Sec. 64.1903  Obligations of all incumbent independent local exchange 
          carriers.

    (a) Except as provided in paragraph (c) of this section, an 
incumbent independent LEC providing in-region, interstate, interexchange 
services or in-region international interexchange services shall provide 
such services through an affiliate that satisfies the following 
requirements:
    (1) The affiliate shall maintain separate books of account from its 
affiliated exchange companies. Nothing in this section requires the 
affiliate to maintain separate books of account that comply with Part 32 
of this title;
    (2) The affiliate shall not jointly own transmission or switching 
facilities with its affiliated exchange companies. Nothing in this 
section prohibits an affiliate from sharing personnel or other resources 
or assets with an affiliated exchange company; and
    (3) The affiliate shall acquire any services from its affiliated 
exchange companies for which the affiliated exchange companies are 
required to file a tariff at tariffed rates, terms, and conditions. 
Nothing in this section shall prohibit the affiliate from acquiring any 
unbundled network elements or exchange services for the provision of a 
telecommunications service from its affiliated exchange companies, 
subject to the same terms and conditions as provided in an agreement 
approved under section 252 of the Communications Act of 1934, as 
amended.
    (b) The affiliate required in paragraph (a) of this section shall be 
a separate legal entity from its affiliated exchange companies. The 
affiliate may be staffed by personnel of its affiliated exchange 
companies, housed in existing offices of its affiliated exchange 
companies, and use its affiliated exchange companies' marketing and 
other services, subject to paragraph (a)(3) of this section.
    (c) An incumbent independent LEC that is providing in-region, 
interstate, domestic interexchange services or in-region international 
interexchange services prior to April 18, 1997, but is not providing 
such services through an affiliate that satisfies paragraph (a) of this 
section as of April 18, 1997, shall comply with the requirements of this 
section no later than April 18, 1998.

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Appendix A to Part 64--Telecommunications Service Priority (TSP) System 
           for National Security Emergency Preparedness (NSEP)

                        1. Purpose and Authority

    a. This appendix establishes policies and procedures and assigns 
responsibilities for the National Security Emergency Preparedness (NSEP) 
Telecommunications Service Priority (TSP) System. The NSEP TSP System 
authorizes priority treatment to certain domestic telecommunications 
services (including portions of U.S. international telecommunication 
services provided by U.S. service vendors) for which provisioning or 
restoration priority (RP) levels are requested, assigned, and approved 
in accordance with this appendix.
    b. This appendix is issued pursuant to sections 1, 4(i), 201 through 
205 and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 154(i), 201 through 205 and 303(r). These sections grant to the 
Federal Communications Commission (FCC) the authority over the 
assignment and approval of priorities for provisioning and restoration 
of common carrier-provided telecommunications services. Under section 
706 of the Communications Act, this authority may be superseded, and 
expanded to include non-common carrier telecommunication services, by 
the war emergency powers of the President of the United States. This 
appendix provides the Commission's Order to telecommunication service 
vendors and users to comply with policies and procedures establishing 
the NSEP TSP System, until such policies and procedures are superseded 
by the President's war emergency powers. This appendix is intended to be 
read in conjunction with regulations and procedures that the Executive 
Office of the President issues (1) to implement responsibilities 
assigned in section 6(b) of this appendix, or (2) for use in the event 
this appendix is superseded by the President's war emergency powers.
    c. Together, this appendix and the regulations and procedures issued 
by the Executive Office of the President establish one uniform system of 
priorities for provisioning and restoration of NSEP telecommunication 
services both before and after invocation of the President's war 
emergency powers. In order that government and industry resources may be 
used effectively under all conditions, a single set of rules, 
regulations, and procedures is necessary, and they must be applied on a 
day-to-day basis to all NSEP services so that the priorities they 
establish can be implemented at once when the need arises.
    * In sections 2(a)(2) and 2(b)(2) of Executive Order No. 12472, 
``Assignment of National Security and Emergency Preparedness 
Telecommunications Functions'' April 3, 1984 ( 49 FR 13471  (1984)), the 
President assigned to the Director, Office of Science and Technology 
Policy, certain NSEP telecommunication resource management 
responsibilities. The term ``Executive Office of the President'' as used 
in this appendix refers to the official or organization designated by 
the President to act on his behalf.

                     2. Applicability and Revocation

    a. This appendix applies to NSEP telecommunications services:
    (1) For which initial or revised priority level assignments are 
requested pursuant to section 8 of this appendix.
    (2) Which were assigned restoration priorities under the provision 
of FCC Order 80-581; 81 FCC 2d 441 (1980); 47 CFR part 64, appendix A, 
``Priority System for the Restoration of Common Carrier Provided 
Intercity Private Line Services''; and are being resubmitted for 
priority level assignments pursuant to section 10 of this appendix. 
(Such services will retain assigned restoration priorities until a 
resubmission for a TSP assignment is completed or until the existing RP 
rules are terminated.)
    b. FCC Order 80-581 will continue to apply to all other intercity, 
private line circuits assigned restoration priorities thereunder until 
the fully operating capability date of this appendix, 30 months after 
the initial operating capability date referred to in subsection d of 
this section.
    c. In addition, FCC Order, ``Precedence System for Public 
Correspondence Services Provided by the Communications Common Carriers'' 
( 34 FR 17292  (1969)); (47 CFR part 64, appendix B), is revoked as of the 
effective date of this appendix.
    d. The initial operating capability (IOC) date for NSEP TSP will be 
nine months after release in the Federal Register of the FCC's order 
following review of procedures submitted by the Executive Office of the 
President. On this IOC date requests for priority assignments generally 
will be accepted only by the Executive Office of the President.

