ML20127J049

Proposed Rules 10CFR40,70 & 150, Matl Balance Repts. Rule Would Eliminate Requirement to Rept Inventories on Form 742 for All Licenses Except Licensees Reporting Under Us/Iaea Safeguards Agreement & on Form 742C,except Nuclear Reactors

ML20127J049
Person / Time
Issue date:	04/22/1985
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
FRN-50FR19695, RULE-PR-150, RULE-PR-40, RULE-PR-70 AB82-1, AB82-1-33, PR-850422, NUDOCS 8505210356
Download: ML20127J049 (10)

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NUCLEAR REGULATORY COMMISSION 10 CFR Parts 40, 70, 150 insamt ge ntW %

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AGENCY: Nuclear Regulatory Commission.

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'85 NAY-8 A9 d7

. Proposed rule.

ACTION:

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SUMMARY

The Nuclear Regulatory Commission proposesah amen:id its regulations concerning the submission of source material and special nuclear material inventory reports. The proposed rule would eliminate the requirement to report L

inventories on Form 742 for all licensees except those reporting under the US/IAEA Safeguards Agreement. The proposed rule would also eliminate the requirement to report inventories on Form 742C for all licensees except those for nuclear reactors and those reporting under the Agreement. The NRC would generate an equivalent report based on transaction data already submitted by each licensee. The proposed rule is intended to reduce the reporting burden .

on licensees without adversely affecting the domestic safeguards program or the ability to satisfy existing commitments.

DATE: Comment period expires JUL 0 S 1985 . Comments received after this date will be considered if it is practical to do so, but assurance of considera-tion cannot be given except as to comments received on or before this date.

ADDRESSES: Mail written comments to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Attention: Docketing and Service Branch.

Deliver comments to Room 1121, 1717 H Street, NW, Washington, DC between 8:15 am and 5:00 pm weekdays.

Copies of the regulatory analysis, the OMB supporting statement, and any com- ,

ments received on the proposed rule may be examined at the NRC Public Document Room at 1717 H Street, NW, Washington, DC.

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- 'FOR FURTHER INFORMATION CONTACT: Juna Rcbartscn,'0ffice of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, ~DC 20555, telephone: (301) 427-4004. -

SUPPLEMENTARY INFORMATION: '

BACKGROUND As a part of a reevaluation of the safeguards data collection and processing.

requirements, the NRC examined the possibility of eliminating the requirements

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for licensees to report inventories on Forms 742 (Material Balanci Report) and 742C (Physical Inventory Listing) for most licensees. The NRC concluded that, with the exception of those licensees reporting under the US/IAEA Safeguards Agreement, the requirements for reporting inventories on Material Balance Reports can be deleted. However, the need for a composition of ending inventory to be submitted on Form 742C by nuclear reactors is necessary to the domestic inspection

-and enforcement function. Therefore, the requirement for submitting Form 7.42C would be retained for nuclear reactor licensees.

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MATERIAL BALANCE REPORTS -

Currently, NRC licensees who are authorized to possess 350 grams or more -

of special nuclear material are required to submit an inventory report for each material type on Forms 742 and 742C as of. March 31 and September,30,of each year.

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Also, NRC and Agreement State licensees who are authorized to' possess 1,000

_ kilograms or more of source material are required to submit 'a yeearly statement of their source material holdings as of September 30 of each year. This ,informa-tion is necessary to the domestic inspection program and is needed to provide to the Australian and Canadian Governments a periodic report showing the inventory of all the materials in each U.S. facility that is subject to their respective Bilateral Agreements.

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For licensees other than those reporting under the US/IAEA Safeguards; Agreenant, the proposed rule would eliminate'the requirement to submit the [

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- Form 742. For all lic;nse:;s oth2r than nuclear r2 actors and those reporting und2r

.the US/IAEA Safeguards Agreement, the proposed rule would eliminate the requirement to submit the Form 742C. Instead, the NRC would computer-generate, for each licensee, an inventory report based on material transaction reports submitted to the NRC on Form 741 for special nuclear material and foreign origin source material.

(In a separate rulemaking action effective July 16, 1984 (49 FR 24705; June 15, 1984), the requirement to report domestic transfers of U.S. origin source material was deleted. Only imports, exports, and domestic transfers of foreign origin source material are currently reported to the transaction data base.) This gen-erated report would be submitted to the licensee for review and verification with the licensee's book inventory data or results of a physical inventory, as the case may be. The licensee would then submit any supplemental data necessary to recon-cile any difference between the generated inventory and the licensee's inventory.

The amendment affects approximately 350 NRC and Agreement State licensees of which approximately 150 are small independent industrial manufacturers, each with an estimated annual gross income of less than $1 million and a staff of-fewer e than 500 people. As a result of this change, the reporting burden for each ,

affected special nuclear material licensee would be reduced by two reports per year and the reporting burden for each affected source material licensee would be reduced by one statement per year. The process of the licensee verification of the computer-generated report will partially affect the reduction in licensee reporting, but the net burden to licensees should be less than the burden of generating and submitting the currently required reports.

