ML23184A056

10 CFR Part 74 OMB Renewal (3150-0123) Draft Supporting Statement

ML23184A056
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Issue date:	09/25/2023
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3150-0123
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DRAFT SUPPORTING STATEMENT FOR 10 CFR PART 74 MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL (3150-0123)

EXTENSION

Description of the Information Collection "Special nuclear material" (SNM) is defined by Title I of the A tomic Energy Act of 1954 as plutonium, or uranium enriched in the isotopes uranium-233 or u ranium-235 but does not include source material 1. The definition includes any other material that the Commissi on determines to be special nuclear material; however, the U.S. Nu clear Regulatory Commission (NRC) has not declared any other material as special nuclear ma terial. NRC regulations in Title 10 of the Code of Federal Regulations (10 CFR) Part 74 establis h requirements for material control and accounting (MC&A) of SNM applicable to licensees in general, and also specific performance based regulations for: (1) licensees authorized to possess and use strategic special nuclear material (SSNM), (2) licensees authorized to po ssess and use SNM of moderate strategic significance, and (3) licensees authorized to possess and use, or produce SNM of low strategic significance, and (4) Possess uranium source material and equipment capable of producing enriched uranium.

Under Part 74, licensees are required to conduct the following information collection activities:

• Notify the NRC of loss or theft of SNM,

• Keep records of receipt, inventory (including location and uniq ue identity),

acquisition, transfer, and disposal of all SNM in its possessio n regardless of its origin or method of acquisition,

• Establish an MC&A system, and

• Maintain a quality assurance program.

A. JUSTIFICATION

1. Need For and Practical Utility of the Collection of Informat ion

Part 74 of 10 CFR incorporates recordkeeping and reporting requ irements for licensees that possess and use SNM. The records required to be reported or maintained pursuant to 10 CFR Part 74 are described in Appendix A of this supporting statement. The submitted information is needed for the timely discovery of inadvertent losses of SNM to the environment, or the theft o r diversion of SNM by potentially hostile groups. Either of these events could endan ger the public health and safety. The reporting requirements imposed on the licensee are intended to point out record anomalies which might indicate loss of materia l control, to provide

1 Source Material means: (1) Uranium or thorium, or any combination thereof, in any physical or chemical form or (2) ores which contain by weight one-twentieth of one percent ( 0.05%) or more of: (i) Uranium, (ii) thorium or (iii) any combination thereof. Source material does not include special nuclear material. (10 CFR 40.4)

necessary information to resolve identified anomalies, to alert the Commission to the condition, and to supply information that would assist in the r ecovery of SNM in the event of a confirmed loss. Certain requirements are necessary to satisfy obligations of the United States Government under its agreement with the In ternational Atomic Energy Agency.

2. Agency Use of Information

Fundamental Nuclear Material Control Plans that describe how li censees intend to comply with the requirements of the regulations are required to be submitted for review and approval. Approved plans are the basis for inspecti ons by NRC inspectors who must verify that the licensee is in compliance w ith the performance objectives specified in the regulations. Plan reviews are init iated within 30 days after submittal. The availability of supporting acceptance criteria contributes to expeditious plan reviews. Reports of unresolved inventory diff erences and abnormalities identified through physical inventories, material control tests, and item monitoring are reviewed by the NRC as soon as possible after re ceipt. Records of material control tests and anomaly investigation are required t o be maintained by the licensees in order that inspectors may determine that performan ce objectives and commitments have been met.

3. Reduction of Burden Through Information Technology

There are no legal obstacles to reducing the burden associated with this information collection. The NRC encourages respondents to use information t echnology when it would be beneficial to them. NRC issued a regulation on Octobe r 10, 2003 (68 FR 58791), consistent with the Government Paperwork Elimination Ac t, which allows its licensees, vendors, applicants, and members of the public the o ption to make submissions electronically via CD-ROM, e-mail, special Web-base d interface, or other means. It is estimated that approximately 50% of the potential responses are filed electronically. Some licensees choose to submit hard cop ies to the document control center although the NRC allows electronic submissions.

4. Effort to Identify Duplication and Use Similar Information

No sources of similar information are available. There is no d uplication of requirements.

