Text

Forwards Comments & Summary of Conclusions on ASLB Decision Re Clarance Rule
	ML19254E679
Person / Time
Issue date:	07/16/1979
From:	Shapar H; NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
To:	Gilinsky V, Hendrie J, Kennedy R; NRC COMMISSION (OCM)
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l JUL 161379 l

fEEORANClli FOR:

Chaiman Hendrie i

Cemissioner Gilinsky l

Cc:Tr::f ssioner Kennedy Cormiissioner Bradford i

Connissioner Ahearne

[

l FROM:

Howard K. Shapar Executive Legal Director I

THRU:

' Lee V. Gossick '7sli;ns:M ~,,^ m Executive Of rector for Operations h

SUBJECT:

CLEARA; ICE RLLE PROCEEDI?is The Ccmission met on June 5,1979, to discuss the report of the Hearing I

. Board in the rulemaking proceeding concerning clearances for persons with access to or control over special nuclear material. The Hearing Scard in its report raised several questions ccacerning the need for a clearance rule, the NRC's legal authority, ar.d the alternatives considered by the Staff.

In a June 12, 1979, crorandia to the General Counsel and the Executive Director for Operations, the Secretary of the Comission requested that the Executive Legal Director provide a legal analysis whether t!RC, in j

establishing a clearance program under section 151 i. of the Atomic Energy Act, is required to adopt the basic standards and pmcedures established by j

the Secretary of Energy. The attached comments respond to the Secretary's cemorandt:1 and address these legal questions. These cements have been coordinated with the Offices of Huclear Material Safecy and Safeguards, Nuclear Reactor. Regulation, and Standards Develctnent and, insofar as policy matters are concerned, reflect the views of these offices. The other macters

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recuested in the memorandum, i.e., an opinion en alternative clearance progrcas

-and a draft fuel cycle clearance rdle, will be for.vardec separately.

i l

Howard K. Shapar i

Executive Legal Directcr

Enclosure:

i Staff Ccmnts on Hearing Board's Decision

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1261 127 7911020

STAFF CCM'1ENTS ON THE ACCESS HEARING 80ARD'S DECISION The Hearing Board in the access rulemaking prcceeding issued its Report in April 1979.

The Report raised questions concerning the need for the rule, the NRC's legal authority in relation to the Secretary of Energy, and the alternatives considered by the NRC Staff.

These comments address the above areas of concern and include, in particular, a legal analysis of the question whether the Commission is required to adopt the basic standards and proce-dures established by the Department of Energy in establishing a clearance program under section 161i.

of the Atomic Er.ergy Act ("Act").

SUMMARY

OF CONCLUSIONS As set forth in more detail below, the Staff believe. that the Hearing Scard in its Report erred in indicating that the Staff had seme burden of proving the need for an access clearance rule, and in failing to reccgnize that the Commission had already postulated an " insider" safeguards threat that could serve as a basis for the rule. The Staff was correct in its belief that in ordering that a hearing be held cn the pecposed rule, the Ccemissica did not intend that the Staff " reinvent the wheel" by examining jh novo the nature t

of the safeguards threat and the need for some improved safeguards.

1261 128

. Further, the Staff believes that, while a substantial legal question exists, the better legal view on balance is that in establishing an access clearance program under section 1611. of the Atcmic Energy Act, the NRC is not legally compelled to follow basic standards or procedures prcmulgated by 00E.1/

f.ccordingly, the hearing record contains substantial infomation regarding alternatives to an access clearance program, and assuming that an access clearance program is implemented, the relevance of the present criteria for ti;e information access program to this materials access program.

However, putting the legal question regarding NRC's independent authority aside, there are substantial policy reasons why NRC's and DOE's clearance programs should be reasonably similar.

If inis legal conclusion is based upon a careful reexamination of t Rectganization Act and its legislative history.

The legal pasition on this matter has evolved since SECY-76-503 (October 7,1976) stated tha t:

"The ERDA Administrator has the authority to establish the basic standards and procedures respecting the national secur-ity relative to personnel security programs under sectica 161i of the Atcmic Energy Act of 1954, as amended (see Senate Report 93-980 Enercy Peorcaniza ticn Act of 1974), p. 84."

See also Staff direct testimony at 19.

However, later during the hearing when the Soard pursued this legal issue, the Staff continued with that position as the better legal view but stated that the position was not free from doubt (Tr. 530-533):

%e think there is a substantial legal question as to whether we do have the authority to establish different criterii."

(Tr. 136)

"that is not to say the legislative history is the law."

(Tr.531)

"Therefore, it is cur legal position that there would be a substantial ques ticn if we went out on our cwn."

(Tr. 531)

See also, Staff's concluding statement at 22.

1261 129

.. Need for a Rule This rulemaking proceeding has had an cut-of-the-ordinary history.

The Commissicn formally raised the matter of possible clearances for persons with access to or control over special nuclear material under section 161i.

of the Act in a notice of proposed rulemaking which invited interested men-bers of the public to submit written comments. This action followed receipt and evaluaticn by the Comission of the analyses and recccmendations of the Staff on the matter. Af ter numercus and forceful ccaments were received the Commission decided to hold a public hearing:

"In light of the interest evidenced by the public in this pro-ceeding, the Comission has decided to hold an informal public hearing cn the proposed regulations." 42 Fed. Rea. 647C3 (December 28,19T7).

Accordingly the Comission issued a Notice of Hearing in the rulemaking proceeding in Occcmber 1977.

However, at this time the Cccaission had already established an " insider" threat as a basis for formulating detailed safeguards requirements.

Such an " insider" threat was postulated for reac-tors in 10 CFR 5 73.55, prcrulgated in final fem scme ten months before

'2l issuance of the Notice of Hearing in this prcceeding:

"The licensee sSall establish and maintain an ensite physical protecticn system and security organiza tion which will provide protection with high assurance against successful indcstrial sabotage by both of the folicwing:

"(2) An internal threat of an insider, including an employee (in any pcsition)."

1/

42 Fed. Rec.10836 (February 24,1977).

1261 130

. The necessary relation between a postulated " insider" threat and the clear-ance rule proceeding was recognized at the outset of the rulemaking proceed-ing. As the Comission put it in the notice initiating the notice-and-comment phase of this rulemaking:

"These regulations are being prepared to utilize a personnel security program as a measure to protect against those employed in the affected nuclear activities who might conspire to steal or divert special nuclear material or conduct sabotage which would endanger the public by exposure to radiation.

Of course, a clearance program itself does not entirely solve the problem of the ' insider' bu t, in the opinion of the Comission, experience has shown that such prograas do substantially reduce the risk of such conspiracies. Moreover, the proposed program is one of several elements in the Comission's overall safeguards program which together protect against threats, both internal and external." 42 Fed. Rea.14880 (March 17,1977).

Thus, from the very beginning, the existence of an " insider" threat has rea-sonably been taken as "a given by the Staff for the purposes of this proceeding.

Hcwever, in its Report the Board repeatedly emphasized the Board's conception of its task as including an examination into the questica whether there exists a " threat" which would justify any clearance rule at all (and, if so, what the nature of that threat is). / It is apparent frca the way in which 3_/

Ine Board's Report includes these statements:

"the rule as proposed rests en the unsupported assertion of the Staff that a serious risk to the defense and security of the Nation er a significant threat to the health and safety of the generai public exists."

