ML20207R911
| ML20207R911 | |
| Person / Time | |
|---|---|
| Issue date: | 12/04/1986 |
| From: | Beckjord E NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| To: | Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| 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 AC16-2-20, NUDOCS 8703180292 | |
| Download: ML20207R911 (72) | |
Text
- -.
/8C/5-A DEC 4 1986
. MEMORANDUM FOR:
Victor Stello, Jr.
Executive Director for Operations FROM:
Eric S. Beckjord, Director Office 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 BANKRUPTCY FILING DISCUSSION Packground.
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 handling of licensed radioactive material and for decontamination and decomissioning of the licensed facility in a safe Improper materials handling or decontamination activities can lead to manner.
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 beer. 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 l,
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 notice for the final rule contains an analysis of coments 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 l
l 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 detemine the appropriate action to take. In addition, 31 292 870318 30 52FR1292 PDR
i DEC 4 1986 Victor Stello, Jr.
7 following receipt of the notification, the Comission will assess the ap'propriate action to take in any bankruptcy proceeding involving the licensee.
The purpose of this would be to seek to have available assets of the licensee applied to cover costs of site cleanup before they are disbursed elsewhere.
RECOMMENDATIONS AND NOTATIONS Recommendations.
It is recommended that you approve the final rule and publication of a notice in the Federal Register (see Enclosure A).
It is also recomended that you certify that the final rule will not have a significant economic impac.t on a substantial number of small entities (see REGULATORY FLEXIBILITY CERTIFICATION in Enclosure A and the REGULATORY ANALYSIS, Enclosure B).
Notations.
(1) the information collection requirements of this rule have been approved by the Office of Management and Budget (see Enclosure A).
(2)
Under 10 CFR 51.22(c)(3)(iii) preparation of an environmental impact statement or an environmental assessment is not necessary, since the eligibility criteria for categorical exclusion are met.
(3) In accordance with 10 CFR 50.109, a backfit analysis has been performed which indicates that the direct and indirect costs of implementation of this rule are minimal and are considered justifiable and warranted to prevent a decrease in the level of protection considered available under current regulations.
Information relevant to the backfit factors specified in 10 CFR 50.109(c) is set out as part of the Supplementary Information to the Final Rule (Enclosure A) and in the Regulatory Analysis (Enclosure B).
(4) No additional NRC resource 3
requirements are anticipated as a result of this action.
(5)TheAgreement States were informed of the proposed rulemaking. The final rules are a matter of compatibility.
(6)TheSubcommitteeonNuclearRegulationoftheSenate Environment and Public Works Committee, the Subcommittee on Energy and the Environment of the House Interior and Insular Affairs Comittee, and the Subcomittee on Energy Conservation and Power of the House Energy and Comerce Committee will be notified of the Commission's action by letter such as Enclosure C.
(7) Notification of the Comission of this action will be made in the Daily Staff Notes (Enclosure D).
(8) A public announcement, such as Enclosure E, will be issued at the same time the notice of final rulemaking is published in the Federal Register.
D)
Eric S. Beckjord, Director Office of Nuclear Regulatory Research
Enclosures:
As stated
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Victor Stello, Jr. following receipt of the notification, the Comission will assess the appropriate action to take in any bankruptcy proceeding involving the licensee. The purpose of this would be to seek to have available assets of the licensee applied to cover costs of site cleanup before they are disbursed elsewhere.
RECOMMENDATIONS AND NOTATIONS Recomenda tions.
It is recomended that you approve the final rule and publication of a notice in the Federal Register (see Enclosure A).
It is also recomended that you certify that the final rule will not have a significant economic impact on a substantial number of small entities (see REGULATORY FLEXIBILITY CERTIFICATION in Enclosure A and the REGULATORY ANALYSIS, Enclosure B).
Notations.
(1)The information collection requirements of this rule have been approved by the Office of Panagement and Budget (see Enclosure A).
(2)
Under 10 CFR 51.22(c)(3)(iii) preparation of an environmental impact statement or an environmental assessment is not necessary, since the elicibility criteria for categorical exclusion are met.
(3) In accordance with 10 CFR 50.109, a backfit analysis has been performed which indicates that the direct and indirect costs of implementation of this rule are minimal and are considered justifiable and warranted to prevent a decrease in the level of protection considered available under current regulations.
Information relevant to the backfit factors specified in 10 CFR 50.109(c) is set out as part of the Supplementary Information to the Final Rule (Enclosure A) and in the Regulatory Analysis (Enclosure B).
(4) No additional NRC resource requirements are anticipated as a result of this action.
(5) The Agreement States were informed of the proposed rulemaking. The final rules are not a matter of compatibility.
(6) The Subcommittee on Nuclear Regulation of the Senate Environment and Public Works Committee, the Subcomittee on Energy and the Environment of the House Interior and Insular Affairs Comittee, and the Subcommittee on Energy Conservation and Power of the House Energy and Commerce Committee will be notified of the Commission's action by letter such as Enclosure C.
(7) Notification of the Comission of this action will be made in the Weekly Information Report (Enclosure D).
(8) A public announcement, such as Enclosure E, will be issued at the same time the notice of final rulemaking is published in the Federal Register.
Eric S. Beckjord, Director Office of Nuclear Pegulatory Pesearch
Enclosures:
A ted 7
RES:MBbES:B' RE RES:D S
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.- Victor Stello, Jr.
following receipt of the notification, the Comission will assess the appropriate action to take in any bankruptcy proceeding involving the The purpose of this would be to seek to have available assets of licensee.
the licensee applied to cover costs of site cleanup before they are disbursed elsewhere.
RECOMMENDATIONS AND NOTATIONS Recomendations.
It is recomended that you ap h final rule and publication of a notice in the Federal Register (prove t e see Enclosure A).
It is also recomended that you certify that the final rule will not have a significant economic impact on a substantial number of small entities (see REGULATORY FLEXIBILITY CERTIFICATION in Enclosure A and the REGULATORY ANALYSIS, Enclosure B).
(1)The information collection requirements of this rule have Notations.
(2) been approved by the Office of Panagement and Budget (see Enclosure A).
Under 10 CFR 51.22(c)(3)(iii) preparation of an environmental impact statement or an environmental assessment is not necessary, since the eligibility (3)
In accordance with 10 CFR criteria for categorical exclusion are met.
50.109, a backfit analysis has been performed widch indicates that the direct and indirect costs of implementation of this rule are minimal and are considered justifiable and warranted to prevent a decrease i-n the level of Infomation protection considered available under current regulations.
relevant to the backfit factors specified in 10 CFR 50.109(c) is set out as part of the Supplementary Information to the Final Rule (Enclosure A) and in the Regulatory Analysis (Enclosure B).
(4) No additional NRC resource requirements are anticipated as a result of this action.
(5) The Agr ment States were informed of the proposed rulemaking. The final rules are not a matter of compatibility.
(6) The Subcommittee on Nuclear Regulation of the Senate Environment and Public Works Committee, the Subcomittee on Energy and the Environment of the House Interior and Insular Affairs Comittee, and the Subcomittee on Energy Conservation and Power of the House Energy and Commerce Comittee will be notified of the Commission's action by letter such as Enclosure C.
(7) Notification of the Comission of this action will be made in the Weekly Information Report (Enclosure D).
(8) A public announcement, such as Enclosure E, will be issued at the same time the notice of final rulemaking is published in the Federal Register.
Eric 5. Beckjord, Director Office of Nuclear Regulatory Pesearch
Enclosures:
Asg ted RES:MB -1tES:P RE RES:D S
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!:e Approved for Publication The Comission delegated to the ED0 (10 CFR '1.40(c) and (d)) 'the authority to develop and promulgate rules as defined in the APA (5 U.S.C. 551
^
(4)) subject to the limitations in NRC Manual Chapter 0103, Organizations and Functions, Off' ice of the Executive Director for Operations, paragraphs 0213, m
038, 039, 0310.
J The enclosed final rule entitled
" Bankruptcy Filing; Notification Requirements" sets forth amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72 <
,I that require licensees to notify the NRC in the event that a bankruptcy petition is filed involving the licensee. The final rule is necessary because a licensee's severe financial conditions could affect its ability to handle -
licensed radioactive material and the NRC must be notified so that timely and 3
appropriate measures to protect the public health and safety can be taken.
The final rule does not constitute a significant ouestion of policy nor does it amend regulations contained in 10 CFR Parts 7, 8 and Subpart C of 9.
I, therefore, find that this rule is within the scope of my rulemaking authority and am proceeding to issue it.
