ML19332F205

Package of Fr,Vol 54,Number 42,Pp 9229-9233

ML19332F205
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Issue date:	03/06/1989
From:	NRC
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References
FOIA-89-404 NUDOCS 8912140035
Download: ML19332F205 (5)

Text

i i

i roderal Register / Vol. f4, No. 42 / Monday, March IL 1989 / Proposed Rules 9229

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"[3)ne Finance Omce wdl NUCLEAR REGULATORY pr'ocurement, receipt ins ction and j

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'dministratively change the interest rate COMWLSSION a borrower's account in ecconlance testing, construction an operation of

• $th notification from the servicing 10 CFR Part 60 nuclear power plant structures, systems and components.ne criteria are 1' ne installment schedule set generally structured to confirm the

,UI n e ch bor wer's de t instru eat h

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'k t

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'gg*fE',* "jts es $c I

hase g

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'f,[,j,'t,",he;p*,[pfus in rest os of g

Syalems *M rnPonente nuclear power plant structure 4, systems Ion a ounts w'.,ere principal only is Actucy: Nuclear Regulatory and components. ne criteria apply to

'I M w 11 continue to be used for Commission, all activities conducted during the this pa). ment calculation by the Finance Action: Advance notice of proposed design, construcil0D and o erating Ice).

O!Dca. Amortized accounts will adhere rulemsking.

phases of nuclear power anta that Clpt to the original payment achedu!e and affect the safety-related functions of d at amount. ne last scheduled principal suuhtAnyt e Nuc! car Regulatory structures, systems and componente.

I ige installment will be reduced by the Commission (Commission)is proposing Procedures and actions by licensees and to devel regulations requiring their representatives conforming to l

>ge amount of the balanu previouslY ly genciated by the reversal and enhance acceptance procodures these criteria are expected to detec.t including, but not limited to, receipt '

substandard and poor uality products o

reapplication of payrnents.

Inspection and testing o products but may not necessari! defect (4) When TmilA has rocessed a '

purchased for use in nuc car power change of interest rate or an amortized plant structures, e stems and counterfelt or fraudul ly marketed loan and a reduction in installment components. nis dvance Notice of preducts. Recent cases involv

.f amounts la needed to provide for a Proposed Rulemaking(ANpR)la a atenti substandard,counte ett and f

uten y marketed products for sound operation, the borrower may Intended to solicit comments on the request tearnortization in accordance need for additional te latory nuclear power plant structures, systems with i 1951.207[g) cf this subpart.

requirements and to tain an improved and components have prompted the -

I 1

(5)ne borrower will be notifled in understanding of afternatives to Commission to reconsider the adequacy Writing of the new interest rate as regulatory requirements that could.

of current aucme for detecting ggr substand, counterfeit and pr vide assura ce that structurts' for fraudulen0y marketed reducts and for changed.

systems and components procured 61951.223 servicing of nonpregram (NPI us n

apw an s w fo assuring that such p ets are not used as in nuclear p wer p ant structures, lonna.

7* P systems and components.

,n 33[The comroent period expires uly po cts with Nploans at not,

eligib{or a y regr 4

including appe hts.

w r, mg(A 5,1989. Commen's received after th Ap a to P 50 provide date wfD be coasidered ifit is practical the criterla for the control of purchased y

may use any serv nS.

subpart neccssary to protect the to do so. but assurance of consideration structures, systems and components for d~ ~

cannot be given to conunents teceived nuclear power ants. IfistoricaDy, -

.a Covernment's security laterest, afler this data.

licensees and t cir npresentatives haee.

includi reamortitation or reached ng. The refinancing 2DAt$$ts mad comme,nts im The purchased products with certiffcathme sqghggh e

requirements of Subpart T of this Part g,caggy,[gh,en m m %,y,g.

ad dd W'y d eet d

1951 do not apply to Np loans. Debt Nuclear Regulatory Commissives.