(Report 32)

"the question of whether or not a rule of any sort is needed

' depends upon whether the Staff has produced evidence to shcw' a significant risk exists."

(Report 37)

"the Staff assertien of a sericus risk to the ccamon defense and security of the nation cr of a significant threat to the (Continued) 1261 13I

, this rulemaking proceeding developed that the Board failed to properly appreciate the scope of the proceeding and to recognize that certain matters, including in particular the existence of an " insider" threat that could be used to justify a clearance rule, had been previously decided by the Ccmmis-sion. We believe that the Staff was warranted in relying on this " insider" threat as justifying the need for some clearance or similar prcgram to augment present safeguards requirements, and in not " reinventing the wheel" in thi; proceeding by reexamining de novo the nature of the safeguards

" threat".

Moreover, we believe that in insisting that the Staff " prove" the need for some clearance rule, the Board misconceived the role of the Staff in the

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(Continued) health and safety of the general public, as a consequence of an act of sabotage or theft at a nuclear power plant, is not supported by any factual submission in the record."

(Report 38)

"no dccumentation supporting [ assertions by the Staff that sabotaging a reactor could result in extensive less of life and prvperty] has been offered by the record" and "when the Scard requested specifics as to what the consequences would be from a maximum radiolcgical sabotage incident, the Staff did not provide any." (Report 39)

"In the absence of [ specific information on the probability of a successful thef t or sabotage attempt] the need for the proposed rule... cannot be established. (Report 10)

"the Staff has failed in its obligation to present clear information as to the severity of consequences frca successful theft or sabotage of special nuclear material at a nuclear reactor." (Report 4C al) 1261 0 2

. proceeding.O The December,1977, Notice of Hearing in this rulemaking proceeding made clear that the proceeding was to be in essence an infor-al one, and stated that the Board:

"without rendering any decision or making any recommendation, will forward the transcript of the hearing to the Commission together with an identificaticn of the major issues raised at the hearing." 42 Fed. Reg. 64704 (December 23,1977).

Before the Notice of Hearing has been issued, the Comissicn had before it Staff analyses and reccmmendations which, in sum, informed the Commissica of all the Staff knew regarding the pros and cons of the proposed rule.

Nothing in the Notice of Hearing operated to divest the Comissicn of this information.

Since the Ccmission had before it all the Staff views,N since the hearing was to be informal and was never intended to be the exclusive basis for a Commissicn decision, and since the Scard was merely to fonvard the record of hearing to the Comission for decision, the Staff had no reason to believe that it had some " case" to prove or scoe evidentiary burden to bear.

It is true that, on the day before the final statements of the participants were due, the Comission requested recommendations frca the Scard as to whether a clear preponderance of tne information in the record favored adcption of the rule.

Mcwever, in its request the Commission made it clear tha t the new 4_/

See quotatiens frca Sc;rd's Report, note ' _suora. While the Ecard's state-ments, taken in sum, appear to say that cn this record it cannot be determined whether or not a clearance rule of any sort is needed, at page 34 of its Report the Board nevertheless reccamended that the Ccamis-sion issue a rule " utilizing the screening alternatives that utilities currently employ.

y There were several views on the issues involving this prcceeding.

For example, in SECY 75-508 it was noted that ELD did not believe that the necessity of a SNM access authorization program for light water reactor plants have been sufficiently demonstrated.

1261.133

. responsibility assigned to the Board did not alter the informal nature of lieve that this the proceeding, and the Staff had been given no rea;on to change in the role of the Board signified also some change in the role of the Staff, indeed, such a late change in the rules of the proceeding would have been unreasonable, since at that late date the participants had long since ccmpleted their evidentiary presentations to the Board.

It is unclear to us how the Board could have gone so far astray in character-izing the role of the Staff--perhaps the Board had in mind other rulemaking proceedings, such as the ECCS proceeding when the Staff did assume the role of a staunch advocate of a firm Staff position.

But the result is an unfortunate Report which has the effect of confusing a genuine policy question--hew best to take account of an " insider" threat in formulating safeguards standards--

with a legal, procedural question.6/

6f The Boara furtner confused the issue by referrin9 to

" theft or sabotage" at reactors. The recard makes it clear that sabotace and not "thef t" is the concern at reactors.

(Staff's direct statement at 4 and concluding statement at 6, 7).

Therefore, the Staff did not address the consequences of "thef t" at a reactor.

Informaticn was pro-vided on the consequences of sabotage.

(TR 395, 497, 498, 512, 619)

As to the probabilities of sabotage occurring, the Staff stated in its concluding sta tement, at 6, that:

The prnbability of an act of radiological sabotage by an insider is presently considered unquantifiable.

The consequences of such sabotage are estimated (and maximun's determinsd) in the Reactor 5dfety Study, WASH-la00.

The Staff tes tified (Tr. 519) that the consequences of the worst case successful sabotage could probably be no more than that established for the worst accident postulated in WASH-1400.

The risk of sabotage actually occurring depends upon many unpredictable factors.

Statements have been made that the safe operating record and lack of a prior act of sabotage should serve as a data base to state that the risk and threat are not such as to justify (Continued) 1261 134 1

3 Staff's Lecal Analysis of the Guestion of '::hether the Comission is Reouired to Adont for Its Access Clearance Program the St3ndards of 00E Sections 161(b) and 161(i) cf the Atomic Energy Act of 1954, as amended, provide the Commission with general authority to promulgate safeguards recuirements.

However, the authority afforded by those sections was con-sidered by the Atomic Energy Commission as insufficient to adopt a clear-ance program which impacts on firIt amendment rights in light of Schneider v.

Smith, 390 U.S.17 (1968).E Section 161(i)(2) was amended in 1974 to pro-vide express authority for the instituticn by the NRC of an access authoriza-tion program wherein a persen's background would be reviewed prior to per-mitting the individual to be involved in certain activities at reactors and fuel cycle facilities.8/

Under section 161(i)(2) the Ccmmission is required to make the deternination granting access authorization.

The scope of the 161(i)(2) investigation for the access authorizaticn is described by statute as an individual's " character, 6/

(Continued) this proposal.

(Wisconsin Electric, Tr.173, written testimony of Duke Power, p. 9). The fact that no radiolcgical sabotage hs cccurred dces not m.aan that it will not occur.

It is neces-sary to presume that such an act cculd occur.

Thus, the access authorization program is necessary to assist the Comission in meeting its statutory responsibilities to orovide adequate assur-ance that such an act, with its serious consequence:, does not occur."

_7f See also S. Report 93-989 at 9 (1974) where the JC;E indicated that explicit statutory authority was necessary to assure the validity of the access prcgram.

The Privacy Act of 1974 also provides that absent express statutory authority or an individual's consent, an agency may not maintain records pertaining)to an individual's exercise of first amendment rights.

5 USC 552a(e (7).

8/

PL 93-377 (1974).

1261 135

_g_

associations and loyalty".E Section 161(i)(2) establishes the standard for granting access authorization as access not being inimical to the cccmon defense and security.

In congressional testimony prior to the enactment of this legislation, the Commission described the prcgrams that would be imple-mented, if the legislation passed, as the traditional Q and L clearance programs which were subject to the 10 CFR Part 10 criteria.10/ Indeed, sec-tion 161(i)(2) as implemented by ERDA (and now DOE) is a prcgram identical to the Q and L clearance programs based on 10 CFR Part 10.11/

The legal question here is whether this Commission is free to deviate frca the path of ERDA and ncw DOE in implementing a section 161(i)(2) material access program. This question arises because of the legislative history of the Energy Reorganization Act of 1974 (hereinaf ter Peorganization Act).

