[Federal Register Volume 59, Number 135 (Friday, July 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17206]


[[Page Unknown]]

[Federal Register: July 15, 1994]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

10 CFR Parts 2, 30, 40, 70, and 72

RIN 3150-AD85

 

Timeliness in Decommissioning of Materials Facilities

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its 
regulations to require timely decontamination and decommissioning by 
nuclear material licensees. These amendments establish specific time 
periods for decommissioning unused portions of operating nuclear 
materials facilities and for decommissioning the entire site upon 
termination of operations. The rule is intended to reduce the potential 
risk to public health and the environment from radioactive material 
remaining for long periods of time at such facilities after licensed 
activities have ceased.

EFFECTIVE DATE: August 15, 1994.

FOR FURTHER INFORMATION CONTACT: Mary L. Thomas, Office of Nuclear 
Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 
20555, telephone (301) 415-6230.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background.
II. Need for a rule.
III. Summary of requirements and the resolution of comments on the 
requirements.
IV. Other issues.
V. Enforcement.
VI. Agreement state compatibility.
VII. Implementation.
VIII. Finding of no significant environmental impact: Availability.
IX. Paperwork reduction act statement.
X. Regulatory analysis.
XI. Regulatory flexibility certification.
XII. Backfit analysis.

I. Background

    In 1990, the NRC implemented the Site Decommissioning Management 
Plan (SDMP) to identify and resolve issues associated with the timely 
cleanup of a number of sites where buildings, soil, and ground water 
are contaminated. The SDMP contaminated sites are symptomatic of the 
need for definitive NRC regulations that specify acceptable time 
periods for decommissioning nuclear material facilities when licensed 
activities have ceased.
    When decommissioning is delayed for long periods following 
cessation of operations, there is a risk that safety practices may 
become lax as key personnel relocate and management interest wanes. In 
addition, bankruptcy, corporate takeover, or other unforeseen changes 
in the company's financial status may complicate and perhaps further 
delay decommissioning.
    The NRC published a proposed rule addressing timeliness of 
decommissioning for public comment in the Federal Register on January 
13, 1993, (58 FR 4099). The public comment period for the proposed rule 
expired on March 29, 1993. The NRC is issuing this final rule to 
establish timeliness criteria for decommissioning nuclear materials 
facilities to avoid future problems resulting from delayed actions on 
the cleanup of contaminated inactive facilities and to avoid the 
occurrence of difficulties associated with a case-by-case approach to 
requiring timely decontamination and decommissioning.

II. Need for a Rule

    The lack of definitive criteria as to when licensees should 
commence and complete decommissioning their facilities has resulted in 
instances where the NRC has had to issue orders to establish schedules 
for timely decommissioning. Because timeliness in decommissioning is a 
generic issue, the NRC is amending its regulations to clearly delineate 
the licensee's responsibility for timely decommissioning.
    In developing details of these requirements, the NRC considered 
whether to impose them on all licensees, or to limit the requirements 
only to those licensees who, because of the size of their operations, 
had greater potential for needing significant cleanup before their 
sites could be fully decommissioned; i.e., those licensees covered by 
the financial assurance requirements for decommissioning in 10 CFR 
30.35, 40.36, 70.25, and 72.30. Because the regulatory problems in 
delaying decommissioning apply to all licensees, regardless of size, 
the NRC has determined that the provisions of the rule should apply to 
all 10 CFR Parts 30, 40, 70, and 72 licensees.
    Under existing regulations in, Sec. 72.42(b), ISFSI and MRS 
licensees are required to file applications for renewal of their 
licenses at least 2 years prior to expiration of the existing license. 
This final rule requires licensees to notify the NRC (at least 2 years 
prior to license expiration) if an application for renewal will not be 
filed. The notification requirement, coupled with the 12-month time 
period for preparation of the final decommissioning plan, is equivalent 
to the current requirement in Sec. 72.54(a) for submittal of a plan 1 
year before expiration of the license. This requirement also has the 
effect of clearly documenting the licensee's decision on the future of 
the site 2 years before license termination.
    This final rule does not define radiological criteria for release 
for unrestricted use, but states that licenses will be terminated in 
accordance with NRC requirements. The NRC is in the process of 
establishing these levels in an enhanced participatory rulemaking that 
will be noticed in the Federal Register. Pending promulgation of the 
new radiological criteria, licensees are expected to comply with 
current criteria and practices as described in the NRC Action Plan 
Ensuring Timely Decommissioning of SDMP Sites (57 FR 13389; April 16, 
1992). Further information on acceptable criteria may be obtained 
through the NRC regional or headquarters offices. Once the radiological 
criteria are finalized, licenses would be terminated in accordance with 
those criteria.
    The final rule also clarifies requirements for radiological surveys 
performed as part of the license termination process. This rule 
clarifies that licensees need only submit the final survey showing that 
the site or area is suitable for release in accordance with NRC 
requirements after decommissioning has been completed. Some licensees 
have questioned whether existing requirements may be construed to 
require two surveys. In order to adequately review and approve a 
decommissioning plan the NRC must be aware of the conditions at the 
site. Therefore, a new item was included in the proposed rule that 
added to the contents of a proposed decommissioning plan a description 
of the conditions of the site or separate building or outdoor area 
sufficient to evaluate the acceptability of the plan. This description 
may be a preliminary radiation survey or other type of documentation 
which characterizes the conditions of the site. No comments were 
received on this item in the proposed rule.

III. Summary of Requirements and Discussion of Comments

    Seventeen comment letters were received on the proposed rule. Nine 
letters were received from licensees, three from public interest 
groups, four from industry organizations, and one from a State 
government. All of the comments were considered with respect to 
possible revision of the proposed rule. This discussion summarizes the 
major requirements in the regulation by section and discusses the 
significant issues raised by public comment and how they were resolved. 
The bases and origins of the requirements are also explained. Copies of 
the public comments received on the proposed rule are available for 
inspection and copying for a fee at the NRC Public Document Room, 2120 
L Street, N.W. (Lower Level), Washington, D.C. 20036.

Sections 30.4, 40.4, 70.4, and 72.3--Definitions

    These sections define terms that are used in the amended Parts 30, 
40, 70 and 72. Of particular relevance to this rulemaking is the 
definition of principal activities. The final rule defines principal 
activities as those activities that are essential to achieving the 
purpose for which the license was issued or amended. Principal 
activities are commonly listed or described in the license under the 
Authorized Use heading. Principal activities are defined in the 
regulation to prevent licensees from avoiding end-of-use 
decommissioning. For example, a licensee could not store licensed 
radioactive material in an otherwise unused building to avoid end-of-
use decommissioning. Storage of licensed material is not a principal 
activity unless it is specifically authorized for waste (such as 
greater than class C) that cannot currently be accepted at available 
disposal facilities, or it is the primary purpose for which the license 
was issued (such as, spent fuel storage in an ISFSI).
    Some commenters suggested that definitions for the terms ``uranium 
recovery facility'' and ``characterization of the site'' be added to 
the proposed rule. The NRC did not adopt these suggestions with this 
rulemaking. First, the term ``uranium recovery facility'' does not 
appear in this rule; hence no definition is needed. Second, whether 
there is a need to define ``site characterization'' is better 
determined by the nature of the criteria for decommissioning and will 
be addressed upon completion of that rulemaking.

Sections 30.36(a)-(c), 40.42 (a)-(c), 70.38(a)-(c) and 72.54(a)-(c)

    These sections of the regulations address license termination, 
expiration, revocation, denial of renewal, and their relationship to 
each other. A license ``expires'' when: (1) the expiration date stated 
in the license is reached [unless the licensee has appropriately filed 
for renewal], (2) the NRC revokes the license, or (3) the NRC formally 
denies an application to renew the license. ``Expiration'' of a 
license, whether voluntary or involuntary, refers to the end of a 
licensee's authorization to perform activities licensed under the 
Atomic Energy Act of 1954, as amended, with the exception of a 
licensee's continuing authorization to perform licensed activities 
incident to and necessary for site decontamination and decommissioning. 
Licensees with expired licenses must then decommission pursuant to the 
time limits and other requirements stated in the regulations. The final 
rule makes clear that the decommissioning and timeliness criteria apply 
to all licensees for whom the authorization to perform licensed 
activities has expired, regardless of whether the expiration was 
voluntary or involuntary. When the NRC has determined that 
decommissioning has been completed in a satisfactory manner, the NRC 
will relieve the licensee of license obligations by terminating the 
license. All licenses remain in effect until formally terminated by the 
NRC. One commenter suggested revising the language to clarify that 
licensees were not required to control access to areas within their 
facility once they are decontaminated. The language in the final rule 
was revised to state that licensees were required to control access to 
restricted areas until they were suitable for release in accordance 
with NRC requirements.

