[Federal Register Volume 64, Number 62 (Thursday, April 1, 1999)]
[Rules and Regulations]
[Pages 15636-15653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7842]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 2, 10, 11, 25, and 95

RIN 3150-AF97


Conformance to National Policies For Access to and Protection of 
Classified Information

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its 
regulations to conform the requirements for the protection of and 
access to classified information to new national security policy 
documents. This final rule is necessary to ensure that classified 
information in the possession of NRC licensees, certificate holders, 
and others under the NRC's regulatory requirements is protected in 
accordance with current national policies.

EFFECTIVE DATE: May 3, 1999.

FOR FURTHER INFORMATION CONTACT: James J. Dunleavy, Division of 
Facilities and Security, Office of Administration, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001 telephone (301) 415-
7404, E-mail [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On August 3, 1998 (63 FR 41206), the NRC published a proposed rule 
in the Federal Register to amend 10 CFR parts 10, 11, 25, and 95 to 
conform its requirements for the protection of classified Information 
at licensee, certificate holder and other facilities to new national 
security policy documents. The national requirements for the protection 
of and access to classified National Security Information were revised 
by the issuance of the

[[Page 15637]]

National Industrial Security Program Operating Manual (NISPOM), 
Executive Order 12958, ``Classified National Security Information,'' 
dated April 17, 1995, and Executive Order 12968, ``Access to Classified 
Information,'' dated August 2, 1995. The final rule amends the 
provisions of 10 CFR parts 2, 10, 11, 25, and 95 that deal with 
requirements for access to and protection of classified information 
that have been changed or added by the NISPOM, the executive orders, or 
new national guidelines on the scope and adjudication of personnel 
security investigations. Specifically, changes include a new definition 
in 10 CFR part 10 for the ``Personnel Security Review Panel'' and 
revisions to a number of definitions in parts 10, 11, 25, and 95 to 
reflect a change in the name of the Division of Security to the 
Division of Facilities and Security. Additionally, several changes to 
definitions were made to reflect: A change in responsibility for 
certain decisions from the Executive Director for Operations to the 
Deputy Executive Director for Management Services; revised due process 
procedures; a new requirement for a facility clearance for those 
licensees or others who require access to classified information at a 
facility other than their own; additional information on the scope and 
reporting requirements for the Foreign Ownership, Control, or Influence 
(FOCI) program; a requirement to resubmit an update to the Security 
Practice Procedures Plan every five years; a requirement for a visitor 
control program; and greater specificity as to when particular reports 
are required.
    The rule also adopts new requirements in areas where the executive 
orders, the NISPOM, or the adjudicative guidelines require specific 
procedures not included in the previous versions of the rules. These 
new requirements include: The change to a three member Personnel 
Security Review Panel from three Review Examiners, acting individually, 
reviewing the record of a case where an individual's eligibility for 
access authorization or employment clearance is in question; an 
explicit notification that individuals whose eligibility for access 
authorization or employment clearance is in question have the right to 
be represented by counsel or other representative at their own expense 
and that they have a right to the documents, records, and reports which 
form the basis for the question of their eligibility to the extent they 
are unclassified and do not reveal a confidential source, and to the 
entire investigative file, as permitted by national security and other 
applicable law; a change to the period between reinvestigations for 
``L'' and ``R'' access authorizations from five years to ten years; a 
change to the fee schedules of 10 CFR parts 11 and 25 due to a change 
in the investigative requirements for ``Q,'' ``L,'' ``U,'' and ``R'' 
access authorizations; and changing the security classification 
markings to conform to Executive Order 12958.
    The rule also eliminates the proposed changes to Secs. 25.15 and 
95.35 that would have permitted access to most Secret Restricted Data 
based on an ``L'' clearance rather than a ``Q'' clearance.
    The rule also incorporates a change to Secs. 25.11 and 95.11, 
``Specific exemptions,'' to clarify requirements for requesting and 
approving exemptions. This change was based on experience with 
exemption requests following publication of the proposed rule and is 
intended to follow more closely the language of Sec. 50.12, ``Specific 
exemptions.''
    Finally, the rule amends paragraph 11.15(e)(1) and appendix A to 10 
CFR part 25 to reflect recent Office of Personnel Management 
investigative cost changes. Most of the changes have resulted in 
significant cost decreases for affected parties. For example, the cost 
of a single scope background investigation for a ``U'' or ``Q'' access 
authorization is reduced from $3275 to $2856. Where costs have 
increased, it has been on the order of two to three dollars.

II. Comments on the Proposed Rule

    The Commission received three letters commenting on the proposed 
rule, one from the U.S. Enrichment Corporation, one from the Department 
of Defense (DoD), and one from the Department of Energy (DOE). Copies 
of the letters are available for public inspection and copying for a 
fee at the Commission's Public Document Room, located at 2120 L Street, 
NW. (Lower Level), Washington, DC.

Comments from the USEC

    Comment: The commenter provided a comment on 10 CFR 2.790(d), 
``Public inspections, exemptions, requests for withholding.'' They 
stated that ``10 CFR 2.790(d) now provides for protection of a 
licensee's physical security plan and material control and accounting 
program documents. It seems appropriate to protect classified matter 
protection plans from public disclosure in the same way as physical 
security plans and fundamental nuclear material controls plans are 
protected.''
    Response: Classified matter protection plans have always been 
considered as a part of the physical protection plan and have been 
protected from public disclosure. NRC, however, has no objection to 
clarifying this issue in the rulemaking and has adopted the 
recommendation by adding ``classified matter protection'' to 
Sec. 2.790(d).
    Comment: The commenter recommended that Sec. 11.3 be clarified to 
indicate more prominently that the scope of the rule is only applicable 
to those licensees who possess formula quantities of strategic special 
nuclear material.
    Response: Section 11.3 has been modified for clarity.
    Comment: The commenter noted that ``As currently described in 10 
CFR 95.5, a container must have both a ``Test Certification Label'' and 
a ``General Services Administration Approved Security Container'' 
marking to qualify as a ``Security Container.'' Since either reflects 
acceptable qualification, one or the other should be adequate and both 
should not be required.''
    Response: Section 95.5 has been modified for clarity.
    Comment: The commenter stated that ``It is unclear (to USEC) what 
constitutes a significant event or change affecting foreign ownership, 
control, or influence (FOCI). It is our understanding that the NRC is 
responsible for making FOCI determinations. Therefore, the NRC should 
establish criteria that licensees and certificate holders can use to 
make the determination of what events/changes should be reported to the 
NRC. For example, in 10 CFR 95.19(b) the NRC has described what `minor, 
non-substantive changes' include.''
    Response: The rule language in 10 CFR 95.17 has been modified to 
describe the types of significant changes that will require NRC 
notification.
    Comment: The commenter stated that ``The language of 10 CFR 
95.19(a) indicates that any change to the security procedures and 
controls would require the certificate holder to obtain prior Cognizant 
Security Agency (CSA) approval. The rule, however, only requires prior 
approval of substantive changes. Further, the language is inconsistent 
with other parts of the regulations with regard to the definition of 
``substantive.'' Section 50.54(p)(1), the process followed by the 
agency concerning the preparation and maintenance of safeguards 
contingency plan procedures for part 50 licensees, describe substantive 
changes as those that decrease the effectiveness of the security plan. 
Therefore, to (i) clarify that prior approval is only needed for 
substantive changes, and (ii) be consistent with other parts of the 
regulations, USEC requests that the rule

[[Page 15638]]

language in 10 CFR 95.19(a) be modified. * * *''
    Response: It has always been NRC policy that only substantive 
changes require prior CSA approval. Section 95.19(a) clearly states, 
``Except as specified in paragraph (b) of this section each licensee * 
* * shall obtain prior approval * * *.'' Section 95.19(b) states ``A 
licensee or other person may effect a minor, non-substantive change to 
an approved Standard Practice Procedures Plan for the safeguarding of 
classified matter without receiving prior CSA approval * * *.'' The 
current language is clear. The examples cited as substantive changes in 
Sec. 95.19(a) fully qualify as changes affecting the security of NRC 
classified matter. If a licensee were to change a classified mailing 
address without notification to the CSA, it is likely that other 
facilities would continue to send classified information to the old 
classified mailing address which was no longer qualified to receive it. 
That would create a serious threat of compromise to the information. 
The change to a new location for the approved facility would have 
potential major impacts on the security of the classified matter. 
Facility approval is granted based on the physical and procedural 
safeguards at a given location. If a licensee could move the facility 
without prior approval, it would be very similar to granting the right 
to initially approve themselves. Therefore these comments have not been 
adopted.
    Comment: The commenter indicated that ``10 CFR 95.25(i) requires 
the inventory of a container found open. Because the NRC does not 
require an initial inventory of container contents, it is not clear 
what purpose the latter inventory serves. Regulations (10 CFR 95.41) 
were revised in 1996 to remove inventory requirements for classified 
documents, with the exception of external receipt and dispatch records. 
Further, inventories may no longer have much meaning since documents, 
computer disks, and other ADP media are easily copied with today's 
technology. Finally, 10 CFR 95.25(i) has reporting language that is 
unnecessary and should be eliminated. Finding an open security 
container would constitute an infraction and would, therefore, be 
reportable under 10 CFR 95.57.''
    Response: For the reasons cited by the commenter, the rule language 
in Section 95.25(i) has been modified to eliminate the requirements for 
an inventory and report.
    Comment: The commenter stated that ``10 CFR 95.25(j)(7) requires 
that keys and spare locks be changed or rotated every 12 months. It is 
not clear why locks and keys are treated differently than combinations. 
Combinations only require change out if evidence of compromise exists. 
Changing locks every 12 months can be an expensive procedure at a large 
facility employing several thousand people.'' Because both devices 
serve the same purpose (i.e., physical controls which deny access to 
classified matter), the commenter believes they should be treated 
consistently.
    Response: Although the comment is not unreasonable, the national 
requirement, as reflected in section 5-310, ``Supervision of Keys and 
Padlocks,'' of the NISPOM, is explicit. It states, ``Use of key-
operated padlocks are subject to the following requirements: (i) A key 
and lock custodian shall be appointed to ensure proper custody and 
handling of keys and locks used for protection of classified material; 
* * *; (vii) locks shall be changed or rotated at least annually, and 
shall be replaced after loss or compromise of their operable keys; * * 
*'' The NRC requirement is a direct implementation of the national 
policy.
    Comment: The commenter noted that ``10 CFR 95.33(f) provides an 
example of the type of refresher briefing that would be appropriate to 
meet the requirements of this section, namely, the use of ``audio/video 
materials and by issuing written materials.'' The example appears to 
preclude written or audio/video by themselves, both of which are 
adequate training tools. The commenter requests that the rule language 
in 10 CFR 95.33(f) be modified to permit either audio-visual or written 
materials.
    Response: It has never been NRC's intent to require both audio-
visual and written materials. We agree with the commenter that either 
alone, or both together, is an acceptable approach. The paragraph has 
been modified to clarify this point.
    Comment: The commenter noted that ``10 CFR 95.34(b)(1) requires 
that certain information concerning foreign visitors be provided to the 
NRC 60 days in advance of the visit. USEC operates a commercial uranium 
enrichment facility and already implements a security program which 
precludes the dissemination/exposure of classified information to 
Foreign Nationals. * * * As a commercial operation with extensive 
foreign customers, USEC cannot operate under such conditions. Our 
security program has already been reviewed and determined to be 
effective in precluding foreign nationals from gaining access to 
classified information. Security plans for all visits by foreign 
nationals are prepared, maintained, and available for review by the 
NRC. In this way, the NRC can still track the movement of foreign 
nationals and analyze potential threats. * * * Finally, the retention 
period for maintenance of records described in 10 CFR 95.34(b)(2) calls 
for five years. It does not appear that this change is related to the 
National Industrial Security Program.''
    Response: Although the NISPOM requires security controls for 
foreign nationals, it does not contain a requirement for a 60-day 
advance notification of visits by foreign nationals. NRC agrees that 
the proposed 60-day requirement is not needed and that the existing 
controls dealing with foreign nationals are adequate. However, the 
requirement to maintain the records of these visits for five years is 
consistent with the NRC requirements under Sec. 95.36 for the 
International Atomic Energy Agency (IAEA) inspectors. NRC has modified 
Sec. 95.34 to remove the 60-day notification requirement but is 
maintaining the five-year recordkeeping requirement.
    Comment: The commenter noted that the proposed changes to 
Sec. 95.35 ``. * * * could save hundreds of thousands of dollars by 
essentially eliminating the need for ``Q'' clearances at our 
facilities. However, USEC clearances are maintained by the DOE and we 
are required to follow DOE personnel security regulations per NRC/DOE 
agreement. And although the Secretary of Energy signed the National 
Industrial Security Program required by Presidential Executive Order, 
it should be noted that, DOE's Office of Safeguards and Security does 
not endorse this concept. This discrepancy between the two agencies may 
result in complications for USEC.''
    Response: As noted below, DOE strongly objects to a reduction in 
the investigative requirements for access to Secret Restricted Data 
until such time as DOE and DoD reconcile their significant differences 
in the protection requirements of Secret Restricted Data. Because DOE 
rather than NRC maintains security clearances for the commenter, USEC 
apparently desires to avoid complications that may result from 
differing standards between NRC and DOE. The commenter is the 
organization that would be most affected by this change. No other 
licensee or certificate holder commented on this change. NRC has 
decided to withdraw the proposed change and allow the current 
requirements to remain in effect until DOE and DoD reconcile their 
significant differences in the protection requirements of Secret 
Restricted Data.
    Comment: The commenter stated that ``while the proposed regulations

