
subpoena compelling discovery, attendance, or production under this 
section.
    (b) Issuance. Subpoenas justified under Sec. 1504.108(a) may be 
issued by the OFI presiding officer on his or her own motion or on a 
motion filed with the presiding officer by any party to the OFI 
proceeding. Subpoenas will be issued if the presiding officer finds that 
the information requested is necessary to the duties of the OFI and 
should not otherwise be withheld.
    (c) Contents. Subpoenas will bear the OFI name and seal, the name 
and position of the issuing officer, and the title of the proceeding. 
Subpoenas will command a named person to testify or produce reasonably 
described evidence or information at a designated time and place. The 
subpoena will contain the statutory basis for the request of the 
information and how the requested information is relevant to the 
execution of OFI's authority.
    (d) Service. Service will be accomplished in accordance with 
Sec. 1504.104(d).
    (e) Motion to quash. A motion to quash a subpoena may be made no 
more than 5 calendar days from the date of service. Such motion shall be 
filed with the OFI presiding officer who issued the subpoena (and where 
appropriate served on the party applying for the subpoena) and shall set 
forth specific reasons why the information requested is clearly not 
necessary for the OFI to carry out its duties, or should otherwise be 
withheld. The OFI presiding officer may deny or grant the motion in 
whole or part; stay or extend the time for compliance; or modify the 
subpoena as appropriate.



Sec. 1504.109  Formal OFI proceedings--compliance orders.

    When a subpoena issued pursuant to Sec. 1504.108 has been neither 
quashed nor satisfied, the OFI may issue a compliance order in 
accordance with the procedures set forth in Sec. 1504.105.



Sec. 1504.110  Formal OFI proceedings--judicial enforcement.

    Judicial enforcement of a compliance order, issued under 
Sec. 1504.109, may be sought in accordance with Sec. 1504.106.



   Subpart B--Treatment of ``Sensitive'' and ``Business'' Information



Sec. 1504.201  General policy.

    (a) The OFI agrees in advance to resist disclosure of ``sensitive'' 
information, a narrow category including national security, trade 
secret, critical procurement, and secrecy agreement information.
    (b) For ``business'' information, however, the OFI only agrees to 
the following: (1) To give to the submitter notice and opportunity to 
object; and (2) to balance the competing interests as to disclosure.



Sec. 1504.202  Document categories.

    (a) The ``sensitive'' category is very narrow, only including 
documents which, except under court order, should in no case be 
distributed outside the government (and in most cases retained just 
within the OFI). The following types of information are ``sensitive'':
    (1) Documents classified for national security reasons are 
``sensitive'', the only contemplated examples of which relate to the 
reciprocal procurement review with the Northern Pipeline Agency in 
Canada.
    (2) Trade secrets, as explained and defined in Sec. 1504.203(b) for 
this particular context, also come within the ``sensitive'' category.
    (3) Critical procurement information, particularly tentative bids, 
price and

[[Page 840]]

vendor conditions, come within the ``sensitive'' designation.
    (4) The ``sensitive'' category also includes information originally 
received by the submitter under a bona fide secrecy agreement from the 
third party originator of the information.
    (5) There could possibly be other documents received under 
circumstances warranting limited or no distribution. Privileged 
information developed during non-ANGTS litigation, for example, might 
warrant an OFI agreement to resist disclosure. Privacy considerations 
might also be relevant here. Because ``sensitive'' designation of this 
type of information is presently only hypothetical, it will receive no 
elaboration in Sec. 1504.203.
    (b) The ``business'' category entails information either developed 
at a cost and possessing demonstrable market value or the release of 
which may substantially impair the competitive position of the person 
who supplied it, whether an ANGTS sponsor or another. This is basically 
proprietary information, disclosure of which would reduce or eliminate 
its value to the submitter. Unlike ``sensitive'' information, 
``business'' information may, under certain circumstances, be disclosed 
to the public. The OFI will balance the economic impact of disclosure 
against the public interest in access.



Sec. 1504.203  Factors governing designation of information as ``sensitive''.

    (a) National Security. While relatively rare, the first type of 
``sensitive'' information to be protected by the OFI is ``classified'' 
information. Through a formal U.S.-Canadian exchange of diplomatic notes 
establishing reciprocal procedures to administer procurement oversight, 
the OFI is required to maintain the ``confidentiality'' of certain 
information disclosed by the Northern Pipeline Agency. Such information 
would constitute ``foreign government information'' and as such would be 
classified as ``confidential'' under Executive Order 12065. During the 
limited period of the procurement process, while this information 
continues to be ``confidential,'' the OFI will deny public access under 
FOIA exemption (b)(1), that is, information properly classified under 
Executive Order as ``in the interest of national defense or foreign 
policy.'' (See Sec. 1504.317(a)(1) of subpart C of this part).
    (b) Trade Secrets. Trade secrets are the core of the ``sensitive'' 
category:
    (1) The ANGTS sponsors might have to contract for some highly 
specialized, technical, and secret process or mechanism instrumental to 
the design or construction effort.
    (2) Public disclosure of the process itself--as contrasted to what 
was produced by use of the process--would cause the contractor severe 
economic and competitive loss. Disclosure of such trade secrets is not 
in the public interest, for it could both hamper project expedition and 
also escalate construction costs.
    (3) The OFI will resist any FOIA request for such information, as 
well as discourage requests from other agencies or Congressional 
committees, unless adequate protections are provided. FOIA exemption 
b(4)--while broader than just trade secrets--will be employed. (See 
Sec. 1504.317(a)(4) of subpart C of this part). So too, the Trade 
Secrets Act prohibition against unauthorized disclosure applies 
primarily to information like these trade secrets.
    (4) While the term ``trade secret'' has varying connotations 
depending on the legal context, the OFI will use the following criteria 
to discern if information is a trade secret, solely for the purpose of 
bringing it within the ``sensitive'' category:
    (i) The cost of developing the information;
    (ii) The value of the information to the owner and competitor, i.e., 
the extent of the competitive advantage it provides;
    (iii) The extent to which the information is not independently known 
or available to others; and
    (iv) The extent to which the owner has maintained its 
confidentiality.
    (c) Secrecy agreements. The OFI will scrutinize information under 
secrecy agreements from a narrow perspective similar to that employed 
for trade secrets. These secrecy agreements could well be insisted upon 
by the trade secret owner contracting with the ANGTS sponsor. The OFI 
will closely review such secrecy agreements to assure that they are:

[[Page 841]]

    (1) Necessary, in terms of the sponsor being able to gain possession 
of the information on reasonable conditions;
    (2) Enforceable against the submitter, i.e., through civil damages; 
and
    (3) Not formed to circumvent the OFI's regulations limiting special 
treatment for ``sensitive'' information.
    (d) Critical Procurement. Critical procurement information will be 
protected through the FOIA (b)(4) exemption, and includes primarily 
tentative bids (price vendor, and conditions), disclosure of which 
before completion of the process could skew the procurement, leading to 
delay and/or cost escalation. Critical procurement information of the 
ANGTS sponsors will also retain the ``sensitive'' designation subsequent 
to the award of a contract.



Sec. 1504.204  Factors governing designation of information as ``business''.

    (a) Proprietary nature. ``Business'' information is proprietary, 
commercial or financial information, the release of which may 
substantially impair the competitive position of the person who supplied 
it, whether an ANGTS sponsor or another. In the majority of cases, the 
ANGTS sponsor will incur substantial costs to develop or purchase 
numerous studies, plans, designs, methods, systems, etc., associated 
with project completion. While not ``sensitive'' information, these 
documents nonetheless possess some value; that is, the sponsors might at 
some time find a willing buyer for the information.
    (b) Treatment. ``Business'' information generally comes within FOIA 
exemption b(4), but the OFI is not committed necessarily to resisting 
its public disclosure. Instead, the OFI will balance the economic harm 
of disclosure against the public interest supporting the access request. 
In so doing, the OFI will first notify the submitter of ``business'' 
information that a request for access has been made or that the OFI on 
its own initiative intends to disclose it, as detailed in Sec. 1504.208. 
The submitter will then have the burden of proving to the OFI that the 
requested information is truly valuable and that disclosure will reduce 
or eliminate that value.
    (c) Factors against disclosure. While OFI disclosure of such 
information would not, strictly speaking, impair competitive position, 
it might reduce or eliminate the potential for revenues from a future 
sale. Beside this general economic impact, the OFI will consider the 
following ANGTS-specific factors militating against disclosure:
    (1) For ``business'' information merely held by an ANGTS sponsor but 
owned by a third party, such as procurement-related information of a 
prospective vendor or contractor, public disclosure might be shown to 
impair the sponsor's ability to procure future goods and services at a 
reasonable price.
    (2) To the extent that ``business'' information is utilized by the 
sponsors for ANGTS construction, the associated costs will be 
capitalized for rate base inclusion. As such, the consumers of Alaskan 
gas will pay for such ``business'' information. The revenues from any 
subsequent sale of this ``business'' information should be used as a 
credit to rate base, thereby benefitting the gas consumer, who has been 
paying for such information. Therefore, when ruling on requests for 
public disclosure of the sponsors' ``business'' information, the OFI 
will consider, on the one hand, the likelihood and magnitude of future 
gas consumer rate reduction if access is denied and, on the other hand, 
the purpose to be served if access is granted.
    (3) While the OFI's authority to gather information is expansive 
(see subpart A of this part), public disclosure of certain types of 
``business'' information might increase submitter resistance and thereby 
increase the OFI's need to use compulsory rather than voluntary process 
for subsequent information gathering. This eventuality could impair the 
OFI's ability to expedite ANGTS construction, something which the OFI 
would try to avoid.
    (d) Factors favoring disclosure. (1) Disclosure is the statutory 
preference under FOIA.
    (2) For ``business'' information related to its overall role of 
administering the equal opportunity program for ANGTS preconstuction and 
construction (see 43 CFR part 34 and 10 CFR

[[Page 842]]

part 1534), the OFI will accord the maximum public access permitted 
within relevant legal parameters, as described in this subpart.



Sec. 1504.205  Procedures to designate information as ``sensitive''.

    (a) Any person, who has been requested by the OFI to provide 
information, including computerized data, which that person believes to 
be ``sensitive,'' must so designate the information on its face and also 
submit, simultaneously with the information, a petition justifying that 
``sensitive'' designation.
    (b) A petition for ``sensitive'' designation must contain the 
following:
    (1) A thorough statement (including documentary support and sworn 
affidavits if appropriate) explaining why the information is 
``sensitive,'' pursuant to the criteria set forth in Secs. 1504.202 and 
1504.203;
    (2) When appropriate, the length of time and the circumstances under 
which the information should remain designated ``sensitive''; and
    (3) The name and address by which the petitioner can promptly be 
reached by the OFI (through letter or telegram) concerning the 
petitioned-for designation.
    (c) Upon receipt of the petition, the OFI General Counsel or 
designee will determine whether the information will be designated as 
``sensitive.''
    (1) The General Counsel or designee will make this determination as 
soon after receipt of the petition as is practicable, but in the interim 
the petitioner may not assume that the petition has been approved.
    (2) The General Counsel or designee will notify the petitioner of 
one of the three following determinations:
    (i) The information is designated as ``sensitive'' and thus will be 
protected from public disclosure under all circumstances, as per 
Sec. 1504.206;
    (ii) The information is not designated as ``sensitive,'' in which 
case the petitioner may, where appropriate, consider petitioning the OFI 
for a ``business'' designation, as per Sec. 1504.207; or
    (iii) The petition is inadequate for making a final determination, 
in which case the petitioner will have five calendar days from receipt 
of the determination in which to cure the petition.



Sec. 1504.206  Treatment of ``sensitive'' information.

    (a) For information designated by the OFI as ``sensitive,'' under 
Sec. 1504.205(c)(2)(A), the OFI will take the following internal steps:
    (1) The designated information will be officially stamped on its 
face as ``sensitive,'' with the notations that public disclosure is 
prohibited; that the OFI General Counsel must first approve disclosure 
within the Government; and that internal distribution and copying is 
also prohibited unless approved by the OFI Security Officer. The 
``sensitive'' designation will remain unless the General Counsel 
determines that changed circumstances make it necessary to remove such a 
designation, in which case the submitter will be so notified 
immediately.
    (2) The OFI will impose stringent internal control procedures for 
the designated information, including special locked storage facilities, 
an assigned custodian, and a system of written logs to assure limitation 
on distribution and copying.
    (b) When a request for public disclosure of the designated 
information is received, the OFI Freedom of Information Officer will so 
notify the original submitter of the ``sensitive'' information.
    (c) Any information designated ``sensitive,'' which is released 
pursuant to either a joint federal/state agreement or any other 
arrangement, shall not be released to the public by the State or any 
other entity receiving it.
    (d) To the extent that a state agency or any other respective entity 
does not agree in advance to Sec. 1504.206(c), the OFI will not release 
such information to it.
    (e) If the OFI subsequently encounters difficulties in resisting 
public disclosure of ``sensitive'' information, the OFI General Counsel 
or designee will so notify the original submitter, affording an 
opportunity for the submitter to take whatever supplemental legal action 
it deems appropriate to assist the OFI in resisting disclosure.

[[Page 843]]



Sec. 1504.207  Procedures to designate information as ``business''.

    (a) Any person, who has been requested by the OFI to provide 
information, including computerized data, which that person believes to 
be ``business,'' must so designate the information on its face and also 
submit, simultaneously with the information, a petition justifying that 
``business'' designation.
    (b) A petition for ``business'' designation must contain the 
following:
    (1) A concise statement explaining why the information is 
``business,'' pursuant to the criteria set forth in Sec. 1504.204 of 
this part, including particular analysis of the factors for and against 
disclosure;
    (2) When appropriate, the length of time and the circumstances under 
which the information should remain designated ``business''; and
    (3) The name and address of a responsible person, who can speak for 
the petitioner and who can promptly be reached by the OFI (through 
letter or telegram) concerning the petitioned-for designation.
    (c) Upon receipt of the petition, the OFI General Counsel will 
briefly review the matter and reject petitions which are patently 
inadequate. This brief review, however, does not constitute final action 
on the petition. Until the petition is formally considered (see 
Sec. 1504.208 of this part) by the OFI, the petitioner may not assume 
that the petition has been approved.



Sec. 1504.208  Treatment of ``business'' information.

    (a) For information petitioned to be designated as ``business,'' for 
which the petition has not been rejected as patently inadequate under 
Sec. 1504.207(c), the OFI will stamp `` `business' petition pending,'' 
with the notation that public disclosure is not allowed without prior 
official OFI approval pursuant to this section, whether in the case of 
FOIA requests or disclosure at the OFI employee's own initiative. 
Otherwise, the OFI will impose no special procedures for internal 
control.
    (b) When a request for public disclosure of the information stamped 
``business'' is received or when the OFI on its own initiative intends 
to make pubic disclosure, the OFI Freedom of Information Officer will so 
notify the original submitter of the information, giving the submitter 
up to five days to supplement the original petition for ``business'' 
designation, first filed pursuant to Sec. 1504.207(a). This 
supplementation may be accompanied by a sworn affidavit if appropriate 
and should include the following:
    (1) Statement of any change in facts since the petition was first 
filed (including whether the petition has become unnecessary);
    (2) Detailed explanation of the market value of the information at 
issue and why disclosure would reduce or eliminate that value; and
    (3) Suggested ways to minimize economic harm from disclosure while 
still affording public access, such as isolating the specific portions 
of documents warranting special treatment.
    (c) As part of the OFI initial determination on any FOIA request for 
stamped information (under Secs. 1504.309 and 1504.312 of subpart C) or 
as part of an independent OFI decision to disclose that stamped 
information to the public, the OFI General Counsel or designee will make 
one of the following decisions on the pending petition for ``business'' 
designation:
    (1) The information is not ``business'' within the meaning of 
Sec. 1504.204(a), and the petition is therefore denied. If there is no 
other reason to withhold public disclosure, the OFI Freedom of 
Information Office will then grant the FOIA request.
    (2) The information is ``business'' within the meaning of 
Sec. 1504.204(a). The petition is therefore granted and the information 
is designated as ``business.'' However, when balancing the competing 
factors as to disclosure under Sec. 1504.204(b) through (d), the public 
interest favors disclosure. Thus, the OFI Freedom of Information Office 
will then grant the FOIA request.
    (3) The information is ``business'' within the meaning of 
Sec. 1504.204(a). The petition is therefore granted, and the information 
is designated as ``business.'' When balancing the competing factors as 
to disclosure under Sec. 1504.204(b) through (d) the public interest is 
against disclosure. Thus, the OFI Freedom of Information Officer

[[Page 844]]

will then deny the FOIA request as per Sec. 1504.312 of subpart C, 
subject to the petitioner's ongoing assistance to the OFI in defense of 
any proceeding that might thereafter be brought to compel the OFI to 
disclose the ``business'' information.
    (d) Any information designated `` `business' petition pending,'' 
which is released pursuant to a joint federal/state agreement or any 
other arrangement, shall not be released to the public by the State or 
any other entity receiving it unless the OFI General Counsel has made a 
determination otherwise.
    (e) To the extent that a state agency or any other entity does not 
agree in advance to Sec. 1504.208(d), the OFI will not release such 
information to it.
    (f) The OFI Freedom of Information Officer will immediately advise 
the petitioner (submitter of the information at issue) of:
    (1) The determinations made pursuant to either Sec. 1504.208(c)(1) 
or (c)(2); and
    (2) The fact that the information at issue will be publicly 
disclosed ten calendar days after the determination.



               Subpart C--Public Requests for Information



Sec. 1504.301  Purpose and scope.

    (a) This subpart describes the procedures by which records may be 
obtained from the Office of the Federal Inspector for the Alaska Natural 
Gas Transportation System (OFI), in accord with the Freedom of 
Information Act, 5 U.S.C. 552. That provision of law requires that this 
agency, ``upon any request (other than that made by another Federal 
agency) for records which (1) reasonably describes such records, and (2) 
is made in accordance with published rules stating the time, place, fees 
(if any), and procedures to be followed, shall make the records promptly 
available to any person.''
    (b) The procedures in this subpart do not apply to requests for 
records published in the Federal Register, for materials which are 
legally owned by OFI employees in their personal capacity, and for 
materials which are readily available to the public, such as books, 
journals, perodicals and other copyrighted materials available through 
reference libraries, even if such materials are in OFI's possession.



Sec. 1504.302  Policy on disclosure of OFI records.

    (a) The OFI will make records available to the public, to the 
greatest extent possible in keeping with:
    (1) The spirit of the Freedom of Information Act;
    (2) The rights of individuals to privacy;
    (3) The designation of any document as ``sensitive'' and 
``business'' information which the OFI will give special treatment 
(pursuant to subpart B of this part); and
    (4) The need to promote frank internal policy deliberations and to 
pursue official activities without undue disruption.
    (b) All OFI records shall be available to the public upon request, 
unless disclosure is prohibited by court order, Executive Order, 
statute, provision of this subsection, or an exemption under the Freedom 
of Information Act.



Sec. 1504.303  Partial disclosure of records.

    If a requested record contains both exempt and nonexempt material, 
the nonexempt material shall be disclosed after the exempt material has 
been deleted.



Sec. 1504.304  Existing records.

    (a) The Freedom of Information Act does not require the creation of 
new records in response to a request, nor does it require the OFI to 
place a requestor's name on a distribution list for automatic receipt of 
certain kinds of records as they come into existence. Instead, it 
establishes requirements for disclosure of existing records.
    (b) All existing OFI records are subject to routine destruction 
according to standard record retention schedules.



Sec. 1504.305  Where and to whom requests for OFI records should be sent.

    (a) Although OFI records may be located in one or more of the OFI's 
branch offices, all requests for OFI records should be sent to OFI 
Headquarters, addressed to: Office of the

[[Page 845]]

Federal Inspector, Alaska Natural Gas Transportation System Freedom of 
Information Officer Room 3413, Post Office Building 12th and 
Pennsylvania Avenue, N.W. Washington, D.C. 20044
    (b) To the extent that a request is received by a branch office of 
the OFI, the request will not be deemed received by the OFI until 
received at OFI headquarters, following transmission by the branch 
office.



Sec. 1504.306  Form of request.

    A request shall be made in writing and shall reasonably describe the 
records sought in a way that will permit their identification and 
location. If such information is available, the request should identify 
the subject matter of the records, the date when it was made, the 
person(s) or the office which made the records, the present custodian of 
the records, and any other information which will assist in the location 
of the requested records.



Sec. 1504.307  Requests which do not reasonably describe records sought.

    (a) If the description of the records sought in the request is not 
sufficient to allow the OFI to identify and locate the requested 
records, the OFI will notify the requestor that the request cannot be 
processed further until additional information is furnished.
    (b) The OFI will make reasonable effort to assist in the 
identification and description of records sought and to assist the 
requestor in formulating his request.
    (c) If a request is described in general terms (e.g., all records 
having to do with a certain area), the OFI may communicate with the 
requestor with a view towards reducing the administrative burden of 
processing a broad request and minimizing the fees payable by the 
requestor.



Sec. 1504.308  Responsibilities of Freedom of Information Officer.

    (a) Upon receipt of a written request, the Freedom of Information 
Officer shall mark the request with the date of receipt, indicate the 
date by which a response is due, and note any other pertinent 
administrative information. The Freedom of Information Officer shall 
monitor the handling of the initial request and any appeals to ensure a 
timely response.
    (b) The Freedom of Information Officer shall maintain a file 
concerning each initial request and any appeals received. This file 
shall contain a copy of the request, initial and appeal determinations, 
and other pertinent correspondence and records.
    (c) The Freedom of Information Officer shall collect and maintain 
the information necessary to compile the reports required by 5 U.S.C. 
552(d).



Sec. 1504.309  Time allowed for issuance of initial determination.

    (a) Except as otherwise provided in this section, the Freedom of 
Information Officer shall not later than the tenth working day after the 
date of receipt of a request for records, issue a written determination 
to the requestor, stating:
    (1) Which of the requested records will, and which will not, be 
released; and
    (2) The reason for any denial of a request.
    (b) The period of 10 working days shall be measured from the date 
the request is first received, pursuant to Sec. 1504.305 of this part.
    (c) There shall be excluded from the period of 10 working days (or 
any extension thereof) any time which elapses between the date when a 
requestor is notified by the OFI that his request does not reasonably 
identify the records sought and the date when the requestor furnishes a 
reasonable identification.
    (d) There shall also be excluded from the period of 10 working days 
(or any extension thereof) any time which elapses between the date when 
a requestor is notified by the OFI that prepayment of fees is required 
and the date when the requestor pays, or makes suitable arrangements to 
pay such charges. See Sec. 1504.318(c).
    (e) The OFI may extend the basic 10-day period established under 
Sec. 1504.309(a) by a period not to exceed 10 additional working days by 
furnishing written notice to the requestor, within the basic 10-day 
period, stating the reasons for such extension and the date by which the 
OFI expects to be able to issue a determination. The period may

[[Page 846]]

be so extended only when absolutely necessary, only for the period 
required, and only when one or more of the following circumstances 
require the extension:
    (1) There is a need to search for and collect the requested records 
from field facilities;
    (2) There is a need to search for, collect, and appropriately 
examine a voluminous amount of separate and distinct records which are 
demanded in a single request; or
    (3) There is a need for consultation, which shall be conducted with 
all practicable speed, with another agency having a substantial interest 
in the determination of the request (or among two or more components of 
the OFI).
    (f) Failure of the OFI to issue a determination within the 10-day 
period (together with any authorized extensions) shall constitute final 
agency action, which authorizes the requestor to commence an action in 
an appropriate Federal District Court to obtain the records.



Sec. 1504.310  Records of other Federal agencies.

    (a) If the release of a record would be of concern to both the OFI 
and another Federal agency, the record will be made available by the OFI 
only if the interest of OFI is the primary interest. The OFI has the 
primary interest in a record if it was developed pursuant to OFI 
regulations, directives, or request, even though the record originated 
outside the OFI.
    (b) If the OFI does not have primary interest in the records, the 
request shall be referred in writing to the agency having the primary 
interest and the requestor will be so notified.



Sec. 1504.311  Records obtained from the public; notice to the donor.

    (a) If a requested record was obtained by the OFI from a person or 
entity outside the Government, the OFI official responsible for 
processing the request shall, before making a decision on the request 
and when it is administratively feasible to do so, seek the views of 
that person or entity in writing on whether the record should be 
released.
    (b) For ``sensitive'' or ``business'' information, notice to the 
entity providing the information is required and governed by subpart B 
of this part.



Sec. 1504.312  Initial denial of a request.

    (a) An initial denial of a request may be issued only for one or 
more of the following reasons:
    (1) The record requested is not known to exist;
    (2) The record is not in the OFI's possession;
    (3) A statutory provision, a provision of this part, a court order, 
or an Executive Order requires that the information not be disclosed;
    (4) The record is exempt from mandatory disclosure under 5 U.S.C. 
552(b), and the OFI has decided that the public interest would not be 
served by disclosure; or
    (5) The record is believed to exist in OFI's possession but has not 
yet been located (see Sec. 1504.312(e)).
    (b) Each initial determination to deny a request shall be written, 
signed, and dated, and it shall state the basis for denial of a record 
or any part of a record.
    (c) The written denial of a request shall include the name and title 
of the person(s) participating in a decision to deny that request.
    (d) The denial shall state the administrative procedure for 
appealing a determination against releasing any record or part of a 
record.
    (e) When a request must be denied because the record has not yet 
been located (although it is believed to exist in OFI's possession), the 
OFI office responsible for maintaining the record shall both continue to 
search diligently (until it is located or it appears that the record 
does not exist or is not in OFI's possession), and also periodically 
inform the requestor of the office's progress.



Sec. 1504.313  Appeal from an initial denial.

    (a) Any person whose request has been denied in whole or in part by 
an initial determination may appeal that denial by addressing a written 
appeal to the address shown in Sec. 1504.305.
    (b) An appeal should be mailed no later than 30 calendar days after 
the date the requestor received the initial determination denying the 
request. An

[[Page 847]]

untimely appeal may be treated either as a timely appeal or as a new 
request, at the option of the Freedom of Information Officer.
    (c) The appeal letter shall contain the date of the initial 
determination, and the name and address of the person who issued the 
initial denial. The appeal letter shall also indicate which of the 
records, to which access was denied, are the subject of the appeal.



Sec. 1504.314  Appeal determination.

    (a) The Federal Inspector will make one of the following legal 
determinations in connection with every appeal from the initial denial 
of a request for an existing, located record:
    (1) The record must be disclosed;
    (2) The record must not be disclosed, because a statute or a 
provision of this part so requires; or
    (3) The record is exempt from mandatory disclosure but legally may 
be disclosed as a matter of OFI discretion.
    (b) The Federal Inspector may decide to delegate his authority over 
the appeal process.



Sec. 1504.315  Contents of determination denying appeal.

    A determination denying an appeal from an initial denial shall 
contain the following:
    (a) It shall be in writing;
    (b) It shall state which of the exemptions in 5 U.S.C. 552(b) apply 
to each requested existing record;
    (c) It shall state the reason(s) for denial of the appeal;
    (d) It shall also state the name and position of the OFI officer or 
employee who made the decision that the appeal be denied; and
    (e) It shall further state that the person whose request was denied 
may obtain judicial review of the denial by complaint filed with the 
District Court of the United States in the District in which the 
complainant resides, in which the OFI records are situated, or in the 
District of Columbia, pursuant to 5 U.S.C. 552(a)(4).



Sec. 1504.316  Time allowed for issuance of appeal determination.

