Text

Notice of OMB Review of Info Collection & Solicitation of Public Comment
	ML20137G010
Person / Time
Issue date:	03/26/1997
From:	Cranford G; NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
To:	;
Shared Package
ML20137G013	List: ML20137G010; ML20137G049;
References
	NUDOCS 9704010285
	Download: ML20137G010 (4)
	v • d • e

PAPERWORK REDUCTION ACT CUBMISSION Ple:s3 rind the instructions befora completing this form. For additional forms or assistance in completing this form, contact your agency's Paperwork Clearance Officer. Send two copies of this form, the collection instrument to be reviewed, the Supporting Statement, and any additional documertation to: Office of information and Regulatory Affairs, Office of Management and Budget, Docket Library Room 10102. 72517th Street NW, Washington. DC 20503

1. Agency / Subagency originating request

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2. OMB control number U.S. Nuclear Regulatory Commission a.

3150-0039

b. None

3. Type of information collection (check onel J Type of review requested (check one/

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a. New collection X

a. Regular submission

c. Delegated X

b. Revision of a currently approved collection

b. Emergency - Approval requested by (date):

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c. Extension of a currently approved collection

5. Will this information collection have a

a. Yes significant economic impact on a

d. Reinstatement, without change, of a previously approved substantial number of small entities?

X b.No collection for which approval has expired

e. Reinstatement, with change, of a previously approved X a. Three years from approval date collection for which approval has expired Requested

f. Existing collection in use without an OMB control number 6* expiration date

b. Other (Specify):

7. Title 10 CFR Part 140, Financial Protection Requirements and indemnity Agrcements B. Agency form number (s) (if applicable /

Not applicable

9. Keywords insurance, Nuclear power plants and reactors, Reporting and recordkeeping requirements

10. Abstract Licensees are required to submit information that allows NRC to assess the financial protection required of nuclear facilities.

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11. Affected public neart prenary worn *P* and ad uthers rhet an@r with *x*)

12. obligation to respond thtet prenay with *P'amr as othes that nWIr with x*)

a. individuale or households

d. Forms

a. Voluntary P

b. Business or other for-profit

e. Federal Government

b. Required to otitain or retain benefits

c. Not-for profit institutions

f. state, Local. or Tribal Govemment P

c. Mandatory

13. Annual reporting and recordkeeping hour tnarden

14. Annual reporting and recordkeeping cost burden #n thousands etabsers;

a. Number of respondents 180

a. Total annoelized capital /startup costs 0

b. Total annual responses 18C

b. Total annual costs (o&M) 0

1. Percentage of these responses

c. Total annualized cost requested 0

collected electroniceny O

d. Current OMB inventory 0

c. Total annual hours requested B53

e. Difference o

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d. Current oMB inventory 899

f. Explanation of difference

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e. Difference (46)

1. Program change j

f. Explanation of difference

2. Adjustment

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1. Program change

2. Adjustment (46)

15. Purpose of information conection 3 Frequency of recordkeeping or reportin (Check e# that applyl (Mort pr6nery eWah *P* end af others thet apply iWeh *K')

a. Recordkeeping

b. Third-party disclosure

s. Application for beneftto

s. Program planning or management X

c. Report 6ng

b. Program evolustion

f. Reeeerch X

1. on occasion

2. Weekly

3. Monthly j

c. General purpose sta.istics p

g. Regulatory or compliance r

d. Audit

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4. Quarterty

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5. Semi-annually

6. Annually

7. Bienniany

8. other Idescribe)

17. statsstical methode 18* Agency contact (person sWro con best answer guestions repersting the content of this submission)

Does this informatardi coGection employ statistical methods?

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Name:

Roberta ingrarn Yee X No Phone:

(301)415-1219 9704010285 970326 PDR ORG EUSOMB PDR

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FINAL SUPPORTING STATEMENT j

FOR.

j 10 CFR PART 140

" Financial Protection Requirements and Indemnity Agreements" (0MB Clearance No. 3150-0039) j_

EXTENSION / REVISION Y

' DESCRIPTION OF THE INFORMATION COLLECTIO#

The regulations in 10 CFR Part 140 provide appropriate procedures and i'

requirements for determining the financial protection required of licensees i

and for the indemnification and limitation of liability of certain licensees I

and other persons pursuant to Section 170 of the Atomic Energy Act of 1954, as.

l amended (the Act), and the liability insurance required of uranium enrichment

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facility licensees pursuant to Section 193 of the Act.

