ML20029D312

Forwards Proposed Rulemaking Package on Conforming Amends to 10CFRs for U Enrichment Regulation,For Action

ML20029D312
Person / Time
Issue date:	07/12/1991
From:	Beckjord E NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES)
To:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
Shared Package
ML19352C222	List: ML20028H620 ML20029C487 ML20029C488 ML20029C489 ML20029D300 ML20029D305 ML20029D308 ML20029D312 ML20029D313 ML20029D316 ML20029D321 ML20029D322 ML20029D328 ML20029D331 ML20029D333 ML20029D337 ML20029D338 ML20029D343
References
FRN-56FR46739, RULE-PR-110, RULE-PR-140, RULE-PR-150, RULE-PR-170, RULE-PR-2, RULE-PR-40, RULE-PR-50, RULE-PR-51, RULE-PR-70, RULE-PR-75 AD90-1-008, AD90-1-8, NUDOCS 9405050097
Download: ML20029D312 (72)

Text

{{#Wiki_filter:. /1Alsen 96 JUL 121991 g, g., ; g MEMORANDUM FOR: James M. Taylor, Executive Director for Operations FROM: Eric S. Beckjord, Director, Office of Nuclear Regulatory ) Research

SUBJECT:

PROPOSED RULEMAKING - CONFORMING AMENDMENTS TO TITLE 10 0F THE CODE OF FEDERAL REGULATIONS FOR URANIUM ENRICH-MENT REGULATION -) The subject proposed rulemaking package is enclosed for your action. The rulemaking was initiated as high priority per your approval dated March 7, 1991 (WITS No. 9100067). The resources for this rulemaking (approximately 0.5 FTE during FY 1991-1992) are included in the FY 1992-1996 Five Year Plan (FYP) (See Rule #290 in Table IV.2). Rescurces to review the LES license application for a uranium enrichment facility are included in the FYP. The Commission paper and the proposed rule, as enclosed, have been reviewed, and appropriate concurrences have been obtained from the Offices of the Controller, Enforcement, Administration, Governmental and Public Affairs, and Nuclear Material Safety and Safeguards. The Office of the General Counsel has no legal objections. The Office of the Controller has reviewed the resource-related considerations of this rulemaking. ORIGINAL SIGNED BY Eric S. Beckjord, Director Office of Nuclear Regulatory Research

Enclosure:

Rulemaking Package See next page for Distribution

• See previous concurrence 0FFC:RP

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1 1 l DISTRIBTVION: RPHEB R/F - DCool Cir./Chron EBeckjord CJHeltemes BMorris NCostanzi ASumerour (RES No. 910142) l WITS No. 9100067 l 1 i

MEMORANDUM FOR: James M. Taylor, Executive Director for Operations FROM: Eric S. Beckjord, Director, Office of Nuclear Regulatory Research

SUBJECT:

PROPOSED RULEMAKING - CONFORMING AMENDMENTS TO TITLE 10 0F THE CODE OF FEDERAL REGULATIONS FOR URANIUM ENRICH-MENT REGULATION The subject proposed rulemaking package is enclosed for your action. The rulemaking was initiatedsas high priority per your approval dated March 7, 1991 (WITS No. 9100067). \\ The resources for this rule \\ making to conform NRC regulations to Congressional action are not currently included in the Five Year Plan. Resources were reprogrammed within the Office Kf Nuclear Regulatory Research from the Fuel Cycle, Transportation, and Safeg0grds Program Element. Approximately 0.5 FTE is estimated for the rulemaking. T ese resources and the reprogramming of resources will be reflected in the (nyt Five Year Plan update. Resources to review and license a uranium enrichmen facility are already included in the Five Year Plan under the Fuel Facility d Spent Fuel Storage Licensing and Inspection Program Element, Fuel Facilit Licensing Activities and no changes are required to implement this rulemaking. The Commission paper and the proposed rule, a enclosed, have been reviewed, and appropriate concurrences have been obtsine fiom the Offices of the Controller, Enforcement, Adminhtration, Govern ntai and Public Affairs, and Nuclear Material Safety and bafeguards. The Off e of the General Counsel has no legal objections. The Office of the Controller as eviewed the resource-related considerations of this rulemaking. \\ \\ s s Eric S. Beckjord, Direct'or Office of Nuclear Regulatory Research

Enclosure:

Rulemaking Package -+ i See next page for Distribution f r >v7 0FFC:R DRA RPHEB.:DRA R

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. i NUCLEAR REGULATORY COMMISSION 'o ,8 WASHINGTON. D.C. 20555 ....+ JUL 12 1991 l MEMORANDUM FOR: James M. Taylor, Executive Director for Operations FROM: Eric S. Beckjord, Director, Office of Nuclear Regulatory ( l Research L

SUBJECT:

PROPOSED RULEMAKING - CONFORMING AMENDMENTS TO TITLE 10 l 0F THE CODE OF FEDERAL REGULATIONS FOR URANIUM ENRICH-MENT REGULATION The subject proposed rulemaking package is enclosed for your action. The j rulemaking was initiated as high priority per your approval dated March -7, 1991 (WITS No. 9100067). The resources for this rulemaking (approximately 0.5 FTE during FY 1991-1992) are included in the FY 1992-1996 Five Year Plan (FYP) (See Rule #290 in Table IV.2). Resources to review the LES license application for a uranium enrichment facility are included in the FYP. i The Commission paper and the proposed rule, as enclosed, have been reviewed, l and appropriate concurrences have been obtained from the Offices of the Controller, Enforcement, Administration, Governmental and Public Affairs, and Nuclear Material Safety and Safeguards. The Office of the General Counsel has no legal objections. The Office of the Controller has reviewed the resource-- related considerations of this rulemaking. h r d,, A S A v Eric S. Beckjord, Dirjctor Office of Nuclear Regulatory Research

Enclosure:

Rulemaking Package l

For: The Commissioners From: James M. Taylor, Executive Director for Operations

Subject:

PROPOSED RULEMAKING - CONFORMING AMEN 0MENTS TO TITLE 10 0F i THE CODE OF FEDERAL REGULATIONS FOR URANIUM ENRICHMENT l REGULATION

Purpose:

To obtain Commission approval of the proposed amendments.

Background:

On November 15, 1990, the President signed the " Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990," Public Law 101-575, which, among other things, amended the Atomic Energy Act (the Act) with respect to regulating uranium enrichment facilities. The principal amendment to the Act made by Public Law 101-575 provides that the licensing of uranium enrichment plants will be a single license issued pursuant to 10 CFR Parts 40 and 70, rather than a two-part license issued unde: .3 CFR Part 50. Further, a new Section 193 added to the Act by Public Law 101-575 requires environmental review, adjudicatory hearings, inspection before operation, and liability insurance for licensing a uranium enrichment f acility. Discussion: By memorandum dated December 20, 1990 the Office of Nuclear Material Safety and Safeguards (NMSS), requested that the Office of Nuclear Regulatory Research (RES) initiate a rulemaking to incorporate the provisions of Public Law 101-575 pertaining to regulating uranit;m enrichment facilities into the regulations. Accordingly, this paper proposes amendments to 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170, which are conforming in nature, to implement the amendments made to the Act by Public Law 101-575. CONTACT: C. W. Nilsen, RES (301) 492-3834

