View source for SECY-08-0059, Draft Rule Text Table for Preliminary Information for Public Meeting on August 28, 2018

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| number = ML18233A387
| issue date = 08/28/2018
| title = Draft Rule Text Table for Preliminary Information for Public Meeting on August 28, 2018
| author name = 
| author affiliation = NRC/NMSS
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| contact person = Young T
| case reference number = SRM-SECY-08-0059
| document type = Meeting Briefing Package/Handouts, Rulemaking- Final Rule
| page count = 53
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{{#Wiki_filter:Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 The draft final rule is limited to revising and consolidating the MC&A regulations in 10 CFR Part 74 (SRM-SECY-08-0059, February 5, 2009). The information in the table shows the sections in 10 CFR Part 74 that are being changed and the conforming changes that are being made in 10 CFR Parts 40, 60, 63, 70, 72, and 150.
Current Rule                               Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
PART 40 -- DOMESTIC LICENSING OF SOURCE MATERIAL Records, Reports, and Inspections
 &sect; 40.64 Reports.                                 2, In &sect; 40.64, revise paragraphs (b)(1) and [In &sect; 40.64, revise paragraphs (b)(1) and (2) to read as follows:                      (2) and (d)(3) to read as follows:]
(b) Except as specified in paragraphs (d)                 (b)     *       *      *                    (b)     *        *
* and (e) of this section, each licensee who:
(1) Possesses, or had possessed in the                    (1) Possesses, or had possessed             (1) Possesses, or had possessed in previous reporting period, at any one time in the previous reporting period, at any           the previous reporting period, at any one and location, one kilogram or more of            one time and location, one kilogram or       time and location, one kilogram or more of uranium or thorium source material with          more of uranium or thorium source            uranium or thorium source material with foreign obligations as defined in this part,     material with foreign obligations as defined foreign obligations as defined in this part, shall document holdings as of September          in this part, shall document holdings as of  shall document holdings as of September 30 of each year and submit to the                September 30 of each year and submit to      30 of each year and submit to the Commission within 30 days, a statement           the Commission within 30 days, a             Commission within 30 days, a statement of its source material inventory with foreign statement of its source material inventory      of its source material inventory with foreign obligations as defined in this part.             with foreign obligations as defined in this  obligations as defined in this part.
Alternatively, this information may be           part. Alternatively, this information may be Alternatively, this information may be submitted with the licensees material           submitted with the licensees material       submitted with the licensees material status reports on special nuclear material       status reports on SNM filed under part 74    status reports on SNM special nuclear filed under part 72 or 74 of this chapter, as of this chapter, as a statement of its          material filed under part 74 of this chapter, a statement of its source material               source material inventory with foreign       as a statement of its source material inventory with foreign obligations as            obligations as defined in this part. This    inventory with foreign obligations as defined in this part. This statement must        statement must be submitted to the           defined in this part. This statement must be submitted to the address specified in         address specified in the reporting           be submitted to the address specified in the reporting instructions in NUREG/BR-          instructions in NUREG/BR-0007, and           the reporting instructions in NUREG/BR-0007, and include the Reporting                  include the Reporting Identification Symbol 0007, Instructions for the Preparation and Identification Symbol (RIS) assigned by          (RIS) assigned by the Commission to the      Distribution of Material Status Reports, the Commission to the licensee.                  licensee.                                    Final Draft (DOE [U.S. Department of Energy]/NRC Forms 742 and 742C) and, and include the Reporting Identification Symbol (RIS) assigned by the Commission to the licensee.
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Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
(2) Possesses, or had possessed in the                  (2) Possesses, or had possessed             (2) Possesses, or had possessed in previous reporting period, one kilogram or     in the previous reporting period, one        the previous reporting period, one more of uranium or thorium source              kilogram or more of uranium or thorium       kilogram or more of uranium or thorium material pursuant to the operation of          source material pursuant to the operation    source material pursuant to the operation enrichment services, downblending              of enrichment services, downblending         of enrichment services, downblending uranium that has an initial enrichment of      uranium that has an initial enrichment of    uranium that has an initial enrichment of the U235 isotope of 10 percent or more, or     the U-235 isotope of 10 percent or more,     the U uranium-235 isotope of 10 percent in the fabrication of mixed-oxide fuels shall  or in the fabrication of mixed-oxide fuels   or more, or in the fabrication of mixed-complete and submit, in computer-              shall complete and submit, in computer-      oxide fuels shall complete and submit, in readable format, Material Balance and          readable format, Material Balance and        computer-readable format, Material Physical Inventory Listing Reports             Physical Inventory Listing Reports           Balance and Physical Inventory Listing concerning all source material that the        concerning all source material that the      Reports concerning all source material licensee has received, produced,               licensee has received, produced,             that the licensee has received, produced, possessed, transferred, consumed,              possessed, transferred, consumed,            possessed, transferred, consumed, disposed of, or lost. Reports must be          disposed of, or lost. Reports must be        disposed of, or lost. Reports must be submitted for each Reporting Identification    submitted for each RIS account including     submitted for each RIS account including Symbol (RIS) account including all holding     all holding accounts. Each licensee shall    all holding accounts. Each licensee shall accounts. Each licensee shall prepare and      prepare and submit these reports as          prepare and submit these reports as submit these reports as specified in the       specified in the instructions in             specified in the instructions in instructions in NUREG/BR-0007 and              NUREG/BR-0007 and NMMSS Report D-            NUREG/BR-0007 and NMMSS Report D-NMMSS Report D-24, Personal                  24, Personal Computer Data Input for       24, Personal Computer Data Input for Computer Data Input for NRC Licensees.       NRC Licensees. These reports must          NRC Licensees. These reports must These reports must document holdings as        document holdings as of September 30 of      document holdings as of September 30 of of September 30 of each year and must be       each year and must be submitted to the       each year and must be submitted to the submitted to the Commission within 30          Commission within 30 days. Alternatively,    Commission within 30 days. Alternatively, days. Alternatively, these reports may be      these reports may be submitted with the      these reports may be submitted with the submitted with the licensees material         licensees material status reports on        licensees material status reports on status reports on special nuclear material     special nuclear material filed under part 74 special nuclear material filed under part 74 filed under parts 72 or 74 of this chapter. of this chapter. Copies of the reporting     of this chapter. Copies of the reporting Copies of the reporting instructions may       instructions may be obtained either by       instructions may be obtained either by be obtained either by writing to the U.S.      writing to the U.S. Nuclear Regulatory       writing to the U.S. Nuclear Regulatory Nuclear Regulatory Commission, Division        Commission, Division of Fuel Cycle Safety    Commission, Division of Fuel Cycle of Fuel Cycle Safety and Safeguards,           and Safeguards, Washington, DC 20555-        Safety, and Safeguards, and Washington, DC 20555-0001, or by e-mail        0001, or by e-mail to                        Environmental Review, Washington, DC to RidsNmssFcss@nrc.gov. Each licensee         RidsNmssFcss.Resource@nrc.gov. Each          20555-0001, or by e-mail to required to report material balance,           licensee required to report material         RidsNmssFcse.Resource@nrc.govRidsN 2

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                      Draft Final Rule (08/2018) inventory, and/or foreign obligation             balance, inventory, and/or foreign          mssFcss.Resource@nrc.gov. Each information, as detailed in this part, shall     obligation information, as detailed in this licensee required to report material resolve any discrepancies identified during      part, shall resolve any discrepancies       balance, inventory, and/or foreign the report review and reconciliation             identified during the report review and     obligation information, as detailed in this process within 30 calendar days of               reconciliation process within 30 calendar   part, shall resolve any discrepancies notification of a discrepancy identified by      days of notification of a discrepancy       identified during the report review and the NRC.                                         identified by the NRC.                      reconciliation process within 30 calendar
                                                        *       *       *       *
* days of notification of a discrepancy identified by the NRC.
(d)      *       *       *
(3) Chemical catalysts containing uranium depleted in the Uuranium-235 isotope to 0.4 percent or less, if the uranium content of the catalyst does not exceed 15 percent by weight; or PART 60DISPOSAL OF HIGH-LEVEL RADIOACTIVE WASTES IN GEOLOGIC REPOSITORIES Subpart DRecords, Reports, Tests, and Inspections
&sect; 60.78 Material control and accounting                                                      [In &sect; 60.78, remove the reference , 72.74, records and reports.                                                                         72.76, and 72.78 and add in its place the reference and 72.74.]
: 4. Revise &sect; 60.78 to read as follows:
DOE shall implement a program of                                                             DOE shall implement a program of material control and accounting (and                                                         material control and accounting (and accidental criticality reporting) that is the                                                accidental criticality reporting) that is the same as that specified in &sect;&sect; 72.72, 72.74,                                                   same as that specified in &sect;&sect; 72.72, 72.74, 72.76, and 72.78 of this chapter.                                                            72.76, and 72.78 of this chapter.
PART 63-DISPOSAL OF HIGH-LEVEL RADIOACTIVE WASTES IN A 3

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                         Draft Final Rule (08/2018)
GEOLOGIC REPOSITORY AT YUCCA MOUNTAIN, NEVADA Subpart DRecords, Reports, Tests, and Inspections
&sect; 63.78 Material control and accounting                                                          [In &sect; 63.78, remove the reference , 72.74, records and reports.                                                                             72.76, and 72.78 and add in its place the reference and 72.74.]
: 6. Revise &sect; 63.78 to read as follows:
DOE shall implement a program of                                                                 DOE shall implement a program of material control and accounting (and                                                             material control and accounting (and accidental criticality reporting) that is the                                                    accidental criticality reporting) that is the same as that specified in &sect;&sect; 72.72, 72.74,                                                       same as that specified in &sect;&sect; 72.72, 72.74, 72.76, and 72.78 of this chapter.                                                                72.76, and 72.78 and 72.74 of this chapter.
PART 70-DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL Subpart ELicenses
&sect; 70.32 Conditions of licenses.                  [In &sect; 70.32, revise paragraphs (c)(1)(i), (ii), [In &sect; 70.32, revise paragraphs (c)(1)(i) and (iii) to read as follows:]                  through (iii) to read as follows:]
(c)(1)                                                    (c)(1) *         *      *                       (c)(1) *        *       *
(i) The program for control and accounting                (i) The program for control and                 (i) The program for control and of uranium source material at an uranium         accounting of uranium source material at a      accounting of uranium source material at a enrichment facility and special nuclear          uranium enrichment facility and SNM at all      uranium enrichment facility and SNM material at all applicable facilities as         applicable facilities as implemented            special nuclear material at all applicable implemented pursuant to &sect; 70.22(b), or &sect;&sect;        pursuant to &sect; 70.22(b), or &sect;&sect; 74.31(b),         facilities as implemented pursuant to 74.31(b), 74.33(b), 74.41(b), or 74.51(c) of     74.33(b), 74.41(b), or 74.51(b) of this         &sect; 70.22(b), or &sect;&sect; 74.31(b), 74.33(b),
this chapter, as appropriate;                    chapter, as appropriate;                        74.41(b), or 74.51(b) of this chapter, as appropriate; (ii) The measurement control program for                  (ii) The measurement control                    (ii) The measurement control uranium source material at an uranium            program for uranium source material at a        program for uranium source material at a enrichment facility and for special nuclear      uranium enrichment facility and for SNM at      uranium enrichment facility and for SNM material at all applicable facilities as         all applicable facilities as implemented        special nuclear material at all applicable implemented pursuant to &sect;&sect; 74.31(b),             pursuant to &sect;&sect; 74.31(b), 74.33(b),              facilities as implemented pursuant to 4

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                      Draft Final Rule (08/2018) 74.33(b), 74.45(c), or 74.59(e) of this         74.45(c), or 74.59(e) of this chapter, as     &sect;&sect; 74.31(b), 74.33(b), 74.45(c), or chapter, as appropriate; and                    appropriate; and                              74.59(e) of this chapter, as appropriate; and (iii) Other material control procedures as               (iii) Other material control                 (iii) Other material control the Commission determines to be                 procedures as the Commission                  procedures as the Commission essential for the safeguarding of uranium       determines to be essential for the            determines to be essential for the source material at an uranium enrichment        safeguarding of uranium source material       safeguarding of uranium source material facility or of special nuclear material and     at a uranium enrichment facility or of SNM    at a uranium enrichment facility or of SNM providing that the licensee shall make no       and providing that the licensee shall make    special nuclear material and providing that change that would decrease the                  no change that would decrease the             the licensee shall make no change that effectiveness of the material control and       effectiveness of the material control and     would decrease the effectiveness of the accounting program implemented                  accounting program implemented                material control and accounting program pursuant to &sect; 70.22(b), or &sect;&sect; 74.31(b),         pursuant to &sect; 70.22(b), or &sect;&sect; 74.31(b),       implemented pursuant to &sect; 70.22(b), or 74.33(b), 74.41(b), or 74.51(c) of this         74.33(b), 74.41(b), or 74.51(b) of this       &sect;&sect; 74.31(b), 74.33(b), 74.41(b), or chapter, and the measurement control            chapter, and the measurement control          74.51(b) of this chapter, and the program implemented pursuant to &sect;&sect;              program implemented pursuant to               measurement control program 74.31(b), 74.33(b), 74.41(b), or 74.59(e) of    &sect;&sect;74.31(b), 74.33(b), 74.41(b), or 74.59(e)   implemented pursuant to &sect;&sect;74.31(b),
this chapter without the prior approval of      of this chapter without the prior approval of 74.33(b), 74.41(b), or 74.59(e) of this the Commission. A licensee desiring to          the Commission. A licensee desiring to        chapter without the prior approval of the make changes that would decrease the            make changes that would decrease the          Commission. A licensee desiring to make effectiveness of its material control and       effectiveness of its material control and     changes that would decrease the accounting program or its measurement           accounting program or its measurement         effectiveness of its material control and control program shall submit an                 control program shall submit an               accounting program or its measurement application for amendment to its license        application for amendment to its license      control program shall submit an pursuant to &sect; 70.34.                            pursuant to &sect; 70.34.                          application for amendment to its license
                                                       *         *      *       *
* pursuant to &sect; 70.34.
PART 72LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SPENT NUCLEAR FUEL, HIGH-LEVEL RADIOACTIVE WASTE, AND REACTOR RELATED GREATER THAN CLASS C WASTE Subpart AGeneral Provisions 5