(Date)
Victor Stello, Jr.
Executive Director for Operations
Enclosures:
A Federal Register Notice Regulatory Analysis B
Draft Congressional Letter C
Notice for Inclusion in Weekly D
Infomation Report Draft Public Announcement E
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10 CFR Parts 30, 40, 50, 61, 70, and 72 7
Bankruptcy Filing;
?
Notification Requirements
- \\.
AGENCY:
Nuclear Regulatory Commission.
ACTION:
Final rule.
SUMMARY
.a The Nuclear Regulatory Commission is amending its regulations to require that a licensee notify the appro'priate Regional Administrator of the NRC in the event that the licensee is involved in bankruptcy pro-ceedings. The amended regulations are necessary because a licensee's severe financial conditions could affect its ability to handle licensed radioactive material and the NRC must be notified so that appropriate
)
measures to protect the public health and safety can be taken.
t-EFFECTIVE DATE:
(Insert a date 30 days following publication in the Federal Register).
FOR FURTHER INFORMATION CONTACT:
Frank Cardile, Office of Nuclear Regu-latory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 443-7784.
SUPPLEMENTARY INFORMATION:
Discussion Requirements established by the rule. The NRC is amending its regu-lations to provide requirements for notification in the event of bankruptcy 12/03/86 1
Enclosure A
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involving licensees.
Specifically, the regulations require each licensee to notify the appropriate regional office of the NRC, in writing, in the event a bankruptcy petition involving the licensee is filed under Title 11 (Bankruptcy) of the United States Code. A licensee would not be affected by these amendments unless and until a bankruptcy petition is l
filed. The rule prescribes the specific action that a licensee would be required to follow at that time.
The required action includes notifying theNRdwithinacertaintimeperiodbysupplyingtheinformationspeci-fied in the rule.
Need for the rule. A licensee who is experiencing 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 the proper handling of licensed radioactive material and for the decontamina-tion and decommissioning of the licensed facility in a safe manner.
In-
)
proper materials handling or decontamination activities can result in the spread of contamination throughout a licensee's facility, potential for dispersion of contaminated material offsite, and 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.
NRC inspectors have found, belatedly, that a licensee has vacated. property and abandoned licensed material or has been unable to decontaminate its facility and properly dispose of the waste.
In some cases, NRC inspectors have found significant amounts of radioactive con-tamination present at licensee sites and the potential for dispersal of 12/03/86 2
Enclosure A W
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the contaminated material offsite. Because of the potential risk to pub-lic health and safety if the facilities were left in their as-found con-dition, it was necessary for the Federal or State governments to take protective and remedial action and to expend substantial amounts of public funds for cleanup of the facilities because funds of the bankrupt licensee were no longer available.
The NRC should be notified of these situations i
i promptly, before they become more serious, so that it can take necessary actions to assure that the health and safety of the public is protected.
There is no current regulation requiring licensees to notify the NRC in cases of bankruptcy filings.
Therefore, the NRC may not be aware of a significant financial problem for a particular licensee and thus also not be aware of potential public health and safety problems. Notifying the I
NRC in cases of bankruptcy will alert the Commission so that it may deal with potential hazards to the public health and safety posed by a licensee that does not have the resources to properly secure the licensed material or clean up possible contamination.
Background
On June 20, 1986, the Commission published a Notice of Proposed Rulemaking (51 FR 22531) that would require that a licensee notify the NRC in the event the licensee is involved in a bankruptcy filing. The comment period expired on July 21, 1986.
The NRC indicated in the Nctice that the proposed amendments applied to all licensees covered by 30 CFR Parts 30, 40, 50, 61, 70, and 72, including byproduct, source, and special nuclear material licensees, as well as production and utilization facility, i
low-level waste disposal facility, and independent spent fuel storage I
i installation licensees.
l l
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Enclosure A t
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Analysis of Public Comments Eight comment letters were received on the proposed amendments.
Four were from state agencies, two from private companies, one from a j
medical group, and one from an electric utility licensee.
All of the state agencies indicated that they support the need for the rule and the method of implementation.
Two of the state agencies specifically noted that they had experienced several cases of bankruptcy and that these bankruptcies had cost them significant amounts of time and effort due, in
~most cases, to the fact that they learned of the bankruptcies long after the action was filed.
These agencies also noted that, in these situations, they found radioactive material either abandoned or in the possession of unauthorized persons.
The comment letter from one of the private companies indicated that, based on their experience of having been in Chapter 11 status an'd based on their discussions with other companies who have been
)
involved in bankruptcy situations, they agree there is a risk involved and the proposed rule is entirely justified.
The letter from the medical group indicated opposition to the rule.
The commenter believed the rule affected only physicians and that, to be equitable, it should affect others such as engineers, plumbers, and tradesmen.
In addition, the commenter stated that the regulation is voluminous.
In response to this comment the Commission believes the commenter has misunderstood the regulation. As stated above, the regu-lation applies to all 10 CFR Parts 30, 40, 50, 61, 70 and 72 licensees which includes a wide variety of types of companies and individuals.
In addition, the regulation is not voluminous or burdensome, but requires only a notification to the NRC of two pieces of information.
The regula-tion is not as lengthy as it appears because the same requirement must be 12/03/86 4
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imposed on different parts of 10 CFR Chapter I.
Therefore, the same language must-be repeated six times.
The comment letter from the electric utility licensee indicated opposition to the rule as it applies to 10 CFR Part 50 licensees for the j
following reasons.
The commenter believes that (1) the regulatory analysis supporting the rule relates to_non-utility licensees and applying it to utilities for the sake of consistency is an inadequate basis for the amendment to Part 50; (2) it is an incorrect assumption that the act of filing a bankruptcy petition affects a utility licensee's ability to safely handle licensed material; (3) the amendment would further involve NRC in utility financial matters which is an area where NRC should proceed cautious'ly; and (4) NRC already possesses methods of monitoring a utility licensee's financial condition including the availability of credit agency ratings which can be monitored and including required submittals of financial statements under 10 CFR 50.71(b) which NRC could review and use 3
to observe trends.
In response to this commenter, the regulatory analysis indicates other reasons for proceeding with this rulemaking besides consistency in L
the regulation.
These reasons include the fact that there is some poten-l tial for reduction in public and occupation exposure, that there is an improvement in NRC's inspection and enforcement capabilities, and that the burden on industry and NRC is minimal.
The amendment by itself would not further involve NRC in utility financial matters but would only make NRC aware of a specific situation. Actions taken in response to the 3
situation are not treated in this rulemaking.
Finally, it appears that a direct notification of bankruptcy would be a useful adjunct to the monitoring of trends or credit ratings as a means of alerting NRC to the situation.
12/03/86 5
Enclosure A l
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The comment letter from the other private company indicated that the Supplementary Information and the text of the rule should make it clear that a licensee only has to notify the NRC if involved in a bankruptcy as
-l a debtor. The commenter noted that a licensee might be involved as a creditor in a bankruptcy and should not have to worry about notifying the NRC in this situation.
This commenter. also suggested that the rule text be changed from "Each licensee shall notify...(NRC) of a petition for bankruptcy...by or against (i) A licensee" to "Each' licensee shall notify
...(NRC) of a... petition for bankruptcy...by or against (i) The licensee."
In re'sponse to the first comment, the Commission believes that the rule text itself is clear in that it states the specific situations which would require a licensee to submit a notification to the NRC.
The intent of the rule is that NRC be aware of severe financial situations which could affect a licensee's capability to handle radioactive material.
)
Based on this intent, the rule states specifically that a licensee should notify the NRC if there is a filing of a petition for bankruptcy by or against the licensee, an entity controlling tne licensee, or an affiliate of the licensee.
It is these situations that the Supplementary Informa-tinn is referring to when it discusses a licensee as being " involved" in a bankruptcy.
Simply being listed as a creditor in the bankruptcy pro-ceeding of an unrelated entity does not trigger the notification require-ment. With regard to the second comment, the text of the rule has been 4
changed accordingly.
i i
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Enclosure A e
[7590-01]
ENVIRONMENTAL IMPACT i
Categorical Exclusion The NRC has determined that this regulation is the type of action l
described in categorical exclusion 10 CFR 51.22(c)(3)(iii).
Therefore, neither an environmental impact statement nor an environmental assess-ment has been prepared for this regulation.
