ML20207B639
| ML20207B639 | |
| Person / Time | |
|---|---|
| Issue date: | 11/25/1986 |
| From: | Fonner R NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| To: | Serpan C NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| Shared Package | |
| ML20206T154 | List: |
| References | |
| FRN-52FR1292, RULE-PR-30, RULE-PR-40, RULE-PR-50, RULE-PR-61, RULE-PR-70, RULE-PR-72 AC16-2-25, NUDOCS 8612160152 | |
| Download: ML20207B639 (3) | |
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UNITED STATES AC/6- k i . 8(
g NUCLEAR REGULATORY COMMISSION
$ j WASHINGTON, D. C. 20655
- +., ...../ nov ss nas MEMORANDUM FOR: Charles Z. Serpan, Jr., MEBR Office of Nuclear Regulatory Research FROM: Robert L. Fonner Acting Assistant General Counsel for Rulemaking and Fuel Cycle Office of the General Counsel
SUBJECT:
FINAL RULE: amendments to 10 CFR PARTS 30, 40, 50, 61, (
. 70, and 72 REQUIRING LICENSEES TO NOTIFY NRC 0F CASES OF BANKRUPTCY FILING This is to advise you that the General Counsel has (.oncurred in the subject rule with the understanding that the attached substitute text revising the introduction to the backfit analysis and the backfit deter-mination will be used.
f =W Robert L. Fonner Acting Assistant General Counsel for Rulemaking and Fuel Cycle Office of the General Counsel
Enclosure:
Substitute text, 2 pages cc: Frank Cardile, RES
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Substitute text to replace last paragraph on p. 8 of Enclosure A and intrec'.uctory paragraph immediately following the heading. 5.1 Backfit Analysis Factors, on p. 9 of Enclosure B.
j' Bechfit Analysis Factors A
10 CFP. 50.109 (50 FR 38037, September 20, 1985) requires that an analysis be performed for backfits which the Commission seeks to impose on
- power reactor licensees. This rule requiring notification of bankruptcy the modification (If or addition to systems, does not require ". . .
- structures, components, or design of a facility; or the design approval or manufacturing license for a facility; or the procedures or organization i
{ required to design, construct or operate a facility." The factors listed in 1
10 CFT. 50.109(c), however, have been used to analyze the rule's impact i
since the rule does modify a licensee's reporting responsibilities and 10 CFR f
50.54(f) indicates that new information requests should be evaluated to determine whether the burden to be imposed on respondents is justified in view of the potential safety significance of the issue to be addressed in the
. requested information.
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- Substitute text to replace Backfit Analysis Determination on p. 11 of Enclosure A and page 11 of Enclosure B. ,
Backfit Analysis Determination Based on the analysis of the factors as presented above, the Commission has determined that the new reporting requirer ents imposed by this rule have been adequately justified, namely the burden to be imposed is justified in view of the potential safety significance of the issue to be ,
addressed in the requested information, and that the rule should be promulgated for the following reasons. The rule is considered warranted in order to provide the Commission sufficient notice so that it can take steps j
to prevent a decrease in the level of protection consider.id available under current regulations. The rule is also considered to aave resources in ,
bankruptcy circumstances. By reason of the rule, there is some, albeit small, potential for reduction in public and occupational exposure. The action required by this rule is administrative, resulting in no installation, downtine, or construction costs and no effect on plant or operational r
complexity. The burden on industry and NRC is minimal, and in fact this action would probably result in a net reduction in NRC resource expenditures. This action is justified for non-power reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory l Analysis (Section 6.0), and imposing it for reactor plants also provides for consistency in the regulations.
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MEMORANDUM FOR: Victor Stello, Jr.
Executive Director for Operations FROM: Eric S. Beckjord, Director
.0ffice of Nuclear Regulatory Research
SUBJECT:
FINAL RULE: AMENDMENTS TO 10 CFR PARTS 30, 40, 50, 61, 70, AND 72 REQUIRING LICENSEES TO NOTIFY NRC 0F CASES OF BANKRUrTCY FILING DISCUSSION Background. A licensee involved in bankruptcy proceedings who is experi-encing severe economic hardship may not be capable of carrying out licensed activities in a manner which protects public health and safety. In particular, a licensee involved in bankruptcy proceedings can have problems affecting payment for proper ht ,dling of licensed radioactive material and for decontamination and decommissioning of the licensed facility in a safe manner. Improper materials handling or decontamination activities can lead to spread of contamination throughout a licensee's facility and the potential for dispersion of contaminated material offsite. Cases have occurred in which licensees filed for bankruptcy and the NRC has not been aware that this has happened. NRC inspectors have found, belatedly, that licensees have vacated property and abandoned licensed material and have been unable to decontaminate their facilities and properly dispose of waste. There is no current regulation requiring licensees to notify the NRC in cases of bankruptcy filing. Notification will alert NRC to give a bankrupt licensee specific attention to ensure that radioactive materials in the licensee's possession pose no undue risk to public health and safety during and after bankruptcy proceedings.
