ML20134M125

Proposed Rule 10CFR30,32,40,50,52,60,61,70,71,72,110 & 150, Deliberate Misconduct by Unlicensed Persons. Rule Would Revise Regulations to Extend Deliberate Misconduct Rule to Six Categories of Persons

ML20134M125
Person / Time
Issue date:	09/30/1996
From:	Hill W NRC OFFICE OF THE SECRETARY (SECY)
To:
Shared Package
ML20134M117	List: ML20134M115 ML20134M125
References
FRN-56FR40664, FRN-57FR1890, FRN-61FR51835, FRN-63FR1890, RULE-PR-110, RULE-PR-150, RULE-PR-30, RULE-PR-32, RULE-PR-40, RULE-PR-50, RULE-PR-52, RULE-PR-60, RULE-PR-61, RULE-PR-70, RULE-PR-71, RULE-PR-72 AF35-2, AF35-2-029, AF35-2-28, AF35-2-29, CCS, PR-960930, NUDOCS 9611220233
Download: ML20134M125 (47)

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NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72, 110, and 150 RIN: 3150-AF35 Deliberate Misconduct by Unlicensed Persons AGENCY: Nuclear Regulatory Commission.

l ACTION: Proposed rule. l l

SUMMARY

The Nuclear Regulatory Commission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, or holders of, certificates of compliance; applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants; applicants for, or holders of, certificates of registration; applicants for, or holders of, quality assurance program approvals; and the employees, contractors, subcontractors and consultants of the first five categories of persons, so that they may be subject to enforcement action for deliberate misconduct. Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate and in some respect material to the NRC, or it may involve conduct that causes or would have caused, if not detected, a licensee, certificate holder, or applicant to be in violation of any of the Commission's requirements.

9611220233 961001 PDR PR 30 56FR40664 PDR

1 The Commission does not believe that it is necessary to add the i

Deliberate Misconduct Rule to 10 CFR Part 54 because licensees applying to renew their operating licenses for nuclear power plants are already subject to 1

this rule as licensees under 10 CFR Part 50. Similarly, the Commission does i 4 not believe that it is necessary to add the Deliberate Misconduct Rule to i 10 CFR Part 55 because applicants for, and holders of, reactor operators i licenses are already subject to this rule as employees of 10 CFR Part 50 licensees. Moreover, licensed operators are subject to all applicable

! Commission requirements (see 10 CFR 55.53(d)) and thus a finding of deliberate I misconduct is not required to take enforcement action against a licensed I

reactor operator.

1 Discussion l It is important that all information provided to the NRC be complete and accurate in all material respects. Section 186 of the Atomic Energy Act of 1954, as amended (AEA), underscores this need by providing that "[a] license may be revoked for any material false statement in the application or any statement of fact required (by statute or regulation]...." The Commission has promulgated rules concerning completeness and accuracy of information that specifically apply to information provided to the Commission by a licensee or an applicant for a license (see 10 CFR 30.9(a), 40.9(a), 50.9(a), 60.10(a),

61.9a(a), 70.9(a), 71.7a, 72.11(a), 76.9(a) and 110.7a(a)). Similarly, paragraph (b) of each of these sections, which deals with notification to the Commission of significant safety information, refers to applicants as well as licensees. Violation of these provisions can result in denial of the license 4

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licensed and unlicensed persons on notice that they may be subject to enforcement action for deliberate misconduct that causes or would have caused, if not detected, a licensee to be in violation of any of the Commission's requirements, or for deliberately providing to the NRC, a licensee, or contractor, information that is incomplete or inaccurate in some respect material to the NRC. The rule also revised the NRC's procedures for issuing orders to include persons not licensed by the Commission, but who are otherwise subject to the Commission's statutory authority.

Currently, the Deliberate Misconduct Rule does not apply to:

(1) Applicants for NRC licenses; (2) Applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 and 72, including those for dry cask storage; (3) Applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants issued under 10 CFR Part 52; (4) Applicants for, or holders of, certificates of registration issued under 10 CFR Parts 30 and 32; (5) Applicants for, or holders of, quality assurance program approvals issued under 10 CFR Part 71; and (6) The employees, contractors, subcontractors, and consultants of the first five categories of persons.

To ensure that these persons are subject to enforcement action for wrongdoing under the Deliberate Misconduct Rule, the NRC is proposing to extend the rule to them. The Commission's proposed rule would also add the Deliberate Misconduct Rule to 10 CFR Parts 52 and 71 where it currently does not appear.

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4 by the NRC on the basis of falsified test data could represent a threat to

) public health and safety. Similarly, a quality assurance program that is submitted to the NRC for approval but is supported by deliberately falsified data that mask a significant defect could also be a public health and safety

! threat. Under the present Deliberate Misconduct Rule, a certificate holder

who obtained a certificate.by deliberite submittal of false information could escape individual NRC enforcement action because the deliberate misconduct may not have put an "NRC licensee" in violation. To effectively exercise its

! authority under the AEA, the Commission needs to prevent or otherwise deter the deliberate submittal of materially false or inaccurate information by those entities not currently covered by the rule. The NRC knows of no reason

why the rule should not apply to perans who deliberately submit materially 1

- incomplete or inaccurate information, whether such submittal is by or on 1

l behalf of an applicant, or by or on behalf of a holder of a license, certificate, permit, or approval.

The Commission proposes to modify the Deliberate Misconduct Rule each place it appears in 10 CFR Chapter I to make the rule apply to applicants for NRC licenses; to applicants for, and holders of, certificates of compliance I

issued under 10 CFR Parts 71 and 72; to applicants for, and holders of, early site permits, certified designs, and combined licenses for nuclear power plants issued under 10 CFR Part 52; to applicants for, and holders of, certificates of registration issued under Parts 30 and 32; and to applicants for, and holders of, quality assurance program approvals issued under Part 71;  ;

l and to the employees, contractors, subcontractors and consultants of all the above categories of persons. This would include, for example, a consultant engaged by an applicant to prepare a license application for such activities 6

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application, civil enforcement action against a licensee, or, if appropriate, referral to the Department of Justice for consideration for criminal l

! prosecution.