PAPERWORK REDUCTION ACT STATEMENT This final rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).
s These requirements were approved by the Office of Management and Budget under approval numbers Part 30 - 3150-0017, Part 40 - 3150-0020; Part 50 -
3150-0011; Part 61 - 3150-0135; Part 70 - 3150-0009; and Part 72 -
3 3150-0132.
REGULATORY ANALYSIS The Commission has prepared a regulatory analysis on this final regulation.
The analysis examines the costs and benefits of the alterna-tives considered by the Commission. The analysis is available for inspec-tion in the NRC Public Document Room, 1717 H Street NW., Washington, DC.
Single copies of the analysis may be obtained from Frank Cardile, U.S.
Nuclear Regulatory Commission, Washington, DC, 20555, telephone (301)443-7784.
12/03/86 7
Enclosure A
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REGULATORY FLEXIBILITY CERTIFICATION 1
In accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C
. 605(b), the Commission certifies that this rule does not have a signifi-cant economic impact on a substantial number of small entities.
The rule amends 10 CFR Parts 30, 40, 50, 61, 70, and 72 to require that licensees notify the appropriate NRC Regional Office in the event of the commence-ment of a bankruptcy proceeding involving the licensee so that NRC is aware of this significant financial problem and can take necessary actions assuring that the health and safety of the public is protected.
Because no action is required of a licensee by these amendments unless and until a bankruptcy petition is filed, there is no 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 States Code contains 3
requirements regarding notification of creditors of bankruptcy. This rule requires one additional notification.
In addition, the required action consists only of a notification by mail to the NRC, an action representing less than one-half person-hour of effort. The net overa'i cost to the industry is negligible.
BACKFIT ANALYSIS Backfit Analysis Factors 10 CFR 50.109 (50 FR 38097; 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 12/03/86 8
Enclosure A
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does not require "...the modification of or addition to systems, struc-tures, components, or design of a facility; or the design approval or manufacturing license for a facility; or the procedures or organization required to design, construct or operate a facility." The factors listed in 10 CFR 50.109(c), however, have been used to analyze the rule's impact since the rule does modify a licensee's reporting responsibilities and 10 CFR 50.54(f) indicates that new information requests should be evalu-ated to determine whether the burden to be imposed on respondents is jus-tified in view of the potential safety significance of the issue to be addressed in the requested information.
(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 bank-
)
ruptcy proceedings.
Although the likelihood of utility bankruptcy is small and in most instances NRC would be aware of it occurring, there is a potential that NRC may not be aware of a particular bankruptcy situa-tion involving a licensee.
b (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 l
be affected by these amendments unless and until a bankruptcy petition is i
filed.
(3) The amendments improve NRC's inspection and enforcement capabi-4 lities in dealing promptly with the potential radiological consequences i
f of a licensee's severe financial problems thus providing a benefit in l
12/03/86 9
Enclosure A
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protection of the public health and safety.
In addition, although the level of risk to the public is small, NRC's timely involvement can result in some potential reduction in the risk of radiation exposure by reducing the likelihood that improper radioactive' waste handling or decontamina-tion will occur at a facility where a licensee is involved in bankruptcy proceedings.
(4) In a manner similar to that described in (3) above, although it would be small, the amendments result in some reduction in risk of radiological exposure of facility employees by reducing the potential for spread of contamination in the facility and resultant occupational exposure.
(5) The amendments impose requirements for administrative procedure action only, hence there is no equipment installation cost, no facility downtime cost, and no cost of construction delay. As indicated in (2),
)
there is no action required of a licensee unless and until a bankruptcy petition is filed and hence there is no continuing cost associated with the backfit.
Even in the event of bankruptcy the cost impact of this rule is negligible because the action required, namely a notice listing the location and date of the bankruptcy filing mailed to the NRC regional office, is minimal.
As noted in (3) and (4) above, timely involvement of NRC in the situation can minimize potential for spread of contamination in the facility and therefore also minimize added cleanup costs which could then occur.
This reduction in cost can be substantial compared to the small cost associated with the notification, resulting in net savings.
(6) The amendments are administrative and hence have no safety impact of changing plant or operational complexity.
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(7) With regard to the resource burden on the NRC, no NRC activity is necessary unless and until a licensee submits a notification to the NRC.
If a notice ~ were submitted, the amount of time spent on actually reading and docketing of the notification would be minimal.
By alerting NRC to the situation, this rule would put NRC in a better reactive mode and thereby could reduce NRC staff time involved in activities such as necessary enforcement actions and meetings with a concerned public regarding a contaminated facility.
This reduction 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.
(8) The amendments apply to all power reactor licensees independent of facility type, design, and age.
(9) When the amendment is made effective, it will be a final action.
Backfit Analysis Determination
)
Based on the analysis of the factors as presented above, the Commission has determined that the new reporting requirements 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 to prevent a decrease in the level of protection considered avail-l able under current regulations.
The rule is also considered to save resources in bankruptcy circumstances.
By reason of the rule, there is j
some, albeit small, potential for reduction in public and occupational exposure.
T'he action required by this rule is administrative, resulting 12/03/86 11 Enclosure A l
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in no installation, downtime, or construction costs and no effect on plant or operational 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 nonpower reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6.0), and imposing it for reactor plants also provides for consistency in the regulations.
LISTOFSpBJECTSIN10CFRPARTS 30, 40, 50, 61, 70 AND 72 Part 30 - Byproduct material, Government contracts, Intergovernmental relations, Isotopes, Nuclear materials,, Penalty, Radiation protection, Reporting and recordkeeping requirements.
Part 40 - Government contracts, Hazardous materials - transportation, 3
Nuclear materials, Penalty, Reporting and recordkeeping requirements, Source material, Uranium.
Part 50 - Antitrust, Classified information, Fire prevention, Incor-poration by reference, Intergovernmental relations, Nuclear power plants and reactors, Penalty, Radiation protection, Reactor siting criteria, I
Reporting and recordkeeping requirements.
Part 61 - Low-level waste, Nuclear materials, Fenalty, Reporting and recordkeeping requirements, Waste treatment and disposal.
Part 70 - Hazardous materials - transportation, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material.
12/03/86 12 Enclosure A n.,. aq
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Part 72 - Manpower training programs, Nuclear materials, Occupational safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel.
For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 552 and 553, the NRC is adopting the
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following amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72.
PART 30 - RULES OF GENERAL APPLICABILITY TO~ DOMESTIC LICENSING OF BYPRODUCT MATERIAL
- 1. -The authority citation for Part 30 is revised to read as follows:
AUTHORITY:
Sections 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 3244,1246 (42 U.S.C. 5841, 5842, 5846).
i Section 30.7 also issued under Pub. L.95-601, sec.10, 92 Stat.
2951 (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).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); $$ 30.3, 30.34(b) and (c), 30.41(a) and (c), and 30.53 are issued under sec.161b, 68 Stat, 948, as amended (42 U.S.C. 2201(b)); and
$$ 30.6, 30.36, 30.51, 30.52, 30.55, and 30.56(b) and (c) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
12/03/86 13 Enclosure A r
u... ~,,.,. -.,.,...
en
..-..--.a
,.,..,_is
.,-,.._,,A,.
,_,,,.,.n.,
,.-.,_,,,--n
,,,..,-.,-,------__,.w
[7590-01]
i 2.
Section 30.34 is amended by adding a new paragraph (h) to read as follows:
S 30.34 Terms and conditions of licenses.
A (h)(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) The licensee; (ii) An entity (as that term is defined in 11 U.S.C. 6 101(14))
controlling the licensee or listing the license or licensee 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.
PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL 3.
The authority citation for Part 40 is revised to read as l
follows:
AUTHORITY:
Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat.
932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 12/03/86 14 Enclosure A I
e
[*
[7590-01]
2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.86-373, 73 Stat.
-688'(42 U.S.C. 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846); sec. 275, 92 Stat.
3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022).
Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat.
2951 (42 U.S.C. 5851).
Section 40.31(g) also issued under sec. 122, 68 4
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).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 40.3, 40.25(d)(1)-(3), 40.35(a)-(d), 40.41(b) and (c), 40.46, 40.51(a) and (c); and 40.63 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); and SS 40.5, 40.25(c), (d)(3), and (4),
40.26(c)(2), 40.35(e), 40.42, 40.61, 40.62, 40.64, and 40.65 are issued
.under sec. 161o, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
4.
Section 40.41 is amended by adding a new paragraph (f) to read as follows:
S 40.41 Terms and conditions of licenses.
A A
A I
(f)(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:
J (i) The licensee; I
(ii) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling the licensee or listing the license or licensee as property of the estate; or i
12/03/86 15 Enclosure A
...,., ~, _ _. _ _. _..
