ML20126K133

Forwards Documents Which Comprise Regulatory History for Proposed Rules 10CFR73 & 74, Licensees Announcements of Safeguards Insps

ML20126K133
Person / Time
Issue date:	12/17/1992
From:	Dwyer P NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20126K139	List: ML20126K133 ML20126K205
References
FRN-57FR49656, RULE-PR-73, RULE-PR-74 AE27-1-001, AE27-1-1, NUDOCS 9301070041
Download: ML20126K133 (15)

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.EEI71932 MEMORANDUM FOR: NUDOCS M/S Pl-37 FROM:

Priscilla A. Dwyer Sr. Safeguards Technical Analyst Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS

SUBJECT:

REGULATORY HISTORY FOR PROPOSED RVLE The enclosed documents comprise the regulatory history for the proposed rulo " Licensees' Announcements of Safeguards inspections" (57 FR 49656). The rulemaking affects Parts 73 and 74. All of these documents should be placed in the Public Document Room.

Please forward a completed index to me at mail stop 4E4. Thank you,

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t Priscilla A. Dwyer Sr. Safeguards Technical Analyst Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS

Enclosures:

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MAY 2 61992 MEMORANDUM POR:

Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS FROM:

Douglas M. Collins, Chief fluclear Materials Safety and Safeguards Branch Division of Radiation Saf ety and Safeguards, RII

SUBJECT:

REVISION OF PROPOSED RULE ON UNMINOUNCED SAFEGUARDS INSPECTIONS We have completed our review of the proposed subject rule without comment.

We appreciate the opportunity to review and provide comment and should further actions be required on this subject, please contact David McGuire at (404) 331-5545.

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Douglas M. Collins cc:

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MEMORANDUM FOR:

David C. Williams inspector General FROM:

Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS

SUBJECT:

PROPOSED RULEMAKING - LICENSEES' ANNOVNCEMENTS OF SAFEGUARDS INSPECTIONS The enclosed proposed rule was forwarded to the Rules and Directives Review Branch, Division of Freedom of Information and Publication Services, ADM on October 21, 1992 for publication in the Federal Register. It is provided for your information. Staff contact is Priscilla A. Dwyer, 504-2478.

o@alsgnedW ThoodoteS.Shm Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS

Enclosure:

as stated DISTRIBUTION:

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[7590-01) i NUCLEAR.'iLGULATORY COMMISSION 10 CFR Parts 73 and 74 RIN 3150 - AE27 Licensees' Announcements of Safeguards Inspections AGENCY: Nuclear Regulatory Comission.

ACT!sN:

Proposed rule.

SUMMARY

The Nuclear Regulatory Comission is proposing an amendment to its regulations concerning fuel cycle facilities. The proposed rule would ensure that the presence of NRC safeguards inspectors at certain fuel cycle facilities is not announced or widely comunicated to licensee and contractor personnel without an expressed request to do so by the inspector. The proposed rule would increase the effectiveness of unannounced safeguards inspections and enable a safeguards inspector to obtain a more accurate view of affected facilities.

DATES:

Coments must be received on or before (90 days from date of publication). Comments received after this date will be considered if it is practical to do so, but only those coments received on or before this date can be assured of consideration.

ADDRESSES:

Coments or suggestions regarding the proposed amerdments should be sent to the Secretary of the Comission, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555, Attention: Docketing and Service Branch. Copies of coments received will be available for inspection and copying for a fee in the NRC Public Document Room at 2120 L Street. NW, (Lower Level), Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:- Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Comission, Washington, DC 20555, Telephone (301) 504-2478.

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managers, that, be tuse of the inspection, she cannot attend a previously scheduled meeting. An employee would not be required by the rule-to cancel previous engagements without giving timely and sufficient reasons.

Environmental Impact: Categorical Exclusion The NRC has determined that this proposed chang'e is the type of action described in catep c 1 exclusion 10CFR51.22(c)(2). Therefore, neither an environmental impac

.atement nor an environmental assessment has been prepared for the proposed rule.

Paperwork Reduction Act Statement This proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Existing requirements were approved by the Office of Management and Budget approval numbers 3150-002 and 3150-0123.

Regulatory analysis This proposed rule would have no significant impact on state and local governments and geographical regions.

It may have an impact on health,

-safety.-and the environment,-but only-in the sense of preventing adverse impacts on health, safety, and the environment through more effective safeguards inspections at affected fuel cycle facilities. The proposed rule would make it clear that NRC safeguards inspectors are to have a realistic picture of the actual conditions at a site during the inspection process and, therefore, be better able to identify conditions and/or_ practices for corrective action and to ensure that licensees comply with laws,- regulations, and orders administered by:the NRC. It is anticipated that this proposed rule, if promulgated, would impose procedural changes only on affected licensees at

[ninimal or no cost. This constitutes-the regulatory analysis for this proposed rule.

3,

i PART 73 - PHYSICAL PROTECTION OF PLANTS AND KATERIALS

1. The authority citation for Part 73 continues to read as follows:

AUTHORITY: Sees. 53, 161, 68 Stat. 930, 948, as amended. sec. 147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as adended, 204, 88 Stat.

1242, as amended, 1245 (42 U.S.C. 5841, 5844).

Section 73.1 also issued under secs. 135, 141, Pub. L.97-425, 96 Stat.

2232, 2241 (42 U.S.C. 10155, 10161). Section 73.37 (f) also issued under sec. 301, Pub. L.96-295, 94 Stat. 789 (42 U.S.C. 5841 note). Section 73.57 is issued under sec. 606, Pub. L.99-399, 100 Stat. 876 (42 U.S.C. 2169).

For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);

6673.21, 73.37(g), and 73.55 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201 (b)); li73.20, 73.24, 73.25,73.26, 73,27, 73.37, 73.40, 73.45, 73.46, 73.50, 73.55, and 73.67 are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C.

2201 (1)); and $573.20 (c)(1), 73.24(b)(1),

73.26(b)(3), (h)(6) and (k)(4), 73.27 (a) and (b), 73.37(f), 73.40 (b) and.

(d), 73.46(g)(6) and (h)(2), 73.50(g)(2), (3)(111)(8), and (h), 73.55 (h)(2) and (4)(111)(B), 73.57, 73.70, 73.71, and 73.72 are issued under sec. 161c, 68 Stat. 950,-ai' amended (42 U.S.C. 2201 (o)).

2.

In 673.46, paragraph (d)(15) is added to read as follows:

673.46.

Fixed site physical protection systems, subsystems, components, and procedures.

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(d)

(15) The licensee may not announce or otherwise communicate to its employees or site contractors the arrival or presence of an NRC safeguards inspector unless specifically requested to do so by the NRC inspector.

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HEMORANDUM FOR: David A. Ward, Chairman _

l Advisory Committee on Reactor Safeguards i

FRON:

Theodore S. $ herr,_ Chief Domestic Safeguards Branch-Division of Safeguards and Transportation, NHSS I

SUBJECT:

PROPOSED RULEMAKING - LICENSEES' ANNOUNCEMENTS OF SAFEGUARDS INSPECTIONS The enclosed proposed rule was forwarded to the Rules and Directives Review Branch, Division of Freedom of Information and Publication Services, ADM on i

October 21, 1992 for publication in the Federal Register. It-is provided fore your information. Staff contact is Priscilla A. Dwyer, 504-2478.

M snels W by wore 8, Shut Theodore S. Sherr, Chief-Domestic Safeguards Branch Division of_ Safeguards and Transportation,_-NMSS.

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Enclosure:

as stated l

DISTRIBUTION:

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NUCLEAR RLGULATORY COMMISSION 10 CFR Parts 73 and 74 RIN 3150 - AE27 Licensees' Announcements of Safeguards Inspection's AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

SUMKARY: The Nuclear Regulatory Commission is proposing an amendment to its regulations concerning fuel cycle facilities. The proposed rule would ensure that the presence of HRC safeguards inspectors at certain fuel cycle facilities is not announced or widely communicated to licenseo and contractor personnel without an expressed request to do so by the inspector.

The proposed rule would increase the effectiveness of unannounced safeguards inspections and enable a safeguards inspector to obtain a more accurate view of affected facilities.

DATES: Comments must be received on or before (90 days from date of publication).

Comments received after this date will be considered if it is practical to do so, but only those conments received on or before this date can be assured of consideration.

ADDRESSES:

Comments or suggestions regarding the proposed amendments should be sent to the Secretary of the Commission, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555, Attention: Docketing and Service Branch.

Copies of comments received will be available for inspection and copying for a fee in the NRC Public Document Room at 2120 L Street. NW (Lower Level), Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:

Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555. Telephone (301) 504-2478.

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4 HUCLEAR liLGULATORY COMMISSION 10 CFR Parts 73 and 74 RIN 3150 - AE27 Licensees' Announcements of Safeguards inspections AGENCY:

Nuclear Regulatory Comission.

ACTION:

Proposed rule.

SUMMARY

The Nuclear Regulatory Comission is proposing an amendment to its regulations concerning fuel cycle facilities. The proposed rule would ensure that the presence of NRC safeguards inspectors at certain fuel cycle f acilities is not announced or widely comunicated to licensee and contractor personnel without an expressed request to do so by the inspector. The proposed rule would increase the effectiveness of unannounced safeguards inspections and enable a safeguards inspector to obtain a more accurate view of affected facilities.

DATES:

Comments must be received on or before (90 days from date of pub' Ition).

Comments received after this date will be considered if it is practic. ' to do so, but only those comments received on or before this date can be assured of consideration.

ADDRESSES: Comments or suggestions regarding the proposed amenduients should be sent to the Secretary of the Commission, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555, Attention: Docketing and Service Branch.

Copies of comments received will be available for inspection and copying for a fee in the NRC Public Document Room at 2120 L Street. NW. (Lower level), Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:

Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Comissio...

Washington, DC 20555. Telephone (301) 504-2478.

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SVPPLEMENTARY INFORMATION:

This proposed rulemaking would apply to fuel cycle facilities authorized to use or possess a formula quantity of strategic special nuclear material.

The NRC proposes to prohibit a licensee or its contractors from using an access control measure or other means to intentionally give notice to other persons of the arrival or presence of an NRC safeguards inspector at an affected facility unless the licensee is specifically requested to do so by the NRC safeguards inspector. The proposed rule is intended to increase the effectiveness of unannounced safeguards inspections and to enable a safeguards inspector to get a more accurate view of normal operations at affected I

facilities. The rule is needed for safeguards inspections because of the quickness by which most safeguards degradations can typically be compensated after announcement of an inspector's presence (e.g., through the posting of a security officer) thus frustrating the effectiveness of the inspection. These proposed amendments are intended only to impose procedural changes to the way a licensee responds to the presence of an NRC safeguards inspector at affected fuel cycle facilities. It is anticipated that there will be minimal or no cost associated with implementation of these proposed amendments. The NRC may, in the future, consider the need for similar requirements for safety inspections at affected sites.

As the NRC said when it promulgated 10 CFR 50,70 (b)(4), which prohibits nuclear power reactor licensees from communicating the arrival or presence of an NRC inspector unless asked to do so by the inspector (see 53 FR 42939, 42940, October 25,1988), the NRC expects to reserve enforcement action only for significant intentional violations of the prohibition.

For example, the NRC recognizes the possibility of inadvertent comunication of an inspector's presence. An honest response by an employee to an innocent inquiry that he just saw an NRC inspector is not proscribed by the rule. Therefore, an employee would not be required to lie, in response to a question, about the presence of an NRC inspector.

Similarly, the NRC recognizes the possibility that some communication of an inspector's presence may even on occasion be necessary.

For instance, the person directly in charge of an area being inspected may need to inform certain other people, perhaps higher-level 2,

L 6

managers, that, because of the inspection, she cannot attend a previously scheduled meeting. An employee would not be required by the rule to cancel previous engagements without giving timely and sufficient reasons.

Environmental Impset: rategorical Exclusion The NRC has determined that this proposed change is the type of action described in categorical exclusion 10 CFR 51.22(c)(2). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for the proposed rule.

4 Paperwork Reduction Act Statement This proposed rule does not contain a new or amended information-collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Existing requirements were approved by the Office of Management and Budget approval numbers 3150-002 and 3150-0123.

Regulatory Analysis This proposed rule would have no significant impact on state and local governments and geographical regions.

It may have an impact on health, safety, and the environment, but only in the sense of preventing adverse impacts on health, safety, and the environment through more effective safeguards inspections at affected fuel cycle facilities. The proposed rule would make it clear that NRC safeguards inspectors are to have a realistic picture of the actual conditions at a site during the inspection process and, therefore, be better able to identify conditions and/or practices for corrective action and to ensure that licensees comply with laws, regulations, and orders administered by the NRC. It is anticipated that this proposed rule, if promulgated, would impose procedural changes only on affected licensees at Ininimal or no cost. This constitutes the regulatory analysis for this proposed rule.

3

___--_- ~

l Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b)),

the Comission certifies that this rule, if adopted, will not h' ave a significant economic impact on a substantial number of small entities.

The amendments being proposed would not impose additional cost on any affected licensees regardless of size.

Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this proposed rule, and therefore, that a backfit analysis is not required for this proposed rule because these amendments do not involve any provisions which would impose backfits on nuclear power plant licensees.

This proposed rule affects only fuel cycle facilities that use or possess a formula quantity of strategic special nuclear material and is anticipated to impose only procedural changes at minimal or no cost to the licensee.

List of Subjects 10 CFR Part 73 - Criminal penalties, Hazardous materials - transportation, Incorporation by reference, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Security measures.

10 CFR Part 74 - Accounting, Criminal penalties, Hazardous materials -

transportation, Material contre' and accounting, Nuclear materials, Packaging and containers, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Special nuclear material.

For the reasons set out in the preamble and under 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 amendment to 10 CFR Parts 73 and 74.

y 4

I

PART 73 - PHYSICAL PROTECTION OF PLANTS AND MATERIALS

1. The authority citation for Part 73 continues to read as follows:

AUTHORITY: Sees. 53, 161, 68 Stat. 930, 948, as amended sec. 147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as antended. 204, 88 Stat.