[[Page 15639]]

(Sec. 95.57) should reduce the number of telephonic reports, it will 
not decrease the greater administrative burden on the certificate 
holder created by the required written reports. NRC should adopt a 
reporting system similar to that used by the power reactor industry and 
required by 10 CFR 73.71. Specifically, 10 CFR 95.57(a) should explain 
what type of event would require a one hour report (similar to 10 CFR 
73.71(a)(1)). * * * Similarly, 10 CFR 95.57(b) should be revised to 
include those events not rising to the level of events described in 10 
CFR 95.57(a). Events involving infractions, losses, or compromises 
should be logged for review. All loggable events should be sent to the 
NRC on a quarterly basis. * * * The requirement for 30 day written 
reports (follow up) should be eliminated for all except one hour 
reports. Experience has shown that these follow up reports involve 
extensive review by management and are time intensive. By using the 
logging process identified in 10 CFR 73.71, the NRC would still receive 
written indication of an event for inspection review or follow up. Such 
loggable events could show corrective actions or problem report numbers 
for further review if desired. Also, the NRC should consider a single 
point of contact for reportable events. The proposed reporting 
requirements require multiple reports within NRC. * * * Experience has 
shown that time delays may occur before the proper NRC individual can 
be located. This places severe time constraints on a licensee/
certificate holder who must make a determination for reporting and 
notify two separate offices within the NRC of an event. USEC believes 
that the criteria for submission of NRC Form 790 more appropriately 
belongs in Sec. 95.37, ``Classification and Preparation of Documents.'' 
Additionally, NRC has changed the requirement for submission of Form 
790 from monthly to ``* * * as completed basis or every 30 days.'' 
Typically, the NRC has used the 30 day time period for submission of 
reports or events, not standard document submission. Because USEC files 
this form on a regular basis, we prefer to keep the current wording, * 
* * on a monthly basis. * * *''
    Response: NRC agrees that examples of events requiring one-hour 
reporting should be included and Sec. 95.57(a) has been revised to 
include these examples. NRC is also amenable to reducing the formal 
reporting requirements for security infractions to accommodate the 
logging procedure recommended by the commenter. We do not agree that 
quarterly reporting is adequate and have changed the rule to provide 
for submission of logs on a monthly basis. NRC does not agree that a 
single point of contact is practical for events of a high level of 
significance (note that we have agreed above to significantly reduce 
the number of events that will qualify for one-hour reporting). Because 
only truly serious events will now qualify, it is important that both 
the CSA and the NRC regional office be notified promptly. This change 
has not been adopted. NRC agrees that restoring the reporting 
requirement for the NRC Form 790 to ``monthly'' is acceptable and has 
so revised Sec. 95.57(c). However, NRC will not remove the ``as 
completed'' option for those entities that prefer to submit information 
electronically as documents are classified. NRC does not see any 
particular advantage to moving the reporting requirement to a different 
paragraph and has not adopted that recommendation. The commenter also 
provided comments on the NRC document, ``Standard Practice Procedures 
Plan Standard Format and Content for the Protection of Classified 
Matter for NRC Licensees, Certificate Holder, and Related 
Organizations,'' which is not a part of this rulemaking.

Comments From the DoD

    Comment: The commenter noted that ``During the development of the 
NISPOM, it became necessary to resolve dissimilar requirements for the 
handling of RD between the Department of Energy, the Commission, and 
this Department. For the past 40+ years, the Defense Department has 
successfully handled and stored RD according to its classification 
level, protecting SECRET/RD as SECRET national security information. * 
* * We have been working to resolve these differing requirements since 
1995 * * * and that * * * in the interim, in (their) view * * * 
unnecessarily costly background investigations are continuing to be run 
in Energy and the Commission for access to the same information that is 
accessed based on a lesser investigation in the Defense Department. * * 
* Therefore, the Defense Department fully supports Secs. 25.15 and 
95.35 of the referenced proposed rule.''
    Response: NRC does not have significant numbers of licensee or 
certificate holder personnel with ``Q'' clearances. Most of those with 
``Q'' clearances are at USEC. USEC commented that a discrepancy between 
DOE and NRC personnel security requirements for access to Secret 
Restricted Data may result in complications for USEC. As noted above, 
NRC has elected not to make these revisions to its rules until DOE and 
DoD reconcile their significant differences in the protection 
requirements of Secret Restricted Data.

Comments from the Department of Energy (DOE)

    Comment: The commenter stated that they ``. * * * have significant 
concerns that this rule, if amended as stated in your proposal, will 
compromise some of the nations most sensitive nuclear weapons 
information. Our position remains unchanged from our comment to the 
previous revision to this regulation. During the process of developing 
a single security standard for. * * * the protection of classified 
information, it was discovered that significant differences existed 
between the Department of Energy and the Department of Defense in the 
protection of Secret Restricted Data. * * * The two agencies agreed to 
work toward a solution. We are still in the process of reconciling 
those differences. * * * Neither the NISPOM nor the NISPOM Supplement 
allow for access to Secret Restricted Data based on an ``L'' access 
authorization. * * * When information is created, there is no 
distinction within Secret Restricted Data of ``critical'' or ``nuclear 
weapons design, manufacturing, or vulnerability.'' Without the 
identification and marking of this type of information, the 
implementation of the requirement within NRC would be impossible. If 
this requirement were implemented, it poses a potential threat to 
Secret Restricted Data, that is, this country's most sensitive weapons 
design information being accessed by ``L'' cleared individuals.''
    Response: As stated above, because DOE strongly objects to changing 
the rule until DOE and DoD reconcile their significant differences in 
the protection requirements of Secret Restricted Data, and USEC, the 
organization most affected by this aspect of the rule, advised that a 
discrepancy between DOE and NRC on this issue may result in 
complications for them, NRC has decided not to modify Secs. 25.15 and 
95.35 at this time.

III. The Final Rule

    With the exception of the items addressed under ``Comments on the 
Proposed Rule,'' clarifying changes to Secs. 25.11 and 95.11, 
``Specific exemptions,'' a slight change to fees charged for 
investigations in Sec. 11.15 and Appendix A to 10 CFR part 25, and 
minor editorial and clarifying changes, the final rule is the same as 
the proposed rule. The specific changes from the proposed rule are--

[[Page 15640]]

     A slight modification to Sec. 2.790(d) to clarify that it 
applies to plans for the protection of classified matter;
     A modification to Sec. 10.22(d) to clarify what 
information may be provided to an individual whose eligibility for 
access authorization is in question;
     A slight modification to Sec. 11.3 to clarify that it only 
applies to facilities posessing formula quantities of strategic special 
nuclear material;
     A change to the fees charged for personnel security 
investigations in Sec. 11.15 and Appendix A to 10 CFR part 25;
     Modifications to Secs. 25.11 and 95.11, ``Specific 
exemptions,'' to clarify requirements for requesting and approving 
exemptions. This change is based on experience with exemption requests 
following publication of the proposed rule and more closely follows the 
language of Sec. 50.12, ``Specific exemptions.''
     The proposed changes to Secs. 25.15 and 95.35 have been 
withdrawn;
     A clarification of the definition of ``Security 
Container'' in Sec. 95.5;
     The provision of several examples of what constitutes 
``significant events or changes'' affecting the Foreign Ownership, 
Control or Influence status of a facility in Sec. 95.17;
     Section 95.25(i) has been changed to eliminate the 
requirement to inventory the contents of a security container found 
open;
     Section 95.33 has been changed to permit either audio-
visual or written materials for security education;
     Section 95.34 has been changed to eliminate the 
requirement for a 60-day advance notice to NRC visits by foreign 
nationals; and
     Section 95.57 has been changed to provide examples of the 
types of events that would require one-hour reporting, to reduce the 
number of events requiring one-hour reporting, and to replace some of 
the existing reports with a log maintained by a licensee/certificate 
holder.

Small Business Regulatory Enforcement Fairness Act

    In accordance with the Small Business Regulatory Enforcement 
Fairness Act of 1996, the NRC has determined that this action is not a 
major rule and has verified this determination with the Office of 
Information and Regulatory Affairs of OMB.

Environmental Impact: Categorical Exclusion

    The NRC has determined that this final rule is the type of action 
described as a categorical exclusion in 10 CFR 51.22(c)(1). Therefore, 
neither an environmental impact statement nor an environmental 
assessment has been prepared for this final rule.

Paperwork Reduction Act Statement

    This final rule amends information collection requirements that are 
subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et 
seq.). These requirements were approved by the Office of Management and 
Budget, approval numbers 3150-0046, 3150-0047, 3150-0050, and 3150-
0062. The public reporting burden for this information collection is 
estimated to average 12.5 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
information collection. The average burden hours per response for the 
proposed rule was estimated at 8.3 hours instead of 7.5 hours because 
the recordkeeping hours were not included in the burden estimate. The 
final rule burden increase includes the reduction of 8 responses and 4 
burden hours because of the deletion of the requirement at 10 CFR 
95.34(b)(1) for advance notification of foreign visitors. Send comments 
on any aspect of this information collection, including suggestions for 
reducing the burden, to the Records Management Branch (T-6 F33), U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, or by 
Internet electronic mail at [email protected]; and to the Desk Officer, 
Office of Information and Regulatory Affairs, NEOB-10202, (3150
-0046, -0047, -0050, and -0062), Office of Management and Budget, 
Washington, DC 20503.

Public Protection Notification

    If a means used to impose an information collection does not 
display a currently valid OMB control number, the NRC may not conduct 
or sponsor, and a person is not required to respond to, the information 
collection.

Regulatory Analysis

    The Commission has prepared a regulatory analysis for this final 
regulation. The analysis examines the costs and benefits of the 
alternatives considered by the Commission. The analysis is available 
for inspection in the NRC Public Document Room, 2120 L Street, NW 
(Lower Level), Washington, DC. Single copies of the analysis may be 
obtained from James J. Dunleavy, Division of Facilities and Security, 
Office of Administration, U. S. Nuclear Regulatory Commission, 
Washington, DC 20555, telephone: (301) 415-7404, e-mail: JJD[email protected].

Regulatory Flexibility Certification

    As required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 
605(b), the Commission certifies that this rule will not have a 
significant economic impact upon a substantial number of small 
entities. The NRC carefully considered the effect on small entities in 
developing this final rule on the protection of classified information 
and has determined that none of the facilities affected by this rule 
would qualify as a small entity under the NRC's size standards (10 CFR 
2.810).

Backfit Analysis

    The NRC has determined that the backfit rules in 10 CFR 50.109 and 
76.76 apply to this rulemaking initiative because it falls within the 
criteria in 10 CFR 50.109(a)(1) and 76.76(a)(1). However, a backfit 
analysis is not required because this rulemaking falls under the 10 CFR 
50.109(a)(4)(iii) and 76.76(a)(4)(iii) exceptions for a regulatory 
action that involves ``redefining what level of protection to the . . . 
common defense and security should be regarded as adequate.'' 
Furthermore, the NRC has determined that this rulemaking does not 
constitute a backfit under the backfit rule in 10 CFR 72.62(a).

