ML20236V449

Forwards Draft Rulmaking Package Re Delegation of Licensing Authority for Us Navy License to Region Ii.Response Requested by 870814

ML20236V449
Person / Time
Issue date:	07/30/1987
From:	Deegan G NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS)
To:	Treby S NRC OFFICE OF THE GENERAL COUNSEL (OGC)
Shared Package
ML20236V100	List: ML20236V097 ML20236V124 ML20236V143 ML20236V183 ML20236V191 ML20236V207 ML20236V215 ML20236V408 ML20236V427 ML20236V436 ML20236V449
References
FRN-52FR38391, RULE-PR-30, RULE-PR-40, RULE-PR-70 AC55-2-11, NUDOCS 8712040313
Download: ML20236V449 (23)

Text

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8 .o 4 NUCLEAR REGULATORY COMMISSION j r- E, ' ,I WASHINGTON, D. C. 20555 / 'l

[ -\,*...+/ JUL 3 01987 q

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j MEMORANDUMFOR:@JosephRStuartIiTreny?iOGCW '

l Michael Lesar,' ARM 1 FROM: George J. Deegan, Program Analyst .. .

Division of Industrial and Medical: Nuclear' Safety l

,- 1

SUBJECT:

ASSIGNMENT TO REGION II Di' U.S. NAVY '

1" MATERIALS LICENSE Last year, our offices worked to materials licenses (51 FR 35999)gether . NMSS is now tointending decentralize thethis to repeat U.S.

i Air' Force process .for another license, ~ the U.S. Navy, 'on October.1 1987. . . We excluded ::

the Navy from last year's action intentionally because they had approximately' 180 licenses, which they were in the process of consolidating.. That process is -

now complete and NMSS is now prepared to delegate licensing authority fof the" Navy license to Region II.

3 .

I would like each of you to review this draft submittal, structured as closely-as possible to last year's action. I welcome any and all coments, and would appreciate receiving them no later than Friday, August 14.< (Pen-and-ink markups are fine.)

Please call me (x74114) if you have any questions about the package. Thanki you in advance for your assistance, e "G' George J. Deegan, Program. Analyst Division of Industrial and Medical Nuclear Safety

Enclosures:

Draft Rulemaking Package cc: Mr. Cunningham Mr. Miller Mr. Hickey M .jIX -

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-Y vb 8 M gL B712040313 870927 PDR PR

.30 52FR38391 PDR 874763

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b' MEMORANDUM FOR: Victor Stello, Jr.

, Executive Director for Op rations FROM: Hugh L. Thompson, Jr., Director l Office of Nuclear Material Safety and Safeguards 1 1

SUBJECT:

FEDERAL REGISTER NOTICE AND DELEGATION OF AUTHORITY FOR THE U.S. NAVY NUCLEAR MATERIALS LICENSE ,

)

Enclosed for your signature are the final rule (to be published in the Federal l Register) and the Delegation of Authority pertaining to decentralization of the 1 l

U.S. Navy license on October 1, 1987.

The subject action transfers licensing authority for one license only from J i

Headquarters to Region II (the Navy program is administered from Yorktown and Norfolk, Virginia). The action represents a minor administrative:

amendment, i.e., a mailing address change.

When we decentralized nearly all other Federal nuclear materials licenses in i 1985, we excluded the U.S. Air Force and Navy because they were in the process of consolidating their many individual licenses,into one " master" license each.

At that time, we announced in the Federal Register, the Daily Staff Notes and in our congressional letters our intention to decentralize these master licenses l once the consolidations were made. For the U.S. Air Force, the license consoli- J dation was -completed in 1986 and the licensing authority was delegated to Region IV effective October 1,1986. The U.S. Navy licenses were consolidated in March' 1987, and we believe Region II will encounter no special problems with this license.

1 This action represents a minor administrative change (revising the Navy's NRC ,

licensing contact point). In April 1985, the EDO decentralized thousands of I l other Federal licenses in a similar fashion, without an independent review by l the Office of Nuclear Regulatory Research (RES), as further implementation of l the NRC program to decentralize materials licensing. In 1986, you' decentralized ,

the U.S. Air Force license - again, without an independent RES review. The 1985 and 1986 rules did not represent any change in NRC's licensing philosophy.

Neither does this rulemaking. Therefore, we have not forwarded the package  ;

through the RES review group. .!

Also enclosed are the Daily Staff Notes, the Delegation of Authority for EDO publication approval, three letters that will notify appropriate congressional committees, and an NMSS analysis of the rulemaking. Based on this analysis, I recommend that you approve the rulemaking, and that you sign both the Federal Register Notice and the Delegation of Authority.

Hugh L. Thompson, Jr., Director Office of Nuclear Material l

Safety and Safeguards IMAB ADM VMiller WGMcDonald

Enclosures:

As stated / /87 / /87 l OFC: IMDB  : IM0B  : IMDB  : IMNS  : OGC  : NM55 : NM55 :

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EXA5?GDesganI3pik50iide I JEUiliseyi 55CunninghainII5Airebj I55erneroIELiEbpsoni l DATE: / /87  : / /87: / /_87  : / /87  : / /87 : / /87: / /87 :

l OFFICIAL RECORD COPY

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q MEMORANDUM FOR: Regional Administrators FROM: Victor-Stello,.Jr. l Executive Director- for Operations Hugh L. Thompson, Jr., Director =. .

Office of Nuclear. Material Safety and . Safeguards

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SUBJECT:

DELEGATIN ' AND ASSIGNMENT FOR THE U.S.- NAVY. MATERIALS ~

LICENSING ACTIONS TO THE APPROPRIATE REGION:

1. Pursuant to NRC Manual Chapter 0128, " Organization'and Functions-Regional Offices," the Regional Administrators are hereby assigned and authorized (hereafter referred to as authorized) to perform certain licensing actions as described herein, effective October 1,1987. :This authorization -

y supersedes the previous delegations issued to Regions I_ and III effective 1 May 27, 1982 and to all Regions on April 1~,1983 (published April' 14,1983),

April 2,1984, April 2,1985, and September 26 1986. Specifically, this action transfers licensing authority for the U.S. Navy materials license __

from the Office of Nuclear Material Safety and Safeguards (NMSS) to Region II.

2. Under the Atomic Energy Act of 1954,-as amen'ded, and' the Energy Reorganization- ,

Act of 1974, as amended. NMSS is res'ponsible- for the-principal: licensing,-

regulation, and safeguarding of. facilities and materials specified;in. the Atomic Energy Act of 1954 associated with the processing, transport, and -

handling of source, byproduct, and special' nuclear; materials' (hereafter referred to as nuclear materials). Consequently, NMSS_.will remain _respon-l l sible for determining overall licensing, inspection,.and regulatory-policy l for actions which the Regions have been authorized to perfom pursuant:to I this memorandum. To enable NMSS to execute this responsibility properly, NMSS will maintain oversight of these licensing and inspection' actions.

This oversight shall include,:but not be limited to, ongoing review of' documentation, periodic assessments of activities being conducted by the Regions, and the ongoing coordination and consultation:between NMSS and the Regions regarding authorized licensing and inspection actions. . The NMSS Director retains the authority to take actions' determined necessary in all matters hereby authorized to be performed by the Regions.

3. All Regional Administrators are authorized to issue, renew, amend, cancel, modify, suspend, or revoke, under_the, provisions set out by this delegation, licenses for nuclear materials issued pursuant'to 10 CFR Parts 30 through 35, 40, and 70 to' all Federal facilities. throughout the United States under NRC jurisdiction: and to all persons in non-Agreement' States, Guam, Puerto Rico, the Virgin Islands and the District of Columbia for academic, medical, and industrial uses, with the following exceptions:

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Regional Administrators 2 A. Activities in the fuel cycle and special nuclear material in quantities sufficient to constitute a critical mass in any room or area. This exception does not apply to license modifications relating to termination of special nuclear material licenses that authorize possession of larger quantities when the case is referred for action from the Nuclear Regulatory Commisison's Headquarters to the Regional Administrator.

B. Health and safety design review of sealed sources and devices, and approval, for licensing purposes, of sealed sources and devices.

C. Processing of source material for extraction of metallic compounds (includingZirconium, Hafnium, Tantalum, Titanium, Niobium,etc.)

D. Distribution of products containing radioactive material to persons i

exempt pursuant to 10 CFR Parts 32.11'through 32.26.

E. New uses or techniques for use of byproduct, source, or special nuclear material.

4. All Regional Administrators are authorized to issue, with the concurrence of the NMSS Director, notices of the denial or the proposed denial of j applications for materials licenses and amendments or renewals thereof, i pursuant to 10 CFR Part 2, within the parameters delineated in paragraph l 3 above. l

5. Actions initiated by the Regional Administrator to suspend, modify, or revoke licenses must have the concurrence of the NMSS Director.