Washington, DC 20%5, Attentiom on the certifications as one als set 0cment actions relating to Nploans must be handled under the Federal Docketing and Service Branch-accepetng the products. ifoweierirecent Deliver comments 1o:11556 Rockvilla discoveries of sobstandard, counterfeit Claims Collection Act: proposals will be pile, RockviDe, M land, between 72 and fraodulen0y tnarketed products submitted to the National Office for a.m. and 4:15 p.m. T detal workdays.

furnished to nuclear power plants by I

review and approval. Any exception to Examine copies of comments received contractors and subcontractors the servicing requirements of Np loans at: ne NRC public Document Room.

demonstrate that current product under this subpart raust has e prior Gelman Dullding 2120 !. Street NW*

neceptance practices, particularly those concurrence of the NationalOffice.

Washington, DC.

based heav0y on certificaUons and stated catalog specifications, have not l 1951.222-1951.249 (Reperved)

FOR FURTHcR uv0RMAT10N CONT ACT.'

been sufficient in all cases. Additional Max L Clausen, Oh of Nuclear g 1951.250 ous controt number.

Reactor Regulation. U.S. Nudear detans of appnntly substandard, counterfeit, and fraudulently marketed Collection of information Regulatory Commission, Washingtor).

products are contained in NRC requirements contained in tble subpart DC 20555. Telephone (301) 492-0909.

Compliance Bulletin No. 87-02 and have been approved by the Office of SUPrmtcNTARY INFORMATIOls:

Supplementa 1 and 2, NRC Bulletin Noc Management and Dudget and have been

Background

88-05 and Supplernents 1 and 2, NRC Bulletin No. 88-10. NRC Information assigned OMB Control Number 0575-Appendix B to 10 CFR Part 50 of the Notice No. 88-19, NRC Information 0006.

Commission's regulations adopted in Notice No. 86-35. NRC information Dated: January 27,1989, 1970 (35 FR IN98) establishes the Neal Sox lohnson, quality assurance criteria for safety.

Notice No. 6S-48 and Supplement 1, NRC Information Notice No. 88-48, and Acting Adtninistrator. lbrmers flome related structures systeros and NRC Infortnation Notice No. 8847.8 Administration.

components for nuclear power plants.

The purpose of the quality assurance (l'R Doc. 80-5081 nled S-3-89. IL45 aml criteria in Appendix D is to provide

% h e e. m..n. w w W a ei the commiselon'. rut,bc Document Recm. Cetman a @880 CODE 30047.m regulrements for the design, main 5 mo t. sin.i. sw wasin, ion. oc.

8912140035 091207 PDR FOIA PEPPERMB9-404 PDR m

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c 9130 reder:t Register / Vct. 54..Nr. 42 /.htnd:y. ht:rch 6, 1989 1 Pmposed Rules n s. i In many' cases, as in part discussed in ne Commission is concemed about Metallic Products, f4onmetallic Products.

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5i:

thd referenced bulletins and information the quality of commercial grade and Componenta. ;i*3. l.'

A-notices, product acceptance rectices products that are used throughout the a

I'I O'D*f"I T

have failed to detect such su standard, nuclear plant, including applications in counterfeit or fraudulently marked the " balance of plant" structures, sytems 1.1.l a in vieN of the problems that

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products. nerefore, the Commission is and components. hts concern stems have been detected with substandard.

considering the need for additional from a recognition that structures, counterfelt, or fraudulently marketed reguladons or othr triethods to provide sytems and components utihzing products, do the Commisslon's curnnt coditional assur,snce that products substandard products may not function regulations provide adequate criteria for purchased for use in nuclear powcr as destgoed and may challenge safety-ensurleg the acceptability of purchased

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plant strvetutes, systerns and related systems unnecessarily or products?