List of Subjects

10 CFR Part 2

    Administrative practice and procedure, Antitrust, Byproduct 
material, Classified information, Environmental protection, Nuclear 
material, Nuclear power plants and reactors, Penalties, Sex 
discrimination, Source material, Special nuclear material, Waste 
treatment and disposal.

10 CFR Part 10

    Administrative practice and procedure, Classified information, 
Criminal penalties, Investigations, Security measures.

10 CFR Part 11

    Hazardous materials--transportation, Investigations, Nuclear 
Materials, Reporting and recordkeeping requirements, Security measures, 
Special nuclear material.

10 CFR Part 25

    Classified information, Criminal penalties, Investigations, 
Reporting and recordkeeping requirements, Security measures.

[[Page 15641]]

10 CFR Part 95

    Classified information, Criminal penalties, Reporting and 
recordkeeping requirements, Security measures.
    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; and 5 U.S.C. 553; the NRC is adopting the 
following amendments to 10 CFR parts 2, 10, 11, 25, and 95.

PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND 
ISSUANCE OF ORDERS

    1. The authority citation for part 2 continues to read as follows:

    Authority: Secs.161, 181, 68 Stat. 948, 953, as amended (42 
U.S.C. 2201, 2231); sec. 191, as amended, Pub. L. 87-615, 76 Stat. 
409 (42 U.S.C. 2241); sec. 201, 88 Stat.1242, as amended (42 U.S.C. 
5841); 5 U.S.C. 552.
    Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 
105, 68 Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42 
U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); sec. 114(f), Pub. 
L. 97-425, 96 Stat. 2213, as amended (42 U.S.C. 10134(f)); sec. 102, 
Pub. L. 91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 
88 Stat. 1248 (42 U.S.C. 5871). Sections 2.102, 2.103, 2.104, 2.105, 
2.721 also issued under secs. 102, 103, 104, 105, 183, 189, 68 Stat. 
936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 2134, 
2135, 2233, 2239). Section 2.105 also issued under Pub. L. 97-415, 
96 Stat. 2073 (42 U.S.C. 2239). Sections 2.200-2.206 also issued 
under secs. 161 b, i, o, 182, 186, 234, 68 Stat. 948-951, 955, 83 
Stat. 444, as amended (42 U.S.C. 2201 (b), (i), (o), 2236, 2282); 
sec. 206, 88 Stat 1246 (42 U.S.C. 5846). Sections 2.205(j) also 
issued under Pub. L. 101-410, 104 Stat. 890, as amended by section 
31001(s), Pub. L. 104-134, 110 Stat. 1321-373 (28 U.S.C. 2461 note). 
Sections 2.600-2.606 also issued under sec. 102, Pub. L. 91-190, 83 
Stat. 853, as amended (42 U.S.C. 4332). Sections 2.700a, 2.719 also 
issued under 5 U.S.C. 554. Sections 2.754, 2.760, 2.770, 2.780 also 
issued under 5 U.S.C. 557. Section 2.764 also issued under secs. 
135, 141, Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 
10161). Section 2.790 also issued under sec. 103, 68 Stat. 936, as 
amended (42 U.S.C. 2133) and 5 U.S.C. 552. Sections 2.800 and 2.808 
also issued under 5 U.S.C. 553. Section 2.809 also issued under 5 
U.S.C. 553 and sec. 29, Pub. L. 85-256, 71 Stat. 579, as amended (42 
U.S.C. 2039). Subpart K also issued under sec. 189, 68 Stat. 955 (42 
U.S.C. 2239); sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42 U.S.C. 
10154). Subpart L also issued under sec. 189, 68 Stat. 955 (42 
U.S.C. 2239). Appendix A also issued under sec. 6, Pub. L. 91-560, 
84 Stat. 1473 (42 U.S.C. 2135).

    2. In Sec. 2.790 paragraph (d)(1) is revised to read as follows:


Sec. 2.790  Public Inspections, exemptions, requests for withholding.

* * * * *
    (d) * * *
    (1) Correspondence and reports to or from the NRC which contain 
information or records concerning a licensee's or applicant's physical 
protection, classified matter protection, or material control and 
accounting program for special nuclear material not otherwise 
designated as Safeguards Information or classified as National Security 
Information or Restricted Data.
* * * * *

PART 10--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR 
ACCESS TO RESTRICTED DATA OR NATIONAL SECURITY INFORMATION OR AN 
EMPLOYMENT CLEARANCE

    3. The authority citation for part 10 is revised to read as 
follows:

    Authority: Secs. 145, 161, 68 Stat. 942, 948, as amended (42 
U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 
5841); E.O. 10450, 3 CFR parts 1949--1953 COMP., p. 936, as amended; 
E.O. 10865, 3 CFR 1959-1963 COMP., p. 398, as amended; 3 CFR Table 
4.; E.O. 12968, 3 CFR 1995 COMP., p.396.

    4. Section 10.1 is revised to read as follows:


Sec. 10.1  Purpose.

    (a) This part establishes the criteria, procedures, and methods for 
resolving questions concerning:
    (1) The eligibility of individuals who are employed by or 
applicants for employment with NRC contractors, agents, and licensees 
of the NRC, individuals who are NRC employees or applicants for NRC 
employment, and other persons designated by the Deputy Executive 
Director for Management Services of the NRC, for access to Restricted 
Data pursuant to the Atomic Energy Act of 1954, as amended, and the 
Energy Reorganization Act of 1974, or for access to national security 
information; and
    (2) The eligibility of NRC employees, or the eligibility of 
applicants for employment with the NRC, for employment clearance.
    (b) This part is published to implement the Atomic Energy Act of 
1954, as amended, the Energy Reorganization Act of 1974, as amended, 
Executive Order 10865, 25 FR 1583 (February 24, 1960) Executive Order 
10450, 18 FR 2489 (April 27, 1954), and Executive Order 12968, 60 FR 
40245 (August 2, 1995).
    5. In Sec. 10.2, paragraph (d) is revised to read as follows:


Sec. 10.2  Scope.

* * * * *
    (d) Any other person designated by the Deputy Executive Director 
for Management Services of the Nuclear Regulatory Commission.
    6. In Sec. 10.5, the introductory text is removed, the paragraph 
designations preceding each of the defined terms are removed, the 
definitions are rearranged in alphabetical order, and the definitions 
of Access Authorization, Employment Clearance, National Security 
Information, are revised and the definition of NRC Personnel Security 
Review Panel is added to read as follows:


Sec. 10.5  Definitions.

    Access authorization means an administrative determination that an 
individual (including a consultant) who is employed by or an applicant 
for employment with the NRC, NRC contractors, agents, and licensees of 
the NRC, or other person designated by the Deputy Executive Director 
for Management Services, is eligible for a security clearance for 
access to Restricted Data or National Security Information.
* * * * *
    Employment Clearance means an administrative determination that an 
individual (including a consultant) who is an NRC employee or applicant 
for NRC employment and other persons designated by the Deputy Executive 
Director for Management Services of the NRC is eligible for employment 
or continued employment pursuant to subsection 145(b) of the Atomic 
Energy Act of 1954, as amended.
* * * * *
    National Security Information means information that has been 
determined pursuant to Executive Order 12958 or any predecessor order 
to require protection against unauthorized disclosure and that is so 
designated.
* * * * *
    NRC Personnel Security Review Panel means an appeal panel appointed 
by the Deputy Executive Director for Management Services and consisting 
of three members, two of whom shall be selected from outside the 
security field. One member of the Panel shall be designated as 
Chairman.
* * * * *
    7. In Sec. 10.10 the introductory text of paragraph (d) is revised 
to read as follows:


Sec. 10.10  Application of the criteria.

* * * * *
    (d) In resolving a question concerning the eligibility or continued 
eligibility of an individual for access authorization and/or employment 
clearance, the

[[Page 15642]]

following principles shall be applied by the Director, Division of 
Facilities and Security, Hearing Examiners, and the NRC Personnel 
Security Review Panel:
* * * * *
    8. In Sec. 10.12, paragraphs (a) and (c) are revised to read as 
follows:


Sec. 10.12  Interview and other investigation.

    (a) The Director, Division of Facilities and Security, Office of 
Administration, may authorize the granting of access authorization and/
or employment clearance on the basis of the information in the 
possession of the NRC or may authorize an interview with the 
individual, if the individual consents to be interviewed, or other 
investigation as the Director deems appropriate. On the basis of this 
interview and/or an investigation, the Director may authorize the 
granting of access authorization and/or employment clearance.
* * * * *
    (c) If the Director, Division of Facilities and Security, cannot 
make a favorable finding regarding the eligibility of an individual for 
access authorization and/or employment clearance, the question of the 
individual's eligibility must be resolved in accordance with the 
procedures set forth in Sec. 10.20 et seq.
    9. Section 10.20 is revised to read as follows:


Sec. 10.20  Purpose of the procedures.

    These procedures establish methods for the conduct of hearings and 
administrative review of questions concerning an individual's 
eligibility for an access authorization and/or an employment clearance 
pursuant to the Atomic Energy Act of 1954, as amended, and Executive 
Orders 10450, 10865, and 12968 when a resolution favorable to the 
individual cannot be made on the basis of the interview or other 
investigation.
    10. Section 10.21 is revised to read as follows:


Sec. 10.21  Suspension of access authorization and/or employment 
clearance.

    In those cases where information is received which raises a 
question concerning the continued eligibility of an individual for an 
access authorization and/or an employment clearance, the Director, 
Division of Facilities and Security, through the Director, Office of 
Administration, shall forward to the Deputy Executive Director for 
Management Services or other Deputy Executive Director, his or her 
recommendation as to whether the individual's access authorization and/
or employment clearance should be suspended pending the final 
determination resulting from the operation of the procedures provided 
in this part. In making this recommendation the Director, Division of 
Facilities and Security, shall consider factors such as the seriousness 
of the derogatory information developed, the degree of access of the 
individual to classified information, and the individual's opportunity 
by reason of his or her position to commit acts adversely affecting the 
national security. An individual's access authorization and/or 
employment clearance may not be suspended except by the direction of 
the Executive Director for Operations, Deputy Executive Director for 
Management Services or other Deputy Executive Director.
    11. Section 10.22 is revised to read as follows:


Sec. 10.22  Notice to individual.

    A notification letter, prepared by the Division of Facilities and 
Security, approved by the Office of the General Counsel, and signed by 
the Director, Office of Administration, must be presented to each 
individual whose eligibility for an access authorization and/or an 
employment clearance is in question. Where practicable, the letter will 
be presented to the individual in person. The letter will be 
accompanied by a copy of this part and must state:
    (a) That reliable information in the possession of the NRC has 
created a substantial doubt concerning the individual's eligibility for 
an access authorization and/or an employment clearance;
    (b) The information that creates a substantial doubt regarding the 
individual's eligibility for an access authorization and/or an 
employment clearance, that must be as comprehensive and detailed as the 
national security interests and other applicable law permit;
    (c) That the individual has the right to be represented by counsel 
or other representative at their own expense;
    (d) That the individual may request within 20 days of the date of 
the notification letter, any documents, records and reports which form 
the basis for the question of their eligibility for an access 
authorization and/or an employment clearance. The individual will be 
provided within 30 days all such documents, records and reports to the 
extent they are unclassified and do not reveal a confidential source. 
The individual may also request the entire investigative file, which 
will be promptly provided, as permitted by the national security 
interests and other applicable law;
    (e) That unless the individual files with the Director, Office of 
Administration, a written request for a hearing within 20 days of the 
individual's receipt of the notification letter or 20 days after 
receipt of the information provided in response to a request made under 
paragraph (d) of this section, whichever is later, the Director, 
Division of Facilities and Security, through the Director, Office of 
Administration, will submit a recommendation as to the final action to 
the Deputy Executive Director for Management Services on the basis of 
the information in the possession of the NRC;
    (f) That if the individual files a written request for a hearing 
with the Director, Office of Administration, the individual shall file 
with that request a written answer under oath or affirmation that 
admits or denies specifically each allegation and each supporting fact 
contained in the notification letter. A general denial is not 
sufficient to controvert a specific allegation. If the individual is 
without knowledge, he or she shall so state and that statement will 
operate as a denial. The answer must also state any additional facts 
and information that the individual desires to have considered in 
explanation or mitigation of allegations in the notification letter. 
Failure to specifically deny or explain or deny knowledge of any 
allegation or supporting fact will be deemed an admission that the 
allegation or fact is true.
    (g) That if the individual does not want to exercise his or her 
right to a hearing, but does want to submit an answer to the 
allegations in the notification letter, the individual may do so by 
filing with the Director, Office of Administration, within 20 days of 
receipt of the notification letter or 20 days after receipt of the 
information provided in response to a request made under paragraph (d) 
of this section, whichever is later, a written answer in accordance 
with the requirements of paragraph (f) of this section;
    (h) That the procedures in Sec. 10.24 et seq. will apply to any 
hearing and review.
    12. In Sec. 10.23, paragraph (a) is revised to read as follows:


Sec. 10.23  Failure of individual to request a hearing.