-9/

The effect of this statutory authority is to permit the collection of information concerning indivicuals' exercise of first amendment rights including beliefs and associations.

A full field Sackgrcund investiga-tion would be such an investiga:icn.

A background investigation may also obtain information abcut a person's past reliability and stability.

However, if the principal interest of an investigation is to determine a person's reliability and stability, infornation might be cbtained through psychological assessment.

Such an assessment, althcugh con-sidered by scme to be an invasion of privacy, would arguably not involve a first amendment tyce investigation since its fccus would be cn relia-bility and not a pe son's loyalty and associations.

Therefore, a reliability program cculd arguably be authorized under sections 161(b) and 161(i)(3) as well as 161(i)(2) of the Atenic Energy Act.

A further discussion of a reliability access program will be tha subje ct of the Staff's resconse to the Se:retary's June 12, 1979 request.

1_0/ AEC Cmnibus Legislation, Pearings before JCAE, 93rd. Cong. 2nd Sess. 55 (1974).

~~11/ 10 CFR Part 710 (1977).

Part 710 was modified to reflect the addition of access to 5%i.

1261 136

. The material access clearance program, to the extent it pertains to licensed activities, is a regulatory function.

Section 201(f) of the Reorganization Act transferred the licensing and related regulatory functions of the AEC to NRC.

Safeguard responsibilities were established for the newly created offices of Nuclear Material Safety and SafeguardsE and the office of Nuclear Reactor Regulation.13/ Thus, the Reorganization Act on its face vests with the Ccmmission sole authority to detennine the access program necessary and appropriate to protect the common defense and security with respect to licensed activities.

The statute on its face contains no general requirement for NRC to defer to 00E.b However the legislative history of the Reorganization Act may not be dis-missed.

The Supreme Court in Train v. Colorado PIRG, 426 US 1,10 (1976),

a case involving the Atomic Energy Act of 1954, as amended, and the Federal Water Pollution Control Act, found the Court of Appeals in error for excluding legislative history in discussing the meaning of the PdPCA notwithstanding a finding by that Ccurt that PJFCA is " plain and unambigucus" and tha t "the legislative intent is clearly manifested in the language of the statute

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M/ Secc1cn 203(o)(2) of the Reorganization Act.

13/ Section 204(b) of the Reorganizaticn Act.

B Section 2C4(b)(2)(3) states that certain safeguard resconsibilities involving contingency planning require " consultation and coordination" with ERDA ncw COE.

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. i ts el f... ". The Supreme Court dealt a blcw to the " plain meaning rule"15/

in stating:

"When aid to construction of the meaning of words, as used in the sta tute, is available, there certainly can be no ' rule or law' which forbids its use, however clear the words may appear on ' superficial examination'.

...In this case...the legislative history sheds ccasiderable light en the questions before the Cou rt. "

(ci taticns emi tted)

I_J_. a t 10.

The reports of both the House Committee on Government Cperations and the Senate Ccamittee on Government Operations, the Ccamittees which reported on the legislation that everfually became the Reorganizatico Act, indicated that as to section 161(i) of the Atomic Energy Act of 1954, as amended, "that the Administrator [of ERDA, now COE] shall establish the basic standards and procedures respecting the national security.16/

15/ The " plain meaning rule" is a rule of statutory construction which states that if the language of a statute is plain and unambigucus a Court cannot give the language a different neaning.

Su the rland Statutory Construction 46.01 (4th Ed.1972).

16/ H.Rpt.93-707, at 27 (1973); S. Rpt.93-980, a t SJ (1974).

See also similar references to secticns 145 and 186(c) which give the Ccmmissicn authority based upon ccamon defense and security.

But see, reference to section 109, an authority limited to common defense anc security, where a caveat concerning national security limitations was not placed on NRC.

However, section IC9 has since been amended to require certain consulta-tion in the area of the ccmmon defense and security, P.L. 9F-242 (1978).

The term " national securi ty" used by the draf ters of the legislative history is a term not found in the Atomic Energy Act.

That Act uses the term "ccamon defense and security".

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1-The House Report in reference to the AEC's safeguard responsibilities also stated that:

"ERDA also will assume AEC's basic responsibility for security.

This certains to the safeauardina of special nuclear material acainst diversion frca Desceful to weaoons uses, to declassifica-tien activities and tne safeguarding of restricted data, and to other security aspec97pf the provisions of the Atomic Energy Act of 1954, as amended."-

The conference report further " clarifies" legislative intent by stating "all matters related to the ccamon defense and security, as that terms [ sic] is used in the Atomic Energy Act of 1954, as amended," is the responsibility of the A'ssistant Administrator for National Security [of ERDA].E These legislative materials strcngly suggest that the drafters of the legislation had in mind a more limited transfer of authority from AEC to NRC in the common defense and security area than the actual language of the legislation would permit.

Hcwever, other legislative history makes this less clear.

Senator Pastore, the then Chaiman of the JCAE, during the Senate debates on the reorganizaticn legislatien scught a clarification frca Senator Ribicoff, the Chairman of the Government Operations Cemittee and ficor manager of the legislation, as to the effects of the reorganizaticn co the ccmmon defense and res tricted da ta.

Mr. Pastore stated:

1_7f H. Rpt.93-707 a t 15-16 (emphasis added).

18/ Conference Rp c., H. Rpt. 93-1445, a t 27 (1974).

1261 139

. "I would hope that basic policy must be established by one agency and because AEC will be separated into two agencies that it would be rather dangerous if we bugan to split up this respcnsibility for restricted data and the cccmon defense and security, which could injure cur security and sensitive features in the Atomic Energy Act.

Basic policy for all such respcnsibility p. ovided for in that act must repose in ERDA.

clarify what the intent is of the legislaticn."1gy or less I hope that the Senator from Connecticut will mo-Senator Ribicoff responded:

"Mr. President, the distinguished Senator from Rhode Island is correct in his interpretation that ERDA has undivided respon-sibility for settling basic policy relating to restricted data and the ccamon defense and security.

No one kncus better than the Senate cc-Chairman cf the Joint Ccanittee nn Atcaic Energy that this responsibility cannot possibly be shared by two agencies without sericusly undermining these concepts as provided in the Atcaic Energy Act.

I would like to make clear that it is not the intent of this bill to divide responsibilities between ERDA acid NSLC [ Nuclear Safety and Licensing Ccr:missicn, the title given to URC in the Senate legislation] in the crucial areas of restricted data and the ccmmon defense and security. The bill i:self, as well as the reDorts receats acain and acain that NSLC's autnci ity extenas only to the licensec sector and r.ot to orocrans ncw beina carried out by the develcoment s1ce of the AEC, wnich will be transferred to ERUA.

The only area that I can see ERDA and MSLC having a shared respon-sibility with respect to security pertains to safeguards and the obvious need for cccceration and coordinaticn betveen the two agencies in develocing continger.cy plans for dealing with threats and actual terrorist activities relating to nuclear facilities and materials.

Obviousiv, as the licensed nuclear industry exoands tn the ccmina years, NSLC will want to draw ucen the exoertise develocea over tne cast 20 vears Sv tne aeveloccent side of AEC in relation to safecuarcs. as cravided in sec_-

tion 2C4( b)(4) of the Jiil.