6. All Regional Administrators are authorized to respond to all Freedom of j Information Act inquiries as well as inquiries from Congress, the media and others about licensing actions the Regions have the authority to j perform.

7. Actions pertaining to the disposal of nuclear material by burial or unprecedented method must have concurrence of the NMSS Director.  :

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8. All matters which arise that reasonably could be expected to have policy ,

implications relating to delegated licensing actions shall be referred to l the NMSS Director for resolution. If a licensing and/or regulations l matter arises which has not been specifically, authorized pursuant to this ,

memorandum, it remains the responsibility of NMSS until a specific  !

authorization is made to the Regions.

l 9. Disagreements which arise between NMSS and Regional staffs on whether or l

not an issue constitutes an item which remains the responsibility of i l NMSS, or on the way in which a delegated item (s) has been handled will be I referred to the NMSS Director who will consult with the Regional Administrator prior to issuing a final resolution. l l

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Regional Administrators 3 i

10 Disagreements between potential or existing licensees relative to decisions made by the Regional Administrators pertaining to license 1 actions should be made known immediately to the NMSS Director. If resolution cannot be achieved at the Regional level, the applicant /

l licensee shall be informed in writing by the Regional Administrator.

with a copy to the NMSS Director, that it may seek resolution of the matter with the NMSS Director.

11. Delegated licensing actions are to be performed in acevdsnce with policy guidance and standard review plans issued by the NMS$ Director.

12. NMSS will provide a copy of this delegation, related revisions, and other 1 l

related documents to the Deputy Executive Director for Regional Operations and the Assistant General Counsel for Enforcement, Office of the General Counsel.

Victor Stello, Jr.

. Executive Director for Operations )

l I

Hugh L. Thompson, Jr., Director 'i Office of Nuclear Material j Safety and Safeguards IMAB ADM VMiller WGMcDonald

/ /87 / /87 0FC: IM0B  : IM0B  : IM0B  : IMNS  : OGC  : NMSS : NMSS  :

NAME:GDeegan:jp:RMWilde : JWNHickey: RECunningham::SATreby :RBernero:HLTHompson:

DATE: / /87  : / /87: / /87 : / /87  : / /87 : / /87: / /87 :

OFFICIAL RECORD COPY

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[7590-01]

NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 40, and 70 Regional Nuclear Materials Licensing for the United States Navy l

- AGENCY: Nuclear Regulatory Commission.

j ACTION: Final rule.

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SUMMARY

The NRC is amendin ' i the domestic licensing l of source, byproduct, and s/g its pecialnuclegmpt regulations c, concern fe d ng to .

asnuclearmaterials)toprovi n further teentr:.1::tisr, af she imC I

dicensing process. Jb4 s =andmt- artands te the Dggjgn 'II Office the 5eine 1

.authnrity for the United States Navy license as thou nnw nnee ee (n - r. :rly

.a" cth;r redere; ouivities. Jo e i A#AC

&T o i-4 i L M < 0 A . Qa adLeve s/ ALfAL++kM1 w i 1,,ngn~n <- p d 4Lo eg tg i , a s u ; n x ,o e ,j EFFECTIVE DATE: October 1,1987Q FOR FURTHER INFORMATION CONTACT: George J. Deegan, Program Analyst, Operations Branch, Division of Industrial and Medical Nuclear Safety, i

Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Telephone: (301)427-4114.

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SUPPLEMENTARY INFORMATION: Each year since 1982, (May 27, 1982; 47 FR 23138)

(April 14, 1983; 48 FR 16030) (May 9, 1984; 49.FR 19630) (April 15, 1985; '

50 FR 14692) (October 8, 1986; 51 FR 35999) the Nuclear Regulatory Commission (NRC) published rules decentralizing most dome i ic nsing of nuclear materials. The NRC is amending gulationi to k N : the United States '

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Navy license in its decentralization program. 7 N.,^a %d46#4 3

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The 3 ,C recent1/ co,nsol'idated' M 7 rt..approximately' one hut (dred erg ty ind i ual United States Navy licenses into one " master" license with many individual q permits. During the consolidation and for a short time after it, Headquarters ]

retained the regulatory autho ty for the Navy licensing effort to maintain w

continuity. NRC Headquarters now p m r;" to tragsp t is authority to the appropriate Regional OfficekDs t Nmilar delegations which I affected nearly all other Feder$1 licenses in 1985 and 1986. (Acce M j(

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S IRithgespecttolicensesissuedpursuantto10CFRPart30through35,40,and 70,, revisions to 10 CFR 30.6, 40.5, and 70.5 wnuld require the Navy to contact the appropriate Regional office, rather than NRC Headquarters offices, for license applications, renewals, and revisions. TMs-action -new -incorporates

.thedLS. Naxy License-4 ate-the Nor pegignal ma tar 4als44cens4my-program

/ tions of authority to the Regional Administrator are contained in NRC.2 Q Manual Chapter 0128, The changes to 96 30.6, 40.5, and 70.5 are =p 0 Mt 5 tive amendmen Jhe revised sections indicate the type of licensina authority *%

delega egional Administrator /P "' '/' C** *^^4 Because these are amendments dealing with Agency practice, procedure, and organization,,the notice and comment provisions of'the Administrative (

Procedure Act do not apply (pursuant to 5 U.S.C. 553 (b)(Ap. The amendments [

dre effective October 1,1987. Good cause exists to dispense with the usua 30-day delay in the effective date because the amendments are of a minor an administrative nature dealing with a matter of Agency practice that for administrative convenience should begin with a new fiscal year. (L

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1 ENVIRONMENTAL IMPACT - CATEGORICAL EXCLUSION I

The NRC has determined that this final rule is the type of action described.in {

categoricalexclusion10CFR51.22(c)(3)(1). Accordingly, pursuant to 10 CFR l 51.22(b), neither an environmental impact statement nor an environmental ]

assessment has been prepared for this final rule. -j q

PAPERWORK RE0UCTION ACT STATEMENT

\

l This final rule does not contain a new or amended information collection -

requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et. i seq.). Existing requirements were approved by the Office of Management and f Budget approval numbers 3150-0017 for Part 30, 3150-0016 for Part 31, 3150-0001 for Part 32, 3150-0015 for Part 33, 3150-0007 for Part 34, 3150-0010 3 for Part 35, 3150-0020 for Part 40, and.3150-0009 for Part 70. l.

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LIST OF SUBJECTS IN 10 CFR PARTS 30, 40, AND 70 <

Part 30 - Byproduct material, Government contracts, Intergovernmental relations, I Isotopes, Nuclear materials, Penalty, Radiation protection, Reporting and l recordkeeping requirements.

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Part 40 - Government contracts. Hazardous materials-transportation, Nuclear materials, Penalty, Reporting and recordkeeping requirements, Source material, ,

! and Uranium.

Part 70 - Hazardous materials-transportation, Nuclear materials, Packaging and  ;

containers, Penalty, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material.

Under the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 552 and 553, the following amendments'to 10 CFR Parts 30, 40, and 70 are published as a document subje'ct to codification.

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4 y findH PART 30 - RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING 0F BYPRODUCT MATERIAL

1. The authority citation for Part 30 is revise. to read as follows:

9/ AUTHORITY: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 953, 954, 955,- t as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as amended, 202, 206, 88 Stat. 1242, 1244, 1246(42U.S.C.5841,5842,5846). af rune /l kSection 30.7 also ' issued under Pub. L.95-601, sec.10, 92 Stat. 2951 (42 U.S.C.

5851). Section 30.34(b) also issued under sec. 184, 68 Stat. 954, as amended (42U.S.C.2234). Section 30.61 also issued under sec. 187, 68 Stat. 955 (42. /

U.S.C. 2237). l

[Forthepurposesofsec.223,68 Stat.958,asamended(42U.S.C.2273);$530.3, 30.34(b) and (c), 30.41(a) and (c), and 30.53 are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); and SS 30.6, 30.36, 30.51, 30.52, 30.55, and 30.56(b) and (c) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

)

2. In 5 30.6, paragraphs (b)(2) (i), (ii), (iii), (iv), and (v) are amended by deleting the phrase, "With the exception of the United States Navyd' Also the

_ f introductory text of paragraph (b) and paragraph (b)(1) are revised to read as follows:

[

630.6 Communications.

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(b) The Commission has delegated to the five Regional Administrators i licensing authority for selected parts of its decentralized licensing program for nuclear materials as described in paragraph (b)(1) of this section. Any communication, report, or application covered under this licensing program must be' submitted as specified in paragraph (b)(2) of this section.

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(1) The delegated licensing program includes authority to issue,. _

renew, amend, cancel,. modify, suspend, or' revoke licenses for nuclear materials issued pursuant to 10 CFR Parts /30 through.

