ML25030A278

OMB 3150-XXXX, Draft 2025 Supporting Statement, NRC Form 1121, Bankruptcy Information Request Form, Post Filing

ML25030A278
Person / Time
Issue date:	05/22/2025
From:	Brenneman K NRC/NMSS/DMSST/MSLB
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ML25030A272	List: ML25030A278 ML25030A288 ML25031A328 ML25036A149
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Download: ML25030A278 (6)

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DRAFT SUPPORTING STATEMENT FOR NRC FORM 1121, BANKRUPTCY INFORMATION REQUEST, POST FILING (3150-XXXX)

NEW Description of the Information Collection The U.S. Nuclear Regulatory Commission (NRC) is the Federal agency responsible for protecting the health and safety of the public and environment through regulating possession and use of the following radioactive materials:

Source material Special nuclear material Naturally occurring radioactive material (only specific activities)

Byproduct material (including distribution of exempt quantities)

When an entity that holds one or more radioactive material licenses declares bankruptcy, Title 10 of the Code of Federal Regulations (10 CFR) Section 30.34, Terms and conditions of licenses, requires that the entity must notify the NRC so that the agency can verify the safe disposition of all radioactive material possessed by the entitys licensed operations.

Following receipt of the bankruptcy notification, the NRC is proposing to use Form 1121, Bankruptcy Information Request, Post Filing, to collect information from the licensed entity regarding their plans to maintain sufficient radioactive material security as well as sustain adequate radiation protection program operations, as required by license condition and regulation, during the pendency of the licensees bankruptcy proceedings.

The NRC intends to collect information regarding radioactive material source security and radiation protection program continuance, as required by license condition and regulation, during the licensees bankruptcy proceeding duration. This information collection applies to all NRC licensees, including those regulated under 10 CFR Part 70 (i.e., fuel cycle facilities) or 10 CFR Part 50 (i.e., production or utilization facility).

This information is being collected to gain assurance that the licensee can comply with source security, license maintenance and other regulatory obligations during the bankruptcy process.

NRC Form 1121, Bankruptcy Information Request, Post Filing, provides the licensee with a list of questions relating to licensed activities during bankruptcy proceedings. The licensee will provide detailed responses regarding the licensees ability to maintain an adequate source security and satisfactory radiation protection program (as required by regulation) during the bankruptcy process.

A. JUSTIFICATION

1. Need For the Collection of Information The filing of a bankruptcy petition does not relieve a licensee from its obligation to comply with NRC requirements or the terms of its license. The license remains and will continue to remain in effect, pursuant to sections 81, 161, and 183 of the Atomic Energy Act of 1954 (the AEA), as amended (42 U.S.C. Sections 2111, 2201, and 2233) and NRC's regulations at 10 CFR 30.34, Terms and conditions of licenses, with respect to the possession, transfer, and storage of licensed radioactive material remaining in the licensee's possession, as contamination or in other forms, until NRC notifies the licensee, in writing, that the license is terminated.

After the NRC receives a licensees court notice of bankruptcy filing, the NRC would request the licensee to submit a completed NRC Form 1121. This form requests that licensees answer source security and radiation protection program continuance details for the pendency of the bankruptcy proceedings. The NRC would request the licensee to submit a completed NRC Form 1121 once, upon initial notice to the NRC.

The NRCs authority to collect this information is derived from Section 161c of the AEA, which states, In the performance of its functions the Commission is authorized tomake such studies and investigations, obtain such information, and hold such meetings or hearings as the Commission may deem necessary or proper to assist it in exercising any authority provided in this Act, or in the administration or enforcement of this Act, or any regulations or orders issued thereunder.

The NRC may continue to conduct inspections or engage in other regulatory activities during the pendency of a bankruptcy proceeding, including the issuance of orders, to assure public health and safety.

2. Agency Use and Practical Utility of Information The proposed use would be to gather information regarding the licensees ability to maintain adequate source security and license maintenance during the bankruptcy process.

The licensee response within Form 1121 will be reviewed by NRC specialists who will determine whether stated operational plans by the license will sustain essential controls during the bankruptcy proceedings. This information may result in reactionary inspections to affirm licensee ability to maintain radioactive source security, source control, radiation protection program oversight and other license responsibilities.

The form requests:

1. to identify all radioactive material licenses affected by the entitys bankruptcy.

This is to capture all licenses that may be affected by the bankruptcy filing.

2. to list radionuclides in current possession of each affected license. This is to capture the material(s) at risk, as a licensee may be authorized to possess numerous radionuclides but, at the time of bankruptcy filing, may hold only a portion of their authorized capacity.

3. to identify plans for disposal or transfer of radionuclides possessed by the licensee. This is to determine how the licensee intends to manage and control radioactive material during bankruptcy proceedings as source removal actions requires NRC notification.

4. to identify changes to source security and control since the bankruptcy filing. This is to determine whether new processes maintain level of security and control as was approved through initial license review.

5. to identify which sources are currently in use. This is to determine level of radiation source use during the bankruptcy process.

6. to determine whether there are changes to essential personnel who are required to be in place per regulation and license condition. This is to assure the licensee maintains the required organizational structure to effectively manage the use, security, and control of radioactive material.