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JUSTIFICATION i

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1.

Need for and Practical Utility of the Collection of Information j

Section 140.6(a) requires that licensees submit a report to the NRC in the event of bodily injury or property damage arising out of the possession or use of radioactive material.

This information assists 4

NRC in assessing the extent of any damages which may have occurred or i

are expected.to occur sa that appropriate action may be taken to initiate the remedies provided by the' Price-Anderson Act.

l Section140.7(b)pertainstoasituationwhereareactor.manufactuger (licensee) builds a number of small research reactors (rated at 31/3 l

i megawatts or less) and operates them at its site prior to delivery to

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a buyer.

Each such reactor is indemnified under the Price-Anderson system, and because of such indemnification, the manufacturer is 4

i liable to pay a fee for each reactor operated.

Rather than be billed I'

for each reactor separately, the licensee is required to estimate the maximum number of reactors operating at any one time, and the fee is

'i based on this estimate.

If experience shows that more or less than j-this estimated maximum have operated, the licensee will inform the NRC so that the fee can be adjusted.

i Section 140.13 requires that each holder of a construction permit' 4

under Part 50 and each holder of a Part 70 license must maintain $1 million in financial protection prior to issuance of a Part.50 i

operating license and submit evidence of fulfilling this requirement, i

as required by Section 170 of the Act.

Section 140.13a requires-that each holder of a Part 70 license to i

possess and use plutonium at a plutonium processing and fuel

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fabrication plant must maintain $200 million of financial protection

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4 and submit evidence of fulfilling this requirement, as required by Section 170 of the Act.

Section 140.13b requires proof of liability insurance to be filed with the Commission, pursuant to 140.15, before issuance of a license for a uranium enrichment facility, as required by Section 193 of the Act.

Sections 140.15(a)(1) and (2) require those licensees who choose to maintain financial protection in the form of liability insurance required pursuant to Section 170(b) of the Act to submit proof to the NRC of their financial protection (copies of new policies and copies of endorsements, i.e., amendments to the policies).

All liability policies are with the nuclear insurance pools, American Nuclear Insurers (ANI) and Hutual Atomic Energy Liability Underwriters (MAELU).

Sections 140.15(b)(1) and (2) require proof of financial protection for those licensees who choose to maintain financial protection in the form of the licensees' own resources pursuant to Section 170(b) of the Act to be submitted to NRC.

Respondents to these requirements must annually submit certified financial statements for the previous three years, and if a statement is older than 90 days, an uncertified statement prepared within the 90-day period.

NRC reviews this information to determine whether the licensee has adequate financial protection.

Section 140.15(c) requires any licensee to file with the NRC such additional proof of financial protection or other financial information as the NRC determines to be necessary to determir.e whether financial protection is being maintained pursuant to 10 CFR 140.

Section 140.15(e) requires licensees to promptly notify the NRC of any material change in financial protection or in other financial information so that NRC can reevaluate these changes.

Sections 140.17(a) and (b) require that licensees submit to NRC proof that insurers are legally authorized to issue liability policies and that at least 30 days prior to the termination of such policies, licensees shall inform the NRC of renewal of such policies pursuant to Section 170(b) of the Act, or shall file other proof of financial protectie-With this information, NRC judges the legality and reliability of licensee liability policies.

Section 140.20(c) specifies that licensees who indicate that they will not be paying retrospective premium assessments, immediately submit their financial statements to NRC.

Retrospective premiums are required pursuant to Section 170(b) of the Act. As required, subsequent submission of financial statements by such licensees may be requested by NRC.

These statements are necessary to determine whether the NRC will be required to pay, on behalf of a licensee, any unpaid retrospective premiums. The Act authorizes the NRC to levy liens to obtain payment from the licensee.

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Section 140.21 requires licensees to submit to NRC copies of any one of several financial devices to guarantee a licensee's payment of a retrospective premium assessment as required pursuant to Section 170(b) of the Act. This evidence is required to be submitted at the issuance of the license and annually, on the date on which the indemnity agreement is effective.

Copies of these financial devices provide NRC with the assurance that licensees maintain adequate financial protection.

The NRC completes its review of this information within approximately one month after its receipt.

l 2.

Aaency Use of Information As stated specifically above, NRC uses the information required by 10 CFR Part 140 to assess (a) the financial protection required of licensees and for the indemnification and limitation of liability of certain licensees and other persons pursuant to Section 170 of the Act and (b) the liability insurance required of uranium enrichment facility licensees pursuant to Section 193 of the Act.