                             3. Definitions

    As used in this part:
    a. Assignment means the designation of priority level(s) for a 
defined NSEP telecommunications service for a specified time period.
    b. Audit means a quality assurance review in response to identified 
problems.
    c. Government refers to the Federal government or any foreign, 
state, county, municipal or other local government agency or 
organization. Specific qualifications will be supplied whenever 
reference to a particular level of government is intended (e.g., 
``Federal government'', ``state government''). ``Foreign government'' 
means any sovereign

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empire, kingdom, state, or independent political community, including 
foreign diplomatic and consular establishments and coalitions or 
associations of governments (e.g., North Atlantic Treaty Organization 
(NATO), Southeast Asian Treaty Organization (SEATO), Organization of 
American States (OAS), and government agencies or organization (e.g., 
Pan American Union, International Postal Union, and International 
Monetary Fund)).
    d. National Communications System (NCS) refers to that organization 
established by the President in Executive Order No. 12472, ``Assignment 
of National Security and Emergency Preparedness Telecommunications 
Functions,'' April 3, 1984,  49 FR 13471  (1984).
    e. National Coordinating Center (NCC) refers to the joint 
telecommunications industry-Federal government operation established by 
the National Communications System to assist in the initiation, 
coordination, restoration, and reconstitution of NSEP telecommunication 
services or facilities.
    f. National Security Emergency Preparedness (NSEP) 
telecommunications services, or ``NSEP services,'' means 
telecommunication services which are used to maintain a state of 
readiness or to respond to and manage any event or crisis (local, 
national, or international), which causes or could cause injury or harm 
to the population, damage to or loss of property, or degrades or 
threatens the NSEP posture of the United States. These services fall 
into two specific categories, Emergency NSEP and Essential NSEP, and are 
assigned priority levels pursuant to section 9 of this appendix.
    g. NSEP treatment refers to the provisioning of a telecommunication 
service before others based on the provisioning priority level assigned 
by the Executive Office of the President.
    h. Priority action means assignment, revision, revocation, or 
revalidation by the Executive Office of the President of a priority 
level associated with an NSEP telecommunications service.
    i. Priority level means the level that may be assigned to an NSEP 
telecommunications service specifying the order in which provisioning or 
restoration of the service is to occur relative to other NSEP and/or 
non-NSEP telecommunication services. Priority levels authorized by this 
appendix are designated (highest to lowest) ``E,'' ``1,'' ``2,'' ``3,'' 
``4,'' and ``5,'' for provisioning and ``1,'' ``2,'' ``3,'' ``4,'' and 
``5,'' for restoration.
    j. Priority level assignment means the priority level(s) designated 
for the provisioning and/or restoration of a particular NSEP 
telecommunications service under section 9 of this appendix.
    k. Private NSEP telecommunications services include non-common 
carrier telecommunications services including private line, virtual 
private line, and private switched network services.
    l. Provisioning means the act of supplying telecommunications 
service to a user, including all associated transmission, wiring and 
equipment. As used herein, ``provisioning'' and ``initiation'' are 
synonymous and include altering the state of an existing priority 
service or capability.
    m. Public switched NSEP telecommunications services include those 
NSEP telecommunications services utilizing public switched networks. 
Such services may include both interexchange and intraexchange network 
facilities (e.g., switching systems, interoffice trunks and subscriber 
loops).
    n. Reconciliation means the comparison of NSEP service information 
and the resolution of identified discrepancies.
    o. Restoration means the repair or returning to service of one or 
more telecommunication services that have experienced a service outage 
or are unusable for any reason, including a damaged or impaired 
telecommunications facility. Such repair or returning to service may be 
done by patching, rerouting, substitution of component parts or 
pathways, and other means, as determined necessary by a service vendor.
    p. Revalidation means the rejustification by a service user of a 
priority level assignment. This may result in extension by the Executive 
Office of the President of the expiration date associated with the 
priority level assignment.
    q. Revision means the change of priority level assignment for an 
NSEP telecommunications service. This includes any extension of an 
existing priority level assignment to an expanded NSEP service.
    r. Revocation means the elimination of a priority level assignment 
when it is no longer valid. All priority level assignments for an NSEP 
service are revoked upon service termination.
    s. Service identification refers to the information uniquely 
identifying an NSEP telecommunications service to the service vendor 
and/or service user.
    t. Service user refers to any individual or organization (including 
a service vendor) supported by a telecommunications service for which a 
priority level has been requested or assigned pursuant to section 8 or 9 
of this appendix.
    u. Service vendor refers to any person, association, partnership, 
corporation, organization, or other entity (including common carriers 
and government organizations) that offers to supply any 
telecommunications equipment, facilities, or services (including 
customer premises equipment and wiring) or combination thereof. The term 
includes resale carriers, prime contractors, subcontractors, and 
interconnecting carriers.

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    v. Spare circuits or services refers to those not being used or 
contracted for by any customer.
    w. Telecommunication services means the transmission, emission, or 
reception of signals, signs, writing, images, sounds, or intelligence of 
any nature, by wire, cable, satellite, fiber optics, laser, radio, 
visual or other electronic, electric, electromagnetic, or acoustically 
coupled means, or any combination thereof. The term can include 
necessary telecommunication facilities.
    x. Telecommunications Service Priority (TSP) system user refers to 
any individual, organization, or activity that interacts with the NSEP 
TSP System.

