ML20024G014
| ML20024G014 | |
| Person / Time | |
|---|---|
| Issue date: | 12/11/1990 |
| From: | Chilk S NRC OFFICE OF THE SECRETARY (SECY) |
| To: | |
| References | |
| FRN-55FR51726, RULE-PR-2, RULE-PR-40, RULE-PR-70, RULE-PR-74 PR-901211, NUDOCS 9012270237 | |
| Download: ML20024G014 (29) | |
Text
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Uwc TO OT7sso o@21 NUCLEAR REGULATORY COMMISSION 10 CFR Parts 2, 40, 70, and 74 RIN 3150 - AD56 Material Control and Accounting Requirements for Uranium Enrichment Facilities Producing Special Nuclear Material of Low Strategic Significance AGENCY:
Nuclear Regulatory Commission.
ACTION:
Proposed rule.
SUMMARY
The Nuclear Regulatory Commission (NRC) is proposing new performance-based material control and accounting requirements that would be applicable to uranium enrichment facility licensees who produce significant quantities of special nuclear material (SNM) of low strategic significance.
The proposed requirements are similar to existing requirements which apply to licensees authorized to possess and use more than one effective kilogram of SNM of low strategic significance.
The proposed rule woula ie. pose additional requirements to ensure that
-enrichment facilities would produce only enriched uranium of low strategic significance as authorized.
The proposed requirements would also apply to all applicants-who build or operate enrichment facilities.
L DATE:
Comnnt period expires (75. days from the date of-publication in the Federal Register).
Comments received after this date will be considered if it is practical to do so, but the NRC is able to assure consideration only for comments received on or before this date.
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l ADDRESSES:
Mail written comments to the Secretary, U.S. Nuclear Regulatary Commission, Washington, DC 20555, Attention:
Docketing and Service Branch.
Deliver comments to One White Flint North, 11555 Rockville Pike, Rockville, MD, between 7:45 a.m. and 4:15 p.m. Federal workdays.
Copies of the draft regulatory analysis, the environmontal assessment and finding of no significant impact, the paperwork statement submitted to OMB, the draft regulatory guide, and comments received may be examined at the NRC Public Document Room, 2120 L Street NW. (Lower Level), Washington,DC.
FOR FURTHER INFORMATION CONTACT:
Mr. Gordon E. Gundersen, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephnne (301) 492-3803 or Mr. Donald R. Joy, 3
Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 492-0352.
SUPPLEMENTARY INFORMATION:
Background
An advanced notice of proposed rulemaking on regulation 'of uranium.
i enrichment, which would have created a new 10 CFR Part 76, was published in the Federal Register on April 21, 1988 (53 FR 13276). -The-initiative was-abandoned because legislative efforts being considered in Congress at-the: time might have changed.by law the way HRC is required-to license uranium enrichment facilities.
Also, the sole potential applicant, URENCO, Inc. did not file a license application.
2
In the Federal Register on February 15, 1989 (54 FR 6876), safeguards reporting requirements were changed.
Specifically, the amendment to 10 CFR 74.17, which would also apply to enrichment facilities deleted the requirement for licensees located in Region II as indicated in Appendix A to Part 73 of this chapter to submit Special Nuclear Material (SNM) Phys-ical Inventory Summary Reports to Region II.
This change required all j
licensees subject to this reporting requirement to submit the reports to the Director, Office of Nuclear Material Safety and Safeguards because all a.;pects of material control and accounting (MC&A) have been completely transferred to NRC headquarters.
From 1975 to 1984,_NRC's MC&A requirements for all major fuel cycle facilities, including any potential commercial enrichment facilities and l
reprocessing plants, were contained in 10 CFR Part 70 (primarily SS 70.51, 70.57, and 70.58).
Those requirements, for the most part, did not vary with respect to the type of facility or with respect to the SNM category (i.e., low enriched uranium, high enriched uranium, or plutonium).
In 1985, a new 10 CFR Part 74 was created to amend the MC&A requirements-that (1) recognized the different levels of safeguards sig-nificance among the'different types of SNM, and (2) converted MC&A requirements from a prescriptive-based to a performance-based format.
The existing provisions of Part 74, specifically 10 CFR 74.31, pertained to licensees (and applicants) authorized to possess and use more than one effective kilogram of SNM of low strategic significance as defined in 10 CFR 74.4.
Section 74.31 is a set of MC&A objectives and
-capabilities required of licensees to assure the NRC and the general public that proper stewardship of SNM is maintained.
These requirements provide adequate protection for SNM of low strategic significance at 3
existing licensed facilities.
