ML20198M069

Forwards Commission Paper Re Delibrate Misconduct by Unlicensed Persons,For Concurrence

ML20198M069
Person / Time
Issue date:	08/14/1997
From:	Knapp M NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES)
To:	Paperiello C NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
Shared Package
ML20198L674	List: ML20198L667 ML20198L765 ML20198L892 ML20198L903 ML20198L929 ML20198L965 ML20198L970 ML20198L985 ML20198L996 ML20198M005 ML20198M031 ML20198M042 ML20198M069 ML20198M084 ML20198M087 ML20198M097 ML20198M130 ML20198M136 ML20198M143 ML20198M160 ML20198M200 ML20198M221 ML20198Q028
References
FRN-57FR1890, 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 AF35-2-020, AF35-2-20, NUDOCS 9801160181
Download: ML20198M069 (102)

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?b A-pg* g j NUCLEAR REGULATOR 1f COMMISSION t WASHINGTON D.C. SeteHooi %, * * * * *,6 August 14, 397 MEMORANDUM T0: Carl J. Payeriello. Director Office of luclear Material Safety & Safeguards James Lieberman. Director Office of Enforcement William J. Olmstead. Associate General Counsel for Licensing and Regulation Office of the General Counsel Jess'e L. Funches Chief Financial Officer Anthony J. Galante Chief Information Officer Richard L. Bangart. Director Office of State Programs David L. Meyer. Chief Rules and Directives Branch Division Administrative Services Office of Administration Brenda Jo. Shelton. Chief Information and Records Management Branch Office of Information Resources Management FROM: Malco pp, irg Director atory Research Off eo uc ear

SUBJECT:

FINAL RULE: DEllBERATE MISCONDUCT BY UNLICENSED PERSONS (WITS-960007) Attached for your concurrence is a Commission paper transmitting a final rule that amends 10 CFR Parts 30. 32. 40. 50, 52. 60. 61. 70. 71. 72, 110 and 150 dealing with Deliberate Misconduct by unlicensed persons. It is requested that NMSS coordinate with the Regions on this final rule. in SECY-96-017 dated January 26, 1996. the NRC staff informed the Commission of its plans to extend the Deliberate Misconduct Rule to certificate holders, and to a)plicants for licenses or certificates of compliance. The Commission, in an SR4 dated February 8,1996, advised the Executive Director for Operations (EDO) that it approved SECY-96-017 and had no objections to the proposed changes to the Deliberate Misconduct Rule found at 10 CFR 30.10. ftA g11g181980114 30 57FR1990 PDR ]

a C. J. Paper 1ello et al. 2 40.10, 50.5. 60.11, 61.9b. 70.10, 72.12. and 110.7b. In developing this rulemaking, the staff extended the scope of the Deliberate Misconduct Rule to also cover applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants issued under 10 CFR Part 52: applicants for, or holders of certificates of registration issued under Parts 30 and 32: and applicants for, or holders of. quality assurance program approvals issued urder Part 71 (including the employees of their contractors, subcontractors and consultants). In addition, the scope of 10 CFR 150.2 was changed to make the rule applicable to persons conducting activities under reciprocity in areas of NRC jurisdiction. The proposed rule was published in the f_edpral Reaister on October 4. 1996. The coment period ended on December 18, 1996. The Commission received six comments on the proposed rule, five in favor and one against. A summary of the comments and NRC's respcases are discussed in the Statement of Consideration for the Final Role. in addition, the Office of Enforcement will revise its enforcement policy and publish a Federal Register notice to address enforcement action against these categories of unlicensed nersons at the time c' publication of the final rule. The Federal Register notice that amends NUREG-1600. " General Statement of Policy and Procedures for Enforcement Action." is found as Enclosure 2. The fol?owing is a summary of this request 1.

Title:

Final Rule: Deliberate Misconduct by Unlicensed Persons (WITS-960007) 2. Task leader: A. J. 01Palo, RES/DRA - 415-6191 3. Workina Grouo-G. Cant. OE P. Brochman. NMSS N. Jensen. OGC L. Bolling. OSP M. Lesar.ADM 4. Steerina Grouo: No 5. Enhanced Public Farticipation: No 6. [omoatibility foi Aareement States; No 7. Reauested Action: Office Concurrence 8. BeQU25ted Comoletion Date: Two weeks from the date of this memorandum, t .1

C. J. Paperiello et al. 3 9. Resources and Coordination: Estimated resources to develop this rulemaking are 0.75 FIE. These resources are within existing budget allocations. 3 Copies of this concurrence package have been forwarded to ACRS, ACNW. and IG for information. 1 e

Attachment:

Commission Paper w/encls. cc w/ attachment: H. T. Bell. OIG J. Larkins. ACRS & ACNW H. Miller. Region I/ ORA L. Reyes. Region II/ ORA A. Beach, Region llI/0RA 4 E. W. Mershcoff Region IV/0RA DISTRIBUTION: Central f/c WMB r/f-ACThadani, ADEDE BMMorris FCostanzi FNorian LRiani CGallagher DMendiola DOCUMENT NAME:0:\\DIPALO\\DELMISCN\\TRANS1.MEM-

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L o C.'J. Paperiello et al. 3 9. Resources and' Coordination: Estimated resources to develop this rulemaking are 0.75 FTE. These resources are within existing budget allocations. Copies of this concurrence package have been forwarded to ACRS. ACNW, and IG for information. 1

Attachment:

Commission Paper w/encls. cc w/ attachment: H. T. Bell, 0IG. J. Larkins. ACRS & ACNW H. Miller, Region I/0RA L. Reyes, Region II/0RA A. Beach, Region III/0RA E. W. Mershcoff. Region IV/0RA { \\. 3 \\ \\. DJSTRIBUTION: Central f/c WHB r/f ELJordan DEDE 7 BHHorris y FCostanzi / PNorian LRiani s CGallagher s' DHendiola 00CUMENT NAME:0:\\DIPALO\\DELHISCN\\TRANS1.MEM OFC WMB;DRA WMB:DRA D:DRA D:RES NAME AMalo:ayw SBahadu M JAMurphy ACThadani DATE 7 - B('/97 ~7/)l/97' / - /97- / /97 - 0FFICE RECORD COPY RES FILE CODE: 1 .a ige - e q e-e c g-e-w ,w w -a v-fr-Tg

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8 g + The Commissioners 3 9. Resources and Coordination: Estimated resources to develop this rulemaking are 0.75 FIE. These resources are within existing budget allocations. Copies of this concurrence package have been forwarded to ACRS. ACNW and IG for information. t

Attachment:

Comission Paper w/encls, c: w/ attachment: H. T. Bell, OIG J. Larkins. ACRS & ACNW H. Miller, Region I/0RA L. Reyes, Region II/ ORA A. Beach, Region III/0RA E. W. Hershcoff. Region IV/0RA ~

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EQB: The Commissioners LBOM: L. Joseph CeVan, Executive Director for Operations EUBJECT: FINAL RULE DEllBERATE MISCONDUCT BY UNLICENSED PERSONS PURPOSE: To obtain Commission approval for publication of final amendmy.is to Parts 30,32,40, 50,52,60,61,70,71,72,110 and 150 dealing with deliberate misconduct of unlicensed persons. BACKGROUND: In SECY 96-017, dated January 26,1996, the NRC staff informed the Commission of its plans to extend the Deliberate Misconduct Rule to certificate holders, and to applicants for licenses or certificates of compliance. The Commission, in an SRM dated February 8, 1996, advised the Executive Director for Operations (EDO) that it as, proved SECY 96-017 and had no objactions to the proposed changes to the Deliberate Misconduct Ruie found at 10 CFR 30.10, 40.10, 50.5, 60,11, 61.9b, 7010, 72.12, and 110 7b. In developing this rulemakir:p, the staff extended the scope of the Deliberate Misconduct Rule to also cover applicants for, or holders of, early site permits, standard design certifications, or aombined licenses for r.uclear power plants issues' under 10 CFR Part 52; applicants for, or holders of, certificates of registration issued under Parts 30 and 32; and appl: cants for, or holders of, quality assurance program approvals issued onder Part 71 (including the employees of their contractors, subcontractors snd consultants), in addition, the scope of 10 CFR 150.2 was changed to make the rule applicable to persons conducting activities under reciprocity in a eas of NRC jurisdiction. The proposed rule was submitted to the Commission for approval (SECY-96-184, dated August 20,1996) and published in the Federal Reoister on October 4,1996. The CONTACT: Tony DiPaio, DRA/RES NOTE: TO BE MADE PUBLICLY AVAILABLE (301) 415 6191 WHEN THE FINAL SRM IS MADE AVAILABLE J

The Commissioners 2 comment period ended on December 18,1996. The Commission received 6 comments on the proposed rule, five were in f avor of the proposed amendments and one against. A summary of the comments and NRC's responses are provided in the Statement of Consideration for Final Rule, (Enclosure 1). DISCUSSION: As a result of the staff's review of the public comments, no changes were made to the final rule. Thus, the final rule revises the regulations to extend the scope of the Deliberate Misconduct Rule to six categories of persons. They are: (1) applicants for NRC licenses:- (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (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 registrat!on issued under 10 CFR Parts 30 and 32; (5) applicants for, or bolders of, quality assurance program approvals issued under 10 CFR Part 71; and (6) the employees, contractors, subcontractois and consultants of the first five entegories of persons, so that they may be subject to enforcement action. In addition, the Deliberate Misconduct Rule will be added to 10 CFR Parts 52 and 71 where it currently does not appear. -in addition, the staff does not believe that it is necessary to add the Deliberate Misconduct Rule to 10 CFR Part 54 because licensees applying to renew their operating licenses for nuclear power plants are already subject to this rule as licensees under 10 CFR Part 50. Similarly, the staff does not believe that it is necessary to add the Deliberate Misconduct Rule to 10 CFR Part 55 because applicants for, and holders of, reactor operators' licenses are already subject to this rule as employees of 10 CFR Part 50 licensees. Moreover, t licensed cperators are subject to all applicable Commission requirements (see 10 CFR 55.53 M)) and thus a finding of deliberate misconduct is not required to take enforcement action against a licensed reactor operator. As a result of adoption of this final rule, the NRC's Enforcement Policy needs to be 1 amended. The proposed revisions are described in the enclosed Federal Register notice (Enclosure 2). The revision would be effective concurrently with these amendments to the regulations. They will also be reflected in the next revision to NUREG-1600, " General Statement of Policy and Procedures for NRC Enforcement Action." As these amendments address the terminology used in referring to various unlicensed entities, e.g., contractors, vendors, it is appropriate to modify all existing references to vendors to conform to the Commission's holding in Five Star Products, Inc. and Construction Products Research, Inc., 38 NRC 169, CLI 93 23, that the term " contractor" includes vendor. These changes are reflected in tre Federal Register notice. COORDINATION:- The Office of the General Counsel has no legal objection to this final rule. The Office of - the Chief Financial Officer concura that there will be no resource impacts. The Office of the Chief Information Officer concurs that there will be no information technology or management impacts, s

-. =. - -. r The Commissioners 3 RECOMMENDATION: 1 That the Commission: 1. App.t 'gt publication in the Federal Reaister of the notices of the attached Final . Rulemaking, and revision to the NRC Enforcement Policy. 2. In order to satisfy the requirements of the Regulatory Flexibility Act,5 U.S.C. 605(b), certify that this rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. This certification is included in the enclosed Federal Reg; ster notice. 3. Hgigt: The Final Rulemaking (Enclosure 1) and revision to the NRC Enforcement a. Policy (Enclosure 2) will be published in the Federal Reaister. b, The appropriate Congressional committees will be informed (Enclosure 31. A public announcement will be issued by the Office of Public Aff airs when c. the final rulemaking is filed with the Office of the Federal Register r (Enclosure 4i. d. The Chief Counsel for Advocacy of the Small Business Administration will be informed of. the certification and the reasons, as required by the Regulatory Flexibility Act. t The final rule does not contain any new or amended information collection e. requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.). L. Joseph Callan Executive Director for Operations

Enclosures:

As stated (4) ~

Th3 Commission:rs 3 RILCOMMENDATION: That the Commission: 1. ADDrove pub!ication in the Ee.deral Reaister of the notices of the attached Finai Rulemaking, and revision to the NRC Enforcement Pelicy. 2. In order to satisfy the requirements of the Regulatory Flex;bility Act,5 U.S.C. 1 605(b), certify that this rule, if promulgated, will not have a significant economic impact on a substantial nurr.ber of small entities. This certification is included in the 2 ) enclosed Federal Rogister notice. 3. Note: The Final Rulemaking (E 1 closure 1) and revisiori to the NRC Enforcement a. 'k Policy (Enclosure 2) will be published in the federal Reaistv. E b The appropriate Congressioral committees will be informed (Enclosure 3), s c A public announcement will be issued by the Office of Public Aff airs when 'a the final rulemaking is filed with the Office of ti i Federal Register (Enclosure 4). d. The Chief Counse' ior Advoctcy of the Small Business Administration will be ! i; informed of the certification and the reesons, as required by the Regulatory Flexibility Act, e. The final rule does not contain any new or amended information collection requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.). L. Joseph Callan Executive Directc,r fm Operations Er. closures: As stated (4) RECORD NOTF.: A copy of the final mie was sent to OlG for information on E' *covww c. w soo e ac%. ones wue n r n e== ec .n cac , to om F t. . m.e m na. . c. cm m .s.ca . a

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The Commission:rs 3 f RECOMMENDATION: That the Commission: 1. ADDrove publication in the Fec'eral Reoister of the notices of the attached Final Rulemaking, and revision to the NRC Enforcement Policy. 2. In order to satisfy the requirements of the Regulatory Flexibility Act,5 U.S.C. 605(b), certify that this rule, if promulgated, will not have a significant economic ] impact on a substantial number of small entities. This certification is included in the enclosed Federal Register notice. 3. Ngin: a. The Fin Rulemaking (Enclosure 1) and revision to the NRC Enfoicement Policy (E losure 2) will be rublished in the Federal Peoister, The appropriate Congressional cominittees will be informe der'blosure 3). b. \\ A public announcutment will be issued by the OffiwH$f Public Affairs when c. the final rulemakinkis filed with the Office of tdFederal Register (Enclosure 4). \\ d. The Chief Counsel for dvocacy ofpe Small Business Administration will be informed of the certification andJhe reasons, as required isy the Regulatory 9h. Flexibility Act. '/ The final rule does not corltafrtyny new or an. ended information collection e. ~ requirements subject to tfie Paperwork Reduction Act of 1995 (44 U.S.C. 3501. et seq.). / L. Joseph Callan Executive Difector for Operationsy Enclosure a: As stated (4) RECORD NOTE: A copy of the final rule was sent to OlG for information on tasta eurw. c s soon w, cene wee m a sum rc ca% isa om t. . =, v . e. w. c. cm

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i ENCLOSURE 1 FEDERAL REGISTER NOTICE 9 0 c 4 9

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[7590-01 P]- d NUCLEAR REGULATORY COMMISSION - 10 CFR Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72,110, and 150 RIN: 3150-AF35 I f Deliberate Misconduct by Unlicens.ed Persons 4 AGENCY: Nuclear Regulatory Commission, 4 ACTION Fint.! rule.

SUMMARY

The Nuclear Regulatory Commission (NRC) is amending its regulations to--

+ extend the Deliberate Misconduct Rule to six categories of persons: applicanta for NRC licenses; applicants for, or holders of, certificates of compliance; applicants for,'or holders or, early site permits, standard design certifications, or combined licenses for nuclear + power plants; applicants for, or holders of, certificates of registration; applicants for, or 7 holders of, quality assurance program approvals; and the employees, contractors, subcontractors and consultants of the first five categcries of persons, so that they may be subject to enforceme'nt 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 5 Comm'ission's requirements. - EFFECTIVE DATE: TBD- -h' n

FOR FURTHER INFORMATION CONTACT: Tcny DiPalo, Office of Nuclear Regulatory Research, U.S. Nuclecr Regulatory Commission, Washington, DC 20555-0001, telephone (301) 415-6191, e-mail, a]d@nrc. gov.- SUPPLEMENTARY INFORMATION:

Background

On August 15,1991 (56 FR 40664), the Commission adnpted changes to NRC regulations that established the Deliberate Misconduct Rule found at 10 CFR 30.10, 40.10, 50.5, 60,11, 61.9b, 70.$ 0, 72.12, and 110.7b, which applies to a.ly licensee or any employee of a licensee; an

• any contractor (including a supplier or consultant),

subcontractor, or any einployee of a contractor or subcontractor, of any licensec. In addition,10 CFR 150.2, Scope, makes the rule applicable to persons conducting activities under reciprocity in areas of NRC jurisdiction (see 10 CFR 150.20, Recognition of Agreement State licenses). The Deliberate Misconduct Rule placed licensed r <t 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 materici 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.

2' c

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, carly site permits, standard design certifications, or combined Fcenses for nuclear power plants issued under 10 CFR Part 52; (4) Applicants for, or holders of, certificates of registration issued under Parts 30 and 32; (5) Applicants for, or holders of, quality assurance program approvals issued under Part 71; and (6) The employees, contractors, subcontractors and consultants of the first five categories of persons. To ensure that thsse persons are subject to enforcement action for wrongdcing under the Deliberate Miscondact Rule, the NRC is extending the rule to them. This final - rule will also add the Deliberate Misconduct Rule to 10 CFR Parts 52 and 71 where it currently does not appear. The Commission does not believe that it is necessary to add the Deliberate Misconduct Rule to 10 CFR Part 54 because lic ensees applying to renew their operating licenses for nuclear power plants are already subject to this rule as licensees under 10 CFR .Part 50. Similarly, the Commission does not believe that it is necessary to add the Deliberate Miscanduct Rule to 10 CFR Pat 55 because applicants for, and holders of, reactor operator licenses are already subject to this iule as employees of 10 CFR Part 50 licensees. Moreover, licensed operators are subject to all applicable Commission 3

l = requirements (see 10 CFR 55.53(d)) and thus a finding of deliberate misconduct is not required to take enforcement action against a licensed reactor cparator. Discussion It is important that allinfccmation 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 f alse 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 aprtr to information provided to the Commission by a licensee or an applicant for a license (see 10 CFR 30.9(3),40.9(a), 50.9(a),60.10(a),61.9ata), 70.9(r.), 71.az, 72.11(a), 76.9(a) and 110.7a(a)). Similarly, subsection (b) of each of these sections, which desis 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 application, civil enforcement action against a licensee, or, if appropriate, referral to the Department of Justice for consideration for criminal prosecution. The Deliberate Miscondumt Rule permits the NRC to take individual action, such as issuing an ordar, against an individual who de'iberately provides information that the 4 individual knows to be incomplete or inaccurate. However, when the Deliberate i 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, 6 4

l l and holders of, early site psimits, certified designs and combined licenses, and applicants for, and holders of, quality assurance program approvals. incomplete or inaccurate information has potential safety significance, whether submitted before or after a license, certificate, permit, or approval 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.O., CLI 93-14, 37 NRC 423 (1993). The Orem case involved a consultant to an applicant for a license who provided inaccurate information that was mcluded in the license application and the Commission found that information as to the status of the facility was material to the licensing decision. [d_. at 428. The Commission believes that there may be signifi:: ant safety cor> sequences from the deliberate submission of f also or incomplete information or other deliberate wrongc.cing by an applicant for a license or other unlicensed persons covered by this modification to the Deliberate Misconduct Rule. For example, a quality assurance program that is submitted to the NRC for epproval but is supported by deliberately f alsified 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 deliberate submittal of false information could escape individual NRC enforcement action because the deliberate misconduct may not have put an "NRC licensce" in violstion. To effectively exercise,its authority under the AEA, the Commission needs to prevert or otherwise deter the deliberate submittal of rr.aterially 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 persons who deliberately submit materially incomplete or inaccurate information, 5 l l

i-l L whether such submittalis by or on behalf of an applicant, or by or on behalf of a holder of a license, certificate, permit or approval. The Commission will amend the Deliberate Misconduct Rule each place it appears in 10 CFR Chapter I to make the rule apply :o applicants for NRC licenses; to app icants for, and holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; to applicants for, and holders of, early site permits, certified designs, and combined iicenses 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: 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 as radiography, welllogging, irradiation, and teletherapy, it would also apply to a consultant preparing an application for a certif;ca*.e for a spent fuel cask, or individuals conducting performance tests to support such an application. The amendments to the Deliberate Misconduct Rule will appear in 10 CFR 30.10,40.10, 50.5, 60,11, 61.9b, 70.10, 72.12, and 110.7b. Section 71.11 will be added to incorporate the rule in Part 71 and 5 52.10 will be acced to incorporate the rule in 10 CFR Part 52. In addition,10 CFR 150.2 and 10 CFR 32.1(b) will be revised to incorporate the proposed changes. Also, the scope provisions found in 10 CFR 30.1, 40.2, 50.1, 52.1, 60.1, 61.1(c), 70.2, 71.0, 72.2, and 110.1(a) are being modified to reflect these revisions to the rule. The Commissicn is also making a minor language change by altering the phrase "but for detection" to "if not detected" where the phrare appears in each rule, but intends no substantive change by this revision. Having this enforcement authority available will help the NRC pursue redress in cases of deliberate misconduct by unlicensed persons 6

m I actmg_within the scope of the Commission's jurisdiction and may deter such behavior as well. 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 site permits, standard design certifications, or combined licenses for nuclear power plants issued under 10 CFR Part 52; applicants for, and holders of, certificates of registration issued under Parts 30 and 32; and applicants for, and holders of, quality assurance program approvals issued under Part 71; and to the employees, contractors, subcontractors and consultants of all the above categories of persons, implements the Commission's authority under the AEA to issue regulations and nrders to any person (defined in Section 11s 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, la 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 tne 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, 1 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 reads as follows: 7

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 or any rule, reguiation, 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 gener9ity prohibit the possession, use, receipt, or transfer of nuclear materials or f acilities unless authorized by and in accordance with a license, The amendments are made under the authority of sections 161b and i and the coove-identified licensing and certification provisions in Section 23 7 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 Ccmmission may now be able to exercise its Section 234 authority to impose civil penalt.us 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 proviiions enumerated in Section 234. In cases when the Commission issues an order (other than an order imposir:g a civil penalty) to a person based on deliberate misconduct that causes a licenve, 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 available for violations of such an order. In addition, criminal sanctions under Section 223 of the AEA are available for willful violations of orders and regulations issued under sections 161b end i. Injunctions are also available under Section 232 of the AEA for violations of Commission orders. ~ 8 1

o o Summary of Public Comments On December 18,1996 the comment period for the proposed amendments to the Deliberate Misconduct Rule closed. The NRC received 6 comments on the proposed rule. Five comments f avored the rule and one was aganist. One comment, in addition to addressing the proposed rule, requested other information on the status of NRC 3 enforcement cases against dry cask storage venders which the NRC views to be out de the scope of this proposed rulemaking. Copies of the public comments are available in the .NRC Public Document Room,2120 L Street, NW (Lower Level), Washington, DC. A summary of the comments is provided below. Comment: One commenter representing a utility had concerns that the proposed revisions to the rule did not address preliminary or "for information only" information that may be sont to the NRC staff. This commenter believed that situations coald arise where licensees provide information to the staff to support teleconferences or meetings and where the information is considered to be preliminary and changing over time, in these cases the commenter believed preliminary information should not be construed as complete and the conclusions reached that deliberate misconduct occurred. A second issue raised by this commenter pertained to how potentially erroneous information in a staff Safety Evaluation ILport (SER) could result in conclusions reached by the staff that may not be consisten with the information provide *! 'n the licensees submittal which in the broadest sense could constitute willful misconduct. Resoonse: The NRC completeness and accuracy rules require that a!!information provided ta the Commission shall be compiete and accurate in all material respects 9

(10 CFR 30.9, 40.9, 50.9, etc.). Accordingly, the willful submission of any information, pr11iminary or otherwise, is considered deliberate misconduct and subject to enforcement action if it is known to be incomplete or inaccurate. The submission of a report would not be considered deliberate misconduct if it is made in good f aith and based on the best information available, but is corrected later based on additionalinformation or analysis. The NRC's General Statement of Policy and Procedures for Enforce.nent Actions (NUREG-1600) points out that a citation is not made if an initial submittal was accurate when made but later turns out to be erroneous because of newly discovered information or advances in technology. Comment: One commenter, a private citizen, favored the rule and suggested the NRC finalize the rule as soon as poss'ble. This commentor also had concern that the NRC was aware of the problem in 1993 and the final rule had not been made finalin 1996. Response: When the concern with the scope of the Deliberate MisconJuct Rule occurred in 1993, the NRC conducted a rcview of its existing regulatory framework to determine if the regulations needed amendments. The review was completed in June 1995 and it was envisioned that mis process would encompass only a few minor revisions to the 'agulations. Upon further assessment of the scooe of this rule, it became apparent that a more thorough review was necessary to determine the various categories of persons I to be included. This was a lengthy and detailed process and eventually expanded the proposed amendments to include six new categories of persons in eight separate parts of 10 CFR. Thus, the proposed amendments to the Del'. berate Misconduct Rule were issued for public comment in October 1996. Since rulemaking is a process for which public participation is encouraged, additional time was ni eded for addressing public comments 10 l

o and conducting an Agency-wide management review of the Cnal rule. Also, a further legal review was required in response to a public comment to deterraine that the NRC had authority to include certaia categories of persons in this rulemaking. Considering the above activities, the time for this process does not appear to be excessive. Comment: One commenter, the Nuclear Energy institute (NEli, believes that the NRC is 3xceeding its statutory authority under the Atomic Energy Act of 1954 (the AEA) in promulgating these amendments to the Deliberat: Misconduct Rule because, in the view of NEl, authority over non-licensee persons was not provided by Congress other than in limited circumstances carved out in the AEA as exceptions. In particular, Section 161i(3) of the AEA does not provide jurisdiction over non-licensee persons because it does not contain the operative phrase "any person" and therefore, NEl implies, is confined to licensees. net recognizes that deliberately-pr evided misinformation or other deliberate misconduct could have a very serious effect on public health and safety and thus needs to be deterred. However, in the view of NEl,18 U.S.C. 51001, the general criminal statute applica' ole to the Federal Government and its agencies, provides an adequate deterrent to the wrongdoors NRC seeks to capture in this rulemakiaa. Resoonse: The Commission considered, but rejected, the objection that it did not have jurisdiction over non-licensees at tFe time it issued the originai Deliberate Misconduct Rule. See 56 FR 40664,40666-71 (1991). As the Commission said then: In er' acting Section 161 of the 1954 Act, Congress conferred uniqucly broad and flexible authority on the Commission. Specifically, Congress authouzed the Commission in Section 161 to ' prescribe such * *

• regulations *
• as it may 11

O-y deem necessary to govern any activity authorized pursuant to [the 1954 Act), in order to protect health and minMize danger to life and property.' 56 FR 40666. With respect to the absence of specific provisions setting forth the limits of the NRC's personal jurisdiction, the Commission stated: Where Congress does not include statutory provisions governing i0 oersonam jurisdiction, it is appropriate to look to the scope of subject matter jurisdiction in order to determine the scope of in personam jurisdiction. Since Corigress did not include any specific personal jurisdiction provisions in the 1954 Act, or any limitations on such jurisdiction, the NRC is authorized to assert its personal jurisdiction over persons based on the maximum limits of its subject matter jurisdiction. The agency's personal jurisdiction is established when a person acts within the agency's subject matter jurisdiction. 56 FR 40667. The persons who are being brought within the scope of the acliberate Misconduct Rule in these amendments are all persons who, in some way, engage in activities within NRC's subject matter jurisdiction. Thus, the Commission discerns no statutory prohibition on making these persons subject to the restrictions of the Deliberate Misconduct Rule. t 12