                                4. Scope

    a. Domestic NSEP services. The NSEP TSP System and procedures 
established by this appendix authorize priority treatment to the 
following domestic telecommunication services (including portions of 
U.S. international telecommunication services provided by U.S. vendors) 
for which provisioning or restoration priority levels are requested, 
assigned, and approved in accordance with this appendix:
    (1) Common carrier services which are:
    (a) Interstate or foreign telecommunications services,
    (b) Intrastate telecommunication services inseparable from 
interstate or foreign telecommunications services, and instrastate 
telecommunication services to which priority levels are assigned 
pursuant to section 9 of this appendix.

    Note:  Initially, the NSEP TSP System's applicability to public 
switched services is limited to (a) provisioning of such services (e.g., 
business, centrex, cellular, foreign exchange, Wide Area Telephone 
Service (WATS) and other services that the selected vendor is able to 
provision) and (b) restoration of services that the selected vendor is 
able to restore.

    (2) Services which are provided by government and/or non-common 
carriers and are interconnected to common carrier services assigned a 
priority level pursuant to section 9 of this appendix.
    b. Control services and orderwires. The NSEP TSP System and 
procedures established by this appendix are not applicable to authorize 
priority treatment to control services or orderwires owned by a service 
vendor and needed for provisioning, restoration, or maintenance of other 
services owned by that service vendor. Such control services and 
orderwires shall have priority provisioning and restoration over all 
other telecommunication services (including NSEP services) and shall be 
exempt from preemption. However, the NSEP TSP System and procedures 
established by this appendix are applicable to control services or 
orderwires leased by a service vendor.
    c. Other services. The NSEP TSP System may apply, at the discretion 
of and upon special arrangements by the NSEP TSP System users involved, 
to authorize priority treatment to the following telecommunication 
services:
    (1) Government or non-common carrier services which are not 
connected to common carrier provided services assigned a priority level 
pursuant to section 9 of this appendix.
    (2) Portions of U.S. international services which are provided by 
foreign correspondents. (U.S. telecommunication service vendors are 
encouraged to ensure that relevant operating arrangements are consistent 
to the maximum extent practicable with the NSEP TSP System. If such 
arrangements do not exist, U.S. telecommunication service vendors should 
handle service provisioning and/or restoration in accordance with any 
system acceptable to their foreign correspondents which comes closest to 
meeting the procedures established in this appendix.)

                                5. Policy

    The NSEP TSP System is the regulatory, administrative, and 
operational system authorizing and providing for priority treatment, 
i.e., provisioning and restoration, of NSEP telecommunication services. 
As such, it establishes the framework for telecommunication service 
vendors to provision, restore, or otherwise act on a priority basis to 
ensure effective NSEP telecommunication services. The NSEP TSP System 
allows the assignment of priority levels to any NSEP service across 
three time periods, or stress conditions: Peacetime/Crisis/
Mobilizations, Attack/War, and Post-Attack/Recovery. Although priority 
levels normally will be assigned by the Executive Office of the 
President and retained by service vendors only for the current time 
period, they may be preassigned for the other two time periods at the 
request of service users who are able to identify and justify in 
advance, their wartime or post-attack NSEP telecommunication 
requirements. Absent such preassigned priority levels for the Attack/War 
and Post-Attack/Recovery periods, priority level assignments for the 
Peacetime/Crisis/Mobilization period will remain in effect. At all 
times, priority level assignments will be subject to revision by the FCC 
or (on an interim basis) the Executive Office of the President, based 
upon changing NSEP needs. No other system of telecommunication service 
priorities which conflicts with the NSEP TSP System is authorized.

                           6. Responsibilities

    a. The FCC will:
    (1) Provide regulatory oversight of implementation of the NSEP TSP 
System.