1242, as amended, 1245 (42 U.S.C. 5841, 5844).

Section 73.1 also issued under secs. 135,141, Pub. L.97-425, 96 Stat.

2232, 2241 (42 U.S.C. 10155, 10161). Section 73.37 (f) also issued under sec. 301, Pub. t.96-295, 94 Stat. 789 (42 U.S.C. 5841 note). Section 73.57 is issued under sec. 606, Pub. L.99-399, 100 Stat. 876 (42 U.S.C. 2169).

For 'he purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);

il73.21, 73.37(g), and 73.55 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201 (b)); il73.20, 73.24, 73.25,73.26, 73,27, 73.37, 73.40, 73.45, 73.46, 73.50, 73.55, and 73.67 are issued under sec. 1611, dB Stat. 949, as amended (42 U.S.C.

2201 (i)); and il73.20 (c)(1), 73.24(b)(1),

73.26(b)(3), (h)(6) and (k)(4), 73.27 (a) and (b), 73.37(f), 73.40 (b) and,

(d), 73.46(g)(6) and (h)(2), 73.50(g)(2), (3)(iii)(B), and (h), 73.55 (h)(2) and (4)(iii)(B), 73.57, 73.70, 73.71, and 73.72 are issued under sec. 161c, 68

~

Stat. 950, as amended (42 U.S.C. 2201 (o)).

2.

In $73.46, paragraph (d)(15) is added to read as follows:

173.46.

Fixed site physical protection systems, subsystems, components, and procedures.

(d)

(15) The licensee may not announce or otherwise communicate to its employees or site contractors the arrival or presence of an NRC safeguards inspector unless specifically requested to do so by the NRC inspector.

5

4

3. The authority citation for Part 74 continues to read as follows:

AUTHORITY: Secs. 53, 57, 161, 182, 183, 68 Stat. 930, 932, 948. 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. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

For the purpose of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);

6574.17, 74.31, 74.33, 74.51, 74.53, 74.55, 74.57, 74.59, 74.81, and 74.82 are issued under secs. 161b and 1611, 68 Stat. 948, 949, as amended (42 U.S.C.

2201 (b) and 2201 (i)); and 6574.11, 74.13, 74.15, and 74.17 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201 (o)).

)

4. In 674.81, paragraph (d) is added to read as follows:

674.81 Inspections.

(d) At a fuel cycle facility authorized to use or possess a formula quantity or more of strategic special nuclear material, the licensee may not announce or otherwise communicate to its employees or site contractors the arrival or presence of an NRC safeguards inspector unless specifically requested to do so by the inspector.

Dated at Rockville, MD this day of 1992.

For the Nuclear Regulatory Commission.

i Samuel J. Chilk, Secretary of the Commission.

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004 ocT 2 3 s PDR HEMORANDUM FOR: David A. Ward, Chairman Advisory Comittee or, Reactor Safeguards FROM:

Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS

SUBJECT:

PROPOSED RULEMAKING - LICENSEES' ANNOUNCEMENTS OF SAFEGUARDS INSPECTIONS The enclosed proposed rule was forwarded to the Rules and Directives Review Branch, Division of freedom of Information and Publication Services, ADM on October 21, 1992 for publication in the federal Register. It is provided for your information. Staff contact is Priscilla A. Dwyer, 504-2478.

Original Signed by Deodore S.Sherr Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation, HMSS

Enclosure:

as stated DISTRIBUTION:

SGTR r/f & c/f PDwyer BMendelsohn SGDB SGDB b

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NUCLEAR REGULATORY COMMISSION 10 CFR Parts 73 and 74 RIN 3150 - AE27 Licensees' Announcements of Safeguards Inspection's AGENCY: Nuclear Regulatory Comission.

ACTION:

Proposed rule.

~

SUMMARY

The Nuclear Regulatory Comissi(. is proposing an' amendment to its regulations concerning fuel cycle facilities. The proposed rule would ensure that the presence of NRC safeguards inspectors at certain fuel cycle' facilities is not announced or widely comunicated to licensee and contractor personnel without an expressed request to do so by the inspector.

The proposed rule would increase the effectiveness of unannounced safeguards inspections and enable a safeguards inspector to obtain a more accurate view of affected facilities.

DATES:

Coments must be received on or before (90 days from date of publication).

Coments received after this date will be considered if it is practical to do so, but only those coments received on or before this date can be assured of consideration.

ADDRESSES: Coments or suggestions regarding the proposed amendments should be sent to the Secietary of the Comission, U.S.: Nuclear Regulatory Commis-sion, Washington, DC 20555, Attention: Docketing and Service Branch. Copies of comments received will be available for inspection and copying for a fee in the NRC Public Document Room at 2120 L Street. NW. (Lower Level), Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:

Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Comission, Washington, DC 20555, Telephone (301) S04-2478.

EUPPLEMENTARY INFORMATION:

This proposed rulemaking would apply to fuel cycle facilities authorized to use or possess a formula quantity of strategic special nuclear material.

The NRC proposes to prohibit a licensee or its contractors from psing an access control measure or other means to intentionally give ot' 9 to other persons of the arrival or presence of an NRC safeguards inspe< ;.,r at an affected facility unless the licensee is specifically requested to do so by the NRC safeguards inspector. The proposed rule is intended to increase the effectiveness of unannounced safeguards inspections and to enable a safeguards inspector to get a more accurate view of normal operations at affected facilities. The rule is needed for safeguards inspections because of the quickness by which most safeguards degradations can typically be compensated after announcement of an inspector's presence (e.g., through the posting of a security officer) thus frustrating the effectiveness of the inspection. These proposed amendments are intended only to impose procedural changes to the way a licensee responds to the presence of an NRC sr.faguards inspector at affected fuel cycle facilities. It is anticipated that them will be minimal or no cost associated with implementation of these proposed amendments. The NRC may, in the future, consider the need for similar requirements for safety inspections at affected sites.

As the NRC said when it promulgated 10 CFR 50.70 (b)(4), which prohibits nuclear power reactor licensees from communicating the arrival or presence of an NRC inspector unless-asked to do so by the inspector (see 53 FR 42939, 42940, October 25,1988), the NRC expects to reserve enforcement action only for significant intentional violations of the prohibition.

For example, the NRC recognizes the possibility of inadvertent communication of an inspector's presence. An honest response by an employee to an innocent inquiry that he just saw an NRC inspector is not proscribed by the rule. Therefore, an employee would not be required to lie, in response to a question, about the presence of an NRC inspector. Similarly, the NRC recognizes the possibility that some communication of an inspector's aresence may m n on occasion be necessary.

For instance, the person directly in charge of an area being inspected may need to inform certain other people, perhaps higher-level 2

managers, that, because of the inspection, she cannot attend a previously scheduled meeting. An employee would not be required by the rule to cancel previous engagements without giving timely and sufficient reasons.

Environmental Impact: Categorical Exclusion The NRC has determined that this proposed change is the type of action described in categorical exclusion 10 CFR 51.22(c)(2). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for the-proposed rule.

Paperwork Reduction Act Statement This proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Existing requirements were approved by the Office of Management and Budget approval numbers 3150-002 and 3150-0123.

Regulatory Analysis This proposed rule would have no significant impact on state and local governments and geographical regions.

It may have an impact on health, safety, and the environment, but only in the sense of preventing adverse impacts on health, safety, and the environment through more effective safeguards inspections at affected fuel cycle facilities. The proposed rule would make it clear that NRC safeguards inspectors are to have a realistic picture of the actual conditions at a site during the inspection process and, therefore, be better able to identify conditions and/or practices for corrective action and to ensure that licensees comply with laws, regulations, and orders administered by the NRC. It is anticipated that this proposed rule, if promulgated, would impose procedural changes only on affected licensees at Ininimal or no cost. This constitutes the regulatory analysis for this proposed rule.

3 i

4 Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b)),

the Commission certifies that this rule, if adoptci, will not have a significant economic impact on a substantial number of small entities. The amendments being proposed would not impose additional cost on any affected licensees regardless of size.

Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this proposed rule, and therefore, that a backfit analysis is not required for this proposed rule because these amendments do not involve any provisions which would impose backfits on nuclear power plant licensees.

This proposed rule affects only fuel cycle facilities that use or possess a formula quantity of strategic special nuclear material and is anticipated to impose only procedural changes at minimal or no cost to the licensee.

List of Subjects 10 CFR Part 73 - Criminal penalties, Hazardous materials - transportation, Incorporation by reference, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Security measures.

10 CFR Part 74 - Accounting, Criminal penalties, Hazardous materials -

transportation, Material control and accounting, Nuclear materials, Packaging and containers, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Special nuclear material.

For the reasons set out in the preamble and under authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of l'JT4, as amended, and 5 U.S.C. 553, the NRC is proposing to adopt the following amendment to 10 CFR Parts 73 and 74.

4

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-PART>73 - PHYSICAL PROTECTION OF PLANTS AND. MATERIALS:

-1. The authority. citation for Part 73 continues-to read as follows:

' AUTHORITY: Sees. 53, 161, 68 Stat. 930, 948.'.asiamended. sec. 147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as adended, 204,.88 Stat.

1242, as amended, 1245-(42 U.S.C. 5841, 5844).

Section 73.1 also issued under secs. 135, 141, Pub. L.97-425, 96 Stat.

2232, 2241 (42 U.S.C. 10155, 10161). Section 73.37 (f) also_ issued under sec. 301, Pub..L.96-295, 94 Stat. 789.(42 U.S.C. 5841 note). Section 73.57.is issued under sec. 606, Pub. L.99-399, 100 Stat. 876_(42 U.S.C. 2169).-

for the purposes of sec. 223, ~68 Stat. 958,- as amended (42-U.S.C. 2273);L 5973.21, 73.37(g), and 73.55 are issued under sec. 161b, 68= Stat. 948, as-amended (42 U.S.C. 2201 (b)); $573.20, 73.24, 73.25,73.26, 73,27, 73.37, 73.40, 73.45, 73.46, 73.50, 73.55, and 73.67-are issued under-sec. 1611, 68 Stat. 949, as amended-(42 U.S.C. -2201 (i)); and il73.20 (c)(1),.73.24(b)(1),

73.26(b)(3), (h)(6) and (k)(4), 73.27 (a) and (b), 73.37(f), 73.40 (b) and.

(d), 73.46(g)(6) and (h)(2), 73.50(g)(2), (3)(iii)(B), and (h),- 73.55 (h)(2).

a

.and (4)(iii)(B), 73.57, 73.70, 73.71,.and.73.72 are. issued under sec. 1610, 68-

~

Stat. 950, as amended (42 U.S.C. 2201 (o)).

2.

In 573.46, paragraph _(d)(15) is added to read =as follows:

1 573.46.

Fixed site physical protection systems, subsystems, components,; and procedures.

M.

(d)

(15) The licensee may not announce or otherwise communicate to its 1

employees _or site contractors the arrival-or presence of an NRC safeguards I

inspector unless specifically requested. to'do so by the NRC inspector.-

5, i

-4

3. The authority citation for Part 74 continues to read as followsi AUTHORITY: Secs. 53, 57, 161, 182, 183, 68 Stat. 930, 932, 948.'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. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

For the purpose of sec. 223, 68 Stat 958, as amended (42 U.S.C. 2273);-

5574.17, 74.31, 74.33, 74.51, 74.53, 74.55, 74.57, 74.59, 74.81, and 74.82 are issued under secs. 161b and 1611, 68 Stat. 948, 949, as amended (42 U.S.C.

2201 (b) and 2201 (1)); and il74.11, 74.13, 74.15, and 74.17 are issued under sec. 1610, 68 Stat. 950, as emended (42 U.S.C. 2201-(o)).

4. In 574.81, paragraph (d) is added to read as follows:

574.81 Inspections.

(d) At a fuel cycle facility authorized to use or possess a formula.

quantity or more of strategic special nuclear material, the licensee may not announce or otherwise communicate to its employees or site contractors the arrival or presence of an NRC-safeguards inspector unless specifically requested to do so by the inspector.

Dated at Rockville, MD this day of 1992.

For the Nuclear Regulatory Commission.

Samuel J. Chilk, Secretary of the Commission, b

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Action: Bernero, NMSS

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NUCLEAR REGULATORY COMMISSION Sniezek 00',?

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.I W ASHINGTON, D C,20S55 Thompson o.

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cDw ar, NMSS Meyer, ADM OFFICE OF THE October 16, 1992 Shelton, IRM SECRETARY MEMORANDUM FOR:

James M. Taylor Executive Director for Ope tgons FROM:

Samuel J. Chilk, Secretary \\) h SECY-92-326-LICENSEE' SAM 1 JNCEMENTS OF

SUBJECT:

SAFEGUARDS INSPECTIONS RULEMAKING This is to advise you that the Commission (with all Commissioners agreeing) has approved the publication of the proposed rule subject to:

1)

Adding the following paragraph to the draft FRN after the first paragraph of the Supplementary Information:

As the NRC said when it promulgated 10 CFR 50.70(b) (4),

which prohibits nuclear power reactor licensees from communicating the arrival or presence of an-NRC inspector unless asked to do so by the inspector (see 53 Fed. Reg. 42939, 42940, Oct. 25, 1988), the'NRC expects to reserve enforcement action only for significant intentional violations of the prohibition.

For example, the imC recognizes the possibility of inadvertent communication of an inspector's presence.

An honest response by an employee to an innocent inquiry that he-just saw an NRC inspector is not-proscribed by the rule.

Therefore, an employee would not be required to lie, in response to a question, about the presence of an NRC inspector.

Similarly, the NRC recognizes the possibility that some communication of an inspector's presence may even on occasion be necessary.

For instance, the person directly in charge of an area being inspected may need to inform certain other people, perhaps higher-level managers, that, because of the inspection, she cannot attend a previously scheduled meeting.

An employee would not be required by the rule to cancel previous engagements without giving timely and sufficient reasons.

