ML20235S767

Forwards,For Signature,Fr Notice Amending 10CFR73, Physical Protection of Plants & Matls, to Simplify & Clarify Reporting Requirements for Safeguards Events Under 10CFR73.71.List of Conforming Amends Also Included

ML20235S767
Person / Time
Issue date:	05/15/1987
From:	Thompson H NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
Shared Package
ML19306B511	List: ML20235S701 ML20235S739 ML20235S767
References
FRN-50FR34708, RULE-PR-73 AB46-2-03, AB46-2-3, NUDOCS 8707210772
Download: ML20235S767 (82)

Text

{{#Wiki_filter:i [hllydf ? g. WC 'L-i Victor Stello, Jr. RY ! 51987 i MEMORANCUM FOR: Victor Stello, Jr. f Executive Director for Operations i FROM: Huch L. Thompson, Jr., Director Office of Nuclear Material Safety I and Safeguards

SUBJECT:

EFFECTIVE AMENDMENT TO 10 CFR 73.71, REPORTING REQUIREMENTS FOR SAFEGUARDS EVENTS Attached for your signature is a Federal Register Notice amending 10 CFP Part 73, Physical Protection of Plants and Materials, to simplify and clorify the report-ing requirements for safeguards events under 10 CFR 73.71. Conforming amendments are also included for 10 CFR 70.52, 72.52, 73.67 and 7a.11. Backaround: On August 6, 1985, the EDO signed a proposed rule to refine the reporting requirements for safeguards events. The purpose of this rule is to: clarify to licensees the safeguards events that must be reported, o o extend the period of time for submittal of licensee written reports, o assure standardized and sufficient report-making to assist NRC data evaluation, eliminate telephonic notification and written reporting deemed o unnecessary by the staff, and o assure a consistent and comparable level of reporting for safety and safeguards events. Comments: Twenty-six respondents commented on the proposed rule. The following issues were raised: I 1. Safeguards Event Log. Commenters indicated that the maintenance and submittal to the NRC of a stand-alone log containing those safeguards events not reported within one hour was unnecessary ar.d overburdensome. Further, commenters expressed the opinion that the regulatory language describing the events to be logged was too broad and would result in the logging of events of little consequence. In response to these comments, the staff has revised the regulatory language to more clearly define events to be logged. however, no change nas been made to the requirement to maintain and submit the stand-alone log. This is based on the facts that: (1) a stand-alone log for certain safeguards events.is already required to be maintained by licensees, (2) most events now reported within 24 hours need only be logged under the proposed regulation, hence, reducing the burden, and (3) improved capability to identify generic defects or precursors to events will be derived. 8707210772 870716 8 PDR PR 73 50FR34708 PDR , g t

I r ~ o Victor Stello, Jr. 2. Reporting of Unauthorized Interruption of Normal Operations at Power Reactors. i Respondents commented that the reporting of interruption of normal operations at power reactors is not a safeguards event and would be duplicative to Part 50 requirements. No revision has been made to the proposed rule in response to this comment. The inclusion of this requirement is necessary to align NRC policy on sabotage with that of the Federal Bureau of Investigation a u the Atomic Energy Act. Further, the proposed rule explicitly states that events reportable under Part 50 requirements need not be duplicated under Part 73 requirements. 3. Reporting of Unauthorized Entries Through Required Barriers. It was commented that the requirement to report within one hour all unauthorized entries through a required barrier was overburdensome and un. necessary, especially when the entry was accidental or involved procedural error. In response to this commente the staff has revised this provision to require one hour reporting of all actual entries by an unauthorized person into a protected area, material access area, controlled access area, vital area, or transport. All other events involving invclid or incorrect entry procedures are required to be logged. In addition, the term " unauthorized person" has been defined. 4. Major Miscellaneous Issues. Respondents requestod definitions for a number of terms; these have been provided in the rule's supporting statement and regulatory guide. An extension of the time period for one hour reporting was requested. This was not adopted because the staff believes that the nature of the events to be reported in this category merit one hour reporting. Schedulino/ Resources: The rule is effective four months from publication oate. Impact to licensees resulting from rule implementation is anticipated to yield a net annual reducticn in reporting burden of $9K per site. Impact to NRC is anticipated to yield a net annual rescurce increase equivalent to $140K (approximately 1 FTE). Resources have been budgeted beginr.ing FY88 to accommodate this increase. Committee Review: The Advisory Committee on Reactor Safeguards (ACRS) has been provided a ccpy of this final rule package for information purposes. The Committee to Review Generic Requirements (CRGRi has recommended approval of this regulation for publication. Notices: A ccpy of the Federal Register Notice of final rulemaking (Attachment

1) will be sent to all affected licensees and respondents who provided comment on the proposed rule. Supporting guidance for the rule (Attachment 2) will be i

forwarded to the Office of Nuclear Regulatory Research for publication. A l regulatory analysis (Attachment 3) will be placed in the Public Document Room and a public announcement will be forwarded to the Office of Public Affairs' for 0FC :56RT

SGRT

SGRT

5G

SG

NPS5 NAME :PDwyer:jr

JYardumian

GMcCorkle

ETenEyck

RBurnett

HThompson NTE 1/

/A7 1/ /A7 1/ /A7 1/./A7 1/. /A7. 1/ / A 7. + c

t 9 Victor Stello, Jr. issuance (Attachment 4). The appropriate Congressional Comittees will be notified (Attachment 5). A notice to the Comission that the EDO has signed this rule is attached for inclusion in the next Daily Staff Notes (Attachment 6). Coordination: This rulemaking was coor<iinated with cognizant Officer prior to the NRC reorganization. The Office of the General Counsel has reviewed this rule package and concurs and the Offices of Administration, Analysis and Evaluation of Operational Data, Inspection and Enforcement, and Nuclear Reactor Regulation concur in these amendments. The Office of Public Affairs concurs in the public announcement. (ggned) Hugh L nompson 4 Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards Attachments: 1. FRN Final Rulemaking 2. Revised R. G. 5.62 3. Regulatory Analysis 4. Public Announcement 5. Draft Congressional letter 6. Draft Daily Staff Notes Item u 7. FRN. Proposed Rulemaking (50 FR 347081 DISTRIBUTION NMSS r/f SGRT r/f SGRT s/f PDwyer JYardumian RBurnett RBernero HThompson PNorry VParler CHeltemes JTaylor HDenton LJBaynard 0FC: ADM

ftf;C

AEOD

IE

NRR j

NAME:PNorry

VParler :CHeltemes:JTaylor :HDentpn :

/ /g DATE: WJ/8h : /h b 3[bfYk: k: [ // / OFFFCIAL RECORD COPY

• See crevious concurrence OFC :5GRT *

5GRT

5GRT *

SG *

SG *

hM55

NMSS *

...:...__......:...._____..:.......... _:...........:............:. hmcC....: NAME :PDwyer:jr

ilYardumian :GMcCorkle

ETenEyck

RBurnett

PT. pson

RBernero*

ATTACHMENT 1 FRN Final Rulemaking ____-__m-_-----

Approved for Publication The Commission has delegated to the EDO (10 CFR 1.40(c) and (d)) the authority to develop and promulgate rules as defined in the APA (5 U.S.C. 551(4)) subject to the limitations in NRC Manual Chapter 0102, Organiza-tion ar,d Functions, Office of the Executive ~ 0irector for Operations, paragraphs 0213, 038, 039, and 0310. The enclosed rule, entitled " Reporting Requirements for Safeguards Events" will amend 10 CFR Part 73 to simplify and clarify existing requirements for the reporting of safeguards events. Conforming amendments are also included for 10 CFR Parts 70, 72, and 74. This final rule does not constitute a significant question of policy, nor does it amend regulations contained in 10 CFR Parts 7, 8 or 9 Subpart C concerning matters of policy. I therefore find that this rule is within the scope of my rulemaking authority and am proceeding to issue it. Date Victor Stello, Jr. Executive Director for Operations 4 o

[7590-01] 1 NUCLEAR REGULATORY COMMISSION 10 CFR Parts 70, 72, 73, and 74 Changes to Safeguards Reporting Requirements AGENCY: Nuclear Regulatory Commission. ACTION: Final rule.

SUMMARY

The Nuclear iegulatory Commission (NRC) is amending its regula-ti,ons for the reporting of safeguards events. These amendments clarify the reporting requirements for NRC licensees and will improve the NRC safeguaros event data base by requiring more uniform safeguards event reports. Licensees who are affected include power and non power reac-tors, fuel cycle facilities, and transporters, importers, and exporters of special nuclear material. The NRC uses the reportea information to assure safety during safeguards-related emergencies and to identify and characterize generic and facility specific precursors that can be utilized to preempt duplicative or similar events in the future. The benefits derived from this action are the elimination of unnecessary reports with-out degradation to safeguards, the extension of the period for written report submittals and an improved data analysis system to provide industry feedback for improving safeguards systems. EFFECTIVE DATE: (Insert 120 days after publicat' ion in the Federal Register) 1

N [7590-01] FGR FURTHER INFORMATION CONTACT: 'Loren Bush,.0ffice of Nuclear' Reactor Regulation, o'r Priscilla A. Dwyer, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory. Commission,. Washington, 'OC 20555, Telephone-(301)492-8080, or (301)427-4773, respectively. SUPPLEMENTARY INFORMATION:

===. Background=== 110 CFR 73.71 establishes an event reporting program to inform' the Commission of safeguards eventsEto permit timely and appropriate response to incidents. Safeguards events include actual or attempted theft of special nuclear material (SNM); actual or attempted acts or events which interrupt normal operations at power reactors due to unauthorized use of or tampering with machinery, components, or controls; certain threats I made against facilities possessing SNM; and safeguards system failures impacting the. effectiveness of the system. The data from this reporting l program further allows the Commission to identify and characterize generic and facility specific precursors to safoguards events. Since the_ issuance of 10 CFR 73.71 (47 FR 11511), the NRC staff has found that the require-ments are frequently misinterpreted, that written follow-up reports sub-mitted pursuant to the regulation lack uniformity, and that within these recorts insufficient data is reported for. NRC analysis. For these reasons, on August 27, 1985,. the NRC published proposed amendments in the Federal Register (50 FR 34708) to clarify and simplify the requirements of 10 CFR 73.71; conforming amendments to 10 CFR 70.52,' 72.52,.73.67, and 74.71 were also proposed at that time. The comment ~ l period which was to have ended on November 27, 1985-was extended to December 31, 1985 to permit sufficient time for review of companion guidance issued after the proposed rule publication. 2' _gc _= =-

1 j i 1 - '.4 + [7590-01] Summary of Public Comment Comments were received from twenty-six respondents comprised.of. power reactor licensees, one fuel processing. licensee,.three industry groupsL I and one private citizen. Copies of comment letters are available~ for - public. inspection and, copying for a fee at the' NRC Public Document Room 1 i t at 1717 H. Street NW., Washington, DC. The proposed amendments have been modified in response to comments received, as appropriate,'and are being published in final form, to become j l effective 120 days after publication of this notice. A summary of the 1 public comments, along with their resolution. follows. The comments have been placed in the following~ categories: 1. Safeguards Log 2. Reporting of Interruption of-Normal Operations at Power Reactors 3. Reporting of Unauthorized Entry Through Required Barrier 4. Administrative Issues 5. Clarifications Needed L 6. Miscellaneous Issues 1. Safeguards Log. The majority of respondents commented on some ~ i aspect of the safeguards log. These comments'have been divided into the following issues that the respondents raised: f a. Items to be Logged j i b. Maintenance and Submittal of Stand-Alone Log i Additional Discussion of Burden Imposed.by. Log c. -{ s 3 m a p g ______o_

~ 1 [7590-01] (a) Items to be Logged. Respondents indicated that the provision 1 to' log any other failure of a safeguards system "...not included in para-I i graph II(a)...if the failure degrades the effectiveness of the system..." would require the logging of 'a great deal of insignificant data. Respon-dents suggested that unless the provision was made clearer, substantial disagreement could exist between licensees and NRC inspectors over what items _are required to be logged. The provision may be subject to broad ~ ' interpretation because of its open ended nature. For this reason this i provision has been revised to read: "Any other threatened, attempted, or committed act not previously defined in Appendix G with the potential for reducing the effectiveness of the safeguards system below that committed. to in a licensed. physical security or contingency plan or the actual con-dition of such reduction in effectiveness." The supporting guidance for + the rule has been revised' accordingly in' response to these revisions. (b) Maintenance and Submittal of Stand-Alone Log. The majority of commenters including two utility groups indicated that the maintenance and submittal of a stand-alone log was a large administrative burden on the licensee implemented for the convenience of the NRC. The recommenda-tion was made that this requirement be deleted in its entirety. Justifi-cation for this recommendation included the opinion that the events to be logged are insignificant and their logging will not increase safeguards effectiveness, submittal of the log will require increased review of the log by licensee management to assure that events required to be logged are in fact logged, and records of the events to be logged are presently maintained onsite and readily available for NRC inspection. In response to these comments, it is believed this provision has been subject to much misinterpretation. The proposed reporting and 4. 1, 7 _-~~~ - w n-. _ _ ~

[7590-01] 1 recordkeeping requirements are intended to keep NRC informed concerning the degradation / failure or attempted / actual penetration of each licensee's physical security system as well as credible threats made agaiast tne licensee's facility. NRC staff intends to use the reported / recorded safeguards information to assure that appropriate action is taken by the licensee to address physical security degradation / failure and/or threats against the facility. Further, such information is used to iden :ify and characterize generic and facility specific precursor information tnat could be utilized to prr:empt duplicative or similar events in the future. These considerations support the need for the reporting of these types of l events. Regarding the mairMnance of a stand alone log, it is noted that this is not a new requirement and that under the previous 10 CFR 73.71(c), licensees were required to maintain a separate log to record events reportable under S 73.71. Furthermore, examples of the type of events other than those required by 10 CFR 73.71(c) that need be " recorded" under the previous regulation are identified in Regulatory Guide 5.62, Reporting of Safeguards Events. (Copies of this Regulatory Guide are available for inspection or copying for a fee at 1717 H Street, NW., Washington, DC.) Comparison of this information with the events to be logged under the pro-posed regulation indicates an overall reduction in the burden to licensees resulting from events to be reported. This is based on the fact that the majority of events previously required to be reported within 24 hours (with a follow-up written report) have been picked up as log entries under the revised regulation. As a log entry, the follow-up written report need l ) not be submitted, substantially reducing the overall burden. Some com-menters interpreted the increased number of examples in the supperting 5

l a [7590-01] guidance for the proposed rule as meaning more events were required to be reported. The staff notes at this time that the examples in the original regulatory guide were never intended to be all-inclusive and that the additional examples have been provided to aid the licensee in understand-ing the intent of the regulation. Commenters also indicated that not all events required to be logged under the present requirement are logged in j I one log, but a number of logs, i.e., maintenance log, alarm station log, It is the opinion of these commenters that revising their procedures etc. to maintain one log, as opposed to multiple logs, will greatly increase i their burden. It is anticipated that the revised regulation will reduce I the burden to licensees. Accordingly, no revision has been made to the i revised rule in the area of maintenance of a stand-alone log. Regarding the submittal of the stand-alone log to the NRC requiring additional review time oy licensee managemer,t, commenters are reminded ) that the requirement to maintain a log, regardless of its submittal to the NRC, carries with it the requirement for correct and accurate entries. The concern over review for accuracy associated with the act of submit-ting the log to the NRC should also be applied to the maintenance of a log onsite for review by inspectors. Hence, with respect to review time, there is no difference, from a regulatory standpoint, in the level of i burden imposed between a log maintained onsite versus one submitted to the NRC. It is noted that the log submitted to the NRC does not have to be typewritten as long as it is legible. The supporting guidance for the rule has been revised to reflect this and to include examples of sample log entries for clarificatico regarding length and content. j Finally, regarding the comment that the log need not be submitted to NRC Headquarters because records are available for onsite inspection, the 1 L- - - ' ~ ~ ~

a [7590-01] l staff believes that with the justification of a stand-alone log estab-lished, the o'nerous nature of the log submittal to the NRC, as noted in comments, is greatly lessened. In review, this is based upon no require-ment to submit a typed or original log (xeroxed is acceptable as long as it is legible) and no additional-requirement imposed on the accuracy of-a log submitted to the NRC versus one maintained onsite. (c) Additional Discussion of Burden Imoosed by Log. As previously discussed, the overall burden on licensets for the reporting / logging of safeguards events is in fact reduced by the proposed requirement.

However, based upon the number of comments received on this issue, the Regulatory Analysis for this rulemaking has been thoroughly reviewed and revised, as appropriate, to assure that respondents' concerns have been considered.

