ML20211E970

Transmits State Agreements Program Info SP-97-067, Final Policy Statements Implementing Procedures Summary of Increased Compatibility Requirements & Request for Comments on Proposed Compatibility Categories for NRC Rules

ML20211E970
Person / Time
Issue date:	09/15/1997
From:	Lohaus P NRC OFFICE OF STATE PROGRAMS (OSP)
To:	GENERAL, OHIO, STATE OF, OKLAHOMA, STATE OF, PENNSYLVANIA, COMMONWEALTH OF
Shared Package
ML20211E975	List: ML20211E970 ML20211F012
References
SP-97-067, SP-97-67, NUDOCS 9709300323
Download: ML20211E970 (59)

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,/ UNITED STATES g ]. NUCLEAR REGULATORY COMMISSION WASHINGTON. D.C. 30066 4 001 September 15, 1997  !

ALL AGREEMENT STATES OHIO, OKLAHOMA, PENNSYLVANIA TRANSMITTAL OF STATE AGREEMENTS PROGRAM INFORMATION (SP 07 067)

Your attention is invited to the enclosed correspondence which contains:

INCIDENT AND EVENT INFORMATION...........

PROGRAM MANAGEMENT INFORMATION.....XX FINAL POLICY STATEMENTS; IMPLEMENTING PROCEDURES;

SUMMARY

OF INCREASED COMPATIBILITY REQUIREMENTS; AND REQUEST FOR COMMENTS ON PROPOSED COMPATIBILITY CATEGORIES FOR NRC RULES TRAINING COURSE INFORMATION...............

T ECHNIC AL INFORMATIO N.......... ................

OTHER INFO RM ATlO N........... . ........ .............

Suonterntugyjnformation: With Staff Requirements Memorandum (SRM) dated June 30, 1997, which was sent to you on August 6,1997 (SP 97 057), the Commission approved two final Policy Statements and accompanying implementing procedures (Staternent of Principles and Policy for the Agreement State Program and Policy Statement on Adequacy and Compatibility of Agreement State Programs). The final Policy Statements, copies of which are enclosed, were pubiished in the Federal Realster on September 3,1997.

Yhe implementing procedures consist of: (1) Management Directive 5.8 and its associated Handbook 5.8 " Proposed 274b Agreements with States"; (2) Management Directive 5.9 and its associated Handbook 5.9 " Adequacy and Compatibility of Agreement State F'rograms"; and (3) OSP Internal Procedure B,7 (Revision 1),," Compatibility Categories and Health cad Safety identification for NRC Regulations and Other Program Elements." Copies ,

of these are also enclosed for your information.

9 Please note that the compatibility and health and safety categories for regulations and other program elements,' set out in Internal Procedure B.7, reflect comments received from the Agreement States and NRC offices before March 3,1997. However, as the result of {

further review of the charts in Internal Procedure B.7, changes to the compatibility categories of some rules are being proposed. Your attention is especially drawn to the

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I sp.97 007 2-i definition of " declared pregnant woman" in Section 20.1003; the deliberate wrongdoer rule in Sections 30.10,40.10,61.9b and 70,10; and the training requirements for industrial ,

radiographers in Part 34. Compatibility categories for final rules published since May 16, 1996 through August 8,1997, and not included in the charts, are also proposed. These  !

are enclosed as tables entitled " Proposed Revisions to the Internal Procedure B.7 Rule Tables" and " Compatibility Categories of Final Rules Adopted since May 16,1990 through August 8,1997," respectively. We would appreciate your review and comment on these proposed compatibility category designations. Please provide any comments by November 16,1997.  !

As a result of the compatibility categories designated pursuant to the Policy Statement, a <

number of NRC rules are now no longer designated for compatibility or health and safety

. purposes or the compatibility designation is less rigorous. Conversaly, there are some NRC i rules for which the compatibility designation is more rigorous (e.g., a former Division 2 that allowed States to be more stringent changed to a Category B that requires the provision to be essentially identical). _ As requested during the September 17 19,1996, All Agreement State Meeting, a chart identifying more rigorous designations is enclosed for your information and use in planning rule changes. Please note that the implementing proceduras (See Pst V of Handbook 5.9) provide that Agreement State rules should conform to the new policy not later than 3 years after the policy's effective date (i.e., date of publication in the Endstal Realstad. Finally, in item 9 of the June 30,1997 SRM, the Commission directed that it should be clear that reporting of materials events to NRC by the Agreement States la mandatory. This change has been incorporated into the program i element chart in Internal Procedure B.7. ,

if you have any questions regarding this correspondence, please contact me or the individual named below.

POINT OF CONTACT: Cardella Maupin TELEPHONE: (301)415 2312 FAX: (301)415 3502  ;

INTERNET: CHM @NRC. GOV This information request has been approvu by OMB 3150 0029, eviration April 30, 1998. Although the average estimated burden per response to comply with this voluntary collection requests is 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br />, the estimated burden for this particular request is 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />.

Forward any comments regarding the burden estimate to the Information and Records Branch (T 6 F33), U.S. Nuclear Regulatory Commission, Washington, DC 20555 0001, and to the Paperwork Reduction Project (3150-0052), Office of Management and Budget, Washington, DC 20503, if a document does not display a currently valid OMB control number, the NRC may not conduct or sponsor, and a person is not required to respond to, e a collection of information.

& list- Mf Paul H. Lohaus, Deputy Dir tor '

Office of State Programs ,

Enclosures:

As stated

SP 97 067 2- SEP 151997 definition of " declared pregnant woman" in Section 20.1003: the deliberate wrongdoer rule in Sections 30.10,40.10,61.9b and 70.10; and the training requirements for industrial >

radiographers in Part 34. Compatibility categories for final rules published since May 16, 1996 through August 8,1997, and not included in the charts, are also proposed. These ,

are enclosed as tables entitled " Proposed Revisions to the Internal Procedure B.7 Rule Tables" ad " Compatibility Categories of Final Rules Adopted since May 16,1996 through August 8,1997," respectively. We would appreciate your review and comment on these proposed compatibility category designations. Please provide any comments by November 15,1997.

As a result of the compatibility categories designated pursuant to the Policy Statement, a number of NRC rules are now no longer designated for compatibility or health and safety purposes or the compatibility designation is less rigorous. Conversely, there are some NRC rules for which the compatibility designation is more rigorous (e.g., a former Division 2 that allowed States to be more stringent changed to a Category B that requires the provision to be essentially identical). As requested during the September 17 19,1996, All Agreement State Meeting, a chart identifying more rigorous designations is enclosed for your information and use in planning rule changes. Please note that the implementing procedures (See Part V of Handbook 5.9) provide that Agreement State rules should ,

conform to the new policy not later than 3 years after the policy's effective date (i.e., date of publication in the Federaj Realster). Finally, in item 9 of the June 30,1997 SRM, the Commission directed that it should be clear that reporting of materials events to NRC by the Agreement States is mandatory. This change has been incorporated into the program element chart in internal Procedure B.7.

'If you have any questions regarding this correspondence, please contact me or the individual named below.

POINT OF CONTACT: Cardella Maupin TELEPHONE: (301)415 2312 FAX: (301)416 3502 INTERNET: ,

CHM @NRC. GOV This information request has been approved by OMB 3150-0029, expiration April 30, 1998. Although the average estimated burden per response to comply with this voluntary collection requests is 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br />, the estimated burden for this particular request is 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />.

Forward any comments regarding the burden estima% to the Information and Records Branch (T 6 F33), U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, and to the Paperwork Reduction Project (3150 0052), Office of Management and Budget,

'Nashington, DC 20503, if a document does not display a currently valid OMB control number, the NRC may not conduct or sponsor, and a person is not required to respond to, a collection of information. t Paul H. Lohaus. Deputy Director Nk Offico of State Programs j L RT Enclosuros: "b[Q As stated Dittribution:

DlR RF DCD (SP03) E00 RF (WITS 9700223)

SDroggitis PDR (YES.f ) (NO_)

A/S File 'See Previous Concurrence.

DOCUMENT NAME: G:\RRK\SRM\SP97067. thm 0:\RRK\SRM\lNOREASE.TBL tm. ..,,.eu.a -oi.w.c.i.m i,.. c cm -now.n.cnn,.ne.oco...s cm -n.n.cs, au.nc . w - no em OF FICL OSP [ OSP:DD l OSP:D j[ (( l l NAME CMaupin:nb PLohaus RBangart iML DATE 09/o4/97* o9/o4/97

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. 05P FILE CODE: SP- A- ,

List of Enclosures to SP 97-067 Dated Sootember 15,1997 FINAL POLICY STATEMENTS; IMPLEMENTING PROCEDURES;

SUMMARY

OF INCREASED COMPATIBILITY REQUIREMENTS; AND REQUEST FOR COMMENTS ON PROPOSED COMPATIBILITY CATEGORIES FOR NRC RULES ENCLOSURE 1 - 0:\RRK\SRM\FRN.WP5 ENCLOSURE 2 - G:\TJO\COMMPAP\MD5B. FIN ENCLOSURE 3 - G:\RRK\SRM\MD59. FIN ,

0:\RRK\SRM\HNDBK59. FIN ENCLOSURE 4 - G:\RRK\SRM\0SPB7. FIN ENCLSOURE 5 - G:\NDB\B7 DELTA.CHT G:\RRK\SRM\NEWFIN1.CHT ENCLOSURE 6 - G ARRK\.SRM\lNCREASE.TDL

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• I SP 97- 2-e  ;

f definition of " declared pregnant woman" in Section 20.1003; the deliberate wrongdoer rule in Sections 30.10,40.10,61.9b and 70.10; and the training requirements,fo'r industrial radiographers in Part 34. Compatibility categories for final rules published'since May 16, 1996 through August 8,1997, and not included in the charts, are als7 proposed. These  ;

are enclosed as tables entitled " Proposed Revisions to the internal Procedure B.7 Rule Tables" and " Compatibility Categories of Final Rules Adopted sines May 16,1996 through August 8,1997," respectively. We would appreciate your review and comment on these proposed compatibility category designations. Please provide,a'ny comments by November 15,1997.