The' Deliberate Misconduct Rule permits the NRC to take individual ,

action, such as issuing an order, against an individual who deliberately provides information that the individual knows to be incomplete or inaccurate.

However, when the Deliberate Misconduct Rule was promulgated, it did not address applicants for licenses, applicants for, and holders of, certificates of compliance or certificates of registration, applicants for, and holders of, early site permits, certified designs and combined licenses, and applicants for, and holders of, quality assurance program approvals.

i Incomplete or inaccurate information has potential safety significance, whether submitted before or after a license, certificate, permit, or approval 1 1

has been issued. The Commission has clearly emphasized the importance of applications containing accurate information; e.g., "[The Commission] cannot overstate the importance of a licensee's or an applicant's duty to provide the Commission with accurate information." Randall C. Orem. D.0., CLI-93-14, 37 1 NRC 423 (1993). The Orem case involved a consultant to an applicant for a license who provided inaccurate information that was included in the license l

application and the Commission found that information as to the status of the ,

facility was material to the licensing decision. Id. at 428.

The Commission believes that there may be significant safety consequences from the deliberate submission of false or incomplete information or other deliberate wrongdoing by an applicant for a license or other unlicensed persons proposed to be covered by this modification to the Deliberate Misconduct Rule. For example, a spent fuel cask that is certified l

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Commissior.'s authority under the AEA to. issue regulations and orders to any

. person (defined in' section lls of the AEA to include, e.g., _ an individual, corporation, firm, or a Federal, State, or local agency) who engages in conduct affecting activities within the Commission's subject matter jurisdiction.

In brief, section 161i of the AEA provides broad authority to issue regulations and orders as the Commission deems necessary to govern any activity authorized pursuant to the AEA in order to protect public health and safety. Section 161b of the AEA .similarly authorizes the Commission to issue regulations and orders to impose " standards and instructions" on persons to govern the possession and use of special nuclear material, source material, and byproduct material, as may be necessary or desirable to provide for the common defense and security and protect public health and safety. Section 234 of the AEA authorizes the NRC to impose civil penalties on certain unlicensed persons for violating the NRC's substantive requirements. Section 234a of the AEA (as amended by section 3116, Title _III of the Omnibus Appropriations Act of 1996, April 28,1996) roads as follows:

Any person who (1) violates any licensing or certification provision of sections 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, 109, or 1701 of any rule, regulation, or order issued thereunder, or any term, condition, or limitation of any license or certification issued thereunder, or (2) commits any violation for which a license may be revoked under section 186, shall be subject to a civil penalty, to be imposed by the Commission, of not to exceed $100,000 for each such violation.

The licensing provisions listed in section 234a generally prohibit the possession, use, receipt, or transfer of nuclear materials or facilities unless authorized by and in accordance with a license.

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as radiography, well logging, irradiation, and teletherapy. It would also apply to a consultant preparing an application for a certificate for a spent 1 i

fuel cask, or individuals conducting performance tests to support such an application.

The proposed revisions to the Deliberate Misconduct Rule would appear in l

10 CFR 30.10, 40.10, 50.5, 60.11, 61.9b, 0.10, 72.12, and 110.7b. Section l l

71 would be added to incorporate the rule in Part 71 and 9 52.10 would be l addeu to incorporate the rule in 10 CFR Part 52. In addition, 10 CFR 150.2 The and 10 CFR 32.l(b) would be revised to incorporate the proposed changes.

scope provisions found in 10 CFR 30.1, 40.2, 50.1, 52.1, 60.1, 61.l(c), 70.2, 71.0, 72.2, and 110.l(a) would also be modified to reflect these revisions to I the rule. The Commission would make a minor language change by altering the phrase "but for detection" to "if not detected" where the phrase appears in each rule, but intends no substantive change by this revision. Having this i enforcement authority available will help the NRC pursue redress in cases of deliberate misconduct by unlicensed persons acting within the scope of the l

Commission's jurisdiction and may deter such behavior as well. I This rulemaking extending the Deliberate Misconduct Rule to applicants for NRC licenses; applicants for, and holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; applicants for, and holders of, early i site permits, standard design certifications, or combined licenses for nuclear l l

power plants issued under 10 CFR Part 52; applicants for, and holders of, l certificates of registration issued under 10 CFR Parts 30 and 32; and applicants for, and holders of, quality assurance program approvals issued under 10 CFR Part 71; and to the employees, contractors, subcontractors and consultants of all the above categories of persons, implements the 7

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software packges, or directly via Internet. Background documents on the  !

rulemaking are also available, as practical, for downloading and viewing on the bulletin board.

If using a personal computer and modem, the NRC rulemaking subsystem on FedWorld can be accessed directly by dialing the toll-free number (800) 303-  ;

9672. Communication software parameters thould be set as follows: parity to none, data bits to 8, and stop bits to I (N,8,1). Using ANSI or VT-100 terminal emulation, the NRC rulemaking subsystem can then be accessed by selecting the " Rules Menu" option from the "NRC Main Menu." Users will find the "FedWorld Online User's Guides" particularly helpful. Many NRC subsystems 1

and data bases also have a " Help /Information Center" option that is tailored l to the particular subsystem.

The NRC subsystem on FedWorld can also be accessed by a directly dialed phone number for the main FedWorld BBS, (703) 321-3339, or by using Telnet via Internet: fedworld. gov. If using (703) 321-3339 to contact FedWorld, the NRC subsystem will be accessed from the main FedWorld menu by selecting the

" Regulatory, Government Administration and State Systems," then selecting

" Regulatory Information Mall ." At that point, a menu will be displayed that has an option "U.S. Nuclear Regulatory Commission" that will take you to the NRC Online main menu. The NRC Online area also can be accessed directly by typing "/go nrc" at a FedWorld command line. If you access NRC from FedWorld's main menu, you may return to FedWorld by selecting the " Return to FedWorld" option from the NRC Online Main Menu. However, if you access NRC at FedWorld by using NRC's toll-free number, you will have full access to all NRC systems, but you will not have access to the main FedWorld system.