5. Effort to Reduce Small Business Burden

A number of licensees who use SNM are small businesses. Since the consequences to the common defense and security or to the healt h and safety of the public of the improper control or use of a given quantity of SN M are the same for large and small entities, it is not possible to reduce the burd en on small businesses by less frequent or less complete accounting or control procedu res. NRC staff estimates that 10% of respondents to information collections in 10 CFR Part 74 are small businesses.

6. Consequences to Federal Program or Policy Activities if the Collection Is Not Conducted or Is Conducted Less Frequently

If the information collection is not conducted, the NRC will ha ve no way to assess whether licensees are operating within the MC&A requirements an d certain other requirements applicable to the possession, use, and transfer of SNM.

Applications for new licenses and amendments may be submitted a t any time.

Applications for renewal of licenses can be for terms up to 10 years. Information submitted in previous applications may be referenced without be ing resubmitted.

The Loss of Material Report required by 10 CFR Section 74.11 is submitted on the average a total of three times per year across the entire indus try. In all occurrences, the cause is usually found in less than 1 week and is a result of measurement error, accounting error, number transposition, or failure to list all inventory items.

Approximately once a year during the occasional loss event, the quantity of material which is reported as lost requires further evaluation and a sub mission of a detailed report and proposed action plan to the NRC. Less frequent repo rting would preclude the NRC from being notified in time to provide rapid response a nd quick assistance in achieving timely resolution.

7. Circumstances Which Justify Variation from OMB Guidelines

Contrary to the Office of Management and Budget (OMB) Guideline s in 5 CFR Paragraph 1320.5(d), Section 74.11 requires that licensees subm it reports to the NRC in less than 30 days in accordance with the reporting requi rement specified in the subject regulation.

Section 74.11 of 10 CFR requires that reports of loss or theft or unauthorized production of SNM must be made within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of discovery. Thi s requirement is needed to permit NRC to determine whether there has been a loss or diversion of SNM or unauthorized production of material and to assist in ini tiating prompt action for recovery of such material.

8. Consultations Outside the NRC

Opportunity for public comment on the information collection re quirements for this clearance package has been published in the Federal Register.

9. Payment or Gift to Respondents

Not applicable.

10. Confidentiality of Information

Confidential and proprietary information is protected in accord ance with NRC regulations of 10 CFR Paragraph 9.17 (a) and 10 CFR Paragraph 2.390 (b).

Certain information designated as classified National Security Information is prohibited from public disclosure in accordance with Executive Order 12958.

11. Justification for Sensitive Questions

Not applicable.

12. Estimated Burden and Burden Hour Cost

The estimated burden for licenses to respond to 10 CFR Part 74 is 9,439 hours0.00508 days <br />0.122 hours <br />7.258598e-4 weeks <br />1.670395e-4 months <br /> (8,500 recordkeeping hours + 939 reporting hours) at a cost of $2,737,310 (9,439 hours0.00508 days <br />0.122 hours <br />7.258598e-4 weeks <br />1.670395e-4 months <br /> x $290/hour). See the supplemental Excel spreadsheet, P art 74 Burden Tables.

The $290 hourly rate used in the burden estimates is based on t he Nuclear Regulatory Commissions fee for hourly rates as noted in 10 CFR 170.20 Average cost per professional staff-hour. For more information on the basis of this rate, see the Revision of Fee Schedules; Fee Recovery for Fiscal Year 201 8 (87 FR 37197, June 22, 2022).

13. Estimate of Other Additional Costs

The NRC has determined that the quantity of records to be maint ained is roughly proportional to the recordkeeping burden and; therefore, can be used to calculate approximate records storage costs. Based on the number of page s maintained for a typical clearance, the records storage cost has been determined to be equal to 0.0004 times the recordkeeping burden cost. Because the record keeping burden is estimated to be 8,500hours, the storage cost for this clearance is $986 (8,500 hours0.00579 days <br />0.139 hours <br />8.267196e-4 weeks <br />1.9025e-4 months <br /> x 0.0004 x $290/hour).

14. Estimated Annualized Cost to the Federal Government

The staff has developed estimates of annualized costs to the Fe deral Government related to the conduct of this collection of information. Thes e estimates are based on staff experience and subject matter expertise and include the b urden needed to review, analyze, and process the collected information and any relevant operational expenses.

a. Review of Licensee Reports

The NRC staff review of licensee reports is estimated to take 1,200 hours0.00231 days <br />0.0556 hours <br />3.306878e-4 weeks <br />7.61e-5 months <br /> annually.

