ML20211K348
| ML20211K348 | |
| Person / Time | |
|---|---|
| Issue date: | 11/06/1996 |
| From: | Costanzi F NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| To: | Brach W, Lieberman J, 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 AF56-2-025, AF56-2-25, NUDOCS 9710090209 | |
| Download: ML20211K348 (95) | |
Text
._ _.
Office of Nuclear Material Safety end Safeguards
'T>DR -
James Lieberman, Director
[M 6b 9-Office of Enforcement Stuart A. Treby Assistant General Counsti for Rulemaking and fuel Cycle Office of General Coursel FROM:.
Frank A. Costanzi, Deputy Director /5/
Division Regulatory Applications Office of Nuclear Regulatory Research
SUBJECT:
USEC PRIVATIZATION ACT Attached is the USEC Privatization Act direct final rulemaking package for office concurrence.
In accordance with Management Directive 6.3, "The Rulemaking Process," you have been delegated the authority to deliver the views and concurrence of the participating offices (memorandum, D.L. Morrison to J.M. Taylor, September 6, 1996, attached).
I believe your comments and suggestions have been included in the concurrence draft, along with editina comments from Administration.
As requested by the Steering Committee the major changes resulting from the last meeting are identified, Please note, however, the package does not include possible regulatory changes in connection with the recent Congressional action concerning security guards at l
the GDPs.
In order that we continue to expedite this rulemaking, may I please have your concurrence, or concurrence with comments by COB Wednesday, November 13, 1996.
I realize this is a short time for review, but I believe that the no issues remain outstanding, save that the armed guards noted above, from our last meeting. Moreover, the use of comparative text should facilitate your review, Attachments:
1.
Transmittal memo Morrison to Taylor dated 9/6/96 2.
Transmittal memo Morrison to Taylor 3.
Commission Paper 4.
FRN Direct Final Rule 5.
FRN Proposed Rule 6.
FRN Change to NUREG-1600 7.
Public Announcement 8.
Congressional Letters 9.
Major Rule negative finding cc:
TMartin PNorian DISTRIBUTION:
l Central f/c CGallagher RDB r/f DMendiola LRiani DOCUMENT NAME:0:\\NILSEN\\USEC-FIN \\USECPRIV.MLM OFC RDB:DRA QDkpF(
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/I / (,/96 9710090209 971003 0FFICE RECORD COPY 2$2FR664 PDR
.A ATTACHMENT 1
' [ * '. 7 ay MEMORANDUM 10:
James M. Taylor Executive Director for 0 erations 9
FROM:
David L. Morrison, Director
/s/ Josepn A. Nr;ny Ear Office of Nuclear Regulatory Research
SUBJECT:
RULEMAKING PLAN: USEC PRIVATIZATION ACT AMEN 0 MENT Of 10 CFR PARTS 40, 70, A60 74 ; WITS-9600075)
The attacned commission Paper ar:d rulemaking plan are provided for your review These documents discuss vaposed changes and transmittdi to the Commission.
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 In order to meet t!.is schedule, I propose to establish an schedule.
interoffice management steering comittee comprised of Nick Costanzi (DES),
Nick Costanzi will Bill Brach (NMSS), Jim Lieberman (OE) and Stu Treby (0GC).The management st chair the comittee.
any issues that may impede the progress of rulemaking, to resolve those issues, and to assess the overall progress.
In accordance with Management Directive 6.3, "The Rulemaking Process," the committee members will be delegated the authority to deliver the views and concurrence of the The members will be responsible to keep their participating offices.
respective line management informed, The staffs of the concerned offices have been working closely together on the NMSS has indicated that they wuald like i
development of the rulemaking plan.the rule to be effective by mid December 1996, and The schedule in the rulemaking plan has been developed in final rulemaking.
It should be noted that if the NRC receives response to the above.
significant adverse public comments, during the first 30 days following publication of the direct final rule action, the full-notice and comment rulemaking 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.
If you have any This approach has been agreed on by NMSS, OE and 0GC.
or Sher Bahadur (SXB, 415-6226).
questions, please call me (DLH3, 415-6641)
Attachments:
As stated DISTRIBUTION:
Central f/c LRiani RDS r/f CGal1agher PNorian DMendi01a NCostanzi DOCUMENT NAME:0:\\NILSEN\\ TAYLOR.CWN
- See previous concurrences I
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i MEMORANDUM 10:
James M. Taylor Executive Director fer Operations FROM:
David L. Morrison, Director Office of Nuclear Regutatory Research i
)
SUBJECT:
DIRECT iINAL RULEMAKING - USEC PRIVATIZATION ACT - AMENDMENT OF 10 CFR PARTS 2, 40, 70, AND 76 (WITS-9600075) AND REVISION TO NRC ENFORCEMENT POLICY (NUREG-1600)
Enclosed for your signature is a Commission paper transmitting a direct final rulemaking to the Commission amendiW 10 CFR Parts 2, 40, 70, and 76 to bring these regulations into ro.1formance with the new statutory requirements of the USEC Privatization Act and the associated revision to the Enforcement Policy (NUREG-1600 " General Statement of Policy and Procedures for NRC Enforcement Action").
Backfit Anal _vsis:
The staff has determined that the backfit rules, 10 CFR 50.109 and 76.76, do not apply to this rule.
Thus, a backfit analysis is not required for thesa amendments because they do not involve any provisions that would impose backfits as defined in il 50.109(a)(1) and 76.76(a)(1).
Coordination:
The Offices of Administration, Nuclear Material Safety and Safeguards, Information Resource t'..jement and Enforcement concur in these amendments.
The Office of Generv Counsel has no legal objection.
Prior to publication of the direct final rule, the NRC staff will obtain from the Office of Management and Budget a determination whether this final rub is a " major rule" under the Small Business Regulatory Enforcement Fairness Act.
Resources to complete and implement the rulemaking are included in the FY 1997 budget.
Enclosure:
Commission Paper w/encls.
ATTACHHENT 3
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fjg:
The Comissioners FROM:
James M. Taylor Executive Director for Operations
SUBJECT:
DIRECT FINAL RULEMAKING: USEC PRIVATIZATION ACT -
-CONFORMING CHANGES AND REVISION TO-THE NRC ENFORCEMENT POLICY (NUREG-1600)
PURPOSE:
-To obtain Commission approval of a direct final rule to amend 10 CFR Parts 2, 40, 70, and 76 to bring these regulations into conformance with the new statutory requirements of the USEC Privatization Act and the associated revision to the Enforcement Policy (NUREG-1600 " General Statement of Policy and Procedures for NRC Enforcement Action").
ISSUE:
The USEC Privatization Act changes-the way uranium enrichment facilities are licensed / certified and adds different procedural requirements. The Comission's regulations must conform to these changes.
A 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 legislation is a subchapter entitled the 'USEC Privatization Act," which directs the Board of Directors of the United States Enrichment Corporation (USEC) to sell the assets of the USEC to CONTACT:
Charles W. Nilten, RES (301) 415-62098
The Commissioners a private sector entity.
The private sector corporation that purchases the assets of USEC will be responsible for the operation of the two gaseous diffusion plants and the development of the atomic vapor laser isotope separation (AVLIS) technology.
In addition, this legislation amended the Atomic Energy Act of 1954 (the Act) with respect to the licensing of AVI d and certification of Part 76 gaseous diffusion plants (GDPs).
To implement thest.
amendments to the Act several conforming changes to 10 CFR Parts 2, 40, 70, and 76 are needed.
DISCUSSION:
The enclosed direct final rule, and associated proposed rule (Enclosure 1),
will amend 10 CFR Parts 2, 40, 70, and 76 as required to implement Section 3116 of Public Law 104-134.
To conform with the changes in the legislation (Enclosure 2), several new and revised licensing / certification requirements-specific to USEC and its successor's operation of gaseous diffusion plants are required.
The legislation (1) requires that AVLIS uranium enrichment f acilities be licensed subject to the provisions of the Act pertaining to source material and special nuclear material rather than under the provisions pertaining to a production facility; (2) prohibits issuance of a license / certificate to USEC or its successor if it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government, or if issuance would be inimical to the common defense and security of the United States or to the maintenance of a reliable and economical domestic source of enrichment services; (3) eliminates the requirement that the Commission certify that USEC or its successor is in compliance with NRC regulations each year; and (4) provides for issuing civil penalties to USEC or its successor for failure to comply with regulatory requirements governing the safety of the operation of_ gaseous diffusion plants.
Concerning AVLIS, a principal effect of Pub. L. 104-134 is that the referenced AVLIS uranium enrichment facilities will be licensed under a single-step licensing process with the license issued pursuant to 10 CFR Parts 40 and 70, rather than a two-step licensing process under 10 CFR Part 50.
The regulations previously were amended to provide a process for licensing uranium enrichment fa::ilities using a single-step license as amended to conform with the " Solar, Wind, Waste, and Geothermal Power l
Production incentives Act of 1990," Pub. L. 101-575 (57 FR 18388, April 30,1992). Part 10 was made the basic regulation for licensing an uranium enrichment facility. That legislation specifically excluded AVLis uranium enrichment facilities, then under development by the Department of Energy, from the one step licensing process. However Pub.
L. 104-134 makes the development of AVLIS a responsibility of USEC (which will-become a private entity as a result of this legislation) and removes the exclusion of AVLIS from one-step licensing.
Therefore, the licensing of AVLIS, as with other licensed uranium enrichment facilities, will require an environmental review, adjudicatory hearing, inspection before operation, and third party liability insurance, it is also noted _that, in addition to the regulations of Part 70, the
_m______
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The Commissioners licensing process for Louisiana Enrichment Services (LES) was supplemented by Commission Notice i.nd Order which established procedures and criteria for granting a license to LES.
Procedures and criteria included in the LES notice and order are: (1) Notice of receipt of application and availability of documents; (2) Notice of hearing; (3) Criteria for issuance of a license; (4) App' Rable rules and regulations; and (5) Notice of intent regarding classified information.
A similar action may be required for the review and licensing of AVLIS.
The legislation includes specific language restricting issuance of a o
certificate or a li ense to the USEC or its successor if the issuance would be inimical to the maintenance of a reliable and economical domestic source of enrichment services. Heretofore, the Commission has not been asked in its regulatory decisions to evaluate whether a proposed action is inimical to the viability of the domestic industries subject to NR"s regulation.
Information about the intent of the language is contained in a Senate Committee report on an earlier version of the legislation (S. Rpt. No. 104-173 on S.755, November 17, 1995),
which states that the provision is to " guard against the possibility of a foreign uranium enrichment company acquiring the Corporation with the intent of operating it in such a manner inconsistent with its maintenance as an ongoing uranium enrichment concern." No certificate or license should be issued "if in the opinion of the NRC the issuance of such a license or certificate of compliance would be inimical to the common defense and security of the United States or would be inimical to the maintenance of a reliable and economical domestic source of enrichment services because of the nature and extent of the ownership, control, or domination of the Corporation by a foreign corporation or a foreign government or any other relevant factors or circumstances."
The NRC staff will evaluate this restriction on certification of the GDPs and licensing of AVLIS based, in part, on the following:
Information required under il 70.22 and 76.33 "information known to the applicant concerning the control or ownership, if any, exercised over the applicant by any alien, foreign' corporation, or foreign government."
Information required under il 70.25 and 76,35 concerning funding plans for decommissioning and waste removal.
Information to be obtaineo under a proposed rule (61 FR 40555) amending the provisions of 10 CFR Parts 25 and 95 that deal with requirements for access to and protection of classified information. (The proposed rule should become final in January of 1997.)
These amendments were proposed to conform the NRC's regulations with the nationally applicable requirements for the protection of and access to classified National Security Information, which have been revised through the issuance of the National Industrial Security Program Operating Manual (NISP0H),
published January 1995; Executin Order 12958, " Classified National Security Information," dated April 17, 1995; and
o The Commissioners Executive Order 12968. " Access to Classified Information," dated August 4, 1995.
Specifically, a! related to foreign ownership, control, or domination, the NISPOM provides criteria for determining whether U.S. companies handling classified material are under foreign ownership, control, or influence (f0CI).
f0Cl requirements established in proposed revisions to 10 CFR Part 95 are more detailed and restrictive than the "0wned, Controlled, or Dominated" requirements in 10 CFR Part 50.38 that were previously used by the NRC, and are considered applicable to the subject finding the Commission must make under the provisions of the 1996 legislation.
In addition, the NRC staff is preparing procedures for developing the required annual report for Congress and guidance for recertification which will define the findings to be made concerning foreign ownership and domination, Another amendment of Section 193 eliminates the requirement that the o
Commission certify that USEC or its successor is in compliance with NRC regulations each year.
Instead, the Commission can determine how frequently USEC or its successor must submit a recertification application to the NRC, provided that the NRC recertifies compliance It is the NRC staff's with its regulations not less than every 5 years.
intent that the initial certification will be for 2 years to permit most items of the compliance plan to be completed.
Subsequent recertifications will be based on a number of considerations, including im,nlementation status of compliance plans and certification regulatory The exact exper ence as determined by the NRC's inspection program.
I term will be specified in the certificate.
Congress, however, did not eliminate the requirement found in Section 1701 (a) of the Act that the NRC shali report at least annually to the Congress on thi status of health, safety, and environmental conuitions at the gaseous diffusion plants.
Section 3116 also modifies Section 234a of the Act to provide the i
e Commission with the authority to issue civil penalties to the USEC or its successor for violation of the provisions of the Act, regulations, orders, and the terms of the certificate and compliance pian.
Therefore, the staff proposes that the " General Statement of Policy and Procedures for NRC Enforcement Action," NUREG-1600, be amended to provide examples of violations in each of the four severity levels as guidance in determining the appropriate severity level for violations in the area of gaseous diffusion plant operations.
The proposed revisions are described in the enclosed Federal Register notice (Enclosure 3).
The revision would be effective concurrently with the amendments to 10 CFR Parts 2, 40, 70, and 76. They will be reflected in the next revision to NUREG-1600.
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The Commissioners,
COORDINATION:
4 i
The Office of the General Counsel has reviewed this direct final rule and has no legal objection.
RECOMMENDA1:UNS:
j That the Commission:
1.
Approve the Notice of Direct final Rule and associated Proposed Rule (Enclosure 1), and the revision to the NRC Enforcement Policy
{
(Enclosure 3) for publication.
2.
Certify that, if promulgated, this rulemaking will not have a significant economic impact on a substantial number of small entities in order to satisfy requirements of_the Regulatory Flexibility Act, 5 U.S.C. 605(b).
3.
Note:
a.
This direct final rule action is noncontroversial and routine; therefore, the NRC is not seeking public comments and this action will become effective 60 days after publication in the Federal Register unless significant adverse comments are received; b.
This-direct final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) because it only affects a single operator, USEC or its successor; c.
A public announcement will be issued (Enclosure 4);
d.
The appropriate Congressional Committees will be informed (Enclosures 5); and e.
This rule is not a " Major rule' as defined by 5 U.S.C. 804(2)
(Enclosure 6).
James M. Taylor Executive Director for Operations
Enclosures:
.1) FRN - Direct Final and Proposed Rule
- 2) Public Law 104-134
- 3) Supplement to NUREG-1600
- 4) Public Announcement
- 5) Congressional Committee letters
- 6) Major Rule
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NUCLEAR P.EGULATORY COMMISSION 10 CFR Parts 2, 40, 70, and 76 RIN: 3150-AF56 USEC Privatization Act l
l AGENCY:
Nuclear Regulatory Commission, 1
ACTION:
Direct final rule.
i
SUMMARY
The Nuclear Regulatory Commission (NRC) is amending its regulations concerning the licensing of uranium enrichment facilities to conform to changes made to the Atomic Energy Act of 1954, as amended (the Act), by the USEC Privatization Act legislation.
Although the principal effect of this legislation is to direct the Board of Directors of the United States Enrichment Corporation (USEC) to sell the assets of the USEC to a private sector entity, this legislation also amended the Act with respect to NRC certification of gaseous diffusion plants leased by USEC and the licensing of atomic vapor laser isotope separation (AVLIS) technology.