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71[ D 0, and 70 to all persons for. academic, medical, and-l industrial uses, with the following exceptions::

l (1) Activities in the fuel ' cycle and'special nuclear material in quantities sufficient to constitute'a critical mass in any room or area. This exception does not apply to license modifications relating to termination of special nuclear material licenses that' auth6rize possession 'of larger quantities whe i the. case-is referred for. action from NRC's-Headquarters t~ the' Regional Administr'ators.

(ii) Health and safety' design review'of sealed sources and devices and apprc, val, for. licensing' purposes, of sealed sources and devices.

(iii) Processing of source material for extracting of metallic.

compounds (includingZirconium,LHafnium, Tantalum, Titanium, Niobium,etc.).

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(iv) Distribution of products containing radioactive material .to persons exempt pursuant 10 CFR 32.11 through 32.26.

(v) New uses or techniques for use.of byproduct, source, or special nuclear material.

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6 y {inaCf PART 40 - DOMESTIC LICENSING 0F SOURCE MATERIAL b

3. The authority citation for Part 40 i: revi. to read as follows:

7/ AUTHORITY: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L. 95- ,

604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended  !

42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, T2236,2282];sec.274, Pub.L.86-373,73 Stat.688(42U.S.C.2021); secs, d 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244,1246(42U.S.C.

5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.97-415, 96 Stat. 2067 (42 U.S.C. 2022).

i 7/Section 40.7 also issued under Pub. L.95-601, sec.10, 92 Stat. 2951 (42 U.S.C. 5851). Section40.31(g)alsoissuedundersec.122,68 Stat.939 l (42 U.S.C. 2152). Section 40.46 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 40.71 also issued under sec. 187, 58 Stat.

955 (42 U.S.C. 2237).

E For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); 65 40.3, 40.25(d)(1)-(3), 40.35(a)-(d), 40.41(b) and (c), 40.46, 40.51(a) and (c), and 40.63 are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b));

and5940.5,40.25(c),(d)(3),and(4),40.26(c)(2),40.35(e),40.42,40.61, 40.62, 40.64, and 40.65 are issued under sec. 1610, 68 Stat. 950, as amended (42U.S.C.2201(o)).

4. In 5 40.5, paragraphs (b)(2) (i), (ii), (iii), (iv), and (v) are amended by deleting the phrase, "With the exception of the United States Navy " Also, the introductory text of paragraph (b) and paragraph (b)(1) are revised to read N

as follows:

9 40.5 Communications.

7 (b) The Commission has delegated to.the five Regional Administrators licensing authority for selected parts of its decentralized licensing j program for nuclear materials as described.in paragraph (b)(1) of this section. Any communication, report, or application covered ,

under this licensing program must be submitted as specified in l 1

paragraph (b)(2) of this. section.

I (1) The delegated licensing program includes authority to issue, l l

renew, amend, cancel, modify, suspend, or revoke licenses for 1 n T'\, nuclear materials issued pursuant to 10 CFR parts 30 through 35h40,and70toallpersonsforacademic, medical,and J industrial uses, with the following exceptions:

(i) Activities in the fuel cycle and special nuclear material in~ l quantities sufficient to constitute a critical mass in any l

I room or area. This exception does not apply to license modifications relating to termination of special nuclear material licenses that authorize possession of larger l quantities when the case is referred for action from NRC's Headquarters to the Regional Administrators. l l

(ii) Health and safety design review of sealed sources and devices and approval, for licensing purposes, of sealed sources and i

devices.

(iii) Processing of source material for extracting of metallic compounds (including Zirconium, Hafnium, Tantalum, Titanium, Niobium,etc.). '

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(iv) Distribution of products containing radioactive material to persons exempt pursuant 10 CFR 32.11 through 32.26.

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l l (v) New uses or techniques for use of byproduct, source, or special. j nuclear material.

(cq1l/ W PART 70 - DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

5. The authority citation for Part 70 h revL. o read as follows:

l f/ 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, v psyg.

2282); secs. 201, as amended, 202,'204, 206, 88 Stat. 1242, as amended.-1244, 1245,1246 (42 U.S.C. 5841, 5842, 5845, 5846). '

i Section70.7alsoissuedunderPub.L.95-601,sec.10,92 Stat.2951(42 U.S.C.5851). Section 70.21(g) also issued under sec.122, 68 Stat. 939' (42 U.S.C.2152). Section 70.31,also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec. 184,68 Stat.954,asamended(42U.S.C.2234). Section~70.61 also issued i under secs. 186,187,68 Stat.955(42U.S.C.2236,2237). Section 70.62 also issued under sec.108, 68 Stat. 939, as amended (42 U.S.C. 2138). j 7/Forthepurposesofsec.223,68 Stat.958,asamended(42U.S.C.2273);55: 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 (1), 70.36, 70.39(b) and (c), 70.41(a), 70.42(a) and (c), 70.56, _ j 70.57(b), (c), and (d), 70.58(a)-(g)(3), and (h)-(j) are issued under sec.161b, )

68 Stat. 948, as amended (42 U.S.C. 2201(b)); 59 70.7, 70.20a(a) and (d),

70.20b(c)and(e),70.21(c),70.24(b),70.32(a)(6),(c),(d),(e),and(g)-

70.36,70.51(c)-(g),70.56,70.57(b)and(d),and70.58(a)-(g)(3)and(h)-(j) are issued under sec. 161i, 68 Stat. 949, as amended (42 U.S.C. 2201(1)); and 1 5570.5,70.20b(d)and(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,and70.60(b)and(c)areissuedundersec.  !

1 1610,68 Stat.950,asamended(42U.S.C.2201(o)).

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6. Ini70.5, paragraphs (b)(2)(1),(ii),(iii),(iv),and(v)are.amendedby-deleting the phrase, "With the exception of the United States Navy." Also, the introductory text of paragraph (b) and paragraph (b)(1) are revised to read as follows:

570.5 Communications.

(b) The Commission has delegated to the five Regional Administrators i

licensing authority for selected parts of its decentralized licensing program for nuclear materials as described in paragraph (b)(1) of l

this section. Any communication, report, or application covered under this licensing program must be submitted as specified in paragraph (b)(2)ofthissection.

L (1) The delegated licensing program includes authority to issue, renew, amend, cancel, modify, suspend, or revoke licenses for nuclear materials issued pursuant to 10 CFR Parts 30 through 8]7) l 40, and 70 to all persons for academic, medical, and

. industrial uses, with the following exceptions:

(i) Activities in the fuel cycle and special nuclear material in i

quantities sufficient to constitute a critical mass in any room or area. This exception does not apply to license >

modifications relating to termination of special nuclear material licenses that authorize possession of larger quantities when the case is referred for action from NRC's Headquarters to the Regional Administrators. 1 (ii) Health and safety design review of sealed sources and devices  !

and approval, for licensing purposes, of sealed sources and devices.

10 (iii) Processing of source material. for extracting of metallic compounds (including Zirconium, Hafnium, Tantalum,' Titanium, Niobium,'etc.)'.

(iv) Distribution of products containing radioactive material to persons exempt pursuant 10 CFR 32.11 through 32.26.

(v) New uses or techniques for use of byproduct, source, or special-nuclear material.

Dated at Bethesda, MD, this day of , 1987.-

FORTHENUCLEARREGULATORYCOMMISSIONg I

i i

l Victor Stello, Jr. 7

'I Executive Director -

forOperationsg j

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NMSS OFFICE ANALYSIS q

FINAL RULE - REGIONAL NUCLEAR MATERIALS LICENSING FOR-THE UNITED STATES NAVY-u .

i l ISSUE / PROBLEM In 1986, NRC announced its intention to transfer licensing authority for the ,

U.S. Navy nuclear materials licenses to the appropriate Region, once those j licenses were consolidated into one " master" license. The announcement was made in the Federal Register (51 FR.35999),! the Daily Staff Notes, and in congressional letters. Those U.S. Navy licenses are now consolidated.

NECESSITY FOR RULEMAKING To implement the announced policy decision described above in furtherance of NRC decentralization of licensing authority.-

ALTERNATIVES No justifiable alternative. Other Fede"ral licensees are now under Regional authority.

SOLUTION Amend 10 CFR 30, 40, and 70 to eliminate current wording which excludes the U.S. Navy license from the decentralization program.

COSTS AND BENEFITS f

Only one nuclear materials licensee is affected. The U.S. Navy would be provided a Region-based NRC point of contact. Minor economic and administrative savingr for both the Navy and the NRC should result from the action.