=-. y + _ NEl also centends that the Delibarete Misconduct Rule and these amendments are not, needed because an adequaie deterrent and remedy is'provided by 18 U.S.C. 5 1001. This 7,tatute allows the imposition of criminal penatt!es for persons 'who, inter ala,' knowingly and willfully make f alse statements to an agency of the Federal j Goverament. There are several reasons why this enforcement option is not an adequate substitute for the Deliberate Misconduct Rule. First,18 U S.C; 11001 punishet deliberate f alse statemen.J but does not covist other types of deliberate ~ misconduct captured by the rule. Second, the civil enforcement penalties available to the NRC for violations of its rule, precisely because they are less drastic than 4.- criminal penalties, are more flexible and, thus, are more likely to be used in appropriate cases and thus afford the NRC greater ability to deter and remedy deliberato misconduct. Comment: One commen:cr representing the Nuclear industry indicated one of the rule's standards for enforcement action -- knowingly providing incomplete or inaccurate information which is "in some respect material to the NRC" -- is overly broad. This standard appears to pennit this NRC to take enforcement action whether or not a violation j of NRC regulations has occurred or would have occurred but for detection. This breadth of scope results in the standard not being sufficiently clear to inform the public of the elements of the prohibited action. ' Response: The Commission disagrees with the commenter's assertion that the rule ~ is overly broad. The rule ~ specifies that the persons who are delineated as being subject to. the rule must knowinalv orovide components, materials or other goods and services that . relate to, e.g., a licensee's or 'certificatn holder's activities subject to NRC regulation. 13 I

w ~ 1 Such persons, therefore, know that they s.e acting in an area that relates to activities withir. NRC's 'egulatory jurisdiction. As the Commission said with respect to a similar f comment objecting to the original Deliberate Misconduct Rule, "a person with the requisite = knowledge who deliberately provides f alse or inaccurate information that is material to the NRC presents a health and safety concern within the NRC's regulatory sphere." 56 FR 40670. The f act that no actual violation has occurred, or would have occurred but for detection, has no bearing on whether, from a health and sa,ety standpoint, that person should be involved in nuclear activities. Thus, the commenter is correct that the standard permits the NRC to take enforcement action whether or not a violation has occurred, or would have occurred but for detection, but the Commission does not believe that this fact renders the standard overly broad. Comment: One commenter, the JAl Corporation, felt the scope of the proposed ruie should be broadened to include persons submitting information under 10 CFR Part 21 it ja unfair to penalize persons who knowingly submit incomplete or inaccurate information to licena ses, but not those who submit similar information to the NRC under 10 CFR Part 21. Extending the ru;e would deter deliberate misrepresentations made as a result of employee or contrar :or disgruntlement, labor disputes, and the like. Resoonse: The commenter appears to confuse the purposes of the 10 CFR Part 21 notification requirements with the purposes of the Deliberate Misconduct Rule. Under 10 CFR Part 21, certain types of persons, e.g., individual directors or responsible officers of a corporation, are required to notify the NRC of certain types of information to which they may be privy; e.g., information concerning defects in components which could cause a s ostantial safety hazard. The Deliberate Misconduct Rule does not require the )' 14 i

\\ e submission of any particular type of information; what it requires is that any information material to the NRC, which is submitted by a person subject to the rule, be free of any known incompleteness or inaccuracy. Thus, a contractor to a licensee, who submits information to either the NRC or a liennsee, be;omes subject to the Deliberate Misconduct Rule by virtue of the Rule's relationship and could incur the same penalties as any other person knowingly submitting incomplete er inaccurate information material to the NRC or to a licensee. The regulations do not create a disparity in treatment between persons deliberately submitting misinformation to the NRC and persor's deliberately submitting misinformation to a licensee. Comment: One commenter representing a source production and equipment company f avored the provisions of the proposed rule but, also recommended that the rule De revised to apply to persons who maintain the equipment malfunction records that are required by the Quality Control and Quality Assurance programs which are required under 10 CFR Part 32 for the manufacture and distribution of radiog aphy equipment. This commenter also believes that because these records are not part of the Quality Assurance program itself, they are not submitted to the NRC as part of a registration certificate application. Nevertheless, the accuracy and integrity of these records are essential for the QA/QC program to be effective. The current propcsed revision to the Deliberato Misconduct rule appears to apply only to information that is submitted to the NRC as part of a registration certificate application. The commenter believes the proposed rule should be extended to apply to QA/QC records that must be maintained by the certificate holder after equipment registration has been issued. The commenter felt this extension was 15 1 l

l l important to public health and safety because improved equipment design is one of the efforts needed to reduce the number of radiography equipment malfunctions. Response: The Rule language specifies that registration holders may not: (1) Engege in deliberate misconduct that causes or would have caused, if not detected, a licensee, certificate of registration holder, 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:... The Rule not only pertains to information submitted to the NRC, but also to information / records that the licensee / applicant is required to, or has committed to, maintain. Since maintaining equipment malfunction records is a requirement of the registration certificate holder, these records would be covered by the proposed rule language, in addition, persons who maintain equipment malfunction dca for a certificate s holder also are subject to the Rule including their contractors, subcontractors, or the employees of a contractor, subcontractor, or the certificate holder. Environmental Impact: Categorical Exclusion s 5 The NRC has determined that this final rule relates to enforcement matters and, therefore, f alls within the scope of 10 CFR 51.10(d). Therefo:e, neither an environmental impact statement nor an environmemal assessment has been prepared for this final rule. Paperwork Reduction Act Statement This final rule dees not contain a new or amended information collection requiremant subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.). 16 6 1

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. Public Protection Notification The NRC may not conduct or sponsor, and a person is not required to respond to, a cullection of information unless it displays a currently valid OMB controi number. Compatibility of Agreement State Regulations (1ny-y S This rule is designated a Division 3 matter of compatibih.y with respect to ['0 w Agreament State regulations because it deals with enforcement actions such as the issuance of orders and civil penah!ss to unlicensed persons for deliberate misconduct, in addition to license applicants, these changes expar d arm"ctbility of the rule to include persons such as certificate holders and quality assurance program approval holders. Such actions are addressed individually by Stctes through each State's administrative code. Division-3 regulations are appropriate for Agreement States to adopt, but do not require any degrae of uniformity between the NRC and Agreement State rules. Agreement States are not required to adopt the regulatory approach identified in Division-3 regulations. 17

= i Reg 'atory Analysis The Nuclear Regulatory Commission has statutory authority to issue enforcement act:sns against unlicensed persons whose deliberate misconduct causes a licensee or a certificeta holder or an applicant for a license or certificate to be in violation of the Commission's requirements. In 1991, the NRC oromulgatec' the Deliberate Misconduct Rule (56 FR 40664) 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 7 deliberately providing to the NRC, a licer.see or a contractor information that is incomplete or inaccurate in some respect material to the NRC, However, the Deliberate Misconduct Rule does not specifically apply to (1) a:mM m for NRC licenses, (2) applicants for, and holders of, certificates of compliance iraue. under 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 Part 52, (4) applicants for, and holders of, certificates of registration issued under Parts 30 and 32, (5) applicants for, and holders of, quality assurence program approvals issued under Part 71, and (6) the employees, contractors, subcontractors and consultants of the first five categories of persons. On November 29,1991, the NRC staff issued an Order Revoking License to Dr. Randall C. Orem after the staff learned that information in his license application was false and that the application had been prepared by a consultant who had provided the i false information. Sge Randail C. Orem. D.O., CLl 93-14, 37 NRC 423 (1993). In this case, the staff realized that under the provisions of the existing Deliberate Misconduct c 18-

L ~ Rule, it was unable to take additional enforcement action against Dr. Orem and it was precluded from taking enforcement action against the consultant because the consultant was working for an applicant rather than for a licensee. Subsequently, the Commission realized that other categories of persons within the Commission's jurisdiction had not been explicitly included within the Deliberate Misconduct Rule; e.g., certificate holders under Parts 71 and 72 and holders of early site permits, certified design certifications and combined licenses under Part 52. 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 storage cask that is certified by the NRC on the basis of f alsified 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 f alsified data that mask a significant defect, cend also be a public health and safety threat. The potential for injury is serious, and the NRC knows of no reason why the Deliberate Misconduct Rule should not apply to persons who deliberately submit materially incomplete or inaccurate information, whether that submittalis by or on behalf of an applicant, or by or on behalf of a holder of a license, certificate, permit or approval. The' objective of the rule is to explicitly put those persons encompassed by this modification of the Deliberate Misconduct Rule on notice that 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 19

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 co-imas a violation for which a license may be revoked. The enfo coment actions that may be taken, including orders limiting activities of wrongdoers in the future and civil penalties, will serve as a deterrent to others throughout the industry. The alternatives available to the Commission are to promulgate a modification of the Deliberate Misconduct Rule, as is proposed herein, or do nothing, Given the fact that a case has already occurred where the Commission was precluded from taking appropriate enforcement action against a consultant to an applicant, and the potential harm to the public, the alternative of doing nothing was rejected. The benefits of taking enforcement action are similar to those of taking action against licensed entities in that a civil penah and attendant adverse publicity encourage future compliance, the Notice of Violation calls for a precise response as to corrective action taken, and 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 additionalinvestigations 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. 20 l 1

The rule constitutes th preferred course of action and the cost involved in its promulgation and application is necessary and appropriate.- The foregoing discussion f constitutes the regulatory analysis for this rule.

Regulatory Flexibility Certification - 1 In accordance with the Regulatory Flexibility Act of 1980,5 U.S.Ci 605(b), the Commission certifies that this final rule, if adopted, will not have a significant economic timpact on a substantial number of small entities. The final rule would put: (1) applicants- 'for NRC licenses; (2) appl; cants for, and holders of, certificates of compliance issued under 10 CFR Parts 71 and 72 including those for dr" cask storage; (3) applicants for, and holders of, early site permits, standard design certifications, or combined licenses issued i under 10 CFR Part 52; (4) applicants for, and holders of, certificates of registration issued urider Parts 30 and 32; (5) applicants for, and holders ofi quality assurance program ' approvals issued under 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, they are subject to civil enforcement action if ~ they deliberately cause a licensee, certificate holder, or an applicant for a license or certificate to be in violation of NRC tequirements. The final rule, by itself, does not impose anyl additional obligations on entities that may fall within the definition of "small entities" as set forth 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. 632; or -within the size standards adopted by the NRC on April 11,1995 (60 FR 18344). 21- = - J

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z. Small Business Regulatory Enforcement Act 5 In accordance with the Sma!! Business Reguletory Enforcement Fairness Act of '1996, the NRC has determined that this action is not "a major" rulc and has verified this determination with the Office of Information and Regulatory Affairs, Office of Management and Budget. l Backfit Analysis The NRC has determined that the backfit rule,10 CFR 50.109, does not apply to this final rule and, therefore, a backfit analysis'is not required for this final rule because thece amendments do not involve any provisions that would impose backfits as defined in 10 CFR 50.109(a)(11 Enforcement Policy Concurrently with publication of the Deliberate Misconduct Final Rule, the Office of Enforcement will publish its own FRN that amends NUREG-1600, " General Statement of Policy and Procedures for NRC Enforcement Action," to address enforcement action against the categories of unlicensed persons listed under this T-inal Rule. 22

.. ~ k .:y:o ' List of Subjects 1 m 10 CFR Part 30 Byproduct material, Criminal penalties, Government contracts, Intergovernmental relations,.lsotopes, Nuclear materials, Radiation protection, Reporting and recordkeeping J requirements. ~ _4 "~ 10 CFR Part 32 Byproduct material, Criminal penalties, Nuclear materials, Labeling, Radiation

protection, Reporting and recordkeeping requirernents.

_1.0 CFR Part 40 Criminal penalties, Government contracts, Hazardous materials transportation, g: Nuclear materials, Reporting and recordkeeping requirements, Source material, Uranium.

1 10 CFR Part 50 n. Antitrust, Classified information, Criminal penalties, Fire protection, s,

intergovernmental relations, Nuclear power plants and reactors, Radiation protection, Reactor. siting criteria,' Reporting and recordkeeping requirements, di 10 CFR Part 52' Administrative practice and proce' dure, Antitrust, Backfitting, Comb nad license,

Early site permit, Emergency planning, Fees, inspection, Limited work authorization, Nuclear; power plants and reactors, Probabilistic risk assessment, Prototype, Reactor siting v

t i i i I .p 23' "i o y-L w' ) 2N r i ^

7 p.s y ' r M- - criteria, Redress of site, Reporting and recordkeeping requirements, St-dar'd design, Standard design certification. s 1 k c.10 CFR Part 60-- .r iCriminal 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 4 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, Hazardous materials transportation, Nuclear materials, Packaging _and containers, Reporting and recordkeeping requirements. A .'10 CFR Part 72 L

Manpower training programs, Nuclear materials, Occupational safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel.

-24 .7 "5 P h e

.f - i c .10 CFR Part 110-i

Administrative practice _ and procedure, Classified information, Crim;nal penalties, Export, Import, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeep;ng _ req'uirements,'_ Scientific equipment.

10 CFR Part 150. Criminal penalties, Hazardous materials transportation, Intergovernmental relations,. ' Nuclear materials, Reporting and recordkeeping recuirements, Security measures, Source i material, Special nuclear material. 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 adopting the following amendments to 10 CFR Parts 30,-32, 40, 50, 52, 60, 61, 70, 71, 72,110, and 150. PART 30 RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF BYPRODUCT MATERIAL

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

AUTHORITV: 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). J J 25 i c g -m

4.... _ -. _ _ _ _.._. t u. Section 30.7 also issued un ter 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).7 Section 3r).34(b) also - -issued 'under soci 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).

2. Section 30.1, Scope is revised to ' read as follows:

l 5 6 30.1 Scope. This part prescribes rules applicable to all persons in the United' States governing d'omestic licensing of byproduct rncerial under the Atomic Energy Act of 1954, as amended (68 Stat. 919), an'd under title ll of the Energy Reorganization Act of 1974 (88 Stat.1242),6nd oxemptions 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,

omponents, 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 6 30.10.

3. Section 30.10 is revised to read as follows:

i 30.10 Deliberate misconduct. 1 .(a) Any licensee, certificate of registration holdor, applicant for a license or 1 certificate of registration, employee of a licensee, certificate of registration holder or applicant; or any contractor (i.ncluding a supplier or consmant), subcontractor, employee - 26 -+ = I w v y.i.e.-.ii m 4 riN

s of a contractor or subcontractor of any licensee or applicant for a license or certificate of registration, who knowingly provides to any licensee, applicant, certificate holder, contractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's, certificate holder's or applicant's activities in this part, may not: (1) Engage in deliberate misconduct that causer or would have caused, if not detected, a licensee, certificate of registration holder, 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) DeliLerately submit to the NRC, a licensee, certificate of registration holder, an applicant, or a licensee's, certificate holder's or applicant's, contractor or subcontractor, information that the person submitting the information knows to be incomplete or inaccuratu 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: (1) Would cause a licensee, certificate of registration holder 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, certificate of registration holder, applicant, contractor, or subcontractor, 27

~ _ _ - _ _ _ ~.. _.. l f.1, ' * [ i 'PART 32--SPECIFIC DOMESTIC LICENSES TO MANUFACTURE OR TRANSFER - CERTAIN ITEMS CONTAINING BYPRODUCT MATERIAL' 4

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

P' -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).

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

i 32.1 Puroose and scope. (a).......... (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 OF SOURCE MATERIAL

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

AUTHORITY: Secs. 62, 63, 64, 65, 81,161,182,183,186, 68 Stat. 932, 933, i - 935,948,953,954,955, as amended, secs.11e(2), 83, 84, Pub. L'. 95-604, 92 Stat. ~ 3033, as amended,' 3039, aec. 234,83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), L2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 4 . 28 E e-s. w e, ,,=w. ,m,r ---i - -- - -, .e-..

c. 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)l 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 un' der 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, Scope is revised to read as follows:

6 40.2 Scoce,. Except as provided in 6 6 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 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 40.10.

8. Sect on 4C.10 is revised to read as follows:

i . 6 40.10 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 or ~ L 29

A 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 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. PART 50-DOMESTIC LICENSING OF PROCUCTION AND UTILIZATION FACILITIES

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

AUTHORITY: Secs. 102,103,104,105,161,182,183,186,189, 68 Stat. 936, 937,938,948,953,954,955,956, as amended, sec. 234,83 Stat.1244, n amended 30

.o ( 12 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239, 2282); secs. 201, 1244,12' 6 (42 U.S.C. 5841, 5842,- 4 as amended, 202, 206,88 Stat.1242, as amended, 5846), i 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). Section 50.10 also issued under secs. 101,185, 6S St t. 936, 955, as amended (42 U.S.C. 2131,2235); o sec.102, Pub. L. 91 190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(dd), and 50.103 also issued unc'er sec.108,68 Stat. 939, os amended (42 U.S.C. 2138); Sections 50.23, 50.35, 50.55, and 50.56 also issued under sec.185, 68 Stat. 955 (42 U.S.C. 2235). Sections 50.33a, 50.55a and Appendix Q also issued under sec.102, Pub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued under sec. 204, 88 Stat.1245 (42 U.S.C. 5844). Sections 50.58, 50.91, and 50.92 also issued under Pub. L, 97-415, 96 Stat. 2073 (42 U.S.C. 2239). Section 50.78 also issued under sec.122,68 Stat. 939 (42 U.S.C. 2152). Sections 50.80- 50.81 also issued under sec.184,68 Stat. 954, as amended (42 U.S.C. 2234). Appendix F also issued under sec.187,68 Stat. 955 (42 U.S.C 2237).

10. Section 50.1, Basis, purpose, and procedures applicable is revised to read as follows:

f 9 50.1 Basis. ouroose. and procedures anoticable. The 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 ll of the -Energy Reorganization Act of 1974 (88 Stat.1242), to provide for the licensing of 31

c 4 production and utilization facilities. This part also gives notice to all persons who knowingly provide to any licensce, 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 thev may be individually subject to NRC enforcement - action for violation of 6 50.5. 11, Section 50.5 is revised to read as follows: 6 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 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 be subject to enforcement action in accordance with the procedures in 10 CFR Part 2, subpart B. 32

g. 4 (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 52--EARLY SITE PERMITS: STANDARD DESIGN CERTIFICATIONS: ' AND COMBINED LICENSES FOR NUCLEAR POWER PLANTS

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. 234,83 Stat.1244, as amended (42 U.S.C. 2133, 2201,2232,2233,2236,2239, 2282); secs 201,202,206,88 Stat. 242,1244, 1246, as amended (42 U.S.C. 5841, 5842, 5846).

13. - Section 52.1, Scope is revised to read as follow 1:

fa 52.1 Scoog. This part governs the issuance of early site permits, standard design certifications, ~ and combined licenses for nuclear power f acilities licensed under Section.103 or 104b of the Atomic Energy-Act of 1954, as amended (68 Stat. 919), and Title 11 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 early site permit, standard 33 D 8'- e. w --yy y y .s m.., ~ c.-,5-.c-.--w-e =r y ~ v w .cy

~ r- ' 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 dr applicant for an early site permit, standard design certification, or combined license, subject to this part, that they may be individually subject'to NRC enforcement action for violation of 6 52.10. ~

14. Section 52.9 is added following 5 52.8 and reads as follows:

6 52.9 Deliberate Misconduct. (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 provides to any holder of, or applicant for, an early site permit, standard design cartification, or combined license, or to a contractor, subcontractor or consultant of any of them, equipment, materials, or other goods or services that relate to the activities of a holder oi, or appiicant for, an early site permit, standard design certification or combined license i.) 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, regulation, or order; or any term, condition, or. limitation of any permit, certification or license issued by the Commission; or o (2) Deliberately submit to the NRC, a holder of, or applicant for, an early site F. 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 " "9C. 34 . 't? + s Dr, L,.- .w,- 4 +,

4 ' (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 rr.sans an intentional act or omission that the person knows: (1) Would cause a holder of, or applicant for, an early site peimit, 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 early site permit, certified design or combined license, or a contractor or subcontractor of any of them. PART 60--DISPOSAL OF HIGH-LEVEL RADIOACTIVE WASTES IN GEOLOGIC 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. -2?13, 2228, as amended (42 U.S.C.10134,10141) and Pub. L. 102-486, 9 sec. 2902,106 Stat. 3123 (42 U.S.C. 5851). 35

16.LSection 60.1, Purpose and scope is revised to read as follows: I 60,1 ' Puroose and' Scooe.' i 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, constructe', or operated in accordance with the Nuclear d Weste Policy Act of 1982. This part does not apply to any activity licensed under ano'her: part of this chepter. 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 lic'ensee's or applicant's activities subject to 'this part, that they may be individually subject to NRC enforcement action for violation of '5 60.11.

17. Section 60,11 is revised to read as follows:

6 60,11 Deliberate misconduct. (a) Any licensee, applicant for a license, employee of a licensee or aoplicant; 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, -.4 ~ may not: 4 T 36 a k k y ,4 -m.[

. ~.-, - - /i. (1) Engage in deliberate misconduct that causes or would have causediif not- - detected, a licensee or applicant to be in violation of any rule, regulation, or order; or any i i -; term, condition, or limitation of any license issued by the Comm ss on; or: (2) Deliberately submit to the NRC, a licensee, an applicant, or a licensee's or - applicant's contractor or subcontractor, information that the pe' son submitting tiie 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 thi: section may be subject

to enforcement action in accordance with the procedura> in 10 CFR Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section, delibe' ate misconduct by a pereon means, an _ intentional act or omission that the person knows: (1) Would cause a licensee or applicdnt 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, app'icant, contractor, or subcontractor. PART 61-LICENSING REQUIREMENTS FOR LAND DISPOSAL OF RADIOACTIVE WASTE 4 18.- The authority citation for Part 61 continues to read as follows: ' AUTHORITY: Secs. 53, 57, 62, 63, 65, 81,161,182, -183, 60 Stat. 900, 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. 5842, 5846); secs.10 and--14, Pub. L. 95-601, 92 Stat. 2951 (42 U.S.C. 2021a and 5851) and Pub.LL.102 486, sec 2902,106 Stat. 3123, (42 U.S.C. 5851). 37. Fg p r-7-w+,- f g + ~ 6em -Ai-v e1-- <----*+r a-+-- r r---- r-e- .-ni-m- -w--

Y } [k . n - 19. -_Section 61;1, Purpose and Scope is revised to read as follows: I + 1 !l 6

1.1 Purpose and Scope

.D f C a (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 subject to NRC enforcement action for violation of.- n '.5 6 1. 9 b. - 20. Section 61.9b is revised to read as follows: i 6 61.9b~ Deliberate misconduct. ~(a) Any licensee, applicant for a license, employee of a licensee or applicant; or any. contractor (including a supplier or cons altant), 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 applicalit'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 4 38 + e. F r,,e- ,w-- e e. r,

.. - _.,.- ~..-_.-..-... _.. _ _ _ -M ~ ag e' ' (2) - Deliberately submit to the NRC, a licensee, an aphlicant, or a licensee's or , ' applicant's contractor or subcontractor, information that the person submitting the i - information knows to'be incomplete or inaccurate in sort'e respect material to the NRC.: ,e (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: L(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. 4 - PART 70-DOMESTIC LICENSING OF SPECIAL NUCLEAR MATEF' AL

21. The authority citation for Part 70 cot.tinues 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. 201, as amended, 202, 204,' 206,88 Stat.1242, as amended, 1244,1245,1246 (42 U.S C. 5841, 5842, 584G, 5846). Sections'70.1(c) and 70.20a(b) also issued under secs. 135,141, Pub. L. 97-425, L 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. U _ _- 39 't -++we-3 ee-e., e-w-- 6-++.. m + -, -e.- .-m, = ---- r, e --.m.~,-+ v r-

L. 93 377,88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec.' 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 70.61 also issued under secs 186,187,68 Stat. 955 (42 U.S.C. 2236,2237). Section 70.62 also issued under sec.108, 68 Stat. 939, as amended (42 U.S.C. 2138), t

22.. Section 70.2, Scope is revised to read as follows:

.L7_Q 2 Scoog. Except as providcd in il 70.11 to 70.13, inclusive, the regulations in this part apply to all perrons 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 this part, that they may be individually subject to NRC enforcement action for violation of 5 70.10.

23. Section 70.10 is revised to read as follows:

6 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 or subcontractor of any licensee or applicant for a license, who knowingly provides to any -i 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: 40

(1) Engage in deliberate misconduct that causes or would have' caused, if not ' detected, a licerisee or. applicant to be in violation of any rule, regulation, or ordt.r; or any term, condition, or limitation of any license issued by the Commission; or (2) Deliberataly submit to the NRC, a licensee, an applicant, or a licensne's or applicant's contra: tor 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 8. (c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person means ar. intcntonal 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, conirect, purchase order, or policy of a licensee, applicant, contractor, or subcontractor. PART 71--PACKAGING AND TRANSPORTATION OF RADIOACTIVE MATERIAL

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

AUTHORITY: Secs. 53, 57, 62, 63, 81,161,182,183, 68 Stat. 930, 932, 933, 93E 948,953,954, as amended, sec. 1701,106 Stat. 2951, 2952, 2953 (42 U.S.C. 2073, 2077, 2002, 2093, 2111, 2201, 2232, 2233, 2297f); secs. 201, as amended, 202, 206,88 Stat.1242, as amended, 1244,1246 (42 U.S.C. 5841, 5842, 5846). ' Section 71.97 also Laued under sec. 301, Pub. L. 96-295, 94 Stat. 789-790. 41

J R .r 'h, o . 25L Section 71.0/ Purpose and scope is rev sed to read as ollows:- i e t 71.0 Puroose and Scooe. -

a m

f [ add new subsection (f) to read as follows:) (f)_ This part also gives' notice to all persons who knowingly provide to any_ licensee, certificate holder,-Quality assurance program approval holder, applic' ant for a license,-

certificate, or quality assurance program approval or 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-l 71.11. 26.- Section 71.11 is added to read as follows: 4 4 jij; 6 71.11 Deliberate misconduct. (a) This section applies to any--- 1 a1 (1) Licensee: 1 (2) Certificate holder;; j Y (3) Quality assurance program approval holder;- (4) Applicant for a license, certificate, or quality assurance program approval; 4 y .u

(5) Contractor (including a supplier or consultant) or subcontractor, to any person

identified in paragraphs' (a)(1) through (a)(4) of this section; or

~ s 42 a: o t

( (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 cpplicant's activities subject to this part may not: (1) Engage in deliberate tr'isconduct

• hat causes or would have caused, if not detected, a licensee, certificate holder, quality assurance program approval holder, or any applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license, certificate or approval issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, a certificate holder, quality assurance program approval holder, an applicant for a license certificate or quality assurance program approval, or a licensee's, applicant's, certificate holder's or quality assorance program approval holder's contractor or subcontractor, information that the person submitting the information knows to be !acomplete or inaccurate in some respect material 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 intentior'at act or omission that the person 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 issued by the Commission; or 43

r ,1 e -- i(2) Constitutes a violation of a requir6 ment, procedure, instruction, contract,- + - purchase order, or policy of a licensee, applicant, contractor, or.subcontr6ctor. LPART 72-LICENSING REQUIREMENTS FOR 'iHE INDEPENDENT STORAGE OF SPENT. NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE

27. The authority citatiorifor Part 72 continues to read as fo!!aws:

AUTHORITY: Se::s. 51, 53, 57, 62, 63, 65, 69, 81,161,l'82,183,1.84,186,. 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,-10155,10157,101 61, 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.10162to),10168(c), (d)). Section 72.46 also issued under sec.189,68 Stat. 955 (42 U.S.C. 2239); sec.134, Pub. L. 97-425,' 96 Stat. 2230 (42 U.S.C.- 1'0154). Section 72.96(d) also issued under sec.145(g), Pub. L. 3-100-203,101 Stat.1330-235 (42 U.S.C.10165(g)). Subpart J also issued under secs, 2(2),L 2115), 2(19),117(a),141(h), Pub. L. 97-425,36 Stat. 2202, 2203, 2204, 2222, m 2224 (42 U.S.C.10101,10137(a),10161(h)). Subparts K and L are also issued under - ) .c i-u

.g sec.133, 98 Stat. 2230 (42 U.S.C.,10153) and sec. 218(a), 96 Stat. 2252 (42 U.S.C. g 1 10198). .e

28. Section 72.2, Scope is revised to read as fo!!ows:

) I 1 5 72.2 Scoce.- (f) This part also gives notice to all persons who knowingly provido to any licensee, certificate holder, applicant for a licensta or certificate, contractor, or subcontractor, 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 9 72.12.

