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Department of Energy
Washington, DC 20585

January 5, 2000

MEMORANDUM FOR: FROM: SUBJECT:

The purpose of this memorandum is to provide guidance to you on an issue presented by section 3147 of the National Defense Authorization Act for Fiscal Year 2000. Section 3147 added a new section 234B to the Atomic Energy Act providing for civil monetary penalties for contractors' violations of any DOE rule, regulation, or order relating to the safeguarding or security of Restricted Data or other classified or "sensitive information."

Neither the Act nor DOE's existing regulations define "sensitive information." Consequently, the Department has received a number of inquiries from its contractors concerning the implementation of this provision, especially on how DOE intends to define "sensitive information." To ensure that affected entities have fair notice of the conduct covered by this provision, DOE will not impose the new penalties provided for by this provision until it issues implementing regulations that include, among other things, a clear definition of the term "sensitive information." A process is underway to develop such regulations.




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