A proposed rule on this subject was approved by you and published in the Federal Register on June 21, 1986 (51 FR 22531). The draft Federal Register r.otice for the final rule contains an analysis of connents received on the proposed rule. Only changes of an editorial nature have been made in the final rule (see Enclosure A).
Final Regulations. The final rule requires each licensee to notify the appropriate NRC regional office, in writing, immediately following the filing of a petition for bankruptcy involving the licensee under any Chapter of Title 11 (Bankruptcy) of the United States Code. The notification would include the date of the filing and the bankruptcy court in which the petition for bankruptcy was filed. No action would be required of a licensee unless and until a petition for bankruptcy is filed. When the notification is received, the regional office will assess the radiological hazard which may exist at the site and determine the appropriate action to take. In addition, Y
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7 OCT 151986 Multiple Addressees 7.
Background:
- (a) On June 21, 1986, the Connission published a Notice of Proposed Rulemaking (51 FR 22531) containing requirements for notifica-tion in the event of bankruptcy involving licensees. Specifically, the -
amendments require each licensee to notify the appropriate regional office of the NRC, in writing, in the event of the filing of a bankruptcy petition involving the licensee. A licensee would not be affected by these amendments unless and until a bankruptcy petition is filed.
The purpose of the amended regulations is for NRC to have means in place so that it is alerted and can take necessary action to deal with potential hazards to the public health and safety that may be posed by a licensee-that does not have the financial resources to properly handle licensed radioactive material or to clean up possible contamination.
During the public comment period, eight comment letters were received.
Five of the letters expressed strong support for.the proposed rule based to a large extent on problems which the commenters had experienced i with bankrupt licensees. The other three letters contained specific comments which are discussed and resolved in the Supplementary Information to the Final Rule (Enclosure A).
Based on the public connents received, there are no changes to the rule text except those of an editorial nature.
An earlier draft of the enclosed paper was circulated for Division level connents September 9,1986. Division consents received were editorial or for purposes of clarification and have been incorporated into this package, ls/ Eric S. Beckjord, Director Office of Nuclear Regulatory Research
Enclosure:
As stated
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- FCardile:h KGSteyer CZSerpan L Shao GAAr1 to DF o
Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 50.55(e), 50.59(b),
68 50.70, 50.71, 50.72, 50.73, and 50.78 are issued under sec. 1610, Stat. 950, as amended (42 U.S.C. 2201(o)).
i 16 Enclosure A 10/03/86
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- 6. Remove the authority citations following SS 50.2, 50.10, 50.21, 50.22, 50.23, 50.30, 50.33a, 50.34, 50.35, 50.38, 50.41, 50.42, 50.43, 50.44, 50.47, 50.53, 50.54, 50.55, 50.55a, 50.56, 50.70, 50.80, 50.103, and Appendices A, E, F, L, and Q.
l 7. Section 50.54 is amended by adding a new paragraph (cc) to read as follows:
S 50.54 Conditions of licenses.
A A A A A
(cc)(1) Each '.icensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapter of Title 11 (Bankruptcy) of the United States Code by or against:
(i) [A] The licensee; (ii) An entity (as that term is defined in 11 U.S.C. S 101(14)) control-ling [a] the licensee or listing the license or licent,ee as property of the estate; or (iii) An affiliate (as that term is defined in 11 U.S.C. S 101(2))
of the licensee.
(2) This notification must indicate:
(i) The bankruptcy court in which the petition for bankruptcy was filed; and (ii) The date of the filing of the petition.
PART61-LICENSINGREQUIREMENTSFORLANDDISPOS5LOF RADI0 ACTIVE WASTE 8 The authority citation for Part 61 continues to read as follows:
10/03/86 17 Enclosure A
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[7590-01]
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. 5842, 5846); secs.10 and 14, Pub. L.95-601, 92 Stat. 2951 (42 U.S.C. 2021a and 5851).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); Tables 1 and 2, SS 61.3, 61.24, 61.25, 61.27(a), 61.41 through 61.43, 61.52, 61.53, 61.55, 61.56, and 61.61 through 61.63 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b); S$61.10 through 61.16, 61.24, and 61.80 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
- 9. Section 61.24 is amended by adding a new paragraph (k) to read as follows:
6 61.24 Conditions of licenses.
