Where Industry and Security Intersect
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Material TAC Members:
Mr. Eric McClafferty – Kelley Drye
Dr. Gillian Woollett – Engel & Novitt
Dr. Kimberly Orr, Designated Federal Officer – DoC/BIS
Ms. Yvette Springer - Govt. Liaison – DoC/BIS
Mr. Tom May - Boeing
Dr. James Estep – Battelle Biomedical Science and Technology (via teleconference)
Dr. Carol Sabourin - Battelle Biomedical Science and Technology (via teleconference)
Department of Commerce Attendees:
Mr. Dennis Krepp, Assistant Secretary for Export Administration
John Varesi – DoC/BIS
Representatives from Other US Government Agencies:
Greg Tarr – State Department
John Albert – State Department
Public/Visitors:
Janelle Gamble - Export Mgr, Boeing
Kenneth W. Hutton – Logistic Mgr, Hyperion Catalysis Int’l, Inc (via teleconference)
Wendy Malish – Dow (via teleconference)
Carole Nordstrom – Boeing (via teleconference)
Cynthia Roberts – SABIC Innovative Plastics (via teleconference)
Glen Schweitzer – National Academy of Sciences (via teleconference)
The meeting was opened at 10:00 AM with introductions.
Agenda Items:
Introductions:
Mark Schmeckpeper was welcomed as the newest member of the Materials Technical Advisory Committee. Mark is a Product Manager with DuPont.
Opening Remarks:
Assistant Secretary Krepp provided a welcome and some opening remarks.
Status of Materials Proposals at WA – John Varesi:
John provided status on the proposals of direct interest to the MTAC:
1.C.10 Aircraft Repair Fabric – This proposal opens up the range of shapes for carbon fiber fabric that can be exported without license. The 1 m2 maximum area threshold has been maintained. There were no objections to the proposal in the Spring EG meeting and the proposal is likely to be accepted in December.
1.B.1 Composite Processing Equipment – The proposal raises the control threshold for automated tape laying machines from two axes to 4 axes and separates tape laying machines and automated tow placement machines into separate categories so the controls can be established based on their very different capabilities. There is continued discussion regarding this proposal - additional explanation may be required to explain why the two machine types should be broken out of the same control paragraph. John described the outlook for approval as “hopeful”.
1.C.10 Update regarding Fibrous or Filamentary Materials – this proposal incrementally opens the control thresholds for carbon fiber, provides an exception for dry carbon fibers less than an inch in length, and changes the Tg measurement method for 1.C.10.e prepreg materials. There has been no opposition to the elements of the US proposal. The group is working to integrate the US proposal with proposals submitted on the same control by other countries. There will be a session at the Summer Intercessional regarding the integration of the various proposals for this control.
A question was asked regarding the status of the incorporation into the EAR of changes approved by WA last year. Those changes are currently in interagency review.
Department of Homeland Security – Chem. Facility Anti-terrorism Standards (CFATS) – Mary Beth Kelliher:
The history of the CFATS authorization and regulation development was presented and the results of the program development were described. CFATS has been established to reduce the risks of potential terrorist actions or the result of those actions on chemical processing facilities. CFATS has been established as a risk-based regulatory program and consists of 3 major elements: 1) Use of a questionnaire to establish the risk profile of chem. processing facilities based on criteria that includes the type of chemicals being processed, 2) a vulnerability assessment, and 3) the development of a site security plan based on the findings of the first two elements. Companies having existing security plans that are considered to meet the requirements of CFATS are allowed to use those plans to show compliance. 325 chemicals have been determined to be of interest and consequential quantity levels have been established for each of the listed items. One area of difficulty is the management of ammonium nitrate which is one of the chemicals on the screening list for step 1. Because of the volume of usage of AN and the quantity thresholds that have been established, a prohibitive number of facilities would need to develop site security plans. In recognition of this, a decision has been make to treat AN differently than the other listed chemicals.
4000 sites have been identified in the US and those sites will have need-to-know access to the Terrorist Screening Data Base. Additionally, local first responders having a need-to-know will be briefed using the CVI and given access to information regarding potential threats.
There are currently 60 inspectors located at 10 regional centers. The centers were established based on the chemical processing being performed in those regions.
The project is proceeding well. Some unintended consequences to the agricultural sector relating to the ammonium nitrate will still need to be addressed.