29. Section 72.12 is revised to read as follows:

% 72.12 Deliberate misconduct. (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 bncluding 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 liceasee, certificate holder, applicant for a license or certificate, contractor, or subcontractor, any compcnents, materials, or other goods or services that relate to a licensee's, certificate holder's, or applicant's activities subject to s this part, may not: .vp p 45 y a

4 S- '(1) Engage in deliberate misconduct that causes or would have caused;if not .- detected, a licensee, certificate holder or applicant to be in violation of_any rule, regulation,_ W or order; or any term, condition, or limitation of any' license or certificate issued by the Commission; orz (2);. Deliberately submit to the NRC, a "censee, a certificate holder, an applicant for ~ w a lisense or certificate, or a licensee's, applicant's, or certificate 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. (b)'. A person who violates parag.sph (a)(1) or (a)(2) of this section may be subject 4 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: y.

-(1) Would causa s licensee, certificate holder or applicant for a license or certificate to be in violation of any rule, regulation, or order; 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.

PART 110--EXPORT-AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL - 30. The authority *:itetion for Part 110 continues to read as follows:

AUTHORITY: Secs. 51,53,'54,57,63,64,65,81,82,103,104,109,111,126, 127,_128,129',161,181,182',183,:187,'189, 68 Stat. 929, 930, 931, 932,.933, 936, 1937,948,953,-954,955,956, as amended (42 U.S.C. 2071, 2073, 2074, 2077, 2092-7 (F

46 HiB

a =7' to 9-2d95k 2111f 2112, 2133,12134, 2139/ 2139a, 21.41l 2154-2158, 2201; 2231 2233, 2237, 2239)i sec. 201,88 Stat.1242Ias amended (42 U.S.C. 5841; sec Si Pub. Li 101-- t 575,104 Stat 2835 (42 U.S.C.2243). . Sections 110.1(b)(2) and 110.1(b)(3)-also issued under Pub. L. 96 92,' 93 $ tat. - 710_(22 U.S.C. 2403). Section 1'.0.11 also issue'd under sec.122i 68 Stat. 939 (42 U.S.C.-2152) and secs. 54c ary 5', d., 88 Stat. 473,475 (42 U.S.C. 2074).f Section - 110.27 also issued under sec. 309(a), Pub. LJ 99-440. Section-110.50(b)(3) also issued under sec.123,92 Stat.142 (42 U.S.C. 2153). Section 110.51 also issued under sec. 184, 6' Stat. 954, as amended (42 U.S.C. 2234).- Section 110.52 also issued under ~ 8

sec.186,68 Stat. 955 (42 U.S.C. 2236). Sections 110.80 110.113 also issued under 5 U.S.C. 552, 554. Shetions 1'10.130 110.135 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.). 5

31. Section 110.1, Purpose and scope is revised to read as follows:

I 110.1 Puroose and Scoce. (a) The regulations in this part prescribe licencing, 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 l'110;9a. This part also gives notice to all persons who knowingly -provide to any licensee, applicant, contractor, or subcontractor, components, equipment, i mater'ials, or other goods or services,Lthat rt' ate to a licensee's or applicant's activities 47 9 m 1 -ve-. <--r- ..'e www. -- -w4-e w v ~ s

f.

1. ].

a 4 subject to this part, that they may be individually subject to NRC enforcement action for violation of i 110.7b. s. )

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

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 con.nant), subcontractor, employee of a contractor or subcontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applaant, cortractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's or applicant's activities in this part, rany 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, informetion that the person submitting the 'information kr:ows to be incomplete or inaccurate in some respect material to the NRC. (b) A person who violates paiagraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR Parc 2, subpart B. (c) For the purpeses of paragraph (a)(1) of this section, deliberate misconduct by a \\ person means an intentional act or omission that the person knows: (1)iWould 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 Coinmission; or s'y 48

I; +- 3 D; (2)- Constitutes a violation of a requirement, procedure, instruction, contract, purchase ordar, or policy of a licensee, applicant, contractor, or subcontractor, s: PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274 1

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, 150.15 a, 150. 31, 150.32 also issued under secs 11e(2), 81, 68 Stat. 923,935,'as amended, secs. 83, 84, 92 S'.at. 3033, 3039 (42 U.S.C. m - 2014e(2), 2111, 2113, 2114). Section 150.14 also issued under sec. 53,68 Stat. 930, as amended (42 U.S.C. 2073). Sestion 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. 234,03 Stat, 444 (42 U.S.C. 2282). 3

34. Section 150.2 is revised to read as follows:

- 6150.2 Scoce. The regulations in this part apply to all States that have entered into agr sments-with the Commission or the. Atomic Energy-Commission pursuant to subsection 274b of the Act. - This part also 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 49 y.- 'l g

J certificate or quality assurance program approval, contractor, or subcont; actor, 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 subject to NRC enforcement action for violation of El 30.10, 40.10, 70.10 and 71.11. Dated at Rockville, Marylar d, this day of ,1997. For the Nuclear Regulatory Commission. John C. Hoyle, Secretary of the Commission. 50

sa _ +.._.4 mu.,#u-_.*.e_m.m____ 2 a..w. % w .sw u __p. _.t.,-.au..-.-a.w.-am4 .a su. _s ..w-u.s<um....a.- ...m_._,, 4 .t uO e e r k i n 4 f r a l 1 'I I d t ENCLOSURE 2 ENFORCEMENT POLICY STATEMENT 4 e I t b l i h y- ,-s-- 3 ,,,.y -e. -,,-y -m-. m.-

[759001-P] NUCLEAR REGULATORY COMMISSION [NUREG - 1600] Policy and Procedure for Enforcement Actions: Deliberate Misconduct Rule AGENCY: Nuclear Regulatory Commission. ACTION: Policy statement: Amendment 4 SUMHARY: The duclear Regulatory Commission (NRC) is amending its " General Statement of Policy and Procedure for NRC Enforcement Actions" to conform to nodifications to the Deliberate Misconduct Rule. These modifications extend r that Rule to applicants for NRC licenses, applicants for, and holders of, ce. /icates, early site permits, standard design certifications, or combined licenses issued under Part 52, and the employees, contractors, subcontractors, and consultants of those persons. By a separate action published in this issue of the Federal Register, the Commission has issued a final rule amending 2 10 CFR Parts 30, 40, 50, 52, 60. 61. 70. 71. 72. 110. and 150. EFFECTIVE DATE: This action is effective on [30 days after publication in the Federal Register]. T FOR FURTHER INFORMATION CONTACT: James Lieberman, Director. Office of Enforcement. U.S, Nuclear Regulatory Commission. Washington, DC 20555-0001. (301) 415 2741. + n a < -v, v

SUPPLEMENTARY INFORMATION: i f The Commis: ion's " General Statement of Policy and Procedure for NRC Enforcement Actions" (Enforcement Policy or Palicy) was first issued on September 4, 1980. Since that time, the Enforcement Policy has been revised on a number of occasions. On June 30. 1995 (60 FR 34381), the Enforcement Policy was revised in its entirety and was also published as NUREG-1600. The Policy primarily addresses violations by licensees and certain non-licensed - persons, as discussed further in footnote 3 to Section I, Introduction and Purpose, and in Section X: Enforcement Action Against Non-licensees, i The Deliberate Misconduct Rule was adopted in September 1991 and applies i to any licensee or any employee of a licensee; and any contractor (including a supplier or consultant). subcontractor, or any employee of a contractor or subcontractor, or any licensee. The Deliberate Misconduct Rule placed 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 and in some respect material to the NRC. The final rulemaking expands the Deliberate Misconduct Rule, where it appears in 10 CFR Parts 30. 40, 50. 60, 61. 70, 72, and 110. and. adds the Rule - to Parts 52 and 71. This expansion arises out, of a realization that the current Rule does not apply to applicants fo" NRC licenses, applicants for, or i 2 m 7 m%., .-.m ,i -..v. .c

_ ~ _ i holders of, certificates, early sit? permits, standard design certifications, or combined licenses issued under Part 52, and the employees, contractors, subcontractors, and consultants of those persons. The Commission believes that it is equally important for these categories of persons to be subject to enforcemer t action for deliberate wrongdoing, such as the submission of inaccurate or incomplete information. The Comission is making this change to the General Statement of Policy and Procedure for NRC Enforcement Actions to make it consistent with the regulations. The changes include: (1) expansion of footnote 3 in Section I, which discusses the scope of the Policy: (2) deletion of references to vendors and contractors in Section VI.C.5, to avoid possible confusion as a result of a partial listing of those to whom the Rule and Policy apply: and (3) restating the opening sentence in Section X: Enforcement Actions Against Non-licensees, to set out the full scope of the Rule and its application through the Enforcement Policy. The Commission has held that the term " contractor" includes a vendor or supplier that manufactures and offers for sale materials intended for use by NRC licensees and certified to meet the requirements of 10 CFR Part 50, Appendix B. In the Hatter of: Five Star Products. Inc. and Construction Products Research. Inc., 38 NRC 169. CL1-93-23 (October 21, 1993). In light of that holding, the remaining references to vendors throughout the Enforcement Policy are also being modified to refer to contractors as the inclusive term. These changes are being made in Sections V, VI.B.1, VI.C. VI.0, Vill, X -Table -1A, and Supplements I.C. and Vil,C. 3

Paperwork Reduction Act f t l' .a; policy statement does not contain a new or amended information l r collection requirement subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). Existing requirements were approved by the Office of l Management and Budget approval number 3150-0136. The approved information collection requirements contained in this policy statement appear in Section l Vll.C. Public Protection Notification l 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 1 OMB control number. Small Business Regulatory Enforcement Fairness Act In accordance with the Small Business Regulatory Enforcement Fairness Act of 1996, the NRC has determined that this action is not "a major" rule and has verified this determination with the Office of Information and Regulatory Affairs, Office of Management and Budget. Accordingly Sections 1. V. VI B., C., and E., VIII, X, and Supplements I and VII of the NRC Enforcement Policy are amended to read as follows: 4 .,-.~a.-.- ~ -, -

,e GENERAL STATEMENT OF POLICY AND l'ROCEDURE FOR NRC ENFORCEMENT ACTIONS

1. INTRODUCTION AND PURPOSE The purpose of the NRC enforcement program is to support the NRC's overall safety mission in protecting the public and the environment.

Consistent with that purpose, enforcement action should be used: As a deterrent to emphasize the importance of compliance with e requirements, and To encourage prompt identification and prompt comprehensive e correction of violations. Consistent with the purpose of this program, prompt and vigorous 2 enforcement action will be taken when dealing with licensees, contractors and their employees, who do not achieve the necessary meticulous attention to detail and the high standard of compliance which the NRC expects.3 Each 2 The term " contractor" as used in this policy includes vendors who supply products or services to be used in an NRC-licensed facility or activity. 3 This policy primarily addresses the activities of NRC licensees and a)plicants for NRC licenses. Therefore, the term licensee is used t'iroughout the policy. However, in those cases where the NRC determines that it is appropriate to take enforcement action against a non-licensee or individual, the guidance in this policy will be used, as applicable. These non-licensees include contractors and subcontractors, holders of, or applicants for. NRC approvals, e.g.. certificates of compliance, early site permits. or standard design certificates. Specific guidance regarding enforcement action against individuals and non-licensees is addressed in Sections VIII and X. respectively. 5

enforcement action is dependent on the circumstances of the case and requires the exercise of discretion after consideration of these policies and procedures, in no case, however, will licensees who cannot achieve and maintain adequate levels of protection be permitted to conduct licensed activities. V. PREDECISIONAL ENFORCEMENT CONFERENCES Whenever the NRC has learned of the existence of a potential violation for which escalated enforcement action appears to be warranted, or recurring nonconformance on the part of a contractor, the NRC may provide an opportunity for a predecisional enforcement conference with the licensee, contractor, or other person before taking enforcement action. The purpose of the conference is to obtain information that will assist the NRC in determining the appropriate enforcement action, such as: (1) a common understanding of facts, root causes and missed opportunities associated with the apparent violations. (2) a common understanding of corrective actions taken or planned, and (3) a common understanding of the significance of issues and the need for lasting comprehensive corrective action. During the predecisional enforcement conference, the licensee, contractor, or other persons will be given an opportunity to provide 6

B information consistent with the purpose of the conference, including an explanation to the NRC of the immediate corrective actions (if any) that were taken following identification of the potential violation or nonconformance and the long-term comprehensive actions that were taken or will be taken to prevent recurrence. Licensees, contractors. or other persons will be told when a meeting is a predecisional enforcement conference. VI. ENFORCEMENT ACTIONS VI. B. 1. Base Civil Penalty The NRC imposes different levels of penalties for different severity level violations and different classes of licensees, contractors, and other persons. Tables 1A and 18 show the base civil penalties for various reactor, fuel cycle, and materials programs. (Civil penalties issued to individuals are determined on a case-by-case basis.) The structure of these tables gcnerally takes into account the gravity of the violation as a primary consideration and the ability to pay as a secondary consideration. Generally, operations involving greater nuclear material inventories and greater potential consequences to the public and licensee employees receive higher civil penalties. Regarding the secondary factor of ability of various classes of licensees to pay the civil penalties it is not the NRC's intention that 7

~ the economic impact of a civil penalty be so severe that it pucs a licensee out of business (orders, rather than civil penalties, are used when the intent l 1s to suspend or terminate licensed activities) or adversely affects a licensee's ability to safely conduct licensed activities. The deterrent effect of civil penalties is best served when the amounts of the penalties 'ske into account a licensee's ability to pay. In determining the amount of civil penalties for licensees for whom the tables do not reflect the ability to pay or the gravity of the violation the NRC will consider as necessary an increase or decrease on a case by case Dasis. Normally. if a licensee can demonstrate financial hardship the NRC will consider payments over time, r including interest rather than reducing the amount of the civil penalty. However, where a licensee claims financial hat dship, the licensee will normally be required to address why it has sufficient resources to safely [ conduct -licensed activities and pay license and inspection fees. TABLE 1A BASE CIVIL PENALTIES a. Power reactors and gaseous diffusion plants...... 5110.000 b. Fuel fabricators. industrial processors, and inde)endent spent fuel and monitored retrievaale storage installations............... 527.500~ c. Test reactors, mills and uranium conversion facilities, contractors, waste disposal licensees, and industrial radiographers...................... 511.000 d. Researchreactors,academig, medical, or other material licensee......... ..........$5.500 Ihis applies to nonprofit institutions not otherwise categorized in i this table mobile nuclear services, nuclear pharmacies, and physician " offices. 8

'O O-o i f C. -Orders t 5. Orders to unlicensed persons, and employees of any of them, are used when the NRC has identified deliberate misconduct that may cause a licensee to be in violation of an NRC requirement or where incomplete or 1 inaccurate information is deliberately submitted or where the NRC loses its reasonable assurance that the licensee will meet NRC requirements with that person involved in licensed activities. D. Related Adninistrative Actions In addition to the formal enforcement actions. Notices of Violation, civil penalties, and orders, the NRC also uses administrative actions, such as Notices of Deviation, Notices of Nonconformance. Confirmatory Action Letters. -Letters of Reprimand, and Demands for Information to supplement its enforcement program. The NRC expects licensees and contractors to adhere to any obligations and commitments resulting from these actions and will not i hesitate to issue appropriate orders to ensure that these obligations and comnitments 'are met. 9 -

1. ' Notices of Deviation are written notices describing a licensee's failure to satisfy a commitment where the comitment involved has not been made a legally binding requirement, A Notice of Deviation requests a licensee to provide a written explanation or statement describing corrective steps taken (or planned). the results achieved, and the date when corrective action will be completed.

2, Notices of Nonconformance are written notices describing contractors' failures to meet commitments which have not been made legally binding requirements by NRC. An example is a commitment made in a procurement contract with a licensee as required by 10 CFR Part 50, Appendix 6. Notices of Nonconformances request non licensees to provide written explanations or statements describing corrective steps (taken or planned). the results achieved, the dates when corrective actions will be completed and measures taken to preclude recurrence. 3. Confirmatory Action Letters are letters confirming a licensee's or contractor's agreement to take certain actions to remove significant concerns about health and safety, safeguards, or the environment. VIII. ENFORCEMENT ACTIONS INVOLVING INDIVIDUALS 10

Listed below are examples of situations which could result in enforcement actions involving individuals, itsensed or unlicensed. If the actions described in these examples are taken by a licensed operator or taken deliberately by an unlicensed individual, enforcement action may be taken directly against the individual. However, violations involving willful conduct not amounting to deliberate action by an unlicensed individual in these situations may result in enforcement action against a licensee that may imp-a Mdividual. The situations include, but'are not limited to. violations that involve: Willfully causing a licensee to be in violation of NRC requirements, e Willfully taking action that would have caused a licensee to be in e violation of NRC requirements but the action did not do so because it was detected and corrective action was taken. Recognizing a violation of procedural requirements and willfully not e taking corrective action, Willfully defeating alarms which have safety significance. e Unauthorized abandoning of reactor controls.

• Dereliction of duty, Falsifying records required by NRC regulations or by the facility e

l license. Willfully providing, or causing a licensee to provide, an NRC e inspector or investigator with inaccurate or incomplete information on a matter material to the NRC. 11

Willfully withholding safety significant information rather than making such information known to appropriate supervisory or technical personnel in the licensee's organ. Nation. Submitting false information and as a result gaining unescorted access to a nuclear power plant. Willfully providing false data to a licensee by a contractor or other person who provide 3 test or other services, when the data affects the licensee's compliance with 10 CFR part 50, appendix 8. or other regulatory requirement. ' Willfully providing false certification that components meet the requirements of their intended use. such as ASME Code. Willfully supplying. by contractors of equipment for transportation of radioactive material. casks that do not comply with their certificates of compliance. X. ENFORCEMENT ACTION AGAINST NON LICENSEES The Commission's enforcement policy is also applicable to non-licensees. including contractors and subcontractors, holders of NRC approvals, e.g.. certificates of compliance, early site permits, standard design certificates, or applicants for any of them. and to employc as of any of the foregoing, wha knowingly provide components, equipment, or 'er goods or services that relate to a licensee's activities subject to RC regulation. The prohibitions and sanctions for any of these persons who engage in deliberate misconduct or 12

l submission of incomplete or inaccurate information are provided in the rule on deliberate misconduct, e.g., 10 CFR 30.10 and 50.5. i Contractors who supply products or services provided for use in nuclear activities are subject to certain requirements designed to ensure that the f products or services supplied that could affect safety are of high quality. Through procurenent contracts with reactor licensees, suppliers may be required to have quality assurance programs-that meet applicable requirements including 10 CFR Part 50. Appendix B, and 10 CFR Part 71. Subpart H. Contractors supplying products or services to reactor, materials, and 10 CFR Part 71 licensees are subject to the requirements of 10 CFR Part 21 regarding reonrting of defects in basic components. / When inspections determine that violations of NRC requirements have occurred or that contractors have failed to fulfill contractual commitments (e.g., 10 CFR Part 50, Appendix B) that could adversely affect the quality of a safety significant product or service, enforcement action will be taken. Notices of Violation and civil penalties will be used, as appropriate, for licensee failures to ensure that their contractors have programs that meet applicable requirements. Notices of Violation will be issued for contractors who violate 10 CFR Part 21. Civil penalties will be imposed against i i h individual directors or responsible officers of a contractor organ zat on w o knowingly and consciously fail to provide the notice required by 10 CFR 1 21.21(b)(1). Notices of Nonconformance will be used for contractors who fail -to meet commitments related to NRC activities. 13 .. _,.. _. ~. -. ~. ~..

SUPPLEMENT I REACTOR OPERATIONS C.6. A licensee failure to conduct adequate oversight of contractors resulting in the use of products or services that are of defective or indeterminate quality and that have safety significance: SUPPLEMENT VII MISCELLANEOUS MATTERS C.8. A failure to assure, as required. that contractors have an effective fitness-for-duty program: Dated at Rockville Maryland, this day of 1997. For The Nuclear Regulatory Commission, John C. Hoyle. Secretary of the Commission. 14

-e J ..4 m.. _+ 4 a _44_ & = A.4W.4__.4 E L--s.__a. EAs. ___m a._ s. -..4-%_s, 4h4_-.__--.Aima.++__ -.mu..naA.-- -p_mw Aa.,- m-.e .a i e O ( r 4 .l 'l I I ENCLOSURE 3 CONGRESSIONAL LETTERS I l r e + + .-.v-,,.,%.-v,---- - --+,-.-. . - ~ - r--- m,- c -.- - - -,, --,

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4 UNITED STATES ' * * [ j NUCLEAR REGULATORY COMMISSION wAsHWGioN, 0.0. seeeHoot \\.....[* The Honorable James M. Inhofe, Chairman Subcommittee on Clean Air, Wetlands, Private Property and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

Enclosed for the information of the subcornmittee is a copy of a notice of a final rule dealing with deliberate misconduct to be published in the EttdelDJ Reaister. The Nuclear Regulatory Commission (NRC) is amending its regulations to expand the Dcliberate Misconduct Rule where it appears in 10 CFR Parts 30, 40, 50, 60, 61, 70, 72, and i 10 and adds the rule to Parts 32,52, and 71. These modifications extend the rule to: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance; (3) applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants; (4) applicants for, or holders of, certificates of registration; (5) applicants for, or holders of, quality assurance program approvals; and (6) the employees, contractors, subcontractors and consultants of the first five categories of persons, so that they may be subject to enforcement action. In addition, the scope of 10 CFR 150.2 was changed to make the rule applicable to persons conducting activities under reciprocity in areas of NRC jurisdiction. The De!iberate Misconduct Rule was originally issued in 1991 (56 FR 40604). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate 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. The NRC believes that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. In addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. The Commission is issuing the final ruls for publication in the Federal Reaister. s Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice :

cc: Senator Bob Graham '

The Honorsble James M. Inhofe, Chairm:n Subcommittee on Clern Ali, W ti:nds, Privata ,-

• Property and Nucle:r S:f;ty Committee on Environment and Public Works l

i United States Senate Washington, DC 20510

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a final rule dealing with deliberate miscontfuct to be put'lished in the Eprielal Reaister. The Nuclear Regulatory Commission !NRC) is amending its reguletiores to expand the Deliberate Misconduct Rule where it appears in 10 CFR Parts 30, 40, 50, 60, 61, 70, 72, and 110 and adds the rule to Parts 32,52, and 71. These modifications extend the rule to: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance; (3) applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants; (4) applicants for, or holders of, certificates of r3gistration; (5) applicants for, or holders of, quality assurance program approvals; and -(6) the employees, contractors, subcontractors and consultants of the first five categories of persons, so that they may be subject to enforcement action. In addition, the scope of 10 CFR 150.2 was changed to make the rule applicable to persons conducting activities under reciprocity in areas of NRC jurisdiction. The Deliberate Misconduct Rule was originally issued in 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate 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. The NRC believes that because there rnay be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. In addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. The Commission is issuing the final rule for publication in the Eederal Reaister. Sincerely, 4 Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice . cc: Senator Bob Graham See next page for Distribution DOCUMENT NAME:0:\\DIPALO\\DELMISCNtDMC CONG.OR2 'Sce previous concurrences OFC: WMB:DRA WMB:DRA D:DRA D:RES OCA NAME: ADiPalo:' SBahadur' JAMurphy' MRKnapp DRathbun DATE:

06/20/97 07/31/97 08/05/97

//97 //96 .l COPY:. Yes - No-Yes - No Yes No Yes No Yes - No OFFICIAL RECORD COPY (RES File Code) RES

. ~.. 4 i-The Honorable James M. Inhofe 2 2 i

j -

DISTRIBUTION: WMB Sub t/f NJensen, OGC ' RDBtif SBagge.tt, NMSS . Central f/c - MLeser, ADM GCant, OE .L.Rieni : BHemmer OGC s L OdA'6/f I .y. j :'. a< .l-3

sp%qk UNITED STATES y, [} f NUCLEAR REGULATORY COMMISSION s* WASHINGTON, D.C. 30006 4 001 s The Honorable Dan Schaefer, Chairman Subcommittee on Energy and Power Conimittee on Commerce United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a final rule dealing with deliberate misconduct to be published in the Enderal bolster. The Nuclear Regulatory Commission (NRC) is amending its regulations to expand the Deliberate 1 Misconduct Rule where it appears in 10 CFR Parts 30, 40, 50, 60, 01, 70, 72, and 110 -and adds the rule to Parts 32,52, and 71. These modifications extend the rule to: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance; (3) applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants; (4) applicants for, or holders of, certificates of registration; (5) applicants for, or holders of, quality assurance program approvals; and (6) the employees, contractora, subcontractors and consultants of the first five categories of persons, so that they may be subject to enforcement action, in addition, the scope of 10 CFR 150.2 was changed to make the rule applicable to persons conducting activities under reciprocity in areas of NRC jurisdiction. The Deliberate Misconduct Rule was originally issued in 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate 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. The NRC believes that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. In addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. The Commission is issuing the final rule for publication in the Eederal Renister. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Feoeral Register Notice cc: Representative Ralph Hall F