The Commissioners 2 Subsequent to the above request, on January 31, 1991, NMSS received the anticipated application from Louisiana Energy Services (LES) for a license to construct and operate a facility for enrichment of uranium using the gas centrifuge process. The staff and 0GC do not foresee any procedural obstacles for the LES license application proceeding that cannot be accommodated within existing Commission procedures. Nevertheless, 0GC has advised the staff that this conforming rulemaking should be undertaken with the goal of making the final rule effective before the mandatory hearing on the LES license application is expected to be completed (July 1992). A staff paper in response to COMFR-91-003 " Resumption of Rulemaking on Uranium Enrichment Facilities," dated May 31, 1991, is currently being prepared. As requested, the staff will " analyze the impact on existing agency priority activities of resuming the rulemaking effort" on a new 10 CFR Part 76 pertaining only to the licensing of uranium enrichment facilities. In view of the OGC recommendation that these conforming amendments should be in place before the hearing on the LES license application, I believe that any rulemaking effort on a new 10 CFR Part 76 should be separate from the attached rulemaking. If it is decided that rulemaking should be resumed on a new Part 76, the effective changes of the attached rulemaking would be appropriately incorporated in the new part, along with consideration of other appropriate requirements from the existing regulations. The resources for this rulemaking (approximately 0.5 FTE during FY 1991-1992) are included in the FY 1992-1996 Five Year Plan (FYP) (See Rule #290 in Table IV.2). Resources to review the LES License application for a uranium enrichment facility are included in the FYP. l Coordination: The Office of Governmental and Public Affairs concurs in this l proposed rulemaking. The Office of General Counsel has reviewed this proposed rulemaking and has no legal objections. The Office of the Controller has reviewed the resource-related considerations of this rulemaking. Recommendation: That the Commission: l 1. Approve for publication the Notice of Proposed Rulemaking TEnclosure A) for a 75-day public comment period. 2. Certify that this rule, if adopted, would not have a significant economic impact on a substantial number of small entities in order to satisfy the requirements of the Regulatory Flexibility Act (5 U.S.C. 605(b)). l l

i The Commissioners 3 3. Note: (a) That a regulatory analysis has been prepared for this rulemaking action (Enclosure B). (b) That neither an environmental impact statement nor an environmental assessment and finding of.no i significant impact has been prepared for this proposed rule because it meets the criteria for a categorical exclusion under 10 CFR 51.22(c)(1) and (3). (c) That the Subcommittee on Nuclear Regulation of the Senate Committee on Environment and Public Works and the Subcommittee on Energy and Power of the House Committee on Energy and Commerce and the House Committee on Interior and Insular Affairs will be informed of this rulemaking action (Enclosure C). (d) That the proposed rule does not contain new or amended information collection requirements subject to the Paperwork Reduction Act. (e) That the Chief Counsel for Advocacy of the Small Business Administration will be informed of the certification and the reasons for it as required j by the Regulatory Flexibility Act. l (f) That a public announcement will be issued (Enclosure D). (g) That a copy of the proposed rule will be distributed to all affected licensees and other interested persons. James M. Taylor Executive Director for Operations

Enclosures:

A. Federal Register Notice of Proposed Rulemaking B. Draf t Regulatory Analysis C. Congressional Letters D. Draft Public Announcement

The Commissioners 4 3. Note: (a) That a regulatory analysis has been prepared for this rulemaking action (Enclosure.B). (b) That neither an environmental impact statement nor an environmental assessment and finding of no significant impact has been prepared for this proposed rule because it meets the criteria for a categorical exclusion under 10 CFR 51.22(c)(1) and (3). (c) That the Subcommittee on Nuclear Regulation of the Senate Committee on Environment and Public Works and the Subcommittee on Energy and Power of the House Committee on Energy and Commerce and the House Committee on Interior and Insular Aff airs will be informed of this rulemaking action (EnclosureC). (d) That the proposed rule does not contain new or amended information collection requirements subject to the Paperwork Reduction Act. (e) That the Chief Counsel for Advocacy of the Small Business Administration will be informed of the certification and the reasons for it as required by the Regulatory Flexibility Act. (f) That a public announcement will be issued (Enclosure D). (g) That a copy of the proposed rule will be distributed to all affected licensees and other interested persons. James M. Taylor Executive Director for Operations

Enclosures:

A. Federal Register Notice of Prop'osed Rulemaking B. Draft Regulatory Analysis C. Congressional Letters D. Draft Public Announcement

• See previous concurrences 0FFC:RPHEB:DRA*

RPHEB:DRA* RPHEB:DRA* DD:DRA* D:DRA* OA* 00 NAME:CNilsen:dm:1b JWang DCool FCostanzi BMorris EHalman HHiller DATE:07/05/91 07/05/91 07/05/91 07/08/91 07/08/91 5 /20 /91 5 /30 /91 DD/sfk:RES D:RES 0FFC:GPA* OE* OGC* NMSS+ G NAME:HDenton JLieberman STreby RBernero CJHel.temes EBeckjord DATE:7 /01/91 5/29/91 5/29/91 5 /29 /91 / /91 / /91 0FFC:EDO NAME:JTaylor DATF- / /41 0FFJ C T AI RFCORD COPY

The Commissioners 3 (c) That the Subcommittee on Nuclear Regulation of the Senate Committee on Environment and Public Works and the Subcommittee on Energy and Power of the House Conmittee on Energy and Commerce and the House Committee on Interior and Insular Affairs will be informed of this rulemaking' action (Enclosure C). (d) That the proposed rule does not contain new or amended information collection requirements subject to the Paperwork Reduction Act. (e) That the Chief Counsel for Advocacy of the Small Business Administration will be informed of the i certification and the reasons for it'as required by the Regulatory Flexibility Act. (f) That a public announcement will be issued (Enclosure D). (g) That a copy of the proposed rule will be distributed to all affected licensees and other interested persons. James M. Taylor Executive Director for Operations

Enclosures:

A. Federal Register Notice of Proposed Rulemaking B. Draf t Regulatory Analysis C. Congressional Letters D. Draft Public Announcement See next page for Distribution /,s

• See previous concurrences

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The Commissioners 3 ( That the proposed rule does not contain new or amended information collection requirements subject to the Paperwork Reduction Act. (e) That the Chief Counsel for Advocacy of the Small Business Administration will be informed of the certification and the reasons for it as required by the Regulatory Flexibility Act. .(f) That a public announcement will be issued (Enclosure D). g) That a copy of the propo' sed rule will be distributed to all affected licensees and other interestedpersons/ i [ExecutiveDirector James M. Taylor j for Operations

Enclosures:

A. Federal Register Notice / g of Proposed Rulemaking' \\ B. Dra't Regulatory Analys'is C. Cor.gressiona l Letters , N \\ D. Draft Public Announc,ement \\ 4 /l j l fklBWLTsen:dm:lb kJ a%B:DRA I 0FFC: R D DD:DRA D:DRA 0A OC NAME-ng 01 FCostanzi BMorris EHalman HHiller DATE: / /91 //r /91 V//9 /91 / /91 / /91 / /91 / /91 0FFC:GPA OE OGC NMSS DD/GIR:RES D:RES NAME:HDenton JLieberman STreby RBernero CJHeltemes EBeckjord DATE: / /91 / /91 / /91 / /91 / /91 / /91 0FFC:EDO NAME:JTaylor DATE: / /91 0FFICIAL RECORD COPY

-. = - = -. The Commissioners 5 1 1 Distribution NILSEN/COM. PAPER / URANIUM (5520) RPHEB R/F - DCool Cir./Chron ED0 R/F JMTaylor STreby, OGC RFonner, 0GC PLoysen, NMSS (MS-6H3) EHalman, OA i HHiller, OC HDenton, GPA JLieberman, OE EBeckjord CJHeltemes BMorris FCostanzi JWang CNilsen

1 Document flame: tilLSEN/COM. PAPER /URAtl10M Requestor's ID: YOUNG Author's Name: RES i i Document Comments: RES Format: Commission Paper i 2 1 I 2 f I h 9 i 2 ..,;_1.,,.v,, ...,,,,.I

1 j ENCLOSURE A Federal Register Notice of Proposed Rulemaking i I

4 i I [7590-01] NUCLEAR REGULATORY COMMISSION 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170 .RIN 3150-AD90 Uranium Enrichment Regulations AGENCY: Nuclear Regulatory Commission. ACTION: Proposed rule.

SUMMARY

The Nuclear Regulatory Commission (NRC) is proposing to amend its i

regulations concerning the licensing of uranium enrichment f acilities to reflect changes made to the Atomic Energy Act of 1954, as amended (the Act) by the Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990. The principal effect of these amendments is that uraniuin enrichment f acilities will be licensed subject to the provisions of the Act pertaining to source material and special nuclear material rather than under the provisions pertaining to a production facility. DATE: Comment period expires (75 days f rom the date of publication in the-Federal Register). Comments received af ter this date will be considered if it 1

is practical to do so, but the NRC is able to assure consideration only for commnts received on or before this date. ADDRESSES: Mail written comments to the Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Attention: Docketing and Service Branch. Deliver comments to One White Flint North,11555 Rockville Pike, Rockville, MD, between 7:45 am and 4:15 pm Federal workdays. Copies of the draft regulatory analysis and comments received may be examined at the NRC Public Document Room, 2120 L Street NW. (Lower Level), Washington, DC. l 1 FOR FURTHER INFORMATION CONTACT: Mr. C. W. Nilsen, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555, j telephone (301) 492-3834, or Mr. P. Loysen, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301)492-0685. SUPPLEMENTARY INFORMATION: i