Enrichment facilities were specifically exempted from coverage by 10 CFR '4.31 because (1) HRC had not received an application for a uranium enrichment facility, and at that time, saw no prospects for receiving such an application, and (2) the NRC believed that the safeguards issues pertaining to enrichment facilities producing 235 SNM of low strategic significance (i.e., enriched uranium with a U concentration below 10 percent) were somewhat different and more complex than for other 10 CFR 74.31 type facilities.
An enrichment facility can be used clandestinely for production of high enriched uranium or unauthorized production of low enriched uranium.
Thus, additional safeguards are needed for enrichment facilities to protect against such unauthorized activities.
However, for centrifuge enrichment facilities, it is expected that during startup of each cascade the enrichment level in the cascade may temporarily exceed the regulatory.
~
limit during the first 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> of operation.
This period of operation will allow time to resolve start-up problems and adjust equipment. The NRC staff expects that 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> is a sufficient period of adjustment without allowing an excessive amount of cascade operation outside of normal controls.
This is considered to be part of the start-up process and not an unauthorized activity. The NRC staff seeks specific comments from the public on the sufficiency of this 24 hour2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> period of adjustment.
Diffusion ar,a atomic vapor laser isotope separation enrichment technologies do not experience this start-up phenomenon.
There is a possibility that applications for a license for the construction acd operation of new enrichment facilities may be submitted to the NRC in the near future.
There is also a possibility, over a longer term, that legislation will be enacted that would put all or part 4
l of the Department of Energy's (DOE) enrichment facilities under the jurisdiction of NRC regulations.
It would thus be appropriate for the NRC to clarify and formalize its regulatory position with respect to MC&A requirements applicable to enrichment facilities producing uranium of low strategic significance.
This proposed rule on MC&A contains only a few of the requirements which need to be met prior to obtaining a license to operate an enrichment facility.
Because of enactment of the Solar, Wind, Waste, and Geothermal Power Production incentives Act of 1990 (Public Law 101-575) a single licensing process under 10 CFR Parts 40 and 70 will be used which will involve the issuance of a single license authorizing construction and operation of an uranium enrichment facility and the receipt, possession, use, and transfer of source and SNM.
MC&A is only one part of the safeguards program required for uranium enrichment applicants and licensees.
Failure to properly carry out certain safeguards activities at enrichment facilities could adversely affect the national common defense and security.
Safeguards consists of physical protection, MC&A, and information security.
The SNM of low strategic significance produced by enrichment facilities needs to be protected from theft by having a physical security program which meets the requirements of 10 CFR 73.67 Classified or sensitive information and hardware have to be protected according to 10 CFR Parts 25 and 95, in particular, centrifuges need to be protected from theft, unauthorized viewing, or unauthorized use.
For centrifuge technology, the details of this protection program are currently under joint development by NRC, DOE, and Department of State.
Enrichment technology, either currently used by or under development by the DOE, when subject to NRC lice.nse, I
5
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W would be protected by information security measures equivalent to those now used by 00E.
In addition, Congress has addressed fitness-for-duty in section $152 of the Drug-Free Workplace Act of 1988 (102 Stat. 4304) which requires persons awarded a contract for property or service of
$25,000 or more from f.;:, Fedral agency to certify that it will provide a drug-free workplace.
Also, section $153 of the Drug-Free Workplace Act of 1988 (102 Stat. 4306) requires persons receiving any grant from a Federal agency to certify that it will provide a drug-free workplace.
Therefore, an uranium enrichment applicant or licensee obtaining a Federal agency grant or contract of $25,000 or more will be required to certify that it will provide a drug-free workplace.
If an enrichment facility is expanded by adding additional modules after operation has begun, the new modules would be required to meet the requirements of the existing FHMC Plan, by addendum to the plan, prior to placing the modules in service.
However, the NRC staff believes that it has addressed all major issues associated with MC&A for enrichment facilities, but if that is not the case, the staff expects to handle those issues as they arise on a case-by-case basis through license conditions.
The Commission is proposing new MC&A requirements for uranium enrichment facilities.
Since the proposed 10 CFR 74.33 was developed by starting with the existing 10 CFR 74.31 requirements, most of the general performanceobjectivesof10CFR74.31wereincorporated.
Notably, 10 y
1 CFR 74.31(a)(3), " Aid in the investigation and recovery of missing material," was not retained.
Although this objective might be helpful L
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6
4 fc11owing an actual theft of $NM, it is not logically part of an MC&A system, because it involves activities that can only begin after the material has left the licensee's control.
Recovery of missing material is a responsibility of the U.S. Department of Justice, which has ample authority to compel any licensee's assistance in its investigatory and prosecutorial activities.