A question was asked regarding grants to help fund the establishment and implementation of the site security plans. There is no funding available under this program. Most of the high risk sites are already working to a security plan. It is also thought that sharing of best practices, while maintaining IP interests, would help reduce the cost impact to participating companies.
Mustard gas was discussed briefly and it was pointed out that some mustard gasses have been decontrolled as cancer treatments.
Chemical Weapons Convention – Dennis Krepp, Joe Christofaro:
Joe provided a brief history of the chemical weapons convention which regulates dual use chemical compounds and has some overlap with the Australia Group. In 2008 the US submitted 580 declarations – most of which were sites producing discrete organic chemical products. In 2008 there was a significant increase in hosted inspections (to the level of 20 per year). This increase has been the result of increased focus on facilities manufacturing organic products.
A question was posed asking how the proprietary information of a company can be protected. Company records are held proprietary and a team from Commerce will typically assist the company in the preparation for the inspection. Usually sensitive information can be redacted from the documents supporting the inspections.
Additional Protocol – Jill Shepherd:
Jill provided some background information regarding the Additional Protocol to the Safeguards Agreement with the International Atomic Energy Agency. The protocol provides additional safeguards and is addressing facilities and sites involved in the nuclear fuel life-cycle. Because the US is a nuclear weapons state, it was not obligated, by the NPT, to conduct a Safeguards Agreement but chose to do so voluntarily as an incentive to other non-nuclear weapons States to conduct Safeguards Agreements. As of January 6, 2009, the US has entered its Additional Protocol into effect. The AP is focused on nuclear materials on the NSG “trigger list” and the sites of interest include mines, mills, and refinement facilities. The protocol requires a declaration of sites performing research and development relating to the nuclear fuel cycle or those sites working directly with nuclear fuels or nuclear waste materials. The US AP declaration is due to IAEA on July 5, 2009. 1-2 complimentary access visits per year are conducted as part of the protocol – most of the sites are already otherwise regulated.
Update on Australia Group Controls- Dennis Krepp:
The group is working to incorporate changes agreed in October of 2008. Additional subjects now being addressed by the group include how to address used equipment and how to control synthetic DNA. Within the United States, there is no differentiation between new and used equipment.
Update on Missile Technology Control Regime Activities – Dennis Krepp:
Last year’s changes are still in the interagency review prior to incorporation. A number of changes are being discussed this year including:
The MTCR Plenary will take place in November.
Additions to the CDC Select Agent Listing – Kimberly Orr:
The National Select Agent Registry Program oversees the activities involving possession of biological agents and toxins that have the potential to pose a severe threat to people, animals or plants (7 CFR Part 331, 9 CFR Part 121, and 42 CFR Part 73). The program maintains a list of agents requiring registration and reporting. One plant bacteria (Rathayibacter toxicus) and 1 plant fungus (Phoma glycinicola) not on the Australia group list were added to the listing this year and two bacteria (Candidatus Liberobacet africanus and asiaticus )were removed. Until the EAR is amended, the CCL and Select Agent list will vary slightly.
The group is currently discussing the fine tuning of genetic elements controls (to be discussed in greater depth during the closed session).
Composite Working Group Activities Cindy Roberts, Tom May:
Cindy Roberts (SABIC Innovative Plastics) provided a summary of the activities of a team she is leading to address potential improvements to 1C008. The group is addressing inconsistencies, and coverage gaps and is considering the development of a white paper. Focus areas of the team include:
It was suggested the group work with wording that had been added by the Wassenaar Arrangement last year but which has not yet been published in the CCL. Cindy indicated that the team is working with the newly agreed language regarding “fusible”.
Other CWG activities were briefly addressed including:
Public Comments:
Larry Christiansen broached the subject regarding monolithic graphite products and the coverage of 1C107. The producer of the material is struggling with the terminology “usable in rocket motor nozzles and reentry vehicles”. Certain monolithic graphite materials having high coefficients of thermal expansion are not particularly useful in rocket motor nozzles due to thermal shock issues. It is believed that competing products are available in China and may be available in Malaysia in quality comparable to that required for applications to mold tooling. A very substantial body of information has been collected to support the positions Larry was presenting. This information will likely be used to develop a proposal to the MTCR. Larry was invited to make a technical presentation at the Next MTAC meeting.
The next meeting of the MTAC is scheduled as follows: 13 August, 2009