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The proposed changes are made under the authority of sections 161b and i j

and the above-identified licensing and certification provisions in

section 234. The changes apply to any person who engages in deliberate misconduct, or who deliberately submits materially incomplete or inaccurate information, as provided in the rule. By imposing a direct prohibition on unlicensed persons, the Commission may be able to exercise its section 234 authority to impose civil penalties on unlicensed persons who deliberately cause a licensee, applicant, or permit or certificate holder to be in violation of requirements because they are persons who violate the licensing provisions enumerated in section 234. In cases when the Commission issues an order (other than an order imposing a civil penalty) to a person based on deliberate misconduct that causes a licensee, applicant, or permit or certificate holder to be in violation of a Commission requirement, the order would be issued in part pursuant to a regulation (e.g., 6 30.10) that was promulgated under a licensing provision of the AEA. A civil penalty could be In addition, criminal sanctions available for violations of such an order.

under section 223 of the AEA are available for willful violations of orders and regulations issued under sections 161b and i. Injunctions are also available under section 232 of the AEA for violations of Commission orders.

Electronic Access Comments may be submitted electronically, in either ASCII text or Wordperfect format (version 5.1 or later), by calling the NRC Electronic Bulletin Board (BBS) on FedWorld. The bulletin board may be accessed using a personal computer, a modem, and one of the commonly available communications 9

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changes expand applicability of the rule to include persons such as  ;

j certificate holders and quality assurance program approval holders. Such l 1

actions are addressed individually by States through each State's i

administrative code. Division-3 regulations are appropriate for Agreement i States to adopt, but do not require any degree of uniformity between the NRC and Agreement State rules. Agreement Stat.s are not required to adopt the regulatory approach identified in Division-3 regulations.

Environmental Impact: Categorical Exclusion The NRC has determined that this proposed rule relates to enforcement matters and, therefore, falls within the scope of 10 CFR 51.10(d). Therefore,  !

neither an environmental impact statement nor an environmental assessment has been prepared for this proposed rule.

Paperwork Reduction Act Statement 1 l

This proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995 (44 1

U.S.C. 3501, et seq.). Existing requirements were approved by the Office of Management and Budget, approval numbers 3150-0017, 3150-0151, 3150-0127, 3150-0135, 3150-0009, 3150-0132, 3150-0036, and 3150-0032. I l

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l If you contact FedWorld using Telnet, you will see the NRC area and menus, including the Rules Menu. Although you will be able to download documents and leave messages, you will not be able to write comments or upload files (comments). If you cor, tact FedWorld using FTP, all files can be accessed and downloaded but uploads are not allowed; all you will see is a list of files without descriptions (normal Gopher look). An index file listing all files within a subdirectory, with descriptions, is available.

There is a 15-minute time limit for FTP access.

Although FedWorld also can be accessed through the World Wide Web, like FTP, that mode only provides access for downloading files and does not display the NRC Rules Menu.

For more information on NRC bulletin boards call Mr. Arthur Davis, Systems Integration and Development Branch, NRC, Washington, DC 20555-0001, telephone (301) 415-5780; e-mail AXD3@nrc. gov.

Certain documents related to this rulemaking, including comments received, may be examined at the NRC Public Document Room, 2120 L Street NW.

(Lower Level), Washington, DC. These same documents may also be viewed and downloaded electronically via the Electronic Bulletin Board established by NRC for this rulemaking as indicated in the Supplementary Information section.

Compatibility of Agreement State Regulations This rule is designated a Division-3 matter of compatibility with respect to Agreement State regulations because it deals with enforcement actions such as the issuance of orders and civil penalties to unlicensed persons for deliberate misconduct. In addition to license applicants, these 11

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(4) Applicants for, and holders of, certificates of registration issued under 10 CFR Parts 30 and 32; (5) Applicants for, and holders of, quality assurance program approvals issued under 10 CFR Part 71; and l (6) The employees, contractors, subcontractors and consultants of the first five categories of persons.

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On November 29, 1991, the NRC staff issued an Order Revoking License to Dr. Randall C. Orem after the NRC staff learned that information in his license application was false and that the application had been prepared by a consultant who had provided the false information. See Randall C. Orem. 0.0. ,

CLI-93-14, 37 NRC 423 (1993). In this case, the NRC staff realized that under i the provisions of the existing Deliberate Misconduct Rule, it was unable to take additional enforcement action against Dr. Orem and was precluded from taking enforcement action against the consultant because the consultant was working for an applicant rather than for a licensee. Subsequently, the

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Commission realized that other categories of persons within NRC jurisdiction had not been explicitly included within the Deliberate Misconduct Rule; e.g.,

certificate holders under 10 CFR Parts 71 and 72 and holders of early site

, permits, certified design certifications and combined licenses under 10 CFR Part 52.

The Commission believes that there may be significant safety 1

consequences from the deliberate submission of false or incomplete information or other deliberate wrongdoing by an applicant for a license or other unlicensed persons proposed to be covered by this modification to the Deliberate Misconduct Rule. For example, a spent fuel cask that is certified 14

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, l Public Protect'on Notification l I

The NRC may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OM8 control number.

Regulatory Analysis The NRC has statutory authority to issue enforcement actions against unlicensed persons whose deliberate misconduct causes a licensee er a certificate holder or an applicant for a license or certificate to be in violation of ' a: ommission's requirements. On August 15, 1991 (56 FR 40664) the NRC promulgated the Deliberate Misconduct Rule which put licensed and unlicensed persons on notice that they may be subject to enforcement action for deliberate misconduct that causes or, if not detected, would cause a

. licensee to be in violation of any of the Commission's requirements or for deliberately providing to the NRC, a licensee, or a contractor information that is incomp'ete or inaccurate in some respect material to the NRC.

However, the Deliberate Misconduct Rule does not specifically apply to:

(1) Applicants for NRC licenses; (2) Applicants for, and holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (3) Applicants for, and holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants issued under 10 CFR Part 52; 13

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action against licensed entities in that a civil penalty and attendant adverse publicity encourage future compliance. The Notice of Violation calls for a precise response regarding the corrective action taken. An enforcement order, if obeyed, will directly control the involvement of an individual in a licensed activity. The effect of having these options available in the enforcement program should reduce the probability of repetitive violations by wrongdoers.