The proposed 10 CFR 74.33 sets forth require-ments for traditional MC&A measures and additional measures to protect against unauthorized activities at facilities producing SHM of low stra-tegic significance.
The proposed 10 CFR 74.33 does not depend on 10 CFR 74.31 but is intended to be a stand-alone provision.
A major new feature of this proposed rule is the requirement to 235 account on a measured basis for all uranium and U on site, whether it is natural, depleted, or enriched uranium.
This is necessary because the 235 enrichment process, in changing the U concentration, consumes natural uranium and produces depleted and enriched uranium.
If a material 235 balance around the U received, produced, shipped, and remaining in inventory is petiodically verified by a physical inventory; then this process, in the absence of any safeguards alarms, provides high assurance that the MC&A system is operating properly.
The proposed rule contains other significant features which will be described in turn.
Physical inventories taken on an annual basis have historically been sufficient for safeguarding low enriched uranium; i.e.,
235 less than 10 percent U
, and thus, have been applied to enrichment facilities.
Physical inventories are also expected to be sufficient for natural and depleted uranium because the material will be in a form which is easily and precisely measured.
7
The 2-month interval for dynamic inventories of the enrichment process area was selected because annual material balances represent a 4
1arge quantity of uranium with an associated relatively large
. uncertainty.
Since uncertainty has the effect of reducing the amount of material loss that can be detected, the 2-month interval improves our loss detection capability by reducing the amount of material in the material balance.
Also, the 2-month period provides an opportunity to-J check the operation of'the material tracking system so that proper tracking of all. quantities of material can be demonstrated.
Since
- process ' area inventories are based on. indirect measurements, and not-the traditional MC&A measurements based on assays of samples, and-isotopic or 235' determinations,.the uncertainties are higher for indirect-0 measurements.
The. iterative process of taking dynamic inventories every 2 months; i.e., predicting the amount of enriched uranium based on
. indirect measurements and comparing that to the actual amount produced in a finite amount of time, e.g., 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />, establishes a process which could lead to more accurate dynamic. inventories. -Finally, the'2-month period repeated over time will effectively monitor any long te.m growth of process holdup within the process piping and equipment.
A_ practice of exempting items each containing less than 500 grams U
up to a cumulative total of 50 kilograms U235'from the item control 235 program has historically been sufficient for low enriched licensees, and
' thus,: has been: applied to enrichment facilities.
The NRC staff does not expect any adverse impact on the MC&A program because the total quantity I;
exempted is small= relative to the active inventory for an enrichment i
p p
facility.
8 l
= _ -
n A practice of exempting from resolution shipper-receiver differences 235 which are less than 500 grams U has historically been sufficient for low enriched licensees, and thus, has been applied to enrichment facilities.
The NRC staff does not expect any adverse impact on the MC&A program because shipper-receiver differences should average out to a near zero value over time due to seme differences being positive and others negative.
Draft Regulatory Guide The proposed rule is written in general, performance-based language to give the applicant flexibility in designing a cost-effective system to make best use of site-specific features.
The purpose of the draft regulatory guide is to provide an acceptable method of meeting the performance based system capabilities described in 10 CFR 74.33.
It should be noted that the applicant is free to use any method that complies with the requirements of 10 CFR 74.33.
The Commission also requests public comment on the draft regulatory guide.
Comments on the draft guide may be submitted to the NRC as l
indicated under the ADDRESSES heading.
l Finding of No Significant Environmental Impact:
Availability The Commission has determined under the National Environmental Policy Act of 1969, as amended, and the Commission's regulations in Subpart A of 10 CFR Part 51, that these amendments are not a major Federal action significantly affecting the quality of the human 9
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environment, and therefore an environmental impact statement is not required.
The rule is mainly administrative in nature and would not change any requirements that could have significant environmental impact.
The proposed rule would provide assurance that only enriched uranium of low strategic significance as authorized by the license is produced at a licensed enrichment facility through material control and accounting measures and other appropriate requirements.
There may be some increase in occupational exposure stemming from safeguards-related activities such as data recording, inspecting, or sample taking, but likely not enough to be measurable or identifiable.
Paperwork Reduction Act Statement This proposed rule amends information collection requirements that are subject to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). The recordkeeping and reporting requirements in this rulemaking have been submitted to the Office of Management and Budget for review and approval of the paperwork requirements.
Public reporting burden for this collection of information is estimated to average 437 hours0.00506 days <br />0.121 hours <br />7.225529e-4 weeks <br />1.662785e-4 months <br /> per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection o.' information.
Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Information and Records Management Branch MNBB-7714, U.S. Nuclear Regulatory Commission, Washington, DC 20555; and to the Desk Officer, Office of Information and Regulatory Affairs, 10
Nf0B-3019,(3150-0123), Office of Management and Budget, Washington, DC 20503.