2. Reporting of Interruption of Normal Operations At Power Reactors. The proposed iegulation 'under SS 73.71(b) and I(a)(3) of Appendix G to Part 73 requires that actual or attempted acts or events which cause or could cause interruption of normal cperation of a licensed nuclear power reactor through the unauthorized use of its machinery, components, or controls be reported within one hour to the NRC. Various comments were received from respondents on this issue. The majority of comments indi-cated that some clarification of the provision is needed. Specific suggestions included limiting the provision to deliberate, intentional, or malicious acts and focusing the provision on an actual act of sabotage rather than interruption of normal operation. A few comments indicated that the interruption of normal operation should not be considered a safeguards event and that such events are already reportable under I Part 50 requirements. Finally, specific definitions for the terms " tampering" and " interruption of normal operation" were requested i i i I

[7590-01) The inclusion of this provision within the reporting requirements for safeguards' events was prompted by amendments in 1981 to the Atomic Energy Act of 1954, as amended, (the Act). At that time a new subsection (Section 236b) was added which subjects to criminal penalty any person who intentionally or willfully causes or attempts to cause an interrup-tion of the normal operation of specified nuclear facilities through the unauthorized use of or tampering with the machinery, components, or controls for such facilities. The Federal Bureau of Investigation (FBI), as the Federal agency charged with the criminal investigation of sabotage at nuclear reactors, has revised its internal policy on the definition of sabotage to be consistent with the Act. The revision to 10 CFR 73.71 is necessary to bring NRC regulations into line with the Act. Because the question of intent cannot normally be determined in a one hour time frame, the term " willfully" and " intentionally" are not included in the reporting requirements. A proper application of the term " interruption of normal operations" will put the reporting of these events in proper perspective. The legis- ~ lative history for the aforementioned amendments to the Act states that the term refers to the cessation of actual production, utilization, or storage operations which, if accomplished, would result in substantial economic harm or cost to the licensee. For the purpose of this rulemaking, this term will be used only to refer to utilir.ation operations. The term sabotage is not specifically used within the regulation to assure that the actual act is reported while allowing the FBI to investigate whether a violation of law has occurred. In addition, the word " tampering", when used in conjunction with this reporting requirement only, means altering for improper purposes or in an improper manner. It is noted that all terms 8 t

1 [7590-01] or phrases clarified-as a result of comment analysis for the proposed rule 'are included in a glossary added,to the supporting guidance for this rule, Regulatory Guide 5.62, " Reporting of Safeguards Events," Rev.1. Finally regarding duplication of reporting with Part-50 requirements, the revi-sions to.10 CFR 73.71 explicitly state that duplicate reports are not' required for events that are also. reportable under 10 CFR 50.72'and 50.73. 3. Reporting of Unauthorized Entry Through a Required Barrier. SS 73.71(b)(1) and I(c) df Appendix G to Part 73 of the proposed regula-tion required any unauthorized entry through a required barrier (whether-or not the' event is properly compensated) to be reported to the NRC within one hour of discovery. Comments on this issue questioned the need for reporting of all unauthorized entries especially those by authorized indi-viduals and indicated that unauthorized entries due to procedural or unintentional errors need not be reported especially when the event is' properly compensated. Specific definitions for the terms " unauthorized entry" and " required barriers" were requested. 4 The staff agrees in part with these comments and recognizes-the 1 fact that some unauthorized entries through a required, barrier may not i involve malevolent intent particularly those involving " tailgating" by individuals into areas to which they are authorized unescorted access. Conversely, however, the staff believes it prudent and appropriate that malevolent intent be assumed if an individual makes an actual entry into an area to which he or she is not authorized unescorted access. For these reasons, this provision has been revised to require one-hour i reporting of: "Any actual entry of an unauthorized person into a i protected area, a material access area,' controlled access area, vital' area, or transport."..An unauthorized person is defined as an unescorted l 9

3 8 ) 4 [7590-01) i i individual in an area to which the individual is not granted unescorted All bther acts or events involving. invalid or. incorrect entry access. procedures should be logged. To clarify this issue, additional pertinent examples have been added'to the rule's supporting guidance. In addition, the intent of proposing to. require the reporting of any unauthorized entry through a.' required barrier was also to require the reporting of the introduction or attempted introduction of contraband into the facility. While SI(a') of' Appendix G could also be cited as requir'.ig the reporting of such an event, the staff has added a separate provision to make it clear such events are required to be reporteql within one hour. 4. Administrative Issues. The proposed regulation required the use of the Licensee Event Report (LER) form, NRC Form 366, for the submittal of follow-up written reports by power reactor licensees. Public comment, including the comment of one utility gro.up, identified problems with the use of these for'ms and recommended the use of letter format for report submittal as required for all but power reactor licensees. Commenters opposed the use of the form by noting that the form was prepared for the reporting of safety events under Part 50 requirements and, hence, did not quite " fit" the planned usage under 10 CFR 73.71. From a philosophical i l standpoint, commenters felt the use of a common form blurred the important' distinction between safety and safeguards. The purpose in requiring the use of this-common form was to simplify report submittal. It is believed j l that the form has been designed with enough flexibility to accommodate a the reporting of both safety and safeguards events. Furthermore, use of a a cot. mon form wi11' simplify administrative procedures. For these reasons, f no change has been made to the regulation regarding use of the LER form. t l 10 )I 3 ..k

1 c [7590-01] However, guidance on use of the form by power reactor licensees for the reporting of ' safeguards events has been added to the rule's supporting guidance. A few comments were received which requested the one-hour reporting requirement be extended to 4 or 24 hours and the requirement to log an event within 24 hours of its discovery be extended to 72 hours. No revi-sion to the proposed. rule has been made in response to these comments. 4 In the case of extending the one hour limit, the proposed rule represents appropriate revisions to the present requirement that assure only those events requiring a one-hour report are in fact required to be reported within one hour. In the case of extending the 24-hour limit, a 24-hour period to document an event in a log is more than sufficient time and already represents a relaxation over immediate logging. Also in the area of reporting periods, commenters, including one uti,lity group, commented that the initiation of the time period for report-ing should be tied to discovery by a member of the security organization, not just by any licensee employee, and that the security organization should make the determination that a safeguards event has occurred, again, not just any employee. The staff agrees that the determination 1 for report-ing an event should be made by onsite security management or equivalent. This information has been added to the rule's. supporting guidance. It is believe1, however, that the discovery of an event should not be limited to discovery by a member of the security organization. All regular site employees should receive training by the security organization to foster an awareness of site security. In this regard, site employees should be brieferi on their responsibility to immediately notify site security of safeguards anomalies. The staff, therefore, has made no revision to the l proposed regulation in response to this particular comment. 11 a _ ~ - c

[7590-01] Commenters, including one utility group, requested that the required record retention period of three years be revised downward to one year. In this regard, there is an ongoing NRC rulemaking which will standardize all record retention periods to 3 years, 5 years,10 years, or life in order to ease the burden on affected licensees uho are subject to diverse reporting and recordkeeping requirements. The three year period required in 10 CFR 73.71 is consistent with this policy. As this policy evolves,' any revisions to the standardized retention periods would be reflected in a conforming amendment to S 73.71. Respondents further expressed the view that immediate reports si.mld be made to the appropriate NRC Regional Office, not the Operations Center an0 that the procedure for revising written reports, i.e., complete report resubmittal, was overburdensome and unnecessary. Justification for chang-ing the designated report recipient to the Region included the fact that immediate response is providad by the Regi.on, not NRC Headquarters, and that current practice is to notiry a Regional Office during day-time work duty hoers and to notify the Operations Center during night off-duty hours. The NRC purpose in requiring reports to be made to the Operations Center, as required under present S 73.71 requirements, is to assure safety through appropriate action taken in response to emergencies or other dcts or events inimical to the public health and safety. Through pre-established procedures, this centralized point can notify designat'ed personnel 'or action as appropriate. I'c is also believed that simplified procedures, such as use of one centralized point for the reporting of significant events, (both safety and safeguards), will assist licensees in responding to centinuing developments if an actual emergency progresses for some time. Accordingly, this providicn remains as required under the 12

a (7590-01] present regulation. Regarding the submittal of a revised report, requir-ing full repirt resubmittal assists in standardizing the procedures for the reporting of safety and safeguards events. For safety related events, these procedures are described in NUREG-1022, Supplement No. 1, " Licensee Event Report System" which states: The revised LER must stand alone. In addition, it would be very helpful if the licensee would indicate in the text on the LER form the revised or supplementary information. The revised or supplementary information could be noted in a manner analo-gous to amendments for FSARs by placing a vertical line in the margin. t For this reason, no changes have been made in response to this comment. Finally, the staff has re-evaluated the need to provide a copy of the safeguards log to "... if applicable, the appropriate NRC Resident Inspector..." and has determinco this is an unnecess'iry burden to iicensees and inconsistent with the pal of consistency with safety event reporting procedures. Accordingly, this requirement has been deleted. l l S. Clarifications Needed. Public ccmment requested clarification of a number of terms and expressions used in the guidance for the proposed regulation. Come of these have been clarified under the discussion of other comment issues. The remaining terms are clarified here. All terms or expressions discussed as part of public comment analysis for this rule are included in a glossary added to the rule's supporting guidance, j Regulatory Guide 5.62, Reporting of Safeguards Events, Rev.1. a. " Safeguards system." This term covers the equipment, personnel, and procedures that comprise the physical protection program necessary to meet Part 73 requirements. b. "Any failure of a safeguards system or the discovered non-inherent vulnaraoility...etc." In an attempt to clarify this phrase it has been p 13 l I y 6

e 3 [7590-01] revised to refer to: "Any failure, degradation, or discovered vulner-I ability..." and to delete the proposed definition for compensatory Rather than add an additional definition for compensatory measures. measures to the Federal Code (which could be confusing), the existing definition found under 10 CFR 73.46(g)(5) and 73.55(g)(1) will be used. This definition will be referenced in the supporting guidance for this rulemaking. For further clarification, descriptions of acceptable com-. pensatory measures have been added to the supporting guidance. l c. " Credible" threat. A threat should be considered credible when I (1) physical evidence supporting the threat exists, (2) information inde-pendent from the actual threat message exists which supports the threat, or (3) a specific group or organization claims responsibility for the I threat. "Significant physical damage" (as applied to a power reactor, d. ) a facility possessing SSNM or its equipment, carrier equipment transport-irg auclear fuel or spent nuclear fuel, or to the nuclear fuel or spent nuclear fuel a facility or carrier possesses) This term covers physical damage to the extent that the facility, equipment, transport, or fuel can not perform its normal function. " Lost" versus " unaccounted for" re: transportation of material. e. The term " lost" covers material that is no longer in the possession of the party authorized to possess it during a specific time pe-iod and a search for the material verifies this. " Unaccounted for" refers to mate-rial in transit which has not arrived at its delivery point four hcurs or more after the estimated arrival time. However, a search has not con-firmed the material to be lost. 14 ~

[7590-013 f. " Theft of SNM." The term refers to the unauthorized taking of SNM for unauthorized use. g. " Diversion of SNM." This term refers to the unauthorized move-ment of SNM by individuals authorized access to or control over the material. h. " Loss of SNM." This term refers to (1) a failure to measure or account for material, authorized to be possessed by the licensee, by the i material control and accounting system approved for the facility and not confirmed stolea or diverted or (2) an accidental (i.e. unplanned) affsite release or dispersal of SNM known or suspected to be 10 times greater than normal operating losses for the time frame in question whether or not the release is measured. The term " loss" implies that a search has been con-ducted to confirm the material loss. For fixed sites, this search should be conducted within the one hour time frame of deportability. i. " Safeguards Event Log." This term refers to a compilation of log entries for the events described under Section II of Appendix G to 10 CFR Part 73. Entries must include date and time of event, summary description of event, and action taken. For repeated events, the date and time should be recorded; however, the summary and action taken need only reference the initial event of the series of identical events. An active " safeguards event log" is not required to be maintained in one i 1 location onsite. Its format may be typed or handwritten as long as it is legible and reproducible. 1 Entries in a " safeguards event log" sub-mitted to the NRC need not be in time sequential order. 6. Miscellaneous Issues. This rulemaking grants a portion of a petition for rulemaking assigned Docket No. PRM 50-36 from the Nuclear 1 1 l 15

j [7590-01] Utility Backfitting and Reform Group (NUBARG). This rule. responds speci-fically to Se~ction VI of the petition, Reporting Requirer.ents Associated with 10 CFR 73.71. In this section the petitioner suggests that the regulation be amended to provide for written report-submittal'by the licensee within 30 days of initial notification rather than within 15-days. According to the-petitioner, this would allow a licensee's staff more time curing the critical period immediately following an event to 4 devote to the resolution of the problem and would minimize interference-with daily operation. The NRC has agreed with this suggestion in the past and included this revision within the final rule. Comments received i on this issue universally support the extension of the time period for written report submittai. NUBARG acknowledged the action and requested a prompt response from the NRC on the remaining items of the petitior.. Comments received from one low enriched uranium fuel fabrication licensee noted that its HRC-approved physical security plan specifically identifies the reporting requirements for shipments that have not reached their destination by the estimated time of arrival. This commenter requested that the requirements for licensees subject to S 73.67 not be changed because these changes would produce no benefit but would result in added costs. The staff has made a thorough review of this issue, including inspection of reporting commitments in the subject licensee's physical security plan and finds no conflict. A " lost" shipment carries i with it the understanding that a search or trace investigation has deter-j mined the shipment to be verified lost (see paragraph 5e above). A ship-ment may be " unaccounted for" for up to 4 hours before it is determined I l 16

[7590-01] " lost." There is ne difference in a reporting period described as "with-in one hour of discovery of a loss" versus "within one hour of obtaining results of a trace investigation." Finally, during the course of public comment'ar: lysis, a question arose whether licenstes would be required to submit pb sical security f q plan amend;1ents to conform with this revised regulation. The revised regulation supersedes the previous S 73.71 and any previous security plan ~ commitments dealing with reporting of safeguards events. Licensees are not required to submit plan changes in response to the new regulation; however, those licensees who have paraphrased the' previous 10 CFR 73.71 in their security plans should revise their plans to delete previous commitments in this area; these plan revisions may be submitted under the provisions of 10 CFR 50.54(p). It is noted that based upon the expected reduction 'in burden to affected NRC licensees with no resuftant safeguards degradation, this regulation has been approved as a generic backfit and a backfit analysis is incorporated within this notice. Environmental Impact: Categorical Exclusion-4 The NRC has determined that this proposed rule is the type of action described in categorical exclusion 10 CFR 51.22(c)(3). Therefore, neither an environmental impact statement nor an environmental assessment has been 1 prepared for this rule. 17 i

[7590-01] Paperwork Reduction Act Statement This final rule amends information collection requiremer,ts that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.), These requirements were approved by the Office of Management and Budget approval numbers 3150-009, 3150-3132, 3150-0002, and 3150-0123. Regulatory Analysis The NRC staff has prepared a regulatory analysis on this final regu-lation. The analysis examines the costs and benefits of the alternatives considered by the Commission. The analysis is available for inspection in the NRC Public Document Room, 1717 H Street, NW., Washington, DC 20555. Single copies of the analysis may be obtained from Priscilla A. Dwyer, l Safeguards Reactor Regulatory Requirements Section, Division of Safeguards, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Telephone (301) 427-4773. Regulatory Flexibility Certification In accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b), the Commission hereby certifies tnat this revised rule, if promul-gated, will not have a sigr.)ficant eccnomic impact on a substantial number of small entities and will result in a reduction in burden to affected licensees. Some transporters, importers, and exporters of special nuclear material (SNM) and spent fuel wil', be affected by this rule. Each year out of approximately 600 reported events, about 3 come frca this group 18

[7590-01]~ I which includes small entities. The rule also affects licensees who I operate nuclear power plants and fuel facilities under 10 CFR Parts 50 l and 73. The comp'anies that own these plants and facilities do not fall within the scope of the definition of "small entities" set forth in S 605(b) of the Regulatory Flexibility Act of 1980, or 'within the defini-i tion of Small Buriness Size Standards set out in regul' tions issued by a the Small Business Administration in 13 CFR Part 121. Backfit. Analysis As required by 10 CFR 50.109 (50 FR 38097), the NRC staff has com-p eted a backfit analysis for this final ruit.. The staff has. determined, based on this analysis, that backfitting to comply with the requirements of this final rule is justified because imposition of these require:nents will result in a substantial increase in the overall protection of the public health and safety or the common defense and security and direct and indirect costs are justified in view of the increase in protection. The backfit analysis, which includes a summary regulatory analysis, h follows. I.

SUMMARY

REGULATORY ANALYSIS 1. Objective. In general, the objective of this rule is to clarify and simplify the reporting of safeguard events to the NRC by licensees. Safeguards events include actual or attempted theft of special nuclear material (SNM), actual or attempted acts or events which interrupt normal I 1 operations at power reactors due to unauthorized use of or tampering with 1 19

7590-01]

i i machinery, components or controls., certain threats made against facilities possessing SNM, anc safeguards system failures impacting the e1'ectiveness of the system. The reporting of this data to the NRC is necess.ry to assure safety during safeguards related emergencies and to allc > the Commission to identify and characterize generic and facility-sp cific precursors to certain safeguards events. Since the original is uance of I S 73.71, the staff has found the requirements are frequently mi interpreted, 1 that written follow-up reports submitted pursuant to the regula ion lack uniformity and that within these report.s insufficient data is r ported for j NRC analysis. Specifically, these revisions will: (1) clarity to licens es the ) safeguards events that must be reported, (2) extend the period f time for submittal of licensee written reports, (3) assure standardi ad and i sufficient report-making to assist NRC data evaluation, (4) eli inate 2 I telephonic notification and written reporting deemed unnecessar: by the i staff, and (5) assure a consistent and comparable level of repo ting ior safety and safeguards events. 2. Description of Activity. At present, licensees are r quired to report certain events within one hour or 24 hours of their cccu'cence with submittal of written follow-up reports within 5 or 15 days deperding upon the event. All events reportable are required to be maintained in a sepa-rate log onsite, while other events are siniply required to be rs:orded. The specific events reported within these time periods or logget are described by such broad phrases as " potential loss," " moderate )ss of effectiveness" and " major loss of ef festiveness." The revisions to 5 73.71 require events to be either repor'ed within one hour or logged with the log submitted to the NRC on a quarts ly basis. 20

l [7590-01] Events reported within one hour are -equired to be followed-up by a writ-ten report within 30 days. In describing the events to be reported, an attempt has been made to describe only those types of events actually requiring reporting and to assure that categorization of events which may warrant Federal involvement is made by appropriate Federal agencies, not the licensee. ) 1 The net results of the proposed regulations are to: (1) eliminati the present 24-hour reporting requirement (most items presently reportable within 24 hours will be logged, only, under the proposed rule), i (2) eliminate the requirement to log items reportable to the NRC within 1 one hour, (3) clarify and simplify the descriptions of events to be reported or logged including clarification of information to be reported, and (4) require the submittal of a log of safeguards events to the NRC on \\ a quarterly basis. Since licensees are currently required to,immediately report or log certain safeguards events, the major new activity required of the licensee under this amendment is submittal of the quarterly log to the NRC. i 3. Potential Change in Risk to the Public from Accidental Offsite j Release of Radioactive Material. An improved system for the reporting of safeguards events, which might or in fact do lead to a radioactive release, e.g., radiological sabotage, could permit mere timely and effective response to the incident. This could have the effect of decreasing the risk to 1 public from an offsite release by allowing more timely mitigation of the event or more timely implementation of necessary contingency action. 4. Potential Impact on Radiological Exposure of Facility Emoloyees. To the extent that an improved reporting system will permit mon timely 21 a

[7590-01] i mitigation of a safeguards event involving a radioactive release, the potential impact of radiological exposure en facility employn.ts will be j ( reduced. Otherwise, with respect to radiological exposure, there is no j 1 impact on facility employees, i 5. Installation and Continuing Costs. Current Annual Licensee Operational Cost $15k/ site Revised Annual Licensee Operational Cost $6k/ site Decreased Cos,t Resulting from Rt. vised Regulation $9k/ site i i 6. Potential Safety Imoact of Changes in Plant or Operational Complexity. None. ) { i 7. Estimated Resource Burden on the NRC. Current NRC Operational Cost $126k/all sites I Revised NRC Operational Cost $266k/all sites I l Increase Cost to NRC Resulting from I Revised Regulation (due to increased time needed to analyze quarterly submitted log) 3140k/all sites 8. Potential Impact of Differences in Facility oe or Ace. No potential impact is ncted of differences in facility type or age on the relevance or practicability of implementing this rule. 9. The rule is final. 22 8