SCHEDULE i

Unless otherwise directed by the Commission, the EDO has the authority to sign l the rule and forward it to the Office of the Federal Register. The rule could l become effective by October 1,1987, and would require less than one-tenth of

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a staff year of effort. i

_ ___.____.___m_________ _ _ _ _ _ _ _ _

4 DELEGATION OF AUTHORIlY FOR EDO PUBLICATION APPROVAL Approved for Publication The Commission develop and promulgate delegated rules as to defined the EDO in (10 CFR51.40(c)(and the APA U.S.C. 551(4)) (d))subject the authority to to the limitations in NRC Manual Chapter 0.103, Organization and Functions, Office- ..

of the Executive Director for Operations, paragraphs 0213, 038, and 0310. The enclosed final rule entitled, " Regional Nuclear Materials Licensing for the.

United States Navy," amends 10 CFR Parts 30, 40, and 70 to include the United-States Navy license in the decentralized materials licensing program. ,

This final rule does not constitute a significant. question.of policy, nor does it amend regulations contained in 10 CFR Parts 7, 8, 9 Subpart C concerning matters of policy. I, therefore, find that this final rule is within the scope of my rulemaking authority and am proceeding to issue it.  !

Date Victor Stello, Jr.

Executive Director for Operations l

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MEMORANDUM FOR: Donnie H. Grimsley, Director ,

Division of Rules and Records, ARM

- 1 FROM: Richard E. Cunningham Director i i

Division of Industrial and Medical Nuclear Safety, NMSS l J

SUBJECT:

FEDERAL REGISTER NOTICE FOR UNITED STATES NAVY NUCLEAR MATERIALS LICENSE The enclosed final rule entitled, " Regional' Nuclear Materials Licensing for the l U.S. Navy," amends 10 CFR Parts 30, 40, and 70 to include the Navy license in i i Region II's materials licensing program. i It is requested that your Office arrange for publication of the final rule in the Federal Register.

Richard E. Cunningham, Director Division of Industrial and ,

Medical Nuclear Safety, NMSS l

Enclosure:

As stated j i

i DISTRIBUTION * '

NMSS R/F >

FC Central File FC File l i

GDeegan i

VMiller ,

RECunningham RMWilde JHickey BPineles 0FC: IM0B  : IMAB : IMDB :IM0B  : IMNS NAME:GJDeegan:jp :VLMiller:RMWilde : JHickey :RECunningham:

DATE: / /87  : / /87: / /87: / /87 : 7/ /87  :

OFFICIAL RECORD COPY

a

. j 1

t DAILY' STAFF NOTES DIVISION OF INDUSTRIAL AND MEDICAL NUCLEAR' SAFETY i 0FFICE OF NUCLEAR MATERIAL' SAFETY AND SAFEGUARDS.

Final Rule to be Signed by ED0 )

l On , 1987, the Executive-Director for Operations approved a final

rule which revised 10 CFR Parts 30, 40, and 70. This revision informs the public of an action that transfers the nuclear inaterials lice'nsing authority 1 for the United States Navy license from Headquarters to the appropriate Regional office (i.e., Region II). Nearly all other Federal licenses were transferred to the appropriate Regions. in April 1985 under a similar Delegation s of Authority and Federal Register Notice. The licensing authority for the -l '

United States Air Force license was transferred in a similar fashion to Region IV in 1986. .

-l This constitutes notice to the Commission that, in accordance with the l rulemaking authority delegated to the EDO, the EDO has signed the final rule I and proposes to forward it on , 1987 to the Office of the Federal j Register for publication, unless otherwise directed by the Commission.  !

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MEMORANDUM FOR: Hugh L. Thompson, Jr., Director j Office of Nuclear Material Safety and Safeguards FROM: Richard E. Cunningham, Director {

Division of Industrial and Medical Nuclear Safety, NMSS J

SUBJECT:

FINAL RULE . REGIONAL NUCLEAR MATERIALS LICENSING FOR THE UNITED STATES NAVY Enclosed is the final rule package to transfer licensing authority for the U.S.

Navy " master" materials license from Headquarters to Region II. j Previously, we decentralized the bulk of the materials licensing 3rogram through l similar actions in 1983, 1984, 1985, and 1986. The 1986 rule paccage included 1 a statement which announced our intention to decentralize the Navy license after their 180 or so licenses were consolidated. That consolidation is now complete, q and Headquarters staff is confident that Region II will encounter no special J problems because of the consolidation. This action executes a policy decision approved and announced by the ED0 in the previous rulemakings.

In 1986, we transferred the U.S. Air Force license to Region IV in a similar fashion. At that time, we received permission to forward the rulemaking directly to the ED0 for his signature without a regulatory analysis or an f independent review by the Office of Nuclear Regulatory Research (RES). This l permission was probably given because this rule was a minor procedural issue.

(It was really little more than a change of mailing address affecting only one licensee.) This transfer of the U.S. Navy license to Region II is procedurally identical to the 1986 transfer of the U.S. Air Force license to Region IV.

Therefore, we have followed the same course we followed in 1986. A memorandum has been prepared for your signature clearly explaining this fact to the EDO.

I request that you sign the memorandum to the EDO recommending his approval, the congressional letters, and the Delegation of Authority.  !

Richard E. Cunningham, Director Division of Industrial and Medical Nuclear Safety

Enclosures:

As stated 0FC: IM0B  : IM0B : IM0B  : IMAB  : IMN5  :

NAME:GDeegan:jp:RMWilde : JWNHickey :VLMiller :RECunningham:

DATE: / /87 : / /87: / /87  : / /87 : / /87  :

OFFICIAL RECORD COPY

Identical 16tters sent to: ' TheHonorableMArrisK.,Udall, Chairman ,

Subcommittee on En::rgy and the Environment Committre,on. Interior and. Insular Affairs >

United ~ States House:of Representatives Washington, D.C. 20515 cc: Rep. Manuel Lujan, Jr. .I

- and - )

The Honorable Philip'R. Sharp, Chairman j Subcommittee on Energy and Power ;j Committee,on' Energy and Commerce 1 United States House of Representatives  ;

Washington, D.C. 20515.. j cc: Rep. Carlos'J. Moorhead j j

The Honorable John B. Breaux, Chairman-Subcommittee on Nuclear Regulation Comittee on Environment and Public Works-  ;

United States Senate i Washington, D.C. 20510 '

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Dear Mr. Chairman:

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The Nuclear. Regulatory Comission.(NRC) has sent to the Office of the Federal-Register for publication the enclosed revision to the Comission's rules in .i 10 CFR Parts 30, 40, and 70.  ;

This action extends to our Region II Office the licensing authority they already possess for most ~other Federal licensees to include the United States ,

Navy licensing activities. Because the Navy program is operationally run from l Yorktown and Norfolk, Virginia, NRC's R,egion II Office-in Atlanta, Georgia, is the appropriate one to regulate the program. f l

This rule will take effect on October 1, 1987. j l l l

Sincerely, '

I l

Hugh L. Thompson,- Jr., Director l l

l Office of Nuclear Material Safety and Safeguards

Enclosure:

As stated l

cc: Senator Alan K. Simpson l

OFC: IM08  : IM0B  : IM0B : OGC  : IMAB  : IMNS  : IMNS  : -

.._________.........._____...........___._____... 2.........____ ... _______

NAME:GDeegan:jp:RMWilde: JHickey:SATreby :VMiller :GLSjoblom :RECunningham: .j I

DATE: / /87 : / /87: / /87 : / /87  : / /87: / /87  : / /87  :

S.II_____I$___[___I$II.___.....55!!____.I._...._........_............  !

NAME:JDelMedico: RMBernero : HLThompson Jr. : l DATE: / /87  : / /87  : / /87  :

OFFICIAL RECORD COPY i

r .

s:

The Honorable Morris K. Udall,IChairman- DISTRIBUTION:

Subcommittee on Energy and.the Environment FC CentraTTiles ' NHSS;R/F.

Committee 'on Interior and Insular Affairs 'FCOB Files GJDeegan.-

United States House of Representatives RECunningham'. RMBernero c Washington, D.C. 20515- HLThompson, Jr; . JDelMedico .GPA "-

SATreby, OGC. .JPhilips, R&R-,

Dear Mr. Chainnan:

VLMiller 'JHickey' RMWilde~ .

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The Nuclear Regulatory Commission'(NRC) has sent to the Office of.the Federal-Register for publication the enclosed revision to the Commission's rules in.

10 CFR' Parts 30, 40 and 70.

This action extends to our. Region-II Office. the' licensing authority they1 already possess for most other Federal-licensees to include the Untted States-Navy licensing activities. 'Because the Navy program'is operationally.run from Yorktown and Norfolk, Virginia, NRC's Region II Office in Atlanta, Georgia', is the appropriate one to regulate the program.

This rule will take effect on October 1,.1987.