The Corporation is responsible for the operation of the two gaseous diffusion plants and the development of the AVLIS technology.
The legislation: (1) requires that AVLIS uranium enrichment facilities be licensed subject to the provisions of the Act pertaining to source material and special nuclear material rather than under the provisions pertaining to a production facility; (2) provides for the issuance of civil penalties to USEC or its successor for failure to comply with regulatory requirements governing the safety of the operation of gaseous diffusion plants; (3) prohibits
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issuance of a license / certificate to the Corporation or its successor if it is I
owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government, or if its issuance would be inimical to the conson defense and security of the United States or to the maintenance of a reliable and economical domestic source of enrichment services; and (4) eliminates the annual requirement that the Commission certify that USEC or its successor is in compliance with NRC regulations.
The Commission may determine how frequently USEC or its successor must submit a recertification application to t
the NRC, provided that the NRC recertify USEC's or its successor's compliance with its regulations not less frequently than every five years.
The adopted rule changes bring the current regulations into conformance with these provisions.
DATE:
The final rule is effective on (insert date 60 days after publication) unless significant adverse comments are received by (insert date 30 days after publication).
If the effective date is delayed, timely notice will be published in the federal Register.
ADDRESSES: Mail written comments to: The Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. ATTN: Docketing and Service Branch.
Hand deliver comments to:
11555 Rockville Pike, Rockville, MD, between 7:30 am and 4:15 pm on Federal workdays.
For information on submitting comments electronically, see the discussion under Electronic Access in the Supplementary Information Section.
Copies of comments received may be examined or copied for a fee at the NRC Public Document Room, 2120 L Street NW. (Lower Level), Washington, 00, t
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i FOR FURTHER INFORMAil0N CONTACT:
Mr. C. W. Nilsen, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, telephone (301) 415-6209.
SUPPLEMENTARY INFORMAT10N:
===.
Background===
On April 26, 1996, President Clinton signed legislation that provides for fiscal year (FY) 1996 appropriations to a number of federal agencies (H.R.
3019 (Pub. L.
104-134)).
Included within the legislation is Title 111, Chapter 1, entitled "USEC Privatization Act," which 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 USEC will be responsible for the operation of the gaseous diffusion plants known as the Portsmouth Plant and the Paducah Plant, located at Piketon, Ohio, and Paducah, Kentucky, respectively, and the f
development of the atomic vapor laser isotope separation (AVLIS) technology, in addition, the legislation amended the Atemic Energy Act of 1954, as amended (the Act), with respect to the cerufication of gasaous diffusion plants and licensing of an AVLIS facility.
The gaseous diffusion plants are regulated under 10 C.'R Part 76, " Certification of Gaseous Diffusion Plants." Operation of an AVLIS facility will be licensed under 10 CFR Parts 40, " Domestic Licensing of Source material" and 70, " Domestic Licensing of Special Nuclear Material."
3
Discussion A principal erin t of-Pub..L. 104-134 on NRC licensing actions is that the referenced AVLIS uranium enrichment facilities will be licensed pursuant j
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 AVLIS licensing will be a single-step licensing I
process with one license issued pursuant to 10 CFR Parts 40 and 70, rather than a two-step licensing process under 10 CFR Part 50.
The regulations L
previously were amended on April 30, 1992 (57 FR 18388) to conform with the
' Solar, Wind,- Waste, and Geothermal Power Production incentives Act of 1990,"
-(Pub. L. 101-575) by providing a. single-step process for licensing uranium enrichment.
The April 30, 1992 amendments also made 10 CFR Part 70 the basic regulation for licensing a uranium enrichment. Although the 1990 legislation i
specifically excluded AVLIS uranium enrichment, then under-development by the Department of Energy, from the one-step licensing process, Pub. L. 104-134 made the development of AVLIS a responsibility of USEC-(which will become a private entity as a result of this legislation) and removed the exclusion of AVLIS from one-step licensing.
Therefore, licensing of AVLis, as with other licensed uranium enrichment, will be a one-step process requiring an environmental review, a' judicatory hearing, inspection before operation, and d
third party liability insurance.
However, for other purposes of the Act, such as controlling the export of specially designed or prepared uranium enrichment equipment and preservation of Federal authority in Agreement States, all uranium enrichment regulated by the NRC remain under the Atomic Energy Act l
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provisions for production facilities.
Specific implementing amendments are as follows:
10 CFR 70.1, " Purpose" is revised to indicate that all uranium enrichment requiring a license will be licensed under 10 CFR Part 70.
" Domestic Licensing of Special Nuclear Material."
In 10 CFR 40.4 and 70.4. "Defin/tlons" the term Corporation is added to l
appropriately refer to the licensing of the Corporation or its successor for 4
operation of an AVLIS facility.
In 10 CFR 76.4, "Defin/tlons" the term Corporation is amended to include the successor to USEC.
In addition, in conformance with the 1996 legislation, provisions are i
made in 10 CFR Parts 2 and 76 to allow the NRC to impose civil penalties on i
the USEC or its successor for failure to comply with regulatory requirements i
i governing the safety of the operation of the gaseous diffusion plants I
regulated under 10 CFR Part 76. Civil penalty authority presently contained in 10 CFR Part 70 would apply te AVLIS licensing.
However, the " General Statement of Policy and Proceduras for NRC Enforcement Action" NUREG-1600, is being supplemented to provide examples of violations in each of the four severity levels as guidance in determining the appropriate severity level for violations in the area of gaseous diffusion plant operations.
Specific implementing amendments are as follows:
In 10 CFR 2.200(a) concerning the scope of Subpart B of Part 2, a new sentence is added to read as fallows:
"However, with regard to the-holder of a Part 76 Certificate of Compliance or Compliance Plan, the applicable procedures are set forth in 176.70." This change is made to clarify that the provisions governing the issuance of an order or notice of violation to the 5
holder of a certificate of compliance or compliance plan under 10 CFR Part 76 are contained in i 76.70.
In 10 CFR 2.205(a) a reference to the 1 76.70(d), " notice of violation,"
and a reference to the provisions of a 10 CFR Part 76, " certificate of compliance or compliance plan," are added because the-Commission now has authority to issue civil penalties to the Corporation for violation of its regulations.
Similarly, in 10 CFR 76.10(b), the last phrase, "except, that the Corporation is not subject to the authority of Section 234 of the Act", is eliminated because the Corporation is now subject to Section 234 of the Act.
10 CFR 76.60 (c)(1) and (d)(1) are removed.
These paragraph designations are reserved and the last phrase of 5 76.60(1), "provided, however, that civil penalties shall not be imposed on the Corporation pursuant to 5 95.61 of this chapter except for violations of Section 206 of the Energy Reorganization Act" is eliminated also. These prohibitions to issue civil penalties were removed to permit the imposition of civil penalties.
In 10 CFR j
76.72(d), a reference to the new Section 234 civil penalty authority is added.
10 CFR 76.131(a)(3)-reference to Title XI of the Energy Policy Act of 1992 is eliminated as redundant and unnecessary because this act's applicable provisions were amendments to the Atomic Energy Act of 1954.
Reference to Section 206 of the Energy Reorganization Act has been relocated from i 76.131(b) to paragraph.(b)(2).
References to violations under Section 234 of the Atomic Energy Act of 1954, as amended, and specific references to-sections of the Act are added as subsections (b)(1), (b)(3), and (b)(4) to describe the new civil penalty. authority.
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A provision is also added that states that the Commission will not issue l
a license or certificate to the Corporation or its successor if the Commission finds that the Corporation is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government, or that issuance would be inimical to the common defense and security of the United States or to the maintenance of a reliable and economical domestic source of enrichment services.
This provision is added to conform with the legislation, W ch includes specific language that restricts issuance of a certi,1cate or a license to the USEC or its successor if the issuance would be inimical to the maintenance of a reliable and economical domestic source of enrichment services.
Heretofore, the Commission has r.ot been asked in its regulatory decisions to evaluate whether a proposed action is inimical to the viability of the domestic industries subject to NRC's regulation.
Information about the intent of the language is contained in a Senate Committee report on an earlier version of the legislation (S. Rpt. No. 104-173 on S.755, November 17,1995),
which states that the provision is to " guard against the possibility of a foreign uranium enrichment company acquiring the Corporation with the intent of operating it in such a manner inconsistent with its maintenance as an ongoing uranium enrichment concern." No certificate or license should be issued "if in the opinion of the NRC the issuance of such a license or certificate of compliance would be inimical to the common defense and security of the United States or would be inimical to the maintenance of a reliable and economical domestic source of enrichment services because of the nature and:
1 extent of the ownership, control, or domination of the Corporation by a foreign corporation or a foreign government or any other relevant factors or circumstances."
7
To comply with this provision of the 1996 legislation, the NRC staff will evaluate this restriction on certification and licensing based, in part, on the following:
Information required under il 70.22 and 76.33 "information known to the applicant concerning the control or ownership, if any, exercised over the applicant by any alien, foreign corporation, or foreign government."
j information renuired under il 70.25 and 76.35 concerning funding pla..s i
for decommissioning and waste removal.
i Information to be obtained under a proposed rule (61 FR 40555) amending the provisions of 10 CFR Parts 25 and 95 that deal with requirements for access to and protection of classified information. (The proposed rule should become final in January of 1997.) These amendments were proposed to conform the NRC's regulations with the nationally applicable requirements for the protection of and access to classified National Security Information, which have been revised through the issuance of the National Industrial Security Program Operating Manual-(NISPOM), published January 1995; Executive Order 12958, ' Classified National Security Infornation," dated April 17, 1995; and Executive Order 12968, " Access to Classified Information," dated August-4, 1995.
Specifically, as related to foreign ownership, control, or domination, the NISPOM provides criteria for determining whether U.S. companies handling classified material are under foreign ownership, control, or influence (FOCl).
FOCl requirements established-in proposed revisions to 10 CFR Part 95 are more
_' detailed and restrictive -than the " Owned, Controlled, or Dominated" requirements in 10 CFR Part 50.38 that were previously used by the NRC, and are considered applicable to the subject finding the Commission must make under the provisions of the 1996 legislation.
8
0 0
in addition, the NRC staff is preparing procedures for developing the required annual report for Congress and guidance for recertification which will define the findings to be made concerning foreign ownership and domination.
Specific impicmenting amendments are as follows:
New sections 10 CFR 40.38 and 70.40 entitled, "Incifgfbfifty of certain 1
appifcants," are added to state that the NRC will not issue a license to operate an AVLIS onrichmert facility to the Corporation if:
(1) It is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government; (2) Issuanc, would be inimical to the common defense and security of the United States: sr (3) Issuance would be inimical to the maintenance of a reliable and economical domestic source of enrichment services.
A new 10 CFR 76.22 entitled, "Ineligibfifty of certain appifcants," is added that states that the NRC will not issue a certificate of compliance to the Corporation under these parts if:
(1) It is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government; (2) Issuance would be inimical to the common defense and security of the United States; or (3) Issuance would be inimical to the maintenance of a reliable and economical domestic source of enrichment services, i
Another provision in the legislation eliminates the requirement that the NRC must certify that USEC or it successor's operation of the gaseous diffusion plants is in compliance with NRC regulations each year,
- instead, the Commission may determine how frequently the USEC or its successor must 9
submit a recertification application to the NRC.
However. NRC must recertify the Corporations compliance at least every five years.
The initial certification, granted on
, was made effective for two years to permit most items of USEC's compliance plan to be completed.
As part of the certification process, the compliance plan details how the Corporation will achieve compliance with NRC regulations in transition from the operation of the giseous diffusion plants under the requirements of the Department of Energy to operation under the regulatory uthority of the NRC.
Subsequent recertification will be based on a number of considerations, including implementation status of compliance plans and certification regulatory experience as determined by the NRC's inspection program.
The exact term of each certification will be specified in the certificate.
As noted in a Senate Committee report (S. Rpt. No. 104-173 on S.755, November 17, 1995, page 31),
"With periodic certification, the NRC would have the flexibility to determine the appropriate length of certification, not to exceed five years." Specific implementing amendments are as follows:
10 CFR 76.31 is revised to provide for periodic application for recertification of compliance on or before April 15 of the year specified in an existing certificate of compliance as determined by the Commission, but not less frequently than every five years.
Accordingly, in 10 CFR 76.35, 76.36, 76.43, 76.45, 76.55, and 76.66 references to annual recertification are removed.
10 CFR 76.68 is revised to provide that the Corporation or its successor will continue to submit revised change pages to their approved application and safety analysis report annually to ensure current plant documentation, even though the requirement for an annual application has been removed.
10
The Commission is proceeding with this rulemaking to amend 10 CFR Parts 2, 40,-70, and 76 as required to implement section 3116 of Pub L. 104-134. To confnrm with these changes to the Act, the amendments in this rule contain several new and revised AVLIS licensing and gaseous diffusion plant certification requirements specific to the Corporation's and its successor's operation of uranium enrichment facilities.
In summary, the amendments to 10 CFR Chapter I are being made tn:
(a) Provide that uranium enrichment facilities will be licensed under 10 CFR Part 70, Domestic Licensing of' Special Nuclear Material (See i 70.1);
b) Add and amend where_needed the definition of " Corporation" to include the USEC privatized entity (See il 40.4, 70.4 and 76.4);
c) Note that the Commission will not issue a license / certificate if the Commission finds that USEC or its successor is under foreign ownership or control (See il 40.38, 70.40 and 76.22);
d) Amend the provision concerning periodic recertification for operation (See il 76.31, 76.35(n), 76.36(a), 76.43, 76.45(a), 76.55, 76.66 and 76.68(b)); and e) Note and clarify the authority to issue civil penalties to USEC or its successor for regulatory violations (See il 2.200(a), 2.205(a), 76.10(b),
76.60, 76.72(d) and 76.131).
The NRC is also amending the regulations in 10 CFR Part 76 to correct several miscellaneous errors in the regulatory text.
These errors in the Code of Federal Regulations text occurred-in the process of preparing and printing the final rule published on September 23, 1994 (59 FR 48944).
Specifically:
in i 76.21(b) the reference to-l 40.41 should be_ to i 40.51; in il 76.111 and 76.113 " uncontrolled classified" should be " Unclassified Controlled" Nuclear 11
information, and in i 76.76(a)(2) the "(c)" should be "(b)."
In addition, the definition of " Uranium enrichment plant" is ramoved from i 76.4 because it is neither needed nor used in Part 76, which is specific to gaseous diffusion plants.
Electronic Access Comments may be submitted electronically, in either AScil text or Wordperfect format (version 5.1 or later), by calling the NRC Electronic Bulletin Board (BBS) on FedWorld.
The bulletin board may be accessed using a personal computer, a modem, and one of the commonly available communications software packages, or directly via Internet.
Background dcruments on the rulemaking are also available, as practical, for downloading and v; awing on the bulletin board.
If using a personal computer and modem, the NRC rulemaking subsystem on FedWorld can be accessed directly by dialing the toll free number (800) 303-9672. Communication software parameters should be set as follows:
parity to none, data bits _to 8, and stop bits to 1 (N,8,1). Using ANSI or VT-100 terminal emulation, the NRC rulemaking subsystem can _then be accessed by selecting the " Rules Menu" option from the "NRC Main Menu." Users will find the "FedWorld Online User's Guider" particularly helpful. Many NRC subsystems and data bases also have a " Help /Information Center" uption that is tailored to the particular subsystem.
The NRC subsystem on FedWorld can also be accessed by a direct dial phone number for the main FedWorld BBS, (703) 321-939, or by using Telnet via Internet: fedworld. gov, if using (703) 321-3339 to contact FedWorld, the NRC-12
o subsystem will be accessed from '.e main fedWorld menu by selecting the
" Regulatory, Government Admit ation and State Systems," then selecting "Rogulatory Information Mall.