[7590-01] II. JUSTIFICATION \\ 1. Increased Protection of the Public Health and Safety. The sta'ff-believes that issuance of this final rule will improve the implementation of reporting of scfeguards events requirements due to increased clarity. Further, it will improve.the ability of the.NRC to uncover generic-precursors to events or defects in the safeguards ' systems used to protect the plant. Clarifying and simplifying procedures for reporting can have a significant impact on the timeliness and effectiveness'of' establishing L the NRC-licensee interface or other possibly.necessary Agency interfaces (e$g., with the FBI) during actual safeguards emergencies This results in. increased protection to the public health and safety because it facilitates a timely, coordinated response to safeguards emergencies by i tt.e NRC, licensees, and other Agencies, as appropriate. Improving the-ability of the NRC staff to uncover generic' precursors or defects provides the NRC with an improved capability to initiate corrective action, if needed, prior to a vulnerability having a detrimental effect on the public health and safety. Thie. action will, thus, also improve-the protection of the public health and safety. 2. Cost Implications. Implementation costs are expected to be q negligible because neither security plan amendments nor their review will be required. Annual operating costs are anticipated to decrease for-1 industry, from $15k to $6k per site, because of a reduced reporting burden, j and increase for the NRC, from $126k to $266k for all sites, because of i i the increased tire needed to review quarterly submitted logs.. 3. Priority and Scheduling. Based upon the resulting substantial increase in the overall protection of the public health and safety, as 23 w

1 [7590-01] discussed above, this backfit is considered to be a high priority. The proposed changes do not affect the schedules of other regulatory activi-ties on going at nuclear power plants. 4. Findinos. The NRC staff finds that issuance of this final rule will result in a substantial increase in the overall protection of the public health and safety and direct and indirect costs are justified in view of the increase in protection. List of Subjects in 10 CFR Parts 70, 72, 73, and 74 l Part 70: Hazardous materials - transportation, Nuclear materials, Packaging anc containers, Penalty, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material. Part 72: Manpower training programs, Nuclear materials, Occupa-tional safety and health, Reporting and recordkeeping requirements, Security measures, Spent fuel. l Part 73: Hazardous materials - transportation, Incorporation by reference, Nuclear materials, Nuclear power plants and reactors, Penalty, Reporting and recordkeeping requirements, Security measures. Part 74: Accounting, Material control and accounting, Nuclear mate- ) rials, Penalty, Reporting and recordkeeping requirements, Special nuclear material. l. For the reasons set out in the preamble and under the authority of l the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C 553, the NRC is adopting the following amendments to 10 CFR Parts 70, 72, 73 and 74 24 1 ~ c 1

[7590-01) PART 70 - DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL i 1. The authority citation for Part 70 is revised to read as follows: AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2282); secs. 201, as amended, 202, 204, 206, 1 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846). I Section 70.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat, j l 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 amenr'ed (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 l amended (42 U.S.C. 2138). For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); SS 70.3, 70.19(c), 70.21(c), 70.22(a), (b), (d)-(k), 70.24(a) and (b), 70.32(a)(3), (5), (6), (d), and (i), 70.36, 70.39(b) and (c), 70.41(a), 70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3), I and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); SS 70.7, 70.20a(a), and (d), 70.20b (c) and (e), 70.21(c), l 70.24(b), 70.32(a)(6), (c), (d), (e), and (g), 70.36, 70.51(c)-(g), 70.56, j 70.57(b) and (d), 70.58(a)-(g)(3) and (h)-(j) are issued under rec. 161i, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 70.5, 70.20b(d) and 25 4 q.p

9 [7590-01) (e), 70.38, 70.51(b) and (i), 70.52, 70.53, 70.54, 70.55, 70.58(g)(4), (k), and (1), 70.59, and 70.60(b) and (c) tre issued under sec. 1610, 68 Stat. j 950, as amended (42 U.S.C. 2201(o)). 2. Section 70.52 is revised to read as follows: S 70.52 Reports of accidental criticality pr loss or theft or attemoted theft of spec'ial nuclear material. (a) Each licensee shall notify the NRC Operations Center l within one hour after ciscovery of any case of accidental criticality or any loss, other than r.ormal ope. rating loss, of special nuclear material. l (b) Each licensee who possesses one gram or more of contained uranium-235, uranium-233, or plutonium shall notify the NRC Operations Center within one hour after discovery of any loss or theft or unlawful diversion of special nuclear material which the licensee is licensed to possess or any incident in which an attempt has been made or is believed to have been made to commit a theft or unlawful diversion of such material. (c) This notification must be made to the NRC Operations Center via ) ) the Emergency Notification System if the licensee is party to that system. If the Emergency Notification System is inoperative or unavailable, the licensee shall make the required notification via commercial telephonic I service or other dedicated telephonic system or any other method that will ensure that a report is received by the NRC Operations Center within one hour. The exemption of S 73.21(g)(3) applies to all telephonic reports required by this section. ICcmmercial telephone number of the NRC Operations Center is (301)951-0530 26

~ [7590-01] B i (d) Reports required under S 73.71 need not be duplicated under the requirements 'f this section. o PART 72 - LICENSING REQUIREMENTS FOR THE STORAGE 0F SPENT FUEL AT AN INDEPENDENT SPENT FUEL STORAGE INSTALLATION I 1 l 1. The authorit, citation for Part 72 is revised to read as follows: i AUTHORITY: Socs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, l 184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 2234, 2236, 2237, l 2239, 2282); sec. 274, Pub. L. 88-273, 73 Stat. 688, as amended (42 U.S C. l t 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, ) l 1246 (42 U.S.C. 5841, 5842, 5846); sec. 102, Pub. L. 91-190, 83 Stat. ) 853, es amended (42 U.S.C. 4332). Section 72.10 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 72.34 also issued under sec. 134, 1 Pub. L. 97-425, 96 Stat. 2230 (42 U.S.C. 10154). l 2. Section 72.52 is revised to read as follows: 1 S 72.52 Reports of accidental criticality or loss of special nuclear material. 1 27 l

[7590-01) (a) Each licensee shall notify the NRC Operations Center1 within one hour of discovery of accidental criticality or any loss of special nuclear material. (b) This notification must be made to the NRC Operations Center via the Emergency Notification System if.;he licensee is party to that system. If the Emergency Notification System is inoperative or unavailable, the licensee shall make the required notification via commercial telephonic service or any other dedicated telephonic system or any other method that will ensure that a report is received by the NRC Operations Center within one hour. The exemption of 5 73.21(g)(3) applies to all telephonic reports required by this section. (c) Reports required t.nder S 73.71 need not be duplicated under the requirements of this section. l l PART 73 - PHYSICAL PROTECTION OF PLANTS AND MATERIALS 1. The authority citation for 10 CFR Part 73 is revised to read i as follows: AUTHORITY: Secs. 53, 161, 68 Stat. 930, 948, as amended, sec. 147, 94 Stat. 780 (42 U.S.C. 2073, 2167, 2201); sec. 201, as amended, 204, 88 Stat. 1242, as amended, 1245 (42 U.S.C. 5841, 5844). Section 73.37(f) also issued under sec. 301, Pub. L. 96-295, 94 Stat. 789 (42 U.S.C. 5841 note). For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); SS 73.21, 73.37(g), 73.55 are issued under sec.161b, 68 Stat. 948, 1 Commercial telephone number of the NRC Operations Center is (301)951-0550. 28 ____-_______L

[7590-01] as amendea (42 U.S.C. 2201(b)); SS 73.20, 73.24, 73.25, 73.26, 73.27, l 73.37, 73.40,, 73.45, 73.46, 73.50, 73.55, 73.67 are issued under sec. l 151i, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and SS 73.20(c)(1), 73.24(b)(1), 73.26(b)(3), (h)(6), and (k)(4), 73.27(a) and (b), 73.37(f), i 73.40(b) and (d), 73.46(g)(6) and (h)(2), 73.50(g)(2), (3)(iii)(B) and (h), 73.55(h)(2), and (4)(iii)(B), 73.70, 73.71, 73.72 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)). l 2. In S 73.67 paragraphs (e)(3)(vii) and (g)(3)(iii) are revised to read as follows: S 73.67 Licensee fixed site and in-transit requirements for tne physical l l protection of special nuclear material of moderate and low strategic { i significance. l = a (e) i (3) ] (vii) Notify the NRC Operations Center 1 within one hour after the discovery of the loss of the shipment and within one hour after recovery of or accounting for such lost shipment in accordance with the provisions j of S 73.71 of this part. = = = n (g) (3) (iii) Cenduct immediately a trace investigation of any shipment that is lost or unaccounted for after the estimated arrival time and notify the ' Commercial teiephone number of the NRC Operations Center is (301)951-0550. l 29 l t

[7590-01] A 1 NRC Operations Centerl within one hour after ".he discovery of the lor,s of the shipment and within one hour after recovery of or accounting for such lost shipment in accordance with the provisions of-S 73.71 of this part. 3. Section 73.71 is revised to read as followst 6 73.71 Reporting of safeguards events. ~ (a)(1) Each licensee subject to the provisions of SS 73.25, 73.26,' j l 73.27(c), 73.37, 73.67(e)..or 73.67(g) shall notify the NRC Operattons I Centerl within one hour after discovery of the loss of any shipment of SNM or spent fuel, and within one hour after recovery of or accounting for suc[ilostshipment. (2) This notification must be made to the NRC Operations Center { via the Emergency Notification System, if the licensee is party' to that l l { system. If the Emergency Notification System is inoperative or unavail-able, the licensee shall make the required notification via.comercial telephonic service or.other dedicated telephonic systems or any other method that will ensure that a report is received by the NRC Operations 1 Center within one hour. The exemption of 5 73.21(g)(3) applies to.all I telephonic reports requireo by this section. (3) The licensee shall, upon request of the NRC, maintain an open and continuous communications channel with the NRC Operations Center. (4) The initial telephonic notification must be followed within a period of 30 days by a written report submitted to the U.S. Nuclear Regulatory Commission, Document Control Desk, Washington, DC 20555. The licensee shall also submit one copy to the appropriate NRC Regional Office 1 Commercial telephone number of the NRC Operations Center is (301)951-0550. 30 a

\\ [7590-01] j Office listed in Appendix A to this part. The report must include sufficient information for NRC analysis and evaluation. (5) Significant supplemental information which becomes available after the initial telephonic notification to the NRC Operations Center or after the submission of the written report must be. telephonically reported to the NRC Operations Center and also submitted in a revised-written report (with the revisions indicated) to the Regional Office and the Occument Control Desk. Errors ~ discovered in a written report must be corrected in a revised report with revisions indicated. The revised report must replace the previous. report; the. update must be a complete entity and not contain only supplementary or revised informa-tion. Each licensee shall maintain a copy of the written report of an event submitted under.this section as a record for a period of three years from the date of the report. (b)(1) Each licensee subject to the provisions of SS-73.20, 73.37, 73.50, 73.55, 73.60, or 73.67 shall notify 'the NRC Operations Center within one hour of discovery of the safeguards events described in para-graph I(a)(1) of Appendix G to this part. Licensees subject to the provisions of SE 73.20, 73.37, 73.50, 73.55, 73.60 or each licensee possessing strategic special nuclear material-(SSNM) and subject to S 73.67(d) shall notify the NRC Operations Center within one hour after discovery of the safeguards events described in paragraphs I(a)(2), (a)(3), (b), and (c) of Appendix G to this part. Licensees subject to the provisions of SS 73.20, 73.37, 73.50, 73.55 or 73.60 shall notify the NRC Operations Center within one hour after discovery'of the safe-guards events described in paragraph I(d) of Appendix G to this part. 31

(7530-01) (2) This notification must be made in accordance with the require-ments of paraijraphs (a)(2), (3), (4), and (5) of this section. 1 (c)(1) Each licensee subject to the provisions of SS 73.20, 73.37, ) 73.50, 73.55, 73.60, or each licensee possessing SSNM and subject to S 73.67(d) shall maintain a current log and record the safeguards events described in paragraphs II(a) and (b) of Appendix G to this part within 24 hours of discovery by a licensee employee or member of the licensee's contract security organization. The licensee shall retain the log of events recorded under this section as a record for three years after the last entry is made in each log. j (2) Every three months, each licensee shall subn:it te the NRC copies of all safeguards event log entries not previously submitted. Each { l licensee shall submit one copy of their log entries to the U.S. Nuclear Regulatory Commission, Document Control Desk, Washington, DC 20555. (d) Each licensee shall submit to the Commission the 30-day written i reports and copies of the safeguards event log entries required under the provisions of this section that are of a quality which will permit legible t reproduction and processing. If the facility is subject to S 50.73 of this chapter, the licensee shall prepare the written report on NRC Form 366. If the facility is not subject to S 50.73 of this chapter, the licensee shall not use this form but shall prepare the written report in letter format. The report must include sufficient information for NRC analysis and evaluation. (e) Duplicate reports are not required for events that are also reportable in accordance with SS 50.72 and 50.73 of this chapter. f 4. A new Appendix G is added to read as follows: 32

3 ( [7590-01] Appendix G - Reportable Safeguards Events Pursuant to the provisions of 10 CFR SS 73.71(b) and (c), licensees subject to the provisions of 10 CFR SS 73.20, 73.37, 73.50, 71.55, 73.60, and 73.67 snall report or record, as appropriate, the following safe-guards events. I l I. Events to be reported within one hour of discovery, folleled by a written report within 30 days. { (a) Any event in which there is reason to believe that a person has j committed or caused, or attempted to commit or cause, or has made a cred-ible threat to commit or cause: (1) A theft or unlawful diversion of special nuclear material; or (2) Significant physical damage to a power reactor or any facility possessing SSNM or its equipment or carrier equipment transporting nuclear fuel or spent nuclear fuel, or to the auclear fuel or spent nuclear fuel a facility or carrier possesses; or (3) Interruption of normal operation of a licensed nuclear power i j reactor through the unauthorized use of or tampering with its machinery, components, or controls including the security system. (b) An actual entry of an unauthorized person into a protected area, material access area, controlled access area, vital area, or transport. (c) Any failure, degradation, or the discovered vulnerability in a safeguard system that could allow unauthorized or undetected access to a protected area, material access area, controlled access area, vital area, or traraport for which compensatory measures have not been employed. (d) The actual er attempted introduction of contraband into a pro-tected area, material access area, vital area, or transport. l 33

[7590-01] i II. Events to be recorded within 24 hours and submitted in quarterly' log. . (a) Any' failure, degradation, or discovered vulnerability in a safeguards system that could have allowed unauthorized or undetected i access to a protected area, material access-area, controlled access area, vital area, or transport had compensatory measures not been established. (b).Any other threatened, attempted, or conmitted act not previously; 1 defined in Ap'pendix G with the potential for reducing the effectiveness' 'of the safeguards system below that committed to in a licensed physical-security or contingency plan or the actual condition of such reduction 'in effectiveness. PART 74 - MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL e 1. The authority citation for Part 74 is revised to read as followc: AUTHORITY: Secs. 53, 57, 161, 182, 183, 68 Stat. 930, 932, 948, 953, 954, as amended, sec. 234, 83 Stat; 444, as amended (42 U.S.C. 2073, 2077, 2201, 2232, 2233, 2282); secs. 202, 206, 88 Stat. 1244, 1246 (42 b.S.C. 5842, 5846), i 1 For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. I 2273), SS 74.31, 74.81, and 74.82 are issued under secs. 161b and 1611, i 68 Stat. 948, 949, as amended (42 U.S.C. 2201(b), 2201(i)); and SS 74.11, 74.13, and 74.15 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)). 34

I [7590-01] { 2. Section 74.11 is revised to read as follows. { 1 9 74.11 Reports of loss or theft or attemnted theft of soecial nuclear material. i (a) Each licensee who possesses one gram or more of contained uranium-235, uranium-233, or plutonium shall notify the NRC Operations Center 1 within one hour of discovery of any loss or theft or other unlaw-foi diversion of special nuclear material which the licensee is licensed to possess, or any incident in which an attempt has been made to commit a theft or unlawful diversion of special nuclear material. The requirement { does not pertain to measured discards or inventory difference quantities. (b) This notification must be made to the NRC Operations Center via l the Emergency Notification System if the licensee is party to that system. j ( If the Emergency Notification System is inoperative or unavailable, the licensee shall make the required notification via commercial telephonic service cc other dedicated telephonic system or any other method that-will ensure that a report is received by the NRC' Operations Center within one hour. The exemption of 9 73.21(g)(3) applies to all telephonic reports required by this section. (c) Reports required under S 73.71 need not be duplicated under the 1 requirements of this section. 1 1 Cated at Bethesoa, Maryland, this day of , 1987. i For the Nuclear Regulatory Commission. I l l Victor Stello, Jr. Executive Director for Operations. 1 Commercial.elephone number of the NRC Operations Center is (30~)951-0550 35 +

d ) 4 4 t ATTACHMENT 2 Revised R. G. 5.62 h 1 l l l l l l l l l l l 1 l l 4 l

7 October 1986 Division 5 Task SG 901-4

Contact:

P. Dwyer (301)427-4773 REGULATORY GUIDE 5.62 h.'00RTING OF SAFEGUARDS EVENTS A. INTRODUCTION In 10 CFR Part 73, " Physical Protection of Plants and Materials," para-graphs 73.71(a) through (c) require licensees to report to the Operations Center of the NRC or to record for quarterly transmittal to the NRC certain safeguards events. These events are those that threaten nuclear activities or lessen the effectiveness of a security system as established by safeguards regulations or-3 an approved security or contingency plan. This regulatory guide provides an approach acceptable to the NRC staff for use by the licensee in determining when and how an event should be reported. The examples provided represent the types of events that should be reported and are not intended to be all-inclus,ive. The applicability of events may vary from site to site. Any information collection activities mentioned in this regulatory guide are contained as requirements in 10 CFR Part 73, which provides the regulatory basis for this guide. The information collection requirements in 10 CFR Part 73 i have been cleared under CMB Clearance No. 3150-0002. I B. DISCUSSION The NRC requires the information reportable under S 73.71 in order to assure safety during safeguards related events with the potential to endanger public health and safety or national security and to monitor trends in safeguards system effectiveness. L.._-.--_--_-_-_.______..____.

