ML20211K011
| ML20211K011 | |
| Person / Time | |
|---|---|
| Issue date: | 07/19/1996 |
| From: | Morrison D NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| To: | Lieberman J, Paperiello C, Treby S NRC OFFICE OF ENFORCEMENT (OE), NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS), NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| Shared Package | |
| ML20008B475 | List:
|
| References | |
| FRN-62FR6664, RULE-PR-2, RULE-PR-40, RULE-PR-70, RULE-PR-76 AF56-2-004, AF56-2-4, NUDOCS 9710090093 | |
| Download: ML20211K011 (7) | |
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UNITED STATES
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NUCLEAR REGULATORY COMMISSION t
wASHINoToN o.C. 20555 4001
't,.....,e July 19, 1996 MEMORANDUM T0:
Carl J. Paperiello, Director Office of Nuclear Material Safety and Safeguards James Lieberman, Director Office of Enforcement Stuart A. Treby, Assistant General Counsel for Rulemaking and Fuel Cycle Office of the General Counsel FROM:
David L. Morrison, Director Office of Nuclear Regulatory Research /.
SUBJECT:
RULEMAKING PLAN - USEC PRIVATIZATION ACT (PUBLIC LxW 104-134)
Your-concurrence is requested on the attached rulemaking plan which has been developed in collaboration with your staff.
On April 26, 1996, President Clinton signed into law H.R. 3019 (Public Law No. 104-134), legislation which provides FY 1996 appropriations to a number of Federal agencies.
Included within this legislation is a subchapter ~ entitled, the "USEC Privatization Act," which a'nong other things, directs the Board of Directors of the United States Enrichment Corporation (USEC) to sell the assets of the USEC to a private sector entity.
The private sector corporation that purchases the assets of the Corporation will be responsible for the operation of the.two gaseous diffusion facilities and the development of the atomic vapor laser isotope separation technology (AVLIS).
In addition, this legislation amended the Atomic Energy Act of 1954, as amended (the Act) with respect to the ligensing of AVLIS and certification of 10 CFR Part 75 uranium enrichment facilities.
To implement these amendments to the Act, several conforming changes to 10 CFR Parts 40, 70 and 76 are needed.
The following is a summary of this request:
1.
Title:
Rulemaking Plan, "USEC Privatization Act" 2.
Task leader:
C. W. Nilsen, RES - 415-6209 3.
Working Group Members:
J. W. Hickey, NMSS N. L. Hamish, OE K. L. Winsberg, OGC 4.
Steerino Group Members:
None 9710090093 971003 i
PDR PR
. 2,6,2FR6664 PDR
o C. J. Paperiello et at.
2
- 5.-
Enhanced Public Participation: No 6.
Compatibility for Aareer.ent States:
No 7.
Reauested Action: Office Concurrence 8.
Reauested Completion Date:- Two weeks from the date of this memorandum 9.
Resources and Coordination: The rulemaking is estimated to take NRC 0.4 FTE. There will be no contractor support needed. A copy of this concurrence package has been forwarded to the Office of the Controller for coordination of resource issues and to the 0!G for information.
Attachment:
Rulemaking P1an l
cc:-
R. Scroggins, OC, w/att.
H. T. Bell, OIG, 'w/att.
W. Olmstead, 0GC, w/att.
J. W. Hickey, HMSS, w/att, t
.N. L. Hamish, OE, w/att.
K.-l. Winsberg, OGC, w/att.