Draft Regulatory Analysis The NRC has prepared a draft regulatory analysis on this proposed regulation.
The analysis examines the costs and benefits of the alternatives considered by the NRC.
The Commission requests public comments on the draft regulatory analysis.
Comments on the draft analysis may be submitted to the NRC as indicated under the ADDRESSES heading.
Regulatory Flexibility Certification in accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b),
the Commission certifies that, if promulgated, this rulemaking will not have a significant economic impact on a substantial number of small entities.
The proposed rule, when promulgated, would affect only persons who build or operate enrichment facilities producing enriched uranium of low strategic significance.
The owners of enrichment facilities do not fall within the scope of the definition of "small entities" set forth in Section 601(3) of the Regulatory Flexibility Act, 15 U.S.C. 632, or the Small Business Size Standards set out in regulations issued by the Small Business Administration at 13 CFR Part 121.
11
m Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this proposed rule and, thu.;, a backfit analysis is not required for these amendments becaust it does not involve any provisions that would impose backfits on licenses, approvals, or applications for.
any existing facilities described in 10 CFR 50.109(a)(1)(i)-(iv).
List of Subjects Part 2:
Administrative practice and procedures, Antitrust, Byproduct material, Classified information, Environmental protection, Nuclear materials, Nuclear power plants and reactors, Penalty, Sex discrimination, Source material, Special nuclear material, Waste treatment and disposal.
Part 40:
Government contracts, Hazardous materials--transportation,
. Nuclear materials, Criminal penalties, Reporting and recordkeeping requirements, Source material, Uranium.
c Part 70:. ' Hazardous materials--transportation, Material control and accounting, Nuclear materials, Packaging and containers, Criminal penal-ties, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material.
Part 74:
Accounting, Hazardous ~ materials--transportation, Material control and accounting, Nuclear materials, Packaging and containers, Criminal penalties, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Special nuclear material.
For the reasons set forth in the preamble and under the authority of t
r the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act 12
___ ~... _ _. _,., _, _.. _. _., _. -
of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to adopt the following amendments to 10 CFR Part 74, and conforming amendments to 10 CFP Parts 2, 40, and 70.
PART 2 - RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS 1.
The authority citation for Part 2 continues to read as follows:
AUTHORITY:
Sees. 161, 181, 66 Stat. 948, 953, as amended (42 U.S.C.
2201, 2231); sec. 191, as amended, Pub. L.87-615, 76 Stat. 409 (42 U.S.C. 2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841); 5 U.S.C. 552.
Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 105, 68 Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42 U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); Sec. 114(f), Pub. L.97-425, 96 l
Stat. 2213, as amended (42 U.S.C. 10134(f)); sec. 102, Pub. L.91-190, 83 l
Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 88 Stat. 1248 (42 U.S.C. 5871).
Sections 2.102, 2.103, 2.104, 2.105, 2.721 also issued under secs. 102, 103, 104, 105, 183, 189, 68 Stat. 936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2233, 2239).
Section 2.105 also issued under Pub. L.97-415, 96 Stat. 2073 (42 U.S.C. 2239).
Sections 2.200-2,206 also issued under secs. 186, 234, 68 Stat. 955, 83 l
Stat. 444, as amended (42 U.S.C. 2236, 2282); sec. 206, 88 Stat. 1246 (42 U.S.C. 5846).
Sections 2.600-2.606 also issued under sec. 102, Pub. L.91-190, 83 Stat. 853 as amended (42 U.S.C. 4332).
Sections 2.700a, 2.719 also issued under 5 U.S.C. 554.
Sections 2.754, 2.760, 2.770, 2.780 also issued under 5 U.S.C. 557.
Section 2.764 and Table 1A of Appendix C also issued under secs. 135, 141, Pub. L.97-425, 96 Stat. 2232, 2241 (42 13
U.S.C. 10155, 10161).
Section 2.790 also issued under sec. 103, 68 Stat.
936, as amended (42 U.S.C. 2133) and 5 U.S.C. 552.
Sections 2.800 and P
2.808 also issued under 5 U.S.C. 553.
Section 2.809 also issued under 5 U.S.C. 553 and sec. 29, Pub. L.'85 256, 71 Stat. 579, as amended (42 U.S.C. 2039).
Subpart K also issued under sec. 189, 68 Stat. 955 (42 O.S.C. 2239); sec. 134, Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154).
Subpart L also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239).
Appendix A also issued under sec. 6, Pub. L.91-560, 84 Stat. 1473-(42 U.S.C. 2135).
Appendix B also issued under sec. 10, Pub. L.99-240, 99 Stat. 1842 (42 U.S.C. 2021b et seq.).