Background

i On November 15, 1990, the President signed the " Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990," Pub. L.101-575, which, among other things, amended the Atomic Energy Act (the Act) with respect to the licensing of uranium enrichment f acilities. The principal effect of these changes is that uranium enrichment facilities will be licensed pursuant to the provisions of the Act pertaining to source material and special nuclear material rather than the provisions pertaining to a production facility. 2

j i \\ 1 l Under the new provisions, licensing of uranium enrichment facilities will become f a single step licensing process with one license issued pursuant to 10 CFR Parts 40 and 70 rather than a two-part licensing process under 10 CFR Part 50. However, amendments to the Act which address the licensing of uranium enrichment 4 facilities also mandate an environmental review, adjudicatory hearing, inspection before operation, and third party liability insurance. Also, uranium enrichment [ facilities remain production facilities for other purposes of the Act such as f controlling the export of specially designed or prepared uranium enrichment 1 l equipment and preservation of Federal authority in Agreement States. n 1 j Proposed Action The Commission is proposing this rulemaking, which is essentially conforming in nature, to amend 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170 as required to implement Section 5 of Pub. L. 101-575. Section 5 of Pub. L. 101-575 amended the Act to remove uranium enrich-ment f acilities from consideration as production facilities for the purposes of Chapters 10 and 16 of the Act. As a result, licensing of uranium enrichment facilities will be subject to the procedural licensing provisions of the Act for source material and special nuclear material under 10 CFR Parts 40 and 70 with the addition of new requir m nts concerning facility construction and operation. To reflect Pub. L. 101-5'/5, the addition of a definition for uranium enrichment facility is being proposed that would include both (1) a facility used for separating the isotopes of uranium or enriching uranium in the isotope 235 and (2) any equipment or device capable of such action. The new definition continues to exclude laboratory scale facilities designed or used for experimental or analytical purposes from licensing as a uranium enrichment facility as was 3

l the case prior to enactment of Pub. L. 101-575. However, commercial laboratory scale enrichment would be a licensed activity, and licensees would be required l to have appropriate source material and special nuclear material licenses and to comply with all applicable regulations. Uranium enrichment facilities remain production facilities for chapters l other than Chapter 10, " Atomic Energy Licenses," and Chapter 16, " Judicial Review and Administrative Proceaure," of the Act. Therefore, there is no change for purposes of controlling the export of specially designed or prepared uranium enrichment equipment and the preservation of Federal authority over uranium enrichment licensing in Agreement States. To conform with the changes added to the Act by Pub. L. 101-575, the proposed amendments contain five (5) new licensing requirements specific to the licensing of uranium enrichment facilities. The amendments to 10 CFR Chapter I which dre neCessary to implement these requirements include: The requirement to conduct a single adjudicatory hearing before issuance of a license for construction and operation (proposed SS 40.33 and 70.23a); The requirement prohibiting issuance of a license to allow construction and operation until a hearing is completed and a decision issued (proposed sf 40.32(g) and 70.31(e)); The equirement that an Environmental Impact Statement (EIS) be prepared in accordance with the National Environmental Policy Act before the licensing hearing is completed (See ss 40.31(k), 51.97(c), and 70.21(h)); The requirement that prior to coninencement of operation the Commission verify by inspection that the facility has been constructed in accordance with the license, and publish a notice of the inspection results in the Federal Register (proposed SS 40.41(g) and 70.32(k)); and The requirement that the licensee carry public liability insurance dgdinst bodily injury, siCtness, disease, death, loss of or damage to property, 4

l dnd loss of use of property arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of chemical compounds containing source material or special nuclear material. The insurance requirement specifically includes the chemical toxicity risks associated with uranium hexafluoride (proposed ll 40.32(g), 70.23(a)(12), and 140.13b). A number of minor conforming changes to the provisions of 10 CFR Chapter I are proposed to implement the amendments to the Act. Of specific note is the fee category change in 10 CFR Part 170. This change will be appropriately incorporated into the final 10 CFR Part 170 rulemaking entitled " Revision of Fee Schedules: 100 percent Fee Recovery (3150-A087)." Environmental Impact: Categorical Exclusion The NRC has determined that this prcrosed regulation is the type of action described as a categorical exclusion in 10 CFR 51.22(c)(1) and (3). Therefore, neither an environmental impact statement nor on environmental assessment hos been prepared for this proposed regulation. Paperwork Reduction Act Statement This proposed rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This rule has been submitted to the Office of Management and Budget for review and approval of the paperwork requirements. 5

a Public reporting burden for this collection of information is estimated to average 60,000 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the j l Information and Records Management Branch (MNBB-7714), U.S. Nuclear Regulatory i Commission, Washington, DC 20555; and to the Desk Officer, Office of Information and Regulatory Affairs, NE08-3019 (3150-0020, -0011, -0021, -0009,-0055,-0036,-0039,-0032), Office of Management and Budget, l Washington, DC 20503. 1 Draf t Regulatory Analysis The Commission has prepared a draf t regulatory analysis on this proposed regulation. The analysis examines the costs and benefits of the alternatives considered by the Commission. The draf t analysis is available for inspection at the NRC Public Document Room, 2120 L Street f1W. (Lower Level), Washington, DC. Single copies of the analysis may be obtained from Mr. C. W. Nilsen, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 492-3834. The Commission requests public comments on the draf t regulatory analysis. Comments on the draft analysis may be submitted to the NRC as indicated under j the ADDRESSES heading. 6

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 for producing enriched uranium. The owners of enrichment facilities do net fall within the scope of the definition of "small entities" set forth in Suction 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. Backfit Analysis The NRC has determined that the backfit rule,10 CFR 50.109, does not apply to this proposed rule. Thus, a backfit analysis is not required for these amendments because t;1ey do not invo',ve any provisions that would impose backfits as defined in 10 CFR 50.109(a)(1). List of Subjects Part 2 - Administrative practice and procedure, 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 - Criminal penalty, Government contracts, Hazardous materials - transportation, Nuclear materials, Reporting an recordkeeping requirements, Source material, Uranium. 7

Part 50 - Antitrust, Classification information, Criminal penalty, Fire protection, Incorporation by reference, Intergovernmental relations, Nuclear power plants and reactors, Radiation protection, Reactor siting criteria, Reporting and recordkeeping requirements. Part 51 - Administrative practice and procedure, Environmental impact statement, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements. Part 70 - Criminal penalty, Hazardous materials - trar.sportation, Nuclear materials, Packaging and containers, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material. Part 75 - Criminal penalty, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Security measures. Part 110 - Administrative practice and procedure, Classified information, Criminal penalty, Export, import, Incorporation by reference, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Scientific equipment. Part 140 - Criminal penalty, Extraordinary nuclear occurrence. Insurance, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements. Part 150 - Criminal penalty, Hazardous materials - transportation, Intergovernmental relations, Nuclear materials, Reporting and recordkeeping requirements, Security measures, Source material, Special nuclear materiul. Part 170 - Byproduct material, Non payment penalty, Nuclear materials, Nuclear power plants and reactors, Source material, Special nuclear material. i 1 8

\\ For the reasons set forth in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to adopt the following conforming amendments to 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170. PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS 1. The authority citation for Part 2 is revised to read as follows: AUTHORITY: Secs. 161, 181, 68 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, Stat. 2213, as amended (42 U.S.C.10134(f)); sec.102, Pub. L. 91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 88 St6t. 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). Sec. 193 Pub. L. 101-575, 104 Stat. 2835 (42 U.S.C. 2243). Section 2.105 also issued under Pub. L. 97-415, 96 Stat. 2073 (42 U.S.C. 2239). Section 2.200-2.206 also issued under secs. 186, 234, 68 Stat. 955, 83 Stat. 444, as amended (42 U.S.C. 2236, 2282); sec. 206, 88 Stat. 1246 (42 i 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 9

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 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 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 U.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 i 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.). SOURCE: 27 FR 377, Jan. 13, 1962, unless otherwise noted. EDITORIAL NOTE: For nomenclature changes to this part, see 45 FR 14200, Mar. 5, 1980. 2. In 5 2.104, paragraph (b)(2) is revised to read as follows: 5 2.104 Notice of hearing. (b) * (2) That, if the proceeding is not a contested proceeding, the presiding officer will determine (i) without conducting a de novo evaluation of the 10

application, whether the application and the record of the proceeding contain sufficient information, and the review of application by the Commission's staff has been adequate to support affirmative findings on (b)(1) (i) through (iii) specified in this section and a negative finding on (b)(1)(iv) specified in this section proposed to be made and the issuance of the construction permit proposed by the Director of fluclear Reactor Regulation or Director of tiuclear i Material Safety and Safeguards, as appropriate, and (ii) if the application is i for a construction permit for a nuclear power reactor, a testing facility, a fuel processing plant, a uranium enrichment f acility, or other facility whose l construction or operation has been determined by the Commission to have a l significant impact on the environment, whether the review conducted by the Commission pursuant to the fiational Environmental Policy Act (flEPA) has been adequate. l l 1 PART 40--00MESTIC LICEt4S!!4G 0F SOURCE MATERI AL 3. The authority citation for Part 40 is revised to read as follows: AUTHORITY: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, l 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); sec.193,104 Stat. 2835 (42 U.S.C. 2243). 11 ~ .~

