ML20206T158
| ML20206T158 | |
| Person / Time | |
|---|---|
| Issue date: | 09/09/1986 |
| From: | Shao L NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES) |
| To: | Browning R, Cunningham R, Olmstead W NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS), NRC OFFICE OF THE GENERAL COUNSEL (OGC) |
| Shared Package | |
| ML20206T154 | List: |
| References | |
| FRN-52FR1292, RULE-PR-30, RULE-PR-40, RULE-PR-50, RULE-PR-61, RULE-PR-70, RULE-PR-72 AC16-2-09, AC16-2-9, NUDOCS 8609250437 | |
| Download: ML20206T158 (37) | |
Text
.y - - C /6 - X bec: (w/ encl .) J. G. Davis, NMSS D. F. R2ss J. H. Sniezek C. Z. Serpan K. G. Steyer A F. P. Cardile R. O'Connell, NMSS SEP 9 1986 B. Pineles, OGC J. R. Mapes, OGC R. S. Wood, SP M. Lesar, ADM MEMORANDUM FOR: DISTRIBUTION w/o encl.:
L. C. Shao, Deputy Director MB r/f Division of Engineering Safety MB s/f Office of Nuclear Regulatory Research DIVISION REVIEW REQUEST: FINAL RULE AMENDMENTS TO
SUBJECT:
10 CFR PARTS 30, 40, 50, 61, 70, AND 72 REQUIRING LICENSEES TO NOTIFY NRC OF CASES OF BANKRUPTCY FILING Your assistance is requested in reviewing the enclosed final rule amendments requiring licensees to notify NRC of cases of bankruptcy filing.
The following is a summary of this request:
1.
Title:
Bankruptcy Filing; Notification Requirements
- 2. Task No.: CE-502-1
- 5. Requested Action: Review and comment Requested Completion Date: September 24, 1986 6.
- 7.
Background:
(a) On June 21, 1986, the Comission published a Notice of Proposed Rulemaking (51 FR 22531) containing requirements for notifica-l H
tion in the event of bankruptcy involving licensees. Specifically, the amendments require each licensee to notify the appropriate regional office of the NRC, in writing, in the event of the filing of a bankruptcy A licensee would not be affected by petition involving the licensee.these amendments unless and until a bankrup The purpose of the amended regulations is that NRC have hazards to the public health and safety that may be posed by a licensee that does not have the financial resources to properly handle licensed
(
' radioactive material or to clean up possible contamination.
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9 1986 f SEP MEMORANDUM FOR DISTRIBUTION During the public coment period, eight coment letters were received.
Five of the letters expressed strong support for the proposed rule based to a large extent on problems which they had experienced with bankrupt licensees. The other three letters contained specfic comments which are discussed and resolved in the Supplementary Information to the Final Rule (Enclosure A).
Based on the public coments received, there are no changes to the rule text except those of an editorial nature.
(b) At this time your review is requested of:
(1) The Federal Register Notice (Enclosure A); and (2) The Pegulatory Analysis (Enclosure B).
The congressional letters and public announcement will be written at a later date.
L. C. Shao, Deputy Director Division of Engineering Safety Gef Me' of Nuclear Regulatory Research
Enclosures:
as stated b
.//y RES: B RE :MB R DES RES:MB:M FPCardile KGSteyer CSerpan L hao 09/g/86. 09/i[/86 09/g/86 09/ /86 g
e-
SEPS 1995 MEMORANDUM FOR DISTRIBUTION ichard E. Cunningham, Director, NMSS/FC Robert E. Browning, Director, NMSS/WM illiam J. Olmstead, OGC erome D. Saltzman, Director, SP/SLR hemisP.Speis, Director,NRR/SRO(4)
/'Donnie Grimsley, Director, ADM/DRR James G. Partlow, Director, IE/IP vrThomas E. Murley, Administrator, Region I w/J. Helson Grace, Administrator, Region II d ames G. Keppler, Administrator, Region III JRobert D. Martin, Administrator. Region IV John B. Martin, Administrator, Region V .
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NUCLEAR REGULATORY COMMISSION 10 CFR Parts 30, 40, 50, 61, 70, and 72 Bankruptcy Filing; Notification Requirements AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
SUMMARY
The Nuclear Regulatory Commission is amending its regulations by requiring a licensee to natify the appropriate Regional Ad:ninistrator of the NRC in the event that the licensee is involved in bankruptcy pro-ceedings. The amende'd regulations 'are*necessary because a licensee's severe financial conditions could affect its ability to handle licensed radioactive material and the NRC must be notified so that appropriate measures to protect the public health and safety can be taken.
EFFECTIVE DATE: (Insert a date 30 days following publication in the Federal Register).
Frank Cardile, Office of Nuclear Regu-FOR FURTHER INFORMATION CONTACT:
latory Research, U.S. Nuclear Regulatory Commission, Washington, DC 2055 telephone (301) 443-7784.
SUPPLEMENTARY INFORMATION:
Discussion The NRC is amending its regu-Requirements Established by the rule.
i lations to provide requirements for notification in the event of bankrupt:y 1 Enclosure A 09/03/86
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[7590-01) involving licensees. Specifically, the regulatio s require each licensee to notify the appropriate regional office of the NRC, in writing, in the event of the filing of a bankruptcy petition invc'ving the licensee filed under Title 11 (Bankruptcy) of the United States Code. A licensee would not be affected by these amendments unless and ur-il a bankruptcy petition is filed. The rule prescribes the specific actit. that a licensee would be required to follow at that time. This action includes notifying the NRC within a certain time period by supplying the information specified in the rule.
Need for.the rule. A licensee wh.o is experiencing severe economic hardship may not be capable of carrying out licersed activities in a manner which protects public health and safety. In par-icular, a licensee involved in bankruptcy proceedings can have problems affe:-ing payment for the proper handling of licensed radioactive material and for the decontamina-Im-tion and decommissioning of the licensed facilit,. in a safe manner.
proper materials handling or decontamination act'vities can result in the spread of contamination throughout a licensee's facility, potential for dispersion of contaminated material offsite, anc problems affecting the licensee's waste disposal activities. Instances nave occurred in which licensees filed for bankruptcy and the NRC has n:: been aware that this has happened. NRC inspectors have found, belate:iy, that a licensee has vacated property and abandoned licensed material or has been unable to In some decontaminate its facility and properly dispose :f the waste.
cases, NRC inspectors have found significant am: .ts of radioactive con-tamination present at licensee sites and the pots-tial for dispersal of 2 Enclosure A 09/03/86 O - '__._ma * - -
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the contaminated material offsite. Because of the potential risk to pub-lic health and safety if the facilities were lef t in their as-found con-dition, it was necessary for the NRC or the State government to take pro-tective and remedial action and to expend substantial amounts of public funds for cleanup of the facilities because funds of the bankrupt licensee were no longer available. The NRC should be notified of these situations promptly, before they become more serious, so that it can take necessary actions to assure that the health and safety of the public is protected.