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                    Draft Final Rule (08/2018)
&sect; 72.9 Information collection requirements: OMB approval.
[Amended]
[In &sect; 72.9(b), remove the numbers 72.76 and 72.78.]
(b) The approved information collection                                                    (b) The approved information collection requirements contained in this part appear                                                 requirements contained in this part appear in &sect;&sect; 72.7, 72.11, 72.16, 72.22 through                                                    in &sect;&sect; 72.7, 72.11, 72.16, 72.22 through 72.34, 72.42, 72.44, 72.48 through 72.56,                                                  72.34, 72.42, 72.44, 72.48 through 72.56, 72.62, 72.70, through 72.80, 72.90, 72.92,                                                 72.62, 72.70, through 72.8072.75, 72.77, 72.94, 72.98, 72.100, 72.102, 72.103,                                                      72.79, 72.80, 72.90, 72.92, 72.94, 72.98, 72.104, 72.108, 72.120, 72.126, 72.140                                                     72.100, 72.102, 72.103, 72.104, 72.108, through 72.176, 72.180 through 72.186,                                                     72.120, 72.126, 72.140 through 72.176, 72.192, 72.206, 72.212, 72.218, 72.230,                                                    72.180 through 72.186, 72.192, 72.206, 72.232, 72.234, 72.236, 72.240, 72.242,                                                    72.212, 72.218, 72.230, 72.232, 72.234, 72.244, 72.248.                                                                            72.236, 72.240, 72.242, 72.244, 72.248.
Subpart DRecords, Reports, Inspections, and Enforcement
&sect; 72.72 Material balance, inventory, and        [Revise &sect; 72.72 to read as follows:]
records requirements for stored                 &sect; 72.72 Material control and accounting materials.                                      requirements for source material and special nuclear material.
(a) Each licensee shall keep records                    (a) Each licensee shall follow the showing the receipt, inventory (including       requirements of &sect; 40.61 and &sect; 40.64 of location), disposal, acquisition, and           this chapter for source material.
transfer of all special nuclear material with quantities as specified in &sect; 74.13(a) of this chapter and for source material as specified in &sect; 40.64 of this chapter. The records must include as a minimum the name of shipper of the material to the ISFSI or MRS, the estimated quantity of radioactive material per item (including special nuclear material in spent fuel and reactor-related GTCC waste), item 6

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                  Draft Final Rule (08/2018) identification and seal number, storage location, onsite movements of each fuel assembly or storage canister, and ultimate disposal. These records for spent fuel and reactor-related GTCC waste at an ISFSI or for spent fuel, high-level radioactive waste, and reactor related GTCC waste at an MRS must be retained for as long as the material is stored and for a period of 5 years after the material is disposed of or transferred out of the ISFSI or MRS.
(b) Each licensee shall conduct a physical             (b) Each licensee shall follow the inventory of all spent fuel, high-level         requirements of 10 CFR part 74, subparts radioactive waste, and reactor-related          A and B, for special nuclear material.
GTCC waste containing special nuclear material meeting the requirements in paragraph (a) of this section at intervals not to exceed 12 months unless otherwise directed by the Commission. The licensee shall retain a copy of the current inventory as a record until the Commission terminates the license.
&sect; 72.74 Reports of accidental criticality       [Revise &sect; 72.74 to read as follows:]
or loss of special nuclear material.            &sect; 72.74 Reports of accidental criticality.
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Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
(a) Each licensee shall notify the NRC                   (a) Each licensee shall notify the          (a) Each licensee shall notify the Operations Center1 within one hour of          NRC Headquarters Operations Center           NRC Headquarters Operations Center discovery of accidental criticality or any     within one hour of discovery of accidental   within one hour of discovery of accidental loss of special nuclear material.              criticality.                                 criticality. The commercial telephone (b) This notification must be made to the                (b) Each licensee shall make the   number of the NRC Operations Center is NRC Operations Center via the                  notifications required by paragraph (a) of   (301) 816-5100.
Emergency Notification System if the           this section to the NRC Headquarters                  (b) Each licensee shall make the licensee is party to that system. If the       Operations Center via any available          notifications required by paragraph (a) of Emergency Notification System is               telephone system to ensure that a report is  this section to the NRC Headquarters inoperative or unavailable, the licensee       received within one hour.                    Operations Center via any available shall make the required notification via                 (c) Reports required under &sect; 73.71 telephone system to ensure that a report is commercial telephonic service or any           of this chapter need not be duplicated       received within one hour.
other dedicated telephonic system or any       under the requirements of this section.               (c) Reports required under &sect; 73.71 other method that will ensure that a report                                                 of this chapter need not be duplicated is received by the NRC Operations Center                                                    under the requirements of this section.
within one hour. The exemption of &sect; 73.21(g)(3) of this chapter applies to all telephonic reports required by this section.
(c) Reports required under &sect; 73.71 of this chapter need not be duplicated under the requirements of this section.
: 1. Commercial telephone number of the NRC Operations Center is (301) 816-5100.
&sect; 72.76 Material status reports.               [Remove and reserve &sect;&sect;72.76 and 72.78.]
                                               &sect; 72.76 [Removed and Reserved]
&sect; 72.78 Nuclear material transaction           &sect; 72.78 [Removed and Reserved]
reports.
PART 74--MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR MATERIAL Subpart A--General Provisions 8

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
&sect; 74.2 Scope.                                   [In &sect; 74.2, revise the last sentence in      In &sect; 74.2, revise paragraph (a) to read as paragraph (a) to read as follows:]           follows:
(a) The general reporting and                   (a)      *       *        *                  (a) The general reporting and recordkeeping requirements of subpart B                                                      recordkeeping requirements of subpart B of this part apply to each person licensed                                                   of this part apply to each person licensed under this chapter who possesses special                                                     under parts 50, 52, 60, 63, 70, and 72 of nuclear material in a quantity of one gram                                                   this chapter who possess special nuclear or more of contained uranium-235,                                                            material in a quantity of one gram or more uranium-233, or plutonium; or who                                                            of contained uranium-235, uranium-233, or transfers or receives a quantity of special                                                  plutonium; or who transfers or receives a nuclear material of one gram or more of                                                      quantity of one gram or more of contained contained uranium-235, uranium-233, or                                                       uranium-235, uranium-233, or plutonium.
plutonium. The general reporting and              The general reporting and recordkeeping    *        *       *       *
* recordkeeping requirements of subpart B         requirements of subpart B of this part also of this part do not apply to licensees          apply to licensees who possess spent whose MC&A reporting and recordkeeping          nuclear fuel at independent spent fuel requirements are covered by &sect;&sect; 72.72,           storage installations.
72.76, and 72.78 of this chapter.                      *       *        *      *      *
[Add &sect; 74.3 to read as follows:]
                                                &sect; 74.3 General performance objectives.
In addition to any other                     In addition to any other requirements in this part, each licensee     requirements in this part, each licensee who is authorized to possess or use SNM      who is authorized to possess or use SNM in a quantity greater than 350 grams of      in a quantity greater than 350 grams of contained uranium-235, uranium-233, or       contained uranium-235, uranium-233, or plutonium, or any combination thereof, at a  plutonium, or any combination thereof, at a fixed site, shall implement and maintain a   fixed site, shall implement and maintain a material control and accounting program      material control and accounting program that enables the licensee to achieve the     that enables the licensee to achieve the following general performance objectives     following general performance objectives in a timely manner:                          in a timely manner:
(a) Maintain accurate, current, and          (a) Maintain accurate, current, and reliable information on, and confirm the     reliable information on, and confirm the quantities and locations of SNM in its       quantities and locations of SNM in its 9

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                       Draft Final Rule (08/2018) possession;                                    possession; (b) Detect, respond to, and resolve            (b) Detect, respond to, and resolve any anomaly indicating a possible loss,        any an anomaly indicating a possible loss, theft, diversion, or misuse of SNM;            theft, diversion, or misuse of SNM; (c) Permit rapid determination of whether an actual loss, theft, diversion, or            c) Permit rapid determination of misuse of SNM has occurred;                    whether an actual loss, theft, diversion, or (d) Provide information to aid in the misuse of SNM has occurred; investigation and recovery of missing SNM               (d) Provide information to aid in the in the event of an actual loss, theft,         investigation and recovery of missing SNM diversion, or misuse; and                      in the event of an actual loss, theft, (e) Control access to MC&A            diversion, or misuse; and information that might assist adversaries                (e) Control access to MC&A to carry out acts of theft, diversion,         information that might assist adversaries misuse, or radiological sabotage involving     to carry out acts of to preclude loss, theft, SNM.                                           diversion, or misuse oftheft, diversion, misuse, or radiological sabotage involving SNM.
&sect; 74.4 Definitions.                         [In &sect; 74.4:                                    [In &sect; 74.4:
: a. Remove the definition for Effective         a. Remove the definition for Effective kilograms of special nuclear material;         kilograms of special nuclear material;
: b. Add the definitions Accounting,             b. Add the definitions Accounting, Custodian, Item control system, Item           Custodian, Item control system, Item control area, Material balance area, and       control area, Material balance area, Material control and accounting in             Material control and accounting, Material alphabetical order; and                        custodian, and Storage installation in alphabetical order; and
: c. Revise the definitions for Formula          c. Revise the definitions for Formula quantity, Special nuclear material of low      quantity, Special nuclear material of low strategic significance, and Special nuclear    strategic significance, and Special nuclear material of moderate strategic                 material of moderate strategic significance.                                  significance.
The additions and revisions read as            The additions and revisions read as follows:]                                      follows:]
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Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
Accounting means a system that documents the quantities of special nuclear material (SNM) held on current inventory by the licensee, and includes tracking of receipts, shipments, and measured discards, and transfers of SNM.
Custodian means an individual                Custodian means an individual authorized and qualified by the licensee     authorized and qualified by the licensee who is responsible for controlling the       who is responsible for controlling the movement of all SNM into, out of, and        movement of all SNM into, out of, and within a material balance area.              within a material balance area.
Formula quantity means strategic special               Formula quantity means strategic             Formula quantity means strategic nuclear material in any combination in a      special nuclear material (SSNM) in any       special nuclear material (SSNM) in any quantity of 5,000 grams or more computed      combination in a quantity of 5,000 grams     combination in a quantity of 5,000 grams by the formula, grams=(grams contained        or more computed by the formula, grams =     or more computed by the formula, grams =
U235)+2.5 (grams U233+grams plutonium).       (grams contained U-235) + 2.5 (grams         (grams contained U-235) + 2.5 (grams U-233 + grams plutonium). This class of      U-233 + grams plutonium). This class of material is also referred to as a Category I material is also referred to as a Category I quantity of material as shown in appendix    quantity of material as shown in appendix A to this part.                              A to this part.
Item control area (ICA) means a designated administrative area within the controlled access area, in which SNM is maintained in such a way that, at any time, a count of the items and the related material quantities can be obtained using the accounting system. Control of items moving into, out of, and within an ICA is by the identity of an item and its assigned material quantity.
11

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                           Proposed Rule (11/2013)                      Draft Final Rule (08/2018)
Item control system means a system tracking the creation, identity, element and isotopic content, location, and disposition of all items, which enables the licensee to maintain current knowledge of each item.
Material balance area (MBA)                   Material balance area (MBA) means a designated contiguous area in         means a designated contiguous area in which the control of SNM is such that the     which the control of SNM is such that the quantity of material being moved into, out    quantity of material being moved into, out of, and within the MBA is an assigned         of, and within the MBA is an assigned value based on measurements of both the       value based on measurements of both the element content and the isotopic content. element content and the isotopic content.
Material control and accounting               Material control and accounting (MC&A) means a program to control and         (MC&A) means a program to control and account for certain types of nuclear          account for certain types of nuclear material used at a licensed facility,         material used at a licensed facility, including SNM and source material, and        including SNM and source material., and which controls and accounts for               which controls and accounts for unauthorized use of equipment capable of      unauthorized use of equipment capable of producing enriched uranium. The purpose       producing enriched uranium. The of an MC&A program is to deter and            purpose of an MC&A program is serves to detect any loss, theft, diversion, misuse, or deter and detect any loss, theft, diversion, unauthorized production of nuclear            misuse, or unauthorized removal, material.                                     production, or enrichment of nuclear
                                    *       *        *      *
* material.
Material custodian means an individual authorized and qualified by the licensee who is responsible for controlling the movement of all SNM into, out of, and 12

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                           Proposed Rule (11/2013)                     Draft Final Rule (08/2018) within a material balance area.
Special nuclear material of low strategic             Special nuclear material of low             Special nuclear material of low significance means:                           strategic significance means:               strategic significance means:
(1) Less than an amount of special nuclear            (1)(i) Less than an amount of SNM           (1)(i) Less than an amount of SNM material of moderate strategic                of moderate strategic significance, but     of moderate strategic significance, but significance, but more than 15 grams of       more than 15 grams of uranium-235           more than 15 grams of uranium-235 uranium-235 (contained in uranium             (contained in uranium enriched to 20        (contained in uranium enriched to 20 enriched to 20 percent or more in the         percent or more in the U-235 isotope) or    percent or more in the Uuranium-235 U235 isotope) or 15 grams of uranium-233      15 grams of uranium-233 or 15 grams of      isotope) or 15 grams of uranium-233 or 15 or 15 grams of plutonium or the               plutonium or the combination of 15 grams    grams of plutonium or the combination of combination of 15 grams when computed         when computed by the equation, grams =      15 grams when computed by the equation, by the equation, grams=grams contained        grams contained U-235 + grams plutonium     grams = grams contained U-235 + grams U235+grams plutonium+grams U233; or           + grams U-233; or                           plutonium + grams U-233; or (2) Less than 10,000 grams but more than              (ii) Less than 10,000 grams but             (ii) Less than 10,000 grams but 1,000 grams of uranium-235 (contained in      more than 1,000 grams of uranium-235        more than 1,000 grams of uranium-235 uranium enriched to 10 percent or more,       (contained in uranium enriched to 10        (contained in uranium enriched to 10 but less than 20 percent in the U235          percent or more, but less than 20 percent   percent or more, but less than 20 percent isotope); or                                  in the U-235 isotope); or                   in the Uuranium-235 isotope); or (3) 10,000 grams or more of uranium-235               (iii) 10,000 grams or more of               (iii) 10,000 grams or more of contained in uranium enriched above           uranium-235 contained in uranium            uranium-235 contained in uranium natural, but less than 10 percent in the      enriched above natural, but less than 10    enriched above natural, but less than 10 U235 isotope.                                 percent in the U-235 isotope.               percent in the Uuranium-235 isotope.
(2) This class of material is also          (2) This class of material is also referred to as a Category III quantity of   referred to as a Category III quantity of material as shown in appendix A to this     material as shown in appendix A to this part.                                       part.
Special nuclear material of moderate                  Special nuclear material of                 Special nuclear material of strategic significance means:                 moderate strategic significance means:      moderate strategic significance means:
(1) Less than a formula quantity of                   (1)(i) Less than a formula quantity         (1)(i) Less than a formula quantity strategic special nuclear material but more   of SSNM but more than 1,000 grams of        of SSNM but more than 1,000 grams of than 1,000 grams of uranium-235               uranium-235 (contained in uranium           uranium-235 (contained in uranium (contained in uranium enriched to 20          enriched to 20 percent or more in the U-    enriched to 20 percent or more in the percent or more in the U235 isotope) or       235 isotope) or more than 500 grams of      Uuranium-235 isotope) or more than more than 500 grams of uranium-233 or         uranium-233 or plutonium or in a            500 grams of uranium-233 or plutonium or 13