._.__.._.__,_.',1,._.___..._.__,._.-..._._.,__,,_._.___.._,___..
[7590-01]
(iii) 'An affiliate (as that term is defined in 11 U.S.C. 5 101(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.
PART 50 - DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIES-5.
The authority citation for Part 50 is revised 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, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239); 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 (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, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332).
Sections 50.23, 50.35, 50.55,
-50.56 also issued under sec.185, 68 Stat. 955 (42 U.S.C. 2235). Sec-tions 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 12/03/86 16 Enclosure A 8
[7590-01]
sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 50.103 also issued under sec. 108, 68 Stat. 939, as. amended (42 U.S.C. 2138).-
Appendix F also issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); $$ 50.10(a), (b), and (c), 50.44, 50.46, 50.48, 50.54, and 50.80(a) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C.
2201(b)); $$ 50.10(b) and (c) and 50.54 are issued under sec.161i, 68 Stat. 9'49, as amended (42 U.S.C. 2201(i)); and SS 50.55(e), 50.59(b),
50.70, 50.71, 50.72, 50.73, and 50.78 are issued under sec.161o, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
6.
Remove the authority citations following SS 50.2, 50.10, 50.21, 50.22, 50.23, 50.30, 50.33, 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.
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 (cc)(1) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-l tary or involuntary petition for bankruptcy under any Chapter of Title 11 (Bankruptcy) of the United States Code by or against:
(i) The licensee;
)
(ii) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling the licensee or listing the license or licensee as property of the estate; or 12/03/86 17 Enclosure A
.- -.-a=
=--
D
[7590-01]
(iii) An affiliate (as that term is defined in 11 U.S.C. 5 101(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.
PART 61 - LICENSING REQUIREMENTS FOR LAND DISPOSAL OF RADIOACTIVE WASTE 8.
The authority citation for Part 61 is revised 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. 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, $$ 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); $561.10 through 61.16, 61.24, and 61.80 are issued under sec. 1610, 68 Stat. 950, asa7, ended (42U.S.C.2201(o)).
9.
Section 61.24 is amended by adding a new paragraph (k) to read as follows:
12/03/86 18 Enclosure A
- ^^
.,.n-
' ' ' * * ' ~
,_,_..--.w.,-,
[7590-013 5 61.24 Conditions of licenses.
A A
A A
A (k)(1) Each licensee shall notify the appropriate hRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for b'nkruptcy under any Chapter of a
Title 11 (Bankruptcy) of the United States Code by or against:
(i) The licensee; (ii) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling the licensee or listing the license or licensee 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.
PART 70 - DOMESTIC LICENSING OF 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, 03 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).
i 12/03/86 19 Enclosure A E
[7590-01]
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 5 t 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), 70.32(a)(6), (c), (d), (e), and (g), 70.36,70.51(c)-
3-.
(g), 70.56, 70.57(b) and (d), and 70.58 (a)-(g)(3) and (h)-(j) are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(i); and SS 70.5, 70.20b(d) and (e), 70.38, 70.51(b) and (i), 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 I
read as follows:
S 70.32 Conditions of licenses.
(a) Each license shall contain and be subject to the following l
conditions:
A A
A g-i r
i 12/03/86 20 Enclosure A L
[7590-01]
l (9)(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:
(A) The licensee; (B) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling 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. S 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 A
A
)
PART 72 - LICENSING REQUIREMENTS FOR THE STORAGE OF SPENT FUEL IN AN INDEPENDENT SPENT FUEL STORAGE INSTALLATION (ISFSI) t 1
[
12.
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.86-373, 73 Stat. 688, as amended (42 U.S.C.
l 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1243, 12/03/86 21 Enclosure A
- - -..- - - - -.. - -. - - -. L -...------- - - -.-.-.-,.
[7590-01]
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).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
4 2273):
SS 72.6, 72.14, 72.15, 72.17(d), 72.19, 72.33(b)(1), (4), (5),
(e), (f), 72.36(a) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); $$ 72.10, 72.15, 72.17(d), 72.33(c), (d)(1), (2),
(e), 72.81, 72.83, 72.84(a), 72.91 are issued under sec. 161i, 68 Stat.
949, as amended (42 U.S.C. 2201(i)); and SS 72.33(b)(3), (d)(3), (f),
72.35(b), 72.50 - 72.52, 72.53(a), 72.54,(a), 72.55, 72.56, 72.80(c),
72.84(b) are issued under sec. 161o, 68 Stat. 950, as amended (42 U.S.C.
2201(o)).
13.
Section 72.33 is amended by adding a new paragraph (b)(6) to read as follows:
$ 72.33 License conditions, a
a a
a (b) Every license issued under this Part shall be s'ubject to the following conditions, even if they are not explicitly stated herein:
A R
A A
A (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:
(A) The licensee; 12/03/86 22 Enclosure A 9
[7590-01]
(B) An entity (as that term is defined in 11 U.S.C. $ 101(14))
controlling 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. S 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.
Dated at Bethesda, Maryland this day of
, 1986.
for the Nuclear Regulatory Commission.
I Victor Stello, Jr.
Executive Director for Operations.
12/03/86 23 Enclosure A
.we
~- -.
kEGULA70RY 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 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.
I 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 t
12/03/86 1
Enclosure B
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 8,000) and the fact that a number of bankruptcies which were not reported to NRC have already occurred.
2.
OBJECTIVE The objective of this action is that NRC 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 resources to properly secure his licensed material or to clean up possible contamination.
3.
ALTERNATIVES The alternatives considered in determining thd 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 regu-lations on which to base any guidance.
The lack of standards developed from rulemaking in this area might leave any guidance open to challenge.
12/03/86 2
Enclosure B
Rulemaking would provide clearly implementable requirements regarding licensees' responsibility to notify the NRC in the case of a filing of a peti-tion 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 oppor-tunity 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 appears, 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 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 financial problems.
This will provide a significant increase in NRC's inspection and enforcement capabilities in dealing with such situations thus assisting in assuring that NRC's mission of protecting public health and l
12/03/86 3
Enclosure B
., _ - ~. - ~
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 sec-tion under "Public."
Industry Industry will benefit is 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 The benefit 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 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 contami-nation present at the site, such as significant quantities of Am-241, (Refs. 1 and 2), and large volumes of contaminated material equivalent to approximately 300 drums (Ref. 2).
)
Based on these inspections, NRC has issued enforcement orders p,ublished in the Federal Register (Refs. 1 and 2) indicating that there was potential for dispersal 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 indi-i viduals to contaminated areas and that there war not adequate assurance that the facilities could remain in their existing c nditions without undue risk to the public health and safety.
Even with this rule there may still be contamination at the sites, how-ever NRC's timely involvement in the situations as a result of this rule will t
12/03/86 4
Enclosure B
. =
l t
i reduce the risk of dispersal of materials and/or exposure of individuals significantly reducing the risk to both the public and workers.
The absence l
of this rule can result in an increased risk because there would be greater i
potential for the dispersal of material or exposure of individuals as a result 1
of situations similar to those identified in References 1 and 2.
i_
i Potential risk reduction for situations such as these can be estimated i
based on data in reports prepared for NRC by Pacific Northwest Laboratory (PNL) on the technology, safety and costs of decommissioning for various
[
-nuclear facilities.
In particular, a report prepared by PNL on decommission-ing nonfuel-cycle nuclear facilities, NUREG/CR-1754 (Ref. 4), includes infor-L mation on contamination levels and radiation exposures.
As indicated in Sec-
.t l
tion 1 of this Regulatory Analysis, instances have occurred in which licensees l
have abandoned facilities and licensed material, and as discussed above this j
can result in potential problems with access of unauthorized individuals to contaminated areas.
NUREG/CR-1754 indicates that persons present in nonfuel-f l
cycle facilities can be exposed to radiation resulting in dose rates of approxi-j mately 0.1 rem / hour.
It is assumed in this estimate that 3 unauthorized persons 1
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 f
in the facility, as might occur if unauthorized persons gain access, could also increase occupational exposures involved in cleanup of the facility.
NUREG/
I CR-1754 indicates that occupational exposure for decontamination and cleanup I
j of a small nonfuel-cycle facility can be 40 man-rem.
Larger nonfuel,-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 occur-f ring promptly following termination of license. As discussed above, this may not be the case for the situations of a bankrupt licensee where References 1 l
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 I
contaminated material in these situations, that the occupational exposure involved in the ultimate cleanup increases by a factor of 2 resulting in expo-f sures of 80 man-rem for a small facility and 200 man-rem for a large facility.