7. to determine type of bankruptcy protection. This is to determine extent of protection from fee recovery as licensees who file for bankruptcy protection normally owe fees to the NRC.

8. to determine any future plans to change licensee operations related to security or control of radioactive material. This is to determine if licensee plans to change operational processes that will affect source security and control.

9. to indicate date of bankruptcy resolution. This is to determine timeline for NRC tracking as well as fee recovery.

10. to identify a contact for NRC inquiry. This is to determine consistent contact from an entity that may lose staff through attrition.

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 technology when it would be beneficial to them.

The licensee would be requested to provide the requested information on the form using owner-created documents, which can either be printed and mailed or sent by email. It is estimated that approximately 99 percent of responses will be submitted electronically by email.

Responses must be sent to the appropriate NRC Regional Administrator via the address identified in 10 CFR 30.6(b)(2) or the email address supplied at the bottom of Form 1121.

4. Effort to Identify Duplication and Use Similar Information No sources of similar information available. There is no duplication of requirements.

5. Effort to Reduce Small Business Burden The NRC Form 1121 is the least burdensome method to gain a documented response by the licensee of their intent to perform compliant actions.

The NRC staff estimates approximately 75 percent of potential respondents are small businesses as defined by the U.S. Small Business Association (SBA).

6. Consequences to Federal Program or Policy Activities if the Collection Is Not Conducted or Is Conducted Less Frequently If the information is not collected, NRC will have no way to assess whether bankruptcy conditions affect the licensees ability to manage radioactive material security, control, and use. A key concern is whether the licensee can maintain compliance with radiation safety requirements while upholding an adequate radiation safety program, despite the financial restrictions imposed by the bankruptcy.

The information is collected initially, upon bankruptcy notice to the NRC. If the information is collected less frequently, the extended intervals could compromise radiation source security and control. Timely information collection is required to assure that licensees maintain safety programs that adequately protect public health and safety.

7. Circumstances Which Justify Variation from OMB Guidelines Form 1121 requests a prompt response from the licensee which can be interpreted as a response submitted less than 30 days after receipt. If no response is submitted within 30 days, NRC staff will conduct a reactionary inspection of the licensee and source possession locations.

The NRC is requesting a prompt response from the licensee, rather than an immediate response, considering the added resources the licensee will expend for bankruptcy litigation. The prompt response term was a compromise considering the NRCs need for immediate information and the licensees ability to supply information concurrently with financial and personnel deficiencies related to the bankruptcy filing.

8. Consultations Outside the NRC Opportunity for public comment on the information collection requirements for this clearance package has been published in the Federal Register.

9. Payment or Gift to Respondents Not applicable.

10. Confidentiality of Information Bankruptcy information is part of the public record and will be accessible to the public; however, licensee program information will be considered confidential and proprietary and protected in accordance with NRC regulations at 10 CFR 9.17(a) and 10 CFR 2.390(b).

11. Justification for Sensitive Questions Not applicable.

12. Estimated Burden and Burden Hour Cost The NRC staff estimates the number of respondents to be 4 licensees per year, based on past historical bankruptcy notifications to the NRC, with one response per licensee.

The burden to complete the form is estimated to be 5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> per response, based on staff experience and the number and complexity of questions included on the form.

The total estimated annual burden is 20 hours2.314815e-4 days <br />0.00556 hours <br />3.306878e-5 weeks <br />7.61e-6 months <br /> (4 respondents x 5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> per response). The annualized cost to respondents would be $6,340 (20 hours2.314815e-4 days <br />0.00556 hours <br />3.306878e-5 weeks <br />7.61e-6 months <br /> per response x $317 per hour).

The $317 hourly rate used in the burden estimates is based on the NRCs fee for hourly rates as noted in 10 CFR 170.20, Average cost per professional staff-hour.

For updated information on the hourly rate for different professional staff, see the Revision of Fee Schedules, Fee Recovery for Fiscal Year 2024 final rule (89 FR 51789; June 20, 2024).

13. Estimate of Other Additional Costs No other additional costs are anticipated.

14. Estimated Annualized Cost to the Federal Government The staff has developed estimates of annualized costs to the Federal Government related to the conduct of this collection of information. These estimates are based on staff burden to review, analyze, and process the collected information and any relevant operational expenses.

NRC staff is expected to commit an average of 4 hours4.62963e-5 days <br />0.00111 hours <br />6.613757e-6 weeks <br />1.522e-6 months <br /> reviewing, processing, and analyzing each applicants request. Assuming 4 requests from licensees per year, an average annual total of 16 hours1.851852e-4 days <br />0.00444 hours <br />2.645503e-5 weeks <br />6.088e-6 months <br /> is expended on these activities. The average annual cost to the Federal Government is approximately $5,000 (16 hours1.851852e-4 days <br />0.00444 hours <br />2.645503e-5 weeks <br />6.088e-6 months <br /> x $317 per hour).

15. Reasons for Change in Burden or Cost This is a request for a new OMB Clearance.

16. Publication for Statistical Use Not applicable.

17. Reason for Not Displaying the Expiration Date The expiration date will be displayed.

18. Exceptions to the Certification Statement The collection of information does not employ statistical methods.

B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS Not applicable.