    (a) In the event the individual fails to file a timely written 
request for a hearing pursuant to Sec. 10.22, a recommendation as to 
the final action to be taken will be made by the Director,

[[Page 15643]]

Division of Facilities and Security, through the Director, Office of 
Administration, to the Deputy Executive Director for Management 
Services on the basis of the information in the possession of the NRC, 
including any answer filed by the individual.
* * * * *
    13. In Sec. 10.25, paragraphs (a) and (c) are revised to read as 
follows:


Sec. 10.25  NRC Hearing Counsel.

    (a) Hearing Counsel assigned pursuant to Sec. 10.24 will, before 
the scheduling of the hearing, review the information in the case and 
will request the presence of witnesses and the production of documents 
and other physical evidence relied upon by the Director, Division of 
Facilities and Security, in making a finding that a question exists 
regarding the eligibility of the individual for an NRC access 
authorization and/or an employment clearance in accordance with the 
provisions of this part. When the presence of a witness and the 
production of documents and other physical evidence is deemed by the 
Hearing Counsel to be necessary or desirable for a determination of the 
issues, the Director, Division of Facilities and Security, will make 
arrangements for the production of evidence and for witnesses to appear 
at the hearing by subpoena or otherwise.
* * * * *
    (c) The individual is responsible for producing witnesses in his or 
her own behalf and/or presenting other evidence before the Hearing 
Examiner to support the individual's answer and defense to the 
allegations contained in the notification letter. When requested by the 
individual, however, the Hearing Counsel may assist the individual to 
the extent practicable and necessary. The Hearing Counsel may at his or 
her discretion request the Director, Division of Facilities and 
Security, to arrange for the issuance of subpoenas for witnesses to 
attend the hearing in the individual's behalf, or for the production of 
specific documents or other physical evidence, provided a showing of 
the necessity for assistance has been made.
    14. In Sec. 10.27 paragraph (c) is revised to read as follows:


Sec. 10.27  Prehearing proceedings.

* * * * *
    (c) The parties will be notified by the Hearing Examiner at least 
ten days in advance of the hearing of the time and place of the 
hearing. For good cause shown, the Hearing Examiner may order 
postponements or continuances from time to time. If, after due notice, 
the individual fails to appear at the hearing, or appears but is not 
prepared to proceed, the Hearing Examiner shall, unless good cause is 
shown, return the case to the Director, Division of Facilities and 
Security, who shall make a recommendation on final action to be taken, 
through the Director, Office of Administration, to the Deputy Executive 
Director for Management Services on the basis of the information in the 
possession of the NRC.
    15. In Sec. 10.28, paragraph (n) is revised to read as follows:


Sec. 10.28  Conduct of hearing.

* * * * *
    (n) A written transcript of the entire proceeding must be made by a 
person possessing appropriate NRC access authorization and/or 
employment clearance and, except for portions containing Restricted 
Data or National Security Information, or other lawfully withholdable 
information, a copy of the transcript will be furnished the individual 
without cost. The transcript or recording will be made part of the 
applicant's or employee's personnel security file.
    16. Section 10.31 is revised to read as follows:


Sec. 10.31  Actions on the recommendations.

    (a) Upon receipt of the findings and recommendation from the 
Hearing Examiner, and the record, the Director, Office of 
Administration, shall forthwith transmit it to the Deputy Executive 
Director for Management Services who has the discretion to return the 
record to the Director, Office of Administration, for further 
proceedings by the Hearing Examiner with respect to specific matters 
designated by the Deputy Executive Director for Management Services.
    (b)(1) In the event of a recommendation by the Hearing Examiner 
that an individual's access authorization and/or employment clearance 
be denied or revoked, the Deputy Executive Director for Management 
Services shall immediately notify the individual in writing of the 
Hearing Examiner's findings with respect to each allegation contained 
in the notification letter, and that the individual has a right to 
request a review of his or her case by the NRC Personnel Security 
Review Panel and of the right to submit a brief in support of his or 
her contentions. The request for a review must be submitted to the 
Deputy Executive Director for Management Services within five days 
after the receipt of the notice. The brief will be forwarded to the 
Deputy Executive Director for Management Services, for transmission to 
the NRC Personnel Security Review Panel not later than 10 days after 
receipt of the notice.
    (2) In the event the individual fails to request a review by the 
NRC Personnel Security Review Panel of an adverse recommendation within 
the prescribed time, the Deputy Executive Director for Management 
Services may at his or her discretion request a review of the record of 
the case by the NRC Personnel Security Review Panel. The request will 
set forth those matters at issue in the hearing on which the Deputy 
Executive Director for Management Services desires a review by the NRC 
Personnel Security Review Panel.
    (c) Where the Hearing Examiner has made a recommendation favorable 
to the individual, the Deputy Executive Director for Management 
Services may at his or her discretion request a review of the record of 
the case by the NRC Personnel Security Review Panel. If this request is 
made, the Deputy Executive Director for Management Services shall 
immediately cause the individual to be notified of that fact and of 
those matters at issue in the hearing on which the Deputy Executive 
Director for Management Services desires a review by the NRC Personnel 
Security Review Panel. The Deputy Executive Director for Management 
Services will further inform the individual that within 10 days of 
receipt of this notice, the individual may submit a brief concerning 
those matters at issue for the consideration of the NRC Personnel 
Security Review Panel. The brief must be forwarded to the Deputy 
Executive Director for Management Services for transmission to the NRC 
Personnel Security Review Panel.
    (d) In the event of a request for a review pursuant to paragraphs 
(b) and (c) of this section, the Hearing Counsel may file a brief 
within 10 days of being notified by the Deputy Executive Director for 
Management Services that a review has been requested. The brief will be 
forwarded to the Deputy Executive Director for Management Services for 
transmission to the NRC Personnel Security Review Panel.
    (e) The Hearing Counsel may also request a review of the case by 
the NRC Personnel Security Review Panel. The request for review, which 
will set forth those matters at issue in the hearing on which the 
Hearing Counsel desires a review, will be submitted to the Deputy 
Director Executive for Management Services within five days after 
receipt of the Hearing Examiner's findings and recommendation. Within 
10 days of the request for review, the Hearing Counsel may file a brief 
which will be forwarded to the Deputy Executive Director for Management 
Services for transmission

[[Page 15644]]

to the NRC Personnel Security Review Panel. A copy of the request for 
review, and a copy of any brief filed, will be immediately sent to the 
individual. If the Hearing Counsel's request is for a review of a 
recommendation favorable to the individual, the individual may, within 
10 days of receipt of a copy of the request for review, submit a brief 
concerning those matters at issue for consideration of the NRC 
Personnel Security Review Panel. The brief will be forwarded to the 
Deputy Executive Director for Management Services for transmission to 
the NRC Personnel Security Review Panel and Hearing Counsel. A copy of 
the brief will be made a part of the applicant's personnel security 
file.
    (f) The time limits imposed by this section for requesting reviews 
and the filing of briefs may be extended by the Deputy Executive 
Director for Management Services for good cause shown.
    (g) In the event a request is made for a review of the record by 
the NRC Personnel Security Review Panel, the Deputy Executive Director 
for Management Services shall send the record, with all findings and 
recommendations and any briefs filed by the individual and the Hearing 
Counsel, to the NRC Personnel Security Review Panel. If neither the 
individual, the Deputy Executive Director for Management Services, nor 
the Hearing Counsel requests a review, the final determination will be 
made by the Deputy Executive Director for Management Services on the 
basis of the record with all findings and recommendations.
    17. Section 10.32 is revised to read as follows:


Sec. 10.32  Recommendation of the NRC Personnel Security Review Panel.

    (a) The Deputy Executive Director for Management Services shall 
designate an NRC Personnel Security Review Panel to conduct a review of 
the record of the case. The NRC Personnel Security Review Panel shall 
be comprised of three members, two of whom shall be selected from 
outside the security field. To qualify as an NRC Personnel Security 
Review Panel member, the person designated shall have an NRC ``Q'' 
access authorization and may be an employee of the NRC, its 
contractors, agents, or licensees. However, no employee or consultant 
of the NRC shall serve as an NRC Personnel Security Review Panel member 
reviewing the case of an employee (including a consultant) or applicant 
for employment with the NRC; nor shall any employee or consultant of an 
NRC contractor, agent or licensee serve as an NRC Personnel Security 
Review Panel member reviewing the case of an employee (including a 
consultant) or an applicant for employment of that contractor, agent, 
or licensee. No NRC Personnel Security Review Panel member shall be 
selected who has knowledge of the case or of any information relevant 
to the disposition of it, or who for any reason would be unable to 
issue a fair and unbiased recommendation.
    (b) The NRC Personnel Security Review Panel shall consider the 
matter under review based upon the record supplemented by any brief 
submitted by the individual or the Hearing Counsel. The NRC Personnel 
Security Review Panel may request additional briefs as the Panel deems 
appropriate. When the NRC Personnel Security Review Panel determines 
that additional evidence or further proceedings are necessary, the 
record may be returned to the Deputy Executive Director for Management 
Services with a recommendation that the case be returned to the 
Director, Office of Administration, for appropriate action, which may 
include returning the case to the Hearing Examiner and reconvening the 
hearing to obtain additional testimony. When additional testimony is 
taken by the Hearing Examiner, a written transcript of the testimony 
will be made a part of the record and will be taken by a person 
possessing an appropriate NRC access authorization and/or employment 
clearance and, except for portions containing Restricted Data or 
National Security Information, or other lawfully withholdable 
information, a copy of the transcript will be furnished the individual 
without cost.
    (c) In conducting the review, the NRC Personnel Security Review 
Panel shall make its findings and recommendations as to the eligibility 
or continued eligibility of an individual for an access authorization 
and/or an employment clearance on the record supplemented by additional 
testimony or briefs, as has been previously determined by the NRC 
Personnel Security Review Panel as appropriate.
    (d) The NRC Personnel Security Review Panel shall not consider the 
possible impact of the loss of the individual's services upon the NRC 
program.
    (e) If, after considering all the factors in light of the criteria 
set forth in this part, the NRC Personnel Security Review Panel is of 
the opinion that granting or continuing an access authorization and/or 
an employment clearance to the individual will not endanger the common 
defense and security and will be clearly consistent with the national 
interest, the NRC Personnel Security Review Panel shall make a 
favorable recommendation; otherwise, the NRC Personnel Security Review 
Panel shall make an adverse recommendation. The NRC Personnel Security 
Review Panel shall prepare a report of its findings and recommendations 
and submit the report in writing to the Deputy Executive Director for 
Management Services, who shall furnish a copy to the individual. The 
findings and recommendations must be fully supported by stated reasons.
    18. Section 10.33 is revised to read as follows:


Sec. 10.33  Action by the Deputy Executive Director for Management 
Services.

    (a) The Deputy Executive Director for Management Services, on the 
basis of the record accompanied by all findings and recommendations, 
shall make a final determination whether access authorization and/or 
employment clearance shall be granted, denied, or revoked, except when 
the provisions of Sec. 10.28 (i), (j), or (l) have been used and the 
Deputy Executive Director for Management Services determination is 
adverse, the Commission shall make the final agency determination.
    (b) In making the determination as to whether an access 
authorization and/or an employment clearance shall be granted, denied, 
or revoked, the Deputy Executive Director for Management Services or 
the Commission shall give due recognition to the favorable as well as 
the unfavorable information concerning the individual and shall take 
into account the value of the individual's services to the NRC's 
program and the consequences of denying or revoking access 
authorization and/or employment clearance.
    (c) In the event of an adverse determination, the Deputy Executive 
Director for Management Services shall promptly notify the individual 
through the Director, Office of Administration, of his or her decision 
that an access authorization and/or an employment clearance is being 
denied or revoked and of his or her findings with respect to each 
allegation contained in the notification letter for transmittal to the 
individual.
    (d) In the event of a favorable determination, the Deputy Executive 
Director for Management Services shall promptly notify the individual 
through the Director, Office of Administration.
    19. In Sec. 10.34, paragraph (a) is revised to read as follows:

[[Page 15645]]

Sec. 10.34  Action by the Commission.