It is assumed that the increases in public an1 occupational exposures occur at only one facility which files for bankruptcy in a year.
Hence, as a result of i
4 12/03/86 5
Enclosure B
this rule being in effect and NRC 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 105 man-rem for a large facility.
4.1.2 Costs
'J NRC.
In implementation of a final rule, no NRC activity is necessary unless 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.
1 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 bankruptcy, 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 clean 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 ihe 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, i
12/03/86 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 reduc-tion in staff time, it is assumed that one less trip to the site would be neces-sary, resulting in a savings of one man-day.
It is also estimated that because a better assessment of the situation has been made promptly, that one less man-day of work is necessary for carrying out the needed activities.
It is estimated that these savings result in half of the bankruptcy situations which occur.
Thus, using the assumptions above of the nu.tber of submittals, the total reduction in NRC staff time is 5 man-days per year or 40 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br />. At
$60 per hour, the total savings to the Government is $2.400 per year.
This overshadows the ir. crease in cost of $150 indicated above and results in a net reduction in staff resources of $2,250 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 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 States Code contains requirements regarding notification of creditors of bank-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 estimato 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.
12/03/85 7
Enclosure B
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 decontami-nation and decom.Tissioning of small facilities that have been discussed earlier can range from $100,000 up to several million (Refs. 2 and 3).
Costs of larger facilities would be higher (Refs. 4 thru 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 says.
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 availa'ble 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, resulting 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 sav-ings to the public of $110,000 for a small facility.
12/03/86 8
Enclosure B
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 itets.
Rulemaking is in progress to amend 10 CFR 50.4 regarding com-munications with NRC. The action being taken here will conform with final action on 10 CFR 50.4.
5.
BACKFIT ANALYSIS FOR POWER REACTORS
~
5.1 Backfit Analysis Factors 10 CFR 50.109 (50 FR 38097, 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 does not require
"...the modification of or addition to systems, str'uctures, components, or i
design of a facility; or the design approval or manufacturing license for a facility; or the procedures or organization required to design, construct or operate a facility." The factors listed in 10 CFR 50.109(c), however, have been used to analyze the rule's impact since the rule does modify a licensee's reporting responsibilities and 10 CFR 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.
(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 the likelihood of utility bankruptcy is small and in most instances NRC would 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 12/03/86 9
Enclosure B
proceeding involving the licensee.
A licensee would not be affected by these 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 small, NRC's timely involvement can result in some potential reduction in the risk of radiation exposure by reducing the likelihood that improper 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, although it would be small, the amendments result in some reduction in risk of radiological expo-sure of facility employees by reducing the potential for spread of contamination in the facility and resultant occupational exposure.
(5) The amendments impose requirements for administrative procedure action only, hence there is no equipment installation cost, no facility downtime cost, and no cost of construction delay.
As indicated in (2), there is no action required of a licensee unless and until a bankruptcy petition is filed and hence there is no continuing cost associated with the backfit.
Even in the event of bankruptcy the cost impact of this rule is negligible because the action required, namely a notice listing the location and date of the bankruptcy fil-ing mailed to the NRC regional office, is minimal. As noted in (3) and (4) above, timely involvement of NRC in the situation can minimize poten'tial for spread of contamination in the facility and therefore also minimize added clean-up costs which could then occur.
This reduction in cost can be substantial compared to the small cost associated with the notification, resulting in net savings.
(6) The amendments are administrative and hence have no safety impact of f
changing plant or operational complexity.
(7) With regard to the resource burden on the NRC, no NRC activity is necessary unless and until a licensee submits a notification to the NRC.
If a 12/03/86 10 Enclosure B
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, this rule would put NRC in a better reactive mode and thereby could reduce NRC 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.
(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 Analycis Determination Based on the analysis of the factors as presented in Section 5.1, the Commission has determined that the new reporting requirements imposed by this rule have been adequately justified, namely the burden to be imposed is justi-fied 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 to prevent a decrease in the level of protection considered available under current regulations. The rule is also considered to save resources in bankruptcy circum:,tances.
By rea-son of the rule, there is some, albeit small, potential for reduction in public and occupational exposure.
The action required by this rule is administrative, l
resulting in no installation, downtime, or' construction costs and no effect on plant or operational 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 nonpower reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6.0), and imposing it for reactor plants also provides for consistency in the regulations.
l 12/03/86 11 Enclosure B
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 of severe licensee economic conditions that can impact on the licensee's capa-bility 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 come 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 $2,250 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 promulgat-ing 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 received from the public and anal-yzed.
In preparation of the final rule, no time is scheduled for CRGR meeting review because this rulemaking has no impact on plant systems, operation, or design and its net impact is 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.
12/03/86 12 Enclosure B
D A 3 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.
References 1.
50 FR 14474, April 12, 1985.
2.
51 FR 3730, January 29, 1986.
3.
50 FR 5600, February 11, 1985.
4.
E.S. Murphy, Technology, Safety, and Costs of Decommissioning Reference Nonfuel-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.
12/03/86 13 Enclosure B
DRAFT CONGRESSIONAL LETTER
Dear Mr. Chairman:
The NRC has sent to the Office of the Federal Recister for publicatior, the enclosed final amendtrents 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 evtnt that a bankruptcy petition is filed involving the licensee.
Notification of NRC in these instances would enable NRC to take tirely 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 3. Beckjord, Director Office of Nuclear Regulatory Research
Enclosures:
1.
Public Announcement 2.
Federal Register Notice Enclosure C
DAILY STAFF NOTES OFFICE OF NUCLEAP REGULATORY RESEARCH Final Rule Signed by EDO On
,1986, the Executive Director for Operations approved a final rule which will amend 10 CFR Parts 30, 40, 50, 61, 70, and 72. This rule will amend these parts to require a licensee to notify the NRC in the event that a bankruptcy petition is filed involving the licensee. Notification of NPC 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 cT a licensee unless and until e bankruptcy petition is filed. The effort reouired at that time to comply with this action will be minimal. The Executive Director for Operations therefore certified under the Regulatory Flexibility Act that the rule will not have a significant economic impact on a substantial number of small entities.
This constitutes notice to the Cennission that, in accordance with the rulemakfng authority delegated to EDO, the EDO has sianed this final rule and proposes to forward it on
, 1986 to the Office of the Federal Register for publication, unless otherwise directed by the Commission.
Enclosure D
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 imediately following the filing of a petition for bankruptcy involving the licensee. The notification will alert the Comission 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 problems 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 l
material or take other appropriate actions.
In addition, prompt notification of the NRC will allow the agency to take timely and appropriate action in a bankruptcy proceeding to seek to have available assets cf the licensee applied to cover costs of site cleanup before the funds are otherwise disbursed.
Enclosure E
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.
The amendments will be effective on (30 days after publication of a notice in the Federal Register on
).
i i
Enclosure E l
l
[7590-01]
NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 40, 50, 61, 70, and 72 Bankruptcy Filing; Notificatien Requirements AGENCY: Nuclear Regulatory Commission.
ACTION:
Final rule.
SUMMARY
The Nuclear Regulatory Commission is amending its regulations to require that a licensee notify the appropriate Regional Administrator of the NRC in the event that the licensee is involved in bankruptcy pro-ceedings. The amended regulations are necessary because a licensee's severe financial conditions could affect its ability to handle licensed radioactive material and the NRC must be notified so that appropriate measures to protect the public health and safety can be taken.
EFFECTIVE DATE:
(Insert a date 30 days following publication in the Federal Register).
FOR FURTHER INFORMATION CONTACT: ' Frank Cardile, Office of Nuclear Regu-latory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 443-7784.
SUPPLEMENTARY INFORMATION:
Discussion Requirements established by the rule.
The NRC is amending its regu-lations to provide requirements for notification in the event of bankruptcy 12/03/86 1
Enclosure F
i
)
[7590-01]
c.
involving licensees.
Specifically, the regulations require each licensee to notify the appropriate regional office of the NRC, in writing, in the event a bankruptcy petition involving the licensee is filed under Title 11 (Bankruptcy) of the United States Code.
A licensee would not be affected by these amendments unless and until a bankruptcy petition is filed. The rule prescribes the specific action that a licensee would be required to follow at that time.
The required action includes notifying the NRC within a certain time period by supplying the information speci-fied in the rule.
Need for the rule.