NOTE:

THIS SRM, THE SUBJECT SECY PAPER AND THE VOTE SHEETS OF ALL COMMISSIONERS WILL BE MADE PUBLICLY AVAILABLE IN 10 WORKING DAYS FROM THE DATE OF THIS SRM.

I

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., 2)

Revise the first sentence of the Backfit Analysih as follows:

"The NRC has determined that tho_backfit rule, 10 CFR 50.109, does not apply to this proposed rule,-and therefore, that a backfit analysis is not required for this proposed rule because those amendments do not involve any provisions which would impose backfits as de fdeed-in-14-GFR-50v149de)-(4t.

on nuclear newer niant licensees.

The FRN should be modified, reviewed by the Regulatory Publication Branch, Adm. and forwarded for signatures and publication.

FEDO)- (NMSS)

(SECY Suspense:.

10/30/92) 9200116 cc:

The Chairman Commissioner Rogers Commissioner Curtiss Commissioner Remick Commissioner do Planque OGC

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UNITED STATES'-

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.I NUCLEAR REGULATORY.COMMISSIONi WASHINoTON, D.C. 20686 o

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May 15, 1992-MEMORANDUM FOR:

Robert'M. Bernero, Director Office of Nuclear Materials Safety _-

and Safeguards FROM:

James M. Taylor Executive Director for Operations

SUBJECT:

APPROVAL Of REQUEST TO INITIATE RULEMAKING WITH-RESPECT YO UNANNOUNCED SAFEGUARDS INSPECTIONS' This memorandum _is in response to your April 21 1992 request for-approval _ to_-

~

initiate a rulemaking to amend 10-CFR Part 73, " Physical Protection of Plants '

andtMaterial" and 10 CFR Part 7_4, " Material Control and Accounting of Special Nuclear Material.": Approval is hereby granted to initiate the subject rulemaking.

The proposed schedule for publication of the Final Rule is eight -

months from when approval is obtained-to initiate the rulemaking.

Please inform me promptly if circumstances arise which jeopardize your ability to _

complete this rulemaking on that schedule.

s

. _aylor ecutive Director-for-Operations.

'I icc:

H.1 Thompson J. Blaha K. Stablein -

, ~

PDR October 30, 1992 MEMORANDUM FOR:

File FROM:

Priscilla A. Dwyer Sr. Safeguards Technical Analyst Domestic Safeguards Branch Division of Safeguards and Transportation, HMSS

SUBJECT:

COMMENTS PREVIOUSLY RECEIVED FROM R. FONNER ON PROPOSED RULEMAKING This documents hand-written comments received from R. Fonner in late May of 1992 on the draft proposed rulemaking on unannounced safeguards inspections.

In his comments, R. Fonner revised the next to last sentence of the Supplementary Information section of the Federal Register Notice. The sentence previously read: "The scope of the rulemaking is limited to safeguards inspections because of the immediacy by which most safeguards degradations can typically be compensated (e.g., through the posting of a security officer)." The sentence, revised per Fonner, reads: "The rule is needed for safeguards inspections because of the quickness by which most safeguards degradations can typically be compensated after announcing the inspector's presence (e.g., through the posting of a security officer) thus frustrating the effectiveness of the inspectors."

Priscilla A> Dwyer Sr. Safeguards Technical Analyst Gomestic Safeguards Branch Division of Safeguards and Transportation, NMSS

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UNITED STATES NUCLEAR REGULATORY COMMISSION I

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.,E W ASHINGTON, D. C. 20555 MAY 2 21992 f ', '7

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MEMORANDUM FOR:

Robert M.

Bernero, Director office of Nuclear Material Safety-and Safeguards

_ I FROM:

Patricia G.

Norry, Director

_J Office of Administration

SUBJECT:

OFFICE CONCURRENCE ON PROPOSED RULE ENTITLED

" UNANNOUNCED SAFEGUARDS INSPECTIONS" The Office of Administration concurs on the draft proposed rule that would amend 10 CFR Parts 73 and 74 to apply a provision regarding the presence of safeguards inspectors at certain fuel cycle facilities.

We have attached a marked copy of the proposed rule package that presents our comments.

We have forwarded a copy of the draft proposed rule to the Information and Records Management Branch, IRM, for their comment or concurrence concerning the paperwork management aspects of this rulemaking action.

We have requested that they respond directly to you.

In ordgr to assist you in preparing the list of documents centrally relevant to this draft proposed rule that is required by NRC's regulatory history procedures, you should place the designator "AE27-1" in the upper right-hand corner of each document concerning the rule that you forward to the Nuclear Document system.

If you have any questions concerning this matter, please contact Alice Katoski on 492-7928 or Michael Lesar on 492-7758.

A T

b Patricia G.

Norry, ctor Office of Administr ion

Attachment:

As stated

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130,

DRAET t

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MAY 131992 NEMORANDUM FOR'.

James M. Taylor Executive Director for Operations FROM:

Robert M. Bernero, Director Office of Nuclear Material Safety and Safeguards

SUBJECT:

UNANN0UNCED SAFEGUARDS INSPECTIONS RULEMAKING Attached for your signature is a proposed rule to be published in the Federal Register that amends 10 CFR Part 73, " Physical Protection of Plants and Mater-7 ials" and 10 CFR Part 74,

• Material Control and Accounting of Special Nuclear Material" (Attachment 1). These amendments propose requirements to ensure

• that the presence of Nuclear Regulatory Commission (NRC) safeguards inspectors at certain fuel cycle facilities is not announced or otherwise communicated to licensees and contractor personnel without the expressed request to do so by 1

the inspector. Affected facilities a e limited to fuel cycle facilities using-or possessing a formula quantity of strategic special nuclear material. The intent of the proposed rule is to increase the effectiveness of unannounced inspections and to enable a safeguard inspector to get a more accurate view of normal operations at affected facilities.

Similar requirements.for power reactor licensees were issued October 25, 1988 (53 FR 42939). This rulemaking is expected to have no economic impact on affected licensees, the NRC, or the public.

Backfit Analysis:

The staff has determined that a backfit analysis is not required for this proposed rulemaking because.these amendments do not involve any provisions which would impose backfits as defined in 10 CFR 50.109(a)(1),

DRAFT LIC ANNOUN OF INSPEC 0F MEMO

DRAET m is 195t Notices:

A notice to the Commission that the EDO has signed this rule is enclosed for inclusion in the next Weekly Staff Notes (Attachment 2).

The appropriate Con-gressional Committees will be notified (Attachment 3). A copy of the proposed rule will be sent to affected licensees.

Coordination:

The Office of Administration concurs in these amendments. The Office of the General Counsel has no legal objection.

Robert M. Bernero, Director Office of Nuclear Material Safety and Safeguards Attachments:

1.

Federal Register Notice of Proposed Rulemaking 2.

Draft Weekly Staff Notes Item 3.

Draft Congressional letter LIC ANN 0UN OF INSPEC OF MEMO 2

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Approvk For Publication The Commission delegated to the ED0 (10 CFR 1.31(+ M B ) the authority to develop and promulgate rules as defined in the APA (5 U.S.C. 551 (4)) subject to the limitations in NRC Hanu:1 Chapter 010', Organization and Functions.

Office of the Executive Director for Operati ns, paragraphs 0213, 036, 039, and 0310.

,e p,,,)ye 9:) 7 jj,,,,

The enclosed rule, entitled " Unannounced Safeguards Inspections" proposes to amend Parts 73 and 74 to ensure that the presence of NRC safeguards inspectors at certain fuel cycle facilities is not announced or otherwise communicated to licensees or contractor personnel without the expressed request to do so by the inspecto..

This proposed rule does not constitute a significant question of policy, nor does it amend regulations contained in 10 CFR Parts 7, 8, or 9 Subpart C concerning matters of policy.

I, therefore, find that this rule is within the scope of my rulemaking authority and am proceeding to issue it.

Date James M. Taylor Executive Director for Operations

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i DRAFT "k

DRAFT AY 18

--WEEKLY. REPORT-TO THE COMMISSION OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS 4

Proposed Rule Sioned by EDO On

, 1992, the Executive Director for Operations (EDO)--approved'a:

proposed rule that would amend 10_ CFR Part 73, " Physical Protection.of Plants and Materials" and 10 CFR Part 74, " Material Control and Accounting of Special-Nuclear Material," by adding provisions to ensure that the presence of.NRC safeguards inspectors at certain fuel cycle facilityisites is not announced or-otherwise' communicated to licensees and contractor: personnel withoutltho-expressed request to do so by the inspector. Affected sites are limited--to-

' fuel cycle. facilities using or possessing formula quantities of strategic special nuclear material._ The proposed rule will increase the effectiveness-of unannounced safeguards inspections _ and enable a safeguards inspector to.get a more accurate view'of normal operations at affected facilities.

Similar' requirements for power reactor licensees were published in October 1988.

This constitutes notice to the commission that, in accordance with the-ruiemeaking authority delegated to the EDO,-the EDO has signed this proposed rule for publication in the Federal Register.

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LIC ANNOUN OF INSPEC OF MEMO 7

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NUCLEAR REGULATORY COMMISSION gj fc ' #

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10 CFR Parts 73 and 74

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Unannounced Safeguards Inspections AGENCY: Nuclear Regulatory Commission.

-~~~~

ACTION:

Proposed rule.

keNuciearR tory Commission (NRC) amended its regula n

ctober 25, 1988 (53 FR 42939 o require that the presence of NRC inspectors on nuclear power reactor sites is not widely communicated or broadcast to licensee and contractor personnel without the expressed request to do so by the inspector. This change allowed NRC inspectors to observe on-going activi-ties as they are being performed without advanced notification o,f the inspec-g tion to licensee and contractor personnel. This proposed rule r'equires"a similar provision be applied to the presence of safeguards inspectors at certain fuel cycle facilities.

DATES:

Comments must be received on or before (90 days after publication).

Comments received after this date will be considered if it is practical to do so, but only those comments received on or before this date can be assured of consideration.

ADDRESSES:

Comments or suggestions regarding the proposed amendments should be sent to the Secretary of the Commission, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555, Attention: Docketing and Service Branch.

Copies of comments r cejv,ed will be available n the NRC Public Document Room at 2120 g

L Street NW.y Washington, DC 20555.

fu qperf.co va/ eqppoj rG/' o Me FOR FURTHER INFORMATION CONTACT:

Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Telephone (301) 504-2478.

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his proposed rulemaking /appig to fuel cycle SUPPLEMENTARY INFORMATION facilities usiWor possessing a formula quantity of strategik special nuclear

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material. The NRC proposes th:t e access control measure [or other means-may--

be employed by tha licen::: er in ennteeetr to intentionally give notice to other persons of the ' arrival and presence of an NRC safeguards inspector at a fuel cycle-facility 'using or possessing a formula ' quantity of strategic. spe-cial ' nuclear material unless the licynsegis. specifically requested to do so khekn(en[dn/cf tbNa Md=t: is to increase the by the NRC inspector.

effectiveness of unannounced inspections and to enable an. inspector to get a more accurate view of normal operations at affected facilities.

Environmental Impact:

Categorical Exclusion I'The NRC has determined that this proposed change is the type of action described in categorical exclusion 10 CFR 51.22(c)(2). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for the proposed rule.

Paperwork Reduction Act Statement

'Th proposed rule does not contain a new or amended.information. collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Existing requirements were approved by the Office of Management and Budget approval-number Srp oeg 3 /50-M L y

Regulatory Analysis hhis proposed rule will have no significant impact on state-and local governments and geographical regions.

It may have an. impact on health, safety,-and the environment, but'only in the sense ~of preventing adverse impacts on health, safety, and the environment through more effective inspec-Thefr/?ferne/-ulemagitclearthatNRCinspectorsaretohavearealistic:

tions.

g picture of the actual conditions at a-site during the inspection process and,-

therefore,- be better able to identify potentially dangerous conditions and/or-

-practices for corrective action-and to ensure that licensees comply with laws, regulations, and orders administered by the NRC. This constitutes the-regulatory analysis for this proposed rule.

4.IC ANN 0UN OF INSPEC 0F MEMO 4C 2

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Regulatory Flexibility Certification' EM fAs required by the Regulatory flexibility Act of 1980 (5 U.S.C. 605(b)), the:

Commission certifies that this rule, if adopted, will not have a significant.-

. economic impact on a substantial number of small entities.- The amendments -

being proposed impose)6 additional cost on affected licensee

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• i b n,,y t+ 0t/W n c>4 Backfit Analysis (jihe NRC has determined that the backfit rule,10 CFR 50.109, does not apply-to this proposed rule, and therefore, that a backfit analysis is not required for this proposed rule because these amendments do not involve any provisions which would impose backfits as defined in 10 CFR 50.109(a)(1).

List of Subject t H O CTR h r+ 73-J j,

j A C. t (d, l pva\\ tie

-(d Hazardous materials gtransportation, Incorporation by reference / Nuclear 4materials, Nuclear power plants and reactors,-Penehy71(eporting and recordkeeping requirements, Security measures.

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\\ % \\6e s, A Accounting,4 azardous materials-transportation, Material control and j

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accounting, Nuclear materials, Packaging.and containers, P^rf tydadiation

protection, Reporting and recordkeeping requirements, Scientific equipment,.

Special nuclear material.

For the reasons set.out in the preamble and under 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-toladopt-the following L

amendment to 10 CFR Parts 73 and 74.

l PART 73--PHYSICAL PROTECTION OF PLANTS AND MATERIAL 1.

The authority citation for Part 73 continues to read as follows:

4.at i >

LIC ANNOUN-0F INSPEC 0F MEMO

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if.3T 7 3-FGY51Cis Fh61EWIVN w ruarii5 AND-tiAu.ruhL5 AUTilORITY: Gees, 53, 101, 68 Stat. 930, 948, as ainended, sec. 147, 94 Stat. 780 (42 U.S.C.

2073, 2107, 2001); sec. 201, as amended, 204, 88 Stat. 1242,.as amended, 1245'(42 U.S.C. 5841, 5844).

Doction 73.1 also issued under secs. 135, 141 Pub. L. 97 425, 90 Stat. 2232, 2241 (42 U.S.C, 10155, 10161),

S.et.ivu 73.37(f) also issued under see 301, Pub.