At that point, a menu will be displayed that has an option "U.S. Nuclear Regulatory Commission" that will take you to the NRC Online main menu.
The NRC Online area also can be accessed directly by typing "/go nrc" at a fedWorld command line.
If you access NRC from FedWorld's main menu, you 4v return to FedWorld by selecting the " Return to FedWorld" option from the NRC Online Main Menu.
However, if you access NRC at FedWorld by using NRC's toll-free number, you will have full access to all NRC systems, but you will not have access to the main FedWorld system.
If you contact FedWorld using Telnet, you will see the NRC area and menus, including the Rules Henu.
Although you will be able to download i
documents and leave inessages, you will not be able to write comments or upload 1
files (commeni.s).
If you contact FedWorld using FTP, all files can be acces:,ed and downloaded but uploads are not allowed; all you will see is a list of files without descriptions (normal Gopher look) _ An index file listing all files within a sublirectory, with descriptions, is available.
There is a 15-minute time limit for FTP access.
r Although FedWorld also can be accessed through the World Wide Web, like FTP, that mode only provides access for downloading files and does not display the NRC Rules Menu.
For more information on NRC bulletin boards call Mr. Arthur Davis, Systems Integration and Development Branch, NRC, Washington, DC 20555-0001, telephone (301) 415-5780; e-mail AXD30nrc. gov.
13
e
=
i Procedural Background The NRC considers this action noncontroversial and routine because it implements specific statutory requirements (Pub. L. 104-134).
Therefore, the Commission is approving it without seeking public comments on proposed amendments.
This action will become effective on [60 days after publication i
in the Federal Register). !!awever, if the NRC receives significant adverse comments by (30 days after publication in the Federal Register), the NRC will withdraw this action and address the significant adverse comments received in_
)
response to the revisions published in this Federal Register notice before a 7
final rule becomes effective.
The NRC will not initiate a second comment
- period on this action.
Revision to NUREG-1600
" General Statement of Policy and Procedures for NRC Enforcement Actions" Concurrently with this Direct Final Rule the Commission is publishing a document elsewhere in this issue of the Federal Register that amends NUREG-1600, " General Statement of Policy and Procedures for NRC Enforcement Action" which provides examples of violations in each of the four severity levels as guidance in determining tha appropriate severity level for violations in the area of gaseous diffusion plant operations.
The amendment is to Supplement VI, " Fuel Cycle and Materials Operations," and provides additional examples of violations that should be categorized at Severity Levels I, II.-
Ill, and IV. The supplement recognizes that violations have differing degrees 14
--.2,
__.n.._,.--._,.._._,,._.-.,..._-..,-._,_....~.._,~._.
s of safety significance.
As reflected in the severity levels, safety significance includes actual safety consequence, potential safety consequence, and regulatory significance.
Environraental impact: Categorical Exclusion The NRC has determined that this regulation is the type of act' n described as a categorical exclusion in 10 CFR 51.22(c)(1) and (3).
Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this direct final rule.
Paperwork Reduction Act Statement for Direct Final Rule This direct final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of-1995 (44 U.S.C. 3501 et seq.). : Existing requirements were approved by-the Office of Management and Budget, approval numbers 3150-0020, -0021, -0009, -0039.
Public Protection Notification The NRC may not co auct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number, 15
s f
Regulatory Analysis Changes to 10 CFR Parts 2, 40, 70, and 76 must be made to bring these regulations into conformance with the Act as amended by the "USEC Privatization Act" (Public Law 104-134).
The chief benefit to the public, industry, and NRC will be derived from codification of NRC regulations to conform to the chanoas to the Act. Codification should result in a better understanding of the procedures and requirements for licensing and/or certification of (nrichment facilities, and thereby facilitate the process for review of a license application for uranium enrichment facility, and possibly reduce the litigative risk that might result from not having the regulatory basis for health and safety review of the application codified by regulation.
The principal cost will be the expenditure of NRC staff resources in codifying i
the requirements.
This constitutes the regulatory analysis for the direct final rule.
Regulatory Flexibilit" Certification In accordance with the Regulatory Flexibility Act, 5 U.S.C. 605(b),_the-Commission certifies that this rulemaking will not have a significant economic impact on a substantial number of small entities because it only addresses the Corporation or its successor.
The Corporation does not fall within the scope of the definition of "small entities" set forth in 10 CFR 2.810 or the Small Business Size Standards set out in regulations issued by the Small Business 1
Administration at 13 CFR Part 121.
16
o Small Business Regulatory Enforcement Act in accordance with the Small Business Regulatory Enforcement fairnes.,
Act of 1996, the NRC has determined that this action is not a major rule and has verified this determination with the Office of Information and Regulatory Affairs of OMB.
Backfit Analysis The NRC has determined that the backfit rules,10 CFR 50.109 and 76.76, do not apply to this rule.
Thus, a backfit analysis is not required for these amendments because they do not involve any provisions that would impose backfits as defined in il 50.109(a)(1) and 76.76(a)(1).
List of Subjects 10 CFR Part 2 Administrative practice and procedure, Antitrust, Byproduct material, Classified information, Environmental protection, Nuclear materials, Nuclear power plants and reactors, Penalties, Sex discrimination, Source material, Special nuclear material, Waste treatment and disposal.
10 CFR Part 40 Criminal penalties, Government contracts, Hazardous materials transportation, Nuclear materials, Reporting and record keeping requirements, Source material, Uranium.
17
10 CFR Part 70 Criminal penalties. Hazardous materials transportation, Material control and accounting Nuclear materials. Packaging and containers, Radiation protection, Reporting and record keeping requirements, Scientific equipment, Security measures Special nuclear material.
10 CFR Part 76 Certification, Criminal penalties, Radiation protection, Reporting and record keeping requirements, Security measures, Spec al nuclear material, Uranium enrichment by gaseous diffusion.
For the reasons set forth in the preamble and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; and 5 U.S.C. 552 and 553; the Commission is adopting the following amendments to 10 CFR Parts 2, 40, 70, and 76.
PART 2 -- RULES OF PRACTICE FOR DOMESTIC LifENSING PROCEEDINGS AND ISSUANCE OF ORDERS 1.
The authority citation for Part 2 is revised to read as follows:
l AUTHORITY:
Secs. 161, 181, 68 Stat. 948, 953, as amended (42 U.S.C.
2201, 2231); sec. 191, as amended, Pub. L.87-615, 76 Stat. 409 (42 U.S.C.
2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841); 5 U.S C. 552.
Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 105, 68 l
l Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42 U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); sec, ll4(f), Pub. L.97-425, 96 Stat. 2213, as 18
)
o 4
amended (42 U.S.C. 10134(f)); sec. 102, Pub. L.91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 88 Stat. 1248 (42 U.S.C. 5871).
Sections i
l l
2.102, 2.103, 2.104, 2.105, 2.721 also issued under sets. 102, 103, 104, 105, l
183, 189, 68 Stat. 936, 937, 938, 954, 9SS, as amended (42 U.S.C. 2132, 2133, 2134,2135,2233,2239).
Section 2.105 also issued under Pub. L.97-415, 96 l
Stat. 2073 (42 U.S.C. 2239).
Sections 2.200-2.206 also issued under secs.
{
161b, I, o, 182, 186, 234. 68 Stat. 948-951, 955, 83 Stat. 444, as amended ~by l
Pub 7 L.L104-134/ 110;Stati:1321-349;;as amended (42 U.S.C. 2201 (b), (1),-(o),
l 2236,2282);-sec.206,:88 Stat 1246(42U.S.C.5846).
Sections 2.600-2.606 2
also issued under sec. 102, Pub. L.91-190, 83 Stat. 853, as amended (42 U.S.C. 4332).
Sections 2.700a, 2.719 also issued under 5 U.S.C. 554. Sections j
2 2.754, 2.760, 2.770, 2.780 also issued under 5 U.S.C. 557.
Section 2.764 and Table 1A of Appendix C also issued under secs. 135, 141, Pub. L.97-425, 96 i
Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 2.790 also issued under sec. 103, 68 Stat. 936, as amended (42 U.S.C. 2133) and 5 U.S.C, 552.
Sections 2.800 and 2.808-also issued under 5 U.S.C. 553.
Section 2.809 also issued under 5 U.S.C. 553 and sec. 29 Pub.-L.85-255, 71 Stat. 579, as amended (42 U.S.C. 2039).
Subpart K also issued under sec.189, 68 Stat. 955 (42 U.S.C. 2239); sec. 134, Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154).
Subpart L also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239). Appendix A also issued under sec. 6, Pub. L.91-560, 84 Stat. 1473 (42 U.S.C. 2135).
Appendix 8 also issued under sec. 10, Pub. L.99-240,-99 Stat. 1842 (42 U.S.C.
2021b et seq.).
19
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,.v,m,....,---,
,.,..,,n,.---.n-
,,-,,.,,r_-,,,-nn.-n,n-n,--w,,-,
~nn..,.,,,nr.-
0 2.
In i 2.200, paragraph (a) is revised to read as follow::
1 2.200 Scope of subpart.
(a)
This subpart prescribes the procedures in cases initiated by the staff, or upon a request by any person, to impose requirements by order, or to modify, suspend, or revoke a license, or to take other action as may be proper, against any person subject to the jurisdiction of the Commission.
However,1with1 regard _to the; holder of a Part;76 Certificatefof Compliance'or Compliance' Plan, the applicable procedures are set' forth;in 176.70; 3.
In i 2.205, paragraph (a) is revised to read as follows:
1 2.205 Civil penalties.
(a)- Before instituting any proceeding to impose a civil penalty under section 234 of the Act, the Deputy Executive Director for Nuclear Materials Safety, Safeguards, and Operations Support, or the Director's designee, as appropriate, shall-serve a written notice of violation upon the person charged. This notice may be included in a notice issued pursuant to 12.201 or 67.6.70(d).
The notice of violation sna11 specify the date or dates, facts, and the nature of the alleged act or omission with which the person is charged, and shall identify specifically the particular provision or provisions of the law, rule, regulation, license, permit,; Part]61 certificate of; compliance orJecapliance pitfi, or cease and des'st order involved in the (1 hged violation and must state the amount of each proposed penalty.
(he 20
notice of violation shall aho advne the person charged.that the civil penalty may be paid in the amount spech'ied therein, or the proposed imposition of the civil penalty may be protested in its entirety or in part, by a written answer, either denying the violation or showing extenuating circumstances.
The notice of violation shall advise the person charged that l
l upon failure to pay a civil penalty subsequently determined by the Commission,
)
l if any, unless compromised, remitted, or mitigated, be collected by civil action, pursuant to section 234c of the Act.
PART 40 -- DOMESTIC LICENSING 0F SOURCE MATERIAL 4.
The authority citation for Part 40 is revised to read as follows:
AUTHORITY:
Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11a(2), 83, 84, Pub
_L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092,-2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688 (42 U.S.C. 2021); secs.. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.
5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022); sec.193,104 Stat. 2835, asiame.nded tiylPubi; C l04-134.[110lStathl1321-349j(42U.S.C.2243).
Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C.'5851).
Section 40.31(g) also issued under-sec. 122, 68 Stat. 939 (42 U.S.C. 2152).
Section 40.46 also issued under sec.184, 68 Stat. 954, as 21 S
v
1.
s.
amended.(42 U.S.C.-2234).
Section 40.71 also issued under sec.187, 68 Stat.
d 955 (42 U.S.C. 2237).
l 5.
In i 40'.4, the' term " Corporation" is-added to read as follows:
-l l
540.4 Definitions.
i f
Corporatfo6meansitheUnited_. States-EnrichmentCorporation*(USEC) Eor its: successor,fa? Corporation that11s: authorized by;statutetto-lease the 2
t gaseous diffusion eiirichmenti plants in Paducah, Kentu'cky,- and PJketon, 0hio, m
fromthe}Depar.tmentlofEnergy, Lor lanyl person"authorJzeditoioperateloneorboth oftheigaseous. diffusion;p1' ants,or'other; facilities,; pursuant'toialplan1for the priv'atization;oflUSECithat;is! approved by the Presid4nt*inD ccordancelwi.th-Sections 3150Eandfl502.iof;the. Atomic:Energyi Act;of;1954,fasfamended.
~
l
.6..
A new i 40.38 is added to read as follows:
5j 40j 38;[Inol igib111 tyj 6ficerta l@ appl i cant s ?
M11 cense (mayinotibelissued]tojthelCorporation]f;lthelCossission l
detirminesthaty GDheDrWationti s 9wn6d MMontrolledj!aridominated T by?nslaliennia
~
foreign [corpsfationEoEalfoFeigsfgovernmentifor 22
m._
,v 4
J (b)iThe issuance of suchla license-would be inimical-to -
L
.(1)(TheTcommon; defense ~andsecurity:ofthe' United. States;or 1
l-(2):;The? maintenance"ofiaureliable-and-economicalldomestic< source of enrichmentTservices.
1 PART 70 -- DOMESTIC LICENSING 0F SPECIAL NUCLEAR MATERIAL i
1-
[
7.
The authority citation for Part 70 is-revised to read as follows:
AUTHORITY:- Secs, 51, 53, 161,'182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282, 2297f); secs. 201, as amended, 202, 204, 206, 88 Stat.
1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842,- 5845, 5846); sec. 193, 104 Stat. 2835Las) amended by?PubE lb l04-134,'c110 Stat;l113211349
_(42 U.S.C. 2243).
Sections 70.1 and 70.20a(b) also issued under secs, 135, 141, Pub. L.
'97 425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 70.7 also issued under Pub. L.95-601, sec. 10, 92-Stat. 2951 (42-U.S.C. 5851).
Section
'70.21(g) also issued under sec.122, 68 Stat. 939 (42 U.S.C. -2152).
Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 -(42 U.S.C.
2077).
Sections 70.36 and 70.44 also issued under sec.184, 68 Stat._954, as amended (42 U.S
- t. 2234).
Section 70.61 also issued under secs, 186, 187, 68 Stat.:955 (42 U.S;C. 2236, 2237).
Section 70.62 also issued under sec.108, 68 Stat. 939, as amended (42 U.S.C. 2138).
23
1 L
8.
- In i 70.1, A new paragraph (e) is added to read as follows:
5 70.1 Purpose (e)/Aspopidediinithe'.{ Atomic (EnergyfAct;offl954jfa'sLamended[the regul,a.tionsl i n] thi sJ part ;est abl i shTrequi kemen t6f procedures gand [c ri teri a':; for the is'ssance'ofL licenses 3to nraniumlenrichment facilities.:
'9.
In 5 70.4, the term " Corporation" is added to read as follows:
570.4 Definitions.
4 Y
Corporat f onj me ansithe [Un_i ted '; St ates ; Enr i chmentiC6rporati onJ(USEC) '.[6r KCsuccessdrGajorporationthittistauthorikediby[ statute /to@asnthe gaseousidi ffusionj;WnriEhmentipl ants liniPadsfahsKentuckyR and [Piketo@i0hiof fomithe[DepartaantiofiEnergy,7orjany{perSonlabthorisdto[operatoloneglboth t
of3hefgssesus {di ffusJ on] pl antM orJothersfacil.i tiess pursuant ;to?alpl ah3f6r a
4 k
+h e
. Sect 16nsil5011andil502fof(the;Atamic;EnergyjAc{sff1954;;[asi;amendedj 24
\\
10.
A new I 70.40 is added to read as follows:
l 70,40
. ineligibility of certain applicants.
A license may_not be; issued to the Corporation-if the Commission determines that:-
(a) The Corporation?is owned, controlled...or' dominated by an alien, a foreign; corporation, lor;a Toreign government;1or (b);TheTissuancel0ff such a~ license would bsiinimical;tok (1)~ The commonidefense-land security'of the United States; or (2)LThe1 maintenance of a reliable and' economical domestic source'of enrichment services.
4 PART 76 -- CERTIFICATION OF GASE0US DIFFUSION PLANTS l-l 11.
The authority citation for Part 76 is revised to read as follows:
j-AUTHORITY:
Secs. 161, 68 Stat. 948, as amended, secs. 1312, 1701, as amended, 106 Stat. 2932, 2951, 2952, 2953,E110 Stat. 1321-349; (42 U.S.C.