Sections 30.36(d), 40.42(d), 70.38(d), and 72.54(d)--Submittal of 
Decommissioning Plan (if Required) Within 12 Months of Notification

    The final rule establishes specific requirements for: (1) timely 
decommissioning of the entire site at the end of all licensed activity 
at the site, thereby allowing license termination and release of the 
site in accordance with NRC requirements (i.e., ``end-of-license'' 
decommissioning); and (2) timely decommissioning of separate buildings 
and outdoor areas where licensed activities have ceased while licensed 
activities continue to be conducted at other site locations (i.e., 
``end-of-use'' decommissioning). Licenses will be amended to exclude 
decommissioned buildings or outdoor areas as authorized places of use 
following satisfactory completion of end-of-use decommissioning.
    The final rule requires licensees to submit notification of the 
existence of inactive buildings or outdoor areas but does not require 
them to provide notification of the existence of inactive parts of 
buildings, such as rooms or laboratories. To include parts of buildings 
in the regulation was seen as a cumbersome regulatory requirement both 
for licensees and the NRC without sufficient resultant benefit. In 
addition to notification, licensees will be required to initiate 
decommissioning, or submit a decommissioning plan for NRC approval 
within 12 months of the notification.
    A commenter noted that the 12-month period allowed by the proposed 
rule for submittal of a decommissioning plan fails to recognize the 
scope of work necessary to characterize a site prior to preparing a 
plan. This commenter suggested that consistent with other licensing 
actions, scheduling commitments should be developed on a site-specific 
basis. A second commenter also felt that the 12-month period was 
unrealistic because of the need to obtain other agency approvals and 
those agencies are not subject to NRC schedules or under the licensee's 
control. This commenter suggested that, rather than requiring that a 
decommissioning plan be submitted within 12 months, the rule should 
require submission of a proposed schedule taking into account the 
requirements of other affected regulatory bodies.
    The NRC did not extend the 12-month period for submittal of a 
decommissioning plan. The NRC notes that flexibility has been included 
in the final rule. The NRC may approve alternate schedules as indicated 
in Secs. 30.36(f)(2), 40.42(f)(2), 70.38(f)(2) and 72.52(e)(2). The 
final rule requires the decommissioning plan to be submitted within 12 
months from:
    (1) The notification of license expiration,
    (2) A decision by the licensee to permanently cease ``principal 
activities,'' or
    (3) When there are no ``principal activities'' for 24 months.

Sections 30.36(d) (2), (3), and (4), 40.42(d) (2), (3), and (4), 70.38 
(d) (2), (3), and (4), 72.54(d) (2) and (3)--Notification of Inactivity 
for 24 Months and Begin Decommissioning or Submit Plan, as Appropriate.

    Sixteen of the 17 commenters foresaw major difficulties with having 
to begin decommissioning within 24 months of inactivity. They stated 
that it may not be in the licensee's best interest to decommission 
unattached buildings because of the additional manpower involved and 
that future business that would require use of the buildings may be 
unknown.
    The time required for completing decommissioning consists of the 
periods both for initiating the decommissioning process and for 
subsequently completing decommissioning activities. In determining the 
appropriate time period for initiating decommissioning, the NRC 
considered the health and safety benefits to be obtained by allowing 
short-lived isotopes to decay before beginning decommissioning 
operations and the licensee's need to make business decisions 
concerning future use of inactive buildings or outdoor areas. In 
determining the appropriate time period for the completion of 
subsequent decommissioning activities, the NRC considered the time 
needed to plan and safely carry out decommissioning operations based on 
previous experience.
    With regard to initiation of the decommissioning process, the 
background information developed for the rulemaking on general 
requirements for decommissioning (53 FR 24018; June 27, 1988) included 
an evaluation of decommissioning planning and preparation requirements 
for the wide variety of different sized operations licensed under 10 
CFR Parts 30, 40, and 70. The evaluation indicated that, in general, 
for materials license facilities, further benefits derived from 
radiological decay are not likely to be gained by delaying 
decommissioning beyond approximately 3 years from the date that 
operations cease. The NRC considers a period of approximately 24 months 
for making business decisions on further use of inactive facilities to 
be reasonable. This permits licensees sufficient time to make decisions 
concerning future use of an inactive facility, while accommodating 
periods of inactivity due to normal operations, testing, or routine 
business cycles.
    Based on the 24-month time period considered reasonable for making 
business decisions and considering that the incremental benefits due to 
radioactive decay between the second and third years of inactivity are 
small, the NRC considers a period of approximately 24 months to be a 
reasonable time period to permit a building or outdoor area to remain 
inactive without undergoing decommissioning. Therefore, the final rule 
stipulates that licensees must notify NRC if they have buildings or 
outdoor areas where no principal activities have been conducted for 24 
months. Notification is also required when the license has expired or 
when the licensee has decided to permanently cease principal activities 
and begin the formal process leading to license termination. The rule 
allows licensees 60 days to provide notification. The rule requires 
licensees that are not required to submit decommissioning plans to 
begin decommissioning within the 60-day period provided for 
notification unless the NRC has granted a delay or postponement. 
Licensees required to submit decommissioning plans will be required to 
submit final decommissioning plans within 12 months following 
notification to cease principal activities.
    Based on its analysis of the situation, the NRC arrived at a 24-
month period as being a reasonable time period for a facility, building 
or outside area to remain inactive without undergoing decommissioning. 
Licensees may file for exemption if they feel they will exceed the 24-
month inactivity period.

Sections 30.36(e) and (h), 40.42(e) and (h), 70.38(e) and (h), and 
72.54(e) and (j)--Submittal of Request to Delay Initiation of the 
Decommissioning Process and Submittal of Alternate Decommissioning 
Schedules.

    The NRC recognizes that licensees may not wish to decommission the 
site or separate buildings or outdoor areas when submitting the 
notification of inactivity for 24 months. Thus, the rule permits 
licensees to make a request and justify delay or postponement. 
Licensees will be required to submit the request with justification 30 
days prior to the time notification would have been required under 
paragraph (d). In practical terms, this means:
    (1) 30 days after the license expiration date,
    (2) 30 days following the decision to permanently cease principal 
activities at the site or in separate buildings or outdoor areas, or
    (3) 30 days following the end of the 24-month time period of 
inactivity for the site or in separate buildings or outdoor areas.
    Five commenters expressed opinions against the provision for 
granting an extension of time for submitting a decommissioning plan. A 
commenter recommended that an additional factor be included under 
paragraph (h), in each of the affected sections in the regulation as a 
reason to delay decommissioning--the future availability of emerging 
technologies which would enable more thorough or efficient 
decontamination. The NRC did not adopt this recommendation because this 
additional factor, as worded, appears to be too general to be used as a 
basis for delaying decommissioning. If some particular emerging 
technology could be identified which would offer more thorough or 
efficient decontamination on a definite time scale, it could form the 
basis of a request to the NRC by a licensee for a delay in beginning 
decommissioning.
    Some commenters expressed the opinion that 30 days is not enough 
time for the licensee to perform a proper analysis and prepare a 
meaningful submittal. They proposed allowing 90 days for submitting a 
schedule for preparation, submittal and review of a site 
characterization plan, site characterization report, and site 
decommissioning plan and elimination of the 30-day notice. The 
commenters appeared to misunderstand the purpose of the 30-day notice. 
The 30-day notice is not for a request to extend the time for submittal 
of a decommissioning plan but applies to a request and justification 
for postponement of the initiation of the decommissioning process. For 
those licensees required to submit decommissioning plans, the 
regulation allows licensees 12 months, not 30 days, to prepare the 
decommissioning plan.
    A commenter expressed concern with the provision which puts the 
decommissioning timetable ``on hold'' until the NRC makes a 
determination on the extension request. To make the NRC accountable, 
the commenter strongly urged that the NRC modify the rule to place a 
reasonable time limit on NRC determinations regarding extension 
requests (i.e., 30 days). The NRC did not adopt this comment because a 
30-day time period for evaluating a request for an extension of the 24-
month decommissioning period would be difficult to adhere to due to the 
complexity involved in evaluation of non-routine factors such as 
extensive ground-water contamination and because the NRC may have to 
request further information from the licensee.