L.96-295, 94 Stat. 789 (42 U.S.C.

5841 note).

Section 73.57 is issued under sec. 000, Pub.

L.99-399, 100 Stat. 876 (42 0 S.C.

2169).

Fc.r the purpc.ses of see. 223, 68 Stat 958, an arnended ( 42 U.S.C. 2273);f[.73.21, 73.37(g), and 73.55 are issued under sec.

161b, C6 Stat. 948, as amended (42 U.C.C. 2001(b)); fd73.20, 73.24, 73.25, 73.26, 73.27, 73.37, 73.40, 73.45, 73.40, 75.50, 73.55, and 73.67 are iss.aod under scc. 1Gli, 68 Stat G49, as amended (42 U.S.C 2001(i)); andf173.20(c)(1), 73.24(b)(1), 75.TG(b)(3),

(h)(G), and (h)(4), 73.27(a) and (b), 73.37(f), 73.40(b) and (d),

73.46(g)(6) and (h)(2), 73.50(g)(2), (3)(111)(D), and (h),

73.55(h)(2) and (4)(iii)(B), 73.57, 75.70, 73.71 and 73.72 are iscued under nee. 1010, 60 Stat. 950, ac amended (42 U.S.C.

2001(v))

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MAY 13 M g2.

In 573.46, paragraph (d)(15) is added to read as follows:-

173.46. Fixed site physical protection systems, subsystems, components, and procedures.

[td) ppy Qll5) The licensee rA&fnot announce or otherwise communicate to its employees or site contractors the arrival and presence of an NRC inspector unless specifically requested to do so by the NRC inspector.

Y y

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Y O O CFFrPART 74 - MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL h.TheauthoritycitationforPart74continuestoreadasfollows:

l ora t 'd.

p.In174.81, paragraph (d)isaddedtoreadasfollows:

574.81 Inspections.

3d) At a fuel cycle facility using or possessing a formula quantity or more of strategic special nuclear material, the licensee shMnof'an$ ounce or otherwise communicate to its employees or site contractors the-arrival and presence of an NRC safeguards inspector unless specifically requested to do so by the inspector.

//DatedatRockville,MDthis day of 1992.

For the Nuclear Regulatory Commission.

James M. Taylor; Executive Director for Operations.

4

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AUTiiORITY: Seco. 53, 57, 161, 102, 183, 68 Stat.-930, 932, 948, 953, 954, ao amended, neo. 234, 83 St.at. 444, an amended (42 U.S.C.

2073, 2077, 2201, 2232, 2233, 2282); nece. 201, as amended 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.

5841, 5842, 5846).

For the purponen of soc. 223, 68 Stat. 958, as amended (42 j

U.S.C.

2273); $574.17, 74.31, 74.33, 74.51, 74.53, 74.55, 74.57, 74.59, 74.81, and 74.82'are issued under eeca. 161b and 1611, 68 Stat. 940, 949, as amended (42 U.S.C.

2201(b) and 2201(1)); and SS74.11, 74.13, 74.15, and 74.17 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

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0 DRAFT CONGRESSIONAL LETTER IIAY131992

Dear Mr.. Chairman:

The Nuclear Regulatory Commission (NRC) has sent to the Office of the' Federal-Register for publication the enclosed proposed amendment-to the' Commission's:

j rules in 10 CFR Parts 73 and 74. The amendment, if adopted, would-ensure that the presence of NRC safeguards inspectors at.affected sites is'not announced

]

or otherwise communicated to licensees and contractor personnel without the-expressed request to do so by the inspector. The sites affected are-comprised of fuel cycle facilities using or possessing a formula quantity of strategic-special. nuclear material. The proposed rule will increase the effectiveness of unannounced safeguards inspections and will enable a safeguards inspector to get a more accurate view of normal operations at the facility.

Similar requirements for power reactor 1_icensees were published in October 1988.- This proposed rule is expected to have no economic impact on'affected licensees, the NRC, or the public.

Sincerely, 1

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-Bernero Office of e

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NAY 2 61992 OFFICE REVIEW 0F DRAFT RULEMAK MEMORANDUM FOR: Donnie H. Grimsley, Director Division of Freedom of Information and Publications Branch, ADM Stuart A. Treby, Assistant General Counsel for Rulerr.aking and Fuel Cycle, OGC FROM:

Robert F. Burnett, Director Division of Safeguards and Transportation, NMSS

SUBJECT:

OFF;CE REVIEW OF DRAFT PROPOSED RULEMAKING -

LICENSF.ES' ANN 0UNCEMENTS OF SAFEGUARDS INSPECTIONS The enclosed draft proposed rule is provided for y % review, comment, and office concurrence or indication of no legal objeuion, as appropriate.

The amendments propose requirements to ensure that the presence of Nuclear Regulatory Commission safeguards inscectors at certain fuel cycle facilities is not announced or otherwise communicoted to licensees or contractor personnel without the expressed request to do so by the inspector.

Similar requirements for power reactm %easees were issued October 25, 1988 (53 FR 42939).

Flease provide your response by c.o.b. Friday, June 5, 1992. Staff contact is Priscilla A. Dwyer, 504-2478. Thank you.

Ondnai signec t>

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Robert F. Burnett, Director sr-Division of Safeguards and Transportation, NMSS

Enclosure:

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WASHINoToN, D.C. 20666 MEMORANDUM FOR:

James M. Taylor Executive Director for Operations FROM:

Robert M. Bernero, Directnr Office of Nuclear Material Safety and Safeguards

]

SUBJECT:

LICENSEES' ANNOUNCMENTS OF SAFEGUARDS INSPECTIONS RULEMAKING Attached for your signature is a proposed rule to be published in the Federal Register that amends 10 CFR Part 73, " Physical Protection of Plants and Mater-ials" and 10 CFR Part 74, " Material Control and Accounting of Special Nuclear Material" (Attachment 1). These amendments propose requirements to ensure that the presence of Nuclear Regulatory Comission (NRC) safeguards inspectors at certain fuel cycle facilities is not announced or otherwise comunicated to licensees and contractor personnel without the expressed request to do so by the inspector. Affected facilities are limited to fuel cycle facilities using or possessing a formula quantity of strategic special nuclear material.

The intent of the proposed rule is to increase the effectiveness of unannounced inspections and to enable a safeguards inspector to get :; more accurate view of normal operations at affected facilities.

Similar requirements for power reactor licensees were issued October 25, 1988 (53 FR 42939). This rulemaking is expected to have no economic impact on affected licensees, tre NRC, or the public.

Backfit Analysis:

The staff has determined that a backfit analysis is not required for this proposed rulemaking because these amendments do not involve any provisions which would impose backfits as defined in 10 CFR 50.109(a)(1).

Notices:

A notice to the Comission that the EDO has signed this rule is enclosed for inclusion in the next Weekly Staff Notes (Attachment 2). The appropriate Con-gressional Comittees will be notified (Attachment 3). A copy of the proposed rule will be sent to affected licensees.

Coordination:

The Office of Administration concurs in these amendments. The Office of the General Counsel has no legal objection.

Robert M. Bernero Director Office of Nuclear Material Safety and Safeguards Attachments:

1.

Federal Register Notice of Proposed Rulemaking 2.

Draft Weekly Staff Notes Item

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- g roved for Publication The Commission delegated to the EDO (10 CFR 1.31(a)(3)) the authority to s

develop and-promulgate rules as defined in the APA (5.U.S.C. 551-(4)) subject -

to the limitations in NRC Manual Chapter 0103, Organization.and Functions.

Office of the Executive Director for Operations, paragraphs 0213, 038, 039, and 0310.

The enclosed rule, entitled " Licensees' Announcements of Safeguards Inspections" proposes.to amend Parts 73 and 74 to ensure that the presence of NRC-safeguards inspectors at certain fuel cycle facilities is not announced or otherwise.

comunicated to licensees or contractor personnel without the expressed request to do so by the inspector.

This proposed rule does not constitute a significant question of policy. nor does it amend regulations contained in 10 CFR Parts 7, 8, or 9 Subpart C concerning matters of policy.

I therefore', find that this rule is within'the scope of my rulemaking authority and am proceeding to issue it.

Date James M. Taylor Executive Director for Operations l:

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2' MAY_ 2 61992 i

DRAFT NUCLEAR REGULATORY COMMISSION 10 CFR Parts 73 and 74 RIN Licensees' Announcements of Safeguards Inspections AGENCY: Nuclear Regulatory Comission.

ACTION: Proposed rule.

The Nuclear Regulator

SUMMARY

25,1988 (53 FR 42939) y Comission (NRC) amended its regulations on October to require that the presence of-NRC inspectors on nuclear power reactor sites is not widely comunicated or broadcast to licensee and contractor personnel without the expressed request to do so by_

the inspector. This change allowed NRC inspectors to observe on-going activi-ties as they are being performed without advanced notification of the inspec-tion to licensee and contractor personnel.

This proposed rule requires a similar provision be applied to the presence of safeguards-inspectors at certain fuel cycle facilities.

DATES: Coments must be received on or before (90 days after publication).

Comments received after this date will be considered if it is practical to do so, but only those coments received on or before this date can be assured of consideration.

ADDRESSES: Coments or suggestions regarding the proposed amendments should be sent to the Secretary of the Comission, U.S. Nuclear Regulatory Comis-sion Washington, DC 20555, Attention: Docketing and Service Branch. Copies of coments received will be available in the NRC Public Document Room at 2120 L Street NW., Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:

Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear kegulatory Comission, Washington, DC 20555. Telephone (301)504-2478.

SUPPLEMENTARY INFORMATION: This proposed rulemaking applies to fuel cycle facilities using or possessing a fonnula quantity of strategic special nuclear -

material. The NRC proposes that no_ access control measures or other means may be employed by the licensee or its contractor to intentionally give notice to-other persons of the arrival and presence of an NRC safeguard > inspector at a fuel cycle facility using 'or possessing a formula quantity. of < strategic spe-cial nuclear material, unless the licensee is specifically requested to do so by the NRC inspector. The intent _of these amendments is to increase the effectiveness of unannounced inspections and to enable an inspector to-get a more accurate view of nonnal" operations at affected facilities.

Environmental Impact: Categorical Exclusion The NRC'has determined that this proposed change is the type of action described in categorical exclusion 10 CFR 51.22(c)(2). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for the proposed rule.

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.y DRAFT Pape mork Reduction Act Statement The propose.J rule does not contain a new or amended infonnation collection requirement subject to the Paperwork. Reduction Act of 1980 (44 U.S.C. 3501 et-seq.). Existing requirements were approved by the Office of Management and Budget approval number Regulatory Analysis This proposed rule will have no significant impact on state and local governments and geographical regions.

It may have an impact-on health, safety, and the environment, but only in the sense of preventing adverse impacts on health, safety, and the environment through more effective inspec--

tions. The rule makes it clear that NRC inspectors are to have a realistic picture of the actual conditions at a site during the inspection process and, therefore, be better able to identify potentially dangerous _ conditions and/or, practices for corrective action and to ensure that licensees comply with laws, regulations, and orders administered by the NRC. _This constitutes the regulatory analysis for this. proposed rule.

Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b)), the-Commission certifies that this rule, if adopted, will not have a significant economic impact on a substantial number of small entities. The amendments being proposed should impose no additional cost on affected licensees.

1 Backfit Analysis L

-The NRC has determined that the backfit-rule, 10 CFR 50.109, does not apply to this proposed rule, and therefore, that a backfit analysis is not required for L

-this proposed rule because these amendments do not involve any provisions which would impose backfits as defined in 10- CF_R _50.109(a)(1).

List of Subject in 10 CFR Part 73 Hazardous materials-transportation Incorporation by reference. Nuclear materials, Nuclear power plants and reactors, Penalty, Reporting and recordkeeping requirements. Security measures.

List of Subject in 10 CFR Part 74-Accounting, Hazardous materials-transportation, Material control and accounting, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting and recordkeeping requirements. Scientific equipment, Special' nuclear material.

~

For the reasons set out in the preamble and under 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 fcilowing amendment to 10 CFR Parts 73 and 74, f

i

MAY 261992 PART 73 - PHYSICAL PROTECTION OF PLANTS AND HATERIAL DRAFT 1.

The authority citation for Part 73 continues to read as follows:

2.

In 573.46, paragraph I,d)(15) is added to read as follows:

673.40.

Fixed site physical protection systems, subsystems, componen *. and procedures.

(d)

(15) The licensee shall not announce or otherwise conrnunicate to its employees or site contractors the arrival and presence of an NRC inspector unless specifically requested to do so by the NRC inspector.

10 CFR PART 74 - MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL 3.

The authority citation for Part 74 continues to read as follows:

4.

In 674.81, paragraph (d) is added to read as follows:

674.81 Inspections.

(d) At r "uel cycle facility using or possessing a fonnula quantity or more of strat special nuclear material, the licensee shall not announce or otherwis muntcate to its employees or site contractors the arrival and presence s an NRC safeguards inspector unless specifically requested to do so by the inspector.

Dated at Rockville. MD this,

day of 1992.

For the Nuclear Regulatory Comission.

James M. Taylor Executive Director for Operations i

i

DRAFT MY1 g WEEKLY REPORT TO THE COMMISSION OFFICE OF NUCLEAR MA1ERIAL SAFETY AND SAFEGUARDS Proposed Rule Sioned by EDO On

, 1992, the Executive Director for Operations (EDO) approved a proposed rule that would amend 10 CFR Part 73, ' Physical Protection of Plants and Haterials' and 10 CFR Part 74, 'Haterial Control and Accounting of special Nuclear Material,' by adding provisions to ensure that the presence of HRC safeguards inspectors at certain fuel cycle facility sites is not announced or otherwise communicated to licensees and contractor personnel without the expressed request to do so by the inspector.

Affected sites are limited to fuel cycle facilities using or possessing formula quantities of strategic special nuclear material.