2201, 2297b-11, 2297f); secs. 201, as amended, 204, 206, 88 Stat.'1244, 1245, 1246(42U.S.C.5841,5842,5845,5846);lsec.234(a),83StatL444das: amended b) Pub; N L104-134f l10iStath 11321F3.49 (42(U.S;C.[2243(a))1 Sec. 76.7 also issued under Pub. L.95-601, sec.10, 92 Stat. 2951 (42 U.S.C.5851).Sec[76222?isjalso).issuedunder;sec@93(f)fasjamended,i104 Stat /283S[asiamendedbyePub;LLJ104s134,jl10;Statq1132G349f(42jUiS.C; i
2243(f))fSec. 76.35(j) also issued under sec.122, 68 Stat. 939 (42 U.S.C.
2152).
25
12.
In i 76.4, the term " Corporation" is amended to read as follows and the term " Uranium enrichment plant" is removed:
)
5 76.4 Definitions, i
Corporation means the United States Enrichment Corporation (USEC),,or its' successor, a Corporation that is authorized by statute to lease the gaseous diffusion enrichment plants in Paducah, Kentucky, and Piketon, Ohio, trom the Department of Energy, or any person authorized to operate one or both of the gaseous diffusion plants, or other facilities, pursuant to a plan for the privatization of USEC that is approved by the President in accordance with Sections 1501 and 1502 of the Atomic Energy Act of 1954, as amended.
Ur:nic: crrich=cnt p!:nt mean;;
(1) f r plant used for separating the icetepe: 00-ur-anium er enriching wranium in the iretepe 235, using gatecus diffusier technelegy; er f3) fny equipment er device, Or imperte-t ccmpenent part c pecially designed fer such equipment er device, capable Of Ocparating the icetcpc cf uranium er enriching uranium the icetcpc 225, using gatecut diffusien 4-technelegy.
26
13 In 5 76.10, paragraph (b) is revised to read as follows:
5 76.10 Deliberate misconduct.
I (b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to' enforcement action in accordance with the procedures in 10 CFR part 2, subpart B; except, that the Cerper:tien i: net subject te the l
authority ef-Section 234 ef the Act.
14.-
In 5 76.21, paragraph (b) is revised to read as follows:
576.21 Certificate required.
(b)~ For the purposes of 55 30.41, 40.51, and 70.42 of this chapter, the Corporation shall be authorized to receive, and licensees shall be authorized to transfer to the Corporation, byproduct material, source material, or special nuclear material to the extent permitted under the certificate of complianca issued, and/or the. compliance plan approved, pursuant-to this part.
27
15.
A new I 76.22 is added to read as follows:
ll76.22 Inoligibility of certain applicants.
A certificate of compliance may not be ' issued to the Corporation if the Commission determines that:
(a);;The Corporation?is-owned - controlled,ior dominated by anf all.:.', a 4
foreign : corporation, Lolr : a foreign; government;. 'or (b)lThe51ssuance~of suchia~ certificate of compliance would be inimital to-(1)cThe comon defense and security of the United States; or_
(2) The maintenance of a. reliable = and economical domestic' source of enrichment services.
16.
Section 76.31 is revised to read as follows:
5 76.31 Annual Periodic application requirement.
The; Corporation; shall;. periodically apply'.to thelCommission ?for a certificate;of compliance,11n accordance with $176.36,f on'or before April 15
'ofj th~ej yearlspeci fied in 'an exi sting ; certi ficate of compl i ance1a's ? determined by the Commislsion',ibutinotfless frequently than everyj five yearsf The Ccrper:tten th:11 file an initial certificate application in-1995',
2nd thereafter, the Cerper:tien 05:1' apply te the Cc--ic:icn 0:ch year en er befer Apr" 15, for certi#icate cf compli:nce in accordance with 5 75.36.
TV!:tthlTfi'b;; fdb Y:Ortifid:tc"Of -iltid:b ~:::t~50 tedddshd 'nb "l:t:r' th:r'ST dth: :ftep th: #fedthe.d:te' 6f ^thi:"rele er:SY ^;-i' E@Ed$N 70EidhtDTI
~
^
28
~ 17.
In i 76.35, paragraph (n) is revised to read as follows:
5 76.35 Contents of initial application.
(n) A description of the funding orogram to be established to ensure that funds will be set aside and available for those aspects of the ultimate disposal of waste and depleted uranium, decontamination and decommissioning, relating to the gaseous diffusion plants leased to the Corporation by the Department of Energy, which are the financial responsibility of the Corporation.
The Corporation shall establish financial surety arrangements to ensure that sufficient funds will be available for the ultimate disposal of waste and depleted uranium, and decontamination and decommissioning. activities which are the financial responsibility of the Corporation.
The funding mechanism, such as prepayment, surety, insurance, or external sinking fund, must ensure availability of funds for any activities wh.ch are required to be completed both before or after the return of the gaseous diffusion facilities to the Department of Energy in accordance with the lease between the Department and the Corporation.
The funding program must contain a basis for cost estimates used to establish funding levels and must contain means of adjusting cost estimates and associated funding levels over the duration of the lease. The funding program need not address funding for those aspects of decontamination and decommissioning of the gaseous diffusion plants assigned e
to the Department of Energy under the Atomic Energy Act of 1954, as amended.
29
s The Corporation should address.the adequacy ofL he financing mechanism t
selected in'its :rnual application for certification.
18.
In i 76.36, the section heading paragraph (a) are revised to read as follows:
5-76.36 f :::1 Renewals.
(a) After issuance by the Commission of the initial certificate of compliance'and/or an approved compliance plan, the Corporation shall file period _.ic :n :nne:1 applications for renewal, as required by 5 76.31.
t 19.
- Section 76.43 is revised to read as follows
I 76.43 f ::1 Date for decision.
- The Director will-render a decision on an' application within 6 months of the receipt of the. application unless the Director alters the date for decision and publishes notice of the'new date in the Federal Register.
20.
In i 76.45, paragraph (a) is revised to read as.follows:
)
5 76.45
~ Application for amendment of certificate..
(a).
Contents of amendment application.
In addition to the :nne:1
' application for certification submitted pursuant to 5 76.31, the. Corporation may at any time apply for amendment of the certificate to cover proposed new l
30 l
l-
~
I or modified activities.
The amendment application should contain sufficient information for the Director to make findings of compliance or acceptability for the proposed activities as required for the original certificate.
21.
Section 76.55 is revised to read as follows:
1 5 76.55 Timely renewal.
In any case in which the Corporation has timely filed a sufficient annual application for a certificate of compliance, the existing certificate of compliance or approved compliance plan does not expire until the application for a certificate of compliance has been firally determined by the NRC.
For purposes of this rule, a sufficient application is one that addresses all elements of 5 76.36, 22.
In 5 76.60, paragraphs (c)(1), and (d)(1), are removed and reserved and paragraph (1) is revised to read as follows:
5 76.60 Regulatory requirements which apply.
31
=+
(1)
[ Reserved)
{c)'1) Civil penaltic:.:y not be inimsed en the Corporat4cn pursuant-to twi n
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(I) The Corporation shall _ comply with the applicable provisions of 10 CFR part 95, " Security-Facility Approval and Safeguarding of National Security'Information and Restricted Data," as specified in subpart E to this
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23.
In 5 76.66, paragraph
- is revised to read as follows:
I 76.66 Expiration and termination of certificates.
1 l
If the Corporation daes not submit an :nnu:1 renewal application under i 76.36, the Corporation shall, on or before the expiration date specified in the existing certificate, terminate operation of the gaseous diffusion plants.
24.
In's 76.o8, paragraph (b) is revised to read as follows:
5 76.68 Plant changes.
I (b)'To ensure-that the approved application remains current with' respect to the actual site description and that the plant's programs, plans, policies, and operations are in place, the-Corporation shall submit revised pages to the approved application and safety analysis report, marked and dated.to' indicate each change.
The Corporation shall evaluate any 'as-found conditions that do not agree with the plant's programs, plans, policies, 'and operations in accordance with paragraph (a) of this section.
These revisions must be submitted :nne:lly :: spect' icd 4-5 75.35 Of this parton orj;before?Appi1[15, 3
oficach]calendapl year [ or.at a shorter interval as may be-specified in the _
certificate.
Iff a / renewal lspplication(certifibateiiss filedlinfactordaru:e;;with 33
.:t l--76'.ib of this-part, the revisions shall! be incorporated into the
-application.
25.
In 5 76.72, paragraph (d)'is revised to read as follows:
~l 76.72 Miscellaneous procedural matters.
(d) The procedures set forth in 10 CFR 2.205, and in 10-CFR part-2, subpart G, will be applied in connection with NRC action to impose a civil penalty pursuant to Section' 234'off the, Atom 16 En'ergy'!Actiof 1954,jas amended,
- orJSection 206 of the Energy Reorganization Act of-1974 and the implementing f
- regulations in 10 CFR part 21:(Reporting of Defects and Noncompliance), as authorized by Section 1312(e). of the Atomic Energy-Act of 1954, as amended; 26.-
In i 76.76,- paragraph (a)(2) is revised to read as follows:
c
-5 76.76
-Backfitting.
- (a) 34-
'(2) Except as provided in paragraph (a)(4) of this section, the Commission shall require a systematic and documented analysis pursuant to-paragraph (eb) of this section for backfits which it seeks to impose.
L' l
27.
Section 76.111 is revised to read as follows:
5 76.111 Physical security, material control and accounting, and protection of certain information.
Nuclear Regulatory Commission regulations that will be used for certification of the Corporation
- for physical security and material control and accounting are contained in Title 10 of the Code of Federal Regulations as described in this subpart. The regulations referenced in this subpart contain requirements for physical security and material control and accounting for formula quantities of strategic special nuclear material -(Category I), special nuclear material of moderate strategic significance (Category II), and special nuclear material of low strategic significance (Category III), and for protection of Restricted Data, National Security Information, Safeguards Information, and information designated by the U.S. Department of Energy as uncontrelled c1:::ified Unclassified Controlled Nuclear Information.
l For 3he 'purposeTof dthi sisubpartEthej t erns" "l icensee" s or g l i cense" '
"usedJin? parts 170,1731;and.74Yofcthisichapter7~meanEres'pectively;.
the]C_orporat. ions LorEthe] cert i fi cate Lof; compl i ancej orf approvedf compliance; plan (
35
h 28.
In i 76.113, paragraph e is revised-to read as follows:
5 76.113 Formula quantities of strategic special nuclear material
- Category 1.,
l
-i The requirements for the protection of Safeguards Information periaining to formula quantity of strategic special nuclear material (Category I) are contained in i 73.21.
Information designated by the U.S. Department of Energy as uncontrclied classif4ed UnclassifiediControlled Nuclear Information must be protected at a level equivalent to that accorded Safeguards Information.
29.
Section 76.131 is revised to read as follows:
5 76.131 Violations.-
(a) The Commission may obtain an injunction or ether court order to provent a violation of,the provisions-of:
(1) The Atomic Energy Act of 1954, as amendad; (2) Title-11 of the Energy Reorganization Act of 1974, as amended;
. (3) Titic XI cf the Energy Pelicy Act cf IL?2, :: : ended; f4} A regulation or order issued pursuant to those Acts.
36 i
v.
y m.,
.,7
.-,-..y e
-(b) The Commission may obtain a court order for the payment of a civil penalty imposed under Section 234 of the Atomic Energy-Act of 1954, as amended, or under Section 131?(e) of the Atomic Energy Act of 1954, as-amended, and Section 206 of the Energy Reorganization Act of 1974, as amended, i
for violations of:; and for violation of Sect 4cn 205 of the4aeryj Peerg:niz tten Act Of 1974, :: :: ended.
(1)1,Sectionsi53,;5/n 62 K 63,:81[ 10111103,t;104,f107,(109ijorf170lXof thel. Atomic; Energy Actiofc1954[ asfamended; (2):;
Section:c206Tof the? Energy Reorganization'Act; (3)
-Any1 rule iregulation, Lor order 11ssued pursuant to-the sections
~
specified;in paragraph:(b)(1)(1)-of this'section; (4)
. Any term, condition, or limitation of any< certificate of l
compliance or' approved compliance.planLissued under the1 sections specified in-paragrapht (b)(1)(I)Lof. this(section.
Dated at Rockville, Maryland, this day of-
, 1996.
For the Nuclear Regulatory Commission.
John C. Hoyle, Secretary of the Commission.
37
__a a
e ATTACHMENT 5
[7590-01-P1 NUCLEAR REGULATORY COMMISSION 10 CFR Parts 2, 40, 70, and 76 l
RIN: 3150-AF56 USEC Privatization Act 1
l AGENCY: Nuclear Regulatory Commission.
ACTION:
Proposed rule.
SUMMARY
The Nuclear Regulatory Commission (NRC) is proposing to amand 'ts regulations concerning the-licensing of uranium enrichment facilities to conform to changes made to the Atomic Energy Act of 1954, as amended (the Act), by the USEC Privatization Act legislation. Although the principal effect of this legislation is-to direct the Board of Directors of the United States Enrichment Corporation (USEC) to sell the assets of the USEC to a private sector entity, this legislation also amended the Act with respect to NRC certification of gaseous diffusion plants leased by USEC and the licensing of atomic vapor laser isotope separation (AVLIS) technology. The Corporation is responsible for the operation of the two gaseous diffusion plants 'and the development of-the AVLIS technology.
The legislation: (1) requires that AVLIS uranium enrichment facilities be licensed subject to the provisions of the Act pertaining to source material and special nuclear material rather than under the provisions pertaining to a production facility; (2) provides for issuing civil penalties to USEC or its successor for failure to comply with regulatory requirements governing the safety of the operation of gaseous diffusion plants; (3) prohibits issuance of 1
a license / certificate to the Corporation or its successor if it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government or its issuance would be inimical to the common defense and security of the United States or to the maintenance of a reliable and economical domestic source of enrichment services; and (4) eliminates the requirement that the Commission certify that USEC or its successor is in compliance with NRC regulations each year.
The Commission can determine F w frequently USEC or its successor must submit a recertification application to the NRC, provided that the NRC recertify USEC's or its successor's compliance with its regulations not less frequently than avery five years.
The proposed changes to the regulations bring 10 CFR Parts 2, 40, 70, and 76 into conformance with the USEC Privatization Act.
DATE:
Comments on the proposed rule must be received on or before [ insert date 30 days after publication in the Federal Register).
ADDRESSES: Mail written comments to: The Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. ATTN: Docketing and Service Branch.
Hand deliver comments to:
11555 Rockville Pike, Rockville, MD, between 7:30 am and 4:15 pm on Federal workdays.
For information on submitting comments electronically, see the discussion under Electric Assess in the Supplementary Information Section.
Copies of comments received may be examined or copied for a fee, at the NRC Public Document Room, 2120 L Street NW. (Lower Level), Washington, DC.
2
FOR FURTHER INFORMATION CONTACT: Mr. C. W. Nilsen, Office of Nuclear Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC l
20555-0001, telephone (301) 415-6209.
SUPPLEMENTARY INFORMATION:
For additional infor~ation see the Direct Final Rule published in the rules section of this Federal Register, Procedural Background The NRC considers this action noncontroversial and routine because it j
implements specific statutory requirements (Public Law 104-134).
Therefor we are publishing this proposed rule concurrently as a Direct Final Rule in the final rule section of this Federal Register. The Direct final Rule will become effective on (insert 60 days after publication in the Federal Register).
However, if the NRC receives significant adverse commentsIby (30 days after publication in the Federal Register), the NRC will withdraw the Direct Final Rule and address the significant adverse comments received in response to the revisions. Any significant adverse comments teill be addressed in a subsea':ent final rule on this proposal. Absent significant modifications to the proposed revisions requiring republication, the NRC will not initiate a second comment period on this action.