ENVIRONMENTAL IMPACT: CATEGORICAL EXCLUSION The NRC has determined that the proposed amendments to Parts 40 and 70 are the type of action described in categorical exclusion 10 CFR 51.22(c)(3) and that' the proposed amendment to Part 150 is the type of action described in 10 CFR 51.22(c)(1). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this proposed regulation.

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PAPERWORK REDUCTION ACT STATEMENT This proposed rule amends' information collection requirements that are sub-ject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This rule has been submitted to the Office of Management and Budget for review and approval of the paperwork requirements.

REGULATORY ANALYSIS The Commission has prepared a draft regulatory analysis on this proposed reg-ulation. The analysis examines the costs and benefits of the alternatives consid-ered by the Commission.' The draft analysis is available for inspection in the NRC Public Document Room,1717 H Street, NW, Washington, DC. Single copies of the draft analysis may be obtained from June Robertson, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone: (301) 427-4004.

The. Commission requests public comment on the draft regulatory analysis.

Comments on the draft analysis may be submitted as indicated under the ADDRESSES heading.

REGULATORY FLEXIBILITY CERTIFICATION Based upon the information available at this stage of the rulemaking proceeding and in accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C.

. 605(b), the Commission hereby certifies that, if promulgated, this rule will not have a significant economic impact upon a substantial number of small entities due to the decrease in burden for all affected licensees. The proposed rule would re-duce from 350 to 250 the number of specific licensees who are required to report inventories of nuclear materials under 10 CFR 40.64, 70.53, and 150.17. Cu rrently,

= approximately.190 of these licensees submit 2 reports each year to report inventories

,. of special nuclear materials. The remaining 60 licensees submit one report each year to report holdings of source material. The economic impact on all licensees

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wil'1 be reduced 'due to the fact that approximately 100 small ' licensees who cur-rently complete a report (s) will not report inventories at all, and the remaining licensees will verify and update a Commission generated statement of inventory instead of completing a -report. The current burden of two hours is time needed to complete the report. The estimated time for verifying and updating the Com- ,

mission generated statement of inventory is one hour.

4 The approximately 100 licensees who need not complete and submit an inven-tory report are small independent industrial licensees who currently submit one.

report each year. This is a reduction of (2 hrs x 100) 200 hours0.00231 days <br />0.0556 hours <br />3.306878e-4 weeks <br />7.61e-5 months <br /> each year.

The licensees who will verify and update a Commission generated statement of-inventory consists of approximately 150 small licensees and approximately 50 other licensees.

The average small independent industrial licensee has an annual gross .

income of less than $1 million and employs fewer than 500 people. The cost for 4

complying with the proposed requirement will not pose an economic impact. There

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will be no additional cost for any licensee.

i Any small' entity subject to this regulation which determines that, because

( of its size,'it is likely to bear a disproportionate adverse economic impact l

[ should notify the. Commission of this in a comment that indicates:

(a) The licensee's size in terms of annual income, revenue, or number of -

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! (b) How the' proposed regulation would result.in a significant economic burden

- upon the-licensee as compared to that placed upon a larger licensee; and (c) How the proposed regulations could be modified to take into account the l- licensee's differing needs or capabilities.

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y LIST OF SUBJECTS IN 10 CFR PARTS 40, 70, AND 150 PART 40 - Governmental contracts, Hazardous materials - transportation, Nuclear materials, Penalty, Reporting and recordkeeping requirements, Source material, Uranium.

PART 70 - Hazardous materials - transportation, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting and recordkeeping require-ments, Scientific equipment, Security measures, Special nuclear material.

PART 150 - Hazardous materials - transportation, Intergovernmental relations, Nuclear materials, Penalty, Reporting and recordkeeping requirements, Security measures, Source material, Special nuclear material.

For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 553, the NRC is proposing to adopt the following amendments to 10 CFR Parts 40, 70, and 150.

PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL

1. The authority citation for Part 40 continues to read as follows:

AUTHORITY: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014 (e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282);

secs. 274, Pub. L.86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C.

2152). Section 40.46 also issued under sec. 184, 68 Stat. 954, as amended (42

.U.S.C. 2234). Section 40.71 also issued under sec. 187, 68 Stat. 955 (42 U.S.C.

2237).

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

40.3, 40.25(d)(1)-(3), 40.35(a)-(d), 40.41(b) and (c), 40.46, 40.51(a)' and (c),

and 40.63 are issued under sec.161b, 68 Stat. 948, as amended, (42 U.S.C.

> 2201(b));and 40.25(c) and (d)(3) and (4), 40.26(c)(2), 40.35(e), 40.42, 40.61, 40.62, 40.64 and 40.65 are issued under sec.1610, 68 Stat. 950, as amended (42 U.S.C.2201(o)).

2. In 40.64, paragraph (b) is revised to read as follows:

40.64 ~ Reports.