A A A A A (k)(1) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapter of Title 11 (Bankruptcy) of the United States Code by or against:
(i) [A] The licensee; I (ii) An entity (as that term is defined in 11 U.S.C. S 101(14))
l controlling [a] the licensee or listing the license or licensee as property l
l of the estate; or (iii) An affiliate (as that term is defined in 11 U.S.C. S 101(2))
of the licensee.
l (2) This notification must indicate:
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[7590-01]
(i) The bankruptcy court in which the petition for bankruptcy was filed; and (ii) The date of the filing of the petition.
PART 70 - DOMESTIC LICENSING 0F SPECIAL NUCLEAR MATERIAL
- 10. The authority citation for Part 70 is revised 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, (42 U.S.C 2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 204, 206, 88 Stat.' 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).
Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat.
2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec. 184, 68 Stat. 954, as' amended (42 U.S.C. 2234).
Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 U.S.C.
2236,2237). Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 70.3, 70.19(c), 70.21(c), 70.22(a), (b), (d)-(k), 70.24(a) and (b), 70.32(a)(3), (5), (6), (d), and (i), 70.36, 70.39(b) and (c), 70.41(a),
70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3), and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C.
2201(b)); SS 70.7, 70.20a(a) and (d), 70.20b(c) and (e), 70.21(c), 70.24(b),
10/03/86 19 Enclosure A
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70.32(a)(6), (c), (d), (e), and (g), 70.36,70.51(c)-(g),70.56,70.57(b) and (d), and 70.58 (a)-(g)(3) and (h)-(j) are issued under sec. 161i, 68 Stat. 949, as amended (42 U.S.C. 2201(i); and SS 70.5, 70.20b(d) and (e),
70.38, 70.51(b) and (1), 70.52, 70.53, 70.54, 70.55, 70.58(g)(4), (k),
and (1), 70.59, and 70.60(b), and (c) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
- 11. Section 70.32 is amended by adding a new paragraph (a)(9) to read as follows:
$ 70.32 Conditions of licenses.
(a) Each license shall contain and be subject to the following conditions: ,
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(9)(i) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapter of Title 11 (Bankruptcy) of the United States Code by or against:
(A) [A] The licensee; (B) An entity (as that term is defined in 11 U.S.C. 6 101(14)) control-ling [a] the licensee or listing the license or licensee as property of the estate; or (C) An affiliate (as that term is defined in 11 U.S.C. $ 101(2))
of the licensee.
- l. (ii) This notification must indicate:
(A) The bankfoptcy court in which the petition for bankruptcy was l
filed; and (B) The date of the filing of the petition.
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[7590-01]
i PART 72 - LICENSING REQUIREMENTS FOR THE STORAGE OF SPENT FUEL i
IN AN INDEPENDENT SPENT FUEL STORAGE INSTALLATION (ISFSI) l
- 1. The authority citation for Part 72 is revised to read as l follows:
AUTHORITY: Secs. 51, 53, 57, 62, 63, 65, 69, 81. 161, 182, 183, 184, 186, 187, 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, 2282); sec. 274, Pub. L.88-273,~ 73 Stat. 688, as amended (42 U.S.C.
2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1243, 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).
Section 72.34 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).
- 2. Section 72.33 is amended by adding a new paragraph (b)(6) to read as follows:
$ 72.33 License conditions.
R A A A A (b) Every license issued under this Part shall be subject to the following conditions, even if they are not explicitly stated herein:
(6)(i) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapter of Title 11 (Bankruptcy) of the United States Code by or against:
21 Enclosure A 10/03/86 n _ . . .. - .
[7590-01]
(A) [A]'The licensee; (B) An entity (as that term is defined in 11 U.S.C. 6 101(14))
controlling [a] the licensee or listing the license or licensee as property of the estate; or (C) An affiliate (as that term is defined in 11 U.S.C. $ 101(2))
of the licensee.
(ii) This notification must indicate:
(A) The bankruptcy court in which the petition for bankruptcy was filed; and (B) The date of the filing of the petition.
A A A Dated at Bethesda, Maryland this day of , 1986.
For the Nuclear Regulatory Commission.
l Victor Stello, Jr.
Executive Director for Operations.
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REGULATORY ANALYSIS NOTICE OF FINAL RULEMAKING AMENDMENTS TO 10 CFR PARTS 30, 40, 50 61, 70, and 72 BANKRUPTCY FILING; NOTIFICATION REQUIREMENTS
- 1. STATEMENT OF PROBLEM Current NRC regulations contain requirements for issuing of licenses and the terms and conditions of those licenses concerning the design of facilities and use of material. The problem addressed in this rulemaking is that a licen-see who is experiencing severe economic hardship may not be capable of carrying i out licensed activities in a manner which protects public health and safety.