The NRC does not anticipate that additional investigations will be necessary to implement the rule because it focuses on the results of investigations. Based on experience, the NRC expects fewer than 10 additional cases per year to result in enforcement action being taken against unlicensed individuals. The cost of preparing and publishing the additional actions beyond the current workload is not significant.

The proposed amendments to the Deliberate Misconduct Rule constitute the preferred course of action. The cost involved in its promulgation and application is necessary and appropriate. The foregoing discussion constitutes the regulatory analysis for this rule.

Regulatory Flexibility Certification .

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In accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission certifies that this proposed rule, if adopted, will not l

have a significant economic impact on a substantial number of small entities.

The proposed rule would put: (1) applicants for NRC licenses; (2) applicants for, and holders of, certificates of compliance issued under 10 CFR Parts 71 and 72, including those for dry cask storage; (3) applicants for, and holders 16

by the NRC on the basis of falsified test data could represent a threat to public health and safety. Similarly, a quality assurance program that is J submitted to the NRC for approval but is supported by deliberately falsified data that mask a significant defect could also be a public health.and safety The potential for injury is serious. The NRC knows of no reason why threat.

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the Deliberate Misconduct Rule should not apply to persons who deliberately submit materially incomplete or inaccurate information, whether that submittal is by or on behalf of an applicant, or by or on behalf of a holder of a l license, certificate, permit, or approval.

l The objective of the rule is to explicitly put those persons encompassed by this modification of the Deliberate Misconduct Rule on notice.that i

enforcement action may be taken against them for deliberate misconduct or deliberate submission of incomplete or inaccurate information, in relation to NRC licensed activities. Under section 234 of the Atomic Energy Act, the Commission may impose civil penalties on any person who violates any rule, ,

regulation, or order issued under any one of the enumerated provisions of the Act, or who commits a violation for which a license may be revoked. The enforcement actions that may be taken, ir.cluding orders limiting activities of wrongdoers in the future and civil penalties, will serve as a deterrent to others throughout the industry.

The NRC's available alternatives are to promulgate a modification of the Deliberate Misconduct Rule, as is proposed herein, or do nothing. Because a case has already occurred where the NRC was precluded from taking appropriate enforcement action against a consultant to an applicant and there was potential harm to the public, the alternative of doing nothing was rejected.

The benefits of taking enforcement action are similar to those of taking 15

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List of Subjects  !

l 10 CFR Part 30 Byproduct material, Criminal penalties, Government contracts, Intergovernmental relations, Isotopes, Nuclear materials, Radiation l

protection, Reporting and recordkeeping requirements.

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i i, 10 CFR Part 32 1  ;

- Byproduct material, Criminal penalties, labeling, Nuclear materials, Radiation protection, Reporting and recordkeeping requirements.

i 10 CFR Part 40 1 Criminal penalties, Government contracts, Hazardous materials f transportation, Nuclear materials, Reporting and recordkeeping requirements, 1

i, Source material, Uranium.

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. 10 CFR Part 50 Antitrust, Classified information, Criminal penalties, Fire protection, i Intergovernmental relations, Nuclear power plants and reactors, Radiation protection, Reactor siting criteria, Reporting and recordkeeping requirements.

I i 10 CFR Part 52 Administrative practice and procedure, Antitrust, Backfitting, Combined license, Early site permit, Emergency planning, Fees, Inspection, Limited work authorization, Nuclear power plants and reactors, Probabilistic risk 18

a e of,-early site permits, standard design certifications, or combined licenses issued under 10 CFR Part 52; (4) applicants for, and holders of, certificates of registration issued under 10 CFR Parts 30 and 32; (5) applicants for, and

- holders of, quality assurance program approvals issued.under 10 CFR Part 71; and (6).the employees, contractors, subcontractors and consultants of the first five categories of persons on notice that they are subject to the Deliberate Misconduct Rule and, therefore, are subject to civil enforcement i

action if they deliberately cause a licensee, certificate holder, or an applicant for a license or certificate to be in violation of NRC requirements.

The proposed rule, by itself, would not impose any additional obligations on f l

entitics that may fall within the' definition of "small entities" as set forth l in Section 601(3) of the Regulatory Flexibility Act; or within the definition of "small business" as found in Section 3 of the Small Business Act,15 U.S.C. 1 l

632; or within the size standards adopted by the NRC on April 11, 1995 (60 FR l

18344).

Backfit Analysis l j

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

'for this proposed rule because these amendments do not involve any provisions that would impose backfits as defined in 10 CFR 50.109(a)(1).

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! 10 CFR Part 110 Administrative practice and procedure, Classified information, Criminal penalties, Export, Import, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements,

Scientific equipment.

10 CFR Part 150

! Criminal penalties, Hazardous materials transportation, i

j Intergovernmental relations, Nuclear materials, Reporting and recordkeeping j requirements, Security measures, Source material, Special nuclear material.

I For the reasons stated 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

t amendments to 10 CFR. Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72, 110, and a

4 150, i

i PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING 0F BYPRODUCT MATERIAL

1. The authority citation for Part 30 continues to read as follows:

AUTHORITY: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as amended, 202, 206, 88 Stat.

1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

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. -- . - . . _ _ . - - - . _ . . ~ . . _. - . -. . . . -

Y assessment, Prototype, Reactor siting criteria, Redress of site, Reporting and

- recordkeeping requirements, Standard design, Standard design certification.

10 CFR Part 60 Criminal penalties, High-level waste, Nuclear power plants and reactors, Nuclear materials, Reporting and recordkeeping requirements, Waste treatment and disposal.

10 CFR Part 61 Criminal penalties, Low-level waste, Nuclear materials, Reporting and recordkeeping requirements, Waste treatment and disposal.

10 CFR Part 70 Criminal penalties, Hazardous materials transportation, Material control and accounting, Nuclear materials, Packaging and containers, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material.

10 CFR Part 71 Criminal penalties, Ha:a,dous materials transportation, Nuclear materials, Packaging and containers, Reporting and recordkeeping requirements.

10 CFR Part 72 Manpower training pr og ams, Nuclear materials, Occupational safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel.