3
0 Electronic Access Comments may be submitted electronically, in either ASCII text or Wordperfect format (version-5.1 or later), by calling the NRC Electronic Bulletin Board (BBS) on FedWorld..The bulletin board may be accessed using a personal computer, a modem, and one of the commonly available communications software packages, or directly via Internet.
Background documents on the rulemaking are also available, as practical, for downloading and viewing on the bulletin board.
If using a personal computer and modem, the NRC rulemaking subsystem on FedWorld can be accessed directly by dialing the toll free number (800) 303-9672.
Communication software parameters should be set as follows:
parity to none, data bits to 8, and stop bits to I (N,8,1). Using ANSI or VT-100 terminal emulation, the NRC rulemaking subsystem can then be accessed by selecting the " Rules Menu" option from the "NRC Main Menu." Users will find the "FedWorld Online User's Guides" particularly helpful. Many NRC subsystems and data bases also have a " Help /Information Center" option that is tailored to the particular subsystem.
The NRC subsystem on FedWorld can also be accessed by a direct dial phone number for the main FedWorld BBS, (703) 321-3339, or by using Telnet via Internet: fedworld. gov.
If using (703) 321-3339 to contact FedWorld, the NRC l
subsystem will be accessed from the main FedWorld menu by selecting the
" Regulatory, Government Administration and State Systems," then selecting
" Regulatory Information Mall." At that point, a menu will be displayed that has an option "U.S. Nuclear Regulatory Commission" that will take you to the NRC Online main menu. The NRC Online area also can be accessed directly by l
4 l
l l
1 i
typing "/go nrc" at a FedWo"ld command line, if you access NRC from FedWorld's main menu, you may return to FedWorld by selecting the " Return to FedWorld"' option'from the NRC Online Main Menu. However, if you access NRC at j
l-FedWorld by using NRC's-toll-free number, you will have full access to all NRC-i systems, but you will not have access to the main FedWorld system.
[
If.you contact FedWorld using Telnet, you will see the NRC area and.
menus. including the Rules Menu.
Although you will be able to downl. ad i
documents and leave messages, you will not be able to write comments or upload files (comments).
If you contact FedWorld using FTP, all files can be 1
accessed and downloaded but uploads _are not allowed; all you will see is a list of' files without descriptions (normal Gopher look).
An index file l
listing all files within a subdirectory, with descriptions, is available.
There is a 15-minute time limit for FTP access.
Although FedWorld also can be accessed through the World Wide Web, like FTP, that mode only provides access for downloading. files and does not display i
.the NRC Rules Menu.
For more information on NRC bulletin boards call Mr. Arthur Davis, Systems Integration and Development Branch,-NRC, Washington, DC 20555-0001, telephone.(301) 415-5780; e-mail AXD30nrc. gov.
l f
List of Subjects l
- Administrative practice and procedure, Antitrust, Byproduct material, l
Classified information, Environmental protection, Nuclear materials, Nuclear I
1 5
i
power plants and reactors, Penalties, Sex discrimination, Source material,
- 'Special nuclear material, Waste treatment and disposal.
Criminal penalties, Government contracts,. Hazardous materials 4
- transportation, Nuclear materials, Reporting and-record keeping requirements, Source material, Uranium.
10 CFR Part-70 Criminal penalties, Hazardous materials transportation, Material control and accounting, Nuclear material:, Pati. aging and containers, Radiation
- protection, Reporting and record keeping requirements, Scientific' equipment,
- Security measures, Special nuclear materfAl.
10 CFR-Part 76 Certification, Criminal penal' Lies, Radiation protection, Reporting and ~
record keeping requirements, Security measures, Special nuclear material,
- Uranium enrichment by gaseous diffusion.
For the reasons set forth in the. preamble and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974,-
as ame.nded; and 5 U.S.C. ~ 552 and 553; the Commission is adopting the following amendments to 10 CFR Parts 2, 40, 70, and 76.
6 s
e
-m u -
PART 2 -- RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND ISSUANCE OF ORDERS 1.
The authority citation for Part 2 is revised to read as follows:
AUTHORITY:
Secs, 161, 181, 68 Stat. 948, 953, as amended (42 U.S.C.
2201, 2231); sec. 191, as amended, Pub. L.87-615, 76 Stat. 409 (42 U.S.C.
2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841); 5 U.S.C. 552.
Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 105, 68 Stat. 930, 932, 933, 935, 936, 937, 938, as amended (42 U.S.C. 2073, 2092, l
2093, 2111, 2133, 2134, 2135); sec, ll4(f), Pub. L.97-425, 96 Stat. 2213, as 1
amended (4? U.S.C. 10134(f)); sec. 102, Pub. L. !I 190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 88 Stat. 1248 (42 U.S.C. 5871).
Sections 1
2.102, 2.103, 2.104, 2.105, 2.721 also issued under secs. 102, 103, 104, 105, 183, 189, 68 Stat. 936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2233, 2239).
Section 2.105 also issued under Pub. L.97-415, 96 Stat. 2073 (42 U.S.C. 2239).
Sections 2.200-2,206 also issued under secs.
161b, I, o, 182, 186, 234, 68 Stat. 948-951, 955, 83 Stat. 444, as amended by Pub 2 L.L104-134, 110 Stat. 1321-349,fas amended (42 U.S.C. 2201 (b), (I), (o),
2236, 2282); sec. 206, 88 Stat 1246 (42 U.S.C. 5846).
Sections 2.600-2.606 also issued under sec.102, Pub. L.91-190, 83 Stat. 853, as amended (42 U.S.C. 4332).
Sections 2.700a, 2.719 also issued under 5 U.S.C. 554. Sections 2.754, 2.760, 2.770, 2.780 also issued u 4er 5 'J.S.C. 557. Section 2.764 and Table 1A of Appendix C also issued undte secs. 135, 141, Pub. L. 0 L 425, 96 l
Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 2.790 also issued under l
sec. 103, 68 Stat. 936, as amended (42 U.S.C. 2133) and 5 U.S.C. 552.
)
1 Sections 2.800 and 2.808 also issued under 5 U.S.C. 553.
Section 2.809 also 7
i f
issued under 5 U.S.C. 553 and sec. 29, Pub. L.85-256, 71 Stat. 579, as amended (42 U.S.C. 2039)
Subpart K also-issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239);-sec. 134, Pub. L.97-425. 96 Stat. 2230 (42 U.S.C. 10154).
-Subpart L also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 2239).
Appendix A also issued under sec. 6, Pub. L.91-560, 84 Stat. 1473 (42 U.S.C. 2135).
Appendix B also issued under sec. 10, Pub. L.99-240, 99 Stat. 1842 (42 U.S.C.
L 2021b et seq.).
2.
In i 2.200, paragraph (a) is revised to read as follows:
l-5 2.200 Scope of subpart.
(a) This subpart prescribes the procedures in cases initiated by the 1
staff,aor upon a request by any person, to impose requirements by order, or tn modify, suspesid,- or revoke a license, or to take other action as may be proper,-against any person. subject to the jurisdiction of the Commission.
Howiever Ewith' ' ep rd;: t'o Lthe1 hol de r ; ofia: PartL 761Certi fi catel: oflComp,l i ance t or r
Cnpliance TPlan;;the%pplicable(procedures are set forthtinil76.702 i
+-
3.
In 6 2.205, paragraph (a)-is revised to read as follows:'
5:2.205 Civil penalties.
(a)' Before. Instituting any proceeding to impose a civil penalty under section 234 of the Act, the Deputy Executive Director for Nuclear Materials Safety, Safeguards, and Operations Support, or the Director's designee, as 8
w-appropriate, shall serve a written notice of violation-upon the person charged.
This notice may be included in a notice issued pursuant to 12.201 or 576'70(d).
The notice of violation shall specify the date or dates, facts, and the nature of the alleged act or omission with which the person is i
charged and shall identify specifically the particular provision or provisions-of the law, rule, regulation,- license, permit, Partt 76 ~ certificate offcomplianc'eTorl compliance:olan, or cease and desist order involved in the alleged violation and must state the amount of each proposed penalty. The notice of violation shall also advise the person charged that the civil penalty may be paid in the amount specified therein, or the proposed imposition of the civil penalty may be protested in its entirety or in-part, by a written answer, either denying the violation or showing extenuating circumstances.
The notice of violation shall advise' the person charged that upon failure to pay a civil penalty subsequently determined by the Commission, if any, unless compromised, remitted, or mitigated, be collected by civil
. action, pursuant to section 234c of the Act.
PART 40 -- DOMESTIC LICENSING 0F SOURCE MATERIAL
- 4. -
The authority citation for Part 40 is revised to stoa as follows:
AUTHORITY:
Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953,-954, 955, as amended, secs. 11e(2), 83, 84, Pub. L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, c
9
2236, 2282); sec. 274, Pub. L.86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as-amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.
5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022); sec. 193, 104 Stat. 2835, as amended by~ Pub.-L.
104-134, 11.0' Stat.(ll321-349/(42 U.S.C. 2243).
Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 l
(42 U.S.C. 5851).
Section 40.31(g) also issued under sec.122, 68 Stat. 93 (42 U.S.C. 2152).
Section 40.46 also issued under sec. 184, 68 Stat. 954, as l
l amended (42 U.S.C. 2234).
Section 40.71 also issued under :.ec.187, 68 Stat.
955 (42 U.S.C. 2237).
5.
In 5 40.4, the term " Corporation" is added to read as follows:
5 40.4 Definitions.
i Corporatfon)means)theUnitedStatesiEnrichmenticorporations(USEC)?or itsJsuccessor,faicorporationithatlis.:: authorized by* statute toileaselthe gaseoss'diffusionienrichmentiplantsiin Paducah,2 Kent'ucky, Var.djPiketon;ichiol from!the1DopartmenttofEnergy;-l:orLanyjersonJauthorizedttoloperatelonelorboth
'of;thelgaseossi:LdiffusionTplants;joNotherf facilitiesypursuantltof aTp1an?for the)rivatizationioLUSECfthattisLapproVed byjthelPresidentlinjhecordanceJwith Secti onsf l501T andj l502 [o fothe Atomici Energy; Act iof 1954 }l as;' amended!
10 4
1 6.
A new i 40.38 is added to read as follows:
1 40.38 Ineligibility of certain applicants.
A license may not be issued to the Corporation'if the Commission determines that:
(a).The Corporation is owned. controlled,'or dominated by;an alien, a foreign corporation, or a (oreign government;;or (b) The issuance of such a license would be" inimical;to-1 (1) The. common defense and security of the United States; or (2) The maintenance of a reliable.and economical domestic source of enrichment services.
PART 70 -- DOMEsitt LICENSING 0F SPECIAL NUCLEAR MATERIAL 7.
The authority citation for Part 70 is revised to read as follows:
AUTHORITY.
Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2232, 2297f); secs. 201, as amended, 202, 204, 206, 88 Stat.
1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5845); sec. 193, 104 Stat. 2835..as. amended by. Pub. L. 104-134,L110 Stat.611321-349 (42 U.S.C. 2243).
Sections 70.1 and 70.20a(b) also issued under secs. 135, 141, Pub. L.97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851).
Section 70.21(g) also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152).
Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C.
11 t
e 2077). Sections 70.36 and 70.44 also issued under sec.184, 68 Stat. 954, as amended (42 U.S.C. 2234).
Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 U.S.C. 2236, 2237).
Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).
8.
In i 70.1, A new paragraph (e) is aoded to read as follows:
i 70.1 Purpose (e) As provided.in the Atomic Energy Act of 1954, as amended; the regulations in this part establish requirements, procedures, and criteria for r
the issuance of licenses to uranium. enrichment facilities.
9.
In i 70.4, the term " Corporation" is added to read as follows:
I70.4 Definitions.
Corporatfonmoans-the'UnitediStatesEnrichmentiCorporation1(USEC);;or its successork a'. Corporation'.that;is:' authorized by; statute'.to 1 case the gaseoussdiffusion enrichment plan.tsf nL Paducah', Kentucky,:and Piketon,10hio, i
fromitheDepartmentTofEnergy;'or;anyl person;authortradto; operate'one;orboth 12
=
of the gaseous diffusion plants, or other facilities, pJrsuant to a plan for the privatization of USEC that is approved by the president in accordance with Sections 1501 and 1502 of the Atomic Energy Act of 1954, as amended, i
10.
A new I 70.40 is added to read as follows:
I 70.40 lIne11gibility of certain applicants.
A license may not' be issued to the Corporation if the Commission determines that:
I (a) The Corporation is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government; or (bt The. issuance of such a Itcense would be inimical to--
(1) The ' common defense and security of the United States; or -
(2) The maintenance of a reliable and economical domestic source' of enrichment' services.
PART 76 -- CERTIFICATION OF GASE0US OlFFUSION PLANTS 11.
The authority citation for Part 76 is revised to read as follows:
AUTHORITY:
Secs. 161, 68 Stat. 948, as amended, secs. 1312, 1701, as amended; 10G Stat. 2932, 2951, 2952, 2953,J110 Stat.'1321-349: (42 U.S.C.
2201, 2297b-ll, 2297f); secs, 201, as amended, 204, 206, 88 Stat. 1244, 1245, 1246(42U.S.C.5841,5842,5845,5846);isec.f234(a),83l Stat'.[44.4,(agamended by; Pub'. X 104v134ji110;$tatG1l_321-3.49((42.U.S.CL;2243(a)).
13 y
Sec. 76.7 also issued under Pub. L.95-601, sec. 10. 92 Stat. 2951 (42 U.S.C. 5851). Sec. 76.22 is also issued under sec. 193(f), as amended, 104 Stat. 2835, as amended by Pub. L. 104 134, 110 Stat. 11321-349 (42 U.S.C.
2243(f)) Sec. 76.35(j) also issued under sec. 122, 68 Stat. 939 (42 U.S.C.
'2152).
12.
In i 76.4, thn term " Corporation" is amended to read as follow; and the term " Uranium enrichment plant" is removed:
I 76.4 Definitions.
Corporation means the United States Enrichment Corporation (USEC),-or its successor, a Corporation that is authorized by statute to lease the gaseous diffusion enrichment plants in Paducah, Kentucky, and Piketon, Ohio, from the Department of Energy, or any perso, authorized to operate one or both of the gaseous diffusion plants, or other facilities, pursuant to a plan for the privatization of USEC that is approved by the President in accordance with Sections 1501 and 1502 of the Atomic Energy Act of 1954, as amended.
Ur:n!:= :.--!:,4=:nt p?:nt =c::::-
(!) ^ny pl:nt :: d fer ::p:r+44eg-the 1 tepe: ef ur:ntu: er enriching n the 1 tep: 235, e::ng g:::: : diffe:icn techn:1 gy; er-i ur:nie:
14
9 )-Any-equ 4 pmen t-or-devkeg r-imp o r tan t-<omposa t--pa rt-+ s peo4414y l
I des 4 ned-for-4uch-+quipment-er-dev4eer-c-apatde-of-separat4ns the-4sotopes-of l
9 uran 4um-or-enr4ch4ng-uranium-4 n-the-4+otope--N&r-us4ng-gaseouw44 f4urAon tec4+noh>9y, i
13.
In i 76.10, paragraph (b) Is revised to read as follows:
i 76.10 Deliberate misconduct.
)
(b) A person who violates paragraph (a)(1) or (a)(2) of this section may be subject to enforcement action in accordance with the procedures in 10 CFR part 2, subpart Bi-+xsepty-that-the-Corporat ion is not--sut>fect -to-- the author 44y-of-Sec44+n 23' of-the-Ac4.
14.
In i 76.21, paragraph (b) is revised to read as follows:
I76.21 Certificate reouired.
15
l (b) ror the purposes of li 30.41, 40.51, and 70.42 of this chapter, the Corporation shall be authorized to receive, and licensees shall be authorized to transfer to the Corporation, byproduct material, source material, or special nuclear material to the extent permitted under the certificate of compliance issued, and/or the compliance plan approved, pursuant to this part.