There is no current regulation requiring licensees to notify the NRC in cases of bankruptcy filings. Therefore, the NRC may not be aware of a significant financial problem for a particular licensee and thus also not be aware of potential public health and safety problems. Notifying the NRC in cases of bankruptcy will alert the Commission so that it may deal with potential hazards to the public health and safety posed by a licensee that does not have the resources to pro'perly secure the licensed material or clean up possible contamination.
Background
P On June 20, 1986, the Commission published a Notice of 'roposed Rulemaking (51 FR 22531) containing notification requirements in the event It of bankruptcy filing. The comment period expired on July 21, 1986.
was indicated in the Notice that the proposed amendments applied to all licensees covered by 10 CFR Parts 30, 40, 50, 61, 70, and 72, including byproduct, source, and special nuclear material licensees, as well as production and utilization facility, low-level waste disposal facility, and indepen. dent spent fuel storage installation licensees.
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Analysis of Public Comments Eight comment letters were received on the pro:osed amendments.
Four were from state agencies, two from private concanies, one from a medical group, and one from an electric utility licensee. The state agencies indicated that they support the need for t% rule and the method of implementation. Two of the state agencies speci'ically noted that they had had several cases of bankruptcy and that t e bankruptcies had cost them significant amounts of time and effort due in most cases to the fact that they learned of the bankruptcies long after the action was filed. These agencies also noted that they found radioactive material either abandoned or in the possession of unauthorized persons. The comment letter from one of the private companies indicated nat, based on their experience of having been in Chapter 11 status and :ased on their discuss-ions with other companies who have been involved ir bankruptcy situations, that they agree that there is a risk involved and t.at the proposed rule is entirely justified.
The letter from the medical group indicated op;osition to the rule since the commenter felt the rule affected only physicians and that to be equitable it should affect others such as engineers, plum'bers, and In tradesmen, and, in addition, that the regulation is voluminous.
response to this comment the Commission believes tre commenter has mis-understood the regulation. As stated above, the re;ulation applies to all 10 CFR Part 30, 40, 50, 61, 70 and 72 licenstes which includes a In addition, the wide variety of types of companies and individuals.
regulation is not voluminous, but requires only a r:tification to the NRC of two pieces of information.
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The comment letter from the electric utility licensee indicated opposition to the rule as it applies to 10 CFR Part 50 licensees for the following reasons: the regulatory analysis supporting the rule relates to non-utility licensees and applying it to utilities for the sake of consistency is an inadequate basis for the Part 50 amendment; it is an incorrect assumption that the act of filing a bankruptcy petition affects a utility license's ability to safely handle licensed material; the amend-ment would further involve NRC in utility financial matters which is an area where NRC should proceed cautiously; and NRC already possesses methods of monitoring a utility licensee's financial condition including the availability of credit agency ratings which can be monitored and including required submittals of financial statements under 10 CFR 70.71(b) which w
NRC could review and use to observe trends. In response to this commenter the regulatory analysis indicates other reasons for proceeding with this rulemaking besides consistency in the regulation. These reasons include the fact that there is some potential for reduction in public and occu-pation exposure, that there is an improvement in NRC's inspection and enforcement capabilities, and that the burden on industry and NRC is minimal.
The amendment by itself would not further involve NRC in utility financial matters but would only make NRC aware of a specific situation. Actions taken in response to the situation are not treate: in this rulemaking.
Finally, it appears that a direct notification of bankruptcy would be a better means of HRC becoming alert to the situaticn than a monitoring of trends or credit ratings.
The comment letter from the other private company indicated that the Supplementary Information and the rule text shou".: make it ~ clear that a licensee o'nly has to notify the NRC if involved i a bankruptcy as a debtor.
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The commenter noted that a licensee might be involved as a creditor in a bankruptcy and should not have to worry about notifying the NRC in this situation. This comenter also suggested that the rule text be changed from "Each licensee shall notify...(NRC) of a petition for bankruptcy...by or 'against (i) A licensee" to "Each licensee shall notify ...(NRC) of a... petition for bankruptcy... by or against (i) The licensee." In response to the first comment, the Commission believes that the rule text itself is clear in that it states the specific situations which would require a licensee to submit a notification to the NRC. A licensee's status as a creditor or debtor is outside the rule scope as the intent of the rule is that NRC be aware of severe financial situations which could affect the licensees' capability to handle radioac,tive material.
Based on this intent, the rule states specifically that a licensee should notify the NRC if there is a filing of a petition for bankruptcy by or against the licensee, an entity controlling the licensee, or an affiliate of the licensee. It is these situations that the Supplementary Information is referring to when it discusses a licensee as being " involved" in a bankruptcy. With regard to the second comment, the rule text has been changed to reflect the comment.
ENVIRONMENTAL IMPACT Categorical Exclusion The NRC has determined that this regulation is the type of action Therefore, described in categorical exclusion 10 CFR 51.22(c)(3)(iii).
neither an environmental impact statement nor an environmen'tal assessment has been prepared for this regulation.
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- PAPERWORK REDUCTION ACT STATEMENT This final rule amends information collection requirements that are subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).
These requirements were approved by the Office of Management and Budget under approval numbers Part 30 - 3150-0017, Part 40 - 3150-0020; Part 50 -
3150-0011; Part 61 - 3150-0135; Part 70 - 3150-0009; and Part 72 - 3150-0132.
REGULATORY ANALYSIS The Commission has prepared a regulatory analysis on this final regu-lation. The analysis examines the costs and benefits of the alternatives considered by the Commission. The analysis is available for inspection Single in the NRC Public Document Room,1717 H Street NW. , Washington, DC.
copies of the analysis may be obtained.from Frank Cardile, U.S. Nuclear Regulatory Commission, Washington, DC, 20555, telephone (301) 443-7784.
REGULATORY FLEXIBILITY CERTIFICATION In accorda.nce with the Regulatory Flexibility Act of 1980, 5 U.S.C
-t 605(b), the Commission certifies that this rule does not have a signifi-The rule cant economic impact on a substantial number of small entities.
amends 10 CFR Parts 30, 40, 50, 61, 70, and 72 te require that licensees notify the appropriate NRC Regional Office in the event of the commence-ment of a bankruptcy proceeding involving the licensee so that NRC is aware of this significant financial problem and can take necessary actions Because assuring that the health and safety of the public is protected.
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no action is required of a licensee by these amendments unless and until a bankruptcy petition is filed, there is no impact from this rule unless bankruptcy filing occurs. Even in the event of bankruptcy, the impact of this rule on licensees is small since the United States Code contains This rule requirements regarding notification of creditors of bankruptcy.