2.
In Appendix C, Supt.ement III.is amended by adding new paragraphs A.3 and B.4 to read as follows:
i:
Supplement III - Severity Categories l.
l
' _Sa f eguards A. * *
- 3.
Actual unauthorized productior, of a formula quantity of special nuclear material.
B. * *
- 4.
. Actual unauthorized production of special nuclear material.-
A A
A A
A c
h l
14 l
PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL 3.
The authority citation for Part 40 continues to read as follows:
AUTHORITY:
Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat.
932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub.
L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022).
Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851).
Section 40.31 (g) also issued under sec.122, 68 Stat.
939 (42 U.S.C. 2152).
Section 40.46 also issued under sec. 134, 68 Stat.
954, as amended (42 U.S.C. 2234),
Section 40.71 also issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 40.3, 40.25(d)(1)-(3), 40.35(a)-(d) and (f), 40.41(b) and (c),
40.46, 40.51(a) and (c), and 40.63~are issued under sec. 161b, 1611, and 1610, 68 Stat. 948, 949, and 950, as amended, (42 U.S.C. 2201(b), 2201(i),
and 2201(o)), and SS 40.5, 40.9, 40.24(c), (d)(3), and (4), 40.26(c)(2),
40.35(e'
?;
.l.61, 40.62, 40.64, and 40.65 are issued under sec. 1610, 68 Stat.
as amended (42 U.S.C. 2201(o)).
4.
In S 40.1, paragraph (a) is revised to read as follows:
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$ 40.1 Purpose.
(a) The regulations in this part establish procedures and criteria for the issuance of licenses to receive title to, receive, possess, use, transfer, or deliver source and byproduct materials, as defined in this part, and establish and provide for the terms and conditions upon which the Commission will issue these licenses.
(Additional requirements applicable to natural and depleted uranium at enrichment facilities are set forth in 5 70.22 of this chapter.) These regulations also provide for the disposal of byproduct material and for the long-term care and
. custody of byproduct material and residual radioactive material.
The regulations in this part also establish certain requirements for the physical protection of import, export, and transient shipments of natural uranium.
(Additional requirements applicab'le to the import and export of
. natural uranium are set forth in Part 110 of this chapter.)
a a
a a
a I'
PART 70 - DOMESTIC LICENSING 0F SPECIAL NUCLEAR MATERIAL 5.
The authority citation for Part 70 continues to read as follows:
-AUTHORITY:
Sees. 51, 53, 161~ 182, 183, 68 Stat. 929, 930, 948, 953, l~
L 954, as amended, Sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, l-2201, 2232, 2233, 2282);-Sees. 201, as amended, 202, 204, 205, 88 Stat.
1242, as amended,- 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).
Sections 70.1(c) and 70.20a(b).also issued under Secs. 135,-141, Pub.
L.97-425, 96 Stat. 2232, 2241-(42 U.S.C. 10155, 10161).
Section 70.7 also issued under Pub. L.95-601, Eec. 10, 92 Stat. 2951 (42 U.S.C. 5851).
16
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__.-~~m_
h Section 70.21(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152).
Section 70.31 also issued under Soc. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077).
Sections 70.36 and 70.44 also issued under sec. 184,
-68 Stat. 954, as amended (42 U.S.C. 2234).
Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 U.S.C. 2236, 2237).
Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 70.3, 70.7(g) 70.19(c), 70.21(c), 70.22 (a), (b) (d)-(k), 70.24 (a), and (b), 70.32(a)(3), (5) and (6), (d) and (1), 70.36, 70.39(b) and (c), 70.41(a), 70.42(a) and (c), 70.56, 70.57 (b), (c), and (d), 70.58-(a)-(g)(3), and (h)-(j) are issued under sec. 161b, 1611, and 161o, 68 Stat. 948, and 950, as amended (42 U.S.C.- 2201 (b), 2201(i), and 2201(o));
SS 70.7, 70.20a (a) and (d), 70.20b (c) and (e), 70.21(c), 70.24(b),
70.32(a)(6),(c)',(d),(e),and(g), 70.36,70.51(c)-(g),70.56,70.57 (b)and(d),70.58(a)-(g)(3)and(h)-(j)areissuedundersec. 1611, 68 Stat. 949, as amended (42'U.S.C. 2201(i)); and SS 70.5, 70.9, 70.20b (d) 1 and (e), 70.38, 70.51 (b) and (i), 70.52, 70.53,'70.54, 70.55, 70.58 (g)(4),
~
(k) and (1), 70.59, and 70.60 (b) and (c) are issued under sec.. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o));
6.