15.
A new I 76.22 is added to read as follows:
I"76.E2 Ineligibility of certain' applicants.
A certificate of; compliance may not be issued to the Corporation if the Commission determines that:
(a) The Corporation is owned, controlled, or dominated by an alien, a foreign' corporation, orLa foreign goverrment; or (b) The issuance of such a certificate of compliance would be: inimical to-(1). The common defense _ and -security of the United States;1 or -
(2) The maintenance of a reliable and economical domestic' source _of enrichment services.
1 16.
Section 76,31 is revis6d to read as follows:
576.31 Aunt Periodic' application requirement.
Thel Corporation: shall periodica11yfapp19; to the Commission for a certificate lbf; compliance", Jin?accordance Lwith' i 76;36,fon or:before1 April 15 cf thefyearfspecifiedlinjaniexisting certificateLof;compliancefas(determined by the;Cosmission;tbutLnotilass! frequently;than every fivefyears.'
16
i T he4e rpora t4 an-4 ha M-f44e-an-4n444al-ser44 f4 saie-a ppl4s4 t4on-4n-49 W,
and4hereaf4er,-4he-Corporat4on-shal4-apply to the Cemmtw4on-each-year-wsov
(* fore-Apr44-Mr-40r - cer4M4s4%e-efdompl440Ge-4R-ascordan00-W444M44r36.
17.
In i 76,35, paragraph (n) is revised to read as follows:
5 76.35
-Contents of initial application.
i (n) A description of the funding program to be established to ensure j
that funds will be set aside and available for those aspects of the ultimate disposal of waste and depleted uranium, decontamination and decommissioning, relating to the gaseous diffusion plants leased to the Corporation by the Department of Energy, which are the financial responsibility of the Corporation.
The Corporation shall establish financial surety arrangements to ensure that sufficient funds will be available for the ultimate disposal of waste and depleted uranium, and decontamination and decommissioning activities which are the financial responsibility of the Corporation.
The funding mechanism, such as prepayment, surety, insurance, or external sinking fund, must ensure avaiiability of funds for any activities which are required to be completed both before or after the return of the gaseous diffusion facilities to the Department of Energy-in accordance with the lease between the The initial filing fer : certific:te Of cerpit:nce =uct be tendered ne'1 ster th:n S menths :f4er the effective d:te cf this rule er by f.pril 15, 1995, whichever i: later.
17 T
1 Department and the Corporation.
The funding program must contain a basis for cost estimates used to establish funding levels and must contain means of adjusting cost estimates and associated funding levels over the duration of The funding program need not address funding for those aspects of the lease.
decontamination and decommissioning of the gaseous diffusion plants assigned to the Department of Energy under the Atomic Energy Act of 1954, as amended.
The Corporation should address the adequacy of the financing mechanism selected in its annual application for certification.
18.
In i 76.36, the section heading paragraph (a) are revised to read as follows:
i 76.36 Annua 4 Renewals.
(a) After issuance by the Commission of the initial certificate of compliance and/or an approved compliance plan, the Corporation shall file periodic-an-annual applications for renewal, as required by 5 76.31.
19.
Section 76.43 is revised to read as follows:
i 76.43 Annual-Date for decision.
The Director will render a decision on an application within 6 months of the receipt of the application unless the Director alters the date for decision and publishes notice of the new date in the Federal Register.
18
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u,,-rr, w
w tir rwwr-e ww-
- o o
i 1
20.
In i 76.45, paragraph (a) is revised to read as follows:
i 2
I 6 76.45 Application for amendment of certificate.
I e
l (a)
Contents of amendment application.
In addition to the annual f
application for-certification submitted pursuant to i 76.31 the Corporation-i may at any time apply for amendment of the certificate to cover proposed new i
3 or modified activities.
Tha amendment application should contain suf#icient l
information for the Director to make findings of compliance or acceptability for the proposed activities as required for the original certificate, i
i 21.
Section-76.55 is revised to read as follows:
3 l
676.55 Timely renewal.
In any case in which-the Corporation'has timely filed a sufficient p
annual application for a certificate of compliance, the existing certificate j-1 i
of compliance or approved compliance plan does not expire until the application for a certificate-of compliance has been finally determined by the i
NRC.
For_ purposes of this rule, a sufficient application is one that addresses all (!ements of i 76.36.
-22, in i 76.60, paragraphs- (c)(1), and (d)(1), are removed and l
reserved and paragraph (1) is revised to read as follows:
i j
l76.60 Regulatory requirements which apply.
19
..-. i..
0 e
(1)
(Reserved) fr-H4-)-44v11 penatt4es-may-not-be-imposed-on-4he-corporat4on-#ur4uant-to bl9r30=cf th4+-chapter-exsept-for-v4014440n&-of-Sest4en-206 ef-the-Energy Reor9an4nt4on-Aet, (d)
(1)
(Reserved]
{dH44 Civil penatt-te: may not-be-4eposed-on-the-corporat4en-pur4uant--to 6-24r2401-o f-4h twha pter-e x cep t-for-v4 ala t4 ens-o f-sest4en-1M-of--the-Energy Reor9an4nt4on-Ac4,
[
i i
(1) The Corporation shall comply with the applicable prov(sions of 10 CFR part 95, " Security facility Approval and Safeguarding of National Security Information and Restricted Data." as specified in subpart E to this l
part-previded, howeverr-that-c4444-penalt4e 05:11 net be i pc cd en the l
Corporat4en-purcuant-te 5 95,4bc4-th4+-cAapter-enept-for-v4elat4ons-of 1
Section 206 ef the Energy-Reorgan4at4sn-Ac4, l
23, in i 76.66, paragraph is revised to read as follows:
20
{
l 76.66 Expiration and termination of certificates.
If the Corporation does not submit an anant renewal application under L
i 76.36, the Corporation shall, on or before the expiration date specified in i
the existing certificate, terminate operation of the gaseous diffusin plants.
l l
24.
In i 76.68, paragraph (b) is revised to read as follows:
I 76.68 Plant changes.
(b) To ensure that the approved application remains current with respect to the actual site description and that the plant's programs, plans, policies, and operations are in place, the Corporation shall submit revised pages to the approved application and safety analysis report, marked and dated to indicate each change. The Corporation shall evaluate any as-found conditions that do not agree with the plant's programs, plans, policies, and operations in accordance with paragraph (a) of this section. These revisions must be submitted :ent:lly :: :pecified in 5 75.36 ef thi: p:rton ~opfbefore Aprilil5 of each! calendar [yeaFl or at a shorter interval as may be specified in the certificate.
IfJ a renewaliappl i. cation ' corti ficate ;i sifil ed ?in ' accord.ance T with 6176;36fofithisjart.jthe revisions sha111be incorporhted intolthe F
application".!
21
O e
4 4
25.
In i 76.72, paragraph (d) is revised to read as follows:
I 76.72 Miscellaneous procedural matters.
(d) The procedures set forth in 10 CFR 2.205, and in-10 CFR part 2, subpart G, will be applied in connection with NRC action to impose a civil penalty pursuant to Section'234' of the Atomic Energy: Act:of 1954, at amended, or Section 206 of the Energy Reorganization Act of 1974 and-the implementing regulations in 10 CFR part 21 (Reporting of Defects and Noncompliance), as authorized by Section 1312(e) of the Atomic Energy Act of 1954, as ; mended:
26.
In i 76.76, paragraph (a)(2) is revised to read as follows:
l_76.76 Backfitting.
(a)
(2) Except as provided in paragraph (a)(4) of this section, the Commission shall. require a systematic and documented analysis pursuant to paragraph (eb) of this section for backfits wl.ich it seeks to impose.
22
i l
27.
Section 76.111 is revised to read as follows:
1 5 76.111 Physical security, material control and accounting, and protection of certain information.
Nuclear Regulatory C'..rrnission regulations that will be used for certification of the Corporation' for physical security and material control and accounting are contained in Title 10 of the Code of Federal Regulations as l-described in this subpart.
The regulations referenced in this subpart contain requirements for physical security and material control and accounting for formula quantities of strategic special nuclear material (Category 1), special nuclear material of moderate strategic significance (Category 11), and special nuclear material of low strategic significance (Category 111), and for protection of Restricted Data, National Security Information, Safeguards Information, and-information designated by the U.S. Department of Energy as
=entrelled cMstf4ed Unclassified Controlled Nuclear Information.
28.
In i 76.113, paragraph is revised-to read as follows:
5 76.113 Formula quantities of strategic special nuclear material
- Category 1.
,,~.,"?For'thipurpose'nfothis'subpartItheterms"" licensee?ori" license" used ! in) parts? 70, s 73 F and 74 of ;thi s: chapter,~ mean; f respectively,'
the; Corporation, or the: certificate of; comp 1ia'nce or;approvedi t
compliance plant 23
~
C The requirements for the protection of Safeguards Information pertaining to formula quantity of strategic special nuclear material (Category 1) are contained in i 73.21.
Information designated by the U.S.
Department of Energy as uncetromd-c4anM4ed Unclassified Controlled Nuclear information must be p otected at a level equivalent to that accorded Safeguards luformation.
29.
Section 76.131 is revised to read as follows:
i 76.131 Violations.
(a) The Commission may obtain an injunction or other court order to prevent a violation of the provisions of:
(1) The Atomic Energy Act of 1954, as amended; (2) Title 11 of the Energy Reorganization Act of 1974, as amended; (3) T4t4 ". Of the Energy-PoMoy-Act-of-4993r-as-emendedt
{4) A regulation or order issued pursuant to those Acts.
(b) The Commission may obtain a court order for the payment of a civil penalty imposed under Section' 234 of the Atomic Energy Act of.1954,;as.
amended, or._underlSection 1312(e) of tha Atomic Energy Act of 1954, as amended, and Section 206 of the Energy Reorganization Act of 1974, as amended, 24 l
l.
for yi01atiuns of:4--and-fora-v4ohtion-of-Sec44n-?%-oM he-Inergy Reorgan4 a t4 on-Ac4-o M474v-a wmended, (1)
Sections $3, 57,~62, 63, 81,-101,-103, 104, 101, 109, or 1701 of the Atomic Energy Act of 1954cas arwnded; (2)
Section 206 of._the Enorgy Reorgani2ation Act; (3); lAny' rule, regulation,,or order issued pursuant to'_the sections i
specifiedilitlparagraphj(b)(1)(I) oGt_hisjsection; I
(4),!Any.'.termJcondition;(orl11mitatianoffanycertificateof t
compliance'oVapproved compliince planJissued;under the sections specified In" paragraph.(b)(1)(1) 'of this section.
Dated at Rockville, Maryland, this _ _ day of 1996.
For the Nuclear Regulatory Commission.
33hn C. Hoyle, Secretary of the Commission.
25
- __m_,
e ATTACHMENT 6 F
+
(7590-01-P]
NUCLEAR REGULATORY COMMISSION
[NUREG-1600)
Amendment of the NRC Enforcement Policy AGENCY:
Nuclear Regulatory Comission.
ACTION:
Policy Statement: Amendment.
SUMMARY
The Nuclear Regulatory Commission (NRC) is amending its General Statement of Policy and Procedure for Enforcement Actions (Enforcement Policy) to modify Supplement VI, " Fuel Cycle and Materials Operations." This amendment is warranted to reflect experier.ce gained through fuel cycle enforcement actions and as a result of the Commission's recently assigned responsibility for jurisdiction over the Gaseous Diffusion Plants.
By a separate action published in this issue in the Federal Register, the Comission has issued a final rule amending 10 CFR Part 76.
The revision to the Enforcement Policy reflects those amendments.
DATES:
This amendment is effective on [Date cf Publication in the federal Register). Coments are due on or before (30 days after publication in the Federal Register].
ADDRESSES:
Send written coments to: The Secretary of the Comission, U.S.
Nuclear Regulatory Comission, Washington, DC 20555. ATTN: Docketing and Service Branch. Hand deliver coments to:
11555 Rockville Pike, Rockville, r wea
i Maryland, between 7:45 am and 4: 15 pm, Federal workdays.
Copies of comments i
receiveo may be examined at the NRC Public Document Room, 2120 L Street, NW.
l (LowerLevel), Washington,DC.
FOR FURTHER INFORMATION CONTACT: James Lieberman, Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555, (301) 415-2741.
SUPPLEMENTARY INFORMATION:
The Commission's Enforcement Policy was first issued on September 4, 1980.
Since that time, the Enforcement Policy has been revised M a number of occasions, most recently on October 18, 1996 (61 FR 54461).
The Enforcement Policy is published as NUREG-1600, General Statement of Policy and Procedure for NRC Enforcement Actions. As a result of experience gained through fuel cycle enforcement actions and amendments to 10 CFR Part 76 being published today as a final regulation, an amendment is warranted to the Enforcement Policy to provide guidance on categorizing potential violations of 10 CFR Part 76.
The amendment to the Enforcement Policy is being issued concurrently with the new rule.
l 1
The policy recognizes that _ violations have differing degrees of safety L
l significance.- As reflected _in-the severity levels, safety significance-includes actual safety consequence, potential safety consequence, and regulatory significance. Supplement VI, " Fuel Cycle and Materials 2
- w.- -.
.o Operations,"-is being amended to provide additional examples for categorizing the severity levels of violations.
The changes are:
l
-1.
Example A.5, which is being added to Supplement VI, is consistent l
with Supplement I guidance.
This example is applicable for the Gasenus Diffusion Plants (GDPs) as other fuel facilities do not have Technical Safety Requirements (TSRs).
Safety limits are those bounds within which the process variables must be maintained for adequate control of the operation and that must not be exceeded in order to protect the integrity of the physical system that is designed to_ guard against the uncontrolled release of radioactivity.
2.
Example A.6 _is being added to Supplement VI to emphasize that a-significant injury or loss of life due to a loss of control over licensed or certified activities, including-chemical-processes that are integral to the-licensed or certified activity, whether radioactive material is-released or not, is of very significant regulatory concern because an actual impact to the health and safety of the public, site employees and/or contractors, has--
occurred.from activities related to the processing of radioactive material.
Severity Level 11 1.
Example B.4 is being added to Supplement VI to emphasire that while less significant than Example A.3 in Supplement VI, the absence of all the criticality safety controls for a single anticipated or unanticipated nuclear 3
aWI
criticality scenario is of very significant regulatory concern when the availability of fissile material makes a nucinar criticality accident possible.
2.
Example 8.5 is being added to Supplement VI to underscore that events which do not involve actual significant injuries or loss of life, but reasonably could have had circumstances been different, are considered of vary significant regulatory concern.
Severity level Ill 1.
Example C.5 is being modified in Supplement VI so that it is consistent with Supplement IV guidance.
The NRC considers that a subs.antial potential for exposures, radiation levels, contamination levels, or releases (including releases of toxic material) caused by the failure to comply with NRC regulations or with procedures established to comply with license conditions to be a significant regulatory concern because it could have serious consequences to the public and licensee employees.
2.
Example C.12 is being added to Supplement Vi to emphasize that the failure of a certified facility to comply with a limiting condition for operation is considered a significant regulatory concern.
This example is similar to Supplement I guidance and has been selected for the GDPs as other fuel cycle facilities do not have TSRs.
4
0 Operations," is being amended to provide additional-examples for categorizing i
the severity levels of violations.
The changes are:
a l
1.
Example A.5, which is being added to Supplement VI, is consistent 4
with Supplement I guiu'ance.
This example is applicable for the Gaseous Diffusion Plants (GDPs) as other fuel facilities do not have Technical Safety Requirements (TSRs).
Safety limits are those bounds within which the process variables must be maintained for adequate control of the operation and that must not be exceeded in order to protect the integrity of the physicas system that ic designed to guard against the uncontrolled release of radioactivity.
)
2.
Example A.6 is being added to Supplement VI to emphasize that a significant injury or loss of life due to a loss of control over licensed or i
certified activities, including chemical processes that are integral to the licensed or certified activity, whether radioactive material is released or not, is of very significant regulatory concern because an actual impact to the health and safety of the public, site employees and/or contractors, has occurred from activities related to the processing of radioactive material.