    (a) Except as otherwise provided in this section, the Federal 
Inspector shall--no later than the twentieth working day after the date 
of receipt by the Freedom of Information Officer at OFI Headquarters of 
an appeal from an initial denial of a request for records--issue a 
written determination stating which of the requested records (as to 
which an appeal was made) shall be disclosed and which shall not be 
disclosed.
    (b) The period of 20 working days shall be measured from the date 
when an appeal is first received by the Freedom of Information Officer 
at OFI Headquarters.
    (c) The Federal Inspector may extend the basic 20-day period 
established under Sec. 1504.316(a) by a period not to exceed 10 
additional working days, by furnishing written notice to the requestor 
within the basic 20-day period, stating the reasons for such extension 
and the date by which the Federal Inspector expects to be able to issue 
a determination. The period may be so extended only when absolutely 
necessary, only for the period required, and only when one or more of 
the following circumstances require the extension:
    (1) There is a need to search for and collect the records from field 
facilities or other establishments that are separate from the office 
processing the appeal;
    (2) There is a need to search for, collect, and appropriately 
examine a voluminous amount of separate and distinct records which are 
demanded in a single request; or
    (3) There is a need for consultation, which shall be conducted with 
all practicable speed, with another agency having a substantial interest 
in the determination of the request, or among two or more components of 
the OFI.



Sec. 1504.317  Exemption categories.

    (a) 5 U.S.C. 552(b) establishes nine exclusive categories of matters 
which are exempt from the mandatory disclosure requirements of 5 U.S.C. 
552(a). No request under 5 U.S.C. 552 for an existing, located record in 
the OFI's possession shall be denied by any OFI office or employee, 
unless the record contains (or its disclosure would reveal) matters 
which are:
    (1) Specifically authorized under criteria established by an 
Executive Order

[[Page 848]]

to be kept secret in the interest of national defense or foreign policy 
and are in fact properly classified pursuant to such Executive Order 
(See subpart B or this part);
    (2) Related solely to the internal personnel rules and practices of 
an agency;
    (3) Specifically exempted from disclosure by statute, other than 5 
U.S.C. 552(b): Provided, that such statute (i) requires that the matters 
be withheld from the public in such a manner as to leave no discretion 
on the issue, or (ii) establishes particular criteria for withholding or 
refers to particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential (See subpart B of this 
part);
    (5) Interagency or intra-agency memoranda or letters which would not 
be available by law to a party, other than an agency, in litigation with 
the agency;
    (6) Personnel and medical files and similar files, the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Investigatory records compiled for law enforcement purposes, but 
only to the extent that the production of such records would:
    (i) Interfere with enforcement proceedings,
    (ii) Deprive a person of a right to a fair trial or an impartial 
adjudication,
    (iii) Constitute an unwarranted invasion of personal privacy,
    (iv) Disclose the identity of a confidential source and, in the case 
of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation, confidential information 
furnished only by the confidential source,
    (v) Disclose investigative techniques and procedures, or
    (vi) Endanger the life or physical safety of law enforcement 
personnel;
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (b) The fact that the applicability of an exemption permits the 
withholding of a requested record (or portion thereof) does not 
necessarily mean that the record must or should be withheld.



Sec. 1504.318  Fees; payment; waiver.

    (a) Fee schedule. Fees will be charged requestors for searching for 
and reproducing requested records, in accordance with the following 
schedule: Record search time (OFI employees), $5.00 per half hour; 
computer programming time (OFI employees), $16.00 per half hour; 
reproduction of documents (paper copy of original), $0.20 per page; and 
other costs of searching for or duplicating records (including such 
items as: computer system time; contractor computer programming time; 
reproduction of photographs, microforms, or magnetic tape; computer 
printouts; and transportation of records), actual direct cost to the 
OFI.
    (b) Method of payment. All fee payments shall be in the form of a 
check or money order payable to the order of the ``U.S. Treasury'' and 
shall be addressed to: Office of the Federal Inspector, Alaska Natural 
Gas Transportation System, Division of Financial Management, Room 1409, 
Post Office Building, 12th & Pennsylvania Ave. NW., Washington, D.C. 
20044.
    (c) Prepayment or assurance of payment. If the OFI determines or 
estimates that the unpaid fees attributable to one or more requests by 
the same requestor exceed or will exceed $25.00, OFI need not search 
for, duplicate, or disclose records in response to any request by that 
requestor until the requestor pays, or makes acceptable arrangements to 
pay, the total amount of fees due (or estimated to become due) under 
this section. (See Sec. 1504.309(d)). In such a case, the OFI office 
shall promptly inform the requestor (by telephone, if practicable) of 
the need to make payment or arrangements to pay.
    (d) Reduction or waiver of fee. The fee chargeable under this 
section may be reduced or waived by the OFI, if the public interest 
would be served. A request for reduction or waiver of fees

[[Page 849]]

should be addressed to the OFI Freedom of Information Officer.
    (e) The OFI Freedom of Information Officer shall maintain a record 
of all fees charged requestors for searching for and reproducing 
requested records under this section. If, after the end of 60 calendar 
days from the date on which request for payment was made, the requestor 
has not submitted payment to the OFI Freedom of Information Officer, the 
Freedom of Information Officer shall place the requestor's name on a 
delinquent list. If a requestor whose name appears on the delinquent 
list makes another request under this part, the OFI Freedom of 
Information Officer shall inform the requestor that the OFI will not 
process the request until the requestor submits payment of the overdue 
fee from the earlier request and prepayment of the fee for the current 
request may be required.



PART 1506--EMPLOYEE STANDARDS OF CONDUCT--Table of Contents




  Subpart A--General Provisions; Notice to Employees; Advisory Service

Sec.
1506.101  Purpose.
1506.102  Authority.
1503.103  Definitions.
1506.104  Coverage.
1506.105  Notice to employees.
1506.106  Interpretation and advisory service.

                Subpart B--Rules of Conduct for Employees

1506.201  Generally prohibited conduct.
1506.202  Acceptance and solicitation of gifts, entertainment, and 
          favors.
1506.203  Acceptance of reimbursement for official travel.
1506.204  OFI's reimbursement of project sponsors for logistical 
          support.
1506.205  Outside employment.
1506.206  Acceptance of honoraria.
1506.207  Prohibited financial interests.
1506.208  Use of Government property.
1506.209  Misuse of information.
1506.210  Indebtedness.
1506.211  Gambling, betting, and lotteries.
1506.212  General conduct prejudicial to the Government.
1506.213  Miscellaneous statutory provisions.

    Subpart C--Public Financial Disclosure Requirements for Employees

1506.301  Employees subject to public financial disclosure requirements.
1506.302  When to file 278 form.
1506.303  Where to file 278 form.
1506.304  Procedure for completing 278 forms.
1506.305  Special rules for completing 278 forms.
1506.306  Special rules for reporting trust interests and assets.
1506.307  Custody of completed 278 forms.
1506.308  Public access to completed 278 forms.
1506.309  Review of completed 278 forms and remedial action.
1506.310  Procedure after review of additional information.
1506.311  Procedure upon employee's refusal to comply.
1506.312  Advisory opinions and situation lists.
1506.313  Penalties for failure to file or falsifying 278 forms.
1506.314  Penalties for non-compliance with the special filing 
          requirements for qualified trusts.

      Subpart D--Confidential Disclosure Requirements for Employees

1506.401  Employees required to submit confidential statements of 
          employment and financial interests.
1506.402  Time and place for submission of confidential statements.
1506.403  Supplementary statements.
1506.404  Interests of employee's relatives.
1506.405  Information not known by employees.
1506.406  Information not required.
1506.407  Confidential custody of reports.
1506.408  Employee's complaint on filing.
1506.409  Review of reports and remedial action.
1506.410  Procedure after review of additional information.
1506.411  Procedure upon employee's refusal to comply.

      Subpart E--Rules of Conduct for Special Government Employees

1506.501  Applicability.
1506.502  Use of Government employment.
1506.503  Use of inside information.
1506.504  Coercion.
1506.505  Acceptance and solicitation of gifts, entertainment, and 
          favors.
1506.506  Prohibited financial interests.
1506.507  Miscellaneous statutory provisions.

[[Page 850]]

    Subpart F--Public Financial Disclosure Requirements for Special 
                          Government Employees

1506.601  Special Government employees subject to public financial 
          disclosure requirements.
1506.602  Applicability of subpart C to special Government employees.
1506.603  Exception for special Government employees who are employed 
          for less than sixty days.
1506.604  Special waiver of public disclosure requirement for special 
          Government employees.

   Subpart G--Confidential Disclosure by Special Government Employees

1506.701  Special Government employees required to submit confidential 
          statements of employment and financial interests.
1506.702  Time and place for submission of confidential statements.
1506.703  Custody and review of confidential statements; remedial 
          action.

    Authority: E.O. 11222, 3 CFR, 1964-1965 Comp., p. 306; E.O. 12142, 
44 FR 36927; 5 CFR 735.104; Pub. L. 95-521, as amended by Pub. L. 96-19 
(2 U.S.C. 701, 5 U.S.C. Appendix 201, 28 U.S.C. Appendix 301).

    Source: 45 FR 60371, Sept. 11, 1980, unless otherwise noted.



  Subpart A--General Provisions; Notice to Employees; Advisory Service



Sec. 1506.101  Purpose.

    It is the purpose of these regulations to set high ethical standards 
of conduct for employees of the Office of the Federal Inspector (OFI). 
The OFI is a unique agency in a number of conduct-related ways, stemming 
mainly from its character as a project-specific agency. The OFI is 
charged with expediting the regulatory processes involved in the 
construction of a single pipeline system designed to transport Alaska 
Natural Gas to the contiguous states. Thus, OFI employees deal closely 
with the sponsors of, and governmental bodies involved in, just one 
project. On the first anniversary of the completion of the project, the 
OFI will cease to exist. These regulations reflect the unique charter of 
this project-specific agency.



Sec. 1506.102  Authority.

    These regulations are promulgated pursuant to Executive Orders 
11222, 11590 and 12142, to section 7(a)(5) of the Alaska Natural Gas 
Transportation Act, to the Ethics in Government Act of 1978, and to 
implementing regulations of the Office of Government Ethics (OGE).



Sec. 1506.103  Definitions.

    In these regulations:
    (a) Employee means an officer or employee of the Office of the 
Federal Inspector for the Alaska Natural Gas Transportation System.
    (b) Honorarium means a payment of money or anything of value 
received by an officer or employee of the Federal Government, if 
accepted as consideration or as a fee for an appearance, speech, or 
article.
    (c) Person means an individual, a corporation, a company, an 
association, a firm, a partnership, a society, a joint stock company, or 
any other group, organization or institution.
    (d) Special Government employee means an officer or employee of the 
OFI who is retained, designated, appointed, or employed to perform, with 
or without compensation, for not to exceed 130 days during any period of 
365 consecutive days, temporary duties either on a full-time or 
intermittent basis.
    (e) Project sponsor means one of the persons designated to construct 
and operate a portion of the Alaska Natural Gas Transportation system.
    (f) Logistics agreement means an agreement negotiated with a project 
sponsor governing the provision to OFI field employees of food, lodging, 
transportation, and medical and office facilities by the project 
sponsor. Logistics agreements are entered into because of the scarcity 
of such facilities in remote areas along the project route.



Sec. 1506.104  Coverage.

    (a) The provisions of subpart A of this part apply to all regular 
employees and all special Government employees.
    (b) The provisions of subpart B of this part apply to all regular 
employees.

[[Page 851]]

    (c) The provisions of subpart C of this part apply to all senior 
Executive Service employees, both special and regular, and to the 
Federal Inspector.
    (d) The provisions of subpart D of this part apply to those regular 
employees who meet the criteria set forth in the first section of that 
subpart, Sec. 1506.401.
    (e) The provisions of subpart E of this part apply to all special 
Government employees.
    (f) The provisions of subpart F of this part apply to special 
Government employees who are paid at a rate equivalent to GS-16 or 
above.
    (g) The provisions of subpart G of this part apply to those special 
Government employees who meet the criteria set forth in the first 
section of that subpart, Sec. 1506.701.



Sec. 1506.105  Notice to employees.

    (a) Each employee and special Government employee shall be furnished 
a copy of these regulations within 90 days of their effective date.
    (b) Each new employee and special Government employee shall be 
furnished a copy of these regulations at the time of his or her entrance 
on duty.
    (c) Thereafter, each employee and special Government employee shall 
be reminded of these regulations once a year and shall be informed on a 
timely basis of any changes in these regulations.
    (d) The agency ethics officers shall have copies of all pertinent 
laws, executive orders, OFI regulations and OGE regulations available 
for review by employees and special Government employees.



Sec. 1506.106  Interpretation and advisory service.

    (a) There shall be an advisory service which will furnish 
interpretations and advice to employees and to special Government 
employees on questions which they may have concerning these regulations.
    (b) The General Counsel of the OFI shall be the Designated Agency 
Ethics Officer (ethics officer). The ethics officer shall coordinate the 
agency's counseling and interpretation services and serve as the OFI 
designee to the OGE on appropriate matters.
    (c) The Federal Inspector and the General Counsel shall appoint such 
deputy ethics officers as they deem necessary.
    (d) Each employee and special Government employee shall be informed 
of the availability of the advisory service within 90 days after these 
regulations become effective. New employees, both special and regular, 
shall be informed about this service upon entrance on duty.
    (e) Any employee or special Government employee who has a question 
about the application of these regulations has a duty to consult the 
ethics officer or deputy officer concerning the question.



                Subpart B--Rules of Conduct for Employees



Sec. 1506.201  Generally prohibited conduct.

    An employee shall avoid any action which might result in or create 
the appearance of:
    (a) Using public office for private gain;
    (b) Giving preferential treatment to any person;
    (c) Impeding Government efficiency or economy;
    (d) Losing complete independence or impartiality;
    (e) Making a Government decision outside official channels; or
    (f) Affecting adversely the confidence of the public in the 
integrity of the Government.



Sec. 1506.202  Acceptance and solicitation of gifts, entertainment, and favors.

    (a) Apart from the exceptions listed in paragraph (b) of this 
section, an employee shall neither solicit nor accept any gift, 
gratuity, favor, entertainment, loan, or any thing of monetary value 
from a person who:
    (1) Has, or is seeking to obtain, contractual business or financial 
relations with the OFI;
    (2) Is regulated by the OFI; or
    (3) Has interests that may be substantially affected by the 
performance of the employee's official duty.
    (b) Exceptions to the prohibitions of paragraph (a) of this section 
are:

[[Page 852]]

    (1) An employee may accept food and refreshments of nominal value on 
infrequent occasions in the ordinary course of a luncheon or dinner 
meeting when, and only when, it is impracticable to pay for the food or 
refreshments, and
    (2) An employee may accept unsolicited promotional materials, such 
as pens, pencils, note pads, and calendars which are of nominal value.
    (c) An employee shall not solicit a contribution from another 
employee for a gift to an official superior, make a donation as a gift 
to an official superior, or accept a gift from an employee receiving 
less pay than himself. However, this paragraph does not prohibit a 
voluntary gift of nominal value on a special occasion such as marriage, 
illness, or retirement.
    (d) An employee shall not accept a gift, present, decoration, or 
other thing from a foreign government unless authorized by Congress, as 
provided in 5 U.S.C. 7342. A copy of 5 U.S.C. 7342 may be obtained from 
the ethics officer or his deputy. Employees who are contemplating 
acceptance of a gift from a foreign government should familiarize 
themselves with this provision of law.



Sec. 1506.203  Acceptance of reimbursement for official travel.

    (a) Subject to the exceptions listed in paragraph (b) of this 
section, an employee may be reimbursed for his official travel expenses 
only by the OFI.
    (b) There are the following statutory exceptions to paragraph (a) of 
this section:
    (1) Contributions and awards incident to training in non-Government 
facilities, and payment of travel, subsistence, and other expenses 
incident to attendance at meetings, may be made to and accepted by an 
employee, without regard to section 209 of title 18, if the 
contributions, awards, and payments are made by an organization 
determined by the Secretary of the Treasury to be an organization 
described by section 501(c)(3) of title 26 which is exempt from taxation 
under section 501(a) of title 26. (5 U.S.C. 4111).
    (2) An employee may accept reimbursement of expenses related to 
being detailed to State and local governments or to universities (5 
U.S.C. 3371).
    (3) If and when the Secretary of State assigns an employee to a 
foreign government, the employee may accept, with the approval of the 
OFI, reimbursement for his or her pay and allowances (22 U.S.C. 1451).
    (4) If and when an employee is detailed to a public international 
organization in which the United States participates, the OFI may accept 
reimbursement for the detailed employee's pay, travel expenses, and 
allowances (5 U.S.C. 3343).



Sec. 1506.204  OFI's reimbursement of project sponsors for logistical support.

    (a) Because of the limited travel, lodging, medical, and office 
facilities along the route of the project in Alaska, employees in the 
field will be relying upon the logistical support of the project 
sponsor. Normally, all logistical support provided by the project 
sponsor will be provided in accordance with the ``logistics support 
agreement'' between the sponsor and the OFI. Under the terms of this 
agreement, OFI will reimburse the sponsor for this support.
    (b) If it is necessary for an employee to rely upon logistic support 
of the sponsor or other person which is not within the scope of the 
``logistics support agreement,'' the employee shall notify the ethics 
officer or the Federal Inspector as soon as practicable.
    (c) The employee may accept the logistics support which is beyond 
the scope of the ``logistics support agreement'' only if the Federal 
Inspector determines that such acceptance facilitates the conduct of 
official business and is in the best interest of the Government.



Sec. 1506.205  Outside employment.

    (a) An employee shall not engage in outside employment or other 
outside activity which is incompatible with the full and proper 
discharge of the duties and responsibilities of his or her Government 
employment. Incompatible activities include but are not limited to:
    (1) Acceptance of a fee, compensation, gift, payment of expense, or 
any other thing of monetary value in circumstances in which acceptance 
may

[[Page 853]]

result in, or create the appearance of, conflicts of interest; or
    (2) Outside employment which tends to impair his or her mental or 
physical capacity to perform Government duties and responsibilities in 
an acceptable manner.
    (b) An employee shall not receive any salary or anything of monetary 
value from a private source as compensation for his services to the 
Government (18 U.S.C. 209).
    (c) Employees are encouraged to engage in teaching, lecturing, and 
writing which is not prohibited by law, Executive Order, OGE 
regulations, or this part. However, an employee shall not, either for or 
without compensation, engage in teaching, lecturing, or writing which 
depends on information obtained as a result of his or her Government 
employment, except when that information has been made available to the 
general public or will be made available on request. An employee also 
shall not accept an honorarium for any consultation, writing, speech, 
lecture, or appearance, the subject matter of which draws substantially 
on official data or ideas which have not become part of the body of 
public information.
    (d) The Federal Inspector may not have, in any calendar year, 
outside earned income which is in excess of fifteen percent of his 
Government compensation (Pub. L. 95-521, as amended, section 210).
    (e) Any employee engaged in outside paid employment on a 
substantially regular basis shall notify his or her supervisor, who in 
turn will evaluate the continuation of such outside employment relative 
to paragraph (a) of this section.



Sec. 1506.206  Acceptance of honoraria.

    (a) No employee shall accept an honorarium for any consultation, 
writing, speech, lecture, or appearance, the subject matter of which is 
devoted substantially to the responsibilities, programs, or operations 
of the OFI.
    (b) No employee shall accept an honorarium for any consultation, 
writing, speech, lecture, or appearance which he performs while on duty.
    (c) No employee shall accept an honorarium of more than $2,000 for 
any appearance, speech, or article, or accept honoraria aggregating more 
than $25,000 in any calendar year (2 U.S.C. 441i).
    (d) No employee shall accept an honorarium from a person who:
    (1) Has, or is seeking to obtain, contractual or other business or 
financial relations with the OFI;
    (2) Conducts operations or activities which are regulated by the 
OFI; or
    (3) Has interests which may be substantially affected by the 
performance or nonperformance of his official duty.



Sec. 1506.207  Prohibited financial interests.

    (a) No employee shall have a financial interest that conflicts 
substantially, or appears to conflict substantially, with his or her 
Government duties and responsibilities.
    (b) As applied, paragraph (a) of this section requires that no 
employee shall own securities of any company (or its parent or 
affiliate):
    (1) Which initially owns and produces gas to be transported through 
the Alaska Natural Gas Transportation System (the system);
    (2) Which ``first purchases'' gas to be transported through the 
system;
    (3) Which is involved in the ownership of the system; or
    (4) Which is very substantially involved by contract in the 
construction or design of the system.
    (c) A list of the companies whose securities are prohibited under 
the criteria of paragraph (b) of this section shall be issued to each 
employee upon entrance on duty. A list of these companies shall be 
distributed to all employees annually and whenever change in 
circumstances requires modification of the list.
    (d) In addition to the specific companies (meeting the criteria in 
paragraph (b) of this section and listed according to paragraph (c) of 
this section), there are other categories of companies to which the 
prohibition in paragraph (a) of this section may or may not apply. 
Employees should consider the following factors:
    (1) Ownership of the securities of other oil and gas companies is 
not at present prohibited. Employees are advised, however, that, if such 
other companies become involved in either the

[[Page 854]]

system or ownership of gas to be transported through the system, 
ownership of the securities of those companies will, at that time, 
become prohibited.
    (2) As a general rule, the securities of those companies supplying 
goods or services for the planning or construction of the system are not 
prohibited from ownership by employees. Nevertheless, certain of those 
companies could supply such a large share of goods or services for the 
system that employees also may not own their securities.
    (3) Employees shall not own the securities of companies described in 
this paragraph only if and when a specific company is included in the 
prohibited securities list provided in accordance with paragraph (c) of 
this section.
    (e) If employees have any questions or doubts regarding the 
ownership of securities, they should contact the ethics officer for 
advice.
    (f) An employee may seek a waiver of the prohibitions imposed by 
paragraphs (a) and (b) of this section for a particular financial 
interest. In order to obtain such a waiver, an employee must fully 
disclose his financial interest to the ethics officer and to the Federal 
Inspector. If the ethics officer and the Federal Inspector determine 
that the disclosed financial interest is not so substantial as to be 
likely to affect the integrity of the employee's Government services, 
they may grant a waiver.
    (g) The prohibitions of paragraphs (a) and (b) of this section do 
not apply to mutual funds (unless investing primarily in oil and gas 
securities) and investments in mutual savings banks. Further, if an 
employee has continued to participate in a bona fide pension, 
retirement, group life, health, or accident insurance plan or other 
employee welfare or benefit plan that is maintained by a business or 
nonprofit organization or which he is a former employee, that financial 
interest is exempted from the prohibitions of paragraphs (a) and (b) of 
this section, except when the welfare or benefit plan is a profit-
sharing or stock-bonus plan.



Sec. 1506.208  Use of Government property.

    No employee shall use, or allow the use of, government property for 
any activity which is not officially approved. An employee has a 
positive duty to protect and conserve Government property which has been 
issued or entrusted to him.



Sec. 1506.209  Misuse of information.

    No employee shall use, or allow the use of, official information 
obtained through his Government employment which has not been made 
available to the general public or would not be made available to the 
public on request.



Sec. 1506.210  Indebtedness.

    An employee shall pay each just financial obligation in a proper and 
timely manner, especially one imposed by law, such as Federal, State or 
local taxes. For the purpose of this section, a ``just financial 
obligation'' means one acknowledged by the employee or reduced to 
judgment by a court or one imposed by law, and ``in a proper and timely 
manner'' means in a manner which the agency determines does not, under 
the circumstances, reflect adversely on the Government as the employee's 
employer. In the event of dispute between an employee and an alleged 
creditor, this section does not require the OFI to determine the 
validity or amount of the disputed debt.



Sec. 1506.211  Gambling, betting, and lotteries.

    No employee shall participate in any gambling activity while on 
Government property or while on duty for the Government. However, 
organizations composed of Federal employees may conduct fund-raising 
activities in accordance with procedures approved by the Federal 
Inspector (Executive Order 10927).



Sec. 1506.212  General conduct prejudicial to the Government.

    No employee shall engage in criminal, infamous, dishonest or 
disgraceful conduct, or other conduct prejudicial to the government.

[[Page 855]]



Sec. 1506.213  Miscellaneous statutory provisions.

    Each employee shall acquaint himself with the following statutory 
provisions which relate to Federal employee conduct. Copies, 
explanations, and interpretations of these provisions may be obtained 
from the ethics officer or his deputy.
    (a) House Concurrent Resolution 175, 85th Congress, 2d session, 72 
Stat. B12, the ``Code of Ethics for Government Service.''
    (b) Chapter 11 of title 18, United States Code, relating to bribery, 
graft, and conflicts of interest, as appropriate to the employees 
concerned.
    (c) The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913).
    (d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 
18 U.S.C. 1918).
    (e) The prohibitions against (1) the disclosure of classified 
information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of 
confidential information (18 U.S.C. 1905).
    (f) The provision relating to the habitual use of intoxicants to 
excess (5 U.S.C. 7352).
    (g) The prohibition against the misuse of a Government vehicle (31 
U.S.C. 638a(c)).
    (h) The prohibition against the misuse of the franking privilege (18 
U.S.C. 1719).
    (i) The prohibition against the use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917).
    (j) The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001).
    (k) The prohibition against mutilating or destroying a public record 
(18 U.S.C. 2071).
    (l) The prohibition against counterfeiting and forging 
transportation requests (18 U.S.C. 508).
    (m) The prohibition against (1) embezzlement of Government money or 
property (18 U.S.C. 641); (2) failure to account for public money (18 
U.S.C. 643); and (3) embezzlement of the money or property of another 
person in the possession of an employee by reason of his employment (18 
U.S.C. 654).
    (n) The prohibition against unauthorized use of documents to claims 
from or by the Government (18 U.S.C. 285).
    (o) The prohibitions against certain political activities in the 
``Hatch Act'' (5 U.S.C. 7324-7327 and 18 U.S.C. 602, 603, 607, and 608).
    (p) The prohibition against an employee acting as the agent of a 
foreign principal registered under the Foreign Agents Registration Act 
(18 U.S.C. 219).



    Subpart C--Public Financial Disclosure Requirements for Employees



Sec. 1506.301  Employees subject to public financial disclosure requirements.

    (a) Every employee whose position is classified as GS-16 or above or 
who is paid at an equivalent rate in the Senior Executive Service shall 
annually file an ``Executive Personnel Financial Disclosure Report'' 
(referred to as a ``278 form'') for public financial disclosure.
    (b) Every schedule C employee who is paid at a rate below GS-16 
shall file a 278 form annually, unless specifically excepted from the 
requirement, in accordance with OGE procedure, as having no role in 
advising or making policy determinations concerning agency programs or 
policies.
    (c) The OFI ethics officer shall file a 278 form annually.



Sec. 1506.302  When to file 278 form.

    (a) Except as described in paragraph (b) of this section, all 
employees who are required by virtue of their position to file a 278 
form shall file the form within thirty days of their entrance into that 
position.
    (b) A new entrant to a 278 position does not need to file a 278 form 
within 30 days of entrance upon duty:
    (1) If the entrant has just left a position for which he was 
required to file a 278 form; or
    (2) If the entrant has already filed a 278 form as a nominee or 
candidate for the position.
    (c) Thereafter, every employee who performs the duties of a 278 
position for more than 60 days of any calendar year shall file a 278 
form for that year by May 15 of the succeeding year.