In S 70.22, paragraph (b) is revised and new paragraph (m) is added to read as follows:
6.70.22 Contents of applications.
(b) Each application for a license to possess special nuclear material and equipment capable of enriching uranium, or to possess and use at any-H 17
one time and location special nuclear material in a quantity exceeding one effective kilogram, except for applications for use as sealed sources and for those uses involved in the operation of a nuclear reactor licensed pursuant to Part 50 of this chapter and those involved in a waste disposal operation, must contain a full description of the applicant's program for control and accounting of such special nuclear material or enrichment equipment that will be in the applicant's possession under license to show how compliance with the requirements of $$ 70.58, 74.31, 74.33, or 74.51 of this chapter, as applicable, will be accomplished.
A (m) Each application for a license to possess equipment capable of enriching uranium or operate an enrichment facility, and produce, possess, or use more than one effective kilogram of special nuclear material at any site or contiguous sites subject to control by the applicant, must co'ntain a full description of the applicant's security program to protect i
against theft, unauthorized viewing, and unauthorized disclosure of classified matter in accordance with the requirements of 10 CFR Parts 25 and 95.
7.
'In S 70.32, paragraph (c)(1) is' revised to_' read as follows:
6 70.32 Conditions of license.
l a-(c)(1) Each license authorizing the possession and use at any one time and location of uranium source material or special nuclear material-in a quantity exceeding one effective -kilogram, except' for use as sealed sources and those uses involved in the operation of a nuclear reactor 18
_. _.. _ -. _ _ _ _.. _ _ _ _. _. ~ _ _
- t licensed pursuant to Part 50 of this chapter and those involved in a waste disposaloperation,shallcontainandbesubjecttoaconditionrequiring i
the licensee to maintain and follow:
(i) The program for control and accounting of uranium source material or special nuclear material and fundamental nuclear material controls implementedpursuanttoSS70.22(b),70.58(1),74.31(b),74.33(b),or 74.51(c)(1) of this chapter, as appropriate; (ii) The measurement control program for uranium source material or special nuclear material control and accounting imolemented pursuant to SS 70.57(c), 74.31(b), 74.33(b), or 74.59(e) of this chapter, as appropriate; and (iii) Such other material control procedures as the Commission determines to be essential for the safeguarding of uranium source material or of special nuclear material and providing that the licensee shall make no change that would. decrease the effectiveness of the material control and accounting programimplementedpursuanttoSS70.22(b),70.58(1),70.51(g),74.31(b),
74.33(b),or74.51(c)(1)ofthischapterandthemeasurementcontrolprogram implemented pursuant to SS 70.57(c), 74.31(b), 74.33(b), or 74.59(e) of this chapter without the prior approval of the Commission.
A licensee desiring to make such changes shall submit an application for amendment to its license pursuant to S 70.34.
l 8.
In S 70.51, paragraph (b) is revised to read as follows:
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' S 70.51 Material balance, inventory, and records requirements.
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(b) Licenseessubjecttotherecordkeepingrequirementsof$$74.31, 74.33 and 74.59 of this chapter are exempt from the requirements of S 70.51(b)(1) through (5).
PART 74:
MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL 9.
The authority citation for Part 74 is revised to read as follows:
AUTHORITY:
Secs. 53, 57, 161, 182, 183, 68, Stat. 930, 932, 948, l
953, 954, as amended -Sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2073, 2077, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 206, 88 Stat.
j 1242, as amended, 1244, 1246, (42 U.S.C. 5841, 5842, 5846).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); $$ 74.17, 74.31, 74.51, 74.53, 74.55, 74.57, 74.59, 74.81, and 74.82 l
are issued under secs. 161b and 1611, 68 Stat. 948, 949, as amended (42 j
V.S.C. 2201(b); and 2201(1)); and $6 74.11, 74,13, 74.15, and 74.17, are issued under Sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
j 10.
Section 74.1 is revised to read as follows:
6 74.1-Purpose.
(a) This part has been established to contain the requirements for the control and accounting of special nuclear material at fixed sites a'nd for documenting the transfer of.special nuclear materials. General-reporting requirements as well as specific requirements for certain licensees possessing special nuclear material of low strategic significance and formula quantities of strategic special nuclear material are included.
Requirements for the 20
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l control and accounting of source material at enrichment facilities are also included.
The specific control and accounting requirements for other licensees are contained in SS 70.51, 70.57, and 70.58 of this chapter.
(b) The general conditions and procedures for the submittal of a license application for the activities covered in this part are detailed in S 70.22 of this chapter.
i 11.
In S 74.2, paragraphs (b) and (c) are revised to read as follows:
S 74.2 Scope.