1 Sincerely, Hugh L. Thompson, Jr., Director-l Office of Nuclear. Material Safety and Safeguards

Enclosure:

As stated cc: Rep. Manuel Lujan, Jr.

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The Honorable Philip R. Sharp, Chairman DISTRIBUTION:

Subcommittee on Energy and Power FC Central Files NMSS R/F '3 Committee on Energy and Commerce RECunningham FCOB File l United States House of Representatives HLTHompson Jr. JDelMedico,~GPA- l Washington, D.C. 20515 DATreby, OGC JPhilips, R&R.  ;

.EAHeumann VLMiller' i

Dear Mr. Chairman:

RMBernero GDeegan' The Nuclear Regulatory Commission (NRC) has sent to the Office of the Federal Register for publication the enclosed revision.to the Commission's rules in j 1 10 CFR Parts 30, 40, and 70. J; This action extends to our Region II Office the licensing authority they .  !

already possess for most other Federal licensees to include the United States i Navy licensing activities. Because the Navy program is operationally run from j Yorktown and Norfolk, Virginia, NRC's Region II Office in Atlanta, Georgia, is 1 the appropriate one to regulate'the program. j This rule will take effect on October 1,,1987.  ;

Sincerely, Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards

Enclosure:

As stated cc: Rep. Carlos J. Moorhead a

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.4 Ac s5~-2 JUL 3 01987- N f.-. f .

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MEMORANDUM FOR: Joseph R. DelMedico, GPA Stuart A. Treby, 0GC Michael Lesar, ARM FROM: George J. Deegan, Program Analyst Division of Industrial and Medical Nuclear Safety

SUBJECT:

ASSIGNMENT TO REGION II 0F U.S. NAVY MATERIALS LICENSE Last year, our offices worked to materials licenses (51 FR 35999)gether . NMSS istonow decentralize intending tothe U.S.this.

repeat Air Force i

process for another license, the U.S. Navy, on October 1,1987. We excluded I the Navy from last year's action intentionally because they had approximately 180 licenses, which they were in the process of consolidating. That process is now complete and NMSS is now prepared to delegate licensing authority for the Navy license to Region II.

I would like each of you to review this draft submittal, structured as closely.

as possible to last year's action. I welcome any and all comments, and woul<t appreciate receiving them no later than Friday August 14. (Pen-and-inkmarsups are fine.)

, Please call me (x74114) if you have any questions about the package. Thank  !

you in advance for your assistance. j i

,j[ -Qec &

George J': De'gan, Program Analyst Division of Industrial and Medical Nuclear Safety-

Enclosures:

Draft Rulemaking Package cc: Mr. Cunningham Mr. Miller Mr. Hickey 1 DISTRIBUTION:

FCOB File w/fttc)  ;

NMSS R/F JHickey RWilde-  %

dee9anM FCMA File udr&u/ <

OFC: IM B  :

f.

NAME:GJD 'gan/jp: j DATE: 7/30/87  :

OFFICIAL RECORD COPY. -;,,q. <

f3 h jf

c MEMORANDUM FOR: Victor Stello, Jr.

Executive Director for Operations

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FROM: Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards

SUBJECT:

FEDERAL REGISTER NOTICE AND DELEGATION OF AUTHORITY FOR THE U.S. NAVY NUCLEAR MATERIALS LICENSE Enclosed for your signature are the final rule (to be published in the Federal Register) and the Delegation of Authority pertaining to decentralization of the U.S. Navy license on October 1, 1987.

The subject action transfers licensing authority for one license only from j Headquarters to Region II (the Navy program is administered from Yorktown andNorfolk, Virginia). The action represents a minor administrative amendment, i.e., a mailing address change.

]

When we decentralized nearly all other Federal nuclear materials licenses in  ;

1985, we excluded the U.S. Air Force and Navy because they were in the process  ;

of consolidating their many individual licenses into one " master" license each. l At that time, we announced in the Federal Register, the Daily Staff Notes and in our congressional letters our intention to decentralize these master licenses once the consolidations were made. For the U.S. Air Force, the license consoli-dation was completed in 1986 and the licensing authority was delegated to Region IV effective October 1, 1986. The U.S. Navy licenses were consolidated in March 1987, and we believe Region II will encounter no special problems with this license.

This action represents a minor administrative change (revising the Navy's NRC licensing contact point). In April 1985, the ED0 decentralized thousands of ,

other Federal licenses in a similar fashion, without an independent review by i the Office of Nuclear Regulatory Research (RES), as further implementation of  !

the NRC program to decentralize materials licensing. In 1986, you decentralized I the U.S. Air Force license - again, without an independent RES review. The 1985 and 1986 rules did not represent any change in NRC's licensing philosophy.

Neither does this rulemaking. Therefore, we have not forwarded the package through the RES review group.

l Also enclosed are the Daily Staff Notes, the Delegation of Authority for ED0 j publication approval, three letters that will notify appropriate congressional  ;

comittees, and an NMSS analysis of the rulemaking. Based on this  !

analysis, I recomend that you approve the rulemaking, and that you sign both {

the Federal Register Notice and the Delegaticn of Authority.

i l

Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards IMAB -ADM VMiller WGMcDonald

Enclosures:

As stated / /87 / /87 0FC: IMDB : IMOS  : IMDB  : IMN5  : OGC  : NM55  : NM55  :

NAME:GDeegan:jp:RMWilde : JWNHickey: RECunningham::SATreby :RBernero:HLTHompson:

DATE: / /87 : / /87: / /87 : / /87  : / /87 : / /87: / /87  :  ;

0FFICIAL RECORD COPY

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i MEMORANDUM FOR:' Regional Administrators i

FROM: Victor Stello, Jr.

Executive Director for Operations Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards

SUBJECT:

DELEGATION AND ASSIGNMENT FOR THE U.S. NAVY MATERIALS LICENSING ACTIONS TO THE APPROPRIATE REGION l

1. Pursuant to NRC Manual Chapter 0128, " Organization and Functions-Reginnal- l Offices," the Regional Administrators are hereby assigned and authorized- j (hereafter referred to as authorized) to perform certain licensing  !

actions as described herein, effective October 1,1987. This authorization i supersedes.the previous delegations issued to Regions I and III effective May 27, 1982 and to all Regions on April 1,1983 (published April'14,1983),

April 2, 1984, April 2, 1985, and September 26, 1986. Specifically, this action transfers licensing authority for the U.S. Navy materials license from the Office of Nuclear Material Safety and Safeguards (NM55) to Region II.

2. Under the Atomic Energy Act of 1954, as amended, and the Energy Reorganization Act of 1974, as amended NMSS is responsible for the principal licensing, regulation, and safeguarding of facilities and materials specified in the Atomic Energy Act of 1954 associated with the processing, transport, and handling of source, byproduct, and special nuclear materials (hereafter referred to as nuclear materials). Consequently, NMSS will remain respon-sible for detennining overall licensing, inspection, and regulatory policy i for actions which the Regions have been authorized to perform pursuant to 1 this memorandum. To enable NMSS to execute this responsibility properly, NMSS will maintain oversight of these licensing and inspection actions.  ;

This oversight shall include, but not be limited to, ongoing review of documentation, periodic assessments of activities being conducted by the Regions, and the ongoing coordination and consultation between NMSS and l the Regions regarding authorized licensing and inspection actions. The i NMSS Director retains the authority to take actions determined necessary I in all matters hereby authorized to be performed by the Regions. j

3. All Regional Administrators are authorized to issue, renew, amend, cancel, modify, suspend, or revoke, under the provisions set out by this delegation, licenses for nuclear materials issued pursuant to 10 CFR .i Parts 30 through 35, 40, and 70 to all Federal facilities ~ throughout the United States under NRC jurisdiction and to all persons in non-Agreement States, Guam, Puerto Rico, the Virgin Islands and the District of  !

Columbia for academic, medical, and industrial uses, with the following exceptions:

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Regional Administrators 2 A. Activities in the fuel cycle and special nuclear material in i quantities sufficient to constitute a critical. mass in any room or l area. This exception does not apply to license modifications-relating to termination of special nuclear material: licenses that authorize possession of larger quantiti n-t case is referred for action from the Nuclear Regulato . ommisison's headquarters.to Y. '

the Regional Adicinistrator. - /

B. Health and safety design review of sealed sources and devices,'and approval, for licensing purposes, of sealed sources and devices.

C. Processing of source material for extraction of metallic compounds (includingZirconium, Hafnium, Tantalum, Titanium, Niobium,~etc.)

D. Distribution of products containing radioactive material to persons exempt pursuant to 10 CFR Parts 32.11 through 32.26.

E. New uses or techniques for use of byproduct, source, or special nuclear material.

4. All Regional Administrators are authorized to issue, with the concurrence l of the NMSS Director, notices of the denial or the proposed denial of  !

applications for materials licenses and amendments or renewals thereof, l pursuant to 10 CFR Part 2, within the parameters delineated in paragraph j 3 above.