In additior., the required action requires one additional notification.
consist,s only of a notification by mail to the NRC, an action representing
- less than one-half person-hour of effort. The net overall cost to the industry is negligible.
BACKFIT ANALYSIS s
Backfit Analysis Factors 10 CFR 50.109 (50 FR 38097) requires that an analysis be performed for backfits which the Commission seeks to impose on power reactor licensees.
This rule requiring notification of bankruptcy has been anal-yzed based on the factors listed in 10 CFR 50.109(c) as follows:
(1) The objective of the amendments is for NRC to have means in place so that it would be alerted and would have the opportunity to take the public health and necessary action to deal with potential hazards t:
safety that may occur at a facility where a licersee is involved in bank-ruptcy proceedings. Although the likelihood of c;ility bankruptcy is small and in most instances NRC would be aware of it occurring, there is a potential that NRC may not be aware of a partic;lar bankruptcy situa-tion involving a licensee.
The amendments require a licensee to n::ify the appropriate (2) n the e.snt of the commencement regional of fice of the NRC, in writing, i
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s of a bankruptcy proceeding involving the licensee. A licensee would not be affected by these amendments unless and until a bankruptcy petition is filed.
(3) The amendments improve NRC's inspectic and enforcement capabi-lities in dealing promptly with the potential radiological consequences of a licensee's severe financial problems thus providing a benefit in In addition, although the protection of the public health and safety.
level of risk to the public is small, NRC's timely involvement can result in some potential reduction in the risk of radiation exposure by reducing the likelihood that improper radioactive waste bandling or decontamina-tion will occur at a facility where a licensee is involved in bankruptcy
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(4) In a manner similar to that described in (3) above, although it would be small, the amendments result in soms reduction in risk of radiological exposure of facility employees by reducing the potential for spread of contamination in the facility and resultant occupational exposure.
(5) The amendments impose requirements fc- administrative procedure action only, hence there is no equipment instaliation cost,'no facility As indicated in (2),
downtime cost, and no cost of construction dela .
there is no action required of a licensee unless and until a bankruptcy petition is filed and hence there is no continJng cost associated with the backfit. Even in the event of bankruptcy 1 e cost impact of this rule t
is negligible because the action required, nami y a notice listing the location and date of the bankruptcy filing mai'ed to the NRC regional office, is minima'. As noted in (3) and (4) at:<e, timely -involvement of 9 Enclosure A 09/03/86 D
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NRC in the situation can minimize potential for spread of contamination in the facility and therefore also minimize added cleanup costs which could then occur. This reduction in cost can be substantial compared to the small cost associated with'the notification, res.lting in net savings.
(6) The amendments are administrative and bence have no safety impact of changing plant or operational complexity.
(7) With regard to the resource burden on the NRC, no NRC activity is necessary unless and until a licensee submits a notification to the NRC. If a notice were submitted, the amount of time spent on actually reading and docketing of the notification would be minimal. By alerting NRC to the situation, this rule would put NRC in a better reactive mode and thereby could reduce NRC staff time involved in activities such as necessary enforcement actions and meetings with a concerned public regarding a contaminated facility. This reduction in staff time could be significantly greater than that spent in reading and docketing the notification, thus resulting in a net reduction in staff resources.
(8) The amendments apply to all power reactor licensees independent of facility type, design, and age.
(9) When the amendment is made effective, it will be a' final action.
Backfit Analysis Determination Based on the analysis of the factors as presented above the Commission has determined that this rule does not meet the backfitting requirements of 10 CFR 50.109(a)(3) namely that there be a substantial increase in overall protection of public health and safety. However, the rule is not intended to provide a substantial increase in overall protection but is considered justifiable and warranted to prevent a decrease in the level 10 Enclosure A 09/03/86 O
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In addition, of protection considered available under current regulations.
The the rule is considered to save resources in bankruptcy circumstances.
Commission is promulgating the rule for the following reasons: (1) there is some', albeit small, potential for reduction in public and occupational exposure; (2) the action required by this rule is administrative, result-ing in no installation, downtime, or construction costs and no effect on plant or operational complexity; (3) the burden or industry and NRC is minimal, and in fact this action would probably rtsult in a net reduction in NRC resource expenditures; and (4) this action is justified for non-power reactor and materials facilities based on a assessment of the costs and benefits in the Regulatory Analysis (Section E.0), and imposing it for reactor plants also provides for consistency in tre regulations.
s LIST OF SUBJECTS IN 10 CFR PARTS 30, 40, 5~., 61, 70 AND 72 Part 30 - Byproduct material, Government contracts, Intergovernmental relations, Isotopes, Nuclear materials, Penalty, Radiation protection, Reporting and recordkeeping requirements.
' Part 40 - Government contracts, Hazardous materials - transportation, Nuclear materials, Penalty, Reporting and recordkeeping requirements, Source material, Uranium.
Part 50 - Antitrust, Classified information, Fire prevention, Incor-l poration by reference, Intergovernmental relations, Nuclear power plants and reactors, Penalty, Radiation protection, Reac or siting criteria, Reporting and recordkeeping requirements. ~
Part 61 - Low-level waste, Nuclear materials, Penalty, . Reporting and recordkeeping requirements, Waste treatment and c'sposal.
11 Enclosure A 09/03/86
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Part 70 - Hazardous materials - transportation, teclear materials, Packaging and containers, Penalty, Radiation protectice., Reporting and ,
recordkeeping requirements, Scientific equipment, Sect-ity measures, Special nuclear material.
Part 72 - Manpower training programs, Nuclear ma arials, Occupational safety and health, Reporting and recordkeeping requirenents, Security measures, Spent fuel.
FINAL RULEMAKING For the reasons set out in the preamble and unde the authority of the Atomic Energy Act of 1954, as amend,ed, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 553, the NRC is ado: ing the following amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72 PART 30 - RULES OF GENERAL APPLICABILITY TO DOME! TIC LICEN OF BYPRODUCT MATERIAL
- 1. The authority citation for Part 30 continues to rea'd as follows:
AUTHORITY:
Sections 81, 82,161,182,183,186, 68 Stat. 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C.
202, 206, 88 2111, 2112, 2201, 2232, 2236, 2282); secs. 201, as anended, Stat. 1242, as amended 1244,1246 (42 U.S.C. 5841, SEl2, 5846).
3 Section 30.7 also issued under Pub. L.95-601, sec.10, 92 Stat.
Section 30.34(b) also issued .nder sec.184, 68 2951 (42 U.S.C. 5851).
Stat. 954, as amended (42 U.S.C. 2234). S'ection 30.f'. also' issued under sec.187, 68 Stat. 955 (42 U.S.C. 2237).