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registration holder or applicant; or any contractor (including a supplier or j consultant), subcontractor, employee of a contractor or subcontractor of any licensee or applicant for a license or certificate of registration, who 4

knowingly provides to any licensee, applicant, certificate holder, contractor,

) or subcontractor, any components, equipment, materials, or other goods or i

services that relate to a licensee's, :ertificate holder's or applicant's j activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if

! not detected, a licensee, certificate of registration holder, or applicant to i

be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, certificate of registration holder, an applicant, or a licensee's, certificate holder's or j applicant's, contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the f!RC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR l

4 Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person knows:

l' i -(1) Would cause a licensee, certificate of registration holder or applicant to be in violation of any rule, regulation, or order; or any term, i

condition, or limitation, of any license issued by the Commission; cr 2 22 i

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Section 30.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123, (42 U.S.C. 5851).

Section 30.34(b) also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 30.61 also issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

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2. Section 30.1 is revised to read as follows:

6 30.1 Scoce.

This part prescribes rules applicable to all persons in the United States governing domestic licensing of byproduct material under the Atomic Energy Act of 1954, as amended (68 Stat. 919), and under title II of the Energy Reorganization Act of 1974 (88 Stat. 1242), and exemptions from the domestic licensing requirements permitted by section 81 of the Act. This part also gives notice to all persons who knowingly provide to any licensee, applicant, certificate of registration holder, contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's, applicant's or certificate of registration holder's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of 9 30.10.

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3. Section 30.10 is revised to read as follows: l l

1 30.10 Deliberate misconduct.

(a) Any licensee, certificate of registration holder, applicant for a license or certificate of registration, employee of a licensee, certificate of 21 1

l 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, 223?, 2233, 2236, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.

5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022).

Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 as amended by Pub. L. 102-486, sec 2902, 106 Stat. 3123, (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).

7. Section 40.2 is revised to read as follows:

1 40.2 Scope.

Except as provided in il 40.11 to 40.14, inclusive, the regulations in this part apply to all persons in the United States. This part also gives notice to all persons who knowingly provide to any 1.icensee, applicant, 2

contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's or applicant's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of 6 40.10.

24

(2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, certificate of registration holder, applicant, contractor, or subcontractor.

PART 32--SPECIFIC DOMESTIC LICENSES TO MANUFACTURE OR TRANSFER CERTAIN ITEMS CONTAINING BYPRODUCT MATERIAL 1

4. The authority citation for Part 32 continues to read as follows:

AUTHORITY: Secs. 81, 161, 182, 183, 68 Stat. 935, 948, 953, 954, as amended (42 U.S.C. 2111, 2201, 2232, 2233); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841).  !

1

5. Section 32.1(b) is revised to read as follows:

4 1 32.l'Purcose and scope. a l

5 1

(b) The provisions and requirements of this part are in addition to, and not in substitution for, other requirements of this chapter. In particular,  ;

the provisions of Part 30 of this chapter apply to applications, licenses, and certificates of registration subject to this part.

PART 40--DOMESTIC LICENSING 0F SOURCE MATERIAL 6

4

6. The authority _ citation for Part 40 continues to read a5 follows:

l AUTHORITY: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 63 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. lle(2), 83, 84, Pu'a. L. 95-i 23 1

(1) Would cause a licensec or applicant to be in violation of any rule,

regulation, or order; or any term, condition, or limitation, of any license j issued by the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or i

subcontractor.

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

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

1 1 AUTHORITY: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 Stat.

l 936, 937, 938, 948, 953, 954. 955, 956, as amended, sec. 234, 83 Stat. 1244, I

i as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239, l l

2282); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 1 4

(42 U.S.C. 5841, 5842, 5846).

) Section 50.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 as

! amended by Pub. L. 102-486, sec. 2902, 106 Stat 3123, (42 U.S.C. 5851). l

, Section 50.10 also issued under secs. 101, 185, 68 Stat. 936, 955, as amended

l (42 U.S.C. 2131, 2235); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. ,

f 4332). Sections 50.13, 50.54(dd), and 50.103 also issued under sec. 108, 68 l Stat. 939, as amended (42 U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections j 50.33a, 50.55a and Appendix Q also issued under sec. 102, Pub. L.91-190, 83

{ Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844). Sections 50.58, 50.91, and 50.92 also 4

issued under Pub. L.97-415, 96 Stat. 2073 (42 U.S.C. 2239). Section 50.78 26

e a

8. Section 40.10 is revised to read as follows:

1 40.10 Deliberate misconduct.

(c) Any licensee, applicant for a license, employee of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, an applicant, or a licensee's or applicant's contractor or subcontractor, information that the-person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may 4

be subject to enforcement action in accordance with the procedures in 10 CFR Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person knows:

25

"oods or services that relate to a licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if i not detected, a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, an applicant, or a licensee's or applicant's contractor or subcontractor, information that the i

person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC. l (b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person knows:

(1) Would cause a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation, of any license issued by the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or subcontractor.

28

also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Sections 50.80 -

50.81 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234).

Appendix F also issued under sec. 187, 68 Stat. 955 (42 U.S.C 2237).

10. Section 50.1 is revised to read as followsi 1 50.1 Basis. ourpose. and orocedures aoolicable.

Tne regulations in this part are promulgated by the Nuclear Regulatory Commission pursuant to the Atomic Energy Act of 1954, as amended (68 Stat.

919), and Title II of the Energy Reorganization Act of 1974 (88 Stat. 1242),

to provide for the licensing of production and utilization facilities. This part also gives notice to all persons who knowingly provide to any licensee, applicant, contractor, or subcontractor, components, equipment, materials, or a

other goods or services, that relate to a licensee's or applicant's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of 6 50.5.

11. Section 50.5 is revised to read as follows:

1 50.5 Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, or other 27

~

14. Section 52.9 is added following 9 52.8 and reads as follows:

l 52.9 Deliberate misconduct.

l (a) Any holder of, or applicant for, an early site permit, standard

( design certification, or combined license, including its employees, contractors, subcontractors, or consultants and their employees, who knowingly j provides to any holder of, or applicant for, an early site permit, standard design certification, or combined license, or to a contractor, subcontractor or consultant of any of them, equipment, materials, or other goods or services i

4 that relate to the activities of a holder of, or applicant for, an early site permit, standard design certification or combined license in this part, may

not:

(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a holder of, or applicant for, an early site permit, standard design certification, or combined license, to be in violation of any rule, i

regulation, or order; or any term, condition, or limitation of any permit, certification or license issued by the Commission; or I (2) Deliberately submit to the NRC, a holder of, or applicant for, an early site permit, standard design certification, or combined license, or a contractor, subcontractor, or consultant of any of them information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR part 2, subpart B.