3.

Reduction of Burden Through Information Technoloav There is no le 31 obstacle to the use of information technology.

Moreover, NRC encourages its use; however, at the current time, no responses are submitted electronically.

4.

Effort to Identify Duplication and Use Similar Information There is no source for the required information other than licensees and the nuclear insurance pools. The Information Requirements Control Automated System (IRCAS) has been searched.

There is no duplication with other collections of information.

5.

Effort to Reduce Small Business Burden Small business is not affected by 10 CFR 140 information Hection requirements.

6.

Conseauences to Federal Proaram or Poljcv Activities if the Collection is Not Conducted or is Conducted less Freauently Not collecting this information or collecting it at less frequent intervals would be deleterious to NRC's mission to protect public health and safety, i

I 7.

Circumstances Which Justify Variation from OMB Guidelines f

This information collection does not vary from OMB guidelines.

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I 8.

Consultations Outside the NRC On December 23, 1996, the NRC published a notice in the Federal Reoister (61 FR 67582) of pending NRC action to submit an information collection request to OMB and solicitation of public comment.

No comments were received.

9.

Payment or Gift to Resoondents Not applicable.

10. Confidentiality of Information NRC provides no pledge of confidentiality of this information collection.

11. Justification for Sensitive Ouestions Part 140 information collections do not involve sensitive or private information.

12. Estimated Industry Burden and Burden Hour Cost Section 140.6(a)

Section 140.6(a) applies to about 140 licensees maintaining an indemnity agreement. There is no schedule for imposing the 4

requirements specified in Part 140 since the information is only submitted when an accident occurs.

To date, five reports have been submitted by licensees under this section covering damages alleged to have occurred as a result of NRC-licensed activities. The reports are 3 to 5 pages in length.

Approximately 8 to 15 hours1.736111e-4 days 0.00417 hours 2.480159e-5 weeks 5.7075e-6 months of effort are needeo to prepare these reports. No reports are anticipated during this clearance period.

Section 140.7(b)

There are no licensees under Section 140.7(b) to which this information collection requirement currently applies.

The maximum number of licensees to which the requirement could apply has not and almost certainly will not exceed nine. As described above, an indication of the maximum number of reactors operating at any one time is the only requirement imposed under 140.7(b).

Its purpose is to reduce the number of times a licensee is required to notify the NRC when a small reactor needs to be indemnified and, thus, when a fee is due.

The report is due as required by the number of reactors being manufactured at one time. No more than three copies are submitted and are used by NRC's Office of Administration for establishing fees.

This paragraph has rarely been applied and no further use is foreseen.

If used, three hours per report is estimated to be required.

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Because only an estimate of number of reactors operating at one time is required, which would be readily available to the licensee, the only cost involved would be for preparing the report itself.

Sections 140.13 and 13a i

At present, there are no construction permit holders required to comply with Section 140.13.

Section 140.13a applies to five licensees.

Requirements for submitting this information are not placed on the licensees but on the insurance pools providing insurance coverage.

Costs are minimal.

Section 140.13b I

Two applications are expected during this clearance period from applicants for uranium enrichment facilities.

Two hours are required for evaluating these records and the costs for submitting these records are minimal, consisting of the clerical time and duplicating cost associated with copying the policies and endorsements.

Sections 140.15(a)(1) and (2)

Sections 140.15(a)(1) and (2) apply to about 91 licensees.

Two hours are required for evaluating these records and the costs for submitting these records are minimal, consisting of the clerical time and duplicating cost associated with copying the policies and endorsements.

Sections 140.15(b)(1) and (2)

Sections 140.15(b)(1) and (2) do not currently apply to any licensees.

j The required information would be available_ as part of a firm's standard financial information system and would thus impose no costs other than nominal duplicating and clerical costs. The under-90-day statement would require no more than 8 or 16 staff hours of a professional accountant's time.

Stction 140.15(c)

Section 140.15(c) could apply to about 91 licensees. Nominal, if any, burden is_ anticipated.

Section 140.15(e)

Section 140.15(e) applies to all licensees with whom an indemnity agreement is executed.

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r Since this section has never been utilized, no respondent time can be estimated.