The proposed rule will increase the effectiveness of unannounced safeguards inspections and enable a safeguards inspector to get a more accurate view of normal operations at affected facilities.

Similar requirements for power reactor licensees were published in October 1988.

This constitutes notice to the commission that, in accordance with the rulemeaking authority delegated to the EDO, the EDO has signed this proposed rule for publication in the Federal Register.,.

LIC ANNOUN OF INSPEC 0F MEMO 7

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L DRAFT' CONGRESSIONAL LETTER MAY 1 1991

Dear Mr. Chairman:

The Nuclear Regulatory Comission (NRC) has sent to the Office of the Federal Register for publication the enclosed proposed amendment to the Comission's

]

rules in 10 CFR Parts 73 and 74. The amendment, if adopted, would ensure that the presence of NRC safeguards inspectors at affected sites is'not announced 1

or otherwise communicated to licensees and contractor personnel without the p

expressed request to do so by the inspector. The sites affected are comprised of fuel cycle facilities using or possessing a formula quantity of strategic special nuclear material. The proposeo rule will increase the effectiveness of unannounced saftguards inspections and will enable ~ a safeguards inspector to get a more accurate view of normal operations at the facility.

Similar requirements for power reactor licensees were published in October 1988.

This proposed rule is expected to have no economic impact on affected licensees, the NRC, or the public.

k Sincerely, Robert M. Bernero Office of Nuclear Material Safety and Safeguards

.t LIC ANNOUN OF INSPEC 0F MEMO 8

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REVIEW 0F PROPOSED RULEMAKING MAY 2 61992 HEMORANDUM FOR:

g',5 M. Collins, Chief ir. clear Haterials Safety and Safeguards Branch Division of Radiation Safety and Safeguards, Ri!

FROM:

Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation, NMSS

SUBJECT:

REVIEW 0F PROPOSED RULEPAKING Enclosed for your review and comment is a draf t proposed rulemaking to amend 10 CFR Parts 73 and 74. The purpose of the proposed rule is to ensure that the presence of NRC safeguards inspectors at Category I fuel cycle facility sites is not announced or otherwise conmunicated to licensees and contractor personnel without the expressed request to do so by the inspector.

Similar requirements for power reactor licensees were published in October 1988.

Please provide your congnents to Priscilla A. Dwyer, SGDB/SGTR by c.o.b.,

Friday, June 5,1992.

Orighal Signed by The 230 F. Sherr Theodore S. Sherr, Chief Domestic Safeguards Branch Division of Safeguards and Transportation NMSS

Enclosure:

As stated DISTRIBUTION:

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MEMORANDUM FOR:

James M. Taylor Executive Director for Operations FROM:

Robert M. Bernero Director Office of Nuclear Material Safety and Safeguards

SUBJECT:

LICENSEES' ANNOUNCHENTS OF SAFEGUARDS INSPECTIONS RULEMAKING Attached for your signature is a proposed rule to be published in the Federal Register that amends 10 CFR Part 73, " Physical Protection of Plants and Mater-ials" and 10 CFR Part 74, Material Control and Accounting of Special Nuclear Material"(Attachment 1). These amendments propose requirements to ensure that the presence of Nuclear Regulatory Commission (NRC) safeguards inspectors at certain fuel cycle facilities is not announced or otherwise communicated to licensees and contractor personnel without the expressed request to do so by-the inspector. Affected facilities are limited to fuel cycle facilities using or possessing a formula quantity of strategic special nuclear material. The intent of the proposed rule is to increase the effectiveness of unannounced inspections and to enable a safeguards inspector to get a more accurate. view of normal operations at affected facilities.

Similar requirements for power reactor licensees were issued October 25, 1988 (53 FR 42939). This rulemaking is expected to have no economic impact on affected licensees, the NRC, or the public.

Backfit Analysis:

The staff has determined that a backfit analysis is not required for this proposed rulemaking because these amendments do not involve any provisions whichwouldimposebackfitsasdefinedin10CFR50.109(a)(1).

Notices:

A notice to the Comission that the EDO has signed this rule is enclosed for inclusion in the next Weekly Staff Notes (Attachment 2). The appropriate Con-gressinnal Comittees will be notified (Attachment 3). A copy of the proposed rule will be sent to affected licensees.

Coordination:

The Office of Administration concurs in these amendments. The Office of the General Counsel has no legal objection.

Robert M. Bernero, Director Office of Nuclear Material Safety-and Safeguards Attachments:

1.

Federal Register Notice of Proposed Rulemaking 2.

Draft Weekly Staff Notes Item -

DRAFT 1

s Approved For Publication NAY 2 61992 The Comission delegated to the EDO (10 CFR 1.31(a) 3)) the authority to develop and promulgate rules as defined in the APA 5 U.S.C. 551 (4)) subject to the limitations in NRC Hanual Chapter 0103, Organization and Functions.

Office of the Executive Director for Operations, paragraphs 0213, 038, 039, and 0310.

The enclosed rule, entitled " Licensees' Announcements of Safeguards Inspections" proposes to amend Parts 73 and 74 to ensure that the presence of NRC safeguards inspectors at certain fuel cycle facilities is not announced or otherwise comunicated to licensees or contractor personnel without the expressed request to do so by the inspector.

This proposed rule does not constitute a significant question of policy, nor does it amend regulations contained in 10 CFR Parts 7, 8, or 9 Suspart C concerning matters of policy.

I, therefore, find that this rule is within the scope of my rulemaking authority and am proceeding to issue it.

Date James M. Taylor Executive Director for Operetions s*

no m t

DRAFT NUCLEAR REGULATORY COMMIS$10N 10 CFR Parts 73 and 74 RIN Licensees' Announcements of Safeguards Inspections

• AGENCY: Nuclear Regulatory Comission.

ACTION: Proposed rule.

25,1988 (53 FR 42939) y Commission (NRC) amended its regulations on

SUMMARY

The Nuclear Regulator to require that the presence of NRC inspectors October on nuclear power reactor sites is not widely comunicated or broadcast to licensee and contractor personnel without the expressed request to do 50 by the inspector. _ This change allowed NRC inspectors to observe on-going activi-ties as they are being perfonned without advanced notification of the inspec.

tion to licensee and contractor personnel. This proposed rule requires a similar provision be applied to the presence of safeguards inspectors at certain fuel cye.le facilities.

DATES: Coments must be received on ur before (90 days after publication).

Comments received after this date will be considered if it-is practical to do-so, but only those coments-received on or before this date can be assured of consideration.

ADDRESSES: Coments or suggestions regarding the proposed amendments should be sent to the Secretary of the Comission. U.S. Nuclear Regulatory Comis-sion, Washington, DC 20555, Attention: Docketing and Service Branch. Copies of coments received will be available in the NRC Public Document Room at 2120 L Street NW., Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:

Priscilla A. Dwyer, Office of Nuclear Naterial Safety and Safeguards U.S. Nuclear Regulatory Comission.

Washington, DC 20555. Telephone (301) 504-2478.

SUPPLEMENTARY INFORMATION: This proposed rulemaking applies to fuel cycle facilities using or possessing a fonnula quantity of strategic -special nucisar material. The NRC proposes that no access control measures or other means may be employed by the_ licensee or its contractor to intentionally give notice to other persons of the arrival and presence of an NRC safeguards inspector at 'a-fuel cycle facility using or possessing a fonnula quantity. of strategic spe-cial nuclear material,-unless the licensee is specifically requested to do so by the NRC inspector. The intent of these amendments is to increase the effectiveness of unannounced inspections and to enable an inspector to get a more accurate view of nonnal operations at affected facilities.

Environmental Impact: Categorical Exclusion

_The NRC has determined that this proposed change is the type _ of action -

described in categorical exclusion 10 CFR 51.22(c)(2).

Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for the proposed rule, f

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DRAFT Paperwork Reduction Act Statement The proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). Existing requirements were approved by the Office of Management and Budget approval number Regulatory Analysis This proposed rule will have no significant impact on state and local governments and geographical regions.

It may have an impact on health.

safety, and the environment, but only in the sense of preventing adverse impacts on health, safety, and the environment through more effective inspec-tions. The rule makes it clear that NRC inspectors are to have a realistic picture of the actual conditions at a site during the inspection process and, therefore, be better able to identify potentially dangerous conditions and/or practices for corrective action and to ensure that licensees comply with laws, regulations, and orders administered by the NRC. This constitutes the regulatory analysis for this proposed rule.

Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b)), the Comission certifies that this rule, if adopted, will not have a significant economic impact on a substantial number of small entities. The amendments being proposed should impose no additional cost on affected licensees.

Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this proposed rule, and therefore, that a backfit analysis is not required for this proposed rule because these amendments do not involve an which would impose backfits as defined in 10 CFR 50.109(a)(1)y provisions List of Subject in 10 CFR Part 73 Hazardous materials-transportation, Incorporation by reference.

Nuclear materials Nuclear power plants and reactors, Penalty, Reporting and recordkeeping requirements, Security measures.

List of Subject in 10 CFR Part 74 Accounting Hazardous materials-transportation, Material control and accounting, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting and recordkeeping requirements Scientific equipment, Special nuclear material.

For the reasons set out in the preamble and under 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 amendment to 10 CFR Parts 73 and 74.

f

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M 2 6 1992

.c 1

DRAFT PART 73 - PHYSICAL PROTECTION OF PLANTS AND MATERIAL 1.

The authority citation for Part 73 continues to read as follows:

4 2.

In 673.46, paragraph (d)(15) is added to read as follows:

573.46. Fixed site physical protection systems, subsystems, components, and procedures.

(d)

(15) The licensee shall not announce or otherwise cournunicate to-its employees or site contractors the arrival and presence of an NRC-inspector unless 3

specifically requested to do so by the NRC inspector.

10 CFR PART 74 - MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NVCLEAR MATERIAL 1

3.

The authority citation for Part 74 continues to read as follows:

4.

In $74.81,-paragraph (d) is added to read as follows:

674.81 Inspections.-

(d) At a fuel cycle facility using or possessing a formula quantity or more of strategic special nuclear material, the licensee shall not announce or otherwise consnunicate to its employees or site contractors the arrival and presence of an NRC safeguards inspector unless specifically requested to do so 1

by the inspector.

Dated at Rockville MD this day of 1992.

For the Nuclear Regulatory Commission.

James M. Taylor.

1 Executive Director for Operations i

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DRAFT NAY 18 %

WEEKLY REPORT TO THE COMMISSION Off!CE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS Prooosed Rule Stoned by EDO On 1992, the Executive Director for Operations (EDO) approved a proposed rule that would amend 10 CFR Part 73, ' Physical Protection of Plants-and Materials

• and 10 CFR Part 74, "Haterial Control and Accounting of Special Nuclear Material," by adding provisions to ensure that the-presence of NRC safeguards inspectors at certain fuel cycle facility sites is not announced or otherwise communicated to licensees and contractor personnel without the expressed request to do so by the inspector.- Affected sites are limited to fuel cycle facilities using or possessing formula quantities of strategic.

special nuclear material. The proposed rule will increase the effectiveness of unannounced safeguards _ inspections and enable a safeguards inspector to get a more accurate view of normal operations at affected facilities.

Similar requirements for power reactor licensees were published in October 1988.

This constitutes notice to the commission that, in accordance with the rulemeaking authority delegated to the EDO, the EDO has signed this proposed rule for publication in the Federal Register _,

(

Attachmen_t 2 f

LIC ANNOUN OF INSPEC OF MEM0' 7

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Y

DRAFT CONGRESSIONAL LETTER.

ERY13SE

Dear Mr. Chairman:

i The Nuclear Regulatory Comission (NRC) has sent to the Office of the Federal i

I Register for publication the enclosed proposed amendment to the Comission's rules in 10 CFR Parts 73 and 74. The amendment, if adopted, would ensure'that the presence of HRC safeguards inspectors at affected sites is not announced 1

or otherwise communicated to licensees and contractor personnel without the expressed request to do so by the inspector. The sites affected are comprised of fuel cycle facilities using or possessing a formula quantity of strategic special nuclear material.

The proposed rule will increase the effectiveness of unannounced' safeguards inspections and will enable a safeguards inspector j

. to get a more accurate view of normal operations at the facility.

Similar requirements for power reactor licensees were published in October 1988. This proposed rule is expected to have no economic impact on affected licensees, the NRC, or the public.

Sincerely, Robert M. Bernero Office of Nuclear Material Safety and Safeguards J

LIC ANNOUN OF INSPEC OF. MEMO 8

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OCT 011972 f40TE 10:

File FROM:

Priscilla A. Dwyer Senior Safeguards Technical Analyst SGDB/SGTR

SUBJECT:

TELEPil0NE CONVERSATION WITil COMMISSION staff I was contacted by Josie Piccone of Commissioner DePlanck's staff on September 30, 1992 to discuss our Licensees' Announcements of Safeguards inspections rulemaking, lier primary questions were - why a rule for two licensees (as opposed to license amendments or orders) - and why did the rule 90 to the.

Commission because it doesn't seem to be a major policy issue.

I responded to the first question consistent with the responses we had given the E00's office on the same question. With respect to the second questiot,, I acknowledged that the package had originally been prepared for the ED0's signature but had been revised in response to the ED0's request to obtain Commission approval for the rulemaking.

I.

Priscilla A. Dwyer Senior Safeguards Technical Analyst SGDB/NMSS cc; B. Mendelsohn, SGDB T. Sherr, SGDB f

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[hk O ll October 7, 1992 NOTE TO:

File FROM:

Priscilla A. Owyer, Sr. SG Technical Analyst Requirements and Oversight Section SGDB/SG1R SUBJECT; TELEPHONE CONVERSATION WITH COMMISSION STAFF Steve Crockett of Commissioner Remick's office called me on October 7, 1992 to discuss the Licensees' Announcements of Safeguards Inspections rulemaking.

He requested clarification on how the proposed would be applied.

The example he cited was a secretary telling phone callers that her boss was unavailable to take calls because her boss was with an NRC inspector.

Steve wanted to know if this would be prohibited under the )roposed regulation.