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    (2) Enforce NSEP TSP System rules and regulations, which are 
contained in this appendix.
    (3) Act as final authority for approval, revision, or disapproval of 
priority actions by the Executive Office of the President and adjudicate 
disputes regarding either priority actions or denials of requests for 
priority actions by the Executive Office of the President, until 
superseded by the President's war emergency powers under section 706 of 
the Communications Act.
    (4) Function (on a discretionary basis) as a sponsoring Federal 
organization. (See section 6(c) below.)
    b. The Executive Office of the President will:
    (1) During exercise of the President's war emergency powers under 
section 706 of the Communications Act, act as the final approval 
authority for priority actions or denials of requests for priority 
actions, adjudicating any disputes.
    (2) Until the exercise of the President's war emergency powers, 
administer the NSEP TSP System which includes:
    (a) Receiving, processing, and evaluating requests for priority 
actions from service users, or sponsoring Federal government 
organizations on behalf of service users (e.g., Department of State or 
Defense on behalf of foreign governments, Federal Emergency Management 
Agency on behalf of state and local governments, and any Federal 
organization on behalf of private industry entities). Action on such 
requests will be completed within 30 days of receipt.
    (b) Assigning, revising, revalidating, or revoking priority levels 
as necessary or upon request of service users concerned, and denying 
requests for priority actions as necessary, using the categories and 
criteria specified in section 12 of this appendix. Action on such 
requests will be completed within 30 days of receipt.
    (c) Maintaining data on priority level assignments.
    (d) Periodically forwarding to the FCC lists of priority actions by 
the Executive Office of the President for review and approval.
    (e) Periodically initiating reconciliation.
    (f) Testing and evaluating the NSEP TSP System for effectiveness.
    (g) Conducting audits as necessary. Any Telecommunications Service 
Priority (TSP) System user may request the Executive Office of the 
President to conduct an audit.
    (h) Issuing, subject to review by the FCC, regulations and 
procedures supplemental to and consistent with this appendix regarding 
operation and use of the NSEP TSP System.
    (i) Serving as a centralized point-of-contact for collecting and 
disseminating to all interested parties (consistent with requirements 
for treatment of classified and proprietary material) information 
concerning use and abuse of the NSEP TSP System.
    (j) Establishing and assisting a TSP System Oversight Committee to 
identify and review any problems developing in the system and recommend 
actions to correct them or prevent recurrence. In addition to 
representatives of the Executive Office of the President, 
representatives from private industry (including telecommunication 
service vendors), state and local governments, the FCC, and other 
organizations may be appointed to that Committee.
    (k) Reporting at least quarterly to the FCC and TSP System Oversight 
Committee, together with any recommendations for action, the operational 
status of and trends in the NSEP TSP System, including:
    (i) Numbers of requests processed for the various priority actions, 
and the priority levels assigned.
    (ii) Relative percentages of services assigned to each priority 
level under each NSEP category and subcategory.
    (iii) Any apparent serious misassignment or abuse of priority level 
assignments.
    (iv) Any existing or developing problem.
    (l) Submitting semi-annually to the FCC and TSP System Oversight 
Committee a summary report identifying the time and event associated 
with each invocation of NSEP treatment under section 9(c) of this 
appendix, whether the NSEP service requirement was adequately handled, 
and whether any additional charges were incurred. These reports will be 
due by April 30th for the preceding July through December and by October 
31 for the preceding January through June time periods.
    (m) All reports submitted to the FCC should be directed to Chief, 
Domestic Services Branch, Common Carrier Bureau, Washington, DC 20554.
    (3) Function (on a discretionary basis) as a sponsoring Federal 
organization. (See section 6(c) below.)
    c. Sponsoring Federal organizations will:
    (1) Review and decide whether to sponsor foreign, state, and local 
government and private industry (including telecommunication service 
vendors) requests for priority actions. Federal organizations will 
forward sponsored requests with recommendations for disposition to the 
Executive Office of the President. Recommendations will be based on the 
categories and criteria in section 12 of this appendix.
    (2) Forward notification of priority actions or denials of requests 
for priority actions from the Executive Office of the President to the 
requesting foreign, state, and local government and private industry 
entities.
    (3) Cooperate with the Executive Office of the President during 
reconciliation, revalidation, and audits.
    (4) Comply with any regulations and procedures supplemental to and 
consistent with this appendix which are issued by the Executive Office 
of the President.

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    d. Service users will:
    (1) Identify services requiring priority level assignments and 
request and justify priority level assignments in accordance with this 
appendix and any supplemental regulations and procedures issued by the 
Executive Office of the President that are consistent with this 
appendix.
    (2) Request and justify revalidation of all priority level 
assignments at least every three years.
    (3) For services assigned priority levels, ensure (through 
contractual means or otherwise) availability of customer premises 
equipment and wiring necessary for end-to-end service operation by the 
service due date, and continued operation; and, for such services in the 
Emergency NSEP category, by the time that vendors are prepared to 
provide the services. Additionally, designate the organization 
responsible for the service on an end-to-end basis.
    (4) Be prepared to accept services assigned priority levels by the 
service due dates or, for services in the Emergency NSEP category, when 
they are available.
    (5) Pay vendors any authorized costs associated with services that 
are assigned priority levels.
    (6) Report to vendors any failed or unusable services that are 
assigned priority levels.
    (7) Designate a 24-hour point-of-contact for matters concerning each 
request for priority action and apprise the Executive Office of the 
President thereof.
    (8) Upon termination of services that are assigned priority levels, 
or circumstances warranting revisions in priority level assignment 
(e.g., expansion of service), request and justify revocation or 
revision.
    (9) When NSEP treatment is invoked under section 9(c) of this 
appendix, within 90 days following provisioning of the service involved, 
forward to the National Coordinating Center (see section 3(e) of this 
appendix) complete information identifying the time and event associated 
with the invocation and regarding whether the NSEP service requirement 
was adequately handled and whether any additional charges were incurred.
    (10) Cooperate with the Executive Office of the President during 
reconciliation, revalidation, and audits.
    (11) Comply with any regulations and procedures supplemental to and 
consistent with this appendix that are issued by the Executive Office of 
the President.
    e. Non-federal service users, in addition to responsibilities 
prescribed above in section 6(d), will obtain a sponsoring Federal 
organization for all requests for priority actions. If unable to find a 
sponsoring Federal organization, a non-federal service user may submit 
its request, which must include documentation of attempts made to obtain 
a sponsor and reasons given by the sponsor for its refusal, directly to 
the Executive Office of the President.
    f. Service vendors will:
    (1) When NSEP treatment is invoked by service users, provision NSEP 
telecommunication services before non-NSEP services, based on priority 
level assignments made by the Executive Office of the President. 
Provisioning will require service vendors to:
    (a) Allocate resources to ensure best efforts to provide NSEP 
services by the time required. When limited resources constrain response 
capability, vendors will address conflicts for resources by:
    (i) Providing NSEP services in order of provisioning priority level 
assignment (i.e., ``E'', ``1'', ``2'', ``3'', ``4'', or ``5'');
    (ii) Providing Emergency NSEP services (i.e., those assigned 
provisioning priority level ``E'') in order of receipt of the service 
requests;
    (iii) Providing Essential NSEP services (i.e., those assigned 
priority levels ``1'', ``2'', ``3'', ``4'', or ``5'') that have the same 
provisioning priority level in order of service due dates; and
    (iv) Referring any conflicts which cannot be resolved (to the mutual 
satisfaction of servicer vendors and users) to the Executive Office of 
the President for resolution.
    (b) Comply with NSEP service requests by:
    (i) Allocating resources necessary to provide Emergency NSEP 
services as soon as possible, dispatching outside normal business hours 
when necessary;
    (ii) Ensuring best efforts to meet requested service dates for 
Essential NSEP services, negotiating a mutually (customer and vendor) 
acceptable service due date when the requested service due date cannot 
be met; and
    (iii) Seeking National Coordinating Center (NCC) assistance as 
authorized under the NCC Charter (see section 1.3, NCC Charter, dated 
October 9, 1985).
    (2) Restore NSEP telecommunications services which suffer outage, or 
are reported as unusable or otherwise in need of restoration, before 
non-NSEP services, based on restoration priority level assignments. 
(Note: For broadband or multiple service facilities, restoration is 
permitted even though it might result in restoration of services 
assigned no or lower priority levels along with, or sometimes ahead of, 
some higher priority level services.) Restoration will require service 
vendors to restore NSEP services in order of restoration priority level 
assignment (i.e., ``1'', ``2'', ``3'', ``4'', or ``5'') by:
    (a) Allocating available resources to restore NSEP services as 
quickly as practicable, dispatching outside normal business hours to 
restore services assigned priority levels ``1'', ``2'', and ``3'' when 
necessary, and services assigned priority level ``4'' and ``5'' when the 
next business day is more than 24 hours away;