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For purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);
$$ 30.3, 30.34(b) and (c), 30.41(a) and (c), and 30.53 are issued under sec.161b, 68 Stat, 948, as amended (42 U.S.C. 2201(b)); and $$ 30.36, 68 30.51, 30.52, 30.55, and 30.56(b) and (c) are issued under sec. 1610, Stat. 950, as amended (42 U.S.C. 2201(o)).
- 2. Section 30.34 is amended by adding a new paragraph (h) to read as follows:*
S 30.34 Terms and conditions of licenses.
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(h)(1) Each licensee shall notify the ap;*opriate NRC Regional Administrator, in writing, immediately followirg the filing of a voluntary Chapters of Title 11 or involuntary petition for bankruptcy under a /
(Bankruptcy) of the United States Code by or a;ainst:
(i) [A] The licensee; (ii)
An entity (as that term is defined i- 11 U.S.C. 6101(14))
controlling [a] the licensee or listing the li:ense or licensee as property of the estate; or (iii) An affiliate (as that term is define: in 11 U.S.C: 9 101(
of the licensee.
(2) This notification must indicate:
(i) The bankruptcy court in which the petition for bankruptcy was filed; and (ii) The date of the filing of the petit':n.
le are shown in comparative
- Changes made from the proposed to the final text; deletions are bracketed and lined thro.;h and additions are under-lined. Comparative text will be removed bef: e subnittal to the Office of the Federal Register. ,
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PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL
- 3. The authority citation for Part 40 continues to read as follows:
AUTHORITY: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat.
932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2), 83, 84, Pub. L.95-604, 92 Stat. 3033, as amended, 3039, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274, Pub. L.82-373, 73 Stat.
688 (42 U.S.C. 2021); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244,1246 (42 U.S.C. 5841, 5842, 5846); sec. 275, 92 Stat.
3021, as amended by Pub. L.97-415, 96 Stat.'2067 (42 U.S.C. 2022).
Section 40.7 also issued under Pub. L.95-601, sec. 10, 92 Stat.
2951 (42 U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Section 40.46 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section 40.71 also issued under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); SS 40.3, 40.25(d)(1)-(3), 40.35(a-(d), 40.41(b) and (c), 40.46, 40.51(a) and (c); and 40.63 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(b)); and SS 40.25(c) and (d)(3) and (4),
40.26(c)(2), 40.35(e), 40.42, 40.61, 40.62, 40.64 and 40.65 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
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- 4. Section 40.41 is amended by adding a new paragraph (f) to read as follows:
$ 40.41 Terms and conditions of licenses.
a a a
- a (f)(1) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapters of Title 11 (Bankruptcy) of the United States Code by or against:
(i) [A] The licensee; (ii) An entity (as that term is defined in 11 U.S.C. $ 101(14))
controlling [a] the licensee or listing the license or licensee as property
"'- - - of the estate; or x (iii) An affiliate (as that term is defined in 11 U.S.C. S 101(2))
of the licensee.
(2) This notification must indicate:
(i) The bankruptcy court in which the petition for bankruptcy was filed; and (ii) 'The date of the filing of the petit. ion.
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PART 50 - DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION FACILITIES i
- 5. The authority citation for Part 50 is revised to read as 9
follows:
AUTHORITY: Sec s , 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 Stat. 936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat.1244,asamended(42U.S.C.2132,2133,2134,'2135,22dl,2232, 09/03/86 15 Enclosure A O
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2233, 2236, 2239); secs. 201, as amended, 202, 206, 88 Stat. 1242, as amended 1244, 1246 (42 U.S.C. 5841, 5842, 5846). j Section 50.7 also issued under Pub. L.95-601, sec.10, 92 Stat. i 2951 (42 U.S.C. 5851). Section 50.10 also issued under secs. 101, 185, 68 Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.23, 50.35, 50.55, Sec-50.56 a.lso issued under sec. 185, 68 Stat. 955 (42 U.S.C. 2235).
tions 50.33a, 50.55a, and Appendix Q also issued under sec. 102, Pub. L.91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.34, and i
50.54 also issued under sec. 204, 88 Stat,1245 (42 U.S.C. 5844).
i Sections 50.58, 50.91, and 50.92 also issued under Pub. L.97-415, 96 Stat. 2073 (42 U.S.C. 2133, 2239). Section 50.78 also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Sictions 50.80-50-81 also issued under sec.184, 68 Stat. 954, as amended (42 U.S.C. 2234). Section
- 50.103 also issued under sec.108, 68 Stat. 939, as amended (42 U.S.C.
2138). Appendix F also issued under sec. 187, 68 Stat. 955 (42 U.S.C.
2237).
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
l 2273); SS 50.10(a), (b), and (c), 50.44, 50.46, 50.48, 50.54, and 50.80(a) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C.
2201(b)); SS 50.10(b) and (c) and 50.54 are issued under sec.161i, 68 Stat. 949, as amended (42 U.S.C. 2201(i)); and $$ SC.55(e), 50.59(b),
50.70, 50.71, 50.72, and 50.78 are issued under sec.161o, 68 Stat. 950, as amended (42 U.S.C. 2201(o)).
- 6. Section 50.54 is amended by adding a new paragraph (cc) to read as follows: .
I 16 Enclosure A l 09/03/86
~
2 *[ [7590-01]
For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.
2273); Tables 1 and 2, $$ 61.3, 61.24, 61.25, 61.27(a), 61.41 through 61.43, 61.52, 61.53, 61.55,'61.56, and 61.61 through 61.63 issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 2201(:.; $$61.10 through 61.16, 61.24, and 61.80 issued under sec. 1610, 68 5 at. 950, as amended (42 U.S.C. 2201(o)).
- 8. Section 61.24 is amended by adding a new pa agraph (k) to read as follows:
$ 61.24 Conditions of licenses.
- A A ,A (k)(1) Each licensee shall notify the appropriz e NRC Regional Administrator, in writing, immediately following the filing of a volun-x tary or involuntary petition for bankruptcy under an,. Chapters of Title 11 (Bankruptcy) of the United States Code by or against:
(i) [A] The licensee; i (ii) An entity (as that term is defined in 11 U.S.C. $ 101(14))
controlling [a] the licensee or listing the license c- licensee as property of the estate; or (iii) An affiliate (as that term is defined in 1". U.S.C. IS 101(2))
of the licensee.
(2) This notification must indicate:
(i) The bankruptcy court in which the petitior 'or b:nkruptcy was filed; and (ii) The date of the filing of the petition.