4 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.184, 68 Stat. 954, as ame ded (42 U.S.C. 2234). Section 40.71 also issued under sec.187, 68 Stat. 955 (42 U.S.C. 2237). For the purpose of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); 55 40.3, 40.7(g), 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 sg 40.5,40.9,40.25(c),(d)(3),and(4),40.26(c)(2),40.35(e),

t 40.42, 40.61, 40.62, 40.64, and 40.65 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

4 In s 40.4, the term " Uranium Enrichment Facility" is added to read as follows: i % 40.4 Definitions. Uranium enrichment f acility means: (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experimental or analytical purposes only; or 12

(2) Any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235. j + + s + 5. Section 40.5 is amended by adding paragraph (b)(1)(vi) to read as follows: j S 40.5 Communications. (b) (1) (vi) Uranium enrichment facilitics. 6. Section 40.31 is amended by adding paragraphs (k) and (1) to read as follows: s 40.31 Applications for specific licenses. + + + l l 1 13

(k) A license application for a uranium enrichment facility must be accompanied by an Environmental Report required under Subpart A of Part 51 of this chapter. (1) A license application that involves the use of source material in a uranium enrichment facility must include the applicant's provisions for public liability insurance. 1 7. Section 40.32 is amended by revising paragraph (e) and adding paragraph (g) to read as follows: 9 40.32 General requirements for issuance of specific licenses. (e) In the case of an application for a license for a uranium enrichment facility, or for a license to possess and use source and byproduct material for uranium milling, production of uranium hexafluoride, or for the conduct of any other activity which the Commission determines will significantly affect the quality of the environment, the Director of Nuclear Material Safety and Safeguards or his designee, before commencement of construction of the plant or facility in which the activity will be conducted, on the basis of information filed and ev51uations made pursuant to Subpart A of Part 51 of this chapter, has concluded, after weighing the environmental, economic, technical and other benefits against environmental costs and considering available a?.ternatives, that the action called for is the issuance of the proposed license, with any 14

l appropriate conditions to protect environmental values. Commencement of l l construction prior to this conclusion is grounds for denial of a license to possess and use source and byproduct material in such plant or facility. As used in this paragraph, the term " commencement of construction" means any 4 clearing of land, excavation, or other substantial action that would adversely affect the environment of a site. The term does not mean site exploration, roads necessary for site exploration, borings to determine foundation j conditions, or other preconstruction monitoring or testing to establish background information related to the suitability of the site or the protection of environmental values. + l (g) Where the proposed activity involves use of source material in a uranium enrichment facility, the applicable provisions of Part 140 of this chapter have been satisfied. 8. A new @ 40.33 is added to read as follows: 9 40.33 Issuance of a license for a uranium enrichment f acility. (a) The Commission will hold a hearing pursuant to 10 CFR Part 2, j Subparts A, G and I, on each application with regard to the licensing of the construction and operation of a uranium enrichment facility. The Commission will publish public notice of the hearing in the Federal Register at least 30 days before the hearing. 15

(b) A license for a uranium enrichment facility may not be issued before the hearing is completed and a decision issued on the application. 9. Section 40.41 is amended by adding paragraph (g) to read as follows: 5 40.41 Terms and conditions of licenses. (g) No person shall commence operation of a uranium enrichment facility until the Commission verifies through inspection that the facility has been constructed in accordance with the requirements of the license. The Commission shall publish notice of the inspection results in the Federal Register. 10. In 9 40.65, the introductory text of paragraph (a) is revised to read as follows: % 40.65 Effluent monitoring reporting requirements. j (a) Each licensee authorized to possess and use source material in uranium milling, in production of uranium hexafluoride, or in a uranium enrichment facility shall: f 16

PART 50--DOMESTIC LICENSING 0F PRODUCTION AND UTILIZATION FACILITIES

11. The authority citation for Part 50 continues to read as follows:

AUTHORITY: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 Stat. 936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat. 1244, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239, 2282); secs. 201, as amended, 202, 206, 88 Stat.1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846). Section 50.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 50.10 also issued under secs. 101, 185, 68 Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec.102, Pub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(dd), and 50.103 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections 50.33a, 50.55a and Appendix Q also issued under sec. 102, Pub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued under sec. 204, 88 Stat.1245 (42 U.S.C. 5844). Sections 50.58, 50.91, and 50.92 also issued under Pub. L. 97-415, 96 Stat. 2073 (42 U.S.C. 2239). Section 50.78 also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152). Sections 50.80 - 50.81 also issued under sec.184, 68 Stat. 954, as amended (42 U.S.C. 2234). Appendix F 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 50.46(a) and (b), and 50.54(c) are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C. 22Cl(b)); $9 50.7(a), 50.10(a)-(c), 50.34(a) and (e), 50.44(a)-(c), 50.46(a) and (b), 50.47(b), 50.48(a), (c), (d), and (e), 50.49(a), 50.54(a), (i), (i)(1), (1)-(n), (p), (q), (t), (v), and (y). 17

50.55(f), 50.55a(a), (c)-(e), (g), and (h), 50.59(c), 50.60(a), 50.62(c), 50.64(b), and 50.80(a) and (b) are issued under sec.161i, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and ss 50.49(d), (h), and (j), 50.5.4(w), (z), (bb),(cc),and(dd),50.55(e),50.59(b),50.61(b),50.62(b),50.70(a), 50.71(a)-(c) and (e), 50.72(a), 50.73(a) and (b), 50.74, 50.78, and 50.90 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)). 12. In 5 50.2, paragraph (2) of the term " Production Facility" is revised to read as follows: i 9 50.2 Definitions. As used in this part, Production f acility means: (2) Any facility designed or used for the separation of the isotopes of plutonium, except laboratory scale facilities designed or used for experimental or analytical purposes only; or 18

13. In 9 50.33a, paragraph (e) is revised to read as follows: s 50.33a Information requested by the Attorney General for antitrust review, (e) Any person who applies for a class 103 construction permit for a fuel reprocessing plant shall submit such information as may be requested by the Attorney General for antitrust review, as a separate document, as soon as possible and in accordance with $ 2.101 of this chapter. PART 51--ENVIRONMENTAL PROTECTION REGULATIONS FOR DOMESTIC LICENSING AND RELATED REGULATORY FUNCTIONS

14. The authority citation for Part 51 is revised to read as follows:

AUTHORITY: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201); secs. 201, as amended, 202, 88 Stat. 1242, as amended, 1244 (42 U.S.C. 5841, 5842). Subpart A also issued under National Environmental Policy Act of 1969, secs. 102, 104, 105, 83, Stat. 853-854, as amended (42 U.S.C. 4332, 4334, 4335); and Pub. L. 95-604, Title II, 92 Stat. 3033-3041; and Sec. 193, Pub. L. 101-575, 104 Stat. 2835 (42 U.S.C. 2243). Sections 51.20, 51.30, 51.60, 51.61, 51.80, and 51.97, also issued under secs. 135, 141 Pub. L. 97-425, 96 Stat. 19

2232, 2241, and sec.148, Pub. L.100-203,101 Stat.1330-223 (42 U.S.C.10155, j 1 10161,10168). Section 51.22 also issued under sec. 274, 73 Stat. 688, as l amended by 92 Stat. 3036-3038 (42 U.S.C. 2021) and under Nuclear Waste Policy Act of 1982, sec. 121, 96 Stat. 2228 (42 U.S.C. 10141). Secs, 51.43, 51.67, j and 511.09 also issued under Nuclear Waste Policy Act of 1982, sec.114(f), 96 Stat. 2216, as amended (42 U.S.C. 10134(f)). 15. In 5 51.14, the term " Uranium enrichnent facility" is added to read as follows: 5 51.14 Definitions. (a) As used in this subpart: Uranium enrichment f acility means: (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experimental or analytical purposes only; or (2) Any equipnent or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium cr enriching uranium in the isotope 235. 20 i l

16. Section 51.20 is amended by adding paragraph (b)(10) to read as follows: l 5 51.20 Criteria for and identification of licensing and regulatory actions requiring environmental impact statements. l j (b) (10) Issuance of a license for a uranium enrichment facility, 17. Section 51.60 is amended by adding paragraph (b)(1)(vii) to read as follows: 5 51.60 Environmental report - materials licenses, i (b) i (1) (vii) Construction and operation of a uranium enrichment facility.