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    (b) Restoring NSEP services assigned the same restoration priority 
level based upon which can be first restored. (However, restoration 
actions in progress should not normally be interrupted to restore 
another NSEP service assigned the same restoration priority level);
    (c) Patching and/or rerouting NSEP services assigned restoration 
priority levels from ``1'' through ``5,'' when use of patching and/or 
rerouting will hasten restoration;
    (d) Seeking National Coordinating Center (NCC) assistance authorized 
under the NCC Charter; and
    (e) Referring any conflicts which cannot be resolved (to the mutual 
satisfaction of service vendors and users) to the Executive Office of 
the President for resolution.
    (3) Respond to provisioning requests of customers and/or other 
service vendors, and to restoration priority level assignments when an 
NSEP service suffers an outage or is reported as unusable, by:
    (a) Ensuring that vendor personnel understand their responsibilities 
to handle NSEP provisioning requests and to restore NSEP service; and
    (b) Providing a 24-hour point-of-contact for receiving provisioning 
requests for Emergency NSEP services and reports of NSEP service outages 
or unusability.
    (c) Seek verification from an authorized entity if legitimacy of a 
priority level assignment or provisioning request for an NSEP service is 
in doubt. However, processing of Emergency NSEP service requests will 
not be delayed for verification purposes.
    (4) Cooperate with other service vendors involved in provisioning or 
restoring a portion of an NSEP service by honoring provisioning or 
restoration priority level assignments, or requests for assistance to 
provision or restore NSEP services, as detailed in sections 6(f)(1), 
(2), and (3) above.
    (5) All service vendors, including resale carriers, are required to 
ensure that service vendors supplying underlying facilities are provided 
information necessary to implement priority treatment of facilities that 
support NSEP services.
    (6) Preempt, when necessary, existing services to provide an NSEP 
service as authorized in section 7 of this appendix.
    (7) Assist in ensuring that priority level assignments of NSEP 
services are accurately identified ``end-to-end'' by:
    (a) Seeking verification from an authorized Federal government 
entity if the legitimacy of the restoration priority level assignment is 
in doubt;
    (b) Providing to subcontractors and/or interconnecting carriers the 
restoration priority level assigned to a service;
    (c) Supplying, to the Executive Office of the President, when acting 
as a prime contractor to a service user, confirmation information 
regarding NSEP service completion for that portion of the service they 
have contracted to supply;
    (d) Supplying, to the Executive Office of the President, NSEP 
service information for the purpose of reconciliation.
    (e) Cooperating with the Executive Office of the President during 
reconciliation.
    (f) Periodically initiating reconciliation with their subcontractors 
and arranging for subsequent subcontractors to cooperate in the 
reconciliation process.
    (8) Receive compensation for costs authorized through tariffs or 
contracts by:
    (a) Provisions contained in properly filed state or Federal tariffs; 
or
    (b) Provisions of properly negotiated contracts where the carrier is 
not required to file tariffs.
    (9) Provision or restore only the portions of services for which 
they have agreed to be responsible (i.e., have contracted to supply), 
unless the President's war emergency powers under section 706 of the 
Communications Act are in effect.
    (10) Cooperate withe the Executive Office of the President during 
audits.
    (11) Comply with any regulations or procedures supplemental to and 
consistent with this appendix that are issued by the Executive Office of 
the President and reviewed by the FCC.
    (12) Insure that at all times a reasonable number of public switched 
network services are made available for public use.
    (13) Not disclose information concerning NSEP services they provide 
to those not having a need-to-know or might use the information for 
competitive advantage.