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                    Draft Final Rule (08/2018) plutonium or in a combined quantity of         combined quantity of more than 1,000        in a combined quantity of more than 1,000 more than 1,000 grams when computed            grams when computed by the equation,        grams when computed by the equation, by the equation, grams=(grams contained        grams=(grams contained U-235)+2 (grams      grams = (grams contained U-235) + 2 U235)+2 (grams U233+grams plutonium);          U-233+grams plutonium); or                  (grams U-233 + grams plutonium); or or                                                      (ii) 10,000 grams or more of                (ii) 10,000 grams or more of (2) 10,000 grams or more or uranium-235        uranium-235 (contained in uranium           uranium-235 (contained in uranium (contained in uranium enriched to 10           enriched to 10 percent or more but less     enriched to 10 percent or more but less percent or more but less than 20 percent       than 20 percent in the U-235 isotope).      than 20 percent in the Uuranium-235 in the U235 isotope).                                   (2) This class of material is also isotope).
referred to as a Category II quantity of             (2) This class of material is also material as shown in appendix A to this     referred to as a Category II quantity of part.                                       material as shown in appendix A to this
                                                      *         *      *      *
* part.
Storage installation means an independent spent fuel storage installation or monitored retrievable storage installation for spent fuel and radioactive waste, as defined under part 72 of this chapter.
Subpart B--General Reporting and Recordkeeping Requirements
&sect; 74.11 Reports of loss or theft or            [In &sect; 74.11, revise paragraph (b) to read attempted theft or unauthorized                as follows:]
production of special nuclear material.
(b) This notification must be made to the                (b) Each licensee shall make the NRC Operations Center via the                  notifications required by paragraph (a) of Emergency Notification System if the           this section to the NRC Headquarters licensee is party to that system. If the       Operations Center via any available Emergency Notification System is 14

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                      Draft Final Rule (08/2018) inoperative or unavailable, the licensee        telephone system to ensure that a report is shall make the required notification via        received within 1 hour.
commercial telephonic service or other                 *        *       *     *
* dedicated telephonic system or any other method that will ensure that a report is received by the NRC Operations Center within one hour. The exemption of &sect; 73.22(f)(3) applies to all telephonic reports required by this section.
&sect; 74.13 Material status reports.                [Revise &sect; 74.13 to read as follows:]
                                                &sect; 74.13 Material status reports.
(a) Each licensee, including nuclear            (a) All licensees who possess or who had               (a) All licensees who possess, or reactor licensees as defined in &sect;&sect; 50.21        possessed in the previous reporting period    who had possessed, in the previous and 50.22 of this chapter, possessing, or       one gram or more of irradiated or non-        reporting period one gram or more of who had possessed in the previous               irradiated special nuclear material are       irradiated or non-irradiated special nuclear reporting period, at any one time and           required to submit both a Material Balance    material are required to submit both a location, special nuclear material in a         Report and a Physical Inventory Listing       Material Balance Report and a Physical quantity totaling one gram or more of           Report of these materials to the Nuclear      Inventory Listing Report of these materials contained uranium-235, uranium-233, or          Materials Management and Safeguards           to the Nuclear Materials Management and plutonium shall complete and submit, in         System (NMMSS) in accordance with the         Safeguards System (NMMSS) in computer-readable format Material               instructions in paragraph (b) of this section accordance with the instructions in Balance Reports concerning special              and according to the following schedule:      paragraph (b) of this section and nuclear material that the licensee has          (1) Commercial power reactor licensees,       according to the following schedule:
received, produced, possessed,                  authorized under part 50 or part 52 of this            (1) Commercial powerNuclear transferred, consumed, disposed, or lost.       chapter shall submit both reports within 60   reactor licensees, authorized under part This prescribed computer-readable report        calendar days of the start of the inventory   50 or part 52 of this chapter, shall submit replaces the DOE/NRC form 742 which             covered by the reports;                       both reports within 60 calendar days of the has been previously submitted in paper          (2) Research and test reactors, authorized    start of the inventory covered by the form. The Physical Inventory Listing            under part 50 of this chapter shall submit    reports; Report must be submitted with each              both reports within 60 calendar days of the             (2) Research and test reactors, Material Balance Report. This prescribed        start of the inventory covered by the         authorized under part 50 of this chapter computer-readable report replaces the           reports;                                      shall submit both reports within 60 DOE/NRC Form 742C which has been                (3) Independent spent fuel storage            calendar days of the start of the inventory previously submitted in paper form.             installation (ISFSI) licensees, authorized    covered by the reports; 15

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                      Draft Final Rule (08/2018)
Reports must be submitted for each              under part 50 or part 72 of this chapter              (32) Independent spent fuel Reporting Identification Symbol (RIS)           shall submit both reports within 60          sStorage installation (ISFSI) licensees, account including all holding accounts.         calendar days of the start of the inventory  authorized under part 50 or part 72 of this Each licensee shall prepare and submit          covered by the reports.                      chapter, shall submit both reports within the reports described in this paragraph as      (4) Licensees subject to &sect; 74.31 shall       60 calendar days of the start of the specified in the instructions in                submit both reports within 60 calendar       inventory covered by the reports;.
NUREG/BR-0007 and NMMSS Report D-               days of the start of the inventory covered            (43) Licensees subject to &sect; 74.31 24 Personal Computer Data Input for           by the reports;                              shall submit both reports within 60 NRC Licensees. Copies of these                (5) Licensees operating uranium              calendar days of the start of the inventory instructions may be obtained from the U.S.      enrichment facilities shall submit both      covered by the reports; Nuclear Regulatory Commission, Division         reports within 60 calendar days of the start          (54) Licensees operating uranium of Fuel Cycle Safety, and Safeguards, and       of the inventory providing a total plant     enrichment facilities shall submit both Environmental Review, Washington, DC            material balance as described in &sect;           reports within 60 calendar days of the start 20555-0001, or by e-mail to                     74.33(c)(4)(i).                              of the inventory providing a total plant RidsNmssFcss@nrc.gov. Each licensee             (6) Licensees subject to subpart D of this   material balance as described in &sect; subject to the requirements of &sect; 74.51          part shall submit both reports within 60     74.33(c)(4)(i);.
shall compile a report as of March 31 and       calendar days of the start of the inventory           (65) Licensees subject to subpart September 30 of each year and file it           covered by the reports;                      D of this part shall submit both reports within 30 days after the end of the period      (7) Licensees subject to subpart E of this   within 60 calendar days of the start of the covered by the report. Licensees subject        part shall submit both reports within 30     inventory covered by the reports; to the requirements of &sect;&sect; 74.19(c),             calendar days of the start of the inventory           (76) Licensees subject to subpart 74.31(c)(5), 74.33(c)(4), or 74.43(c)(6)        covered by the reports;                      E of this part shall submit both reports shall submit a report within 60 calendar        (8) All other licensees who possess, or      within 30 calendar days of the start of the days of the beginning of the physical           had possessed in the previous reporting      inventory covered by the reports; and inventory. All other licensees shall submit     period, one gram or more of irradiated or             (87) All other licensees who a report no later than March 31 of each         non-irradiated special nuclear material      possess, or had possessed in the previous year. The Commission may permit a               shall submit both reports between January    reporting period, one gram or more of licensee to submit the reports at other         1 and March 31 of each year.                 irradiated or non-irradiated special nuclear times for good cause. Each licensee                                                          material shall submit both reports between required to report material balance, and                                                     January 1 and March 31 of each year.
inventory information, as detailed in this part, shall resolve any discrepancies identified during the report review and reconciliation process within 30 calendar days of notification of a discrepancy identified by NRC.
16

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                   Draft Final Rule (08/2018)
(b) Any licensee who is required to submit     (b) Each licensee shall prepare and submit         (b) Each licensee shall prepare routine Material Status Reports pursuant       the reports described in paragraph (a) of  and submit the reports described in to &sect; 75.35 of this chapter (pertaining to      this section as follows:                   paragraph (a) of this section as follows:
implementation of the US/IAEA                  (1) Reports must be submitted for each             (1) Reports must be submitted for Safeguards Agreement) shall prepare and        Reporting Identification Symbol (RIS)      each Reporting Identification Symbol (RIS) submit these reports only as provided in       account, including all holding accounts,   account, including all holding accounts, that section (instead of as provided in        concerning special nuclear materialSNM     concerning special nuclear materialSNM paragraph (a) of this section).                that the licensee has received, produced,  that the licensee has received, produced, possessed, transferred, consumed,          possessed, transferred, consumed, disposed, or lost.                         disposed, or lost.
(2) Each licensee shall prepare and submit          (2) Each licensee shall prepare the reports described in this section as   and submit the reports described in this specified in the instructions in both      section as specified in the instructions in NUREG/BR-0007 and NMMSS Report D-          both NUREG/BR-0007, Instructions for 24 Personal Computer Data Input for      the Preparation and Distribution of NRC Licensees.                           Material Status Reports, Final Draft (DOE (i) This prescribed computer-readable      [U.S. Department of Energy]/NRC Forms report replaces the DOE/NRC Form 742,      742 and 742C), and NMMSS Report D-Material Balance Report, and DOE/NRC       24 Personal Computer Data Input for Form 742C, Physical Inventory Listing      NRC Licensees.
Report, which have been previously                 (i) This prescribed computer-submitted in paper form.                   readable report replaces the DOE/NRC (ii) Copies of these instructions may be   Form 742, Material Balance Report, and obtained from the U.S. Nuclear Regulatory  DOE/NRC Form 742C, Physical Inventory Commission, Division of Fuel Cycle Safety  Listing Report, which have been and Safeguards, Washington, DC 20555-      previously submitted in paper form.
0001 or by e-mail to                               (ii) Copies of these instructions RidsNmssFcss.Resource@nrc.gov.             may be obtained from the U.S. Nuclear Regulatory Commission, Division of Fuel Cycle Safety, and Safeguards, and Environmental Review, Washington, DC 205550001 or by email to:
RidsNmssFcss.Resource@nrc.gov RidsNmssFcse.Resource@nrc.gov.
17

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
(c) The Commission may permit a licensee             (c) The Commission may permit a to submit the reports at other times for     licensee to submit the reports at other good cause. Such requests must be            times for good cause. Such requests must submitted in writing to Chief, Material      be submitted in writing to Chief, Material Control and Accounting Branch, Division      Control and Accounting Branch, Division of Fuel Cycle Safety and Safeguards,         of Fuel Cycle Safety, and Safeguards, and Office of Nuclear Material Safety and        Environmental Review, Office of Nuclear Safeguards, U.S. Nuclear Regulatory          Material Safety and Safeguards, U.S.
Commission, Washington, DC 20555. The        Nuclear Regulatory Commission, licensee must continue to report as          Washington, DC 20555. The licensee required until such request is granted.      must continue to report as required until (d) Any licensee who is required to submit   such request is granted.
routine Material Status Reports under &sect;              (d) Any licensee who is required to 75.35 of this chapter (pertaining to         submit routine Material Status Reports implementation of the US/IAEA                under &sect; 75.35 of this chapter (pertaining to Safeguards Agreement) shall prepare and      implementation of the US/IAEA submit these reports only as provided in     Safeguards Agreement) shall prepare and that section (instead of as provided in      submit these reports only as provided in paragraphs (a) through (b) of this section). that section (instead of as provided in (e) Each licensee subject to the             paragraphs (a) through (b) of this section).
requirements of this section shall resolve           (e) Each licensee subject to the any discrepancies identified during the      requirements of this section shall resolve report review and reconciliation process     any discrepancies identified during the within 30 calendar days of notification of a report review and reconciliation process discrepancy identified by NRC.               within 30 calendar days of notification of a discrepancy identified by NRC.
&sect; 74.15 Nuclear material transaction          [In &sect; 74.15, revise paragraph (b)(2) to read reports.                                      as follows:]
(b) Each licensee who receives 1 gram or       (b)    *       *
* more of contained uranium-235, uranium-       (2) Perform independent tests to assure 233, or plutonium from a foreign source       the accurate identification and shall:                                        measurement of the material received, (1) Complete in computer-readable format      including its weight and enrichment; both the supplier's and receiver's portion    except that a licensee authorized under 18

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                      Draft Final Rule (08/2018) of the Nuclear Material Transaction             parts 50 or 52 of this chapter receiving Report;                                         unirradiated fuel rods or unirradiated fuel (2) Perform independent tests to assure         assemblies or a licensee authorized under the accurate identification and                 part 70 of this chapter receiving special measurement of the material received,           nuclear material contained in a sealed including its weight and enrichment; and        source that will not be opened need not (3) Indicate the results of these tests on      perform such tests; and the receiver's portion of the form.                    *       *       *       *      *
&sect; 74.19 Recordkeeping.                          [In &sect; 74.19, revise paragraph (b),
redesignate paragraph (d) as paragraph (e), and add a new paragraph (d) to read as follows:]
                                                &sect;74.19 Recordkeeping, procedures, item controls, and physical inventories.
(b) Each licensee that is authorized to                  (b) Each licensee authorized to              (b) Each licensee authorized to possess special nuclear material in a           possess special nuclear material, at any     possess special nuclear material, at any quantity exceeding one effective kilogram       one time and site location, in a quantity    one time and site location, in a quantity at any one time shall establish, maintain,      greater than 350 grams of contained          greater than 350 grams of contained and follow written material control and         uranium-235, uranium-233, or plutonium,      uranium-235, uranium-233, or plutonium, accounting procedures that are sufficient       or any combination thereof, shall establish, or any combination thereof, shall establish, to enable the licensee to account for the       maintain, and follow written material        maintain, and follow written material special nuclear material in its possession      control and accounting procedures that       control and accounting procedures that under license. The licensee shall retain        are sufficient to enable the licensee to     are sufficient to enable the licensee to these procedures until the Commission           account for the SNM in its possession        account for the SNM in its possession terminates the license that authorizes          under the license. The licensee shall        under the license. The licensee shall possession of the material and retain any       retain these procedures until the            retain these procedures until the superseded portion of the procedures for 3      Commission terminates the license that       Commission terminates the license that years after the portion is superseded.          authorizes possession of the special         authorizes possession of the special nuclear material and retain any              nuclear material and retain any superseded portion of the procedures for 3   superseded portion of the procedures for 3 years after the portion is superseded.       years after the portion is superseded.
19

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
(d) Records that must be maintained                     (d) Production or utilization                (d) Production or utilization pursuant to this part may be the original or   facilities licensed under part 50 or 52 of  Nuclear reactor facilities licensed under a reproduced copy or a microform if the        this chapter and independent spent fuel     part 50 or 52 of this chapter and reproduced copy or microform is duly           storage installations licensed under part   independent spent fuel storage authenticated by authorized personnel and      72 of this chapter shall establish,         installations licensed under part 72 of this the microform is capable of producing a        document, implement, and maintain an        chapter shall establish, document, clear and legible copy after storage for the   item control system as defined in &sect; 74.4. implement, and maintain an item control period specified by Commission                                                             system as defined in &sect; 74.4.
regulations. The record may also be                                                               *        *      *        *
* stored in electronic media with the capability for producing legible, accurate, and complete records during the required retention period. Records such as letters, drawings, or specifications must include all pertinent information such as stamps, initials, and signatures. The licensee shall maintain adequate safeguards against tampering with and loss of records.
(e) Records that must be maintained pursuant to this part may be the original or a reproduced copy or a microform if the reproduced copy or microform is duly authenticated by authorized personnel and the microform is capable of producing a clear and legible copy after storage for the period specified by Commission regulations. The record may also be stored in electronic media with the capability for producing legible, accurate, and complete records during the required retention period. Records such as letters, drawings, or specifications must include all pertinent information such as stamps, initials, and signatures. The licensee shall maintain adequate 20