~
\
l 18 Enclosure A 09/03/86 h 1* __m ,, . - g
)-, -
[7590-01]
PART 70 - DOMESTIC LICENSIN; 0F SPECIAL NUCLEAR MATERIAL
- 9. The authority citation for Part 70 continues to read as follows:
AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended, sec. 234, 83 Stat. 444, as amended, (42 U.S.C 2071, 2073, 22,01, 2232, 2233, 2282); secs. 201, as amended, 202, 204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).
Section 70.7 also issued under Pub. L.95-601, sec.10, 92 Stat.
2951 (42 U.S.C. 5851). Section 70.11(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Sectio- 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 also issued under sec.184, 68 Stat. 954, as amended (42 U.S.C. 2234).
Section 70.61 also issued under secs. 186, 187, 68 Stat. 955 (42 U.S.C.
2236,2237). Section 70.62 also issued under sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).
For the purposes of sec. 223, i8 Stat. 958, as amended (42 U.S.C.
2273); SS 70.3, 70.19(c), 70.21(c), 70.22(a), (b), (d)-(k), 76.24(a) and (b), 70.32(a)(3), (5), (6), (d), an: (i), 70.36, 70.39(b) and (c), 70.41(a),
70.42(a) and (c), 70.56, 70.57(b), (c), and (d), 70.58(a)-(g)(3), and (h)-(j) are issued under sec.161b, 68 Stat. 948, as amended (42 U.S.C.
2201(b)); SS 70.7, 70.20a(a) and (c. , 70.20b(c) and (e), 70.21(c), 70.24(b),
70.32(a)(6), (c), (d), (e), and (g). 70.36,70.51(c)-(g),70.56,70.57(b) and (d), and 70.58 (a)-(g)(3) and (-)-(j) are issued under sec.161i, 68 Stat. 949, as amended (42 U.S.C. 22:1(i); and SS 70.20b(d) an'd (e), 70.38, 70.51(b) and (i), 70.52, 70.53, 70.f4, 70.55, 70.58(g)(4), (k), and (1),
09/03/86 19 Enclosure A
[7590-01]
70.59, and 70.60(b), and (c) are issued under sec. 1610, 68 Stat.'950, as amended (42 U.S.C. 2201(o)).
- 10. Section 70.32 is amended by adding a new paragraph (a)(9) to read as follows:
S 70.32 Conditions of licenses.
(a) Each license shall contain and be subject to the following conditions:
A A A A A (9)(i) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapters of Title 11 (Bankruptcy) of the United States Code by or against:
s (A) [A] The licensee; (B) An entity (as that term is defined in 11 U.S.C. S 101(14)) control-ling [a] the licensee or listing the license or licensee as property of the estate; or (C) An affiliate (as that term is defined in 11 U.S.C. S 101(2))
of the licensee.
(ii) This notification must indicate:
(A) The bankruptcy court in which the petition for bankruptcy was filed; and (B) The date of the filing of the petition.
A A A A 20 Enclosure A 09/03/86
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, [7590-01]
PART 72 - LICENSING REQUIREMENTS FOR THE STORAGE OF SPENT FUEL IN AN INDEPENDENT SPENT FUEL STORAGE INSTALLATION (ISFSI)
- 1. The authority citation for Part 72 is revised to read as follows:
AUTHORITY: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 184, 186, 187, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233, 2234, 2236, 2237, 2282); sec. 274, Pub. L.88-273,.73 Stat. 688, as amended (42 U.S.C. 2021); secs. 201, 202, 206, 88 Stat. 1242, 1243, 1246, as amended (42 U.S.C. 5841, 5842, 5846); Pub. L.95-601, sec. 10, 92 Stat.
2951(42U.S.C.5651);sec.102, Pub.b.91-190,83 Stat.853(42U.S.C.
4332).
Section 72.34 also issued under sec. 189, 68 Stat. 955 (42 U.S.C.
2239); sec. 134, Pub. L.97-425, 96 Stat. 2230 (42 U.S.C. 10154).
- 2. Section 72.33 is amended by adding a new paragraph (b)(6) to read as follows:
S 72.33 License conditions.
- a m (b) Every license issued under this Part shall be subject to the following conditions, even if they are not explicitly stated herein:
, a * * *
(6)(i) Each licensee shall notify the appropriate NRC Regional Administrator, in writing, immediately following the filing of a volun-tary or involuntary petition for bankruptcy under any Chapters of Title 11 (Bankruptcy) of the United States Code by or against:
09/03/86 21 Enclosure A
" 9 _
~*',' '.' [7590-01]
t.
1
. . .f s' (A) [A] The licensee; 1 a
- (B) An entity (as that term is defined in 11 U.S.C. S 101(14))
i controlling [a] the licensee or listing the license or licensee as property
[,j:
- l '.
c r,6 of the estate; or
,'h '. (C) An affiliate (as that term is defined in 11 U.S.C. S 101(2))
of the licensee.
(ii) This notification must indicate:
(A) The bankruptcy court in which the petition for bankruptcy was I filed; and (B) The date of the filing of the petition.
' s n n n n
?
_ Dated at Bethesda, Maryland this day of , 1986.
j.. For the Nuclear Regulatory Commission.
s 5
Victor Stello, Jr.
Executive Director for Operations.
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> ;l 09/03/86 .- 22 ,
Enclosure A I & ,
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REGULATORY ANALYSIS NOTICE OF FINAL RULEMAKING AMENDMENTS TO 10 CFR PARTS 30, 40, 50 61, 70, and 72 BANKRUPTCY FILING; NOTIFICATION REQUIREMENTS
- 1. STATEMENT OF PROBLEM Current NRC regulations contain requirements for issuing of licenses and the terms and conditions of those licenses concerning the design of facilities and use of material. The problem addressed in this rulemaking is that a licen-see who is experiencing severe economic hardship may not be capable of carrying out licensed activities in a manner which protects public health and safety.
In particular, there can be problems when a licensee involved in bankruptcy pro-ceedings cannot make payments for the proper handling of licensed radioactive material and for the decontamination of the licensed facility in a safe manner.
Improper materials handling or decontamination activities can lead to the spread of contamination throughout a licensee's facility creating the potential for dispersion of contaminated material offsite. Financial difficulties also can
~
result in problems affecting the licensee's waste disposal activities.
Instances have occurred in which licensees filed for bankruptcy.and the NRC has not been aware that this has happened. Among those licensees whose financial situation has jeopardized cleanup are incitfed the J. C. Haynes Co.,
the Pesses Co., Luminous Processes, Inc. , and AU .'ed Technology, Inc. NRC inspectors have found, belatedly, that a licer.x,7 b vacated property and abandoned licensed material or that a licensee has been unable to decontaminate his facility and properly dispose of the waste.