    (a) Whenever, under the provisions of Sec. 10.28(i), (j), or (l) an 
individual has not been afforded an opportunity to confront and cross-
examine witnesses who have furnished information adverse to the 
individual and an adverse recommendation has been made by the Deputy 
Executive Director for Management Services, the Commission shall review 
the record and determine whether an access authorization and/or an 
employment clearance should be granted, denied, or revoked, based upon 
the record.
* * * * *
    20. Section 10.35 is revised to read as follows:


Sec. 10.35  Reconsideration of cases.

    (a) Where, pursuant to the procedures set forth in Secs. 10.20 
through 10.34, the Deputy Executive Director for Management Services or 
the Commission has made a determination granting an access 
authorization and/or an employment clearance to an individual, the 
individual's eligibility for an access authorization and/or an 
employment clearance will be reconsidered only when subsequent to the 
time of that determination, new derogatory information has been 
received or the scope or sensitivity of the Restricted Data or National 
Security Information to which the individual has or will have access 
has significantly increased. All new derogatory information, whether 
resulting from the NRC's reinvestigation program or other sources, will 
be evaluated relative to an individual's continued eligibility in 
accordance with the procedures of this part.
    (b) Where, pursuant to these procedures, the Commission or Deputy 
Executive Director for Management Services has made a determination 
denying or revoking an access authorization and/or an employment 
clearance to an individual, the individual's eligibility for an access 
authorization and/or an employment clearance may be reconsidered when 
there is a bona fide offer of employment and/or a bona fide need for 
access to Restricted Data or National Security Information and either 
material and relevant new evidence is presented, which the individual 
and his or her representatives are without fault in failing to present 
before, or there is convincing evidence of reformation or 
rehabilitation. Requests for reconsideration must be submitted in 
writing to the Deputy Executive Director for Management Services 
through the Director, Office of Administration. Requests must be 
accompanied by an affidavit setting forth in detail the information 
referred to above. The Deputy Executive Director for Management 
Services shall cause the individual to be notified as to whether his or 
her eligibility for an access authorization and/or an employment 
clearance will be reconsidered and if so, the method by which a 
reconsideration will be accomplished.
    (c) Where an access authorization and/or an employment clearance 
has been granted to an individual by the Director, Division of 
Facilities and Security, without recourse to the procedures set forth 
in Secs. 10.20 through 10.34, the individual's eligibility for an 
access authorization and/or an employment clearance will be 
reconsidered only in a case where, subsequent to the granting of the 
access authorization and/or employment clearance, new derogatory 
information has been received or the scope or sensitivity of the 
Restricted Data or National Security Information to which the 
individual has or will have access has significantly increased. All new 
derogatory information, whether resulting from the NRC's 
reinvestigation program or other sources, will be evaluated relative to 
an individual's continued eligibility in accordance with the procedures 
of this part.

PART 11--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR 
ACCESS TO OR CONTROL OVER SPECIAL NUCLEAR MATERIAL

    21. The authority citation for part 11 continues to read as 
follows:

    Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201); 
sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841).
    Section 11.15(e) also issued under sec. 501, 85 Stat. 290 (31 
U.S.C. 483a).

    22. Section 11.3(a) is revised to read as follows:


Sec. 11.3  Scope.

    (a) The requirements, criteria, and procedures of this part apply 
to the establishment of and eligibility for special nuclear material 
access authorization for employees, contractors, consultants of, and 
applicants for employment with licensees or contractors of the Nuclear 
Regulatory Commission. This employment, contract, service, or 
consultation may involve any duties or assignments within the criteria 
of Sec. 11.11 or Sec. 11.13 requiring access to, or control over, 
formula quantities of special nuclear material (as defined in part 73 
of this chapter).
* * * * *
    23. In Sec. 11.7 the paragraph designations are removed, the 
definitions are rearranged in alphabetical order, and the definitions 
of NRC-``U'' special nuclear material access authorization and NRC-
``R'' special nuclear material access authorization are revised to read 
as follows:


Sec. 11.7  Definitions.

* * * * *
    NRC-``U'' special nuclear material access authorization means an 
administrative determination based upon a single scope background 
investigation, normally conducted by the Office of Personnel 
Management, that an individual in the course of employment is eligible 
to work at a job falling within the criterion of 11.11(a)(1) or 11.13.
    NRC-``R'' special nuclear material access authorization means an 
administrative determination based upon a national agency check with 
law and credit investigation that an individual in the course of 
employment is eligible to work at a job falling within the criterion of 
Sec. 11.11(a)(2).
* * * * *
    24. Section 11.15 is revised to read as follows:


Sec. 11.15  Application for special nuclear material access 
authorization.

    (a)(1) Application for special nuclear material access 
authorization, renewal, or change in level must be filed by the 
licensee on behalf of the applicant with the Director, Division of 
Facilities and Security, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555. Applications for affected individuals employed on 
October 28, 1985, shall be submitted within 60 days of notification of 
Commission approval of the amended security plan.
    (2) Licensees who wish to secure NRC-U or NRC-R special nuclear 
material access authorizations for individuals in possession of an 
active NRC Q or L access authorization or other security clearance 
granted by another Federal agency based on an equivalent investigation 
shall submit a ``Security Acknowledgment'' (NRC Form 176) and a 
``Request for Access Authorization'' (NRC Form 237). NRC will process 
these requests by verifying the data on an NRC-cleared individual, or 
by contacting the Federal agency that granted the clearance, requesting 
certification of the security clearance, and determining the 
investigative basis and level of the clearance. Licensees may directly 
request the Federal agency that administered the security clearance, if 
other than NRC, to certify to the NRC

[[Page 15646]]

that it has on file an active security clearance for an individual and 
to specify the investigative basis and level of the clearance.
    (b) Applications for special nuclear material access authorization 
for individuals, other than those qualifying under the provisions of 
Sec. 11.15(a)(2), must be made on forms supplied by the Commission, 
including:
    (1) Questionnaire for National Security Positions (SF-86, Parts 1 
and 2);
    (2) Two completed standard fingerprint cards (FD-258);
    (3) Security Acknowledgment (NRC Form 176);
    (4) Other related forms where specified in accompanying instruction 
(NRC-254); and
    (5) A statement by the employer, prospective employer, or 
contractor identifying the job to be assigned to or assumed by the 
individual and the level of authorization needed, justified by 
appropriate reference to the licensee's security plan.
    (c)(1) Except as provided in paragraph (c)(2) of this section, NRC-
U special nuclear material access authorizations must be renewed every 
five years from the date of issuance. Except as provided in paragraph 
(c)(3) of this section, NRC-R special nuclear material access 
authorizations must be renewed every ten years from the date of 
issuance. An application for renewal must be submitted at least 120 
days before the expiration of the five-year period for NRC-U and ten-
year period for NRC-R, respectively, and must include:
    (i) A statement by the licensee that at the time of application for 
renewal the individual's assigned or assumed job requires an NRC-U or 
an NRC-R special nuclear material access authorization, justified by 
appropriate reference to the licensee's security plan;
    (ii) The Questionnaire for National Security Positions (SF-86, 
Parts 1 and 2);
    (iii) Two completed standard fingerprint cards (FD-258); and
    (iv) Other related forms specified in accompanying NRC instructions 
(NRC Form 254).
    (2) An exception to the time for submission of NRC-U special 
nuclear material access authorization renewal applications and the 
paperwork required is provided for individuals who have a current and 
active DOE-Q access authorization and are subject to DOE 
Reinvestigation Program requirements. For these individuals, the 
submission to DOE of the SF-86 pursuant to DOE Reinvestigation Program 
requirements (generally every five years) will satisfy the NRC renewal 
submission and paperwork requirements even if less than five years has 
passed since the date of issuance or renewal of the NRC-U access 
authorization. Any NRC-U special nuclear material access authorization 
renewed in response to provisions of this paragraph will not be due for 
renewal until the date set by DOE for the next reinvestigation of the 
individual pursuant to DOE's Reinvestigation Program.
    (3) An exception to the time for submission of NRC-R special 
nuclear material access authorization renewal applications and the 
paperwork required is provided for individuals who have a current and 
active DOE-L or DOE-Q access authorization and are subject to DOE 
Reinvestigation Program requirements. For these individuals, the 
submission to DOE of the SF-86 pursuant to DOE Reinvestigation Program 
requirements will satisfy the NRC renewal submission and paperwork 
requirements even if less than ten years have passed since the date of 
issuance or renewal of the NRC-R access authorization. Any NRC-R 
special nuclear material access authorization renewed pursuant to this 
paragraph will not be due for renewal until the date set by DOE for the 
next reinvestigation of the individual pursuant to DOE's 
Reinvestigation Program.
    (4) Notwithstanding the provisions of paragraph (c)(2) of this 
section, the period of time for the initial and each subsequent NRC-U 
renewal application to NRC may not exceed seven years.
    (5) Notwithstanding the provisions of paragraph (c)(3) of this 
section, the period of time for the initial and each subsequent NRC-R 
renewal application to NRC may not exceed twelve years. Any individual 
who is subject to the DOE Reinvestigation Program requirements but, for 
administrative or other reasons, does not submit reinvestigation forms 
to DOE within seven years of the previous submission, for a NRC-U 
renewal or twelve years of the previous submission for a NRC-R renewal, 
shall submit a renewal application to NRC using the forms prescribed in 
paragraph (c)(1) of this section before the expiration of the seven 
year period for NRC-U or twelve year period for NRC-R renewal.
    (d) If at any time, due to new assignment or assumption of duties, 
a change in a special nuclear material access authorization level from 
NRC ``R'' to ``U'' is required, the individual shall apply for a change 
of level of special nuclear material access authorization. The 
application must include a description of the new duties to be assigned 
or assumed, justified by appropriate reference to the licensee's 
security plan.
    (e)(1) Each application for a special nuclear material access 
authorization, renewal, or change in level must be accompanied by the 
licensee's remittance, payable to the U.S. Nuclear Regulatory 
Commission, according to the following schedule:


i. NRC-R................................................           1$130
ii. NRC-R (expedited processing)........................            1203
iii. NRC-R based on certification of comparable                       20
 investigation..........................................
iv. NRC-R renewal.......................................            1130
v. NRC-U requiring single scope investigation...........            2856
vi. NRC-U requiring single scope investigation                      3295
 (expedited processing).................................
vii. NRC-U based on certification of comparable                       20
 investigation..........................................
viii. NRC-U renewal.....................................          21705
 
\1\ If the NRC determines, based on its review of available data, that a
  National Agency Check with law and credit investigation is necessary,
  a fee of $130 will be assessed prior to the conduct of the
  investigation; however, if a single scope investigation is deemed
  necessary by the NRC, based on its review of available data, a fee of
  $2,856 will be assessed prior to the conduct of the investigation.
\2\ If the NRC determines, based on its review of available data, that a
  single scope investigation is necessary, a fee of $2,856 will be
  assessed prior to the conduct of the investigation.

    (2) Material access authorization fees will be published each time 
the Office of Personnel Management notifies NRC of a change in the 
background investigation rate it charges NRC for conducting the 
investigation. Any changed access authorization fees will be applicable 
to each access authorization request received upon or after the date of 
publication. Applications from individuals having current Federal 
access authorizations

[[Page 15647]]

may be processed expeditiously at no cost because the Commission may 
accept the certification of access authorizations and investigative 
data from other Federal government agencies that grant personnel access 
authorizations.
    (f)(1) Any Federal employee, employee of a contractor of a Federal 
agency, licensee, or other person visiting an affected facility for the 
purpose of conducting official business, who possesses an active NRC or 
DOE-Q access authorization or an equivalent Federal security clearance 
granted by another Federal agency (``Top Secret'') based on a 
comparable single scope background investigation may be permitted, in 
accordance with Sec. 11.11, the same level of unescorted access that an 
NRC-U special nuclear material access authorization would afford.
    (2) Any Federal employee, employee of a contractor of a Federal 
agency, licensee, or other person visiting an affected facility for the 
purpose of conducting official business, who possesses an active NRC or 
DOE-L access authorization or an equivalent security clearance granted 
by another Federal agency (``Secret'') based on a comparable or greater 
background investigation consisting of a national agency check with law 
and credit may be permitted, in accordance with Sec. 11.11, the same 
level of unescorted access that an NRC-R special nuclear material 
access authorization would afford. An NRC or DOE-L access authorization 
or an equivalent security clearance (``Secret''), based on a background 
investigation or national agency check with credit granted or being 
processed by another Federal agency before January 1, 1998, is 
acceptable to meet this requirement.
    25. Section 11.16 is revised to read as follows:


Sec. 11.16  Cancellation of request for special nuclear material access 
authorization.