See the supplemental Excel spreadsheet, Part 74 Burden Tables.

b. Review of Licensee Records Average number Number of Record reviews Total NRC of inspections/yr MC&A per inspector Inspection Hours inspectors 11 2 100 2,200

The annual cost for NRC licensing and inspection staff to revie w the records and reports required by 10 CFR Part 74 is estimated to be 3,400 hou rs (1,200+ 2,200) at

$290/hour or $986,000.

15. Reasons for Change in Burden or Cost

The burden has increased from 8,909 hours0.0105 days <br />0.253 hours <br />0.0015 weeks <br />3.458745e-4 months <br /> to 9,439 hours0.00508 days <br />0.122 hours <br />7.258598e-4 weeks <br />1.670395e-4 months <br />, an in crease of 530 hours0.00613 days <br />0.147 hours <br />8.763227e-4 weeks <br />2.01665e-4 months <br />. NRC staff reviewed and updated the total number of recor dkeepers under 10 CFR Part 74 to ensure the total includes reactor licensees, ind ependent spent fuel storage installations, and research and test reactors subject t o 10 CFR Part 74. As a result of this review, the count of recordkeepers increased fro m 157 to 163. As a result of this adjustment, the number of responses has changed from 174 (157 recordkeepers plus 17 responses) to 183 (163 recordkeepers plus 20 responses).

In the last renewal, there were no licensed Category II facilit ies. In the current submission, one Category II facility has been included as a res pondent. One licensed Category II facility is not constructed or operating a nd is not yet included as a respondent. One additional application is under review; howe ver, no reporting or recordkeeping burdens will be incurred until after the three ye ar clearance period.

There has been an increase in the cost because the hourly fee r ate has increased from $278/hour to $290/hour.

16. Publication for Statistical Use

Not applicable.

17. Reason for Not Displaying the Expiration Date

The recordkeeping and reporting requirement for this informatio n collection are associated with regulations and are not submitted on instrument s such as forms or surveys. For this reason, there are no data instruments on whi ch to display an OMB expiration date. Further, amending the regulatory text of the CFR to display information that, in an annual publication, could become obsole te would be unduly burdensome and too difficult to keep current.

18. Exceptions to the Certification Statement

There are no exemptions.

B. Collections of Information Employing Statistical Methods Statistical methods are not used in this collection of informat ion.

APPENDIX A

DESCRIPTION OF INFORMATION COLLECTION REQUIREMENTS IN 10 CFR PART 74 MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL (3150-0123)

Section 74.11 requires each licensee who possesses one gram or more of contained uranium-235, uranium-233, or plutonium to notify the NRC Operations Cen ter within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of discovery of any loss or theft or other unlawful diversion of S NM which the licensee is licensed to possess, or any incident in which an attempt has been made t o commit a theft or unlawful diversion of SNM. The requirement to report within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of d iscovery does not pertain to measured quantities of SNM disposed of as discards or inventory difference quantities. Each licensee who operates a uranium enrichment facility is required to notify the NRC Operations Center within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> of discovery of any unauthorized productio n of enriched uranium. For centrifuge enrichment facilities the requirement to report enri chment levels greater than that authorized by license within 1 hour1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> does not apply to each casc ade during its start-up process, not to exceed the first 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />.

Section 74.13 (a)(b) requires each licensee, including nuclear reactor licensees as defined in Sections 50.21 and 50.22 of 10 CFR, possessing, or who had poss essed in the previous reporting period, at any one time and location, SNM in a quanti ty totaling one gram or more of contained uranium-235, uranium-233, or plutonium to complete an d submit, in computer-readable format Material Balance Reports, DOE/NRC Form 742, concerning SNM that the licensee has received, produced, possessed, transferre d, consumed, disposed, or lost.

The Physical Inventory Listing Report, DOE/NRC Form 742C, must be submitted with each Material Balance Report. Reporting burden for DOE/NRC Form 742 and 742C are covered under OMB Clearance Nos. 3150-0004 and 3150-0058, respectively. Any licensee who is required to submit routine Material Status Reports pursuant to 10 CFR Section 75.35 is required to prepare and maintain these reports only as provided in that section, as more fully described in OMB Clearance No. 3150-0055.