5. Actions initiated by the Regional Administrator to suspend.. modify, or revoke licenses must have the concurrence of the NMSS Director. I i

6. All Regional Administrators are authorized to respond to all Freedom of Information Act inquiries as well as inquiries from Congress, the media and others about licensing actions the Regions have the authority to i perform.

7. Actions pertaining to the disposal of nuclear material by burial or unprecedented method must have concurrence of the NMSS Director.

8. All matters which arise that reasonably could be expected to have policy implications relating to delegated licensing actions shall be referred to the NMSS Director for resolution. If a licensing and/or regulations matter arises which has not been specifically authorized pursuant to this.

memorandum, it remains the responsibility of NMSS until a specific i authorization is made to the Regions.  !

9. Disagreements which arise between NMSS and Regional staffs on whether or not an issue constitutes an item which remains the responsibility of NMSS, or on the way in which a delegated item (s) has been handled will be referred to the NMSS Director who will consult with the Regional Administrator prior to issuing a final resolution.

i Regional Administrators 3 f 10 Disagreements between potential or existing licensees relative to decisions made by the Regional Administrators pertaining to license actions should be made known imediately 'to the NMSS Director. If-resolution cannot be achieved at the Regional level, the applicant /

licensee shall be informed in writing by the Regional Administrator, 1 with a copy to the NMSS Director, that it may' seek resolution of the .l matter with the NMSS Director.

11. Delegsted licensing actions are to be performed in accordance with policy guidance and standard review plans issued by the NMSS Director.

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12. NMSS will provide a copy of this delegation, related . revisions, and other related documents to the Deputy Executive Director for Regional ,

Operations and the Assistant General Counsel for Enforcement, Office of the General Counsel.

l Victor 5tello, Jr. l Executive Director  !

for Operations l

I Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards l

l IMAB ADM VMiller WGMcDonald

/ /87 / /87 0FC: IMDB : IMDB  : IMDB  : IMNS  : OGC  : NM55  :- NMSS  :

NAME:GDeegan:jp:RMWilde : JWNHickey: RECunningham::SATreby :RBernero:HLTHompson:

DATE: / /87 : / /87: / /87  : / /87  : / /87  : / /87: / /87  :

OFFICIAL RECORD COPY

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[7590-01]'

, NUCLEAR REGULATORY

- COMMISSION 10 CFR Parti 30,~40, and 70 Regional Nuclear Materials Licensing for the' United States' Navy l: AGENCY: Nuclear Regulatory Commission.

ACTION- Final rule.

SUMMARY

The NRC is awnding its regulations concerning the domestic licensing of source, byproduct, and special nuclear material (collectively referred to as nuclear materials) to provide for further decentralization of the NRC-

. licensing process. This amendment extends to the Region' II Office the same authority for the United States Navy license as they now possess'for nearly-all other Federal' activities.

'l EFFECTIVE DATE: October 1. 1987 q

FOR FURTHER INFORMATION CONTACT:- George J. Deegan, Program Analyst,  !

Operations Branch, Division of Industrial;and Medical Nuclear Safety, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear' l Regulatory Commission, Washington, DC 20555 Telephone:.(301).427-4114. . l l

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SUPPLEMENTARY INFORMATION: Each year since 1982, (May 27, 1982; 47 FR 23138)

(April'14, 1983; 48 FR 16030) (May 9, 1984; 49 FR 19630) (April 15, 1985; 50FR14692)(October 8,1986; 51 FR 35999) the Nuclear Regulatory Consnission (NRC) published rules decentralizing most domestic licensing of nuclear-materials. The NRC is amending its regulations to include the United States Navy license in its decentralization program.

The NRC recently consolidated approximately one hundred eighty individual United States Navy licenses into one " master" license with many individual pennits. During the consolidation and for a short time after it, Headquarters retained the regulatory authority for the Navy licensing effort to maintain continuity. NRC Headquarters is now prepared to transfer this authority to the appropriate Regional Office, consistent with similar delegations which affected nearly all other Federal licenses in 1985 and 1986.

With respect to licenses issued pursuant to 10 CFR Part 30 through 35, 40,'and /

l 70, revisions to 10 CFR 30.6, 40.5, and 70.5 would require the Navy to contact the appropriate Regional office, rather than NRC Headquarters offices, for license applications, renewals, and revisions. This action now incorporates l the U.S. Navy license into the NRC Regional materials licensing program.

Delegations of authority to the Regional Administrator are contained in NRC-Manual Chapter 0128. The changes to il 30.6, 40.5, and 70.5 are nonsubstantive amendments. The revised sections indicate the type of licensing authority delegated to the Regional Administrator.

Because these are amendments dealing with Agency practice, procedure, and organization, the notice and comment provisions of the Administrative l Procedure Act do not apply pursuant to 5 U.S.C. 553 (b)(A). The amendments  ;

i are effective October 1, 1987. Good cause exists to dispense with the usual i 30-day delay in the effective date because the amendments are of a minor'and administrative nature dealing with a matter of Agency practice that for 1 l

administrative convenience should begin with a new fiscal year.

__._m _ . _ _ __ _ _ _ __ _ _ _ _ . _ ____.mmm_._.

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ENVIRONMENTAL IMPACT - CATEGORICAL EXCLUSION The NRC has determined that this final rule is the type of action described in {

categoricalexclusion10CFR51.22(c)(3)(i). Accordingly, pursuant. to 10 CFR )

51.22(b),neitheranenvironmentalimpactstatementnoranenvironmental )

assessment has been prepared for this final rule.  !

)

PAPERWORK REDUCTION ACT STATEMENT

.)

l This final rule does not contain a new or amended information collection I requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). Existing requirements were approved by the Office of Management and Budget approval numbers 3150-0017 for Part 30, 3150-0016 for Part 31, 3150-0001 for Part 32, 3150-0015 for Part.33, 3150-0007 for Part 34, 3150-0010 for Part 35, 3150-0020 for Part 40, and 3150-0009 for Part 70.

LIST OF SUBJECTS IN 10 CFR PARTS 30, 40, AND 70 Part 30 - Byproduct material, Government contracts. Intergovernmental relations,  ;

Isotopes, Nuclear materials, Penalty, Radiation protection, Reporting and recordkeeping requirements.

Part 40 - Government contracts, Hazardous materials-transportation, Nuclear  !

materials, Penalty, Reporting and recordkeeping requirements, Source material, i and Uranium.

Part 70 - Hazardous materials-transportation, Nuclear materials, Packaging and' containers, Penalty, Radiation protection, Reporting and recordkeeping requirements, Scientific equipment, Security measures, Special nuclear material.

Under the Atonic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 552 and 553, the following amendments to 10 CFR Parts 30, 40, and 70 are published as a document subject to codification. l

4 PART 30 - RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF BYPRODUCT MATERIAL i

1. The authority citation for Part 30 is revised to read as follows:

AUTHORITY: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as amended, 202, 206, 88 Stat. 1242, 1244, 1246(42U.S.C.5841,5842,5846).

Section 30.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C.

5851). Section 30.34(b) also issued under sec. 164, 68 Stat. 954, as amended l (42U.S.C.2234). Section 30.61 also issued under sec. 187, 68 Stat. 955 (42 i

U.S.C. 2237). )

For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); QS 30.3, 30.34(b) and (c), 30.41(a) and (c), and 30.53 are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); and 95 30.6, 30.36, 30.51, 30.52, 30.55, and 30.56(b) and (c) are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

2. In 6 30.6, paragraphs (b)(2) (1), (ii), (iii), (iv), and (v) are amended by deleting the phrase, "With the exception of the United States Navy." Also the introductory text of paragraph (b) and paragraph (b)(1) are revised to read as follows:

630.6 Communications. ,

(b) The Commission has delegated to the five Regional Administrators licensing authority for selected parts of its decentralized licensing program for nuclear materials as described in paragraph (b)(1) of this section. Any communication, report, or application covered under this licensing program must be submitted as specified in paragraph (b)(2) of this section.

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51 (1) The delegated licensing program. includes authopity toiissue,

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renew, amend, cancel, modify, suspend,' or revoki licenses for nuclear materials' issued pursuant.to.10 CFR Parts 30 through 35,.40, and 70 to all persons'for academic, medical, and; industrial uses, with the following 'except',ons:-

(i) . Activities in.the fuel cycle and.special nuclear material'ini '

I L quantities sufficient to constitute'a criticalfmass in any ,

room or area; This exception does not apply.to license: ,  !