[[Page 856]]

    (d) Within thirty days after the termination of employment in a 278 
position, a terminated employee shall file a 278 form for the year of 
termination. However, if an employee terminates one 278 position but 
assumes another 278 position (either at OFI or in other Federal 
employment) within 30 days of termination, no report is required by this 
subsection.
    (e) The ethics officer may, for good cause shown, grant to any 
employee or class of employees an extension of up to 45 days. The OGE 
may, for good cause shown, grant an additional extension of up to 45 
days. The employee shall set forth specific reasons for the additional 
extension request and shall submit these reasons to the ethics officer. 
The ethics officer will forward the request and comments on it to the 
OGE.



Sec. 1506.303  Where to file 278 form.

    (a) Employees who are required to file 278 forms shall file them 
with the ethics officer.
    (b) The ethics officer shall transmit the 278 form of the Federal 
Inspector and the ethics officer's 278 form to the Director of the OGE. 
Prior to transmitting these forms, the ethics officer shall review the 
278 form of the Federal Inspector and shall ensure that ethics officer's 
278 form is reviewed by the Federal Inspector.



Sec. 1506.304  Procedure for completing 278 forms.

    Each 278 form shall be filled out entirely and in accordance with 
its instructions. If questions arise while filling out his or her form, 
an employee should consult the ethics officer. The ethics officer shall 
in turn make available the OGE regulations implementing title II of the 
Ethics in Government Act.



Sec. 1506.305  Special rules for completing 278 forms.

    Employees who are required to submit 278 forms should acquaint 
themselves with the special rules set forth in the regulations of the 
Office of Government Ethics at 5 CFR 734.303. Copies and interpretations 
of these provisions may be obtained from the ethics officer. Employees 
should note that they may request a waiver of the reporting requirement 
for certain personal gifts.



Sec. 1506.306  Special rules for reporting trust interests and assets.

    (a) Subject to the exceptions of paragraph (b) of this section, 
employees required to submit 278 forms shall report trust interests and 
assets which have a value in excess of $1,000.
    (b) The reporting requirement of paragraph (a) of this section does 
not apply when an employee is the beneficiary of:
    (1) A ``qualified blind trust,''
    (2) A ``qualified diversified trust,'' or
    (3) An ``excepted trust.''
    (c) The trusts provided in paragraph (b) of this section are 
approved in the following manner:
    (1) A ``qualified blind trust'' is a trust certified as approved by 
the Director of the Office of Government Ethics as meeting the 
requirements of section 202(f)(3) of the Ethics in Government Act and 
implementing regulations.
    (2) A ``qualified diversified trust'' is a trust certified as 
approved by the Director of the Office of Government Ethics, in 
concurrence with the Attorney General, as meeting the requirements of 
section 202(f)(4)(B) of the Ethics in Government Act and implementing 
regulations.
    (3) An ``excepted trust'' is one which was not created directly by 
the employee, his spouse, or his dependent child, and the holdings or 
sources of income of which are not known to the employee, his spouse, or 
his dependent child. An excepted trust requires no certification or 
approval.
    (d) An employee who wishes to create a qualified blind trust or (in 
the case of the Federal Inspector) a qualified diversified trust should 
consult with the ethics officer, who shall refer the employee to the 
OGE.
    (e) Employees who create, maintain, or dissolve either a qualified 
blind trust or a qualified diversified trust shall familiarize 
themselves with the special filing requirements for those actions. 
Employees may obtain copies and interpretations of those requirements (5 
CFR 734.407) from the ethics officer.
    (f) Assets in all types of trusts, except a qualified diversified 
trust of the

[[Page 857]]

Federal Inspector, shall be considered financial interests until the 
employee is notified by the trustee that the assets have been disposed 
of or have a value of less than $1,000. As such, all trust assets, 
except those in qualified diversified trusts, shall be subject to the 
financial interest restrictions of Sec. 1506.207 of section 208 of title 
18 of the United States Code, and of any other Federal conflict of 
interest statutes or regulations.



Sec. 1506.307  Custody of completed 278 forms.

    (a) Any completed 278 form filed with the ethics officer or 
transmitted to the Director, Office of Government Ethics, pursuant to 
this subpart, shall be retained by the OFI or the Office of Government 
Ethics, or both, as the case may be. Such completed forms shall be made 
available to the public for a period of six years after receipt of the 
report. After this six-year period, the form shall be destroyed, unless 
needed in an ongoing investigation. In the case of an individual who 
filed a 278 form as a nominee to a position requiring Senate 
confirmation and who was not subsequently confirmed by the Senate, his 
or her form shall be destroyed one year after he or she is no longer 
under consideration by the Senate, unless it is needed in an ongoing 
investigation.
    (b) Copies of all qualified trust agreements, the list of assets 
initially placed in such trusts, and all other publicly available 
documents relating to such trusts shall be retained until the periods 
for retention of all other forms have lapsed.



Sec. 1506.308  Public access to completed 278 forms.

    Within fifteen days after any completed form is actually received by 
the ethics officer, the ethics officer shall permit inspection of such 
report by, or furnish a copy to, any person who makes a written 
application which:
    (a) States the applicant's name, occupation, and address,
    (b) States the name and address of any other person or organization 
on whose behalf the request is made, and
    (c) States that the applicant is aware of the restrictions on the 
obtaining and the use of the report.



Sec. 1506.309  Review of completed 278 forms and remedial action.

    (a) The reviewing official (the ethics officer, except for the 
ethics officer's form, which the Federal Inspector shall review) shall 
review each 278 form to determine that it complies with all applicable 
law.
    (b) Upon determining that the employee is in compliance with all 
applicable law, the reviewing official shall sign and date the completed 
form.
    (c) If the reviewing official believes that additional information 
is necessary, such information shall be requested. The employee of whom 
this request is made shall be afforded a reasonable opportunity to 
respond.



Sec. 1506.310  Procedure after review of additional information.

    (a) If, after reviewing the additional information, the reviewing 
official concludes that the employee is in compliance with applicable 
law, the reviewing official shall sign and date the completed form and 
so notify the employee.
    (b) If, after reviewing the additional information, the reviewing 
official concludes that the employee is not in compliance with 
applicable law, the reviewing official shall:
    (1) Notify the employee of that opinion;
    (2) Afford the employee an opportunity for personal consulation, if 
practicable;
    (3) Determine what remedial action should be taken to bring the 
employee into compliance; and
    (4) Notify the employee in writing of the remedial action required, 
indicating a date by which such action should be taken.
    (c) Remedial steps may include:
    (1) Divestiture of a conflicting interest;
    (2) Restitution;
    (3) Establishment of a qualified blind trust; or
    (4) Request for an exemption under 18 U.S.C. 208(b).
    (d) If the employee complies with the suggested remedial steps, the 
reviewing official shall so indicate in the ``comments'' section of the 
form, and shall sign and date it.

[[Page 858]]



Sec. 1506.311  Procedure upon employee's refusal to comply.

    (a) If the employee does not comply with the remedial steps 
suggested pursuant to Sec. 1506.310, the reviewing official shall notify 
the OGE and refer the matter for approporiate action to:
    (1) The President, if the non-complying employee is the Federal 
Inspector, or
    (2) The Federal Inspector, concerning all other employees.
    (b) Appropriate action may include:
    (1) Any of the remedial steps listed in paragraph (c) of 
Sec. 1506.310;
    (2) Removal;
    (3) Suspension;
    (4) Reduction in grade; or
    (5) Reduction in pay.



Sec. 1506.312  Advisory opinions and situation lists.

    Employees may consult the ethics officer to inquire:
    (a) About advisory opinions rendered by the Director of the OGE, and
    (b) About lists of circumstances and situations which have resulted 
in non-compliance with ethics laws. These lists, as they are published, 
will be furnished to all employees who are required to file 278 forms.



Sec. 1506.313  Penalities for failure to file or falsifying 278 forms.

    (a) Referral of cases. The Federal Inspector or the Director, Office 
of Government Ethics, as the case may be, shall refer to the Attorney 
General the name of any individual who, the appropriate officer has 
reasonable cause to believe, has willfully failed to file a report, or 
has willfully falsified or willfully, failed to file information 
required to be reported.
    (b) Civil action. The Attorney General may bring a civil action in 
any appropriate United States District Court against any individual who 
knowingly and willfully falsifies or who knowingly or willfully fails to 
file or report any information which such individual is required to 
report pursuant to this subpart. The court in which such action is 
brought may assess against such individual a civil penalty in any 
amount, not to exceed $5,000.
    (c) Administrative remedies. The President, the Director, Office of 
Government Ethics, or the Federal Inspector, may take any appropriate 
personnel or other action in accordance with applicable law or 
regulation against any individual failing to file a report or falsifying 
or failing to file information required to be reported. Such action 
includes adverse action under 5 CFR part 752.



Sec. 1506.314  Penalties for non-compliance with the special filing requirements for qualified trusts.

    (a) The Attorney General may bring a civil action in any appropriate 
United States District Court against any individual who knowingly and 
willfully violates the provisions of 5 CFR 734.407 (a) or (b). The court 
in which such action is brought may assess against such individual a 
civil penalty in any amount, not to exceed $5,000.
    (b) The Attorney General may bring a civil action in any appropriate 
United States District Court against any individual who negligently 
violates those provisions. The court in which such action is brought may 
assess against such individual a civil penalty in any amount, not to 
exceed $1,000.



      Subpart D--Confidential Disclosure Requirements for Employees



Sec. 1506.401  Employees required to submit confidential statements of employment and financial interests.

    (a) Unless subject to the public financial disclosure requirements 
of subpart C of this part or unless exempted under paragraph (b) of this 
section, those employees required to file confidential statements are:
    (1) Employees classified as GS-13 or above, or at an equivalent pay 
level, who the ethics officer or the FI determines are in positions 
which require them to make a Government decision or take a Government 
action in regard to:
    (i) Contracting or procurement;
    (ii) Regulating or aduiting private or other non-Federal enterprise; 
or
    (iii) Other activities where the decision or action has an economic 
impact on the interests of any non-Federal enterprise;

[[Page 859]]

    (2) Employees classified as GS-13 or above, or at an equivalent 
level of pay, who are in positions which entail duties and 
responsibilities which require them to report employment and financial 
interests in order to avoid involvement in a possible conflicts-of-
interest situation; and
    (3) Employees classified below GS-13, or at an equivalent rate of 
pay, who are in positions which otherwise meet the criteria in paragraph 
(a) (1) or (2) of this section, when the requirement that they file has 
been specifically justified and for which approval has been given by the 
OGE.
    (b) An employee in a position that meets the criteria in paragraph 
(a) of this section may be excluded from the reporting requirement when 
the ethics officer determines that:
    (1) The duties of his or her position are such that the likelihood 
of involvement in a conflicts-of-interest situation is remote;
    (2) The duties of his or her position are at such a level of 
responsibility that the submission of a statement of employment and 
financial interests is not necessary because of the degree of 
supervision and review over him or her; or
    (3) The use of an existing or alternative procedure is adequate to 
prevent possible conflicts-of-interest.
    (c) The ethics officer shall maintain a list of positions for which 
a confidential statement is required and shall notify the employees in 
those positions of the reporting requirement



Sec. 1506.402  Time and place for submission of confidential statements.

    An employee required to submit a confidential statement shall submit 
it to the ethics officer:
    (a) Within ninety days of the date on which these regulations become 
effective, or
    (b) Within thirty days after his or her entrance on duty, but not 
earlier than ninety days after these regulations become effective.



Sec. 1506.403  Supplementary statements.

    Changes in, or additions to, the information contained in an 
employee's confidential statement of employment and financial interests 
shall be reported in a supplementary statement as of June 30 each year, 
except when the OGE authorizes a different date. If no changes or 
additions occur, a negative report is required.



Sec. 1506.404  Interests of employee's relatives.

    The interest of a spouse, minor child, or other member of an 
employee's immediate household is considered to be an interest of the 
employee. For the purpose of this section, ``member of an employee's 
immediate household'' means those blood relations who are residents of 
the employee's household.



Sec. 1506.405  Information not known by employees.

    If any information required to be included in a statement of 
employment and financial interest or supplementary statement, including 
holdings placed in trust, is not known to the employee but is known to 
another person, the employee shall request that other person to submit 
information in his behalf.



Sec. 1506.406  Information not required.

    This subpart does not require an employee to submit on a statement 
of employment and financial interests or supplementary statement any 
information relating to the employee's connection with, or interest in, 
a professional society or a charitable, religious, social, fraternal, 
recreational, public service, civic, or political organization or a 
similar organization not conducted as a business enterprise. For the 
purpose of this section, educational and other institutions doing 
research and development or related work involving grants of money from 
or contracts with the Government are deemed ``business enterprises'' and 
are required to be included in an employee's statement of employment and 
financial interests.



Sec. 1506.407  Confidential custody of reports.

    The ethics officer shall hold each statement of employment and 
financial interests, and each supplementary statement, in confidence. To 
insure this confidentiality, he shall designate

[[Page 860]]

which employees are authorized to review and retain the statements. 
Employees so designated are responsible for maintaining the statements 
in confidence and shall not allow access to, or allow information to be 
disclosed from, a statement, except to carry out the purposes of these 
regulations. The OFI will not disclose information from a statement, 
except as the Office of Government Ethics or the Federal Inspector may 
determine for good cause shown.



Sec. 1506.408  Employee's complaint on filing.

    Any employee who feels that he or she has been unjustly required to 
file a confidential statement shall be afforded an opportunity for 
review of that requirement through the OFI's grievance procedure. Any 
employee who wishes to be afforded that opportunity shall consult the 
ethics officer concerning the proper procedure.



Sec. 1506.409  Review of reports and remedial action.

    (a) The ethics officer shall review each confidential statement of 
employment and financial interests. Upon determining that the employee 
is in compliance with applicable laws and regulations, the ethics 
officer shall sign and date the report.
    (b) If the ethics officer believes that additional information is 
necessary, such information shall be requested. The employee of whom 
this request is made shall be afforded a reasonable opportunity to 
respond.



Sec. 1506.410  Procedure after review of additional information.

    (a) If, after reviewing the additional information, the ethics 
officer concludes that the employee is in compliance with applicable 
law, the ethics officer shall sign and date the report and so notify the 
employee.
    (b) If, after reviewing the additional information, the ethics 
officer concludes that the employee is not in compliance with applicable 
law, the ethics officer shall:
    (1) Notify the employee of that opinion,
    (2) Afford the employee an opportunity for personal consultation, if 
practicable,
    (3) Determine what remedial action should be taken to bring the 
employee into compliance, and
    (4) Notify the employee in writing of the remedial action required, 
indicating a date by which such action should be taken.
    (c) Remedial steps may include:
    (1) Divestiture of a conflicting interest;
    (2) Restitution;
    (3) Establishment of a qualified blind trust; or
    (4) Request for an exemption under 18 U.S.C. 208(b).
    (d) If the employee complies with the suggested remedial steps, the 
ethics officer shall sign and date the report.



Sec. 1506.411  Procedure upon employee's refusal to comply.

    (a) If the employee does not comply with the suggested remedial 
steps, the ethics officer shall refer the matter for appropriate action 
to the Federal Inspector.
    (b) Appropriate action may include:
    (1) Any of the remedial steps listed in paragraph (c) of 
Sec. 1506.410;
    (2) Removal;
    (3) Suspension;
    (4) Reduction in grade; or
    (5) Reduction in pay.
    (c) Remedial action, whether disciplinary or otherwise, shall be 
effected in accordance with applicable law.



      Subpart E--Rules of Conduct for Special Government Employees



Sec. 1506.501  Applicability.

    The provisions of this subpart apply to all special Government 
employees, as defined in Sec. 1506.103 of these regulations.



Sec. 1506.502  Use of Government employment.

    No special Government employee shall use his Government employment 
for a purpose that is, or gives the appearance of being, motivated by 
the desire for private gain for him or herself or another person, 
particularly one with whom he or she has family, business, or financial 
ties.

[[Page 861]]



Sec. 1506.503  Use of inside information.

    (a) No special Government employee shall, either by direct action on 
his or her part or by counsel, recommendation, or suggestion to another 
person, use inside information, obtained as a result of his or her 
Government employment, for private gain for him or herself or another 
person, particularly one with whom he or she has family, business, or 
financial ties. For the purpose of this section, ``inside information'' 
means information, obtained under Government authority, which has not 
become part of the body of public information.
    (b) No special Government employee shall, either for or without 
compensation, engage in teaching, lecturing, or writing that depends on 
information obtained as a result of his or her OFI employment, except 
when that information has been made available to the general public or 
will be made available on request, or when the agency head gives written 
authorization for use of nonpublic information on the basis that the use 
is in the public interest.



Sec. 1506.504  Coercion.

    No special Government employee shall use his or her Government 
employment to coerce, or give the appearance of coercing, a person to 
provide financial benefit to him or herself or another person, 
particularly one with whom he or she has family, business, or financial 
ties.



Sec. 1506.505  Acceptance and solicitation of gifts, entertainment, and favors.

    (a) Apart from the exceptions listed in paragraph (b) of this 
section, no special Government employee shall solicit or accept for him 
or herself or anyone else any gift, gratuity, favor, entertainment, 
loan, or any other thing of monetary value from a person who:
    (1) Has, or is seeking to obtain, contractual business or financial 
relations with OFI;
    (2) Is regulated by OFI; or
    (3) Has interests that may be substantially affected by the special 
Government employee's performance of his Government duty.
    (b) Exceptions to the prohibitions of paragraph (a) of this section 
are:
    (1) A special Government employee may accept food and refreshments 
of nominal value on infrequent occasions in the ordinary course of a 
luncheon or dinner meeting when, and only when, it is impracticable to 
pay for the food or refreshments (that is, when the special Government 
employee is unable to ascertain either the price of the food or 
refreshments or an appropriate person to pay for the food or 
refreshments); and
    (2) A special Government employee may accept unsolicited promotional 
materials, such as pens, pencils, note pads, and calendars which are of 
nominal value.



Sec. 1506.506  Prohibited financial interests.

    (a) No special Government employee shall have a financial interest 
that conflicts substantially with his or her Government duties and 
responsibilities.
    (b) As applied, paragraph (a) of this section requires that no 
special Government employee shall own securities of any company (or its 
parent or affiliate):
    (1) Which initially owns and produces gas to be transported through 
the Alaska Natural Gas Transportation System (the system);
    (2) Which first purchases gas to be transported through the system;
    (3) Which is involved in the ownership of the system; or
    (4) Which is very substantially involved by contract in the 
construction or the design of the system.
    (c) A list of the companies whose securities are prohibited under 
the criteria of paragraph (b) of this section shall be issued to each 
special Government employee upon entrance on duty. A list of these 
companies shall be distributed to all special Government employees 
annually and whenever change in circumstances requires modification of 
the list.
    (d) In addition to the specific companies (meeting the criteria in 
paragraph (b) of this section and listed according to paragraph (c) of 
this section), there are other categories of companies to which the 
prohibition in paragraph (a) of this section may or may not apply.

[[Page 862]]

Special Government employees should consider the following factors:
    (1) Ownership of the securities of other oil and gas companies is 
not at present prohibited. Special Government employees are advised, 
however, that if such other companies become involved in either the 
system or ownership of gas to be transported through the system, 
ownership of the securities of those companies will, at that time, 
become prohibited.
    (2) As a general rule, the securities of those companies supplying 
goods or services for the planning or construction of the system are not 
prohibited from ownership by special Government employees. Nevertheless, 
certain of these companies could supply such a large share of goods or 
services for the system that special Government employees also may not 
own their securities.
    (3) Special Government employees shall not own the securities of 
companies described in this paragraph only if and when a specific 
company is included in the prohibited securities list provided in 
accordance with paragraph (c) of this section.
    (e) If special Government employees have any questions or doubts 
regarding the ownership of securities, they should contact the ethics 
officer for advice.
    (f) A special Government employee may obtain a waiver of the 
prohibitions, imposed by paragraphs (a) and (b) of this section, for a 
particular financial interest. In order to obtain a waiver, a special 
Government employee must fully disclose his financial interest to the 
ethics officer and to the Federal Inspector. If the ethics officer and 
the Federal Inspector determine that the disclosed financial interest is 
not so substantial as to be likely to affect the integrity of the 
special Government employee's services, they may grant a waiver.
    (g) The prohibitions of paragraphs (a) and (b) of this section do 
not apply to mutual funds and investments in mutual savings banks. 
Further, if a special Government employee has continued to participate 
in a bona fide pension, retirement, group life, health, or accident 
insurance plan or other employee welfare or benefit plan that is 
maintained by a business or nonprofit organization of which he is a 
former employee, that financial interest is exempted from the 
prohibitions of paragraphs (a) and (b) of this section, except when the 
welfare or benefit plan is a profit-sharing or stock-bonus plan.



Sec. 1506.507  Miscellaneous statutory provisions.

    Each special Government employee shall acquaint him or herself with 
the following statutory provisions which relate to Federal employee 
conduct. Copies, explanations, and interpretations of these provisions 
may be obtained from the ethics officer or his deputy.
    (a) House Concurrent Resolution 175, 85th Congress, 2d session, 72 
Stat. B12, the ``Code of Ethics for Government Service''.
    (b) Chapter 11 of title 18, United States Code, relating to bribery, 
graft, and conflicts of interest, as appropriate to the special 
Government employee concerned.
    (c) The prohibition against lobbying with appropriated funds (18 
U.S.C. 1913).
    (d) The prohibition against disloyalty and striking (5 U.S.C. 7311, 
18 U.S.C. 1918).
    (e) The prohibitions against (1) the disclosure of classified 
information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of 
confidential information (18 U.S.C. 1905).
    (f) The provision relating to the habitual use of intoxicants to 
excess (5 U.S.C. 7352).
    (g) The prohibition against the misuse of a Government vehicle (31 
U.S.C. 638a(c)).
    (h) The prohibition against the misuse of the franking privilege (18 
U.S.C. 1719).
    (i) The prohibition against the use of deceit in an examination or 
personnel action in connection with Government employment (18 U.S.C. 
1917).
    (j) The prohibition against fraud or false statements in a 
Government matter (18 U.S.C. 1001).
    (k) The prohibition against mutilating or destroying a public record 
(18 U.S.C. 2071).

[[Page 863]]

    (l) The prohibition against counterfeiting and forging 
transportation requests (18 U.S.C. 508).
    (m) The prohibition against (1) embezzlement of Government money or 
property (18 U.S.C. 641); (2) failure to account for public money (18 
U.S.C. 643); and (3) embezzlement of the money or property of another 
person in the possession of an employee by reason of his employment (18 
U.S.C. 654).
    (n) The prohibition against unauthorized use of documents relating 
to claims from or by the Government (18 U.S.C. 285).
    (o) The prohibitions against certain political activities in the 
``Hatch Act'' (5 U.S.C. 7324-7327 and 18 U.S.C. 602, 603, 607, and 608).
    (p) The prohibition against an employee acting as the agent of a 
foreign principal registered under the Foreign Agents Registration Act 
(18 U.S.C. 219).



    Subpart F--Public Financial Disclosure Requirements for Special 
                          Government Employees



Sec. 1506.601  Special Government employees subject to public financial disclosure requirements.

    Every special Government employee whose position is classified at 
GS-16 or above or who is paid at an equivalent rate shall annually file 
a 278 form, the public financial disclosure form.



Sec. 1506.602  Applicability of subpart C to special Government employees.

    All of the provisions in subpart C, concerning public financial 
disclosure by regular employees, shall apply equally to special 
Government employees. Therefore, every special Government employee who 
must file a public financial disclosure statement should familiarize him 
or herself with that subpart and look to it for guidance in meeting his 
or her public financial disclosure obligations.



Sec. 1506.603  Exception for special Government employees who are employed for less than sixty days.

    (a) A special Government employee who must otherwise file a 278 form 
may be excepted from this obligation if, as determined by the ethics 
officer, the special Government employee is not reasonably expected to 
perform the duties of his or her office or position for more than sixty 
days in a calendar year.
    (b) Notwithstanding paragraph (a) of this section, a special 
Government employee who is subject to public financial disclosure 
requirements and actually performs the duties of his or her position for 
more than sixty days in a calendar year shall file a 278 form within 
fifteen days after the sixty-first day of such employment, unless 
excepted under Sec. 1506.604.



Sec. 1506.604  Special waiver of public disclosure requirement for special Government employees.

    (a) In unusual circumstances, the Director, Office of Government 
Ethics, may grant a request for a waiver of any reporting requirement 
otherwise applicable for an individual who is reasonably expected to 
perform, or has performed, the duties of his of her office or position 
for less than one hundred and thirty days in a calendar year, but only 
if the Director determines that:
    (1) Such individual is a special Government employee,
    (2) Such individual is able to provide services specially needed by 
the Government,
    (3) It is unlikely that the individual's outside employment or 
financial interests will create a conflict of interests, and
    (4) Public financial disclosure by such individual is not necessary 
under the circumstances.
    (b) In requesting a waiver pursuant to paragraph (a) of this 
section, the procedures of the OGE (5 CFR 734.205) shall be followed.



   Subpart G--Confidential Disclosure by Special Government Employees



Sec. 1506.701  Special Government employees required to submit confidential statements of employment and financial interests.

    (a) Unless subject to the public financial disclosure requirements 
of subpart E of this part or unless exempted under

[[Page 864]]

paragraph (b) of this section, every special Government employee shall 
submit a confidential statement of employment and financial interests.
    (b) The requirement of paragraph (a) of this section may be waived 
for a special Government employee who is neither a consultant nor an 
expert and whose duties are such that disclosure of interests is not 
necessary to protect Government integrity. For the purpose of this 
subsection, ``consultant'' and ``expert'' have the meanings given those 
terms by Chapter 304 of the Federal Personnel Manual.



Sec. 1506.702  Time and place for submission of confidential statements.

    Confidential statements of employment and financial interests shall 
be submitted to the OFI ethics officer not later than the commencement 
of employment of the special Government employee. Special Government 
employees shall keep their statements current throughout their 
employment with the agency by the submission of supplementary 
statements.



Sec. 1506.703  Custody and review of confidential statements; remedial action.

    The confidential statements of employment and financial interests 
filed by special Government employees shall be kept in custody and 
reviewed in the same manner as are the confidential statements of 
regular employees. Special Government employees shall be afforded the 
same procedural safeguards as are regular employees in any remedial 
action taken against them.



PART 1530--REIMBURSEMENT OF COSTS--Table of Contents




Sec.
1530.1  Coverage.
1530.2  Reimbursable activities.
1530.3  Costs to be reimbursed.
1530.4  Billing procedures.
1530.5  Payment procedures.
1530.6  Protest procedures.

    Authority: Sec. 9 of the Alaska Natural Gas Transportation Act, 15 
U.S.C. 719g, secs. 102 and 202 of Reorganization Plan No. 1 of 1979, 44 
FR 33663 (made effective by Executive Order 12142 of June 21, 1979, 44 
FR 36927), sec. 28(l) of title I of the Mineral Leasing Act, 30 U.S.C. 
185; and 31 U.S.C. 483a.

    Source: 46 FR 28397, May 27, 1981, unless otherwise noted.



Sec. 1530.1  Coverage.

    (a) This part applies to the companies (or their agents) sponsoring 
the segments of the Alaska Natural Gas Transportation System (ANGTS) in 
the United States, as listed in the President's Decision and Report to 
Congress on the Alaska Natural Gas Transportation System and as 
subsequently restructured, renamed, or otherwise changed, to the extent 
that they are also holders of rights-of-way or permits for use of 
federal land.
    (b) This part also applies to companies sponsoring facilities which 
have been determined to be ``necessary or related to'' ANGTS, within the 
meaning of Section 9 of ANGTA, and thereby come within the OFI's 
enforcement authority, to the extent that they are also holders of 
rights-of-way or permits for use of federal land.
    (c) This part governs how the OFI will obtain reimbursement from the 
sponsoring companies described above in paragraphs (a) and (b) of this 
section for the costs incurred in certain of its ANGTS-related 
enforcement activities. It does not govern how any other federal agency 
might seek similar reimbursement from the sponsoring companies for 
ANGTS-related nonenforcement activities.