But this in no wav nives NSLC any kind of Turisdicticn over the We3 cons crocran or any other develocnental activities transferrec to ERCA as oroviced in sec tion 204( c).

19/ Congressional Record S.15050 (August 15,1974),6 Leg. His tory Energy Reorganization Act 4159 (1974),

j}g}

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14 I am as ccncerned as is the distinguished Senator frca Rhcde Island that the proposed reorganization not in any way bifurcate the basic respcnsibilities relating to restricted data and the ccmaan defense and security which are clearly transferred to ERDA.

I cceend the Senator for raising this important issue and deeply appreciate his continuing ccncern for the safety and the security of the Naticn as we proceed to develcp nuclear power for peaceful pu rpos as.

Mr. Pas tore, I want to thank the Senator.

I believe that straightens i t cu t. "

Id. (enphasis added)

A careful reading of this collcquy suggests that Senator Ribicoff did not subscribe to the narrc.i NRC role in the ccacn dafense and security area arguably called for in the House and Senate reports and the ccnference report.

According to Senator Ribicof f (and, inferentially, Senator Pastore),

the concern with regard to an independent NRC role in the cc ton defense and security area lies not yith the licensed sector, but with the possibility that NRC might by regulation interfere with ERDA's (ncw COE's) weapons and related national security programs.

This view of the Reorganication Act in no way detracts frcm the NRC's authority in this rulemaking prcceeding, which specifically deals only with the licensed sector and in no way applies to DOE facilities.

This colloquy between Senators Ribicoff and Pasture is especially significant because it becar.e the subject four acnths later of an important series of questions during the ccnfirmaticn hearings of the initial Ccomissioners' ice 1261 14I

. NRC.22/ The ncminated Comnissioners were asked essentially the following question:

"Beyond the coordinaticn and censultation between ERDA and NRC cn safeguards centingency planning, as specifically provided by the Act, what sort of relationship shculd there be betveen ERDA and NRC in the safety and safeguards areas which is consistent with the independence of each agency? For exanple, shpyld cne agency have veto pcwer ever the policies of the other"ti' Mr. Anders respcoded:

" Insofar as the safcguards area is concerned, it seems to me that the sort of relationshio that should exist betweon EPOA and NRC is reflected in tne colloauv betveen Sena tors Pas tore and Ribicoff

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set forth en once S. fSO50 of tne Ccnaressionai Hecccc of Aucus t 15.

1974 Insofar as tqe satety area is conconcerned, the relaticnship will, of course, be different since there will be no sharing of responsibility and each agency will be independently responsible for sharing the requisite protcction of the public with regard to its cwn activi ty.

In general one agency shculd not have a veto pcwer over the powers of the other.

However, certain ERDA facilities are subject to power. jg by NRC, and to that extent NRC has a " veto" or licensing licensi j

Mr. Rcwden responded:

"Each agency should be in a position to exercise authority in the sphere of its respective responsibilities.

An act descriotion of the framework of the relationshio between the cao new acencies in 20/ ine recora of the confirnation hearing is not cart of the legislative history of the Enargy Reorganiza tion Act of 1974, however, it is relevant to the issues here because it shcws the intent of the Ccm-missioners at a ti,ne when the legisla tion was fresh and the responses were given to the very Senators who were the Chairman of Ccanittees involved in the reorganization legislation.

21/ Ncminees to the Nuclear Regulatory Ccmmissica, Hearings before the JCAE, 93rd. Cong., 2nd Sess. 10 (1975).

22/

Id.

(emphasis added).

1261 142

. the safenuards area is set farth in the floor discussion between Senators m icre anc Rio:ccif cn nace

5. 15U60 ci the Can:ressional Reco7J of Augus t 10 l'N 4 As resDeCts tne safesy 3rea, eacn agency generally has independent responsibility in regard to the conduct of its cwn activities and one agency shculd not have veto pcwer over the policies of the other.

Section 202 of the Energy of ERCA facilities subject to licensing by.WC." gain categories Reorganiza tion Act of 19M dces, hcwever, nake c In summary, scme legislative history suggests that NRC must defer to DOE regarding basic standards and peccedures fcr protecting the cccmon defense and security, while other legislati/e history suggests that this deferential role only extends to NRC acticns as they might affect DOE's weapons and related national security programs.

Given the early views of the NRC Ccm-raissicnars en this catter quoted above, and given that cnly the latter legislative histcry a censistent with the actual language of the statute, the choice must be in favor of an interpretaticn of the Act as essenticily preserving NRC's independent legal authority. Thus, while the contrary legislative history gives rise to a substantia, legal question, the better legal view cn balance is that NRC is not legally cccpelled to follcw basic DOE standards and criteria relating to the ccron defense and security in this access ruiemakir.g pecceeding.

Of ccurse, this cannet be the end of the inquiry, for what the law may not ccmpel tray nevertheless be ccmpelling for other policy reascns.

There are sound policy reasons why the clearance programs of DCE and NRC should be M/

Id. at 39 (empnasis added),

1261 143

. reascnably consistent.

This need for consistency is cost clear (and argusbly mandated by the Ribicof f-Pastcre colloquy quoted abcve) in the case of so-called " mixed" facilitics where both DOE and ilRC have safeguards duties over closely related activities. To be sure the activities of tiRC and DCE are in..any ways different due to differing enrichment levels, materials, types of reactors, etc., resulting in differing degraes of safeguards that might be required in the interest of the ccmmon defense and security.

Cu t, still, there is a lot to ' e said in f avor of an NRC access clearance progra'i c

that does not grant access to the sre person who has been denied access by DOE, and does not restrict access to the sre types of mterials to which COE allows free access. S!oreover, as indicated above, in requesting the legislative authority for the access program the Ccmmission described the prcgram that would be. implemented if the legislation was adopted as the traditional Q and L clearance program.

The Alternatives Considered by NRC The hearing record contains substantial information regarding both alterna-tives to an access clearance program and tha appropriateness of the access criteria in 10 CFR Part 10 should an access clearance program be found necessary.

The record as a whole ir.dicates that t:1e Staf f approached the proceeding with the view that there was merit in examining alternatives.

1261 144

',8 -

Because the oral phase of this rulemaking pecceeding tras preceded by a notice and ccment pbace, various alternatives to a clearan:e program, most notably the use of psychological evaluaticns, were discussed in prior aritten submissions. The Staff's contribution was SECY 75-508 which discussed the varicus alternativcs and dwelt at sme length en full field backgrcund investigations and psycholcgical assessments.

This paper ms included in the testincay the Staff submitted at the outset of the oral phase of the prcceeding, as was the Staf f's " Enclosure D" which was titled, "tieed For and Efficacy of Psychological Assessment".

This submittal is quite comprehensive.

Board nember Frings described it, withcut dissent frca her colleagues, as "an excellent paper en the pros and cons of psychological assessment".b This belies the Scard's broad statements that "the record as it nca stands does not contain a reasoned basis for ccncluding that a clearance prcgram is superior to other alternatives:

(Report ag) and that the " Staff's pro-posal does not rest en principled evaluaticn of alternatives" (Report 62).

The record of the preceedir.g is replete with written and cral testimony, which as the Scard itself ackncwledged, "would lead cne to conclude that the Staff proposed the CCE security program because it had evaluated other alternatives and found the existing DOE program to be superior en the merits."