Section 74.15 (a)-(d) requires each licensee who transfers or r eceives SNM in a quantity of one gram or more of contained uranium-235, uranium-233, or plutoniu m to complete in computer-readable format a Nuclear Material Transaction Report, DOE/NRC Form 741. In addition, each licensee who adjusts the inventory in any manner, other than for transfers and receipts, is required to submit a Nuclear Material Transaction Report, in computer-readable format, to coincide with the submission of the Material Balance report. Each licensee who receives one gram or more of contained uranium-235, uranium-233, or plutonium from a foreign source is required to complete in a computer-readable format bo th the suppliers and receivers portion of the Nuclear Material Transaction Report. In order t o assure the accurate identification and measurement of the material received, the licensee is requi red to perform independent tests, and indicate these test results on the receivers portio n of the form. Each licensee who ships SNM in a quantity of one gram or more of contained uraniu m-235, uranium-233, or plutonium to a foreign recipient is required to complete in com puter-readable format the suppliers portion of the Nuclear Material Transaction Report. The licensee is required to complete the receivers portion only if a significant shipper-r eceiver difference as described in 10 CFR Sections 74.31, 74.43, or 74.59, as applicable, is ident ified. Reporting burden for DOE/NRC Form 741 is covered under OMB Clearance No.3150-0003. Any licensee required to submit inventory change reports pursuant to 10 CFR Section 75.3 4 is required to prepare and submit these reports only as provided in that section, as more fully described in OMB Clearance No. 3150-0055.

Section 74.17 requires each licensee subject to the requirement s of Sections 74.31, 74.33, or 74.41(a) of this part to submit a completed Special Nuclear Mat erial Physical Inventory Summary Report on NRC Form 327 not later than 60 calendar days from the start of each physical inventory required by Sections 74.31(c)(5), 74.33(c)(4 ), or 74.43(c)(7). Each licensee subject to the requirements of Section 74.51 is required to sub mit a completed NRC Form 327 not later than 45 calendar days from the start of each physical inventory required by Section 74.59(f). Reporting burden for NRC Form 327 is included in OMB Clearance No. 3150-0139.

Section 74.19 requires each licensee not subject to Sections 74.31, 74.33, 74.43, or 74.59 to keep records showing the receipt, inventory (including location and unique identity), acquisition, transfer, and disposal of all SNM in its possession regardless of its origin or method of acquisition. These records must be retained as long as the lic ensee retains possession of the material and for 3 years following transfer of the material. E ach record of transfer of SNM to other persons must be retained by the licensee who transferred the material until the Commission terminates the license authorizing the licensees po ssession of the material. Each record relating to material control or material accounting that is required by 10 CFR Part 74 or by license condition must be maintained and retained for the pe riod specified by the appropriate regulation or license condition. If a retention period is not otherwise specified by regulation or license condition, the licensee is to retain the record until t he Commission terminates the license that authorizes the activity that is subject to the recordkeepi ng requirement. Each licensee authorized to possess SNM in a quantity exceeding one effective kilogram at any one time are required to establish, maintain, and follow written material co ntrol and accounting procedures.

The licensee shall retain these procedures until the Commission terminates the license that authorizes possession of the material and retain any superseded portion of the procedures for 3 years after the portion is superseded. Each licensee not subje ct to Sections 74.31, 74.33, 74.43, or 74.59, who is authorized to possess SNM in a quantity greater than 350 grams contained in uranium-235, uranium-233, or plutonium, or any com bination thereof, is required to perform physical inventories at intervals not to exceed 12 mont hs. The records associated with each of these physical inventories must be retained until the C ommission terminated the license that authorized the possession of SNM.

Section 74.31(a)-(d) requires each licensee who is authorized t o possess and use more than one effective kilogram of SNM of low strategic significance, ex cluding sealed sources, at any site or contiguous sites subject to control by the licensee, ot her than a production or utilization facility licensed pursuant to Part 50 or 70 of 10 CFR, or opera tions involved in waste disposal, to implement and maintain a Commission-approved MC&A system that will achieve the general performance objectives as described in Section 74.31(a). To me et these general performance objectives, the MC&A system must include the capabilities as de scribed in Section 74.31(c).

The licensee is required to establish and maintain records that demonstrate that the general performance objectives and system capabilities have been met an d maintain these records for at least 3 years, unless a longer retention time is required by 10 CFR Part 75.