    When a request for an individual's access authorization is 
withdrawn or canceled, the licensee shall notify the Chief, Personnel 
Security Branch, NRC Division of Facilities and Security immediately, 
by telephone, so that the investigation may be discontinued. The caller 
shall provide the full name and date of birth of the individual, the 
date of request, and the type of access authorization originally 
requested (``U'' or ``R''). The licensee shall promptly submit written 
confirmation of the telephone notification to the Personnel Security 
Branch, NRC Division of Facilities and Security. A portion of the fee 
for the ``U'' special nuclear material access authorization may be 
refunded depending upon the status of the single scope investigation at 
the time of withdrawal or cancellation.
    26. In Sec. 11.21, paragraphs (c) and (d) are revised to read as 
follows:


Sec. 11.21  Application of the criteria.

* * * * *
    (c) When the reports of an investigation of an individual contain 
information reasonably falling within one or more of the classes of 
derogatory information listed in Sec. 10.11, it creates a question as 
to the individual's eligibility for special nuclear material access 
authorization. In these cases, the application of the criteria must be 
made in light of and with specific regard to whether the existence of 
the information supports a reasonable belief that the granting of a 
special nuclear material access authorization would be inimical to the 
common defense and security. The Director, Division of Facilities and 
Security, may authorize the granting of a special nuclear material 
access authorization on the basis of the information in the case or may 
authorize the conduct of an interview with the individual and, on the 
basis of the interview and other investigation as the Director deems 
appropriate, may authorize the granting of a special nuclear material 
access authorization. Otherwise, a question concerning the eligibility 
of an individual for a special nuclear material access authorization 
must be resolved in accordance with the procedures set forth in 
Secs. 10.20 through 10.38 of this chapter.
    (d) In resolving a question concerning the eligibility or continued 
eligibility of an individual for a special nuclear material access 
authorization by action of the Hearing Examiner or a Personnel Security 
Review Panel, 3 the following principle shall be applied by 
the Examiner and the Personnel Security Review Panel: Where there are 
sufficient grounds to establish a reasonable belief as to the truth of 
the information regarded as substantially derogatory and when the 
existence of this information supports a reasonable belief that 
granting access would be inimical to the common defense and security, 
this will be the basis for a recommendation for denying or revoking 
special nuclear material access authorization if not satisfactorily 
rebutted by the individual or shown to be mitigated by circumstance.
---------------------------------------------------------------------------

    \3\ The functions of the Hearing Examiner and the Personnel 
Security Review Panel are described in part 10 of this chapter.
---------------------------------------------------------------------------

PART 25--ACCESS AUTHORIZATION FOR LICENSEE PERSONNEL

    27. The authority citation for Part 25 continues to read as 
follows:

    Authority: Secs. 145, 161, 68 Stat. 942, 948, as amended (42 
U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 
5841); E.O. 10865, as amended, 3 CFR 1959-1963 Comp., p. 398 (50 
U.S.C. 401, note); E.O. 12829, 3 CFR, 1993 Comp. p. 570; E.O. 12958, 
3 CFR, 1995 Comp., p .333; E.O. 12968, 3 CFR, 1995 Comp., p .396. 
Appendix A also issued under 96 Stat. 1051 (31 U.S.C. 9701).

    28. In Sec. 25.5 the definitions of ``L'' access authorization, 
National Security Information, and ``Q'' access authorization are 
revised to read as follows:


Sec. 25.5  Definitions.

* * * * *
    ``L'' access authorization means an access authorization granted by 
the Commission that is normally based on a national agency check with a 
law and credit investigation (NACLC) or an access national agency check 
and inquiries investigation (ANACI) conducted by the Office of 
Personnel Management.
* * * * *
    National Security Information means information that has been 
determined pursuant to Executive Order 12958 or any predecessor order 
to require protection against unauthorized disclosure and that is so 
designated.
* * * * *
    ``Q'' access authorization means an access authorization granted by 
the Commission normally based on a single scope background 
investigation conducted by the Office of Personnel Management, the 
Federal Bureau of Investigation, or other U.S. Government agency which 
conducts personnel security investigations.
* * * * *
    29. Section 25.9 is revised to read as follows:


Sec. 25.9  Communications.

    Except where otherwise specified, all communications and reports 
concerning the regulations in this part should be addressed to the 
Director, Division of Facilities and Security, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555.
    30. Section 25.11 is revised to read as follows:


Sec. 25.11  Specific exemptions.

    The NRC may, upon application by any interested person or upon its 
own initiative, grant exemptions from the requirements of the 
regulations of this part, that are--

[[Page 15648]]

    (a) Authorized by law, will not present an undue risk to the public 
health and safety, and are consistent with the common defense and 
security; or
    (b) Coincidental with one or more of the following:
    (1) An application of the regulation in the particular 
circumstances conflicts with other NRC rules or requirements;
    (2) An application of the regulation in the particular 
circumstances would not serve the underlying purpose of the rule or is 
not necessary to achieve the underlying purpose of the rule;
    (3) When compliance would result in undue hardship or other costs 
that significantly exceed those contemplated when the regulation was 
adopted, or that significantly exceed those incurred by others 
similarly situated;
    (4) When the exemption would result in benefit to the common 
defense and security that compensates for any decrease in the security 
that may result from the grant of the exemption;
    (5) When the exemption would provide only temporary relief from the 
applicable regulation and the licensee or applicant has made good faith 
efforts to comply with the regulation;
    (6) When there is any other material circumstance present that was 
not considered when the regulation was adopted that would be in the 
public interest to grant an exemption. If this condition is relied on 
exclusively for satisfying paragraph (b) of this section, the exemption 
may not be granted until the Executive Director for Operations has 
consulted with the Commission.
    31. Section 25.19 is revised to read as follows:


Sec. 25.19  Processing applications.

    Each application for an access authorization or access 
authorization renewal must be submitted to the CSA. If the NRC is the 
CSA, the application and its accompanying fee must be submitted to the 
NRC Division of Facilities and Security. If necessary, the NRC Division 
of Facilities and Security may obtain approval from the appropriate 
Commission office exercising licensing or regulatory authority before 
processing the access authorization or access authorization renewal 
request. If the applicant is disapproved for processing, the NRC 
Division of Facilities and Security shall notify the submitter in 
writing and return the original application (security packet) and its 
accompanying fee.
    32. In Sec. 25.21, paragraph (c) is revised to read as follows:


Sec. 25.21  Determination of initial and continued eligibility for 
access authorization.

* * * * *
    (c)(1) Except as provided in paragraph (c)(2) of this section, an 
NRC ``Q'' access authorization must be renewed every five years from 
the date of issuance. Except as provided in paragraph (c)(2) of this 
section, an NRC ``L'' access authorization must be renewed every ten 
years from the date of issuance. An application for renewal must be 
submitted at least 120 days before the expiration of the five-year 
period for a ``Q'' access authorization and the ten-year period for an 
``L'' access authorization, and must include:
    (i) A statement by the licensee or other person that the individual 
continues to require access to classified National Security Information 
or Restricted Data; and
    (ii) A personnel security packet as described in Sec. 25.17(d).
    (2) Renewal applications and the required paperwork are not 
required for individuals who have a current and active access 
authorization from another Federal agency and who are subject to a 
reinvestigation program by that agency that is determined by the NRC to 
meet the NRC's requirements. (The DOE Reinvestigation Program has been 
determined to meet the NRC's requirements.) For these individuals, the 
submission of the SF-86 by the licensee or other person to the other 
Government agency pursuant to their reinvestigation requirements will 
satisfy the NRC's renewal submission and paperwork requirements, even 
if less than five years have passed since the date of issuance or 
renewal of the NRC ``Q'' access authorization, or if less than 10 years 
have passed since the date of issuance or renewal of the NRC ``L'' 
access authorization. Any NRC access authorization continued in 
response to the provisions of this paragraph will, thereafter, not be 
due for renewal until the date set by the other Government agency for 
the next reinvestigation of the individual pursuant to the other 
agency's reinvestigation program. However, the period of time for the 
initial and each subsequent NRC ``Q'' renewal application to the NRC 
may not exceed seven years or, in the case of an NRC ``L'' renewal 
application, twelve years. Any individual who is subject to the 
reinvestigation program requirements of another Federal agency but, for 
administrative or other reasons, does not submit reinvestigation forms 
to that agency within seven years for a ``Q'' renewal or twelve years 
for an ``L'' renewal of the previous submission, shall submit a renewal 
application to the NRC using the forms prescribed in Sec. 25.17(d) 
before the expiration of the seven-year period for a ``Q'' renewal or 
twelve-year period for an ``L'' renewal.
    (3) If the NRC is not the CSA, reinvestigation program procedures 
and requirements will be set by the CSA.
    33. In Sec. 25.23, paragraph (a) is revised to read as follows:


Sec. 25.23  Notification of grant of access authorization.

* * * * *
    (a) In those cases when the determination was made as a result of a 
Personnel Security Hearing or by a Personnel Security Review Panel ; or
* * * * *
    34. Section 25.25 is revised to read as follows:


Sec. 25.25  Cancellation of requests for access authorization.

    When a request for an individual's access authorization or renewal 
of an access authorization is withdrawn or canceled, the requestor 
shall notify the CSA immediately by telephone so that the single scope 
background investigation, national agency check with law and credit 
investigation, or other personnel security action may be discontinued. 
The requestor shall identify the full name and date of birth of the 
individual, the date of request, and the type of access authorization 
or access authorization renewal requested. The requestor shall confirm 
each telephone notification promptly in writing.
    35. In Sec. 25.27, paragraph (b) is revised to read as follows:


Sec. 25.27  Reopening of cases in which requests for access 
authorizations are canceled.

* * * * *
    (b) Additionally, if 90 days or more have elapsed since the date of 
the last Questionnaire for National Security Positions (SF-86), or CSA 
equivalent, the individual must complete a personnel security packet 
(see Sec. 25.17(d)). The CSA, based on investigative or other needs, 
may require a complete personnel security packet in other cases as 
well. A fee, equal to the amount paid for an initial request, will be 
charged only if a new or updating investigation by the NRC is required.
    36. In Sec. 25.31, paragraphs (a), (b), and (c) are revised to read 
as follows:


Sec. 25.31  Extensions and transfers of access authorizations.

    (a) The NRC Division of Facilities and Security may, on request, 
extend the authorization of an individual who possesses an access 
authorization in

[[Page 15649]]

connection with a particular employer or activity to permit access to 
classified information in connection with an assignment with another 
employer or activity.
    (b) The NRC Division of Facilities and Security may, on request, 
transfer an access authorization when an individual's access 
authorization under one employer or activity is terminated, 
simultaneously with the individual being granted an access 
authorization for another employer or activity.
    (c) Requests for an extension or transfer of an access 
authorization must state the full name of the person, date of birth, 
and level of access authorization. The Director, Division of Facilities 
and Security, may require a new personnel security packet (see 
Sec. 25.17(c)) to be completed by the applicant. A fee, equal to the 
amount paid for an initial request, will be charged only if a new or 
updating investigation by the NRC is required.
* * * * *
    37. In Sec. 25.33, paragraphs (a) and (b) are revised to read as 
follows:


Sec. 25.33  Termination of access authorizations.

    (a) Access authorizations will be terminated when:
    (1) An access authorization is no longer required;
    (2) An individual is separated from the employment or the activity 
for which he or she obtained an access authorization for a period of 90 
days or more; or
    (3) An individual, pursuant to 10 CFR part 10 or other CSA-approved 
adjudicatory standards, is no longer eligible for an access 
authorization.
    (b) A representative of the licensee or other organization that 
employs the individual whose access authorization will be terminated 
shall immediately notify the CSA when the circumstances noted in 
paragraph (a)(1) or (a)(2) of this section exist; inform the individual 
that his or her access authorization is being terminated, and the 
reason; and that he or she will be considered for reinstatement of an 
access authorization if he or she resumes work requiring the 
authorization.
* * * * *
    38. In Sec. 25.35, paragraph (b) is revised to read as follows:


Sec. 25.35  Classified visits.