(Report 43)

,24/ Hearing Transcript at 51.

} 2()}

kk

... True, there is some ccnfusicn in the record regarding the nature of the Staff's evaluaticn of alterna tive access criteria.

(See testimony of NRC Staff witness Jones at TR 537).

However, this has nothing to do with alternatives to an access clearance program but deals rather with the acc!N criteria that might be employed should an access clearance prcgran be instituted.

Moreover, even as to alternative access criteria, the record shows that the Staff did not proceed on the basis of some simple assumption that the law compelled adherence to COE criteria.

The Staff's direct testimony (at pages 18-22) and the Staff's concluding statement (at pages 21-24) described the Staff's analysis of the criteria, discussed the question of the relevance of criteria for an infor a tion access program to a materials access program.

The Board (Report at 71-72) ackncwledged the Staff's effort to develop different criteria.

Finally, the Staff wishes to point cut that the Board's cwn evaluation of al ternative programs was flawed.

The Board adopted the proper approach in stating as a principle that the alternative with the least impact on First Amendment and privacy rights that wculd still achieve the purp. : of the rule shculd be adopted (Report 33).

Yet there is no analysis in the Repcrt which shows hcw the 3eard's recccmended program, which includes backgrcund inves tigations, psycholcgical screening, and continuous observa tion, ':as any less impact en these rights than the Staff's reccmmendation, which included cnly background investigations (See Report 33).

1261 146

pp " t %,<,

UNITED STATES

[

h N UC L E AR R EG U L ATO R Y CC.~.~,..ilSSiON

., %.,. 7.& _

WASH:NG TO N. D. C. 2C' E 1

9, ;>w.1 f

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JUL C1 1973 MEMORANDUM FOR:

Chairman !!endrie Commissioner Gilinsky Commissioner Kennedy Commissioner Bradford Commissioner Ahearne FROM:

IIoward K. Shapar Executive Legal Director TliRU:

j Lee V Gosaick

-y e n1 w n

,.1.,...,.. G. e...3 Execut' <e Director for Operations i

SUBJECT:

SECY 79-319; RESPONSE TO CC.YMISSION REQUESTS IN CT ZAPP:CE RULE PROCEEDING The Secretary's memorandum of June 12, 1979 requested t hat the Staf f provide an opinion on alternative clearnce orec, rams based on authorit) other : 'an t

section 161i(2) of t he Act and a discussion of reliability standards. Section 161i(2) authorizes the Commi: sion t o investi;; ate certain individuals' c ha rac t e r,

loyalt y, and ar =ociations and to grant access to such individuals pro 2ded such accesc would not be inimical to the common defense and security The other aut horities con adered in preparir.; :ne _nclosed re;ponse (Enclos, re A) are sections 161b and 161i(3) cf t he Act which pro'.ide general authorit) for u safe uard.oroo. ram. The alternative pro rams con.sidered are basec upon the a

c o

views of tI e Office of Standards Des elopment, Office of Nuclear Reactor Regulation and Office of Nuclear Material Safet> and Safegtards.

In ~ addition the Secretary's memorandum r+: quested the Staff to prepare a draft fuel cycle clearance rule. Enclosure B provides a clearance rule for fuel cycle f acilities and addresses the concerns of Cemmissioner Ahearne.

i261 147 Cont act:

qh

- 3r p I

ii a

R. L. Fonner m

a nu,i 492 c 9.,

o

~19 i DO 4 0 l

. 3 The enclosures have been coordinated vn:h the Offices of liuclear ? f.terial S.:fety 3

and Safeguard:, 27uelear Reactor Regid ati.-n. 5:2ndarda Dev:lonment and I

Adminis: ration, (Divbion of Security) and, inse far as policy o 4::ars are ccucerned, reflect tha views of thase offices.

I i

4 1

lioward K. Shapar E::ecu:ive Legal Director I

l

Enclosures:

A.

A1:crnative Accc;a Cler.re.nce Program s.

I B. Draft fuel cycle f acility claarance rule.

f I

s i

I l

1261

\\48

Enclosure A ALTEPNATI'!E ACCESS CLEARANCE PRO Z MS The cccess clearance program under propose 1eted. All others must ' ave access authcrizaticn after the 365 day implenentation date to be allcv.ed to work at affected jcbs. This draft rule differs frcm the rule propcsed in SECY 76-503 in this respect so as not to penalize existing industry erolcyees because of pcssible gevarnment processing delays, yet it still provides for having the desired safeguards benefits in place as early as possible. 3) ine original proposal con ainec, e-was wel en prior ,.o exis.ing m