As a result of the compatibility categories designated pursuant to the Policy Statement, a number of NRC rules are now no longer designated fopdompatibility or health and safety purposes or the compatibility designation is less rigofous. Conversely, there are some NRC rules for which the compatibility designation is mop rigorous (e.g., a former Division 2 that allowed States to be more stringent changed to a' Category B that requires the provision to be essentially identical). As requested during the September 17 19,1996, All Agreement State Meeting, a chart identifying more rigorou's designations is enclosed for your information and use in planning rule changes'. Please note that the implementing procedures (See Part V of Handbook 5.9)Mrovide that Agreement State rules should conform to the new policy not later thap'3 years af ter the policy's effective date (i.e., date of publication in the Federal Renisted./ Finally, in item 9 of the June 30,1997 SRM, the Commission directed that it should be clear that reporting of materists events to NRC by the Agreement States is mandatory This change has been incorporated into the program element chart in Interna Procedure B.7.

If you have any questions rega'rding this correspondence, please contact me or the individual named below. /

POINT OF CONTACT: Cardelia Maupin TELEPHONE: (301)415 2312 FAX: / (301)415 3502 INTE,RNET: CHM @NRC. GOV This information. r quest has bsen approved by OMB 3150 0029, expiration April 30, 1998. The estimated burden per response to comply with this voluntary collection request is 3 hours3.472222e-5 days <br />8.333333e-4 hours <br />4.960317e-6 weeks <br />1.1415e-6 months <br />. Forward any comments regarding the burden estimate to the Information and Records Branch (T-6 F33), U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, and to the Paperwork Reduction Project (3150 0052), Office of Management and Budget, Washington, DC 20503. If a document does not display a currently valid OMB control, number, the NRC may not conduct or sponsor, and a person is not required to respo,nd to, a collection of information. Origbal ed

_f Paul H. Lohaus. Deputy fDirector ggg(

Office of State Programs g

/

Enclosures:

7)

As stated ,

/ Dist_ributip.D

/ DIR RF .

DCD (SP03)

SDroggitis PDR (YESf.) (NO _)

A/S File *See Previous Concurrence. FAXED TO STATES:

DOCUMENT NAME: GnRRK\SRM\SP97AAA,51 G:\RRK\9RM\tNCREASE.TBL is ,ome a coey et one document, wCate in the boa; *c - copy wrihout ettschm.nirenciosure *ta - copy with attachmenUenclosure *N* - No copy

' OF FICE OSP l OSP:DD [ OSP f 4 l l l NAME CMaupin:nb PLohaus RBangert (L-M DATE o9/04/97* o9/o4/97

• o9Q/97

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OSP FILE CODE: SP-A+

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1 SP 97- 2-

• e l definition of " declared pregnant woman" in Section 20.1003 the deliberate wrongdoer rule in Sections 30.10,40.10,61.9b and 70.10; and the training requirements for industrial,'

radiographers in Part 34. Compatibility categories for final rules published since May)B, 1996 through August 8,1997, and not included in the charts, are also proposed. These are enclosed as tables entitled " Proposed Revisions to the Internal Procedure B.7 pu'le Tables" and " Compatibility Categories of Final Rules Adopted since May 16,19p6 through August 8,1997," respectively. We would appreciate your review and commprit on these proposed compatibility category designations. Please provide any comments by November 15,1997.

I i

As a result of the compatibility categories designated pursuant to the P61 icy Statement, a number of NRC rules are now no longer designated for compatibilitypr health and safety purposes or the compatibility designation is less rigorous. Conversely, there are some NRC 1 rules for which the compatibility designation is more rigorous (e.g.( a former Division 2 that allowed States to be more stringent changed to a Category B tb6t requires the provision to be essentially identical). A chart identifying more rigorous deP Ignations is enclosed for your information and use in planning rule changes. Please riote that the implementing procedures (See Part V of Handbook 5.9) provide that Agreement State rules should conform to the new policy not later than 3 years af ter the' policy's effective date (i.e., date i of publication in the Federal Reaister). Finally, in item p'of the June 30,1997 SRM, the Commission directed that it should N de + that reporting of mater 8als events to NRC by the Agreement States is mandatory. h umle has been incorpo ated into the program element chart in Internal Procedure B 7.

[

If you have any questions regarding this corresp/ondence, please contact me or the individual named below.

POINT OF CONTACT: Cardelia Maupin TELEPHONE: p/(301) 415 2312 FAX: ,

(301)415 3502 INTERNET: CHM @NRC. GOV

/

./

Paul H. Lohaus, Deputy Director

/ Office of State Programs l

Enclosures:

/

As stated /

/

/,

Distribution: ,

DIR RF DCD (SP03)

SDroggitis PDR (YESg_) (NO_)

A/S File FAXED TO STATES:

M 51 G:\RRK\SRM\lNCREASE.TBL DOCUMENT NAME: G:\RRK\SRM\SPf' T3,oconve e copy of thee document, ind6cate in the bon: *p '

op without ettechmentlenclosu,e "t* = Copy with attach,nent/enclosu,o *N' = No copy OFFICE Og l QSFIOON- OSP:D l l NAME CMaupirQ4 ' PLoh'aus , RBangart DATE- Og/U/97 05/'t797 08/ /97 OSP FILE CODE: SP-A+

Enclosure 1 Final Policy Statements as Published in the September 3,1997 Federal Reaister

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[7590 01 PJ NUCLEAR REGULATORY COMMISSION Statement of Principles and Policy for the Agreement State Program; Policy Statement On Adequacy and Compatibility of Agreement State Programs AGENCY: Nuclear Regulatory Commission.

ACTION: Final policy statements.

SUMMARY

The Nuclear Regulatory Commission (NRC) is publishing two final policy statements: the " Statement of Principles and Policy for the Agreement State Program," and

" Policy Statement on Adequacy and Compatibility of Agreement State Programs."

EFFECTIVE DATE: (Upon publication in the Federal Register.)

/

ADDRESSES: Documents referenced in this notice are available for inspection in the Public Document Room,2120 L Street, NW (Lower Level), Washington, DC, between 7:45 am and 4:15 pm.

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FOR PURTHER INFORMATION CONTACT: Ms. Cardella Maupin, Sr. Project Manager, '

Office of State Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555, i

- telephone (301) 415 2312.

t SUPPLEMENTARY INFORMATION:

t

1. SACKGROUND A. Statement of Principles and Policy for the Agreement State Program On August 25,1993, the Commission requested the NRC staff to recommend improvements to the NRC's Agreement State Program to assure adequate protection of public health and safety. The draft Policy Statement was published in the Federal Register on August 5,1994 (59 FR 40058). At the Commission's request, the public comment period scheduled to end on October 4,1994, was extended to December 19,1994 (59 FR 52316).

A final Policy Statement was prepared based on the public comments, other activities and issues before the Commission, e.g., the " Policy Statement on Adequacy and Compatibility of Agreement State Programs," issues discussed at public briefings of the Commission by the Organization of Agreement States (OAS), and the Commission's deliberations on the integrated Materials Podormance Evaluation Program. On May 5, 1995, the NRC staff submitted to the Commission the " Final Statement of Principles and Policy for the Agreement State Program" and " Procedures for Suspension and Termination 2

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of an Agreement State Program" (SECY 95115) that contained the full analysis of ,

comments. By Staff Requirements Memorandum dated June 29,1995, the Commission l provided comments on the Statement of Principles and Policy for the Agreement State Pro 9 tem and directed staff to develop procedures for placing an Agreement State in probationary status and for implementing the phase in of a new Agreement State program. l On October 3,1996, the NRC staff submitted to the Commission the Statement of Principles and Policy for the Agreement State Program that had been modified as directed t

by the Commission (SECY 96 213). Further revisions were made to ensure consistency -

with the revised Policy Statement on Adequacy and Compatibility of Agreement State Programs. The procedures for suspension, emergency suspension and termination of agreements were finalized on April 25,1996, and the procedure for placing an Agreement >

State in probationary status was finalized on July 3,1996. l B. Statement on Adequacy and Compatibility of Agreement State Programs. l On July 21,1994 (59 FR 37269), the Commission published in the Federal Register, for public comment, a draft Policy Statement regarding the adequacy of Agreement State programs to protect public health and safety and compatibility with NRC regulatory programs. The comment period for the draft Policy Statement was scheduled to expire on October 19,1994, but was extended to December 19,1994 (59 FR 52317). In addition, a public workshop was held on November 15,1994 (59 FR 52321) to provide an opportunity for Agreement States and interested members of the public to provide comments on the draft Policy Statement. ,

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• Policy Statement on Adequacy and Compatibility of Agreement State Program" was prepared based on the public cmnments and other activities and issues before the Commission. On May 3,1995, the NRC staff submitted to the Commission the

" Final Policy Statement on Adequacy and Compatibility of Agreement State Programs" (SECY 95112) that contained the full analysis of comments.

C. Status of the Policy Statements The Commission approved both policy statements in principle with a Staff Requirements Memorandum dated June 29,1995, but deferred their implementation until allimplementing procedures were completed and approved by the Commission. On August 2,1995 (60 FR 39463), the Commission published in the Federal Register the status of these two policy statements and a notice of their availability.