Sec. 1530.2  Reimbursable activities.

    (a) The sponsoring companies shall reimburse the United States for 
the OFI's costs incurred in enforcing ANGTS right-of-way and permit 
requirements on federal lands, as directly required by Section 28 of the 
Mineral Leasing Act.
    (b) Enforcement, the costs of which are reimbursable under paragraph 
(a) of this section immediately above, entails monitoring and any other 
compliance or oversight activities reasonably related to the OFI 
enforcement process, as established by section 102 of Reorganization 
Plan No. 1 of 1979.



Sec. 1530.3  Costs to be reimbursed.

    (a) The OFI will require reimbursement for the activities, defined 
by Sec. 1530.2 as reimbursable, of the following OFI offices:

[[Page 865]]

    (1) Engineering Review;
    (2) Environmental Review;
    (3) Permits and Compliance; and
    (4) Field offices located in:
    (i) Anchorage, Alaska;
    (ii) Fairbanks, Alaska;
    (iii) San Francisco, California;
    (iv) Irvine, California; and
    (v) Omaha, Nebraska.
    (b) The specific costs of reimbursable activities are limited to the 
following:
    (1) Employee costs for:
    (i) Salaries;
    (ii) Cost-of-living allowance (but only in Alaska);
    (iii) Benefits;
    (iv) Travel;
    (v) Training; and
    (vi) Household moves;
    (2) Outside support costs for:
    (i) Contractors;
    (ii) Consultants; and
    (iii) Interagency arrangements, whether pursuant to a:
    (A) Delegation under section 202(a) of Reorganization Plan No. 1 of 
1979; or
    (B) Formal cooperative work sharing agreement under the Economy Act;
    (3) Office expenses for:
    (i) Relocation;
    (ii) Supplies;
    (iii) Rent;
    (iv) Utilities;
    (v) Communications; and
    (vi) Machine rental;
    (4) Material and equipment purchase or rental;
    (5) Vehicle and aircraft purchase or rental;
    (6) Any of the above or other support services provided by the 
sponsoring companies in the field on a cost recovery basis under 
logistical support agreements between the OFI and the sponsoring 
companies; and
    (7) Cost to administer this part equal to a percentage (determined 
annually by the OFI in the context of Sec. 1530.4(c)(1)) of the total 
costs under paragraphs (b)(1) through (6) of this section.



Sec. 1530.4  Billing procedures.

    (a) The OFI will present the sponsoring companies with a bill within 
30 calendar days of the end of each calendar-year quarter for 
reimbursable costs incurred over that quarter for that segment of ANGTS 
or other facilities determined to be related to ANGTS.
    (b) The bill will include the following:
    (1) Total OFI expenditures incurred for the quarter, broken down by 
object class per OFI office;
    (2) A brief description of reimbursable activities undertaken for 
the quarter, broken down by OFI office;
    (3) The percentage of reimbursable to non-reimbursable activities 
for that segment of ANGTS, broken down by OFI office; and
    (4) A calculation of the reimbursement due for that quarter, 
computed by multiplying the total OFI expenditures, as per paragraph 
(b)(1) of this section, by the reimbursable percentage, as per paragraph 
(b)(3) of this section.
    (c) The reimbursable percentage used in paragraph (b)(3) of this 
section is determined as follows:
    (1) Prior to the commencement of each calendar year, the OFI will 
consult with the sponsoring companies to ascertain their project 
activities for the coming year, with special identification of 
activities requiring reimbursable OFI enforcement activities.
    (2) The OFI will then determine the reimbursable percentage for each 
OFI office by project segment.
    (i) That percentage will apply for the entire upcoming calendar 
year. It will not be adjusted unless extraordinary and unanticipated 
events materially and dramatically alter the OFI's reimbursable 
enforcement activities.
    (ii) The OFI will determine that percentage based upon the following 
factors:
    (A) Amount of federal land to be crossed;
    (B) Types of pre-construction or construction activities to be 
undertaken during that year;
    (C) Proportionate amount of time each OFI office will need to 
monitor those activities; and
    (D) Level of intensity for monitoring on federal lands as opposed to 
non-federal lands.
    (3) If a sponsor company intends to contest any of the reimbursable 
percentages, it may not do so until, but must do so when, it receives 
its first quarterly bill for the calendar year at

[[Page 866]]

issue. It must then follow the procedures set out in Secs. 1530.5 and 
1530.6 of this part.



Sec. 1530.5  Payment procedures.

    (a) Payment of reimbursable costs should be made, as billed, to the 
OFI, specifically identified for U.S. Treasury Account Number 2469.
    (b) Payment should be made within 30 calendar days of receipt of 
billing.
    (c) The sponsoring company making payment under this Section should 
simultaneously notify the OFI Director of Financial Management of that 
payment.
    (d) If the sponsoring company contests any part of the bill, 
rendered pursuant to Sec. 1530.4, it must nonetheless pay the 
uncontested balance, and then proceed under Sec. 1530.6 immediately 
below.



Sec. 1530.6  Protest procedures.

    (a) If and when a sponsoring company contests any part of an OFI 
bill, as per Sec. 1530.5(d) of this part, it shall act pursuant to this 
section.
    (b) The contesting company must append to its partial payment a 
petition fully justifying its action, including the following items:
    (1) A clear description of the contested amount, with detailed 
reference, by cost category and office, to the OFI bill;
    (2) A full explanation of the legal basis for contesting payment; 
and
    (3) Where relevant, a counterstatement of the facts at issue.
    (c) In its sole discretion the OFI may orally or in writing request 
further support for the petition contesting reimbursement, including 
convening an informal conference to explore the matter further.
    (d) After reviewing the petition, along with any further 
information, the OFI, through its Director of Administration, will rule 
on the petition within thirty calendar days, notifying the petitioner in 
writing of the decision.
    (1) If the Director accepts the contesting company's position and 
thus grants the petition, the partial payment previously rendered under 
Sec. 1530.5(d) will be deemed to satisfy fully the quarterly bill 
rendered under Sec. 1530.4.
    (2) If the Director rejects the contesting company's position and 
thus rejects the petition, the petitioner:
    (i) Shall make payment of the contested and previously withheld 
amount within thirty calendar days, and
    (ii) May within thirty calendar days after payment appeal the 
Director's adverse finding to the Federal Inspector, pursuant to 
paragraph (e) of this section.
    (e) The Federal Inspector or designee will render a final decision 
on any appeal of the Director's adverse finding within sixty calendar 
days of receipt, unless the appellant has failed to make full payment to 
the OFI, as per paragraph (d)(2)(i) of this section.
    (1) If the Federal Inspector or designee grants the appeal, the OFI 
will either return to the appellant the contested payment within thirty 
calender days or credit the appellant's next quarterly bill.
    (2) If the Federal Inspector denies the appeal, the appellant may 
institute appropriate judicial action to recover the contested payment.
    (f) If and when a contesting company refuses to make full payment 
following the Director's adverse finding on its petition (in 
contravention of paragraph (d)(2)(i) of this section), the OFI may stop 
work on any applications for regulatory approval submitted by the 
company and pending before the OFI under Reorganization Plan No. 1 of 
1979. The schedule and cost consequences will be attributed to the 
noncompliant company.
    (g) Notwithstanding paragraphs (a) through (f) of this section the 
company making full payment of reimbursable costs may undertake the 
following:
    (1) Within seventy-five calendar days of receipt of the OFI 
quarterly bill, as per Sec. 1530.4, the company may request to conduct 
an audit of the bill.
    (2) The company will complete that audit within ninety calendar days 
of the request and at its own expense.
    (3) If, based on that audit, the company contests any part of the 
bill, it may petition for the return of the contested payments pursuant 
to the procedures set forth in paragraphs (b)

[[Page 867]]

through (e) of this section where appropriate.

[[Page 868]]



                  SUBCHAPTER C--ENFORCEMENT PROCEDURES





  PART 1534--ENFORCEMENT PROCEDURES FOR REGULATIONS REQUIRING EQUAL OPPORTUNITY DURING PLANNING, CONSTRUCTION, AND INITIAL OPERATION OF THE ALASKA NATURAL GAS 

TRANSPORTATION SYSTEM--Table of Contents




Sec.
1534.1  General.
1534.2  Initial stage of compliance review.
1534.3  Initial stage of complaint investigation.
1534.4  Procedures for determination of compliance or noncompliance and 
          for conciliation.
1534.5  Enforcement procedures.

    Authority: Secs. 9 and 17 of the Alaska Natural Gas Transportation 
Act, 15 U.S.C. 719g and o; 43 CFR 34.10(d); and secs. 102 and 202 of 
Reorganization Plan No. 1 of 1979.

    Source: 46 FR 22337, Apr. 16, 1981, unless otherwise noted.



Sec. 1534.1  General.

    (a) Pursuant to Sec. 34.10(d) of the underlying regulations (43 CFR 
part 34) and to Section 9 of the Alaska Natural Gas Transportation Act 
(ANGTA), the Office of the Federal Inspector (OFI) has established in 
this part procedures for enforcing Section 17 of ANGTA, Condition 11 of 
the President's Decision (Decision and Report to Congress on the Alaska 
Natural Gas Transportation System, approved by H.J. Res. 621, Pub. L. 
95-158) and all implementing rules, regulations, orders, and actions 
taken thereunder (referred to throughout this part collectively as 
``these regulations'').
    (1) Section 1534.2 describes how the OFI will conduct the initial 
stage of compliance review.
    (2) Section 1534.3 describes how the OFI will conduct the initial 
stage of investigating complaints that these regulations have been 
violated.
    (3) Section 1534.4 describes the subsequent procedures for 
determining compliance or noncompliance, including preliminary findings 
and final determinations, and for pursuing conciliation and voluntary 
compliance, which are the same for both compliance review and also 
complaint investigation.
    (4) Section 1534.5 describes how the OFI will enforce these 
regulations once it has made a final determination that a recipient, 
contractor, or subcontractor is not in compliance.
    (b) The time limitations imposed by this part on the OFI and all 
parties to enforcement are binding, unless for good cause shown the OFI 
determines that an extension would be in the public interest.



Sec. 1534.2  Initial stage of compliance review.

    (a) The OFI will conduct initial periodic review (including possible 
spot on-site review) of selected recipients, contractors, and 
subcontractors to determine compliance with these regulations.
    (b) If, based on the initial periodic review conducted under 
paragraph (a) of this section, the OFI has reasonable cause to believe 
that these regulations are not being complied with, it will notify the 
respective recipient, contractor, or subcontractor by letter of a 
subsequent and formal on-site review, to be conducted after 15 calendar 
days of that notice. For formal on-site review just involving a 
contractor and/or subcontractor, the OFI will also forward a copy of the 
letter of on-site review to the corresponding recipient.
    (c) The contents of such a letter giving notice of the subsequent 
on-site review, issued under paragraph (b) of this section, as well as 
the remaining procedures for compliance review, are detailed in 
Sec. 1534.4 of this part.
    (d) After completion of initial periodic compliance review, the OFI 
will certify when a recipient, contractor, or subcontractor is found to 
be complying with these regulations. This certification of compliance 
does not, however, preclude a later determination of noncompliance, but 
only under the following circumstances:
    (1) In light of new or additional information which the OFI should 
not reasonably be expected to possess, the full facts were unknown 
during the compliance review; or
    (2) The OFI subsequently finds noncompliance for a later time 
period, not

[[Page 869]]

the subject of the current initial periodic review.



Sec. 1534.3  Initial stage of complaint investigation.

    (a) Complaints alleging violation of these regulations, in the 
nature of employment discrimination, will be handled by the Equal 
Employment Opportunity Commission (EEOC) with OFI coordination, pursuant 
to the Memorandum of Understanding informally agreed to and, after 
public comment, planned to be signed into effect by the two agencies.
    (1) The EEOC will process all complaints alleging employment 
discrimination within its jurisdiction. All other complaints will be 
processed, pursuant to paragraph (b) of this section.
    (2) Under the MOU the OFI may become involved in two specific 
aspects of employment discrimination proceedings handled by the EEOC. 
First, where it appears that the EEOC's efforts at conciliation may 
fail, the OFI may then attempt such conciliation. Second, when EEOC and 
OFI efforts at conciliation have failed the OFI, after consultation with 
the EEOC, may pursue its own enforcement action.
    (b) For all other complaints alleging violation of these 
regulations, the OFI will, within 35 calendar days of receipt, notify 
the pertinent recipient, contractor, or subcontractor by letter 
(appended to which will be a copy of the complaint) of the initiation of 
an investigation. For complaints just against a contractor and/or 
subcontractor, the OFI will also forward a copy of the complaint and 
notice to the corresponding recipient. At the same time the OFI will 
notify the complainant of this action and the procedures to be followed. 
Complaints to be investigated by the OFI must be in writing and contain 
the following:
    (1) Name, address, and telephone number of the complainant;
    (2) Name and address of the recipient, contractor, or subcontractor 
charged by the complainant;
    (3) Description of the acts alleged to violate these regulations; 
and
    (4) Any other pertinent information.
    (c) The contents of the letter initiating investigation, issued 
under paragraph (b) of this section, as well as the remaining procedures 
for complaint investigation, are detailed in Sec. 1534.4 immediately 
below.



Sec. 1534.4  Procedures for determination of compliance or noncompliance and for conciliation.

    (a) This Section governs how the OFI will process cases of possible 
non-compliance, whether generated through compliance review or complaint 
investigation, initiated under Secs. 1534.2 and 1534.3 respectively.
    (b) Upon finding reasonable cause to believe that there is 
noncompliance, during compliance review, or upon initiating 
investigation, after receipt of a complaint, the OFI will first notify 
the potentially noncompliant recipient, contractor, or subcontractor of 
the following:
    (1) A request for pertinent information and data;
    (2) A statement of the practices to be reviewed, and the programs or 
activities affected by the compliance review or complaint investigation;
    (3) An opportunity to respond in writing:
    (i) To explain, support, or otherwise address the practices to be 
reviewed or
    (ii) To rebut or deny the allegations made in the complaint; and
    (4) The schedule for review or investigation, including formal on-
site review or investigation to commence 15 calendar days after the 
notice.
    (c) Within 30 calendar days of completion of the formal on-site 
review or investigation (which itself will be conducted expeditiously by 
the OFI but under no set timetable), conducted as per paragraph (b)(4) 
of this section, the OFI will notify the pertinent recipient, 
contractor, or subcontractor in writing of:
    (1) Preliminary findings as to compliance or noncompliance; any 
complainant will receive notice of the preliminary findings;
    (2) Where appropriate, recommendations for achieving voluntary 
compliance;
    (3) The opportunity to request that the OFI engage in voluntary 
compliance negotiations (to be completed within 20 calendar days of this 
written notice) prior to a final determination of compliance or 
noncompliance; and

[[Page 870]]

    (4) Where a contractor or subcontractor alone appears to be in 
possible noncompliance, the obligation on the part of the appropriate 
recipient (after notice of the preliminary finding directed to the 
contractor or subcontractor) to assist the OFI in achieving voluntary 
compliance, failure for which may also be processed through these 
procedures to determine noncompliance with these regulations.
    (d) The OFI will render a final determination as to compliance or 
noncompliance within 45 calendar days of notice given under paragraph 
(c) of this section.
    (1) A final determination of noncompliance will be made in the 
following situations:
    (i) The preliminary recommendation for voluntary compliance is not 
followed;
    (ii) Voluntary compliance is not secured; or
    (iii) The preliminary finding of noncompliance is not shown to be 
false.
    (2) A final determination of noncompliance will contain the 
following provisions:
    (i) A statement with specificity of how the recipient, contractor, 
or subcontractor has violated these regulations;
    (ii) A detailed basis for this finding of noncompliance, including 
how the recipient, contractor, or subcontractor failed to follow the 
recommendations contained in the OFI's preliminary finding, rendered 
pursuant to paragraph (c) of this section; and
    (iii) Final recommendations on remedial actions to bring the 
recipient, contractor, or subcontractor into compliance.
    (e) Where a final determination of noncompliance has been made under 
paragraph (d) of this section, the OFI will so advise the pertinent 
recipient, contractor, subcontractor, and any complainant in writing, 
giving an additional 10 calendar days in which to comply voluntarily. If 
the recipient, contractor, or subcontractor has not so complied, the OFI 
will institute enforcement proceedings under Sec. 1534.5 of this part.
    (f) In cases where complaints have been filed against contractors or 
subcontractors only, the OFI will notify the appropriate recipient 
pursuant to paragraphs (b), (c) and (e) of this section.
    (g) All voluntary compliance agreements, whether formed under 
paragraphs (c)(3) or (e) of this section, will have the following 
features:
    (1) The agreement shall:
    (i) Be in writing;
    (ii) Be signed by an authorized official of the recipient, 
contractor, or subcontractor and by the OFI designated official;
    (iii) Contain commitments regarding the precise remedial action to 
be taken and the dates for completion of those remedial actions, 
including commitments to eliminate all discriminatory practices and 
conditions; and
    (iv) Include a provision that breach of the agreement may result in 
further enforcement actions by the OFI.
    (2) Upon execution of the agreement, the OFI will certify 
compliance, conditioned upon:
    (i) Performance of the commitments given under paragraph (f)(1)(iii) 
of this section, and
    (ii) The full facts being known at the time the agreement was 
executed.
    (h) In the case of complaints, the OFI will notify the complainant 
of actions taken, including:
    (1) Final determination of noncompliance, and subsequent enforcement 
efforts;
    (2) Finding of compliance;
    (3) Achieving voluntary compliance through conciliation; or
    (4) Closing the investigation due to complainant's failure to 
cooperate or provide necessary information.



Sec. 1534.5  Enforcement procedures.

    (a) The OFI will act pursuant to this section when it has rendered a 
final determination of noncompliance, under Sec. 1534.4(d), and the 
noncompliant recipient, contractor, or subcontractor has failed to 
comply voluntarily within 10 days thereafter, under Sec. 1534.4(e). In 
addition, the OFI will act pursuant to this section when acting against 
certain employment discrimination, based on determinations of the EEOC, 
as per Sec. 1534.3(a)(2).
    (b) Except as provided in paragraph (c) of this section, the OFI 
will seek judicial enforcement in the United

[[Page 871]]

States District Court having venue, seeking appropriate injunctive and 
civil fine relief, as provided in 43 CFR 34.11(b) of the 43 CFR part 34 
regulations. Such civil action will be commenced following consultation 
and coordination between the OFI General Counsel and the Civil Rights 
Division of the Department of Justice and where appropriate, the EEOC.
    (c) In the event that the OFI finds, as part of its final 
determination made under Sec. 1534.4(d), that a recipient, contractor, 
or subcontractor has so consistently and substantially failed to meet 
its approved affirmative action plan that the overall equal opportunity 
goals of section 17 of ANGTA and the 43 CFR part 34 regulations are in 
jeopardy, the OFI may issue a compliance order stopping work on the 
particular ANGTS activity until compliance is assured. The procedure for 
issuing such a compliance order entails the following:
    (1) Within 10 calendar days of the final determination of 
noncompliance and related 10-day compliance period (as defined in 
paragraph (a) of this section), the OFI will issue a show cause order 
why the noncompliant recipient, contractor, or subcontractor should not 
immediately be subject to a compliance order and work stoppage. The show 
cause order will contain the following:
    (i) A summary of the final determination of noncompliance;
    (ii) A statement of the recipient, contractor, or subcontractor's 
subsequent failure to achieve voluntary compliance;
    (iii) A statement explaining why the violation of the approved 
affirmative action plan is so serious as to warrant work stoppage; and
    (iv) Notice that the OFI will hold an informal conference within 10 
calendar days.
    (2) The noncompliant recipient, contractor, or subcontractor must 
present oral argument and documentary support in rebuttal at this 
informal conference:
    (i) If the Director of the OFI Office of Equal Opportunity/Minority 
Business Enterprise or designee, who will preside over the informal 
conference, concludes that there are no material facts in issue, he or 
she will render in writing a recommended decision on the compliance 
order within 15 calendar days of the close of the informal conference.
    (ii) If the Director or designee concludes, however, that there are 
material facts in issue which cannot be ascertained without a hearing on 
the record, he or she will set the proceeding for hearing.
    (A) The General Counsel of the OFI or designee will preside over and 
conduct any such hearing on the record, under procedures established by 
the OFI for similar proceedings (10 CFR part 1508).
    (B) Following the presentation of oral and written evidence, an 
opportunity for cross-examination, and the filing of briefs, the General 
Counsel will render in writing a recommended decision on the compliance 
order within 15 calendar days of the close of the hearing.
    (3) The Federal Inspector or delegate will render a final decision 
on the compliance order. The following process will be employed:
    (i) Within 10 calendar days of issuance of a recommended decision, 
under either paragraph (c)(2)(i) or (c)(2)(ii) of this section, the 
respondent recipient, contractor, or subcontractor and, in the case of a 
complaint investigation, the complainant may file a brief agreeing with 
or contesting the recommended decision.
    (ii) Except when the record is unduly voluminous and complex, the 
Federal Inspector or delegate will issue in writing a final decision 
within 20 days of receiving the briefs.
    (iii) When the final decision is to issue a compliance order and to 
stop work, the Federal Inspector or delegate will institute the 
prescribed sanctions, unless the respondent has complied within 10 
calendar days of the compliance order.

[[Page 872]]



   PART 1535--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY OFFICE OF THE FEDERAL INSPECTOR FOR THE ALASKA 

NATURAL GAS TRANSPORTATION SYSTEM--Table of Contents




Sec.
1535.101  Purpose.
1535.102  Application.
1535.103  Definitions.
1535.104--1535.109  [Reserved]
1535.110  Self-evaluation.
1535.111  Notice.
1535.112--1535.129  [Reserved]
1535.130  General prohibitions against discrimination.
1535.131--1535.139  [Reserved]
1535.140  Employment.
1535.141--1535.148  [Reserved]
1535.149  Program accessibility: Discrimination prohibited.
1535.150  Program accessibility: Existing facilities
1535.151  Program accessibility: New construction and alterations.
1535.152--1535.159  [Reserved]
1535.160  Communications.
1535.161--1535.169  [Reserved]
1535.170  Compliance procedures.
1535.171--1535.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 51 FR 4579, Feb. 5, 1986, unless otherwise noted.



Sec. 1535.101  Purpose.

    This part effectuates section 119 of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978, which amended section 504 of the Rehabilitation Act of 1973 to 
prohibit discrimination on the basis of handicap in programs or 
activities conducted by Executive agencies or the United States Postal 
Service.



Sec. 1535.102  Application.

    This part applies to all programs or activities conducted by the 
agency.



Sec. 1535.103  Definitions.

    For purposes of this part, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, telecommunications devices and other similar services 
and devices. Auxiliary aids useful for persons with impaired hearing 
include telephone handset amplifiers, telephones compatible with hearing 
aids, telecommunication devices for deaf persons (TDD's), interpreters, 
notetakers, written materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Handicapped person means any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment.
    As used in this definition, the phrase:
    (l) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one of more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning

[[Page 873]]

disabilities. The term ``physical or mental impairment'' includes, but 
is not limited to, such diseases and conditions as orthopedic, visual, 
speech, and hearing impairments, cerebral palsy, epilepsy, muscular 
dystrophy, multiple sclerosis, cancer, heart disease, diabetes, mental 
retardation, emotional illness, and drug addition and alcholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in subparagraph (1) of 
this definition but is treated by the agency as having such an 
impairment.
    Qualified handicapped person means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, a handicapped person who meets the essential eligibility 
requirements and who can achieve the purpose of the program or activity 
without modifications in the program or activity that the agency can 
demonstrate would result in a fundamental alteration in its nature; or
    (2) With respect to any other program or activity, a handicapped 
person who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity.
    (3) Qualified handicapped person is defined for purposes of 
employment in 29 CFR 1613.702(f), which is made applicable to this part 
by Sec. 1535.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617), 
and the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955). As used 
in this part, section 504 applies only to programs or activities 
conducted by Executive agencies and not to federally assisted programs.
[51 FR 4579, Feb. 5, 1986; 51 FR 7543, Mar. 3, 1986]



Secs. 1535.104--1535.109  [Reserved]



Sec. 1535.110  Self-evaluation.

    (a) The agency shall, by April 9, 1987, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including handicapped persons or organizations representing handicapped 
persons, to participate in the self-evaluation process by submitting 
comments (both oral and written).
    (c) The agency shall, until three years following the completion of 
the self-evaluation, maintain on file and make available for public 
inspections:
    (1) A description of areas examined and any problems identified, and
    (2) A description of any modifications made.



Sec. 1535.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the head of the agency 
finds necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this regulation.

[[Page 874]]



Secs. 1535.112--1535.129  [Reserved]



Sec. 1535.130  General prohibitions against discrimination.

    (a) No qualified handicapped person shall, on the basis of handicap, 
be excluded from participation in, be denied the benefits of, or 
otherwise be subjected to discrimination under any program or activity 
conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualfied handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective in affording equal opportunity to 
obtain the same result, to gain the same benefit, or to reach the same 
level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
handicapped persons or to any class of handicapped persons than is 
provided to others unless such action is necessary to provide qualified 
handicapped persons with aid, benefits, or services that are as 
effective as those provided to others;
    (v) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity enjoyed by others 
receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified handicapped person the 
opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to handicapped persons.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to handicapped persons.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified handicapped persons to 
discrimination on the basis of handicap.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to handicapped 
persons or the exclusion of a specific class of handicapped persons from 
a program limited by Federal statute or Executive order to a different 
class of handicapped persons is not prohibited by this part.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified handicapped 
persons.



Secs. 1535.131--1535.139  [Reserved]



Sec. 1535.140  Employment.

    No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
conducted by the agency. The definitions, requirements, and procedures 
of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791), as 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613, shall apply to employment in federally conducted programs or 
activities.

[[Page 875]]



Secs. 1535.141--1535.148  [Reserved]



Sec. 1535.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 1535.150, no qualified 
handicapped person shall, because the agency's facilities are 
inaccessible to or unusable by handicapped persons, be denied the 
benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity conducted by 
the agency.