A licensee who is experiencing 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 the proper handling of licensed radioactive material and for the decontamina-tion and decommissioning of the licensed facility in a safe manner.
Im-proper materials handling or decontamination activities can result in the spread of contamination throughout a licensee's facility, potential for dispersion of contaminated material offsite, and 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.
NRC inspectors have found, belatedly, that a licensee has vacated property and abandoned licensed material or has been unable to decontaminate its facility and properly dispose of the waste.
In some cases, NRC inspectors have found significant amounts of radioactive con-tamination present at licensee sites and the potential for dispersal of 12/03/86 2
Enclosure F
[7590-01) m the contaminated material offsite. Because of the potential risk to pub-lic health and safety if the facilities were left in their as-found con-dition, it was necessary for the Federal or State governments to take protective and remedial action and to expend substantial amounts of public funds for cleanup of the facilities because funds of the bankrupt licensee were no longer available.
The NRC should be notified of these situations promptly, before they become more serious, so that it can take necessary actions to assure that the health and safety of the public is protected.
There is no current regulation requiring licensees to notify the NRC in cases of bankruptcy filings.
Therefore, the NRC may not be aware of a significant financial problem for a particular licensee and thus also not be aware of potential public health and safety problems.
Notifying the NRC in cases of bankruptcy will alert the Commission so that it may deal with potential hazards to the public health and safety posed by a licensee that does not have the resources to properly secure the licensed material or clean up possible contamination.
Background
On June 20, 1986, the Commission published a Notice of Proposed Rulemaking (51 FR 22531) that would require that a licensee notify the NRC in the event the licensee is involved in a bankruptcy filing.
The comment period expired on July 21, 1986.
The NRC indicated in the Notice that the proposed amendments applied to all licensees covered by 10 CFR Parts 30, 40, 50, 61, 70, and 72, including byproduct, source, and special nuclear material licensees, as well as production and utilization facility, low-level waste disposal facility, and independent spent fuel storage installation licensees.
12/03/86 3
Enclosure F
[7590-01]
Analysis of Public Comments Eight comment letters were received on the proposed amendments.
Four were from state agencies, two from private companies, one from a medical group, and one from an electric utility licensee.
All of the state agencies indicated that they support the need for the rule and the method of implementation.
Two of the state agencies specifically noted that they had experienced several cases of bankruptcy and that these bankruptcies had cost them significant amounts of time and effort due, in most cases, to the fact that they learned of the bankruptcies long after the action was filed.
These agencies also noted that, in these situations, l
they found radioactive material either abandoned or in the possession of unauthorized persons.
The comment letter from one of the private companies indicated that, based'on their experience of having been in Chapter 11 status and based on their discussions with other companies who have been involved in bankruptcy situations, they agree there is a risk involved and the proposed rule is entirely justified.
The letter from the medical group indicated opposition to the rule.
The commenter believed the rule affected only physicians and that, to be equitable, it should affect others such as engineers, plumbers, and tradesmen.
In addition, the commenter stated that the regulation is voluminous.
In response to this comment the Commission believes the commenter has misunderstood the regulation.
As stated above, the regu-lation applies to all 10 CFR Parts 30, 40, 50, 61, 70 and 72 licensees which includes a wide variety of types of companies and individuals.
In addition, the regulation is not voluminous or burdensome, but requires only a notification to the NRC of two pieces of information. The regula-tion is not as lengthy as it appears because the same requirement must be 12/03/86 4
Enclosure F
i
[7590-01) imposed on different parts of 10 CFR Chapter I.
Therefore, the same language must be repeated six times.
The comment letter from the electric utility licensee indicated opposition to the rule as it applies to 10 CFR Part 50 licensees for the following reasons.
The commenter believes that (1) the regulatory j
analysis supporting the rule relates to non-utility licensees and apply-ing it to utilities for the sake of consistency is an inadequate basis for the amendment to Part 50; (2) it is an incorrect assumption that the act of filing a bankruptcy petition affects a utility licensee's ability to safely handle licensed material; (3) the amendment would further involve NRC in utility financial matters which is an area where NRC should proceed cautiously; and (4) NRC already possesses methods of moni-toring a utility licensec's financial condition including the availabil-ity of credit agency ratings which can be monitored and including required submittals of financial statements under 10 CFR 50.71(b) which NRC could review and use to observe trends.
In response to this commenter, the regulatory analysis indicates other reasons for proceeding with this rulemaking besides consistency in the regulation.
These reasons include the fact that there is some poten-tial for reduction in public and occupation exposure, that there is an j
improvement in NRC's inspection and enforcement capabilities, and that the burden on industry and NRC is minimal.
The amendment by itself would i
not further involve NRC in utility financial matters but would only make NRC aware of a specific situation.
Actions taken in response to the situation are not treated in this rulemaking.
Finally, it appears that a direct notification of bankruptcy would be a useful adjunct to the moni-j toring of trends or credit ratings as a means of alerting NRC to the l
situation.
12/03/86 5
Enclosure F
[7590-01]
The comment letter from the other private company indicated that the Supplementary Information and the text of the rule should make it clear that a licensee only has to notify the NRC if involved in a bankruptcy as a debtor.
The commenter noted that a licensee might be involved as a creditor in a bankruptcy and should not have to worry about notifying the NRC in this situation.
This commenter also suggested that the rule text be changed from "Each licensee shall notify...(NRC) of a petition for bankruptcy...by or against (i) A licensee" to "Each licensee shall notify
... (NRC) of a... petition for bankruptcy...by or against (i) The licensee."
In response to the first comment, the Commission believes that the rule text itself is clear in that it states the specific situations which would require a licensee to submit a notification to the NRC. The intent of the rule is that NRC be aware of severe financial situations which could affect a licensee's capability to handle radioactive material.
Based on this intent, the rule states specifically that a licensee should notify the NRC if there is a filing of a petition for bankruptcy by or against the licensee, an entity controlling the licensee, or an affiliate of the licensee.
It is these situations that the Supplementary Informa-tion is referring to when it discusses a licensee as being " involved" in a bankruptcy.
Simply being listed as a creditor in the bankruptcy pro-ceeding of an unrelated entity does not trigger the notification require-ment. With regard to the second comment, the text of the rule has been changed accordingly.
12/03/86 6
Enclosure F
~.
[7590-01]
ENVIRONMENTAL IMPACT Categorical Exclusion The NRC has determined that this regulation is the type of action described in categorical exclusion 10 CFR 51.22(c)(3)(iii). Therefore, neither an environmental impact statenent nor an environmental assess-ment has been prepared for this regulation.
PAPERWORK REDUCTION ACT STATEMENT This final rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.),
i These requirements were approved by the Office of Management and Budget under approval numbers Part 30 - 3150-0017, Part 40 - 3150-0020; Part 50 -
3150-0011; Part 61 - 3150-0135; Part '/0 - 3150-0009; and Part 72 -
3150-0132.
REGULATORY ANALYSIS The Commission has prepared a regulatory analysis on this final regu-lation.
The analysis examines the costs and benefits of the alternatives considered by the Commission.
The analysis is available for inspection in the NRC Public Document Room, 1717 H Street NW., Washington, DC.
Single copies of the analysis may be obtained from Frank Cardile, U.S. Nuclear Regulatory Commission, Washington, DC, 20555, telephone (301)443-7784.
l 12/03/86 7
Enclosure F
[7590-01]
REGULATORY FLEXIBILITY CERTIFICATION In accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C 605(b), the Commission certifies that this rule does not have a signifi-cant economic impact on a substantial number of small entities. The rule amends 10 CFR Parts 30, 40, 50, 61, 70, and 72 to require that licensees notify the appropriate NRC Regional Office in the event of the commence-ment of a bankruptcy proceeding involving the licensee so that NRC is aware of this significant financial problem and can take necessary actions assuring that the health and safety of the public is protected.
Because no action is required of a licensee by these amendments unless and until a bankruptcy petition is filed, there is no 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 States Code contains requirements regarding notification of creditors of bankruptcy. This rule requires one additional notification.
In addition, the required action consists only of a notification by mail to the NRC, an action representing less than one-half person-hour of effort.
The net overall cost to the industry is negligible.
BACKFIT ANALYSIS Backfit Analysis Factors 10 CFR 50.109 (50 FR 38097; 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 12/03/86 8
Enclosure F
[7590-01]
does not require "...the modification of or addition to systems, struc-tures, components, or design of a facility; or the design approval or manufacturing license for a facility; or the procedures or organization required to design, construct or operate a facility." The factors listed l
l in 10 CFR'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 50.54(f) indicates that new information requests should be evalu-ated 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.