* * * * *
    (b) Representatives of the Federal Government, when acting in their 
official capacities as inspectors, investigators, or auditors, may 
visit a licensee, certificate holder, or other facility without 
furnishing advanced notification, provided these representatives 
present appropriate Government credentials upon arrival. Normally, 
however, Federal representatives will provide advance notification in 
the form of an NRC Form 277, ``Request for Visit or Access Approval,'' 
with the ``need-to-know'' certified by the appropriate NRC office 
exercising licensing or regulatory authority and verification of an NRC 
access authorization by the Division of Facilities and Security.
* * * * *
    39. In Sec. 25.37, paragraph (b) is revised to read as follows:


Sec. 25.37  Violations.

* * * * *
    (b) National Security Information is protected under the 
requirements and sanctions of Executive Order 12958.
    40. Appendix A to Part 25 is revised to read as follows:

        Appendix A to Part 25--Fees for NRC Access Authorization
------------------------------------------------------------------------
                        Category                                Fee
------------------------------------------------------------------------
Initial ``L'' access authorization......................          1 $130
Initial ``L'' access authorization (expedited                      1 203
 processing)............................................
Reinstatement of ``L'' access authorization.............           2 130
Extension or Transfer of ``L'' access authorization.....           2 130
Renewal of ``L'' access authorization...................           1 130
Initial ``Q'' access authorization......................            2856
Initial ``Q'' access authorization (expedited                       3295
 processing)............................................
Reinstatement of ``Q'' access authorization.............          2 2856
Reinstatement of ``Q'' access authorization (expedited            2 3295
 processing)............................................
Extension or Transfer of ``Q''..........................          2 2856
Extension or Transfer of ``Q'' (expedited processing)...          2 3295
Renewal of ``Q'' access authorization...................         2 1705
------------------------------------------------------------------------
1 If the NRC determines, based on its review of available data, that a
  single scope investigation is necessary, a fee of $2856 will be
  assessed before the conduct of the investigation.
2 Full fee will only be charged if an investigation is required.

    41. The heading of Part 95 is revised to read as follows:

PART 95--FACILITY SECURITY CLEARANCE AND SAFEGUARDING OF NATIONAL 
SECURITY INFORMATION AND RESTRICTED DATA

    42. The authority citation for part 95 continues to read as 
follows:

    Authority: Secs. 145, 161, 193, 68 Stat. 942, 948, as amended 
(42 U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42 
U.S.C. 5841); E.O. 10865, as amended, 3 CFR 1959-1963 Comp., p. 398 
(50 U.S.C. 401, note); E.O. 12829, 3 CFR 1993 Comp., p. 570; E.O. 
12958, as amended, 3 CFR 1995 Comp., p. 333; E.O. 12968, 3 CFR 1995 
Comp., p. 391.

    43. In Sec. 95.5 the definitions of NRC ``L'' access authorization, 
NRC ``Q'' access authorization, and Security container are revised to 
read as follows:


Sec. 95.5  Definitions.

* * * * *
    NRC ``L'' access authorization means an access authorization 
granted by the Commission normally based on a national agency check 
with law and credit investigation (NACLC) or an access national agency 
check and inquiries investigation (ANACI)) conducted by the Office of 
Personnel Management.
    NRC ``Q'' access authorization means an access authorization 
granted by the Commission normally based on a single scope background 
investigation conducted by the Office of Personnel Management, the 
Federal Bureau of Investigation, or other U.S. Government agency that 
conducts personnel security investigations.
* * * * *
    Security container includes any of the following repositories:
    (1) A security filing cabinet--one that bears a Test Certification 
Label on the side of the locking drawer, inside wall adjacent to the 
locking drawer, or interior door plate, or is marked,

[[Page 15650]]

``General Services Administration Approved Security Container'' on the 
exterior of the top drawer or door.
    (2) A safe--burglar-resistive cabinet or chest which bears a label 
of the Underwriters' Laboratories, Inc. certifying the unit to be a TL-
15, TL-30, or TRTL-30, and has a body fabricated of not less than 1 
inch of steel and a door fabricated of not less than 1\1/2\ inches of 
steel exclusive of the combination lock and bolt work; or bears a Test 
Certification Label on the inside of the door, or is marked ``General 
Services Administration Approved Security Container'' and has a body of 
steel at least \1/2\'' thick, and a combination locked steel door at 
least 1'' thick, exclusive of bolt work and locking devices; and an 
automatic unit locking mechanism.
    (3) A vault--a windowless enclosure constructed with walls, floor, 
roof, and door(s) that will delay penetration sufficient to enable the 
arrival of emergency response forces capable of preventing theft, 
diversion, damage, or compromise of classified information or matter, 
when delay time is assessed in conjunction with detection and 
communication subsystems of the physical protection system.
    (4) A vault-type room--a room that has a combination lock door and 
is protected by an intrusion alarm system that alarms upon the 
unauthorized penetration of a person anywhere into the room.
    (5) Other repositories that would provide comparable physical 
protection in the judgment of the Division of Facilities and Security.
* * * * *
    44. In Sec. 95.8, paragraph (b) is revised to read as follows:


Sec. 95.8  Information collection requirements: OMB approval.

* * * * *
    (b) The approved information collection requirements contained in 
this part appear in Secs. 95.11, 95.15, 95.17, 95.18, 95.21, 95.25, 
95.33, 95.34, 95.36, 95.37, 95.39, 95.41, 95.43, 95.45, 95.47, 95.53, 
and 95.57.
    45. Section 95.9 is revised to read as follows:


Sec. 95.9  Communications.

    Except where otherwise specified, all communications and reports 
concerning the regulations in this part should be addressed to the 
Director, Division of Facilities and Security, Nuclear Regulatory 
Commission, Washington, DC 20555.
    46. Section 95.11 is revised to read as follows:


Sec. 95.11  Specific exemptions.

    The NRC may, upon application by any interested person or upon its 
own initiative, grant exemptions from the requirements of the 
regulations of this part, that are--
    (a) Authorized by law, will not present an undue risk to the public 
health and safety, and are consistent with the common defense and 
security; or
    (b) Coincidental with one or more of the following:
    (1) An application of the regulation in the particular 
circumstances conflicts with other rules or requirements of the NRC;
    (2) An application of the regulation in the particular 
circumstances would not serve the underlying purpose of the rule or is 
not necessary to achieve the underlying purpose of the rule;
    (3) When compliance would result in undue hardship or other costs 
that are significantly in excess of those contemplated when the 
regulation was adopted, or that are significantly in excess of those 
incurred by others similarly situated;
    (4) When the exemption would result in benefit to the common 
defense and security that compensates for any decrease in security that 
may result from the grant of the exemption;
    (5) When the exemption would provide only temporary relief from the 
applicable regulation and the licensee or applicant has made good faith 
efforts to comply with the regulation;
    (6) When there is any other material circumstance not considered 
when the regulation was adopted for which it would be in the public 
interest to grant an exemption. If such a condition is relied on 
exclusively for satisfying paragraph (b) of this section, the exemption 
may not be granted until the Executive Director for Operations has 
consulted with the Commission.
    47. In Sec. 95.15, paragraph (a) is revised to read as follows:


Sec. 95.15  Approval for processing licensees and others for facility 
clearance.

    (a) A licensee, certificate holder, or other person who has a need 
to use, process, store, reproduce, transmit, transport, or handle NRC 
classified information at any location in connection with Commission-
related activities shall promptly request an NRC facility clearance. 
This specifically includes situations where a licensee, certificate 
holder, or other person needs a contractor or consultant to have access 
to NRC classified information. Also included are others who require 
access to classified information in connection with NRC regulated 
activities but do not require use, storage, or possession of classified 
information outside of NRC facilities. However, it is not necessary for 
a licensee, certificate holder, or other person to request an NRC 
facility clearance for access to another agency's classified 
information at that agency's facilities or to store that agency's 
classified information at their facility, provided no NRC classified 
information is involved and they meet the security requirements of the 
other agency. If NRC classified information is involved, the 
requirements of Sec. 95.17 apply.
* * * * *
    48. In Sec. 95.17, the introductory text of paragraph (a) and 
paragraph (a)(1) are revised to read as follows:


Sec. 95.17  Processing facility clearance.

    (a) Following the receipt of an acceptable request for facility 
clearance, the NRC will either accept an existing facility clearance 
granted by a current CSA and authorize possession of license or 
certificate related classified information, or process the facility for 
a facility clearance. Processing will include--
    (1) A determination based on review and approval of a Standard 
Practice Procedures Plan that granting of the Facility Clearance would 
not be inconsistent with the national interest, including a finding 
that the facility is not under foreign ownership, control, or influence 
to such a degree that a determination could not be made. An NRC finding 
of foreign ownership, control, or influence is based on factors 
concerning the foreign intelligence threat, risk of unauthorized 
technology transfer, type and sensitivity of the information that 
requires protection, the extent of foreign influence, record of 
compliance with pertinent laws, and the nature of international 
security and information exchange agreements. The licensee, certificate 
holder, or other person must advise the NRC within 30 days of any 
significant events or changes that may affect its status concerning 
foreign ownership, control, or influence (e.g., changes in ownership; 
changes that affect the company's answers to original FOCI questions; 
indebtedness; and changes in the required form that identifies owners, 
officers, directors, and executive personnel).
* * * * *
    49. Section 95.19 is revised to read as follows:


Sec. 95.19  Changes to security practices and procedures.

    (a) Except as specified in paragraph (b) of this section, each 
licensee, certificate holder, or other person shall

[[Page 15651]]

obtain prior CSA approval for any proposed change to the name, 
location, security procedures and controls, or floor plan of the 
approved facility. A written description of the proposed change must be 
furnished to the CSA with copies to the Director, Division of 
Facilities and Security, Office of Administration, NRC, Washington, DC 
20555-0001 (if NRC is not the CSA), and the NRC Regional Administrator 
of the cognizant Regional Office listed in appendix A of part 73 of 
this chapter. These substantive changes to the Standard Practice 
Procedures Plan that affect the security of the facility must be 
submitted to the NRC Division of Facilities and Security, or CSA, at 
least 30 days prior to the change so that they may be evaluated. The 
CSA shall promptly respond in writing to all such proposals. Some 
examples of substantive changes requiring prior CSA approval include--
    (1) A change in the approved facility's classified mail address; or
    (2) A temporary or permanent change in the location of the approved 
facility (e.g., moving or relocating NRC's classified interest from one 
room or building to another). Approved changes will be reflected in a 
revised Standard Practice Procedures Plan submission within 30 days of 
approval. Page changes rather than a complete rewrite of the plan may 
be submitted.
    (b) A licensee or other person may effect a minor, non-substantive 
change to an approved Standard Practice Procedures Plan for the 
safeguarding of classified information without receiving prior CSA 
approval. These minor changes that do not affect the security of the 
facility may be submitted to the addressees noted in paragraph (a) of 
this section within 30 days of the change. Page changes rather than a 
complete rewrite of the plan may be submitted. Some examples of minor, 
non-substantive changes to the Standard Practice Procedures Plan 
include--
    (1) The designation/appointment of a new facility security officer; 
or
    (2) A revision to a protective personnel patrol routine, provided 
the new routine continues to meet the minimum requirements of this 
part.
    (c) A licensee, certificate holder, or other person must update its 
NRC facility clearance every five years either by submitting a complete 
Standard Practice Procedures Plan or a certification that the existing 
plan is fully current to the Division of Facilities and Security.
    50. Section 95.20 is revised to read as follows:


Sec. 95.20  Grant, denial or termination of facility clearance.

    The Division of Facilities and Security shall provide notification 
in writing (or orally with written confirmation) to the licensee or 
other organization of the Commission's grant, acceptance of another 
agency's facility clearance, denial, or termination of facility 
clearance. This information must also be furnished to representatives 
of the NRC, NRC licensees, NRC certificate holders, NRC contractors, or 
other Federal agencies having a need to transmit classified information 
to the licensee or other person.
    51. Section 95.21 is revised to read as follows:


Sec. 95.21  Withdrawal of requests for facility security clearance.

