ML20211K161
| ML20211K161 | |
| Person / Time | |
|---|---|
| Issue date: | 08/16/1996 |
| From: | Morrison D NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| To: | Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| Shared Package | |
| ML20008B475 | List:
|
| References | |
| FRN-62FR6664, RULE-PR-2, RULE-PR-40, RULE-PR-70, RULE-PR-76 AF56-2-010, AF56-2-10, NUDOCS 9710090152 | |
| Download: ML20211K161 (12) | |
Text
_ _ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ ______ _ __
. MEMORANDUM 10: James M. Taylor Executive Director for Operations -
FROM: David L. Morrison, Director Office of Nuclear Regulatory Research i
SUBJECT:
RULEMAKING PLAN: USEC PRIVAllZATION ACT - AMENDMENT Of 10 CFR PARTS 40, 70, AND 76 (WITS-9600075)
I The attached Commission Paper and rulemaking plan are provided for your review and transmittal to the Commission. These documents discuss proposed changes to 10 CFR Parts 40, 70, and 76 to bring these regulations into conformance with the new statutory requirements of the USEC Privatization Act. ,
We are pursuing this rulemaking on a high priority with a very aggressive schedule. In order to meet'this schedule, I propose to establish an interoffice management steering committee comprised of Nick Costanzi (RES),
Bill Brach (NMSS), Joe Gray (0E) and Stu Treby (0GC). Nick Costanzi will chair the committee. The management steering committee will meet periodically
- to identify any issues that may impede the progress of rulemaking, to resolve those issues by making policy decisions, and to assess the overall progress.
In accordance with SECY-94-141, " Improvement of the Rulemaking Process," the
! comittee members will be delegated the authority to deliver the views and concurrence of the participating offices. The members will be responsible to keep their respective line management informed.
The staffs of the concerned offices have been working closely together on the l
development of the rulemaking plan. NMSS has indicated that they would like the rule to be effective by mid December 1996, and 0GC has recomended direct final rulemaking. The schedule in the rulemaking plan has been developed in response to the above. It should be noted that if the NRC receives significant adverse public coments, during the first 30 days following publication of the direct final rule action, the full notice and coment rulemaking process will be completed based on the proposed rule and the schedule will be revised with the effective date to be determined by resolutior of coments and final rulemaking action.
This approach has been agreed on by NHSS, OE and 0GC. If you have any questions, please call me (DLM3, 415-6641) or Sher Bahadur (SXB, 415-6226).
Attachments: As stated DISTRIBUTIONt Central f/c LRiani RDB r/f CGallagher PNorian DMendiola NCostanzi DOCUMENT NAME:0:\NILSEN\ TAYLOR.CWN. *See previous ~ concurrences,s'
-J/'
0FC RDB:DRA* RDB:DRA m m D:DRka D:RES d EDO DLMorrihon# JMTaylor NAME CNilsen:ayw SBahadu M BMoNis DATE 08/14/96 %/ @96 [/[/96 [ //f, /96 / /96 0FFICE RECORD COPY RES FILE CODE:
s f 9710090152 971003 * "fijp' s
PDR PR
,__2p2fR6664 PDR g
a9 e9 e
COMMISSION PAPER
I FOR: The Commissioners FROM: ,
James M. Taylor. Executive Director for Operations
SUBJECT:
RULEMAKING PLAN: USEC PRIVATIZATION ACT - CONF 0RMING CHANGES PURPOSE:
To inform the Commission that the EDO intends to approve the attached Rulemaking Plan to amend 10 CFR Parts 40, 70, and 76, to bring these regulations into conformance with the new statutory requirements of the "USEC Privatization Act."
ISSUE:
Public Law. 104-134, by amending the Atomic Energy Act of 1954, changes the way uranium enrichment facilities are. licensed and adds different procedural The Commission's regulations must conform to these changes. A requirements.
direct final rule providing the necessary amendments to the Commission's regulations should be published for public information and codified through the rulemaking process.