l l Because certain significant safeguards events warrant immediate involve-ment by the NRC and possibly other government agencies such as the FBI, these 1 events must be telephonically reported to the NRC within 1 hour of discovery of the event, and a detailed written report must follow within 30 days. Certain other less significant safeguards events are required to be record-ed in a log and copies of the recorded log submitted to the NRC every 3 months. While these events are less significant than those reportable within 1 hour, they are required to be reported to the NRC on a quarterly basis for long term trend analysis. This is based upon the fact that if the event occurs repeatedly at one facility or throughout industry, it may reprennt a defect in the secu-rity program or a generic trend, respectively. Not all generic defects or trends require action on the part of the NRC, however, this decision cannot be made unless the events are reported to the NRC. Licensees have been required to maintiin a separate log to record events reportable under S 73.71 in the past, but are now required to submit a copy of that log to the NRC on a quarterly basis. For use in understanding the regulation and for the purposes of this guice, a glossary of terms can be found in Appendix A of this guide. Table 1 presents a summary of reportable events and reporting times. C. REGULATORY POSITION 1. LICENSEES SUBJECT TO 10 CFR 73.71 I Licensees subject to the provisions of SS 73.25, 73.26, 73.27(c), 73.37, 73.67(e), or 73.67(g) are subject to the provisions of S 73.71(a). l Licensees subject to the provisions of SS 73.20, 73.37, 73.50, 73.55, 73.60, or 73.67 are subject to the provisions of S 73.71(b) for events described in paragraph (I)(a)(1) of Appendix G to Part 73. Licensees subject to the pro-visions of SS 73.20, 73.37, 73.50, 73.55, 73.60 or each licensee possessing strategic special nuclear material (SSNM) and subject to S 73.67(d) are subject to the provisions of 6 73.71(b) for events described in paragraphs I (a)(2), (a)(3), (b), and (c) of Appendix G to Part 73. Licensees subject to the provi-sions of SS 73.20, 73.37, 73.50, 73.55, or 73.60 are subject to the provisions of 9 73.71(b) for events described in paragraph I(d) of Appendix G to Part 73. l l 2

I a j .i Table 1. Summary of Reporting Requirements i REQUIRED REPORTS DESCRIPTION OF SAFEGUARDS EVENT-1 One-hour telephonic report 1. Loss of shipment of SNM or spent fuel. followed by a written report within 30-days 2. Recovery / Accounting of lost shipment of SNM or spent fuel. 3 3. Threatened, attempted, or' actual: a. Theft or unlawful diversion of SNM, b. Significant physical. damage to a reactor- - I or facility or carrier possessing SSNM,. c. Unauthorized interruption of normal operations at a power reactor. 4. Actual entry of unauthorized person into PA, "AA, CAA, VA,.or transport. 5. Uncompensated failure, degradation, or dis-covered vulnerability in a safeguards system that could allow unauthorized or undetected access to a PA, MAA, WAA, VA, or transport. i 6. Actual or atte'pted introduction of contra m band into PA, MAA,' VA, or transport. Safeguarde event log, 1. Compensated failure, degradation, te submitted every 3 months discovered vulnerability in a safeguards j system that if uncompensated could have 1 -allowed unauthorized or undetected access to l a PA, NAA, CAA, VA or transport. 2. Any other threatened,' attempted, et committed act not previously definid in Appendix G with the potential for reducing j the effectiveness of the safeguardt. system below that committed to in a licenseo i physical security or contingency plan or the actual condition of such reduction in effectiveness. Note: P4s = protected areas MAAs = material access areas CAAs = controlled access areas VAs = vital areas SNM = special nuclear material i SSNM strategic special nuclear material i 3 4

j I l . Licensees subject to the provisions 'of S3 73.20, 73.37 73.50, 73.55, 73.50, 'J or each licensee possessing SSNM and subject to 5 73.67(d) are subject to the provisions of 3 72.71(c). ) 2. REPORTABLE EVENTS 2.1 Safecuards Events Reportable Within 1 Huur. Events reportable within 1 hour of discovery include those required under ' paragrapns 73.11(a) and (b). Those under paragraph 73.71(a) invob.e incidents . 1 in which a theft, loss, or diversion of a shipment of SNM or. spent fuel has occu,rred or is-believed to have occurred. Those. reportable under paragraph 73.71(b) and described in Appendix G'to { 10 CFR P5rt 73, include the following safeguards events: l. (a) Acts, attempts, or threats to commit: (1) Theft or unlawful diversion of SNM or spent fuel; (2) Significant physical damage to a power reactor or' any facility possessing' SSNM or its equipment, to the carrier equipment trans-porting nuclear fuel or spent nuclear fuel, or to the nuclear fuel or spent nuclear fuel a facility or carrier possesses; (3) Interruption of normal operation of a licensed nuc' ear power reactor through the unauthorized use of or tamperirg with its j i machinery, components, or controls including the security system. 2 (b) Any actual entry of an unauthorized person into a:PA, MAA,;CAA, VA, or transport. 1 (c) Any uncompensated failure, degradation, or discovered.vulnerab'lity-i in a safeguards system that could allow unauthorized or und' etected access to a PA, MAA, CAA, VA, or carrier transporting nuclear fuel, spent fuel, o. formula quantities of SSNM. 4 9 M w.. i

1 1 (d) Any actual or attempted introduction of contraband into a PA, MAA, VA, or transport. To clarify, safeguards system failures include not only mechanical or electrical system failures but also improper ecurity procedures. Discovered ( s vulnerabilities include incidents where the security system has not failed but where some flaw in the security system that had existed without being noticed has been discovered. 2.2 Examoles of Safeguards Events That shoulge_ Reported Within 1 Hour. The following list provides examples of events to be reported to the NRC } i within one hour because of their potential to endanger public health and safety k l or national secur~ity, (this list should not be considered all-inclusive). 'k A regulatory citation, which relates the event to its applicable reporting require-ment, is provided for each event. Discussion of compensatory measure considera-tions is included where appropriate. 1. Credible bomb or extortion threats. In addition, a telephone follow-up of the re.sults of a bcmb search should be made within one. hour of completion. Unsubstantiated threats need not be immediately reported unless a specific organization or group claims responsibility or the threat is one of a pattern of harassing threats; in these cases, the threat must be reported within one nour. Ref.. App. G, I(a)(1), (2) or (3). There are no compensatory measures which would preclude the reporting of a substantiated threat within one hour. j If a threat can not be substantiated, (i.e., no organization or group identi-fied, negative search results, and no additional evidence other than threat j message), then the event need only be logged. (Also see #13, Sec. 2.4.) i. 2. Discovery of a criminal act involving individuals granted v:iescorted PA/VA access which may directly affect facility operations, (i.e. certain felo-nious acts, discovery of a conspiracy to bomb the facility or disturb its vital comnonents, vandalism of vital equipment, illegal use of a controlled substance onsite). Re f-. : App G, I(a)(2) or (3). Due to the serious nature of such an event, even if the individual's unescorted access authorization is cancelled, discovery of the event should be reported within one bour. (Also see #3, this { section.) l 5 1 i I

3. Discovery of a criminal act involving individuals granted unescorted PA/VA access wh'ich impacts upon the individual's trustworthiness or reliability in a nuclear setting for which no compensatory measures are taken. Examples of such events may include multiple drunk driving offenses or illegal use of a controlled substance offsite. Re f. : App G., I(a)(2) or (3). Licensees should exercise judgement in determining the urgency for reporting such an event. Depending upon the exact situation, compensatory measures'such as revocation of unescorted access may permit the event to be logged only. However, if the event indicates a program weakness or the ennt : ray receive media attention, then a' one hour report should be made. (Also see #2, this section.)- 4. Discovery of theft or loss of classified documents pertaining to facility or transport safeguards. (Note: Also reportable under $95.57 of 10 CFR Part 95.) Ref.: App. G, I(a)., This type of event is considered a credible' threat to the proper safeguarding of a facility or transport. By the nature of this event its discovery can only occur after a significant degrada-tion of the safeguards system designed to protect the classified document has occurred. No measure-can adequately compensate for such an event and events of this type should always be reported within one hour. As follow-up to the discovery, the' licensee should endeavor to locate the missing or sto'en document, take measures to help assure the event is not repeated, and to take whatever steps are possible to minimize the consequences of the event. 5. Fire or explosion of suspicious or unknown origin within the isolation zone, PA, MAA, or VA resulting from contraband brought onsite. (Note: Events reportable under SS 50.72 ot* 50.73 do not require deplicate reports under S 73.71), Ref.: f4pp. G, I(a)(1),(2), or (3), or (d). If the origin of a fire or explosion can be determined within a 1 hour time frame to be non-suspicious and the facility sustains no significant damage, then the event is not considered a security threat to the facility and it need only be logged. (Also see #23, this section.) 6. Discovery of a suspicious vehicle following a licensed cat rier trans-i porting formula quantities of strategic special nuclear material. Ref.: App. G,I(a)(1). Under this situation armed escorts or other responsible personnel should determine whether or not a threat exists and assess the extent of the threat, if any. If a threat exi.sts it should be reported to the NRC within one hour of confirmation and the provisions of 5 73.26(e) followed. If no threat exists, the event need not be reported or logged. 6 s.

4 7. Mechanical breakdown of transport vehicle carrying formula quantities of strategic special nuclear material. Re f. : App. G, I(a)(1), (2). Since.it is difficult to readily determine if a mechanical breakdown is random nr inten-1 tional, and due to the : strategic significance of the material, mechanical' breakdawns of transports carrying formula quantities of SSNM should always be-reported to the NRC within one hour. 8. Complete loss of offsite communications. Re f. : App. G, I(a)(2) or (3). The licensee should report the complete loss of offsite communications within one hour, if possible, or immediately af ter restoration of communications. If offsite communications are lost and t.annot be restored within one hour, the licensee should use. communications located offsite to notify the NRC. 9. Mass demonstration at plant site that may. pose a thre'at to the facility. Ref.: App. G, I(a)(2) or (3). 10.' Civil disturbance near the plant site that may pose a threat to the facility. Ref.: App. G, I(a)(2) or (3). I 11. Confirmed safety or security equipment tampering of suspicious origin. Re f. : App. G, I(a)(1), (2), or (3).

12. An assault on a power reactor or facility or transport possessing or j

transporter.g SSNM regardless of whether perimeter penetration is achieved. Ref: App. G, I(a)(1), (2), or (3). p 13. Confirmed intrusions into the PA, NAA, CAA, VA, or carrier transport-ing formula quantities of SSNM by unauthorized individuals. Ref.: App. G,.I(b). i 1 Measures should be taken to preclude the recurrence of such events. Since'any compensatory measures implemented for such an event are, in effect, after the I fact that a serious safeguards degradation has occurred, there are no compensatory measures which would preclude the reporting of such an event within one hour of discovery. (Also see #11, Sec. 2.4.) 14. Uncompensated suspension of safeguards controls during either radio-logical or non radiological emergencies that could allow undetected or unauthor-ized access. (Note: Events reportable under SS 50.72 or 50.73 do not require j l duplicate reports under 73.71). Re f. : App. G, I(c). During'non-radiological j emergencies, only those safeguards measures. outlined in section 5.3, " Controls I J that Can Be Suspended During an Emergency" of Regulatory Guide 5.65, Vital Area Access Controls, Protection of Physical Security Equicment, and Key and Lock Controls, may be suspended. I l 7 ~ 1 .v J

e 1 4 15. Discovery of intentionally falsified identification badges or key cards. Ref.: App..G, I(a). This. event is considered a safeguards threat to the facility and should always be reported within one hour of discovery. Measures should be immediately taken to cancel the badges / key cards from the access system and to determine to wnat extent the badges / key cards have been used. 1G. Discovery of uncompensated and unaccounted for, icst, or stolen key I cards, I.D. card bisnks, keys or any access device that could allow unauthorized or undetected access to PA's, MAA's, CAA's, or VA's. Ref. : App. G. I(c). Such events need not be reported within one hour if upon discovery of the loss, measures are taken within ten minutes of the discovery to preclude the use of the lost or stolen device for gaining access to a controlled area and to assure that 'he lost er stolen device has not been used in an unauthorized manner prior to completion of actions to prevent unauthorized use of the device. (Also see

1. 6, Sec. 2.4.)

17. Compromise of safeguards information (including loss or theft) that would significantly assist a person in an act of radiological sabotage or theft of special nuclear material. Re f. : App. G, I(c). There is no measure which would adequately compensate a compromise of safeguards information once the event has occurred. A licensee should always report this type of event within one hour of discovery and follow up measures similar to those for theft or loss of a classified document should be taken. 18. Uncompensated loss of the ability of both cent,, and secondary alarm stations to monitor or remotely assess alarms. Re f. : App. G, I(c).. If the event involves an outage of the alarms, closed circuit television or security l l computers, the event is considered properly compensated if the original capa-l bility is restored within 10 minutes of occurrence of the event or security personnel with appropriate communications are in place within 10 minutes of occurrence to provide total observation of each area zone. In those situations where immediate restoration of system capability is provided by activation of secondary computers, the loss of backup capability need not be reported within one hour. (Also, see #10, Sec 2.4.) 19. Unavailability of minimum number of security personnel or an actual or imminent strike by the security force. Re f. : App. G, I(c). For those situations where an unexpected unavailability of minimum numoer of security personnel occurs, procedures pre-approved by the NRC may be used or "on cali' guards or trained management / supervisor / operations personnel available within 8 +

b 10 minutes may be used to supplement the on-duty security force. If the latter cannot be dcne to assure minimum requirements are met, then the event should be reported within one hour of discovery. 20. Uncompensated loss of all a.c. power supply to security systems that could allow unauthorized or undetected access to a PA, MAA, CAA, or VA. Ref. : ~ App. G, I(c). If the security system integrity can be maintained by standby power or a combination of standby power and immediate, (within 10 minutes of occurrence), deployment of security personnel with appropriate communications equipment then the event is considered properly compensated and need only be ' logged. However, if standby power fails prior to restoration of a.c. power, the event should be reported within one hour of occurrence of the event. (Also see #7, Sec. 2.4.) 21. Uncompensated loss of ability to detect within a single intrusion detectioil system zone. Ref.: App. G, I(c). Proper compensation for this event means immediate deployment (within 10 minutes of event discovery) of back-up intrusion equipment or posting of a dedicated observer w/ view of entire area and capability to conmnicate with alarm stations. (Also see #3, Sec. 2.4.) 22. Loss of alarm capability or locking mechanism on a VA portal. Ref. : App. G, I(c). Proper compensation for this type of event means immediate deployment of security personnel with appropriate communications to provide total observation of affected area. In addition, the affected aree should be searched. (Also see #8, Sec. 2.4.) 23. Discovery of the actual or attempted introduction into or possession within the PA, MAA, or VA of contraband such as unauthorized weapons, explosives or incendiary devices. Re f. : App. G, I(d). Due to the nature of the event, there are no compensatory measures which would preclude the reporting of the event within one hour. If an. actual introduction of contraband is made, steps should be taken to assure the vulnerability which allowed the introduction is corrected. (Also see #5, this section.) 24. Loss of security weaoon at the site. Ref. : App. G, I(d).

2. 3 Safeguards F. vents Reported in a Guarterly Submitted Log.

The following safeguards events reportacle under paragraph 73.71(c) are described bf,ilow and need only be )cgged within 24 hours of their occurrence and submitted quarterly to the NRC: 9 ni. ~ ~

Any fcilure or degradation of a safeguards system or discovered a. vulnerability in a system that could have allowed unauthorized or undetected access to a PA, MAA, CAA, VA, or transport had compensatory measures not been established. (Preplanned situations that require compensatory measures, such as specitl outage work, equipment reloca-tion, exercises and drills, and other situations that are not the result of a safeguards system failure, do net require logging); b. Any other threatened, attempted, or committed act not previously defined in Appendix G with the potential for reducing the effective-ness of the safeguards system below that committed to in a licensed physical security or contingency clan or the actual condition of such reduction in effectiveness. l With respect to the proper compensation of an event, compensatory measures j need to be promptly implemented to be effective. The promptness of implementa-tion will minimize any period of degradation which may exist between the occur-rence and proper compensation after discovery of certain events. Proper compen-sation after discovery of an event does r.ot relieve the licensee from responsi-bility for taking long-term corrective action, or relieve the licensee from possible enforcement action by the NRC for noncompliance during the periods of safeguards system degradation. Licensees, however, are not ordinarily cited for violations resulting from matters not within their control, such as equipment I failures that occurred despite reasonable licensee quality assurance measures, testing and maintenance programs, or management controls. (See 16 CFR Part 2, Appendix C, paragraph V.A.) L 2.4 Examples of Safeguards Events Reoortable in the Quarterly Submitted Log. The following list provides examples of events which are less significant than those reportable within 1 hour and, accordingly, are required to be logged within 24 hours and submitted quarterly to the NRC, (this list should not be i considered all-inclusive). A regulatory citation, which relates the event to its applicable reporting requirement, is provided for each event. Discussion of compensatory measure considerations is included where appropriate. 10 _ mm_

j l 1. Properly compensated security computer failures. Ref. : App. G, II(a). Properly compensated means that within 10 minutes of the failure the system is restored to operation the backup system is operational, or other resources, e.g., security persornel with appropriate communications equipment are deployed to provide an essentially equivalent level et protection. In all cases, all areas in which alarms or access controls may have been compromised due to the failure should be searched. 2. Properly compensated card reader failures. Ref. : App. G, II(a). Properly compensated for this event means the posting of armed security person'- nel with communications capabilities to alarm stations at appropriate portals with current access list and, if unauthorized access is made possible by the failure, a search of the area to which access may have been permitted. 3. Prcperly compensated alarm failures. Re f. : App. G, II(a). Properly l compensated f(r this event means deployment within 10 minutes of discovery of the event of back-up alarm equipment or dedicated observer with appropriate communications equipment. In addition, a search of the area the alarm protected should be made to assure no unauthorized or undetected entry has been made. (Also see #21, Sec. 2.2). 4. Properly compensated closed circui. television failure in a r,ing?a zone, intrusion detection system remains operational. Ref.: App. G, II(a). Properly compensated means providing alternate assessment capability, such as posting of security personnel with communication equipment, deployed so they can assess the entire zone, within 10 minutes of discovery of the failure. 5. Properly compensated failure or degradation of a single perimeter lighting zon? if intrusion detection system remains operational. Ref.: App. G, II(a). Proper compensating measures for failure or degradation of a ifghting zone a e measures implemented within 10 minutes of discovery of the event which may include: (1) use of standby power, (2) use of low light level surveillance devices, (3) use of portable lighting systems, or (4) positioning of guards witn appropriate communications equipment at strategic locations. 6. Properly compensated accidental removal offsite or loss of badge by employee. Ref.. App. G, II(a). For this event, properly compensated means the badge is cancelled from the access control system within 10 minutes of discovery of the missing badge by onsite personnel and measures are taken to assure that the badge has not been 'Jsed ir. an unauthorized manner While it has been missing. (Also see #16, Sec. 2.2.) l 11

I l 7. Properly compensated loss of all a.c. power supply for intrusion detection system that if uncompensated would allow unauthorized or undetected access. Ref.- App. G, II(a). Properly compensated for this event means that emergency power is immediately available through an uninterruptible power source such as a battery supported by generator. If back-up power is not available, security personnel with communications equipment should be deployed, however, this action is not considered proper compensation for the event and does not preclude a licensee from repnrting the event within one hour. (Also see #20, Sec. 2.2.) 3. Properly compensated loss of either alarm or locking mechanism on a vital area portal. Re f. : App. G, II(a). Properly compensated for this type I of event means immediate deployment of security personnel with appropriate com-munications to provide total observation of affected aree. In addition, the j affected' area should be searched. (Also see #23, Sec. 2.2.) { 9. Security computer failures that may not enable unauthorized or t undetected access. Ref.: App. G, II(b). 10. Loss of the capability of a single alarm station to monitor or remotely l-assess alarms but monitoring / assessment capability remains in other stations. Ref. : App. G, II(b). (Also see #18, Sec. 2.2.) 11. Tailgating by a licensee employee or contractor to gain access to an area to which they are authorized access. Re f. : App, G, II(b). (Also ^ see #13, Sec. 2.2.) 12. For shipments of formula quantities of SSNM, loss of intra convoy communications ability, however, ability to communicate with movement control center remains. Ref.: App. G, II(b). 13. Unsubstantiated bomb or extortion threat. Ref. : App. G, II(b). An unsubstantiated bomb or extortion threat is one wherein no sped fic organization or group claims responsibility, the search result is negative, and no evidence other than the threat message is available. If a threat is ona of a pattern of j harassing,.even if unsubstantiated, it should be reported within 1 hour. l 14. Member of security force found asleep at post. App. G, II(b). l j

2. 5 Events Not Reauired to be Looged or Reported.