-modifications relating.to termination of special. nuclear; material' licenses that' authorize possession ofi larger '

quantities.when the case is referred for action'from'NRC's.:

Headquarters to the Regional Administrators. l (ii) Health and safety design review of sealed sources ~ and devices and approval, for. licensing purposes,.of. sealed sources and devices. , j i

l (iii) Processing of source material for extracting of metallic compounds (includingZirconium, Hafnium, Tantalum, Titanium,-

Niobium,etc.).

l (iv) Distribution of products containing radioactivelmaterial to ,

c a persons exempt pursuant 10 CFR 32.11 through 32.26.

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-I (v) New uses or techniques for use of. byproduct, source, or special nuclear material. 1

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6 PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL

3. .The authority citation for Part 40 is revised to read as follows:

AUTHORITY: Secs. 62,.63, 64,.65, 81. 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L. 95- .

604, 92 Stat. 3033, as amended. 3039, sec. 234, 83 Stat. 444, as amended

[42U.S.C.2014(e)(2),'2092,2093,2094,'2095,2111,2113,2114.2201,2232,-

2236, 2282]; sec. 274, Pub. L.86-373, 73 Stat. 688-(42 U.S.C. 2021); secs.x 201, as amended, 202, 206, 88 Stat. 1242, as amended , 1244,1246'(42U.S.C.

5841, 5842, 5846); sec. 275, 92 Stat. 3021,. as amended by Pub. L.97-415, j 96 Stat. 2067 (42 U.S.C. 2022).

Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951-(42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 68 Stat. 939 l (42U.S.C.2152). Section 40.46 also issued under sec. 184, 68' Stat. 954, as I amended (42 U.S.r. 2234). Section 40.71 also issued under sec.187, 68 Stat.

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955 (42 U.S.C. 2237). l For the purposes of sec. 223, 68 Stat. 958, as amended-(42 U.S.C. 2273); il 40.3, 40.25(d)(1)-(3),40.35(a)-(d),40.41(b)and(c),'40.46,40.51(a)and(c),and

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40.63areissuedundersec.161b,68 Stat.948,asamended:(42U.S.C.2201(b));  !

and9940.5,40.25(c),(d)(3),and-(4),40.26(c)(2),40.35(e),40.42,40.61,,  !

l 40.62, 40.64, and 40.65 are issued under sec. 1610, 68 Stat. 950, as amended (42U.S.C.2201(o)). l l

4. In i 40.5, paragraphs (b)(2) (1), (ii), (iii), (iv), and (v) are amended by  ;

deleting the phrase, "With the exception of the United States Navy."' Also, the -l introductory text of paragraph (b) and paragraph (b)(1) are-revised' to read as follows: l 5 40.5 Communications.

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i (b) The Commission has delegated to the.five Regional Administrators j licensing authority for selected _ parts of its decentralized licensing program for nuclear materials as described in paragraph (b)(1)' of this section. Any communication, report, or application covered j under this licensing program must be submitted as specified in paragraph (b)(2)ofthis.section.

(1) The delegated licensing program includes authority to issue, renew, amend, cancel, modify, suspend, or revoke licenses for .

nuclear materials issued pursuant to 10 CFR Parts 30 through 35, 40, and 70 to all persons for academic, medical, and industrial uses, with the following exceptions: )

1 (i) Activities in the fuel cycle and special nuclear material in quantities sufficient to constitute a critical mass in any room or area. This exception does not apply to-license modifications relating to tennination of special nuclear material licenses that authorize possession of larger i quantities when the case is referred for action from NRC's j Headquarters to the Regional Administrators.  ;

l (ii) Health and safety design review of sealed sources and devices and approval, for licensing purposes, of sealed sources and devices.

(iii) Processing of' source material for extracting of metallic l compounds (including Zirconium, Hafnium, Tantalum, Titanium, Niobium,etc.).

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l (iv) Distribution of products containing-radioactive material to persons exempt pursuant 10 CFR 32.11 through 32.26. ,

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(v) New uses or techniques for use of byproduct, source, or.special  ;

nuclear material.

.i PART 70 - DOMESTIC LICENSING 0F SPECIAL NUCLEAR MATERIAL

5. The authority citation for Part 70 is revised to read as follows:

l AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929 930, 948, 953, 954,:as amended, sec. 234, 83 5 tat. 444, as amended (42 U.S.C. 2071, 2073, 2201, 2232, j 2282); secs. 201, as amended, 202, 204, 206, 88 Stat. 1242, as amended,.1244, 1245,1246(42U.S.C.5841,5842,5845,5846).

Section 70.7 also issued under Pub. L.95-601, sec.10, 92 Stat. 2951 (42 U.S.C.5851). Section 70.21(g) also issued under sec.122, 68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat.475(42U.S.C.2077). Sections 70.36 and 70.44 also issued under sec.

l 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 70.61 also issued l

under secs. 186, 187, 68 Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under sec.108, 68 Stat. 939, as amended (42 U.S.C. 2138).

For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273); 55 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 (1), 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), and'(h)-(j) are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); 55 70.7, 70.20a(a) and (d),

70.20b(c)and(e),70.21(c),70.24(b),70.32(a)(6),(c),(d),(e),and(g),

70.36,70.51(c)-(g),70.56,70.57(b)and(d),and70.58(a)-(g)(3)and(h)-(j) are issued under sec. 1611, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and 5570.5,70.20b(d)and(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) are issued under sec. '

1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

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6. In 9 70.5, paragraphs-(b)(2')-(1), (ii), (iii),-(iv), and (v) are amended by deleting the phrase, "With the exception of the United States Navy." Also, the introductory text of paragraph (b) and paragraph'(b)(1) are revised to read - 3 as follows:

670.5 Communications.

(b) The Comission has delegated.to the five Regional Administrators licensing authority for selected parts of its decentralized licensing program for nuclear materials as described in paragraph'(b)(1) of {

this section. Any communication, report, or application covered under this licensing program must be submitted as specified in )

paragraph (b)(2)ofthissection. )

(1) The delegated licensing program includes authority to issue, renew, amend, cancel, modify, suspend, or revoke licenses for nuclear materials issued pursuant to 10 CFR Parts 30 through

35, 40, and 70 to all persons for academic, medical, and I industrial uses, with the following exceptions

l (i) Activities in the fuel cycle and special nuclear material in quantities sufficient to constitute a critical mass in any room or area. This exception does not apply to license modifications relating to termination of special nuclear material licenses that authorize possession of larger l

quantities when the case is referred for action from NRC's Headquarters to the Regional Administrators.

(ii) Health and safety design review of sealed sources and' devices and approval, for licensing purposes, of sealed sources and I

devices.

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e 10 (iii) Processing of source material for-extracting of metallicj compounds (including Zirconium, Hafnium, Tantalum, Titanium, Niobium,etc.).

(iv) Distribution of products containing radioactive. material to-persons exempt' pursuant 10 CFR 32.11'through 32.26.

(v) New uses or' techniques for use of byproduct, source, or special nuclear material.

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Dated at Bethesda, MD, this day.of , 1987.

FOR THE NUCLEAR REGULATORY COMMISSION l

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Victor Stello, Jr.

Executive Director for Operations l

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NMSS OFFICE ANALYSIS FINAL RULE - REGIONAL' NUCLEAR MATERIALS LICENSING FOR THE UNITED STATES NAVY ISSUE / PROBLEM In 1986, NRC announced its intention to transfer. licensing authority for the

- U.S. Navy nuclear materie.ls licenses to the' appropriate Region..once those licenses were consolidated into one " master" license. The announcement was made in the Federal Register (51 FR 35999), the Daily' Staff Notes, and in congressional letters. Those U.S.-Navy licenses are.now consolidated.

NECESSITY FOR RULEMAKING To implement the announced policy decision described above in furtherance'of NRC decentralization of licensing authority.

ALTERNATIVES No justifiable alternative. Other Federal licensees are now under Regional authority.

SOLUTION Amend 10 CFR 30, 40, and 70 to eliminate current wording which excludes the U.S. Navy license from the decentralization program.

COSTS AND BENEFITS Only one nuclear materials licensee is affected. The U.S. Navy would be provided a Region-based NRC point of contact. Minor economic and administrative savings for both the Navy and the NRC should result from the action.

SCHEDULE Unless otherwise directed by the Commission, the EDO has the authority to sign, the rule and forward it to the Office of the Federal Register. The rule could become effective by October 1, 1987, and would require less than one-tenth of a staff year of effort.

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DELEGATION OF AUTHORITY FOR EDO PUBLICATION APPROVAL Approved for Publication The Consission 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 0.103, Organization and Functions, Office '

of the Executive Director for Operations, paragraphs 0213, 038, and 0310. The enclosed final rule entitled, " Regional Nuclear Materials Licensing for the United States Navy," amends 10 CFR Parts 30, 40,-and 70 to include the United ,

i States Navy license in the' decentralized materials licensing program.