~DISTRIBlI(ION:
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4 RULEMAKING PLAN FOR URANIUM ENRICNMENT REGULATION:
CONCORMING.10 CFR PARTS 40, 70, AND 76 2
104 134' T0 THE REQUIREMENTS OF PUBLIC LAW Lead Office:-
Office of Nuclear Regulatory Research Staff
Contact:
Chuck Nilsen, RDB/ ORA d
fff[f4 Concurrences:
fy Di Mirrison~,'RE5 Date C. Paperiello, NMSS Date J. Lieberman, OE-Date c
S. Treby, UGC Date Approval:
J. Taylor Date
RULEMAKING' PLAN - USEC PRIVATIZATION ACT Uranium Enrichment Regulation; Proposed Rulemaking-Conforming 10 CFR Parts 40, 70 and 76 to the Requirements of Public Law 104-134 Reaulatory issue (Codify Leaislation)
On April 26, 1996, President Clinton signed into law H.R. 3019 (Public Law No. 104-134), legislation which provides FY 1996 appropriations-to a number of Federal agencies.
Included within this legislation-is a subchapter entitled l
the "USEC Privatization Act," which among other things, directs the Board of l
Directors of the Linited States Enrichment Corporation (USEC) to sell the assets of the USEC to a private sector entity.
The private sector cor) oration that purchases the assets of the Corporation will be responsible for t1e operation of the two gaseous diffusion facilities and the development of the atomic vapor laser isotope separation technology (AVLIS).
In addition, this legislation amended the Atomic Energy Act of 1954, as amended (the Act) with respect to the licensing of AVLIS and certification of 10 CfR Part 76 uraniem enrichment facilities.
To implement these amendments.to the Act, reveral l
conforming changes to 10 CFR Parts 40, 70 and 76 are needed.
Current Rule Reauirements The NRC certification of the two USEC gaseous diffusion plants is regulated under 10 CFR Part 76 " Certification of Gaseous Diffusion Plants, Before Public Law 104-134, the NRC licensing of an AVLIS facility would have followed the two step process of 10 CFR Part 50.
As a result of this new
. legislation, the licensing of uranium enrichment facilities using AVLIS technology will now be licensed under 10 CFR Part 70, " Domestic Licensing of Special Nuclear Material.
NRC regulated uranium enrichment facilities are also required to have a license under 10 CFR Part 40 " Domestic Licensing of Source material,"
Regulatory Problem to be Resolved Section 3116 of Public Law 104-134, by amending the Act, changes the way uranium enrichment facilities are regulated by the NRC and adds different procedural requirements for the certification of the gaseous diffusion facilities and the licensing of AVLIS.
The Commissions regulation's must cor. form to these changes.
J
New provisions of Section 3116 of Public Law 104-134 amended the Act as follows:
An amendment to Section liv, of the Act provides that AVLIS may be e
licensed using the one-step licensing process set forth in Section 193 of the Act (the same provision that Louisiana Energy Services' application is being processed under).
Under the prior law, the traditional two-step licensing process of 10 CFR Part 50 would have been required for AVLIS.
e An amendment of Section 193 of the Act mandates that the Commission not issue a certification of compliance to the USEC or its successor private corporation if the Commission determines that (1) the Corporation is owned, controlled or dominated by an alien, a foreign corporation, or a foreign government; (2) issuance wocid be inimical to the common defense or security of the United States; or (3) is inimical to the maintenance of a reliable and econ mical defense domestic-source of enrichment
- services, Another amendment of Section 193 eliminates the requirement that e
the Commission certify that the Corporation is in compliance with
-NRC regulations each year.
Instead, the Commission can determine how frequently the Corporation must submit a recertif::ation application to the NRC, provided that the NRC recertify Corporation compliance with its regulations at least once every 5 years.
Congress, however, did not eliminate the requirement found in Section 1701(a) of the Act, that the NRC shall report at least annually to the Congress on the status of health, safety, and -
environmental conditions at the gaseous diffusion facilities, Section 3116 also modifies Section 234a of the Act to provide the o
Commission with the authority to issue civil penalties to the Corporation for vio.ation of the provisions of the Act, regulations, orders and terms of the certificate.
The principal effect of these legislative' changes is that the referenced AVLIS-uranium enrichment facilities will be licensed pursuant to the provisions of the Act pertaining to source material and special nuclear material rather than the provisions pertaining to a production facility. Under this legislation, licensing of AVLI'S will be a single step licensing process with one license issued pursuant to 10 CFR Parts 40 and 70 rather than a two-part licensing process under 10 CFR Part 50.