Certain failures of the safeguards system that do not and could 1ot riduce the effectiveness of the system have little or no safeguards significance. 4 12 I .t

5 Events having little or no safeguards significance need not be reported or logged. The following are examples of events that are not required to be j logged or reported. This list should not be considered all-inclusive. I 1. Cuts made by authorized maintenance personnel through a VA barrier 1 j for a legitimate reason, e.g., to install pipe, if prior approval, coordination with security, and proper compensatory meascres have been established. 2. A person attempting to climb protected area fence wherein the person's obvious age poses no safeguards threat to the facility. { 3. PROCEDURES j The determination for reporting an event under S 73.71(a), (b), and (c), should be made by onsite security management or equivalent. However, discovery j of such an event is not limited to members of the security organization. It is recommended that all regular site employees receive security orientation by { the security organization to foster an awareness of site security and to be j briefed on their responsibility to immediately notify site sec.urity of safeguards { anomalies. Events of a dual nature, i.'e., having both safety and safeguards implica-tions and subject to the requirements of SS 50.72, 50.73 and 73.71 do not I require duplicate reports under the requirements of S 73.71. If a power reactor licensee reports an event that is reportable in accordance with both.56 50.73 and 73.71, the procedures described in 5 50.73 [i.e., submittal of a Licensee Event Report (LER)] must be followed. The procedures contained in NUREG-1022, "Li:ensee Event Report System," describe how to indicate that an LER meets multiple reporting requiremer.ts. In submitting reports of events solely report-able under the provisions of S 73.71, power reactor licensees should make their l l submittals using the LER Forrn 366; all other licensees should use letter form. If the written report contains restricted data, e.g., unclassified Safeguards Information, the report must be appropriately marked. If NRC Forms 366 and/or i 366A are used, restricted data may be included only in the text section of the l forms (Item 17). Restricted data should not be included in the abstract section (Item 16) or aay other section of the forms other than the text section. In addition, the text should clearly indicate the information that is restricted. Finally, the requirements of 5 73.21(g) must be met when transmitting written proprietary information. I 13

In the use.of NRC Form 366 to report safeguards events, it is recognized -s that not all items of the farm may apply. In completing this form, power reactor licensres should assure that all of the information needed by the NRC for analysis and evaluation, as described in Section 3.2 of this guide, is ) included on the form whether under a specific item or under the text section. Procedures for the l' hour report, the 30-day followup report, and the quarterly log are discussed in the following sections. - 3.1 One Hour Reports. l When a licensee, licensee employee or contract employee discovers an event reportable under S 73.71(a) or (b), a telephone notification to the NRC Operations Center listed in Appendix A to 10 CFR Part 73 should be made within 1 hour of the disr.overy. Telephone notification should be made via the Emergency } Notification System (ENS) if the licensee is party to that system. If the E,NS is inoperative or unavailable, a commercial telephone should be used to ensure-that the required notification is received by the NRC Operations Center within 1 hour of discovery of the event. Commercial telephone numbers that may be used to contact the NRC Operations Center are (301) 951-0550, (301) 427 4056, (301) 427-4259, and (301) 492-8893. If a commercici telopnone is not available, - other methods that may be used,to ensure notification within 1 hour:frclude telegram, mailgram, or facsimile. Telegrams and mailgrams should be hand deli-vered to the Operations Officer at the NRC Operations Center, Maryland National Bank Building, 7735 Old Georgetown Road, Bethesda, Maryland 20814. For informa* i tion concerning facsimiles, telephone the NRC Operations Center at (301) 49P 8893. If pertinent information or errors are uncovered after the initial telephone .l report but prior to written report submittal, the. licensee should telephonically I notify the NRC Operations Center of the information or error, i Under the provisions of S 73.71(a), the licensee -(or agent) should also provide the NRC Operations Center with telephone notification within 1 hour of the recovery of or accounting.for a shipment, i.e., information such as material located, known reason for loss, etc. Telephone reports made pursuant to S 73.71 may be transmitted over unpro-tected lines as permitted by the exemption in paragraph 73.21(g)(3). 14

4

3. 2 Thirty-Day Followug Written Recorts.

A followup written report must be submitted within 30 days of a 1 hour report. Power reactor licensees should use the Licensee Event Report form, NRC Form 366 in submitting their reports; all other licensees should use a letter format. In all cases, the information described below is sufficient for NRC analysis and evaluation ar.d should be included as a minimum within the report. Reports of events are required to be legible and reproducible and should include the following: Date and time of event (start and end time), a. b. Event occurred or was threatened to occur in PA, MAA, CAA, VA, nr other (specify).

c. ' For power reactors, state operating phase, i.e., shut-down, operating, etc.

d. Safety systems affected or threatened, directly or indirectly. Type of security force onsite-proprietary or contract. e. f. Number and type of personnel involved, i.a., contractors, security, } visitors, NRC personnel, other (specify). g. Method of discovery of incident, e.g., routing inspection, test, maintetiance, alarm, chance, informant, communicated threat, unusual circumstances (give details). l b. Proc dural errors involved if applicable. i. Immediate actions taken in response te event. j. Corrective actions taken or planned. k. Local, State, or Federal law enforcement agencies contacted. 1. Description of media interest and press release. m. Indication of previous similar events. n. Kt;cwledgeable contact. For security system failures, provide the following in addition to Items a. through c.: l u Description of failed or malfunctioned equipment (including manu-o. facturer en3. model number). 15 L-.

p. Apparent cause of each component / system fai'.Jre. (For uncompensated security computer failures, state reason why event could not be compensated and list specific components affected, e.g., central processor, peripheral / terminal equipment, software.) Status of equipment prior to event, e.g., operating, being maintained, q. made secure, compensatory measures in place. Secondary functions affected (for multiple function components). r. s.' Effect on plant safety. Unusual conditions that may have contributed to failure, e.g., t. environmental extremes. For threat-related incidents, provide the following in addition to Items a through n: l u. Number of perpetrators. Type of threat, e.g., bomb, extortion. l v. Means of communication, e.g., letter, telephone. w. x. Text of threat. { y. Mode of operation. Clear photocopy of threat letter and accompanying envelope if applicable. z. Licensees should submit one copy each of their written reports to the U.S. Nuclear Regulatory Commission, Document Control Desk, Washington, DC 20555, and the appropriate Regional Office listed in-Appendix A to 10 CFR Part 73. If pertinent information or errors are uncovered after the initial telephone report or the written report is submitted, the licensee should telephonically notify the NRC Operations Center of the information or errors. If the informa-tion is uncovered after written report submittal, the licensee should submit complete revised written reports to the Document Control Desk and the Regional Office, with revisions indicated. The revised report should be a complete entity and should not contain merely the supplementary or revised information. l l 3.3. Maintenance' and Submittal of a Quarterly Log. 1 Events reportable under paragraph 73.71(c) need only be logged. In main-taining the log, it is recommended that the licensee log the information as .i 16 i ~_ 's..

received and then summarize and update the log entry when the event terminates. However, licensees are required to log entries within 24 hours of the discovery of the event as required in paragraph 73.71(c). Since the licensee would imme-diately investigate all events that threatened nuclear activities or lessened the, effectiveness of the security system as established by safeguards regula. ' tions or an approved security or contingency plen, the details would generally be available at the time the log entry was to be made. ' Log entries, therefore, should include as a minimum: l a. Date and time of event; b. Brief (one-line) description of event; Brief (one-line) description of compensatory or corrective actions c. taken;

d. ' Area affected, i.e., VA, PA, owner controlled, transport, etc.; and How detected, i.e., alarm, routine inspections, patrol, informants, e.

e'tc. Every 3 months, the licensee is required to submit to the NRC Document Control Desk one copy of all log entries no't previously submitted. The log entries need not be typed as long as they are legible; a photocopy is acceptable. Events of similar nature logged and submitted to the NRC under paragrapn-73.71(c) may be consolidated into a single log entry if they occur = repeatedly within the quarterly submittal period. Each date and time of the event should be specified for each occurrence. For example, if there is a repeated occur-rence of a comper, sated computer failure and each failure is the result of the same problem, only one log entry providing the details of a. _ through e. above need be made. However, with each occurrence, the date, time, and duration of the event should be recorded in the log. Each log must be retained for a period of 3 years after the last entry to that log. 5 ll-17 .s w

'-~-- APPENDIX'A GLOSSARY OF TERMS Note: This glossary is for use only in the -implementation of the requirements of 10 CFR 73.71. "Any failure, degradation or discovered vulnerability": The cessation of. proper functioning or performance'of. equipment, personnel, or procedures. that comprise the physical protection program necessary to meet Part 73 requirements or a discovered defect in such equipment, personnel, or procedures that degrades function or performance. " Credible" threat: A threat should be considered credible when (1) physi-cal evidence supporting the threat. exists, (2) information independent from the actual threat message exists which supports the threat, or (3) a.speci-fic group or organization claims responsibility for the threat. " Diversion" of SNM: Unauthorized movement of SNM by individuals authorized access to or control over the material. " Interruption of normal ooeration": The cessation of utilization operation which, if accomplished, would result in substantial economic harm or cost to the licensee. " Loss" of SNM: This terin refers to (1) a failure to measure or account for material, authorized to be possessed by the licensee,- by the material-control and accounting system approved for the facility and not confirmed stolen or diverted or (2) an accidental (i.e., unplanned) offsite release or dispersal of SNM known or suspected to be ten times greater than normal ~ operating losses for the time frame in question whether or not the release is seasured. The term " loss" implies that a search has been conducted to confirm the material loss. For fixed sites, this search should be conducted ~ within the one hour time frame of1 deportability. 1 5 18 1 l

• w

= ~__..o__1-_-h--

e I " Lost" versus " unaccounted for" re: transportation of material: The' term " lost" covers material that is no longer in the possession of the party authorized to possess it during a specific time period and a search for the material verifies this. " Unaccounted for" refers to material in transit which has not arrived at its delivery point four hours or more af ter the estimated arrival time. However, a search has not confirmed the material to be lost. Properly compensated: Measures including equipment, additional security

• personnel and specific procedures to assure that the effectiveness of the security system is not reduced by failure or other contingencies affecting the operation of the security related equipment or structures.

Safeguards events: Any incident representing an attempted, threatened, or actual breach of the safeguards system or reduction of the operational effectiveness of that system. Safeguards Event Log: This term refers to a compilation of log entries for the events described under Section II of Appendix G to 10 CFR Part 73. Entries must include date and time of event, summary description of event, and action taken. For repeated events, the date and time should be recorded, however, the summary and action taken need only reference the initial event of the series of identical events. The active " safe-guards event log" is not required to be maintained in one location onsite. Its format may be typed or handwritten as long as it is legible and reproducible. Entries in a " safeguards event log" submitted to the NRC need not be in time sequential order. Safeguards system: The equipment, personnel, and procedures that comprime the physical protection program necessary to meet Part 73 requirements. l Significant physical damage: Physical damage to the extent that the facility. equipment, transport, or fuel cannot perform its normal func-tion (as applied to a power reactor, a facility possessing SSNM or its 19 .x

equipment, carrier equipment transporting nuclear fuel or spent nuclear fuel, or to'th.e nuclear fuel or spent nuclear fuel a facility or carrier possesses). Tampering: When used in conjunction with Appendix G to 10 CFR Part 73 only, aitering for improper purposes or in an improper manner. Theft of SNM: The unauthorized taking of SNM for. unauthorized use. Unauthorized person: Any unescorted individual in an area to which the individual is not authorized unescorted access. l s 20

'J-t i APPENDIX 8 SAMPLE OF LOG ENTRIES FOR 10 CFR 73.71(c) EVENTS Safeguards events reportable under S 73.71(c) need only be logged within 24 hours of their discovery. The copy of the log items (i.e., photocopy),- submitted to the NRC every 3 months does not have to be typewritten, but must be legible. The following log-items are-samples only and should not l be considered all-inclusive. ~ l [ LOG ENTRY EVENT DATE/TJME DATE/ TIME EVENT

RESPONSE

h 1. 1-8-86/0140 1-8-86/0130 CAS operator received Area search initiated telephonic bomb threat at 0135 hrs, com from unidentified male. pleted 0140 hrs, Bomb reported near nothing found. diesel generator. u 2. 1-8-86/1245 1-8-86/1043 Penetration path . Guard posted at through culvert dis-1050 hrs, PA covered under PA fence,. searched, and cul-- { zone #4, by security vert secured by grill patrol, no VA alarms by maintenance at received. 1230 hrs. 3. 1-9-86/1509 1-9-86/1433 Card reader failure at Guard posted at ~ VA portal #2. 1440 hrs, with cur-rent access list. System failure cor-rected and opera-tional at 1600 hrs. 4. 1-9-86/1815 1-9-86/1730 I.D. badge #342 lost Badge cancelled onsite. 1732 hrs.- Badge found on employee's jacket at 1745 hrs.' i 5. 1-9-86/2055 1-9-86/2025 Security system failure, Oetermined caused single CPU outage. by electrical storm /J y L power surge. System { back on line at 2028 hrs. All VA portals confirmed locked and alarmed by security. i I 21 ) ___m:_= --_ = 2

LOG ENTRY EVENT DATE/ TIME DATE/ TIME EVENT

RESPONSE

6. 1-11-86/1035 1-11-86/1025 Perimeter fence alarm Area search initiated received zone #4. by security patrol at 1028 hrs. Completed 1033. Apparent cause of alarm-flock of geese grazing in area. 7. 1-11-86/1610 1-11-86/1443 CCTV failure, perimeter Security patrol in zone #2 (IDS opera-place 1450 hrs. No i tional). alarms received. 1 Camera replaced and operational at 1610. 8. 1-12-86/2015 1-12-86/2007 See #5 above. Same as #5 above. System on-line at 2011 hrs. l' 9. 1-12-86/2240 1-12-86/2230 VA portal #6 found Area searched, no closed but unlocked by abnormalities found, i security patrol, door door locked and alarm alarm operational, operational 2235 hrs. l 1 22

VALUE/ IMPACT STATEMENT ' A separate value/ impact statement has not been prepared for this regula-tory guide. The guide was revised to provide guidance on reporting of physical security events in accordance with paragraphs 73.71(a) through (c) of 10 CFR Part 73. A regulatory analysis statement prepared for these proposed revisions to S 73.71 was made available in the NRC Public Document Room at the time of their publication (August 27, 1985--50 FR 34708). This analysis is also appro-l priate for this regulatory guide. I I l l l I i i i l l l l 23 l

.l 1 0 4 l i j l i l I i i I i \\ ~ 4 l ATTACHMENT 3 i Regulatory Aralysis 1 e 1 I I I l

e REGULATORY ANALYSIS 1. ACTION 1.1 Description The Commission is revising 10 CFR Part 73 to clarify and improve the reporting requirements for safeguards events. This effort includes conforming amendments to 10 CFR Parts 70, 72, 73 and 74. s

1. 2 Background of and Need for Proposed Action In 1973,.the Commission established' safeguards reporting requirements in order to be kept informed of events potentially inimical to public health and safety. These requirements solicited specific reports of unaccounted for ship-ments, incidents and attempts of theft or unlawful diversion of special nuclear material, or incidents and attempts of sabotage.

It was determined, however', at a later date, that the Commission " required reports of events that represent ,a loss of safeguards capability or are indicative of an overall plan to commit an act of theft or sabotage. The Commission was concerned that a substantial safety hazard could occur as a result of a deficiency in the safeguards system. In response to this concern, an amendment to 10 CFR S 73.71 was proposed in October 1979 (44 FR 60743) requiring reports of events threatening or lessening i the effectiveness of the safeguards system. This amendment was published in January 1981'(46 FR 4858) as a new paragraph (c) to S 73.71. The purpose of paragraph (c) is to provide information concerning security system failures whereby the NRC could identify recurrent safeguards problems and generic issues. The intention is to keep pertinent NRC Offices informed of problems at facil-I ities so that security problems can be identified and eliminated. Since the promulgation of S 73.71, licensees have commented that the reporting requirements are confusing. This has led to inconsistencies in what-is reported and the level of detail provided. Without some level of uniformity and detail, the usefulness of such reports is limited because an adequate data base cannot be established for generic analysis. To reduce this confusion, the NRC is promulgating revisions to S 73.71 along with conforming amendments to 1 4

1 l e s 1 i l SS 70.52, 72.52, 73.67, and 74.11 and issuing a revised regulatory guide (5.62) to assist licensees in determining what should be reported and to provide a fermat for doing so.