BACKGROUND:
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 the Act is a subchapter entitled the "USEC Privatization Act," which among 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 CONTACT:
Charles W. Nilsen, RDB/ ORA /RES-(301) 415-6209 i
The Commissioners 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 (the Act) with respect to the licensing of AVLIS and certification of Part 76 uranium enrichment facilities.
plSCUSSION:
The attached rulemaking plan would amend 10 CFR Parts 40, 70, and 76 as required to implement Section 3116 of Public Law 104-134. To conform with the l
changes to the Act by Public Law 104-134, these amendments contain several new j
and/or revised licensing / certification requirements tpecific to the Corporation and its successor's operation of uranium enrichment facilities.
Section 31'!6 of Public Law 104-134 amended the Act as follows:
l l
e An amendment to Section 11v. of the Act provides that AVLIS may be I 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 Part 50 would have been required for AVLIS.
- An amendment of Section 193 of the Act mandates that the Comnission 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 ar slien, a foreign corporation, or a foreign government; (2) issuance wou be inimical to the common defense or security of the United States; or (3) is inimical to the maintenance of a reliable and economical defense domestic source of enrichment services, ,
-e Another amendment of-Section 193 eliminates 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. ,
- Section 3116 also modifies Section 234a of the Act to provide the Commission with the authority to issue civil penalties to the Corporation for violation of the provisions of the Act, regulations, orders and terms of the certificate.
{
i l" !
1 The Commissioners RECOMMENDATION: l t
i Unless the Commission directs otherwise,10 days from the date of this paper, !
- I will. approve the Rulemsking Olan and direct the staff to begin development
, of a direct final rule.
4 COORDINATION:
The Office of the General Counsel has no legal objection to the actions :
proposed in the Rulemaking Plan The Offices of Nuclear Materials Safety and
' Safeguards, and Enforcement have concurred in the Rulemaking Plan, ,
.. i James M. Taylor Executive Director for Operations
Attachment:
Rulemaking Plan 4
i I
The Commissioners RECOMMENDATION:
Unless the Commission directs otherwise, 10 days from the date of this paper, I will approve the Rulemaking Plan and direct the staff to begin development of a direct final rule, i
COORDINATION:
! The Office of the General Counsel has no legal objection to the actions l
proposed in the Rulemaking Plan. The Offices of Nuclear Materials Safety and Safeguards, and Enforcement have concurred in the Rulemaking Plan.
l James M. Taylor Executive Director for Operations
Attachment:
Rulemaking Plan DISTRIBUTION:
Central f/c RDB r/f ED0 r/f PWorian t.Riani CGa11agher DOCUMENT NAME:0:\NILSEN\COMM.CWN
! 0FC RDB:DRA -
s_a RDB:DRA m D:DRA (hx D:RES /Jf N NAME dt[Y,e6ays ht\#SBahadur BMorris DMorri$n DATE 8 //84 96 S /l$/96 % /)i96
/ ( /b /96 n OFC EDO NAME JTaylor-DATE / /96 0FFICE RECORD COPY RES FILE CODE:
G G
I l
RULEMAKING PLAN USEC PRIVATIZATION ACT
l
! RULEMAKING PLAN FOR USEC PRIVATIZATION ACT (PU8LIC LAW 104-134)
- Lead Office: Office of Nuclear Regulatory Research i Staff
Contact:
C. W. Nilsen, RD8 Concurrences: A MN I/4 /f4 D. 96rrison, RES Date C. Paperiello, NMSS Date James Lieberman, OE Date Karen D. Cyr, OGC Date Approval:
J. M. Taylor Date
RULEMAKING PLAN - USEC PRIVAllZA110N ACT Uranium Enrichment Regulation: Rulemaking-Conforming 10 CFR Parts 40, 70 and 76 to the Requirements of Public Law 104-134 Requiatory_ Issue (Codify Lecislation)
On Aprl) 26, 1996, President Clinton signed into law li.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 "USEL Directors'PrivatizationAct,"whichamongotherthings,directstheBoardof of the United States Enrichment Corporation (USEC) to sell the 3 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 develonment of the atomic vapor laser isotope separation technology (AVLIS). In addition, this f legislation amended the Atomic Energy Act of 1954, .as amended (the Act) with resptet to the licensing of AVLIS and certification of 10 CFR Part 76 uranium enrichment facilities. To implement these amendmeets to the Act, several conformino changes to 10 CFR Parts 40, 70 and 76 are needed.