Sections 30.36(e), 40.42(e), 70.38(e), and 72.54 (e)(1)--Inclusion of 
Specific Information to Support a Request to Delay or Postpone 
Initiation of Decommissioning

    Three commenters stated that the wording of the extension request 
provision failed to define specific standards to be met by a licensee 
or to describe how the NRC will evaluate requests. It was noted that 
the term ``otherwise in the public interest'' was not precisely defined 
and could be interpreted in a variety of ways. Two commenters noted 
that the rule states that the NRC may grant a request to delay or 
postpone decommissioning if NRC determines the relief ``is not 
detrimental to public health and safety and is otherwise in the public 
interest.'' In addition, these commenters felt that this section was 
unnecessary for uranium recovery licensees because the NRC already 
knows the safety status of the facilities through various periodic 
reports that must be submitted.
    The NRC did not adopt these suggestions. Sections 30.36(h), 
40.42(h), 70.38(h) and 72.54(j) of the final rule contain five criteria 
the NRC will evaluate in reaching a decision on the merits of the 
licensee's request. Guidance on techniques used by the staff to 
evaluate requests is typically provided in regulatory guides and other 
guidance documents. The NRC will issue additional guidance as necessary 
after the final rule is issued.

Sections 30.36 (e) and (h), 40.42 (e) and (h), 70.38 (e) and (h), and 
72.54 (e) and (j)--Public Participation

    One commenter suggested that the public would like to be given a 
role in evaluating the merits of requests for extensions of the 
decommissioning schedules. This commenter stated that the rule should 
provide for hearings for any variation in the rule conditions, 
including granting of an extension.
    In most cases, when an extension is granted the license would be 
amended. Since current NRC rules (Sec. 2.1205) provide individuals that 
could be affected the right to request a hearing whenever a license 
amendment is issued, there does not appear to be a need for any 
additional rule changes to accommodate this concern.

Sections 30.36(f)(4)(vi), 30.36(g), 30.36(h), 40.42(f)(4)(vi), 
40.42(g), 40.42(h), 70.38(f)(4)(vii), 70.38(g), 70.38(h), 72.54(i), and 
72.54(j)(1) and (2)--Decommissioning Period

    Six of the 17 comment letters on the proposed rule questioned the 
practicability of the 18-month period for the completion of 
decommissioning for various reasons. Several commenters felt that the 
18-month limit was premature because NRC has not yet established the 
acceptance criteria, which may affect cost and scheduling of 
decommissioning. Other commenters stated that most fuel facilities 
require significantly more time than 18 months and the rule should 
recognize this. A commenter expressed the view that the 18-month period 
should not apply to uranium recovery facilities because portions of the 
milling facility may need to remain under license for ground-water 
remediation and tailings closure. The commenter suggested modifying the 
rule to state that decommissioning would be completed as soon as 
practicable after a final decision to cease operations. This commenter 
also suggested extending the period for decommissioning to make 
scheduling more realistic for major materials licensees. In addition, 
this commenter suggested that the NRC request strict compatibility for 
Agreement States to preclude imposition of more restrictive standards 
than those imposed by NRC.
    The NRC has concluded that an 18-month period for completion of 
decommissioning may not be adequate for many major materials licensees. 
In response to the comments received, the NRC has decided to increase 
the time limit to complete decommissioning. This change is expected to 
have the effect of reducing the number of requests for extensions of 
the time period without having a significant impact on public health 
and safety. Following initiation of decommissioning activities, 
licensees would have a maximum of 24 months to complete 
decommissioning.
    The amended regulations permit licensees to request the NRC to 
consider extending the 24-month time limit for decommissioning. The NRC 
will consider site-specific factors on a case-by-case basis. Factors 
that the NRC may consider to be appropriate include:
    (1) Availability of waste disposal facilities;
    (2) Reductions in dose or waste volume due to radioactive decay;
    (3) Technical feasibility of decommissioning;
    (4) Regulatory requirements of other government agencies;
    (5) Lawsuits;
    (6) Ground-water treatment activities;
    (7) Monitored natural ground-water restoration; or
    (8) Other factors that could result in more environmental harm than 
deferred clean-up or that are beyond the control of the licensee.
    Based on these time periods the NRC estimates that licensees who 
are not required to submit decommissioning plans will complete their 
decommissioning activities in approximately 50 months or less after 
cessation of operations (i.e., 24 months of inactivity, 60 days for 
notification, and 24 months to complete decommissioning). Licensees who 
are required to submit decommissioning plans would be expected to 
complete their decommissioning activities in approximately 62 months or 
less (i.e., 24 months of inactivity, 60 days for notification, 12 
months to submit a decommissioning plan, and 24 months to complete 
decommissioning). NRC review and approval of decommissioning plans 
(estimated to be 6 months or less) will be in addition to the 62-month 
total.

Sections 30.36(f)(1) and (3), 40.42(f)(1) and (3), 70.38(f)(1) and 
(3)--Activities Permitted Prior to Approval of a Decommissioning Plan

    Three commenters stated that the rule should clearly specify what 
decontamination and decommissioning activities are permitted without 
approval of a decommissioning plan. They also stated that there should 
be specific wording that permits the licensee to proceed with certain 
activities pending approval of the plan. They believed that 
decommissioning activities covered under existing authorizations and 
procedures should be able to proceed pending approval of the plan. In 
addition, one commenter believed that those activities which would not 
increase health and safety impacts to workers and the public should be 
permitted pending approval of the plan. A commenter noted that license 
amendments could be considered for specific activities while the plan 
is under NRC review.
    The NRC did not adopt these suggestions because sufficient latitude 
currently exists for licensees to carry out decommissioning activities 
in the absence of an approved decommissioning plan provided the 
procedures used are approved under existing licensing conditions and do 
not increase the potential for health and safety impacts to workers or 
to the public or result in significantly greater release of radioactive 
material to the environment.

Sections 30.36(i), 40.42(i), 70.38(i), and 72.54(k)--Radiation Surveys

    The comments on this subject were concerned with radiation survey 
measurements and radiation units to be used. Three commenters 
questioned the practical value of the required measurement of beta/
gamma radiation levels at one centimeter from the surface. The 
commenters noted that this measurement was not included in NUREG/CR-
5849. Four commenters objected to the requirement in the proposed rule 
to use SI units. They believed that this proposal was in conflict with 
Part 20 and would be confusing to all concerned. Here again, the 
commenters suggested that the results of radiation measurement be 
specified elsewhere, such as in the rule dealing with residual 
radiation standards.
    The NRC has decided to delete the requirement for beta/gamma 
radiation levels at 1 centimeter from the surface since sufficient 
guidance exists in NUREG/CR-5849. The provision in the final rule that 
requires that radiation levels be reported in SI units reflects NRC 
policy on metrication which was published in the Federal Register on 
October 7, 1991 (57 FR 46202). In keeping with this policy, levels of 
gamma radiation will be expressed in units of millisieverts. The 
millisievert was chosen over Coulomb/kilogram to convert from Roentgen 
because expressing in units of absorbed dose allows easy conversion. 
The values only differ with respect to orders of magnitude. The staff 
notes that using absorbed dose to express levels gamma radiation is the 
approach adopted in Europe and will foster international consistency.

Sections 30.36(j)(2), 40.42(j)(2), 70.38(j)(2), and 72.54(l)(2)--Delay 
for Radiation Criteria Rule

    Five commenters expressed opposition to or concern with the NRC's 
plans to proceed with the timeliness in decommissioning rulemaking 
separate from and in advance of the EPR currently underway. The main 
points made by the commenters in support of either delaying the 
timeliness rulemaking or combining the two rulemakings were:
    (1) Proceeding with the timeliness rulemaking separately constrains 
the public's ability to influence the radiological-standards rulemaking 
and weakens the NRC's stated commitment to greater public 
participation;
    (2) The timeliness rulemaking is isolated from the enhanced public 
participation of the radiological-standards rulemaking;
    (3) It is inconsistent to define the length of time decommissioning 
will require when it is not known what the extent of decommissioning 
will be (the timeliness rulemaking is based on the premise of 
decommissioning for release in accordance with NRC requirements). The 
results of the radiological standards rulemaking may provide for 
alternative approaches to decommissioning, such as continual 
remediation or long-term monitoring, restricted use, and continued 
institutional care, perhaps through the transfer of the property to a 
governmental entity; and
    (4) Because decommissioning should be done correctly and is 
expensive, its scheduling and implementation should be accomplished 
with the benefit of final residual radiation criteria.
    The comments regarding the desirability of either delaying the 
timeliness in decommissioning rulemaking until the rulemaking on 
decommissioning criteria is completed or combining the two rulemakings 
have merit. Ideally, the two subjects could be addressed in a single 
rulemaking because of their strong interdependence. However, the NRC 
has determined that, pending promulgation of the new decommissioning 
criteria, adequate criteria exist to conduct decommissioning and are 
described in the NRC Action Plan Ensuring Timely Decommissioning of 
SDMP sites (57 FR 13389; April 16, 1992). Because having these new 
timeliness requirements in the regulations is expected to improve the 
NRC's ability to see that timely decommissioning is accomplished, the 
NRC did not adopt the commenters' suggestion. Adoption of the 
suggestions of the commenters on this point would result in either the 
continuation of the ``status quo'', i.e., establishment of time 
schedules for decommissioning on a case-by-case basis through license 
condition or order, or postponement of all decommissioning of materials 
facilities until the rulemaking on decommissioning criteria has been 
completed.