1. 3 Value Imoact of Action l

j

1. 3.1 NRC Ocerations l

The revisions and associated guidance will facilitate analysis of safe-guard 3 events by requiring standardized reporting and will improve analysis of such events by requiring more pertinent data to be reported. While there will f be a substantial decrease (80%) in the number of telephonic and written follow-up reports, NRC costs will increase because of the time required to analyze entries in the quarterly-submitted log. Based upon inspection of previous annual data, G00 safeguards events are made to the NRC annually via telephone and i require written fcllow-up reports. The estimate that an 80% decrease in these reports will occur is based upon the inspection of actual data. No impact to resources for NRC inspection of the program is anticipated. l Current NRC Costs Are Estimated To Be: Documenting and analyzing reports (600 telephonic reports /yr/0.5 hr/ report x $60/hr) + (600 written reports /yr x 3 hrs / report x $60/hr)...$126K NRC Costs After Rule Revisions Are Estimated To Be: Assuming an 80% reduction in telephonic and written reporting and the added requirement of log analysis (120 telephonic reports /yr/ 0.5 hr/ report x $60/hr) + (120 written reports /yr x 6 hrs / report x $60/hr) + (12,180 log entries */yr/0.3 hr/ entry x $60/hr).......... $266K l Total increase............................................. $140K

• This number represents the events that were previously required to be " recorded" only (75 sites x 3 events / site /wk x 52 weeks) + the 80% of 600 events previously required to be reported within 1 hour that are now required to be logged only

= 11,700 + 480 = 12,180. 2 c

1.3.2 Industry Operations l The revisions to 10 CFR 73.71 are expected.to reduce the burden en licensees due to the reduction in telephonic and written reports notwithstanding an increase in written report content and the required quarterly log submittal. Current Cost to the Industry Assuming 600 reports made to the NRC industry-wide on an ' annual basis pursuant to S 73.71. Telephonic Reports I i Assuming 1 hr/ report x 600 reports x $60/hr j Industry Cost / year........................................ .$36K i Written Reoorts I Assuning 24 hours / report x 600 reports x $60/ hour Industry Cost / year............... 5864K 1 Log Entries l l Assuming 0.3 hr/ event x 600 events x $60/hr I nd u s try C o s t/y e a r........................................ $10.8K i " Recorded" Entries l . Assuming 75 sites average 3 events per week that are " recorded" pursuant to S 73.71 but not " legged" in the Safeguards Event Log, l 0.3 br/ event x 11,700 events x $60/hr i Industry Cost / year........................................ $210.6K -i Total Industry Cost / year....................................... $1121.4K i i l l 3

e I New Estimated Costs to the Industry Telephonic Reports Assuming an 80% reduction in telephonic reports. based upon inspection of actual data,1 hr/ report x 120 reports x $60/hr. I ndu s t ry C o s t/y ea r.............................................. $ 7. 2 K Written Reports i Assuming an 80% reduction in telephonic reports based upon f m inspection of actual data and 32 hrs / report, 32 hrs / report x'120 l reports x $60/hr- -l t I ndIJs t ry Co s t/ye a r.............................................. $230. 4K Log Entries Assuming 75 sites average 3 events / week and 80% of previously telephonically reported events (48'1) are logged, (11,700 + 480) J events x 0.3 hour event x $60./ hour l Industry Cost / year............................... .............. $219.2K Reproduction of Log i Assuming 5-log entries /page and 12,180 log entries yields 2,436 pages, reproduction costs of $.05/page, and'.001 hr/page for clerical support at $19/hr. (2,436 pages x_$.05/page) +-(2,436 pages x.001 hr/page x $19/hr) i I nd u s t ry C o s t s /y e a r............................................ $.17K Total Irdustry Cost................................................. $457K I Annual Decrease to Industry.................... $664.4K-1.3.3 Other Government Agencies The action is not expected to affect other-government agencies. 4 ~ _, ~l ~~

f 1.3.4 The Public The benefit to the public is reduced cost and better protection of nuclear power facilities because the NRC's ability to assess generic short-comings of security systems and thereby recommend or initiate improvement is increased.

1. 4 Decision on Proposed Action The benefit to be derived from this action is (1) a reduction in burden to the industry and (2) a more uniform and detailed data analysis system which will provide feedback to the industry for improving their safeguards systems.

The alternative to rulemaking considered by the staff was to revise existing guidance'in the areas of events to be reported and necessary content of written reports. Since the main problem stems from the regulation itself tne most appropriate solution is rule revision. 2. STATUTORY CONSIDERATIONS 2.1 NRC Authority The Atomic Energy Act of 1954, as amended, Section 161(B) provides author-ity for the Commission to prescribe regulations designed to protect the public health and minimize danger, to life or property.

2. 2 Need for Environmental Assessment This proposed rule is the type of action. described in categorical exclusion 10 CFR 51.55(c)(3).

Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this proposed rule. 2.3 Relationship to Other Existing or Proposed Regulations These regulations have been developed to be consistent and compatible with the prese.it safety event reporting requirements for power reactors (10 CFR 50.72 and 50.73) and to establish a comparable level for licensees authorized to uti-lize or possess SNM. Evolving proposed NRC regulations have been considered to the extent practicable. 5

ATTACHMENT 4 Draft Public Announcement i i i l

J l NRC APENDS REPORTING REQUIREMENTS FOR SAFEGUARDS EVENTS 1 The Nuclear Regulatory Commission is hmending its regulations to clarify requirements which govern the reporting of safeguards events--incidents involv-irg the physical security of certain licensed nuclear facilities and activities. The purpose of these reports is to keep the NRC informed of incidents which l potentially could endanger the public health and safety. They also provide an information base which is useful in identifying and analyzing pnysical security problems which may be corrmon to more than one facility or activity. As amended, licensees are required to report to the NRC by telephone and within one hour, significant events such as the theft of special nuclear material, acts of destruction against nuclear material and facilities, and the failure of major physical security systems. Written follow-up reports are required to be { submitted to the NRC within 30 days. Less significant events are required to ) be recorded in a licensee event log and copies of the log provided to the NRC every three months. The former requirement that safeguards evert be reported to the NRC by telephone within 24 hours with written follow-up reports to be submitted within five days has been dropped. In addition to the amended changes in reporting times, a new format for the reports is being adopted. Use of the format will standardize reports from different licensees and will improve the cuantity and quality of information invailable to the NRC-Implementation of the amendment is anticipated to result in an annual cost decrease to the nuclear industry of $665K. i 1

l 1 i l i ) i l i 1 l 1 l l l 1 i I k i s I l 1 l l ..I i 1 l l ATTACHMENT 5 .\\ \\ Draft Congressional Letter I 1 1 l l l l l l \\ l l l

DRAFT CONGRESSIONAL LETTER

Dear Mr. Chairman:

l Enclosed for your information is a copy of amendments to 10 CFR Parts 70, 72, 73, and 74 which are to be published in the Federal Register. The Nuclear Regulatory Commission is amending its regulations to clarify and l improve the safeguards event reporting system. The safeguards event reporting 1 system assures prompt notification of safeguards related emergencies to the NPC so that appropriate action and response can be taken. The system is also used to identify and characterize ceneric and facility scecific precursors to events that can be utilized to preempt similar events in tha future. The revisions will help the_NRC establish a better data base for studying safe-guards issues, decrease the licensee's reporting burden (number of reports made to the NRC) and decrease the licensee's cost for meeting the requirements. l-Concurrent with the issuance of the amendments, the NRC staff is issuing a revision to the companion Regulatory Guide. Tbe amendments and the Regu-latory Guide have undergone public. comment periods of 120 and 90 days, respectively. l Sincerely,

Enclosure:

1. Federal Pegister Notice

2. Revised Regulatory Guide i

l

} 1 i. 1 ATTACHMENT 6 Draft Daily Staff Notes Itein i l 1 I-I J i l i i l i i I l

DAILY STAFF NOTES OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS Final Rule Signed by E00 On 1986, the Executive Director for Operations approved amendments 10 CFR Part 73, " Physical Protection of Plants and Materials" to improve the clarity and effectiveness of the requirements for the repor, ting of j safeguards events of 5 73.71. The final rule also contains ccnforming amendments to 10 CFR Parts 70, 72, 73 and 74. This constitutes notice to the Commission that, in accordance with the rulemaking authority delegated to the EDO, the EDO has signed this final rule ano proposes to forward it on to the Office o'f the Federal Register for publication, unless otherwise directed by tha Commission. e e e 1 1 i l 2

ATTACHMENT 7 FRN - Proposed Rulemaking i l l-l ~ l l l l l i I I i l 1 DRAFT 03/16/87 1 10 CFR 73,71 ATTACH 7

.se,ve \\ roostas nesister / Vos. 3a Nc l86 / T"'A".Y. An=a =t-27. 1985 / Proposed Rules i . IsytJe5 Casemendes cfdesAsseen, bde se,het asseremos of somehlendes ma M dah been form le) As esaployee who has destined the sense:he given unless comments are j *, ~ apdeselheuramos may electitif(1)at reesived aan er bedsee this date,

• is anhed.Per thses reasses-J the dada = la losposing cissitytag

) least1yearhas eQaed elass tme Aeonsessa:Sead essensets to: deandmaats to 18 CFR fa.sa, # esec.;e esecdnisorherlast someteryatthe - u.s. e rs.arfs31.=drusandsomme destiendes er weieur. and (I) he er she Noaiser Angulatery v' t twieed guidasse as asetet tia===== let ammishes udsissamry ev6 deems et Wadingeon DCJ.ssag, Attientsam dwtousWeg wheek events shouldbe 7 j laserebibly. + Denkeling and Serviam BranclL Deliver repermd aseensets ter Rosen 112*.1717 H3:reet t doing se.. sed.g poetje a hrenn g i pAnysyS ADef71Cr1AL.QPTICou.1, NW., Weekingsam, DC, boemeen mis am. ' For clarity, the distimadas between as andseepz. " === a w-as tarest has asan 4.sygpegufWICE E=am4mm masarmants reslved and time _' la es esecetpeans sJapostaliis?' T um ^^ W.new moda - 4.In erzang,paragrsph(aX1)is regulatory andyeis et: De NitC Pehile . rwined to end as folle '" Dosament Room.1717 H $1nset NW.. .esa no afmalerand Washingsma.DC. Jeederstelessas boas aikaineted I ors. ass causeasene et messessen. ' pas namesa assomsaisna contracn b the deesdpdoms af ansk { ,g,end (a (1) n earplayee wbs ha se e)de.A,s.mse,s.s declined Jmph Tarhas(301)42P-cosoor h De b ere:h of -- esme Passa.a Dw,.r. m-<m, -u me<rnemset-m u sw aient itl'10 et least 2 year has elepen,g RasenerRegalatoryRageitumana "=='W sad undetected acuses* seems se stessive deu dhis whrelast Seeden.Deviales o(*- # OSee and "fsDeres that degrade the dad;anden er w'dver. and (if) he er she sil%siner Material Safety and efectNamens d the sysema.* beats that hahhes sencias.tarv evidence et laearstniEty.. ~ ' Salsesenia, U.S. Nacieer Regelstery meet be reported are deserthed is a new Comas' sedan Washington,DCacess. Appendix G to Part 73. suestasswraay susonenanose to CFR Deprimaryimpoetof therevised ' (FR Dee,as meanFusd m ens emI 7331 establish.4a na evest reporttag reporting mgetremsats as Hoensees wGt programtoinfans em casumisesos et . be as appredmets aos dearesse in the - ~' safeguards events to pennit thnely samber of telephealsand wettaa... _,espense a in u.a.. De data han dde repons to na NRCbessessthe tweepi NUCt EAR MTORY eporting pregram allowe the iserhear andSenuesand connessloss r'%== dad== to deterndna the anseeisted writtes report =dg='a== of events to Identify requirementhas been delewd.nle to cpn parts 70,72.73, and 74 possible generic problems la safeguards agutenant can be daistad boonase the s

systems, revised requirements wtB ensure that aR chenpas as safeguares Maportang paragraphs (a) and (b) of I 7str(wer,'

dvets %.J=e===a Ha'a NRC i Rogueremensa.3 - Bret pebnebed in December 1873 (3s FR. response win be repor:ad within ene AccecnNuclearRegulatory 35co).nsy reqube reports of hour and those partenget toNRC Co===d==a" unaconensed for shipments gQ analymas acerides wiu be legged for Acnose proposed ruta. anclaer materil. Incidents or attempts quartarfy sehmitsal. of theft er enlawful diversion of special N regarements of I 7231 are anclear instastal, and incidents er ' he euansasmh Naciaar Regulatcry conshtest with those of El 5032 red .gg,,pg, og k-'~ Schsequeady. t 3012. Events reported under il 30 1 Coaunission propsees to amend its Comemismos deteninised that a also'.;,a and 50:2 are safety. oriented la natme: mguladens for the spor *'ng of nis eventa.De proposedfs!*. O headed twports of remets wblairimaid be ' those reportd under i 7331 are . h83*'IE 88 NPening myQnants,. capshiBty or cinumstances widch assid F-edicottverdaleen af safeguards % security. oriented. Proposed changes to g,NR Hassenge and would apnym,, bequitaf erevaittaja.5asmadteh l 73.71 do not alter somentmasta made t.. e g salesnaras eyest dam'bes in response to the requirements of Part mquirint asm madena safegeseds w@ent...iilt achet ar'sabMagn, la response to Jupons. who win be afected thsha=6=Qin osacern that a

30. Evene of a deal nature having both safety and safeguards impact do not 2

.am power and soapowermactors. feet i substantial public ha-d could occer s'

• require dep;1cate reports. Icluansties on s

'F*I* I*881 'I*s. and some transporters. . a reemit of a danclea' cy la a given how to report events of a dual astere is Haansee's adegentds progren, an Miwm+oclearmeterialTheNRCnses the,,... s.fsnandjanettetoCFF7sFniiis.4.e9;...nis psoposedrida=== ,i amporters of sp=cial. 'a: - - .Ympanalindennades to respaul to r @ gag,,q,,liOc mbisssiP9p4 FR e'yg) contains codcendag amendamata. ta to a ,,,,,,,,, d ivests that CFR 7c.32. 72.52,71s. and 74.11 to Incidaam and to identify poteadaRy , threateenertata nacisanceivities iig - provide further consistency among .d' .,/,. goalesmenis pubiams.no lessens the efecovenese of a . te ha sterised boda this estion. sysseuL7his amendmentivssy=k i.k a sporung a.c.i _ ts. 4.= . " ** *Ih'i'*8s*,,' r:d ' ha Jaanary sset (48 FR ease)luiSaal n, twn.a..saa received a petttien ,~ .b

• forrulanaking assigned Doeket No.N 4h W resultla.afpaiScunt form, sa a new paragre;th (c) to I 74.71. ' pRM 30 3s from 2e Nuciant Utiuty andhs.2.

islosir:the pro den et20 CFR.. Bacidttting and Refona Croup. 7331.the NRC~dmal q and a saem h and siseniied fosed1hatth's (NUBARC). As discussed below, this Mwiu 38"'

• 87e8"',-

regadreassess am buquentfra proposed rule would grant a portion of

• 88 t* 683 minismerpreted, that reports sekiid6ed the penuen.De petuocer has

. imag, g, "" 7 .persuems as the regulamaaleck :... - =. a Sebu.tt somewa

... udfeanity, and that insefBaiset dated is requested that the Nuclear Regulatory

\\' -8 ~ */. -[;te wul be ca==W==ed ifit is procacal**. Ca==e== mc=ta by Nov esperend !sr NRC analysis. Unless these Commission annand to CPR so.54(p): -I 50.54(q) so.15(e): So.as(b):3DJX(a); part .j tad narah probi no== be _..c / n Sa. Apper itx r. seeson 73.7u and *e-J. /./ -[a usefulases of these mpons la developing Comnussios's NUREC's sa Standard i h O 4 ..h

s rederal Register / vol. so, No. tes / Tae. der N " zr, tags / % M nalee -se. c Speci6cstions with respectle year to 2:17.330 per year.er a met .I = estata reporttag requirements.'The decrease of ever es percent. nis is des, ,, regetroneses. Secutty ~ . swebers of this use. - to the deoensein the number dreports-Je c m Phrt n meesmes. eensenatag er andser that mest be made er submitted by powermaceses used the adested na==maan h costs to the NRC Amosaittas. Material control an.d' et ' __ ;,end e Bosenes by w15 dessene frees the cessat cost of acceenting. Nuclear metadals. Penalty, the NRC UtIBdes 3cossed by tbsNBC 372.000 per year to Satano per year. se a R8 Porting and recordkeerdag ~ to operate oudserpowerreactose are not domesse of 35 his is des to 4- - ~ SPecial anclear meterial. - earready sablest le a variety of the redomiesin sad wettien For the reasses set estla the separeeg ts in aaaaaat== reports whid wGremnitisless thee presable end under the authority of the ... web andvities.N petitlemer. spent by the NRCla desensedag and AteadeEnergy Act ofinst as amende4. ausgeste that the melority of these analystes the==k=*=ta .the Energy clos Act af tert repardag requirements are valid and the perpees they serve festiSes the Regulatory FleziWty M as==adad 8 U.S.C. 553,notles is , tensidershie thee which mest be herebygiven that adoption of the .. dovesesLas seesties thest How=ver. Saeedon theinfamaades avadable at faaewtag' amendments to to CFRPerm c, some of ihmee requeireamste are. in the tids stage of b relaanking proceeding 70.12. y3. and y4 la contemplated.. ogdsJes of the and is.ne,rdamos with the Reedemry er depilenove.poetioner, excomette and/.

• hdhGity Act of1sso. 3 USC, son (b).

PART 7U.-00idESTIC UCENSDNR of' ,~ Aamurdiasir. the $ t a.a hereby amese thatif spec Auset. san asArensAL .a, 84 P'emelestad, this reis wtB not how a . r- "#88 8 leiraments, la sientBeant scenecede impact open a " t %e aethedty citaties for Part 70 le PRM so-as"is erder to promote moresubstandal smaber of seina andties asd revised to read asinnews: eSeiset see oflicensee time and should result 3 a;edesdanin borda w ^"* d'y: Seas.n.m sa.sas.in as ressueen.%is aEscted hwOa Some tre88podars* stat se"e, ask sea, sea, as4. as amended, ,es,e,s,e.,, Y,,,,e,arnkma! ring imp me, a Stat. eed, as amended 4 ,g, mg 4, spe.orters, and apartere of stratas"iai ear - a - d - sera,asm.mr.m.s.ama se(u USC ,s.,

,e,,e as,an me.

,m.,,e spent feel may be afected by this mia. .m m. m-se Assesdammt wie to GR 71.71.In & someten, the pettaioner enggests that this Each year out of appredmately eco amended.1244. szat saas tu usc. ases. sea sets seesk res= lade be amended to provide that nportal evam, abom h come h secdes 27 Was ineend ender Feb.1,.s, the regelred written sports be & groep whid inciada maaB entnes, aos, ses. ta, a samt an (a UAC.Essk embedtted by the licennee within 30 daya h NRClavum comments hom thme S**888 N34sI '3 l"seemes mas. d e derase of initial nonacetion rether than withis ?""I**' stat, ses (4 U M 2:stk aler 15 days. According to the petidoner, this N "NPosed 4 alw afects

• teseed ender eer std. Pah.L es arr, as sist, r

would aHow the licensee's staf more IIcenases who operate nuclear pcwer . al t,eeed ieder k seanses fo as and m44, 475(42 UM arr une darms the crsecal period plants and fuel facilities under to CFR ec.tas, as stat and, as ,i===diately foUcwing such occurece Paes 50 and 73.The companies that issued ender esca. tat sa es Stat. Saa (c amended (42 UAC.2 sek secess Fem ahe to devote to the resolution of the own these plants and facnlities do not UE me. 223rk Secties 755 aise lessed problem itmif and would +=4*= fa3 within the scope of the densition of amler sec. m as Stat 25. as amended (c interference with daily operatona.m "n.au eattes* set ford In secuan th=4alon agrees that it is desarable to 605(b) of the Regulatory Flexibility Act yajr of

c. m. as sat. sea, as

' extend this partcular report.ng period of 1980, or within the deAnidea of Smaa amaded (c UM =rst ii ms.rc.1s(et from 13 to 30 days and has included - Businame Size Standards set out in m:-(ck mm:(ak (bk(dHkk ?n:4(al and . provisions to do no in this proposed regulations isesed by the Sean Business m sgaMal,(sk (al,(dk and gl. mas, mas ( r=1== = *f -. Administration L113 Q1_, pert 121...,... m(b) and (ek molek mu (a) and (ck 2s.ae. ,e.. - M.... (a are hemedender um,1mb, as sun, sea . m-E.--i ~11mpaz Categorical Ust of Sebjects

.g_,.g.. Mlr rwi-a n.