18. Section 51.97 is amended by adding paragraph (c) to read as follows:

21 j

9 51.97 Final environmental impact statement - materials license, i (c) Uranium enrichment facility. As provided in Section 5(c) of the Solar, Wind, Waste, and Geothermal Power Production incentives Act of 1990 (104 Stat. 2834 at 2835, 42 U.S.C. 2243), a final environmental impact statement raust be prepared before the hearing on the issuance of a license for a uranium i l enrichment facility is completed. PART 70--00MESTIC LICENSING r,c SPECIAL NUCLEAR MATERI AL l l

19. The authority citation for Part 70 is revir.ed to read as follows:

AUTHORITY: Secs. 51, 53,161,182,183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as. amended, 202, 204, 206, 88 Stat.1242, as dmended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846); sec. 193, 104 Stat. 2835 (42 U.S.C. 2243). 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, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 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 22

dmended (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 arnended (42 U.S.C. 2273); 66 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), (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 1610, 68 Stat. 948, 949, and 950, as amended (42 U.S.C. 2201(b), 2201(i), and 2201(o)); 59 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), and 70.58 (a)-(g)(3) and (h)-(j) are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(1)); and $$ 70.5, 70.9, 70.20b(d) 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)). 20. In s 70.4, the term " Uranium enrichment f acility" is added to read as follows: @ 70.4 Definitions. Uranium enrichment facility means: (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experimental or analytical purposes only; or 23

(2) Any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235.

21. Section 70.5 is amended by adding paragraph (b)(1)(vii) to read as follows:

s 70.5 Communications. (b) (1) (vii) Uranium Enrichment Facility. 22. In S 70.8, paragraph (b) is revised to read as follows: 5 70.8 Information collection requirements: OMB approval. (b) The approved information collection requirements contained in this part appear in sh 70.19, 70.20a, 70.20b, 70.21, 70.22, 70.24, 70.25, 70.32, 70.33, 70.34, 70.38, 70.39, 70.51, 70.52, 70.53, 70.57, 70.58, 70.59, and 70.60. 24 tw-w P-+- imp-er-77MwiwTv--1 w +yr++w-- 7P,t-

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4

23. Section 70.21 is amended by revising paragraph (a)(1) and adding paragraph (h) to read as follows:

6 70.21 Filing. (a)(1) A person may apply for a license to possess and use special nuclear material in a plutonium processing or fuel fabrication plant, or for a uranium enrichment f acility license by filing 25 copies of the application with the Director, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555. (h) A license application for a uranium enrichment facility must be dCCompanied by an Environmental Report required under Subpart A of Dart 51 of this chapter. 24 Section 70.22 is amended by adding paragraph (m) to read as follows: 5 70.22 Contents of applications. (m) A license application that involves the use of special nuclear material in a uranium enrichment facility must include the applicant's provisions for public liability insurance. 25

25. Section 70.23 is amended by revising paragraphs (a)(7) and (a)(11) and by adding paragraph (a)(12) to read as follows: 5 70.23 Requirements for the approval of applications. (a) (7) Where the proposed activity is processing and fuel fabrication, scrap recovery, conversion of uranium hexafluoride, uranium enrichment facility construction and operation, or any other activity which the Commission determines will significantly affect the quality of the environment, the Director of Nuclear Material Safety and Safeguards or his designee, before commencement of construction of the plant or f acility in which the activity will be conducted, on the basis of information filed and evaluations made pursuant to Subpart A of Part 51 of this chapter, has concluded, after weighing the environmental, economic, technical, and other benefits against environmental costs and considering available alternatives, that the action called for is the issuance of the proposed license, with any appropriate conditions to protect environmental values. Commencement of construction prior to this conclusion is grounds for denial to possess and use special nuclear material in such plant or f acility. As used in this paragraph, the term " commencement of construction" means any clearing of land, excavation, or other substantial action that would adversely affect the environment of a site. The term does not mean site exploration, roads necessary for site exploration, borings to determine foundation conditions, or other preconstruction monitoring or testing to establish background information related to the suitability of the site or the protection of environmental values. 26

+ s (11) Where the proposed activity is processing and fuel fabrication, scrap recovery, conversion of uranium hexafluoride, or involves the use of special nuclear material in a uranium enrichment facility, the applicant's proposed emergency plan is adequate. (12) Where the proposed activity is use of special nuclear material in a uranium enrichment facility, the applicable provisions of Part 140 of this chapter have been satisfied.

26. A new 5 70.23a is added to read as follows-5 70.23a Hearing required for uranium enrichment f acility.

The Commission will hold a hearing under 10 CFR Part 2, Subparts A, G, and I, on each application for issuance of a license for construction and operation of a uranium enrichment facility. The Commission will publish public notice of the hearing in the Federal Register at least 30 days before the hearing.

27. Section 70.25 is amended by revising paragraph (a) to read as follows:

5 70.25 Financial assurance and recordkeeping for decommissioning. (a) Each applicant for a specific license of the types enumerated in paragraphs (a)(1) and (2) of this section shall submit a decommissioning funding plan as described in paragraph (e) of this section. 27

(1) A specific license for a uranium enrichment facility; (2) A specific license authorizing the possession and use of unsealed 5 special nuclear material in quantities exceeding 10 times the applicable to.atities set forth in Appendix C to ss 20.1 - 20.601 of 10 CFR Part 20. A .issioning funding plan must also be submitted when a combination of .w 5 isotopes is involved if R divided by 10 is greater than 1 (unity rule), where R is the sum of the ratios of the quantity of each isotope to the applicable value in Appendix C to ss 20.1 - 20.601 of 10 CFR Part 20. 28. Section 70.31 is amended by acding paragraph (e) to read as follows: s 70.31 Issuance of licenses. (e) No license to construct and operate a uranium enrichment f acility i shall be issued until a hearing pursuant to 10 CFR Part 2, Subparts G and 1, is i i comp.e ed and a decision issued on the application.

29. Section 70.32 is amended by adding paragraph (k) to read as follows:

s 70.32 Conditions of licenses. 28 't. i

l l ( k) Wo person shall connence operation of a uranium enrichment f acility until the Commission verifies through inspection that the facility has been l constructed in accordance with the requirements of the license. The Commission shall publish notice of the inspection results in the Federal Register.

30. Section 70.59 is amended by revising the introductory text of l

paragraph (a) to read as follows: l l 5 70.59 Effluent monitoring reporting requirements. (a) Each licensee authorized to possess and use special nuclear material for processing and fuel fabrication, scrap recovery, conversion of uranium hexafluoride, or in a uranium enrichment facility shall: i l PART 75--SAFEGUARDS ON NUCLEAR MA*, TRIAL--lMPLEMENTATION OF US/IAEA AGREEMENT 31. The authority citation for Part 75 is revised to read as follows: AUTHORITY: Secs. 53, 63,103,104,122,161, 68 Stat. 930, 932, 936, 937, 939, 948, as amended (42 U.S.C. 2073, 2093, 2133, 2134, 2152, 2201); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. Sc44); sec. 5, Pub. L. 101-575, 104 Stat. 2835 (42 U.S.C. 2243). 29

r i Section 75.4 also issued under secs. 135,141, Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); 1 the provisions of this part are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)). 32. In s 75.4, paragraph (k)(6) is added to read as follows: i 9 75.4 Definitions. (k) (6) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or useo for experimental or analytical purposes only; or any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235. PART 110--EXPORT AND IMPORT OF NUCLEAR 2001PMENT AND MATERI AL