Section 70.38(f)(4)(vi)

    A commenter suggested deleting the requirements to submit updated 
descriptions of physical security plans and material control and 
accountability plans. This comment was not adopted because this 
information is likely to be different from the plans designed to cover 
routine operations. As noted in the comment, the licensee may be in a 
position where the possession limit for special nuclear material can be 
reduced below the threshold for the plans, then the information would 
not be required in the decommissioning plan.
Viability of Uranium Recovery Industry
    Uranium recovery licensees consist of conventional mills, 
commercial, research and development in situ facilities, ore buying 
stations, and heap-leach facilities. These sites may contain processing 
facilities and waste disposal areas. All of the sites, other than the 
tailings impoundments and waste disposal areas, are to be 
decommissioned and released in accordance with NRC requirements under 
NRC's present regulations. The waste disposal areas are reclaimed and, 
when the specific license is terminated, they are licensed for long-
term care under the general license in Sec. 40.28.
    The current requirements for decommissioning and reclamation of 
these sites are contained primarily in Appendix A to 10 CFR Part 40. In 
particular, Criterion 9 of Appendix A requires that prior to 
commencement of operations, there must be a NRC-approved plan for:
    (1) Decontamination and decommissioning of mill buildings and the 
milling site to levels which allow unrestricted use of these areas upon 
decommissioning, and
    (2) The reclamation of tailings and/or waste disposal areas in 
accordance with technical criteria presented in Section I of Appendix 
A.
    Nonetheless, Sec. 40.42 applies to the uranium processing 
facilities. The effect of the final rule is to require the uranium 
recovery licensees to notify the NRC within 60 days when they have 
permanently ceased operations or have not conducted operations for 24 
months (Sec. 40.42(d)) and to submit an updated decommissioning plan 
within 12 months of this notification or license expiration. The 
provisions in the amended Sec. 40.42(g) on the content of a 
decommissioning plan are consistent with the decommissioning plan 
required in Criterion 9 of Appendix A to 10 CFR Part 40. The 
decommissioning plan submitted at the end of operations is intended to 
better describe the actual conditions of the site at that time.
    Some uranium recovery licensees may require additional time to 
conduct final decommissioning and site survey in order to support the 
reclamation of waste disposal areas. Section 40.42(k) provides for an 
exemption for the waste disposal areas at uranium recovery facilities.
    Disposal areas (as defined in Appendix A to 10 CFR Part 40) are 
reclaimed and ownership is eventually transferred to the Department of 
Energy. Criterion 6A of Appendix A to 10 CFR Part 40 and Subpart D of 
40 CFR Part 192 specifically require the submittal and approval of a 
timely reclamation plan. For these reasons, the provisions in the final 
rule in Sec. 40.42(f) for the content of a plan and Sec. 40.42(g) for 
the timing of completion of the plan do not apply to the reclamation of 
the waste disposal areas at uranium recovery facilities and thorium 
mills.
    To coordinate decommissioning of uranium recovery facilities and 
reclamation of disposal areas, the NRC may need to extend the date for 
completion of decommissioning including the final radiological survey 
until the reclamation of the disposal area has been completed. 
Typically, the reclamation of a disposal area may require several years 
of drying, several construction seasons, and a period of stability 
monitoring prior to the licensee proposing to terminate the license. 
Requests for delay in completion of the final aspects of 
decommissioning can be accommodated through the provisions in 
Sec. 40.42(h).
    The NRC recognizes the fluctuation that has occurred in the uranium 
industry. The amended regulation allows the NRC to extend the 24-month 
period of inactivity if the NRC determines, based on a request by the 
licensee, that this relief is not detrimental to the public health and 
safety and is otherwise in the public interest. Commenters stated that 
the proposed rule threatens future energy security of the United States 
by forcing decommissioning of uranium production facilities. According 
to the commenters, the proposed timetables failed to take into account 
site-specific circumstances, factors beyond the control of the 
licensee, and the problematic nature of the international marketplace. 
Two commenters stated that their suggestion of exempting uranium 
recovery facilities from the rule would allow the United States to 
maintain its domestic uranium producing industry rather than forcing 
its demise with every downturn in the market and thereby help limit 
U.S. dependence on foreign energy sources. They also stated that such 
an exemption would be consistent with NRC Chairman Selin's written 
testimony before the Senate Committee on Energy and Natural Resources 
during hearings on the then proposed National Energy Act on June 26, 
1992.
    What the commenters are referring to is not written testimony but 
NRC's June 26, 1992, comments to Congress on provisions of the proposed 
National Energy Policy Act of 1992 relating to mill tailings cleanup 
funding. The NRC is not exempting uranium recovery facilities from 
decommissioning. There is no policy justification for concluding that 
once a uranium recovery facility has ceased operations, decommissioning 
should not commence promptly. In fact, prompt decommissioning is 
consistent with this agency's mandate to protect public health and 
safety. Commenters have misconstrued the Commission's June 26, 1992, 
letter to Congress. In that letter, the Commission urged Congress to 
modify the legislation to provide that uranium mills could be eligible 
for reimbursements for some of their cleanup costs even if the mills 
were still operating in 2002. The legislation then pending provided 
that decommissioning of a mill had to be completed by the end of 2002 
in order to receive Federal funding. The legislation ultimately enacted 
included the modifications recommended by the NRC. Nowhere in NRC's 
correspondence did the Commission suggest that decommissioning be 
deferred once a facility has ceased operations. In addition, 
flexibility has been built into the final rule so that a licensee can 
file for an exemption from having to commence decommissioning following 
24 months of inactivity.

Inclusion of QA Plan in the Decommissioning Plan

    One commenter suggested that the content of the decommissioning 
plan be augmented to include a quality assurance program description, a 
description of the manner in which the characterization of the site was 
performed and assurance that the characterization was performed in 
accordance with a quality assurance program and implementing 
procedures. This commenter pointed out that the QA program is currently 
only discussed in Part 72. Because it is especially important to assure 
high quality data in conducting various tests (e.g., analysis of soil, 
water, air, contamination), requirements for QA programs should be 
added to the other sections as well.
    The NRC believes that the QA programs incorporated into existing 
licenses apply to decommissioning as well.

IV. Other Issues

10 CFR Part 2, Appendix C, Supplement VI--Enforcement

    Four commenters expressed disagreement with the enforcement policy 
stated in the Supplementary Information of the proposed rule. They 
believed that a Severity Level 3 enforcement category seemed harsh or 
excessive in view of the subjective and unpredictable character of many 
factors that will influence determinations and actions regarding 
decommissioning. They also noted that the one-level approach does not 
seem to recognize the wide range of situations or interpretations that 
could result in citations. They suggested that the enforcement policy 
be consistent with the complexities and uncertainties involved.
    This comment was not adopted because the NRC considers timely 
decommissioning of materials facilities an important regulatory issue. 
Thus, violations involving a failure to notify the NRC as required by 
regulation or license condition or to complete decommissioning 
activities in accordance with regulation or license condition normally 
will be classified at Severity Level III and will result in 
consideration of monetary civil penalties or other enforcement action 
as appropriate.