There is no current regulatio'n requiring that licensees notify the NRC in cases of bankruptcy filing. Hence, the NRC hcs no means by which it can be made aware of these situations. This action of promulgating a fin 1 rule con-sists of amendments to 10 CFR Parts 30, 40, 50, 61, 70, and 72 which require 07/30/86 1 Enclosure B
- - - _ - . . - . _ _ - _ _ O_.
e
- licensees to notify the NRC in the event of the commencement of bankruptcy pro-ceedings involving the licensee. There is some urgency to proceed with this effort due to the large number of NRC licensees (greater than 8000) and the fact that a number of bankruptcies which were not reported to NRC have already occurred. .
- 2. OBJECTIVE The objective of this action is that NRC have means in place so that it is alerted and can take necessary action to deal with potential hazards to the public health and safety that may be posed by a licensee that does not have the resources to properly secure his licensed material or to clean up possible contamination. ,
- 3. ALTERNATIVES The alternatives considered in determining the need for regulation in this area are as follows:
- 1. No Action
- 2. NUREG Report
- 3. Regulatory Guide, Branch Technical Position
~
- 4. Rulemaking One alternative is to take no action on this matter. However, current regulations 'in 10 CFR Parts 30, 40, 50, 61, 70, and 72 do not address the situation of the potential health and safety implications of bankruptcy. As noted in detail above this has caused problems in the past and will likely do so in the future.
NUREG reports are a convenient means for providing information. However, NUREG reports usually contain only results of specific studies and are not suitable in this situation. Regulatory Guides or Branch Technical Positions could also be used, however, as pointed cut above, there are no existing re-gulations on which to base any guidance. The lack of standards deve. loped from rulemaking in this . area might leave any guidance open to challenge.
2 Enclosure B 07/30/86 g
,. . . . s l
Rulemaking would provide clearly implementable requirements regarding I
licensees' responsibility to notify the NRC in the case of a filing of a pe-tition of bankruptcy. These rules would reduce uncertainty in this area and provide for prompt action by licensees in future situations of this type with the result that NRC can take necessary action to protect the public health and safety. A formal rulemaking also has the advantage of offering the best op-portunity to allow all affected parties to provide input on the development of the rules, as well as developing specific criteria with the weight of formal rulemaking behind them. This can be accomplished with a rulemaking that ap-pears, based on-the identified need, to be a relatively straightforward rule-making not involving significant resources. The proposed rule was issued by the ED0 and it is expected that the final rule would also.be issued by EDO.
An alternative form of the rulemaking would be.to combine it with related rulemaking. Currently, NRC has issued proposed rules on decommissioning of nuclear facilities and an advance notice of proposed rulemaking on financial assurance for cleanup following accidental releases. However, it would be impractical to combine these efforts because of the timing of the varying stages of these efforts and because of differences in the nature of the rule-makings. In addition, as noted above, this rulemaking addresses a specific topic and should be straightforward in its deve'lopment and issuance.
- 4. CONSEQUENCES 4.1 Benefits and Costs , 4.1.1 Benefits 1
i f@C The benefit of the rule to NRC is that it would have in place a specific requirement concerning notification of NRC that a licensee has filed a petition for bankruptcy. The rule will enable NRC to be aware of potential licensee problems in handling and disposing of radioactive materials due to severe finan-cial problems. This will provide a significant increase in NRC's inspection and enforcement capabilities in dealing with such situations thus assisting in 07/30/86 3 Enclosure B O - e,
a-
- - assuring that NRC's mission of protecting public health and safety is carried
' out by reducing the risk of radiation exposure to the public and workers.
Details of the risk reduction are discussed.below in this section under "Public." -
Industry Industry will benefit in.that in situations of this type prompt and clear NRC' actions can.take place regarding materials handling and disposal. In addition the rulemaking process provides industry with an input to the decision-making regarding the issue of notification of NRC regarding bankruptcy.
Public The benefit to the public will be a reduced risk of potential radiation exposures resulting from improper handling or disposal of radioactive wastes or facility decontamination due to the improved capability of NRC to react in a timely way to potential severe financial problems to protect public health and i safety. This reduction in risk would apply to both the general public and workers who might be involved at the facility. In instances which have occurred NRC inspectors have found substantial amounts of radioactive contamination pre-sent at the site, such as significant quantities of Am-241, (References 1 and 2), and large volumes of contaminated material equivalent to approximately 300
. drums (Reference 2).
Based on these inspections, NRC has issued enforcement' orders published in the l
Federal Register (Reference 1, 2) indicating that there was potential for dis-persal of contaminated material, that there was no reasonable assurance that sufficient measures were in place to prevent unauthorized transfer of licensed &
materials to unauthorized individuals or prevent the access of individuals to contaminated areas and that there was not adequate assurance that the facilities
! could remain in their existing conditions without undue risk to the public health and safety.
t Even with this rule there may still be contamination at the sites, however NRC's timely involvement in the situations as a result of this rule will reduce the
! Enclosure B 4
l 07/30/86 l-
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_ . . _ ,. _. , _ . .__._,,n.._,__,.,__.__..___,._. . . _ _ _ _
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1 risk of dispersal of materials and/or exposure of individuals signi'icantly reducing the risk to both the public and workers. The absence of this rule can result in an increased risk because there would be greater potential for the dispersal of material or exposure of individuals as a result of situations similar to those identified in References 1 and 2.
Potential risk reduction for situations such as these can be estimated based on data in reports prepared for NRC by Pacific Northwest Laboratory (PNL) on the technology, safety and costs of decommissioning for various nuclear facilities. In particular, a report prepared by PNL on decommissioning non-fuel-cycle nuclear facilities, NUREG/CR-1754 (Reference 4), includes information
~
on contamination levels and radiation exposures. As indicated in Section 1 of this Regulatory Analysis, instances have occurred in which licensees have aban- '
doned facilities and licensed material, and as' discussed above this can result in potential problems with access of unauthorized individuals to contaminated areas. NUREG/CF-1754 indicates that persons present in non-fuel-cycle facilities can be exposed to radiation resulting in dose rates of approximately 0.1 rem / hour.
It is assumed in this estimate that 3 unauthorized persons gain access to the facility for parts of 3 days during the period before NRC has become aware of the bankruptcy, resulting in exposure to the public of 5 man-rem. An additional consideration is that spread of contaminated material in the facility, as might occur if unauthorized persons gain access, could also increase occupational exposures involved in cleanup of the facility. NUREG/CR-1754 indicates that occupational exposure for decontamination and cleanup of a small non-fuel-cycle facility can be 40 man-rem. Larger non-fuel-cycle facilities can be,on the order of 100 man-rem. The estimates are based on the facility having been run in a normal manner and efficient decommissioning occurring promptly following termination of license. As discussed above, this may not be the case for the situations of a bankrupt licensee where References 1 and 2 indicate potential for spread of contaminated material. Hence it is assumed in this estimate that, as a result of increased potential for spread of contaminated material in these situations, that the occupational exposure involved in the ultir..ite cleanup increases by a factor of 2 resulting in exposures of 80 man-rem for a small facility and 200 man-rem for a large facility. It is assumed that the increases I in public and occupational exposures occur at only one facility which files for bankruptcy in a year. Hence, as a result of this rule being in effect and NRC 5 Enclosure B 17/30/86 l
- . . . . ~- . . . . - . . -
- P , .- , j -
receiving prompt notification of a licensee's filing for bankruptcy, it is
' - estimated that there could be a risk reduction of 45 man-rem and possibly 105 man-rem for a large facility.