3everity Level 11 1.
Example B.4 is being added to Supplement VI to emphastre that, while less significant than Example A.3 in Supplement VI, the absence of all-the criticality safety controls for a single anticipated or unanticipated nuclear 3
+ ~ - -
1 e.-,-
n..-.--
.e
=. - -e or.i.
-r.-
I criticality scenario is of very significant regulatory concern when the availability of fissile material makes a nuclear criticality accident possible.
- 2. -Example 8.5 is being added to Supplement VI to underscore that events which do not involve actual significant injuries or loss of life, but i
reasonably could have had-:ircumstances been different, are considered of very significant regulatory concern.
Severity Level 111 1.
Example C.5 is being modified in Supplement VI so that it is consistent with Supplement IV guidance.
The NRC considers that a substantial potential for exposures, radiation levels, contamination levels, or releases (including releases of toxic material) caused by the failure to comply with NRC regulations or with procedures established to comply with license conditions to be a significant regulatory concern because it could have serious consequences to the public and licensee employees.
2.
Example'C.12 is being added to Supplement VI to emphasize that the failure of a certified facility to comply with a limiting condition for operation is considered a significant regulatory concern. This example is similar to Supplement I guidance and has been selected for the GDPs as other
, fuel cycle facilit'.es do not have TSRs.
l i
I L
4 l
l:
., o a
i
-3.
Example C.13 is being added to Supplement VI to emphasize that the loss of defense-in-depth over licensed or certified activities is considered a
-significant regulatory concern.
This example is consistent with Supplement I
- guidance, j
4.
Example C.14, which is consistent with Supplement I guidance, is being added to Supplement Vt. This example is generally applicable to the fuel cycle facilities.
5.
Example C.15 is being added to Supplement VI.
This example, which is similar to Supplement I guidance for violations of 10 CFR 50.59,-is applicable to th9 GDPs.
6.
Example C.16 is being added to Supplement VI to emphasize that adequate control over vendors or contractors performing safety-related work or -
providing-safety-related-services-is of a significant regulatory concern.
This example amplifies the NRC's concern that all safety-related activities, whether performed by the certificate holder or by one of its contractors, be conducted in accordance with the requirements in the application, TSRs and certificates.
- 7. _ Example C.17, which is consistent with the Supplement I guidance, is being-added to Supplement VI.
This example points out that-equipment failures caused by inadequate or improper mairtenance that substantially complicates recovery-from a plant transient is of a significant regulatory concern.
5
8.
Example 0.18 is bei'ig added to Supplement IV.
This example indicates that the absence of all but one criticality safety control for a single anticipated or unanticipated nuclear criticality scenario is a significant regulatory concern when a critical mass of fissile material was present or reasonably available, such that a nuclear criticality accident was possible.
Examples D.5 through D.8 are being added to Supplement VI to stress that, while less significant than the above examples, such failures are more than a minor concern because, if left uncorrected, they could lead to a more serious concern.
Editorial Changes 1.
The word "or" is being deleted from the end of Example A.3.
2.
The period at the end of Example A.4 is being deleted and replaced with a semicolon.
3.
The word "or" is being deleted from the end of Example 8.2.
4.
The period at the end of Example 0.3 is being deleted and replaced with a semicolon.
6 i
1 1
5.
The word " protection" is being added after the word " radiation" in j
Example C.I.
r 6.
The word "or" is being deleted from the end of Example C.10.
7.
The perio'd at the end of Example C.ll is being deleted and replaced with a semicolon.
8._
The word "or" is being deleted from the end of Example 0.2.
9.
The word "or" is being deleted from the end of Example 0.3.
10.
The period at the end of Example 0.4 is being deleted and replaced with a semicolon.
\\
Paperwork Statement This policy statement does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995 (44 U.S.C.-3501 et seq.).
Existing requirements were approved by the Office of_ Management and Budget, approval numoer 3150-0136. The approved information collection requirements contained in this policy statement appear in Section Vll.C..
7
e.
o Public Protection Notification The NRC may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.
Small Business Regulatory Enforcement Fairness Act in accordance with the Small Business Regulatory Enforcement Fairness Act of 1996, the NRC has determined that this action is not o major rule and has verified this determination with the Office of Information and Regulatory Affairs of OMB.
Accordingly, Supplement VI, " Fuel Cycle and Materials Operations," of the NRC Enforcement Policy is amended as follows:
GENERAL STATEMENT OF POLICY AND PROCEDURE FOR NRC ENFORCEMENT ACTIONS SUPPLEMENT VI--FUEL CYCLE AND MATERIALS OPERATIONS This supplement provides examples of violations in each of the four severity levels as guidance in determining the appropriate severity level for violations in the area of fuel cycle, gaseous diffusion plants, and materials operations.
8
A.
Severity Level 1 - Violations involving for example:
3.
A nuclear criticality accident; 4.
A failure to follow the procedures of the quality management program, required by Sectior. 35.32, that results in a death or serious injury l-(e.g., substantial organ impairment) to a patient; 5.
A Safety Limit, as defined in 10 CFR 76.4, the Technical Safety Requirements, or the application being exceeded; or 6..
Significant injury or loss of life due to a loss of control over Itcensed or certified activities. Including chemical processes that are integral to the licensed or certified activity, whether radioactive material is released or not.
B.
Severity Level II - Violations involving for example:
2.
A system designed to prevent or mitigate a serious safety event being-inoperable; 3.
A substantial programmatic failure in the implementation of the quality management program required-by 10 CFR 35.32 that results'in a-misadministration; 4.
A failure to establish, implement, or maintain all criticality controls (or control systems) for a single nuclear criticality scenario when a 9
0
O r
critical mass of fissile material was present or reasonably available, such that a nuclear criticality accident was possible; or 5.
The potential for a significant injury or loss of life due to a loss of control over licensed or certified activities, including chemical processes that are integral to the certified activity, whether radioactive material is released or not (e.g., movement of liquid UF. cylinder by unapproved methods).
Sever /ty Level III - Violations involving for example:
1.
A failure to control access to licensed materials for radiation protection purposes as specified by NRC requirements; 5.
A substantial potential for exposures, radiation levels, contamination levels, or releases, including releases of toxic material caused by a: failure to comply with NRC regulations, from licensed or certified activities in excess of regulatory limits;
~ i
- 10..
A failure to receive required.NRC approval prior to the
. implementation of-a change in licensed activities that has radiological or programmatic significance, such as, a change in ownership; lack of an RSO or replacement of an RSO with an unqualified individual; a change in the location where licansed activities are being conducted, or where licensed material is being stored where the new facilities do not meet safety guidelines; or a 10
change in the quantity or type of radioactive material being processed or used that has radiological significance; 11.
A significant failure to meet decommissioning requirements including a tailure to notify the NRC as required by regulation or license condition, substantial failure to meet decommissioning standards, failure to conduct and/or complete deco missioning activities in accardance with regulation or licensa condition, or failure to meet required schedules witbaut adequate justificatior; 12.
A significant failure to comply with the Action Staten Technical St.fety Requirement Limiting Condition for Operation where one appropriate action was not taken w' thin the required time, such as:
(a) In 7.n autoclave, where a containment isolation valve is inoperable for a period in excess of that allowed by the action statement; or (b) Cranet or sther lifting devices engaged in the movement of cylinders having inoperable safety components, such as redundant braking systems, or other safety devices for a period in excess of that allowed by the action statement; 13.
A system designed to prevent or mitigate a serious safety event:
(a) Not being able to perform its intended function under certain conditions (e.g., safety system not operable unless utilities available, materials or components not according to specifications); or (b) Being degraded to the extent that a detailed evaluation would be required to determine its operability; 14.
Changes in parameters that cause unanticipated reductions in margins of safety; 11
- - -. s
.~
15.
A significant failure to meet the requirements of 10 CFR 76.68, including a failure such that a required certificate amendment was not sought; 16.
A failure of the certificate holder to conduct adequate oversight of vendors or contractors resulting in the use of products or services that are of defective or indeterminate quality and that have safety significance:
17.
Equipment failures caused by inadequate or improper maintenance that substantially complic'tes recovery from a plant transient; or 18.
A failure to establish, maintain, or implement all but one criticality control (or control systems) for a single nuclear crit'
- ty scena,'io when a critical mass of fissile material was present o: reasonably available, such that a nuclear criticality accident was possible.
D.
Severity level IV - Violations involving for example:
2.
Other violations that have more than minor safety or environmental significance; 3.
Failure to follow the quality management program, including procedures, whether or not a misadministration occurs, provided the failures 1
are isolated, do not demonstrate a programmatic weakness in the implementation of the QM program, and have limited consequences if a misadministration is involved; failure t. conduct the required program review; or failure to take corrective actions as required by Section 35.32:
4.
A failure to keep the records required by Sections 35.32 or 35.33; 4'
12
l-5.
A less'significant_failura to comply with the Action Statement for a Technical Safety: Requirement Limiting Condition for Operation where the j
appropriate action was not taken within the required time; 6.
A failure to meet the requirements of 10 CFR 76.68 that does not
. result 11 a Severity Level I,-II, or.III violation;-
l-7
-A failure to make a required Written Event Report, as required.by 10 CFR 76,120(d)(2); or 8.
A' failure to establish, implement, or maintain a criticality control (or control system) for a single nuclear _ criticality scenario when the amount of fissile material available was not, but could have been sufficient to result in a nuclear criticality.
Dated at Rockville, Maryland, this day of-1996.
For the Nuclear Regulatory Commission.
John C. Hoyle, Secretary of-the Commission.
13
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4 ATTACHMENT 7
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NRC REVISES REGULATIONS FOR URANIUM ENRICHMENT FACILITIES OPERATED BY USEC OR ITS SUCCESSOR The Nuclear Regulatory Commission is revising its regulations for uranium enrichment facilities operated by the United States Enrichment Corporation (USEC) to be consistent with provisions of the USEC Privatization Act.
The principal effect of the act, which was signed into law on April 26, is to require the government-owned USEC to sell its assets to a private company.
I The act also changes the way uranium enrichment facilities operated by l
USEC or its successor are to be cer tified and licensed by the NRC.
NRC has therefore changed its regulations to:
(1) Incorporate authority granted by the legislation to impose civil penalties on USEC or its successor if NRC safety requirements are violated.
(2) Specify that the Commission will not issue a certificate or license to a foreign-owned or dominated corporation, and will not issue a certificate or a license if it would be inimical to the common defense and security of the United States or the maintenance cf a reliable and economical domestic source of enrichment services.
(3) Revise the frequency with which the operator of the existing gaseous diffusion plants must apply to NRC for a certificate of compliance with NRC regulations.
Currently the operator aust apply for recertification annually.
The revisions ' cate that the. operator must apply for a new certificate of compliance before April 15 of the year specified by NRC, but at least every five years.
(4) Establish the licensing process for atomic vapor laser isotope
I separation enrichment facilities as a single-step process similar to the one used for nuclear materials licenses, rather than the two-step process used for nuclear power plants.
The revised regulations will be effective on (60 days after publication of a Federal Register notice on
), unless significant adverse comments are eceived by Interested persons may submit written comments to the Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 02555-0001, Attentien: Docketing and Service
- Branch, Comment: may also be submitted electronically, as described in the Federal Register notice.
2
I
. ~.,,
i ATTACHMENT 8
pn "so
.[
ft UNITED STMES
[
NUCLEAR REGULATORY COMMISSION
~$
=t WAtHINGTON, D.C. 205SOCCt 5
p Mr. Robert r. Murphy
~ General Counsel General Accounting Office Room 7175 441.G Street, NW Washington, DC-20548
Dear Mr. Murphy:
Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a direct final rule amending its regulations to conform the licensing (,f uranium enrichment facilities to changes made to the Atomic Energy Act of 1954, as amended (the Act) by Public Law 104-134.
Included within the legislation 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 priv6te sector entity. The private sector corporation that purchases the assets of the Corporation will be responsible for the operation of the two gaseous diffusion uranium enrichment plants, known as the Portsmouth Plat.t and the Paducah Plant, located at Piketon, Ohio, and Paducah, Kentucky, respectively,
.~and the development of the atomic vapor laser isotope separation (AVLIS) technology.
In addition, this legislation amended the Act with respect to the NRC licensing of enrichment usino AVLIS technology, and certification of the uranium enrichment operatwns at the two gaseous diffusion plants.
To implement these amendments to the Act, this final rule makes several conforming changes to 10 CFR Parts 2, 40, 70, and 76.
We have determined that this rule is not a " major rule" as defined in 5 U.S.C.
804(2). We-have confirmed this determination with the Office of Management and Budget.
Enclosed is a copy of the final rule, which is being transmitted to the Federal Register for publication. Neither a Regulatory Flexibility Certification nor a Regulatory Analysis has been prepared for this minor, nonsubstartive amendment which has no economic impact on NRC licensees or the public. This final rule is scheduled to become effective 60 days after publication in the Federal Register unless significant adverse connents are received.
In that case, the NRC will withdraw this action and address the significant adverse comments received before a final rule becomes effective.
Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs
Enclosure:
Final Rule
e te 4
it UNITEU STATES
[
j NUCLEAR REGULATORY COMMISSION WASHINGTON. D.C. 205M-0001
%.*** /
The Honorable Al Gore President of the United States Senate Washington, DC 20510
Dear Mr. President:
Pursuant to Subtitle E of the Smail Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a direct final rule amending its regulations to conform the licensing of uranium enrichment facilities to changes made to the Atomic Energy Act of 1954, as amended (the Act) by Public Law 104-134.
Included within the legislation is a subchapter entitled the "USEC Privatization Act,"
which among other tF %gs, directs the Board of Directors of the United Statos 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 twn gaseous diffusion uranium enrichment plants, known as the Portsmouth Plant and the Paducah Plant, located at Piketon, Ohio, and Paducah, Kentucky, respectively, and the development of the atomic vapor laser isotope separation (AVLIS) technology.
In addition, this legislation amended tbc Act with respect to the NRC licensing of enrichment using AVLIS technology, and certification of the uranium enrichment operations at the two gaseous diffusion plants. To implement these amendments to the Act, this final rule makes several conforming changes to 10 CFR Parts 2, 40, 70, and 76.
We have determined that this rule is not a " major rule" as defined in 5 U.S.C.
804(2). We have confirmed this determination with the Office of Management and Budget.
-Enclosed is a copy of the final rule, which is being transmitted to the Federal Register -for publication. Neither a Regulatory Flexibility Certification nor a Regulatory Analysis has been prepared for this minor, nonsubstantive amendment which has no economic impact on NRC licensees or the public. This-final rule is scheduled to become effective 60 days after publication in the Federal 'leaister unless significant adverse comments are received.
In that case, the NRC will withdraw this action and address the
- significant adverse comments received before a final rule becomes effective.
Sincerely, Dennis K. Ratht>un, Director Office of Congressional Affairs
Enclosure:
Final Rule 1
.y
- o fpQ 8ttog%,
5 UNITED STATES E YiW E
NUCLEAR REGULATORY COMMISSlON
($d I
WASHINGTON, D C. 20555 4001
%...../
Honorable Newt Gingrich Speaker of the United States House of Representatives Washington, DC 20515
Dear Mr. Speaker:
Pursuant to Subtitle E of the Small Business Regulatory Enforcement fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a direct final rule amending its regulations to conform the licensing of uranium enrichment facilities to changes made to the Atomic Energy Act of 1954, as amended (the Act) by Public Law 104-134.
Included within the legislation is a subchapter entitled t b "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 purchases the assets of the Corporation will be responsible for the operation of the two gaseous diffusion uranium enrichment plants, known as the Portsmouth Plant and the Paducah Plant, located at Piketon, Ohio, and Paducah, Kentucky, respectively, and the developrent of the atomic vapor laser isotope separation (AVLIS) technology.
