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Federal Register / Vol. 86, No. 243 / Wednesday, December 22, 2021 / Rules and Regulations
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Background In finalizing this rule, DoD exempts portions of the updated and reissued DoD0004 DRCED system of records from certain provisions of the Privacy Act. DoD uses this system of records to automate financial and business transactions, perform cost-management analysis, produce oversight and audit reports, and provide critical data linking to improve performance of mission objectives. This system of records supports DoD in creating predictive analytic models based upon specific data streams to equip decision makers with critical data necessary for execution of fiscal and operational requirements. Some of the records that are part of the DoD0004 DRCED system of records may contain classified national security information and disclosure of those records to an individual may cause damage to national security. The Privacy Act, pursuant to 5 U.S.C. 552ak1, authorizes agencies to claim an exemption for systems of records that contain information properly classified pursuant to executive order. For this reason, DoD has exempted portions of the DoD0004 DRCED system of records from the access and amendment requirements of the Privacy Act, pursuant to 5 U.S.C. 552ak1, to prevent disclosure of any information properly classified pursuant to executive order, including Executive Order 13526, as implemented by DoD
Instruction 5200.01, DoD Information Security Program and Protection of Sensitive Compartmented Information SCI available at https
www.esd.whs.mil/Portals/54/
Documents/DD/issuances/dodi/
520001p.PDF?ver=cF1II-jcFGP6jfNrnTr 8lQ%3d%3d; DoD Manual DoDM
5200.01, Volume 1, DoD Information Security Program: Overview, Classification, and Declassification available at https www.esd.whs.mil/
Portals/54/Documents/DD/issuances/
dodm/520001m_vol1.pdf?ver=2020-0804-092500-203; and DoDM 5200.01, Volume 3, DoD Information Security Program: Protection of Classified Information available at https
www.esd.whs.mil/Portals/54/
Documents/DD/issuances/dodm/
520001m_vol3.pdf?ver=MJfVDnRd2HTyLSzDse9VQ%3d%3d.
This rule will deny an individual access under the Privacy Act to only those portions of records for which the claimed exemption applies. In addition, records in the DoD0004 DRCED system of records are only exempt from the Privacy Act to the extent the purposes
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underlying the exemption pertain to the record.

responsibilities among the various levels of government.

Regulatory Analysis
Executive Order 13175, Consultation and Coordination With Indian Tribal Governments
Executive Order 12866, Regulatory Planning and Review and Executive Order 13563, Improving Regulation and Regulatory Review Executive Orders 12866 and 13563
direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distribute impacts, and equity.
Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. It has been determined that this rule is not a significant regulatory action.
Congressional Review Act This rule is not a major rule as defined by 5 U.S.C. 8042.
Public Law 96354, Regulatory Flexibility Act 5 U.S.C. Chapter 6
The Assistant to the Secretary of Defense for Privacy, Civil Liberties, and Transparency has certified that this Privacy Act rule does not have significant economic impact on a substantial number of small entities because they are concerned only with the administration of Privacy Act systems of records within the DoD.
Public Law 96511, Paperwork Reduction Act 44 U.S.C. Chapter 35
It has been determined that this rule does not impose additional information collection requirements on the public under the Paperwork Reduction Act of 1995 44 U.S.C. 3501 et seq..
Section 202, Public Law 1044, Unfunded Mandates Reform Act It has been determined that this rule does not involve a Federal mandate that may result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more and that it will not significantly or uniquely affect small governments.
Executive Order 13132, Federalism It has been determined that this rule does not have federalism implications.
This rule does not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and
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Executive Order 13175 establishes certain requirements that an agency must meet when it promulgates a proposed rule and subsequent final rule that imposes substantial direct compliance costs on one or more Indian tribes, preempts tribal law, or effects the distribution of power and responsibilities between the federal government and Indian tribes. This rule will not have a substantial effect on Indian tribal governments.
List of Subjects in 32 CFR Part 310
Privacy.
Accordingly, 32 CFR part 310 is amended as follows:
PART 310AMENDED
1. The authority citation for 32 CFR
part 310 continues to read as follows:

Authority: 5 U.S.C. 552a.

2. Section 310.13 is amended by adding paragraph e3 to read as follows:

310.13 Exemptions for DoD-wide systems.

e
3 System identifier and name. DoD
0004, Defense Repository for Common Enterprise Data DRCED.
i Exemptions. This system of records is exempt from subsections 5 U.S.C.
552ac3, d1, d2, d3, and d4 of the Privacy Act.
ii Authority. 5 U.S.C. 552ak1.
iii Exemption from the particular subsections. Exemption from the particular subsections is justified for the following reasons:
A Subsection c3 accounting of disclosures. Because common enterprise records may contain information properly classified pursuant to executive order, the disclosure accountings of such records may also contain information properly classified pursuant to executive order, the disclosure of which may cause damage to national security.
B Subsections d1, 2, 3, and 4
record subjects right to access and amend records. Access to and amendment of records by the record subject could disclose information properly classified pursuant to executive order. Disclosure of classified records to an individual may cause damage to national security.

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