(1) The objective of the amendments is for NRC to have means in place so that it would be alerted and would h, ave 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 bank-ruptcy proceedings.
Although the likelihood of utility bankruptcy is small and in most instances NRC would be aware of it occurring, there is a potential that NRC may not be aware of a particular bankruptcy situa-tion 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 these amendments unless and until a bankruptcy petition is filed.
(3) The amendments improve NRC's inspection and enforcement capabil-ities 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 12/03/86 9
Enclosure F
[7590-01]
level of risk to the public is small, NRC's timely involvement can result in some potential reduction in the risk of radiation exposure by reducing the likelihood that improper radioactive waste handling or decontamina-tion will occur at a facility where a licensee is involved in bankruptcy proceedings.
(4)
In a manner similar to that described in (3) above, although it would be small, the amendments result in some reduction in risk of radiological exposure of facility employees by reducing the potential for spread of contamination in the facility and resultant occupational exposure.
(5) The amendments impose requirements for administrative procedure action only, hence there is no equipment installation cost, no facility downtime cost, and no cost of construction delay. As indicated in (2),
there is no action required of a licensee unless and until a bankruptcy petition is filed and hence there is no continuing cost associated with the backfit.
Even in the event of bankruptcy the cost impact of this rule is negligible because the action required, namely a notice listing the location and date of the bankruptcy filing mailed to the NRC regional office, is minimal.
As noted in (3) and (4) above, timely involvement of NRC in the situation can minimize potential for spread of contamination in the facility and therefore also minimize added cleanup costs which could then occur.
This reduction in cost can be substantial compared to the small cost associated with the notification, resulting in net savings.
(6) The amendments are administrative and hence have no safety impact of changing plant or operational complexity.
(7) With regard to the resource burden on the NRC, no NRC activity is necessary unless and until a licensee submits a notification to the NRC.
If a notice were submitted, the amount of time spent on actually 12/03/86 10 Enclosure F
[7590-01]
reading and docketing of the notification would be minimal.
By alerting NRC to the situation, this rule would put NRC in a better reactive mode and thereby could reduce NRC staff time involved in activities such as necessary enforcement actions and meetings with a concerned public regard-ing a contaminated facility.
This reduction 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.
(8) The amendments apply to all power reactor licensees independent of facility type, design, and age.
(9) When the amendment is made effective, it will be a final action.
Backfit Analysis Determination Based on the analysis of the factors as presented above, the Commission has determined that the new reporting requirements 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 to prevent a decrease in the level of protection considered avail-able under current regulations. The rule is also considered to save 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, downtime, or construction costs and no effect on plant or operational complexity. The burden on industry and NRC is minimal, and in fact this action would probably result in a net reduction in NRC 12/03/86 11 Enclosure F
[7590-01) resource expenditures.
This action is justified for nonpower reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6.0), and imposing it for reactor plants also provides for consistency in the regulations.
LIST OF SUBJECTS IN 10 CFR PARTS 30, 40, 50, 61, 70 AND 72 Part 30 - Byproduct material, Government contracts, Intergovernmental relations, Isotopes, Nuclear materials, Penalty, Radiation protection, Reporting and recordkeeping requirements.
Part 40 - Government contracts, Hazardous materials - transportation, Nuclear materials, Penalty, Reporting and recordkeeping requirements, Source material, Uranium.
Part 50 - Antitrust, Classified information, Fire prevention, Incor-poration by reference, Intergovernmental relations, Nuclear power plants and reactors, Penalty, Radiation protection, Reactor siting criteria, Reporting and recordkeeping requirements.
Part 61 - Low-level waste, Nuclear materials, Penalty, Reporting and recordkeeping requirements, Waste treatment and disposal.
Part 70 - Hazardous materials - transportation, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material.
Part 72 - Manpower training programs, Nuclear materials, Occupational safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel.
12/03/86 12 Enclosure F
[7590-01)
For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72.
PART 30 - RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF BYPRODUCT MATERIAL 1.
The authority citation for Part 30 is revised to read as follows:
AUTHORITY:
Sections 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).
Section 30.7 also issued under Pub. L.95-601, sec. 10, 92 Stat.
2951 (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).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); $$ 30.3, 30.34(b) and (c), 30.41(a) and (c), and 30.53 are issued under sec. 161b, 68 Stat, 948, as amended (42 U.S.C. 2201(b)); and SS 30.6, 30.36, 30.51, 30.52, 30.55, and 30.56(b) and (c) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
2.
Section 30.34 is amended by adding a new paragraph (h) to read as follows:*
- Changes made from the proposed to the final rule are shown in comparative text; deletions are bracketed and lined through and additions are under-lined.
Comparative text will be removed before submittal to the Office 1
of the Federal Register.
12/03/86 13 Enclosure F
[7590-01]
S 30.34 Terms and conditions of licenses.
a a
a (h)(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; (ii) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling [a] the licensee or listing the license or licensee as pro-perty of the estate; or (iii) An affiliate (as that term is defined in 11 U.S.C. $ 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.
PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL 3.
The authority citation for Part 40 is revised to read as follows:
AUTHORITY:
Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat.
932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L.95-604, 92 Stat. 3033, as amended, 3039, rec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.86-373, 73 Stat.
688 (42 U.S.C. 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as 12/03/86 14 Enclosure F
[7590-01]
D s
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 (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).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 40.3, 40.25(d)(1)-(3), 40.35(a)-(d), 40.41(b).and (c), 40.46, 40.51(a) and (c); and 40.63 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); and SS 40.5, 40.25(c), (d)(3), and (4),
40.26(c)(2), 40.35(e), 40.42, 40.61, 40.62, 40.64, and 40.65 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
4.
Section 40.41 is amended by adding a new paragraph (f) to read as follows:
S 40.41 Terms and conditions of licenses.
A A
A A
A (f)(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; (ii) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling [a] the licensee or listing the license or licensee as pro-perty of the estate; or (iii) An affiliate (as that term is defined in 11 U.S.C. 5 101(2))
of the licensee.
12/03/86 15 Enclosure F
[7590-01)
(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.
PART 50 - DOMESTIC LICENSING 0F PRODUCTION AND UTILIZATION FACILITIES 5.
The authority citation for Part 50 is revised 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, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 2233, 2236, 2239); 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 (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, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332).
Sections 50.23, 50.35, 50.55, 50.56 also issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235).
Sec-tions 50.33a, 50.55a, and Appendix Q also issued under sec.1D2, 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).
Section 50.103 also issued 12/03/86 16 Enclosure F
[7590-01) under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).
Appendix F also issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 50.10(a), (b), :ind (c), 50.44, 50.46, 50.48, 50.54, and
'50.80(a) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C.
2201(b)); SS 50.10(b) and (c) and 50.54 are issued under sec.161i, 68 I'
Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 50.55(e), 50.59(b),
50.70, 50.71, 50.72, 50.73, and 50.78 are issued under sec. 161o, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
6.
Remove the authority citations following $$ 50.2, 50.10, 50.21, 50.22, 50.23, 50.30, 50.33, 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.
7.
Section 50.54 is amended by adding a new paragraph (cc) to read as follows:
$ 50.54 conditions of licenses.
a a
m (cc)(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 (8ankruptcy) 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)) con-trolling [a] the licensee or listing the license or licensee as property of the estate; or x
(iii) An affiliate (as that term is defined in 11 U.S.C. $ 101(2))
1 of the licensee.
12/03/86 17 Enclosure F
[7590-01)
(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.
PART 61 - LICENSING REQUIREMENTS FOR LAND DISPOSAL OF RADI0 ACTIVE WASTE 8.
The authority citation for Part 61 is revised 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. 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 througn 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, ime.ediately following the filing of a voluntary 12/03/86 18 Enclosure F
[7590-01]
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. $ 101(14))
controlling [a] the licensee or listing the license or licensee as pro-perty of the estate; or (iii) An affiliate (as that term is defined in 11 U.S.C. $ 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.
PART 70 - DOMESTIC LICENSING OF 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).
12/03/86 19 Enclosure F
[7590-01]
Section 70.61 also irsued 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 (1), 70.36, 70.39(b) and (c), 70.41(a),
70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3), and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C.