A A
A A
A (b)
In addition, specific control and accounting requirements are included for certain licensees who:
l (1) possess and use formula quantities of strategic special nuclear
- material, (2) possess and use special nuclear material of low strategic significance, or (3) possess uranium source material and equipment capable of producing enriched uranium.
l (c) Specific control and accounting requirements for special nuclear l
L material of moderate strategic significance and for miscellaneous categories of licensees who possess special nuclear material are contained in SS 70.51, l
70.57, and 70.58 of this chapter.
a a
a a
l 12.
In S 74.4, the term " batch" is added to read as follows:
l 21
_._._.3 S 74.4 Definitions.
a Batch means a portion of source material or special nuclear material handled as a unit for accounting purposes at a key measurement point and for which the composition and quantity are defined by a single set of measurements.
The source material or special nuclear material may be in bulk form or contained in a number of separate items.
13.
In S 74.8, paragraph (b) is revised _ to read as follows:
S 74.8 Information collection requirements; OMB cpproval.
(b) The approved information collection requirements contained in this part appear in SS 74.11, 74.13, 74. 31, 74. 33, 74. 51, 74. 57, and 74. 59.
a a
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l' d i 14.
In S 74.11, the section heading and paragraph (a) are revised to read as follows:
o S 74.11 Reports of loss or theft or attempted theft or unauthorized i
L L
production of special nuclear material.
(a)_ Each licensee who possesses _one gram or more of contained L
-uranium-235, uranium-233, or plutonium shall notify the NRC Operations i
Center within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of discovery of any loss or theft or other unlawful I
l diversion of special nuclear material which the licensee is licensed to possess, or any incident in which an attempt has been made to commit a b
22
. - - =.
theft or unlawful diversion of special nuclear material.
Each licensee who operates a uranium enrichment facility shall notify the NRC Operations Center within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of discovery of any production of uranium enriched 235 to 10 percent or more in the isotope U or unauthorized production of uranium of low strategic significance.
For centrifuge enrichment facilities the requirement to report enrichment levels greater than that authorized by license within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> does not apply to each cascade during its startup process, not to exceed the first 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />.
The requirement does not pertain to measured discards or inventory difference quantities.
a a
-15.
Section 74.17 is revised to read as follows:
$ 74.17 Special nuclear material physical inventory summary report.
(a) Each licensee subject to the requirements of 6 74.31 or S 74.33-shall submit a completed Special Nuclear Material Physical Inventory Summary
' Report on NRC Form 327 not later than 60 calendar days from the start of the physical inventory required by S.74.31(c)(5) or S 74.33(c)(4) of this chapter.
The licensee shall report the inventory results by plant and total facility to the Director, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Vashington, DC 20555.
(b) Each licensee subject to the requirements of S 70.51(e) of this-chapter shall submit a completed Special Nuclear Material Physical Inven-tory Summary Report on NRC Form 327 not later than 30 calendar days from the start of the physical inventory required by S 70.51(e)(3) of this chapter.
The licensee shall report the inventory results by plant and total facility 23
t to the Director, Office of Nuclear Material Safety and Safeguards, U.S.
Nuclear Regulatory Commission, Washington, DC 20555.
(c) Each licensee subject to the requirements of 6 74.51 shall sub-mit a completed Special Nuclear Material. Physical Inventory Summary Report on NRC Form 327 not later than 45 calendar days from the start of the physical inventory required by S 74.59(f).
The licensee shall report the inventory results by plant and total facility to the Director, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, 16.
A new $ 74.33 is added to read as follows:
$ 74.33 Nuclear material control and accounting for uranium enrichment heilities authorized to produce special nuclear material of low strategic significance.
(a) General performance objectives.
Each licensee who is authorized by this chapter to possess equipment capable of enriching uranium or operate an enrichment facility, and produce, possess, or use more than one effective kilogram of special nuclear material of low strategic significance at any site or contiguous sites, subject to control by the licensee, shall establish, implement,-and maintain a Commission-approved material control and accounting system that will achieve the following objectives:
(1) Maintain accurate, current, and reliable knowledge of source material and special nuclear material; n
(2). Protect against and detect any production of uranium enriched to 10. percent or more in the isotope U235; 24 er--
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(3) Protect against and detect unauthorized production of uranium of low strategic significance; (4) Resolve indications of missing uranium; (5) Resolve indications of any production of uranium enriched to 10 percent or more in the isotope U235; and (6) Resolve indications of unauthorized production of uranium of low strategic significance.
(b) I,mplementation dates.