~
4.1.2 ' Costs NRC.
1 In implementation of a final rule, no NRC' activity is necessary unless and until a licensee submits a notification to the NRC. The amount of time-spent on actually reading and docketing of the notification would be minimal. It is estimated that approximately 0.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> of NRC time would be expended in this Thus, effort and that approximately five notices would be submitted per year.
the total NRC handling and processing time would be 2.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> per year. At 560 per hour, the total cost to the Government would be $150.
? e.' -. ~ . .
There_may be staff resources involved in taking action in response to.this notification, however even in the absence of this rule, NRC would still have to i
. react to any health and . safety problems brought about by bankruptcy, hence, J-In fact, as noted this rule would cause no added cost following the docketing.
above, a major benefit of this rule is that it would put NRC in a better reac-In past instances when licensees went bank-tive mode _and reduce time involved.
rupt NRC has had to expend significant resources in dealing with the problem.
This has included issuance of orders to clean up facilities and modify licenses, j issuance of Federal Register notices, repeated inspection visits, continued headquarters and regional staff involvement in the cases, participation in the l
cleanup of the facilities,.providing of health physics coverage, and taking f'
possession of nuclear material. Some of these activities will still likely have to occur even.if this rule is promulgated, however the benefit of this j
rule is that prompt identification of these situations can result in reduction in NRC resources involved in activities such as enforcement actions and meetings In addition, the absence with a concerned public regarding contaminated sites.
of this rule would leave NRC in a less advantageous position to respond to these 7
situations and could result in increased time spent resolving these problems.
T l
6 Enclosure B 08/06/86 e'
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Based on the large number of activities which NRC may be involved with in these situations as enumerated here, the reduction in staff time as a result of having received the notification will be significantly greater than the time spent in reading and docketing the notification. In estimating the reduction in staff time, it is assumed that one less trip to the site would be necessary, resulting in a savings of one man-day. It is also estimated that because a better assessment of the situation has been made promptly, that one less man-day of work is necessary for carrying out the needed activities. It is estimated that these savings result in half of the bar.kruptcy situations which occur.
Thus, using the assumptions above of the number of submittals, the total reduc-tion in NRC staff time is 5 man-days per year or 40 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br />. At 560 per hour, the total savings to the Government is 52400 per year. This overshadows the increase in cost of 5150 indicated above and results in a net reduction in staff resources of 52250 per year.
Industry ,
With regard to the impact of a final rule, there is no action required of a licensee unless and until bankruptcy petition is filed. Hence, there is no impact from this rule unless bankruptcy filing occurs. Even in the event of bankruptcy, the impact of this rule on licensees is small because the United States Code contains requirements regarding notification of creditors of bank-ruptcy. The requirements imposed by this rule consist of one additional notif-ication. The required action consists of a notification by mail to the NRC representing less than one-half person-hour of effort. This estimate,is based on the time it would reasonably take to prepare the notification listing the location and date of the bankruptcy filing and submittal of the notification to the NRC regional office. Based on this amount of effort and using the same assumptions as above regarding the number of submittals, the total time spent by industry in submitting notifications to the NRC would be 2.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> per year.
AT 560 per hour the total annual industry cost would be 5150 which is a negligible overall added cost to the industry.
4 4
7 Enclosure B 07/30/86 l
e
t Public This rule should result in a potential reduction in cost to the public since in the absence of this rule the cost of cleanup of the facility may have to be paid from public funds if the licensee is bankrupt. Costs of decontamina-tion and decommissioning of small facilities that have been discussed earlier can range from $100,000 up to several million (References 2, 3). Costs of larger facilities would be higher. (Reference 4-6) In some past instances states have had to pay for the cleanup of contaminated facilities. As discussed earlier, certain cleanup activities and their associated costs will still likely occur even if this rule is promulgated. However this rule can result in reduction in cost to the public in two ways. The first way is that NRC's timely involvement will minimize.the potential for spread of contamination which would result in
~
higher costs so that even if the public does ultimately pay for cleanup at a site whose licensee is bankrupt, the costs will not increase substantially above the normal situation. The second way is that NRC's timely involvement in bank-ruptcy proceedings may result in some of the available assets of the licensee being applied to cover costs of site cleanup before funds are disbursed in the proceedings and become unavailable for cleanup.
~
Based on the magnitude of costs involved as noted above, the amount of reduction in cost which can result from this rule is far in excess of the cost of this rule to the industry or the public. In estimating the potential reduc-tion in cost to the public, it is assumed that as a result of increased risk of spread of contamination the cost of cleanup increases by a factor of .two, result-
.ing in cost of cleanup of S200,000 for a small facility. It is also assumed that by being notified of the bankruptcy, NRC efforts in bankruptcy court result in 10% of the costs of cleanup being paid for from remaining licensee assets, or about 510,000. It is assumed that both of these effects occur at only one facility which files for bankruptcy in a year. Hence, as a result of this rule being in effect and NRC receiving prompt notification of a licensee's filing for bankruptcy, it is estimated that there would be a savings to the public of 5110,000 for a small facility.
8 Enclosure B 07/30/86 6
, , . _ . . , _ ~ _ , - - . . , , . - - . , + .
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4.2 Impacts on Other Requirements This action is related to proposed amendments to 10 CFR Parts 30, 40, 50, 70, and 72 on decommissioning funding and to existing requirements in 10 CFR 61 on funding of the closure of low-level waste burial sites. There is no impact on these items. Rulemaking is in progress to amend 10 CFR 50.4 regardin'g com-munications with NRC. The action being taken here will conform with final action on 10 CFR 50.4.