.; _ g. g amended (c UM 2arubJk ii rar.mame M Cm pm t 2 (*k *ad (dk rnant (ck and(ek mzuck s.the NRC hu determined that this Hazardous matarM. - ' mas (bk m32[a)(sk lek (dk tek and (sk faas, proposed rula is the type of acdon oon. .. donathed la cateverical +~ m. Nuclearsetsriala Packasms and nsucHak mse, ms(b) and(dk masteh (s)(3) and (hMD are teemed sede see. sa:L es CIR SL22(c)(31.Therefers neither and.contahnaa.Pannity.Radianon - - s.- siat. sea, as amended (4a UM mouck and emetreamental hapact statementnor an prmacdon. % ud"' * ~~ ~~'..f.' Ii maob (d)and (el, mas mst (bl and Ok savtr===a'ai=======.* has been - i"8 "T"I'***"I'*... ms2. maa, m.ss, mas man (sM4k (kk and ~ Sci'82888 84*f 8888 S* cunt 7 25888838' pk maa. and maa(b) and tel are loseed prepared for this proposed rats. P under we. sata, as stat. set as --a (e: Special ancieer material

1. a*Inr*= Statement um :mygojj,

?* Dh proposed mia amends a Cm par'tn ' 2. Sect!an ms2 is revised to read as' ' '~ -. O 'T.'/ ". Infortnaties c.mEacdos requirements that Manpower tuining prestams. Nuclear. mm 4rv emblect tok the Peperweek Radecdos matarials. Cacupational safety and Act edisso(44 USC.3501 et seq.t nis health. Reparang and scordkaepin(g -'hs.sa h,orie et seendened arencesry er - lose er swr er setempeant trovt et apasial sale has been embattted to the oeime of6- -sta. Security maeores. Spent nummer emanes. - W% mt and Bedset for review and f**L Ef- - (a) Each t!cannes shad notify the NRC . epproval of ttm perrwerk - rapdresunta. .'aw Tl" '"S #:~~'~'. Operations Center !!stec,in ep-* A of Part 73 of h chapter within one hour R*851888ty ^*alrei8 Hazardous materhi-2=_--ta tion. after discovery of any esa of accidental - ne costs to todastry wiD decream ! corporation by referenc.a. Neclear - materials. Nuclear power plants and criticality or any loss. other than norinal from the curant cost of 3r7:.000 per usetore. Penalty. Reporung and. mafartat operstins loss. of special nuclear e

, g Federei Register / Vel. 30. No.186 /hienday. Aagnet 71.1985 / ;bs --i Ru!as -

l a ~ s = (b)Each Essesse whoposeneses one E=, , Naem=h System is accordance with the prtreisions of D** 8'** ar men, of castained wumbs.e438, lamparative or maavailable. the Ucenoes I 73J1 of this part, wanisse. ass, or W shat monfy,, shna make the requirmi andScattne via the?cK:Operstems CasearNotedin commercial telephamic service or ant

3. Seedon n?! is ruebed ta red sa

- Ap.A Aef Faty5 elele shapest other dedicated sal =#eic systma or fogaw. wasesehearseerdieneveryof any say other method thet wtB emmre that a ..T., 52. ,go,,,, cen n salewf.1 d! vers'.xs of tsportis received by:ba NRC I7171 men-e et smassansend anc ,,,,g,,g rmonedal whkh ear Opersuons Cameer

• witida one heer.

'"*"*"***"*""8""***** Ecossesis asensed to poseems er any De azampdas alIy3 21(gX3) appues to " 8"8 ""' *weres nones. Y' imendsatla unich as attempthas been an telephamic rgarts requesd by this. (aX1) Eachliemasse subject to the - ~'" made orhbanned to haw been made seeden. .proveniecA eIll 3.28. M.tE 73.F(C). b;.~. to esamit a esA er unlawfai diversion (c)Raports required under 1ys#1 "L37.138f*l or MM(ghheHasetty the Y' of such assadeL need not be dnpucated andar:he NRC Operstiane Center wttida manJnou (c)nis andScesos mast be mada to e of thie sectico, aAer @ -, of the loss any / the lecOpsadame Canser via the. ahle==e f SNhd er a fusk and Y .h"L. Fas,gencyNoel6sedes Systems if the FAffr/3-PHY53 CAL PMOTICTION OF witida age hour aner recr'ery of er o naamses le party to that rystess. I! the PLOf75 Ale MATERIALS aceta=*aM y for such lost shipment. t ,e Emmysmsy Neuacedos Sysemmis Inspasattee er uneve11abia. the hommees 1.no se&arHy ci or to Cm (2) Die ase8cetion mest be made to 5 - shna male the regetrod modSention via Perus la mMaed to med as foums tLe NRC Operations Center Heted in esmanarcial telopeanic servks er other Aashes.rr: Sam. 81 tes as sist am su as Appendta A elPart n of this chaptar .;- dedlasted telephanic systems or ecy namaded me.Sar se saat rue tu ur via b Emergency NodDention System. othermeshed that will moeure det a airs. Itsr. zartt ass. art as sees 2243, as if the tiesasse is party to that nyemes. If ." ~ reyestisrussived by the NRC m an aSmttan(tzUAC the Emergency NodScauca Syv an is a inoperseve or ansvanabk. de Bosasee .= Operusses Centar

• wtttda one hoer.

3,, ",, krs.sms dee ided under see, shan maks the required nocScotlan via

• The exempeias d I n.22(gX3) appues to

.an tanspbmets reporm required by this set.Pah.L m, ass, os sist.rse km UAC comunercial teiedsonic servtos or other ,e-somse. -- sea soul. dediceted telephonic systsee er say Per the pwpoems of see. 2:s. as saat. saa, se other method that wC1 ensure that a (d) Reports regidred under j 7171 ammaded (42 USC 22?st il FL2L,*L27(ak report is recetsed by the NRC D need aat b4 dupticated under the' riss are tasued under ans. seth, as StaL Ms. Operseans Caster 2 withis one hear. regarvanna of tids section. as amended (4:U.s c. =ottbn:11 rta PART73--Ocnts1NG r3.24 72..s. 72.:s. 72.F. 73.27 rsen ries. ne uomption of I n.22tsXsi appties to rs.et ts.m is.ss. rist en teamed andar sec au tdephonkp required by this REQU1AEMENTS FOR THE STORAGE isti, as Stat een s.s===M (42 UAC ,,,3,,, C-CF SPENT NEL AT AH INOEP'ENDENT mS1) and il 73.23(entL rsJ44ptsL tpNRC, maintain an open and& h M PENT FUE15TORACE 71mbM31 Ntel, and SXek 72.2 laj and (bk e INSTALuTION rsJrtfk rteo (b) and IdL 73.44 (glio) and coctiaucus ennenmications cha:mel (hX2hriso(sX t(31[IL)(31andthL with the NRC Operstians Ceter. 1.The eetherity citadon far Part n la 7138(hL*L and (4XLi!XBl 73.m. 73.M. ?3.r: rmsed to read as fouaws: ' i**d under sec. tats, es stat sso, as (4) ne initial telephecic notSes tf on '"**d*d must be followed vrtthin a per'od cf A hwy seca. st. t:s. 57.11 ca, ss. se. st. thirty (30) days by a wntt.m report .r.p ist te..as.us. isr.us, as sut. sm s3o,

2. In i 73s. paragraphs (e)(3)(vil) and sub:r.ined to the U.S Nuclear 88L 82. s34 33a. Mt. 353. 24. tsk as

-i.- s C.J." aW sec.24. at Stat. 444 as amended I.2)(3)(lU) are rettsed to ised as fodows: Regulatory r% -h-don, Document M., (42 USC. Ert. 23*3. 2I'r,2EL 2es. 20es. - l 718y 1.aconses ftzed ses and IMranset Control Desk. Washington. DC 25I3. ' 388< tut 3DL *227. :=2. 2:34 2:st 2=tr. towenents W me phyenemi prwesceen W %e licensee shad 61so embmit one copy 23s. 2:Ettrsec. Ef4 ?3 Stat. set, as===d=.4 messauf masteer nessanal of mooerste and - each to the ante NRC Regind - as UAC mett som.an. as ananded. sos. 1** *"***988 8'9a***a**. . O!Eco Estedin Appenchx A to this part ., 3 ma, as Sant.u42. as amended.1:44.:ses (u and if applicable the appropnate NRC

. $ UIC satt sang, seeg,ec.101 Pub L sk Residaat fr?--+v.

fp tan 83 Stat ma. as asseded W UAC.estk N.*.*.s 4 Sousam r.a.".s also usued ender Peh. L mb. (5) Ya>=a'supplemsstal -- # ' -- 8DL ove. se, a Sest, ast (43 USC sent)., -(vtil Notify the ?GC Operstions Yv.- information whhh becomes avedlable Qg g gg

Cantar within one hour aAar the ' '%... aner the inadal W aco8eedan m '

the NRC Operatiana Cantar cr ther the cEacomy d the lose of the nWpment - fouews: :. .' L J,.--- and withan one haar anarrecowy of ec. subminalan af the written report suust be f7ts: neomre.av a,se.,og,,ma.,a,,,, accountabnity for such lost shipoent la tWephonicaDy reported to the NRC I'** *essed aumaner meseneL accordance with & provisions of Operations Centarlisted in Appendix A,- i (a) Each licensee shan notzfy'ia NRC i nn d its part. of Part n of this chapter and also t '

• Operations Center listed in Appendix A submitted in a revised wtittaa report to #

.of Part n,o(this chaptar withis esa hour -* the Rasianal OtBas, the Docament -'w J$, (2) * * * -9 Covtroe Denk and !!appuesW the i

g. of +1.,, g u u

,,=I encaDry on-(3 '

• _*

- - 4'- . C y anyim og,pecial nuclast masseint m.r. appropriate Rasident inspecer. Errors a (lif) Ca.aduct inunediataly a trace p [NRC Operettone Center via tEeT' is seeScotlan must be made to tavastigation of any sh4 ment that is *.ast ' - *=n;;e4 la a wtitten report taast he conweted la a revised report. The ~ or unaccounted for aAar the estimatad .iot15catico Systemif the arrtvui time and not!!y the NRC revised report must rvplace the previous g.. 38 Per y le that systaan.If the Opostions Cantar wtdin one hour aner report: brefore. de update avet be & EC'**==sa an.st .,,,,i,,r.I en unc the discovery of h !oes of the ab4ceent ' complete entity and r.ot centain only r@plementary cr revised t=formatian

• • == c===r wau; ass. man, and within one hour after recovery of or Each !!ceasee shau meantala a copy el accountability for such lest shipfpent in h wntres report of an event submitted

~ s L

redaal negister / Vol. so. No. 2as / Tnesdah Ausint 2r, insa / Fwposed Rates m sg i Forilm pepeem af see.an.O Stut pa. as ,g,goesgen as a tomord Amr s' "', 4. A asw Appmodtz G is added to reed *msededicu.s4 st as foBows ram.weis doder sema.ieth and smL m i Addeum3**'8 he h dem d

• M Eseman stes. Es, ets5 as amended (4a U.14 Jet *bl.

l Appuedac a, o sugust. . pesumaan to $e gwieless of se CyR 7531 2am(4k and $$ Fus.7413, redra.ts me ' (bMS)2'=aimi==== sablest # 68 hined enen me. sata, se en est se - seisimmedM 73.2L 73.ar,faJE 7s38' pt esd (et asmose subfast to the seertaisse IJa, JuuB2ttshaB astify ths NBC ei sb OR 73.3175.F. nl.dg 7ss. 72.sh and - ammaded (4:UE EN1fe5

===cesarliseedis4M A star ahailrepamrumard,se appropnets.,, g % ym g g, f Pass 13dals chapear withis ans heer. e, g,g, tag,,gypes,ds e,mma.Lmese ar Asgaresd watds sue Asuraf IM fdeemmeqydthe sainguards seests dhasverdediswed AF 8 #8"8 N'" 574.11 neoermet lose er sist er " - acadendtapwagraphI.(aK1)of wasWeshWeydW ~ agespeed esR af speeW hueter asserten,. nepamEhr$tstids part, Ugangens la) Aay evens as widsk tNuo is desses ns (a) Each llamases who passesses,a, me,* dekaatothegrevisions of I 75.3, beten est a ywees nah== =admad er srum er msre of samtstand uranisc>tss. 127,393.2380 and uchBcensee

d. er enempt.d a samme er enese er g,,,g,g

,,i,, has made a cradade event to ser. met er wanism,233,or pistonhas sha3 nostfy ad abkst h ll 7ur ee NRC Opmedoes Canur Headin 4amdrpodenmenertheNRC, "$."A thsh w ambswed events of spedal g*,88"P"' APP ='d* ^ of 788',,wtaida me hourof disem t .c - e.g,m. ,ian er - 3peswammschmese witida ans hour naar gap menesesphydemidanese a eri ortheA or odraruniewfuldtwdos W sismoussyofthe safeguarda maa Assemy poseenstes ped er tas equisensus er spemal audsermaissialwhichit is, s Assesfhadamparagraphs ya)(21 (3),(b). samte gesment samspertens sudmar test er Bosased to poseses, or any tacideasdn and fatatmyp.m o as tids part. spam moeteer imeL at to the andeer esel er . which an anampt has been made to (WhtsameScadas mast be made bs span =-da-sent a lasdier er amater~ osuusit a thaa m uniswful diversion of naos,densm a nn S r.gid,. m.sa, g P"p') mons =hierrepsien et asemal apareisen ef

• special soclear material.h passe,,mpho(s)(2). (s), (4), and (s) of tids fi'9"I'*""*" d*** **" P"I" " ',^ measured dhsi

( )(1)EmbBaensee subjactto tha memhun"ned esE ,,,,g pawnmammsafIl 73.at 72.sf. 73.sk 73.sa.. maskiner, v>= or emoois is:tedtus dlHerence.- - = ': D (b)This notiscation meet te made to j y-7ssaLandsmab Scanses possesstas

e. mmmysyms (b) Aar fausse of a safeenards eyetas er the NRC Operations Cater via the

$5Nh8 amesubject to il 73.sP(d), and disasemed seasehenet veteerstmater is a Zmergency NottScotias Sysamas if the Faste$ shallmatatnin a current los and eyeems the seeld allow ennesetsed er Wtheem8synards events described

• • d'""88d ***" *
• p'*h88ad *8e*-

Baenseeis party to that system. a paseymphs14a) and (b) of Appendix

• • "*3 *"*" *en contrened acame area.

If the Emergency Noti $ cation Syste4a I C to thispastwithin 24 hours of vnalarea.er tenspan k inWch pmpiar is inoperative or u:aavidlable,the P licensee shanmake the mqtdrsd ctiassvery thy allamsee employee or T[3 .p,,,,," tar refeguards evuot i.. notL*. cation via.caannectdal telephonic ,,,y seminerof thelleetsea's cortreet messerv for a perten service or other dedicated telephonic secast?ysugnafzatons.The Bcansf* shaE retais the log of events recorded used la des Appeedtz masas a menen etw. system or any other method that MR fl d dry or sonnasency pha er seewtry precadara.11 the paracular ensure that a wport la recalved by the under tido esction as a recced for thrseyears afhur the last satry is made te each, is spen e is a ee.faguanlie event ta mot desebod tia e pla a or NRC Operations Centar

• within one log, Everythree months, each licacneeproemdura, than a proper =apaa-tery hour,h axampdos of i 73.*.1(g)(3)

(2) mese meam a measure implemastad spplies to su telephonic reports requirvd shna sehuat to the NRC cepies of a3 '*'" 18 "* 'I ** "**8 8 ***"*7 . by due secdon. (c) Reports reqvtred urder i 73.71, enfaginando ownt tog entries n

• ~-

be or eve t. P"*n *dy abaitted. Esch Ecenew-vy achofi=los

c. ici As, o.ae.or d estene inroe,b.

o.ed not de do,1icated ondar the enefoe to the U S.Mac' ear Isagn1 story -ingered barriw(wbreer er ser se evenus requirements of this secdon.

• a
  • r.

. Commmandes. Docarset control Desk.' " ' psopacy asempanseenL).-m..w tib,, -- - Daud at Bethanda. Maryland & es day . Washingnes.DC mu and if apphenble' % 5.mmer a heteamrdsd wr:Mese Aser r... 'I ^"8"'" 18'8-andan6en'asdin gueremry losL - For the Nacisar Regulatary convenemier. ~ tha to NRC Resident L (a) Aay faume ei a an'ernarde sysias er (d) Licensee shall submit to the dissevered velasrohelty la a system thu. Jack W.Itani. r . Acrisit.secesrw Desessrforoperweem. Csamenssies b 30. day wdtten rep 6ets esmid eDew una=A-6-d er endeiaed f Q7 ,,,,,",,,, "",,,g,[

• t r(fit Doc.as.aoestFUad swas asc ans emf -

andespeesof the safeguards eventlos , ', entries togetred under the prodmans othis escena that are of a gemBty which 3,,,,,,,, g, og,g, y,,, wiy.,,,^ i mu.sse cosa none.as wdlparaitlegible.., m r and s,e. have been esimbushed. f i . (b) Amy scher fadure er a J. + .C processing.If the asdBly s-eyessa est ladeded in persgrepa n. (el of FAR48 CREDIT ADMINISTRATION. ambiess to I 54.73 of tids chepter. the. tin 88pPsedt* If the f*0are degrades the lasassee shan pavpass the written report aseso = ne et es yymem.- ,12 CFM Parts SC2,620,521 - ~ /

• *is MC Forms see and 3esA.If the,

"~ -= facdier la not subket to i %73 of this PARTT4 4AATERLA1.CCtm'tOL, AND Dise6crours of trWermt3eri cm Reports l cimpaw.the Hanosa shad not noe these A,CCOUNTING OF.SPECLA1. NUCLEAR to snarecdder. fanns boaihan prepar. ttu wntten Acamev:FartsCreitt Administratica.- repast la letter finmat. !n either case the 2.b authority diation forPart 7: rupest asustinclude saf5citet condsnes to reed as foUowst ' " ~' acnost Proposed ruta. inimennesa for NRC analysis and M Amesdryt sacn.m.sr.tst.2 stim.es suanaAAmtt The Fans Credit ""3"""" II) Depilcate reports are not required Set, sm,23. sea,92 see,as ame.ded, ess AdmWatretion (W.A).by its Federsi for c'sents that are also reportable in

24. es Stat. 444 es emmedad(42 UE 10r3.