In particular, there can be problems when a licensee involved in bankruptcy pro-ceedings cannot make payments for the proper handling of licensed radioactive material and for the decontamination of the licensed facility in a safe manner.
Improper materials handling or decontamination activities can lead to the spread of contamination throughout a licensee's facility creating the potential for dispersion of contaminated material offsite. Financial difficulties also can result in problems affecting the licensee's waste disposal activities.
Instances have occurred in which licensees filed for bankruptcy and the NRC has not been aware that this has happened. Among those licensees whose financial situation has jeopardized cleanup are included the J. C. Haynes Co.,
the Pesses Co., Luminous Processes, Inc., and Allied Technology, Inc. NRC inspectors have found, belatedly, that a licensee has vacated property and abandoned licensed material or that a licensee has been unable to decontaminate his facility and properly dispose of the waste.
There is no current regulation requiring that licensees notify the NRC in cases of bankruptcy filing. Hence, the NRC has no means by which it can be made aware of these situations. This action of promulgating a final rule con-sists of amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72 which require 1 Enclosure B 10/03/86
licensees to notify the NRC in the event of the commencement of bankruptcy pro-ceedings involving the licensee. There is some urgency to proceed with this effort due to the large number of NRC licensees (greater than 8000) and the fact that a number of bankruptcies which were not reported to NRC have already occurred.
- 2. OBJECTIVE l
The objective of this action is that NRC have means in place so that it l is alerted and can take necessary action to deal with potential hazards to the public health and safety that may be posed by a licensee that does not have the resources to properly secure his licensed material or to clean up possible contamination.
- 3. ALTERNATIVES The alternatives considered in determining the need for regulation in this area are as follows:
- 1. No Action
- 2. NUREG Report
- 3. Regulatory Guide, Branch Technical Position
- 4. Rulemaking One alternative is to take no action on this matter. However, current regulations in 10 CFR Parts 30, 40, 50, 61, 70, and 72 do not address the situation of the potential health and safety implications of bankruptcy. As noted in detail above this has caused problems in the past and will likely do so in the future.
NUREG reports are a convenient means for providing information. However, NUREG reports usually contain only results of specific studies and are not suitable in this situation. Regulatory Guides or Branch Technical Positions could also be used, however, as pointed out above, there are no existing re-gulations on which,to base any guidance. The lack of standards developed from rulemaking in this area might leave any guidance open to challenge.
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Rulemaking would provide clearly implementable requirements regarding licensees' responsibility to notify the NRC in the case of a filing of a pe-tition of bankruptcy. These rules would reduce uncertainty in this area and provide for prompt action by licensees in future situations of this type with the result that NRC can take necessary action to protect the public health and safety. A formal rulemaking also has the advantage of offering the best op-portunity to allow all affected parties to provide input on the development of the rules, as well as developing specific criteria with the weight of formal rulemaking behind them. This can be accomplished with a rulemaking that ap-pears, based on the identified need, to be a relatively straightforward rule-making not involving significant resources. The proposed rule was issued by the EDO and it is expected that the final rule would also be issued by E00.
An alternative form of the rulemaking would be to combine it with related rulemaking. Currently, NRC has issued proposed rules on decommissioning of nuclear facilities and an advance notice of proposed rulemaking on financial assurance for cleanup following accidental releases. However, it would be impractical to combine these efforts because of the timing of the varying stages of these efforts and because of differences in the nature of the rule-makings. In addition, as noted above, this rulemaking addresses a specific i
topic and should be straightforward in its development and issuance.
- 4. CONSEQUENCES 4.1 Benefits and Costs 4.1.1 Benefits NRC The benefit of the rule to NRC is that it would have in place a specific requirement concerning notification of NRC that a licensee has filed a petition for bankruptcy. The rule will enable NRC to be aware of potential licensee problems in handling and disposing of radioactive materials due to severe finan-cial problems. This will provide a significant increase in NRC's inspection and enforcement capabilities in dealing with such situations thus assisting in 3 Enclosure B 10/03/86
assuring that NRC's mission of protecting public health and safety is carried out by reducing the risk of radiation exposure to the public and workers.
Details of the risk reduction are discussed below in this section under l I
"Public."
Industry Industry will benefit in that in situations of this type prompt and clear NRC actions can take place regarding materials handling and disposal. In addition the rulemaking process provides industry with an input to the decision-making regarding the issue of notification of NRC regarding bankruptcy.
Public l
The benafit to the public will be a reduced risk of potential radiation -
exposures resulting from improper handling or, disposal of radioactive wastes or facility decontamination due to the improved capability of NRC to react in a timely way to potential severe financial problems to protect public health and I safety. This reduction in risk would apply to both the general public and workers who might be involved at the facility. In instances which have occurred NRC inspectors have found substantial amounts of radioactive contamination pre-sent at the site, such as significant quantities of Am-241, (References 1 and 2), and large volumes of contaminated material equivalent to approximately 300 drums (Reference 2).