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l Sections 140.17(a) and (b)

. Sections 140.17(a) and (b) potentially apply to about 109 licensees.

i All liability policies are issued by the existing nuclear insurance i

4 pools. The provisions of this section would become operable only if i

and when a new. insurance carrier enters that market and would require i

only nominal reproducing and clerical effort.

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Section 140.20(c)

Section 140.20(c) potentially applies to 83 licensees jointly.

This reporting requirement would be used only for those firms which cannot or will not pay the assessed retrospective premium. The required information would be available as part of a firm's standard financial reporting. system and would, thus, impose no costs other than nominal duplicating and clerical costs.

Section 140.21 l

Section 140.21 potentially applies to 83 licensees jointly.

2 Sections 140.21(a) through (d) would simply require a copy of the appropriate agreement between the licensee and the party providing the financial service.

Cost would thus be nominal.

Section 140.21(e),

i the annual certified financial statement, may require information in a format not normally produced by the licensee in the standardized financial reporte. However, such information should be readily 3

available from the licensee's internal records and should require no i

more than one day of effort by the licensee's accounting staff. No licensee who has utilized this method of guarantee (effective August j

1,1977) has indicated any difficulty or undue burden in compiling the t

needed information.

Summary of Industry Annual Burden

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The table below summarizes the estimated annual burden on NRC licensees of preparing reports required under various sections of 10 l

CFR Part 140.

No burden is given for reports required only after accidents.

i Number of Annual hours of Enr_t Licensees Burden / Licensee Total hours 1

140.6(a) 140 8-15 hours when required 140.7(b)

None Currently 3 hours3.472222e-5 days 8.333333e-4 hours 4.960317e-6 weeks 1.1415e-6 months / report 140.13 None Currently I hour

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k 140.13a 5

1 hour1.157407e-5 days 2.777778e-4 hours 1.653439e-6 weeks 3.805e-7 months

5 140.13b 1

2 hours2.314815e-5 days 5.555556e-4 hours 3.306878e-6 weeks 7.61e-7 months 2

140.15(a) 91 2 hours2.314815e-5 days 5.555556e-4 hours 3.306878e-6 weeks 7.61e-7 months 182 140.15(b)

None Currently 8-16 hours 140.15(c) 91 0

140.15(e)

None Currently N.A.

140.17(a)&(b) 109 1 hour1.157407e-5 days 2.777778e-4 hours 1.653439e-6 weeks 3.805e-7 months , when required 140.20(c) 83 1 hour1.157407e-5 days 2.777778e-4 hours 1.653439e-6 weeks 3.805e-7 months , when required 140.21 83 8 hours9.259259e-5 days 0.00222 hours 1.322751e-5 weeks 3.044e-6 months 664 Total Hours 853

Burden on Insurers Summary of Annual Industry Cost Approximately 180 reports are expected to be submitted annually to NRC. The estimated annual cost is expected to be approximately

$109,184 (853 hours0.00987 days 0.237 hours 0.00141 weeks 3.245665e-4 months x $128/ hour).

13.

Estimate of Other Additional Costs None.

14.

Estimated Annualized Cost to the Federal Government The annual cost for the staff to review and analyze the data, provide followup, prepare reports and clerical support and typing is

$23,040. This is based on the following:

Number of Hours of NRC Total Hours of Eari

= Licensees Effort / licensee NRC Review i

140.6(a) 140 15 (only in the event N.A.

of an accident) 140.7(b)

None Currently 1

N.A.

140.13 None Currently 1

N.A.

140.13a 5

1 3

140.13b 1

1 1

140.15(a) 91 1

91 140.15(b)

None Currently 4

N.A.

140.15(c) 91 0

0 i

140.15(e)

None Currently 2

N.A.

140.17(a) 109 1

N.A.

& (b).

140.20(c) 83 4

N.A.

140.21 83 1

83 180 at

$128/ hour

= $23,040 This cost is fully recovered through fee assessments to NRC licensees pursuant to 10 CFR Parts 170 and/or 171.

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15. Reasons for Chanaes in Burden or Cost The estimated industry and Federal burden is somewhat reduced due to fewer expected respondents.

16.

Publication for Statistical Use The collected information is not published for statistical purposes.

I 17.

Reason for Not Disolavina the Exoiration Date

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The requirement is contained in a regulation. Amending the Code of Federal Regulations to display information that, in an annual publication, could become obsolete would be unduly burdensome and too difficult to keep current.

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Exceptions to the Certification Statement None.

B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS i-Not applicable.

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ML20137G010

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