In addition, this legislation amended the Act with respect to the NRC licensing of enrichment using AVLIS technology, and certification of the uranium enrichment operations at the two gaseous diffusion plants.
To implement these amendments to the Act, this final rule makes several confortting changes to 10 Cf3 Parts 2, 40, 70, and 76.
We have determined that this rule is not a " major rule" as defined in 5 U.S.C.
804(2). We have confirmed this determir.ation with the Office of Management and Budget.
Enclosed is a copy of the final rule, which is being transmitted to the Federal Register for publication. Neither a Regulatory Flexibility Certification nor a Regulatory Analysis has been prepared for this minor, nonsubstantive amendment which has no economic impact on NRC licensees or the public. This final rule is scheduled to become effective 60 days after publication in the Federal Register unless significant adverse comments are
- received, in that case, the NRC will withdraw this action and address the significant adverse comments received before a final rule becomes effective.
Sincerely, Dennis K. Rathbun, Director Office of Congressional Aff airs
Enclosure:
Final Rule l
l
e' O.,
g MCO UNITED STATES f
f
'j NUCLEAR REGULATORY COMMISSION c
WASHINGTON, D.C. 20555-0001
't9... * *,o The Honorable Lauch Faircloth, Chairman Subcommittee on Clean Air, Wetlands, Private Property and Nuclear Safety Committee on Environment and Public Works United States Senate Washington, DC 20510
Dear Mr. Chairman:
Enclosed for the information of the subcommittea is a copy of a final amendment to 10 CFR Parts 2, 40, 70, and 76 to be published in the Federal Reaister.
The Nuclear Regulatory Commission (NRC) is amending its regulations to conform the licensing of uranium enrichment facilities to changes made to the Atomic Energy Act of 1954, as amended (the Act) by Public Law 104-134.
Included within the legislation is a subchapter entitled the "USEC Privatization Act,"
which among other things, directs ttie Board of Directors of the United States Enrichment Corporation (UEEC) 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 uranium enrichment plants, known as the Portsmouth Plant and the Paducah Plant, located at Piketon, Ohio, and Paducah, Xentucky, respectively, and the development of the atomic vapor laser isotope senaration (AVLIS) technology.
In addition, this legislation amended the Act with respect to the NRC licensing of enrichment using AVLIS technology, and certification of the uranium enrichment operations at the two gaseous diffusior plants.
To implement these amendments to the Act, this direct final 5 ule c:akes several conforming changes to 10 CFR Parts 2, 40, 70, and 76.
Neither a Regulatory Flexibility Certification nor a Regulatory Analysis has been prepared for this minor, nonsubstantive amendment which has no economic impact on NRC licensees or the public.
This final rule is scheduled to become effective 60 daye af ter publication in the Federal Register unless significant adverse comments are received.
In that case, the NRC will withdraw this-action and address the significant adverse comments received before a final rule becomes effective.
Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs
Enclosure:
Final Rule cc:
Senator Bob Graham
,. e A %
O D "ICOg t
k UNITED STATES yej
,j NUCLEAR REGULATORY COMMISSION R
WASHINoToN, D.C. 2055M001 os,...../
The Honorable Dan Schaefer, Chairman Subcommittee on Energy and Power Committee on Commerce United States House of Representatives Washington, DC 20515
Dear Mr. Chairman:
Enclosed for the information of the subcommittee is a copy of a final amendment to 10 CFR Parts 2, 40, 70, and 76 to be published in the Federal Register.
The Nuclear Regulatory Commission (NRC) is amending its regulations to conform the licensing of uranium c.irichment facilities to changes made to the Atomic Energy Act of 1954, as amended (the Act) by Public Law 104-134.
Included within the legislation 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 tiie 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 uranium enrichment plants, known as the Portsmouth Plant and the Paducah Plant, located at Piketon, Ohio, and Paducah, Kentucky, respectively, and the developaient of the atomic vapor laser isotope separation (AVLIS) technology.
In addition, this legislation amended the Act with respect to the NRC licensing uf enrichment using AVLIS technology, and certification of the uranium enrichment operations at the two gaseous diffusion plants. To implement these amendments to the Act, this direct final rule makes several conforming changes to.10 CFR Parts 2, 40, 70, and 76.
Neither a Regulatory Flexibility Certification nor a Regulatory Analysis has been prepared for this minor, nonsubstantive amendment which has no economic impact on NRC licensees or the public.
This final rule is scheduled tc become effective 60 days after publication in the Federal Reaister unless significant adverse comment: are received.
In that case, the NRC will withdraw this action and address the significant adverse comments received before a final rule becomes effective.
Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs
Enclosure:
Final Rule cc:
Representative Frank Pallone 1
1
g fi,
e i
ATTACHMENT 9
.a B
^ QQ %
4 AGENCY:
Nuclear Reoulator/ Conmission TITLE OF ACTION:
USEC Privatization Act LEVO. 0F SIGNIFICANCE:
Not a. major rule UPCOMING ACTION:
Final' rule IDENTIFICATION NUMBER: 3150-AF56 ESTIMATED DATE OF ISSUANCE:
November 1996 STATUTORY 0R-JUDICIAL DEADLINE:
None DESCRIPTION OF ACTION:
This final rule-amends the Nuclear Regulatory Commission's regulations concerning'the-licensing of uranium enrichment-facilities to reflect changes made to.the Atomic Energy Act of 1954, as amended (the Act) by Public Law 104-134.
Included within the legislation 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-purchases the assets of the Corporation will be responsible for the-operation of the two gaseous-diffusion-f acilities,. known-as.the-Portsmouth Plant. and the,
'Paducah Plant, located at Piketon, Ohio, and Paducah, Kentucky, respectively, and the-development of the atomic vapor-laser; isotope separation (AVLIS)-
< technology.
In' addition, this legislation amended the-Act with respect to the NRC1 licensing of AVLIS enrichment and certification of the two gaseous-diffusion; uranium enrichment operations. This final rule makes several conforming changes to 10 CFR. Parts 2, 40, 70, and 76 to implement the 1 amendments to the Act.
A Regulatory Flexibility Certification has'not been prepared;for this ninor, nonsubstantive amendment which has no economic impact on-NRC licensees or the Lpublic. A Regulatory Analysis statement is contained in the final rule.
/
v
a' United States T
f rochment Corfwation q
2 Democracy Centear f/303 Rockledge Drive nethesda. MD 20f>17 Tel (3011 %4 32c0 Untilnl Sates Enrichinctil Corlmiration November 13,1996
/Y $b ~ L Mr. Charles W. Nilsen SERIAL: GDP 96-0195 US Nuclear Regulatory Commission Two White Flint North 11555 Rochille Pike
.L achille, MD 20852-2738 Paducah Gaseous Diffusion Plant (PGDP)
(
Portsmouth Gaseous Diffusion Plant (PORTS)
L Docket Nos. 70-7001 and 70-7002 Direct Final Rulemaking - Part 76 This letter is in response to the posting on PedWorld, the NRC's electronic culletin board, L
of the "Rulemaking Plan - USEC Privatization Act" for information and comment. The United States Enrichment Corporation (USEC) is pleased to provide proposed revisions to 10 CFR Parts 76,70 and 40 for the purposes ofimplementing the USEC Privatization Act signed into law by President Clinton on April 2.6,1996.
[
In addition to these revisions, we have also proposed language to Q 76.45 to clarify the agency's intention concerning Director's decisions on applications for amendments to the Certificate, This proposed clarification is consistent with the process followed by the agency concerning decisions on license amendment requests foi nuclear power plants. Finally, we have also proposed deleting certain sections which are immaterial now that the Director's decision on the initial certification has been issued.
We would be pleased to discuss these proposed revisions and respond to any questions.
Please contact me or Ms1 Lisamarie Jarriel at (301) 564-3247.
Sincerely, J t.,%b
/
j Robert L. Woolley Nuclear Regulatory Assurands and Policy Manager Enclosure g
I n
UNITED STATES ENRICHMENT CORPORATION Comments on-NRC's Rulemaking Plan - USEC Privatization Act Section #
Proposed Revision 10 CFR 76 4
{ 76.31 "The Corporation shall.. and therefore, the Corporation shall apply to the Commission eneh ygar ca c beforc Apri! 15 ' eri6dicallp/.as[dstermined by~the'LCommissi6n[liu{h6t less thad p
everyfyests, for ienewal'of a certificate of compliance in accordance with Q 76.36. Any bertificats of 66mpliance issusd by the,C6mmission shill specify)hs daic tipyhiclifthslhexi application;is';due."
{ 76.36
" 76.36 Annual renewals Renewalbfssrtifidates.
"(a) After issuance by the Commission of.. the Corporation shall periddinally file an ammal application for renewal,.
76.43
"{ 76.43 Annual-dDate for decision."
76.45
"(a) Contents ofamendment application. In addition to the annual an application for certiScarca isnepal'6fs"6ertificais submitted.
"(b) Director's decision. Upon receipt..the Director will, after appropriate review, issue a decision pursuant to subpart C of this partiexcept that Diisut6Ps decisions sh;applicationsfor
'amendnissis will be effectiviupon issusnedd Such decisions will besome final as prescribed in 76l62(c)'"" '
~
Q 76.55 "In any case in which the Corporation has timely filed a sullicient annual application for ienewal of a certificate.. does not expire until the application for a certiScate of compli=ce renewal has been finally determined.
' 76.60
"(a) The Corporation shall.
"(h) The;Corporati6n"shall not be ownid/conso) lid lbr dominated by ait klien/a f6teign corporationfor a foreign government}
"(c) Certificationfall not be inimical to the inaintenance of a reliable ind economiJdomestic
~~
l source ofenrichment services;
"(bd) The Corporation shall.
USEC Comments on Enclosure NRC's Rulemaking Plan USEC Privetintion Act Page 2 of 3 Secti:n #
Proposed Revision 10 CFR 76 (cont.)
Q 76.60 (cont.)
"(ee) The Corporation shall comply with the applicable provisions of 10 CFR part 19, " Notices, Instructions and Reports To Workers: Inspection and Investigations.," v.ith the fc!!cwing uvv. c. : _ _._
r u v u u v..a.
--(+) Civil pen-!: s may act be imposed on :he Corpom ica pursuant :c Sec.19.30 cf this C..u_ y_. _ _ _.... _.,.c_ _..: _ i. u_. : _ _ _u vua v. uw uv u.nr _ c. t.w_ r _ __._. o _ _ _.. _ _: _ _. : _ _ het-t
_ c c _ _. : _ _,
..w s y v.
..v vu v. u
_us.3y.wv.3-u. uuvu m -rt _ r L __ ___.!_ _ _t _11 _ _
U n. w' r. v___u7 1. __. L..u_._.. L..v J. _ _ c n t _u uw v.
russtv.awww.J.v..v...
J _ _:,. : _ _ _ _
t g4 y a us w v. yv. uuv.a suun yv ag 41
..vs.usw.
s
.... ! _ t. __ _ _. : c _ _.,_ _ c _ _.. _ t !
.u_ _ _ _ !._.: : _ t _1.._.._..c__ _ L,: _. 2.._.3 s u n y.i _ _ __ _ _ __ _ t..,.J.. :... L,_.. m.
..u
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"(df) The Corporation shall comply with the applicable provisions of 10 CFR part 20, " Standards For Protection Against Radiation," ve;;h :he fc!!cveing modifteations-(1) Civil penahics may act be imposed en the Corporatica pursuant :c Sec. 20.2101 af-this
.. t _ _. _ _ _.. _ _ _. c_ _..: _ i. u_. : _.
uv..a v. aw u v.
- 4. vv v.. t. _ r _,. _. _. o _... _ _ : _ _. u __c _ _..__,nt _c
..w
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(2) The Corpora:ica sha!! comply c.i:h the reqummen;; in this par: no la:cr :han :he date-ef the Direc:ct's decisica on :he ini:ial certiScate of compliance and/or as speciSed in an approved I
_ i.._. c_
_ u. u _..: _ _ _ _. _ i : _ _ _
y
...v.
... 3 v. n y...._
"(eg) The Corporation shall comply with the applicable provisions of 10 CFR part 21, " Reporting of Defects and Noncompliance:," unh :he fcllev.ing modiScaticas:-
(1) The Corpomtica sha!! comply..i:h the requirements in Sec; 21.6 and 21.21 not !ater than j
the date ef the Direc:cfs decisica on :he innia! certiSca e of comp!!ance and/cr an inhial p!m. for
_ e 2 _ _ _ _ _ _ t : _ _ _.,.
uw..iw v.ug vv...yuuuvw.
-(2) Under Sec. 21.31, p;ccurement cocuments issued by :he Corpora:ica afic it submhs the
- _ :. : _, _ _.x _... : _ _ c_. - _.. : c _ _. _ _ c _ _. _ i : - _ _._... _ _ _: n.. L.... L.s_ _i v v a u v u a v._..: _ : _,,
.s c i. n c r. u.,.. -
.inuu.
u svi unsuw v. svu yuunw ayw uy u nu y
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"(fh) The Corporation shall.
"(gi) The Corporation shall.
"(hj) The Corporation shall.
"(i_k) The Corporation shall comply with the applicable provisions of 10 CFR part 95, " Security Facility Approval and Safeguarding of National Security Information and Restricted Data," as specified in subpart 3 to this partj provided, hcvecyct, : hat c;vil penahics sha!! not be imposed on the Corpcm:ica pursuan::c Sec. 95 Si cf this chapter enecp: for vic'aticas of Section 206 cf the r_._.._. n.u_ov_.g.__:__.:__u.w.
w..w.gy
- u. u s.u u v a..
s.
76.66
"(c) If the Corpornion does not submit an annual a timely renewal application under Q 76.376.. "
i e
USEC Comments on Enclosure NRC's Rulemaking rian - USEC Privatization Act Page 3 of 3 1
Section #
Proposed Revision 10 CFR 76 (cont.)
76.72
"(d) The procedures set forth in 10 CFR 2.205, and in 10 CFR part 2, subpart G, will be applied in connection with NRC action to impose a civil penalty pursu=: :c See:ica 200 uf the Energy Recrganiza ica Act cf 1971 =d the implemen:ing regult:ic= in 10 CFR part 21 (Reporting cf Defcet and Ncacomp!!=cc), as authori:.ed by Sce:ica 1312(c) cf:he Atomic Encrgy Act of 1954, as amcaded,"
76.131
"(b) The Commission may obtain a court order for the payment of a civil penalty imposed under Section 1312(c) cf the A cmic Energy-Aet of 1954, = amended, and See:ica 206 cf the Energy Recrg=izatica Act of 1974, as =;caded, and for a vich:.cn of Sectica 205 cf the Enc:gy Recrg=izatica Act of 1974, as =;caded. 234 bf the%iomic EriergyfAsti i(1) Fofvioisi6ns6finf licensing or certificati6n provision.of:
L(i) Sections 53l:i7,16,L63[81; 82f101,103,104J107,L109, or 1701 ~of the At6miciEnergy'act 2
~
~ fjl95.4/as amendd, o
((ii) Section 206 of ths Energy Reorganisation Ac't;
((iii) Any rule,! regulation, or order issued p' rsuant to the sections specified in paragraph u
(b)(1)(i) of this sectioni l(iv) Anp term, condition, o'r limitation 6f any; license or[csdifidate issusd under the sections specifiedlin pangraph (b)(1)(i) of this section,
< j (2) For any violation _for1which a license may be revoked tmder sectionil86l6f tlk Atomic i
Energy Act'of1954, as aniended!
10 CFR PART 70 1
% 70.4
" Uranium enrichmentfacility means:
4 (1) Any facility used for separating the isotopes of uranium or enriching uranium in the isotope 235 including a facility using atchlis9pdr'laSeris6t6pelseparatibn tschnologp except.
10 CFR PART 40 l
% 40.4
" Uranium enrichmentfacility means' (1) Any facility used for separating the isotope-of uranium or enriching uranium in the isotope 235 includins a fadility,Using atomic vapor laser is'oidpe separation tbchn61ogy except.
i 4
i-
.,