In response, I described the actual incident at UNC t1at prompted the initiation of the rulemaking and stated that we recognize that some individuals need to know about the inspections but our intent is to prohibit the intentional and wide broadcast or dissemination of information concerning the presence of an NRC inspector on site.

Priscilla A. Dwyer Sr. SG Technical Analyst Requirements and Oversight Section SGDB.SGTR cc: B. Mendelsohn, SGDB l

T. Sherr, SGDB i

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' f}))k EO28 NUCLEAR REGULATORY COMMISSION 10 CFR Parts 73 and 74 Licensee Announcements of Inspections at fuel Cycle Facilities Using or Possessing Formula Quantities of Strategic Special Nuclear Material AGENCY:

Nuclear Regulatory Comission.

ACTION:

Proposed rule.

SUMMARY

The Nuclear Regulatory Commis31on (NRC) amended its regulations on October 25, 1988 (53 FR 42939) to require that the presence of NRC inspectors on nuclear power reactor sites is not widely communicated or broadcast to licensee and contractor personnel without the expressed request to do so by the inspector.

This change allowed SRC inspectors to observe on going activities as they are being performed without advanced notification of the inspection to licensee and contractor personnel.

This proposed rule requires a similar

~

provision be applied to the presence of an inspector at certain fuel cycle facilities.

DATES:

Comments must be remived on or before (45 days af ter publication).

Comments received after this date will be considered if it is practical to do so, but only those comments received on or before this date can be assured of consideration.

ADDRESSES:

Comments or suggestions regarding the proposed amendments should be sent to the Secretary of the Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Attention: Docketing and Service Branch.

Copies of com-ments received will be available in the NRC Public Document Room at 2120 L Street NW., Washington, DC 20555.

FOR FURTHER INFORMATION CONTACT:

LIC ANNOUN OF INSPEC 3

nuss DRAFT SUPPLEMENTARY INFORMATION: This proposed rulemaking applies to fuel cycle f acilities using or possessing a formula quantity of strategic special nuclear material.

The NRC proposes that no access control measures or other means may be employed by the licensee or its contractor to intentionally give notice to other persons of the arrival and presence of a NRC inspector at a fuel cycle facility using or possessing a formual quantity of strategic special nuclear material, unless the licensee is specifically requested to do so by the NRC inspector.

The intent of these amendments is to increase the effectiveness of unannounced inspections and to enable an inspector to get a more accurate view of normal operations at affected facilities.

Environmental Impact:

Categorical Exclusion The NRC has determined that this proposed change is the type of action described in categorical exclusion 10 CFR 51.22(c)(2).

Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for the proposed rule.

Papt.vork Reduction Act Statement The proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

Existing requirements were approved by the Office of Management and Budget approval number Regulatory Analysis This proposed rule will have no significant impact on state and local governments and geographical regions.

It may have an impact on health, safety, and the envi-ronment, but only in the sense of preventing adverse impacts on health, safety, and the environment through more effective inspections.

The rule will make it clear that NRC inspectors are to have a realistic picture of the actual condi-tions at a site during the inspection process and, therefore, be better able to identify potentially dangerous conditions and/or practices for corrective action LIC ANNOVN OF INSPEC 4

FEB 2 8 f391 DRApr and to ensure that licensees comply with laws, regulations, and orders administered by the NRC.

This constitutes the regulatory analysis for this proposed rule.

Regulatory Flexibility Certification As required by the Regulatory Flexibility Act of 1980 (5'U.S.C. 605(b)), the Commission certifies that this rule, if adopted, will not have a significant economic impact on a substantial number of small entities.

The amendments being proposed should impose no additional cost on affected licensees.

Backfit Analysis The NRC has determt

. that the backfit rule,10 CFR 50.109, does not apply to this proposed rule, and therefore, that a backfit analysis is not required because these amendments do not impose requirements on 10 CFR Part 50 licensees.

List of Subjects in 10 CFR Part 73 Hazardous materials-transportation, Incorporation by reference, Nuclear materials, Nuclear power plants and reactors, Penalty, Reporting and recordkeeping requirements, Security measures.

List of Subjects in 10 CFR Part 74 Accounting, Hazardous materials-transportation, Material control and accounting, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Special nuclear material.

For the reasons set out in the preamble and under 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 amendment to 10 CFR Parts 73 and 74.

LIC ANNOUN OF INSPEC 5

NB 2 8 D PART 73--PHYSICAL PROTECTION OF PLANTS AND MATERIAL l

1.

The authority citation for Part 73 continues to read as follows:

2.

In $73.46, paragraph (d)(15) is added to read as follows:

573.46.

Fixed site physical protection systems, subsystems, components, and procedures.

A A

A A

A (d)

(15) The licensee shall not announce or otherwise communicate to its employees or site contractors the arrival and presence of an NRC inspector unless specifically requested to do so by the NRC inspector.

10 CFR PART 74 - MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL 3.

The authority citation for Part 74 continues to read as follows:

4.

In $74.81, paragraph (d) is added to read as follows:

S74.81 Inspections.

A A

A A

A l

(d) At a fuel cycle facility using or possessing a formula quantity or more of strategic special nuclear material, the licensee shall not announce or otherwise communicate to its employees or site contractors the arrival and 1

presence of an NRC inspector unless specifically requested to do so by the i

NRC inspector.

l l

LIC ANNOUN OF INSPEC 6

EB 2 8 O 1991.

Dated at Rockville, MD this day of For the Nuclear Regulatory Comission.

James H. Taylor Executive Director for Operations LIC ANNOUN OF INSPEC 7

DRAFT gr e 28 O ORAFT WEEKLY REPORT TO THE COMMISSION 0FFICE OF NUCLEAR REGULATORY RESEARCH Proposed Rule Signed by EDO On

,1991, the Executive Director for Operations approved a proposed rule that would amend 10 CFR Part 73, " Physical Protection of Plants and Hater-ials" and 10 CFR Part 74, " Material Control and Accounting of Special Nuclear Material," by adding provisions to ensure t ht the presence of NRC inspectors at certain fuel cycle facility sites is not announced or otherwise communicated to licensees and contractor personnel without the expressed request to do so by the inspector.

Af fected sites are limited to f:.;e1 cycle facilities using or possessing formula quantities of strategic special nuclear material.

The proposed rule will increase the effectiveness of unannounced inspections and enable an inspector to get a more accurate view of normal operations at affected facilities.

Similar requirements for power reactor licensees were published in October 1988.

LIC ANNOUN OF INSPEC 8

DRA:T 20 DRAFT CONGRESSIONAL LETTER

Dear Hr. Chairman:

The Nuclear Regulatory Coenission (HRC) has sent to the Office of the Federal Register for publication the enclosed proposed amendment to the Connission's rules in 10 CFR Parts 73 and 74.

The amendment, if adopted, would ensure that the presence of HRC inspectors at affected sites is not announced or otherwise communicated to licensees and contractor personnel without the expressed request to do so by the inspector.

The sites affected are comprised of fuel cycle facilities using or possessing a formula quantity of strategic special nuclear material.

The proposed rule will increase the effectiveness of unannounced inspections and will enable an inspector to get a more accurate view of normal operations at the facility.

Similar requirements for power reactor licensees were published in October 1988.

This propo:ed rule is expected to have no economic impact on affected licensees, the NRC, or the public.

Sincerely, EricS.Beckjord, Director Office of Nuclear Regulatory Research LIC ANNOUN OF INSPEC 9

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4deral Register / Vol 81. No. 53 / Friday. March 18,19% / Popned Rules SPts

=

enamination shall be 12118 per hour for h:ur for theipart which b tot covered Progro for the cost cf the inspection.

bue time and 124 f.a per hour for under the base time, overtime. and/or service furnished on any holidey es ertirne incJuding Saturdays. Sunday 6, holiday costs.

epecifiedin peregreph(b)of this netton: or for more than 8 houre on any and hohdays, as provided for in i 35114. PART 35$4 AWENDED) day, or enore then 60 hours6.944444e-4 days <br />0.0167 hours <br />9.920635e-5 weeks <br />2.283e-5 months <br /> in any cnd Su 80 per hout for certsin administrative workweek Sunday laboratory services whit.h are not 12 %e authority citation for Part 356 covered under the base time. overtime, would be revised to read as follows:

through Saturdey, e

e cad /or hohday costs and which are n f USC tut tut.f CrR Ltr(s) required to detenntne the eligibthty of je g,g "S

I cny techtdtal animal fat for cenificeuen is Section 3&&.11 would be revised to

"*"'N under the repletions to this Part. Suc.h f;es shall be charged for the time reod as follows:

Ackng AdminisvorarJudSofety and rtquittd to render euch service,

$ &$L18 Char 9e for herv ca.

/nsperum Serv 4s.

including. but not limited to, the time The fus to be t.harged and coUected int Doc. a64ase nled s.17 4a a u ain) required for the trevel of the inspector or by the Administrstor shall be 121.16 per es.uwe coce n o u s inspectors in connection therewtth.

hour for base time,124 68 per hour for overtime. including Saturdays. Sundays.

and holidays, and $43.80 per hour for NUCL. EAR REQUL.AT0fiY PART 352H AWENDED) tetteln laboratory services which are COMWit$lON IL The authority citation for Part 312 not covered under the base time.

would be revised to read as follows:

overtime, and/or boliday cos4 Ouch NO N

fees shall reimburse the Service for the Avibrity: ? US C 1622,1624. 7 CMt i1?[3] costs or the inspection tarvice furnished.

,g.

atid (11. Ln

9. Section 352.5(c) would be revised to PART 362H AMENDED)

InaPoctors eted as follows:

14.The authority tltation for Part 362 AotNCYt Nuclear Regulatory would be revised to read as follows:

Commlulon.

• l M2.5 Fees and charyoe.

Authority: f US C 1621 ttJ4, ? CTR L1rls) ACTloor: Proposed rule.

(c)W fees to be charged and andlil.1 R avuuAny: The Nuclest Regulatory collected for service under the

16. Section 361.5(c) would be revised Commlulon is proposing to amend its regulatior e in this Part shall be et the to read as follows:

tervletions to ensure that the presence rate of $2118 per hour for base time, 124 68 per hour for overtime including l 3416 Fws aW charpee-of NRC inspectors on powet teer, tor sites is riot announced or otherwise Saturdsys. Sundays, and holidays, and

$4160 per hout for cartain laboratory (c)The fee

• to be charged and communicated to licensee and 3ernres which are not covered under cohected for service under the contractor personnel without the the base time, overtime, and/or hohday segulations in this part shall be at the expressed request to do so by the,*

costs Suri fees shall cover the costs of rate of 12118 per hour for bue time, inspector.This change will allow the the service end shall be chstged for the 124 t,8 per hour for overtime including NRC inspectors, badged at the fac$ry,'

time required to render suc.h service, Saturdays. Sundays, and holidays and to obsene ongoing acuvities as thiy are including. but not limited to, the time St3So per hout for certain laboratory belns performed without advanced required for the travel of the inspector or services which are no: covered unoer noufication of the inspection tolleensee.

Intrettors in connection therewith the bese time, overtime, and/or holldsy and contractor personnel. There is a dunns the regularly scheduled costs. Such fees shall cover the costs of need for this change because on the admimstrouve workweek the services and shall be charged for the possible altering of attention and time required for the travelof the performance levels of a licensee and/or "

inspector or inspectors in connection its contractors when the hcensee is PART 354H AMENDED) therewith during the regularly scheduled aware of NRC surveillance. Past administrative workweek incidences where site and/or contractor 10.The authority citation for part 354 personnel have been notified of NRC e would be revised to read as follows:

presence onsite have heightened Aubetry:? US C tea 2. trJ4 f CMt L17(3) P ART 841H AMENDED) concern in this ares.

DAtts: Submil comments by April 18, 18 The authority citation for Part 381 19L8. Comments received after this date

11. Section 354.101 (b) and (c) would would be revised to read as follows:

be revised to read as follows:

will be considered lf it is practical to do 4

so.but assurante of considerstion l 3R101 On a fee two.

and(i).En cannot be given except as to comments

17. Section 381.38(a) would be revised received an or before this date.

(b)The charges for inspection service to reod as ic!!ows:

Acontssts: Send corr.raents to:

will be based on the time required to perform auch services The hourly rate 13t144 overtime and housay hopection Secretary. U.S. Nuclear Regulatory Commisslon. Washington. DC 20555,

• • rvsoe.

shall be 121.18 for base time and $24.68 for overtime or holiday work (e)The rnanagement of an official AT'lM Docketirig and Service Branch.

(c) CharFes for certain laboratory estabbshment, an Irnporter. or an Hand delner comrnents to: Room l

analpis or laboratory examination of exporter shall pay the F'ood Safety and 1121,1717 H Street NW., Washington, rabbits under this part related to inspection Senice 124 66 per hour per DC 2.0555, between 7.30 a.m. and 4.16 l

inspection service shall be 143.80 per Program employee to reimburse the p.m.

l

rufer:i heesi:t i voim,'No:'u f hid' f Wrh'ia,'#d 1%iahMa..._..%is Enemine toruments tecticed st. %e Regulatory Anal sla

• Authority: 5.a tar. to3) tt(1'tst ie t. tu

' ' ' ^ ~

3 NRC Pubhc Document Rontn.171711

$treet NW. Wa shingt ao. DC 30515.

P*P O d O #8 tu. ter* tes p stat pas 937, en sn6a su, eH us. pm as amended. sec.tM ss Sist elgnificant impett oa state and local 3g4g se amended (42 U S C 2232. 2J23. 22H.

Post evarterra insonwarsoes C.Osf7ACT:

govern.n.ects cred geographacal cegions,

• r133, g pg,y:3;. 2733. 224 21J9. 22r3 ska Ctorge Berber.U $ Nuciter Reg 14 tory It may beve algnificant irnpact on heelth, 301. a s amended. 20c. 20dL M 6ssL 1M2, se l

Commt sion.Wesh n 1aepbone m =aton.DC 20555-sefety, and the environment. but only in

• mended u+4.1:se (u U.S C u41. u42.

o,e e of,r.,,n,m, ad e e,,e i,np.e, m.>

a sinda.