n atC,/ eo-1n u
c GA0 requirements for report justificatica analysis. Such analysis is under.ey, but its corpletion is dependent upon Co.Tmission determir.ation of the form of the final rule. 4) In light of Co aission asproval of the Physical Protectica " Upgrade Rule," conforming changes to Part 73 references would be required for this draft if it were cocreved for publication.
5) Minor additional records and reporting requir a::ents.sould also be recuired for the draf t to bring it in cenfor7ance with updated investigative orccedures and recuirements and Proposed Part 25 arerdnents.
1261 157 6 Enclosure "3"
Title 10 - dnergy CHA?TER I - NUCLEAR REGULATORY CC' MISSION PART 11 - CRITERIA AND ?RCCEDURE5 FOR DETEF. MINING ACCESS TO CR CCNTROL OVER SPECIAL NUCLEAR MATEprAL PART 50 - DCMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIES PART 70 - DCMESTIC LICENSE OF SPECIAL NUCLEAR "ATERIAL AGENCY: U.S. Nuclear Ragulatory Commission. ACTION: Final Rule. SUFMARY: In March, 1977, the Cermission published for public commenc prcocsed amendments to establish criteria and procedures for determining eligibility for access to or control over special nuclea: material. As a result of public and staf f comments, the record of an informal Hearing, and the recommendations of the Hearing Board, the scope of the proposed amendments has been narrowed to include caly those fuel cycle f acilities and transportation activities who use, prccess, or store formula qur_ntities of special nuclear material. Light water reactors, non pcwe: reactors, and facilities possessing only irradiated special nuclear material subject to the exemption of 5 73.G(b) are not covered by these revised amendments. The Nuclear Regulatory Commission is now publishing these revised anendments in final forn. EFFECTIVE DATF.- (Effective 75 days after publication). FOR FURTHER INFOR"ATICN CCNTACT: W. B. Brown, Cffice of Standards Develop.r.ent, U.S. Nuclear Regulatory Cammissico, Washington, D.C. 20555 Phone: 301-443-5907). 1261 158 1 Enclosure "S"
$UPPLESENTAriY INFCEMATICN: Section 161i of the Atomic Energy Act of 1954, as amended, permit: the Nuclcar Regulatory Ccr.iaission to prescribe regula-tiens instituting a cle?rance program for those individuals who have access to or control ov9r special nuclear material. Specifically, the sectica provides that the Conmission : ray issue regulations ".. designating activ-ities involving quantities of special nuclear material which in the opinion of the Carmission are i'portant to the cocnon defense and security, that may be conducted only by persons whose character, associations and lcyalty shall have been investigated under standards and specifications estab-lished by the Cc n ission and as to whom the Cer;aission shall h:ve deter-mined that permitting ecch such person to conduct the activity will not be inimical to the common defense and security. Pursuant to this statutory authority, the Ccmaission is issuing reou-lations which wauld require certain individuals involved in the operation of licensed fuel reprccessing plants, in the licensed use, processing, or storage of certain quantities of special nuclear naterials, and in the transportation by the private sector of certain quantities of special nuclear material, to receiva authorizatica from the Ccmmission fcr access to or control over special nuclear matarial. Nuclear reactors licensed pursuant to 10 CFR Part 50^ and facilities possessing only irradiated special nuclear material subject to the exemption of s 73.5(b) are not covered by these amendments. At this time, the Cenmission is still con-sidering whether these requirements should be applied to pc.ser reactor facilitics. Additionally, acn power reactors and str age of fuel incident thereto, have been excluded frca the requirements of these amendments Except for the Fort St. Vrain facility. 1261 159 2 Encicsure "3"
pending ccapletion of a separate ongoing revicw of total safeguards requirements adequacy at such fccilities. 'dhen that assessment in cen-plete, consideration of access authorization requirements will be included in the evaluai.ica of overall safeguards upgrading which m;y be considered necessary for these facilities. Finally, facilities possessing for ula quantities of special nuclear natorial only in the form of irradiated special nuclear material subject to the exemption of i 73.G(b) are also excluded from thase requirements as tha Cccmission concludes that the risk of thef t or diversion of such meterial is minimal. This is con-sistent with other safeguards requiremants for irradiated special nuclear n1terial. These regulaticas utilize a personnel security program as a measure to protect acains t those employed in the af fected nuclear activities who might conspire to steal or divert special nuclear matarial or conduct sabotage which would endanger the public by exposura to radiation. Of course, a clearance program itself does not entirely solve the problem of the " insider," but, in the opinien of the Ccm. mission, experience has shovcn that such programs do substantially reduce the risk.
Moreover, the prorosed program is one of several elements in the Cc.nmission's cv2r-all safeguards pregram which together protect against threats, both internal and external.
Two levels of special nuclear material access authorization are estab-lished. The higher level, NRC-U, is based upon a full-field backgrcund investigation and will apply to (i) all individuals who require unescorted access to special nuclear material cr within vital areas, (ii) those jobs in which an individual alone or in conspiracy with another ir dividual 1261 160 3 Enc!csure '8"
who does not possess an NRC-U special nuclear material access authoriza-tica could act to steal or divert special nuclear material or to cc:ait sabotage, and (iii) drivers of actor vehicles and pilots of aircraf t transporting certain quantities of special nuclear rate ial and those who escort road, rail, air or sea shipnants of special nuclear. aterial. The lower level, NRC-R, is based upon a National Agency Check and will apply to all individuals who recuire unesccrted access to protected areas and who are not required to possess cn NRC-U special nuclear material access authorization. An imple.:entation schedule has been established to account for changed estimates of the tima required to process access authorizatiun applicatioas (180 days for an NRC "U" and 120 days for an NRC "R") and for the initial flow of applications. For jobs not requiring an amended security plan, affected individuals must have the recuired access authorization within 365 days of the effective date of the amend-ments. All others must have authoric.ation 365 days after having the amended security plan approved designating those jcbs wnich require access authorization. Excepted frcm the 365 day implementation in all cases are those who initially apply but have not received not.ification due to Commission processing tina. Both the National Agency Check and the full-field background investi-gation are conducted by the Office of Personnel Management. The National Agency Check consists of a check of files of the FBI (fingerprint and central files), Office of Personnel Management (Security-Investigative index), and a check of military records and records of other governo;ent agencies, as appropriate. The full-field background investigation con-sists of interviews of references, conducted by investigative agents of the Office of Personnel Management, in addition to the records check. 1261 161 4 Enclosure "3"
Cources of information developed in the course of the investigation are also interviewed. The full-field bcekground investi,ation conducted by t the Of fice of Personnel Managecent generally covers the 5 year period of the individual's adult life prior to the investigation. Licensees and license applicants wi_ll be required to naend their security plans by. identifying and describing jcbs at their facilities which require authorization. Affected irdividuals will be requireJ to obtain authorization according to the schedules set forth in the propos3d rule. Individuals who are newly hired or who changa jobs where the new jcb will require a naterial access authorization mus t obtain an authoriza-tion before beginning the job. l'uthorizatica will be updated every five years. The establishment of a material accass authorization program in the licensed nuclear industry will affect individuals who are not employed by any licensee or contractor of the Commissicn as well as licensee emplcyees. It is the Commission's intent to mininia both the impact on the rights of privacy and asscciation of individuals af fected, and the nuaber of individuals af fected, while providing an ef fective measure of protection against those who wculd seek employment with, or use their position in, the nuclear industry for purposes of theft or sabotage. In preparing these ragulations, among the matters consider 2d were the scope of investigations (e.g., whether a full-field backgrcund investigation should be required for all individuals), whicn job functions should require material access authorization (e.g., requira authorization only for " key" positions or adopt a gradad system with level of clearance determined by job), whether psychological assessment shculd be required, and the relation of the proposed program to current NRC and COE personnel security progr s. 1261 162 5 Enclosure "B"