                   7. Preemption of Existing Services

    When necessary to provision or restore NSEP services, service 
vendors may preempt services they provide as specified below. ``User'' 
as used in this Section means any user of a telecommunications service, 
including both NSEP and non-NSEP services. Prior consent by a preempted 
user is not required.
    a. The sequence in which existing services may be preempted to 
provision NSEP services assigned a provisioning priority level ``E'' or 
restore NSEP services assigned a restoration priority level from ``1'' 
through ``5'':
    (1) Non-NSEP services: If suitable spare services are not available, 
then, based on the considerations in this appendix and the service 
vendor's best judgment, non-NSEP services will be preempted. After 
ensuring a sufficient number of public switched services are available 
for public use, based on the service vendor's best judgment, such 
services may be used to satisfy a requirement for provisioning or 
restoring NSEP services.
    (2) NSEP services: If no suitable spare or non-NSEP services are 
available, then existing NSEP services may be preempted to provision or 
restore NSEP services with higher

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priority level assignments. When this is necessary, NSEP services will 
be selected for preemption in the inverse order of priority level 
assignment.
    (3) Service vendors who are preempting services will ensure their 
best effort to notify the service user of the preempted service and 
state the reason for and estimated duration of the preemption.
    b. Service vendors may, based on their best judgment, determine the 
sequence in which existing services may be preempted to provision NSEP 
services assigned a provisioning priority of ``1'' through ``5''. 
Preemption is not subject to the consent of the user whose service will 
be preempted.
    8. Requests for Priority Assignments.
    All service users are required to submit requests for priority 
actions through the Executive Office of the President in the format and 
following the procedures prescribed by that Office.

     9. Assignment, Approval, Use, and Invocation of Priority Levels

    a. Assignment and approval of priority levels. Priority level 
assignments will be based upon the categories and criteria specified in 
section 12 of this appendix. A priority level assignment made by the 
Executive Office of the President will serve as that Office's 
recommendation to the FCC. Until the President's war emergency powers 
are invoked, priority level assignments must be approved by the FCC. 
However, service vendors are ordered to implement any priority level 
assignments that are pending FCC approval.
    After invocation of the President's war emergency powers, these 
requirements may be superseded by other procedures issued by the 
Executive Office of the President.
    b. Use of Priority Level Assignments.
    (1) All provisioning and restoration priority level assignments for 
services in the Emergency NSEP category will be included in initial 
service orders to vendors. Provisioning priority level assignments for 
Essential NSEP services, however, will not usually be included in 
initial service orders to vendors. NSEP treatment for Essential NSEP 
services will be invoked and provisioning priority level assignments 
will be conveyed to service vendors only if the vendors cannot meet 
needed service dates through the normal provisioning process.
    (2) Any revision or revocation of either provisioning or restoration 
priority level assignments will also be transmitted to vendors.
    (3) Service vendors shall accept priority levels and/or revisions 
only after assignment by the Executive Office of the President.

    Note:  Service vendors acting as prime contractors will accept 
assigned NSEP priority levels only when they are accompanied by the 
Executive Office of the President designated service identification, 
i.e., TSP Authorization Code. However, service vendors are authorized to 
accept priority levels and/or revisions from users and contracting 
activities before assignment by the Executive Office of the President 
when service vendor, user, and contracting activities are unable to 
communicate with either the Executive Office of the President or the 
FCC. Processing of Emergency NSEP service requests will not be delayed 
for verification purposes.


    c. Invocation of NSEP treatment. To invoke NSEP treatment for the 
priority provisioning of an NSEP telecommunications service, an 
authorized Federal official either within, or acting on behalf of, the 
service user's organization must make a written or oral declaration to 
concerned service vendor(s) and the Executive Office of the President 
that NSEP treatment is being invoked. Authorized Federal officials 
include the head or director of a Federal agency, commander of a 
unified/specified military command, chief of a military service, or 
commander of a major military command; the delegates of any of the 
foregoing; or any other officials as specified in supplemental 
regulations or procedures issued by the Executive Office of the 
President. The authority to invoke NSEP treatment may be delegated only 
to a general or flag officer of a military service, civilian employee of 
equivalent grade (e.g., Senior Executive Service member), Federal 
Coordinating Officer or Federal Emergency Communications Coordinator/
Manager, or any other such officials specified in supplemental 
regulations or procedures issued by the Executive Office of the 
President. Delegates must be designated as such in writing, and written 
or oral invocations must be accomplished, in accordance with 
supplemental regulations or procedures issued by the Executive Office of 
the President.

 10. Resubmission of Circuits Presently Assigned Restoration Priorities

    All circuits assigned restoration priorities must be reviewed for 
eligibility for initial restoration priority level assignment under the 
provisions of this appendix. Circuits currently assigned restoration 
priorities, and for which restoration priority level assignments are 
requested under section 8 of this appendix, will be resubmitted to the 
Executive Office of the President. To resubmit such circuits, service 
users will comply with applicable provisions of section 6(d) of this 
appendix.