Based on these inspections, NRC has issued enforcement orders published in the Federal Register (Reference 1, 2) indicating that there was potential for dis-persal of contaminated material, that there was no reasonable assurance that sufficient measures were in place to prevent unauthorized transfer of licensed materials to unauthorized individuals or prevent the access of individuals to contaminated' areas and that there was not adequate assurance that the facilities could remain in their existing conditions without undue risk to the public health and safety.
Even with this rule there may still be contamination at the sites, however NRC's timely involvement in the situations as a result of this rule will reduce the 10/03/86 4 Enclosure B
risk of dispersal of materials and/or exposure of individuals significantly reducing the risk to both the public and workers. The absence of this rule can result in an increased risk because there would be greater potential for the dispersal of material or exposure of individuals as a result of situations similar to those identified in References 1 and 2.
Potential risk reduction for situations such as these can be estimated l based on data in reports prepared for NRC by Pacific Northwest Laboratory (PNL) l on the technology, safety and costs of decommissioning for various nuclear facilities. In particular, a report prepared by PNL on decommissioning non-l fuel-cycle nuclear facilities, NUREG/CR-1754 (Reference 4), includes information on contamination levels and radiation exposures. As indicated in Section 1 of this Regulatory Analysis, instances have occurred in which licensees have aban-doned facilities and licensed material, and as discussed above this can result in potential problems with access of unauthorized individuals to contaminated areas. HUREG/CR-1754 indicates that persons present in non-fuel-cycle facilities can be exposed to radiation resulting in dose rates of approximately 0.1 rem / hour.
It is assumed in this estimate that 3 unauthorized persons gain access to the facility for parts of 3 days during the period before NRC has become aware of the bankruptcy, resulting in exposure to the public of 5 man-rem. An additional consideration is that spread of contaminated material in the facility, as might occur if unauthorized persons gain access, could also increase occupational exposures involved in cleanup of the facility. NUREG/CR-1754 indicates that occupational expo'sure for decontamination and cleanup of a small non-fuel-cycle facility can be 40 man-rem. Larger non-fuel-cycle facilities can be on the order of 100 man-rem. The estimates are based on the facility having been run in a normal manner and efficient decommissioning occurring promptly following termination of license. As discussed above, this may not be the case for the situations of a bankrupt licensee where References 1 and 2 indicate potential for spread of contaminated material. Hence it is assumed in this estimate that, as a result of increased potential for spread of contaminated material in these situations, that the occupational exposure involved in the ultimate cleanup increases by a factor of 2 resulting in exposures of 80 man-rem for a small facility and 200 man-rem for a large facility. It is assumed that the increases in public and occupational exposures occur at only one facility which files for bankruptcy in a year. Hence, as a result of this rule being in effect and NRC 10/03/86 5 Enclosure B
receiving prompt notification of a licensee's filing for bankruptcy, it is estimated that there could be a risk reduction of 45 man-rem and possibly i
105 man-rem for a large facility.
4.1.2 Costs NRC In implementation of a final rule, no NRC activity is necessary unle2s and until a licensee submits a notification to the NRC. The amount of time spent on actually reading and docketing of the notification would be minimal. It is estimated that approximately 0.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> of NRC time would be expended in this effort and 'that approximately five notices would be submitted per year. Thus,
- the total NRC handling and processing time would be 2.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> per year. At
$60 per hour, the total cost to the Government would'be $150.
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There may be staff resources involved in taking action in response to this notification, however even in the absence of this rule, NRC would still have to react to any health and safety problems brought about by bankreotcy, hence, this rule would cause no added cost following the docketing. In fact, as noted above, a major benefit of this rule is that it would put NRC in a better reac-tive mode and reduce time involved. In past instances when licensees went bank-rupt NRC has had to expend significant resources in dealing with the problem.
This has included issuance of orders to cl6an up facilities and modify licenses, issuance of Federal Register notices, repeated inspection visits, continued headquarters and regional staff involvement in the cases, participation in the cleanup of the facilities, providing of health physics coverage, and taking possession of nuclear material. Some of these activities will still likely have to occur even if this rule is promulgated, however the benefit of this rule is that prompt identification of these situations can result in reduction in NRC resources involved in activities such as enforcement actions and meetings with a concerned public regarding contaminated sites. In addition, the absence of this rule would leave NRC in a less advantageous position to respond to these situations and could result in increased time spent resolving these problems.