-a,

- components satisfy requirements and.

complicate the response to off normal 1.1.1b If the current regulations are-

,6 specifications that are imposed to -

events. Commenters are requested to considered to provide' adequate criteria.-

conuder the losuel and quesdons of this how should they be opp!!ed to ensurb ~

i provide confidence that these items wtij that substandard, counterfelt. and em b36tforin as requittd to protect the public '. ANPR ss they may relate to the need or ealth and safety.

. desirability for ettber more prescrlpuve fraudulently marketed products afe ' &

F,

%e Commissions's reguletions

. regu!allons.or, alternatively, e detected and precluded from use in'.. -

t-performance-based requirement.

nuclear power plantst tw;.

,s provide two alternatJve approaches to Comments are also requested on the 1.1.1c If the current regulations do

'1.

casure that atmetures, systems and desirability of any such requirement for not provide adequate criteria, should the components satisf requirements forfications. A!!censee 7"I8ted 8PP Cations, ea well as Commisslon establish specific Il 88 safety related op[ucts to the

""[plicati no throughout the plant. requirements or performance based v,

may procure pro A mad spectmm oflasues needs to requirements to ensure that products requiremhnts of the applicable code or be considered before the Commission purchased for use in nuclear power.

standard for the safetyclated structure, decido on h ecope an4 content of anr plant stmeturn, systems and f

systeth br ooiiponent. A!!cmatively, the 6ed new regulatwy mquimmenu components satisfy the operational f

Pylessing the concerns raised by the requirements necessary to pmtect pukilic licenses :nay purihase a commercial.-

al 1

.. 8 ede pipd.u.c.t.a.nd then, using the i

cdctlence of 4censees !scing health safety? ' kccability[

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g 8'

tf ll ' b lete tel ceon 1.1.2a.Wh. t t u[gpmmfs uQ"m'nade product's "h*a y c n* ",An fE a

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p!dyce o'aN. aquirernents should be imposed for allo pm re

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' de41cato' the ' mruerdal

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• for !!'e safe.t ielated a pftcation:h Jbet have treen discussed in! ' N'[k*g" "

E**h' t strudtures, eystems and componentet. a,

-A 1.1.2b Should material traceability experiences 58 the bulletins and information notices '

" th et

'd ull in d

through a 1 t rm9dlary; contractors,,,.

J

. preylouri y rgferenced apply 16 products a l$fonnan poticis.W lowing pt u a be, 9t t

. that were obtained using bo'th of the69. ' questionf art pos'ed to f alse the issues Dr i g'

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that the Commisslod ha's identified and '

1.1.Sc "Shoul'd ' ll critical,.

approWi..

e b Commission has concluded that are not to be considered complete not c actuisucs, fw starnple, matuials, significant engineering involvemerit is ; are they intended to bound the scope of operations, functions, etc., be traceablet

,(

I required during the procurement process ~ public comment on this ANTR.n. e 1.1.2d Should there be any l

for products usedin nuclear power questions are structured la two excepti ni16 the traceability l

plants and during any testing of these

' categories:(1) Products Procured for Use reqdamentst t

~

products. It is the Commission's view tri Safety Related Structure, System and 1.1,2e,..What shquld the identificetion J..

that, in the past, inadequate engineering.' Component Applications,and(2) requirements be for treceability,for.

t Dedication of Commercf al Grade

(

(

involvement has been a common I

weakness in licensees

• propurement.. Products for Use in Safety-Related example, uniquely marking each part whenever possible, bagging, recorda,

'j programs, particularly when commercial Structure, System and Component

'IC i

' grade procurements were involved. It is ' Applications.

1.1.3 Sho'uld product acceptances be

' the Commission's position that..

Public comments are invited on each restricted to inspections and tests or involvernent'of a licensee's engineering !. pf these questions.The comment 'd if.

staff in the procurement process should resolution process will be improve

' should {e'oduct acceptances include, on,t r

a samp basit, destructive inspections include (1) selection of products to tie. ' each comment is identitled to the '

and tests to verify chemical and used in the plant. (2) determinatiori of'

. question to which it responda.

physical characteristics?

the critital charactedstics of the.