The Honorable Dan Schaefer, Chairman , Subcommittee on Energy cnd Pow:r Committee en Comm:rc3 United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a final rule dealing with deliberate misconduct to be published in the Edgtgj Reaister. The Nuclear Regulatory Commission (NRC) is amending its regulations to expand the Deliberate Misconduct Rule where it appears in 10 CFR Parts 30,40,50,60,61,70,72, and 110 and adds the rule to Parts 32,52, and 71. These modifications extend the rule to: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance; (3) applicants for, or holders of, early site permits, standard design certifications, or - comblned licenses for nuclear power plants; (4) applicants for, or holders of, certificates of i registration; (5) applicants for, or holders of, quality assurance program approvals; and (6) the employees, contractors, subcontractors and consultants of the first five categories - of persons, so that they raay be subject to enforcement action. In addition, the scope of 10 CFR 150.2 was changed to make the rule applicable to persons conducting activities under reciprocity in areas of NRC jurisdiction. The Deliberate Misconduct Rule was originally issued in 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate conduct that causes or would have caused, if not detected, a licensee, certificate holdar, or applicant to j be in violation of any of the Commission's requirements. The NRC believes that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. In addition, the NRC's Enforcement Policy is modified concurrently to reflect these changos to the regulations. The Commission is issuing the final rule for publication in the Federal Reaister. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice cc: Representative Ralph Hall See next page for Distribution DOCUMENT NAME:0:\\DIPALO\\DELMISCN\\DMC CONG.OR2 'See previous concurrences OFC:' WMB:DRA - WMB:DRA D:DRA - D:RES OCA NAME: ADiPalo:' SBahadur" - JAMurphy' MRKnapp DRathbun DATE: 06/20/97 07/31/97 08/05/97 //97 / /96 COPY: - Yes No - Yes No Yes - No Yes - No.- Yes No OFFICIAL RECORD COPY t-(RES File Codel RES t ~~

') as; g Tho' Honorable Dan Schaefer 2 r a DlSTRIBUTION: WMe Sub r/f. NJensen, OGC ~ WMB r/f-E < SBaggett, NMSS Central f/c - MLesar, ADM GCant, OE LRiani BReamer, OGC OCA r/f i k + 1 \\ t T / l ' ll i j e

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] NUCLEAR REGULATORY COMMIS810N WASHINGTON, D.c. m maM Mr. Robert P. Murphy General Counsel . General Accounting Office Room 7175 441 'G" Street, N.W. Washington, DC 20548

Dear Mr. Murphy:

Pursuant to Subtitle E of the S Business Regulatory Enforcement Fairness Act of 1996, < 5 U.S.C. 801, the Nuclear FAgt.c cory Commission (NRC) is submitting a final rule to amend its regulations to extond the Deliberate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, and holders of, certificates of compliance; applicants for, or holders of, early site permits, standard design certifications, or combined licensas 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 delit,erate misconduct. Deliberate miscenduct 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. The NRC believes that because there may be significant safety consequences from the intentional submittal of incomplete or inaccurate information or other deliberate wrongdoing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding deliberate misconduct, in addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. We have determined that this rule is not a " major rule" as defined in 5 U.S.C. 804(2). We have confirmed this determination with the Office of Management and Buoget. Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule. A Reguletory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those provided by the Deliberate Misconduct Rule, which became effective in September 16,1991. Sincerely, Dennis K. Rathbun, Director

Enclosure:

- Final Rule o ,V

Mr. Robert P. Murphy General Counsel ' General Accounting Offico e Room 7175 441 "G" Street, N.W. Washington, DC 20548

Dear Mr. Murphy:

Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend its regulations to extend the Deliberate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, and holders of, certificates of compliance; applicants for, or holders of, early site permitr standard design certifications, or combined licenses for nuclear power plants; applicants 'r, 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, certificnte holder, or applicant to be in violation of any of the Commission's requirements. The IRC believes that because there may be significant safety consequences from the intentional submittal of incomplete or inaccurate information or other deliberate wrongdoing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding + deliberate misconduct. In addition, tl e NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. We have determined that this rule is not a " major rule" as defined in 5 U.S.C. 804(2). We have confirmed this determination with the Office of Management and Budget. Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule. A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those provided by the Deliberate Misconduct Rule, which became effective in September 16,1991. Sincerely, Dennis K. Rathbun, Directoi Office of Congressional Affairs

Enclosure:

Final Rule DISTRIBUTION: Cenital f/c LRieni WMB r/f PNorlan DOCUMENT NAME:0:\\DIPALO\\DELMISCN\\DMC LTR.OR2 'See previous concurrences ofb / onts oocA oec wun ona' wusonA. b MRK,we oRWun NAME ADifW SBMs $((in7 i 73 7 i is7 oars osewer oram v oHICIAL RECOMO COPY nos eu cooe:

f UNITED STATES y j NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 30eeH001 F The Honorable Newt Gingrich Speaker of the United States House of Represnetatives Washington, DC 20515

Dear Mr. Gingrich:

Pursuant to Subtitle E of the Smrall Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC).., submitting a final rule to amend its regulations to extend the Deliberate Misconduct.9ule to six categories of persons: applicants for NRC licenses; applicants for, and 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 assuranco 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 .1 violation of any of the Commission's requirernents. The NRC believes that because thert, may be significant safety consequences from the intentional submittal of incomplete or inaccurate information or other deliberate wrongdoing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding deliberate misconduct. In addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. We have determined that this rule is not a "rnajor rule" as defined in 5 U.S.C. 804(2). We have confirmed this determination with the Office of Management and Budget. Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publicetion. The Regulatory Flexibility Certification is included in the final rule. A Regulatory Analysis has been prepared for this final ruie and is included in the Federal Register notice, however the benefits derived from the changes to the current ryulation are similar to those provided by the Deliberate Misconduct Rule, which became effective in September 16,1991. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Final Rule

y The Honorable Newt Gingrich Speaker cf the United States o House of Represnetatives -Washington, DC 20515

Dear Mr. Glagrich:

Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 t'.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend its regulations to extend the Deliborate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, and 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 <:stegories of l ] persons, so that they may be subject to enforcement action for deliberate misconduct, Deliberate misconduct may involve providing information that is known to be incornplete 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 .violati, ' of any of the Commission's requirements. The NRC believes that because there may be significant safety consequences from the intentional submittal of incomplete or inaccurate information or other deliberate wrongioing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding deliberate misconduct. In eddition, the NRC's Enforcement Policy is modified concurrently to reflect these changet to the regulations. We have determined thet this rule is not a " major rule" as defined in 5 U.S.C. 804(2). We j have confirmed this determination with the Office of Management and Budget. Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule. A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those provided by the Deliberate Misconduct Rule, which became effective in September.6,1991. Sincerely, Dennis K. Rathbun, Director Office of Congressional Aff airs

Enclosure:

Final Rule DISTRIBUTION: Central f/c LRiani W M 8 r/f PNorlan ] DOCUMENT NAME:0:\\DIPALO\\DELMISCN\\DMC LTR.OR2 "See previous concurrences 0FC Whs8DRA* ^ WMG DRA* O Ddh j D RfS D OC A NAW ADeslo- $8aheckr MRK,mpp DRatt1 bun DAff E'204 7 ~ 07/31/97 W/97 / (97 f /97 !v OFFICAL MCOND COPY MS FILE C006:

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] NUCLEAR hdGULATORY COMMISSION WASHINGTON. D.c. 30seHe01 'h..... (. The Honorable Al Gore President of the United States Senate Washington, D':: 20510

Dear Mr. Gore:

Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend its regulations to extend the Deliberate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, and holdert 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,I? not detected, a licensee, certificate holder, or applicant to be in violation of any of the Commission's requirements. The NRC believes that because there may be significant safety consequences from the intentional submittal of incomplete or inaccurate information or other deliberate wrc'1gdoing by such persons, these persons should'be subject to enforcement action under the Commission's existing rules regarding deliberate misconduct. In addition, the NRC's F41forcement Policy is modified concurrently to reflect these changes to the regulations. We have determined that this rule is not a " major rule" as defined in 5 U.S.C. 804(2). We have confirmed this dete - 1ation with the Office of Management and Budget. Enclosed is a copy of the fint.1 rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule. A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those provided by the Deliberate Misconduct Rule, which became effective in September 16,1991, t Sincerely, - Dennis K. Rathbun, Director Offica of Congressional Affairs

Enclosure:

Final Rule

The H:norabl2 Al Core O Prcsident cf tbs Unit:d States Senate Washington, DC 20510

Dear Mr. Gore:

Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C.- 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend its regulations to extend the Deliberate Misconduct Fule to six categories of persons: applicants for NRC licenses; applicants for, and buders of, certificates of l compliance; applicants for, or holders of, early site permics, standard design certifications, or combined licenses for nuclear power plants; applicants for, or holders of, certificatus of registration; applicants for, or holders of, qualhy assurance program approve!s; and the employees, contractors, subcontractors, and consultants of the first five categories of persons, *:0 that they may be subject to enforcement action for deliberate misconduct. Deliberate misconduct may involve providir.g information that is known to be incomples 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. The NRC believes that because there may be significant safety consequences from the intentional submittal of incomplete or inaccurate in'ormation or other deliberate wrongdoing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding deliberate misconduct, in addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations. We have determined that this rule is not a " major rule" as defined in 5 U.S.C. 804(2). We have confirmed this determination with the Office of Mariagement and Budget. Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule. A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those provided by the Deliberate Misconduct Rule, which became effect;/e in September 16,1991. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Finel Rule 04%TReeUT104 Cent,el f/c L&ri WMS,/f PNe,6an D"10JMENT NAME:OSDIPALO\\DELMISCN\\DMC LTR.OR2 "See proveus concurrences l Oh,, DRES D:OCA OFC WMS.DRA* WMB.DRA

• NAME ADiPolo:

SBahadur hy MAK napp ORathbun /97 / (97 / 19 7 DATE 06:20/97 0 713119 7 OFHCIAL REC'Ntp COPY RES FILE CODE:

= - - - 46 % PL I-h DOCKET M p.g2 af Ab PROPOSED ,", iW JAl ConronATioN C6/ FR 5/F35) ~~ ii 9302 in Hiaiiww TIJrritoNI:(703) 359 9355 Sunt 700 TF111Ax:(703) 359-0M2 FAIRFAX, VIRGINIA 22031 '96 00' 17 P 4 :56 oft n'f DOCE October 11,1996.- Secretary U.S. Nuclear Regulatory Commission Washington, D.C. 20555-001 ATTN: Docketing and Service Branch 9 ear Sir: Please refer to Proposed Rule dated Septemt,er 30, 1996 regarding " Deliberate Misconduct by Unlicensed Persons". I propose that the aforementioned rule be extended to persons that dehberately, infonestion that the person submitting the information knows to be 'mcomp!nte or inaccurate in some respectimaterial to:NRC under;the~ provisions of:10CFR2l'(Reporting of Defects and Cosepliance)r It is highly discriminatory to' subject persons'that submit knowingly incomplete or erroneous information to licensees to the penalties provided by the proposed rule,- and not those tha submit knowingly incomplete or erroneous informatio. to NRC regardirag defects or non-complia under 10CFR21. The latter also has a material puulic safety significance inasmuch as it misdirects valuable resources of both the NRC and its licensees, without justification, to addressing the allegation of defects or non-compliance when such resources would othenvise be available to ensur safe operations and to address real safety issues. This extension of the proposed rule should not persons that identify real safety problems from reporting them to the NRC, that were eithe in fact or represented the honest belief that they existed, but would serve as a deterrent to deliberat and willful misrepresentations - made as a result of employee or contra"or disgruntlement, labor disputes, and the like. Your careful consideration of these comments is respectfully requested. Very truly yours, e i %) s E. R. Johnson (; 7 / O* ggllgy-formerly E. R.JOIINsoN AssocIAn:s,INc.

~g y -um.uwmocn ES 3 Y, $1 Nd s PROPOSED RULE h f61FRgll3SJ 0 [0 -Toledo Coalition for Safe Energy. ~ 2355-Ilcmpstead Road Toledo, Ohio 43606 (419) 535-6920 W O -8 P 3 :55 - November 4,1NHC ' .. " w _' 00CK J

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] Secretary W U.S. Nuclear Regulatory Commission Washington,K). C. 20555 NITl!NTION: Docketing and Service Branch Secretary: This correspondence is in response to a notice in the Federal Register 10-4-96 regarding Deliberate Misconduct by Unlicensed Persons. While I may.: agree with:thes h ~i bound by thei . proposed chanse to the Code of Federal Regulations regarding w o s Misconduct Runent certainlysdisagree.with your thinking on; arriving atithis change. The 10CFR 72;12 clearly states? Any licensee or any employee of a licensee; and any contractor (including a supplier or consultant), subcontractor or any employee of a contractor or subcontractor of'any licensee who knowingly provides to any licensee, contractor or. subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's activities subject to this part may not......etc. etc. 1 1 do not' appreciate the interpretationi as the Code currently reads, that tholderif a7 Certificate of Compliance:and that holder's contractors and'aubcontractors are ndt bound by:the regulation as it reads nok, The licensie of a nuclear power plant contracts with the holder of the CoC for the purpose of supplying casi.s. As stated above " any contractor, subcontractor or any employee of a contractor or subcontrag. tor" is bound by CFR Why thsn do oti make the distinction thst' there is a difference. 3 lbr an example, Toledo lidison contracted with Vectra for the purpose of supplying - the Nuhums 24P. Vectra subcontracts parts of the work out. Where is the distinction that Vectra is not under contract with a licensee? Where is the distinction that a QA program by a subcontractor is not bound by CFR7 Certainly, the intention of CFR applies to contractors and subcontractors just as it states. liWotdd'appreclNe a'tlarlflfatiori' 5 b lf /;U Charlene Johnston 3417 Darlington Road Toledo,olilo 43606 4 cc: Senator John Glenn Congresswoman Marcy Kaptur NRC Chairperson Shirley Jackson - pj,D 7- $61!290-5 g

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December 18,1996 D0 i e Mr. John C. Hoyle r J . i SER Secretary n.;ED rut.E PR va,e4 U.S. Nuclear Regulatory Commission Mail Stop O 16 G15 6/ F/dSlfr35' One White Flint North / 11555 Rockville Pike Rockville, MD 20852 2738

SUBJECT:

Proposed Rule, Deliberate blisconduct By Unlicensed Personnel LG1 Fed. Reg. 51.835. October 4.1996)

Dear Mr. Hoyle:

On behalf of the nuclear industry, the Nuclear Energy Institute (NEI)1 hereby submits the following comments on the NRC's proposed rule, Deliberate Alisconduct By Unlicensed Personnel (G1 Fed. Reg. 51,835; October 4,199G). In 1991, the NRC promulgated the Deliberate Misconduct Rule (56 Fed. Reg. 40,664, August 15,1991; see 10 CFR 30.10,40.10,50.5,60,11, G1.9b,70.10,72.12, t and 110.7b) to notify licensees, licensee contractors, licensee subcontractors or any of their employees that they may be subject to enforcement action k certain kinds of deliberate misconduct. Now,in the proposed rule, the NRC seek.s to enlarge the application of the Deliberate Misconduct Rule to six additional categoiies of persons, including certain categories of applicants and their emplo',ees, contractors, subcontractors, and consultants. ) The industry recognizes the NRC's need to take steps to avoid receiving and, in turn, relying on incorrect or inaccurate information. Without question, such misinformation potentially could have a very serious effect on the public health and - safety. Thus,it is reasonable for the NRC to seek to establish penalties to deter individuals and entities from engaging in that and other forms of deliberate ' ' ; NEl is the organization responsible for establishing unified nuclear industry policy on matters alTecting the - nuclear energy industry, including regulatory aspects of generic operational and technical issues. NEl's members include all utilities licensed to operate commercial nuclear power plants in the United States. nuclear plant designers, major architect / engineering firms, fuel fabrication facilities, materials licensees. and other organizations - and individuals involwd in the nuclear energy indusuy, .. irre i stes e t, ww. suns 4oo - w Assinoton. oc tooo+-3ros phone 2o2 pae. sis, ra to >es ieee j ff y 0$ Y +

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~ .~ Mr. John C. Hoyle December 18,1990 Page 2 misconduct. However, and as is discussed at greater length below, the_NRC.has - exceeded i_ts statutory _ authority _under thb AtomicJnergy.Act_as amended._in expanding the Deliberate Misconduct Rule as now propo_se_d. Our comments 2 on the Deliberate Misconduct Rule promulgated in 1991 questioned the NRC's reliance on the broad statutory authority provided in sections 161 and 234 of the Atomic Energy Act for jurisdiction over persons who are not licensees. Despite the fact that the 1991 Deliberate Misconduct Rule was promulgated and currently stands, we continue to believe that Sections 161'and 234 of the Aton.ic Energy Act, as amended, do not endow the NRC with the extremely broad jurisdiction the Agency claims. Authority over non licensee persons was not established by Congress other than in the limited circumstances carved out in the Act as exceptions. While section 1Gli(3) permits the NRC to " prescribe such regulations or order [s] as it may deem necessary to govern any activity authorized pursuant to [the] Act" and "in order to protcct health and to minimize danger to life or property..." (42 U.S.C. 2201(i)(3)(1982)), neither it, nor any other of the subsections of section 161 contain the operative phrase "any person." As such, the NRC's claim of jurisdiction over non licensees appears to be unfounded.- Absent statutory authority, no federal agency, including the NRC, may establish its own enforcement authority. Unless and until Congress modifies the Atomic Energy Act to provide the NRC with the in personam jurisdiction it currently lacks, the NRC may refer such wrongdoers to the Department of Justice under 18 U.S.C. 1001, the general criminal statute applicable to the federal government and its agencies. Until Congress expands the NRC's authority to reach non licensees under its organic statute,18 U.S.C.1001 provides an adequate deterrent and remedy. Also, as currently holds for the Deliberate Misconduct Rule (10 CFR 50.5(a)(2)), one of the rule's standards for enforcement action -- knowingly providing incomplete or inaccurdle inforretion which is "in some respect material to the NRC" -- is overly broad. This stacard appears to permit the NRC to take enforcement action whether or not a violation of NRC regulations has occurred or would have occurred but for detection. At a minimum, the standard should be sufficiently clear to fairly inform the public of the elements of the prohibited action. We believe that if challenged, the NRC's standard may fail under a claim of vagueness. In sum, NEI believes that the proposed rule expanding the Deliberate Misconduct Rule should be rescinded because of a lack ofjurisdiction and vagueness. If the The comments were filed by letter dated June 18,1990, on behalf of the nuclear industry by Nuclear Management 2 and Resources Council, one of NEl's predecessor organizations.

6 } Mr. John CiHoyle - December 18; 1996. - Page 3 NRC chooses not to rescind the proposed rule,it should be modified in a manner ~ consistent with these comments and again published for comment in'the Federal ~ Register. Please do not hesitate to call Ellen Ginsberg, (202) 739 8140, NEI's Assistant-General Counsel, or me if you have any questions about our comments or would like i to discuss them further. Sincerely,. i I Robert W. Bisho i i i ( 9 t 0 ..m.,.u .. i

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% JN 20 P2:16 June 18, 1990 [ @e, 'I ' [ ..e., Mr. Samuel J. Chilk Secretary U.S. Nuclear Regulatory Comission Washington, D.C. 20555 Attention: Docketing and Service Branch RE: Proposed Rule Willful Misconduct by Unlicensed Persons 55 Fed. Reg. 12374 (April 3, 1990) Reouest for Coments

Dear Mr. Chilk:

These coments are submitted on behalf of the Nuclear Management and Resources Council, Inc. ("NUMARC") in response to the request of the U.S. Nuclear Regulatory Comission ("NRC") for cornents on the proposed rule entitled " Willful Misconduct by Unlicensed Persons" (55 Fed. Reg. 12374 - April 3, 1990). NUMARC is the organization of the nuclear power industry that is responsible for coordinating the combined efforts of all utilities. Itconsed by the NRC to construct or operato nuclear power plants, and of other nuclear industry organizations, in all matters involving generic regulatory policy issues and on the regulatory aspects of generic operational and technical issues affecting the nuclear power industry. Every utility responsible for constructing or operating a comercial nuclear power plant in the United States is a member of NUMARC. In addition, NUMARC's members include major architect engineering firms and a'.' of the major n_. ar steam st.pply system vendors. The nuclear industry supports the NRC's goal of ensuring that it has in place ppropriate regulatory tools to ensure that the conduct of licensed activities does not jeopardize public health and safety. The industry does not bolleve, however, that the proposed rule is necessary or appropriate, or that it is legally vallo. The NRC cites no evidence in support of the promise that it has been unable, absent this rule and its companion rule relating to modifications to Part 2, to satisfy its statutory responsibilities.

Further, the NRC has estimated that fewer than five cases por year will involve enforcement actions being taken against unilcensed individuals.

55 Fed. Reg. at 12379. To put that number in perspective, it should be noted that currently there are approximately 8,300 NRC licensees (which include comercial nuclear power plants) and 15,000 NRC-Agreement State licenses. Even if there were evidence that additional regulation-is necessary to protect public health and safety, the proposed rule is not a valid way to meet-that objective. The significant legal and can',Litutional questions raised by the proposed rule argue strongly against promulgation of the proposed rule, pb eso,tM - 90Q610 o z - af pon en 30 55FR12374 PDR y

Mr. Samuel J. Chilk June 18, 1990 Page 2 Although Section 1611 of the Atomic Energy Act of 1954, as amended, provides broad authority to the Comi:sion to govern activities under its jurisdiction, that authority is not limitless. Significantly, Section 1611(1) and (2) only grant the Comission authority over a " person" in very limited and specific circumstances. The absence of a similar grant of jurisdiction over "any person" in other sections of the Act, including the relatively broad Section 1611(3), is material. Authority over non licensee persons was not established by Congress except in very limited situations specifically described. For example, while under 1611(3) the NRC has the authority to issue orders as the NRC "may deem necessary... In order to protect health and to minimize danger to life or property....." 42 U.S.C. 2201(1)(3)(1982), this clearly extends only to licensees and not in individuals since the critical phrase "any person" is not found in Section 1611(3). Further, the Supplementary Information accompanying the proposed rule carries this limited authority a significant step beyond the language of the statute itself by suggesting that the NRC's jurisdiction under Section 1611 extends not only to rules that are "necessary," but also to rules which the NRC would now propose as being "necessary or desirable." 55 Fed. Reg. 12371 (emphasis added). While Section 161b grants the NRC authority over the possession and use of nuclear material, it contains no grant of authority over individuals or organizations who are not licensed by the NRC or who otherwise might possess or use nuclear materials. This is consistent with the distinction between 1611(1) and (2) and 161t(3) as discussed above. Finally, Section 234 is also cited by the NRC as providing authority for the issuance of the proposed rule, yet the authority provided by that section is limited to sections of the Atomic [nergy Act associated with the liccasing for possession or use of nuclear materials. In sum, the NRC's in personam jurisdiction under the Atomic Energy Act extends only to licensed persons and to unlicensed persons that either improperly engage in activities that require a license or to such pornns to which Congress has provided the NRC with specific statutory authority (i.e., under Section 210 of the Energy Reorganization Act of 1974). In support of the NRC's interpretation of the scope of its authority, the NRC relies upon cases analyzing the Federal Comunications Comission's ("fCC") enabling statute as being analogous to the Atomic Energy Act. The NRC suggests that the line of FCC cases cited in the Supplementary Information establishes the principle '. hat the FCC, and thus by analogy the NRC, has authority over persons who are not licensed by the agency. However, the cases cited by the NRC involved only the agency's authority over licensees and the authority of the regulatory agency to adapt its regulatory tools to technologies that did not exist at the time of the initial enabling statute. That is not the case here. In addition, in the recent case of Tafflin v. Levitt (58 U.S.L.W. 4157, January 22,1990), the U.S. Supreme Court cautioned that analogies to other statt.tes do not provide dispositive guidance. lhere, the Court itated that, ... we are not free to add content to a statute via analogies to other statutes unless the legislature has specifically endorsed such action." K,

Mr. Samuel J. Chilk June 18, 1990 Page 3 at 4159. The NRC should similarly restrain from reliance on an evaluation of its authority by reference to extrinsic evidence of congressional intent. Of' great concern to the nuclear industry is the impact that the proposed rule would have on licensee employees and the employees of contractors who provide goods and services to nuclear power plant licensees. The proposed expansion of the NRC's enforcement authority to encompass misconduct that may not be a violation of Commission regulations cannot help but have a chilling effect on the willingness of individuals participating in licensed activities to take responsibility for their actions, or even their willingness to participate in such activities when the exposure to civil and criminal penalties is 50 broad and undefined, further, adoption of this rule may cause those employees to be concerned about a conflict in their responsibility to their employer and, under the proposed rule, their susceptibility to discipline by the NRC for following the instructions of their employers that the iRC may at some subsequent time determine to have been improper. The consequent undermining of Individual and management authority and responsibility will create a situation contrary to the goal of Section 1611 of a Atomic Energy Act to protect the public health and safety. n In a number of critical respects, the proposed rule is so broad and vague that it goes far beyond justifiable bounds. As discussed above, the proposed rule would enable the NRC to prosecute an individual for conduct which does not violate a Commission r<gulation. Also without appropriate legal foundation are the broad and vague definition of willful misconduct without any objective standard, the NRC's proposed evidentiary standard of a preponderance of the evidence to determine culpability, and the lack of a requirement that an individual intended to mislead the NRC. Further, the NRC delineates eight criteria that it intends to evaluate in deciding when to issue an enforcement order, but the NRC does not articulate its reasoning for choosing these factors. Of particular concern is the NRC's conclusion that the benefit to the alleged wrongdoer of his/her action (f actor 3) or the attitude of the alleged wrongdoer (factor 6) have any materiality in determining whether the Commission's regulations have been violated. The prospect that punishmont could be loviod moroly because an individual questioned allegod violatiMs of NRC regulations or allegations of his or her individual misconduct, and thereby demonstrated a bad attitude which would then provide an indspondent basis for NRC prosecution, is untenable and would conflict with the r ights provided by the Fif th Amendment. The ability of the NRC to evaluate those and other factors effectively through its own investigation, without any opportunity for the individual to respond, is questionable, in any event, such a course of action has. cot been justified and raises serious due process concerns. j Further, the NRC proposes to create and publish a list of individuals subject to NRC discipline, effectively to establish a blacklist. This could directly affect the ability of an individual to pursue a chosen livelihood and result in potentially irreparable harm to an individual's professional reputation, which could occur even before the individual would be able to seek

l Mr.-Samuel J. Chilk June 18, 1990 Fage 4 vindication in a hearing, in addition, it is questionable whether the NRC's collection of information on unlicensed persons working in the nuclear industry and the creation of a " blacklist" is consistent with other statutory-obligations of the NRC, such as the Privacy Act of 1974. The statement that Staff wili " consult" with the Commission before taking action directly against unlicensed individuals (55 Fed. Reg. at 12377) does not afford sufficient protection for an individual from the harsh effects of the proposed rule, in conclusion, we believe that the proposed rule is seriously flawed. both with respect to its legal justification and as a matter of regulatory policy. Our fundamental concern is that the adoption of the proposed rule would have a negative impact on individuals and organizations whose conduct is beyond reproach and that the proposed rule would have no contervalling positive effect, through discouraging inappropriate conduct, beycnd that achieved by the NRC's current rules and regulations, The NRC's experience to date demonstrates that the NRC's current tools are sufficient to ensure that individuals and organizations which participate in licensed activitic'; have been and will be able to be appropriately held accountable by the NRC. Therefore, there is no benefit to create new criteria and processes through the proposed rule, and the companion rule on revisions to Part 2 orders, that compensates for the negative situation that would be created by the adoption of the rules as proposed, We would welcomo the opportunity to discuss our comments and concerns about the proposed rule with the NRC Staff, Sincerely, bl J e F. Colvin JFC/RWB:bb

$F9G > '=} n,mnu,nwrah himo nimgun3 y q j, p o m opmince h, _I4 ihm ners (enne.11 (o515 3s F e *4 ~ 3p 2 gwG,g Q December 18,1996 6 s# .@c 4 (b DOCKET NUMBER The Secretary of the Commission at B PROPOSED RULE N 3h[al., / U. S. Nuclear Regulatory Commission Washington, D. C. 20555 [ Attn: Docketing and Service Branch

SUBJECT:

Commonwealth Edison (Comed) Comments on Proposed Rule Revisions to Deliberate Misconduct by Unlicensed Persons (FR 51835, Vol. 61, No.194) The purpose of this memo is to provide comments to the NRC Staff on the proposed revision to its Deliberate Misconduct Rule. The comment period for this revision of the rule expires December 18,1996. Our comments are provided below: As noted in Federal Register Notice 51835, Vol. 61, No.194, the NRC is amending its regulations to extend the Deliberate Misconduct Rule to six categories of persons: 1) applicants for NRC licenses; 2) applicants for, or holders of, certifications of compliance;

3) applications for, or holders of, early site permits, standard design certification, or combined licenses for nuclear power plants; 4) applications for, or holders of, certifications of registration; 5) applicants for, or holders of, quality assurance program approvals; 6) 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.