                               11. Appeal

    Service users or sponsoring Federal organizations may appeal any 
priority level assignment, denial, revision, revocation, approval, or 
disapproval to the Executive Office of the President within 30 days of 
notification to the service user. The appellant must use the

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form or format required by the Executive Office of the President and 
must serve the FCC with a copy of its appeal. The Executive Office of 
the President will act on the appeal within 90 days of receipt. Service 
users and sponsoring Federal organizations may only then appeal directly 
to the FCC. Such FCC appeal must be filed within 30 days of notification 
of the Executive Office of the President's decision on appeal. 
Additionally, the Executive Office of the President may appeal any FCC 
revisions, approvals, or disapprovals to the FCC. All appeals to the FCC 
must be submitted using the form or format required. The party filing 
its appeal with the FCC must include factual details supporting its 
claim and must serve a copy on the Executive Office of the President and 
any other party directly involved. Such party may file a response within 
20 days, and replies may be filed within 10 days thereafter. The 
Commission will not issue public notices of such submissions. The 
Commission will provide notice of its decision to the parties of record. 
Any appeals to the Executive Office of the President that include a 
claim of new information that has not been presented before for 
consideration may be submitted at any time.

      12. NSEP TSP System Categories, Criteria, and Priority Levels

    a. General. NSEP TSP System categories and criteria, and permissible 
priority level assignments, are defined and explained below.
    (1) The Essential NSEP category has four subcategories: National 
Security Leadership; National Security Posture and U.S. Population 
Attack Warning; Public Health, Safety, and Maintenance of Law and Order; 
and Public Welfare and Maintenance of National Economic Posture. Each 
subcategory has its own criteria. Criteria are also shown for the 
Emergency NSEP category, which has no sub-categories.
    (2) Priority levels of ``1,'' ``2,'' ``3,'' ``4,'' and ``5'' may be 
assigned for provisioning and/or restoration of Essential NSEP 
telecommunication services. However, for Emergency NSEP 
telecommunications services, a priority level ``E'' is assigned for 
provisioning. A restoration priority level from ``1'' through ``5'' may 
be assigned if an Emergency NSEP service also qualifies for such a 
restoration priority level under the Essential NSEP category.
    (3) The NSEP TSP System allows the assignment of priority levels to 
any NSEP telecommunications service across three time periods, or stress 
conditions: Peacetime/Crisis/Mobilization, Attack/War, and Post-Attack/
Recovery. Priority levels will normally be assigned only for the first 
time period. These assigned priority levels will apply through the onset 
of any attack, but it is expected that they would later be revised by 
surviving authorized telecommunication resource managers within the 
Executive Office of the President based upon specific facts and 
circumstances arising during the Attack/War and Post-Attack/Recovery 
time periods.
    (4) Service users may, for their own internal use, assign 
subpriorities to their services assigned priority levels. Receipt of and 
response to any such subpriorities is optional for service vendors.
    (5) The following paragraphs provide a detailed explanation of the 
categories, subcategories, criteria, and priority level assignments, 
beginning with the Emergency NSEP category.
    b. Emergency NSEP. Telecommunications services in the Emergency NSEP 
category are those new services so critical as to be required to be 
provisioned at the earliest possible time, without regard to the costs 
of obtaining them.
    (1) Criteria. To qualify under the Emergency NSEP category, the 
service must meet criteria directly supporting or resulting from at 
least one of the following NSEP functions:
    (a) Federal government activity responding to a Presidentially 
declared disaster or emergency as defined in the Disaster Relief Act (42 
U.S.C. 5122).
    (b) State or local government activity responding to a 
Presidentially declared disaster or emergency.
    (c) Response to a state of crisis declared by the National Command 
Authorities (e.g., exercise of Presidential war emergency powers under 
section 706 of the Communications Act.)
    (d) Efforts to protect endangered U.S. personnel or property.
    (e) Response to an enemy or terrorist action, civil disturbance, 
natural disaster, or any other unpredictable occurrence that has damaged 
facilities whose uninterrupted operation is critical to NSEP or the 
management of other ongoing crises.
    (f) Certification by the head or director of a Federal agency, 
commander of a unified/specified command, chief of a military service, 
or commander of a major military command, that the telecommunications 
service is so critical to protection of life and property or to NSEP 
that it must be provided immediately.
    (g) A request from an official authorized pursuant to the Foreign 
Intelligence Surveillance Act (50 U.S.C. 1801 et seq. and 18 U.S.C. 
2511, 2518, 2519).
    (2) Priority Level Assignment.
    (a) Services qualifying under the Emergency NSEP category are 
assigned priority level ``E'' for provisioning.
    (b) After 30 days, assignments of provisioning priority level ``E'' 
for Emergency NSEP services are automatically revoked unless extended 
for another 30-day period. A notice