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                       Draft Final Rule (08/2018) safeguards against tampering with and loss of records.
Subpart C--Special Nuclear Material of Low Strategic Significance
&sect; 74.31 Nuclear material control and            [In &sect; 74.31, revise paragraphs (a), (b), and accounting for special nuclear material         (c) to read as follows:]
of low strategic significance.
(a) General performance objectives. Each        (a) General performance objectives. (1)                (a) General performance licensee who is authorized to possess and       Each licensee who is authorized to            objectives. (1) Each licensee who is use more than one effective kilogram of         possess and use a quantity greater than       authorized to possess and use SNM of low special nuclear material of low strategic       350 grams of contained uranium-235 or         strategic significance (as defined in &sect; 74.4 significance, excluding sealed sources, at      SNM of low strategic significance (as         and shown in appendix A to this part), or a any site or contiguous sites subject to         defined in &sect; 74.4 and shown in appendix A     quantity greater than 350 grams of control by the licensee, other than a           to this part) at any site or contiguous sites contained uranium-235, uranium-233, or production or utilization facility licensed     subject to control by the licensee is subject plutonium, or any combination thereof, or pursuant to part 50 or 70 of this chapter, or   to the performance objective requirements     SNM of low strategic significance (as operations involved in waste disposal,          stated in &sect; 74.3.                             defined in &sect; 74.4 and shown in appendix A shall implement and maintain a                                                                to this part) at any site or contiguous sites Commission approved material control                                                          subject to control by the licensee is subject and accounting system that will achieve                                                       to the performance objective requirements the following objectives:                                                                     stated in &sect; 74.3.
(1) Confirm the presence of special nuclear material; (2) Resolve indications of missing                       (2) Production or utilization                 (2) Production or utilization Nuclear material; and                                   facilities licensed under part 50 or 52 of    reactor facilities licensed under part 50 or (3) Aid in the investigation and recovery of    this chapter, independent spent fuel          52 of this chapter, independent spent fuel missing material.                               storage installations licensed under part     storage installations licensed under part 72 of this chapter, and operations            72 of this chapter, and operations involving waste disposal are not subject to   involving waste disposal are not subject to the requirements of subpart C of this part. the requirements of subpart C of this part.
(b) Implementation: Each applicant for a        (b) Implementation. Each applicant for a license, and each licensee that, upon           license, and each licensee that, upon 21

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                      Draft Final Rule (08/2018) application for modification of its license,    application for modification of its license, would become newly subject to the               would become newly subject to paragraph performance objectives of paragraph (a) of      (a) of this section shall submit for approval this section, shall submit a fundamental        an MC&A plan describing how the nuclear material control (FNMC) plan            performance objectives of &sect; 74.3 and the describing how the requirements of              requirements of paragraph (c) of this paragraph (c) of this section will be met.      section will be met. The MC&A plan shall The FNMC plan shall be implemented              be implemented when a license is issued when a license is issued or modified to         or modified to authorize the activities being authorize the activities being addressed in     addressed in paragraph (a) of this section, paragraph (a) of this section, or by the        or by the date specified in a license date specified in a license condition.          condition.
(c) System capabilities. To meet the                     (c) Program capabilities. To                 (c) Program capabilities. To general performance objectives of               achieve the &sect; 74.3 performance                achieve the &sect; 74.3 performance paragraph (a) of this section, the material     objectives, the MC&A plan must include        objectives, the MC&A plan program must control and accounting system must              the capabilities described in paragraphs      include the capabilities described in include the capabilities described in           (c)(1) through (10) of this section, and      paragraphs (c)(1) through (10) of this paragraph (c) (1) through (8) of this           require the licensee to:                      section, and require the licensee to:
section. The licensee shall:
(1) Establish, document, and maintain a                  (1) Establish, document, and management structure which assures              maintain a management structure that clear overall responsibility for material       assures clear overall responsibility for control and accounting functions,               material control and accounting functions, independence from production                    independence from production responsibilities, separation of key             responsibilities, separation of key responsibilities, and adequate review and       responsibilities, and adequate review and use of critical material control and            use of critical material control and accounting procedures;                          accounting procedures; (2) Establish and maintain a measurement                 (2) Establish and maintain a                 (2) Establish and maintain a system which assures that all quantities in     measurement system, which assures that        measurement systemprogram, which the material accounting records are based       all quantities in the material accounting     assures that all quantities in the material on measured values;                             records are based on measured values;         accounting records are based on measured values; 22

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                      Draft Final Rule (08/2018)
(3) Follow a measurement control program                 (3) Follow a measurement control which assures that measurement bias is          program, which assures that measurement estimated and significant biases are            bias is estimated and significant biases eliminated from inventory difference            are eliminated from inventory difference values of record;                               values of record; (4) In each inventory period, control total              (4) In each inventory period,                (4) In each inventory period, material control and accounting                 control total material control and            control total material control and measurement uncertainty so that twice its       accounting measurement uncertainty so         accounting measurement uncertainty so standard error is less than the greater of      that twice its standard error of the          that twice its standard error of the 9,000 grams of U-235 or 0.25 percent of         inventory difference (SEID) is less than the  inventory difference (SEID) is less than the the active inventory, and assure that any       greater of 9,000 grams of U-235 or 0.25       greater of 9,000 grams of Uuranium-235 measurement performed under contract is         percent of the active inventory, and assure   or 0.25 percent of the active inventory, and controlled so that the licensee can satisfy     that any measurement performed under          assure that any measurement performed this requirement;                               contract is controlled so that the licensee   under contract is controlled so that the can satisfy this requirement;                 licensee can satisfy this requirement; (5) Unless otherwise required to satisfy                 (5) Unless otherwise required to part 75 of this chapter, perform a physical     satisfy part 75 of this chapter, perform a inventory at least every 12 months and,         physical inventory at least every 12 within 60 days after the start of the           months and, within 60 calendar days after inventory, reconcile and adjust the book        the start of the inventory, reconcile and inventory to the results of the physical        adjust the book inventory to the results of inventory, and resolve, or report an            the physical inventory, and resolve, or inability to resolve, any inventory             report an inability to resolve, any inventory difference which is rejected by a statistical   difference that is rejected by a statistical test which has a 90 percent power of            test that has a 90-percent power of detecting a discrepancy of a quantity of        detecting a discrepancy of a quantity of uranium-235 established by NRC on a             uranium-235 established by the NRC on a site-specific basis;                            site-specific basis; (6) Maintain current knowledge of items                  (6) Establish, document,                     (6) Establish, document, when the sum of the time of existence of        implement, and maintain an item control       implement, and maintain an item control an item, the time to make a record of the       system as defined in &sect; 74.4. Store and        system as defined in &sect; 74.4. Store and item, and the time necessary to locate the      handle or subsequently measure items in       handle or subsequently measure items (as item exceeds 14 days. Store and handle,         a manner such that unauthorized removals      defined in &sect; 74.4) in a manner such that or subsequently measure, items in a             of individual items or any quantity of SNM    unauthorized removals of individual items 23

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                     Draft Final Rule (08/2018) manner so that unauthorized removals of        from items will be detected. Exempted        or 500 grams or more of uranium-235 from substantial quantities of material from        from this requirement are items in solution  one or more any quantity of SNM from items will be detected. Exempted are           with a concentration of less than 5 grams    items will be detected. Exempted from items individually containing less than 500    of uranium-235 per liter and items of waste  this requirement are grams of U235 up to a total of 50 kilograms    destined for burial or incineration;                 (i) Solutions with a concentration of of U235, solutions with a concentration of                                                  less than 5 grams per liter of plutonium or less than 5 grams of U235 per liter, and                                                    uranium-233 or uranium-235 or a items of waste destined for burial or                                                       combined concentration thereof of less incineration;                                                                               than 5 grams per liter; (ii) Laboratory samples and reference standards maintained in the laboratory material management system and containing uranium enriched to less than 10 percent in uranium-235; (iii) Items existing less than 3 calendar days and containing less than 100 grams of uranium-235, or; (iv) Items of waste destined for burial or incineration.
(7) Resolve, on a shipment basis and                    (7) Conduct and document when required to satisfy part 75 of this       shipper-receiver difference comparisons chapter, on a batch basis, shipper/receiver    for all SNM receipts on a total shipment differences that exceed both twice the         basis, and on an individual batch basis combined measurement standard error for        when required by part 75 of this chapter, that shipment and 500 grams of U235; and       and ensure that any shipper-receiver difference that is statistically significant and exceeds twice the estimated standard deviation of the difference estimator and 500 grams of uranium-235 is investigated and resolved; (8) Independently assess the effectiveness              (8) Independently assess the                (8) Independently assess the of the material control and accounting         effectiveness of the MC&A program at         effectiveness of the MC&A program at system at least every 24 months, and           least every 24 months, and document          least every 24 months, and document 24

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                     Draft Final Rule (08/2018) document management's action on prior          management's action on prior assessment      management's action on prior assessment assessment recommendations.                    recommendations.                             recommendations; (9) Maintain and follow procedures          (9) If tamper-safe seals are to be for tamper-safing (as defined in &sect; 74.4) of  used, Mmaintain and follow procedures for containers or vaults (as defined in &sect; 74.4)  tamper-safing (as defined in &sect; 74.4) of containing SNM, which include control of     containers or vaults (as defined in &sect; 74.4) access to, and distribution of, unused       containing SNM, which include control of seals and records;                           access to, and distribution of, unused seals and records; and (10) Designate material balance             (10) Designate one or more areas and item control areas and assign      material balance areas, and or a custodial responsibility for each of these   combination of one or more material areas in a manner that ensures that such     balance areas and one or more item responsibility can be effectively executed   control areas, or acombination of such for all SNM possessed under license.         areas, and assign custodial responsibility
                                                       *       *       *       *
* for each of these areas in a manner that ensures that such responsibility can be effectively executed for all SNM possessed under license.
&sect; 74.33 Nuclear material control and           [Revise &sect; 74.33 to read as follows:]
accounting for uranium enrichment facilities authorized to produce special nuclear material of low strategic significance.
(a) General performance objectives. Each                 (a) General performance                     (a) General performance licensee who is authorized by this chapter     objectives. Each licensee who is             objectives. Each licensee who is to possess equipment capable of enriching      authorized to possess equipment capable      authorized to possess equipment capable uranium or operate an enrichment facility,     of enriching uranium or operate an           of enriching uranium or operate an and produce, possess, or use more than         enrichment facility, and produce, possess,   enrichment facility, and produce, possess, one effective kilogram of special nuclear      or use a quantity greater than 350 grams     or use SNM of low strategic significance material of low strategic significance at      of contained uranium-235 or SNM of low       (as defined in &sect; 74.4 and shown in 25

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                        Draft Final Rule (08/2018) any site or contiguous sites, subject to        strategic significance (as defined in &sect; 74.4   appendix A to this part) or a quantity control by the licensee, shall establish,       and shown in appendix A to this part) at       greater than 350 grams of contained implement, and maintain a NRC-approved          any site or contiguous sites, subject to       uranium-235, uranium-233, or plutonium, material control and accounting system          control by the licensee, is subject to the     or any combination thereof,or SNM of low that will achieve the following objectives:     performance objective requirements stated      strategic significance (as defined in &sect; 74.4 in &sect; 74.3 and to the following performance     and shown in appendix A to this part) at objectives:                                    any site or contiguous sites, subject to control by the licensee, is subject to the performance objective requirements stated in &sect; 74.3 and to the following performance objectives:
(1) Maintain accurate, current, and reliable             (1) Maintain accurate, current, and            (1) Maintain accurate, current, and information of and periodically confirm the     reliable information on, and confirm the       reliable information on, and confirm the quantities and locations of source material     quantities and locations of source material    quantities and locations of source material and special nuclear material in the             (SM) in its possession;                        (SM) in its possession; licensee's possession;                                   (2) Detect, respond to, and resolve            (2) Detect, respond to, and resolve (2) Protect against and detect production       any anomaly indicating a possible loss,        any an anomaly indicating a possible loss, of uranium enriched to 10 percent or more       theft, diversion, or misuse of SM;             theft, diversion, or misuse of SM; in the isotope U235;                                     (3) Permit rapid determination of              (3) Permit rapid determination of (3) Protect against and detect                  whether an actual loss, theft, diversion, or   whether an actual loss, theft, diversion, or unauthorized production of uranium of low       misuse of SM has occurred;                     misuse of SM has occurred; strategic significance;                                  (4) Provide information to aid in the          (4) Provide information to aid in the (4) Resolve indications of missing              investigation and recovery of missing SM       investigation and recovery of missing SM uranium;                                        in the event of an actual loss, theft,         in the event of an actual loss, theft, (5) Resolve indications of production of        diversion, or misuse; and                      diversion, or misuse; and uranium enriched to 10 percent or more in                (5) Provide information to aid in the          (5) Provide information to aid in the the isotope U235 (for centrifuge enrichment     investigation of any unauthorized              investigation of any unauthorized facilities this requirement does not apply to   production of uranium, including               production of uranium, including each cascade during its start-up process,       unauthorized production of uranium             unauthorized production of uranium not to exceed the first 24 hours);              enriched to 10 percent or more in the          enriched to 10 percent or more in the (6) Resolve indications of unauthorized         isotope U-235. (For centrifuge enrichment      isotope Uuranium-235. (For centrifuge production of uranium of low strategic          facilities this requirement does not apply to  enrichment facilities, this requirement does significance;                                   each cascade during its start-up process,      not apply to each cascade during its start-(7) Provide information to aid in the           not to exceed the first 24 hours.)             up process, not to exceed the first 24 investigation of missing uranium;                                                              hours.)
26

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                       Draft Final Rule (08/2018)
(8) Provide information to aid in the investigation of the production of uranium enriched to 10 percent or more in the isotope U235; and (9) Provide information to aid in the investigation of unauthorized production of uranium of low strategic significance.
(b) Implementation dates. Each applicant                 (b) Implementation. Each                      (b) Implementation. Each for a license who would, upon issuance of      applicant for a license who would, upon       applicant for a license who would, upon a license pursuant to any part of this         issuance of a license under any part of this  issuance of a license under any part of this chapter, be subject to the requirements of     chapter, be subject to the requirements of    chapter, be subject to the requirements of paragraph (a) of this section shall:           paragraph (a) of this section shall:          paragraph (a) of this section shall:
(1) Submit a fundamental nuclear material                (1) Submit for approval an MC&A               (1) Submit for approval an MC&A control plan describing how the                plan describing how the performance           plan describing how the performance performance objectives of &sect; 74.33(a), the      objectives of &sect;&sect; 74.3 and 74.33(a), the       objectives of &sect;&sect; 74.3 and 74.33(a), the system features and capabilities of &sect;          program capabilities of &sect; 74.33(c), and the   program capabilities of &sect; 74.33(c), and the 74.33(c), and the recordkeeping                recordkeeping requirements of &sect; 74.33(d)      recordkeeping requirements of &sect; 74.33(d) requirements of &sect; 74.33(d) will be met;        will be met; and                              will be met; and and                                                      (2) Implement the NRC-approved                (2) Implement the NRC-approved (2) Implement the NRC approved plan            MC&A plan submitted under paragraph           MC&A plan submitted under paragraph submitted pursuant to paragraph (b)(1) of      (b)(1) of this section prior to:              (b)(1) of this section prior to:
this section prior to:                                   (i) The cumulative receipt of 5,000           (i) The cumulative receipt of 5,000 (i) The cumulative receipt of 5,000 grams      grams of U-235 contained in any               grams of Uuranium-235 contained in any of U235 contained in any combination of        combination of natural, depleted, or          combination of natural, depleted, or natural, depleted, or enriched uranium or      enriched uranium; or                          enriched uranium; or (ii) NRC's issuance of a license to test or              (ii) The NRC's issuance of a                  (ii) The NRC's issuance of a operate the enrichment facility; whichever     license to test or operate the enrichment     license to test or operate the enrichment occurs first.                                  facility, whichever occurs first.             facility, whichever occurs first.
(c) System features and capabilities. To                 (c) Program capabilities. To                  (c) Program capabilities. To meet the general performance objectives        achieve the general performance               achieve the general performance of paragraph (a) of this section, the          objectives stated and referenced in           objectives stated and referenced in Material Control and Accounting (MC&A)         paragraph (a) of this section, the MC&A       paragraph (a) of this section, the MC&A system must include the features and           plan must include the capabilities            plan program must include the capabilities capabilities described in paragraphs (c) (1)   described in paragraphs (c)(1) through        described in paragraphs (c)(1) through 27