Comed has comments with regard.s to two specific areas, preliminary or draft information that is provided to the staff and how potentially erroneous information in a staff SER may be handled under this proposed rule. We have concems regarding the proposed revision to the rule as it does not address preliminary or "for information only" information that may be sent to the NRC staff. Situations arise where licensees provide such information to the staff to support teleconferences or meetings. Preliminary information sometimes changes over time, and-it is Comed's belief that such situations should not be misconstrued and conclusions reached that there was " deliberate misconduct" in such cases. To clarify this matter, Comed believes that this type of situation should be addressed in the final rule. In addition, we recommend that a more clear, concise definition of deliberate misconduct be included in the proposed mie or policy. w-- f ^'1 10r095850~ 0/-0 L umm,m o.mium

9 c, U. S. Nuclear Reguttory Commission Decembs 18,1996 'Ihe second matter pertains to how potentially erroneous ir. formation in a.;taff Safety Evaluation Report (SER) may be handled under this proposed rule. In the development - of a staff SER, there is a potential for the staff to reach conclusions that may not be consistent wit!- the information provided in a licensees submittal, in the broadest sense, the staff may conclude that those types of situations could constitute " willful misconduct" on the past of the licensee. Commonwealth Edison has high expectations of its employees, and how they interact with the NRC. Therefore, we would expect our employees to behave in a manner that " willful misconduct" is not an issue, and should it occur, we as an organization will not tolerate it. This, however, does not cbviate the need for NRC staff to promulgate rules or policies in this area that are crisp and clear. Please feel free to contact this office if you have any questions pertaining to this review. Sincerely, [ J TC. Ilrons lice President _ J4uclear Support bec: Attachment - FR Notice w w 6.

v Ap 35 -t-PW. l ~ y W go n y DOCKET NUMBER 4 / PROPOSED RUI.E $ 49 4op, e com8S h/Mdess,) C M1 - 31997 N December it,1996 co ~ a' e 9 Secretary g 9 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 0001 Attn.: Docketing and Service Branch

Subject:

Comments on Proposed Rule: RIN 3150-AF35 Deliberate Misconduct by Unlicensed Persons ) These comments are limited to the provisions of the proposed rule that apply to 10 CFR Part 30 and 32 for the manufacture and distribution of radiography devices, sealed somes and associated equipment that are authorized for use in accordance with 10 CF'; Part 34. We support the proposed revision to extend the Deliberate Misconduct rule to six categories of persons, particularly for applicants for, or holders of, certificates of registration; and applicants for, or holders of, quality assurance program approvals. We recommend that the rule be revised to specifically apply to the persons who maintain the equipment malfunction records that are required by the Quality Control (QC) and Quality Assurance (QA) programs which are required ~ under 10 CFR Part 32 for the manufacture and distribution of radiography equipment. Title 50 CFR Part 32 requires applicants to manufacture and distribute products in accordance with QC standards approved by the U.S. Nuclear Regulatory Commission. NRC Regulatory Guide 6.9 " Establishing Quality Assurance Programs for the Manufacture and Distribution of Scaled Sources and Devices Containing Byproduct Material" describes the minimum acceptable QC and QA program requirements. Section i1 " Deviations and Customer Complaints" of Regulatory Guide 6.9 describes the requirement for the certificate holder to maintain and evaluate equipment malfunction and customer complaint records, and to take prompt corrective action when applicable. Those records are not part of the QA program itself, and are therefore not submitted to the NRC as part of the device registration application. Nevertheless, the accuracy and integrity of these records are essential for the QC/QA program to be effective. The current proposed revision to the Deliberate Misconduct rule appears to apply only to information that is submitted to the NRC as part of a registration certificate application. It should be extended to apply to QC/QA records that must be maintained by the certificate holder after the equipment registration has been issued. This recommendation is important to public health and safety because improved equipment design is one of the efforts needed to reduce the number of radiography equipment malfunctions. The number of malfun:tions has increased in recent years due to increased mechanical g j ~ O 7/ Yource Production Equipment Co., Inc. ... ~.......... 11M__ St. Rose _ t.A 70087-9691 Phone 504/464-9471 Telex 460156 FAX 504/467 7685 3

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~ U.S. Nuclear Regulatory Commission - Page 2 of 2, complexity of radiography devices, particularly the lock systems. The QC/QA requirements impose a responsibility on the manufacturer and distributor to improve the safety design of . radiography equipment as rnuch as reasonably achievable. The corrective action provision of the - QC/QA requirements for equipment ' design is the regulatory equivalent of the ALARA rule. It requires safety design improvements beyond the minimum requirements specified in_10 CFR ~ 34.20 and ANSI Standard N432-1980. Accordingly, the Deliberate Misconduct rule should - (: . apply to persons who maintain equipment malfunction data for a certificate holderjust as it - applies to persons who maintain radiation dose data for a licensee to meet ALARA. Deliberately falsified data that mask a significant defect could be a public health and safety threat if it causes corrective action of faulty equipment design to be delayed of omitted. Persons who deliberately omit or otherwise misrepresent equipment malfunction data should be subject to the Deliberate Misconduct rule.~ Proper maintenance of malfunction records is also relevant for the certificate holder to adequately address the evaluation and notification requirements listed in 10 CFR 21.21. We recognize that it may not be practicable for the NRC to inspect each vendor on a routine baais to verify compliance with the recording keeping and corrective action requirements - of their QC/QA' program, particularly manufacturers of only associated equipment. : Therefore,. we recommend that the NRC veri _fy compliance as part of acute overexposure and equipment malfunction incident investigations. ' We hope these comments are useful to the NRC. I am available to meet with the NRC to discuss these recommendations in further detail if needed. Since L / R. D. - ( nny) Dicharry President - 1 1218-96 GCI : t 1 ? k h ~: ) ,.,r-.- I. m y---,c ..._n,m., ,mm

f~ [ AF M e i ft Feder:1 Regist:r / Vol. 61 No.194 / Friday, October 4,1996 / Proposed Rules 51835 separately for fees for aflatoxin ast.ay, enforcement action for deliberate (1) Applicants for NRC licenus: The importer also shall pay all required miscond u. Deliberate misconduct may (2) Applicants for, or holders of, Customs Service costs as required by involve providing information that is certificates of compliance issued under that agency, known io be incomplete or inaccurate 10 CFR Parts 71 and 72, including those (7) Each person subject to this section and in some respect material to the for dry cask storage: shall maintain true and complete NRC, or it may involve conduct that (3) Applicants for, or holders of, early records of activities and transactions causes or would have ceused,if not site permits, standard design specified in these regulations. Such detected, a licensee, certificate holder, certifications, or combined licenses for records and documentation or opplicant to be in violation of any of nuclear power plats issued under 10 accumulated during entry shall be the Commission's requirements. CFR Part 52: retained for not less than two years after DATrs: The comment period expires (4) Applicants for, or holders of, the calendar year of acquisition,except December 18,1996. Comments received certificates of registrahon issued under that Customs Service documents shall after this date will be considered ifit is 10 CFR Parts 30 and 32: be retained as required by that agency, nictical to do so, but the Commission (5) Applicants for, or holders of. The Secretary, through duly authorized bs able to assure consideration onl for quallt assurance program approvals iss , nd r to art ad representatives, shall have access to any comments received on or/ before t ils g such person a premises during regular

date, subcontractors, and consultants of the business hours and shall be permitted, ADDRESSES: Comments may be sent to:

fi fi e ieb of pesa at any such time, to inspect such Secretary, U.S. Nuclear Regulatory To ensure t at these persons are records and any peanuts held by such Commission, Washington, DC 20555-subject to enforcement actinn for person. 0001. Attn: Docketing and Service wrongdoing under the Deliberate (a)The provisions of this section do liranch. Iland deliver comments t Misconduct Rule, the NRC is proposing not supersede any restrictions or 11555 Rockville Pike Maryland to extend the rule to them. The prohibitions on peanuts under the hetween 7:45 nm and 4:15 pm on' Commission's proposed rule would also I,ederal Plant Quarantine Act of 1912, Federal workdays. add the Deliberate Misconduct Rule to the Federal Food, Drug and Cosmetic FOR FURTHER INFORMAT ON CONTACT: 10 CFR Parts 52 and 71 where it Act, any other applicable laws, or Tony DiPalo, Office of Nuclear regulations of other Federal agencies, Regulatory Research, U.S. Nuclear currently does not akoes n. pear The Commission ot believe that including import regulations and Regulatory Commission, Washington, it is necessary to add the Deliberate procedures of the Customs Service. DC 20555-0001, telephone (301) 415-M!sconduct Rule to 10 CFR Part 54 Dated Octulmr 1,1996. 6191, e-mail, ajd@nrc. gov. because licensees applying to renew Sharon Domer 1.auritsen, SUPPLEW.NT ARY INFORMATION: their operating licenses for nuclear Acting Durctor Fruit and Vegerable Divisinn. power plants are already subject to this IFR Doc. 06-255t9 Filed 10-3-96; 8:45 aml rule as licensees under 10 CFR Part 50. On August ' 1991 (56 FR 40664), Similarly, the Commission does not . en,, m. the Commisa. < a adopted changes to believe that it is necessary to add the NRC regulatior.2 that established the Deliberate Misconduct Rule to 10 CFR mrate Wsconduct Rule found at 10 Part 55 Imcause applicants for, and NUCLEAR REGULATORY GR 3RM, E10, Sa5, Gall, M, holders of, reactor operators licensus are COMMISSION 70.10,72.12, and 110.7b, which applies already subject to this rule as employees 10 CFR Parts 30,32,40,50,52,60,61, to any licensee or any employee of a of 10 CFR Part 50 licensees. Moreover, 70,71,72,110, and 150 licensee; and any contractor (including licensed operators are subject to all a supplier or consultant), subcontractor, applicable Commission requirements RIN 3tSMF35 or any employee of a contractor or (see to CFR 55.53(d)) and thus a finding subcontractor, of any licensee. In of deliberate misconduct is not required Deliberate Misconduct by Unlicensed addition,10 CFR 150.2 makes the rule to take enforcement action against a Persons applicable to persons conducting licensed reactoc operator. AGENCY: Nuclear Regulatory activities under reciprocity in areas of Discussion Commission. NRC jurisdiction, (see 10 CFR 150.20). ACTION: Proposed rule. The Deliberate Misconduct Rule placed It is important that allinformation licensed and unlicensed persons on provided to the NRC be complete and EUMMARY:The Nuclear Regulatory notice that they may be subject to accurate in all material respects. Section Commission (NRC) is proposing to enforcement action for deliberate 186 of the Atomic Energy Art of1954, revise its regulations to extend the misconduct that causes or would have as amended (AEA), underscores this Deliberate Misconduct Ru e to alx caused, if not detected, a licensee to be need by providing that "lal license may l categories of persout eippocants me in violation of any of the Commission's be revoked for any material falso NRC licenses: applicants for, or holders requirements, or for deliberately statement in the application or any of, certificates of compliance; applicants providing to the NRC, a licensee, or statement of fact required (by statute or for, or holders of, early site permits, contractor, infonnation that is regulationi. * * *" The Commission standard design certifications, or incomplete or inaccurate in some has promulgated rules concerning combined licenses for nuclear power respect material to the NRC. The rule completeness and accuracy of plants; applicants for, or holders of, also revised the NRC's procedures for information that specifically apply to certificates of registration: applicants iss dng orders to inclutte persons not information provided to the for, or holders of, quality assurance lic msed by the Commission, but who Commission by a licensee or an program approvals; and the employees, an otherwise subject to the applicant for a license (see 10 CFR contractors, srltontractors and Co muission's statutory authority. 30.9(a), 40.9(a). Sn.9(a), 60.10(a), consultants of the first five categories of krrently, the Deliberate Misconduct 61.9a( a ), 70.9(a ), 71.7a, 72.11(a), 76.9(a ) persons, so that they may be subject to Rulo loes not apply to: and 110.7a(a)). Similarly, paragraph (b) s

// Mil:10 l'ederal Register / Vol. 61, No.194 / I'rlday, October 4,1996 / Proposed l<ulos of each of theso sections, which deals individual NRC enforcement action misconduct by unlicensed pesons with notification to the Commission of because the delihornto misconduct may acting within the scope of the signifirant safety information, roform to not have put an "NRC licensen" in Commission's jurisdiction and may applicants as well as licensoon. violation. To offuctively exerciso its deter such behavior as well. Violation of ilmso provisions can rmult authorhy under the AEA, the This ru!mak;ng oxtending the in denial of the licenso application, civil Conunission neods to provent or Doliberate hMsconduct Rule to enforcement action against a licenson, othorwise deter tho delihorate submittid applicants for NRC licensos, applicants or, if appropriato, reforral to the of materially falso or inaccurate far, and holders of, cortificates o T Department of Justico fo* consideration informatioriby those entitios not complias:o luued under 10 CFl. Parts for crhninal prosecution, curmntly covered by the rule. The NRC 71 and 72; applicants for, and hc Idors The I)olihornto Misco. duct Rulo knows of no reason why the rule ah-il ot', oorly sito permits, standard d isign permits the NRC to tak e individual not apply to gersons who deliberato.j cortifications, or combined licen ses for a.. tion, such as issuing on ordor, against submit materfally incomplate or nuclear power pit ris issued und er 10 an individual who deliberately provides inaccurato information, whether such CFR Part 52; appliennts for, and 1olders information that the individual knovenalties to unlicensed persons for The changes a ply to any person who fibs,(703) 321-3339, or by using Telnet eliberate misconduct. In addition to engages in del berate misconduct, or via Internet: fedworld. gov. If using (703) license applicants, these chan es who deliterately submits materially 321-3330 to contact FedWorld, the NRC expand applicability of the ru to incomplete or inaccurate informWon, as subsystem will be accessed from the include persons such as certificate orovided in the rule. fly imposing a main FedWorld menu by selecting the holders and ality assurance program direct prohibition on unlicensed " Regulatory, Government approval hol ers. Such actions are persons, the Commission may be able to Administration and State stems,,, addressed individuall by States exercise its section 214 authority to then selecting " Regulatory formation through each State's a ministrative impose civil nalties on unlicensod Mall." At that oint, a menu will be code. Division-3 regulations are ersons who cliberately cause a disp ayed that as an option "U.S. appropriate for Agreement States to icensee, a >l! cant, or permit or Nuc ear Regulatory Commission" that ado t, but do not require any de roe of certificate lder to le in violation of will take you to the NRC Online main uni ormity between the NRC an requirements because they are persons menu.The NRC Online area also can be Agreement Statt rules. Agreement States who violate the licensing provisions accessed directly by t Ing " go nrc" at utred to ado t the regulatory enumerated in rection 234. In cases a FedWorld comma ine I you access are not [dentified in approac ivision 3 when the Commission issues an order NRC frem FedWorld's main menu, you regulations. (other than an order imposing a civil may return to FedWorld by selecting the penalty) to a person based on deliberate " Return to FedWorld" option from the EnvironmentalImput: Categorical misconduct that causes a licensee, NRC Online Main Menu, llowever, if Exclusion applicant, or permit or certificute holder you access NRC at FedWorld by usin8 The NRC has determined that this to be in violation of a Commission NRC's toll free number, you will how proposed rule relates to enforcement requirement, the order would te issued full access to all NRC systems, but you matters and, therefore, falls within the in part ursuant to a regulation (e.g., will not have access to the main scope of 10 CFR 51.10(d). Therefore, 6 30.10 that was promulgated under a FedWorld system-neither an environmentalimpact licensing provision of the AEA. A civil if you contact FedWorld using Telnet, statement nor an environmental penalty could be available for violations vou will see the NRC area and menus, assessment has been prepared foi this of such an order. In addition, criminal including the Rules Menu. Although proposed rule. sanctions under r,ection 223 of the AEA you will no able to download are available for willful violations of documents and leave messages, you will Paperwork Reduction Act Statement orders and regulations issued under not be able to write comments or upload This proposed rule does not contain sections 161b and I. Injunctions are also files (comments), if you contact a new or amended information available under section 232 of the AEA FedWorld using FTP, all files can be collection requirement subject to the for violations of Commission orders. accessed and downloaded but uploads Paperwork Reduction Act of1995 (44 are not allowed; cli you will see is a list U.S.C. 3501, et seq.). Existing Electronic Access of files w thout descriptions (normal requirements were approved the Comments may be submitted Gopher look). An index fi!c listing all Office of Management and 11u et, electronically,in either ASCII text or files within a subdirectory, with approval numbers 3150-0017,3150-Wordperfect format (version 5.1 or descriptions, is available. There is a 15-0151,3150-0127,3150-0135,3150.- later), by calling the NRC Electronic minute time limit for FTP uccess. 0009,3150-0132,3150-0036, and 3150-Ilulletin floard (1111S) on FedWorld. The Although FedWorld also con tx, 0032. bulletin board may be accessed using a accessed thr, ugh the World Wide Web, personal ccmputer, a modem, and one like FTP, that modo only pmvides Public Protection Notification of the commonly available access for downloading files and does Tiie NRC may not conduct or sponsor, communications software packages, or not display the NRC Rules Menu. and a person is not required to respond directly via Internet. Itackgmuad For more information on NRC bulletin to, a collection of information unless it documents on the rulemaking are also boards call Mr. Arthur Davis, Systems disniays a currently valid OMll contml available, as practical, for downloading Integration and Development Ilranch,

nuinbm, NRC, Washington, DC 20555-0001, nnd viowing on the bulletin board. ~

if using a personal computer anu telephone (301) 415-5780; e-mail Regulatoiy Analysis modem, the NRC rulemaking subsystem AXDa@nrc. gov. The NRC has tatutory authority to on FedWorld can be accessed directly Certain documents related to this issue enforcement actions against by dialing the toll free number (800) rulemaking, including comments unlicensed persons whose deliberate 303-0672. Communication software roccived, may be examined at the NRC misconduct causes a licensee or a parameters should be set as follows: Public Document Room,2120 L Street certificate holder or an applicant for a parity to none, data hits to a, and stop NW. (Lower Level), Washington, DC. licanse or certificate to be in violation tilts to 1 (N.H,1). Using ANSI or VT-too These same documents may also be of the Commission's requirements. On terminal emulation, the NRC viewed and downloaded electronically August 15,199t (56 FR 40664) the NRC rulemaking subsystem can then be via the Electronic Ilulletin floard promulgated the Deliberate Mist.onduct accomd by selecting the " Rules Monu" established by NRC for this rulemaking Rule which put licenred and unlicensed option f om the "NRC Maln Monu." as indicated in the Supplementary persons on notice that they may be Users will find the "FedWorld Online Information section. subject to enforcement action for Y-

- = 4 $1838 Fede/al Register / Vol. 61 No.194 / Friday, Octobor 4,1990 / Proposed Rules delilerate misconduct that causes or, if-program that is submitted to the NRC for publishing the additional actions not detwted, would cause a 'icensne to approval but is supported by beyond the current workload is not bu in violation of any of the deliberately falsified data that mask a siguificant. ommission's requirements or for significant defect could also be a public The proposed amendments to the d,oliterately provtomg to the NRC, a heahh and safety threat The potential Deliberate Misconduct Rulo constitute hcensoe, or a contractor informat mn for injury is serious. The NRC knows of the preferred coun,e of action. The cost that is incomplete or inaccurato in some no reason why the Deliberate inv lved in its promulgation and respm:t material to the NRC. Ilowever, Misconduct Rule should not apply to the Doliterate Misconduct Rule does not persons who deliberately submit application is necessary and specifically apply to: materially incomplete or inaccurate appmpriate. The foregoing discussion (1) Appflcants for NRC licenses; information, whether that submittal is constitutes the regulatory analysis for (2) Applicants for, and holders of, by or on behalf of an applicant, or by or this rule. wrtificates of complianco issued under on behalf of a holder of a license, Regulatory Flexibihty Cedification 10 CFR 9 arts 71 and 72; certificato, permit, or approval. r31 Applicant, f r, and holdors of. The objective of the rule is to In accordance with the Regulatory o narly site permits, standard design explicitly put those persons Flexibility Act of 1980,5 U.S.C. 605(b), certifications, or combined licensen for encompassed by this modification of the the Commission certifies that this nuclear power plants issued under 10 Deliberate Mlsconduct Rule on notico proposed rule,if adopted, will not have CFR Part 32; that enforcement action may be taken a signif cant economic impact on a (4) Applicants for, and holders of, against them for dellborate misconduct substantlaf number of small entitles. certifiestes of registration issued under or dellborate submission of incomfon to 'I.he proposed rule would put:(1) lete 10 CPR Ports 30 and 32; or inaccurate information, in relat (5) Applicants for, and holders of. NRC ilconsed activities. Under section applicants for NRC licenses;(2) quality assurance program oppre tals 234 of the Atomic Energy Act,the applicants for, and holders o. Issued under 10 CFR Part 71; a..a Commission may impose civil penalties cortificates of compliance isst ed under (0) The amployees, contractors-on any person who violates any rule, to CFR Parts 71 and 72, including those subcontractors and consultants of the regulation, or order issued under any for dry cask storage; (3) applicants for, rirr.t five categories of persons. one of the enumerated provisions of the and holders of, early site permits, 1 Or. November 29,100t, the NRC staff Act, or who commits a violation for standard design certifications, or ( issued an Order Revoking License to Dr. which a license may be revoked. The combined licenses issued under to CFR Randall C. Orem after the NRC staff enforcement actions that may be taken, Part 52;(4) applicants for, and holders learned that information in his license including orders limiting activities of of, certificates of registration issued application was falso and that the wrongdoors in the future and civil under to CFR Parts 30 and 32;(5) epplication had been prupared by a penalties, will serve as a deterrent to applicimts for, and holders of, quality consultant who had provkled the falso others throughout the industry, assurance program approvals issued information. See llandall C. Orvm, RO.. The NRC's availablo alternativos are under to CFR Part 71; and (6) the CLI-93-14,37 NRC 423 (1993). In this to promulgato a modification of the em ployees, contractors, subcontractors case, the NRC staff realized that under De berate Misconduct Rule, as is and consultants of the first five the provisions of the existing Doliberate proposed horcin, or do nothing. Because ategories of persons on notice that they Misconduct Rule,it was unable to take a case has alreadv occurred where the are subject to the Deliberate Misconduct additional enforcement action against NRC was procluded from taking Rulo and, therefore, are subloct to civil Dr. Orem and was precludod from appropriate enforcement action against enforcement action if they deliberately taking unforcement action against the a consultant to an applicant and there cause a licensee, certificate holder, m on consultant because the consultant was was potential harm to the public, the working for an applicant rather than for alternative of doing nothing was applicant for a license or certificate to a licensco. Subsequently, the rejected. The benefits of taking bo in violation of NRC req.dromonts. . Commission realized that other enforcement action are similar to those The proposed rule,by itself, would not categories of persons within NRC of taking action against licensed entities impose any additional obligations on jurisdiction had not boon explicitly in that a civil ponalty and attendant entities that may fall within the includml within the Dollierato adverse publicity encourage futuro definition of "small entitles" as set forth Misconduct Rulo; e.g., cortificate compliance.The Notice of Violation in Section 601(3) of the Regulatory - holders under to CFR Parts 71 and 72 calls for a precise response regarding the Flexibility Act; or within the definition and holders of early sito permits, correctivo action taken. An enforcement of "small business" as found in Section certified dosign certifications and ordor,if obeyed, will directly control 3 of the Small Business Act,15 U.S.C. - combined licenses under to CFR Part the involvement of an individual in a 032; or within the size standards 52. licensed activity. The offoct of havinH adopted by the NRC on April 11,1995 l'he Commission bolioves that there these options available in the (60 FR 18344). may be signlIicant safety consequences enic coment program should reduce the imm the doliberato submission of falso probability of repotitive violations by llackf t Analysis or incomplete information or other wrongdoors. The NRC has determ ned that the delihorate wmngdoing by an applicant The NRC does not anticipate that for a licenso or other unlicensedporsons additional investigations willle backfit rule,10 CFR 50109, doos not pmposed to be covered by this necessary to imptomont the rule because apply to this proposed ulo and, modification to tho Dnliberate it focusea on the results'of therefore, a backfit analysis is not Misconduct Rule. For examplo, a spent investigritions. Dased on experience, the required for this proposed rula becauso - fuol cask Ihat is cortified by the NRC on NRC expocts fewer than 10 additional those amendments do not imolvo any the basis of falsifimi test data could rasos per year to result in enforcement provisions that would impose backfits represent a throat to public health and action being taken against unlicensod as defined in 10 CFR 50.109(a)(1). safety. Similarly.a quality assuranco individuals. The cost of preparing and Y'

e' Feder:I Register / Vol. 61 No.194 / Friday, October 4,1996 / Proposed Rules 51839 List of Subjects 10 CPR Part 71 Stat. 9119, and under title 11 of the 10 CFR Parf 30 Criminal penalties,liarardous Energy Reorganization Act of 1974 (88 materials transportation, Nuclear Stat,12411, and exemptions from the flyproduct material Criminal materials, Packaging and containers, d mesticlicensing requirements nonalties, Government contracts, Reporting and recordkeeping permitted by section at of the Act.This 'ntergovernmental relations, isotopes, requirements. part also gives notice to all persons who - Nuclear materials, Radiation protectium knowingly provide to any licensee, Reporting and recordkeel ng to CFR Purf 72 applicant, certificate of registration d 51uirements. Manpower training programs, Nuclear holder, contractor, or subcontractor, 10 CFR Pod 32 materials, Occupational safety and components, equipment, materials, or 1ealth, Reporting and recordkeeping other goods or services, that relate to a Hyproduct =naterial, Criminal requirements, Security measures, Spent licensee's, applicant's or cortificate of penalties, Labeling, Nuclear materials, fuel. registration holder's activities sub}ect to Radiation protection, Reporting and this part, that they may be individual:v 10 CFR Pad 110 recordkeeping requirements. subject to NRC onforcement action for Administrative practice and violation of $ 30.10. JO CFR Pad @ procedure, Classified information,

3. Section 30.10 is revised Io read as Criminal penalties Covernment Criminal ponalties, Export, import, follows:

contracts, llazardous materials Intergovernmental relations, Nuclear transportation, Nuclear materials, materials, Nuclear power plants and Reporting and recordkeeping reactors, Reporting and recordkeeping (a) Any licensee, certificate of requirements, Source material, requirements, Scientific equipment. registration holder,ap IIcant for a* Uranium. "E to CFR Part 150 employee of a licensee, certificate of 10 CFR Parf 50 Criminal penalties,llazardous registration holder or applicant: or any Antitrust, Classified Information, materials tnmsportation, contractor (including a supplier or Criminal penalties. Fire protection, Intergovernmental relations Nuclear consultant), subcontractor, employee of Intergovernmental relations, Nuclear materials, Reporting and recordkeeping a contractor or subcontractor of any power plants and reactors, Radiation mquimments Security measures, licensee or applicant for a license or protection, Reactor siting critoria, Source material, Special nuclear certificate of registration, who Reporting and recordkeeping material. knowingly provides to any licensee, mquirements. For the reasons stated in the preamble applicant, certificate holder, contractor, and under the aathority of the Atomic or subcontractor, any components, 10 CFR Part 52 Energy Act of 1954, as amended: the, equipment, materials, or other goods or Administrative practico end Energy Reorganization Act of 1974, as services that relate to a licensne's, procedure. Antitrust,Itackfitting, anwnded; and 5 U.S.C. 553; the NRC la certificate holder's or applicant's Combined license, Early site pennit, proposing to adopt the following activities in this part, may not: Emergency planning Fees, inspection, anmndments to 10 CFR Parts 30,32,40, (1) Enpace in deliberate misconduct Limited work authorization, Nuclear 50,52, no,61,70,11,72,110, and 150. that causes or would have caused. If not power plants and mactors, Probabilistic PART 30-RULES OF GENERAL risk assessment, Prototype, Reactor "E '" "EE APPLICABILITY TO DOMESTIC ' ""I " * " E"'"" siting criteria, Redress of site, Reporting LICENSING OF BYPRODUCT and rocordkeeping requirements. """I""""" limitation of any l' cense issued by the MATERIAL Standard design, Standard design i certification.