Sec. 1535.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by handicapped persons; or
    (2) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 1535.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
handicapped persons receive the benefits and services of the program or 
activity.
    (b) Methods. The agency may comply with the requirements of this 
section through such means as redesign of equipment, reassignment of 
services to accessible buildings, assignment of aides to beneficiaries, 
home visits, delivery of services at alternate accessible sites, 
alteration of existing facilities and construction of new facilities, 
use of accessible rolling stock, or any other methods that result in 
making its programs or activities readily accessible to and usable by 
handicapped persons. The agency is nor required to make structural 
changes in existing facilities where other methods are effective in 
achieving compliance with this section. The agency, in making 
alterations to existing buildings, shall meet accessibility requirements 
to the extent compelled by the Architectural Barriers Act of 1968, as 
amended (42 U.S.C. 4151-4157), and any regulations implementing it. In 
choosing among available methods for meeting the requirements of this 
section, the agency shall give priority to those methods that offer 
programs and activities to qualified handicapped persons in the most 
integrated setting appropriate.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by June 6, 1986, except that 
where structural changes in facilities are undertaken, such changes 
shall be made by April 7, 1989, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by October 7, 1986, a transition plan setting 
forth the steps necessary to complete such changes. The agency shall 
provide an opportunity to interested persons, including handicapped 
persons or organizations representing handicapped persons, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--
    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to handicapped 
persons;

[[Page 876]]

    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.
[51 FR 4579, Feb. 5, 1986; 51 FR 7543, Mar. 3, 1986]



Sec. 1535.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
handicapped persons. The definitions, requirements, and standards of the 
Architectural Barriers Act (42 U.S.C. 4151-4157), as established in 41 
CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Secs. 1535.152--1535.159  [Reserved]



Sec. 1535.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford a handicapped person an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
handicapped person.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 1535.160 would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the agency head or 
his or her designee after considering all agency resources available for 
use in the funding and operation of the conducted program or activity, 
and must be accompanied by a written statement of the reasons for 
reaching that conclusion. If an action required to comply with this 
section would result in such an alteration or such burdens, the agency 
shall take any other action that would not result in such an alteration 
or such burdens but would nevertheless ensure that, to the maximum 
extent possible, handicapped persons receive the benefits and services 
of the program or activity.



Secs. 1535.161--1535.169  [Reserved]



Sec. 1535.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.
    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity

[[Page 877]]

Commission in 29 CFR part 1613 pursuant to section 501 of the 
Rehabilitation Act of 1973 (29 U.S.C. 791).
    (c) Legal Counsel, Office of the Federal Inspector of the Alaska 
Natural Gas Transportation System shall be responsible for coordinating 
implementation of this section. Complaints may be sent to Legal Counsel, 
Office of the Federal Inspector of the Alaska Natural Gas, 1000 
Independence Avenue, SW., Washington, D.C. 20585.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), or section 502 of the 
Rehabilitation Act of 1973, as amended (29 U.S.C. 792), is not readily 
accessible to and usable by handicapped persons.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found;
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by Sec. 1535.170(g). The agency may 
extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.
[51 FR 4579, Feb. 5, 1986, as amended at 51 FR 4574, Feb. 5, 1986]



Secs. 1535.171--1535.999  [Reserved]

[[Page 879]]



          CHAPTER XVII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD




  --------------------------------------------------------------------
Part                                                                Page
1703            Public information and requests.............         880
1704            Rules Implementing the Government in the 
                    Sunshine Act............................         889
1705            Privacy Act.................................         893
1706            Organizational and consultant conflicts of 
                    interests...............................         895

[[Page 880]]



PART 1703--PUBLIC INFORMATION AND REQUESTS--Table of Contents




Sec.
1703.101  Scope.
1703.102  Definitions; words denoting number, gender and tense.
1703.103  Requests for board records available through the public 
          reading room.
1703.104  Board records exempt from public disclosure.
1703.105  Requests for board records not available through the public 
          reading room (FOIA requests).
1703.106  Requests for waiver or reduction of fees.
1703.107  Fees for record requests.
1703.108  Processing of FOIA requests.
1703.109  Procedure for appeal of denial of requests for board records 
          and denial of requests for fee waiver or reduction.
1703.110  Requests for classified records.
1703.111  Requests for privileged treatment of documents submitted to 
          the board.
1703.112  Computation of time.

    Authority: 5 U.S.C. 552; Executive Order 12600, 3 CFR, 1987 Comp., 
p. 235; 42 U.S.C. 2286, 2286b(c).

    Source: 56 FR 21261, May 8, 1991, unless otherwise noted.



Sec. 1703.101  Scope.

    This part contains the Board's regulations implementing the Freedom 
of Information Act, 5 U.S.C. 552.



Sec. 1703.102  Definitions; words denoting number, gender and tense.

    Agency record is a record in the possession and control of the Board 
that is associated with Board business. Agency records do not include 
records such as:
    (1) Publicly available books, periodicals, or other publications 
that are owned or copyrighted by non-federal sources;
    (2) Records solely in the possession and control of Board 
contractors;
    (3) Personal records in the possession of Board personnel that have 
not been circulated, were not required by the Board to be created or 
retained, and may be retained or discarded at the author's sole 
discretion. In determining whether such records are agency records the 
Board shall consider whether, and to what extent, the records were used 
in agency business;
    (4) Records of a personal nature that are not associated with any 
Board business; or
    (5) Non-substantive information in the calendar or schedule books of 
the Chairman or Members, uncirculated except for typing or recording 
purposes.
    Board means the Defense Nuclear Facilities Safety Board.
    Chairman means the Chairman of the Board.
    Designated FOIA Officer means the person designated by the Board to 
administer the Board's activities pursuant to the regulations in this 
part. The Designated FOIA Officer shall also be the Board officer having 
custody of or responsibility for agency records in the possession of the 
Board and shall be the Board officer responsible for authorizing or 
denying production of records upon requests filed pursuant to 
Sec. 1703.105.
    General Counsel means the chief legal officer of the Board.
    General Manager means the chief administrative officer of the Board.
    Member means a Member of the Board.
    In determining the meaning of any provision of this part, unless the 
context indicates otherwise: the singular includes the plural; the 
plural includes the singular; the present tense includes the future 
tense; and words of one gender include the other gender.



Sec. 1703.103  Requests for board records available through the public reading room.

    (a) A Public Reading Room will be maintained at the Board's 
headquarters and will be open between 8:30 a.m. and 4:30 p.m. Mondays 
through Fridays, with the exception of legal holidays. Documents may be 
obtained in person or by written or telephonic request from the Public 
Reading Room by reasonably describing the records sought. The purpose of 
the Public Reading Room is to provide easy accessibility to a 
substantial portion of the Board's records. The Board considers that 
documents available through the Public Reading Room have been placed in 
the public domain.
    (b) The public records of the Board that are available for 
inspection and copying upon request in the Public Reading Room include:
    (1) The Board's rules and regulations;

[[Page 881]]

    (2) Statements of policy adopted by the Board.
    (3) Board recommendations; the Secretary of Energy's response, any 
final decision, and implementation plans regarding Board 
recommendations; and interested person's comments, data, views, or 
arguments to the Board concerning its recommendations and the Secretary 
of Energy's response and final decision;
    (4) Transcripts of public hearings and any Board correspondence 
related thereto;
    (5) Recordings or transcripts of Board meetings that were closed 
under 10 CFR part 1704, where the Board subsequently determines under 10 
CFR 1704.9 that the recordings or transcripts may be made publicly 
available;
    (6) Board orders, decisions, notices, and other actions in a public 
hearing;
    (7) Board correspondence, except that which is exempt from mandatory 
public disclosure under Sec. 1703.104;
    (8) Copies of the filings, certifications, pleadings, records, 
briefs, orders, judgments, decrees, and mandates in court proceedings to 
which the Board is a party and the correspondence with the courts or 
clerks of court;
    (9) Those of the Board's Administrative Directives that affect 
members of the public;
    (10) Index of the documents identified in this section, but not 
including drafts thereof; and
    (11) Annual reports to Congress in which the Board's operations 
during a past fiscal year are described.
    (12) Copies of records released pursuant to FOIA requests, along 
with an index to these records. The format will generally be the same as 
the format of the released records.
[56 FR 21261, May 8, 1991, as amended at 62 FR 66815, Dec. 22, 1997]

    Effective Date Note: At 62 FR 66815, Dec. 22, 1997, Sec. 1703.103 
was amended by adding paragraph (b)(12), effective Jan. 21, 1998.



Sec. 1703.104  Board records exempt from public disclosure.

    The following records are exempt from public disclosure:
    (a)(1) Records specifically authorized under criteria established by 
an Executive Order to be kept secret in the interest of national defense 
or foreign policy, and
    (2) Which are in fact properly classified pursuant to such Executive 
Order;
    (b) Records related solely to the internal personnel rules and 
practices of an agency;
    (c) Records specifically exempted from disclosure by statute, 
provided that such statute:
    (1) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue, or
    (2) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (d) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (e) Interagency or intraagency memoranda or letters which would not 
be available by law to a party other than an agency in litigation with 
the Board;
    (f) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (g) Records of information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:
    (1) Could reasonably be expected to interfere with enforcement 
proceedings,
    (2) Would deprive a person of a right to a fair trial or an 
impartial adjudication,
    (3) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy,
    (4) Could reasonably be expected to disclose the identity of a 
confidential source, including a state, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation, or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source,

[[Page 882]]

    (5) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law, or
    (6) Could reasonably be expected to endanger the life or physical 
safety of any individual;



Sec. 1703.105  Requests for board records not available through the public reading room (FOIA Requests).

    (a) Upon the request of any person, the Board shall make available 
for public inspection and copying any reasonably described agency record 
in the possession and control of the Board, but not available through 
the Public Reading Room, subject to the provisions of this part. If a 
member of the public files a request with the Board under the FOIA for 
records that the Board determines are available through the Public 
Reading Room, the Board will treat the request under the simplified 
procedures of Sec. 1703.103.
    (b)(1) A person may request access to Board records that are not 
available through the Public Reading Room by using the following 
procedures:
    (i) The request must be in writing and must describe the records 
requested to enable Board personnel to locate them with a reasonable 
amount of effort. Where possible, specific information regarding dates, 
titles, file designations, and other information which may help identify 
the records should be supplied by the requester, including the names and 
titles of any Board personnel who have been contacted regarding the 
request prior to the submission of the written request.
    (ii) A request for all records falling within a reasonably specific 
and well-defined category shall be regarded as conforming to the 
statutory requirement that records be reasonably described. The request 
must enable the Board to identify and locate the records by a process 
that is not unreasonably burdensome or disruptive of Board operations.
    (2) The request should be addressed to the Designated FOIA Officer 
and clearly marked ``Freedom of Information Act Request.'' The address 
for such requests is: Designated FOIA Officer, Defense Nuclear 
Facilities Safety Board, 625 Indiana Avenue, NW., suite 700, Washington, 
DC 20004. For purposes of calculating the time for response to the 
request under Sec. 1703.108, the request shall not be deemed to have 
been received until it is in the possession of the Designated FOIA 
Officer or his designee.
    (3) The request must include:
    (i) A statement by the requester of a willingness to pay the fee 
applicable under Sec. 1703.107(b), or to pay that fee not to exceed a 
specific amount, or
    (ii) A request for waiver or reduction of fees.
    (4) No request shall be deemed to have been received until the Board 
has:
    (i) Received a statement of willingness to pay, as indicated in 
Sec. 1703.105(b)(3)(i), or
    (ii) Received and approved a request for waiver or reduction of 
fees. However, the FOIA request shall be deemed to have been received if 
the request for waiver or reduction of fees includes a statement of 
willingness to pay the fee anticipated to be incurred in processing the 
request under this section, or to pay that fee not to exceed a specific 
amount, should the request for fee waiver or reduction be denied.
    (c) with respect to records in the files of the Board that have been 
obtained from other federal agencies:
    (1) Where the record originated in another federal agency, the 
Designated FOIA Officer shall refer the request to that agency and so 
inform the requester, unless the originating agency agrees to direct 
release by the Board.
    (2) Requests for Board records containing information received from 
another agency, or records prepared jointly by the Board and other 
agencies, shall be treated as requests for Board records. The Designated 
FOIA Officer shall, however, coordinate with the appropriate official of 
the other agency. The notice of determination to the requester, in the 
event part or all of the record is recommended for denial by the other 
agency, shall cite the other agency Denying Official as well as the 
Designated FOIA Officer if a denial by the Board is also involved.

[[Page 883]]

    (d) If a request does not reasonably describe the records sought, as 
provided in paragraph (b) of this section, the Board response shall 
specify the reasons why the request failed to meet those requirements 
and shall offer the requester the opportunity to confer with 
knowledgeable Board personnel in an attempt to restate the request. If 
additional information is needed from the requester to render records 
reasonably described, any restated request submitted by the requester 
shall be treated as an initial request for purposes of calculating the 
time for response under Sec. 1703.108.
    (e)(1) Expedited processing. A person may request expedited 
processing of an FOIA request when a compelling need for the requested 
records has been shown. ``Compelling need'' means:
    (i) Circumstances in which the lack of expedited treatment could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (ii) An urgency to inform the public about an actual or alleged 
Federal Government activity, if the request is made by a person 
primarily engaged in disseminating information; or
    (iii) The records pertain to an immediate source of risk to the 
public health and safety or worker safety at a defense nuclear facility 
under the Board's jurisdiction.
    (2) A requester seeking expedited processing should so indicate in 
the initial request, and should state all facts supporting the need to 
obtain the requested records rapidly. The requester must also state that 
these facts are true and correct to the best of the requester's 
knowledge and belief.
    (3) When a request for expedited processing is received, the Board 
will respond within ten calendar days from the date of receipt of the 
request, stating whether or not the request has been granted. If the 
request for expedited processing is denied, any appeal of that decision 
will be acted upon expeditiously.
[56 FR 21261, May 8, 1991, as amended at 62 FR 66815, Dec. 22, 1997]

    Effective Date Note: At 62 FR 66815, Dec. 22, 1997, Sec. 1703.105 
was amended by adding paragraph (e), effective Jan. 21, 1998.



Sec. 1703.106  Requests for waiver or reduction of fees.

    (a) The Board shall collect fees for record requests made under 
Sec. 1703.105, as provided in Sec. 1703.107(b), unless a requester 
submits a request in writing for a waiver or reduction of fees. The 
Designated FOIA Officer shall make a determination on a fee waiver or 
reduction request within five working days of the request coming into 
his possession. No determination shall be made that a fee waiver or 
reduction request should be denied, until the Designated FOIA Officer 
has consulted with the General Counsel's Office. If the determination is 
made that the written request for a waiver or reduction of fees does not 
meet the requirements of this section, the Designated FOIA Officer shall 
inform the requester that the request for waiver or reduction of fees is 
being denied and set forth his appeal rights under Sec. 1703.109.
    (b) A person requesting the board to waive or reduce search, review, 
or duplication fees shall:
    (1) Describe the purpose for which the requester intends to use the 
requested information;
    (2) Explain the extent to which the requester will extract and 
analyze the substantive content of the agency record;
    (3) Describe the nature of the specific activity or research in 
which the agency records will be used and the specific qualifications 
the requester possesses to utilize information for the intended use in 
such a way that it will contribute to public understanding;
    (4) Describe the likely impact of disclosure of the requested 
records on the public's understanding of the subject as compared to the 
level of understanding of the subject existing prior to disclosure;
    (5) Describe the size and nature of the public to whose 
understanding a contribution will be made;
    (6) Describe the intended means of dissemination to the general 
public;
    (7) Indicate if public access to information will be provided free 
of charge or provided for an access or publication fee; and
    (8) Describe any commercial or private interest the requester or any

[[Page 884]]

other party has in the agency records sought.
    (c) The Board shall waive or reduce fees, without further specific 
information from the requester if, from information provided with the 
request for agency records made under Sec. 1703.105, it can determine 
that disclosure of the information in the agency records is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the Government 
and is not primarily in the commercial interest of the requester.
    (d) In making a determination regarding a request for a waiver or 
reduction of fees, the Board shall consider the following factors:
    (1) Whether the subject of the requested agency records concerns the 
operations or activities of the Government;
    (2) Whether disclosure of the information is likely to contribute 
significantly to public understanding of Government operations or 
activities;
    (3) Whether, and the extent to which, the requester has a commercial 
interest that would be furthered by the disclosure of the requested 
agency records; and
    (4) Whether the magnitude of the identified commercial interest of 
the requester is sufficiently large, in comparison with the public 
interest in disclosure, that disclosure is primarily in the commercial 
interest of the requester.



Sec. 1703.107  Fees for record requests.

    (a) Fees for records available through the Public Reading Room.
    (1) With the exception of copies of transcripts of Board public 
hearings addressed in paragraph (a)(2) of this section, the fees charged 
shall be limited to costs of duplication of the requested records. The 
Board shall either duplicate the requested records or have them 
duplicated by a commercial contractor. If the Board duplicates the 
records, it shall not charge the requester for the associated labor 
costs. A schedule of fees for this duplication service shall be 
prescribed in accordance with paragraph (b)(6) of this section. A person 
may obtain a copy of the schedule of fees in person or by mail from the 
Public Reading Room. There shall be no charge for responses consisting 
of ten or fewer pages.
    (2) Transcripts of Board public hearings are made by private 
contractors. Interested persons may obtain copies of public hearing 
transcripts from the contractor at prices set in the contract, or 
through the duplication service noted in paragraph (a) of this section, 
if the particular contract so permits. Copies of the contracts shall be 
available for public inspection in the Public Reading Room.
    (3) Requests for certification of copies of official Board records 
must be accompanied by a fee of $5.00 per document. Inquiries and orders 
may be made to the Public Reading Room in person or by mail.
    (b) Fees for records not available through the Public Reading Room 
(FOIA requests).
    (1) Definitions. For the purpose of paragraph (b) of this section:
    Commercial use request means a request from or on behalf of one who 
seeks information for a use or purpose that furthers commercial, trade, 
or profit interests as these phrases are commonly known or have been 
interpreted by the courts in the context of the FOIA;
    Direct costs means those expenditures which the Board incurs in 
search, review and duplication, as applicable to different categories of 
requesters, to respond to requests under Sec. 1703.105. Direct costs 
include, for example, the average hourly salary and projected benefits 
costs of Board employees applied to time spent in responding to the 
request and the cost of operating duplicating machinery. Not included in 
direct costs are overhead expenses such as cost of space, and heating or 
lighting the facility in which the Board records are stored.
    Educational institution refers to a preschool, a public or private 
elementary or secondary school, an institution of graduate higher 
education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program of scholarly research;

[[Page 885]]

    Noncommercial scientific institution refers to an institution that 
is not operated on a commercial basis and which is operated solely for 
the purpose of conducting scientific research the results of which are 
not intended to promote any particular product or industry;
    Representative of the news media refers to any person actively 
gathering news for an entity that is organized and operated to publish 
or broadcast news to the public. The term news means information that is 
about current events or that would be of current interest to the public. 
Examples of news media entities include television or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only in those instances when the periodicals can qualify as 
disseminations of ``news'') who make their products available for 
purchase or subscription by the general public. These examples are not 
intended to be all-inclusive. Moreover, as traditional methods of news 
delivery evolve (e.g., electronic dissemination of newspapers through 
telecommunications services), such alternative media may be included in 
this category. A ``freelance'' journalist may be regarded as working for 
a news organization if the journalist can demonstrate a solid basis for 
expecting publication through that organization, even though the 
journalist is not actually employed by the news organization. A 
publication contract would be the clearest proof, but the Board may also 
look to the past publication record of a requester in making this 
determination.
    (2) Fees. (i) If documents are requested for commercial use, the 
Board shall charge the average hourly pay rate for Board employees, plus 
the average hourly projected benefits cost, for document search time and 
for document review time, and the costs of duplication as established in 
the schedule of fees referenced in paragraph (b)(6) of this section.
    (ii) If documents are not sought for commercial use and the request 
is made by an educational or noncommercial scientific institution, whose 
purpose is scholarly or scientific research, or a representative of the 
news media, the Board's charges shall be limited to the direct costs of 
duplication as established in the schedule of fees referenced in 
paragraph (b)(6) of this section. There shall be no charge for the first 
100 pages of duplication.
    (iii) For a request not described in paragraphs (b)(2) (i) or (ii) 
of this section the Board shall charge the average hourly pay rate for 
Board employees, plus the average hourly projected benefits cost, for 
document search time, and the direct costs of duplication as established 
in the schedule of fees referenced in paragraph (b)(6) of this section. 
There shall be no charge for document review time and the first 100 
pages of reproduction and the first two hours of search time will be 
furnished without charge.
    (iv) If documents are mailed, requesters shall be charged fees based 
on the current postage or express delivery service rates.
    (v) The Board, or its designee, may establish minimum fees below 
which no charges will be collected, if it determines that the costs of 
routine collection and processing of the fees are likely to equal or 
exceed the amount of the fees. If total fees determined by the Board for 
a FOIA request would be less than the appropriate threshold, the Board 
shall not charge the requesters.
    (vi) Payment of fees must be by check or money order made payable to 
the U.S. Treasury.
    (vii) Requesters may not file multiple requests at the same time, 
each seeking portions of a document or documents, solely in order to 
avoid payment of fees. When the Board reasonably believes that a 
requester, or a group of requesters acting in concert, is attempting to 
break a request down into a series of requests for the purpose of 
evading assessment of fees, the Board may aggregate any such requests 
and charge the requester accordingly. The Board shall not, however, 
aggregate multiple requests on unrelated subjects from a requester.
    (viii) Whenever the Board estimates that duplication or search costs 
are likely to exceed $25, it shall notify the requester of the estimated 
costs, unless the requester has indicated in advance his willingness to 
pay fees as high as those anticipated. Such a notice shall offer the 
requester an opportunity to

[[Page 886]]

confer with the Board personnel with the object of reformulating the 
request to meet the requester's needs at a lower cost.
    (3) Fees for unsuccessful search. The Board may assess charges for 
time spent searching, even if it fails to locate the records, or if 
records located are determined to be exempt from disclosure.
    (4) Advance payments. (i) If the Board estimates or determines that 
allowable charges that a requester may be required to pay are likely to 
exceed $250, the Board shall notify such requester of the estimated cost 
and either require satisfactory assurance of full payment where the 
requester has a history of prompt payment of fees, or require advance 
payment of the charges if a requester has no payment history.
    (ii) If a requester has previously failed to pay a fee charged in a 
timely fashion, the Board shall require the requester to pay the full 
amount owed plus any applicable interest, and to make an advance payment 
of the full amount of the estimated fee before the Board will begin to 
process a new request or a pending request from that requester.
    (iii) When the Board requires advance payment under this paragraph, 
the administrative time limits prescribed in Sec. 1703.108(b) will begin 
only after the Board has received the fee payments.
    (5) Debt collection. The Board itself may endeavor to collect unpaid 
FOIA fees, or may refer unpaid FOIA invoices to the General Services 
Administration, or other federal agency performing financial management 
services for the Board, for collection.
    (6) Annual adjustment of fees.--(i) Update and publication. The 
Board, by its designee, the General Manager, shall promulgate a schedule 
of fees and the average hourly pay rates and average hourly projected 
benefits cost and will update that schedule once every twelve months. 
The General Manager shall publish the schedule for public comment in the 
Federal Register.
    (ii) Payment of updated fees. The fee applicable to a particular 
FOIA request will be the fee in effect on the date that the request is 
received.

    Effective Date Note: At 62 FR 66816, Dec. 22, 1997, Sec. 1703.107 
was amended by removing and reserving paragraph (b)(2)(iv), effective 
Jan. 21, 1998.



Sec. 1703.108  Processing of FOIA requests.

    (a) Where a request complies with Sec. 1703.105 as to specificity 
and statement of willingness to pay or request for fee waiver or 
reduction, the Designated FOIA Officer shall acknowledge receipt of the 
request and commence processing of the request. The Designated FOIA 
Officer shall prepare a written response:
    (1) Granting the request,
    (2) Denying the request,
    (3) Granting or denying it in part,
    (4) Stating that the request has been referred to another agency 
under Sec. 1703.105, or
    (5) Informing the requester that responsive records cannot be 
located or do not exist.
    (b) Action pursuant to this section to provide access to requested 
records shall be taken within twenty working days. This time period may 
be extended up to ten additional working days, in unusual circumstances, 
by written notice to the requester. If the Board will be unable to 
satisfy the request in this additional period of time, the requester 
will be so notified and given the opportunity to--
    (1) Limit the scope of the request so that it can be processed 
within the time limit, or
    (2) Arrange with the Designated FOIA Officer an alternative time 
frame for processing the original request or a modified request.
    (c) For purposes of this section and Sec. 1703.109, the term unusual 
circumstances may include but is not limited to the following:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
Board's Washington, DC offices:
    (2) The need to search for, collect and appropriately examine a 
voluminous amount of separate and distinct records which may be 
responsive to a single request; or
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency pursuant to Sec. 1703.105(d).

[[Page 887]]

    (d) If no determination has been made at the end of the ten day 
period, or the last extension thereof, the requester may deem his 
administrative remedies to have been exhausted, giving rise to a right 
of review in a district court of the United States as specified in 5 
U.S.C. 552(a)(4). When no determination can be made within the 
applicable time limit, the Board will nevertheless continue to process 
the request. If the Board is unable to provide a response within the 
statutory period, the Designated FOIA Officer shall inform the requester 
of the reason for the delay; the date on which a determination may be 
expected to be made; and that the requester can seek remedy through the 
courts, but shall ask the requester to forgo such action until a 
determination is made.
    (e) Nothing in this part shall preclude the Designated FOIA Officer 
and a requester from agreeing to an extension of time for the initial 
determination on a request. Any such agreement shall be confirmed in 
writing and shall clearly specify the total time agreed upon.
    (f) The procedure for appeal of denial of a request for Board 
records is set forth in Sec. 1703.109.
[56 FR 21261, May 8, 1991, as amended at 62 FR 66816, Dec. 22, 1997]

    Effective Date Note: At 62 FR 66816, Dec. 22, 1997, Sec. 1703.108(b) 
was revised, effective Jan. 21, 1998. For the convenience of the user, 
the superseded text is set forth as follows:

Sec. 1703.108  Processing of FOIA requests.

                                * * * * *

    (b) Action pursuant to this section to provide access to requested 
records shall be taken within ten working days of receipt of a request 
for Board records, as defined in Sec. 1703.105, except that, if unusual 
circumstances require an extension of time before a decision on a 
request can be reached and the person requesting records is promptly 
informed in writing by the Designated FOIA Officer of the reasons for 
such extension and the date on which a determination is expected to be 
made, the Designated FOIA Officer may take an extension not to exceed 
ten working days. In the event of a request for fee waiver or reduction, 
unless the requester has stated a willingness to pay the fee anticipated 
to be incurred in processing its request under Sec. 1703.105, or to pay 
that fee not to exceed a specific amount, should his request for fee 
waiver or reduction be denied, the period for action under this 
paragraph shall begin to run from the date that the Designated FOIA 
Officer grants the waiver or reduction request.

                                * * * * *



Sec. 1703.109  Procedure for appeal of denial of requests for board records and denial of requests for fee waiver or reduction.

    (a)(1) A person whose request for access to records or request for 
fee waiver or reduction is denied in whole or in part may appeal that 
determination to the General Counsel within 30 days of the 
determination. Appeals filed pursuant to this section must be in 
writing, directed to the General Counsel at the address indicated in 
Sec. 1703.105(b)(2) and clearly marked ``Freedom of Information Act 
Appeal.'' Such an appeal received by the Board not addressed and marked 
as indicated in this paragraph will be so addressed and marked by Board 
personnel as soon as it is properly identified and then will be 
forwarded to the General Counsel. Appeals taken pursuant to this 
paragraph will be considered to be received upon actual receipt by the 
General Counsel.
    (2) The General Counsel shall make a determination with respect to 
any appeal within 20 working days after the receipt of such appeal. If, 
on appeal, the denial of the request for records or fee reduction is in 
whole or in part upheld, the General Counsel shall notify the person 
making such request of the provisions for judicial review of that 
determination.
    (b) In unusual circumstances, as defined in Sec. 1703.108(c), the 
time limits prescribed for deciding an appeal pursuant to this section 
may be extended by up to ten working days, by the General Counsel, who 
will send written notice to the requester setting forth the reasons for 
such extension and the expected determination date.



Sec. 1703.110  Requests for classified records.