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                       Draft Final Rule (08/2018) through (8) of this section. The licensee       (10) of this section. The licensee shall     (10) of this section. The licensee shall shall establish, document, and maintain:        establish, document, implement and           establish, document, implement and maintain:                                    maintain:
(1) A management structure that ensures:                (1) A management structure that (i) Clear overall responsibility for MC&A       ensures:
functions;                                              (i) Clear overall responsibility for (ii) Independence of MC&A management            MC&A functions; from production responsibilities;                       (ii) Independence of MC&A (iii) Separation of key MC&A                    management from production responsibilities from each other; and           responsibilities; (iv) Use of approved written MC&A                       (iii) Separation of key MC&A procedures and periodic review of those         responsibilities from each other; and procedures;                                             (iv) Use of approved written MC&A procedures and periodic review of those procedures; (2) A measurement program that ensures                  (2) A measurement program that that all quantities of source material and      ensures that all quantities of SM and SNM special nuclear material in the accounting      in the accounting records are based on records are based on measured values;           measured values; (3) A measurement control program that                  (3) A measurement control                    (3) A measurement control ensures that:                                   program that ensures that:                   program that ensures that:
(i) Measurement bias is estimated and                   (i) Measurement bias is estimated            (i) Measurement bias is estimated minimized through the measurement               and minimized through the measurement        and minimized through the measurement control program, and any significant            control program, and any significant         control program, and any significant biases are                                      biases are eliminated from inventory         biases are eliminated from inventory eliminated from inventory difference            difference values of record;                 difference values of record; values of record;                                       (ii) All MC&A measurement                     (ii) All MC&A measurement (ii) All MC&A measurement systems are           systems are controlled so that twice the     systems are controlled so that twice the controlled so that twice the standard error     standard error of the inventory difference   standard error of the inventory difference of the inventory difference, based on all       (SEID), based on all measurement error       (SEID), based on all measurement error measurement error contributions, is less        contributions, is less than the greater of   contributions, is less than the greater of than the greater of 5,000 grams of U235 or      5,000 grams of U-235 or 0.25 percent of      5,000 grams of Uuranium-235 or 0.25 0.25 percent of the U235 of the active                                                       percent of the Uuranium-235 of the active 28

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                        Draft Final Rule (08/2018) inventory for each total plant material           the U-235 of the active inventory for each     inventory for each total plant material balance; and                                      total plant material balance; and              balance; and (iii) Any measurements performed under                     (iii) Any measurements performed               (iii) Any measurements performed contract are controlled so that the licensee      under contract are controlled so that the      under contract are controlled so that the can satisfy the requirements of paragraphs        licensee can satisfy the requirements of       licensee can satisfy the requirements of (c)(3) (i) and (ii) of this section;              paragraphs (c)(3)(i) and (ii) of this section; paragraphs (c)(3)(i) and (ii) of this section; (4) A physical inventory program that                      (4) A physical inventory program               (4) A physical inventory program provides for:                                     that provides for:                             that provides for:
(i) Performing, unless otherwise required                  (i) Performing, unless otherwise               (i) Performing, unless otherwise to satisfy part 75 of this chapter, a             required to satisfy part 75 of this chapter, a required to satisfy part 75 of this chapter, a dynamic (nonshutdown) physical inventory          dynamic (nonshutdown) physical inventory       dynamic (nonshutdown) physical inventory of in-process (e.g., in the enrichment            of in-process (e.g., in the enrichment         of in-process (e.g., in the enrichment equipment) uranium and U235 at least              equipment) uranium and U-235 at least          equipment) uranium and Uuranium-235 at every 65 days, and performing a static            every 65 calendar days, and performing a       least every 65 calendar days, and physical inventory of all other uranium and       static physical inventory of all other         performing a static physical inventory of all total U235 contained in natural, depleted,        uranium and total U-235 contained in           other uranium and total Uuranium-235 and enriched uranium located outside of           natural, depleted, and enriched uranium        contained in natural, depleted, and the enrichment processing equipment at            located outside of the enrichment              enriched uranium located outside of the least every 370 calendar days, with static        processing equipment at least every 370        enrichment processing equipment at least physical inventories being conducted in           calendar days, with static physical            every 370 calendar days, with static conjunction with a dynamic physical               inventories being conducted in conjunction     physical inventories being conducted in inventory of in-process uranium and U235          with a dynamic physical inventory of in-       conjunction with a dynamic physical so as to provide a total plant material           process uranium and U-235 so as to             inventory of in-process uranium and balance at least every 370 calendar days;         provide a total plant material balance at      Uuranium-235 so as to provide a total and                                               least every 370 calendar days; and             plant material balance at least every 370 (ii) Reconciling and adjusting the book                    (ii) Reconciling and adjusting the    calendar days; and inventory to the results of the static            book inventory to the results of the static             (ii) Reconciling and adjusting the physical inventory and resolving, or              physical inventory and resolving, or           book inventory to the results of the static reporting an inability to resolve, any            reporting an inability to resolve, any         physical inventory and resolving, or inventory difference that is rejected by a        inventory difference that is rejected by a     reporting an inability to resolve, any statistical test which has a 90 percent           statistical test that has a 90-percent power   inventory difference that is rejected by a power of detecting a discrepancy of a             of detecting a discrepancy of a quantity of    statistical test that has a 90-percent power quantity of U235, established by NRC on a         U-235, established by the NRC on a site-       of detecting a discrepancy of a quantity of site-specific basis, within 60 days after the     specific basis, within 60 calendar days        Uuranium-235, established by the NRC on start of each static physical inventory;                                                         a site-specific basis, within 60 calendar 29

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                      Draft Final Rule (08/2018) after the start of each static physical      days after the start of each static physical inventory;                                   inventory; (5) A detection program, independent of                (5) A detection program,                     (5) A detection program, production, that provides high assurance       independent of production, which provides    independent of production, which that of detecting:                                  high assurance of detecting and resolving:   provides high assurance of detecting and (i) Production of uranium enriched to 10               (i) Production of uranium enriched   resolving:
percent or more in the U235 isotope, to the    to 10 percent or more in the U-235                   (i) Production of uranium enriched extent that SNM of moderate strategic          isotope, to the extent that SNM of           to 10 percent or more in the Uuranium-235 significance could be produced within any      moderate strategic significance (as          isotope, to the extent that SNM of 370 calendar day period;                       defined in &sect; 74.4) could be produced         moderate strategic significance (as (ii) Production of uranium enriched to 20      within any 370 calendar day period;          defined in &sect; 74.4) could be produced percent or more in the U235 isotope; and               (ii) Production of uranium enriched  within any 370 calendar day period; (iii) Unauthorized production of uranium of    to 20 percent or more in the U-235                   (ii) Production of uranium enriched low strategic significance;                    isotope; and                                 to 20 percent or more in the Uuranium-235 (iii) Unauthorized production of     isotope; and uranium of low strategic significance (as            (iii) Unauthorized production of defined in &sect; 74.4);                          uranium of low strategic significance (as defined in &sect; 74.4);
(6) An item control program that ensures               (6) An item control system (as               (6) An item control system (as that:                                          defined in &sect; 74.4). The system must          defined in &sect; 74.4). The system must (i) Current knowledge is maintained of         ensure that items are stored and handled     ensure that items (as defined in &sect; 74.4) items with respect to identity, uranium and    or subsequently measured in a manner         are stored and handled or subsequently U235 content, and stored location; and         such that unauthorized removal of any        measured in a manner such that (ii) Items are stored and handled, or          quantity of U-235, as individual items or as unauthorized removal of individual items subsequently measured,                         uranium contained in items, will be          or 500 grams or more of uranium-235 from in a manner so that unauthorized removal       detected. Exempted from this requirement     one or more itemsany quantity of U 235, of 500 grams or more of U235, as individual    are items in solution with a concentration   as individual items or as uranium items or as uranium contained in items,        of less than 5 grams of uranium-235 per      contained in items, will be detected.
will be detected. Exempted from the            liter and items of waste destined for burial Exempted from this requirement are requirements of paragraph (c)(6) (i) and (ii)  or incineration;                                     (i) Solutions with a concentration of of this section are licensed-identified items                                               less than 5 grams per liter of plutonium or each containing less than 500 grams U235                                                    uranium-233 or uranium-235 or a up to a cumulative total of 50 kilograms of                                                 combined concentration thereof of less than 5 grams per liter; 30

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                      Draft Final Rule (08/2018)
U235 and items that exist for less than 14                                                           (ii) Laboratory samples and calendar days;                                                                               reference standards maintained in the laboratory material management system and containing uranium enriched to less than 10 percent in uranium-235; (iii) Items existing less than 3 calendar days and containing less than 100 grams of uranium-235, or; (iv) Items of waste destined for burial or incineration; (7) A resolution program that ensures that              (7) A system for conducting and              (7) A system for conducting and any shipper-receiver differences are            documenting shipper-receiver difference      documenting shipper-receiver difference resolved that are statistically significant     comparisons for all source material and      comparisons for all source materialSM and and exceed 500 grams U235 on:                   SNM receipts on a total shipment basis,      SNM receipts on a total shipment basis, (i) An individual batch basis; and              and on an individual batch basis when        and on an individual batch basis when (ii) A total shipment basis for all source      required by part 75 of this chapter, to      required by part 75 of this chapter, to material and special nuclear material;          ensure that any shipper-receiver             ensure that any shipper-receiver difference that is statistically significant difference that is statistically significant and exceeds twice the estimated standard     and exceeds twice the estimated standard deviation of the difference estimator and    deviation of the difference estimator and 500 grams of uranium-235 is investigated     500 grams of uranium-235 is investigated and resolved;                                and resolved; (8) An assessment program that:                         (8) An assessment program that:
(i) Independently assesses the                          (i) Independently assesses the effectiveness of the MC&A                       effectiveness of the MC&A program at system at least every 24 months;                least every 24 months; (ii) Documents the results of the above                 (ii) Documents the results of the assessment;                                     above assessment; (iii) Documents management's findings on                (iii) Documents management's whether the MC&A system is currently            findings on whether the MC&A program is effective; and                                  currently effective; and (iv) Documents any actions taken on                     (iv) Documents any actions taken recommendations from prior assessments.         on recommendations from prior assessments; 31

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                         Draft Final Rule (08/2018)
(9) Procedures for tamper-safing                (9) Procedures for tamper-safing (as defined in &sect; 74.4) of containers or        (as defined in &sect; 74.4) of containers or vaults (as defined in &sect; 74.4) containing       vaults (as defined in &sect; 74.4) containing SNM, which include control of access to,       SNM, which include control of access to, and distribution of, unused seals and          and distribution of, unused seals and records;                                       records, if tamper-safe seals are to be used; (10) Material balance areas and                 (10) One or more material balance item control areas, and shall assign           areas, and or a combination of material custodial responsibility for each of these     balance areas and one or more item areas in a manner that ensures that such       control areas, or a combination of such responsibility can be effectively executed     areas, and shall assign custodial for all SM and SNM possessed under             responsibility for each of these areas in a license.                                       manner that ensures that such responsibility can be effectively executed for all SM and SNM possessed under license.
(d) Recordkeeping. (1) Each licensee shall               (d) Recordkeeping.
establish records that will demonstrate that             (1) Each licensee shall establish the performance objectives of paragraph         records that will demonstrate that the (a) of this section and the system features     performance objectives stated and and capabilities of paragraph (c) of this       referenced in paragraph (a) of this section section have been met and maintain these        and the program capabilities of paragraph records in an auditable form, available for     (c) of this section have been met and inspection, for at least 3 years, unless a      maintain these records in an auditable longer retention time is required by part 75    form, available for inspection, for at least 3 of this chapter.                                years, unless a longer retention time is (2) Records that must be maintained             required by part 75 of this chapter.
pursuant to this part may be the original or             (2) Records that must be a reproduced copy or a microform if such        maintained pursuant to this part may be reproduced copy or microform is duly            the original or a reproduced copy or a authenticated by authorized personnel and       microform if such reproduced copy or 32

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                     Draft Final Rule (08/2018) the microform is capable of producing a         microform is duly authenticated by clear and legible copy after storage for the    authorized personnel and the microform is period specified by Commission                  capable of producing a clear and legible regulations. The record may also be             copy after storage for the period specified stored in electronic media with the             by Commission regulations. The record capability for producing, on demand,            may also be stored in electronic media legible, accurate, and complete records         with the capability for producing, on during the required retention period.           demand, legible, accurate, and complete Records such as letters, drawings, and          records during the required retention specifications must include all pertinent       period. Records such as letters, drawings, information such as stamps, initials, and       and specifications must include all signatures.                                     pertinent information such as stamps, (3) The licensee shall maintain adequate        initials, and signatures.
safeguards against tampering with and                     (3) The licensee shall maintain loss of records.                                adequate safeguards against tampering with and loss of records.
Subpart D--Special Nuclear Material of Moderate Strategic Significance
&sect; 74.41 Nuclear material control and            [In &sect; 74.41, revise paragraphs (a), (b), and [Revise &sect; 74.41 to read as follows:]
accounting for special nuclear material         (c) to read as follows:]
of moderate strategic significance.
(a) General performance objectives. Each                  (a) General performance                     (a) General performance licensee who is authorized to possess           objectives. (1) Each licensee who is         objectives. (1) Each licensee who is special nuclear material (SNM) of               authorized to possess and use SNM of         authorized to possess and use SNM of moderate strategic significance or SNM in       moderate strategic significance (as          moderate strategic significance (as a quantity exceeding one effective              defined in &sect;74.4 and shown in appendix A     defined in &sect;74.4 and shown in appendix A kilogram of strategic special nuclear           of this part) or 1 kilogram or more but less of this part), or SSNM in a quantity of more material in irradiated fuel reprocessing        than 5 kilograms of SSNM (as defined in      than 1 kilogram or more but less than 5 operations other than as sealed sources         &sect; 74.4 and shown in appendix A to this       kilograms of SSNM (as defined in &sect; 74.4 and to use this material at any site other      part) in irradiated fuel reprocessing        and shown in appendix A to this part) in than a nuclear reactor licensed pursuant to     operations at any site or contiguous sites   irradiated fuel reprocessing operations, at part 50 of this chapter; or as reactor          subject to control by the licensee, is       any site or contiguous sites subject to irradiated fuels involved in research,                                                       control by the licensee, is subject to:
33