1. Tho authority citation for Part 30 Commissiom or continues to read as follows:

(2) Deliberately submit to the NRC, a Authority: Se a 8t,82,161,182,183,186, bnsw, cedcaM M Wakabn Criminal penalties, liigh. level waste, 68 Stat. 935,948,953,954,955, as amended, holder, an applicant, or a licensee,s, Nuclear power plants and reactors, sec. 234,83 Stat. 444, as amended (42 U.S.C certificate holder's or applicant's, Nuclear materials, Reporting and 2111,2112,2201,2232,2233,2236,2282h contractor or subcontractor, information recordkeeping requirements, Wasto aus. 201, as amended,202,200,88 Stat. that the person submitting the treatment and disposal. 1242, an amended. 1244,1246 (42 U.S.C. Information knows to be incomplete or 584 t, 5842, 58461-inaccurate in some respect material to Section 30.7 also issued under Pub. L os. the NRC. Criminal penalties, low. level waste, bot, sec.10,92 Stat. 2951 ns amended by (b) A p6rson who violates paragraph Nuclear materials, Reporting and Pub. L h,so:w M. aun Stat. 3123. (a)(1) or (a)(2) of this section may be recordkeeping mquiroments, Waste (42 U.S.C. 58511. Section 30.34(h) also issued subject to enforcoment action in treatment and disposal {" jsam njdj2 accordance with the procedures in to 8 1 2 9 10 CFR Port 70 soc.187,68 Stat. 955 (42 U.S.C 22371. CFR Part 2, subpart IL

2. Section 30.1 is revised to rond as (c) For the purposes of paragraph Criminal punalties, llazardous rollows:

(a)(1) of this section, deliberate materials transportation, Material misconduct by a person means an control and accounting, Nuclear $ 30.1 Scope. Intentional act or omission that the materials, Packnging and containers, This part prescribes rules applicable person knows: Radiation protection, Reporting and '9 all persons in the United States (1) Would cause a licensee, certificate ruordkeeping ro<pdrements Sciemtific governing domestic licensing of of registration holder or applicant to be a equipment Security measures, Special byproduct material under the Atomic in violation of any rulo, mgulation,or nuclear material Energy Act of 1954, as amended (68 order; or any term, condition, or

a ..( 51840 Federal Registe'r'/ Vol. 61, No.194 / Friday, October 4,1996 / Proposed Rules limitatlon, of any license issued by the, subcont ractor, components, equipment, 2132,2133,213'4,2135,2201,2232,2233, 4 Commission; of materials, or other goods or services, 2236, 2239, 2282h sace. 201, as amended. 202,206,88 Stat.1242, as amended,1244, (2) Constitutes a violation of a that relate to a licensee's or applicant's 1246 (42 U.S.C 5841,5842,5843). requirement, procedure, instruction, activities subject to this part, that they Section 50.7 also issued under Pub. L 95-contract, purchase cruer, or p6licy of a may be individually subject to NRC sec 1,0 o2 Sta sampded 28 licensee, certificate of registration enforcement action for violation of 60 g, 2 2, 2 holder, applicant, contractor, or 540.10. U.S.C 5851). Section 50.10 also issued under l cubcontractor.

8. Section 40.10 is revised to read as secs.101,185,68 Stat. 936,955, as amended follows:

(42 U.S.C 2131,2235): sec.102. Pub. L 91-f PART 32-SPECIFIC DOMESTIC 190,83 Stat. 853 (42 U.S.C 4332). Sections LICENSES TO MANUFACTURE OR S 40.10 Deuberate miaconduct. 5413,50.54(dd), and 5C 103 also issued TRANSFER CERTAIN ITEMS (a) Any licensee, applicant for a under sec.108,68 Stat. 939, as amended (42 CONTAINING BYPRODUCT MATERIAL license, employee of a licensee or U.S.C 2138). Sections 50.23,50.35,50.55, applicant; or any contractor (including a and 50.56 also issued under sec.185,68 Stat. 955 (42 U.S.C 2235). Sections 50.33a,50.55a

4. The authority citation for Part 32 supplier or consultant), subcontractor, and Appendix Q also issued under sec.102, continues to read as follows:

g g Authority: Secs. 81, tal,182,183,68 Stat. su nt ac o of a y n e or go, 3 'a d 5 I au der 935,948,953,954, as amended (42 U.S.C applicant for a license, who knowingly sec. 204,88 Stat.1245 (42 U.S.C 5844). 2111,2201,2232,2233); sec. 201,88 Stat, provides to any licensee, applicant, Sections SR$8,5&91 and 50.92 also issued ' 1242, as amended (42 U.S.C 5841). contractor, or subcontractor, any under Pub. L 97-415,96 Stat. 2073 (42 5, Section 32,1(b) is revised to read as components, equipment, materials, or U.S.C 2239). Section 50.78 also issued under sec.122,68 Stat. 939 (42 U.S.C 2152). folloks: other goods or services that relate to a Sections sn80-5a81 also issued under sec. licensee's or applicant's activities in this 184,68 Stat. 954, as amended (42 U.S.C $ 33.1 Purpose and acope. part, may not: 2234). Appendix F also issued under sec. (1) Engage in deliberate misconduct e e e 68 Stat 955 (42 U.S.C W37) 187'O. Section 50.1 is revised to read asj (b) The provisions and requirements that causes or would have caused,if not t of this part are in addition to, and not detected, a licensee or appilcant to be in rollows. in substitution inr other requirements violation of any rule, regulation, or i of this chapter, in particular, the order; or any term, condition, or 4 50.1 Basis, purpose, and procedures ~ provisions of Pad 30 of this chapter limitation of any license issued by the .ppiscable, apply to applications, licenses, and Commission; or The regulations in this part are c:rtificates of registratio subject to this (2) Dollberately submit to the NRC, a Promulgated by the Nuclear Regulatory

part, licensee, an applicant, or a licensee's or Commission pursuant to the Atomic ap licant's contractor or subcontractor, Energy Act of 1954, as amended (68 PART 40-DOMESTIC LICENSING OF in motion that the person submitting Stat. 919), and Title 11 of the Energy SOURCE MATERIAL the information knows to be incomplete Reorganir.ation Act of 1974 (88 Stat.

6. The authority citation for Part 40 or inaccurate in some respect material to 1242), to provide for the licensing of continuos to read as follows:

the NRC production and utilization facilities. (b) A person who violates paragraph This part also gives notice to all persons Authority: Secs.62,63,64,65,81,161, (n)(1) or (a)(2) of this section may be who knowingly provide to any licensee, 182,183,186,68 Stat. 932. 933,935,948, 953,954,955, as amended, seca.11e(2),83, subject to enforcement action in applicant, contractor, or subcontractor, 84, Pub. L 95 604,92 Stat. 3033, as amended, accordance with the procedures in 10 components, equipment, materials, or 3039, sec. 234,61 Stat. 444, as amended (42 CFR Part 2, subpart it other goods or services, that relate to a U.S.C 2014(e)(2),2092,2093,2094,2005, (c) For the purponds qf paragraph licensee's or applicant's activities 2111,2113,2114,2201,2232,2233,2236'88 (a)(1) of this soction, deliberate subject to this part, that they may be 2282); sec. 274. Pub. L 86-373,73 Stat. 6 misconduct by a person means an individually subject to NRC ~ 2,Eam N.Y2I41\\46 intentional act or omission that the enforcement action for violation of 2 8 Sa 1 142 U.S.C 5841,5a42,58461: sec. 275. 92 person knows: S 50.5.

11. Section 50.5 is revised to read as Stat. 3021, as amended by Pub. L 97-415,96 (1) Would cause a licensee or Stat. 2007 (42 U.S.C 2022).

applicant to be in violation of any rule, follows: Section 40.7 also issued undet Putt L 95-regulation, or order; or any term, $50.5 Deliberate misconduct. 601, sec,10,92 Stat. 2951 as amended by condition, or limitation, of any license (8) Any Hwns",8PP cant for a li Pub. L 102-486, sec 2002,106 stat. 3:23. (42 issued by the Commission; or "*"88* omp oyee f a Hansw or ll.S C sn51). Section 40.31(g) also issued (2) Constitutes a violation of a applicant; or any contractor (including a under sec.122. 68 Stat. 939 (42 U.S.C 2152).- re9uirement, Erocedure, instruc. tion, supplier or consultant), subcontractor, Section 40.46 also issued under sec.184,68 contract, purchase order, or pohcy of a employee of a contractor or Stat. 954,as amended (42 U.S.C 2234). Section 40.71 also issued under sec.187,68 Ilconson, applicant, contractor, or subcontractor of any licensee or Stat. 955 (42 U.S.C 2237). subcontractor, applicant for a license, who knowingly

7. Section 40.2 is revised to read as PART 50-OOMESTIC LICENSING OF provides to any licensee, applicant, follows:

PRODUCTION AND UTILIZATION contractor, or subcontractor, any FACILITIES components, equipment, materials, or H2 Scope' other goods or services that relate to a lhcept as provided in h$ 40.11 to 9.The authority citation for Part 50 licensoe's or applicant's activities in this 40.14, inclusive, the regulations in this continues to read as follows: part, may not: (1) Engago in deliberate misconduct p trt apply to all persons in the United Aubrityh 102,103,104,105, M t. that caoses or would have caused, if not-States.This part also gives notice to all 182,183,186,189,68 Stat 936,937,938, persons who knowingly pmvide to any 948,953,954,955,956, os amended, sec. detected, a licensee or applicant to be in heensee, applicant, contractor, or 234,83 Stat.1244, as amended (42 U.S.C violation of any rule, regulation, or

Itd:r:1 Regi:ter / Vol. 61 No lui / Friday, October 4,1990 / Proposed liulos 51841 order; or any tenn, condition, or.. combined licenso, subject to this part, PART 60-DISPOSAL OF HIGH LEVEL limhation of any liumse iss.ued by the that they may im individually subject to RADIOACTIVE WASTES IN GEOLOGIC Commission; or NRC enforcornent action for viointion of REPOSITORIES (2) Dellboratet submit to the NRC, a S 52,10. liconwe, an upp icant, or a licensoo s or

15. The authority citation for Part 60 applicant a contractor or subcontractor'

14. Section 52.9 is added following continues to read as follows:

S 52 H and reads as foHows: infonnation that the porson submitting Authority: Sea 51; 53. 62, tia,65,81,16 t, the infonnation knows to im incompleto 5 52.9 Deliberate misconduct. 182,183,68 Stat. 929,930,932. 933,935, or inaccurato in some respect material Io 94 s. 953,954, as anmnded (4211.S C 207 t, g* (a) Any holder of, or applicant for, an 2073,2092,2093,2095.2111,2201,2232, (b) A person who violates parugraph oorly rdlo permit, standard design 2233L secs. 202,206,88 Stat.1244,1246 (42 (a)(1) or (a)(2) of this s1ction may bo cortification, or combined license, ll.SC 5842,5846h secs 10 and 14, Pub. L subject to enforcement action in including its employcos, contractors, 95401,92 Stat. 2951 (42 ti.Sc 2021u und acconlance with the procedurer in 10 subcontractors, or consultants and their 585th sm 102, Pub. L 91-190,83 Stat. 853 omP oYem, who knowingly 3irovidos to (42 RSn 4332h secs. n4,121. Pub.1. un t CFR Part 2, sahpart 11. '" d 4 25,90 Stat. 2213g. 2228, as unwnded (4 2 "I ppg .N I (c) For the purpows of paragraph t1SE 10134,101411 and Pub. l 102-186, (a)(1) of this sortion, deliberato sito permit, standard design sec. 2902,100 Stat. 3123 (42 ti.SC 58511 misconduct by a person means an intentional act or omission that the "I

16. Section 60,1 is revised to road as g

of any of them, equipment, motorials, or follows: (1) Vo r use a licenwo or ""*'E"*'""'"" "r that relate Io the $ 60.1 Purposs and scope, a holder o, or applicant for. a a applicant to bo in violation of any rule, regulation, or ordor; or any term an ondy site perm t, standard desl " This part prescrilms rules g3verning H condition, or limitation, of any license certif cati n c r combined license in this dm licensing ofIho U.S. Department of Energy to receive and possess souva, issued by the Commission; or P8", Hu'y "* special nuc! car, and byproduct material (2) Constitutos a vi..ation of a (1) Engage in delilmratn misconduct at a gooh>gic repository operations area requiremont, promdure, instruction, that causes or would havo caused, if not sited, constructed, or operated in contract, purchase. order, or policy of a det0CI'd a holder of, or applicant for, accordance with the Nuclear Wasto licensoo, applicant, contractor, or 8""arly sito permit, standant design Policy Act of 1982. This part does not subcuntractor, cortification, or combined license, to be apply to any activity licensed under in violation of any rule, regulation, or another part of this chapter.This part PART 52-EARLY SITE PERMITS; order; or any term, condition, or also gives notice to all persons who STANDARD DESIGN limitation of any permit, certification or knowingly provido to any licensco, CERTIFICATIONS; AND COMBINED licenso issued by the Commission; or applicant, contractor, or subcontractor, LICENSES FOR NUCLEAR POWER Pt. ANTS (2) Doliberately mibmit to the NRC, e components, equipment, materials, or hohler of, or applicant for, an onrly site other goods or services, that rotato to a 12~ The authoritI citation for Part 52 ponnit, standard design certification, or licensoo's or applicant's activities continuos to toad as follows., combined licenso, or a contractor, subject to this part, that they may im Authority: S,ws.103, th4,161,182,183, subcontractor, or consultant of any of individually subject to NRC 186,1n9,68 Stat. U36,948,953,954,955, them information that the person enf rcement action for violat,on of i 956, as amnuded, sec 234,83 Stat.1244, as submitting the information knows to bo S 60,11. ameralud (421J.S C. 2133. 2201, 2232,2233, incomplete or inaccurate in some

17. Section 60.11 is revised 1o road as 2236,2239. 2282h seca. 2nt,202. 200,88 respect materhal to the NRC.

Stat.1242,1244,1246, as amendist (42 II,S.C. (b) A person who violates paragraph 5 60,11 Deliberate misconduct. 584 t, 584 2, 5846). (a)(1) or (a)(2) of this section may ho (a) Any licensoo, applicant for a

13. Section 52.1 la revismi to road as subjtst to enforcement action in license, employee of a licensoo or follows:

occordance with the proceduros in to applis. ant; or any contractor (including a CFR part 2, subpart H. supplier or consultant), subcontractor, $ 5M Supe. This part governs the issuance of early (c) For the purposes of paragraph employee of a contractor or sito permits, standa-d design (a)(1) of this section, deliborato subcontractor of any licensee or certifications, and combined licensos for misconduct by a person means an applicant for a licenso, who knewingly nucloar power facilitics licenwd under intentional act or omission that the providos to any licensoc opplicant, sectton 103 of t04b of the Atomic person knows: contractor, or subcontractor, any l'norgy Act of 1954, as amonded (G8 (t) Would cause a holder of, or components, equipment, matorials, or Stat. 910), and Title !! of the Fnergy applicant for, an oorly sito ponmt, oder goods m services that relato to a Roorganization Act of 1974 (88 Stat. standant design codifienHon, or hcenm's oWphant's activities in this 1242). This part also given notico to all combined license, to be in violatm.n of part, may not: (1) F,ngago in dehimrato misconduct persons who knowingly provido to any any rule, n gulaHon, or onjer; or any holdor of or applicant for an early nito term, condition, or limitatmn, of any that causos or wouhl have caused, if not permit, standard design cortification, or hconse issued by the Commission; or detected, a licensoo or applicant to im ie violation of any rule, regulation, or combined licenso, or to a contractor, (2) Constitutes a violation of a ordor; or any turm, condition, or subcontractor, or consultant of any of requirement, proced ure, inst ruct ion, limitation of any licenso issuel by the them, components, equipment, contract, purchase order, or policy of a Commission: or materials, or o* hor goods or services, holdor of, or applicant for, an early sito (2) Doliterately submit to the NRC, a that relato to the activities of a holder permit, cortified design or combined licensen, on applicant, or a liwnsoo's or of or applirant for an early she permit, licenso, or a contractor or subcontractor applicant's contractor or subcontractor, standant design cortification, or of any of them, information that the person submitting \\

i 51842 Federal Register / Vol. 01, Nii.'194 / Friday, October 4,1990 / Proposed Rules l the information knows to be incomplete (1) Engage in deliberate misconduct persons who knowingly provide to any or inaccurate in some respect material to that causes or would have caused,if not licensee, applicant, contractor, or the NRC detected, a licenwie or applicant to im in subcont ractor, components, equipment, ) (b) A person who violates paragraph violation of any rule, regulation, or materials, or other goods or services, (zj(1) or (a)(2) of thh section may im order; or any tunn, condition, or that relate to a licensee's or applicant's subject to enforcement action ist limitation of any license issuod by the activities subject to this part,inat they eccordance with the procedures in to Commission; or may be individually subject to NRC CFR part 2, subpart il (2) Deliberately submit to the NRC, a enforcement action for violailon of (c) For the purposes of paragraph licensee, an applicant, or a licensee's or S70.10. (z)(1) of this section, deliberate applicant's contractor m subcontractor,

23. Soction 70.10 is revised to read as j

misconduct by a person means an information that tho person submitting follows: l intentional act or omission that the the information knows to be incomplete I 70.10 Douberate misconduct. person knows: or inaccurate in some respect maternal to (a) Any licensee, applicant for a (1) Would cause a licensee o the NRC cpplicant to le in violation of * 'ule, (b) A person who violates paragraph license, employee of a licensee or regulation, or order; or any term, (c)(1) or (a)(2) of this section may be applicant; or any contractor (including a supplier or consultant), subcontractor, condition, or limitatmn, of any license subject Io enforcement action in employee of a contractor or lasued by the Commission; or accordance with the proceAres in 10 (2) Cemstitutes a violation of a CFR part 2, subpart II. subcontractor of any licensee or requirement, procedure, instruction, (c) For the purposes of paragraph applicant for a license, who knowingly contract, purchase order, or policy of a ~ (a)(1) of this section, deliberate provides to any licensee, applicant, licennec, applicant, contractor, or misconduct by a person means an contractor, or subcontractor, any subcontractor, intentional act or omission that the components, equipment, materials, or person knows: other goods or services that relate to a - PART 61-LICENSING (1) Would cause a licensee or licensee's or applicant's activities in this REQUIREMENTS FOR LAND applicant to be in violation of any rule, part, may not: DISPOSAL OF RADIOACTIVE WASTE regulation, or order; or any term, (1) Engage in deliberate misconduct condition, or limitation, of any license that causes or would have caused, if not ta,The authority citation for Part 01 continues to read as follows: issued by the Commlulon; or detected, a licensee or applicant to be in (2) Constitutes a violation of a violation of any rule, regulation, or 18h,1 StE9 l' requirement, proceduro, instruction, order; or any term, condition, or c ntract, purchase order, or policy of a %nitation of any license issued by the 2 3 s c53,954, as amended (42 U.S.C 2073,2077, 2092,2093,2005,21It,2201,22.12,2233): licensee, applicant, contractor, or Commir.s:on: or occa. 202,20s, sa Stat. 1244,124h (42 U.S.C subcontractor, (2) Deliberately submit to the NRC, a 584';,5846h secs 10 and 14, Pub. L 95401, licensee, en applicant, or a licensee's or 92 Stat. 2951 (42 U.S.C 2021a and 5851) and PAFtT 70-DOMESTIC LICENSING OF applicant's contractor or subcontractor, IW L 102-480, sec 2902,106 Stat. 3123,(42 SPECIAL NUCLEAR MATERIAL information that the person submitting the information knows to be incomplete UNIDI,1, paragraph (c)is revised 21, The authority citation for Part 70 or inaccurate in some rt spect material to to read as follows: continues to rood as follows: the NRC. 9 61,1 Purpose and acope, Authority: Secs. 51,53,161,182,183,68 (b) A person who violates paragraph. Stat. 929,930,948,953,954, as amended' (a)(1) or (a)(2) of this section may be 8' 4*4 A (c)This part also gives notice to all 'Mi{82951,2952,'295 4 U S'C 71 subject to enforcement action in accordance with the procedures in 10 l>ersons who knowingly provide to any 2073, 2201, 2232, 2233, 2282, 2297f): secs, !censee, applicant, cautractor, or 201, as amended,202,204. 206,88 Stat. CFR part 2, subpart it tubccmtractor, components, equipment, 1242, as ameaded, 1244,1245,1248 (42 (c) For the purposes ol' paragraph materials, or other goods or services, U.S.C 5841,5842,5845,5846). (a)(1) of this section, deliberate that mlate to a licensee's or applicant's sections 70.1(c) and 70.20a(b) elso issued misconduct by a person means an under secs. 135,141. Pub. L 97-425,96 Stat. Intentional act or omission that the cctivilles subject to this part, that they 2232,2211 (42 U.S.C 10 55,10MI). Section, person knows: may be individually subject to NRC enforcement action for vlotation of Q7* 8", Oj*gl I'uo' - (1) W uld cause a licensee or '8 3 33 c applicant to be in violation of any rule, 70,2 t(g) also issued under sec.122,68 Stat.

20. Section 61.0h is revisud to read as 939 (42 U.S.C 21521. Section 70.31 also regulation, or order; or any term, condition, of limitation, of any license IONOW8 Issued under sec. 57d, fu L 93-377,88 Stat. 475 (42 U.S.C 20771. Sections 70.30 and issued by the Commission; or 70.44 also lasued under sec.184. 68 Stat. 954, (2) Constitutes a violation of f.