Farm Credit Board (FederalBeed), acceedance with !! 5tL7: and 50.73 of sorr. 2:st. ::ss. 2:ss. :tser seen. :or :ce. as publishes for temment pmposed new , stat tase.224s(42VMsetz.seest. j this chapter. e - - ' - - ^ ---L,________

Victor Stello, Jr. issuance (Attachtrent 4). Toe appropriate Congressional Committees will be notified (Attachment 5). A notice to the Commission that the EDO has signed this rule is attacNtd for inclusion in the next Daily Staff Notes (Attachment 6). ~ _Coordina tion: This rulemaking was coordinated with cognizant Offices prior to the NRC reorganization. The Office of the General Counsel has reviewed this rule package and concurs and the Offices of Administration, Analysis and Evaluation of Operational Data, Inspection and Enforcement, and Nuclear Reactor Regulation concur in these amencments. The Office of Public Affairs concurs in the public announcement. (Signed) Hugh L Thompson, x Hugh L. Thompson, Jr... Director i Office of Muclear Material Safety and Safeguards Attachments: 1. FR.*l Final Rulemaking 2. Revised R. G. S.62 3. Regulatory Analysis 4 Public Announcement 1 5. Draft Congressional letter i 6. Oraft Daily Staff Notes Item 7 FRN-Proposed Rulemaking (50 FR 347C81 DISTRIBUTION NMSS r/f l 5GRT r/f SGRT s/f PDwyer JYardumian RBurnett RBernero j' HThompson PNorry VParler l CHe1temes l JTaylor HDenton c.sya.d I OFC: ADM

0GC

AE00

IE

NRR I

Y j l NAME:PNorry

VParler :CHeltemes:JTaylor :HDent n :

i p DATE: 'I_......._..M. [dh : / AfhfD: /4 : . N._.................... l l J/8h: / J l // / OFFICIAL RECORD COPY. l i ' 1

• See previous concurrence i 0FC :5GRI *

5GRT

5CRT *

56 *

5G *

hMS

NMSS *

.....:...........:............:............:............:............:..g,5 l NAME :PDwyer:'jr

JYardumian :GMcCorkle

ETenEyck

RBurnett

HTh mpson

RBernero*

I ....:............:........__._:...____...:.____......:.............:._7_......:......... ]

4 4 Victor Stello, Jr. Mr 151987 MEMORANDUM FOR: Victor Stello, Jr. Executive Director for Operations FROM: Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards

SUBJECT:

EFFECTIVE AMENDMENT TO 10 CFR 73.71, REPORTING REQUIREMENTS FOR SAFEGUARDS EVENTS Attached for your signature is a Federal Register Notice amending 10 CFP Part 73, Physical Protection of Plants and Materials, to simplify and clarify the report-ing requirements for~ safeguards events under 10 CFR 73.71. Conforming amendments are also included for 10 CFR 70.52, 72.52, 73.67 and 7A.11.

Background:

On August 6,1985, the EDO signed a proposed rule to refine the reporting requirements for safeguards events. The purpose of this rule is to: clarify to licensees the safeguards events that must be reported, o i extend the period of time for submittal of licensee written reports, o assure standardized and sufficient repurt-making to assist NRC data o evaluation, eliminate telephonic notification and written reporting deemec o unnecessary by the staff, and assure a consistent and comparable level of reporting for safety and o safeguards events. Comments: Twenty-six respondents commented on the proposed rule. The following issues were raised: 1. Safeguards Event Log. Commenters indicated that the maintenance and submittal to the NRC of a stand-alone log containing those safeguards events not reported within one hour was unnecessary and overburdensome. Further, commenters expressed the opinion that the regulatory language describing the events to be logged was too broad and would result in the logging of events of little consequence. In response to these comments, the staff has revised the reguletory language to more clearly define events to be logged. however, no change has t>een made to the requirement to maintain and submit the stand-alone log. This is based on the facts that: (1) a stand-alone log for certain safeguards events is already required to be maintained by licensees, (2) most events now reported within 24 hours need only be logged under the preposed regulation, hence, reducing the burden, and (3) improved capability to identify generic defects or precursors to events will be derived.

w b Victer Stello, Jr. 2-2. Reporting of Unauthorized Interruption of Normal Operations et Power Reactors. Respondents comented that the reporting of int'erruption of normal operations at power reactors is not a safeguards event and would be duplicative to Part 50 requirements. No revision has been made to the proposed rule in response to this comment. The inclusion of this requirement is necessary to align NRC policy on sabotage with that of the Federal Bureau of Investigation and the Atomic Energy Act. Further, the proposed rule explicitly states that events reportable under Part 50 requirements need not be duplicated under Part 73-reovirements. 3. Reporting of Unauthorized Entries _ Through Pequired Barriers. It was commented that the requirement to report within one hour all unauthorized entries through a required barrier was overburdensome and un. necessary, especially when the entry was accidental or involved procedural error. In response to this comment, the staff has revised this provision to require one hour reporting of all actual entries by an unauthorized persan into a protected area, material cecess area, controlled access area, vital area, or transport. All other events involving invalid or incorrect entry procedures are required to be logged. In addition, the term " unauthorized persen" has been defined. 4 Major Miscellaneous Issues. Respondents requested definitions for a number of terms; these have been provided in the rule's supporting statement and regulatory guide. An extension of the time period for one hour reporting was requested. This was not adopted because the staff believes that the nature of the events to be reported in this category merit one hour reporting. Schedalino/ Resources: The rule is effective four months from publication Impact to licensees resulting from rule implementation'.is anticipated date. to yield a net annual reduction in reporting burden of $9K per site. Impact to NRC is anticipated to yield a net annual resource increase equivalent to $140K (approximately 1 FTE). Resources have been budgeted beginning FY88 to accommodate this increase. Committee Deview: the Advisory Committee on Reactor Safeguards (ACRS) hss been provided a copy of this final rule package for information purposes. The Ccmmittee to Review Generic Requirements (CRGRi has recommended approval of this regulation for publication. Notices: A copy of the Federal Register Notice of final' rulemaking (Attachment T) wTIT be sent to all affected licensees and respondents who provided comment on the proposed rule. Supporting guidance for the rule (Attachment 2) will be forwarded to the Office of Nuclear Regulatory Research for publication. A regulatory analysis (Attachment 3) will be placed in the Public ' Document Room and a public announcement will be forwarded to the Office of Public Affairs for GFC :5GRT

5GRT

5GRT

5G

56

NMS5

.) NAME :P0wyer:f r

JYardumian :GM:Corkle

ETenEyck

RBurnett

HThompson DATE isi/_187

3L _ /@7 3/ /@7

$/ f27 U /27 St #M

1 g i ) k j Victor Stello, Jr. -3 1 i _ Coordination: This rulemaking was coordinated with cognizant Offices prior to the NRC reorganization. The Office of the General Counsel has reviewed this rule package and concurs and the Offices of Administration, Analysis and Evaluation of Operational Data, Inspection and Enforcement, and Nuclear Reactor Pegulation concur in these emendments. The Office of Public Affairs concurs in the public announcement. ) i Pugh L. Thompson, Jr., Director. Office of Nuclear Material Safety and Safeguards Attachments: 1. FRN Final Rulemaking . 2. Revised R. G. 5.E2 3. Regulatory Analy.:is 4. Public Announcement S. Oraft Congressional letter i 6. Draft Daily Staff Notes Item 7. FRN-Proposed Rulemaking (50 FR 34708) DISTRIBUTION NMSS r/f SGRT r/f SGRT s'f PDwyer i JYardumian PEurnett RBernero HThompscn PNorry WParler CHeltemes JTaylor HDenton DFC: ALM "

0GC "

AEOD *

IE "

hRR*

l NAME:PNorry .'JPa rl e r :CHeltemes:JTaylor :HDenton : i b TE$ Y9 $5 $ SYeY$ N t h $!whY$ \\ DFFICIAL RECORD COPY 1 i 1 I ) f oSee previous concurrence [, (h/r / FC :SGRT *

SGRT *

56RT *

5G F u

NM55

....:............:............:............:...f.......:5G AME :PDwyer:jr

JYardumien

GMcCorkle

ETeVEyck

RBurnett

HThompson ATE,6[(787....:_..........:I/7/87 l

~ 7/87 I/f7/87 3/lk87 3/ /87 1

9 l Victor Stello, Jr. I 2. Reporting of Unauthorized Interruption of Normal Operations at Power Reactors. Respondents commented that the reporting of interruption of normal operations at power reactors is not a safeguards event and would be I duplicative to Part 50 requirements. No revisfoa has been made to the proposed rule in response to this comment. The itclusion of this requirement is necessary to align NRC policy on sabotace with that of the Federal Bureau of Investigation and the Atomic Energy Act. Further, the proposed rule explicitly states that events reportable under Part 50 requirements reed not be duplicated under Part 73 requirements. 3. Reporting of Unauthorized Entries Through Pequired Barriers.. It was commented that the reouf rement to report within one hour all unauthorized entries through a required barrier was overburdensome and un-i necessary, especially when the entry was accidental or involved procedural i error. In response to this comment, the staff has revised this provision to require one hour reporting of all actual entries by an unauthorized person into a protected area, material access area, controlled access area, vital area, or transport. All other events involving invalid or incorrect entry I procedures are required to be logged. In addition, the term " unauthorized I person" has been defined. 4. Pa,ior Miscellaneous Issues. I Respondents requested definitions for a number of terms; these have been provided in the rule's supporting statement and regulatory guide. ) An extension of the time period for one bour reporting was requested. l This was nct adopted because the staff believes that the nature of the events i to be reported in this category merit one hour reporting. Comittee Review: The Advisory Comittee on Reactor Safeguards (ACRS) has been previoeo a copy of this final rule package for information purposes. j The Committee to Review Generic Requirements (CRGR) has recomended approval l of this regulation for publication. Notices: A copy of the Federal Register Notice of final rulemaking (Attachment

1) will be sent to all affected licensees and respondents who provided comment on the proposed rule.

Supporting guidance for the rule (Attachment 2' will be l forwarded to the Office of Nuclear Regulatory Research for publication. A 1 regulatory analysis (Attachment 3) will be placed in the Public Document Room and a public announcerrent will be forwarded to the Office of Public Affairs for issuance (Attachment a). The appropriate Congressional Committees will be notified (Attachment 5). A notice to the Commission that the EDO has signed this rule is attached for inclusion in the next Daily Staff Notes (Attachment 6). J l OFC :5GRT

5GRT

56RT

5G

5G

NM55 NAME :PDwyer:fr

JYardumian :GMcCorkle

ETenEyck

RBurnett

HThompson i.DATE :3/ /87

3/

/87 3/ /87 3/ /87 3/ /87 3/ /87 d

1 i l J Victor Stello, Jr. i l ~ MEMORANDUM FOR: Victor Stello, Jr. Executive Director for Operations FROM: Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety i i and Safeguards j

SUBJECT:

EFFECTIVE AMENDMENT TO 10 CFR 73.71 REPORTING REQUIREMENTS FOR SAFEGUARDS EVENTS ~ 1 l. Attached for your signature is a Federal Register Notice amending 10 CFR'Part 73, Phy11 cal Protection of Plants and Materials, to simplify and clarify the report-1 ing requirements for safeguards events under 10 CFR 73.71. Conforming amendments are also included for 10 CFR 70.52, 72.52, 73.67 and 74.11. Backcround: On August 6, 1985, the EDO signed a proposea rule to refine the reporting requirements for safeguards events. The purpose of this rule is to: clarify to licensees the safeguards events that must be reported, o extend the period of time for submittal of licensee written reports, o assure standardized and sufficient report-making to assist NRC data o i evaluation, eliminate telephonic notification and written reporting ceemed o unnecessary by the staff, and assure a consistent and comparable level of reporting for safety and o safeguards events. Cements: Twenty-six respondents commented on the proposed rule. The following i issues were raised: 1.. Safeguards Event Log. i Comenters indicated that the maintenance and submittal to the NRC of a stand-alone log containing those safeguards events not reported within one hour was unnecessary and overburdensome. Further, comenters expressed the opinion that the regulatory language describing the events to be logged was too broad and would result in the loggina of events of little consequence. In response to these coments, the staff has revised the regulatory language to more clearly define events to be logged, however, ro chanoe has been made to the requirement to maintain and submit the stand-alone log. This is based on the facts that: (1) a stand-alone log for certain safeguards events is 1 i already required to be maintained by licensees, (2) most events now reported within 24 hours need only be logged under the proposea regulation, hence, reducing the burden, and (3) improved capability to identify generic defegts, ~ } or precursors to eversts will be derived. j ~ - T \\ =

f Victor Stello, Jr. -3 Coordination: The Office of the General Counsel has reviewed this rule package ano concurs and the Offices of Administration Analysis and Evaluation of' Operational Data, Inspection and Enforcement, and Nuclear Reactor Regulation concur in these amendments. The Office of Public Affairs concurs in the public announcement. Huch L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards Attachments: 1. FRN Final Rulemaking 2. Revised R. G. 5.6,? 3. Regulatory Analysis i 4 Public Announcement 5. Draft Congressional letter 6. Draft Daily Staff Notes Item 7. FRN-Proposed Rulemaking (50 FR 34708) DISTRIBUTION NHSS r/f SGRT r/f SGRT s/f PDwyer JYardumian RBurnett M RBernero Y HThompson 4 [ k PHorrv WParler N ~ CHeltemes g. f a hg f. JTaylor HDento&n Gp L ek, a yv OFC: ADM v

0GC

~ AE00

IE

":NRR NAME:PNorry

WParler :CHeltemes:JTaylor :HDenton :

EY l5f9l8b : I f3k $Ik kk Y C / 3 d GFFICIAL RE0]RD COPY / K00NFIRMEp 4/6 /87 K:K CON FtRMED A/bf 8~l W/ L. BQ$tt b]oW. C%g. Comisen 9y hw*sofnkkM cl +d []q(s'7 Feon d $.pav ~ik STewo. r vi i LTI:SGRT

SGRT

.....:.... p.....: Q g p __:p :SGRT g b_ u..:SG

SG

hMSS

] NAME :PDwyer:fr

JYm uu.nin

EMcCorklel

ETenEyck

RBurnett

HThompson

) .....:7./........:...g........: DATE :3/ b/87

3/ / /87 3/O/87 3/ /87

3/ /87 3/ /87 I

~ Y

l Victor Stello, Jr. 2. Reporting of Interruption of Normal Operations at Power Reactors. Respondents commented that the reporting of interruption of normal operations at power reactors is not a safeguards event and would be duplicative to Part 50 requirements. No revision has been made to the proposed rule in response to this comment. The inclusion of this requirement is necessary to align NRC policy on sabotage with that of the Federal Bureau of Investigation and the Atomic Energy Act. Further, the proposed rule explicitly states that events reportable unoer Part 50 requirements need not be duplicated under Part 73 requirements. 3. Reporting of Unauthorized Entries Through Recuired Barriers. It was comented that the requiremen't to report within one hour all l unauthorized entries through a recuired barrier was overburdensome and un-l necessary, especially when the entry was accidental or involved procedural l error. In response to this comment, the staff has revised this provision I to recuire one hour reporting cf all actual antries by an unauthorized person I into a protected area, material access area, controlled access area, vital area, or transport. All other events involving invalid or incorrect entry i procedures are required to be logged. In addition, the term " unauthorized l person" has been defined. 4 Pajor Miscellaneous Issues. Respondents requested definitions for a number of terms; these have been provided in the rule's supporting statement and regulatory guide. An extension of the tine period for one hour reporting was requested. This was not adopted because the staff believes that the nature of the events to be reported in this category merit one hour reporting. Comittee Review: The Advisory Comittee on Reactor Safeguards (ACRS) has ceen provided a copy of this final rule package for information purposes. The Committee to Review Generic Requirements (CPGR) has recommended approval of this regulation for publication. Notices: A copy of the Federal Register Notice of final rulemaking (Attachment

1) will be sent to all affected licensees and respondents who provided comment on the proposed rule.

Supporting guidance for the rule (Attachment 2) will be ferwarded to the Office of Nuclear Regulatory Research for publication. A regulatory analysis (Attachment 3) will be placed in the Fublic Document Room and a public announcement will be forwarded to the Office of Public Affairs for issuance (Attachment 4). The appropriate Congressional Committees will be notified (Attachment 5). A notice to the Commission that the E00 has signed this rule is attached for inclusion in the next Daily Staff Notes (Attachment 6). OFC :5GRT

5GRT

5GRT

5G

56

NM55 NAME :PDwyer:jr

JYardunian

GMcCorkle

ETenEyck

R8urnett

HThompson DATE :3/ /87

3/

/87 3/ /87 3/ /87

3/ /87 3/ /87

r. c. 4 . Victor Stello, Jr. 1-MEMORANDUM FOR:- Victor Stello, Jr. Executive Director for Operations FROM: Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards

SUBJECT:

EFFECTIVE AMENDMENT TO 10 CFR 73.71, REPORTING REQUIREMENTS.FOR SAFEGUARDS EVENTS Attached for your signature is a Federal Register Notice amending 10 CFR Part 73, Physical Protection of Plants and Materials, to simplify and clarify the report-ing requirements for sefeguards events under 10 CFR 73.71. Confonning amendments are also' included for 10 CFR 70.52, 72.52, 73.67 and 74.11. 1 Backcround: On August 6,1985, the EDO signed a proposed rule to refine the reporting requirements for safeguards events. The purpose of this rule is to: clarify to licensees the safeguards events that must be reported, o extend the period of time for submittal of licensee written reports, o o assure standardized and sufficient repqrt-making to assist NRC data evaluation, eliminate telephonic notification and written reporting deemed o unnecessary by the staff, and assure a consistent and comparable level of reporting for safety and o safeguards events. Comments: Twenty-six respondents commented on the proposed rule. The following issues were raised: 1. Safeguards Event Log. Ccmmenters indicated that the maintenance and submittal to the NRC of a stand-alone log containing those safeguards events not reported within one l hour was unnecessary and overburdensome. Further, commenters expressed the I opinion that the regulatory language describing the events to be logged was too broad and would result in the loaging of events of little consequence. In response to these comments, the staff has revised the regulatory language to more clearly define events to be logged, however, no change has been made to the requirement to maintain and submit the stand-alone log. Thi.s is based on the facts that:. (11 a stand-alone log fer certain safeguards events is-already recuired to be maintained by licensees, (2) most events now reported within Pa bours need only be looged under the proposed reculation, hence, reducing the burden, and (3) improved capability to identify generic de#ects or precursors to events will be derived. 1 \\ ..,_}}