The Ccmmission also corisidered the question of whether new criteria should be de'/ eloped against which a decision for authorizatico v.ould be made. In its considaration, the C mission has had before it both public co;r.ments, the record davaloped in an informal hearing, and the recormnda-tiens of the Hearing Boird. Tha present NRC security clearance criteria (10 CFR Part 10) were developed for access to classified information and, as such, not.all criteria may be equally significant for questier.s of access to special nuclear material, and sene may r.ot be perceived as relevant in specific cases. Also, there may be cases in which additional criteria, not now included in 10 CFR Part 10, would be more to the point. H wever, these criteria do corre: pond to the Fedc. el Government's general approach to personnel security, and specifically, they are presently us2d for CCE access authorization programs. Further.cre, the criteria are in the nature of guidelines to be used in a decision process characterized by comm.on sense judgments, rather than quantitative criteria.
Moreover, the Ccmmission is reluctant to devise a new set of criteria without evid:nce that such new criteria,,ould significantly improve upon these which presently exist.
The Cermi;sion nctes, however, that the Depart-ment of Energy is currently reviewing the criteria cpplicable tv access to Restricted Data and material and will review Commissico criteria in 10 CFR Part 10 in light of any revision made by the Cepartment of Energy in 10 CFR ' art 710. Henca, in light of the above, the C : mission is relying on the considerable expertise residing in the brsad experience of the Federal Governmcnt in the area of personnel security prcgrams by prcposing the use of the criteria contained in 10 CFR Part 10 as guide-lines in decidir.g cuestions of access to cr centrol over special nuclear material. 126i i63 6 Enclosure "B"
Pursuant to the Atonic Energy Act of 1954, as amanded, by the Energy Reorganization Act of 1974, and section 553 of title 5 of the L'nited States Code, notice is h. reby given that a r.ew 10 CFR Ch:pter 1, Part 11, and the following conforming amendments to 10 CFR Chrpter.1, Parts 50 and 70 are published as a document subject to codification. 1. A new Part 11 is added to read as follo'ss: Part 11 - CRITERIA AND ?o.0CEDURE5 FOR DETERMINING ELIGISILITY FOR ACCESS TO OR CCNTROL CVER SPECIAc NUCLEAR I'ATERIAL GENERAL PROVISlCNS 11.1 Purpose 11.3 Scope 11.5 Policy 11.7 Definitions REQUIRE.'JENTS FOR SPECIAL NUCLEAR "ATERIAL ACCESS AUTHORIZATION 11.11 Requirements at fixed sitas 11.13 Requiremants in transportatico 11.15 3,cplication for special nuclear material access authorization C d'-iiw."tli Twn w '~r o,,rr: ~ tr o:w : ;<:: rt 7-v. .c c,w i\\ v r r. r 'L ce r rs . i t L :u. i..a tm. ! ...iii.id m._ u.s its s MATERIAL ACCESS A'JiHORIZATION 11.21 Applicatico of the criteria AUTHORITY: Section 7, Pub. L. 93-377, SS 5 tat. 475; Section 151i, Pub. L. 83-703, 63 Stat. 948 (a2 U.S.C. 2201). GENERAL PROVISIONS 6 11.1 Purpose This part establishes the requi: 2ments for specisi nuclear material access authorization, anJ the criteria and precedures for resolving questions concerning the eligibility of individuals to receive special nuclear material access authori'atico for conduct of certain activities, 1261 164 7 Enclcsure '3
licensed or otherwise, which involve access to or control over special nuclear material. 9 11.3 Scope The requiremants, criteria, and procedures of this part apply to the establishment of and aligibility for special nuclear natorial access authorinttion for employees, certractors, consultants of, and acplicants for employment with, licensees or contractors of the Nuclear Regulatory Commission where such c::ployment, contract, service, or consultation involves any 3cb falling within the critaria of 39 11.11 cr 11.13 of this chapter. The requirements, criteria, and procedures of this part ara in addi-tion to and not in lieu of any requirements, criteria, or praeduras for access to or control over classificd special nuclear natc-ial. S 11.E Policy It is the policy of the Nuclear Regulatory Cccmissico to carry out its authority to establish and administer a persennel security program in the interests of the c:rrca dafance and security far the purpose of safeguarding special nuclear material and pr2 venting s: bot 3c2 w ich wculd endanger the public by exposura to radiation in a manner consisc.ent with traditional American concepts of justice. To this end, the Ccomission has established criteria far datermining eligibility for special nuclear material access authorization and will afford affected individuals the Opportunity for administrative review of questions concarning their eligibility for special nuc!cer material access authorization. / P 126i 103 8 Enclosure 3"
S 11.7 Definitions As used in this part: (a) Terms defined in Parts 10, 50, 70, and 73 of this chapter have the same. meaning when used in this part. (b) "Special nuclear natorial accqss authorizatien" m ns an adminis-trative determination that an individual (including a sentractor or con-sultant) who is e.T. ployed by or is an applicant fc>r eTpicymant with an affected Ccanission contractor, licensae of the Comission, or contractor of a licensee of the Cc mission may work at a job which af fords access to or control over special nuclear natorial and that paraitting the indi-vidual to work at that job would not be ini:nical to the common dafense and security. (c) "NRC 'U' special nuclear matarial access authorintion" means an adainistrative determiration based upon a national agency check and a full-field background investigation conducted cy the Office of Personnel Managenent that an individual in the course of employment is eligible to work at a jcb falling within the criteria of SS 11.11(a)(1) or 11.13. (d) "NRC 'R' special nuclear aaterial access authorization" means an administrative deternination based upon a national agency check that an individual in the coursa of empicyment is eligible to work at a jcb falling within the criterien of $ 11.11(a)(2). REQUIREMENTS FOR SPECIAL NUCLEAR j}6} } ()() MATERIAL ACCESS AUTHORIZATICN S 11.11 Requirenents at fixed sites (a) Each licensee wha after (90 days following publication in final form) uses, prccesses, o. stores farmula quantities of :pe:ial n':claar 9 Enclosure "B"
material (as defined in P1rt 73) subject to the physi.31 protection require-n2nts of 35 73.50 and 73.60 of Part 73 of this chapter shall identify a his f acility or plant (excluding hcwevar all non power reactor f acilities and storaga of fuel incident thereto and facilities nd plants in which the licensee possesses or usas only irra,diated special nuclear material subject to the exemption of $73.6(b) of Part 73) and describe to the Commission, by amendment to his security plan: (1) All jobs in which an. individual :ould steal or divert special nuclear material, or commit cabotage which would endanger the public by exposure to radiation, by working alone or in cooperation with an indivir al who does not possess an N.1C-U special nuclear material access authorization, or by directing or coercing any individual to assist in the theft, diversien, or sabotage. Such jobs include but are not limited to: (i) All positions in tne licensee's security force, (ii) Management positions with the authority to: (A) Direct the actions o.' men.bers of the security force or alter security procedures, or (B) Direct routine movements of special nuc aar material, or (C) Direct the rsutine status of vital equipment. (iii) All jobs which require unescorted access within ensite alarm stations. Ovf Ali jobs which require unescorted access
to special nuclear caterial or within vital areas.
1261 167 AThis does not alter the requirement for. methods to observa individuals within material access areas as stated in s 73.60(a)(7) af this chapter. 10 Enclosure "B"
(2) All jobs which require onescorted access within prctected areas and which do nat fell within the criterien v paragraph (a)(1) of this,ection. (b)(1) After (365 days follcwing Com.nission approval of the ar. ended security plan submitted in accordance with pcragraph (c) of this section) no individual.ay be peraitted to work at any Jcb detarained by tha Cccais-sicn tn fall within the criterien of paragraph (a)(1) of this s"ct;co without an NRC-U special nuclear material access authori2ntien, and no individual any be peraitted unescorted acccss to any prctccted arca at any site subject to this part without either an NRC-U or NRC-R special nuclear material access aJthorization. Individuals are excepted who were employed en the effective dato cf these cmsadments, who sub.itted ccmplete applicatiens in accordance with 511.15 of this part, and who have not been disapproved a d have not yet received notification of nporoved access authorization from the Commission. S 11.13 Rac "rements in transpcrtation (a) All individuals who after (365 days following publication in final form) transport, arrange for transport, driva motor vehicles in road shipments of special nuclear material, pilot aircraf t in air shipments of special nuclear naterial, act as monitors at transfer points, or escort road, rail, saa, or air shipments o'f special nuclear material subject to the appropriate physical protection requirements of ss 73.30, 73.31, 73.35 or 73.36 of this chapter shall have NRC-U special nuclear m2terial acce authorization. Individuals are excepted who were employed on the effective data of these anendments, who submitted cceplete applications in accordance with 511.15 of this part, and who have not been disapprr,ed and have not 1261 168 11 2cciosure "S"