' NRC staff also prepared draft implementing procedures for phased implementation of a new Agreement State program that contained language for a standard agreement (Management Directive 5.8 and its associated handbook). Comments on the draft implementing procedures for phased implementation of new agreements and the standard agreement were requested from the Agreement States on November 15,1996. The complete analysis of these comments is included in " Final Recommendations on Policy Statements and Implementing Procedures for: Statement of Principles and Policy for the Agreement State Program and Policy Statement on Adequacy and Compatibility of 1

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l Agreement State Programs" (SECY 97 054, dated March 3,1997) that is available for ,

inspection at the NRC Public Document Room. A summary of the comments appears with the text of the final policy statement in this notice, in October 1995 a Working Group consisting of representat ives of Agreement States and the NRC was formed to develop implementing procedures for the " Policy Statement on Adequacy and Compatibility of Agreement State Programs." The formation of this Working Group was announced in the Federal Register on December 1,1995 (60 FR 61716). A notice announcing availability of the initial Working Group report (August 21, 1996) and implementing procedures was published in the Federal Register on September 19,1996 (61 FR 49357). Comments also wera requested specifically from Agreement States and panelists who participated in the November 15,1994, public workshop. The analysis of State and public comments is part of the supplemental report of the Workina Group dated January 27,1997, that is available for inspection at the NRC Public Document Room. A summary of the comments appears with the text of the final policy statement in this notice,

11. STATEMENT OF PRINCIPLES AND POLICY FOR THE AGREEMENT STATE PROGRAM A. Comment Summary Comment letters were received from twelve Agreement States on the implementing procedures for phased agreements (Managemsnt Directive 5.81. There was strong 4

opposition from the Agreement States on the inclusion of mandatory phased agreements 5

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for states seeking Agreement State status. Staff analyzed the comments and agreed with  ! ..

the concerns associated with the use of phased agrooments. Changes were made to the i Policy Statement to remove the phased agreement concept and to include revisions offered by the Agreement States, as appropriate. The Policy Statement was also edited to conform it to the position that Agreement States have flexibility to impose legally binding requirements on its licensees through mechanisms other than rules.

The text of the final policy statement follows.

B. The Commission Policy STATEMENT OF PRINCIPLES AND POLICY FOR THE AGREEMENT STATE PROGRAM

1. PURPOSE, The purpose of this Statement of Principles and Policy for the Agreement State Program is to clearly describe the respective roles and responsibilities of the U.S. Nuclear Regulatory Commission (NRC) and States in the administration of programs carried out under Section 274 of the Atomic Energy Act of 1954, as amended. Section 274 provides l broad authority for the NRC to establish Federal and State cooperation in the administration l

l l of regulatory programs for the protection of public health and safety in the industrial, I

medical, and research uses of nuclear materials.

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'. . o I' This Policy Statement addresses the Federal State interaction under the Atomic Energy Act to: (1) establish and maintain agreements with States under Section 274(b) that provide for discontinuance by the NRC, and the assumption by the State, of responsibility for administration of a regulatory program for the use of byproduct, source, and small quantities of special nuclear matenal, and (2) ensure that post agreement interactions among the NRC and Agreement State radiation control programs are coordinated and compatible and that Agreement State programs continue to provide adequate protection of public health and safety.

This Policy Statement establishes principles, objectives, and goals that the Commission expects will be reflected in the implementing guidance and programs of the NRC and Agreement States to meet their respective program responsibilities and that should be achieved in the administration of these programs.

This Policy Statement is intended solely as guidance for the Commission and the Agreement States in the implementation of the Agreement State program. This Policy Statement does not itself impose legally binding requirements on the Agreement States, in addition, nothing in this Policy Statement expands the legal authority of Agreement States beyond that already granted to them by Section 274 of the AEA and other relevant legal authority, implementation procedures adopted pursuant to this Policy Statement shall be consistent with the legal authorities of the Commission and the Agreement States.

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2. STATEMENT OF LEGISLATIVE INTENT.  ;

The Atomic Energy Act of 1954 did not specify a role for the States in regulating the use of nuclear materials. Many States were concerned as to what their responsibilities in this area might be and expressed interest in seeing that the boundaries of Federal and State authority were clearly defined. This need for clarification was particularly important 4

in view of the fact that although the Federal government retained sole responsibility for protecting public health and safety from the radiation hazards of byproduct, source, and special nuclear meterial, the responsibility for prot 3cting the public from the radiation hazards of other sources such as x ray machines and radium had been borne for many years by the States. ,

Consequently, in 1g5g Congress enacted Section 274 of the Atomic Energy Act to establish a statutory framework under which States could assume certain for a tory Jurisdiction over byproduct, source, and special nuclear materialin quantities less than a critical mass. The primary purpose of the legislation was to authorize the Commission to discontinue its regulatory authority over the use of these materials and for assumption of this authority by the States. The Commission retained regulatory authority over the licensing of certain facilities and activities such as nuclear reactors, larger quantities of special nuclear material, and the export and import of nuclear materials.

In considering the legislation, Congress recognized that the Federal government would need to assist the States to ensure that they developed the capability to exercise i

their regulatory authority in a competent and effective manner. Accordingly, the legislation >

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• • euthorized the Commission to provide training and other services to State officials and employees. However, in rendering this assistance, Congress did not intend that the Commission would provide any grants to a State for the administration of a State  ;

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regulatory program. This was fully consistent whh the objectives of Section 274 to qualify ,

States to assume independent regulatory authority over ceneln defined areas of regulatory  ;

jurisdiction and to permit the Commission to discontinue hs regulatory responsibilities in -

those areas. ,

' in order to relinquish its authority to a particular State, the Commission must find i that the program is compatible with the Commission's program for the regulation of radioactive materials and that the State program is adequate to protect public health and  ;

safety, in addition, the Commission has an obligation, pursuant to Section 274(j) of the Act, to review existing Agreement State programs to ensure continued adequacy and compatibility. Section 274(j) of the Act provides that the NRC may terminate or suspend .,

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, all or part of its agreement with a State if the Commission finde that such termination is necessary to protect public health and safety or that the State has not complied with the provisions of Section 274(j) In these cases, the Commission must offer the State ,

reasonable notice and opportunity for a hearing. In addition, the Commission may ,

temporarily suspend all or part of an agreement in the case of an emergency altuation, i

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i C. PRINCIPLES OF PROGRAM IMPLEMENTATION, .

1. Good Regulation Principles.

4 in 1991, the Commission adopted ' Principles of Good Regulation" to serve as a guide to both agency decision making and to individual behavior as NRC employees.

Adherence to these principles has helped to ensure that NRC's regulatory activities have been of the highest quality, appropriate, and consistent. The "Princl( < s of Good Regulation" recognize that strong, vigilant management and a desire to improve ,

performance are prerequisites for success, for both regulators and the regulated industry.

The Commission believes that NRC's implementation of these principles has served the public, the Agreement States, and the regulated cornmunity well. The Commission further believes that such principles may be'useful as a part of a common culture that NRC and the Agreement States share as co regulators. Accordingly, the Commission encourages each Agreement State to adopt a similer set of principles for use in its own regulatory program.

Regulatory decisions and actions should be developed and implemented in an ooer and publicly credible manner and should be able to withstand scrutiny. Such scrutiny should be welcomed b) the regulator. The regulator should be independent and impartialin its actions, and this should be clearly evident. Regulations and regulatory decisions should be baed on assessments of the best available information from affected and interested 1

individuals and organizations, as well as on the best available knowledge from research and operational experience. Significant decisions, for example, a change in enforcement policy, t

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should be documented explaining the rationale for such decisions. The public should have ,

en opportunity for early involvement in significant regulatory program decisions. Where several effective alternatives are available, the alternative that best assures safety while considering differing views should be adopted, considering the resources needed to implement that alternative. Regulations should be necessary, and appropriate, to assure safety, and should be clear, coherent, logical, and practical. Regulatory actions should be fully consistent with regulations or other legally binding requirements and good public policy and should lead to stability and predictability in the planning and implementation of radiation control programs.

Failure to adhere to these principles of good regulation in the conduct of operations should be a sufficient reason for a regulatory program to self initiate program changes that will result in needed improvements. Allinvolved should welcome expressions of concern that indicate a program may not be operating in accordance with these principles and revise their program to more completely reflect these principles.

It is not intended that these principles of good regulation be established as formal criteria against which NRC and Agreement State programs would be assessed. Rather, the expectation is that these principles will be incorporated into the day to day operational fabric of NRC and Agreement State materials programs. These principles should be used in the formulation of policies and programs, implementation of those policies and programs, and assessments of program effectiveness. Application of these principles will ensure that complacency will be minimized, that adequate levels of protection of public health and safety are being provided, and that government employees tasked with the responsibility l

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for these Federal and State regulatory programs serve the public in an effective, efficient, . . . ,

and responsive manner. These principles are primarily for the use of NRC and Agreement State materials program managers and staff in the self assessment of their respective programs and to use in the establishment of goals and objectives for the continual improvement of their respective programs. Deficiencies identified during the conduct of NRC Region and Agreement State formal program performance reviews may indicate that the program is not adhering to these principles of good regulation. The organization being assessed should factor the need for these principles into its actions to address identified deficiencies.

2. Coherent Nationwide Effort.

The mission of the NRC is to assure that civilian use of nuclear materials in the United States is carried out with adequate protection of public health and safety. NRC acknowledges its responsibility, shared with the Agreement States, to ensure that the regulatory programs of the NRC and the Agreement States collectively establish a coherent nationwide effort for the control of AEA materials. The basic elements of such regulatory programs include ability to ensure adequate protection of public health and safety, compatibility in areas of national interest, sufficient flexibility to accommodate local needs and conditions, ability to assess program performance on a consistent and systematic basis, and principles of good regulation in program administration.

Each of these elements is reflected and addressed in specific sections of this Policy Statement.