! Commenters may submit,in addition to -

1.1.4 What types of inspec'tlons and

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selected products that are to be vetified the original paper oopy, a copy of the during product acceptance,(3)

. letter in sin electronic format on IBM pC. tests (appropriate for the various types.

determination of specific testing

' DOS ebmpatibli 3.5 or 5.25 inch double of products) should be requiredt l

requirements applicable to the selected sided double density (DS/DD) diskettes.

1.1.5 Shodd licensees, contractors l

products, and (4) evaluation of test '

Data files should be provided in ASC11 and subcontractors be encouraged to results. uls involvement should be code or,if formatted text is required, perform joint testingt applicable to products initially procured data files should be provided in IBM 1.1.6 If destructive inspections and as safety related as well as commercial Revisable Form Text Document Content tests are determined necessary, what

' grade products procured for dedication Architecture [RIT/DCA) format.

should be the sampling b' sis (per a

and upgrading for use in safety-related

1. Pr6 ducts Procured for Use in Safety. vendor, per purchase order, per Related Structure, System and shipment, per lot, per container, etc.)?

' applications.The extent of this.

1.13 Should sample plan testing be

" engine' ring involvement will be highly. Component Applications.

' dependent on Die nature and use of the ne q'uestfons in this section are permitted for testing or should such e

products ldvolved.

, categorized in four subsections: General, testing be on a 100 percent basist l

l

Federal Regleter / V:1. f>4, N:,42 / Monday, M rch 6,1989 / Proposed Rules 9231 1.1.8.What sort of statistical 1.1.20b If a list of approved vendors t1.32 To what extent should items templing during product inspection is is established, how should vendors be 1.1.1s through Lt.31 be required for adequate to provide confidence that the selectedt other than safety.related components? -

product has the requisite assurance of 1.1.20c if a list of approved vendors 1.2 Metallic Products (e.g., fasteners, quality?.

Is established, who should be piping, pipe fittings, weld rod, castings, "

1.1.9 What criteria should be used responsible for maintaining this list?

forgings, bar stock, plate material, for allowing sample plan testing during 1.1.20d Shouldlicensees be stampings, wire, cable, etc.),

product acceptance?

restricted to making procurements from 1.2.1 a Should chemical analyses of 1.1.10 Should the shelflife of this list of approved vendorst the products be required as part of appropriate types of structures, systems 1.1.21 Should the use of a certificate, product acceptancest and components be Inspected and such as a Certificate of Conformance,in 1.2.1b Should these analyses of the verified as acceptable during product the procurement process be prohibited products be performed by destructive or acceptancest or,if allowed, be restricted to issue by by nondestructive sneans?

the ori tnal equipment manufacturer for 1.2.2a Should tests of mechanical 1.1.11 To what extent will an 6

effective vendor audit program and items that have remained under his properties (e g., hardness, tenslie maintenance of a quahfied vendorlist direct controlf strength, impact, etc.) of the products be reduce the likelihood of questionable 1.1.22 Should the furnishing of the required as part of product acceptancest products being used in nuclear power original manufacturer's certificate, such 1.2.2b Should tests of mechanical plantsf as a Certified Material Test Report, be properties of the products be performed 1.1.12 What are the essential made mandatory for procurement of by destructive or by nondestructive elements, for example, team materials from intermediate vendors?

means?

compositlon, depth of audits, and 1.1.13 Should the transcribing of an 1.2.3 When destmetive tests are approach, that must be included in an original manufacturer's test date by required, are test coupons (when effective vendor audit programf intermediate vendors onto the vendor's applicable) an acceptable source of test materials for the tests of chemical and 1.1.13 What reinspection or reaudit certification, for example, Certified frequency is appropriate to maintain Material Test Report, be forbiddent rocche'nical properties or should confidence in those vendors on a 13.24 To what extent should material samples be removed from qualified vendor list?

licensees or their representatives be actual products?

lYersad required to inspect the implementation 1.3 Nonmetallic Products (e.g.,

at p f c ntractor pmduct acceptance lubricants, tape, elastomers, seals, Co e r ct vendors are current?

pmgramat paints, filteis, etc.)