33. The authority citation for Part 110 is revised to read as follows:

30

AUTHORITY: Secs. 51, 53, 54, 57, 63, 64, 65, 81, 82,103,104,109,111, 1 126,127,128,129,161,181,182,183,187,189, 68 Stat. 929, 930, 931, 932, 933, 936, 937, 948, 953, 954, 955, 956, as amended (42 U.S.C. 2071, 2073, 2074, 2077, 2092-2095, 2111, 2112, 2133, 2134, 2139, 2139a, 2141, 2154-2158, 2201, 2231-2233, 2237, 2239); sec. 201, 88 Stat.1242, as amended (42 U.S.C. 5841); sec. 5, Pub. L.101-575,104 Stat. 2835 (42 U.S.C 2243). Section 110.1(b)(2) also issued under Pub. L. 96-92, 93 Stat. 710 (22 U.S.C. 2403). Section 110.11 also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152) and secs. 54c and 57d., 88 Stat. 473, 475 (42 U.S.C. 2074). Section 110.27 also issued under sec. 309(a), Pub. L. 99-440. Section 110.50(b)(3) also issued under sec. 123, 92 Stat. 142 (42 U.S.C. 2153). Section 110.51 also issued under sec.184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 110.52 also issued under sec. 186, 68 Stat. 955 (42 U.S.C. 2236). Sections 110.80-110.113 also issued under 5 U.S.C. 552, 554. Sections 110.30-110.35 also issued under 5 U.S.C. 553. For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); SS 110.20-110.29, 110.50, and 110.120-110.129 also issued under secs. 1610 and i, 68 Stat. 948, 949, as amended (42 U.S.C. 2201(b) and (i)); and 55 110.7a and 110.53 also issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(c)). 34 In 5110.2, a definition " Uranium enrichment f acility" is added to read as follows: 5 110.2 Definitions. J1

Uranium enrichment facility means: (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experinental or analytical purposes only; or (2) Any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235.

35. Section 110.9 is amended by adding paragraph (e) to read as follows:

5 110.9 List of nuclear equipment and material under NRC import licensing authority. (e) Uranium enrichment facilities. PART 140--FINANCIAL PROTECTION REQUIREMENTS AliD INDEMillTY AGREEMENTS

36. The authority citation for Part 140 is revised to read as follows:

32

AUTHORITY: Secs.161,170, 68 Stat. 948, 71 Stat. 576, as amended (42 U.S.C. 2201, 2210); secs. 201, as amended, 202, 88 Stat.1242, as amended,1244 (42 U.S.C. 5841, 5842). Section 140.13b is issued under Section 193(d) 104 Stat. '2835 (42 U.S.C. 2243). For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); 95 140.11(a), 140.12(a), 140.13, and 140.13a are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); and s 140.6 is issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)). l ) 37. In S 140.9a, paragraph (b) is revised to read as follows: 5 140.9a Information collection requirements: OMB approval. (b) The approved informa; ion collection requirements contained in this part appear in sb 140.6, 140.7, 140.13b, 140.15, 140.17, 140.20, 140.21 and 140.22. [49 FR 19629, May 9, 1984] l

38. A new s 140.13b is added to read as follows:

s 140.13b Amount of financial protection required for uranium enrichment facilities. 33

Each holder of a license issued under Parts 40 or 70 of this chapter for a uranium enrichment faci ~ y that involves the use of source material or special nuclear material is required to have and maintain financial protection in the form of liability insurance. Such liability insurance must be the type and in the amounts the Commission considers appropriate to cover liability claims arising out of any occurrence within the United States that causes, within or outside the United States, bodily injury, sickness, disease, death, loss of or damage to property, or loss of use of property arising out of or resulting from the radioactive, toxic, explosive, or other hazardous properties of chemical compounds containing source material or special nuclear material. Proof of financial protection must be filed with the Commission as required by % 140.15 before issuance of a license for a uranium enrichment facility under Parts 40 and 70 of this chapter. PART 150--EXEMPTIONS AND CONTIt10E0 REGULATORY AUTHORITY IN AGREEMENT STATES AND Ill 0FFSHORE WATERS UNDER SECTION 274 39. The authority citation for Part 150 is revised to read as follows: AUTHORITY: Sec. 161, 68 Stat. 948, as amended, sec. 274, 73 Stat. 688 (42 U.S.C. 2201, 2021); sec. 201, 88 Stat.1242, as amended (42 U.S.C. 5841); sec. 5, Pub. L 101-575, 104 Stat. 2835 (42 U.S.C. 2243), j Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued under secs. i 11e(2), 81, 68 Stat. 923, 935, as amended, secs. 83, 84, 92 Stat. 3033, 3039 l (42 U.S.C. 2014e(2), 2111, 2113, 2114). Section 150.14 also issued under sec. 53, 68 Stat. 930, as amended (42 U.S.C. 2073). Section 150.15 also issued under 34

2 secs.135,141, Pub. L. 97-425, 96 Stat. 2232, 2241 (a2 U.S.C.10155,10161). Section 150.17a also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152). Section 150.30 also issued under sec. 2.34, 83 Stat. 444 (42 U.S.C. 2282). For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); SS 150.20(b)(2)-(4) and 150.21 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); 5 150.14 is issued under sec. 161i, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 150.16-150.19 and 150.20(b)(1) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)). 40. In S 150.3, paragraph (h) is revised and paragraph (m) is added to read as follows: 5 150.3 Oefinitions. (h) " Production facility" means: (1) Any equipment or device determined by rule of the Commission to be capable of the production of special nuclear material in such quantity as to be of significance to the common defense and security, or in such manner as to affect the health and safety of the public, including a uranium enrichment facility; or (2) Any importent component part especially designed for such equipment or device as determined by the Commission. 35

(m) " Uranium enrichment facility" means: (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experimental or analytical purposes only; or (2) Any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235. PART 170--FEES FOR FACILITIES AND-MATERIALS LICENSES AND OTHER REGULATORY SERVICES UNDER THE ATOMIC ENERGY ACT OF 1954, AS AMENDED

41. The authority citation for Part 170 continues to read as follows:

AUTHORITY: 31 U.S.C. 9701, 96 Stat.1051; sec. 301, Pub. L. 92-314, 86 Stat. 222 (42 U.S.C. 2201w); sec. 201, 88 Stat.1242, as amended (42 U.S.C. 5841). 42. In s 170.3, paragraph (2) of the term production facility is revised and a new term " Uranium enrichment facility" is added to read as follows: S 170.3 Definitions. 36

1 Production f acility means: (2) Any facility designed or used for the separation of the isotopes of plutonium, except laboratory scale facilities designed or used for experimental or analytical purposes only; or Uranium enrichment facility means: (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235, except laboratory scale facilities designed or used for experirnental or analytical purposes only; or (2) Any equipment or device, or important component part especially designed for such equipment or device, capable of separating the isotopes of uranium or enriching uranium in the isotope 235. @ 170.21 [ Amended] 43. In 5 170.21, the table " Schedule of Facility Fees" is amended by removing and reserving Category E, Uranium Enrichment Plant. 37

d 44. In 5 170.31, the table " Schedule of Materials Fees" is revised by j adding (1)(E) to read as follows: I S 170.31 Schedule of fees for materials licenses and other regulatory services, including inspections and import and export licenses. l SCHEDULE OF MATERIALS FEES (See footnotes at the end of table) 2/ Category of materials licenses and type of fees 1/ Fee 1. Special nuclear material: E. Licenses for construction and operation of a uranium enrichment f acili ty. Application............ $125,000 License, Renewal, Amendment.. Full Cost Inspection: Routine.................. Full Cost Nonroutine... Full Cost 1/ - Types of fees - Separate charges as shown in the schedule will be dssessed for preapplication reviews and applications for new licenses and approvals, issuance of new licenses and approvals, amendments and renewals to 38 A v.,

existing licenses and approvals, safety evaluations of sealed sources and devices, and inspections. The following guidelines apply to these charges: (a) Application fees - Applications for new materials licenses and approvals or applications to reinstate expired licenses and approvals not subject to fees assessed at full cost must be accompanied by the prescribed application fee for each category, except that:

1) applications for licenses f

l covering more than one fee category of special nuclear material or source material must be accompanied by the prescribed application fee for the highest fee category; and 2) applications for licenses under fee Category 1E must be accompanied by an application fee of $125,000. (b) License / approval / review fees - Fees for applications for new licenses and approvals sifoject to full cost fees (fee Categories 1A,1B,1E, 2A, 4A, 58, 10A,11,12,13A, and 14) are due upon notification by the Commission in accordaace with 5 170.12(b), (e), and (f). (c) Renewal /reapproval fees - Applications for renewal of licenses and approvals must be accompanied by the prescribed renewal fee for each category, except that fees for applications for renewal of licenses and approvals subject to full cost fees (fee Categories 1A,18, 2A, 4A, 58,10A,11,12,13A,14, and i

15) are due upon notification by the Commission in accordance with 5 170.12(d).