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of any such revocation will be sent to service vendors.
    (c) For restoration, Emergency NSEP services may be assigned 
priority levels under the provisions applicable to Essential NSEP 
services (see section 12(c)). Emergency NSEP services not otherwise 
qualifying for restoration priority level assignment as Essential NSEP 
may be assigned a restoration priority level ``5'' for a 30-day period. 
Such 30-day restoration priority level assignments will be revoked 
automatically unless extended for another 30-day period. A notice of any 
such revocation will be sent to service vendors.
    c. Essential NSEP. Telecommunication services in the Essential NSEP 
category are those required to be provisioned by due dates specified by 
service users, or restored promptly, normally without regard to 
associated overtime or expediting costs. They may be assigned priority 
level of ``1,'' ``2,'' ``3,'' ``4,'' or ``5'' for both provisioning and 
restoration, depending upon the nature and urgency of the supported 
function, the impact of lack of service or of service interruption upon 
the supported function, and, for priority access to public switched 
services, the user's level of responsibility. Priority level assignments 
will be valid for no more than three years unless revalidated. To be 
categorized as Essential NSEP, a telecommunications service must qualify 
under one of the four following subcategories: National Security 
Leadership; National Security Posture and U.S. Population Attack 
Warning; Public Health, Safety and Maintenance of Law and Order; or 
Public Welfare and Maintenance of National Economic Posture. (Note.--
Under emergency circumstances, Essential NSEP telecommunication services 
may be recategorized as Emergency NSEP and assigned a priority level 
``E'' for provisioning.)
    (1) National security leadership. This subcategory will be strictly 
limited to only those telecommunication services essential to national 
survival if nuclear attack threatens or occurs, and critical orderwire 
and control services necessary to ensure the rapid and efficient 
provisioning or restoration of other NSEP telecommunication services. 
Services in this subcategory are those for which a service interruption 
of even a few minutes would have serious adverse impact upon the 
supported NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must be 
at least one of the following:
    (i) Critical orderwire, or control service, supporting other NSEP 
functions.
    (ii) Presidential communications service critical to continuity of 
government and national leadership during crisis situations.
    (iii) National Command Authority communications service for military 
command and control critical to national survival.
    (iv) Intelligence communications service critical to warning of 
potentially catastrophic attack.
    (v) Communications service supporting the conduct of diplomatic 
negotiations critical to arresting or limiting hostilities.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority level ``1'' for provisioning and 
restoration during the Peace/Crisis/Mobilization time period.
    (2) National security posture and U.S. population attack warning. 
This subcategory covers those minimum additional telecommunication 
services essential to maintaining an optimum defense, diplomatic, or 
continuity-of-government postures before, during, and after crises 
situations. Such situations are those ranging from national emergencies 
to international crises, including nuclear attack. Services in this 
subcategory are those for which a service interruption ranging from a 
few minutes to one day would have serious adverse impact upon the 
supported NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Threat assessment and attack warning.
    (ii) Conduct of diplomacy.
    (iii) Collection, processing, and dissemination of intelligence.
    (iv) Command and control of military forces.
    (v) Military mobilization.
    (vi) Continuity of Federal government before, during, and after 
crises situations.
    (vii) Continuity of state and local government functions supporting 
the Federal government during and after national emergencies.
    (viii) Recovery of critical national functions after crises 
situations.
    (ix) National space operations.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority level ``2,'' ``3,'' ``4,'' or ``5'' for 
provisioning and restoration during Peacetime/Crisis/Mobilization.
    (3) Public health, safety, and maintenance of law and order. This 
subcategory covers the minimum number of telecommunication services 
necessary for giving civil alert to the U.S. population and maintaining 
law and order and the health and safety of the U.S. population in times 
of any national, regional, or serious local emergency. These services 
are those for which a service interruption ranging from a few minutes to 
one day would have serious adverse impact upon the supported NSEP 
functions.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Population warning (other than attack warning).
    (ii) Law enforcement.

[[Page 222]]

    (iii) Continuity of critical state and local government functions 
(other than support of the Federal government during and after national 
emergencies).
    (vi) Hospitals and distributions of medical supplies.
    (v) Critical logistic functions and public utility services.
    (vi) Civil air traffic control.
    (vii) Military assistance to civil authorities.
    (viii) Defense and protection of critical industrial facilities.
    (ix) Critical weather services.
    (x) Transportation to accomplish the foregoing NSEP functions.
    (b) Priority level assignment. Service under this subcategory will 
normally be assigned priority levels ``3,'' ``4,'' or ``5'' for 
provisioning and restoration during Peacetime/Crisis/Mobilization.
    (4) Public welfare and maintenance of national economic posture. 
This subcategory covers the minimum number of telecommunications 
services necessary for maintaining the public welfare and national 
economic posture during any national or regional emergency. These 
services are those for which a service interruption ranging from a few 
minutes to one day would have serious adverse impact upon the supported 
NSEP function.
    (a) Criteria. To qualify under this subcategory, a service must 
support at least one of the following NSEP functions:
    (i) Distribution of food and other essential supplies.
    (ii) Maintenance of national monetary, credit, and financial 
systems.
    (iii) Maintenance of price, wage, rent, and salary stabilization, 
and consumer rationing programs.
    (iv) Control of production and distribution of strategic materials 
and energy supplies.
    (v) Prevention and control of environmental hazards or damage.
    (vi) Transportation to accomplish the foregoing NSEP functions.
    (b) Priority level assignment. Services under this subcategory will 
normally be assigned priority levels ``4'' or ``5'' for provisioning and 
restoration during Peacetime/Crisis/Mobilization.
    d. Limitations. Priority levels will be assigned only to the minimum 
number of telecommunication services required to support an NSEP 
function. Priority levels will not normally be assigned to backup 
services on a continuing basis, absent additional justification, e.g., a 
service user specifies a requirement for physically diverse routing or 
contracts for additional continuity-of-service features. The Executive 
Office of the President may also establish limitations upon the relative 
numbers of services which may be assigned any restoration priority 
level. These limitations will not take precedence over laws or executive 
orders. Such limitations shall not be exceeded absent waiver by the 
Executive Office of the President.
    e. Non-NSEP services. Telecommunication services in the non-NSEP 
category will be those which do not meet the criteria for either 
Emergency NSEP or Essential NSEP.

[ 53 FR 47536 , Nov. 23, 1988;  54 FR 152 , Jan. 4, 1989;  54 FR 1471 , Jan. 
13, 1989]