Each applicant for a license who would, upon issuance of a license pursuant to any part of this chapter, be subject to the requirements of paragraph (a) of this section shall:
(1) No later than 2 years prior to facility start up, submit a funda-mental nuclear material control plan describing how the performance objectives of S 74.33(a) and the system features and capabilities of 6 74.33(c) will'
- be met; and (2) Implement the NRC approved plan submitted pursuant to paragraph (b)(1) of this section prior to (a) receipt of more than a total of 5,000 235 grams of U contained in natural, depleted, or enriched uranium or (b) HRC's issuance of'a license to test or operate the enrichment facility.
(c) System features and capabilities. To meet the general perfor-mance objectives of paragraph (a) of this section, the Material Control and Accounting (MC&A) system must include the features and capabilities described in paragraphs (c)(1).through (8) of this section.
The licensee shall establish, document, and meintain:
(1) A management structure that ensures:
(i) clear overall responsibility for MC&A functions; (ii) independence of MC&A management from production responsibilities; 25
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(iii) separation of key MC&A responsibilities from each other; and (iv) use of approved written MC&A procedures and periodic review of those procedures; (2)_ A measurement program that ensures that all quantities of source material and special nuclear material in the accounting records are based on accurately measured values; (3) A measurement control program that ensures that:
(i) measurement bias is estimated and minimized through the measurement control program', and any significant biases are eliminated from inventory difference values of record; L
(ii) all MC&A measurement systems are controlled so that twice the l
standard error of the' inventory difference is less than the greater of 235 5,000 grams of U or 0.25 percent of the active inventory for each total plant material balance; and (iii) any measurements performed under contract are controlled so L
that=the licent-
- an satisfy _these requirements; L
(4) An inventory program that ensures that accurate, current, and reliable knowledge'of source and special nuclear materia'l-is-maintained, and that includes:
~
(i), performing, unless otherwise required to satisfy Part 75 of this chapter, a dynamic (nonshutdown) physical inventory of in process uranium 235 and U at least every 65 days, and performing a static physical inventory 235 of all other uranium and total U contained in natural, depleted, and enriched. uranium located outside of the enrichment processing equipment at least every 370 calendar days, with static physical inventories being conducted in conjunction with a-dynamic physical inventory of in process 26
235 uranium and U so as to provide a total plant material balance at least every 370 calendar days; and (ii) reconciling and adjusting the book inventory to the results of the static physical inventory and resolving, or reporting an inability to
^
- resolve, any inventory difference that is rejected by a statistical test which has a 90 percent power of detecting a discrepancy of a quantity cf 235
)
U established by HRC on a site-specific basis within 60 days after the k
start of each static physical inventory;
'g (5) A detection program, independent of production, that provides high assurance of detection of any:
235 (i) production of uranium enriched to 10 percent or more in the U isotope in any product stream, and (ii) unauthorized production of uranium of low strategic significance; (6) An item control program that ensures that:
(i) current knowledge is maintained of items that exist for 14 or 235 more calendar days with respect to identity, uranium and U
- content, and stored location, and (ii) items are stored and handled, or subsequently measured, in a 235 manner so that the amount of U involved in any unauthorized removal of items or uranium from items greater than 500 grams will be detected.
Exempted are licensee-identified items each containing less than 500 grams U
up to a cumulative total of 50 kilograms of U235; 235 (7) A resolution program that ensures that any shipper-receiver differences are resolved that are statistically significant and exceed 235 500 grams U on:
(i) en individual batch basis; and 27
L, (ii) a total shipment basis for all source material and special nuclear material; and (8) An assessment program that; (i) independently assesses the effectiveness of the MC&A system at least every 24 months, (ii) documents the results of the above assessment, (iii) documents management's findings on whether the MC&A system is currently effective, and (iv) documents any actions taken on recommendations from prior assessments.
(d) Recordkeeping.
(1) Each licensee shall establish records that will demonstrate that the performance objectives of paragraph (a) and the systam features and capabilities of paragraph (c) of this section have been met and maintain these records in an auditable form, available for inspection, for at least 3 c-,, uninss a longer retention time is required by Part 75 of this chapter.
(2) Records that must be maintained pursuant to this part may be the original or a reproduced copy or a microform if such reproduced copy or micrchrm is duly authenticated by authorized personnel and the microform is capable of producing a clear and legible copy after storage for the period specified by Commission regulations.
The record may also be stored in electronic media with the capability for producing, on demand, legible, accurate, and complete records during the required retcation period.
Records such as letters, drawings, and specifications must include all pertinent information such as stamps, initials, and signatures.
28
6 (3) The licensee shall maintain adequate safeguards against tampering with and loss of records.
Dated at Rockville, Maryland, this 11th day of December,1990.
For the Nuclear Regulatory Comission.
(w u.
Samuel J. Chihk,
__w Secretary of the Commission e
29