yet received notification of approved access authorization from the Commission. (b) Licensees who (af ter 355 days af ter publicaticn in final form) transport or who deliver to a carrier for transport special nuclear material subject to the physical protection requirements of SS 73.30, 73.31, 73.35 or 73.36 of this chapter shall confirm and record prior to shipment the name and special nuclear aaterial access authorization nucber of all drivers, escorts, and monitors assigned to the shipment. Individuals are 2xcected who were employed on the ef fective date of these acendments, who submitted complete applications in accordance with 511.15 of this part, and who have not been disapproved and have not yet received notification of acproved access authorization from the Commission. S 11.15 Application for Special Nuclear Material Access Authorization (a) Application for special nucle-3r material access authorization, renewal, or change in level shall be filed by the employer on behalf of the applicant with the Director, Of fice of Administration, U.S. Nuclear Regulatory Commission, Washington, D. C. 20555.* Applications for affected individuals employed on the effective.date of these amendments shall be submitted within 60 days of the effective date or within 60 days of notification of Commission approval of the caended security plan. (b) Applications for special nuclear naterial access authorization shall be mace on forms supplied by the Ccamission including: (1) A Personnel Security Questiennaire (PSQ) completed by the individual. 1261 169 x Process timar er
al nuclear material access authorizations._an be expected to a w. s. - C0 days for NRC-U and 120 days for NRC-R.
9 12 Enclosure "B"
(2) Two standard fingerprint. cards with the individual's finger-prints (fingerprints acy be taken by a local police authority). (3) Authority to release information. (4) Security acknowledgment form. (5) Other ralated forms whero specified in acccmpanying NRC instructions. (6) A statenent by the empicyer, prospective employer, or con-tractor, identifying the job to be assigned to or assumed by the individual and the level of authorization needed, justi fied by appro-priate reference ta the licensee's security plan. (c) Special nuclear caterial access authorization shall expire 5 years following the date of issue. If centinued special nuclear naterial access authorization is required, an appiication for renewal shall be subaitted at laast 120 days prior to expiration date. Failure to make a timely application will result in expiration of special nuclear material access authorization. Special nuclear material access authorizatien for which a timely applicatico for renewal has been nade may be continued beycnd the expiration date pending final action on the application. An application for renewal will consist of the following: (1) A Personnal Security Questionnaire, ccmpleted by the applicant. (2) Two standard fingerprint cards with the incividual's fingerprints. (3) Authority to release information. (4) Other related fecas where specified in accompanying NRC instructions. \\26) \\10 13 Encicsure "S"
(5) A statement by the employer or contractor that at the time of application for renewal the individual's assigned or assumed job requires the level of special nuclear material access authorizaton which he or she holds, justified by appropriate reference to the licensee's security plan. (d) If at any time, due to new assigroent or assumption of duties, a change in special nuclear material access authorization level frcm NRC "R to "U is required, the individual shall apply for a change cf level of special nuclear material access authorization. Such an application shall include a description of the new duties to be assigned cr assumed, justified by apprcpriate reference to the licensee's security plan. (e) Each application for special nuclear material access authoriza-tion, renewal, or change in level shall be accompanied by the cmployer's remittance according to the folloaing schedule: (1) new application, "U" $950 (2) new application, "R" $ 30 (3) renewal "U" or "R" $ 30 (4) change of level "R" to "U" $950 (5) convert existing NRC or DGE "Q" or "Q(X)" to U or R... No charge (6) convert existing NRC or DOE'"L" or "L(X)" to U. $950 (7) convert existing NRC or CCE "Q" "Q(X)", " L", or " L(X)" to R. No charge 1261 171 14 Enclosure "5"
CRITERIA FOR DETERMINING ELIGIBILITY FCR ACCESS TO, OR CONTROL OVER, SPECIAL NUCLEAR MATERIAL 5 11.21 Application of the critaria (a) The decision to grant cr deny special nuclear naterial access ~ authorization is a comprehensive, cciTmon-sense judgment, made after con-sideration of all the relevant information, favorable or unfavorable, that to grant or deny special nuclear material access authorization is or is not inimical to the ca.rmon defense and security and is cr is not clearly consistent with the national interest. (b) To assist in making thesa determinations, on the basis of all the information in a particular case, there are set forth in S 10.31 of this chapter a number of specific types of deroyltory information. These criteria are not exhaustive but contain the principal types of deregatory information which in the opinion of the Commission creata a question as to the individual's eligibility for special nuclear material access authorization. These criteria are subject to continuing review and may be revised frca time to time as experience and circumstar.cas may make desirable. (c) When the reports of investigation of an individual contain information reasonably falling within one or T. ore of the classes of derogatory information listed in S 10.11, the application of the criteria shall be made in light of and with specific regard to whether the existence of such information creates a question as to the indi-vidual's eligibility for special nucle-material accass authorization b; raising a reasonable belief that the individual would use his or her 1261 i72 15 Enclosure "S"
access to or control over special nuclear material for theft or diver-sion of special nuclear c.aterial, or sabotage which sculd endanger the public by exposura to radiaticn. The Director, Division of Security may authorize the granting of special nuclear material sccess authorifa-tion on the basis cf the information in _the case or may authorize the conduct of an interview with the individual and, on the basis of such interview and such other investigation as he dnems apprcoriate, nay authorize the granting of special nuclear material access authorization. Othenvise, a question concerning the eligibility of an individual for special nuclear material access authorization shall be resolved in accordance with the procedures set forth in SS 10.20 through 10.37 of this chapter. (d) In resolving a question concerning the eligibility or centinued eligibility of an individual for special nuclear material access authori-zation by action of the Personnel Security Board,* the folicwiag principle shall be applied by the Board: Unere there are grounds sufficient t'c establish a reasonable belief as to the truth of the information regarded as substantially derogatory and when the existence of such informatico raises a reascnable belief that the individual T.ay use his access to or control cver special nuclear material for thef t or diversion of special nuclear material or sabotage which wcula endanger the cublic by exposure to radiation, this shall be the basis for a reccmmendation for denying or revoking special nuclear.naterial access authorization if not satisfac~ torily rebutted by the individual or shown to be mitigated by circumstmace. x The function of the Personnel Security Board is described in Part 10 of this chapter. 1261 173 16 Enclosure "3"
2. Paragraph (c) of 9 50.34 af Part 50 of this chapter is amanJed to read as follows: S 50.34 Content of applications; technical information x x x x x (c) Physical security plan. Each application for a license to operate a production or utilization facility shall include a physical security plan. The plan shall consist of t so carts. Part I shall address vital equipment, vital areas, and isolaticn zones, and shall demonstrate how the applicant plans to ccmply with the requirements of Parts 73 and 11 of this chapter, including the identification and dascription of jcbs as required by 511.11(a) of Part 11, at the proposed facility, if appliccble.# Part II shall list tests, inspections, and other means to be usad to demon-strate compliance with such requirements, if epciicable. 3. Paragraph (h) of 5 70.22 of Part 70 of this chapter is amer;ded to read as follows: 5 70.22 Contents of applications. j}6j j[4 x x x x x (h) Each, application for a license to passess cr use at any sita or contiguous sites subject to control by the licensee uranium-235 (cca-tained in uranium enriched to 20 percent or more in the uranium-235 isotope), uranica-233, or plutonium alone or in any ccabine a cn in a quantity of 5,000 grans er more ccm.autad by the formula, grams =(grams contained U-235)+2.5 (grams U-233+ grams plutonium), other than a license for possession or use of such material in the operation of a nuclear reactor licensed pursuant to Part 50 of this chaptar, shall include a physical security plan, consisting of two parts. Part I shall address vital equipment, vital areas, and isolation :cnes, and shall demonstrate 17 Enclosure "B"
4 how the applicant plans to meet the physical protection requirements of Part 73 of this chapter in the condect of the activity to be licensed including the identificatica and description of jobs as required by @ 11.11(a) o f this chapter. Part II shall list tests, inspections, and other means to demonstrate cenpliance with such requirements. (Authority: Section 7, Pub. L. 93-377, 83 Stat. 475; Section 1Gli, Pub. L. 33-703, 63 Stat. 943 (42 U.S.C. 2201)) Dated at Washington, D.C. this day of For the Nuclear Regulatory Ccmaission. Secretary of the Cenission \\26\\ \\75 18 Encicsure "3"
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