1.1.15 !s there an auditable method to 1.1.2s Should licensees be required 1.3.t a Should chemical analyses be demonstrate that Ilcensees actually to audit im lementation of to CFR part purchased the product from a quablied 21 by supp{lets and vendors?

required for lubricants, tape, elastomers, etc., during product acceptances?

vendor, for example, the holder of an 1.1.26 In addition to the 1.3.1b Should these analyses be ASME Code stamp holder certification?

requirements of to CFR Part 21, should performed by' destructive or by 1.1.16a Should negative (nspection, bcensees be required to notify nondestructive'meaheF d

~ '

testing and audit results be shared with manufacturers. su pliers and vendors of 2.3.2 ' Should physical pmperty tesis" oth*r partiest licensee-identtfie { problems with a

1.1.16b is a Federal requirement fe vWcosity for lubricanta, hardness l

necessary to permit this sharing of, vendor.provided nonconforming for e,lastom'ots,ir!Bi:lebby fodilters, etc.

bk2bN 1

lice ace articipation

+

11 Should procurement contracts be utredlo include a in a national data system or te rting -

1.4.. Componcuta (e.g., umps, valves,.:

provision for lic release of the equ!pment/ component failures y circult breakers, contm lers and -

I results of audits of the vendorf manufacturer and application be.

electronic parts / assemblies and their replacement parts).

(

1.1.16d Are there restraint of trade, required?

Is there spehfic data that 1.4.1 Should compone'nts be' antitrust concerns or liabilities 1.1.28 associated with these actionet should be included in a national data subjected to functional teste during i

1.1.17 Should licensees, contractors system that would significantly enhanC*

product seceptance?

-:~

l and subcontractors be encouraged to its usefulness in establishing equipment 1.4.2a Should components be make joint procurements and to share performance history?

disassembled,if necessary during intpection/ audit results of joint 1.1.29. What are the Implications of product acceptance, to verify procurements to enhance the any new Commission requirements on dimensional characteristics?

effectiveness of Inspections / audits?

the Commission's endorsement of the.

1.4.2b If th' components are not e

1.1.18 Ifjolnt procurements and American Society of Mechanical disassembled, w' hat methods should be inspections / audits are encouraged, F.ngineers (ASME) Boiler and Pressure utilized to verify critical characteristics?

should controls be imposed and,if so, Vessel Code in 10 CFR 50.55af 1.4.3a Should the chemical and what and how should these controls be 1.1.30 What is the best way to physical properties of component imposedt coordinate any new requirements with materials be analyzed during product l

1.1.19 What audit and testing the ASME Doller and Pressure Vessel acceptance inspectionst documentation should be required to Codef 1.4.3b if the chemical and physical l

provide traceability and give confidence 1.1.31 Should the new requirements properties of component materials are to to all participants in joint product that relate to areas covered by the be analyzed during product acceptance acceptances?

ASME Doller and Pressure Vessel Code inspections, what means should be 1.1.20a Should the NRC establish (e.g., SA material specifications) be utilized?

and publish a list of approved vendors handled through the code committee

2. Dedication of Commercial Crade for various products?

system?

products for Use in Safety Related l

1 l

I.

l'ede'ral Register / Vob Iv4, N.'4r / Mond'ay?Mirih's.1989 / 'Propoihd Rules

\\

2 2.1.9 Ilow should inspections verify for clastomers, efficiency for filters, etc.)

~

Structure,'Systein and component all critical characteristics (for exampleJ necessary for upgrading these products?

k I

Applications.

chemistry, physical properties, 2.3.3 May critical clharacteristics be

'Ite questions in tble section are dimensions. special processes, etc.)?

inspected by samples or is 100 percent categorized in five subsectiom: General, 2.1.10s if destructive inspections and inspection necessary to verify these Metallic Products, Nonmetallic Products, teste are determined to be necessary, characteristicot.