    The Board may at any time be in possession of classified records and 
Unclassified Controlled Nuclear Information (UCNI) received from the 
Department of Energy or other federal agencies. The Board shall refer 
requests

[[Page 888]]

under Sec. 1703.105 for such records or information to the Department of 
Energy or other originating agency without making an independent 
determination as to the releasability of such documents. The Board shall 
refer requests for classified records in a manner consistent with 
Executive Order 12356, ``National Security Information,'' 3 CFR, 1982 
Comp., p. 166, or any superseding Executive Order. The Board shall refer 
requests for UCNI in a manner consistent with 42 U.S.C. 2168 and the 
Department of Energy's implementing regulations in 10 CFR part 1017 or 
any successor regulations.



Sec. 1703.111  Requests for privileged treatment of documents submitted to the board.

    (a) Scope. Any person submitting a document to the Board may request 
privileged treatment by claiming that some or all of the information 
contained in the document is exempt from the mandatory public disclosure 
requirements of FOIA and should otherwise be withheld from public 
disclosure.
    (b) Procedures. A person claiming that information is privileged 
under paragraph (a) of this section must file:
    (1) An application, accompanied by an affidavit, requesting 
privileged treatment for some or all of the information in a document, 
and stating the justification for nondisclosure of the information and 
addressing the factors set forth in paragraph (e) of this section;
    (2) The original document, boldly indicating on the front page 
``Contains Privileged Information--Do Not Release'' and identifying 
within the document the information for which the privileged treatment 
is sought;
    (3) Three copies of the redacted document (i.e., without the 
information for which privileged treatment is sought) and with a 
statement indicating that information has been removed for privileged 
treatment; and
    (4) The name, title, address, telephone number, and telecopy 
information of the person or persons to be contacted regarding the 
request for privileged treatment of documents submitted to the Board.
    (c) Effect of privilege claim. (1) The Designated FOIA Officer shall 
place documents for which privileged treatment is sought in accordance 
with paragraph (b) of this section in a nonpublic file, while the 
request for confidential treatment is pending. By placing documents in a 
nonpublic file, the Board is not making a determination on any claim for 
privilege. The Board retains the right to make determinations with 
regard to any claim of privilege, and the discretion to release 
information as necessary to carry out its responsibilities.
    (2) The Designated FOIA Officer shall place the request for 
privileged treatment described in paragraph (b)(1) of this section and a 
copy of the redacted document described in paragraph (b)(3) of this 
section in a public file while the request for privileged treatment is 
pending.
    (d) Notification of request and opportunity to comment. When a FOIA 
requester seeks a document for which privilege is claimed, the 
Designated FOIA Officer shall so notify the person who submitted the 
document and give that person an opportunity (at least five days) in 
which to comment in writing on the request. A copy of this notice shall 
be sent to the FOIA requester.
    (e) Factors to be considered by Board. In determining whether to 
grant the document privileged status and to deny the request for the 
document the Board shall consider:
    (1) Whether the information has been held in confidence by its 
owner;
    (2) Whether the information is of a type customarily held in 
confidence by its owner and whether there is a rational basis therefor;
    (3) Whether the information was transmitted to and received by the 
Board in confidence;
    (4) Whether the information is available in public sources; and
    (5) Whether public disclosure of the information sought to be 
withheld is likely to cause substantial harm to the competitive position 
of the owner of the information, taking into account the value of the 
information to the owner; the amount of effort or money, if any, 
expended by the owner in developing the information; and the ease or

[[Page 889]]

difficulty with which the information could be properly acquired or 
duplicated by others.
    (f) Notification before release. Notice of a decision by the 
Designated FOIA Officer to deny a claim of privilege, in whole or in 
part, shall be given to any person claiming that information is 
privileged no less than five days before public disclosure. The decision 
shall be made only after consultation with the General Counsel's Office. 
The notice shall briefly explain why the person's objections to 
disclosure were not sustained. A copy of this notice shall be sent to 
the FOIA requester.
    (g) Notification of suit in Federal courts. When a FOIA requester 
brings suit to compel disclosure of confidential commercial information, 
the Board shall notify the person who submitted documents containing 
such confidential commercial information of the suit.



Sec. 1703.112  Computation of time.

    In computing any period of time under this part, the day of the 
Board's action is not included. The last day of the period is included 
unless it is a Saturday, Sunday or legal holiday, in which case the 
period runs until the end of the next working day. Whenever a person has 
the right or is required to take some action within a prescribed period 
after notification by the Board and the notification is made by mail, 
five days shall be added to the prescribed period. Only two days shall 
be added when a notification is made by express mail.



PART 1704--RULES IMPLEMENTING THE GOVERNMENT IN THE SUNSHINE ACT--Table of Contents




Sec.
1704.1  Applicability.
1704.2  Definitions.
1704.3  Open meetings requirement.
1704.4  Grounds on which meetings may be closed or information may be 
          withheld.
1704.5  Procedures for closing meetings, or withholding information, and 
          requests by affected persons to close a meeting.
1704.6  Procedures for public announcement of meetings.
1704.7  Changes following public announcement.
1704.8  Transcripts, recordings, or minutes of closed meetings.
1704.9  Availability and retention of transcripts, recordings, and 
          minutes, and applicable fees.
1704.10  Severability.

    Authority: 5 U.S.C. 552b; 42 U.S.C. 2286, 2286b(c).

    Source: 56 FR 9609, Mar. 7, 1991, unless otherwise noted.



Sec. 1704.1  Applicability.

    (a) This part implements the provisions of the Government in the 
Sunshine Act (5 U.S.C. 552b). These procedures apply to meetings, as 
defined herein, of the Members of the Defense Nuclear Facilities Safety 
Board (Board). The Board may waive the provisions set forth in this part 
to the extent authorized by law.
    (b) Requests for all documents other than the transcripts, 
recordings, and minutes described in Sec. 1704.8 shall be governed by 
Board regulations pursuant to the Freedom of Information Act (5 U.S.C. 
552).



Sec. 1704.2  Definitions.

    As used in this part:
    (a) Chairman and Vice Chairman mean those Members designated by the 
President to serve in said positions, pursuant to 42 U.S.C. 2286(c).
    (b) Defense Nuclear Facilities Safety Board means the Board 
established under the National Defense Authorization Act, Fiscal Year 
1989.
    (c) General Counsel means the Board's principal legal officer, or an 
attorney serving as Acting General Counsel.
    (d) Meeting means the deliberations of three or more Members where 
such deliberations determine or result in the joint conduct or 
disposition of official Board business. A meeting does not include:
    (1) Notation voting or similar consideration of business for the 
purpose of recording of votes, whether by circulation of material to the 
Members individually in writing or by a polling of the Members 
individually by telephone.
    (2) Action by three or more Members to:
    (i) Open or to close a meeting or to release or to withhold 
information pursuant to Sec. 1704.5;

[[Page 890]]

    (ii) Set an agenda for a proposed meeting(s);
    (iii) Call a meeting on less than seven days' notice as permitted by 
Sec. 1704.6(b); or
    (iv) Change the subject matter or the determination to open or to 
close a publicly announced meeting under Sec. 1704.7(b).
    (3) A session attended by three or more Members for which the 
purpose is to have the Board's staff or expert consultants to the Board 
brief or otherwise provide information to the Board concerning any 
matters within the purview of the Board under its authorizing statute, 
provided that the Board does not engage in deliberations that determine 
or result in the joint conduct or disposition of official Board business 
on such matters.
    (4) A session attended by three or more Members for which the 
purpose is to have the Department of Energy (including its contractors) 
or other persons or organizations brief or otherwise provide information 
to the Board concerning any matters within the purview of the Board 
under its authorizing statute, provided that the Board does not engage 
in deliberations that determine or result in the joint conduct or 
disposition of official Board business on such matters.
    (5) A gathering of Members for the purpose of holding informal 
preliminary discussions or exchange of views which do not efectively 
predetermine official action.
    (e) Member means an individual duly appointed and confirmed to the 
collegial body, known as ``the Board.''



Sec. 1704.3  Open meetings requirement.

    (a) Any meetings of the Board, as defined in Sec. 1704.2, shall be 
conducted in accordance with this part. Except as provided in 
Sec. 1704.4, the Board's meetings, or portions thereof, shall be open to 
public observation.
    (b) The General Counsel or his designee will attend and monitor 
briefings described in Sec. 1704.2(d) (3)-(4) and informal preliminary 
discussions described in Sec. 1704.2(d)(5) to assure that those 
gatherings do not proceed to the point of becoming deliberations and 
``meetings'' within the meaning of the Sunshine Act.
    (c) The General Counsel or his designee will inform the Board 
Members if developing discussions at a briefing or gathering should be 
deferred until a notice of an open or closed meeting can be published in 
the Federal Register, and a meeting conducted pursuant to the Sunshine 
Act and these regulations.



Sec. 1704.4  Grounds on which meetings may be closed or information may be withheld.

    Except in a case where the Board finds that the public interest 
requires otherwise, a meeting may be closed and information pertinent to 
such meeting otherwise required by Sec. Sec. 1704.5, 1704.6, and 1704.7 
to be disclosed to the public may be withheld if the Board properly 
determines that such meeting or portion thereof or the disclosure of 
such information is likely to:
    (a) Disclose matters that are:
    (1) Specifically authorized under criteria established by an 
Executive Order to be kept secret in the interests of national defense 
or foreign policy; and
    (2) In fact properly classified pursuant to such Executive order. In 
making the determination that this exemption applies, the Board shall 
rely upon the classification assigned to a document by the Department of 
Energy or other originating agency;
    (b) Relate solely to the internal personnel rules and practices of 
the Board;
    (c) Disclose matters specifically exempted from disclosure by 
statute (other than 5 U.S.C. 552): Provided, That such statute:
    (1) Requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (2) Establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;

This exemption applies to Board meetings, or portions of meetings, 
involving deliberations regarding recommendations which, under 42 U.S.C. 
2286d (a) and (g)(3), may not be made publicly available until after 
they have been received by the Secretary of Energy or the President, 
respectively;

[[Page 891]]

    (d) Disclose trade secrets and commercial or financial information 
obtained from a person and privileged or confidential;
    (e) Involve accusing any person of a crime, or formally censuring 
any person;
    (f) Disclose information of a personal nature where disclosure would 
constitute a clearly unwarranted invasion of personal privacy;
    (g) Disclose investigatory records compiled for law enforcement 
purposes, or information which, if written, would be contained in such 
records, but only to the extent that the production of such records or 
information would;
    (1) Interfere with enforcement proceedings;
    (2) Deprive a person of a right to a fair trial or an impartial 
adjudication;
    (3) Constitute an unwarranted invasion of personal privacy;
    (4) Disclose the identity of a confidential source and, in the case 
of a record compiled by a criminal law enforcement authority in the 
course of a criminal investigation, or by an agency conducting a lawful 
national security intelligence investigation, confidential information 
furnished only by the confidential source;
    (5) Disclose investigative techniques and procedures; or
    (6) Endanger the life or physical safety of law enforcement 
personnel;
    (h) Disclose information the premature disclosure of which would be 
likely to significantly frustrate implementation of a proposed action of 
the Board, except that this subsection shall not apply in any instance 
where the Board has already disclosed to the public the content or 
nature of its proposed action, or where the Board is required by law to 
make such disclosure on its own initiative prior to taking final action 
on such proposal;
    (i) Specifically concern the Board's issuance of a subpoena, or the 
Board's participation in a civil action or proceeding, an action in a 
foreign court or international tribunal, or an arbitration, or the 
initiation, conduct, or disposition by the Board of a particular case of 
formal agency adjudication pursuant to the procedures in 5 U.S.C. 554 or 
otherwise involving a determination on the record after opportunity for 
a hearing; or
    (j) Disclose other information for which the Government in the 
Sunshine Act provides an exemption to the open meeting requirements of 
that Act.



Sec. 1704.5  Procedures for closing meetings, or withholding information, and requests by affected persons to close a meeting.

    (a) A majority of all Members may vote to close a meeting or 
withhold information pertaining to that meeting. A separate vote shall 
be taken with respect to any action under Sec. 1704.4. A majority of the 
Board may act by taking a single vote with respect to a series of 
meetings, a portion or portions of which are proposed to be closed to 
the public, or with respect to any information concerning such series of 
meetings, so long as each meeting in such series involves the same 
particular subject matters and is scheduled to be held no more than 
thirty days after the initial meeting in such series. Each Member's vote 
under this paragraph shall be recorded and proxies are not permitted.
    (b) Any person whose interest may be directly affected if a portion 
of a meeting is open may request the Board to close that portion on any 
of the grounds referred to in Sec. 1704.4 (e), (f), or (g). Requests, 
with reasons in support thereof, should be submitted to the General 
Counsel, Defense Nuclear Facilities Safety Board, 625 Indiana Avenue, 
NW., suite 700, Washington, DC 20004. On motion of any Member, the Board 
shall determine by recorded vote whether to grant the request.
    (c) Within one working day of any vote taken pursuant to this 
section, the Board shall make available a written copy of such vote 
reflecting the vote of each Member on the question, and if a portion of 
a meeting is to be closed to the public a full written explanation of 
its action closing the meeting and a list of all persons expected to 
attend and their affiliation.
    (d) For every closed meeting, the General Counsel of the Board shall 
publicly certify that, in his or her opinion, the meeting may be closed 
to the public and shall state each relevant exemption provision. If the 
General Counsel invokes the exemption for

[[Page 892]]

classified or sensitive unclassified information under Sec. 1704.4(a), 
he shall rely upon the classification or designation assigned to the 
document containing such information by the Department of Energy or 
other originating agency. A copy of such certification, together with a 
statement setting forth the time and place of the meeting and the 
persons present, shall be retained by the Board as part of the 
transcript, recording, or minutes required by Sec. 1704.8.



Sec. 1704.6  Procedures for public announcement of meetings.

    (a) For each meeting, the Board shall make public announcement, at 
least one week before the meeting, of the:
    (1) Time of the meeting;
    (2) Place of the meeting;
    (3) Subject matter of the meeting;
    (4) Whether the meeting is to be open or closed; and
    (5) The name and business telephone number of the official 
designated by the Board to respond to requests for information about the 
meeting.
    (b) The one week advance notice required by paragraph (a) of this 
section may be reduced only if:
    (1) A majority of all Members determines by recorded vote that Board 
business requires that such meeting be scheduled in less than seven 
days; and
    (2) The public announcement required by paragraph (a) of this 
section is made at the earliest practicable time.
    (c) Immediately following each public announcement required by this 
section, or by Sec. 1704.7, the Board shall submit a notice of public 
announcement for publication in the Federal Register.



Sec. 1704.7  Changes following public announcement.

    (a) The time or place of a meeting may be changed following the 
public announcement only if the Board publicly announces such change at 
the earliest practicable time. Members need not approve such change.
    (b) The subject matter of a meeting or the determination of the 
Board to open or to close a meeting, or a portion thereof, to the public 
may be changed following public announcement if:
    (1) A majority of all Members determines by recorded vote that Board 
business so requires and that no earlier announcement of the change was 
possible; and
    (2) The Board publicly announces such change and the vote of each 
Member thereon at the earliest practicable time.
    (c) The deletion of any subject matter announced for a meeting is 
not a change requiring the approval of the Board under paragraph (b) of 
this section.



Sec. 1704.8  Transcripts, recordings, or minutes of closed meetings.

    Along with the General Counsel's certification and presiding 
officer's statement referred to in Sec. 1704.5(d), the Board shall 
maintain a complete transcript or electronic recording adequate to 
record fully the proceedings of each meeting, or a portion thereof, 
closed to the public. The Board may maintain a set of minutes in lieu of 
such transcript or recording for meetings closed pursuant to 
Sec. 1704.4(i). Such minutes shall fully and clearly describe all 
matters discussed and shall provide a full and accurate summary of any 
actions taken, and the reasons therefor, including a description of each 
of the views expressed on any item and the record of any rollcall vote.



Sec. 1704.9  Availability and retention of transcripts, recordings, and minutes, and applicable fees.

    The Board shall make promptly available to the public in the Public 
Reading Room the transcript, electronic recording, or minutes of the 
discussion of any item on the agenda or of any testimony received at a 
closed meeting, except for such item, or items, of discussion or 
testimony as determined by the Board to contain matters which may be 
withheld under the exemptive provisions of Sec. 1704.4. Copies of the 
nonexempt portions of the transcript or minutes, or transcription of 
such recordings disclosing the identity of each speaker, shall be 
furnished to any person at the actual cost of transcription or 
duplication. If at some later time the Board determines that there is no 
further justification for withholding a portion of a transcript,

[[Page 893]]

electronic recording, or minutes or other item of information from the 
public which has previously been withheld, such portion or information 
shall be made publicly available. The Board shall maintain a complete 
verbatim copy of the transcript, a complete copy of the minutes, or a 
complete electronic recording of each meeting, or a portion thereof, 
closed to the public for at least two years after such meeting, or until 
one year after the conclusion of any Board proceeding with respect to 
which the meeting, or a portion thereof, was held, whichever occurs 
later.



Sec. 1704.10  Severability.

    If any provision of this part or the application of such provision 
to any person or circumstances, is held invalid, the remainder of this 
part or the application of such provision to persons or circumstances 
other than those as to which it is held invalid, shall not be affected 
thereby.



PART 1705--PRIVACY ACT--Table of Contents




Sec.
1705.01  Scope.
1705.02  Definitions.
1705.03  Systems of records notification.
1705.04  Requests by persons for access to their own records.
1705.05  Processing of requests.
1705.06  Appeals from access denials.
1705.07  Requests for correction of records.
1705.08  Appeals from correction denials.
1705.09  Disclosure of records to third parties.
1705.10  Fees.
1705.11  Exemptions.

    Authority: 5 U.S.C. 552a(f).

    Source: 56 FR 47144, Sept. 18, 1991, unless otherwise noted.



Sec. 1705.01  Scope.

    This part contains the Board's regulations implementing the Privacy 
Act of 1974, Public Law 93-579, 5 U.S.C. 552a.



Sec. 1705.02  Definitions.

    The following terms used in these regulations are defined in the 
Privacy Act, 5 U.S.C. 552a(a): agency, individual, maintain, record, 
system of records, statistical record, and routine use. The Board's use 
of these terms conforms with the statutory definitions. References in 
this part to ``the Act'' refer to the Privacy Act of 1974.



Sec. 1705.03  Systems of records notification.

    (a) Public notice. The Board has published in the Federal Register 
its systems of records. The Office of the Federal Register biennially 
compiles and publishes all systems of records maintained by all Federal 
agencies, including the Board.
    (b) Requests regarding record systems. Any person who wishes to know 
whether a system of records contains a record pertaining to him or her 
may file a request in person or in writing. Written requests should be 
directed to: Privacy Act Officer, Defense Nuclear Facilities Safety 
Board, 625 Indiana Avenue, NW., Suite 700, Washington, DC 20004. 
Telephone requests should be made by calling the Board at 202-208-6400, 
and asking to speak to the Privacy Act Officer.



Sec. 1705.04  Requests by persons for access to their own records.

    (a) Requests in writing. A person may request access to his or her 
own records in writing by addressing a letter to: Privacy Act Officer, 
Defense Nuclear Facilities Safety Board, 625 Indiana Avenue, NW., suite 
700, Washington, DC 20004. The request should contain the following 
information:
    (1) Full name, address, and telephone number of requester,
    (2) Proof of identification, which should be a copy of one of the 
following: Valid driver's license, valid passport, or other current 
identification which contains both an address and picture of the 
requester,
    (3) The system of records in which the desired information is 
contained, and
    (4) At the requester's option, authorization for copying expenses 
(see Sec. 1705.10 below).
    (b) Requests in person. Any person may examine his or her own 
records on the Board's premises. To do so, the person should call the 
Board's offices at 202-208-6400 and ask to speak to the Privacy Act 
Officer. This call should be made at least two weeks prior to the time 
the requester would like to see

[[Page 894]]

the records. During this call, the requester should be prepared to 
provide the same information as that listed in paragraph (a) of this 
section, except for proof of identification.



Sec. 1705.05  Processing of requests.

    (a) Requests in writing. The Privacy Act Officer will acknowledge 
receipt of the request within five working days of its receipt in the 
Board's offices. The acknowledgment will advise the requester if any 
additional information is needed to process the request. Within fifteen 
working days of receipt of the request, the Privacy Act Officer will 
provide the requested information or will explain to the requester why 
additional time is needed for response.
    (b) Requests in person. Following the initial call from the 
requester, the Privacy Act Officer will determine (1) whether the 
records identified by the requester exist, and (2) whether they are 
subject to any exemption under Sec. 1705.11 below. If the records exist 
and are not subject to exemption, the Privacy Act Officer will call the 
requester and arrange an appointment at a mutually agreeable time when 
the records can be examined. The requester may be accompanied by one 
person of his or her own choosing, and should state during this call 
whether or not a second individual will be present at the appointment. 
At the appointment, the requester will be asked to present 
identification as stated in Sec. 1705.04(a)(2).
    (c) Excluded information. If a request is received for information 
compiled in reasonable anticipation of litigation, the Privacy Act 
Officer will inform the requester that this information is not subject 
to release under the Privacy Act (see 5 U.S.C. 552a(d)(5)).



Sec. 1705.06  Appeals from access denials.

    When access to records has been denied by the Privacy Act Officer, 
the requester may file an appeal in writing. This appeal should be 
directed to The Chairman, Defense Nuclear Facilities Safety Board, 625 
Indiana Avenue NW., suite 700, Washington, DC 20004. The appeal letter 
must (a) specify those denied records which are still sought, and (b) 
state why the denial by the Privacy Act Officer is erroneous. The 
Chairman or his designee will respond to such appeals within twenty 
working days after the appeal letter has been received in the Board's 
offices. The appeal determination will explain the basis for continuing 
to deny access to any requested records.



Sec. 1705.07  Requests for correction of records.

    (a) Correction requests. Any person is entitled to request 
correction of a record pertaining to him or her. This request must be 
made in writing and should be addressed to Privacy Act Officer, Defense 
Nuclear Facilities Safety Board, 625 Indiana Avenue, NW., Suite 700, 
Washington, DC 20004. The letter should clearly identify the corrections 
desired. An edited copy of the record will usually be acceptable for 
this purpose.
    (b) Initial response. Receipt of a correction request will be 
acknowledged by the Privacy Act Officer in writing within five working 
days of receipt of the request. The Privacy Act Officer will endeavor to 
provide a letter to the requester within thirty working days stating 
whether or not the request for correction has been granted or denied. If 
the Privacy Act Officer decides to deny any portion of the correction 
request, the reasons for the denial will be provided to the requester.



Sec. 1705.08  Appeals from correction denials.

    (a) When amendment of records has been denied by the Privacy Act 
Officer, the requester may file an appeal in writing. This appeal should 
be directed to The Chairman, Defense Nuclear Facilities Safety Board, 
625 Indiana Avenue, NW., Suite 700, Washington, DC 20004. The appeal 
letter must (1) specify the records subject to the appeal, and (2) state 
why the denial of amendment by the Privacy Act Officer is erroneous. The 
Chairman or his designee will respond to such appeals within thirty 
working days (subject to extension by the Chairman for good cause) after 
the appeal letter has been received in the Board's offices.
    (b) The appeal determination, if adverse to the requester in any 
respect, will: (1) Explain the basis for denying amendment of the 
specified records, (2) inform the requester that he or she

[[Page 895]]

may file a concise statement setting forth reasons for disagreeing with 
the Chairman's determination, and (3) inform the requester of his or her 
right to pursue a judicial remedy under 5 U.S.C. 552a(g)(1)(A).



Sec. 1705.09  Disclosure of records to third parties.

    Records subject to the Privacy Act that are requested by any person 
other than the individual to whom they pertain will not be made 
available except in the following circumstances:
    (a) Their release is required under the Freedom of Information Act 
in accordance with the Board's FOIA regulations, 10 CFR part 1703;
    (b) Prior consent for disclosure is obtained in writing from the 
individual to whom the records pertain; or
    (c) Release is authorized by 5 U.S.C. 552a(b) (1) or (3) through 
(11).



Sec. 1705.10  Fees.

    A fee will not be charged for search or review of requested records, 
or for correction of records. When a request is made for copies of 
records, a copying fee will be charged at the same rate established for 
FOIA requests. See 10 CFR 1703.107. However, the first 100 pages of 
copying will be free of charge.



Sec. 1705.11  Exemptions.

    Pursuant to 5 U.S.C. 552a(k), the Board has determined that system 
of records DNFSB-3, ``Drug Testing Program Records,'' is partially 
exempt from 5 U.S.C. 552(a)(c)(3), (d), (e)(1), (e)(4)(G), (H), (I), and 
(f). The exemption pertains to portions of these records which would 
identify persons supplying information on drug abuse by Board employees 
or contractors.



PART 1706--ORGANIZATIONAL AND CONSULTANT CONFLICTS OF INTERESTS--Table of Contents




Sec.
1706.1  Scope; statement of policy.
1706.2  Definitions.
1706.3  Applicability.
1706.4  Head of the contracting activity.
1706.5  General rules.
1706.6  Solicitation provisions.
1706.7  Procedures.
1706.8  Waiver.
1706.9  Examples.
1706.10  Remedies.
1706.11  Organizational conflicts of interest certificate--Advisory or 
          assistance services.

    Authority: 42 U.S.C. 2286b(c).

    Source: 57 FR 44652, Sept. 29, 1992, unless otherwise noted.



Sec. 1706.1  Scope; statement of policy.

    (a) Scope. This part sets forth the guidelines, requirements, and 
procedures the Defense Nuclear Facilities Safety Board will follow in 
determining whether a contractor or offeror has an organizational or 
consultant conflict of interest (OCI) and in avoiding, neutralizing, or 
mitigating OCIs.
    (b) Policy. It is the policy of the Board to identify and then avoid 
or mitigate organizational and consultant conflicts of interest. 
Normally, the Board will not award contracts to offerors who have OCIs 
and will terminate contracts where OCIs are identified following 
contract award. In exceptional circumstances, the Board reserves the 
right to waive conflicts of interest if it determines that such action 
is in the best interests of the Government, pursuant to Sec. 1706.8, and 
to take such mitigating measures as it deems appropriate pursuant to 
such section.



Sec. 1706.2  Definitions.

    Advisory or assistance services means services acquired by contract 
to advise or assist the Board, whether with respect to its internal 
functions or its oversight of defense nuclear facilities, or otherwise 
to support or improve policy development or decisionmaking by the Board, 
or management or administration of the Board, or to support or improve 
the operation of the Board's management systems. Such services may take 
the form of the provision of information, advice, reports, opinions, 
alternatives, conclusions, recommendations, training, direct assistance, 
or performance of site visits, technical reviews, investigation of 
health and safety practices or other appropriate services.
    Affiliates means associated business concerns or individuals if, 
directly or indirectly, either one controls or can control the other or 
a third party controls or can control both.