    When a request for facility clearance is to be withdrawn or 
canceled, the requester shall notify the NRC Division of Facilities and 
Security in the most expeditious manner so that processing for this 
approval may be terminated. The notification must identify the full 
name of the individual requesting discontinuance, his or her position 
with the facility, and the full identification of the facility. The 
requestor shall confirm the telephone notification promptly in writing.
    52. In Sec. 95.25, the heading, the introductory text of paragraph 
(a), paragraphs (a)(2), (b), (c)(2), (f), (g), (h), (i), (j)(1), 
(j)(6), and (j)(7) are revised to read as follows:


Sec. 95.25  Protection of National Security Information and Restricted 
Data in storage.

    (a) Secret matter, while unattended or not in actual use, must be 
stored in--
* * * * *
    (2) Any steel file cabinet that has four sides and a top and bottom 
(all permanently attached by welding, rivets, or peened bolts so the 
contents cannot be removed without leaving visible evidence of entry) 
and is secured by a rigid metal lock bar and an approved key operated 
or combination padlock. The keepers of the rigid metal lock bar must be 
secured to the cabinet by welding, rivets, or bolts, so they cannot be 
removed and replaced without leaving evidence of the entry. The drawers 
of the container must be held securely so their contents cannot be 
removed without forcing open the drawer. This type of cabinet will be 
accorded supplemental protection during non-working hours.
    (b) Confidential matter while unattended or not in use must be 
stored in the same manner as SECRET matter except that no supplemental 
protection is required.
    (c) * * *
    (2) Combinations must be changed by a person authorized access to 
the contents of the container, by the Facility Security Officer, or his 
or her designee.
* * * * *
    (f) Combinations will be changed only by persons authorized access 
to Secret or Confidential National Security Information and/or 
Restricted Data depending upon the matter authorized to be stored in 
the security container.
    (g) Posted information. Containers may not bear external markings 
indicating the level of classified matter authorized for storage. A 
record of the names of persons having knowledge of the combination must 
be posted inside the container.
    (h) End of day security checks.
    (1) Facilities that store classified matter shall establish a 
system of security checks at the close of each working day to ensure 
that all classified matter and security repositories have been 
appropriately secured.
    (2) Facilities operating with multiple work shifts shall perform 
the security checks at the end of the last working shift in which 
classified matter had been removed from storage for use. The checks are 
not required during continuous 24-hour operations.
    (i) Unattended security container found opened. If an unattended 
security container housing classified matter is found unlocked, the 
custodian or an alternate must be notified immediately. Also, the 
container must be secured by protective personnel. An effort must be 
made to determine if the contents were compromised not later than the 
next day.
    (j) * * *
    (1) A key and lock custodian shall be appointed to ensure proper 
custody and handling of keys and locks used for protection of 
classified matter;
* * * * *
    (6) Keys and spare locks must be protected equivalent to the level 
of classified matter involved;
    (7) Locks must be changed or rotated at least every 12 months, and 
must be replaced after loss or compromise of their operable keys; and
* * * * *
    53. Section 95.27 is revised to read as follows:


Sec. 95.27  Protection while in use.

    While in use, classified matter must be under the direct control of 
an authorized individual to preclude physical, audio, and visual access 
by persons who do not have the prescribed

[[Page 15652]]

access authorization or other written CSA disclosure authorization (see 
Sec. 95.36 for additional information concerning disclosure 
authorizations).
    54. In Sec. 95.29, paragraphs (a), (c)(2), and (c)(4) are revised 
to read as follows:


Sec. 95.29  Establishment of restricted or closed areas.

    (a) If, because of its nature, sensitivity or importance, 
classified matter cannot otherwise be effectively controlled in 
accordance with the provisions of Secs. 95.25 and 95.27, a Restricted 
or Closed area must be established to protect this matter.
* * * * *
    (c) * * *
    (2) Access must be limited to authorized persons who have an 
appropriate security clearance and a need-to-know for the classified 
matter within the area. Persons without the appropriate level of 
clearance and/or need-to-know must be escorted at all times by an 
authorized person where inadvertent or unauthorized exposure to 
classified information cannot otherwise be effectively prevented.
* * * * *
    (4) Open shelf or bin storage of classified matter in Closed Areas 
requires CSA approval. Only areas protected by an approved intrusion 
detection system will qualify for approval.
    55. In Sec. 95.33, paragraph (f) is revised to read as follows:


Sec. 95.33  Security education.

* * * * *
    (f) Refresher Briefings. The licensee or other facility shall 
conduct refresher briefings for all cleared employees every 3 years. As 
a minimum, the refresher briefing must reinforce the information 
provided during the initial briefing and inform employees of 
appropriate changes in security regulations. This requirement may be 
satisfied by use of audio/video materials and/or by issuing written 
materials.
* * * * *
    56. A new Sec. 95.34 is added to read as follows:


Sec. 95.34  Control of visitors.

    (a) Uncleared visitors. Licensees, certificate holders, or others 
subject to this part shall take measures to preclude access to 
classified information by uncleared visitors.
    (b) Foreign visitors. Licensees, certificate holders, or others 
subject to this part shall take measures as may be necessary to 
preclude access to classified information by foreign visitors. The 
licensee, certificate holder, or others shall retain records of visits 
for 5 years beyond the date of the visit.
    57. In Sec. 95.36, paragraphs (a), (c), and (d) are revised to read 
as follows:


Sec. 95.36  Access by representatives of the International Atomic 
Energy Agency or by participants in other international agreements.

    (a) Based upon written disclosure authorization from the NRC 
Division of Facilities and Security that an individual is an authorized 
representative of the International Atomic Energy Agency (IAEA) or 
other international organization and that the individual is authorized 
to make visits or inspections in accordance with an established 
agreement with the United States Government, a licensee, certificate 
holder, or other person subject to this part shall permit the 
individual (upon presentation of the credentials specified in Sec. 75.7 
of this chapter and any other credentials identified in the disclosure 
authorization) to have access to matter classified as National Security 
Information that is relevant to the conduct of a visit or inspection. A 
disclosure authorization under this section does not authorize a 
licensee, certificate holder, or other person subject to this part to 
provide access to Restricted Data.
* * * * *
    (c) In accordance with the specific disclosure authorization 
provided by the Division of Facilities and Security, licensees or other 
persons subject to this part are authorized to release (i.e., transfer 
possession of) copies of documents that contain classified National 
Security Information directly to IAEA inspectors and other 
representatives officially designated to request and receive classified 
National Security Information documents. These documents must be marked 
specifically for release to IAEA or other international organizations 
in accordance with instructions contained in the NRC's disclosure 
authorization letter. Licensees and other persons subject to this part 
may also forward these documents through the NRC to the international 
organization's headquarters in accordance with the NRC disclosure 
authorization. Licensees and other persons may not reproduce documents 
containing classified National Security Information except as provided 
in Sec. 95.43.
    (d) Records regarding these visits and inspections must be 
maintained for 5 years beyond the date of the visit or inspection. 
These records must specifically identify each document released to an 
authorized representative and indicate the date of the release. These 
records must also identify (in such detail as the Division of 
Facilities and Security, by letter, may require) the categories of 
documents that the authorized representative has had access and the 
date of this access. A licensee or other person subject to this part 
shall also retain Division of Facilities and Security disclosure 
authorizations for 5 years beyond the date of any visit or inspection 
when access to classified information was permitted.
* * * * *
    58. In Sec. 95.37, paragraph (c)(1)(iv) is removed and paragraphs 
(c)(1)(i) and (h)(2) are revised to read as follows:


Sec. 95.37  Classification and preparation of documents.

* * * * *
    (c) * * *
    (1) * * *
    (i) Derivative classifications of classified National Security 
Information must contain the identity of the source document or the 
classification guide, including the agency and office of origin, on the 
``Derived From'' line and its classification date. If more than one 
source is cited, the ``Derived From'' line should indicate ``Multiple 
Sources.'' The derivative classifier shall maintain the identification 
of each source with the file or record copy of the derivatively 
classified document.
* * * * *
    (h) * * *
    (2) In the event of a question regarding classification review, the 
holder of the information or the authorized classifier shall consult 
the NRC Division of Facilities and Security, Information Security 
Branch, for assistance.
* * * * *
    59. In Sec. 95.39, paragraphs (b)(3) and (c)(2) are revised to read 
as follows:


Sec. 95.39  External transmission of classified matter.

* * * * *
    (b) * * *
    (3) The outer envelope or wrapper must contain the addressee's 
classified mailing address. The outer envelope or wrapper may not 
contain any classification, additional marking or other notation that 
indicate that the enclosed document contains classified information. 
The Classified Mailing Address shall be uniquely designated for the 
receipt of classified information. The classified shipping address for 
the receipt of material (e.g., equipment) should be different from the 
classified

[[Page 15653]]

mailing address for the receipt of classified documents.
* * * * *
    (c) * * *
    (2) Confidential matter may be transported by one of the methods 
set forth in paragraph (c)(1) of this section, by U.S. express or 
certified mail. Express or certified mail may be used in transmission 
of Confidential documents to Puerto Rico or any United States territory 
or possession.
* * * * *
    60. In Sec. 95.45, paragraph (a) is revised to read as follows:


Sec. 95.45  Changes in classification.

    (a) Documents containing classified National Security Information 
must be downgraded or declassified as authorized by the NRC 
classification guides or as determined by the NRC. Requests for 
downgrading or declassifying any NRC classified information should be 
forwarded to the NRC Division of Facilities and Security, Office of 
Administration, Washington, DC 20555-0001. Requests for downgrading or 
declassifying of Restricted Data will be forwarded to the NRC Division 
of Facilities and Security for coordination with the Department of 
Energy.
* * * * *
    61. Section 95.47 is revised to read as follows:


Sec. 95.47  Destruction of matter containing classified information.

    Documents containing classified information may be destroyed by 
burning, pulping, or another method that ensures complete destruction 
of the information that they contain. The method of destruction must 
preclude recognition or reconstruction of the classified information. 
Any doubts on methods should be referred to the CSA.
    62. Section 95.53 is revised to read as follows:


Sec. 95.53  Termination of facility clearance.

    (a) If the need to use, process, store, reproduce, transmit, 
transport, or handle classified matter no longer exists, the facility 
clearance will be terminated. The facility may deliver all documents 
and matter containing classified information to the Commission, or to a 
person authorized to receive them, or must destroy all classified 
documents and matter. In either case, the facility shall submit a 
certification of nonpossession of classified information to the NRC 
Division of Facilities and Security within 30 days of the termination 
of the facility clearance.
    (b) In any instance where a facility clearance has been terminated 
based on a determination of the CSA that further possession of 
classified matter by the facility would not be in the interest of the 
national security, the facility shall, upon notice from the CSA, 
dispose of classified documents in a manner specified by the CSA.
    63. Section 95.57 is revised to read as follows:


Sec. 95.57  Reports.

    Each licensee or other person having a facility clearance shall 
report to the CSA and the Regional Administrator of the appropriate NRC 
Regional Office listed in 10 CFR part 73, appendix A:
    (a) Any alleged or suspected violation of the Atomic Energy Act, 
Espionage Act, or other Federal statutes related to classified 
information (e.g., deliberate disclosure of classified information to 
persons not authorized to receive it, theft of classified information). 
Incidents such as this must be reported within 1 hour of the event 
followed by written confirmation within 30 days of the incident; and
    (b) Any infractions, losses, compromises, or possible compromise of 
classified information or classified documents not falling within 
paragraph (a) of this section. Incidents such as these must be entered 
into a written log. A copy of the log must be provided to the NRC on a 
monthly basis. Details of security infractions including corrective 
action taken must be available to the CSA upon request.
    (c) In addition, NRC requires records for all classification 
actions (documents classified, declassified, or downgraded) to be 
submitted to the NRC Division of Facilities and Security. These may be 
submitted either on an ``as completed'' basis or monthly. The 
information may be submitted either electronically by an on-line system 
(NRC prefers the use of a dial-in automated system connected to the 
Division of Facilities and Security) or by paper copy using NRC Form 
790.

    Dated at Rockville, MD, this 22nd day of March, 1999.

    For the Nuclear Regulatory Commission.
William D. Travers,
Executive Director for Operations.
[FR Doc. 99-7842 Filed 3-31-99; 8:45 am]
BILLING CODE 7590-01-P