[

Components, and Others Questions, how should samples be selected if 2.4 Components

(

11 General products are beat / lot identified?

2.1.10b liow should sampts's be 2.4.1 Must each critical t

l 2.1.1 Should the Commission selected if products are not best/ lot characteristic be inspected before the 4

cotablish specific requirements or identifiedt component is acceptable for use in Lt.11 Should sample plan testing be safety-telated systemet

[II j

performanoo-based requirements to ensurs that commerof al grade products permitted for nondestructive testing or 2.4.2 llow should the chemical and being dedicated for use in safety related should such testing be on a 100 percent physical properties of component j

tuclear power plant structures, systems materials be analyzed during upgrade cnd compoucats satlafy the operational basist 2.1.12 What criteria are appropriste inspectionat requirements necessary to protect public for allowing Sarnple plan testing during2.4.3 If critical charactedstics cannot i

health and safetyt 1.1.2 Should NRC regulations be upgrade inspect >ousf be inspected on each component piece, should it be acceptable to establish revised to endorse and incorporate by 2.2 Metallic Prodvets heat / lot traceability, establish be referenos, the industry codes, standards, uniform!thoflot by sample inspec'tlon LLla Are chemicalanalyses of the or guldance documents for dedication roducts appropriate as part of upgrade and therc accept the lott programs of oummercial grade products

{nspectionsf 2.4.4s Must components be 100 for use in safety related structure, system and cocapooent applications? -

performed by destructive or by.be

[subfected to functionaltests on a-(l

' LLib Should these analyses n functionally tested or may they 4

y ;

i 2.tJa What should the traceability condcatructive mennst -

sempung basist requirements be for allcommercial LL2a e Are tests of mechanical 14.4b inspected by sample, what is l

products being upgraded foe use la.

safety-related structures, systems and -

properties (e.g., hardness, te nsile be s pufmming m!y sample l

strength, impact etc.) appropdate as part L

On Lt.3b If epgrading treceability of upgrade inspectiomt

'P'.Se Should disessembly of.

I q components? -

Lt LL2b.Should these teste be components be required to verify critical e :

l provisions are necessary, svhat should. - performed by destructive or by non-charactedsticet y

(

these provisions indadef - '

Lt.3c Should material traceability destructive meanst.

144b May verification of critical t('

LLS If the product is heat / lot charactedstics be done on a sarnpling f

through all intermediary contracts, traceable,is sample impection basis or are100 percent inspections subcontractors and processors be.

(destructive and nondestructive) necessary?

u requiredt )

adequate for confirmation of critical 14 Sc What is the basis for

'a Lt.3d illlam traceability la chatacteristicat Performing only sample inspectionst necessarys should thcre be any L.t4 If the product is not heat / lot 145d if components are not provisloas for upgrading products whose traceable,is it necessary to either disassembled to verify dimensions, what cannot be establishedt

,x traceabilityhoWd tbs upgrading sample or 103 percent test. for exarnple, methods can be utilized.to verify 1;!

11.Se c traceability provisions be any different hardnen, to estab!1sh uniformity and dimensiout j

if the products are heat / lot identified or then destructively analne them (for example, chemical analyses, tensile 2.5 Other Questions a

.I I nott 2.1.3f What abould the identificetion tested. impact testn!, etc.) to determine 15.1a. Are them any other ageney/

requirements be for tracealdlity, for acceptatniftyf organtration standards or programs that I,

LES Should requirements in should be adopted for use in upgrading example, marking, basging and records?

addition to those included in industry commercial grade products for use in 11.4 Ilow should products latended for use in applications in which products standards (e4 a/.ditjonal samples, etc.)