Section 74.33(a)-(c) requires each licensee who is authorized t o possess equipment capable of enriching uranium or operate an enrichment facility, and produc e, possess, or use more than one effective kilogram of SNM of low strategic significance at any site or contiguous sites, subject to control by the licensee, to establish, implement, an d maintain an NRC-approved MC&A system that will achieve the general performance objective s as described in Section 74.33(a). To meet these general performance objectives, the MC &A system must include the capabilities as described in Section 74.33(c). The licensee is required to establish and maintain records that demonstrate that the general performance objective s and system capabilities have been met and maintain these records for at least 3 years, unles s a longer retention time is required by 10 CFR Part 75.

Section 74.41(a)-(c) requires each licensee who is authorized t o possess SNM of moderate strategic significance or SNM in a quantity exceeding one effec tive kilogram of SSNM in irradiated fuel reprocessing operations other than as sealed so urces and to use this material at any site other than a nuclear reactor licensed pursuant to Part 50 of 10 CFR; or as reactor irradiated fuels involved in research, development, and evaluat ion programs in facilities other than irradiated fuel reprocessing plants; or an operation invol ved with waste disposal, to establish, implement, and maintain a Commission-approved MC&A s ystem that will achieve the performance objectives as described in Section 74.41(a).

Section 74.43 (a)-(c) requires licensees subject to Section 74. 41 to maintain the internal control, inventory, and recordkeeping capabilities as described in this section. The licensee must establish records that will demonstrate that the general perfor mance objectives of Section 74.41(a) and the system capabilities as described in Sections 7 4.43 and 74.45 have been met, and maintain these records for at least 3 years, unless a longe r retention time is required by 10 CFR Part 75.

Section 74.45 requires licensees subject to Section 74.41 to es tablish and maintain the measurement and measurement control capabilities as described i n this section.

Section 74.51(a)-(c) requires each licensee who is authorized t o possess five or more formula kilograms of SSNM and to use such material at any site, other t han a nuclear reactor licensed pursuant to Part 50 of 10 CFR, an irradiated fuel reprocessing plant, an operation involved with waste disposal, or an independent spent fuel storage facility l icensed pursuant to Part 72 of 10 CFR to establish, implement, and maintain a Commission-appro ved MC&A system that will achieve performance objectives as described in Section 74.51(a). To meet these general performance objectives, the MC&A system must provide the capabi lities as described in Sections 74.53, 74.55, 74.57, and 74.59.

Section 74.57(c)-(f)(2) requires licensees subject to Section 7 4.51 to provide the MC&A alarm resolution capabilities as described in this section. Licensee s are required to resolve the nature and cause of any MC&A alarm within approved time periods. Each licensee is required to notify the NRC Operations Center by telephone of any MC&A alarm that r emains unresolved beyond the time period specified for its resolution in the licensee's fundamental nuclear material control plan. Notification must occur within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> except when a ho liday or weekend intervenes in which case the notification must occur on the next scheduled wo rkday.

Section 74.59 (b)-(h) requires licensees subject to Section 74. 51 to provide the quality assurance and accounting capabilities described in this section. These capabilities include management structure; personnel qualification and training; mea surements and measurement control; physical inventory; accounting; and internal control. The licensee is required to establish and maintain records that demonstrate that requiremen ts of Sections 74.53, 74.55, 74.57, and 74.59 have been met and retain those records for at least 3 years, unless a longer retention time is required by 10 CFR Part 75.

APPENDIX B

GUIDANCE DOCUMENTS FOR INFORMATION COLLECTION REQUIREMENTS IN 10 PART 74 MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL (3150-0123)

Document ADAMS Accession Number NUREG-1280, Revision 1, Standard Format ML031340295 and Content Acceptance Criteria for the Material Control and Accounting (MC&A)

Reform Amendment NUREG-2159, Revision 1, Acceptable ML22143A963 Standard Format and Content for the Fundamental Nuclear Material Control Plan Required for Special Nuclear Material of Moderate Strategic Significance NUREG-1065, Revision 2, Acceptable ML031340288 Standard Format and Content for the Fundamental Nuclear Material Control (FNMC) Plan Required for Low Enriched Uranium Facilities NUREG/CR-5734, Recommendations to the ML031340297 NRC on Acceptable Standard Format and Content for the Fundamental Nuclear Material Control (FNMC) Plan Required for Low Enriched Uranium Facilities