10/03/86 6 Enclosure B
Based on the large number of activities which NRC may be involved with in these situations as enumerated here, the reduction in staff time as a result of having received the notification will be significantly greater than the time spent in reading and docketing the notification. In estimating the reduction in staff time, it is assumed that one less trip to the site would be necessary, resulting in a savings of one man-day. It is also estimated that because a better assessment of the situation has been made prpmptly, that one less man-day j
of work is necessary for carrying out the needed arftivities. It is estimated that these savings result in half of the bankruptr f situations which occur.
Thus, using the assumptions above of the number of submittals, the total reduc-
- tion in NRC staff time is 5 man-days per year or 40 tours. At $60 per hour, the total ;avings to the Government is $2400 per year. This overshadows the increase in cost of $150 indicated above and resul,ts in a net reduction in staff resources of $2250 per year.
Industry With regard to the impact of a final rule, there is no action required of a licensee unless and until bankruptcy petition is filed. Hence, there is no 4
impact from this rule unless bankruptcy filing occurs. Even in the event of bankruptcy, the impact of this rule on licensees is small because the United l
States Code contains requirements regarding notification of creditors of bank-j ruptcy. The requirements imposed by this rule consist of one additional notif-
- ication. The required action consists of a notification by mail to the NRC
! representing less than one-half person-hour of effort. This estimate is based on the time it would reasonably take to prepare the notification listing the location and date of the bankruptcy filing and submittal of the notification to the NRC regional office. Based on this amount of effort and using the same assumptions as above regarding the number of submittals, the total time spent by industry in submitting notifications to the NRC would be 2.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> per year.
AT $60 per hour the total annual industry cost would be $150 which is a negligible overall added cost to the industry.
7 Enclosure B 10/03/86
Public This rule should result in a potential reduction in cost to the public since in the absence of this rule the cost of cleanup of the facility may have to be paid from public funds if the licensee is bankrupt. Costs of decontamina-tion and decommissioning of small facilities that have been discussed earlier can range from $100,000 up to several million (References 2, 3). Costs of larger facilities would be higher. (Reference 4-6) In some past instances states have had to pay for the cleanup of contaminated facilities. As discussed earlier, certain cleanup activities and their associated costs will still likely occur even if this rule is promulgated. However this rule can result in reduction in cost to the public in two ways. The first way is that NRC's timely involvement will minimize the potential for spread of contamination which would result in higher costs so that even if the public does ultimately pay for cleanup at a site whose licensee is bankrupt, the costs will not increase substantially above the normal situation. The second way is that NRC's timely involvement in bank-ruptcy proceedings may result in some of the available assets of the licensee being applied to cover costs of site cleanup before funds are disbursed in the proceedings and become unavailable for cleanup.
Based on the magnitude of costs involved as noted above, the amount of reduction in cost which can result from this rule is far in excess of the cost of this rule to the industry or the public. In estimating the potential reduc-tion in cost to the public, it is assumed that as a result of increased risk of spread of contamination the cost of cleanup increases by a factor of two, result-ing in cost of cleanup of $200,000 for a small facility. It is also assumed that by being notified of the bankruptcy, NRC efforts in bankruptcy court result in 10% of the costs of cleanup being paid for from remaining licensee assets, or about $10,000. It is assumed that both of these effects occur at only one facility which files for bankruptcy in a year. Hence, as a result of this rule being in effect and NRC receiving prompt notification of a licensee's filing for bankruptcy, it is estimated that there would be a savings to the public of
$110,000 for a small facility.
i
)
10/03/86 8 Enclosure B
s
- l 4.2 Impacts on Other Requirements This action is related to proposed amendments to 10 CFR Parts 30, 40, 50, 70, and 72 on decommissioning funding and to existing requirements in 10 CFR 61 on funding of the closure of low-level waste burial sites. There is no impact on these items. Rulemaking is in progress to amend 10 CFR 50.4 regarding com- 4 munications with NRC. The action being taken here will conform with final action on 10 CFR 50.4.
! 5. BACKFIT ANALYSIS FOR POWER REACTORS l
5.1 Backfit Analysis Factors i
\
10 CFR 50.109 (50 FR 38097) requires that an analysis be performed for l backfits which the Commission seeks to impose on power reactor licensees. This rule requiring notification of bankruptcy has been analyzed based on the factors e listed in 10 CFR 50.109(c) as follows:
l (1) The objective of the amendments is for NRC to have means in place so
- that it would be alerted and would have the opportunity to take necessary action to deal with potential hazards to the public health and safety that may occur at a facility where a licensee is involved in bankruptcy proceedings. Although j
I the likelihood of utility bankruptcy is small and in most instances NRC would l
be aware of it occurring, there is a potential that NRC may not be aware of a particular bankruptcy situation involving a licensee.