12

- . . . - = . - - - . _ - - - - . - _ - - . - . - . . . - _ - . _ . - . . . - - - - . . - - . . -

t

-* 3. Adequate to Protect Public Hostth and Safety.

NRC and the Agreerr.snt States have the responsibility to ensure adequate protection of public health and tafety in the administration of their respective regulatory programs controlling the uses of AEA materials. Accordingly, NRC and Agreement State programs shall possess the requisite supporting legislative authority, implementing orgenlaation structure and procedures, and financial and human resources to effectively administer a radiation control program that ensures adequate protection of public health and safety.

4. Compatible in Areas of Na:lonel Interest.

NRC and the Agreement States have the responsibility to ensure that consistent and compatible radiation control programs are administered. Such radiation control programs

. thould be based on a commun regulatory philosophy including the common use of definitions and standards. They should be not only effective and cooperatively implemented by NRC and the Agreement Gtates, but also should provide uniformity and ,

consistency in program areas having national significance.

Such areas include those affecting interstate commerce, movement of goods and provision of services, and safety reviews for sealed source devices sold natioawide. Also necessary is the ability to communicate using a nationally accepted set of terms with common understanding, the ability to ensure en adequate level of protection of public health and safety that is consistent and stable across the nation, and the ability of NRC l 13 i-p

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

. t f

and each Agreement State to evaluate the effectiveness of the NRC and Agreement State .,

programs for the regulation of agreement material with respect to protection of pubtle 4 health and safety.

5. Flexibility.

With the exception of those compatibility areas where all programs should be essentially identical, to the extent possible, Agreement State radiation control programs for AEA materials should be provided with flexibility in program implementation to accommodate individual State preferences, State legislative direction, and local needs and conditions. However, the exercise of such flexibility should not preclude, or effectivt:y preclude, a practice authorized by the Atomic Energy Act, and in the national interest.

That is, a State would have the flexibility to design its own program, including incorporating more stringent, or similar, requirements provided that the requirements for adequacy are still met and compatibility is maintained, and the more stringent requirements do not preclude or effectively preclude a practice in the national interest without an adequate public health and safety or erwironmental basis related to radiation protection.

D. NEW AGREEMENTS.

Section 274 of the Atomic Energy Act requires that once a decision to seek ,

Agreement State status is made by the State, the Governor of that State must certify to the NRC that the State desires to assume regulatory responcibility and has a program for the control of radiation hazards adequate to protect public health and safety with respect 14

l f

to the materials within the State covered by the proposed agreement. This certification  !

will be provided in a letter to the NRC that includes a number of documents in support of the certification. These documents include the State's enabling legislation, the radiation control regulations, a narrative description of the State program's policies, practices and procedures, and a proposed agreement.

f The NRC has published criteria describing the necessary content these documents are required to cover. The NRC reviews the request and publishes notice of the proposed agreement in the Federal Register to provide an opportunity for public comment. After consideration of public comments, if the Commission determines that the State program is adequate and compatible, and approves the agreement, a formal agreement document is signed by the Governor and the Chairman of the NRC.

E. PROGRAM ASSISTANCE.

NRC will offer training and other assistance to States, such as assistance in developing regulations and program descriptions to help individual States prepare for entrance into agreements and to help them prior to the assumption of regulatory authority.

Following assumption of regulatory authority by a new Agreement State, to the extent permitted by resources, NRC can provide training and other assistance such as review of proposed regulatory changes to help States administer their regulatory responsibilities.

NRC would also use its best efforts to provide specialized technical assistance to Agreement States to address unique or complex licensing, inspection, and enforcement

~ issues. In areas where Agreement $4tes have particular expertise or are it; tN best 15 j l

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i position to provide immediate assistance to the NRC, the Agreement States are encouraged ..

to do so. In addition, NRC and Agreement States will keep each other informed about - l

, ' relevant aspects of their programs. NRC will provide an opportunity for Agreement States to have early and substantive involvement in rulemaking, policy, and guidance development activities. Agreement States should provide a similar opportunity to the NRC to make it aware of, and to provide the opportunity to review and comment on, proposed changes in regulations and significant changes to Agreement State programs, policies, and regulatory ,.

guidance, if an Agreement State experiences difficulty l'n program administration, the Commission would use its best efforts to assist the State in maintaining the effectiveness of its radiation contrcl program. Such assistance could address an immediate difficulty or 1 a chronic difficulty affecting the State's ability to discharge its responsibility to continue to ensure adequate protection of public health and safety.

F. PERFORMANCE EVALUATION. ,

Under Section 274 of the Atomic Energy Act of 1954, as amended, the Commission retains authority for ensuring that Agreement State programs continue to provide adequate protection of public health and safety, in fulfilling this statutory -

responsibility, NRC will provide oversight of Agreement State radiation control programs to ensure that they are adequate and compatible prior to entrance into a Section 274(b) agreement and that they continue to be adequate and compatible after an agreement is effective. The Comt.'ission, in cooperation with the Agreement States, will establish and l 16 l

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l'* irnplement a performance evaluation program to provide NRC and Agreement State management with systematic, integrated, and reliable evaluations of the strengths and weaknesses of their respective radiation control programs and .Ldentification of areas needing improvement.

As a part of this performanue evaluation process, the Commission will take any necessary actions to help ensure that Agreement State radiation control programs remain adequate and compatible. These actions include: (1) periodic assessments of Agreement State radiation control programs against established review criteria; (2) provision of assistance to help address weaknesses or areas within an Agreement State radiation control program requiring improvement, to the extent permitted by NRC resources; (3) placing a State on a probationary status for serious program deficiencies that require heightened oversight; (4) temporary suspension of an agreement and reassertion of NRC regulatory authority in an emergency if an Agreement State program experiences any imme1iate program difficulties preventing the State from continuing to ensure adequate protection of public health and safety; and (5) suspension or termination of an agreement and reassertion of NRC regulatory authority if the Agreement State program experiences difficulties that jeopardize the State's ability to continue to ensure adequate protection of public health and safety or to continue to maintain a compatible program. The basis for NRC's actions will be based on a well defined and predictable process and a performance evaluation program that will be consistently and fairly applied.

17

G. LEVELS OF AGREEMENT STATE PROGRAM REVIEW FINDINGS. . ,

The following discussion outlines the nature of NRC findings regarding the NRC's Agreement State review process.

FINDING 1 - ADEQUATE TO PROTECT PUBLIC HEALTH AND SAFETY AND (OR NOT)

COMPATlBLE If the NRC finds that a State program has met all of the Agreement State program review criteria or that only minor deficiencies exist, the Commission would find that the State's program is adequate to protect public health and safety. If the NRC determines that a State program contains all required NRC program eternents for compatibility, or only minor discrepancies exist, the program would be found compatible, if the NRC determines that a State has a program that disrupts the orderly pattern of regulation among the collective regulatory efforts of the NRC and other Agreement States, i.e., creates conflicts, gaps, or duplication in regulation, the program would be found not compatible.

FINDING 2 ADEQUATE, BUT NEEDS IMPROVEMENT AND (OR NOT) COMPATIBLE If the NRC finds that a State program protects public health and safety, but is deficient in meeting some of the review criteria, the NRC may find that the State's program is adequate, but needs improvement. The NRC would consider in its determination plans that the State has to address any of the deficiencies noted during the review, in cases where less significant Apteement State deficiencies previously identified have been 18

. - - - - -= +-

m3 _ . - irmp_-

o. .

• uncorrected for a significant period of time, NRC may also find that the program is  !

- adequate but in need of improvement, if the NR'C determines that a State program contains all required NRC program elements for compatibility, or only minor discrepancies -

exist, the program would be found compatible. If the NRC determines that a State has a 1

program that disrupts the orderly pattern of regulation among the collective regulatory-l efforts of the NRC and other Agreement States, i.e., creates conflicts, gaps, or duplication in regulation, the program would be found not compatible.

4 f

FINDING 3 INADEQUATE TO PROTECT PUBLIC HEALTH AND SAFETY AND (OR NOT) .

COMPATIBLE If the NRC fads that a State program is significantly deficient in some or all of the review criteria, the NRC would find that the State's program is not adequate to protect

. public health and safety, if the NRC determines that a State program contains all required NRC program elements for compatibility, or only minor discrepancies exist, the program

' would be found compatible. .lf the NnC determines that a State has a program that disrupts the orderly pattern of regulation among the collective regulatory efforts of the NRC and other Agreement States, i.e., creates conflicts, gaps, or duplication in regulation, the program would be found not compatible.

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r H. NRC ACTIONS AS A RESULT OF THESE FINDINGS. ,

i The following discussion outlines the options available to the NRC as a result of l making any of the above findings. The appropriate action will be determined on a case by-case basis by NRC management, j LETTERS In all cases, subsequent to an Agreement State program review, the findings would be recounted in a letter to senior level State management. In the event that the NRC finds that a State program is adequate and compatible, no further action would be required, except a response by the State to any suggestions or recommendations. In the case where minor deficiencies are noted or areas for improvement are identified, the State would be requested to describe their proposed corrective action. If the corrective action appears appropriate, no further NRC action is required if additional clarification of the corrective actions is needed, additional correspondence may be necessary.

i FOLLOW.UP REVIEWS in the event that deficiencies are noted during the program review, NRC may ,

increase the frequency of contacts with the State to keep abreast of developments and conduct onsite follow up reviews to assure that progress is being made on correcting E program deficiencies. If, during follow up reviews, it is shown that the State has taken corrective actions, a letter finding the State adsquete and compatible would be provided.'