(d) Amendment fees - Applications for amendments to licenses and approvals, except those subject to fees assessed at full cost, must be i accompanied by the prescribed amendment fee for each license affected. An application for an amendment to a license or approval classified in more than one fee category must be accompanied by the prescribed amendment fee for the category affected by the amendment unless the amendment is applicable to two or j more fee categories, in which case the amendment fee for the highest fee 39

category applies. For those licenses and approvals subject to full costs (fee Categories 1 A,18, IE, 2A, 4A, SB,10A,11,12,13A,14, and 15), amendment fees are due upon notification by the Commission in accordance with 5 170.12(c). An application for amendment to a materials license or approval that would place the license or approval in a higher fee category or add a new fee category must be accompanied by the prescribed application fee for the new category. An application for amendment to a license or approval that would reduce the scope of a licensee's program to a lower fee category must be accompanied by the prescribed amendment fee for the lower fee category. Applications to terminate licenses authorizing small materials programs, when no dismantling or decontamination procedures are required, are not subject to fees. (e) Inspection fees - Separate charges will be assessed for each routine and nonroutine inspection performed, including inspections conducted by the 14RC oi kreement State licensees who conduct activities ir non-Agreement States under the sciprocity provisions of 10 CFR 150.20. Inspections resulting from investigations conducted by the Office of Investigations and nonroutine j i inspections that result from third-party allegations are not subject to fees. If a licensee holds more than one materials license at a single location, a fee equal to the highest fee category covered by the licenses will be assessed if l the inspections are conducted at the seme time, unless the inspection fees are based on the full cost to conduct the inspection. The fees assessed at full cost will be determined based on the professional staff time required to conduct the inspection multiplied by the rate established under 5 170.20 to j which any applicable contractual support services costs incurred will be added. i 4 40

Licenses covering more than one category will be charged a fee equal to the highest fee category covered by the license. Inspection fees are due upon notification by the Commission in accordance with Q 170.12(g). See Footnote 5 for other inspection notes. /- Fees will not be charged for orders issued by the Commission pursuant to 10 CFR 2.104 nor for amendments resulting specifical'y from such Commission orders. However, fees will be charged for approvals issued pursuant to a specific exemption provision of the Commission's regulations under Title 10 of the Code of Federal Regulations (e.g., 95 30.11, 40.14, 70.14, 73.5, and any other sections now or hereaf ter in effect) regardless of whether the approval is in the form of a license amendment, letter of approval, safety evaluation report, or other form. In addition to the fee shown, an applicant may be assessed an additional fee for sealed source and device evaluations as shown in Category 9A through 9D. Dated at Rockville, Maryland, this day of ,1991. For the Nuclear Regulatory Commission. Samuel J. Chilk, Secretary of the Commission. 41

Document Name: NILSEN FRN Requestor's 10: MENDIOLA Author's Name: RES Document Comments: RES Format: Federal Register Notice l i

ENCLOSURE B Draf t Regulatory Analysis

4 ? REGULATORY ANALYSIS 4 j Uranium Enrichment Regulation; Proposed Rulemaking-Conforming 10 CFR Parts 2, 40, 50, 51, 70, 75,110,140,150, and 170 to the Requirements of Pub. L. 101-575 1. Statement of Problem k 5 1 On November 15, 1990, the President signed the Solar, Wind, Waste, and l Geothermal Power Production Incentives Act of 1990, which amended the Atomic Energy Act (the Act) with respect to regule!.ing uranium enrichment. The ) principal effect of these changes is that uranium enrichment facilities will be licensed subject to the provisions of the Act pertaining to source material i dnd special nuclear material rather than provisions pertaining to a production i facility. Thus, licensing of uranium enrichment plants will be performed pursuant to 10 CFR Parts 40 and 70 rather than 10 CFR Part 50. A new Section 193 of the Act contains revised requirements for enrichment facilities with respect to environmental review, adjudicatory hearings, inspection before operation, j liability insurance, and decommissioning. A number of conforming changes need to be made to 10 CFR Chapter 1 to implement the amendments to the Act. The Parts that need amendments include 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170.

2. Objective Conforming amendments to the pertinent parts of 10 CFR Chapter I will be published for public comment in the Federal Register. Public comments received will be considered in final rulemaking action. 3. Alternatives There appear to be no alternatives to the codification of the conforming 1 regulations, since they are required by statute. 4. Benefits and Costs i l The chief benefit to the public, industry, and NRC will be derived from j the codification of the Commission's regulations to conform to the changes to i the Atomic Energy Act in accordance with Pub. L. 101-575. Codification will facilitate the process for review of any license application for an enrichment facility and provide the final regulatory base for health and safety review of the application. The principal cost will be tne expenditure of staff resources in codifying the requirements, which is estimated at 0.5 staff years. Codification of the requirements should also result in a better understanding of the procedures and requirements for licensing of enrichment facilities, and thereby reduce the litigation burden that might result from not having the provisions of the Act codified in regulation. 2

5. Decision Rationale and Conclusion Public Law 100-575, by amending the Atomic Energy Act of 1954, changes the way uranium enrichment facilities are licensed and adds different procedural requirements. The Commission's regulations must conform to these changes. A proposed rule providing the necessary amendments to the Commission's regulations should be published for public comment and codified through the formal rulemaking process. { 6. Implementation j o.1 Schedule for Implementing the Proposed Requirements The rule is expected to be issued in final form in mid-1992. There are no current f4RC licensees which will be covered under the rule. Accordingly, there are no issues pertaining to implementation for existing facilities. 6.2 Relationship to Other Existing or Proposed Requirements There are no known impacts on or conflicts with other existing or proposed requirements. 3

Document Name: REGULATORY ANALYSIS /NILSEN Requestor's ID: MENDIOLA Author's Name: CNilsen Document Comments: l l l

t v 4 i \\ t 4 1 i i i I ENCLOSURE C 1 Congressional Letters 3 i I 1 l 1 i l

go ar cg 0 .y' UNITED STATES E NUCLEAR REGULATORY COMMISSION m k [ WASHINGTON, D.C. 20555 o. y44..... *4 The. Honorable Bob Graham, Chairman Subcommittee on Nuclear Regulation Committee on Environmental and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

In a few days, the Nuclear Regulatory Commission (NRC) will publish in the Federal Register the enclosed proposed amendments to the NRC's regulations. concerning uranium enrichment facilities. These proposed amendments are being promulgated by the Commission to change its rules fer regulation of' uranium enrichment facilities to conform to amendments made to the' Atomic Energy Act l of 1954 (the Act) by the " Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990," signed by.the President on November 15, 1990. The proposed conforming amendments are to 10 CFR Parts 2,_40, 50, 51, 70, 75, 110, 140, 150, and 170. The principal effect of these conforming changes'is'that uranium enrichment facilities will be licensed subject to the provisions of the Act for source and -special nuclear material rather than the provisions for a production facility. These proposed conforming changes include the specific requirements for environmental review, adjudicatory hearings, inspectior, before operation, and liabil'ty insurance. The changes apply to the licensing of "any equipment or device (or important component part especially designed for such equipment or device) capable of separating the isotopes of uranium or enriching uranium in the isotope 235," as defined in the emended Act. The NRC is issuing the proposed rule allowing 75 days for public comment and has specifically requested comments on the proposed rule and the 'draf t regulatory analysis. Sincerely, Eric S. Beckjord, Director Office of Nuclear Regulatory Research

Enclosure:

Federal Register Notice cc: Senator Alan K. Simpson

l $py j' w 6% UNITED STATES 5 M, L., J/. 3 NUCLEAR REGULATORY COMMIGSION % Igb${j f I WASHINGTON, D.C. 20505 The Honorable Peter H. Kostmayer, Chairman l Subcommittee on Energy and the Environment Committee on Interior and Insular Affairs United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

l In a few days, the Nuclear Regulatory Commission (NRC) will publish in the Federal Register the enclosed proposed amendments to the NRC's regulations concerning uranium enrichment facilities. These proposed amendments are being promulgated by the Commission to change its rules for regulation of uranium enrichment facilities to conform to amendments made to the Atomic Energy Act of 1954 (the Act) by the " Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990," signed by the President on November 15, 1990. The proposed conforming amendments are to 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170. The principal effect of these conforming changes is that uranium enrichment facilities will be licensed subject to the provisions of the Act for source and special nuclear material rather than the provisions for a production facility. These proposed conforming changes include the specific requirements for environmental review, adjudicatory hearings, inspection before operation, and liability insurance. The changes apply to the licensing of "any equipment or device (or important component part especially designed for such equipment or j device) capable of separating the isotopes of uranium or enriching uranium in the isotope 235," as defined in the amended Act. The NRC is issuing the proposed rule allowing 75 days for public comment and has specifically requested comments on the proposed rule and the draf t regulatory analysis. Sincerely, Eric S. Beckjord, Director Office of Nuclear Regulatory Research