[[Page 896]]

    Board means, as the context requires, the Defense Nuclear Facilities 
Safety Board, its Chairman, or any other officer of the Defense Nuclear 
Facilities Safety Board to whom the appropriate delegation has been made 
under 42 U.S.C. 2286(c)(3).
    Contract means any contract, agreement, or other arrangement with 
the Board, except as provided in Sec. 1706.3.
    Contractor means any person, firm, unincorporated association, joint 
venture, co-sponsor, partnership, corporation, or other entity, or any 
group of one or more of the foregoing, which is a party to a contract 
with the Board, and the affiliates and successors in interest of such 
party. The term ``contractor'' also includes the chief executive and 
directors of a party to a contract with the Board, the key personnel of 
such party identified in the contract, and current or proposed 
consultants or subcontractors to such party. The term ``contractor'' 
shall also include consultants engaged directly by the Board through the 
use of a contract.
    Defense nuclear facility means any United States Department of 
Energy (DOE) defense nuclear facility, as defined in 42 U.S.C. 2286g, 
subject to the Board's oversight.
    Evaluation activities means activities that involve evaluation of 
some aspect of defense nuclear facilities.
    Mitigating means, with respect to an organizational or consultant 
conflict of interest, reducing or counteracting the effects of such a 
conflict of interest on the Board, but without eliminating or avoiding 
the conflict of interest.
    National Laboratories means laboratories operated by educational 
institutions or business entities under management and operating 
contracts with DOE.
    Offeror means any person, firm, unincorporated association, joint 
venture, partnership, corporation, or other entity, or any group of one 
or more of the foregoing, submitting a bid or proposal to the Board, 
solicited, unsolicited or otherwise invited by the Board, to obtain a 
contract, and the affiliates and successors in interest of such a bidder 
or proposer. The term ``offeror'' also includes the chief executive and 
directors of such a bidder or proposer, the key personnel of a bidder or 
proposer identified in the bid or proposal, and proposed consultants or 
subcontractors to such bidder or proposer.
    Organizational or consultant conflict of interest means that, 
because of other past, present, or future planned activities or 
relationships, an offeror or contractor is unable, or potentially 
unable, to render impartial assistance or advice to the Board, or the 
objectivity of such offeror or contractor in performing contract work 
for the Board is or might be otherwise impaired, or such offeror or 
contractor has or would have an unfair competitive advantage. The term 
``organizational or consultant conflict of interest'' shall include, but 
not be limited to, actions or situations that would preclude the award 
or extension of a contract under, or would be prohibited by, 
Sec. 1706.5.
    Potential organizational or consultant conflict of interest means a 
factual situation that indicates or suggests that an actual 
organizational or consultant conflict of interest may exist or arise 
from award of a proposed contract or from continuation of an existing 
contract. The term is used to signify those situations that merit 
conflicts review prior to contract award or that must be reported to the 
contracting officer for conflicts review if they arise during contract 
performance.
    Research means any scientific, engineering, or other technical work 
involving theoretical analysis, exploration, or experimentation.
    Subcontractor means any subcontractor of any tier which performs 
work under a prime contract with the Board.
    Task order contract means a Board contract that contains a broad 
scope of work but does not authorize the contractor to perform specific 
tasks within that broad scope until the contracting officer issues task 
orders.
    Unfair competitive advantage means an advantage obtained by an 
offeror or contractor to the Board by virtue of the relationship of the 
offeror or contractor with the Board or access to information not 
available to other offerors or contractors, and recognized in 
appropriate legal precedent as unfair.

[[Page 897]]

    In determining the meaning of any provision of this part, unless the 
context indicates otherwise, the singular includes the plural; the 
plural includes the singular; the present tense includes the future 
tense; and words of one gender include the other gender.



Sec. 1706.3  Applicability.

    (a) General applicability. This part applies to contractors and 
offerors only, except as otherwise herein provided. This part shall be 
incorporated by reference and made a part of all Board contracts in 
excess of the small purchases threshold, except as provided in the last 
sentence of this Sec. 1706.3(a). In addition, if determined appropriate 
by the contracting officer for the Board, this part may be incorporated 
by reference and made a part of Board contracts below the small 
purchases threshold, except as provided in the last sentence of this 
Sec. 1706.3(a). This part does not apply to the acquisition of services, 
including, without limitation, consulting services, through the 
personnel appointment process or to Board agreements with other federal 
government agencies, but shall apply to Board agreements with the 
management and operating contractors (and subcontractors and consultants 
thereto) of the National Laboratories.
    (b) Subcontractors and consultants. The requirements of this part 
shall also apply to subcontractors and consultants proposed for, or 
working on, a Board contract, in each case where the amount of the 
subcontract or consultant agreement under which such subcontractor or 
consultant is or will be working is expected to exceed $10,000, and in 
each other case where the contracting officer for the Board deems it 
appropriate to make the requirements of this part applicable to a 
subcontractor or consultant proposed for, or working on, a Board 
contract. The certificates or disclosures submitted by offerors or 
contractors pursuant to this part shall include certificates or 
disclosures from all subcontractors and consultants to contractor or 
offerors in those cases where this part applies by its terms to such 
subcontractors or consultants or has been applied to such persons by the 
contracting officer. Contractors and offerors shall assure that contract 
clauses giving effect to this Sec. 1706.3(b), satisfactory to the 
contracting officer, are included in subcontracts and consultant 
agreements of any tier involving performance of work under a prime 
contract covered by this part.
[57 FR 44652, Sept. 29, 1992; 58 FR 13684, Mar. 12, 1993]



Sec. 1706.4  Head of the contracting activity.

    The head of the contracting activity for the Board shall be the 
General Manager.



Sec. 1706.5  General rules.

    (a) Award of Contracts. Contracts shall generally not be awarded to 
an offeror:
    (1) For any services where the award would result in the offeror 
evaluating products or services it has provided to the Board, is then 
providing to the Board, or is then offering to provide for the Board;
    (2) For evaluation activities or research related to the Board's 
oversight of defense nuclear facilities, where the award would result in 
the offeror evaluating products or services it has provided, is then 
providing, or is then offering to provide to DOE or to contractors or 
subcontractors for defense nuclear facilities; or
    (3) For any other services (the acquisition of which is otherwise 
covered by this part), where the Board has determined, pursuant to 
Sec. 1706.7, that an actual or potential OCI exists and cannot be 
avoided, and the Board does not waive that OCI. Paragraphs (a) (1) and 
(2) of this section also apply when award would result in evaluation of 
products or services of another entity where the offeror has been, is, 
or would be substantially involved in the development of the product or 
performance of the service, or has other substantial involvement 
regarding the product or services.
    (b) Subsequent related contracts. (1) A Board contractor under a 
Board contract shall normally be ineligible to participate in Board 
contracts or subcontracts that stem directly from the contractor's 
performance of work under a previous Board contract, where

[[Page 898]]

the Board determines that an OCI would exist because:
    (i) The expectation of receiving the subsequent contract is likely 
to diminish the contractor's capacity to give impartial assistance and 
advice, or otherwise result in a biased work product; or
    (ii) An offeror on the subsequent contract would have an unfair 
competitive advantage by virtue of having performed the first contract.
    (2) If a contractor under a Board contract prepares a complete or 
essentially complete statement of work or specifications in the 
performance of a contract, the contractor shall be ineligible to perform 
or participate in the initial contractual effort that is based on such 
statement of work or specifications. The contractor shall not 
incorporate its products or services in such statement of work or 
specifications.
    (c) National Laboratory personnel. The Board may engage personnel of 
the National Laboratories who have expertise needed by the Board in the 
performance of its oversight responsibilities, provided that prior to 
each such engagement, the Board determines either:
    (1) That the nature of work performed by such personnel for DOE does 
not pose actual or potential OCIs with respect to the particular work 
covered by the Board contract; or
    (2) That such engagement is in the Government's best interests and 
that a waiver should be granted pursuant to Sec. 1706.8. In all cases 
involving National Laboratory personnel, notice of the circumstances of 
the contract, stating the rationale for use of the personnel, shall be 
published in the Federal Register.
    (d) Work for others. During the term of any Board contract, the 
contractor may not enter into consulting or other contractual 
arrangements with other persons or entities, the result of which could 
give rise to an OCI with respect to the work being performed under the 
contract. The prime contractor shall ensure that all of its employees, 
subcontractors, and consultants under the contract abide by this 
paragraph. If the contractor has reason to believe that any proposed 
arrangement with other persons or entities may involve an actual or 
potential OCI, it shall promptly inform the Board in writing of all 
pertinent facts regarding such proposed arrangement. In the case of task 
order contracts, this paragraph applies, subject to Sec. 1706.7(c), only 
to specific ongoing tasks that the contracting officer authorizes the 
contractor to perform.
    (e) Contractor protection of Board information that is not publicly 
available. If the contractor in the performance of a Board contract 
obtains access to information, such as Board plans, policies, reports, 
studies, or financial plans, or internal data protected by the Privacy 
Act (5 U.S.C. 552a), proprietary information, or any other data which 
has not been released to the public, the contractor shall not:
    (1) Use such information for any private purpose until the 
information has been released or is otherwise made available to the 
public;
    (2) Compete for work for the Board based on such information for a 
period of six months after either the contract has been completed or 
such information has been released or otherwise made available to the 
public, whichever occurs first, or submit an unsolicited proposal to the 
Government based on such information until one year after such 
information is released or otherwise made available to the public, 
unless a waiver permitting such action has been granted pursuant to 
Sec. 1706.8; or
    (3) Release the information without prior written approval of the 
contracting officer, unless such information has previously been 
released or otherwise made available to the public by the Board.
[57 FR 44652, Sept. 29, 1992; 58 FR 13684, Mar. 12, 1993]



Sec. 1706.6  Solicitation provisions.

    (a) Advisory or assistance services. There shall be included in all 
formal Board solicitations for advisory or assistance services where the 
contract amount is expected to exceed $25,000 (or the then applicable 
small purchases threshold), a provision requiring a certificate 
representing whether award of the contract to the offeror would present 
actual or potential OCIs. Apparent successful offerors will be required 
to submit such certificates, but

[[Page 899]]

the Board may also require such a certificate to be submitted in other 
circumstances, such as:
    (1) Where the contracting officer has identified certain offerors 
who have passed an initial screening and has determined that it is 
appropriate to request the identified offerors to file the certificate 
in order to expedite the award process; or
    (2) In the case of modifications for additional effort under Board 
contracts, except those issued under the ``changes'' clause. If a 
certificate has been previously submitted with regard to the contract 
being modified, only an updating of such statement shall be required for 
a contract modification.

In addition, if determined appropriate by the contracting officer for 
the Board, such certificates may be required in connection with any 
other contracts subject to this part or in which this part has been 
incorporated by reference.
    (b) Marketing consultant services. There shall further be included 
in all Board solicitations, except sealed bids, where the contract 
amount is expected to exceed $200,000, a provision requiring an 
organizational conflicts of interest certificate from any marketing 
consultants engaged by an offeror in support of the preparation or 
submission of an offer for a Board contract by that offeror.
[57 FR 44652, Sept. 29, 1992; 58 FR 13684, Mar. 12, 1993]



Sec. 1706.7  Procedures.

    (a) Pre-award disclosure and resolution of OCIs. If a certificate 
under Sec. 1706.6 indicates, or the Board otherwise learns, that actual 
or potential OCIs could be, or would appear to be, created by contract 
award to a particular offeror, the Board shall afford the affected 
offeror an opportunity to provide in writing all relevant facts bearing 
on the certificate. If the Board thereafter determines that an actual or 
potential OCI exists, one of the following actions shall ultimately be 
taken:
    (1) Disqualify the offeror;
    (2) Include in the contract appropriate terms and conditions which 
avoid the conflict, in which case no waiver is required; or
    (3) Make a finding that it is in the best interests of the 
Government to seek award of the contract under the waiver provisions of 
Sec. 1706.8, and, where reasonably possible, include contract terms and 
conditions or take other measures which mitigate such conflicts.
    (b) Post-award disclosure and resolution of OCIs. (1) If, after 
contract award, the contractor discovers actual or potential OCIs with 
respect to the contract, it shall make an immediate and full disclosure 
in writing to the contracting officer. This statement shall include a 
description of the action that the contractor has taken or proposes to 
avoid or mitigate such conflicts.
    (2) If a disclosure under this section indicates, or the Board 
otherwise learns, that actual or potential OCIs exist, the Board may 
afford the contractor an opportunity to provide all relevant facts 
bearing upon the problem. If at any time the Board determines that an 
actual or potential OCI exists, one of the following actions shall 
ultimately be taken:
    (i) Terminate the contract, or, in the case of a task order 
contract, terminate the particular task;
    (ii) Insist on appropriate contract terms and conditions which avoid 
the OCIs, in which case no waiver is required; or
    (iii) Make a finding that it is in the best interests of the 
Government to permit the contractor to continue to perform the contract 
(or task) under the waiver provisions of Sec. 1706.8, and, where 
reasonably possible, insist on appropriate contract terms and conditions 
or take other measures which mitigate the OCIs.
    (c) Task order contracts. (1) Because a task order contract 
generally entails a broad scope of work, apparent successful offerors 
shall be required to identify in their certificates filed in accordance 
with Sec. 1706.6 any actual or potential OCIs that come within the full 
scope of the contract. The Board may decline to award a task order 
contract to an offeror based upon such information or it may decline to 
approve performance of a particular task by the contractor if an actual 
or potential OCI is subsequently identified with respect

[[Page 900]]

to that particular task. The Board may also take the other actions 
identified in Sec. 1706.7(a) to avoid or mitigate such conflicts.
    (2) Contractors performing task order contracts for the Board shall 
disclose to the contracting officer any new work for others they propose 
to undertake that may present an actual or potential OCI with regard to 
the performance of any work under the full scope of the Board contract. 
Such disclosure shall be made at least 15 days prior to the submission 
of a bid or proposal for the new work. The disclosure shall include the 
statement of work and any other information necessary to describe fully 
the proposed work and contemplated relationship.
    (3) If the Board has issued a task order or a letter request for 
proposal under the contract with a contractor who has disclosed to the 
contracting officer that it proposes to undertake new work for persons 
other than the Board as described in Sec. 1706.7(c)(2), for services in 
the same technical area and/or at the same defense nuclear facility that 
is the subject of the proposed new work (including overlap based upon 
generic work performed for others by the contractor), the Board shall 
inform the contractor that entering into a contract for the new work may 
result in termination by the Board of the task order contract, if the 
Board determines that such work would give rise to an OCI and the Board 
does not grant a waiver.
    (d) Decisions on OCIs. The contracting officer shall make 
recommendations to the General manager regarding disqualification or 
actions to be taken by the Board to avoid or mitigate any actual or 
potential OCI.
    (1) The General Manager shall have the authority to approve, modify, 
or disapprove such recommendations regarding avoidance of an actual or 
potential OCI. If an offeror or contractor disagrees with the actions 
approved by the General Manager and requests review of the action, the 
Chairman shall make the decision on the actions to be taken by the 
Board.
    (2) Any recommended action respecting the best interests of the 
Government and mitigation measures to be taken with respect to an actual 
or potential OCI must be approved by the Chairman in conjunction with 
the decision to grant a waiver pursuant to Sec. 1706.8, and any 
recommended action to terminate a contract or a particular task on 
account of an actual or potential OCI must be approved by the Chairman.
    (3) Decisions on OCIs by the General Manager or the Chairman shall 
be made with the advice of the Office of the General Counsel.
[57 FR 44652, Sept. 29, 1992; 58 FR 13684, Mar. 12, 1993]



Sec. 1706.8  Waiver.

    (a) Waiver of OCIs. The need for a waiver of any OCI in connection 
with the award or continuation of specific contracts may be identified 
either by the contracting officer for the Board or other Board employee 
or by a written request filed by an offeror or contractor with the 
contracting officer. The request may be combined with the certificate or 
disclosure required under Secs. 1706.6 or 1706.7, or with additional 
statements filed under Sec. 1706.7 regarding matters raised in the 
certificate or disclosure. The contracting officer shall review all of 
the relevant facts brought to his attention and shall bring the matter 
to the General Manager, who shall make a written recommendation to the 
Chairman of the Board regarding whether a waiver should be granted for a 
contract award or for continuation of an existing contract.
    (b) Criteria for Waiver of OCIs. (1) The Chairman is authorized to 
waive any OCI (and the corresponding provision of Sec. 1706.5 where 
applicable) upon a determination that awarding or extending the 
particular contract, or not terminating the particular contract, would 
be in the best interests of the Government. Issuance of a waiver shall 
ordinarily be limited to those situations in which:
    (i) The work to be performed under contract is vital to the Board 
program;
    (ii) The work cannot be satisfactorily performed except by a 
contractor or offeror whose interests give rise to a question of OCI; 
and
    (iii) Contractual and/or technical review and supervision methods 
can be

[[Page 901]]

employed by the Board to mitigate the conflict.
    (2) The Chairman is also authorized to waive any OCI (and the 
corresponding provision of Sec. 1706.5 where applicable), without regard 
to the foregoing factors, if the Chairman determines, notwithstanding 
the existence of the OCI, that it is in best interests of the Government 
to award or extend the particular contract, or not to terminate it, 
without compliance with Sec. 1706.8(b)(1).
    (c) Waiver of Rules or Procedures. The Chairman is also authorized 
to waive any rules or procedures contained in this part upon a 
determination that application of the rules or procedures in a 
particular situation would not be in the best interests of the 
Government. Any request for such a waiver must be in writing and shall 
describe the basis for the waiver.
    (d) Office of General Counsel. Waivers of OCIs or of any rule or 
procedure contained in this part shall be made after consultation with 
the Office of General Counsel.
    (e) Federal Register. Except as otherwise provided in 
Sec. 1706.8(c), notice of each waiver granted under this section shall 
be published in the Federal Register with an explanation of the basis 
for the waiver. In the discretion of the Board, notices of instances of 
avoidance of OCIs may also be published in the Federal Register.



Sec. 1706.9  Examples.

    The examples in this section illustrate situations in which 
questions concerning OCIs may arise. The examples are not all inclusive, 
but are intended to provide offerors and contractors with guidance on 
how this subpart will be applied.
    (a) Circumstances--(1) Facts. A Board contractor for technical 
assistance in the review of a safety aspect of a particular defense 
nuclear facility proposes to use the services of an expert who also 
serves on an oversight committee for a contractor of other defense 
nuclear facilities.
    (2) Guidance. Assuming the work of the oversight committee has no 
direct or indirect relationship with the work at the facility that is 
the subject of the Board's contract, there would not be an OCI 
associated with the use of this expert in the performance of the Board 
contract.
    (b) Circumstances--(1) Facts. A Board contractor studying the 
potential for a chemical explosion in waste tanks at a defense nuclear 
facility advises the Board that it has been offered a contract with DOE 
to study the chemical composition of the waste in the same tanks.
    (2) Guidance. The contractor would be advised that accepting the DOE 
contract would result in termination of its performance under its 
contract with the Board.
    (c) Circumstances--(1) Facts. The Board issues a task order under an 
existing contract for the evaluation of the adequacy of fire protection 
systems at a defense nuclear facility. The contractor then advises the 
Board that it is considering making an offer on a solicitation by DOE to 
evaluate the same matter.
    (2) Guidance. The contractor would be advised that entering into a 
contract with DOE on that solicitation could result in the contract with 
the Board being terminated.
    (d) Circumstances--(1) Facts. A firm responding to a formal Board 
solicitation for technical assistance provides information regarding a 
contract it currently has with DOE. The effort under the DOE contract is 
for technical assistance work at DOE facilities not subject to Board 
oversight and outside its jurisdiction.
    (2) Guidance. The Board would analyze the work being performed for 
DOE to ensure no potential or actual conflict of interest would be 
created through award of the Board contract. Should the Board determine 
that no potential or actual conflict of interest exists, the contractor 
would be eligible for award. If the Board determines that a potential or 
actual conflict of interest would arise through a contract award, it may 
disqualify the firm or, if the Board determines that such action is in 
the best interests of the Government, the Board may waive the conflict 
or the rules and procedures and proceed with the award.
    (e) Circumstances--(1) Facts. The Board discovers that a firm 
competing for a contract has a number of existing

[[Page 902]]

agreements with DOE in technical areas which are unrelated to the 
Board's oversight authority. While these contracts may not represent a 
potential or actual conflict of interest regarding the substance of the 
technical effort, their total value constitutes a significant portion of 
the firm's gross revenues.
    (2) Guidance. A conflict of interest may exist due to the firm's 
substantial pecuniary dependence upon DOE. Consequently, the Board may 
question the likelihood that the contractor would provide unbiased 
opinions, conclusions, and work products because of this extensive 
financial relationship. The Board will review and consider the extent of 
the firm's financial dependence on DOE, the nature of the proposed Board 
contract, the need by the Board for the services and expertise to be 
provided by the firm and the availability of such services and expertise 
elsewhere, and whether the likelihood of the firm's providing objective 
technical evaluations and opinions to the Board could be influenced in 
view of its DOE relationship. Based on this analysis, the Board may 
either determine that there is no conflict and make the award, waive the 
conflict if one is identified and establish procedures to mitigate it 
where possible, or disqualify the offeror.
    (f) Circumstances--(1) Facts. The Board discovers that a firm 
competing for a contract has a substantial business relationship in 
technical areas unrelated to the Board's oversight authority with a 
contractor operating a defense nuclear facility under a DOE contract. 
Similar to the situation described in paragraph (e) of this section, the 
total value of the contracts with the DOE contractor constitutes more 
than half of the firm's gross revenues, even though those contracts do 
not represent a potential or actual conflict of interest regarding any 
of the particular matters to be covered by the contract with the Board.
    (2) Guidance. The firm's substantial financial and business 
dependence upon the DOE contractor may give rise to a conflict of 
interest, in that the likelihood of the firm's rendering impartial, 
objective assistance or advice to the Board may be impaired by its 
extensive financial relationship with the DOE contractor. In this 
situation, the Board will review and consider the nature of the proposed 
Board contract, the need by the Board for the services and expertise to 
be provided by the firm and the availability of such services and 
expertise elsewhere. The Board will also review and consider the extent 
of the firm's financial dependence on the DOE contractor and whether the 
firm would be impartial and objective in providing technical evaluation 
and opinions to the Board, especially on matters in which the DOE 
contractor is involved, notwithstanding the relationship with the DOE 
contractor. Based on this analysis, the Board may determine that there 
is no actual conflict of interest and make the award. Alternatively, if 
the Board identifies a conflict that cannot be avoided, the Board may 
determine to waive the conflict in the best interests of the United 
States, with or without the establishment of procedures to mitigate the 
conflict, or it may disqualify the offeror.
[57 FR 44652, Sept. 29, 1992; 58 FR 13684, Mar. 12, 1993]



Sec. 1706.10  Remedies.

    The refusal to provide the certificate, or upon request of the 
contracting officer the additional written statement, required by 
Secs. 1706.6 and 1706.7 in connection with an award shall result in 
disqualification of the offeror for that award. The nondisclosure or 
misrepresentation of any relevant information may also result in the 
disqualification of the offeror for that award. If such nondisclosure or 
misrepresentation by an offeror or contractor is discovered or occurs 
after award, or in the event of breach of any of the restrictions 
contained in this part, the Board may terminate the contract for 
convenience or default, and the offeror or contractor may also be 
disqualified by the Board from consideration for subsequent Board 
contracts and be subject to such other remedial actions as provided by 
law or the contract.
[57 FR 44652, Sept. 29, 1992; 58 FR 13684, Mar. 12, 1993]

[[Page 903]]



Sec. 1706.11  Organizational conflicts of interest certificate--Advisory or assistance services.

    As prescribed in or permitted by Sec. 1706.6(a), insert the 
following provision in Board solicitations:

    Organizational and Consultant Conflicts of Interest Certificate--
              Advisory and Assistance Services (Oct. 1990)

    (a) An organizational or consultant conflict of interest means that 
because of other activities or relationships with other persons, a 
person is unable or potentially unable to render impartial assistance or 
advice to the Government, or the person's objectivity in performing the 
contract work is or might be otherwise impaired, or a person has an 
unfair competitive advantage.
    (b) In order to comply with the Office of Federal Procurement Policy 
Letter 89-1, Conflict of Interest Policies Applicable to Consultants, 
the offeror shall provide the certificate described in paragraph (c) of 
this provision.
    (c) The certificate must contain the following:
    (1) Name of the agency and the number of the solicitation in 
question.
    (2) The name, address, telephone number, and federal taxpayer 
identification number of the offeror.
    (3) A description of the nature of the services rendered by or to be 
rendered on the instant contract.
    (4) The name, address, and telephone number of the client or 
clients, a description of the services rendered to the previous 
client(s), and the name of a responsible officer or employee of the 
offeror who is knowledgeable about the services rendered to each client, 
if, in the 12* months preceding the date of the certification, services 
were rendered to the Government or any other client (including a foreign 
government or person) respecting the same subject matter as the instant 
solicitation, or directly relating to such subject matter. The agency 
and contract number under which the services were rendered must also be 
included, if applicable.
    (5) A statement that the person who signs the certificate has made 
inquiry and that, to the best of his or her knowledge and belief, no 
actual or potential conflict of interest or unfair competitive advantage 
exists with respect to the advisory or assistance services to be 
provided in connection with the instant contract, or that any actual or 
potential conflict of interest or unfair competitive advantage that does 
or may exist with respect to the contract in question has been 
communicated in writing to the contracting officer or his or her 
representative; and
    (6) The signature, name, employer's name, address, and telephone 
number of the person who signed the certificate.
    (d) Persons required to certify but who fail to do so may be 
determined to be nonresponsible. Misrepresentation of any fact may 
result in suspension or debarment, as well as penalties associated with 
false certifications or such other provisions provided for by law or 
regulation.

                           [End of provision]

    * If approved by the head of the contracting activity, this period 
may be increased up to 36 months.
[[Page 905]]


                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected



[[Page 907]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 1998)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)

[[Page 908]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)

[[Page 909]]

       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
      XIII  Northeast Dairy Compact Commission (Parts 1300--1399)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)

[[Page 910]]

     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)

[[Page 911]]

      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)

[[Page 912]]

            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)

[[Page 913]]

        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

[[Page 914]]

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

[[Page 915]]

       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

[[Page 916]]

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

[[Page 917]]

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

[[Page 918]]

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)

[[Page 919]]

       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)

[[Page 920]]

         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)

[[Page 921]]

        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)

[[Page 922]]

       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 923]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 1998)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 924]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII

[[Page 925]]

  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII

[[Page 926]]

Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
     of Certain Employees
[[Page 927]]

  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II

[[Page 928]]

  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, United States        22, II; 48, 7
       Agency for
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II

[[Page 929]]

Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Dairy Compact Commission                7, XIII
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
     Acquisition Regulation
[[Page 930]]

  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X

[[Page 931]]

Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 933]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes affected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1973-1985'', published in four separate volumes.