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' ** PROBATIONARY STATUS i

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There are three circumstances that can lead to en adequate but needs improvement or incompatible State program being placed in a probationary status: (1) there are cases in which program deficiencies may be serious enough to require immediate heightened oversight; (2) in other cases, Agreement State program deficiencies previously identified  ;

may have been uncorrected for a significant period of time; and (3)if the NRC determines

- that a State program has been late in adopting required compatibility program elements and significant disruption in the collective nationwide efforts to regulate nEA materials has occurred. if the NRC was not confident that the State would address the program deficiencies in an expeditious and effective manner, the Commission would place the State program on probation.

As a result of placing a State program on probation, the NRC would communicate its findings to a higher level of State management. Notice of such probationary status ,

would normally be addressed to the Governor of the State. Notice would also be published in the Federal Register. A copy of the letter to the Governor would be placed in the Public Document Room and a press release would be issued.

Once a State program is placed on probation, the NRC would heighten its oversight of the program, This would include obtaining commitments from the State in the form of a management plan to describe actions to be taken by the State to address the program deficiencies, including specific goals and milestones. The NRC would increase observation of State program activities under the agreement to assure adequate protection of public 21

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_ , . _ _ _ _ _ _ _ _ _._ _ ___.._______ _ _j

s.

health and safety. If requested and in accordance with terms agreed to by the parties, the NRC would consider providing technical support for the maintenance of the regulatory program. The probationary period would last for a specified period of time. This period would not normally be more than one year, but could be extended based on extenuating circumstances. At the end of that time,if the State has not addressed the deficiencies, the NRC would institute suspension or termination proceedings.

SUSPENSION Section 274J of the Atomic Energy Act gives the Commission authority to suspend all or part of its agreement with a State if the suspension is required to protect public health and safety, or if the State has not complied with one or more of the requirements of Section 274 of the Act. In cases where the Commission finds that program deficiencies related to either adequacy or compatibility are such that the Commission must take action to protect public health and safety, or if the program has not ocmplied with one or more of the requirements of Section 274 of the Act, the Commission would suspend all or part of its agreement with the State, in cases where a State has failed to respond in an acceptable manner during the probationary period, suspension would be considered. If the situation is not resolved, termination will be considered.

Before reaching a final decision on suspension, the Commission will notify the State and provide the State an opportw ty for a hearing on the proposed suspension. Notice of the proposed suspension will also be published in the Federal Register. Suspension, rather l

l l

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• than termination, would be the preferred option in those cases where the State provides i

evidence that the program deficiencies are temporary and that the State is committed to 1

- correcting the deficiencies that led to the suspension. l 1

in addition to the normal suspension authority, Section 274j.(2) of the Act also addres:as emergency situations and gives the Commissior. authority to temporariiy suspend all or part of its agreement with a State without notice or hearir: rf a emergency situation exists requiring immediate action to protect public health and saMy, and the State has failed to take necessary action within a reasonable time.

TERMINATION l

Section 274J of the Atomic Energy Act gives the Commission authority to terminate its agreement with a State if such termination is required to protect public health and safety, or if the State program has not complied with one or more of the requirements of Section 274 of the Act (e.g., is found to be not compatible with the Commission's program). When the Commission finds such significant program deficiencies, the i Commission would institute proceedings to terminate its agreement with the State.

In cases where a State has failed to respond in an acceptable manner during the probationary period and there is no prospect for improvement, termination will be

! considered. Before reaching a final decision on termination, the Commission will notify the l

. Stat:. and provide the State en opportunity for a hearing on the proposed termination.

i 23 t

Also, notice of the proposed termination will be published in the Federal Register. There ,

may be cases where termination will be considered even though the State program has not been placed on probation.

1. PROGRAM FUNDING.

Currently, Section 274 does not allow federal funding for the administration of -

Agreement State radiation control prograrss. Section 274 permits the NRC to offer training and other assistance to a State in anticipation of entering into an Agreement with NRC, however, it is NRC policy not to fund the establishment of new Agreement State programs.

Regarding training, given the importance in terms of public health and safety of having well trained radiation control program personnel, the NRC offers certain relevant training courses and no'ifies Agreement State personnel of their availability.

! , J. REGULATORY DEVELOPMENT.

L NRC and Agreement States will cooperate in the development of new regulations and policy. Agreement States will have early and substantive involvement in the j

development of new regulations affecting protection of public health and safety and of new policy affecting administration of the Agreement State program. Likewise, the NRC expects to have the States provide it with early and substantive involvement in the development of new Suggested State Regulations. NRC and Agreement States will keep each other informed about their individual regulatory requirements (e.g., regulations or i

24

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license conditions) and the effectiveness of those regulatory requirements so that each has the opportunity to make use of proven regulatory approaches to further the effective and efficient use of resources.

K. PROGRAM EVOLUTION.

The NRC Agreement State program is dynamic and the NRC and Agreement States will continue to jointly assess the NRC and Agreement State programs for the regulation of AEA materials to identify specific changes that should be considered based on experience or to further improve overall performance and effectiveness. The changos considered may include possible legislative changes. The program should also include the formal sharing of information and views such as briefings of the Commission by the Agreement States.

111. POLICY STATEMENT ON ADEQUACY AND COMPATIBILITY OF AGREEMENT STATE PROGRAMS A. Comment Summary l

l Ten comment letters were received, one from the Organization of Agreement States,  ;

six Agreement State program directors, twoindustry organizations and one environmental group. The Joint NRC-Agreement State Working Group for Development of implementing Procedures for the Final Policy Statement on Adequacy and Compatibility of Agreement State L Programs analyzed the comments and changes were made to the Policy Statement (1) to I

add additional clarifying language for the terms " adequacy" and " compatibility" and the l i f

25 I

1

cooperative nature of the NRC - Agreement State relationship; (2) to conform it to the position that Agreement States have flexibility with respect to the legally binding mechanism .

by which regulatory requirements needed for adequacy or compatibility are adopted; and (3) l to simplify the language describing compatibil.4y categories. Changes also were made in response to the June 30,1997 Staff Requirements Memorandum. These changes (1) reflect that program elements for compatibility also impact public health and safety and may also be considered program elements for adequacy; (2) clarify the definition of basic radiation protection standard; and (3) clarify that States may not adopt program elements reserved exclusively to NRC. The implementing procedures were changed to reflect the final Policy Statement.

One Agreement State specifically commented that it did not believe that Section 274 of the AEA required compatibility of programs or program elements after an agraement is effective except for requirements pertaining to the Uranium Mill Tallings Radiation Control Act I

in section 274(o). This position also was reflected in the recommended changes to the Policy Statement submitted by the Organization of Agreement States.

The Commission does not agree with this interpretation of the AEA. Both Sections

. 274d.(2) and 274g. Indicate that the Commission must find a State program to be cornpatible with that of NRC in order to enter into a Section 274b. agreement with the State. It is the Commission's view that, pursuant to Section 274, an Agreement State's program should be compatible with NRC's program for the duration of the Agreement for the following reasons:

Subsection 274g. authorizes and directs the Commission to cooperate with the 26

• States in the formulation of radiation protection standards "to assure that the State and Commission programs for the protection against hazards of radiation will be coordinated and compatible." This provision demonstrates Congress' intention that the compatibility between the NRC and Agreement State programs should be maintained on a continuing basis.

Section 274j.(1) calls on the Commission to suspend or terminate an Agreement State's program if "the State has not complied with one or more of the requirements" of the Section 274. The Commission believes that this phrase "one or more of the requirements," encompasses all requirements of Section 274, including the requirement for compatibility.

Under subsection 274d.(2), the Commission is authorized to enter into an agreement with a State if the Commission makes both requisite findings that I

the State program is compatible with the NRC's program and adequate to protect public health and safety. Absent a continuing compatibility requirement, an Agreement State could divert from having a compatible program the day after any agreement is signed with NRC. This would render the Commission's initial compatibility finding required by Section 274d.(2) meaningless.

Therefore, the Commission does not believe that Congress intended such meaning for the compatibility requirement and no changes were made to the Policy Statement in response to this comment.

1 27 l

The text of the final policy statement follows. .-

5. The Commission Policy POLICY STATEMENT ON ADEQUACY AND COMPATIBILITY OF AGREEMENT STATE PROGRAMS PURPOSE Section 274 of the Atomic Energy Act (AEA) of 1954, as amended, provides for a special Federal-State regulatory framework for the control of radioactive materials under which the NRC, by agreement with a State, relinquishes its authority in certain areas to the State govemment as long as the State program is adequate to protect public health and safety and compatible with the Commission's program. Section 274 further directs the Commission to penwically review State programs to ensure compliance with provisions of Section 274. This Policy Statement presents the Nuclear Regulatory Commission's policy for determining the adequacy and compatibility of Agreement State programs established

! pursuant to Section 274. This Policy Statement clarifies the meaning and use of the terms i

" adequate to protect public health and safety" and " compatible with the Commission's regulatory program" as applied to the Agreement State program. The Policy Statement also describes the general framework that will be used to identify those program elements' that  !

'For the purposes of this Policy Statement " program element" means any component or function of a radiation control regulatory program, including regulations and/or other legally binding requirements imposed on regulated persons, that contributes to 28 6

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

• • Agreement State programs should implement to be adequate to protect public health and safety and to be compatible with the Commission's regulatory program. Finally, the Policy Statement reflects principles discussed in the Commission's Statement of Principles and Policy for the Agreement State Program which should be considered in conjunction with this Policy Statement. l l

l This Policy Statement is solely guidance for the Commission and the Agreement

- States in the implementation of the Agreement State program. This Policy Statement does not itself impose legally binding requirements on the Agreement States. In addition, nothing in this Policy Statement expands the legal authority of Agreement States beyond that already i granted to them by Sa>; don 274 of the Atomic Energy Act and other relevant legal authority.

Implementation procedures adopted pursuant to this Policy Statement shall be consistent with the legal authorities of the Commission and the Agreement States.