Enclosure:

Federal Register Notice cc: Representative John J. Rhodes

genc' o $('A.,-i 7, UNITED STATES h*t E NUCLEAR REGULATORY COMMISSION (%'m$n/! 2 WASHINGTON. D.C. 20555 f g .. e ....+ The Honorable Philip R. Sharp, Chairman Subcommittee on Energy and Power Committee on Energy and Commerce United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

In a few days, the Nuclear Regulatory Commission (NRC) will publish in the Federal Register the enclosed proposed amendments to the-NRC's regulations concerning uranium enrichment facilities. These proposed amendments are being i promulgated by the Commission to change its rules for regulation of uranium enrichment facilities to conform to amendments made to the Atomic Energy Act i 1 of 1954 (the Act) by the " Solar, Wind, Waste, and Geothermal Power Production 4 [ Incentives Act of 1990," signed by the President on November 15, 1990. The proposed conforming amendments are to 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170. The principal effect of these conforming changes is that uranium enrichment facilities will be licensed subject to the provisions of the Act for source and special nuclear material rather than the provisions for a production facility. These proposed conforming changes include the specific requirements for environmental review, adjudicatory hearings, inspection before operation, and liability insurance. The changes apply to the licensing of "any equipment or device (or important component part especially designed for such equipment or device) capable of separating the 1sotopes of uranium or enriching uranium in the isotope 235," os defined in the amended Act, i The NRC is issuing the proposed rule allowing 75 days for public comment and has specifically requested comments on the proposed rule and the draft regulatory analysis. Sincerely, Eric S. Beckjcrd, Director Office of Nuclear Regulatory Research

Enclosure:

Federal Register Notice cc: Representative Carlos J. Moorhead

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m--- 6 The Honorable Bob Graham, Chairman Subconmittee un Nuclear Regulation Conmittee on Environmental and Public Works United States Senate Washington, DC 20510 Dear Mr. Chairma - In a few days, the Nuclear Regulatory Commission (NRC) will publish in the Federal Register the enclosed proposed amendments to the NRC's regulaticas concerning uranium enrichment facilities. These proposed amendments are being promulgated by the Commission to change its rules for regulation of uranium enrichment facilities to conform to amendments made to the Atomic Energy Act of 1954 (the Act) by the " Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990," signed by the President on November 15, 1990. The proposed conforming amendments are to 10 CFR Parts 2, 40, 50, 51, 70, 75, 110, 140, 150, and 170. The principal effect of these conforming changes is that uranium enrichment facilities will be licensed subject to the provisions of the Act for source and special nuclear material rather than the provisions for a production facility. These proposed conforming changes include the specific requirements for environmental review, adjudicatory hearings, inspection before operation, and liability insurance. The changes apply to the licensing of "any equipment or device (or important component part especially designed for such equipment or device) capable of separating the isotopes of uranium or enriching uranium in the isotope 235," as defined in the amended Act. The NRC is issuing the proposed rule allowing 75 days for public comment and has specifically requested comments on the proposed rule and the draft regulatory analysis. S in cerely, Eric S. Beckjord, Director Office of Nuclear Regulatory Research

Enclosure:

Federal Register Notice cc: Senator Alan K. Simpson Identical letters sent to: The Honorable Peter H. Kostmayer, Chairman cc: Representetive John J. Rhodes i The Honorable Philip R. Sharp, Chairman cc: Representative Carlos J. Moorhead See next page for Distribution 0FFC:8 HJp:DRA RPHEB:DRA DD:DRA D:DRA DD/GIR:RES D:RES NAME-DATE. A dst.dm JWang FCostonzi BMorris CJHeltenes EBeckjord //()/91 / /91 / /91 / /91 / /91 / /91 0FF: OCA NAME:DRathbun DATE: / /91 0FFICIAL RECORD COPY

2 DISTRIBUTION CONGRESSIONAL /NILSEN RPHEB R/F - DCool Cir./Chron DRathbun, OCA EBeckjord CJHeltemes BMorris FCostanzi JWang CHilsen l

Document Name: CONGRESS 10llAL/NILSEN Requestor's ID: MENDIOLA Author's Nane: CNilsen Document Comments: l I l

ENCLOSURE D Draf t Public Announcement = l 1

Public Announcement NRC PROPOSES CHANGES TO REGULATIONS FOR URANIUM ENRICHMENT FACILITIES The Nuclear Regulatory Commission has issued a proposed rule setting out how it plans to change its requirements to conform to recent amendments to the Atomic Energy Act regarding regulation of uranium enrichment facilities. Prior to the amendments to the Act, uranium enrichment facilities would have been licensed under the same part of the Commission's regulations as nuclear power plants. Under the amended Act they will be licensed under the portions dealing with other uses of nuclear materials. Uranium must be enriched in the isotope uranium-235, whose atoms readily undergo fission and are therefore suitable for a chain reaction, before it can be used as a fuel in the type of nuclear power plants commonly used in the United States. There are no NRC-licensed enrichment plants in the country at the present ti me. All U.S. enrichment f acilities are owned by the Department of Energy and are not subject to NRC regulation. However, on January 31, 1991, the NRC received an application from Louisiana Energy Services for a license to construct and operate a facility for enrichment of uranium using the gas centrifuge process. There is also a possibility, over a longer term, that legislation will be enacted that would put all or part of the Department of Energy's enrichment facilities under the jurisdiction of NRC regulations. Interested persons are invited to submit written comments by (75 days after publication of the proposed changes in the Federal Register on ). The concients should be addressed to the Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Attention: Docketing and Service Branch.

Document Name: PUBLIC ANN 0UNCEMENT Requestor's ID: MENDIOLA Author's Name: CNilsen Document Comments: Changes to regulations for uranium enrichment facilities.

1 U.S. NUCLEAR REGULATORY COMMISSION WRC FORM 6 SECY-NRCM 024 SECY PAPER DISTRIBUTION REVIEW D BY CLASSIFIED TYPE OF PAPER CLASSIFICATION i POLICY AFFIRMATION CARR (1) REMICK (1) j

/ RULEMAKING NOTATION ROBERTS (1)

OGC (2) ROGERS (1) SECY (3) ADJUDICATORY C ET III MEETING INFORMATION CURTISS (1) NTER DISTRIBUTION EXECUTIVE DIRECTOR (3) i e' FOR OPER ATIONS CHAIRMAN CARR (5) I2) 1 COMMISSIONER ROBERTS (2) RECTO S ON ghNhTRA V COMMISSIONER ROGERS (3) Ag g; COMMISSIONER CURTISS (3) V CONTROLLER (3) ~ A ION RESOURCES -(3) COMMISSIONER REMICK (3) MANAGEMENT (If RULEMAKING)(4) ANALYSIS & EVALUATION OF (10) (3) SECY (FOR MEET /NG) (30-80) OPERATIONAL CATA NUCLEAR MATERI AL (5) OGC (12) SAFETY AND SAFEGARDS / NUCLEAR REACTOR g)7) INSPECTOR GENER AL (2) REGULATION NUCLEAR REGULATORY IUI LICENSING SUPPORT (' RESE ARCH - SYSTEM OFFICE OF IN GOVERNMENTAL AND I2I CONSOLIDATION PUBLIC AFFAIRS OFFICE OF III CONG RESSION AL (2) ENFORCEMENT AFFAIRS fNV (2) STATE PROGRAMS (2) i ATIONS OFFICE OF III INTERNATIONAL (2) PERSONNEL PROGRAMS i (2) SDBU/CR (1) l AFFAIRS OOCUMENT CONTROL III DESK REGION AL OFFICES: (C&R BR ANCH, SECY) COMMITTEES AND PANELS ADVISORY COMMITTEE ON (16) RI - KING OF PRUSSIA (2) RE ACTOR SAF EGU ARDS ADVISORY COMMITTEE ON I6I Ril - ATLA' (2) NUCLEAR WASTE Rlli - CHICAGO (2) ATOMIC SAFETY AND (2) LICENSING BOARD PANEL ATOMIC SAFETY AND (2) RIV - D ALLAS (2) LICENSING APPEAL PANEL i RV - SAN FRANCISCO (2) TOTAL NUMBER OF COPIES RETURN ORIGINAL TO: ..., n c c. n..,,, o n,}}