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This final rule does not constitute a significant question of policy, nor does {

it amend regulations contained in 10 CFR Parts 7, 8, 9 Subpart C concerning l l matters of policy. I, therefore, find that this final rule is within the scope )

of my rulemaking authority and am proceeding to issue it.

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a Date Victor Stello, Jr.

l Executive Director for Operations l

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l' i L__________.

MEMORANDUM FOR: Donnie h. Grimsley, Director Division of Rules and Records, ARM FROM: Richard E. Cunningham, Director Division of Industrial and Medical Nuclear Safety, NMSS

SUBJECT:

FEDERAL REGISTER NOTICE FOR UNITED STATES NAVY NUCLEAR MATERIALS LICENSE The enclosed final rule entitled, " Regional Nuclear Materials Licensing for the U.S. Navy," amends 10 CFR Parts 30, 40, and 70 to include the Navy license in Region II's materials licensing program.

It is requested that your Office arrange for publication of the final rule in the Federal Register.

Richard E. Cunningham, Director Division of Industrial and Medical Nuclear Safety, NMSS

Enclosure:

As stated DISTRIBUTION:

NMSS R/F FC Central File FC File GDeegan VMiller RECunningham RMWilde JHickey BPineles 0FC: IMDB  : IMAB : IMOB :IM0B  : IMNS NAME:GJDeegen:jp :VLMiller:RMWilde : JHickey :RECunningham:

DATE: / /87  : / /87: /' /87: / /87 : 7/ /87  :

OFFICIAL RECORD COPY

r DAILY STAFF NOTES DIVISION OF INDUSTRIAL AND MEDICAL NUCLEAR SAFETY OFFICE OF NUCLEAR MATERIAL SAFETY'AND SAFEGUARDS Final Rule to be Signed by EDO On 1987, the Executive Director for Operations approved a final rule which revised 10 CFR Parts 30, 40, and 70. This revision informs the public of an action that transfers the nuclear materials licensing authority ~

for the United States Navy license from Headquarters to the appropriate Regional office (i.e., Region II). Nearly all other Federal licenses were -

transferred to the appropriate Regions in April 1985 under a similar Delegation of Authority and Federal Register Notice. The licensing authority for the United States Air Force license was transferred in a similar fashion to Region IV in 1986.

This constitutes notice to the Comission that, in accordance-with the rulemaking authority delegated to the EDO, the EDO has signed the final rule-and proposes to forward it on , 1987 to the Office of the Federal Register for publication, unless otherwise directed by the Comission,

o MEMORANDUM FOR: Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards I

FROM: Richard E. Cunningham, Director Division of Industrial and Medical Nuclear Safety, NMSS i

SUBJECT:

FINAL RULE - REGIONAL NUCLEAR MATERIALS LICFN3ING FOR THE UNITED STATES NAVY 1

Enclosed is the final rule packi.ge to transfer licensing authority for the U.S. J Navy " master" mat m als license from Headquarters to Region II.

Previously, we decentralized the bulk of the materials licensing ?rogram through similar actions in 1983, 1984, 1985, and 1986. The 1986 rule pactage included a statement which announced our intention to decentralize the Navy license after l their 180 or so licenses were consolidated. That consolidation is now complete, )

and Headquarters staff is confident that Region II will encounter no special )

problems because of the consolidation. This action executes a policy decision j approved and announced by the ED0 in the previous rulemakings.

In 1986, we transferred the U.S. Air Force license to Region IV in a similar ,

fashion. At that time, we received permission to forward the rulemaking I directly to the E00 for his signature without a regulatory analysis or en 1 independent review by the Office of Nuclear Regulatory Research (RES). This permission was probably given because this rule was a minor procedural issue.

(It was really little more than a change oi' mailing address affecting only one l licensee.) This transfer of the U.S. Navy license to Region II is procedurally 1 identical to the 1986 transfer of the U.S. Air Force license to Region IV. )

Therefore, we have followed the same course we followed in 1986. A memorandun I has been prepared for your signature clearly explaining this fact to the EDO. I I request that you sign the memorandum to the EDO recommending his approval, the congressional letters, and the Delegation of Authority.

Richard E. Cunningham, Director Division of Industrial and Medical Nuclear Safety

Enclosures:

As stated j OFC: IM0B : IM0B : IM0B  : IMAB  : IMNS  :

NAME:GDeegan:jp:RMWilde : JWNHickey :YLMiller :RECunningham: j DATE: / /87 : / /87: / /87  : / /87 : / /87  : '

0FFICIAL RECORD COPY I

_ _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1

Identical letters sent to: The Honorable Morris K. Udall, Chairman ,

Subcommittee on En::rgy and the Environment  !

Comittee on Interior and Insular Affairs-United States House of Representatives l Washington, D.C. 20515 ,

cc: Rep. Manuel Lujan, Jr. l

- and - <

The Honorable Philip R. Sharp, Chairman Subcommittee on Energy and Power l i

Comittee on Energy and Commerce j United States House of Representatives  :

Washington, D.C. 20515 )

cc: Rep. Carlos J. Moorhead The Honorable John B. Breaux, Chairman Subcommittee on Nuclear Regulation Comittee on Environment and Public Works j United States Senate la Washington, D.C. 20510 l

Dear Mr. Chairman:

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The Nuclear Regulatory Comission (NRC) has sent to the Office of the Federal Register for publication the enclosed revision to the Comission's rules in 10 CFR Parts 30, 40, and 70. <

This action extends to our Region II Office the licensing authority they already possess for most other Federal licensees to include the United States Navy licensing activities. Because the Navy program is operationally run from l Yorktown and Norfolk, Virginia, NRC's Region II Office in Atlanta, Georgia, is the appropriate one to egulate the progr6m.

This rule will take effect on October 1,1987.

Sincerely, Hugh L. Thompson, Jr., Director Office of Nuclear Material {

Safety and Safeguards

Enclosure:

As stated l cc: Senator Alan K. Simpson l l

OFC: IM0B  : IMOB  : IM0B  : OGC  : IMAB  : IMN5  : IMNS  :

NAME:GDeegan:jp:RMWilde: JHickey:SATreby :VMiller :GLSjoblom :RECunningham:

DATE: / /87 : / /87: / /87 : / /87  : / /87: / /87  : / /87  :

OFC: GPA  : NM55  : NM55  :

NAME:JDelMedico: RMBernero : HLThompson Jr. :

DATE: / /87 : / /87  : / /87  :

0FFICIAL RECORD COPY

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The Honorable Norris K.. Udall, Chainnan DISTRIBUTION:

Subcommittee on Energy and the Environment FC Central Files NMSS R/F Committee on Interior and Insular Affairs FCOB Files GJDeegan United States House of Representatives REcunningham RMBernero Washington, D.C. 20515 HLThompson, Jr. JDelMedico, GPA SATreby, OGC JPhilips, R&R

Dear Mr. Chairman:

VLMiller JHickey RMWilde l l l The Nuclear Regulatory Commission (NRC) has sent to the Office of the Federal i f Register for publication the enclosed revision to the Conunission's rules in 10 CFR Parts 30, 40, and 70.

This action extends to our Region II Office the licensing authority they j already possess for most other Federal licensees to include the United States Navy licensing activities. Because the Navy program is operationally run from ,

Yorktown and Norfolk, Virginia, NRC's Region II Office in Atlanta, Georgia, is {

the appropriate one to regulate the program. j This rule will take effect on October 1, 1987.

Sincerely, i

Hugh L. Thompson, Jr., Director Office of Nuclear Material Safety and Safeguards

Enclosure:

As stated cc: Rep. Manuel Lujan, Jr.

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The Honorable Philip R. Sharp, Chairman DISTRIBUTION: ,

Subcommittee on Energy and Power FC Central Files NMSS'R/F j Comittee on Energy and Commerce RECunningham FCOB File United States House of Representatives HLTHompson Jr. JDelMedico, GPA. 1 Washington, D.C. 20515 DATreby, OGC JPhilips R&R J EAHeumann VLMiller

Dear Mr. Chairman:

RMBernero GDeegan f

The Nuclear Regulatory Comission (NRC) has sent to the Office of the Federal a Register for publication the enclosed revision to the Comission's rules in 10 CFR Parts 30, 40, and 70.

This action extends to our Region II Office the licensing authority they I already possess for most other Federal licensees'to . include the United States ]

Navy licensing activities. Because the Navy program is operationally run from. 4 Yorktown and Norfolk, Virginia, NRC's Region II Office -in. Atlanta, Georgia, is _

the appropriate one to regulate the program.

This rule will take effect on October 1, 1987.

Sincerely, Hugh L. Thompson, Jr., Director Office of Nuclear Material  ;

Safety and Safeguards

Enclosure:

As stated cc: Rep. Carlos J. Moorhead l

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