(2) The amendments require a licensee to notify the appropriate regional office of the NRC, in writing, in the event of the commencement of a bankruptcy proceeding involving the licensee. A licensee would not be affected by t'hese f
L amendments unless and until a bankruptcy petition is filed.
(3) The amendments improve NRC's inspection and enforcement capabilities
[
in dealing promptly with the potential radiological consequences of a licensee's severe financial problems thus providing a benefit in protection of the public health and safety. In addition, although the level of risk to the public is l small, NRC's timely involvement can result in some potential reduction in the 9 Enclosure B i 10/03/86 i >
. y; 4,
y* ,
risk of radiation exposure by reducing the likelihood that im-proper radioactive waste handling or decontamination will occur at a facility where a licensee is involved in bankruptcy proceedings.
(4) In a manner similar to that described in (3) above, althcugh it would besmall,theamendmentsresultirjSomereductioninriskofradjologicalexpo-sure of facility employees by reducing the potential for spread of contamination in the facility and resultant occupational exposure.
facilityandthereforealsominimizeaddedc)unupcostswhich ,
could then occur. This reduction in cost can be substantial compared to the
! small cost aisociated with the notification, resulting in net savings.
(6) The amendments are administrative and hence have no safety impact of l changing plant or operational complexity.
(7). Wit,h regard to the resource burden on the NRC, no NRC activity is s
l necessary unle'ss and until a licensee submits a notification to the NRC. If a notice were submitted, the amount of time spent on actually reading and docket-
! ing of the notification would be minimal. By alerting NRC to the situation, e this rule would put NRC in a better reactive code and thereby could reduce NRC L staff time involved in activities such as necessary enforcement actions and meetings with a concerned public regarding a contaminated facility. This reduc-tion in staff time could be significantly greater than that spent in reading and docketing the notification, thus resulting in a net reduction in staff resources.
i i 2 1E 10/03/86 10 Enclosure B i k ,
(8) The amendments apply to all power reactor licensees independent of facility type, design, and age.
(9) When the proposed amendment is made effective, it will be a final
, action.
5.2 Backfit Analysis Determination Based on the analysis of the factors as presented in Section 5.1, the Com-mission has determined that this rule does not meet the backfitting requirements of 10 CFR 50.109(a)(3) namely that there be a substantial increase in overall protection of public health and safety. However, the rule is not intended to provide a substantial increase in overall protection but is considered justifi-Ible and warranted to prevent a decrease in the level of protection considered gecilable under current regulations. In addition, the rule is considered to sayy resources in bankruptcy circumstances. The Commission is promulgating the rule for the following reasons: (1) there is some, albeit small, potential for reduction in public and occupational exposure; (2) the action required by this rule is administrative, resulting in no installation, downtime, or construction costs and no effect on plant or operational complexity; (3) the burden on indus-try and NRC is minimal, and in fact this action would probably result in a net reduction in NRC resource expend 1'tures; and (4) this action is justified for non power reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6.0), and imposing it fer re-actor plants also provides for consistency in the regulations.
l
! 6. DECISION RATIONALE-Section 5 presented the rationale for the implementation of these require-ments for power reactors. Section 6 presents the decision rationale for imple-mentation of the requirements of the amendments for facilities other than power reactors.
This action will specify procedures for licensee notification of the NRC in cases of filing for bankruptcy. This is necessary so that the NRC is aware 4
l l
11 Enclosure B 10/03/86
of severe licensee economic conditions that can impact on the licensee's cap-abil'ity to handle radioactive materials and decontaminate the facility and so that NRC can take timely and appropriate action to protect the public health and safety.
The value of this action is that it can result in benefits in risk reduc-tion. As discussed in Section 4, these risk reductions ccme about from the increased effectiveness of NRC's inspection and enforcement capabilities and, in addition, from the estimated reduction in dose to the public of 45 to 105 man-rem. Also as discussed in Section 4, the impact of implementation of the rule is estimated to be a net savings to the Federal government of $2250 and a net savings to the industry and public of approximately $100,000.
Based on a comparison of the value and impacts, this action of promulgating a final rule is recommended.
- 7. IMPLEMENTATION (a) Schedule
' The proposed rule was issued on June 20, 1986 and the public comment period ended July 21, 1986. Comments were receim from the public and analyzed. In preparation of the final rule, no time is scheduled for CRGR meeting review because this rulemaking has no impact on plant systems, opera-tion, or design and its net impact l's negligible. A memorandum to this effect has been sent to the chairman of CRGR. With these provisions it is anticipated that the final rule can be prepared on schedule.
As discussed earlier there is no action required of a licensee unless and until a bankruptcy petition is filed. Hence there is no impact from this final rule on licensees' plant operating schedules or design or equipment procurement schedules.