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                       Draft Final Rule (08/2018) development, and evaluation programs in          subject to the performance objective                   (i) Tthe performance objective facilities other than irradiated fuel            requirements stated in &sect; 74.3.                 requirements stated in &sect; 74.3.; and reprocessing plants; or an operation                                                                    (ii)The performance objective involved with waste disposal, shall                                                             requirement to permit rapid determination establish, implement, and maintain a                                                            of whether an actual loss of a significant Commission-approved material control                                                            quantity of SNM has occurred, with and accounting (MC&A) system that will                                                          significant quantity being either more than achieve the following performance                                                               one formula kilogram of SSNM, or 10,000 objectives:                                                                                     grams or more of uranium-235 contained (1) Maintain accurate, current, and reliable                                                    in uranium enriched up to 20 percent.
information on, and confirm, the quantities                                                             (2) Production or utilizationNuclear and locations of SNM in the licensee's                    (2) Production or utilization         reactor facilities licensed under part 50 or possession;                                      facilities licensed under part 50 or 52 of     52 of this chapter; storage installations (2) Conduct investigations and resolve any       this chapter; licensees using reactor          licensed under part 72 of this chapter; anomalies indicating a possible loss of          irradiated fuels involved in research,         licensees using reactor irradiated fuels special nuclear material;                        development, and evaluation programs in        involved in research, development, and (3) Permit rapid determination of whether        facilities other than irradiated fuel          evaluation programs in facilities other than an actual loss of a significant quantity of      reprocessing plants; and operations            irradiated fuel reprocessing plants; and SNM has occurred, with significant               involving waste disposal, are not subject to operations involving waste disposal, are quantity being either:                           the requirements of subpart D of this part. not subject to the requirements of subpart (i) More than one formula kilogram of                                                           D of this part.
strategic SNM; or (ii) 10,000 grams or more of uranium-235 contained in uranium enriched up to 20.00 percent.
(4) Generate information to aid in the investigation and recovery of missing SNM in the event of an actual loss.
(b) Implementation schedule. Each                         (b) Implementation. Each                      (b) Implementation. Each applicant for a license, and each licensee       applicant for a license, and each licensee     applicant for a license, and each licensee that, upon application for modification of its   that, upon application for modification of its that, upon application for modification of its license, would become newly subject to           license, would become newly subject to         license, would become newly subject to the requirements of paragraph (a) of this        paragraph (a) of this section shall submit     paragraph (a) of this section shall submit section shall:                                   for approval an MC&A plan describing how       for approval an MC&A plan describing how the performance objectives of &sect; 74.3 and       the performance objectives of &sect; 74.3 and 34

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                        Draft Final Rule (08/2018)
(1) Submit a fundamental nuclear material       the requirements of paragraph (c) of this      paragraph (a) of this section will be control (FNMC) plan describing how the          section will be met. The MC&A plan shall       achieved, and how the requirements of performance objectives of &sect; 74.41(a) will       be implemented when a license is issued        paragraph (c) of this section will be met.
be achieved, and how the system                 or modified to authorize the activities being  The MC&A plan shall be implemented capabilities required by &sect; 74.41(c) will be     addressed in paragraph (a) of this section,    when a license is issued or modified to met; and                                        or by the date specified in a license          authorize the activities being addressed in (2) Implement the NRC-approved FNMC             condition.                                     paragraph (a) of this section, or by the plan submitted pursuant to paragraph                                                           date specified in a license condition.
(b)(1) of this section upon the Commission's issuance or modification of a license or by the date specified in a license condition.
(c) System capabilities. To achieve the                  (c) Program capabilities. To                   (c) Program capabilities. To performance objectives specified in &sect;           achieve the &sect; 74.3 performance                 achieve the &sect; 74.3 general performance 74.41(a), the MC&A system must include          objectives, the MC&A plan must include         objectives specified in &sect; 74.3 and the capabilities described in &sect;&sect; 74.43 and      the capabilities described in &sect;&sect; 74.43 and     paragraph (a) of this section, the MC&A 74.45, and must incorporate checks and          74.45, and must incorporate checks and         plan program must include the capabilities balances that are sufficient to detect          balances that are sufficient to detect         described in &sect;&sect; 74.43 and 74.45, and must falsification of data and reports that could    falsification of data and reports that could   incorporate checks and balances that are conceal diversion of SNM by:                    conceal diversion of SNM by:                   sufficient to detect falsification of data and (1) A single individual, including an                    (1) A single individual, including an reports that could conceal diversion of employee in any position; or                    employee in any position; or                   SNM by:
(2) Collusion between two individuals, one               (2) Collusion between two                      (1) A single individual, including an or both of whom have authorized access          individuals, one or both of whom have          employee in any position; or to SNM.                                         authorized access to SNM.                               (2) Collusion between two individuals, one or both of whom have authorized access to SNM.
&sect; 74.43 Internal controls, inventory, and       [In &sect; 74.43, revise paragraphs (b)(3),         [In &sect; 74.43, revise paragraphs (b)(3),
records.                                        (b)(5), (b)(6), (b)(7), and (c)(3); add new    through (b)(5), (b)(6), (b)(7)(b)(8), and paragraph (c)(9); and revise paragraph         (c)(3) and (d)(5); and add new paragraph (d)(5) to read as follows:]                    (c)(9); and revise paragraph (d)(5) to read as follows:]
(b) Internal controls.                                    (b)    *       *       *                      (b)     *       *
* 35

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
(3) The licensee shall provide for the                    (3) The licensee shall provide for          (3) The licensee shall provide for adequate review, approval, and use of            the adequate review, approval, and use of   the adequate review, approval, and use of written MC&A procedures that are                 written MC&A procedures that are            written MC&A procedures that are identified in the approved FNMC plan as          identified in the approved MC&A plan as     identified in the approved MC&A plan as being critical to the effectiveness of the       being critical to the effectiveness of the  being critical to the effectiveness of the described system.                                described system.                           described systemprogram.
(4) The licensee shall assure that                      *        *      *       *       *             (4) The licensee shall assure that personnel who work in key positions                                                          personnel who work in key positions where mistakes could degrade the                                                             where mistakes could degrade the effectiveness of the MC&A system are                                                         effectiveness of the MC&A system trained to maintain a high level of                                                          program are trained to maintain a high safeguards awareness and are qualified to                                                    level of safeguards awareness and are perform their duties and/or responsibilities.                                                qualified to perform their duties and/or responsibilities.
(5) The licensee shall establish, document,               (5) The licensee shall establish,           (5) The licensee shall establish, and maintain an item control program that:       document, implement, and maintain an        document, implement, and maintain an (i) Provides current knowledge of SNM            item control system as defined in &sect; 74.4. item control system as defined in &sect; 74.4.
items with respect to identity, element and      The system must ensure that items are       The system must ensure that items are isotope content, and stored location; and        stored and handled or subsequently          stored and handled, or subsequently (ii) Assures that SNM items are stored and       measured in a manner such that              measured, in a manner such that handled, or subsequently measured, in a          unauthorized removals of individual items   unauthorized removals of individual items manner such that unauthorized removal of         or any quantity of material (as defined in  or 200 grams or more of plutonium or 200 grams or more of plutonium or                &sect; 74.4) from items will be detected.        uranium-233, or 300 grams or more of uranium-233 or 300 grams or more of                                                          uranium-235, from one or more items any uranium-235, as one or more whole items                                                      quantity of material (as defined in &sect; 74.4) and/or as SNM removed from containers,                                                       from items will be detected.
will be detected.                                         (6) Exempted from the                       (6) Exempted from the (6) Exempted from the requirements of            requirements of paragraph (b)(5) of this    requirements of paragraph (b)(5) of this paragraph (b)(5) of this section are items       section are items in solution with a        section are:
that exist for less than 14 calendar days        concentration of less than 5 grams of                 (i) Solutions with a concentration and licensee-identified items each               U-235 per liter, and items of waste         of less than 5 grams per liter of plutonium containing less than 200 grams of                destined for burial or incineration.        or uranium-233 or uranium-235 or a plutonium or uranium-233 or 300 grams or                                                     combined concentration thereof of less more of uranium-235 up to a cumulative                                                       than 5 grams per liter; total of one formula kilogram of strategic                                                            (ii) Laboratory samples and SNM or 17 kilograms of uranium-235                                                           reference standards maintained in the 36

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                   Draft Final Rule (08/2018) contained in uranium enriched to 10.00                                                      laboratory material management system percent or more but less than 20.00                                                         and containing uranium enriched to less percent in the uranium-235 isotope.                                                         than 20 percent in uranium-235; (iii) Items existing less than 3 calendar days and containing less than 75 grams of plutonium or uranium-233 or 100 grams of uranium-235, or; (iv) Items of waste destined for burial or incineration.
(7) Conduct and document shipper-                          (7) Conduct and document                  (7) Conduct and document receiver comparisons for all SNM receipts,       shipper-receiver difference comparisons    shipper-receiver difference comparisons both on an individual batch basis and a          for all SNM receipts,                      for all SNM receipts, total shipment basis, and ensure that any                *       *      *     *     *                *         *       *      *
* shipper-receiver difference that is statistically significant and exceeds twice the estimated standard deviation of the difference estimator and 200 grams of plutonium or uranium-233 or 300 grams of uranium-235 is investigated and resolved; and (8) Perform independent assessments of                                                               (8) Perform independent the total MC&A system, at intervals not to                                                  assessments of the total MC&A exceed 18 months, that assess the                                                           systemprogram, at intervals not to exceed performance of the system, review its                                                       18 months, that assess the performance of effectiveness, and document                                                                 the systemprogram, review its management's action on prior assessment                                                     effectiveness, and document recommendations and identified                                                              management's action on prior assessment deficiencies. These assessments must                                                        recommendations and identified include a review and evaluation of any                                                      deficiencies. These assessments must contractor who performs SNM                                                                 include a review and evaluation of any accountability measurements for the                                                         contractor who performs SNM licensee.                                                                                   accountability measurements for the licensee.
37

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                     Draft Final Rule (08/2018)
(c) Inventory control and physical                       (c)      *       *      *                   (c)      *       *
* inventories.
(3) Maintain and follow procedures for                   (3) Maintain and follow procedures          (3) If tamper-safe seals are to be tamper-safing of containers or vaults          for tamper-safing (as defined in &sect; 74.4) of  used, mMaintain and follow procedures for containing SNM, if tamper-safe seals are       containers or vaults (as defined in &sect; 74.4)  tamper-safing (as defined in &sect; 74.4), of to be used for assuring the validity of prior  containing SNM which include control of      containers or vaults (as defined in &sect; 74.4) measurements, which include control of         access to, and distribution of, unused       containing SNM which include control of access to, and distribution of, unused         seals and records;                           access to, and distribution of, unused seals and to records showing the date and              *        *       *      *
* seals and records; time of seal application;                                                                          *        *       *      *       *
(9) Designate material balance             (9) Designate one or more material areas and item control areas, and assign     balance areas, and or a combination of custodial responsibility for each of these   one or more material balance areas and areas in a manner that ensures that such     one or more item control areas, and responsibility can be effectively executed   assign custodial responsibility for each of for all SNM possessed under license.         these areas in a manner that ensures that
                                                       *        *       *      *
* such responsibility can be effectively executed for all SNM possessed under license.
(d) Recordkeeping. The licensee shall:                   (d)      *       *      *
(5) Establish records that will demonstrate              (5) Establish records that will             (5) Establish records that will that the performance objectives of &sect;           demonstrate that the performance             demonstrate that the performance 74.41(a)(1) through (4), the system            objectives of &sect; 74.3 and &sect; 74.41(a)(1), the  objectives of &sect; 74.3 and &sect; 74.41(a)(1), the capabilities of paragraphs (b) and (c) of      system capabilities of paragraphs (b) and    system program capabilities of paragraphs this section and &sect; 74.45(b) and (c) have       (c) of this section, and &sect; 74.45(b) and (c)  (b) and (c) of this section, and &sect; 74.45(b) been met, and maintain these records in        have been met, and maintain these            and (c) have been met, and maintain an auditable form, available for inspection,   records in an auditable form, available for  these records in an auditable form, for at least 3 years, unless a longer          inspection, for at least 3 years, unless a   available for inspection, for at least 3 retention time is specified by &sect; 74.19(b),     longer retention time is specified by &sect;      years, unless a longer retention time is part 75 of this chapter, or by a specific      74.19(b), part 75 of this chapter, or by a   specified by &sect; 74.19(b), part 75 of this license condition.                             specific license condition.                  chapter, or by a specific license condition.
38

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                       Draft Final Rule (08/2018)
&sect; 74.45 Measurements and                         [In &sect; 74.45, revise paragraph (c)(4) to read measurement control.                             as follows:]
(c) Measurement control. To maintain                       (c)     *       *      *                     (c)     *       *
* measurement quality and to estimate measurement uncertainty values, the licensee shall:
(4) Establish and maintain a                  (4) Establish and maintain a (4) Establish and maintain a measurement         measurement control system so that for        measurement control system program so control program so that for each inventory       each inventory period the standard error of   that for each inventory period the standard period the SEID is less than 0.125 percent       the inventory difference (SEID) is less than  error of the inventory difference (SEID) is of the active inventory, and assure that         0.125 percent of the active inventory, and    less than 0.125 percent of the active any MC&A measurements performed                  assure that any MC&A measurements             inventory, and assure that any MC&A under contract are controlled so that the        performed under contract are controlled so    measurements performed under contract licensee can satisfy this requirement.           that the licensee can satisfy this            are controlled so that the licensee can requirement.                                  satisfy this requirement.
Subpart E--Formula Quantities of Strategic Special Nuclear Material
&sect; 74.51 Nuclear material control and             [Revise &sect; 74.51 to read as follows:]
accounting for strategic special nuclear material.
(a) General performance objectives. Each                  (a) General performance                       (a) General performance licensee who is authorized to possess five       objectives. (1) Each licensee who is          objectives. (1) Each licensee who is or more formula kilograms of strategic           authorized to possess and use five or         authorized to possess and use five or special nuclear material (SSNM) and to           more formula kilograms of strategic           more formula kilograms of strategic use such material at any site, other than a      special nuclear material (SSNM), as           special nuclear material (SSNM), as nuclear reactor licensed pursuant to part        defined in &sect; 74.4 and shown in appendix A     defined in &sect; 74.4 and shown in appendix A 50 of this chapter, an irradiated fuel           to this part, at any site or contiguous sites to this part, at any site or contiguous sites reprocessing plant, an operation involved        subject to control by the licensee is subject subject to control by the licensee is subject with waste disposal, or an independent           to the performance objective requirements     to the performance objective requirements spent fuel storage facility licensed             stated in &sect; 74.3, and to the following        stated in &sect; 74.3, and to the following pursuant to part 72 of this chapter shall        performance objectives:                       performance objectives:
39