30

PART 52--EARLY SITE PERMITS; STANDARD DESIGN CERTIFICATIONS; AND COMBINED LICENSES FOR NUCLEAR POWER PLANTS l

12. The authority citation for Part 52 continues to read as follows:

AUTHORITY: Secs. 103, 104, 161, 182, 183, 186, 189, 68 Stat. 936, 948, 953, 954, 955, 956, as amended, sec. 234, 33 Stat. 1244, as amended (42 U.S.C.

2133, 2201, 2232, 2233, 2236, 2239, 2282); secs. 201, 202, 206, 88 Stat. 1242, 1244, 1246, as amended (42 U.S.C. 5841, 5842, 5846).

l

13. Section 52.1 is revised to read as follows:

I 52.1 Scone.

This part governs the issuance of- early site permits, standard design

. certifications, and combined licenses.for nuclear power facilities licensed under section 103 or 104b of the Atomic Energy Act of 1954, as amended (68

. Stat. 919), and Title II of the Energy Reorganization Act of 1974 (88 Stat.

1242). This part also gives notice to all persons who knowingly provide to any holder of or applicant for an eariy site permit, standard design certification, or combined license, or to a contractor, subcontractor, or consultant of any of them, components, equipment, materials, or other goods or services, that relate to the activities of a holder of or applicant for an early site permit, standard design certification, or combined license, l

subject to this part, that they may be individually subject to NRC enforcement action for violation of 5 52.10.

l 29 l

---_-_-_--___1

~

16. Section 60.1 is revised to read as follows:

I 60.1 Purcose and scoce.

This part prescribes rules governing the licensing of the U.S.

Department of Energy to receive and possess source, special nuclear, and byproduct material at a geologic repository operations area sited, constructed, or operated in accordance with the Nuclear Waste Policy Act of 1902. This part does not apply to any activity licensed under another part of this chapter. This part also gives notice to all persons who knowingly provide to any licensee, applicant, contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's or applicant's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of 6 60,11.

17. Section 60.11 is revised to read as follows:

1 60,11 Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor,. employee of a contractor or subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a licensee or applicant to be in violation of any rule, 32

_y (c) For the purposes of paragraph (a)(1) of thir section, deliberate misconduct by a person means an intentional act or omission that the person knows:

(1) Would cause a holder of, or applicant for, an early site permit, standard design certification, or combined license, to be in violation of any rule, regulation, or order; or any term, condition, or limitation, of any license issued by the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction,

&& contract, purchase order, or policy of a holder of, or applicant for, an i

early site permit, certified design or combined license, or a contractor or subcontractor of any of them.

PART 60--DISPOSAL OF HIGH-LEVEL RADI0 ACTIVE WASTES IN GE0 LOGIC REPOSITORIES

15. The authority citation for Part 60 continues to read as follows:

AUTHORITY: Secs. 51, 53, 62, 63, 65, 81, 161, 182, 183, 68 Stat. 929, 930, 932, 933, 935, 948, 953, 954, as amended (42 U.S.C. 2071, 2073, 2092, 2093, 2095, 2111, 2201, 2232, 2233); secs. 202, 206, 88 Stat. 1244, 1246 (42-U.S.C. 5842, 5846); secs. 10 and 14, Pub. L.95-601, 92 Stat. 2951 (42 U.S.C.

2021a and 5851); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332);

secs. 114, 121, Pub. L.97-425, 96 Stat. 2213g, 2228, as amended (42 U.S.C.

10134,10141) and Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (42 U.S.C. 5851).

i 31

1 4 , - . .

~

~

5842, 5846); socs. 10 and 14, Pub. L.95-601, 92 Stat. 2951 (42 U.S.C. 2021a and 5851) and Pub. L. 102-486, sec 2902, 106 Stat. 3123, (42 U.S.C. 5851).

l l 19. In i 61.1, paragraph (c) is revised to read as follows:

i I 61.1 Purpose and scope.

(c) This part also gives notice to all persons who knowingly provide to any licensee, applicant, contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's or applicant's activities subject to this part, that they may be individually l subject to NRC enforcement action for violation of 161.9b.

20. Section 61.9b is revised to read as follows:

I 61.9b Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a licensee or applicant to be in violation of any rule, 34

l regulation, or order; or any tern, condition, or limitation of any license issued by the Commission; or

.(2) Deliberately submit to the NRC, a licensee, an applicant, or a licensee's or applicant's contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR  ;

part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person i

knows:

(1) Would cause a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation, of any license issued by the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or subcontractor.

PART 61--LICENSING REQUIREMENTS FOR LAND DISPOSAL 0F RADI0 ACTIVE WAST l

18. The authority citation for Part 61 continues to read as follows:

AUTHORITY: Secs. 53, 57, 62, 63, 65, 81, 161, 182, 183, 68 Stat. 930, 932, 933, 935, 948, 953, 954, as amended (42 U.S.C. 2073, 2077, 2092, 2093, 2095, 2111, 2201, 2232, 2233); secs. 202, 206, 88 Stat. 1244, 1246 (42 U.S.C.

33 1

4 i .

< 201, as amended, 202, 204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).

Sections 70.l(c) and 70.20a(b) also issued under secs. 135, 141, Pub. L.97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C.

l 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).

I 22. Section 70.2 is revised to read as follows:

l.

! l 70.2 Scope.

i Except as provided in il 70.11 to 70.13, inclusive, the regulations in

! this part apply to all persons in the United States. This part also gives notice to all persons who knowingly provide to any licensee, applicant,

~

contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's or applicant's activities subject to j this part, that they may be individually subject to NRC enforcement action for l violation of 6 70.10.

k l

s 36 t

regulation, or order; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, an applicant, or a licensee's or applicant's contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC.