Environmental Assessment

    A commenter disagreed with the NRC Finding of No Significant 
Environmental Impact for the proposed rule and believed that it 
represented an inadequate consideration of potential environmental 
effects. The commenter noted that NRC has indicated its intention to 
prepare a GEIS for the residual radiological standards rulemaking and 
because the timeliness rulemaking has such a strong link to it that the 
timeliness rulemaking also logically requires a GEIS.
    As noted in the Supplementary Information with the proposed rule, 
the NRC staff prepared an Environmental Assessment which found that, if 
adopted, the proposed rule would not be a major Federal action 
significantly affecting the quality of the human environment, and 
therefore an environmental impact statement is not required. As 
discussed in the Environmental Assessment, the NRC had previously 
prepared a Generic Environmental Impact Statement on Decommissioning 
(GEIS). For licensees covered by this regulation, the GEIS found that 
either immediate decommissioning or short-term storage to allow short-
lived radionuclides to decay is the preferred decommissioning strategy. 
Delayed decommissioning for an extended period of time would only 
rarely be justified for these types of facilities. The GEIS concluded 
that the overall impact of decommissioning existing nuclear materials 
facilities is small. Because these regulatory changes specifically lean 
in the direction of the preferred decommissioning strategies, immediate 
decommissioning or short-term storage, it can be concluded that this 
rulemaking will have no adverse impact on the environment. A more 
detailed rationale is given in the environmental assessment published 
with the notice of proposed rulemaking on Timeliness in Decommissioning 
of Materials Facilities (58 FR 4099; January 13, 1993).

Economic Impacts

    Several commenters stated that the proposed rule represents gross 
interference with the licensee's right to operate a business within 
applicable regulations and within the framework of normal business and 
economic cycles. They believed that licensees must be given the option 
to ``wait out'' down-turns in the market by idling facilities and 
placing them under long term care and maintenance until operations can 
be profitably restarted. They believed that the proposed rule would 
deprive the licensees of the ability to obtain future financial return 
on investment.
    The NRC agrees that licensees should have flexibility with regard 
to business decisions, and this sensitivity resulted in specific 
provisions and exemptions to account for the special circumstances 
where the rule might work a hardship on a particular licensee. The NRC 
does not believe that further considerations are necessary.

License Fees

    A commenter suggested that the timeliness rule should recognize the 
diminished risk and regulatory effort associated with a license during 
the decommissioning process and the NRC fee structure adjusted 
accordingly.
    In response, there does not appear to be any need to change the fee 
structure for decommissioning. It is noted that fees for license 
amendments for major materials or fuel cycle facilities are on a full 
cost recovery basis and the cost, therefore, would depend upon the 
amount of effort expended by the NRC staff on any given case. Once a 
licensee enters a possession-only status the option is available of 
qualifying for a different fee category due to a change in the nature 
of the licensed activities.

V. Enforcement

    Concurrent with the publication of the final rule, the Commission 
is modifying Supplement VI of the Enforcement Policy to provide that 
violations involving a failure to notify the NRC as required by 
regulation or license condition, failure to meet decommissioning 
standards, failure to complete decommissioning activities in accordance 
with regulation or license condition, or failure to meet required 
schedules without adequate justification may be classified as Severity 
Level III and may result in consideration of monetary civil penalties 
or other enforcement action as appropriate.

VI. Agreement State Compatibility

    The final rule is a matter of compatibility between the NRC and the 
Agreements States, thereby providing consistency between Federal and 
State safety requirements. This rule is assigned a Division 2 
compatibility. Under this level of compatibility, the Agreement States 
would be expected to adopt a timeliness in decommissioning rule but 
would be permitted flexibility to apply more stringent requirements if 
deemed appropriate by the State.

VII. Implementation

    The timing provisions of this rule begin on the effective date. 
Thus, licensees that currently have unused facilities at the time of 
publication of the final rule would not need to submit notifications 
required by this rule earlier than 2 years after the rule becomes 
effective. This provides those licensees with same period of time (2 
years) in which to determine whether the unused facility would be put 
into use again or to submit notification as required by the rule.

VIII. Finding of No Significant Environmental Impact: Availability

    The NRC has determined under the National Environmental Policy Act 
of 1969, as amended, and the NRC's regulations in Subpart A of 10 CFR 
Part 51, that this rule is not a major Federal action significantly 
affecting the quality of the human environment, and therefore, an 
environmental impact statement is not required. The action establishes 
specific requirements for timeliness of decommissioning of nuclear 
materials facilities. The action is directed to improving the 
regulatory, licensing, inspection, and enforcement framework relating 
to these facilities and does not change the underlying fundamental 
requirement to decommission facilities to levels acceptable for 
release. Thus, this action will not adversely affect the quality of the 
human environment. The environmental assessment and finding of no 
significant impact on which this determination is based is available 
for inspection at the NRC Public Document Room, 2120 L Street, NW. 
(Lower Level), Washington, DC. Single copies are available without 
charge upon written request from Mary L. Thomas, Office of Nuclear 
Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC 
20555.

IX. 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 approval numbers 3150-0009, -0017, -0020, -0028, and -0132.
    The public reporting burden for this collection of additional 
information is estimated to average 0.5 hours per response, to prepare 
and submit a notification of intent to terminate licensed activities. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing this 
burden, to the Information and Records Management Branch (T6F33), U.S. 
Nuclear Regulatory Commission, Washington, DC 20555; and to the Desk 
Officer, Office of Information and Regulatory Affairs, NEOB-10202 
(3150-0009, 3150-0017, 3150-0020, 3150-0028, and 3150-0132), Office of 
Management and Budget, Washington, DC 20503.

X. Regulatory Analysis

    The NRC has prepared a regulatory analysis on this regulation. The 
analysis examines the costs and benefits of the requirements in the 
rule. The analysis is available for inspection at the NRC Public 
Document Room, 2120 L Street NW. (Lower Level), Washington, DC.

XI. Regulatory Flexibility Certification

    In accordance with the Regulatory Flexibility Act of 1980 (5 U.S.C. 
605(b)), the NRC certifies that this rule does not have a significant 
economic impact on a substantial number of small entities. The rule 
imposes requirements for timely decommissioning of a site. Although the 
rule includes all materials licensees regulated by the NRC and the 
Agreement States, decommissioning efforts for licensees that possess 
and use only materials with short half-lives or materials only in 
sealed sources are simple and require only that enough time be 
permitted to either allow short-lived materials to decay or to enable 
them to properly dispose of their sealed sources. Therefore, the impact 
of the rule on these licensees is not significant. The net cost to the 
remaining licensees, estimated to number 3,300, is expected to be small 
based on an analysis of the costs of decommissioning, including waste 
disposal. The analysis indicates that in nearly all cases, the cost of 
decommissioning (which includes the costs of waste disposal) will 
increase if decommissioning is delayed. Complete details of the cost 
analysis are contained in Section 6.2 of the Regulatory Analysis. 
However, these remaining 3,300 licensees are not likely to be small 
entities and, in addition, there actually may be significant costs of 
cleanup of secondary contamination if decommissioning is delayed.

XII. Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR 50.109, does 
not apply to this proposed rule and, therefore, that a backfit analysis 
is not required for this proposed rule because these amendments do not 
involve any provisions which would impose backfits as defined in 10 CFR 
50.109(a)(1).

List of Subjects

10 CFR Part 2

    Administrative practice and procedure, Antitrust, Byproduct 
material, Classified information, Environmental protection, Nuclear 
materials, Nuclear power plants and reactors, Penalty, Sex 
Discrimination, Source material, Special nuclear material, Waste 
treatment and disposal.

10 CFR Part 30

    Byproduct material, Criminal penalties, Government contracts, 
Intergovernmental relations, Isotopes, Nuclear materials, Radiation 
protection, Reporting and recordkeeping requirements.

10 CFR Part 40

    Criminal penalties, Government contracts, Hazardous materials--
transportation, Nuclear materials, Reporting and recordkeeping 
requirements, Source material, and Uranium.

10 CFR Part 70

    Criminal penalties, Hazardous materials--transportation, Material 
control and accounting, Nuclear materials, Packaging and containers, 
Radiation protection, Reporting and recordkeeping requirements, 
Scientific equipment, Security measures, Special nuclear material.

10 CFR Part 72

    Independent storage of spent fuel and high level waste, Manpower 
training programs, Nuclear materials, Occupational safety and health, 
Reporting and recordkeeping requirements, Security measures, and Spent 
fuel.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended, the Energy Reorganization 
Act of 1974, as amended, and 5 U.S.C. 552 and 553, the NRC is adopting 
the following amendments to 10 CFR Parts 2, 30, 40, 70, and 72.

