It's just frosted mylar (preferably frosted both sides). Art stores typically sell it in large individual sheets which can be cut down. Duralar is a common brand. 5-mil thickness sheets will prove more durable than 3 mil. But to get the ridiculous degree of diffusion illustrated in that article, would need an additional layer of clear Plexiglas in between, or else a cutout of something like matboard to act as a spacer (as shown in their schematic).
The shown method is rather primitive, since no punch and register alignment gear is involved, but is at least a starting point.
Making dupes was entirely different, since that would have been done emulsion to emulsion, with the frosted mylar either used for a preliminary unsharp contrast masking step, or used between the contact frame glass and backside of the original image for sake of inhibiting Newton rings. Lith film was sometimes used for pre-masking just the specular highlights. The old Kodak Graphics Arts Guides describe all these things.