ML043170378

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Ltr to J. Davis, NEI from: S. Morris Subject: Nuclear Energy Institute Use of Encryption Software for Secure Transmission of SGI
ML043170378
Person / Time
Issue date: 11/19/2004
From: Scott(Ois) Morris
NRC/NSIR/DNS
To: Jennifer Davis
Nuclear Energy Institute
Lee E J, NSIR/RSS 301- 415-8099
References
RIS-02-015
Download: ML043170378 (3)


See also: RIS 2002-15

Text

November 19, 2004

Mr. James W. Davis

Director of Operations

Nuclear Energy Institute

1776 I St. N. W. Suite 400

Washington D.C. 20006

SUBJECT:

NUCLEAR ENERGY INSTITUTE USE OF ENCRYPTION SOFTWARE FOR

SECURE TRANSMISSION OF SAFEGUARDS INFORMATION

Dear Mr. Davis:

By letter dated October 4, 2004, you requested clarification on whether a May 5, 2004, letter

from R. Zimmerman (NRC) to S. Floyd (NEI) authorized the use of Pretty Good Protection

(PGP) by NEI and approved the use of PGP Software (Enterprise, Corporate, or Personal)

Desktop Version 8.0.3 developed with PGP Software Development Kit (SDK) 3.0.3 for

encryption of sensitive unclassified SGI. Based on the discussion below, the NRC authorizes

NEI to use PGP to transmit safeguards information (SGI) to authorized SGI holders and

approves the use of PGP software developed using PGP SDK 3.0.3, or any other cryptographic

modules approved by National Institute of Standards and Technology (NIST), which are posted

on the NIST website (http://csrc.nist.gov/cryptval/140-1/1401val.htm). Specifically, the Federal

Information Processing Standards approved cryptographic algorithms using the above software

are acceptable.

Title 10 of the Code of Federal Regulations (10 CFR) Section 73.21(g)(3) states in part that "...

Safeguards Information shall be transmitted only by protected telecommunication circuits

(including facsimile) approved by the NRC." The NRC considers those encryption systems that

NIST has determined conform to the Security Requirements for Cryptographic Modules in

Federal Information Processing Standard (FIPS) 140-2 as being acceptable.

Authorized SGI holders who wish to employ electronic data encryption for the transmission of

safeguards information (SGI) should submit a written request for NRC approval consistent with

the guidance in RIS 2002-15. Although you have not submitted such a written request for NRC

approval, taking consideration of (1) your February 23, 2004, and March 26, 2004, letters, and

(2) your effort to coordinate and manage the collection and distribution of public keys among

interested SGI holders within the nuclear power industry, pursuant to your your October 18,

2004 telephone request, your October 4, 2004, letter will be treated as a written request for

NRC approval to use data encryption for the transmission of SGI.

NRCs approval of your request to use data encryption software to transmit SGI is contingent

upon you and your communication partners (licensees) continuing to be in compliance with the

provisions of 10 CFR 73.21, Requirements for the Protection of Safeguards Information. In

accordance with 10 CFR 73.21(a), authorized SGI holders are required to establish and

maintain an information protection system that satisfies 10 CFR 73.21(b) through (i). Use of

NIST-approved data encryption software in conjunction with an information protection system

that satisfies 10 CFR 73.21(b) through (i) constitutes a protected communications circuit

pursuant to 10 CFR 73.21(g)(3). Compliance with the provisions of 10 CFR 73.21 is subject to

inspection by the NRC staff.

The procedure developed by NEI on the use of encryption software for management and

transmission of SGI is acceptable with modifications (Please refer to the enclosure of our May

5, 2004, letter). This modified procedure may be adopted by authorized SGI holders as an

acceptable, standardized process for the encryption and exchange of SGI among authorized

SGI holders, and between authorized SGI holders and the NRC.

As you have indicated, PGP Software Corporate Desktop Version 8.0.3 was developed with

PGP SDK 3.0.3. NIST Certificate Number 394 validates compliance of this software

development tool with FIPS 140-2 requirements. Thus, PGP Software Corporate Desktop

Version 8.0.3 software is acceptable for processing and transmitting SGI electronically for your

company. Other encryption software or later version of PGP Software Corporate Desktop are

also acceptable provided that:

1.

Encryption software is developed using NIST approved cryptographic modules (i.e.,

PGP SDK 3.0.3, NIST Certificate, Number 394).

2.

You notify the NRC of your intention to update your encryption software 30 days prior to

its first use. When notifying the NRC, include a description of the new software you will

be using and provide a statement indicating NIST certification of the software

development tool.

If you have any questions, please contact me at (301)415-7083.

Sincerely,

/RA/ SM

Scott Morris, Chief

Reactor Security Section

Division of Nuclear Security

Office of Nuclear Security Incident Response

The procedure developed by NEI on the use of encryption software for management and

transmission of SGI is acceptable with modifications (See the enclosure of the May 5, 2004,

letter (ML041180613). This modified procedure may be adopted by authorized SGI holders as

an acceptable, standardized process for the encryption and exchange of SGI among authorized

SGI holders, and between authorized SGI holders and the NRC.

As you have indicated, PGP Software Corporate Desktop Version 8.0.3 was developed with

PGP SDK 3.0.3. NIST Certificate Number 394 validates compliance of this software

development tool with FIPS 140-2 requirements. Thus, PGP Software Corporate Desktop

Version 8.0.3 software is acceptable for processing and transmitting SGI electronically for your

company. Other encryption software or later version of PGP Software Corporate Desktop are

also acceptable provided that:

3.

Encryption software is developed using NIST approved cryptographic modules (i.e.,

PGP SDK 3.0.3, NIST Certificate, Number 394).

4.

You notify the NRC of your intention to update your encryption software 30 days prior to

its first use. When notifying the NRC, include a description of the new software you will

be using and provide a statement indicating NIST certification of the software

development tool.

If you have any questions, please contact me at (301)415-7083.

Sincerely,

/RA/ SM

Scott Morris, Chief

Reactor Security Section

Division of Nuclear Security

Office of Nuclear Security Incident Response

DISTRIBUTION: (Electronic)

RidsNsirOd

DNS r/f

ACCESSION NO.: ML043170378

TEMPLATE NO.: NSIR-002

  • See Previous Concurrence

9 Non-Public

K Public

9 Sensitive

K Non-Sensitive

OFFICE

DNS/NSIR

SC:DNS/NSIR

D:DNS/NSIR

NAME

E Lee*

S Morris*

S. Morris

/f/Shea*

DATE

11/19 /04

11/19 /04

11/19 /04

OFFICIAL RECORD ONLY