Eveesgests(tAmt sesegetisanoac This en health, safety, and the environment

[j proposed rule is intended Io ensure that tievugh more affectice inspections.%e r RC inspedore be granted immedie to intent of the ede is to clarify that NRC Section 6010 also tseved euutar se<a. 21. taL and unannounced scuss (i e, unfettrred insrectwo are to have a rnebstic iscture 6a bt saa sas. u amended (c UAc tut, actese egun alent to acce64 provided of the actualconditions at a elte, arvd m sec.101 % L ts.m as NWu US C 4332l Saetitics 5023. scJs taAL arid regular pla nt ernplo)ers) to licensed theetfwe, be beHH tble to idectify lec4hnet foUowing prope ident6 cation Potenbelly denrerous ermdiUons and/or loa A Imend War m LM. eit ht s'.S and comphance with sopuceble access precuces for corrective action and to H2 US C G35) Seebons 10.33a. 604sa,and Appendsi Q Moo *need ender nu.c. ttt:. Pub.

cuhtrol procedures. He NRC proposes ensure that hcansees comply with lanes, I.v3190 83 ht er,J lu UAC 4 32) thet no ecceee cor trol toeesuree at othee regu!alions, end orders adrainistered bk Inntka60J4 M E H doon M e m rnean: may be eroployed by the bcrnsee the NRC. Thie conaUtules tM regulatory mt. 86 %t 1su tu U AC ust) Seet6 ens or ita contractors Io intenuouaHy give enslysie for this proposed rela-So $6 60.m. aid 60 u eleo M ader PA Dohte to other persons of the archel Reguletory fledbility Certific,etloo L B7415,9e Stat tan (u U.$4 zue).

and presence til e NRC inspector at a facihty, unien the Ucenate is la andance whh b Regulatey

!*c tien SCLf4 As inmed uradet sec. I22, te specificaHy reguested to do so by the Wahy Acu MC.WL th bl 93s 62 US C ttui Sections nossost NRC inspector. There heve been Commlulan cerufies theI tlas rule does eleo luumd ender sec. IH, tis Stat DM. es er ded to UAC 32341 smtion satto et.o insf ances in the paet at eeverallaclutles not have a signifscant econornic (mpsc1 where the abihty of properly badged on a substanual number of sinali inoed e r e a u bL m u emended to USC ttasi Appendia F esso NRC inspectors to inspect and asses 6--

enoues The rule appbes only to on an unar t Dunced besit--actwlbes hetnsees authorit.ed to construct or luned ninder en ts7.as bles tu UAc g377 related to the hcense or construction oppste nudear power Mac6ts, who are f or the purposes of acc.EM.06 Stat Da se permit was corrpromised by the licensee not small business entitles within the emended (C U S C 2:?Jk 8 8 no 101st $1 employees or contrecior employees who meerdng of the act or implementing and kl. 60 44. 60 46,60 H 6044 and 40m(ej inic'rmed othen at the facihty of the refalet ons %erefore,a re ulatory are issued under oc te1(b) u bL s.ta, as presence of the NRCinspectors.The OpJb analysis bu not een amended 142 USC UUt&ll Il 210(b) and proposed change to 10 CFR 50.70 le to prepars.

(e) and so.u er, tesued under eec. totpl.tse danf that NRCirapectors, badged at Backfit Analysia mt No. es amendedit:US C 2:a:01). and 3

the laabty, have uttrnedaste acteu to The NRC has determined that a ll $OA $a5591 to 89M 6070. 271a:0 %

ongouig actmhes as these acuviuu are so fs, evid 27e are issued onder se@tettoh 8C 8h Mu bem8 Eerformed without accompaniment and without advanced proposed a because this amendment ee Stet om os amended 142 US C,*tmlo)).

is not within the definit on of L In l ta7a paragraph (b)(4)Ta added nottfacation of the inspection.This is especiaHy important dunes norsormal bacMitting. as sat out in 10 CTR to read as foDows:

business hours when operating f 0*16)'

( 60.70 inspect 6ons.

personnel might assume NRC inspector, list of Subjecte in it CTR Part 50 would not be on sue.

Antervat Clusified information. Ftre (b) * * * -

[ tug vernmentai relsuons. NuclearHon,lacepw Hon by nfenoce.

Environment impact Categorical (4) The licensee or construction permit bdusion holder sheb entum that the ernval and haNetion proIection c'to

[n ch R

The NRC has determined that thle sp

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as proposed chante is the type of action enteria, Reporting and recordkeeping deser: bed in ca,tegencal escluelon 10 requirements.

as desettbed in Iera8'spb (b)(3) of this j

Cf'R 51 *2(c)!?) Therefore neither an For the tensons set out in the l

env;ronmentallmpact statement nor an preamble and under authority of the contucbn 2 o[u pena et b "I'

• • • E I'" "

endronniental auessment has been Atomic Energy Act of1954, as amended prepared for this proposed rule.

the E'nergy Reo ani ation A:t of1974, facihty unless specificahy requated to ae amended. en 6 U.S C. 553 the NRC do so by the NRC snspeetor.

Paperwork Reduction Act Statament

, is proposing Io edort the following Dated at tktheeds.MD, tMs inh da y of The proposed rule does not contain a amendment 1010 CfR Part $0, March 19sa-new or arcended informauon couection PART 60- DOMESTIC l.lCENSING OF For the Nuclur Rerdatory Comminton.

tequirement subject to the paperwork PRODUCTION AND UTILIZAT40N neto, stagio, Reduchon Act nf t980(44 U.S C.3501 st FACluTIES seg ). histing requirements were faM&canfor %uosa, appros ed by the Ofhc4 of Mansgement

1. De authority ettation for part 50

[nt Doc. 66-s*3 Ned 3-17 ae. 4 45 as )

and ikdget opproval number 31Woll.

continuee to read as foHows; nunsocoos u msi.e.

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15. 1968 / It*s and ReFulatione cess Feders! Register / Vol, h3. No. 206 / Tuesday. October ef m:ney estais ~skiedbTabla1

• E..

r test Subsequendy,fio poet was

• purthsee of Ct w B etoca aad cash incuned related to the isemance of '

%e rnethodology required to perfenn -

shis calculation is described in F CFR '*

p:rchans for Class B stocA wer, debenturee eubject to 7 U.!LC.

tela 10(c).De coet of money totes $st 310.394.100. Reecissions of loan funds M8(b)p)(D).

flacal yeat 1974 through 1987 Gft densed cd enced for Qan I, etocA amounted to ne eacess o(FiscalYear 1966 lown in section 406(b) of the RE Act, se Thus, the amount recetted by advances over amonats received from amended try Pub.1.1tO-203, a nd are F1.591799 the Dank from the lesuance of Class Binuance of Class A.B and C etocks and beled in 7 CFR 1810w(c) and Table ctpi per 7 Olt 1610.10(c). was Calc 2.)$1 ($10.394 V50-81.592.799).%e debe.ntures and other obligations herein.

totatvinount received by the Barth in amounted to $82.167,226,The ec31 Fascal Yeat Spes from the teevence of associated with this eacess is the starad v.thuser.

bistorical coat of morey rate as defined Cmmor.

Cess C stock was 516Y16 la F U.S4 946(b)(3)(D)(v). De Octobet W.tena. "

De Bank did not issue debenfures or calculauco of the Bank's historical cost any o$er obligatierts duririg Fiscal Year T Ama 1.-R$44 TsaeHost BA* FY tin 68 Cost or MoNry RAtt Wi= E

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rewg-saaws com eew sane a twe 6,ee stet 30.000 s_oo

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temo cow a sAr., a w ca. new An m ee.

TAsa 2.-Aunn Tet.tenoNE Basest Wstcweca Cost of MONEY caenrMe Dent.toen peeree.s.R ey*

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$l teJJ31 c 30 A p$

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.17 igen 1te6 t.638.345353 e to tes;_ Total Advances com a lasey neie svwmAw:he Nuc4 eat Reguletory IFR Doc.15:4656 F61ed to 24-46. E45 eml NUCt. EAR REOULATORY Commission is amending its terulations COMMISSION to ensure that the presence of NRC numes coot seie.twe inspectors on nuclear power reactor to CFR Part 60 sites is not widely communicated or l

broadcast to licensee and contractor Ucensee Announcornente ed personnel without the exprened request Inspectors to do so by the inspector.This change AMNcv' Nuclear Regulator 7 will allow the NRC inspectors, badged al the f acility, to observe ongoing.

Commission, actirtues se they are being perfortned ACnosc Final rule, without advanced notification of the inspection to licensee and contr*.ctor 4

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4310 rederal Register / Vct, ta, No 200 / Tuesday, October M. 368 / Ruhe and Rhuistbns N

pen:nnel.nen is a need for this wm received. All 32 letters cf prf;rtning its ufety functions. It should I

change because of the possible altering comments were considered in NRC's be noted the rule does not effect of attendon and perfonnance levels of a review of this final tvla.no commen'.s software es.curity systems which i

licensee ar.d/or its contractors when the an discuned below, monitot the presence of persona in licensee is aware of NRC surveillance.

Cornment A rosjority of the 44rtain tress. Such systems should put occurrencu where site and/or commenters believed the rule was provide the licensee with needed contractor personnel have been noufied unneussary and charactert ed it as information on space occupancy in the of NRC's present.e on alte beve belns too broad and vegve. ney c.au of an emergency or evacuauon, For

. heightened concern in this ans.

asserted that it was redund6nt with those licensees who have then systems

. ansettva DAtt; October 21.1968..

curnnt regulations: would lead to unfalt in place, or will put them in place the

" ton evntuta Mrons:Amw cowtAm and impractical enforument be rule does not affect suc.h systema. lf a George Barber, Office of Nuclear hpossible to implement inhibli licensee were, however, to design or impeckt anistence b{ity rosnagementplant peravnr.el; modtfy these systems (or un them) for Reactor Rerulsuon. U.S. NucJear limit the abillt of feci the purpose of monitor *ng the NRC Regulatory Commission. Washington, DC 20555. Telephone (xrt) 402-1254.

to priorm the r safety functions:

inspector's mevements in order to alert promote lying arnong the facility staff; other plant personael of the inspector's DVPet1WENT Anv MPoettaAT1o*c require formal training and whereabouts. those actions would L Bec1 ground record)reping; and indic.etes a dJetrust violate the rule.

by clarifying the meaning and intent

'I U""'"

nso NRC dws not egne In sum. the licensee is prohibited from this final rule N Chesy taking effirmative ecuan which would of to Cnt 607 b)(3)'RCinspectors will

'n that should ensure at N l'e compromise the NRC inspector's en r

be granted imme4iste and unannounced focused, adds the following clarification

' E j" "' " "[N ' ' "*"' "" "

" I "I"" "

" "" I" access to bcensee facihties so as to of the rule.The intent of this rule is to provide the inspector with unfettered frrevent site and contractor personnel access equivalent to that provided a om Some commenten om widtspread dineminellon or regular plant employee following proper broadcasting the presence of an NRC expressed a concern that the rule could identdication and comp!!ance whn inspector. Droadca sting. as used here. le raise Constitutional questions under the apphcable access control procedures.

defined as unsolicited one.way First and Fourth Amendments.

This rule provides that no accen control communications. !mplementing or NRC Anyme As discuss?d above, menures or other means may be enforcing this rule should be no mor, de Purpon of the rule is b enhance the employed by the licenen or its difficult than implementing or enforcing credibthty of the inspection process, contractors to intenttonally ghe notice any rule that involves personnel Ins cuons an specific 411 outhorized unfH uchon mo of the to other penone of the arrival and kmic bugy perfortnance'his rule doe 6 not indicate e Act of 1964, as amended 42 U.S C.

presence of an NRC inspector at e Adopung t facihty, unless the hcensee is predisposition on the part of the NRC Wol W ngulebon is narrowiy specificaDy requested to do ao by the that hcensees are not acting properly. It dran to achieve a legitimate NRC inspector. There have been is hurtan neture for an indmdual to be governmental interest (effective NRC instances in the past at several facihtles more conscious of his or her inspections) without infrmgity on an thal compromised the abihty of properly performance when the individual individual,e right to express ideas and badged NRC inspectors to inspect and renhees he or she is being observed.ne opinions on any subject.Thus, the access, on an unannounced basis.

NRC inspection program evaluates regulation does not imperminhely activities related to the license or licansee perfortnance on the beats of a intrude upon freedom of speech l

construcuon permit when heensee esmpling of its activities. it is criucal protected by the Ftnt Amendment to the employees or contractor employets that the sampling portion of the Constitution.

Informed others at the facility of the licensee's activities that are relied upon The reguladon does cot reise any presence of the NRCinspectors.This for this evaluation be representath e of sl nificant Fouith Amendment F

change to 10 CFR 5010 to to clarify that its os erall actisities. Therefore, the rule considerations.The Atorric F.nergy Act NRC inspectors, badFed at the facibly.

Is more prophylactic then proscripthe, creates e pervasive regulttory scheme beve immediate, unescorted secess to although it does carry enforcement that puts licensees on clear notice thet ongo'.ng activities as these activities are sanctions should it be violated, they will be subject to lnspection, and being performed without adwanced Recognialns the possibility of the granting of a license is conditioned notification of the inspection.This is inadvertent enmmur.ication of an en consent to reasonable inspections.

especiaUy important during non. normal inspector's presence, the NRC expects to Thus.NRCinspections of heensees' business hours when operating reserve enforcement action for premises, activities and records do not personnel might assume NRC inspectors significant intentional violauons of the require a warrant under the Fourth would not be on site, rule. An honest response by an Amendment. United States Nuclear loyee to an innocent inquiry that Regulatory Commission vs Radiation em[she lust sow an NRC Inspector is not Technology. Inc 819 F. Supp.1206.