1 BACKGROUND The terms " adequate" and " compatible" represent fundamental concepti in the Agreement State program authorized in 1959 by Section 274 of the Atomic Energy Act of 1954, as amended (AEA). Subsection 274d, states that the Commission shall enter into an Agreement under subsection b., discontinuing NRC's regulatory authority over certain materials in a State, provided that the State's program is adequate to protect public health and safety and compatible, in all other respects, with the Commission's regulatory program.

Subsection 274g. authorizes and directs the Commission to cooperate with States in the implemcoterion of that program. __

29 l

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formulation of standards to assure that State and Commission standards will be coordinated j, and compatible. Subsection 274j.(1) requires the Commission to review periodically the Agreements and actions taken by States under the Agreements to ensure compliance with i

provisions of Section 274. In other words, the Commission must review the actions taken by States under the Agreements to ensure that the programs continue to be adequate to protect

- public health and safety and compatible .ith the Commission's program.

Section 274 of the AEA requires that Agreement State programs be both " adequate to protect tt i public health and safety" and " compatible with the Commission's program."

These separate findings are based on consideration of two different objectives. First, an Agreement State program should provide for an acceptable level of protection of public health and safety in an Agreement State (the " adequacy" component). Second, the Agreement i State should ensure that its program serves an overall nationwide interest in radiation protection (the " compatibility" component). As discussed in more detail below, an " adequate"

- program should consist of those program elements necessary to maintain an acceptable level l

! of protection of public health and safety within an Agreement State. A " compatible" program should consist of those program elements necessary to meet a larger nationwide interest in radiation protection generally limited to areas of regulation involving radiation protection standards and activities with significant transboundary implications. Program elements for adequacy focus on the protection of public health and safety within a particular State, whereas program elements for compatibility focus on the impacts of an Agreement State's l-l regulation of agreement material on a nationwide basis or its potential effects on other junsdictions. Many program elements for compatibility also impact public health and safety; therefore, they may also be considered program elements for adequacy.

30 l

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e..- In identifying those program elements for adequate and compatible programs,, or any changes thereto, the Commission will seek the advice of the Agreement States and will consider such advice in its final decision.

ADEQUACY An Agreement State's radiation control program is adequate to protect public health and safety if administration of the program provides reasonable assurance of protection of public health and safety in regulating the use of source, byproduct, and small quantities of special nuclear material (hereinafter termed "agre3 ment material") as identifed by Section 4

274b. of the AEA. The level of protection afforded by the program elements of NRC's materials regulatory program is presumed to be that which is adequate to provide a reasonable assurance of protection of public health and safety. The overalllevel of protection of public health and safety provided by a State program should be equivalent to, or greater than, the level provided by the NRC program. To provide reasonable assurance of protection of public health and safety, an Agreement State program should contain five essential program elements, identified below, that the Commission will use to define the scope of its review of the program. The Commission also will consider, when appropriate, other program elements of an Agreement State which appear to affect the program's ability to provide reasonable assurance of public health and safety protection. Such consideration will

- occur only if concems arise.

31 1

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1 A. , LEGISLATION AND LEGAL AUTHORITY

)

l State statutes should-l l

Authorize the State to establish a program for the regulation of agreement material and provide authority for the assumption of regulatory responsibility under an Agreement with the Commission; Authorize the State to promulgate regulatory requirements necessary to provide reasonable assurance of protection of public health and safety; Authorize the State to license, inspect, and enforce legally binding requirements such as regulations and licenses; and Be otherwise consistent with Federal statutes, as appropriate, such as Public Law 95 604, The Uranium Mill Tailings Radiation Control Act (UMTRCA).

In addition, the State should have existing legally enforceable measures such as generally applicable rules, license provisions, or other appropriate measures, necessary to allow the State to ensure adequate protection of public health and safety in the regulation of agreement material in the State Specifically, Agreement States should adopt a limited number of legally binding requirements based on 'those of NRC because of their particular health and safety significance, in adopting such requirements, Agreement States should 1

adopt the essential objectives of those of the Commission, 32 l

d --n

B. LICENSING The State should conduct appropriate evaluations of proposed uses of agreement material, before issuing a license, to assure that the proposed licensee's operations can be conducted mafely. Licenses should provide for reasonabie assurance of public health and safety protection in relation to the licensed activities.

C. INSPECTION AND ENFORCEMENT Tne State should periodically conduct inspections of licensed activities involving agreement material to provide reasonable assurance of safe licensee operations and to determine compliance with its regulatory requirements. When ' determined to be necessary by the State, the State should take timely enforcement action against licensees through legal 4

sanctions authorized by State statutes and regulations.

D. PERSONNEL The State should be staffed with a sufficient number of qualified personnel to implement its regulatory program for the control of agreement material.

E. RESPONSE TO EVENTS AND ALLEGATIONS The State should respond to and conduct timely inspections or investigations of incidents report 9J evonts and allegations involving agreement material within the State's 33 i

m l . , -

t jurisdiction to provide reasonable assurance of protiction of public health and safety. ..

COMPATIBILITY An Agreement State radiation control program is compatible with the Commission's regulatory program when its program does not create conflicts, duplications, gaps, or other conditions that would jeopardize an orderly pattem in the regulation of agreement material on a nationwide basis. For purposes of compatibility, the State should address categories A, B, and C identified below:

A. BASIC RADIATION PROTECYlON STANDARDS For purposes of this Policy Statement, this category includes " basic radiation protection standards" meaning dose limits, concentration and release limits related to

. radiation protection in 10 CFR Part 20 that are generally applicable, and the dose limits in 10 CFR 61.41'. Also included in this category re a limited number of definitions, signs, labels i- and scientific terms that are necessary for a common understanding of radiation protection principles among licensees, regulatory agencies, and members of the public. Such State standards should be essentially identical to those of the Commission, unless Federal statutes provide the State authority to adopt different standards. Basic radiation protection standards

, do not include constraints or other limits below the level associated with " adequate

• The Commesion will implement this category consstent with its earlier decision in the LLW area to allow Agreement States flexibility to establish pre <,losure operational release limit objectives, ALARA goals or design objectives at such levels as the State may deem necessary or appropriate, as long as the level of protection of public health and safety is at least equivalent to that afforded by Commission requiren,ents.

34 l

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- + . . . .

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'. protection" that take into account permissible balancing considerations such as economic cost and other factors.

B. PROGRAM ELEMENTS WITH SIGNIFICANT TRANSBOUNDARY IMPLICATIONS The Commission will limit this category to a small number of program elements (e.g.,

transportation regulations and sealed source and device registration certificates) that have significant transboundary implications. Agreement State program elements should be essentially identical to those of the Commission.

C. --OTHER COMMISSION PROGRAM ELEMENTS These are other Commission program elements (e.g., reciprocity procedures) that are important for an Agreement State to have in order to avoid conflicts, duplications, gaps, or other conditions that would jeopardize an orderly pattem in the regulation of agreement material on a nationwide basis. Such Agreement State program elements should embody the essential objective of the corresponding Commission program elements.

l D. PROGRAM ELEMENTS NOT REQUIRED FOR COMPATIBILITY I

An Agreement State has the flexibility to adopt and implement program elements based on those of the Commission (other than those identified in A, B, and C above) or other program elements within the State's judsdiction that are not addressed by NRC.

B

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All program elements of an Agreement State relating to agreement material should: ...

Be compatible with those of the Commission (i.e., should not create conflicts, duplications, gaps, or other conditions that would jeopardize an orderly pattom in the regulation of agreement macerial on a nationwide basis);

Not preclude, or effectively preclude, a practice' in the national interest without an adequate public health and safety or environmental basis related to radiation protection; or Not preclude, or effectively preclude, the ability of the Commission to evaluate the effectiveness of the NRC and Agreement State programs for agreement material with respect to protection of public health and safety.

E. AREAS OF EXCLUSIVE NRC REGULATORY AUTHORITY These are program elements that address areas of regulation that cannot be relinquished to Agreement States pursuant to the AEA or provisions of Title 10 of the Code of Federal Regulations. However, an Agreement State may inform its licensees of certain of these NRC provisions through a mechanism that is appropriate under the State's administrative procedure laws as long as the State adopts these provisions solely for the

• *Practme" means a use, procedure, or activity associated with the application, possession, use, storage, or disposal of agreement material. The term " practice" is used in a broad and encompassing manner in this Policy Statement. The term encompasses both general activities involving use of radioactive materials such as industrial and medical uses and specific activities within a practice such as industrial radiography and brachytherapy.

36 o < . _ . . _ _ _ . _ . _

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,g purposes of notification, and does not exercise any regulatory authority pursuant to them.

SUMMARY

AND CONCLUSIONS To foster and enhance a coherent and consistent nationwide program for the regulation of agreement material, the Commission encourages Agreement States to adopt and implement program elements that are pattemed after those adopted and implemented by the Commission. However, the fact that an Agreement State's program is compatible with that of the Commission does not affect that State's obligation to maintain an adequate program as described in this Policy Statement.

By adopting the criteria for adequacy and compatibility as discussed in this Policy Statement the Commission will provide Agreement States a broad tange of flexibility in the administration of individual programs, in doing so, the Commission allows Agreement States to fashion their programs so as to reflect specific State needs and preferences, recognizing the fact that Agreement States have responsibilities for radiation sources in addition to

,. agreement material.

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The Commission will minimize the number of NRC regulatory requiremerits that the Agreement States will be requested to adopt in an identical manner to maintain compatibility.

! At the same time, requirements in these compatibility categories will allow the Commission to ensure that an orderly pattem for the regulation of agreement material exists nationwide, i The Commission believes that this approach achieves a proper balance between the need for L

Agreement State flexibility and the need for coordinated and corr.patible regulation of 37

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agreement material across the country. .