2201(b)); SS 70.7, 70.20a(a) and (d), 70.20b(c) and (e), 70.21(c), 70.24(b),
70.32(a)(6), (c), (d), (e), and (g), 70.36,70.51(c)-(g),70.56,70.57(b)
)
and (d), and 70.58 (a)-(g)(3) and (h)-(j) are issued under sec. 161i, 68 Stat. 949, as amended (42 U.S.C. 2201(1); and SS 70.5, 70.20b(d) and (e),
70.38, 70.51(b) and (i), 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. 161o, 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:
S 70.32 Conditions of licenses.
(a) Each license shall contain and be subject to the following conditions:
a a
(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 (8ankruptcy) of the United States Code by or against:
(A)
[A] The licensee; 12/03/86 20 Enclosure F
[7590-01) s.
(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 pro-perty 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.
R A
PART 72 - LICENSING REQUIREMENTS FOR THE STORAGE OF SPENT FUEL IN AN INDEPENDENT SPENT FUEL STORAGE INSTALLATION (ISFSI) 12.
The authority citation for Part 72 is revised to read as 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.86-373, 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).
For 12/03/86 21 Enclosure F
[7590-01]
the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273):
SS 72.6, 72.14, 72.15, 72.17(d), 72.19, 72.33(b)(1), (4), (5), (e), (f),
72.36(a) are issued under sec. 161b,.68 Stat.'948, as amended (42 U.S.C.
2201(b)); SS 72.10, 72.15, 72.17(d), 72.33(c), (d)(1), (2), (e), 72.81, 72.83, 72.84(a), 72.91 are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 72.33(b)(3), (d)(3), (f), 72.35(b),
72.50 - 72.52, 72.53(a), 72.54(a), 72.55, 72.56, 72.80(c), 72.84(b) are issued under sec. 161o, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
13.
Section 72.33 is amended by adding a new paragraph (b)(6) to read as follows:
S 72.33 License conditions.
a (b) Every license issued under this Part shall be subject to the following conditions, even if they are not explicitly stated herein:
a a
a a
a (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:
(A) [A] The licensee; (B) An entity (as that term is defined in 11 U.S.C. S 101(14))
controlling [a] the licensee or listing the license or licensee as pro-perty of the estate; or (C) An affiliate (as that term is defined in 11 U.S.C. S 101(2))
of the licensee.
(ii) This notification must indicate:
12/03/86 22 Enclosure F
[7590-01]
(A) The bankruptcy court in which the petition for bankruptcy was filed; and i
(B) The date of.the filing of the petition.
m a
a a
Dated at Bethesda, Maryland this day of
, 1986.
For the Nuclear Regulatory Commission.
Victor Stello, Jr.
Executive Director for Operations.
i t
12/03/86 23 Enclosure F
m,u n. ~.. g..
.s.
Off y- (f g sb ff YN Y
Fubstitute text to replace last paragraph on p.
8 of Enclosure A and intret.uctory paragraph immediately following the heading. 5.1 Backfit Analysis Factors, on p. 9 of Enclosure B.
Beckfit Analysis MM
.v - v v 10 CFR 50.109 (50 FR 38097, September 20,, 1985) requires that an analysis be perforJned for backilts which the Commission seeks to impose on power reactor licensees.
This rule requiring notification of bankruptcy does not require ".
the modification of or addition to systems, structures, components, or design of a facility; or the. design approval or manufacturing license for a facility; or the procedures or organization required to design, construct or operate a facility."[J ct) fl0 CFP 40.109(c), however,
/
\\
fe/
~
sponsibilities and 10 CFR co the rule does. modify a licensee's repo/rtin be a/
/
valuated to 50.54(f) indicates that new information. requests should determine whether the burden to beelmposed on respond n is justified in
~
l view of the potential safety signtricance of the issue to e addressed in the
.Wested informatinn[
[L 745 car
'l h
V6.' " s h l...
'}~){C. /8,,- 61 4 4 y
y,g
?
-1 INSERT FOR SECTION TITLED "BACKFIT ANALYSIS FACTORS" M
impose {requirementsforadministrativeprocedureaction Tho --- "---- -
'onl y, which procedural action, a notification, would have no direct b3sring on the safe design or operation of a facility. Further, 10CFR50.lO9 !s intended to apply only to more stringent safety or cccurity requirements which are to be imposed on a licensee, and to cccure that such new requirements meet a test of providing a substantial
. increase in overall protection of the public health and safety.fThema "*">
A m_ A m.
notifica on Feqdir ments are not increased safety requirements but would provide increased assurance that the current level of safety j
atteined under current regulation is maintained.fThe backfit rule 10 CFR b50.109isnotintendedtoapplytopurelyadministrativeruleswhichare not intended to increase protection to public-health and sefety or security.j
}
Tha requirement for notification of bankruptcy is appropriately considered as a request for information under 10 CFR 50.54 (f ), as information needed by the Commission to determine whether or not a license should be modified, suspended, or revoked. Under 50.54 (f) it is rgquired to prepare the reason or reasons for the request prior to issuance to ensure that the burden to be imposed is justified in view of the potential safety significance of the issue to be addressed in the requerted information. Because the factors listed in 50.lO9(c) can be i
relevant and useful in an evaluation of safety significance, they have buen used in this instance to evaluate these amendments 4 /0 dFR TD e
W 6
h.
kL'W /2 $(p hl
?'.
Substitute text to replace _Backfit Analysis Determination on p.
11 of Enclosure A and page 11 of Enclosure B.
Backfit M,. M.. Determination I
Based on the analysis
- f th f
- = as presented above, the Commission has determined that the new reporting requirements 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 sa that it can take steps to prevent a decrease in the level of protection considered available under current regulations.
The rule is also considered to save resources in bankruptcy circumstances.
By reason of the rule, there is some, albeit i
small, potential for reduction in public and occupational exposure.
The cetion required by this rule is administrative, resulting in no installation, downtine, or construction costs and no effect on plant or operational 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 i
facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6.0), and imposing it for reactor plants also provides for consistency in the regulations.
{
l b.y
~.
E l
.6 Victor Stello, Jr.
2-following receipt of the notification, the Comission will assess the appropriate action to take in any bankruptcy proceeding involving the licensee.
The purpose of this would be to seek to have available assets of the licensee applied to cover costs of site cleanup before they are disbursed elsewhere.
RECOMMENDATIONS AND NOTATIONS Recomendations.
It is recomended that you approve the final rule and publication of a notice in the Federal Register (see Enclosure A).
It is also recomended that you certify that the final rule will not have a significant economic impact on a substantial number of small entities (see REGULATORY FLEXIBILITY CERTIFICATION in Enclosure A and the REGULATORY ANALYSIS, Enclosure B).
Notations.
(1) the information collection requirements of this rule have been approved by the Office of Management and Budget (see Enclosure A).
(2)
Under 10 CFR 51.22(c)(3)(iii) preparation of an anvironmental impact statement or an environmental assessment is not necessary, since the eligibility criteria for categorical exclusion are met.
(3) In accordance with 10 CFR 50.109, a backfit analysis has been performed which indicates that the direct and indirect costs of implementation of this ruJe are minimal and are considered justifiable and warranted to prevent a decrease in the level of protection considered available under current regulations.
Information relevant to the backfit factors specified in 10 CFR 50.109(c) is set out as part of the Supplementary Information to the Final Rule (Enclosure A) and in the Regulatory Analysis (Enclosure B).
(4) No additional NRC resource requirements are anticipated as a result of this action.
(5) The Agreement States were informed of the proposed rulemaking. The final rules are a matter of compatibility.
(6) The Subcomittee on Nuclear Regulation of the Senate Environment and Public Works Comittee, the Subcommittee on Energy and the Environment of the House Interior and Insular Affairs Comittee, and the Subcommittee on Energy Conservation and Power of the House Energy and Commerce Comittee will be notified of the Commission's action by letter such as Enclosure C.
(7) Notification of the Comission of this action will be made j
in the Daily Staff Notes (Enclosure D).
(8) A public announcement, such as Enclosure E, will be issued at the same time the notice of final rulemaking is j
j published in the Federal Register, i
(s)
Eric S. Beckjord, Director Office of Nuclear Regulatory Research
Enclosures:
As stated RES:MB RES:MB RES:MB RES:DD/ DES RES: DES NMSS NRR ADM FCardile:h KSteyer CSerpan LCShao GAArlotto JGDavis HRDenton DGrimslev/86*
10/7/86
- 10/7/86* 10/8/86* 10/9/86*
10/9/86*
10/23/86 Memo 10/22* 10/24 SP RES:0D RES:DI@ OGC(AOs GWKerr DFRoss EBeckjort WParler 10/04/86*
10/15/86* 40/M/86*11h0/86 il
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