In addition, provision is made to impose civil penalties on the USEC or its successor for failure to comply with regulatory requirements governing the safety of the operation of gaseous diffusion facilities. Also included is a requirement prohibiting issuance of a license / certificate as related to Corporation foreign ownership or domination.
Amendments to Parts 40, 70 and 76 are dictated.
i 2
Part-76 also needs amendment to eliminate the requirement that the Commission certify that the Corporation is in compliance with NRC regulations each year.
Instead, the Commission can determine how frequently the Corporation must submit a recertification application to the NRC, provided that the NRC recertify Corporation compliance with its regulations at least once every 5 years. Congress, however, did not eliminate the requirement found in Section-1701(a) of the Act, that the NRC shall report at least annually to the Congress on the status of health, safety, and environmental conditions at the gaseous diffusion facilities.
In addition to changes required by Public Law 104-134, the proposed rulemaking will also include several 10 CFR Part 76 administrative changes and corrections.
A proposed rule providing the necessary amendments to the Commission's regulations, should be published for public comment and codified through the rulemaking process.
Preliminary Regulatory Analysis The proposed changes to 10 CFR Parts 40, 70 and 76, must be made to bring these regulations into conformance with the Act.
Thus, the No Action option is not feasible for the proposed rulemaking and is not considered further.
The chief benefit to the public, industry, and NRC will be derived from the codification of the Commission's regulations to conform to the changes to f.he Act in accordance with Public Law 104-134.
Codification will facilitate the process for review of any license application for an enrichment facility and provide the final regulatory-base for health and safety review of the application.
The principal cost will be the expenditure of staff resources in codifying the requirements, which is estimated at 0.4 staff years. Codification of the i
requirements should also result in a better understanding of the procedures, and requirements for licensing and/or certification of enrichment facilities,
-and thereby reduce-the-litigation burden that might result from not having the provisions of the Act codified in regulation.
OGC Legal Analysis Subject to addresting issues discussed as the rule is developed, the options for the rulemaking plan are within the authority of the Commission, granted to the agency to protect public h1alth and safety through licensing /
certification of facilities under the Act of 1954, as amended, and required to implement new legislation, Backfit Analysis The NRC has determined that the backfit rules for 10 CFR 50.109 and 76.76, do j-not apply to this proposed rulemaking. Thus, a backfit analysis is not required for these amendmento, because they do not involve any provisions that would impose backfits as defined in 10 CFR 50.109(a)(1) and 76.76(a)(1).
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w Agreement State implementation Problems None. Agreement States do_not_ review or inspect uranium enrichment _ facility programs as_ regulated by the Commission.
Supportina Documents
- A Regulatory Analysis and OMB package will be required to support the rulemaking.
Resources Reauired
~
Resources to complete and implement the rulemaking are not _ included in the current Five-Year Plan.
The offices involved are RES, NMSS, OE and OGC.
Lead Office Staff and Staff From Supportina Offices RES/DRA C.-W. Nilsen NMSS John Hickey OE Nader Hamish OGC Kathryn Winsberg Steerina Group /Workina Group No. All staff developed proposals will be formulated and integrated at the Branch level (RES, NMSS and OE) with benefit of Office, and Commission review and concurrence _before publication for public comment.
Public Participation This Rulemaking Plan will be placed on an electronic bulletin board following EDO approval and Commission review.
The public will have the opportunity to comment on the proposed rule when'it is published in the Federal Register.
EDO or Commission Issuance
'The rulemaking is considered to be a minor question of policy and should require a notation vote on part of the Commission.
Schedule' Expressed _in terms of time from approval of the Rulemaking Plan.
Proposed Rulemaking Package 6 months Office. Concurrence (NMSS/0E/0GC/RES) 7 months Proposed rule to ED0 8 months Final rult to EDO 12 months 4