- 5. BACKFIT ANALYSIS FOR POWER REACTORS 5.1 Backfit Analysis Factors 10 CFR 50.109 (50 FR 38097) requires that an analysis be performed for backfits which the Commission seeks to impose on power reactor licensees. This rule requiring notification of bankruptcy has been analyzed based on the factors listed in 10 CFR 50.109(c) as follows:
(1) The objective of the amendments is for NRC to have means in place so that it would be alerted and would have the opportunity to take necessary action to deal with potential hazards to the public health and safety that may occur at a facility where a licensee is involved in bankruptcy proceedings. Although the likelihood of utility bankruptcy is. small and in most instances NRC would be aware of it occurring, there is a potential that NRC may not be aware of a particular bankruptcy situation involving a licensee. ,
(2) The amendments require a licensee to notify the appropriate regional office of the NRC, in writing, in the event of the commencement of a bankruptcy
. proceeding involving the licensee. A licensee would not be affected by these amendments unless and until a bankruptcy petition is filed.
(3) The amendments improve NRC's inspection and enforcement capabilities in dealing promptly with the potential radiological consequences of a licensee's severe financial problems thus providing a benefit in protection of the public health and safety.,In addition, although the level of risk to the public is small, NRC's timely involvement can result in some potential reduction in the 9 Enclosure B 07/30/86 d
D
=)
risk of radiation exposure by reducing the likelihood that is-
. proper. radioactive waste handling or decontamination will occur at a facility *
^
where a licensee is involved in bankruptcy proceedings. ,
(4) In a manner similar to that described in (3) above, although it would
'be small, the_ amendments result in some reduction in risk of radiological expo-sure of facility employees by reducing the potential for spread of contamination in the facility and resultant occupational exposure.
-(5) The amendments impose requirements for administrative procedure action only, hence there is no equipment installation cost, no facility downtime cost, and no cost of construction delay. As indicated in (2), there is no action re-quired of a licensee'unless and until a bankruptcy petition is filed and hence there is no continuing cost associated with the backfit. Even in the event of t
l bankruptcy the cost impact of this rule is negligible because the action requi, red, namely a notice listing the . location and date of the bankruptcy filing mailed to the NRC regional office, is minimal. As noted in (3) and (4) above, timely involvement of NRC in the situation can minimize potential for spread of conta-mination in the facility and therefore also minimize added cleanup costs which could then occur. This reduction in cost can be substantial compared to the small cost associated with the notification, re'sulting in net savings.
The amendments are administrative and hence have no safety impact of (6) changing plant or operational complexity.
(7) With regard to the resource burden on the NRC, no NRC activity is l If a l
necessary unless and until a licensee submits a notification to the NRC.
j.
notice were submitted, the amount of time spent on actually reading and docket-ing of the notification would be minimal. By alerting NRC to the situation, l
' this rule would put NRC in a better reactive mode and thereby could reduce NRC staff time involved in activities such as necessary enforcement actions and This reduc-meetings with a concerned public regarding a contaminated facility.
tion in staff time could be significantly greater than that spent in reading and docketing the notification, thus resulting in a net reduction in staff resources.
i 10 Enclosure B l 07/30/86 mo m
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, , -k (8) The amendments apply to all power reactor licensees independent of facility type, design, and age.
(9) When the proposed amendment is made effective, it will be a final action.
5.2 Backfit Analysis Determination Based on the analysis of the factors as presented in Section 5.1, the Com-mission has determined that this rule does not meet the backfitting requirements of 10 CFR 50.109(a)(3) namely that there be a substantial increase in overall protection of public health and safety. However, the rule is not intended to provide a substantial increase in overall protection but is considered justifi-able and warranted to prevent a decrease in th level of protection considered available under current regulations. In addition, the rule is considered to save resources in bankruptcy circumstances. The Commission is promulgating the rule for the following reasons: (1) there is some, albeit small, potential for reduction in public and occupational exposure; (2) the action required by this rule is administrative, resulting in no installation, downtime, or construction costs and no effect on plant or operational complexity; (3) the burden on indus-try and NRC is minimal, and in fact this action would probably result in a net reduction in NRC resource expenditures; and (4) this action is justified for non power reactor and materials facilities based on an assessment of the costs and benefits in the Regulatory Analysis (Section 6.0), and imposing it for re-actor plants also provides for consistency in the regulations. .
- 6. DECISION RATIONALE Section 5 presented the rationale for the implementation of these require-ments for power reactors. Section 6 presents the decision rationale for imple-I mentation of the requirements of the amendments for facilities other than power reactors.
This action will specify procedures for licensee notification of the NRC in cases of filing for bankruptcy. This is necessary so that the NRC is aware l '
11 Enclosure B f 08/06/86
~ -.
- e of severe licensee economic conditions that can impact on the licensee's cap-ability to handle radioactive materials and decontaminate the facility and so that NRC can take timely and appropriate action to protect the public health and safety.
The value of this action is that it can result in benefits in risk reduc-tion. As discussed in Section 4, these risk reductions come about from the increased effectiveness of NRC's inspection and enforcement capabilities and, in addition, from the estimated reduction in dose to the public of 45 to 105 man-rem. Also as discussed in Section 4, the impact of implementation of the rule is estimated to be a net savings to the Federal government of $2250 and a net savings to the industry and public of approximately $100,000.
Based on a comparison of the value and impacts, this action of promulgating a final rule is recommended.
A ' ' ' 7. IMPLEMENTATION &
(a) Schedule The proposed rule was issued on June 20, 1986 and the public comment period ended July 21, 1986. Comments were received from the public and analyzed. In preparation of the final rule, no time is scheduled for CRGR meeting review because this rulemaking has no impact on plant systems, opera-tion, or design and its net impact is negligible. A memorandum to this effect has been sent to the chairman of CRGR. With these provisions it is anticipated that the final rule can be prepared on schedule.
As discussed earlier there is no action required of a licensee unless and until a bankruptcy petition is filed. Hence there is no impact from this final rule on licensees' plant operating schedules or design or equipment procurement schedules.
(b) Relationship to Other Schedules No effect on other schedules in anticipated.
08/06/86 12 Enclosure 8 4
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References
- 1. 50 FR 14474, 4/12/85
- 2. 51 FR 3730, 1/29/86
- 3. 50 FR 5600, 2/11/85
- 4. E.S. Murphy,. Technology, Safety, and Costs of Decommissioning Reference Non-Fuel-Cycle Nuclear Facilities, NUREG/CR-1754, Prepared by Pacific Northwest Laboratory for the U.jgg{uclear Regulatory Commission, February, 1981.
- 5. H.R. Elder and D.E. Blahnik, Technology, Safety, and Costs of Decommis-sioning a Reference Uranium Fuel Fabrication Plant, NUREG/CR-1266, Pacific Northwest Laboratory for the U.S. Nuclear Regulatory Commission, October 1980.
- 6. H.R. Elder, Technology, Safety, and Costs of Decommissioning a Reference Uranium Hexaflouride' Conversion Plant, NUREG/CR-1757, Prepared by Pacific Northwest Laboratory for the U.S. Nuclear Regulatory Commission, October 1981.
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, 07/30/86 13 Enclosure 8
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