Current Rule Requirements The NRC certification of the two USEC gaseous diffusion plants is regulated under 10 CFR Part 76 " Certification of Gaseous Diffusion Plants.
Before Pub'iic Law 104-134, the hRC 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, "00mestic Licensing of Special Nuclear Material.
NRC regulated uranium enrichment f acilities are also required to have a license under 10 CFR Part 40
- Domestic Licensing of Source material."
Reculatory Problem to be Resolved SP; tion 3116 of Puolic Law 104-134, by amending the Act, changes the way uranium enrichmeret f acilities are regulated by the NRC and adds different procedural requirements for the certificat40r of the gaseous diffusion facilities and the licensing of AVLIS. The Commission's regulations must conform to these changes.
New provisions of Section 3116 of Public Law 104-134 amended the Act as follows:
e An amendment to Section liv of the Act provides that AVLIS may be licensed using the one-step itcensing 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.
- 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 would be inimical to the common defense
- or security of the United States; or (3) is inimical to the maintenance of a reliable and economical defense domestic source of enrichment services, e Another amendment of Section 193 eliminates the requirement that the Commission certify that the Corporation is in compliance with NRC re;pulations 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 l
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 Commission with the authority to issue civil penalties to the Corporation for violation 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 AVLIS 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. Under previous rulemaking Part 70 was revised pursuant to the " Solar, Wind, Waste, and Geothermal Power Production incentives Act of 1990" (Public Law 101-575) to include the licensing of uranium enrichment facilities. No changes are therefore required to Part 70 to license an AVLIS facility. As a point of reference Part 70 is currently the basic regulation for licensing the Louisiana Enrichment Services (LES) uranium enrichment facility, in addition, provision 'Is made in the legislation to impose civil penalties on l the USEC or its successor for f ailure to comply with regulatory requirements l governing the safety of the operation of gaseous diffusion facilities. Also l 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.
2
i Part 76 also needs amendment to eliminate the requirement that the Commission 1 certify that the Corporation is in compliance with NRC regulations each year.
Instead, the Commission can determine how frequently the Corporation mest 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.
This rulemaking providing the necessary amendments to the Commission's regulations to codify "USEC Privatization Act" (Public Law No. 104-134) legislation will be issued as a direct final rule, it should be noted that if ,
the NRC receives significant adverse pubile comments, during the first 30 days following publication of the direct final rule action, the full notice and ,
comment r61emaking process will be completed based on the proposed rule and the schedule will be revised with the effective date to be determined by resolution of comments and final rulemaking action.
Preliminary Reaulatory Analysis 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 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 the 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-requirerents 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.
0GC leoal Analysis
-Subject to addressing 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 health and safety through licensing / certification of f acilities under the Act of- 1954, as amended, and required to implement new legislation.
3
i Backfit Analysis lhe NRC has determined that the backfit rules for 10 CFR 50.109 and 76.76, do not apply to this rulemaking. Thus, a backfit_ analysis is not required for these amendments 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). i 1
Aareement State implementation Problems i J
None. Agreement States do not review or inspect uranium enrichment facility programs as regulated by the Comission.
l Supportina Documentg j
Thereareyosupportingdocuments, Re.sourcesReautred Resources to complete and implement the rulemaking are not included in the cerrent 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 040 Kathryn Winsberg Steerino Group /Workina Group i Yes. All staff developed proposals will be formulated and integrated through the-steering committee comprised of RES, NHSS, OE and OGC, Pubi'ic Participation This Rulemaking Plan will be placed on an electronic bulletin board following E00 approval and Comission review.
E00 or Comission issuance The rulemaking is considered to be a minor question of policy and issuance by the EDO is recomended.
Schedule Direct Final Rulemaking Package Mid September, 1996 Rulemaking Package to E00- - Early October,19')6 4