(b) Relationship to Other Schedules No effect on other schedules in anticipated.
10/03/86 12 Enclosure B
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I
References
- 1. 50 FR 14474, 4/12/85
- 2. 51 FR 3730, 1/29/86
- 3. 50 FR 5600, 2/11/85
- 4. E.S. Murphy, Technology, Safety, and Costs of Decommissioning Reference Non-Fuel-Cycle Nuclear Facilities, NUREG/CR-1754, Prepared by Pacific Northwest Laboratory for the U.S. Nuclear Regulatory Commission, February, 1981.
- 5. H.R. Elder and D.E. Blahnik, Technology, Safety, and Costs of Decommis-sioning a Reference Uranium Fuel Fabrication Plant, NUREG/CR-1266, Pacific Northwest Laboratory for the U.S. Nuclear Regulatory Commission, October 1980. '
- 6. H.R. Elder, Technology, Safety, and Costs of Decommissioning a Reference Uranium Hexaflouride Conversion Plant, NUREG/CR-1757, Prepared by Pacific Northwest Laboratory for the U.S. Nuclear Regulatory Commission, October 1981.
13 Enclosure B 10/03/86
_' . _ - . - _ _ a _ - - . - - - _ . _.- --
DRAFT CONGRESSIONAL LETTER
Dear Mr. Chairman:
The NRC has sent to the Office of the Federal Register for publication the enclosed final amendments to the Comission's rules in 10 CFR Parts 30, 40, 50, 61, 70, and 72. The amendments require licensees to notify the NRC in the event that a bankruptcy petition is filed involving the licensee.
Notification of NRC in these instances would enable NRC to take timely and appropriate measures to protect the public health and safety at a facility where the licensees's severe financial condition could affect its ability to handle licensed radioactive material.
Sincerely, Eric S. Beckjord, Director Office of Nuclear Regulatory Research
Enclosures:
- 1. Public Announcement
- 2. Federal Register Notice l
l I
Enclosure C 9
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i i .-
WEEKLY INFORMATION REPORT OFFICE OF NUCLEAR REGULATORY RESEARCH Final Rule Signed by EDO On _ ,
1986, the Executive Director for Operations approved a This final rule which will amend 10 CFR Parts 30, 40, 50, 61, 70, and 72.
rule will arend these parts to require a licensee to notify the NRC in the is filed involving the licensee.
event- that a bankruptcy petition Notification of NRC in these instances would enable NRC to take timely and appropriate measures to protect the public health and safety at a facility where the licensee's severe financial condition could affect its ability to handle licensed radioactive material.
The final rule requires no action of a licensee unless and until a bankruptcy petition is filed. The effort required at that time to comply with. this The Executive Director for Operations therefore action will be minimal.
certified under the Regulatory Flexibility Act that the rule will not have a l' significant economic impact on a substantial number of small entities.
L t
This notice constitutes notice to the Commission that, in accordance with the rulemaking authority delegated to EDO, the EDO has signed this final rule and l proposes to forward it to the Office of the Federal Register for publication.
i l
! Enclosure D i
t
' DRAFT NRC ISSUES RULES TO REQUIRE NOTIFICATION OF AGENCY WHEN BANKRUPTCY PETITIONS ARE FILED The Nuclear Regulatory Commission is amending its regulations to require licensees to notify the agency immediately following the filing of a petition for bankruptcy involving the licensee. The notification will alert the -
Commission to the possible need to take actions to protect the public health and safety if nuclear materials are not being properly handled due to severe financial conditions.
The NRC noted that licensees involved in bankruptcy proceedings could experience problemt in making payments for personnel and equipment to handle radioactive materials and decontaminate and decommission their facilities.
Improper handling or decontamination activities or outright abandonment of the facility could lead to the spread of contamination throughout a licensee's facility or offsite. Problems affecting a licensee's waste disposal activities could also result from the financial difficulties.
When notification is received, the NRC can issue orders to modify the license, impose limitations on operations, permit only the storage of licensed material or take other appropriate actions. In addition, prompt notification L
of the NRC will allow the agency to take timely and appropriate action in a bankruptcy proceeding to seek to have available assets of the licensee applied l
to cover costs of site cleanup before the funds are otherwise disbursed.
l l
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Enclosure E
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DRAFT The amendments, which are to Parts 30, 40, 50, 61, 70 and 72 of the Commission's regulations, will apply to industrial users of radioactive material, nuclear reactors, low-level waste repositories and others who are licensed to possess nuclear material.
A proposed rule on this subject was issued on June 30, 1986. Only editorial changes have been made as a result of the comments received.
t (30 days after The amendments will be effective on
).
publication of a notice in the Federal Register on s
f I
i t
Enclosure E P
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