                                  1986

10 CFR
                                                                   51 FR
                                                                    Page
Chapter II
503.13  (b) introductory text amended; interim.....................18866
600.2  (e) redesignation as (f), new (f)(1)(vi) and (2) revision, 
        and new (d), (e), and (f)(1)(vii) addition confirmed........4297
600.3  Amended.....................................................39366
600.20  (c) revised................................................39366
600.100  (a) revision confirmed.....................................4297
600.102  (b)(1) revised............................................39366
600.103  (b)(6) added; (g) revised.................................39366
600.104  (b) revision confirmed.....................................4297
600.106  (d) revised; (e) redesignated as (f); new (e) added.......39367
600.108  (b) and (c) revised; (d) redesignated as (f); new (d) and 
        (e) added..................................................39367
600.109  (b)(8) revision confirmed..................................4297
600.114  (b)(1) (ii) and (iv) revised..............................39367
600.115  (c)(2) revised............................................39368
600.119  (c)(1) (i) and (ii) revised; (c)(1)(iii) added............39368
600.120  (a) through (c) revision and (e) removal confirmed.........4297
600.123  (e) revision confirmed.....................................4297
600.271  (a)(1) and (2) revision confirmed..........................4297
600.300--600.317 (Subpart D)  Addition confirmed....................4297
600.310  (h) revised................................................4297
600  Appendix A amendment and Appendix B addition confirmed.........4297
Chapter III
762  Added (Effective date pending)................................27144
810  Revised.......................................................44574
904  Added; eff. 6-1-87............................................43154
Chapter X
1039  Added...................................................7008, 7022
1040.101--1040.170 (Subpart D)  Added.........................4574, 4579
1040.103  Corrected.................................................7543
1040.150  (c) corrected.............................................7543
1040.170  (c) revised...............................................4574
1046.12  (d) added..................................................7248
1046.11--1046.13 (Subpart B)  Appendix A amended....................7248
Chapter XV
1535  Added...................................................4574, 4579
1535.103  Corrected.................................................7543
1535.150  (c) corrected.............................................7543
1535.170  (c) revised...............................................4574

                                  1987

10 CFR
                                                                   52 FR
                                                                    Page
Chapter II
503.13  (b) introductory text amendment confirmed and republished 
                                                                     658
600  Class deviation...............................................18548

[[Page 934]]

Chapter III
725  Authority citation revised....................................30139
725.3  (i) added...................................................30139
725.15  (b)(3) revised.............................................30139
725.22  (c) added..................................................30140
725.23  (d)(9) revised.............................................30140
763  Added.........................................................28538
862  Added.........................................................29838
961.11  Amended....................................................35359
962  Added.........................................................15940
Chapter X
1039  Authority citation revised...................................48017
    Revised; interim; eff. 4-2-89..................................48017
1039.1  Heading revised; (a) and (b) redesignated as (a) (1) and 
        (2); introductory text designated as new (a) introductory 
        text; new (a) heading and (b) added; interim; eff. 1-19-88
                                                                   48017
1040.101-1040.999 (Subpart D)  Addition published at 51 FR 4574 
        and 51 FR 4579 removed (regulations transferred to Part 
        1041).......................................................1902
1041  Heading added; text transferred from 1940.101--1040.170 
        (Subpart D) published at 51 FR 4574 and 51 FR 4579..........1902
1041.170  (c) revised...............................................1902

                                  1988

10 CFR
                                                                   53 FR
                                                                    Page
Chapter II
600  Class deviation...............................................15801
600.1--600.27 (Subpart A)  Nomenclature changes.....................5261
600.3  Amended......................................................8045
600.4  (c)(2)(i) and (3) revised....................................5261
    (a) and (c)(2)(i) and (3) amended...............................8045
600.6  (a)(3) revised; (a)(4) added.................................5261
    Revised........................................................12138
600.7  (b) revised.................................................12138
600.9  (c)(19) revised..............................................5261
600.10  Revised.....................................................5261
    (a) revised.....................................................8045
600.14  (e)(2) revised..............................................5262
    (c)(1) revised..................................................8046
    (e)(1)(ii) revised; (f) and (g) redesignated as (g) and (h) 
and revised; new (f) added.........................................12139
600.19  Revised.....................................................5262
    (d) amended.....................................................8046
600.20  (c) amended.................................................8046
600.25  (d) revised.................................................5262
    (d) revised.....................................................8046
600.26  (d)(1) (iii), (iv), and (v) revised.........................5262
    (d)(1) introductory text and (i) through (v) revised............8046
600.27  Amended....................................................38940
600.28  Added.......................................................8046
600.29  Redesignated from 600.122 and (a)(1), (b), (d) and (f) 
        amended and nomenclature change.............................8047
600.30  Redesignated from 600.104 and nomenclature changes..........8046
600.31  Redesignated from 600.106 and (b)(3) amended and 
        nomenclature changes........................................8046
600.32  Redesignated from 600.108 and (d) amended and nomenclature 
        changes.....................................................8047
600.33  Redesignated from 600.118...................................8047
600.100  (a) revised; (b) amended...................................8046
600.101  Amended....................................................8046
600.102  (c) amended................................................8046
600.103  (g) amended................................................8046
600.104  Redesignated as 600.30 and nomenclature changes............8046
600.105  (b)(3) amended.............................................8046
600.106  Redesignated as 600.31 and (b)(3) amended and 
        nomenclature changes........................................8046
    (c) revised....................................................12140
600.107  (a) revised................................................5262
    (e) revised.....................................................8046
600.108  Redesignated as 600.32 and (d) amended and nomenclature 
        changes.....................................................8047
600.109  (d) amended................................................8047
600.110  Amended....................................................8047
600.111  (a)(1) amended.............................................8047
600.112  (f)(1) amended.............................................8047
600.116  (g) amended................................................8047
600.117  (d)(1) introductory text amended; (d)(3) revised...........8047
600.118  (b)(1) revised.............................................5262
    Redesignated as 600.33..........................................8047
600.119  (b) revised; (c)(1)(ii) removed; (c)(2)(ii) and (d) 
        amended.....................................................8047

[[Page 935]]

600.122  Redesignated as 600.29 and (a)(1), (b), (d) and (f) 
        amended and nomenclature change.............................8047
600.200--600.207 (Subpart C)  Revised...............................5265
600.200  (a) revised; (b) amended...................................8047
600.203  Nomenclature change........................................8047
600.204  (b)(4) amended.............................................8047
600.205  Revised....................................................8047
600.206  Introductory text and (c) amended..........................8047
600.400--600.452 (Subpart E)  Added...........................8045, 8087
    Nomenclature change.............................................8047
600.401  Heading revised............................................8047
600.402  Amended....................................................8047
600.406  (d) added..................................................8047
600.422  Table amended..............................................8047
625  Authority citation revised....................................20511
625  Appendix A revised............................................20511
Chapter III
730  Added.........................................................36962
Chapter X
1004  Revised......................................................15661
1010  Authority citation revised............................11241, 18076
1010.217  Added....................................................18076
1010.403  (a) revised; (f) added...................................11241
1010  Appendix I revised...........................................11241
    Appendix I corrected...........................................12497
1013  Added........................................................44385
1015  Added........................................................24624
1015.1  Introductory text and (a) corrected........................27798
1015.2  (a) corrected..............................................27798
1015.3  (c) introductory text corrected............................27798
1015.4  (b) corrected..............................................27798
1035  Heading revised..............................................38940
1035.1  (a) revised................................................38940
1035.2  Revised....................................................38940
1035.4  Amended....................................................38940
1035.15  Amended...................................................38940
1035  Appendix A amended...........................................38940
1036  Added; nomenclature change............................19172, 19204
1036.105  (g)(3), (t)(3), (w), (x), (y), and (z) added.............19172
1036.110  (c)(1) added.............................................19173
1036.215  (a) added................................................19173
1036.312  (b)(1), (d)(1), (f), and (g) added.......................19173
1036.313  (a)(1) added.............................................19173
1036.314  (d)(1) (v), (vi), (vii), and (viii) added................19173
1036.315  (c) added................................................19173
1036.411  (c)(1), (f)(1), (h), (i), and (j) added..................19173
1036.412  (a)(1) added.............................................19173
1036.600--1036.615 (Subpart F)  Added..............................19173

                                  1989

10 CFR
                                                                   54 FR
                                                                    Page
Chapter II
500  Authority citation revised....................................52889
500.2  Amended.....................................................52889
501  Authority citation revised; nomenclature change...............52891
501.2  (a) amended.................................................52891
501.6  Revised.....................................................52891
501.7  (a)(12) removed; (a)(13) redesignated as (a)(12); (b) 
        revised....................................................52891
501.9  Revised.....................................................52891
501.10  Revised....................................................52891
501.11  Revised....................................................52891
501.12  Revised....................................................52891
501.14  Revised....................................................52891
501.31  (a) revised................................................52892
501.33  (a) revised................................................52892
501.35  (b) revised................................................52892
501.51  Heading, (a), (b) (2) and (3), and (d)(2)(ii) and (3) 
        revised....................................................52892
501.56  Removed....................................................52892
501.60--501.69 (Subpart F)  Heading revised........................52892
501.60  (a) (1), (2), and (3) revised..............................52892
501.61  Added......................................................52892
501.63  (a)(2) revised.............................................52893
501.65  Revised....................................................52893
501.68  (d) revised................................................52893
501.103  (c) revised...............................................52893
501.190  Revised...................................................52893
501.191  (a) revised...............................................52893
501.192  Removed...................................................52893
503  Authority citation revised; nomenclature change...............52893
503.1--503.3 (Subpart A)  Heading revised..........................52893
503.1  Revised.....................................................52893
503.2  Revised.....................................................52893
503.3  Removed.....................................................52893

[[Page 936]]

503.6  (b)(4) and (d)(1) amended; (d)(4) revised...................52893
503.8  (a) revised.................................................52894
503.9  (a) revised.................................................52894
503.10  (a) revised................................................52894
503.11  (a) revised................................................52894
503.13  (a) introductory text and (1) and (b) introductory text 
        revised....................................................52894
503.14  Revised....................................................52894
503.20  (b) revised................................................52894
503.21  (a)(4) revised; (c) removed; (d) redesignated as (c).......52894
503.22  (a)(3) introductory text revised...........................52894
503.23  (b)(8) and (d)(1)(ii) revised..............................52894
503.24  (a)(3) revised.............................................52894
503.25  (a)(3) revised.............................................52894
503.31  (a) (3) and (5) revised....................................52895
503.32  (a) (3) and (5) revised; (c) removed.......................52895
503.33  (a) (2) and (4) revised....................................52895
503.34  (a)(2), (c) (8) and (10), and (d)(1) (ii) and (iii) 
        revised....................................................52895
503.35  (a)(2) introductory text, (3) and (5) revised..............52895
503.36  (a) (4) through (6) revised; (7) added.....................52895
503.37  Revised....................................................52895
503.38  (a)(3) revised; (b) and (d) removed; (c) and (e) 
        redesignated as (b) and (c)................................52896
503.39  Removed....................................................52896
503.40  Removed....................................................52896
503.41  Removed....................................................52896
503.42  Removed....................................................52896
503.43  Removed....................................................52896
504  Authority citation revised; nomenclature change...............52896
504.1 (Subpart A)  Removed.........................................52896
504.2--504.9 (Subpart B)  Heading removed..........................52896
504  Appendix II revised...........................................52896
508  Removed.......................................................52897
516  Removed.......................................................52897
590  Revised.......................................................53531
600.2  (f)(1) (i) and (iii) removed; (f)(1) (ii) and (iv) through 
        (vii) redesignated as (f)(1)(i) and (ii) through (v).......23959
600.3  Amended.....................................................41945
600.9  (a)(1), (c) (8), (10) and (12)(vi) amended..................41946
600.10  (b) removed; (a) redesignated as (b) and revised; (a) 
        added......................................................23959
600.14  (a) amended................................................23959
600.16  (a) revised; (b) and (c) redesignated as (h) and (i); new 
        (b) through (g) added......................................41946
600.20  (c) amended................................................23959
600.28  (b)(4) removed.............................................23959
600.30  (a)(2) amended.............................................23959
600.31  (d) revised................................................41947
600.32  (c)(2) revised; (d) removed; (e) and (f) redesignated as 
        (d) and (e); new (d) and new (e) revised...................41948
600.102  (b)(1) amended............................................23959
600.103  (b)(6) and (g) revised....................................41948
600.114  (b)(1) (ii) and (iv) amended..............................23959
600.119  (a)(1) and (c)(2)(i) revised..............................23959
600.207  (b) (7), (8) and (9)(iii) amended.........................23959
600.305  (c) redesignated as (b)(2)(ii)(C) and amended.............23960
600.315  Amended...................................................23960
600.402  Amended...................................................23960
600.403  (a)(3)(i) amended.........................................23960
Chapter X
1018  Added; interim.................................................773
1036  Heading and authority citation revised........................4952
    Technical correction............................................6363
1036.305  (c) (3) and (4) amended; (c)(5) added; interim......4950, 4952
1036.320  (a) revised; interim................................4950, 4953
1036.600--1036.615 (Subpart F)  Redesignated as 1036.700--1036.715 
        (Subpart G); interim........................................4953
1036.700--1036.715 (Subpart G)  Redesignated from 1036.600--
        1036.615 (Subpart G); interim...............................4953
1036.600--1036.630 (Subpart F)  Added; interim................4950, 4953
1036  Appendix C added; interim...............................4951, 4953
1039  Regulations at 52 FR 48017 confirmed; see regulation 
        codified at 49 CFR 24.................................8912, 8913

[[Page 937]]

                                  1990

10 CFR
                                                                   55 FR
                                                                    Page
Chapter II
590.201  (a) corrected.............................................14916
590.202  (a) and (b)(5) corrected..................................18227
590.304  (d) corrected.............................................14916
590.310  Corrected.................................................14916
590.315  (d) corrected.............................................14916
600  Class deviations..............................................21008
600.16  (a)(1) compliance date extended.............................9109
600.34  Added; interim..............................................6746
601  Added; interim...........................................6737, 6746
605  Revised.......................................................10036
Chapter X
1036.600--1036.635 (Subpart F)  Regulation at 54 FR 4950, 4953 
        confirmed; revised..................................21688, 21691
1036  Appendix C regulation at 54 FR 4951, 4953 confirmed; revised
                                                            21690, 21691
1040  Authority citation revised...................................52140
1040.73  (c) revised; eff. 1-18-91..........................52138, 52140

                                  1991

10 CFR
                                                                   56 FR
                                                                    Page
Chapter III
710.1--710.39  Designated as Subpart A; nomenclature change........10071
710.1--710.39 (Subpart A)  Appendix A redesignated from Appendix A 
        to Part 710................................................10071
710.50--710.60 (Subpart B)  Added..................................10071
710  Appendix A redesignated as Appendix A to Subpart A............10071
715  Added.........................................................55064
745  Added..................................................28012, 28018
745.101  (b)(5) introductory text corrected........................29756
745.103  (f) corrected.............................................29756
961.11  Amended; eff. 1-30-92......................................67659
Chapter X
1048  Added; interim................................................1910
    Hearing cancelled...............................................9611
1048.7  Removed; new 1048.7 redesignated from 1048.8...............48096
1048.8  Redesignated as 1048.7.....................................48096
1049  Added........................................................58492
Chapter XVII
Chapter XVII  Established...........................................9609
    Technical correction...........................................13211
1703  Added........................................................21261
    FOIA fee schedule established..................................21590
1704  Added.........................................................9609
    Technical correction....................................13211, 56116
1705  Added........................................................47144

                                  1992

10 CFR
                                                                   57 FR
                                                                    Page
Chapter II
595  Removed.......................................................23523
600.2  (c), (d), (e) and (f) redesignated as (d), (e), (f) and 
        (g); new (c) added.............................................3
600.7  (b)(2)(1)(G) redesignated as (b)(2)(1)(H); new (b)(2)(i)(G) 
        added..........................................................3
600.10  (e)(3) revised.............................................40085
600.12  (c) added......................................................3
600.14  (c) and (e)(1)(ii) revised; (f) amended........................3
600.16  Heading and (a)(3)(ii) revised; (i) amended....................4
600.31  (d)(1) revised; (f)(3) amended; (f)(4) added...................4
    (b)(3) revised.................................................40085
600.103  (b)(6) and (h) revised; (f)(1) amended........................4
600.109  (a) revised...................................................4
600.112  (a) through (d) revised; (e) through (h) redesignated as 
        (f) through (i); new (e) added.................................4
600.113  (b) revised; (e)(1) amended...................................5
600.119  (c)(1) and (d)(2) revised.....................................5
600.120  (c)(1) introductory text revised..............................5
600.125  Added.........................................................5
600.420  (a) introductory text amended.................................5
600.421  (i) revised...................................................5
600.424  (b)(7)(ii) amended............................................5
600.436  (g)(2)(i) amended.............................................5
605  Revised.......................................................40583
Chapter III
707  Added.........................................................32656
708  Added..........................................................7541
Chapter X
1001  Removed......................................................23930
1021  Revised......................................................15144

[[Page 938]]

1023.300--1023.329 (Subpart C)  Added..............................53542
1024.3  (c) revised................................................56441
Chapter XVII
1706  Added........................................................44652

                                  1993

10 CFR
                                                                   58 FR
                                                                    Page
Chapter III
766  Added; interim................................................41162
780  Authority citation revised....................................68734
780.34  (b) revised................................................68734
780.36  Revised....................................................68734
780.45  (d) revised................................................68734
780.47  Revised....................................................68734
780.53  (a)(1) through (4) redesignated as (a)(2) through (5); new 
        (a)(1) added...............................................68735
810.3  Amended.....................................................39638
810.4  Existing text redesignated as (a) and (b); new (a) revised 
                                                                   39638
810.5  Amended.....................................................39638
810.7  (b) amended; (c) through (g) redesignated as (d) through 
        (h); new (c) added.........................................39639
810.8  (a) and (c)(5) revised; (c)(6) added........................39639
810.10  (a) amended................................................39639
810.13  (d) introductory text, (f) and (g) revised; (d)(4) added 
                                                                   39639
810.16  Revised....................................................39639
820  Added.........................................................43692
835  Added.........................................................65485
    Regulation at 58 FR 65485 eff. date corrected to 1-13-94.......67442
860  Revised.......................................................47985
Chapter X
1046  Revised......................................................45791
1046.11  (b)(1) corrected..........................................60102
Chapter XVII
1706.3  (b) corrected..............................................13684
1706.5  (a) introductory text, (3) and (b)(1)(ii) corrected........13684
1706.6  (a)(2) corrected...........................................13684
1706.7  (c)(1) corrected...........................................13684
1706.9  (c)(2) corrected...........................................13684
1706.10  Corrected.................................................13684

                                  1994

10 CFR
                                                                   59 FR
                                                                    Page
600.2  (g)(1)(i) and (ii) amended; interim.........................53265
600.4  (a)(1), (c)(2)(i) and (3) amended; interim..................53265
600.5  Amended; interim............................................53265
600.7  (b)(2) amended; interim.....................................53265
600.9  (c)(19) amended; interim....................................53265
600.10  (e)(3) amended; interim....................................53265
600.12  (c) revised................................................18474
600.14  (c) amended; interim.......................................53265
600.15  (b)(4) amended; interim....................................53265
600.20  (c) amended; interim.......................................53265
600.25  (d) amended; interim.......................................53265
600.26  (d)(1)(i) through (v) amended; interim.....................53265
600.28  (a)(3) and (b) introductory text amended; interim..........53265
600.29  (a)(1), (b) introductory text, (5), (d) and (f) amended; 
        interim....................................................53266
600.31  (b) introductory text, (1), (d)(1) and (f)(4) amended; 
        interim....................................................53266
600.32  (c)(1) amended; interim....................................53266
600.33  (b)(2) amended; interim....................................53266
600.100--600.181 (Subpart B)  Revised; interim.....................53266
600.200--600.207 (Subpart C)  Redesignated as 600.300--600.307 
        (Subpart D); interim.......................................53264
600.200--600.252 (Subpart C)  Redesignated from 600.400--600.452 
        (Subpart E); heading revised; interim......................53264
600.200  (c) amended; interim; interim.............................53266
600.202  (b)(1)(iii) amended; interim..............................53266
600.203  Amended; interim..........................................53266
600.205  Amended; interim..........................................53266
600.206  Introductory text and (c) amended; interim................53266
600.207  (b)(1) amended; interim...................................53266
600.300--600.317 (Subpart D)  Redesignated as 600.400--600.417 
        (Subpart E); interim.......................................53264
600.300--600.307 (Subpart D)  Redesignated from 600.200--600.207 
        (Subpart C); heading revised; interim......................53264
600.302  (d) amended; interim......................................53266
600.303  (c) amended; interim......................................53266
600.306  (a) and (b) amended; interim..............................53266

[[Page 939]]

600.314  (b) introductory text amended; interim....................53266
600.400--600.452 (Subpart E)  Redesignated as 600.200--600.252 
        (Subpart C); interim.......................................53264
600.400--600.417 (Subpart E)  Redesignated from 600.300--600.317 
        (Subpart D); heading revised; interim......................53264
600.441  (e)(2)(i) amended; interim................................53266
Chapter III
710  Authority citation revised....................................35185
    Heading  revised...............................................35185
710.1--710.34 (Subpart  A) Revised.................................35185
765  Added.........................................................26726
766  Revised.......................................................41963
830  Added.........................................................15851
Chapter X
1004.3  Heading revised; (e) added; eff. 1-11-95...................63884
1050  Authority citation revised...................................44896
1050.103  (e) revised..............................................44896
1050.401 (Subpart  D) Revised......................................44896
Chapter XI
Chapter  XI Established............................................16979
1101  Added........................................................16979
1102  Added........................................................27437
Chapter XVII
1703  FOIA fee schedule adjustment.................................21640

                                  1995

10 CFR
                                                                   60 FR
                                                                    Page
Chapter II
515  Removed.......................................................35322
600  Class deviations..............................................17985
    Authority citation revised.....................................65514
600.236  (d), (g), (h) and (i) revised......................19639, 19641
600.500--600.505 (Subpart F)  Added; eff. 1-19-96..................65514
602  Added..........................................................5841
Chapter III
710  Authority citation revised....................................20368
710.50--710.60 (Subpart B)  Revised................................20368
730  Removed.......................................................49198
761  Removed.......................................................49198
762  Removed.......................................................49198
763  Removed.......................................................49198
765.22  (b) amended................................................15017
766.104  (d) amended...............................................15017
790  Removed.......................................................49198
791  Removed.......................................................49198
792  Removed.......................................................49198
794  Removed.......................................................49198
796  Removed.......................................................49198
797  Removed.......................................................49198
798  Removed.......................................................49198
799  Removed.......................................................49198
810.8  (a) revised.................................................43004
905  Added.........................................................54174
Chapter X
1003  Added........................................................15006
1008.12  (a)(2)(ii), (b)(1)(ii)(I), (J), (2)(ii)(K), (L), 
        (3)(ii)(M) and (N) added...................................35836
1020  Removed......................................................49198
1036.100  Revised...........................................33040, 33043
1036.105  Amended...........................................33040, 33044
1036.110  (c) revised.......................................33041, 33044
1036.200  Revised...........................................33041, 33044
1036.215  Revised...........................................33041, 33044
1036.220  Revised...........................................33041, 33044
1036.225  Revised...........................................33041, 33044
1036  Appendixes A and B revised............................33042, 33044
Chapter XVII
1703  FOIA fee schedule adjustment.................................20887

                                  1996

10 CFR
                                                                   61 FR
                                                                    Page
Chapter II
600.1--600.30 (Subpart A)  Revised..................................7166
600.112  (c) amended................................................7165
600.136  Revised....................................................7165
600.204  Amended....................................................7165
600.221  (g)(2) amended.............................................7165
600.224  (b)(4) and (e)(2)(ii) amended..............................7165
600.225  (e) amended................................................7165
    (f) amended.....................................................7166
600.226  (c) amended................................................7166
600.230  (b), (d)(4) and (f)(2) amended.............................7166
600.232  (c)(3) and (g)(2) amended..................................7166
600.236  (c) introductory text and (d)(2) amended...................7166

[[Page 940]]

600.237  (a)(3) and (c)(1) through (4) amended......................7166
600.241  (b)(1), (e)(1)(i), (ii), (2)(ii), (iii) and (3) amended 
                                                                    7166
600.243  (d) amended................................................7166
600.244  (b) amended................................................7166
600.250  (b)(5) amended.............................................7166
600.251  (c), (d) and (e) amended...................................7166
600.300--600.307 (Subpart D)  Removed...............................7165
600.402  (d) amended................................................7166
600.403  (c) amended................................................7166
600.405  (b)(2)(ii)(C) amended......................................7166
600.415  Amended....................................................7166
Chapter III
784  Added.........................................................36614
830  Ruling.........................................................4209
835  Ruling.........................................................4209
Chapter X
1003.1  Amended....................................................35114
1003.20  (a) amended...............................................35114
1010  Revised; interim.............................................35088
1021.104  (b) amended..............................................36239
1021.105  Revised..................................................36239
1021.310  Revised..................................................36239
1021.311  (f) removed; (g) redesignated as (f).....................36239
1021.312  Removed..................................................36239
1021.315  (b) and (d) revised; (e) added...........................36239
1021.322  (b)(1) removed; (b)(2) through (5) redesignated as 
        (b)(1) through (4).........................................36239
1021.400--1021.410 (Subpart D)  Appendixes A and B amended.........36239
    Appendix B amended......................................36240, 36241
    Appendixes B and C amended.....................................36242
    Appendix D amended.............................................36243
    Appendixes B, C and D amended; eff. 1-6-97.....................64608
1035  Removed......................................................39855
1036.105  Amended..................................................39856
1036.110  (c)(1) and (2) added.....................................39856
1036.215  (a) and (b) added........................................39856
1036.312  (b)(1), (d)(1) and (e)(1) removed; (f) and (g) amended 
                                                                   39856
1036.313  (a)(1) amended...........................................39856
1036.314  (d)(1)(vi) removed; (d)(1)(vii) and (viii) redesignated 
        as (d)(1)(vi) and (vii)....................................39856
1036.315  (c) removed..............................................39856
1036.411  (c)(1) and (f)(1) removed; (h) and (j) amended...........39856
1036.412  (a)(1) removed...........................................39856
1036.700  Revised..................................................39856
1036.705  Introductory text amended; (b) revised...................39857
1036.710  Removed..................................................39857
1036.715  Heading revised; introductory text and (a) through (g) 
        amended....................................................39857
Chapter XVII
1703  FOIA fee schedule adjustment.................................28725

                                  1997

10 CFR
                                                                   62 FR
                                                                    Page
501  Authority citation revised....................................46183
501.181  (c)(1) revised............................................46183
600.126  (a), (b) and (c) revised...........................45939, 45940
600.226  (a), (b) introductory text and (1) revised.........45939, 45940
601  Authority citation revised....................................46183
601.400  (a), (b) and (e) revised..................................46183
601  Appendix A amended............................................46184
Chapter III
703  Removed.......................................................24805
820  Authority citation revised....................................46184
820.80--820.81 (Subpart G)  Added..................................46184
820  Appendix A amended; interim............................52481, 52482
Chapter X
1008.12  (b)(2)(ii)(M) and (3)(ii)(O) added; eff. 1-23-98..........67519
1013  Authority citation revised...................................46184
1013.3  (a)(1)(iv) and (b)(1)(ii) revised..........................46184
1017  Authority citation revised...................................46184
1017.18  (a) introductory text amended.............................46184
1023  Authority citation added.....................................24805
1023.1--1023.9  Undesignated center heading revised................24806
1023.1  Added......................................................24806

[[Page 941]]

    Section removed from Subpart A.................................24808
1023.2  Added......................................................24806
    Section removed from Subpart A.................................24808
1023.3  Added......................................................24806
    Section removed from Subpart A.................................24808
1023.4  Added......................................................24807
    Section removed from Subpart A.................................24808
1023.5  Added......................................................24807
    Section removed from Subpart A.................................24808
1023.6  Added......................................................24807
    Section removed from Subpart A.................................24808
1023.7  Added......................................................24807
1023.8  Added......................................................24807
1023.9  Added......................................................24808
1023.20  Redesignated as 1023.120..................................24808
1023.101  Added....................................................24808
1023.102  Added....................................................24808
1023.120  Redesignated from 1023.20 and amended....................24808
1023.200--1023.203 (Subpart B)  Removed............................24808
1023.327  Amended..................................................24808
1045  Revised; eff. 6-29-98........................................68509
1050  Authority citation revised...................................46184
1050.303  (d) amended..............................................46184
Chapter XVII
1703  FOIA fee schedule adjustments................................30432
1703.103  (b)(12) added; eff. 1-21-98..............................66815
1703.105  (e) added; eff. 1-21-98..................................66815
1703.107  (b)(2)(iv) removed; eff. 1-21-98.........................66816
1703.108  (b) revised; eff. 1-21-98................................66816