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

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

    Authority: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948, 
953, 954, 955, as amended, sec. 234, 83 Stat 444, as amended (42 
U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as 
amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246, (42 U.S.C. 
5841, 5842, 5846).
    Section 30.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 
2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat 3123, (42 
U.S.C. 5851). Section 30.34(b) also issued under sec. 184, 68 Stat. 
954, as amended (42 U.S.C. 2234). Section 30.61 also issued under 
sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

    2. In Sec. 30.4 a definition of the term principal activities is 
added in alphabetical order to read as follows:


Sec. 30.4   Definitions.

* * * * *
    Principal activities, as used in this part, means activities 
authorized by the license which are essential to achieving the 
purpose(s) for which the license was issued or amended. Storage during 
which no licensed material is accessed for use or disposal and 
activities incidental to decontamination or decommissioning are not 
principal activities.
* * * * *
    3. Section 30.36 is revised to read as follows:


Sec. 30.36  Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

    (a) Each specific license expires at the end of the day on the 
expiration date stated in the license unless the licensee has filed an 
application for renewal under Sec. 30.37 not less than 30 days before 
the expiration date stated in the existing license. If an application 
for renewal has been filed at least 30 days prior to the expiration 
date stated in the existing license, the existing license expires at 
the end of the day on which the Commission makes a final determination 
to deny the renewal application or, if the determination states an 
expiration date, the expiration date stated in the determination.
    (b) Each specific license revoked by the Commission expires at the 
end of the day on the date of the Commission's final determination to 
revoke the license, or on the expiration date stated in the 
determination, or as otherwise provided by Commission Order.
    (c) Each specific license continues in effect, beyond the 
expiration date if necessary, with respect to possession of byproduct 
material until the Commission notifies the licensee in writing that the 
license is terminated. During this time, the licensee shall--
    (1) Limit actions involving byproduct material to those related to 
decommissioning; and
    (2) Continue to control entry to restricted areas until they are 
suitable for release in accordance with NRC requirements.
    (d) Within 60 days of the occurrence of any of the following, 
consistent with the administrative directions in Sec. 30.6, each 
licensee shall provide notification to the NRC in writing of such 
occurrence, and either begin decommissioning its site, or any separate 
building or outdoor area that contains residual radioactivity so that 
the building or outdoor area is suitable for release in accordance with 
NRC requirements, or submit within 12 months of notification a 
decommissioning plan, if required by paragraph (f)(1) of this section, 
and begin decommissioning upon approval of that plan if--
    (1) The license has expired pursuant to paragraph (a) or (b) of 
this section; or
    (2) The licensee has decided to permanently cease principal 
activities, as defined in this part, at the entire site or in any 
separate building or outdoor area that contains residual radioactivity 
such that the building or outdoor area is unsuitable for release in 
accordance with NRC requirements; or
    (3) No principal activities under the license have been conducted 
for a period of 24 months; or
    (4) No principal activities have been conducted for a period of 24 
months in any separate building or outdoor area that contains residual 
radioactivity such that the building or outdoor area is unsuitable for 
release in accordance with NRC requirements.
    (e) The Commission may grant a request to extend the time periods 
established in paragraph (d) if the Commission determines that this 
relief is not detrimental to the public health and safety and is 
otherwise in the public interest. The request must be submitted no 
later than 30 days before notification pursuant to paragraph (d) of 
this section. The schedule for decommissioning set forth in paragraph 
(d) of this section may not commence until the Commission has made a 
determination on the request.
    (f)(1) A decommissioning plan must be submitted if required by 
license condition or if the procedures and activities necessary to 
carry out decommissioning of the site or separate building or outdoor 
area have not been previously approved by the Commission and these 
procedures could increase potential health and safety impacts to 
workers or to the public, such as in any of the following cases:
    (i) Procedures would involve techniques not applied routinely 
during cleanup or maintenance operations;
    (ii) Workers would be entering areas not normally occupied where 
surface contamination and radiation levels are significantly higher 
than routinely encountered during operation;
    (iii) Procedures could result in significantly greater airborne 
concentrations of radioactive materials than are present during 
operation; or
    (iv) Procedures could result in significantly greater releases of 
radioactive material to the environment than those associated with 
operation.
    (2) The Commission may approve an alternate schedule for submittal 
of a decommissioning plan required pursuant to paragraph (d) of this 
section if the Commission determines that the alternative schedule is 
necessary to the effective conduct of decommissioning operations and 
presents no undue risk from radiation to the public health and safety 
and is otherwise in the public interest.
    (3) Procedures such as those listed in paragraph (f)(1) of this 
section with potential health and safety impacts may not be carried out 
prior to approval of the decommissioning plan.
    (4) The proposed decommissioning plan for the site or separate 
building or outdoor area must include:
    (i) A description of the conditions of the site or separate 
building or outdoor area sufficient to evaluate the acceptability of 
the plan;
    (ii) A description of planned decommissioning activities;
    (iii) A description of methods used to ensure protection of workers 
and the environment against radiation hazards during decommissioning;
    (iv) A description of the planned final radiation survey; and
    (v) An updated detailed cost estimate for decommissioning, 
comparison of that estimate with present funds set aside for 
decommissioning, and a plan for assuring the availability of adequate 
funds for completion of decommissioning.
    (vi) For decommissioning plans calling for completion of 
decommissioning later than 24 months after plan approval, the plan 
shall include a justification for the delay based on the criteria in 
paragraph (h) of this section.
    (5) The proposed decommissioning plan will be approved by the 
Commission if the information therein demonstrates that the 
decommissioning will be completed as soon as practicable and that the 
health and safety of workers and the public will be adequately 
protected.
    (g)(1) Except as provided in paragraph (h) of this section, 
licensees shall complete decommissioning of the site or separate 
building or outdoor area as soon as practicable but no later than 24 
months following the initiation of decommissioning.
    (2) Except as provided in paragraph (h) of this section, when 
decommissioning involves the entire site, the licensee shall request 
license termination as soon as practicable but no later than 24 months 
following the initiation of decommissioning.
    (h) The Commission may approve a request for an alternative 
schedule for completion of decommissioning of the site or separate 
building or outdoor area, and license termination if appropriate, if 
the Commission determines that the alternative is warranted by 
consideration of the following:
    (1) Whether it is technically feasible to complete decommissioning 
within the allotted 24-month period;
    (2) Whether sufficient waste disposal capacity is available to 
allow completion of decommissioning within the allotted 24-month 
period;
    (3) Whether a significant volume reduction in wastes requiring 
disposal will be achieved by allowing short-lived radionuclides to 
decay;
    (4) Whether a significant reduction in radiation exposure to 
workers can be achieved by allowing short-lived radionuclides to decay; 
and
    (5) Other site-specific factors which the Commission may consider 
appropriate on a case-by-case basis, such as the regulatory 
requirements of other government agencies, lawsuits, ground-water 
treatment activities, monitored natural ground-water restoration, 
actions that could result in more environmental harm than deferred 
cleanup, and other factors beyond the control of the licensee.
    (i) As the final step in decommissioning, the licensee shall--
    (1) Certify the disposition of all licensed material, including 
accumulated wastes, by submitting a completed NRC Form 314 or 
equivalent information; and
    (2) Conduct a radiation survey of the premises where the licensed 
activities were carried out and submit a report of the results of this 
survey unless the licensee demonstrates that the premises are suitable 
for release in some other manner. The licensee shall, as appropriate--
    (i) Report levels of gamma radiation in units of millisieverts 
(microroentgen) per hour at one meter from surfaces, and report levels 
of radioactivity, including alpha and beta, in units of megabecquerels 
(disintegrations per minute or microcuries) per 100 square 
centimeters--removable and fixed--for surfaces, megabecquerels 
(microcuries) per milliliter for water, and becquerels (picocuries) per 
gram for solids such as soils or concrete; and
    (ii) Specify the survey instrument(s) used and certify that each 
instrument is properly calibrated and tested.
    (j) Specific licenses, including expired licenses, will be 
terminated by written notice to the licensee when the Commission 
determines that:
    (1) Byproduct material has been properly disposed;
    (2) Reasonable effort has been made to eliminate residual 
radioactive contamination, if present; and
    (3)(i) A radiation survey has been performed which demonstrates 
that the premises are suitable for release in accordance with NRC 
requirements; or (ii) Other information submitted by the licensee is 
sufficient to demonstrate that the premises are suitable for release in 
accordance with NRC requirements.
    4. Section 30.37 is revised to read as follows:


Sec. 30.37   Application for renewal of licenses.