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                               Proposed Rule (11/2013)                       Draft Final Rule (08/2018) establish, implement, and maintain a                      (i) Ongoing confirmation of the               (i) Ongoing confirmation of the Commission-approved material control             presence of SSNM in assigned locations;        presence of SSNM in assigned locations; and accounting (MC&A) system that will                    (ii) Timely detection of the possible         (ii) Timely detection of the possible achieve the following objectives:                abrupt loss of five or more formula            abrupt loss of five or more formula (1) Prompt investigation of anomalies            kilograms of SSNM from an individual unit      kilograms of SSNM from an individual unit potentially indicative of SSNM losses;           process; and                                   process; and (2) Timely detection of the possible abrupt               (iii) Rapid determination of whether          (iii) Rapid determination of whether loss of five or more formula kilograms of        an actual loss of five or more formula         an actual loss of five or more formula SSNM from an individual unit process;            kilograms of SSNM occurred.                    kilograms of SSNM occurred.
(3) Rapid determination of whether an                     (2) Production or utilization                 (2) Production or utilization Nuclear actual loss of five or more formula              facilities licensed under part 50 or 52 of     reactor facilities licensed under part 50 or kilograms occurred;                              this chapter, independent spent fuel           52 of this chapter, independent spent fuel (4) Ongoing confirmation of the presence         storage installations licensed under part      storage installations licensed under part of SSNM in assigned locations; and               72 of this chapter; and any licensee           72 of this chapter; , and any licensee (5) Timely generation of information to aid      operations involving waste disposal, are       operations involving waste disposal, are in the recovery of SSNM in the event of an       not subject to the requirements of subpart     not subject to the requirements of subpart actual loss.                                     E of this part.                                E of this part.
(b) System capabilities. To achieve the                   (b) Implementation. Each general performance objectives specified         applicant for a license, and each licensee in &sect; 74.51(a), the MC&A system must              that, upon application for modification of its provide the capabilities described in &sect;&sect;         license, would become newly subject to 74.53, 74.55, 74.57 and 74.59 and must           paragraph (a) of this section shall submit incorporate checks and balances that are         for approval an MC&A plan describing how sufficient to detect falsification of data and   the performance objectives of &sect; 74.3 and reports that could conceal diversion by:         paragraph (a) of this section will be (1) An individual, including an employee in      achieved, and how the requirements of any position; or                                 paragraph (c) of this section will be met.
(2) Collusion between an individual with         The MC&A plan shall be implemented MC&A responsibilities and another                when a license is issued or modified to individual who has responsibility or control     authorize the activities being addressed in within both the physical protection and the      paragraph (a) of this section, or by the MC&A systems.                                    date specified in a license condition.
(c) Implementation dates. Each applicant                  (c) Program capabilities. To                  (c) Program capabilities. To for a license, and each licensee that, upon      achieve the general performance                achieve the general performance 40

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                        Draft Final Rule (08/2018) application for modification of a license,      objectives specified in &sect; 74.3 and             objectives specified in &sect; 74.3 and would become newly subject to paragraph         paragraph (a) of this section, the MC&A        paragraph (a) of this section, the MC&A (a) of this section, shall submit a             plan must provide the capabilities             plan program must provide the capabilities fundamental nuclear material control            described in &sect;&sect; 74.53, 74.55, 74.57 and        described in &sect;&sect; 74.53, 74.55, 74.57, and (FNMC) plan describing how the MC&A             74.59 and must incorporate checks and          74.59 and must incorporate checks and system shall satisfy the requirement of         balances that are sufficient to detect         balances that are sufficient to detect paragraph (b) of this section. The FNMC         falsification of data and reports that could   falsification of data and reports that could plan shall be implemented when a license        conceal diversion of SNM or SSNM by:           conceal diversion of SNM or SSNM by:
is issued or modified to authorize the                   (1) A single individual, including an          (1) An individual, including an activities being addressed in paragraph (a)     employee in any position; or                   employee in any position; or of this section, or by the date specified in a           (2) Collusion between two                      (1) A single individual, including an license condition.                              individuals, one or both of whom have          employee in any position; or authorized access to SNM or SSNM.                       (2) Collusion between an individual with MC&A responsibilities and another individual who has responsibility or control within both the physical protection and the MC&A programs.
(2) Collusion between two individuals, one or both of whom have authorized access to SNM or SSNM.
(d) Inventories. Notwithstanding &sect;                       (d) Inventories. Notwithstanding 74.59(f)(1), licensees shall perform at least   &sect; 74.59(f)(1), licensees shall perform at three bimonthly physical inventories after      least 3 physical inventories at intervals not implementation of the NRC approved              to exceed 65 calendar days after FNMC Plan and shall continue to perform         implementation of the NRC-approved bimonthly inventories until performance         MC&A plan and shall continue to perform acceptable to the NRC has been                  such inventories at intervals not to exceed demonstrated and the Commission has             65 calendar days until performance issued formal approval to perform               acceptable to the NRC has been semiannual inventories. Licensees who           demonstrated and the Commission has have prior experience with process              issued formal approval to perform physical monitoring and/or can demonstrate               inventories at intervals not to exceed 185 acceptable performance against all Plan         calendar days. Licensees who have prior commitments may request authorization to        experience with process monitoring and/or can demonstrate acceptable performance 41

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                       Draft Final Rule (08/2018) perform semiannual inventories at an            against all MC&A plan commitments may earlier date.                                   request authorization to perform inventories at intervals not to exceed 185 calendar days at an earlier date.
&sect; 74.53 Process monitoring.                     [In &sect; 74.53, revise the introductory text of  [In &sect; 74.53, revise paragraphs (a) paragraph (a), and paragraphs (a)(3),         introductory text, (a)(3), (a)(4), and (c)(1)
(a)(4), and (c)(1) to read as follows:]       to read as follows:]
(a) Licensees subject to &sect; 74.51 shall                   (a) Licensees subject to &sect; 74.51 monitor internal transfers, storage, and        shall monitor internal transfers, storage, processing of SSNM. The process                 and processing of SSNM. The process monitoring must achieve the detection           monitoring must achieve the detection capabilities described in paragraph (b) of      capabilities described in paragraph (b) of this section for all SSNM except:               this section for all SSNM except:
(3) SSNM with an estimated measurement                   (3) SSNM with an estimated standard deviation greater than five            measurement standard deviation greater percent that is either input or output          than 5 percent that is either input or output material associated with a unit that            material associated with a unit that processes less than five formula kilograms      processes less than five formula kilograms over a consecutive three-month period;          over a period of 95 calendar days; and and                                                      (4) SSNM involved in research and (4) SSNM involved in research and               development operations that process less development operations that process less        than five formula kilograms during a period than five formula kilograms during any          of seven calendar days.
seven-consecutive-day period.                          *        *       *      *       *
(c)                                                      (c)      *       *      *                     (c)     *      *        *
(1) Perform material balance tests on a lot              (1) Perform material balance tests            (1) Perform material balance tests or a batch basis, as appropriate, or            on a lot or a batch basis, as appropriate,    on a lot or a batch basis, as appropriate, monthly, whichever is sooner, and               or at intervals not to exceed 30 calendar     or at intervals not to exceed 30 calendar investigate any difference greater than 200     days, whichever is sooner, and investigate    days, whichever is sooner, and investigate grams of plutonium or U-233 or 300 grams        any difference greater than 200 grams of      any difference greater than 200 grams of of U-235 that exceeds three times the           plutonium or U-233 or 300 grams of U-235      plutonium or Uuranium-233 or 300 grams of Uuranium-235 that exceeds three times 42

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                       Draft Final Rule (08/2018) estimated standard error of the inventory      that exceeds three times the estimated       the estimated standard error of the difference estimator;                          standard error of the inventory difference;  inventory difference estimator;
&sect; 74.57 Alarm resolution.                      [In &sect; 74.57, revise the introductory text of [In &sect; 74.57, paragraph (c) to read as follows:]           a. Revise paragraph (c) introductory text to read as follows; and in paragraph (d)(3),
remove the word system and add in its place the word program.]
(c) Each licensee shall notify the NRC                  (c) Each licensee shall notify the           (c) Each licensee shall notify the Operations Center by telephone of any          NRC Headquarters Operations Center by        NRC Headquarters Operations Center by MC&A alarm that remains unresolved             telephone of any MC&A alarm that             any available telephone system of any beyond the time period specified for its       remains unresolved beyond the time           MC&A alarm that remains unresolved resolution in the licensee's fundamental       period specified for its resolution in the   beyond the time period specified for its nuclear material control plan. Notification    licensee's MC&A plan. Notification must      resolution in the licensee's MC&A plan.
must occur within 24 hours except when a       occur within 24 hours except when a          Notification must occur within 24 hours holiday or weekend intervenes in which         holiday or weekend intervenes in which       except when a holiday or weekend case the notification must occur on the        case the notification must occur on the      intervenes in which case the notification next scheduled workday. The licensee           next scheduled workday. The licensee         must occur on the next scheduled may consider an alarm to be resolved if:       may consider an alarm to be resolved if:     workday. The licensee may consider an
                                                      *       *       *       *
* alarm to be resolved if:
(d) If a material loss has occurred, the                                                    (d)      *         *
* licensee shall determine the amount of SSNM lost and take corrective action to:
(1) Return out-of-place SSNM, if possible, to its appropriate place; (2) Update and correct associated records; and (3) Modify the MC&A system, if                                                              (3) Modify the MC&A systemprogram, if appropriate, to prevent similar future                                                      appropriate, to prevent similar future occurrences.                                                                                occurrences.
&sect; 74.59 Quality assurance and                  [In &sect; 74.59, revise paragraph (e)(7), the    In &sect; 74.59, revise paragraphs (b)(2), (c),
accounting requirements.                       introductory text of paragraph (f)(1), and   (e)(7), (f)(1) introductory text, (f)(2)(i),
43

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                          Draft Final Rule (08/2018) paragraphs (f)(2)(i), (h)(2)(ii), and (h)(5) to (h)(2)(ii), and (h)(3) through (5) to read as read as follows:]                               follows:
(b) Management structure. The licensee           *       *       *       *         *                       *       *       *      *
* shall:
(2) Provide for the adequate review,                                                                       (b) *   *
* approval, and use of those material control and accounting procedures that are                                                                         (2) Provide for the adequate identified in the approved FNMC plan as                                                          review, approval, and use of those being critical to the effectiveness of the                                                       material control and accounting described system.                                                                                procedures that are identified in the approved FNMC MC&A plan as being critical to the effectiveness of the described systemprogram.
(c) Personnel qualification and training.                                                                  (c) Personnel qualification and The licensee shall assure that personnel                                                         training. The licensee shall assure that who work in key positions where mistakes                                                         personnel who work in key positions could degrade the effectiveness of the                                                           where mistakes could degrade the material control and accounting system                                                           effectiveness of the material control and are trained to maintain a high level of                                                          accounting system program are trained to safeguards awareness and are qualified to                                                        maintain a high level of safeguards perform their duties and/or responsibilities.                                                    awareness and are qualified to perform their duties and/or responsibilities.
(e) Measurement control.                         (e)     *       *       *                       (e)       *       *       *
(7) Investigate and take corrective action,              (7) Investigate and take corrective               (7) Investigate and take corrective as appropriate, to identify and reduce           action, as appropriate, to identify and         action, as appropriate, to identify and associated measurement biases when, for          reduce associated measurement biases            reduce associated measurement biases like material types (i.e., measured by the       when, for like material types (i.e.,            when, for like material types (i.e.,
same measurement system), the net                measured by the same measurement                measured by the same measurement cumulative shipper/receiver differences          system), the net cumulative                     system), the net cumulative shipper/-
accumulated over a six-month period              shipper/receiver differences accumulated        receiver differences accumulated over a exceed the larger of one formula kilogram        over a period not to exceed 185 calendar        period not to exceedmore than 185 days results in a value greater than one        calendar days results in a valueexceed the 44

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                              Proposed Rule (11/2013)                     Draft Final Rule (08/2018) or 0.1 percent of the total amount              formula kilogram or 0.1 percent of the total  greater than of one formula kilogram or 0.1 received.                                       amount received.                              percent of the total amount received.
(8) Establish and maintain a statistical               *        *      *      *      *              *       *       *      *
* control system designed to monitor the quality of each type of program measurement. Control limits must be established to be equivalent to levels of significance of 0.05 and 0.001. Control data exceeding the 0.05 limits must be investigated and corrective action taken in a timely manner. Whenever a single data point exceeds the 0.001 control limit, the measurement system in question must not be used for material control and accounting purposes until it has been brought into control at the 0.05 level.
(f) Physical inventory. The licensee shall:              (f)      *      *      *
(1) Except as required by part 75 of this                (1) Except as required by part 75 of Chapter, perform a physical inventory at        this chapter, perform a physical inventory least every six calendar months and within      at least every 185 calendar days and 45 days after the start of the ending           within 45 calendar days after the start of inventory:                                      the ending inventory:
(2) Implement policies, practices, and                   (2)      *      *
* procedures designed to ensure the quality of physical inventories. These must                      (i) Development of procedures for include:                                        tamper-safing of containers or vaults (i) Development of procedures for tamper-       containing SSNM not in process that safing of containers or vaults containing       include adequate controls to assure the SSNM not in process that include                validity of assigned SSNM values and that adequate controls to assure the validity of     include control of access to, and assigned SSNM values;                           distribution of, unused seals and records; 45

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                   Draft Final Rule (08/2018)
(h) Internal control.                                   (h)      *       *     *                  (h)     *        *       *
(2) Establish a scrap control program that              (2)      *       *     *                  (2)     *        *
* assures that:
(ii) Any scrap measured with a standard                 (ii) Any scrap measured with a deviation greater than five percent of the     standard deviation greater than 5 percent measured amount is recovered so that the       of the measured amount is recovered so results are segregated by inventory period     that the results are segregated by and recovered within six months of the         inventory period and recovered within 185 end of the inventory period in which the       calendar days of the end of the inventory scrap was generated except where it can        period in which the scrap was generated be demonstrated that the scrap                 except where it can be demonstrated that measurement uncertainty will not cause         the scrap measurement uncertainty will noncompliance with &sect; 74.59(e)(5).              not cause noncompliance with
                                               &sect; 74.59(e)(5).
(3) Incorporate checks and (3) Incorporate checks and balances in the                                                balances in the MC&A system program MC&A system sufficient to control the rate                                                sufficient to control the rate of human of human errors in material control and                                                   errors in material control and accounting accounting information.                                                                   information.
(4) Perform independent (4) Perform independent assessments at                                                    assessments at least every 12 months that least every 12 months that assess the                                                     assess the performance of the MC&A performance of the MC&A system, review                                                    systemprogram, review its effectiveness, its effectiveness, and document                                                           and document management's action on management's action on prior assessment                                                   prior assessment recommendations.
recommendations. Assessments must                                                         Assessments must include an evaluation include an evaluation of the measurement                                                  of the measurement control program of control program of any outside contractor                                                 any outside contractor laboratory laboratory performing MC&A                                                                performing MC&A measurements for a measurements for a licensee, unless the                                                   licensee, unless the contractor is also contractor is also subject to the                                                         subject to the requirements of &sect; 74.59(e).
requirements of &sect; 74.59(e).                                                                       (5) Designate one or more material (5) Assign custodial responsibility in a                (5) Designate material balance    balance areas, and or a combination of manner that ensures that such                  areas and item control areas and assign    one or more material balance areas and 46