$ 61.9t> DeHberate misconduct. (a) Any licensee,apph. cant for a as amended (42 U.S.C 2234). Section 70.61 requirement, procedure, instruction, licente, employee of a licensee or - also issued under secs. 186,187,68 Stat. 955 contract, purchase order, or policy of a applicant; or any contractor (including n (42 U.S.C 2236,2237). Section 70.63 adso licensee, applicant, contractor, or~ supplier or consultant), subcontractor, k sued under sec.104,68 Stat. 939, as subcontractor. tmployee of a contractor or amended (42 U.S C 2138). eutrontractorof anylicenscoor

22. Section 70.2 is revised to read as PART 71-PACKAGING AND applicant for a license, who knowingly follows:

TRANSPORTATION OF RADIOACTIVE pmvides to any licensee, applicant, MATERIAL rontractor, or subcontractor, any $ 70.2 Scope. components, equipment. matodals, or Except as provided in $$ 70.11 to 24.The authorP; citatlon for Part 71 other goods or rervices that relate to a 70.13, inclusive, the regulations in this continues to read as follows: licensee's or applicant's activities in this part apply to all persons in the United Authority: Sea 53. 57, t>2. 63. 81,161, . part, may not: states. This part also givea notice to all 182.183 se Stat. 930.932,933,935,948

l-l Federtl Register / Vol. 01. No,.194 / Friday, Octobor 4,1996 / Propose'd Rules 51843 953. 954, as amended, sec. 1701,106 Stat. app!! cant for a license certificate or 209h 117(al 141(hh Pub. L 97-425,96 Stat 2951,2952,2953 (42 USC 2073,2077,20L quality assurance program appmval, or 2202,2203,2204,2222,2224 (42 U S C 2093,2111,2201,2232,2233,2297fL secs. a licensee's, ap licant's, certificate W01, m37ta),10161(h)L Subparts K and L 201, as amended,202,206,88 Stat.1242, as are a m issed under sec.133,98 Stat. 2230 amended,1244, t 246 (42 tl.S C 584 t, saa 2' Imlder,a m qua ity assurance pmgram (42 U.S C 10153) and sec. 218(a),90 Stat. $846). approval holder,s contracto' or 2252 (42 ll.S.C 10t98). subcontractor,infoimation that the

28. Section 72.2 is amended by I

" 7,'[,"{'j,[ygh7,g"d"' ""C 3"', person submitting the information adding a new paragraph (f) to road as knows to be incomplete or inaccurate in follows:

25. Section 71.0 is amended by some respect material to the NRC.

adding a new paragraph (f) to read as (c) A person who violates paragraph $ 72.2 Scope, follows: (b)(1) or (b)(2) of this f.ection may be subjort to enforcement action in (f) This part also gives notice to all $ 71.0 Purpose and scope' accordance with the procedures in 10 persons who knowingly provide to any CFR part 2, subpart it licensee, certificate holder, applicant for (f) This part also gives notice to all (d) For the purposes of paragraph a license or certificato, contro ' tor, or ' ' ' " ' * ' " ' " " * ' " " ' " * " ' " " ' " " ' (')(""'""""""'"'" ricensee, cortificate hol' der, quality misconduct by a person means an materials, or other goods or services i assuranco program approval holder, intentional act or omission that the that relate to a licensee's, certificate applicant for a license, curtificate, or person knows: holder's, or applicant's activities subject quality assurance program approval or (1) Would causo a licensee, certificate to this part, that they may be i to e contractor, or subcontractor of any holder, quality assurance program individually subject to NRC j o' aem, coinponents, equipment, approval holder or applicant for a enforcement action for violation of materials, or other goods or services, license, certificate, or quality assurance $ 72.12, ) that relate to a licensee's, certificate program approval to be in violation of

29. Section 72.12 is revisod to read as holder's, or a plicant's activities subject any rule, reguhtion, or order; or any follows:

1o this art, t ut they m be term, condition, or limitation, of any indivi ually subject to RC license or certificate issued by the $ 72.12 Delit >erate misconduct. i enforcement action for violation of Commission; or (a) Any licensee, certificate holder. l S 71,11. (2) Constitutes a violation of a applicant for a license or certificate, 1

26. Section 71.11 is added to read as requirement, procedure, instruction, employee of a licensee, certificate follows:

contract, purchase order, or policy of a holder, or applicant for a license or licensee, applicant, contractor, or cedificate; or any contractor (including $ 71,11 Deut >erate misconduct. subconkacton a suppner or consultant) or -(a) This section applies to any-subcontractor, employee of a contractor (1) Licensee; PART 72-LICENSING or subcontractor of any licensee, (2) Certificate holder; REQUIREMENTS FOR Tl!E certificate holder, or applicant for n (3) Quclity assurance program INDEPENDENT STORAGE OF SPENT license or certificate who knowingly appreval holder; NUCLEAR FUEL AND HIGH LEVEL provides to any licensee, cmtificate (4) Applicant for 6 license, certificate, RADIOACTIVE WASTE holdet, applicant for a license or or quality assurance program approval; certificate, contractor, or subcontractor, m (5) Contractor (including a suppher or 27 The authority citation for Part 72 any components, materials, or other consultar;t) or subcontractor, to any continues to read as follows: goods or services that relate to a person identified in paragraphs (a)(1) Autt'ority: Secs. 51,53,57,62,63,65,69, licensee's, certificate holder's, or through (a)(4) of thbt section; or 81,161,182,183,184,186,187,189,68 Stat. applicant's activities subject to this part, (6) Employee of any person identified 929,930,932,933,934,935,948,953,954-may)not*(1 Engage in deliberate misconduct in paragraphs (a)(1) through (a)(S) of Ihis 955, as amended. sec. 234,83 Stat. 444, a5

section, amended (42 UAC 2071,2073,2077,2092, that causes or would have caused, if not (b) A person identifled in paragraph 2093,2095,2099,2111,2201,2232,2233, detected, a licensoo, certificato holder or (a) of this section who knowingly 2234 8i 373 is Sid aa'as

$d ($ Pub.opplicant to be in violation of any rule, provides to any entity, listed in paragraphs (a)(1) through (a)(5) of this UAC 202 hc. 20h sended. 202,200, regulation, or order; or any term, 88 Stat.1242, as amended, 1244, 1246 (42 condition, or limitation of any license or section, any components, materials, or U S C 5841,5842,5846h Puk L 95-601,sec. Certificate issued by the Commission; or other goods or services that relate to a 10,92 Stat. 2951 (42 USC 585t h sec.102, (2) Delibe ately submit to the NRC, a licensee's, certificate holder's, quality Pub. L 91-190,83 Stat. 853 (42 UAC 4332h licensee, a certificate holder,an assurance program approval holder's or secs.131,132,133.133,137,141 Puk L opplicant for a license or certificate, or applirant's activities subject to this part 97-425,96 Stat. 2229,2230,2232,2241, sec.' h (kensee's, applicnnt's, or certificate may not: 148 Puk L 10n-203,101 Stat.133&235 (42 holder's contractor or subcontractor. (1) Engage in deliberate misconduct USC 10:51,10152.10153,10155.10157' that causes or would have caused,if not m et, m 68h information that the person submitting the information knows to tm incomplete detected, a licensee, certificate holder, or inaccurate in some respect material Io quality assurance program approval Section 72.44hd also issued under acs-the NRC. holder, or any applicant to be in 142th) amt 14PL (dL Pd _1on-203,101 (b) A person who violates paragraph violation of any rule, re ulation, or 2j6 (42 U (a)(1) or (a)(2) of this section may be a 33 - 33 order; or any term, com ition, or ) limitation of any license, certificate or issued under sec.189 tio Stat. 955 (f 2 UAC WMt to enfomenwnt acdon in 223uh sm:.134. Puk L 97-425, tm S,at. 2.'10 accordance with the procedures in to ap(pmval issued by Ihe Commission; or (42 USC 10154). Sectim 7:; 9h(d) siso CFR part 2, subpart 11.

2) Deliberately submit to the NRC, a i : sued under sec.145(gt Puu. L 100-203 (c) For the purposes of paragraph licensee, a certificate holder, quality 101 Stat.133n-235 (42 U.s C ;ot65(g1h a)(1) of this section, deliberate

^ assurance program approval holder, nn Subpart I also issued under secs. 2(2),2(15), misconduct ny a person means an

?. ~ t 51844 Federal Register / Vol. 61 No.194 / Fridsj, October 4,1990 / Proposed Rules plentional act or omission that the

32. Section 110.7b la revised to road 2073). Section 150.15 also lasued under secs.

person knows: as follows: 135,141, PuttL 97-425,96 Stat. 2232,2241 (42 U.S.C it.15% 10161), Section 150.17a (1) Would cause a licenson, certificate holdor or applicant for a llo nse or $ 110R Ddberate misconduct. ulso issued under sec.122,68 Stat. 939 (42 US C 2152) Section 15a30 alsu issued tmrtificate to bn in violation of any rule, (a) Any licensee, applicant for a under soc. 234,83 Stat. 444 (42 U.S.C 2282l regulatiott, or order; or any term, licom.e, employee of a licensee or

34. Section 150.2 is revised to road as ccmriiiis or limitation, of any license applicant; or any contn.ctor (including a I"Il *8; or certifk.sto inued by Ihe Commission; supplier or consultant), subcontractor.

or omployee of a contractor or $ 150.2 Scope. (2) Constitutes a violation of a subcontractor of any licensoo or The regulations in this part apply to requiremont, proced ure, inst ruction, applicant for a license, who know'ngly all States that have entered into contract, purchase order, or policy of a provides to any licensoo, applicant, agreements with the Commission or the limnsee, applicant, contractor, or contractor, or subcontractor, any Atomic Energy Commission pursuant to subcontractor, components, equipment, matet tels, or subsection 274. b of the Act This part other goods or services that relato to a agso gives n tace to agg ersons who p PART 116-EXPORT AND IMPORT OF licensee's or applicant's activities in this P" '"I NUCLEAR EQUIPMENT AND I> art ma not applicnnt for a license or cortificate' or (AATERIAL (1) Engage in deliberate misconduct P' '"I' 9"*II'Y ***"'""C' P' 8* *fity ' j ujses {w uid avo aused if iot j holder of a certificate or qua

30. The authorit; :ltation for Part 110

,p assurana pr gram appr val,c ntractor, continues to road as follows: violation of any rule, regulation, or r subonhactor, any mmponents, AutimrHy: Secs. 51,53,54,57,63,64,65, order; or any term, condition, or equipment, materials, or other goods or 81,82,103,104.109.111,120,127,128,t29, limitation of anY cense issued 5 the services that relate to a licensee,s. li Y 161,181,182,183,187,189,68 Stat. 929, Commissbn; or cortificata holdor's, quallty assurance 930,93,932,933,936,937,948,953,954. (2) Dollboratel submit to the NRC, a oM Mdn's m 955,050, as amended (42 U.S.C 2071,2073, 2074,2077,2092-2095,2111,2112,2133, licenseo, nn opp icant, or a licensee s or ,EIg; ,6 activities subject to this part. 2134, 2139, 2139a, 2141, 2154 -2158, 2201, ap licant a contractor or subcontractor, y may b inMuah su@ M 2231-2233,2237,2239); sec. 201,88 Stat. In rmation that the 9erson submitting NRC enforcement action for violation of 1242, as amended (42 U.S.C 5841; sec 5 the information knows to be incomploto $$ 30.10,40.10,70.10 and 71.11, Pub. L 101-575,' 04 Stat 2835 (42 U.S.C or inaccurate in some respect material to 2243L the NHC nated et Rockville, Maryland, this 30th day Sections 110.1(b)(2) and 110.llb)(3) also (b) A person who violates paragraph of September,199s. Issued under Pub. L 06-442,93 Stat. 710 (22 (a)(1) or (a)(2) of this section may bo For the Nuclear Regulatory Commission. U.S.C 24o3). Section 110.11 also lasued bj t to enforcement action in William M Illit, 75(4] su ec accordance uith the procedures in to acting sa:retary of the cornmission. an1a 5 en 57 8 tat U.S.C. 2074). Section 1 to 27 also issued CFR part 2. subpart B. IFR Doc,94-25494 Filed 10-3-96; 8.45 s ml (c) t'or the purposes of paragraph under sec. 309(a) Pub. L 99-440. Section t 10.50(b)(3) also issued under sec,123,92 (a)(1) of this section, deliberate Stat.112 (42 U.S.C 2153). Section 110.51 misconduct by a person means an also lasued under sec.184,68 Stat. 954, as intentional act or omission that the DEPARTMENT OF THANSPORTATION any uled(42 U.S.C 2234). Section 110.52 person knows: al-Issued under sec.186,68 Stat. 955 (42 (1) Would cause a licenseo of ^* " U.N.C 2236). Sections 110.80-110.113 also applicant to bo in violation of any rule, tssued under 5 U.S.C 552,554. Sections regulation, or order; or any term. 14 CFR Chapter 1 110.13n-110.135 also issued under 5 U.S.C condition, or hmitation, of any li':enso 553. Sections 116.2 and 110.42 (a)(9) also issued under sec. 903, Pub. L 102-496 (42 issued by the Commission; or (Summary Not ce No PR-06-6] U.S.C 2151 et seq.). (2) Constitutos a violation of a Petition for Rutemeldetg; Summary of """*'d*'*h"Q,",o[gfy"g'g, I Petitions Received; Dispositions of

1. Section i10,1 is revised to read as

'89 Petitions issued licensee, applicant, contractor, or $ 110.1 Purpose and scope, subcontractor, AGENCY: Federal Aviation (a) The regulations in this part PART 1SO-EXEMPTIONS AND Action: Notice of petitions for proscribe licensing, on forcomant, and CONTINUED REGULATORY rulemaking roccived and of dispositions rulemaking proceduras and criteria, AUTHORITY IN AGREEMENT STATES under the Atomic Energy Act, for the im P*hs' AND IN OFFSHORE WATERS UNDER export of nuclear equipment and SECTION 274 suemAM: Pursuant to FAA's rulemaking material, as set out in 55110.8 and _ 110.9, and the import of nuclear 33.The authority cltation for Part 150 provisions governing the application, exluipment and material, as not out in continues to road as follows: Processing, and disposition of peutions for n;lemaking (14 CFR Part 11), this $ 110.9a. This part also gives notice to Audmchy: Sec. le t, sa Stama, as notico contains a summary of certain all porncas who knowingly provido to ( any bconsoo, applicant, contractor, or [2Ot2 a$ petitions requesting the initiation of 88 S t 24 . subconL ictor, components, equipment, amended (42, 'l 5841). rulemaking proceduros for the mdterials, or other goods or services, amendmt.nt of specified provisions of 3M'i 1 Uu A1 8 68 2 So the Federal Aviation Regulations and of that redato to a licensee's or applicant's ts dema.s or wdhdrawals of certain activition subject to this part, that they Stal. 923. 935, as r nded, secs. 23,84,92 , may be individually auhject to NRC Stat. 3033,3o39 (4, U.S.C 2014e(2). 2 tit, petitions previously roccived.The enforcemmit action for violation of 2813,2114). Section 150.14 also issued under purpose of this notlce is to improve tho $ 110.7h. sec. 53,68 Stat. 930, as amended 142 U.S.C public's awareness of, and participation j {

r The Honorable Lauch Faircloth, Chairman Octobei 1' 1996

• + ~

S'ubcoashittee on Clehn Air, Wetlands, Private M Property and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

Enclosed for the inforsation of the subcommittee is a copy of a notice of a proposed rJ1e dealing with deliberate misconduct to be published in the [tdtnl Reaister. The Nuclear Regulatory Comission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to aix categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of. compliance issued under 10 CFR Parts 71 and 72; (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 asturance program approvals issued under 10 CFR Part 71; and (G) the er..ployees, contractors, subcontractors and consultants of the first five -categories of persons, so that they may be subject to enforcement action. The Deliberate Misconduct Rule was originally issued in 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate conduct that causes or would have caused, if not detected, a licensee, certificate holder, or a)plicant to be in violation of any of the Commission's requirements. The NRC >elieves that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for public comment. Sincere y, Dennis . Rathbun, Directer Office of Congrea sional Affairs ~ nclosure: Federal Register Notice cc: Senator Bob Graham 0151lllHIl0lli RDS Sub r/f NJensen, OGC RDS r/f Staggett, NMSS Central f/r: MLesar, ADM GCant, OE LRiani

• See previous concurrence BReamer, 0GC DOCUMENT NAME:0:\\DIPALO\\DE N CN\\DMC-CONG.0R2 MA '

D:RESAl OCA w 0FC:

• RDB:DRA m RDB:DRA_

A Y SBahadu k [diiorris DMorrisk DRathb'un NAME: ADiPalo:ayw DATE:- 05/30/96 % /'1/96 7 / 7 /96 I/l7/96 /c // /96 COPf: Yes - No Yes - No Yes - No Yes - No Yes - No 0FFICIAL RECORD COPY (d (RES File Code) RES A4Hi2224r p w 03

A The Honorable Dan SchaefCr, Chairman October 1, 1996 Subcommittee on Energy and Power Committee on Commerce United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a proposed rule dealing with deliberate misconduct to be published in the f_tden1 Reaister. The Nuclear Regulatory Commission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to six categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (3) applicants for, or holders of, early site permits, standard design certificaticns, 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, so that they may be subject to enforcement action. The Deliberate Misconduct Rule was originally issued in 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate conduct that causes or would have caused, if not detected, a licensee, certificate holder, or a)plicant to be in violation of any of the Commission's requirements. The NRC >elieves that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by Such persons, the categories of persens cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for pubite comment. Sincere y, Den fK. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice cc: Representative Frank Pallone D111RIRVIIDHi RDS Sub r/f NJensen, 0GC RDS r/f Staggett, NMSS Central f/c MLesar, ADM GCant. OE LRiani BReamer, 0GC

• See previous concurrence DOCUMENT NAME:0:\\DIPALO\\DELMISCN\\DMC-CONG.0R2~

OFC:

• RDB:DRA d RDB:DilA_

6 jo:dRk [ D:REShl) OCA,, NAME: ADiPalo:ayw SBahadu f nBhErrYs DMorris[n DRa[hIifn' DATE: 05/30/96 8 / 7 /96 E/7/96 (/,) 7/96 /0 // /96 l. COPYi Yes - No Yes - No Yes - No Yes - No Yes - No 0FFICIAL RECORD COPY (RES File Code) RFS

o. t' ~ [7590-01-P) NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72, 110, and 150 RIN: 3150-AF35 Deliberate bisconduct by Unlicensed Persons AGENCY: Muclear Regulatory Commission. ACTION: Proposed rule. The Nuclear Regulatory Commission (NRC) is proposing to revise its

SUMMARY

regulations to extend the Deliberate Misconduct Rule to six categories of applicants for NRC licenses; applicants for, or holders of, persons: 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 i known to be incomplete or inaccurate and in some respect material to the NRC, or it may involve conduct that causet or would have caused, if not detected, a licensee, certificate ho', der, or. applicant to be in violation of any of the Commission's. requirements. OZ - 0] Yf ,$4.1/ 2 2GJJ'f-g u

.i- ) DATES: The comment period expires [ insert date 75 days from publication). Comments received after this date will be considered if it is practical to do so, but the Comission is able to assure consideration only for coments l received on or/ before this date. i ADDRESSES: Comments may be sent to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. Attn: Docketing and Service Branch. -Hand deliver connents to 11555 Rockville Pike, Maryland, between 7:45 am and 4:15 pm on federal workdays. FOR FURTHER INFORMATION CONTACT:- Tony DiPalo, Office of Nuclear Regulatory l Research, U.S. Nuclear Regulatory Comission, Washington, DC 20555-0001, i telephone (301) 415-6191, e-mail,ajd@nrc. gov. SUPPLEMENTARY INFORMATION:

Background

r On August 15,1991 (56 FR 40664), the Comission adopted changes to NRC regulations that established the Deliberate Misconduct Rule found at 10 CFR 30.10, 40.10, 50.5, 60.11, 61.9b, 70.10, 72.12, and 110.7b, which applies to .any licensee or any employee of a licensee; and any contractor (including a P supplier or consultant), subcontractor, or any employee of a contractor or l subcontractor, of'any licensee.. In addition, 10 CFR 150.2 makes the rule applicable to persons conducting activities under reciprocity in areas of NRC -jurisdiction, (see.10 CFR 150.20). The Deliberate Misconduct Rule placed 2 y .. _,.... =.. _ ..m

i licensed and unlicensed persons on notice that they may be subject to r enforcement action for deliberate misconduct that causes or would have caused, if not detected, a licensee to be in violation of any of the Comission'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 Comission, but who are otherwise subject to the Comission'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 i certifications, or combined licenses for nuclear. power plants issued t under 10 CFR Part 52; i (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 erployees, contractors, subcontractors, and consultants of the first.five categsries of-persons. To ensure t~nat these persons are subject to enforcement action for l wrongdoing under the Deliberate Misconduct Rule, the NRC is proposing to e~. tend the rulc,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. 3 7

The Commission does not believe that it is necessary to add the Deliberate Mtsconduct Rule to 10 CFR Part 54 because licensees applying to renew their operating licenses for nuclear power plants'are already subject to this rule as licensees under 10 CFR Part 50. Similarly, the Commission does not-believe that it is necessary to add the Deliberate Misconduct Rule to 10 CFR Part 55 because applicants for, and holders of, reactor operators licenses are already subject to this rule as employees of 10 CFR Part 50 licensees. Moreover, licensed operators are subject to all applicable Comission. requirements (see 10 CfR 55.53(d)) and thus a finding of deliberate misconduct is not required to take enforcement action against a licensed reactor operator. Discussion 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 promulgateo rules concerning completeness and accuracy of information that specifically apply to information provided to the Commission by a licer.see 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.ll(a), 76.9(a) and 110.7a(a)). Similarly, paragraph (b) of each of-these sections, which deals with notification to the Comission of significant safety information, refers to applicants as well as . licensees. Violation of these provisions can result in denial of the license 4 V l

f application, civil enforcement action against a licensee, or, if appropriate, i t referral to the Department of Justice for consideration for criminal i 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 -j address app,icants 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. incomplete or inaccurate informattori has potential safety significance, whether submitted before or after a license, certificate, permit, or approval j 1 has been issued. The Commission has clearly emphasized the importance of I 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., CL1-93-14, 37 l NRC 423 (1993). The Q a m case involved a consultant to an applicant for a license who provided inaccurate information that was included in the license 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 4 or other. deliberate wrongdoing by an applicant for a license or other unlicensed persons proposed to be covered by this modification to the I Deliberate Misconduct Rule. For example, a spent fuel cask that is certified 5 [ +=i -r-w e ,e w y,

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j l l by the NRC on the basis of falsified test data could represent a threat.to j 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 l l Under the present Deliberate Misconduct Rule, a certificate h' older threat. who obtained a certificate by deliberate submittal of false information could i escape individual NRC enforcement action because the deliberate misconduct may f not have put an "NRC licensee" in violation. To effectively exercise its I authority under the AEA, the Commission needs to prevent or otherwise deter i the deliberate submittal of materially false or inaccurate information by those entities not currently covered by the rule. The NRC knows of no re;.:on why the rule should not apply to persons who deliberately submit materially incomplete or inaccurate information, whether such submittal is by or on j 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 pla:e it appears in 10 CFR Chapter I to make the rule apply to applicants for P - NRC licenses; to applicants for, and holders of, certificates of compliance 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; and.to the employees, contractors, subcontractors and consultants of all the above categories of persons. This would include, for example, a consultant j engaged by-an applicant to prepare a license application for such activities 6 l 1 3 4 e --.,,-4.-- ,,,,,,-.-,m,,, ,-n ,,,,-,,-y,g.4-.,,,ny,,-.,.s. 4.,,,,++m.,n,,,,,_,,o,vun.~ n mn.,. .,-,..n, ,,,,a,,,,w,.w.,--_

It would also as radiography, well logging, irradiation, and teletherapy. apply to a consultant preparing an application for a certificate for a spent fuel cask, or individuals conducting performance tests to support such an application. The proposed revisions to the Deliberate Misconduct Rule would appear in Section 10 CFR 30.10, 40.10, 50.5, 60.11, 61.9b, 70.10, 72.12, and 110.7b. 11.11 would be added to incorporate the rule in Part 71 and i 52.10 would be added 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 110.1(a) t.culd also be modified to reflect these revisions to the rule. The Commission would make a minor language change by altering the phrase "but for d9tection" to "if not detected" where the phrase appears in each rule, but intends no substantive change by this revision. Having this enforcement authority available will help the NRC pursue redress in cases of deliberate misconduct by unlicensed persons acting within the scope of the Commission's jurisdiction and may deter such behavior as well. 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 site permits, staadard design certificat ons, or combined licenses for nuclear power plants issued under 10 CFR Part 52; applicants for, and holders of, 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

I r i Comission's authority under the AEA to issue regulations and orders to any I 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 1611 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 possessica and use of special nuclear material, source material, l -i 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 ill of the Omnibus Appropriations Act of 1996, April 28,1996) reads 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..'.ich a license may be revoked undar 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. 8 -,, - ~. _

2 The proposed changes are made under the authority of sections 161b and i l and the above-identified licensing and certification' provisions in f 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 l 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 available for violations of such an order. In addition, criminal sanctions t 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 t 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 7 personal computer, a modem, and one of the commonly available communications 9 y ,-s, y e ysn 3-o e wiw }- ,w--- ,o-, -r

I software packages, or directly via Internet. Background documents on the I rulemaking are also available, as practical, for downloading and viewing on i 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-Communication software parameters should be set as follows: parity to

9672, none, data bits to 8, and stop bits to 1 (N,8,1). Using ANSI or YT-100 terminal emulation, the NRC rulemaking subsystem can then be accessed by Users will find

-selecting the " Rules Menu" option from the "NRC Main Menu." -the "FedWorld Online User's Guides" particularly helpful. Many NRC subsystems and data bases also have a "lleip/information Center" option that is tailored 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 t " Regulatory, Government Administration and State Systems," then selecting " Regulatory Information Hall." 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 i 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 fbil access to all NRC systems, but'you'will-not have access to'the main FedWorld system. 10

l ,~,, 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 downicad documents and leave messages, you will not be able to write comments or upload files (comments). If you contact 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 l listing all files within a subdirectory, with descriptions, is available. [ i 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 20555-000), [ -telephone (301) 415-5780; e-mail AXD3&nrc. gov. Certain documents related to this rulemaking, including comments l i received, may be examined at the NRC Public Document Room, 2120 L Street NW. (LowerLevel), 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 Agret,ent State Regulations e This rule.is designated a Division-3 matter of compatibility with i I 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 I i ,y --s e m ,,en er..,- ,r-r-

\\ changes expand applicability of the rule to include persons such as certificate holoers and quality assurance program approval holders. Such actions are addressed individually by States through each State's administrative code. Division-3 regulations are appropriate for Agreement States to adopt, but do not require any degree of uniformity between the NRC and Agreement State rules. Agreement States are not required to adopt the regulatory approach identified in Division-3 regulations. Environmental impact: Categorical Exclusion The NRC has det rmined that this proposed rule relates to enfortement 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 This proposed rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.). Existing requirements were approved by the Office of Management and Budget, approval numbers 3150-0017, 3150-0151, 1 d0-0127, 3150-0135, 3150-0009, 3150-0132, 3150-0036, and 3150-0032. 12 l l

Public Protection Notification 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 or a certificate holder c, an opplicant for a license or certificate to be in violation of the Commission'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 incomplete 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 ender 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

(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 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 licen.ie application was false and that the application had been prepared by a consultant who had provided the false information. Egg Randall C. Orem. C.0., CLI-93-14, 37 NRC 423 (1993). In this case, the NRC staff realized that under 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 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 te permits, certified design certifications and combined licenses under 10 CFR Part 52. 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 covereo by this modification to the Deliberate Misconduct Rule. For example, a spent fuel cask that is certified 14

i i 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 j data that mask a significant defect could also be a public health and safety threat. The potential for injury is serious. The NRC knows of no reason why the Deliberate Misconduct Rule should not apply to persons who deliberately submit materf ally 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 2 i license, certificate, permit, or approval. The objective of the rule is to explicitly put those persons encompassed by this modification of tb Deliberate Misconduct Rule on notice that-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, a regulation, or order issued under any one of the enumerated provisions of the i Act, or who commits a violation for which a license may be revoked. The enforcement-actions-that may be taken, including 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 tre to promulgate a modification of the Delibiate 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 alternativt. of doing nothing was rejected. - The benefits of taking enforcement action are similar to those of taking 15 i i k

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 rc alt it. enforcement action being taken against unlicensed-individuals. The cost of preparing and publishing the additional actions btyonti 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 in accordance with the Regulato < Flexibility Act of 1980. 5 U.S C. 605(b), the Commission certifies that this proposed rule, if adopted, will not have a'significant economic impact on a substantial number of small_ entities. The proposed rule would put:-(l) applicants for NRC licenses; (2) applicants for. Land 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

i of, early site permits, standard design certifications, or combined licenses issued under,10 CFR Part 52; (4) applicants for, and holders of,. certificates ~ I 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, contractor,,. subcontractors and consultants of the i first five categories of persons on notice that they are subject to the-i -i Deliberate Misconduct Rule and, therefore, are subject to civil enforcement' action if they deliberately cause ~a licensee, certificate holder, or an j 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 entities that may fall wit l sin the definition of "small entities" as set forth ~ in Section 601(3) of.the Regulatory flexibility Act; or within the definition f of "small business" as found in Section 3 of the Small Business Act, 15 U.S.C. t 632; or within the size standards adopted by the NRC on April 11, 1995 (60 FR -{ i 18344). I Backfit Analysis 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). 17

List of Subjects 10 CFR Part 30 Byproduct material, Criminal penalties, Government contracts, intergovernmental relations, Isotopes, Nuclear materials, Radiation I protection, Reporting and recordkeeping requirements. 10 CFR Part 32 Byproduct material, Criminal penalties, Labeling, Nuclear materials, Radiation protection, Reporting and recordkeeping requirements. 10 CFR Part 40 Criminal penalties, Government contracts, Hazardous materials transportation, Nuclear materials, Reporting and recordkeeping requirements. Source material, Uranium. 10 CFR Part 50 Antitrust, Classified information, Criminal penalties, fire protection, Intergovernmental relations, Nuclear power plants and reactors, Radiation protection Reactor sittag criteria, Reporting and recordkeeping requirements. 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 f 18 I

~_-. _ assessment, Protctype, 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, -Nucloar 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 materia!. 10 CFR Part 71 Criminal penalties, Hazardous materials transportation, Nuclear materials, Packa* ing and containers, Re. irting and recordkeeping requirements. 10 CFR Part 72 . Manpower training programs,. Nuclear materials. Occupational safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel. 19 AA.