    (a) Application for renewal of a specific license must be filed on 
NRC Form 314 and in accordance with Sec. 30.32.
    (b) [Reserved]

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

    5. 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. 
86-373, 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 as amended by Pub. L. 102-486, sec. 2902, 106 Stat 3123, (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).

    6. In Sec. 40.4 a definition of the term principal activities is 
added in alphabetical order to read as follows:


Sec. 40.4   Definitions.

* * * * *
    Principal activities, as used in this part, means activities 
authorized by the license which are essential to achieving the 
purpose(s) for which the license was issued or amended. Storage during 
which no licensed material is accessed for use or disposal and 
activities incidental to decontamination or decommissioning are not 
principal activities.
* * * * *
    7. Section 40.42 is revised to read as follows:


Sec. 40.42   Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

    (a) Each specific license expires at the end of the day on the 
expiration date stated in the license unless the licensee has filed an 
application for renewal under Sec. 40.43 not less than 30 days before 
the expiration of the existing license. If an application for renewal 
has been filed, the existing license expires at the end of the day on 
which the Commission makes a final determination to deny the renewal 
application or, if the determination states an expiration date, the 
expiration date stated in the determination.
    (b) Each specific license revoked by the Commission expires at the 
end of the day on the date of the Commission's final determination to 
revoke the license, or on the expiration date stated in the 
determination, or as otherwise provided by Commission Order.
    (c) Each specific license continues in effect, beyond the 
expiration date if necessary, with respect to possession of source 
material until the Commission notifies the licensee in writing that the 
license is terminated. During this time, the licensee shall--
    (1) Limit actions involving source material to those related to 
decommissioning; and
    (2) Continue to control entry to restricted areas until they are 
suitable for release in accordance with NRC requirements;
    (d) Within 60 days of the occurrence of any of the following, 
consistent with the administrative directions in Sec. 40.5, each 
licensee shall provide notification to the NRC in writing and either 
begin decommissioning its site, or any separate building or outdoor 
area that contains residual radioactivity, so that the building or 
outdoor area is suitable for release in accordance with NRC 
requirements, or submit within 12 months of notification a 
decommissioning plan, if required by paragraph (f)(1) of this section, 
and begin decommissioning upon approval of that plan if--
    (1) The license has expired pursuant to paragraph (a) or (b) of 
this section; or
    (2) The licensee has decided to permanently cease principal 
activities, as defined in this part, at the entire site or in any 
separate building or outdoor area; or
    (3) No principal activities under the license have been conducted 
for a period of 24 months; or
    (4) No principal activities have been conducted for a period of 24 
months in any separate building or outdoor area that contains residual 
radioactivity such that the building or outdoor area is unsuitable for 
release in accordance with NRC requirements.
    (e) The Commission may grant a request to delay or postpone 
initiation of the decommissioning process if the Commission determines 
that such relief is not detrimental to the public health and safety and 
is otherwise in the public interest. The request must be submitted no 
later than 30 days before notification pursuant to paragraph (d) of 
this section. The schedule for decommissioning set forth in paragraph 
(d) of this section may not commence until the Commission has made a 
determination on the request.
    (f)(1) A decommissioning plan must be submitted if required by 
license condition or if the procedures and activities necessary to 
carry out decommissioning of the site or separate building or outdoor 
area have not been previously approved by the Commission and these 
procedures could increase potential health and safety impacts to 
workers or to the public, such as in any of the following cases:
    (i) Procedures would involve techniques not applied routinely 
during cleanup or maintenance operations;
    (ii) Workers would be entering areas not normally occupied where 
surface contamination and radiation levels are significantly higher 
than routinely encountered during operation;
    (iii) Procedures could result in significantly greater airborne 
concentrations of radioactive materials than are present during 
operation; or
    (iv) Procedures could result in significantly greater releases of 
radioactive material to the environment than those associated with 
operation.
    (2) The Commission may approve an alternate schedule for submittal 
of a decommissioning plan required pursuant to paragraph (d) of this 
section if the Commission determines that the alternative schedule is 
necessary to the effective conduct of decommissioning operations and 
presents no undue risk from radiation to the public health and safety 
and is otherwise in the public interest.
    (3) The procedures listed in paragraph (f)(1) of this section may 
not be carried out prior to approval of the decommissioning plan.
    (4) The proposed decommissioning plan for the site or separate 
building or outdoor area must include:
    (i) A description of the conditions of the site or separate 
building or outdoor area sufficient to evaluate the acceptability of 
the plan;
    (ii) A description of planned decommissioning activities;
    (iii) A description of methods used to ensure protection of workers 
and the environment against radiation hazards during decommissioning;
    (iv) A description of the planned final radiation survey; and
    (v) An updated detailed cost estimate for decommissioning, 
comparison of that estimate with present funds set aside for 
decommissioning, and a plan for assuring the availability of adequate 
funds for completion of decommissioning.
    (vi) For decommissioning plans calling for completion of 
decommissioning later than 24 months after plan approval, a 
justification for the delay based on the criteria in paragraph (h) of 
this section.
    (5) The proposed decommissioning plan will be approved by the 
Commission if the information therein demonstrates that the 
decommissioning will be completed as soon as practicable and that the 
health and safety of workers and the public will be adequately 
protected.
    (g)(1) Except as provided in paragraph (h) of this section, 
licensees shall complete decommissioning of the site or separate 
building or outdoor area as soon as practicable but no later than 24 
months following the initiation of decommissioning.
    (2) Except as provided in paragraph (h) of this section, when 
decommissioning involves the entire site, the licensee shall request 
license termination as soon as practicable but no later than 24 months 
following the initiation of decommissioning.
    (h) The Commission may approve a request for an alternate schedule 
for completion of decommissioning of the site or separate building or 
outdoor area, and license termination if appropriate, if the Commission 
determines that the alternative is warranted by consideration of the 
following:
    (1) Whether it is technically feasible to complete decommissioning 
within the allotted 24-month period;
    (2) Whether sufficient waste disposal capacity is available to 
allow completion of decommissioning within the allotted 24-month 
period;
    (3) Whether a significant volume reduction in wastes requiring 
disposal will be achieved by allowing short-lived radionuclides to 
decay;
    (4) Whether a significant reduction in radiation exposure to 
workers can be achieved by allowing short-lived radionuclides to decay; 
and
    (5) Other site-specific factors which the Commission may consider 
appropriate on a case-by-case basis, such as the regulatory 
requirements of other government agencies, lawsuits, ground-water 
treatment activities, monitored natural ground-water restoration, 
actions that could result in more environmental harm than deferred 
cleanup, and other factors beyond the control of the licensee.
    (i) As the final step in decommissioning, the licensee shall--
    (1) Certify the disposition of all licensed material, including 
accumulated wastes, by submitting a completed NRC Form 314 or 
equivalent information; and
    (2) Conduct a radiation survey of the premises where the licensed 
activities were carried out and submit a report of the results of this 
survey unless the licensee demonstrates that the premises are suitable 
for release in some other manner. The licensee shall, as appropriate--
    (i) Report levels of gamma radiation in units of millisieverts 
(microroentgen) per hour at one meter from surfaces, and report levels 
of radioactivity, including alpha and beta, in units of megabecquerels 
(disintegrations per minute or microcuries) per 100 square centimeters 
removable and fixed for surfaces, megabecquerels (microcuries) per 
milliliter for water, and becquerels (picocuries) per gram for solids 
such as soils or concrete; and
    (ii) Specify the survey instrument(s) used and certify that each 
instrument is properly calibrated and tested.
    (j) Specific licenses, including expired licenses, will be 
terminated by written notice to the licensee when the Commission 
determines that:
    (1) Source material has been properly disposed;
    (2) Reasonable effort has been made to eliminate residual 
radioactive contamination, if present; and
    (3)(i) A radiation survey has been performed which demonstrates 
that the premises are suitable for release in accordance with NRC 
requirements.
    (ii) Other information submitted by the licensee is sufficient to 
demonstrate that the premises are suitable for release in accordance 
with NRC requirements.
    (k) Specific licenses for uranium and thorium milling are exempt 
from paragraphs (d)(4), (f) and (g) of this section with respect to 
reclamation of tailings impoundments and/or waste disposal areas.
    8. Section 40.43 is revised to read as follows:


Sec. 40.43  Renewal of licenses.