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(b);Except as specified in paragraphs (d) and (e).of this section, each licensee who is authorized to possess at any one time and location more than 1,000 kilograms

of uranium or thorium or any combination of uranium or thorium, shall verify and update a statement of material balance concerning source material- of foreign origin ' received, possessed, transferred, consumed, disposed of, or lost by the licensee. The Commission shall generate the statement as of September 30 of.each year and mail it to the licensee by October 15 of each. year.. The licensee shall verify and up'date the statement and, if any change.is necessary, l'

submit a statement indicating the necessary changes to the Commission by October 31. The Commission may permit a ' licensee to. extend the time to submit an updated statement when good cause is shown.

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r1 PART 70 DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

3. The authority citation for Part 70 is revised to read as follows:

AUTHORITY: Sections 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 204, 206, 88 Stat. 1242, as amended,. 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).

Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). 'Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 70.61 also issued under secs.186,187, 68 Stat. 955 (42 U.S.C. 2236, 2237) . Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138). ,

For the purposes of sec. 233, 68 Stat. 958, as amended (42 U.S.C. 2273);

70.3, 70.19(c), 70.21(c), 70.22(a), (b), (d)-(k), 70.24(a) and (b),

70.32(a)(3), (5), (6), (d), and (1), ~70.36, 70.39(b) and (c), 70.41(a),

70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3), and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b));

70.7, 70.20a(a) and (d), 70.20b(c) and (e), 70.21(c), 70.24(b), 70.32(a)(6),

.(c), .(d), (e), and (g), 70.36, 70.51(c)-(g), 70.56, 70.57(b) and (d) and 70.58(a)-(g)(3) and (h)-(j) are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and 70.20b(d) and (e), 70.38, 70.51(b) and (i),-70.52,s70.53, 70.54, 70.55, 70.58(g)(4), (k), and (1), 70.59, and 70.60(b) and (c) are issued under sec.1610, 68 Stat. 950, as amended (42 U.S.C. 22Cl(o)).

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4. .In 70.53, paragraph (a)(1) is revised to read as follows:

70.53 Material status reports.

(a)(1) Each licensee who is authorized to possess at any one time and location special nuclear material in a quantity totaling more than 350 grams of contained uranium-235, uranium-233, or plutonium, or any combination thereof, shall verify and update a statement.of material balance concerning special nuclear material-received, produced, possessed, transferred, consumed, disposed of, or. lost by the licensee. The Commission shall generate the statement as of March 31'and September 30 of each year and. mail it to the licensee by April 15 and October 15. The licensee shall verify.and update the statement and, if any change is necessary, submit a statement indicating the necessary changes to' the . Commission by April 30 and October 31. Persons licensed to operate nuclear reactors-shall continue to prepare (on DOE /NRC Form 742C, Physical Inventory Listing).a statement of the composition of the ending inventory as of

- March 31 and September 30 of each year and file within thirty (30) days after -

'the end of the period covered by the report. The Commission may permit a licensee 4

to extend the time to submit an updated statement when good cause is shown.

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PART 150 - EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN AGREEMENT-STATES AND IN OFFSHORE WATERS UNDER SECTION 274

5. The authority citation for Part 150 continues to' read as follows:

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AUTHORITY: Section 161, 68 Stat. 948, as ' amended, sec. 274, 73 Stat. 688

[ (42 U.S.C. 2201, 2021); sec. 201, 88 Stat.1242, as amended (42 U.S.C. 5841).

Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued under secs. lie (2), 81, 68 Stat. 923, 935, as amended, secs. 83, 84, 92 Stat. 3033, 3039 (42 U.S.C.

2014e (2),- 2111, 2113, 2114) . Section 150.14 also issued sec. 53, 68 Stat. 930, as U amended (42'U.S.C. 2073). Section 150.17a also issued under sec. 122, 68~ Stat. 939

('42U.S.C.2152). Section 150.30 also issued under sec. 234, 83 Stat. 444 (42 U.S.C. 2282).

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

150.20(b)(2)-(4) and 150.21 are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); 150.14 is issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(1)); and 150.16-150.19 and 150.20(b)(1) are issued under sec-1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

6. In 150.17, paragraph (b) is revised to read as follows:

150.17 Submission to the Commission of source material reports.

(b) Except as specified in paragraph (d) of this section and 150.17a, each person _who is authorized to possess at any one time and location, pursuant to an Agreement State license, more than 1,000 kilograms of uranium or thorium, or any combination of uranium or thorium, shall verify and update a statement of material balance concerning source material of foreign origin received, possessed, trans-ferred, consumed, disposed of, or lost by the licensee. The Commission shall generate the statement as of September 30 of each year and mail it to the licensee by October 15. The licensee shall verify and update the statement and, if any change is necessary, submit a statement indicating the necessary changes to the Commission by October 31. The Commission may permit a licensee to extend the time to submit an updated statement when good cause is shown.

Dated at Bethesda, Maryland, this day of , 1985.

For the Nuclear Regulatory Commission.

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William J. Dircks, Executive Director for Operations.