E Surnmary of Coments he On March 18.1988, the Commission within the proscriptive penmeter of the 1266-71 (D.N11981): Union F.lectric Co.

pubbshed in the Federal Register (53 FR rule. Therefore, an employee would not (Callawey Plant. Units 1 & 2). ALAlb 6924) e nouce of proposed rulemaking be required to lie, in response to a 627,9 NRC 126,139-41 (1979) The new on Ucensee Announcement of Inspectors."The Commission invited the, question, about the presence of an NRC regulation is e reasonable exercise of inspector. Based on this discunion, the Commisalon's inspection authority, pubhc to comment on the proposed rule formalized traming will not be inspectors will continue to identify and received 61s letters of comment by r ecessary, and NRC Form 3 need not be themselves and comply with other Apnl18.1968 (the specified closing date modified to renect this requirement, reasonable access control measures for pubhc comments) After Apnita, The NRC does not agree that this rule and, as always, inspections will be 1988.26 additionalletters of comments will prevent management from conducted for purposes authorized

e yc

~

E

.tnd:t the Atornic Energy Act and the flesibibty ana)pis has not been (4) Not approtrista.nen is ao.-

4 endiological exposure af inci'iry reergy Reorgantution Act.%e perp red.

n.,

3 I

'"!I1*8 I'" 'h' '"b ' *

• nauisboa duee not run afoul of the BaWhAnd de

~

'"P '7"'vition.

I implemen fiutth Amendment to the Ccnsutuu:rt ne NRC has de.lermined that the (5) Very minor costs are anociated comment A nmnber of commenter, betkht mia.10 CTR 60100, does appl with the M(a implementauon.%ere nied that the rule be implemented ayfy by written request of the NRC to thu Enal mle.ne backfit analysis M are no tralning requ!rements or record or announcement of in ec. tors rule in keeping requirernaats associated with g,pg.3,,

at snu ut i of the fettors this rule. De only 0064 to the licesses NRCReepensa NitC reject 4 the ed in 10 CFR $0.10Me)(t)(tt)(clis would be corursualcatmg thu ruk to Lia sp easpsuon. With dus suggested as ow s.

en playees and contisclors coiticauurt the rste would only apply II N '

' P"VId " O'I "' """'

(6) Not op priata.Dere is rio ' :

to thpp tridividuals who had been given

• • P potential s y impact of c.hanges in toute of the NRC &nspector's presence

,rs o

i a ce plant w ognumalcomM on sita. lf implemented this suggesuon to other persons of tbc arrivaland suocistsd we eh mia.

c-ould defeat the totent of the rula.

resence of a NRCinspector at a f.adronsoautal impact. Cate gorical Incility.unle e the hanseela (r) Not a propriate. There is no ruourte b den on the NRC froco the -

1.mdusken e cific41ly requested to do ao by the trnplementauon of this mne.

t RC inspector'see wiu have to (2)ne been (8)Not appropriate.%ere is no De NRC has detennined that this dange is the type of action described in communicate the r ulrements of this potentia' impact of differences in farlltt c:tegorical ettjusion 10 CTR 8114c)(2).

tule to its personnel nd to contracter type. design or age on the relevancy an nerefore celther an environmental personnel working at its etta.

precucality of the proposed backLt.

tmpact staternent nor en environmental

)The utpose of this rule is to (9)ne proposed batifn h naal.

assessment has been prepared for this e ance e creibility of the inspecuon

%g fmal rule.

process By requiring that the prnenc4 reperwork Reduction Ad Statement of NRC itspectors (either reskient or off Itaaed on the above analpla. the site)is riot announced the NRC. public Corntnisslon concludes that there is a ne final rule does not contain a new and bcensees will bas e more confidanca substantial increa se in the overall or amended information collecuon that the ocurities inspectors are protection of the public health and requirement sub ect to the Paperwork witnessing are representathe of bcenna safety or the common defenn and Riduttion Act o 1980 (44 U.S C. 3501 et erformance. Ertsuring that NRC accur'ty to be derived from thle betint seg 1. [21 sting requirements were pectors are witnessing representath,a and that the direct and indirect cosu of approved by the Office of Management licensee performance could implementation for facuiues are justiLed' and Itadget approval number 31!&OO11 substantially increase the likelihood that in view of this increased protecuart NRC in itctors will dancover unsafe or llet of Subjects in 10 Cnt Part 50 Reguistory Analyals potenua ly unsafe practiceA bring about his fmal rule will hase no algnificant correcth e acuons and thereby lower the And trust. Cla ulfied informs tion, nre trnpact on etste and local povernments risk of accidents occurring wbich could

. Aectiort incorporation by reference, and geographical regions. It may have a lead to the accidental off.slie telease of tergovernmental reladona. Nuclear setfacant impact on health safety, and radioacuve mate. rial.

powet plants and reactors, penelly, the ens tronment but only in the sense of it is not possible, without before and Radiation protection. Re actor atting presenting adveme impacts on health, after data, to quantitatively evaluate the criteria. Reporting and recordkeepmg safety, and the erwLronment through benefits of implementmg this rule. Still.

tequirements.

mort effecta e inspections. The rule will a recent significant enforcement action for the reasons set out in the make it clear that NRC trapectors are to concerning licensee employee's preamble and under the authority of the hase a reabsuc pictur'e of the actual inattention to dut demonstrates the Atomic Enertry Act of19M. as amended.

conditions at a site during the inspectjon premise advanco in the above the E.nergy Reorganlaation Act of 1974.

procen and therefore, be better able to paragraph. In this enforcement acAdan.

as amended. and 6 U.S C. 552 and st3 identify potentiaUy dangerous os er 30 bcensee personnel, both the NRC la to adett the following condihons and/or practices for gnanagement and staff were cited for amendment 1010 CFR part 60 correcth e action and to ensure that inattention to duty.ne primary concern beensees comply with laws, regulations, w as sleeping on w alch. It is not difficult PART 60--DOMESTIC LICENSING OF and orders admmistered by the NRC.

to envision occidents that could occur PRODUCTION AND UTILtZATION nis consututes the reFulatory analysis becaun of this type of bcan.es FACILITIES for this hnal rula.

performance.

Couphng inattention to duty with 1.ne authori citation for Part 50 Regulatory flexibility Certification equipment f ailure adds a new dimension continues to rea as follows:

In accordance with the Regulatory to the risk of accidents occurring which Authodry seca 101 103.104 ttu un. t a2, Fletibihty Act. 8 U.S C. 60Mb). the could lead to the off.alte release of sal te 1e9 e4 $4st. 91937. 9R HL En Commiaaion certifies that this f.nal rule radioactive material. in the enforcernent 954 953. 956. as amended ser. 234. 53 List.

does not have a significant economic action mentioned above.had the 1244 as amended (42 U.S C. n31 fin MS4.

Irrpact on a substanual number of arnall licensee armounced the presence of the m m m m m m nan ns.

" ' '" d 124 a enut es.ne faal rule apphes only to NRC inspector, the inattention to dut hd tt4 bcensees authorised to construct or would have gone unnouced. It shou! be g

cperate nuclear power reactors, who are noted that the licensee facihty where Section 27 atse issued onder Pub L es-not small business antitiea within the this incjdent occurred did, on one past oct. acc. m c2 Siat. tot (42 Uic. bestI meanmg of the act or imp!tmenting occasiott announce the presence of NRC secuen 50 to also issued under me sm tas, reguisbons. nertfare. a regulatory inspectors, 64 Stat. 91 Sn as nossadcd (42 UAC.nat.

M

.y a

42912 Ted:ral Redst:r / Vol. 53 No. 2m / Tuesday, October 25, 1988 / Rules and Herulations' 1

l 223Si oc 102, Pub t 91-190. 63 $tet 653142 includes e definition of "everige daily may elect either of two methods of U 6c su21 fetion 6022 tass.nols and asss ts"in the regulation. (2) ?ot 3 calculatir 3 average daily esseta. nis is 60 x else asend under sec. las. 6e sist 955 clarifies wuch items may be etc.luded not a new requirement.The deldt;on 102I[ b hom asuts Won de reserve transfer w as formerly included ordy in the 1

• ri n steo es u der se is computed. and (3 704.$ specifies that preamble to the regulation.

' b

!. F1.tw &J Stat &H (42 U SC 4M2J Lectione 60 H end 60 64 eleo isswed unde, th anualCPA su 1be an opinion B PmpoaolTo Amend 700 To Clarify se6. 204 se Siet.1245142 U $ C M44) au it.

j,,,, po, y,I, g, g,cjug,j fm, g3, betbons no 64. 60 Pl. eud bn 92 eleo isswed turFICTTYt DAYt October 25,196&

under Pub t,97-416 he $let. 2ct'3 (42 US C Apontsa; National Credit Union h#$g n

ZD9) Secuon 60 rs also lasved under uc.

Administration.1776 G 6treet NW Ma pnm HMbent I 60 s1 e a un to Stat. Washington, DC M maintenance of a co@ orate MHWe, 80 a54 as so5tnded l42 U $ C 22M) bection POR PVRTHER leifenWAfs0M C0erTACT:

against i en and certein investroent 60103 eleo usved under sec.1oe ts Stat ass.

D. Michael Riley, Director. Office of losH8. A total of 14 comments wne se senended (42 U S C me) Artenda F 61so Examination and insurance. or tlnde received addrening thu proposal.

Iseved undet set ilt 6e bist 95$ (42 US C Groth, Corporate Credit Union Eleven commenters concurftd with the 223 4 6pecialist al the above address or change in l 7044 which c.larifies the For the pumoses of sec. 221 ea $let tsa. ea telephone: (202) 357-10ba' items that may be excluded from the amended {42 U $ C 22?J) ll no 10(s) (b).

svessautetTAme eseconaAAfs0*c assets prior to the reserve transfer arid tc). 60 44. So sts 60 4a Sa n4 end ho note) ere noved under sec. stilb) 6e Stet 64a. se Bdpund computsuon.

emended l43 U.S C 22011bil il bo 10 (b) and Two commentus betine the (c). end 50 54 ore issued under see 10th) sa Part 704 of NCUA Rules and "Clu'IM of r"eNe Mpurchase blot $49 es amended (42 US C 2201D11. and Regulations, Corporate Credit Unions, transactions ordy through US Central il 50 9 60 SMe) no SML ) 60 ro. 5071. ho 7L hee been revised as a part of the Credit Union is too narrowly defined.

ao 73 and 50 rs ne 6ssued under sec 1610.68 Agency's continuing prtigtem of review One commenter stated that they are 6tet. 9% es amended (42 US C 23rtloll' of regulations and as a result of ntamely emerned as to the

2. In ! $010. paragraph (b)(4)is added provisions in the Gern.Sl Ge* main Ar.t to rud as follows; which amended section 120(a)of the preferential status which this exemption Frants to transecups through US Federal Credit Union Act to permit the Central Credit Urdon? Doth agreed that

$ 60.70 inspecuoca.

NCUA Doard to differentiate the furictions of corporate cential Federal rnerse repurchase transactions through US Central should be excluded but that (b) * '

• credit unions from natural person crtdit (4)The licensee or construction permit unions through the issuance of rules or the regulanon should be expanded to exclude other matched arbitrage j

holder (nuclear power reactor ordy) orders of the Board part 704 was transacHes that inDate the balance i

shall ensure that the arrival and promulgated in 1977 to defme a sheet. One corporate urged NCUA to presence of an NRC inspector,who has corporate credit union (herein referred amend the regulations to exerapt from been properly authorised facihty access to as a corporatej and to estabhsh a the defirdtion of assets, those assets as descnbed in paragraph (b)(JJ of this reserve secount for corporate credit involved in matched repurchase section. Is not announced or otherwise unions. The regulation was revised in transactions wita members of the communicated by its employees or 1979 and again in 1964 to provide corporate when the corporate executes enntractors to other persons at the additionai requirements pertaining to the reverse repurchase transactior facihty unless specifically requested by operations of corporate credat unions.

directly in the marketplace.This the NRC inspector.

Pubhc Commant corporate also urged NCUA to reduce ed e Rockvule. htD. this 13th day of

'fhe NCUA Doard issued i proposed the corporate reserve burden by rule on hiey 2019M (see 53 FR N122, permittmg a reduction in average daily (June 2,19M)).The Board received 15 assets as dermed in the regulation by For the Ldear Regulatory Commisaloro Wo' 6t'llo l'-

comments in resporse to the proposal to the amount of corporate owned Eaecutie. Doerror /p rY:xt/ons amend part 704. Of the 15 comments, y government secunties involved in

[F Ft Dyc so-24oo9 bled 10-24-88. 8 45 ern) were from Federally chartered reverse repurchase transactions. The neo core '***'

corporates,4 frorr. state chartered other corporete expressed the opinion that all toniched reverse repurchase Federally insured corporates.1 from a EFreements with broker dealers "which state chartered aon insured corporate.1 N ATION AL. CHEDIT UNION from a state credit union supenisor.1 hase a pnmary dealer status with the iederal Resene Board and are in t

ADMINISTRATION from a natural person Federal credit union and 1 from e trade association. A comphance with the Federal Reservis

)

12 CFR Part 704 discussion of the comments received on Capital Adequacy Guidelines for U.S.

t the proposed amendments follows:

Government Security Dealers" be Corporata Ceedit Unions excluded from everage daily assets i

A. l'rvposal to Amen 6 m To /nclu(e whm computing resene requirements.

actwev: Notional Credit Union o Dehnihon of A verage Dolly Assefa Reverse repurchase transactions on Administration (NCUA).

/" 8h' Fu 8'i behalf of the members of a corporate AcTiom Final rue.

Six of the commenters addressed the using the US Central corporate network sVWWARY: Pursuant to the Regulatory first proposal. Those who commented program have been given a previous Review program of NCUA. part 704 favored the change. The Board is adding exemption because the corporates act (Corporate Credit Union) has been paragraph [d) to I 704 2 to include the primarily in an administrative capacity j

reviewed. The minor amendments to the definition of everage daily assets for to forward securities to US Central i

section are primarily clanfication reserve computation purposes in the Credit Union: the principal risks and g

language in three areas:(1) 7042 regulation itself. Corporate credit unions primary benefits are shared by US

--.