.(b) A person ho violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures.in 10 CFR part 2, subpart 8.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person knows:

(1) Would cause a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation, of any license issued by the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or subcontractor.

PART-70--DOMESTIC LICENSING 0F SPECIAL NUCLEAR MATERIAL

21. The authority citation for Part 70 continues to read as follows:

AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended, sec. 1701, 106 Stat.

2951,-2952, 2953 (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282, 2297f); secs.

35

m._. .- _ _.. _ _ _ _ . . _ _ . . _ _ _ _ _ . . _ . _ . _ _ _ _ _ . _

(1) Would cause a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation, of any license l'

issued by the Commission; or (2) Constitutes a' violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or )

subcontractor. )

PART 71--PACKAGING AND TRANSPORTATION OF RADI0 ACTIVE MATERIAL i

24. The authority citation for Part 71 continues to read as follows:

AUTHORITY: Secs. 53, 57, 62, 63, 81, 161, 182, 183, 68 Stat. 930, 932, 933, 935, 948, 953, 954, as amended, sec. 1701, 106 Stat. 2951, 2952, 2953 (42 U.S.C. 2073, 2077, 2092, 2093, 2111, 2201, 2232, 2233, 2297f); secs. 201, as amended, 2.02, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

Section 71.97 also issued under sec. 301, Pub. L.96-295, 94 Stat. 789-790.

25. Section 71.0 is amended by adding a new paragraph (f) to read as follows:

6 71.0 Purpose and scoce.

(f) This part also gives notice to all persons who knowingly provide to any licensee, certificate holder, quality assurance program approval holder, applicant for a license, certificate, or quality assurance program approval or 38

23. Section 70.10 is revised to read as follows:

I 70.10 Deliberate misconduct.

(a)- Any licensee, applicant for a license, employee of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor on subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, cr other goods or services that relate to a licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a-licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, an app'icant, or a licensee's or applicant's contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person knows:

37 I

l J

l (1) Engage in deliberate misconduct that causes or would have caused, 2 if not detected, a licensee, certificate holder, quality assurance program l; approval holder, or any applicant to be in violation of any rule, regulation, I or order; or any term, condition, or limitation of any license, certificate or j approval issued by the Commission; or (2) Deliberately submit to the'NRC, a licensee, a certificate holder, i quality assurance program approval holder, an applicant for a license i

! certificate or quality assurance program approval, or a licensee's, 4 applicant's, certificate holder's or quality assurance program approval

(

holder's contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material l l to the NRC.

] (c) A person who violates paragraph (b)(1) or (b)(2) of this section may be subject to enforcement action in accordance with the procedures in  !

10 CFR part 2, subpart B.

(d) For the purposes of paragraph (b)(1) of this section, deliberate ,

misconduct by a person means an intentional act or omission that the person i

knows:

(1) Would cause a licensee, certificate holder, quality assurance

?

program approval holder or applicant for a license, certificate, or quality

, assurance program approval to be in violation of any rule, regulation, or

' order;-or any term, condition, or limitation, of any license or certificate i issued by the Commission; or j (2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or i subcontractor.

40 4

to a contractor, or subcontractor of any of them, components, equipment, materials, or other goods or services, that relate to a licensee's, certificate holder's, or applicant's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of j 71.11.

26. Section 71.11 is added to read as follows: ,

l 1

4 71.11 Deliberate misconduct.

(a) This section applies to any---

i (1) Licensee; (2) Certificate holder; (3) Quality assurance program approval holder;  !

(4) Applicant for a license, certificate, or quality assurance program i approval; (5) Contractor (including a supplier or consultant) or subcontractor, to any person identified in paragraphs (a)(1) through (a)(4) of this section; er (6) Employee of any person identified in paragraphs (a)(1) through (a)(5) of this section.

(b) A person identified in paragraph (a) of this section who knowingly provides to any entity, listed in paragraphs (a)(1) through (a)(5) of this section, any components, materials, or other goods or services that relate to a licensee's, certificate holder's, quality assurance program approval holder's or applicant's activities subject to this part may not:

39 1

, , . . - , -, r.- - -

L , .. . . . .

28. Section 72.2 is amended by adding a new paragraph (f) to read as j follows:

i

i. I 72.2 Scone.

1

[ * * * *

• l (f)- This part also gives notice to-all pe ' sons who knowingly provide to any f

I licensee, certificate holder, applicant for a license or certificate, contractor, or subcontractor, components, equipment, materials, or other goods f

or services, that relate to a licensee's, certificate holder's, or applicant's I activities subject to this part, that they may be individually subject to NRC l enforcement action for violation of 9 72.12.

i j 29. Section 72.12 is revised to read as follows:

I 4

1 72.12 Deliberate misconduct.

1 (a) Any licensee, certificate holder, applicant for a license or certificate, employee of a licensee, certificate holder, or applicant for a license or certificate; or any contractor (including a supplier or consultant) or subcontractor, employee of a contractor or subcontractor.of any licensee, certificate holder, or applicant for a license or certificate who knowingly provides to any licensee, certificate holder, applicant for a license or certificate, contractor, or subcontractor, any components, materials, or other goods or services that relate to a licensee's, certificate holder's, or applicant's activities subject to this part, may not:

(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a licensee, certificate holder or applicant to be in 42

_ . _ _ ~ . _ __ -

4 a PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SPENT NUCLEAR FUEL'AND HIGH-LEVEL RADI0 ACTIVE WASTE

27. The authority citation fo. Part 72 continues to read as follows:

AUTHORITY: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, 187, 189, 68 Stat. 929, 930, 932, 933. 934, 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 2234, 2236, 2237, 2238, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846); Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332); Secs. 131, 132, 133, 135, 137, 141, Pub. L.97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148, Pub. L.

100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 10153, 10155, 10157, 10161, 10168).

Section 72.44(g) also issued under secs.142(b) and 148(c), (d), Pub. L.

100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C. 10162(b), 10168(c), (d)).

Section 72.46 also issued under sec. 189, 6P Stat. 955 (42 U.S.C. 2239); sec. 134, Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154). Section 72.96(d) also issued under sec. 145(g), Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C.