PAPERWORK REDUCTION ACT STATEMENT These final policy statements do not contain new or amended information collection requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

Existing requirements were approved by the ONice of Management and Budget, approval number 3150 0183.

PUBLIC PROTECTION NOTIFICATION The NRC riay not conduct or sponsor, and a person is not required to respond to, a collection of infomistion unless it displays a currently valid OMB control number.

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i Enclosure 2 .

1 Management Directive 5,8 and Handbook 5,8 - Proposed' l 274b' Agreements with States ,

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J PROPOSED 274b AGREEMENTS WITH STATES l DIRECTIVE 5.8 )

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U.S. NUCLEAR REGULATORY COMMISSION Volume 5: Governmental Relations and Public' Affairs- OSP !

Policy. .

(5.8-01) e it is the policy of the U.S. Nuclear Regulatory Commission to implement

. procedures for establishing new agreements with individual States pursuant to Section 274 of the Atomic Energy Act of 1954, as amended.

Objectives.

(5.8-02) e- To establish a system for an orderly transition in the discontinuance of certain regulatory authority by the NRC with assumption thereof by the State through a standard agreement.

Organizational Responsibilities and Delegations of Authority (5.8-03)

The Commission (031) e Approves requests from a Governor to enter into an agreement under Section 274 of the Atomic Energy Act of 1954, as amended.

• Approves policy matters related to NRC's Agreement States program.

The Executive Director for Operations (EDO)

(032)

• Provides management direction and oversight for the activities described herein.

The Director, Office of State Programs (033)

• Coordinates the review and action on State requests for 274b agreements or amendments to agreements with cognizant regional administrator and office directors, including the planning of meetings with the State to discuss issues related to the request. (a) e- Identifies an NRC contact, prepares correspondence to the State, as appropriate, and provides a schedule for accomplishing staff work on the agreement request. (b)

• = Reviews State requests for 274b agreements or amendments to agreements to determine adequacy and compatibility of State's program. (c) 1 l

I

. ,x e Prepares a Commission Paper that includes the staff assessment of the State's request and a proposed Federal Register notice publishing this information for public comment for 4 consecutive weeks according to the A!r mic Energy Act. (d) e Prepares a Commission Paper for final approval of the State's request by the Commission that analyzes and responds to public comments in coordination with OGC and affected offices (e) e Prepares approved agreement for the signature of the Chairman and Governor. Arranges all post signing coordination for the transfer of regulatory authority under the effective agreement. (f)

Office of the General Counsel (OGC), Director, Office of Nuclear Regulatory Research (RES), and Director, Office for Analysis and Evaluation of Operational Data (AEOD) (034) e Consult with the Director, OSP, concerning the proposed agreement. (a) e Appoint principal working level contacts for review of the proposed agreement. (b) e Review, comment and concur, if appropriate, on the proposed agreement and final Commission Paper. (c)

Director, Office of Nuclear Materials Safety and Safeguards (035) e Consult with the Director, OSP, concerning the proposed agreement. (a) e Appoint principal working-level contacts for review of the proposed 4

agreement. (b) e Review, comment and concur, if appropriate, on the proposed agreement and final Commission Paper. (c) e Coordinate the transfer of license files and other appropriate material for sealed source and devices registrations and site decommissioning management plan sites when agreement is effective. (d) l Regional Administrators t (036)

I e Consult with the Director, OSP, concerning the proposed agreement. (a) l 2

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• Appoint principal working-level contacts for review of the proposed.

agreement. (b)

• Assists in the coordination of the review and action on State requests for 274b agreements or amendments to agreements, including the planning of meetings with the State to discuss issues related to the request. (c)

• Review, comment and concur, if appropriate, on the proposed agreement and final Commission Paper. (d)

• Coordinate with the State prior to the agreement on the licenses and contaminated or potentially contaminated sites and decommissioning records to be transferred when the agreement is effective. (e)

• Provide the opportunit/ for license reviewers and inspectors from the State seeking an Agreement to review Regional licensing casework in progress and observe NRC inspections at the' facilities of licensees in State. (f)

• Coordinate the transfer of licenses, license files and other appropriate material when agreement is effective, including meeting with representatives of the State seeking an agreement to describe and explain licenses and files that will be transferred to the State. (g)

• Assure, to the extent practicable, that licensing and inspection backlogs do not exist for licensees in the State seeking an agreement. (h)

Applicability.

(5.8-04)

The policy and guidance in this directive and handbook apply to all NRC employees who process a request for a 274b agreement. (a)

Handbook.

(5.8-05)

Handbook 5.8 contains an overview of the process, guidelines and a standard agreement.

References.

(5.8-06)

Atomic Energy Act of 1954, as amended (42 USC. 2011 et seq.)

Criteria for Guidance of States and NRC in Discontinuance of NRC Regulatory

- Authority 'and Assumption Thereof by States through Agreement (46 FR

- 7540, January 23,1981, as amended by policy statements published at 46 FR 36969, July 16,1981, and 48 FR 33376, July 21,-1983).

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p Status and Notice of Availability of Two Policy Statements Concerning the _

Agreement State Program (60 FR 39463, August 2,1995),

p.

Evaluation of Agreement State Radiation Control Programs (60 FR 54734, October 25,1995).

~

Management Directive 5.6, Integrated Materials Performance Evaluation .

Program, approved September 12,1995.

Management Directive 5.9, Adequacy and Compatibility of Agreement State

.. Programs, approved ,

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PROPOSED 274b AGREEMENTS WITH STATES HANDBOOK 5.8

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Overview (A)

NRC is authorized under Section 274 of the Atomic Energy Act of 1954, as amended, to enter into agreements with States -- (1)

• Upon certification by the Governor that the State has a program _for the control of radiation hazards adequate to protect public health and safety with respect to the materials within the State covered by the proposed agreement and the State desires to assume regulatory -

responsibility for such material. (a) 4

• After a finding by the Commission that the State program is in accordance with the requirements of Subsection o of Section 274 and in all other respects compatible with the Commission's program for the regulation of such materials, and is adequate to protect public health and safet) with respect to the materials covered by the proposed agreement. (b)

This management directive and handbook supplement the " Criteria for Guidance of States and NRC in Discontinuance of NRC Regulatory Authority and Assumption Thereof by States through Agreement," (46 FR 7540, January 23,1981,as amended by policy statements published at 46 FR 36969, July 16,1981, and 48 FR 33376, July 21,19835 and the Office of State ')rograms internal Procedure C.1., " Processing a New Agreement." These documents should be used in conjunction with this handbook.

Process Sequence for New Agreements (B)

The typical sequence for NRC in processing a request for an agreement is summarized below:

• Receive a letter of intent from the Governor.of the State interested in an agreement with NRC. (1) l

• Provide guidance to the State on the necessary elements of an Agreement State program including draft legislation, regulations, and program description. (2)

• Receive and review the request for an agreement from the Governor, the program description, and necessary program elements. (3)

• Transmit and resolve any outstanding items with the State regarding the proposed agreement request. (4)

• Prenare Commission Paper on the proposed agreement request, including

-stan assessment and Federal Register Notice with the proposed agreement for public comment. (5) 1

. _-. - ~ _ . -

_e. -

e - Publish Federal Register Notice with the proposed agreement for public comment for 4 consecutive weeks according to the Atomic Energy Act. (6)

-e Prepare Commission Paper that analyzes and responds to public comments and provides staff recommendations on the agreement for final approval by the Commission ' (7)

o Prepare approved agreement for the signature of the Chairman and Governor upon Commission approval and arrange signing ceremony. (8)

-e Arrange all post signing coordination for the orderly transfer of regulatory authority under the effective agreement. (9)

Standard Agreement (C)

The standard agreement describes the categories of materials to be regulated by the

. State and the effective ~date of the. agreement. -(1) 4 9

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Exhibit II s AN AGREEMENT BETWEEN LTHE UNITED STATES NUCLEAR REGULATORY COMMISSION AND THE STATE / COMMONWEALTH OF [ insert name of State]

FOR THE DISCONTINUANCE OF CERTAIN COMMISSION REGULATORY AUTHORITY AND RESPONSIBILITY WITHIN THE STATE / COMMONWEALTH PURSUANT TO SECTION 274 OF THE ATOMIC ENERGY ACT OF 1954, AS AMENDED WHEREAS, The United States Nuclear Regulatory Commission (hereinafter referred to as the Commission) is authorized under Section 274 of the Atomic Energy Act of 1954, as amended (hereinafter referred to as the Act), to enter into agreements with the Governor of any State / Commonwealth providing for discontinuance of the regulatory authority of the Commission within the State / Commonwealth under Chapters 6,7, and 8, and Section 161 of the Act with respect to byproduct materials as defined in Sections 11e.(1) and (2) of the Act, source materials, and special nuclear materials in quantities not sufficient to form a critical mass; and, WHEREAS, The Governor of the State / Commonwealth of [ insert namelis authorized under

[cito enabling statutel to enter into this Agreement with the Commission; and, WHEREAS, The Governor of the State / Commonwealth of [ insert name) certified on [datel, that the State / Commonwealth of [ insert name] (hereinafter referred to as the State / Commonwealth) has a program for the control of radiation hazards adequate to protect public health and safety with respect to the materials within the State / Commonwealth covered by this Agreement, and that the State / Commonwealth desires to assume regulatory responsibility for such materials; and, WHEREAS, The Commission found on [date) that the program of the State / Commonwealth

- for the regulation of the materials covered by this Agreement is compatible with the Commission's program for the regulation of such materials and is adequate to protect

_ public health and safety; and,_

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WHEREAS, The State / Commonwealth and the Commission recognize the desirability and importance of cooperation between the Commission and the State / Commonwealth in the fo:mulation of standards for protection against hazards of radiation and in assuring that State / Commonwealth and Commission programs for protection against hazards of radiation will be coordinated and compatible; and, ,

WHEREAS, lho Commission and the State / Commonwealth recognize the des.rability of the reciprocal racognition of licenses, and of the granting of limited exemptions from licensing of those materials subject to this Agreement; and, I WHEREAS, This Agreem6nt is entered into pursuant to the provisions of the Atomic Energy Act oi 1954, as amended; NOW, THEREFORE, it is hereby agreed between the Commission and the Governor of the State / Commonwealth acting in behalf of the State / Commonwealth as follows:

ARTICLE l' Subject to the exceptions provided in Articles 11, IV, and V, the Commission shall discontinue, a* of the effective date of this Agreement, the regulatory authority of the Commission in the State / Commonwealth under Chapters 6,7, and 8, and Section 161 of the Act with respect to the following materials:

A. Byproduct materials as defined in Section 110.(1) of the Act:

B. Byproduct materials as defined in Section 11e.(2) of the Act; C. Source materials:

D. Special nuclear materials in quantities not sufficient to form a critical mass.

E. The rec-dation of the land disoosal of byproduct, source, or special nuclea waste rnater 'eceived from other persons; F. The ev. stion of radiation safety information on sealed sources or devices containing byproduct, source, or special nuclear materials and the registration of the sealed sources or devices for distribution, as provided for in regulations or orders of the Commission.

