ML19332D378

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Forwards Proposed Change to Exemption Provisions of 10CFR170.11(a)(4) Based on Encl R Smith Memo.Denial of Exemption of Activities Performed Under Govt Contract Proposed
ML19332D378
Person / Time
Issue date: 06/05/1989
From: James Holloway
NRC OFFICE OF THE CONTROLLER
To: Fonner R
NRC OFFICE OF THE GENERAL COUNSEL (OGC)
Shared Package
ML19332B436 List:
References
FRN-54FR49763, RULE-PR-170 AD23-1-31, NUDOCS 8912010098
Download: ML19332D378 (3)


Text

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. nies m NOTE TO: Bob Fonner, OGC

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FROM:

Jim Holloway, LFNB

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Attached for your review-and comment is our proposed change to the exemption provisions of $170.11 (a)(4) based on the attached memoranda from Ron Smith.

I We feel that the proposed change would minimize the difficulties in administering the exemption. We are proposing not to exempt activities performed under Government contracts since this would be contrary to our policy with other licensees such as the,GE/N8S case (an exemption was denied for a certificate of compliance applyNor by GE for a shipping container ta be developedundercontractwithNBS). ShouldGovernmentgrants(suchasthe National Science Foundation) be treated the same as Government contracts?

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(ForSection-by-SectionAnalysis) i Paragraph 03)(4) is changed to include all licenses applied for by, or issued to, non-profit educational institutions, except power reactors and materials-f licenses which authorize human use, commercial distribution, or service to t

other persons, If a non-profit educational institution provices services to l

other persons without charge, the exemption would apply.

This change is in keeping with the concern of Congress with the impact of the current fee scheoule on some entities. In establishing the annual fee requirement for NRC under section 7601 of the Consolidated Budget Reconciliation Act of 1985 (COBRA) 99 P. Law 272 (1986), both the House and Senate stated in the

  • Statemer.t of Managers re NRC Fees" that the Commission should take into account when determining whether to modify the current fee schedule that certain Commission licensees, such as Universities, have limited ability to passthroughthecostofthesecharges(annualcharges)totheultimate consumer. Additionally, the Commission has received several exemption requests from colleges and universities for licented activities not covered by the current exemption.

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(For %170.11(a))

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(4) A construction permit or license appiied for by, er issued to, a non-profit educational institution for, or in connection with, a production or utilization facility other than a power reactor, or for the possession and use of byproduct material, source material, or special nuclear material except for licenseswhichauthorize1)humanuse;2)servicestootherpersons;3) distribution of byproduct material, source material, or special nuclear g

material or products containing byproduct naterial, source materi6', or special nuclear material; and 4) activities performed under a Government agency contract.

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