safety related systemst are ncrrmally required to meet specific be requiredt L5.1b Should these standards or standards be inspected to verify that all-2.L6 When destructive tests are.

critical characteristics are satisfied?

required, are test coupons (when programs be endorsed by NRC L1.5 Should the shelflife of available) an acceptable source of test regulatiomt

. 15.2 Are there other alternatives appropdate types of products be matarials for chemical and mechanJcal that could provide the necessary inspected and vedfied as acceptance as propert>cs tests or should material assurancest part of the upgrade inspection processt samples be ternoved from actual 15.3 To what extent should any 1.1.6 What types of shelf Ilfe controls products?

existing controls or any additional should be imposed on products that are 2.3 Nonmetallic products controle being contemplated in the being upgraded for use in safety-related L3.ta Are chemical analyses ANPR be extended to nonsafety related structures, systems and componentst necessary to establish critical app!! cations in " balance of plant" 11.7 Should all upgrade inspections be restdcted to inspections and tests or characteristics for lubricants, tape, structures, systems and componentat should they include, on a sample basta, elastomers, etc., proposed for upgrading 1.lst of SubN: In to Cnt Part 50 destructive inspections and tests to for use in safety-related systemst Antitrust, Classified information, n. e 13.1b Should these analyses be verify chemicaland physical performed by destructive or by non-protection, incorporation by reference, Intergovernmental rela tions, Nuclest characteristics?

2.t,8 What types of inspections and destructive meanst power plants and reactors Penalty, LLP Are physical property tests tests (appropdate for the varfous types (e.g., viscosity for lubricants, hardness Radiation protection. Reactor siting of products) should be required?

^~" - - - - - ~ ~ ~ _,, _,, _,,, _ _ _

J Federal Rog! ster / Vol. 64. No. 42 / Monday, M:rch 0,1989 / Proposed Rules 3233 criteria, and Reporting and Lender (which are SBA participating

2. Section 12104-1 !s amended by recordkeching regulremonta.

lenders who have e Aemplary records in adding a new paragraph (f) to read as

%e authority citation for this making gustenteed loans) to keep one follows:

i document is.

half of de guaranty fee for a CLP or regularly processed loan of $60.000 or I # C C'"*'*"'F I*-

~

A uthority: Sec.161. Pub.1. 834o3. os Stat.

less and a maturity in eAcess of twelve act b to to 2 e ame ded months. De pl osed amendment of the (f) Artention of Cuoronty Teo. beept 2 U.S.C 6641).

regulation wou implement this for loans made under the Preferred Dated et Rockville. Maryland. this 28th day statutory provision.

Lenders Program in Subpart D of this

)

of February, taas.

Public Law 100-590 also refers to the Part, w hen a Certified tender or use of a sim For the Nuclear Regulatory Commleslort small loans.plified loan form for thesePreferred tender makes a loan of j

SBA periodically reviews

$50,000 or less, with a maturity in excess i

Samuell. Chilk, Its loan forms and the current version of twelve months.it may retain one-half 1

Secretoryo/deCommu. lon.

s was revised in se last several years, of the guaranty fee charged to the l

(Mt Doc. 8S-61o1 hied bb89. 8.45 em)

SDA considers thet the information

borrower, i

• * *'C*t?$

-_.___'*M

' requested on the present forms is the Dated. Janury 26.19se.

minimum necessary in order to make an James Atxinor, inf rmed declslon on 04 l

SMALL BUSINESS ADMINISTRATION Administmror, creditworthiness of a borrower, 13 CFR Part 120 regardless of the amount of the loan.

trR Doc. es-6tts filed 3-3-89, n.45 am) 1 Accordingly, SBA is not at this time amo em ecsu

~

making any changes to its loan forms to Business Loan PoflCy accommo: late this smallloan proposal.

ACENCY: Small Dusiness Administration.

Por purposes of the Regulatory DEPARTMENT Or COMMERCE Acnow: Notice of proposed rulemaking.