10165(g)). Subpart J also issued under secs. 2(2),2(15),2(19),117(a),

141(h), Pub. L.97-425, 96 Stat. 2202, 2203, 2204, 2222, 2224 (42 U.S.C.

10101,10137(a),10161(h)). Subparts K and L are also issued under sec. 133, 98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a), 96 Stat. 2252 (42 U.S.C.

10198).

41

\

^

e. . ,

j , ,

933, 936, 937, 948, 953, 954, 955,'956, as amended (42 U.S.C. 2071, 2073, 4

2074, 2077,.2092-2095, 2111, 2112, 2133, 2134, 2139, 2139a, 2141, 2154-2158, 2201, 2231-2233, 2237, 2239); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. l j

5841; sec 5, Pub. L. 101-575, 104 Stat 2835 (42 U.S.C.2243).

Sections 110.l(b)(2) and 110'l(b)(3) also issued under Pub. L. 96-92, 93 l 1 Stat. 710 (22 U.S.C. 2403). Section 110.11 also issued under sec. 122, 68

! Stat. 939 (42 U.S.C. 2152) and secs. 54c and 57d., 88 Stat. 473, 475 (42 l

i j U.S.C. 2074). Section 110.27 also issued under sec. 309(a), Pub. L.99-440.

l Sect.an 110.50(b)(3) also issued under sec. 123, 92 Stat. 142 (42 U.S.C.

2153). Section 110.51 also issued under sec.184, 68 Stat. 954, as amended i I

(42 U.S.C. 2234). Section 110.52 also issued under sec. 186, 68 Stat. 955 (42 l U.S.C. 2236). Sections 110.80-110.113 also issued under 5 U.S.C. 552, 554.  ;

Sections 110.130-110.135 also issued under 5 U.S.C. 553. Sections 110.2 and

-110.42 (a)(9) also issued under sec. 903, Pub. L. 102-496 (42 U.S.C. 2151 et seq.).

31. Section 110.1 is revised to read as follows:

1 110.1 Purnose and scope.

(a) The regulations in this part prescribe licensing, enforcement, and rulemaking procedures and criteria, under the Atomic Energy Act, for the export of nuclear equipment and material, as set out in il 110.8 and 110.9, and the import of nuclear equipment and material, as set out in i 110.9a.

This part also gives notice to all persons who knowingly provide to any licensee, applicant, contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's or l

44

violation' of any rule, regulation, or. order; or any term, condition, or limitation of any license or certificate issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, a certificate holder, ,

an applicant for a licer.se or certificate, or a licensee's, applicant's, or ce,tificate holder's contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC. ,

t (b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforr.ement action in accordance with the procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means an intentional act or omission that the person knows:

(1) Would cause a licensee, certificate holder or applicant for a license or certificate to be in violation of any rule, regulation, or order; 4 or any term, condition, or limitation, of any license or certificate issued by.

the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction,

' contract, purchase order, or policy of a licensee, applicant, contractor, or ,

subcontractor.

l PART 110--EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL 4

30. The authority citation for Part 110 continues to read as follows:

AUTHORITY: Secs. 51, 53, 54, 57, 63, 64, 65, 81, 82, 103, 104, 109, Ill,  ;

j 126, 127, 128, 129, 161, 181, 182, 183, 187, 189, 68 Stat. 929, 930, 931, 932, )

i 43

~

(c) For the purposes of paragraph (a)(1) of this section, deliberate

misconduct by a person means an intentional act or omission that the person ,

knows:

(1) Would cause a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation, of any license issued by the Commission; or (2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or subcontractor. l l

PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN AGREEMENT STATES AND IN OFFSH0RE WATERS UNDER SECTION 274

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

AUTHORITY: Sec. 161, 68 Stat. 948, as amended, sec. 274, 73 Stat 688 (42 U.S.C. 2201, 2021); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841).

Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued under secs.

lle(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 under sec.

53, 68 Stat. 930, as amended (42 U.S.C. 2073). Section 150.15 also issued under secs. 135, 141, Pub.L.97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section 150.17a also issued under sec. 122, 68 Stat. 939 (42 U.S.C.

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

2282).

46

1

. . . a .. ,

applicant's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of i 110.7b. ,

1

32. Section 110.7b is revised to read as follows:

1 i

i 110.7b Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's or applicant's activities in this part, may.not:

1 (1) Engage in deliberate misconduct that causes or would have caused, if not detected, a licensee or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, an applicant, or a licensee's or applicant's contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR part 2, subpart B.

45 1

5... '&,4na A s- deE-4+A d4v4h#..- JE A-4-MJ4h-n,'Ja&-

AAme.e4-3 4 .' Section 150.2 1s revised to read as follows: )

! ll i

3 6 150.2 Scope.

j The regulations in_this'part apply to all States that have entered into j agreements with the Commission or the Atomic Energy Commission pursuant to I subsection 274b of the Act. This part aln gives notice to all persons who

!- knowingly provide to any licensee, applicant for a license or. certificate or quality assurance program approval, holder of a certificate or quality ,

i i

assurance program approval, contractor, or subcontractor, any components, equipment, materials, or other goods or. services that relate to a licensee's, certificate holder's, quality assurance program approval holder's or applicant's. activities subject to this part, that they may be individually l subject to NRC enforcement action for violation of 66 30.10, 40.10, 70.10 and 71.11.

il Dated at Rockville, Maryland, this 30th day of September, 1996. ,

For tne Nuclear Regulatory Commission.

.)b b Yd WITliam M. Hill, Acting Secretary of the Commission. j t

47

J g .. . , ,

e  %

CONGRESSIONAL CORRESPONDENCE SYSTEM DOCUMENT PREPARAT!ON CHECKLIST This check list is to be submitted with each document (or group of Qs/As) sentforprocessing into the CCS.

1. BRIEF DESCRIPTION OF DOCUMENT (S) ;b - CM 120 I"

2. TYPE OF DOCUMENT X CORRESPONDENCE HEARINGS (Qs/As)

3. DOCUMENT CONTROL SENSITIVE (NRC ONLY) X NON-SENSITIVE \

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~

RELEASE TO PDR g000