10 CFR Part 110 i l Administrative practice and procedure, Classified information, Criminal penalties, Export, import, Intergovernmental relations, Nuclear materials, j Nuclear power plants and reactors, Reporting and recordkeeping requirements. Scientific equipment. 10 CFR Part 150 Criminal penalties, Hazardous materials transpcrtation, Intergovernmental relations, Nuclear materials, Reporting and recordkeeping requirements, Security measures, Source material, Special nuclear material. 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 amendments to 10 CFR Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72, 110, and 150. PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING 0F BYPRODUCT MATERIAL 1. ihe authority citation for Part 30 continues to read as fo11cws: AUTHORITY: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 953, 954, 055, 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). 20

Section 30.7 also issued under Pub. t. 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). 2. Section 30.1 is revised to read as follows: 1 30.1 Stapt. This part prescribes rules applicable to all persons in the United States governing dorstic licensing of byproduct material under the Atomic Energy Act of 1954, as amended (68 Stat. 919), and under title 11 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 i 30.10. 3. Section 30.10 is revised to read as follows: 1 30.10 Deliberate miscontts1 (a) Any licensee, certificate of registration holder, applicant for a license or certificate of registration, employee of a licensee, certificate of 21

registration holder or applic:ent; or ary contractor (including a supplier or consultant), subcontractor, einployee of a contractor or subcontractor of any licensee or applicant for a license or certificate of registration, who knowingly provides to any licensee, applicant, certificate holder, contractor, or subcontractor, any components, equipment, materials, or other goods or services that relate to a licensee's, certificate holder'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, certificate of registration holder, or applicant to be in violation of any rule, regulation, or order; or any term, condition, or limitation of any license issued by the Connission; or (2) Deliberately submit to the NRC, a licensee, certificate of registration holder, an applicant, or a licensee's, certificate holder'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 Fart 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, certificate of registration holder 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 22

(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 llCENSES TO MANUFAC1URE OR TRANSFER CERTAIN ITEMS CONTAINING 8YPRODUCT MATERIAL 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). 5. Section 32.l(b) is revised to read as follows: 1 32.1 Purpose and scope. l (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 OF SOURCE MATERIAL 6. The authority citation.for Part 40 continues to read as follows: AUTHORITY: Secs, 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. lle(2), 83, 84, Pub. L. 95-23

604, 92 Stat 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, i 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 tc read as follows: I 40.2_QLggg. 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 licensee, applicant, contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensc 's or applicant's. activities subj?ct to. this'part,-that they may be individually subject to NRC enforcement action for violation of i 40.10. 24 P e. v. --m y 1er3- -r m t-s --w- ->r

l i 8. Section 40.10 is revised to read as follows: P i 40.10 Deliberate misconduct. e (a) Any licensee, applicant for a-license, employee of a licensee or applicant; or any contractor (including a supplier or consultant), subcontractor, empioyee 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 be subject to enforcement action in accordanca 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: i ~ 25 J m n w y-~w -p--

_~ l (1) Would cause a licensee or applicant to be in violation of any rule,. r regulation, or order; or any term, condition, or limitation, of any license issued by the Commission; or (2) Constitutes a violction of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or subcontractor. l PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIE 1 9. The authority citation for Part 50 continues to read as follows: AUTHORITY: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 Stat. 936, 937, 938, 948, 953, 954, 455, 956, as amended, sec. 234, 83 Stat. 1244, as amended (42 U.S.C. 213.' ?l33, 2134, 2135, 2201, 2t32, 2233, c 36, 2239, 2282); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846). Section 50.7 also issued under Pub. L. 95-601, sec.10, 92. Stat. 2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat 3123, (42 U.S.C. 5851). Section 50.10 also issued under secs. 101, 185, 68 Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, kub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(Jd), and 50.103 also issued under sec. 108, 68 Stat. 939, as amended (42 C i,C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also_ issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections 50.33a, 50.55a and Appendix Q also issued under. sec.102, Pub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued under sec. 204,;88 Stat. 1245 (42 U.S.C. 5844). Sections 50.58, 50.91, and 50.92 also issued under Pub. L. 97-415, 96 Stat. 2073 (42 U.S.C. 2239). Section 50.78 25

alsotissued under sec.,122, 6's Stat. 939 (42 U.S.C. 2152).- Sections 50.80 - 50.81 also issued under sec,184, '68 Stat. 954, as-amanded (42 U.S.C. 2234). 1 - Appendix F -also. issued under sec.187, 68 Stat. 955 (42 U.S.C 2237).- 10. Section 50.1 is revised to read as follows: i'50.1 Basis. ournose. and procedures anolicable. LThe regulations in this part are promulgated by the Nuclear Regulatory 1

Commission pursuant to the Atomic Energy Act of 1954, as amended (68 Stat.-

1919), and Title 11 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 other goods or services, that relate to a licensee's or applicant's activities i subject to this part, that they may be individually subject to NRC enforcement action for violation of i 50.5. 11. Section 50.5 is revised to read as follows: ~ l 50.5 Delibernie misconduct. (a) Any lii an**:, asnlicant for a icense, employee of a licensee or applicant; or any conierator (including a supplier or consultant), ~ subcontractor, employee of a contractor or subcontractor of any licensee or applicant for's license, who knowingly provides to any licensee, applicant, contractor, or subcontractor, any components, equipment, materials, or other 27 +----n a n..

..+ _goodstorcservices.that relate to a licensee's'or_apL icant's activities-in l this.part,imay 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,f'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 0.3 violates paragraph (a)(1) or (a)(2) of this s-. tion 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 '..c.. .: tion, deliberate misconduct by a person means an intentional act or natsti m that the perscn knows:. (1) Would cause a licensee or applicant to be in violation of any rule, i vgetion, or order; or any. term, condition, or limitation, of any license iawej by the Connission; or (2) Constitutes a violation of a requirement, procedure, instruction,- contract, purchasn order, or policy of a licensee, applicant, contractor, or subcontractor.

PART 52--EARLY SITE PERMITS; STANDARD DESIGN CERTIFICATIONS; AND COMBINED LICENSES r0R NUCLEAR POWER PLANTS i I?. Ihe authority citation for Part 52 continues to read as folloss: AUTHORITY: Secs. 103, 104, 161, 182, 183, Ild, 189, 68 Stat. 936, 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat. 1244, as amended (42 U.S.C. 2133, 2E01, 2232, 2233, 2236, 2239, 2282); secs. 201, 202, 205, 88 Stat. 1242, 1244, 1246, as amended (42 U.S.C. 5841, 5842, 5846). .13. Section 52.1 is revised to read as follows: I 52.1 Scope. .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 early 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, subject to this part, that they may be individually subject to NRC enforcement action for viol etten o, 5 52.10. 29 v

14. Section 52.9 is added following 1 52.8 and reads as follows: 1 52.9 Deliberate misconduct. (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 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 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, mq' 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 5e in violation of any rule, regulation, or order; or any term, condition, or limitation of any permit, certification or license issued by the Commission; or (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 consultent 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

__(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 holder of, or applicant for, an early site permit, standard design certification, or combir.ed 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 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 l 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 585T);-sec. 102, Pub. L. 91-199, 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), 31

16.--Section 60.1 is revised to read as follows:

-l 60.1 Purnose and scoat. This-part prescribes rules governing the licensing of the U.S. Department of Energy to receive and possess source, special nuclear, and byproduct material ht a geologic repository operations area sited, constructed, or operated in accordance with the Nuclear Waste Policy Act of-1982. 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 o+.5er 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 i 60,11. 17. Section 60.11 is revised to read as follows: I-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 contr_ctor or subcontractor of any licensee or applicant ~ for a license, who knowing 1. provices 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

4 regulation, or order; or any term, cor.dition, 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 ce 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 8. (c) For the purposes of paragraph (a)(1) of this section, deliberate misconduct by a person me:as 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 61--LICENSING REQUIREMENTS FOR LAND DISPOSAL OF RADI0 ACTIVE WASTE

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

5842, 5846);; secs. 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).: 19. In 5 61.1, paragraph (c) is revised to read. as follows:- ~ l _t 61.1 Purnose and scoce. (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 subject to NRC enforcement action for violation of 161.9b. 20. Section 61.9b is revised to read as follows: 1 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 lor services that relate to a licensee's or applicant's activities in Lthis part,Lmay 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 4. 4

r r_egulation.- 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 b itting the information knows to be incomplete or inaccurate in some . person su m 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 tne 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 Corraission; or -(2) Constitutes a violation of a requirement, procedure, instruction, contract, purchase order, or policy of a licensee, applicant, contractor, or subcontractor. PART 70--00MESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

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

AUTHORITY:-Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 951, 954, as amended, sec. 234, 83 Stat.-444, as amended, sec. 1701, 106 Stat. 12951, 2952, 2953 (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282, 2297f); secs. l 35

U; 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 Section 70.21(g) also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152).- 70.31 also issued under sec. 57d, Pub. L. 95-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued.under sec. 184, 68 Stat. 954, as- - amended (42 U.S.C. 2234). 'Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under sec. 108, 68 Stat. 939, as ame..ded (42 U.S.C. 2138). 22. Section 70.2 is revised to read as follows: 6 70.2 Scoce. Except_ as provided in il 70.11 to 70.13, inclusive, the regulations in L 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, i' contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's or applicant's activities subject to L . this part, that they may be individually subject to-NRC enforcement action for violation of 6 70.10. L f 36

f 23. Section 70.10 isErevised to read as follows: ~ ~ l'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), subcontracter, 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 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

. _. ~ - _(1) Would cause a licensee or applicant 1to be in violation of any rule, l 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 71--PACKAGING AND TRANSPORTATION OF RADI0 ACTIVE MATERIAL '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, 9??, 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, 202, 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: 1 71.0 Puroose and scoce. 4 (f) This part also gives notice to all persons who knowingly provide to t any-licensee, certificate holder, quality assurance program approval holder, applicant for a license, certificate, or quality assurance program approval or 38

.f. to a contractor.or subcontractor of:any of them,'. components, equipment,- materials,forLother goods"or services, that relate to a. licensee's, certificate holder's, or applicant's activities Tsubject to_ this part that; they may -be1 individually ~ subject to NRC enforcement-action for violation of - 'l 71.11. 26. Section 71.11 is added to read as-follows: I 71.11' Deliberate misconiW11 - (a) This section applies to any--- (1) Licensee; (2) Certificate holder;- (3) Quality. assurance program approval holder; (4) Appitcant for a license, certificate, or quality assurance program approval; (5) Contractor (including a supplier or consultant) or subcontractor, to any person identified in paragraphs (a)(1) through (a)(4) of this section; or (6) employee of any person identified in paragraphs (a)(1) through '(a)(5)'of this section. (b) A persan identified in paragr ph (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 w a n

(1) Engage.in deliberate misconduct that causes or would have caused, -if;not detected, a licensee, certificate holder, quality assurance program approval holder, or any applicant to be in violation of any. rule, regulation, or order; or any term. condition, or limitation of any license,- certificate or t approval issued by the Commission; or (2) Deliberately submit to the NRC, a licensee, a certificate holder, quality assurance program approval holder, an applicant for a license certificate or quality assurance program approval, or a licensee's, . applicant's, certificate holder's or quality assurance program approval holder's contractor or subcontractor, information that the person submitting the information knowa to L: incomplete or inaccurate in some respect material 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 8. (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 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 o clation of any rule, regulation, 3r e order; 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 ' 'icensee, applicant, contractor, or ' subcontractor.. 40

z. PART-72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SP NUCLEAR FUEL =AND HIGH-LEVEL RADIDACTIVE WASTE j

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

1 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 i 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). i 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, 68 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), pus. L. 100-203, 101 Stat. 1330-235 (<2 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 1 p. v = w w-

3 e t 28. Section 72.2.is amended by_ adding a new paragraph (f) to read as j follows: - t 72.2 Scone. (f) This part also gives notice to all persons who knowingly provide to any licensee, certificate holder, applicant for a license or. certificate, contractor, or subcontractor, 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 I 72.12. 29. Section 72.12 is revised to read as follows: E 72.12 Deliberate misconduct. (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

I

J l

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 license or certificate,, or a licensee's,J applicant's,Jor. certificate 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. (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 purposesL 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; or any term, condition, or limitation, of any ' cense 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. PART 110--EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL L

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, 126, 127, 128, 129, 161, 181, 182, 183, 187, 189, 68 Stat. 929, 930, 931, 932, 43

d e i 933, 936, 937,_948, 953, 954.z955, 956, as amended (42'U.S.C. 2071, 2073, ^ - 2074,7 2077, 2092-2095, 2111, 2112, 2133, 2134,=2139, 2139a, 2141, 2154-2158, - 2201, 2231-2233,=2237,:2239); sec. 201,-88 Stat.- 1242,~as_ amended-(42 U.S.C. 5841; sec 5 Pub. L. 101-575,-104 Stat 2835 (42 U.S.C.2243). 6 Sectionsil10.l(b)(2) and 110.l(b)(3).also issued under Pub. L. 96-92,~93 i Stat? 710 (22 U.S.C. 2403). Section 110.11'also issued under sec. 122,.68 i Stat.-939 (42.U.S.C. 2152) and' secs. 54c and 57d.. 88 Stat. 473, 475 (42 U.S.C. 2074). Section 110.27 also issued under sec. 309(a), Pub. L, 99-440. - Section _110.50(b)(3) also issued under sec.123, 92 Stat.142 (42 U.S.C. - 2153). Section 110.51 also issued under sec. 184, 68 Stat. 954, as_ amended (42 U.S.C. 2234). Section 110.52 also issued under sec.186, 68 Stat. 955 (42 U.S.C. 2236). Sections-110.80-110.113 also issued under 5 U.S.C. 552,. 554. [ Sections 110.130-110.135 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: 4 i 110.1 Purcose and scone. (a) The regulations in this part prescribe licensing, enforcement, and rulemaking procednres and criteria, under the Atomic Energy Act, for the export of nuclear equipment and material, as set out in 59 110.8 and 110.9, and thefimportLof' nuclear equipment and material, as set out in l 110.9a. This part also gives notice to all-persons who knowingly provide to any licensee;: applicant, contracter, or subcontrcctor, components, equipment, ! materials,; or other goods.or _ services,- that relate to a licensee's or 4 44 1 4 ,,e m t -er,e

o applicant's activities ~ subject to this part that they'may be ' individually subject to NRC enforcement. action for violation of I 110.7b.. 32. Section:110.7b is revised to read as follows: 1 110.7b 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 an/ licensee or applicant for a license, who knowingly providts to any licensee, applicant, l contractor, or subcortractor, 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 h?ve 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 1 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. i (b) A person who violates paragraph (a)(1) or (a)(2) of this:section 1 may-be subject to enforcement action in accordance with the procedures-in -l 10 CFR part;2, subpart'B.. .i 45 t

t '(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 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN AGREEMENT STATES AND IN OFFSH0RE WATERS UNDER SECTION 274 I i ~ 13 3. 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, rub.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. L2152). Section 150.30 also issued under sec. 234, 83 Stat. 444 (42 U.S.C. 2282), v 46

-= V

34. _ Section 150.2 'is' revised to read _ as follows:

- l 15012 Scone.

The regulations in this-part apply to all States that have entered-into agreements with the Commission or the Atomic Energy Commission pursuant to subsection 274b of the Act.

This part also 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 - 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 subject to NRC enforcement action for violation of Il 30.10, 40.10, 70.10 and-71.11. Dated at Rockville, Maryland, this day of , 1996, t for the Nuclear Regulatory Commission. John C. Hoyle, Secretary of the Commission. J 4 -,

j# %< e '; -' t UNITED STATES j j NUCLEAR REGULATORY COMMISSION o S WASHINGTON. D.C. 20S24001 $9..... The Honorable Lauch faircloth, Chairman Subcommittee on Clean Air, Wetlands, Private Property and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a proposed rule dealing with deliberate misconduct to be published in the [ederal Reoister. The Nuclear Regulatory Commission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to six categories of persont: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of ompliance issued under 10 CFR Parts 71 and 72; (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, so that they may be subject to enforcement action. The Deliberate Misconduct Rule was originally issued on August 15, 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate conduct that causes or would have caused, if not detected, a licensee, certificate holder, or applicant to be in violation of any of the Lommission's requirements. The NrtC believes that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information, or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for public comment. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice cc: Senator Bob Graham

The Honorable Lauch Faircloth, Chairman Subcommittee on Clean Air, Wetlands, Private Property and Nuclear Safety ~ Committee on Environment and Public Works United States Senate i Washington, DC 20510 f

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a proposed rule dealing with deltberate misconduct to be published in fadf ul Reoister. revise its regulations to extend the Deliberate Misconduct Rule to six (1) applicants for NRC licenses; (2) applicants for, or hoiders of, certificates of compliance issued under 10 CFR Parts 71-and 72; categories of persons: (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) applicar,ts 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) employees, contractors, subcontractors and consultants of the first five The categories of persons, so that they may be subject to enforcement action. 1991 (56 FR 40664). Deliberate Misconduct Rule was originally issued inDeliberate mis incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate conduct that causes or would have caused, if not detected, a licensee, certificate holder, or applicant to be in violation of any of the The NRC believes that because there may be significant safety consequences from the intentional submittal of materially Commission's requirements. persons, the categories of persons cited abcve also enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for public comment. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice Senator Bob Graham cc: DISTRIBUTIONt RDB Sub r/f NJensen, OGC RDB r/f SBaggett, NMSS Central f/c MLesar, ADM

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2 @*%y k UNITED STATES = * ~_f* [ NUCLEAR REGUi.ATORY COMMISSION 2 WASHINotoN, D.C. 2066 0 0001 O The Honorable Dan Schaefer, Chairman Subcommittee on Energy and Power-Committee on Commerce United States House of_ Representatives. Washington, DC 20515

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a- -proposed rule dealing with deliberate misconduct.to be published in the Federal Reaistir. The Nuclear Regulatory Commission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to six J ategories-of persons: (1) applicants for_ NRC licenses; (2) applicants-for, or

holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (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, so that they may be subject to enforcement action.

4 The Deliberate Misconduct Rule was originally issued on August 15, 1991 (56 FR 40664). Deliberate misconduct may involve providing information that i is known to.be incomplete or inaccurate _in some respect material to the NRC, or it may involve deliberate conduct that causes or would have caused, if not detected, a licensee, certificate holder, or applicant to be in violation of 1 any of the Commission's requirements. -The NRC believes that because there may be significant safety consequences from the intentional s_ubmittal of materially incomplete or inaccurate information, or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's~ rules regarding-deliberate misconduct. The Commission is issuing the proposed rule for-public comment. Sincerely, Dennis K. Rathbun, Director-Office of Congressional ~ Affairs J

Enclosure:

- Federal Regjster Notice - .cc:L Representative Fernk Pallone

The lionorable Dan Schaefer, Chairman ' Subcommittee on Energy and Power Committee on Comnerce 1 United States House of Representatives -l Washington, DC 20515 1

Dear Mr. Chairman:

l Enclosed for theLinformation of-the subcommittee.is a copy of a notice of a proposed rule dealing _with deliberate misconduct to be published in the The Nuclear Regulatory Commission (NRC) is proposing to Federal _Reaister. ~ revise its regulations to extend the Deliberate Misconduct Rule to six categories of persons:. (1) applicants for NRC licenses; (2). applicants for, or holders of,.cer tificates of compliance issued under 10 CFR Parts 71 and 72; (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 1 l 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 i categories of persons,.so that they may be subject to enforcement action.- The 1991 (56 FR 40664)'. Deliberate Misconduct Rule was originally issued in -Deliberate misconduct.may involve providing information that is known to be-incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate' cc-duct that causes or would have caused, if not detected, a licensee, certificate holder, or asplicant to be in violation of any of the The NRC 3elieves that because tf1ere may be Commission's requirements. significant safety consequences from the intentional submitR1 e f materially incomplete or inaccurate information or other deliberate wror Sing by.such persons, the categories of persons cited above also should be.wbject to enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for public comment. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice .cc: Representative Frank Pallone DISTRIBUTI0h R08 Sub r/f ~NJensen,_0GC RDB r/f SBaggett, HMSS Central f/c MLesar,-ADM-GCant OE LRiani-BReamer, OGC y

• See previous concurrence DOCUMENT NAME:0:\\0lPALO\\0ELMISCN\\DMC-CONG.0R2 0FC:
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r y -34.- Section 150,2_is revised to read as follows: _ -l 't 150.2 Seone. The regulations in this part apply to all-States that have entered into agreements with the Comission or the Atomic Energy Comission pursuant to-subsection-274b of the Act. This part also_ gives notice to'all persons who knowingly provide to any licensee, applicant for a license lor certificate or quality assurance program approval, holder of a certificate or quality assurance program approval, contractor, or subcontractor, any components,. equipment, materials, or other goods or services that relate to a licensee *s, - rtificate holder's, quality assurance program approval holder's or applicant's activities-subject to this part, that they may be ir.dividually_ subject to NRC enforcement action for violation of 66 30.10, 40.10, 70.10 and 71.11. -Dated at Rockvilb, Maryland, his day of , 1996. For the Nuclear Regulatory Commission, John C. Hoyle, Secretary of the Commission. i 47 'W .. 1 3 ?

l i Concressional letters Packaae i

a %47 UNITED STATES - )r-

• i.

NUCLEAR REGULATORY COMMISSION g. jp W ASHINoToN, D.C. 2066b0001" '2 o%,...../ The Honorable Lauch Faircloth, Chairman Subcomittee on Clean Air, Wetlands, Private Property and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

Enclosed for the information of the subcomittee is a copy of a notice of a-proposed rule dealing with deliberate misconduct to be published in the The Nuclear Regulatory Comission (NRC) is proposing to federal Reaister. revise its regulations to extend the Deliberate Misconduct Rule to six categories of person :--(1) applicants for NRC licenses; (2) applicants for, or holders of, certif! cates of ompliance issued under 10 CFR Parts 71 and 72; (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 fir. j categories of persons, so that they may be subject to enforcement action. The Deliberate Misconduct Rule was originally issued on August 15, 1991 (56 FR 40664). Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or _it may involve deliberate conduct that causes or would have caused, if not detected, a licensee,. certificate holder, or applicant to be in violation of any of the Comission's requirements. The NrtC believes that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate.information, or other deliberate 1 wrongdoing by such persons,.the categories of persons cited above also should be subject to enforcement action under the Comission's rules regarding deliberate misconduct. The' Comission is issuing the proposed rule for public comment. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal _ Register Notice cc::. Senator Bob Graham'

4 The Honorable Lauch f aircloth, Chairman Subcommittee Cn Clean Air Wetlands, Private PrCperty and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a proposed rule dealing with deliberate misconduct to be published in the federal Reaister. The riuclear Regulatory Commission (NRC) is propo*ing to revise its regulations to extend the Deliberate Misconduct Rule to six categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CfR Parts 71 and 72; (3) applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants issued under 10 applicants for, or holders of, certificates of registration CFR Part 52; (4) FR Parts 30 and 32: issued under 10 C (5) applicants for, or holders of, quality assurance program approvals issued under 10 CFR Part 71; and (6) the i employees, contractors, subcontract 9rs and consultants of the first five The categories of persons, so that they may be subject to enforcement action. (56 FR 40664). Deliberate Misconduct R'J1e was originally issued in 1998 Deliberate misconduct may involve providing informattori that is known to be incomplete or inacc'Jrate in some respect material to the NRC, or it may involve deliberate condst that causes or would have caused, if not detected, a licensee, certificate nolder, or applicant to be in violation of any of the The NRC believes that because there may be -Commission's requirements. significant safety consequences from the intentional submittal of meterf ally incomplete or inaCurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for public comment. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

federal Register Notice cc: Senator Bob Graham BSTRituTION: ROR Sub r/f NJensen, OGC RDB r/f 58aggett, NMSS Central f/c MLesar, ADM GCant, OE Lt.;ani

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p uo,,k u UNITED STATES .. j NUOLEAR REGULATORY COMMISSION i f WASHINoToN, D.C. M%S4001 s,, *... + The Honorable Dan Schaefer, Chairman Subcommittee on Energy and Power Committee on Commerce United States House of Representatives Washington, DC 20515

Dear Mr. Chairman:

Enclosed for the information of the subcommittee is a copy of a notice of a proposed rule dealing with deliberate misconduct to be published in the' Federal Reoister. The Nuclear Regulatory Commission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to six categories of persons: (1) applicants for NRC licenses; (2) applicants for, or - holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (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 assurar,se program approvals issued under 10 CFR Part 71; and (6) the employees, contractors, subcontractors and consultants of the first five categories of persons, so that they may be subject to enforcement action. The Deliberate Misconduct Rule was originally issued on August 15, 1991 (56 FR 40664). Deliberate misconduct may involve providing information that a is known to be incomplete or inaccurate in some respect material'to the NRC, or it may involve deliberate 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. The NRC believes that because there may be significant safety consequences from the intentional submittal of materially incomplete or inaccurate information, or other delit

• ate wrongdoing by such persons, the categories of persons cited above also should-be subject to enforcement action under the Commission's rules regarding deliberate misconduct.

The Commission is issuing the proposed rQ1e for public comment. Sincerely, Dennis _K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Nctice cc:- Representative Frank Pallone E u

The Honorable Dan Schaefer, Chairman Subcomittee on Energy and Power Comittee on Lomerce United Stries House of Representatives Washington, DC 20515

Dear Mr. Chairman:

Enclosed for the information of the subcomittee is a copy of a notice of a proposed rule dealing with deliberate mise nduct to be published in the l The Nuclear Regulatory Lommission (NRC) is proposing to Federal Racister. revise its regulations tc extend the Deliberate Misconduct Rule to six categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (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 The categories of persons, so that they may be subject to enforcement action. 1991 (56 TR 40664). Deliberate Misconduct Rule was originally issued in Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respect material to the NRC, or it may involve deliberate cc-duct that causes or would have caused, If r.Jt duected, a licensee, certificate holder, or applicant to be in violation of any of the The NRC believes that because there may be Comission's requirements. significant safety consequences from the intentional submittal of materially incomplete or inaccurate information or other deliberate wrongdoing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct. The Commission is issuing the proposed rule for public comment. Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Federal Register Notice cc: Representative Frank Pallone ((ISTRIBUTION: RDB Sub r/f NJensen, OGC RDB r/f SBaggett, NMSS Central f/c MLesar, ACM GCa',t, OE LRiani RReamer, 0GC

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6 ,0:68k f D:RESEl) OCA SBahadu [ aBMrls DMorris[n DRathbun NAME: ADiPalo:ayw DATE: 05/30/96 8 / 7 /96 N/7/96 (/l)/96 / /96 COPY: 'Yes'- No Yes - No Yes - No Yes - No Yes - No l OFFICIAL RECORD COPY (RES Flie Code) RES e

r c ?Ub1fc Announcement {2 cop y

NRC Amending Requirements Governing Deliberate Misconduct by Unlicensed Persons The Nuclear Regulatory Commission adopted changes to its regulations [ that established the Deliberate Misconduct Rule, which took effect September 16, 1991. However, through an oversight, the rule failed to address a number of categories of persons who engage in activities within the NRC subject matterjurisdiction. To correct this deficiency in the regulations, the NRC is proposing to revise its regulations to extend the Deliberate Misconduct Rule to apply to six categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; (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, so that they may be subject to enforcement action. Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some respec+..nterial 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 NRC. requirements. The NRC believes that because there may be significant safety consequences from the intentional

r submittal of naterially incomplete or inaccurate information or other deliberate wrongdoing by such person:, these persons should be subject to enforcement action under existing NRC rules regarding deliberate misconduct. 4,

I i Commission SRM dated 9/11/96 I L}}