11cxibility Act (b U.S.C. 005(b)). SBA ceriifies that this proposed rule will not.

Bureau of bport Administration

SUMMARY

Section 102 of the Small if promulgated in final form, have a Business Administration slsnificant impact on a substantial 15 CFR Part 187 Reauthorization and Amendment Act of number of small entitles because recent 1988. Pub. L 100490 (102 Stat. 2909),

history indicatee to SBA thet there will et No. 8 H47-4247) hmallDui t(k5

.C.

6)wth

'" '

• large number of loans VoluntarySelf Disclosuree s

o c,,,

respect to guaranty fees on loans of SDA certifies that this proposed rule AntwCY:Dureau of bport '

$50.000 or less by Certified or Preferred does not constitute a major rule for the Administration, Commerce, j

Lenders. This reposed rule would purposes of becutive Order 12291, ACnow: Proposed rule with request for implement suc amendment.

since the change is not likely to resuh in

comments, oArt: Con:ments must be received on or en annual effect on the economy of $100 j

before April 5,1989.

mil!!on or more because it is not

SUMMARY

The Dureau of bport

{

ADoRt$$: Comments may be malled to:

antlcipated that such a large number of Administration proposes to amend the Allan Mandel. Small Dusiness

$50.000 loans will be made. In 1986, the bport Administration Regulations to

}

Administration 1441 L Street NW, average SBA loan was $150.000, for 1987 set forth procedures for dealing with Washington, DC 20416.

It was $100.000, and for 1988 ll was voluntary self. disclosures of violations FOR TURTHER INFORMAT10N CoWTACT:

$101,000, of the bport Admin!strallon Act, as final form, posed rule, if promulgated in De pro amended,' nd the bport Allan Mandel,202-653-6096.

a would not impose additional Administration Regulations."f$ere have SUPPt.EMcNT ARY INFORMATiose %e rting or recordkeeping requirements been inquiries from the public which ref'ich wou d be subject to the Small Business Administration (SBA) suggest that there are uncertaintles with h

I f par c ating lender to o tain the SDA Paperwork Reduction Act.44 U.S.C.

res{ disclosure may have on theect to guaranty with respect to a percentage of Chapter 35,

. sel a qualified loan. On loans with This proposed rule would not have treatment of violations. By publishing maturities in excess of twelve months, federalism implications warranting the the practice of the Bureau of bport th fe i Suchf ' preparation of a Federal Assessment in Administration with respect to g,',8" by t e lender oNB ^ ut the accordance with becutive Order 12812.

voluntary self. disclosures, this rule wiu

d lender may Eass that charge on to the List of subjects in 13 CFR Part 120

reduce that uncertainty, small business concern borrower, RIs lean Programs / Business.

Depending on the facts and is true whether the loan being Pursuant to the authority contained in circumstances of each casa, the section 5(b)(6)of the SmallBusiness Act voluntary self. disclosure of a violation

( 5 U.S.C. 634(b)l6)) and Section 136 of will ordinarily be a mitigating factor an m de und r e Cer se lenders Program (CLP) (under which a lender is Pub. L 100-590 (102 Stat. 2989) SBA which the Bureau of bport

=

prcposes to amend Part 120, Chapter I, Administration will consider, along with y S N) or Me 13, Code oUederd ReguleHonn, as other aggravating and mitigating factors.

oan ad rt e f Ilows:

Preferred lenders Program (PLP)(under when determining the appropriate which the loan does not get any PART 120-DUSINESS LOAN POLICY

^

processing review by SBA). Congress g*P05'a-wants to encourage lenders to make

1. ne authority citation for Part 120 DATt: Comments should be received by smaller loans which are less profitable continues to read as follows:

April 5,1909.

for lenders. Public Law 100-590 Authority:15 U.S.C. 634(b)(6) and 636 (a)

ADORES $; Writtep Comments (alX copies) authorizes a Certified or Preferred ar.d (h).

should be sent to: William H. Arvin.

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