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                                Proposed Rule (11/2013)                        Draft Final Rule (08/2018) responsibility can be effectively executed        custodial responsibility for each of these      one or more item control areas, and for all SSNM possessed under license.             areas in a manner that ensures that such        assign custodial responsibility for each of responsibility can be effectively executed      these areas in a manner that ensures that for all SSNM possessed under license.           such responsibility can be effectively executed for all SNM possessed under license.
[Add appendix A to part 74 to read as follows:]
Appendix A to Part 74 -- Categories of Special Nuclear Material.
Notes:
: 1. The quantities in the table below are applied on a facility-wide basis and are the total quantities at the facility except for sealed sources. Sealed sources as defined in &sect; 74.4 are excluded from the quantities in the table.
: 2. Irradiated fuel, which by virtue of its original fissile material content is included as Category I or II before irradiation, is reduced one category level, during the period of time that the radiation level from the fuel exceeds 1 Sv per hour (100 rads per hour) at 1 meter, unshielded.
The formulae to calculate a quantity of SSNM as defined in &sect; 74.4 are as follows:
* Category I, 5000 grams or more of SSNM o grams = grams contained U-235 + 2.5 (grams U-233 + grams Pu)
* Category II, less than 5000 grams but more than 1000 grams of SSNM o grams = grams contained U-235 + 2 (grams U-233 + grams Pu)
* Category III, 1000 grams or less but more than 15 grams of SSNM o grams = grams contained U-235 + grams U-233 + grams Pu.
: 3. Irradiated fuel, which by virtue of its original fissile material content is included as Category I or II before irradiation, is reduced one category level, during the period of time that the radiation level from the fuel exceeds 1 Gy per hour (100 rad per hour) at 1 meter, unshielded.
Isotopic Material                                          Category I (Subpart E)         Category II (Subpart D)        Category III (Subpart C)
CompositionForm All plutonium                    2,000 grams or more             Less than 2,000 grams,         500 grams or less, but Plutonium (element)Unirradiated                                            but more than 500 grams        more than 15 grams Uranium-233        UnirradiatedAll U-233            2,000 grams or more             Less than 2,000 grams,         500 grams or less, but 47

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 enrichments                                                      but more than 500 grams       more than 15 grams Unirradiated Uranium Less than 5,000 grams,        1,000 grams or less, but enriched to 20% or more in       5,000 grams or more but more than 1,000 grams     more than 15 grams isotope U-235 Unirradiated Uranium Less than 10,000 grams, enriched to 10%, but less                                        10,000 grams or more Uranium-235                                                                                                       but more than 1,000 grams than 20%, in isotope U-235 Unirradiated Uranium enriched above 0.711%,
10,000 grams or more but less than 10%, in isotope U-235 Notes:
: 1. The quantities in the table are applied on a facility-wide basis and are the total quantities at the facility except for sealed sources.
Sealed sources as defined in &sect; 74.4 are excluded from the quantities in the table.
: 2. The formulae to calculate a quantity of SSNM as defined in &sect; 74.4 are as follows:
* Category I, 5,000 grams or more of SSNM o grams = grams contained U-235 + 2.5 (grams U-233 + grams Pu)
* Category II, less than 5,000 grams but more than 1,000 grams of SSNM o grams = grams contained U-235 + 2 (grams U-233 + grams Pu)
* Category III, 1,000 grams or less but more than 15 grams of SSNM o grams = grams contained U-235 + grams U-233 + grams Pu.
: 3. Irradiated fuel, which by virtue of its original fissile material content is included as Category I or II before irradiation, is reduced one category level (e.g., from Category I to Category II), during the period of time that the radiation level from the fuel exceeds 1 gray per hour (100 rad per hour) at 1 meter, unshielded.
48

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                          Final Rule (08/2018)
PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274 Continued Commission Authority in Agreement States
&sect; 150.17 Submission to Commission of           [In &sect; 150.17 revise paragraphs (a) and (b) nuclear material status reports.               to read as follows:]
(a) Except as specified in paragraph (d) of    (a) Except as specified in paragraph (d) of           (a) Except as specified in this section and &sect; 150.17a, each person        this section and &sect; 150.17a, all licensees    paragraph (d) of this section and possessing, or who had possessed in the        who possess or who had possessed in the      &sect; 150.17a, all licensees who possess or previous reporting period, at any one time     previous reporting period, under an          who had possessed in the previous and location, under an Agreement State         Agreement State license, one gram or         reporting period, under an Agreement license, special nuclear material in a         more of irradiated or non-irradiated special State license, one gram or more of quantity totaling one gram or more of          nuclear material are required to submit      irradiated or non-irradiated special nuclear contained uranium-235, uranium-233, or         both a Material Balance Report and a         material are required to submit both a plutonium, shall complete and submit, in       Physical Inventory Listing Report of these   Material Balance Report and a Physical computer-readable format Material              materials to the NMMSS in accordance         Inventory Listing Report of these materials Balance Reports concerning special             with the instructions in paragraph (a)(1) of to the NMMSS in accordance with the nuclear material that the licensee has         this section. Both reports shall be          instructions in paragraph (a)(1) of this received, produced, possessed,                 submitted between January 1 and March        section. Both reports shall be submitted transferred, consumed, disposed of, or         31 of each year.                             between January 1 and March 31 of each lost. This prescribed computer-readable                (1) Each licensee shall prepare      year.
report replaces the DOE/NRC Form 742           and submit the reports described in this              (1) Each licensee shall prepare which has been previously submitted in         section as follows:                          and submit the reports described in this paper form. The Physical Inventory Listing             (i) Reports must be submitted for    section as follows:
Report must be submitted with each             each Reporting Identification Symbol (RIS)            (i) Reports must be submitted for Material Balance Report. This prescribed       account, including all special nuclear       each Reporting Identification Symbol (RIS) computer-readable report replaces the          material that the licensee has received,     account, including all special nuclear DOE/NRC Form 742C which has been               produced, possessed, transferred,            material that the licensee has received, previously submitted in paper form. Each       consumed, disposed, or lost.                 produced, possessed, transferred, licensee shall prepare and submit the                                                       consumed, disposed, or lost.
49

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                           Final Rule (08/2018) reports described in this paragraph as                 (ii) Each licensee shall prepare and         (ii) Each licensee shall prepare and specified in the instructions in               submit the reports described in this section submit the reports described in this section NUREG/BR-0007 and NMMSS Report D-              as specified in the instructions in both     as specified in the instructions in both 24 Personal Computer Data Input for          NUREG/BR-0007 and NMMSS Report D-            NUREG/BR-0007, Instructions for the NRC Licensees. Copies of these               24, Personal Computer Data Input for       Preparation and Distribution of Material instructions may be obtained from the U.S. NRC Licensees.                             Status Reports, Final Draft (DOE [U.S.
Nuclear Regulatory Commission, Division                (iii) This prescribed computer-      Department of Energy]/NRC Forms 742 of Fuel Cycle Safety and Safeguards,           readable report replaces the DOE/NRC         and 742C), and NMMSS Report D-24, Washington, DC 20555-0001, or by e-mail        Form 742, Material Balance Report, and       Personal Computer Data Input for NRC to RidsNmssFcss@nrc.gov. Each person           DOE/NRC Form 742C, Physical Inventory        Licensees.
subject to this requirement shall submit a     Listing Report, which have been                      (iii) This prescribed computer-report no later than March 31 of each year. previously submitted in paper form.          readable report replaces the DOE/NRC The Commission may, when good cause                    (iv) Copies of these instructions    Form 742, Material Balance Report, and is shown, permit a licensee to submit          may be obtained from the U.S. Nuclear        DOE/NRC Form 742C, Physical Inventory Material Balance Reports and Physical          Regulatory Commission, Division of Fuel      Listing Report, which have been Inventory Listing Reports at other times.      Cycle Safety and Safeguards,                 previously submitted in paper form.
Each licensee required to report material      Washington, DC 20555-0001 or by e-mail               (iv) Copies of these instructions balance, and inventory information, as         to RidsNmssFcss.Resource@nrc.gov.            may be obtained from the U.S. Nuclear described in this part, shall resolve any              (2) The Commission may permit a      Regulatory Commission, Division of Fuel discrepancies identified during the report     licensee to submit the reports at other      Cycle Safety, and Safeguards, and review and reconciliation process within 30    times for good cause. Such requests must     Environmental Review, Washington, calendar days of notification of a             be submitted in writing to Chief, Material   DC 20555-0001 or by e-mail to discrepancy identified by NRC.                 Control and Accounting Branch, Division      RidsNmssFcss.Resource@nrc.govRidsN of Fuel Cycle Safety and Safeguards,         mssFcse.Resource@nrc.gov.
Office of Nuclear Material Safety and                (2) The Commission may permit a Safeguards, U.S. Nuclear Regulatory          licensee to submit the reports at other Commission, Washington, DC 20555. The        times for good cause. Such requests must licensee must continue to report as          be submitted in writing to Chief, Material required until such request is granted.      Control and Accounting Branch, Division (3) Any licensee who is required to  of Fuel Cycle Safety, and Safeguards, and submit routine Material Status Reports       Environmental Review, Office of Nuclear under &sect; 75.35 of this chapter (pertaining to Material Safety and Safeguards, U.S.
implementation of the U.S./IAEA              Nuclear Regulatory Commission, Safeguards Agreement) shall prepare and      Washington, DC 20555. The licensee submit these reports only as provided in     must continue to report as required until that section (instead of as provided in      such request is granted.
50

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                         Final Rule (08/2018) paragraphs (a) through (b) of this section).         (3) Any licensee who is required to (4) Each licensee subject to the     submit routine Material Status Reports requirements of this section shall resolve   under &sect; 75.35 of this chapter (pertaining to any discrepancies identified during the      implementation of the U.S./IAEA report review and reconciliation process     Safeguards Agreement) shall prepare and within 30 calendar days of notification of a submit these reports only as provided in discrepancy identified by the NRC.           that section (instead of as provided in paragraphs (a) through (b) of this section).
(4) Each licensee subject to the requirements of this section shall resolve any discrepancies identified during the report review and reconciliation process within 30 calendar days of notification of a discrepancy identified by the NRC.
(b) Except as specified in paragraph (d) of            (b) Except as specified in                   (b) Except as specified in this section and &sect; 150.17a, each person        paragraph (d) of this section and            paragraph (d) of this section and possessing, or who had possessed in the        &sect; 150.17a, each person possessing, or        &sect; 150.17a, each person possessing, or previous reporting period, at any one time     who had possessed in the previous            who had possessed in the previous and location, under an Agreement State         reporting period, at any one time and        reporting period, at any one time and license:                                       location, under an Agreement State           location, under an Agreement State (1) One kilogram or more of uranium or         license:                                     license:
thorium source material with foreign                   (1) One kilogram or more of                  (1) One kilogram or more of obligations, shall document holdings as of     uranium or thorium source material with      uUranium or thorium source material in September 30 of each year and submit to        foreign obligations, shall document          quantities of 1 kilogram or more with the Commission within 30 days.                 holdings as of September 30 of each year     foreign obligations, shall document Alternatively, these reports may be            and submit the material status reports to    holdings as of September 30 of each year submitted with the licensees material         the Commission within 30 days.               and submit the material status reports to status reports on special nuclear material     Alternatively, these reports may be          the Commission within 30 days.
filed under part 72 or 74 of this chapter. submitted with the licensees material       Alternatively, these reports may be This statement must be submitted to the        status reports on special nuclear material   submitted with the licensees material address specified in the reporting             filed under part 74 of this chapter. This    status reports on special nuclear instructions in NUREG/BR-0007, and             statement must be submitted to the           materialSNM filed under part 74 of this include the Reporting Identification Symbol    address specified in the reporting           chapter. This statement must be submitted (RIS) assigned by the Commission.              instructions in NUREG/BR-0007, and           to the address specified in the reporting (2) One kilogram or more of uranium or         include the RIS assigned by the              instructions in NUREG/BR-0007, and thorium source material in the operation of    Commission.
51

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                             Proposed Rule (11/2013)                         Final Rule (08/2018) enrichment services, downblending                       (2) One kilogram or more of         include the RIS assigned by the uranium that has an initial enrichment of      uranium or thorium source material in the    Commission.
the U235 isotope of 10 percent or more, or     operation of enrichment services, down                (2) One kilogram or more of in the fabrication of mixed-oxide fuels shall  blending uranium that has an initial         uUranium or thorium source material in complete and submit, in computer-              enrichment of the U-235 isotope of 10        quantities of 1 kilogram or more used in readable format, Material Balance and          percent or more, or in the fabrication of    the operation of enrichment services, Physical Inventory Listing Reports             mixed-oxide fuels shall complete and         down blending uranium that has an initial concerning source material that the            submit, in computer-readable format,         enrichment of the U-235 isotopeuranium-licensee has received, produced,               Material Balance and Physical Inventory      235 of 10 percent or more, or in the possessed, transferred, consumed,              Listing Reports concerning source material   fabrication of mixed-oxide fuels shall disposed, or lost. Reports must be             that the licensee has received, produced,    complete and submit, in computer-submitted for each Reporting Identification    possessed, transferred, consumed,            readable format, Material Balance and Symbol (RIS) account including all holding     disposed, or lost. Reports must be           Physical Inventory Listing Reports accounts. Each licensee shall prepare and      submitted for each RIS account including     concerning source material that the submit these reports as specified in the       all holding accounts. Each licensee shall    licensee has received, produced, instructions in NUREG/BR-0007 and              prepare and submit these reports as          possessed, transferred, consumed, NMMSS Report D-24, Personal                  specified in the instructions in             disposed, or lost. Reports must be Computer Data Input for NRC Licensees.       NUREG/BR-0007 and NMMSS Report D-            submitted for each RIS account including These reports must document holdings as        24, Personal Computer Data Input for       all holding accounts. Each licensee shall of September 30 of each year and               NRC Licensees. These reports must          prepare and submit these reports as submitted to the Commission within 30          document holdings as of September 30 of      specified in the instructions in days. Alternatively, these reports may be      each year and be submitted to the            NUREG/BR-0007 and NMMSS Report D-submitted with the licensees material         Commission within 30 days. Alternatively,    24, Personal Computer Data Input for status reports on special nuclear material     these reports may be submitted with the      NRC Licensees. These reports must filed under part 72 or 74 of this chapter. licensees material status reports on        document holdings as of September 30 of Copies of the reporting instructions may       special nuclear material filed under part 74 each year and be submitted to the be obtained by writing to the U.S. Nuclear     of this chapter. Copies of the reporting     Commission within 30 days. Alternatively, Regulatory Commission, Division of Fuel        instructions may be obtained by writing to   these reports may be submitted with the Cycle Safety and Safeguards,                   the U.S. Nuclear Regulatory Commission,      licensees material status reports on Washington, DC 20555-0001, or by e-mail        Division of Fuel Cycle Safety and            special nuclear material filed under part 74 to RidsNmssFcss@nrc.gov. Each licensee         Safeguards, Washington, DC 20555-            of this chapter. Copies of the reporting required to report material balance, and       0001, or by e-mail                           instructions may be obtained by writing to inventory information, as described in this    to RidsNmssFcss.Resource@nrc.gov.            the U.S. Nuclear Regulatory Commission, part, shall resolve any discrepancies          Each licensee required to report material    Division of Fuel Cycle Safety and identified during the report review and        balance, and inventory information, as       Safeguards, Washington, DC 20555-reconciliation process within 30 calendar      described in this part, shall resolve any    0001, or by e-mail 52

Draft Final Rule, Amendments to Material Control and Accounting Regulations PRELIMINARY INFORMATION FOR PUBLIC MEETING ON AUGUST 28, 2018 Current Rule                            Proposed Rule (11/2013)                        Final Rule (08/2018) days of the notification of a discrepancy       discrepancies identified during the report  to RidsNmssFcss.Resource@nrc.govRids identified by the NRC.                          review and reconciliation process within 30 NmssFcse.Resource@nrc.gov. Each calendar days of the notification of a      licensee required to report material discrepancy identified by the NRC.          balance, and inventory information, as
                                                      *      *        *      *
* described in this part, shall resolve any discrepancies identified during the report review and reconciliation process within 30 calendar days of the notification of a discrepancy identified by the NRC.
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