ARTICLE ll A. This Agreement does not provide for discontinuance of any authority and the Coinmission shall retain authority and responsibility with respect to:

If the State / Commonwealth chooses not to regulate all categories of material listed in Article 1 those categories where NRC will retain authority should be listed in Article II. A.

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1. The regulation of the construction anc' operation of any production or '

utilization facility or any uranium enrichment facility

2. The regulation of the export from or import into the United States of byproduct, source, or special nuclear material, or of any production or

< utilization f acility; j i

3. The regulation of the disposalinto tht ocean or sea of byproduct, aource. or special nuclear materials waste as defined in the regulations or orders of the  !

i Commission *

, i' L4 The regulation of the disposal of such other byproduct, source, or special nuclear material as the Commission from time to time determines by regulation or order should, because of the haza::Is or potential hazards l thereof, not be so disposed without a license from the Commission:

5. The evaluation of radiation safety information on sealed sources or devices [

containing byproduct, source, or special nuclear materials and the registration of the sealed sources or devices for distribu'in, as provided for  ;

in regulations or orders of the Commission.8 ,

B.* Notwithstanding this Agreement, the Commission retains th.. 'ollowing authorities l pertaining to byproduct material as defined in Section 11e 82) of the Atomic Energy .

, Act:

1. Prior to the termination of a State / Commonwealth license for such byproduct material, or for any activity that results in the production cf such material, the Commission shall have made a determination that all applicable standards .

and requirements pertaining to such material have been met.  !

2. The Commission reserves the authority to establish minimum standards governing reclantation, long term surveillance or maintenance, and ownership  :

of such byproduct material and of land ured as a disposal site for such material. Such reserved authority includes:

a. The authority to establish terms and conditions as the Commission determines necessary to assure that, prior to termination of any

• license for such byproduct material, or for any activity that results in .

the production of such material, the licensee shall comply with  !

decontamination, decommissioning, and reclamation standards  !

prescribed by the Commission; and with ownership requirements for j such materlats and its disposal site;

1. i nclude only if the State is not authorized to conduct sealed source and device reviews for purposes of registration for distribution,  ;

8 Article II.B. is included in the agreement only if the State is

-authorized to regulate 11e.(2) byproduct material. <

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b, The authority to require that prior to termination of any license for such byproduct material or for any activity that results in the production of such material, title to such byproduct material and its .

disposal site be transferred to the United States or the State / Commonwealth at the option of the State / Commonwealth  !

(provided such option is exercised prior to termination of the license);

c. The authority to permit use of the surface or subsurface estates, or I both, of the land transferred to the United States or a State / Commonwealth pursuant to paragraph 2.b. In this section in a manner consistent with the provisions of the Uranium Mill Tailings Radiation Control Act of 1978, provided that the Commission determines that such use would not endanger public health, safety, welf are, or the environment;

d. The authority to require, in the case of a license for any activity that produces such byproduct material (which license was in effect on November 8,1981), transfer of land and material pursuant to paragraph 2.b. In this section taking into consideration the status of such material and land and interests therein, and the ability of the licensee to transfer title and custody thereof to the United States or a State / Commonwealth;

e. The authority to require the Secretary of the Department of Energy, other Federal agency, or State / Commonwealth, whichever has custody of such byproduct material and its disposal site, to undertah, such monitoring, maintenance, and err,ergency measures as are necessary to protect public health ar'd safety, and other actions at the Commission deems necessary; and

f. The authority to enter into arrangements as may be cppropriate to assure Federal long term surveillance or maintc,iance of such byproduct material and its disposal site on land held in trust by the >

United States for any indian Tribe or land owned by an Indian Tribe and subject to a restriction against alienation imposed by the United States.

ARTICLE lil' With the exception of those activities identified in Article ll.A.1 through 4, inis Agreement may be amended, upon application by the State / Commonwealth and approval by the Commission, to include one or more of the additional activities specified in Article ll, paragraphs [those activities not included in the agreement), whereby the State / Commonwealth may then exert regulatory authority and responsibility with respect to those activities.

' Delete this Article and renumber the remaining articles if the State / Commonwealth assumes authority over all categories of materials in Article II, 4

ARTICLE.N Notwithstanding this Agreement, the Commission may from time to time by rule, regulation, or order, require that the manufacturer, processor, or producer of any equipment, device, commodity, or other product containing source, byproduct, or special nuclear material shall not transfer possession or control of such product except pursuant to a license or an exemption from licensing issued by the Commission.

ARTICLE V This Agreement shall n01 aticci the authority of the Commission under Subsection 161b or 101i of the Act to isst e ruler, regulations, or orders to protect the common defensa and security, to protect rebeted data, or to guard against the loss or diversion of special nuclear material.

ARTICLE VI The Commission will cooperate with the State / Commonwealth and other Agreement States in the formulation of standards ano regulatory programs of the State and the Commission for protection against hazards of radiation and to assure that Commission and State / Commonwealth programs for protection against hazards of radiation will be coordinated and compatNo. The State / Commonwealth agrees to cooperate with the Commission and other Agreement States in the formulation of standards and regulatory programs of the State / Commonwealth and the Commission for protection against hazards of radiation and to assure that the State / Commonwealth's program will continue to be compatible with the program of the Commission for the regulation of materials covered by this Agreement.

The State / Commonwealth and the Commission agree to keep each other informed of proposed changes in their respective rules and regulations, and to provide each other the opportunity for early and substantive contribution to the proposed changes.

The State / Commonwealth and the Commission agree to keep each other informed of events, accidents, and licensee performance that may have generic implication or otherwise be of regulatory interest.

ARTICLE Vil The Commission and the State / Commonwealth agree that it is desirable to provide reciprocal recognition of licenses for the materials listed in Article I licensed by the other party or by any other Agreement State. Accordingly, the Commission and the State / Commonwealth agree to develop appropriate rubs, regulations, and procedures by which such reciprocity will be accorded.

ARTICLE Vill The Commission, upon its own initiative after reasonable notice and opportunity for hearing to the State / Commonwealth, or upon request of the Governor of the State / Commonwealth, may terminate or suspend all or part of this agreement and reassert the licensing and regulatory authority vested in it under the Act if the Commission finds that (1) such termination or suspension is required to protect public health and safety, or (2) the 5

State / Commonwealth has not complied with one or more of the requirements of Section 274 of the Act. The Commission may also, pursuant to Section 274) of the Act, temporarily suspend all or part of this agreement if,in the judgment of the Commission, an emergency situation exists requiring immediate action to protect public health and safety and the State / Commonwealth has failed to take necessary steps. The Commission shall periodically review actions taken by the State / Commonwealth under this Agreement to ensure compliance with Section 274 of the Act which requires a State / Commonwealth program to be adequate to protect public health and safety with recpect to the materials covered by this Agreement and to be compatible with the Commission's program.

ARTICLE IX' in the licensing and regulation of byproduct material as defined in Section 11e.(2) of the Act, or of any activity which results in production of such material, the State / Commonwealth shall comply with the provisions of Section 274o of the Act. If in such licensing and regulation, the State / Commonwealth requires financial surety arrangements for reclamation or long term surveillance and maintenance of such material, A. The total amount of funds the State / Commonwealth collects for such purposes shall be transferred to the United States if custody of such material and its disposal site is transferred to the United States upon termination of the State / Commonwealth license for such material or any activity which results in the production of such material. Such funds include, but are not limited to, sums collected for long term surveillance or maintenance. Such funds do not, however, include monies held as surety where no default has occurred and the reclamation or other bonded activity has been performed; and B. Such surety or other financial requirements must be sufficient to ensure compliance with those standards established by the Commission pertaining to bonds, sureties, and financial arrangements to ensure adequate reclamation and long term management of such byproduct material and its disposal site.

ARTIQLELX This Agreement shall become effective on (datel, and shall remain in effect unless and until such time as it is terminated pursuant to Article Vllt.

Done at (City, State) this (datel day of (month), lyearl.

FOR THE UNITED STATES NUCLEAR REGULATORY COMMISSION

, Chairman FOR THE STATE / COMMONWEALTH OF _

, Governor Suse Article IX only if the State is authorized to regulate lle.(2) byproduct material 6

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Enclosure 3 Management Directive 5.9 and Handbook 5.9 - Adequacy and  ;

Compatibility of Agreement State Programs i; 1

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