    (a) Application for renewal of a specific license must be filed on 
NRC Form 314 and in accordance with Sec. 40.31.
    (b) [Reserved]

PART 70--DOMESTIC LICENSING OF 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, 2201, 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).
    Sections 70.1(c) and 70.20a(b) also issued under secs. 135, 141, 
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). 
Section 70.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat. 
2951 as amended by Pub. L. 102-486 sec. 2902, 106 Stat. 3123 (42 
U.S.C. 5851). Section 70.21(g) also issued under sec. 122, 68 Stat. 
939 (42 U.S.C. 2152). Section 70.31 also issued under sec. 57d, Pub. 
L. 93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36 and 70.44 
also issued under sec. 184, 68 Stat. 954, 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).

    10. In Section 70.4 a definition of the term principal activities 
is added in alphabetical order to read as follows:


Sec. 70.4   Definitions.

* * * * *
    Principal activities, as used in this part, means activities 
authorized by the license which are essential to achieving the 
purpose(s) for which the license was issued or amended. Storage during 
which no licensed material is accessed for use or disposal and 
activities incidental to decontamination or decommissioning are not 
principal activities.
* * * * *


Sec. 70.33   [Amended].

    11. Section 70.33 is amended by removing and reserving paragraph 
(b).
    12. Section 70.38 is revised to read as follows:


Sec. 70.38   Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

    (a) Each specific license expires at the end of the day on the 
expiration date stated in the license unless the licensee has filed an 
application for renewal under Sec. 70.33 not less than 30 days before 
the expiration of the existing license. If an application for renewal 
has been filed, the existing license expires at the end of the day on 
which the Commission makes a final determination to deny the renewal 
application or, if the determination states an expiration date, the 
expiration date stated in the determination.
    (b) Each specific license revoked by the Commission expires at the 
end of the day on the date of the Commission's final determination to 
revoke the license, or on the expiration date stated in the 
determination, or as otherwise provided by Commission Order.
    (c) Each specific license continues in effect, beyond the 
expiration date if necessary, with respect to possession of special 
nuclear material until the Commission notifies the licensee in writing 
that the license is terminated. During this time, the licensee shall--
    (1) Limit actions involving special nuclear material to those 
related to decommissioning; and
    (2) Continue to control entry to restricted areas until they are 
suitable for release in accordance with NRC requirements.
    (d) Within 60 days of the occurrence of any of the following, 
consistent with the administrative directions in Sec. 70.5, each 
licensee shall provide notification to the NRC in writing and either 
begin decommissioning its site, or any separate building or outdoor 
area that contains residual radioactivity, so that the building or 
outdoor area is suitable for release in accordance with NRC 
requirements, or submit within 12 months of notification a 
decommissioning plan, if required by paragraph (f)(1) of this section, 
and begin decommissioning upon approval of that plan if--
    (1) The license has expired pursuant to paragraph (a) or (b) of 
this section; or
    (2) The licensee has decided to permanently cease principal 
activities, as defined in this part, at the entire site or in any 
separate building or outdoor area; or
    (3) No principal activities under the license have been conducted 
for a period of 24 months; or
    (4) No principal activities have been conducted for a period of 24 
months in any separate building or outdoor area that contains residual 
radioactivity such that the building or outdoor area is unsuitable for 
release in accordance with NRC requirements.
    (e) The Commission may grant a request to delay or postpone 
initiation of the decommissioning process if the Commission determines 
that this relief is not detrimental to the public health and safety and 
is otherwise in the public interest. The request must be submitted no 
later than 30 days before notification pursuant to paragraph (d) of 
this section. The schedule for decommissioning set forth in paragraph 
(d) of this section may not commence until the Commission has made a 
determination on the request.
    (f)(1) A decommissioning plan must be submitted if required by 
license condition or if the procedures and activities necessary to 
carry out decommissioning of the site or separate building or outdoor 
area have not been previously approved by the Commission and these 
procedures could increase potential health and safety impacts to 
workers or to the public, such as in any of the following cases:
    (i) Procedures would involve techniques not applied routinely 
during cleanup or maintenance operations;
    (ii) Workers would be entering areas not normally occupied where 
surface contamination and radiation levels are significantly higher 
than routinely encountered during operation;
    (iii) Procedures could result in significantly greater airborne 
concentrations of radioactive materials than are present during 
operation; or
    (iv) Procedures could result in significantly greater releases of 
radioactive material to the environment than those associated with 
operation.
    (2) The Commission may approve an alternate schedule for submittal 
of a decommissioning plan required pursuant to paragraph (d) of this 
section if the Commission determines that the alternative schedule is 
necessary to the effective conduct of decommissioning operations and 
presents no undue risk from radiation to the public health and safety 
and is otherwise in the public interest.
    (3) The procedures listed in paragraph (f)(1) of this section may 
not be carried out prior to approval of the decommissioning plan.
    (4) The proposed decommissioning plan for the site or separate 
building or outdoor area must include:
    (i) A description of the conditions of the site or separate 
building or outdoor area sufficient to evaluate the acceptability of 
the plan;
    (ii) A description of planned decommissioning activities;
    (iii) A description of methods used to ensure protection of workers 
and the environment against radiation hazards during decommissioning;
    (iv) A description of the planned final radiation survey; and
    (v) An updated detailed cost estimate for decommissioning, 
comparison of that estimate with present funds set aside for 
decommissioning, and a plan for assuring the availability of adequate 
funds for completion of decommissioning.
    (vi) A description of the physical security plan and material 
control and accounting plan provisions in place during decommissioning.
    (vii) For decommissioning plans calling for completion of 
decommissioning later than 24 months after plan approval, a 
justification for the delay based on the criteria in paragraph (h) of 
this section.
    (5) The proposed decommissioning plan will be approved by the 
Commission if the information therein demonstrates that the 
decommissioning will be completed as soon as practical and that the 
health and safety of workers and the public will be adequately 
protected.
    (g)(1) Except as provided in paragraph (h) of this section, 
licensees shall complete decommissioning of the site or separate 
building or outdoor area as soon as practicable but no later than 24 
months following the initiation of decommissioning.
    (2) Except as provided in paragraph (h) of this section, when 
decommissioning involves the entire site, the licensee shall request 
license termination as soon as practicable but no later than 24 months 
following the initiation of decommissioning.
    (h) The Commission may approve a request for an alternate schedule 
for completion of decommissioning of the site or separate building or 
outdoor area, and license termination if appropriate, if the Commission 
determines that the alternative is warranted by consideration of the 
following:
    (1) Whether it is technically feasible to complete decommissioning 
within the allotted 24-month period;
    (2) Whether sufficient waste disposal capacity is available to 
allow completion of decommissioning within the allotted 24-month 
period;
    (3) Whether a significant volume reduction in wastes requiring 
disposal will be achieved by allowing short-lived radionuclides to 
decay;
    (4) Whether a significant reduction in radiation exposure to 
workers can be achieved by allowing short-lived radionuclides to decay; 
and
    (5) Other site-specific factors which the Commission may consider 
appropriate on a case-by-case basis, such as regulatory requirements of 
other government agencies, lawsuits, ground-water treatment activities, 
monitored natural ground-water restoration, actions that could result 
in more environmental harm than deferred cleanup, and other factors 
beyond the control of the licensee.
    (i) As the final step in decommissioning, the licensee shall--
    (1) Certify the disposition of all licensed material, including 
accumulated wastes, by submitting a completed NRC Form 314 or 
equivalent information; and
    (2) Conduct a radiation survey of the premises where the licensed 
activities were carried out and submit a report of the results of this 
survey unless the licensee demonstrates that the premises are suitable 
for release in some other manner. The licensee shall, as appropriate--
    (i) Report levels of gamma radiation in units of millisieverts 
(microroentgen) per hour at one meter from surfaces, and report levels 
of radioactivity, including alpha and beta, in units of megabecquerels 
(disintegrations per minute or microcuries) per 100 square centimeters 
removable and fixed for surfaces, megabecquerels (microcuries) per 
milliliter for water, and becquerels (picocuries) per gram for solids 
such as soils or concrete; and
    (ii) Specify the survey instrument(s) used and certify that each 
instrument is properly calibrated and tested.
    (j) Specific licenses, including expired licenses, will be 
terminated by written notice to the licensee when the Commission 
determines that:
    (1) Special nuclear material has been properly disposed;
    (2) Reasonable effort has been made to eliminate residual 
radioactive contamination, if present; and
    (3)(i) A radiation survey has been performed which demonstrates 
that the premises are suitable for release in accordance with NRC 
requirements; or
    (ii) Other information submitted by the licensee is sufficient to 
demonstrate that the premises are suitable for release in accordance 
with NRC requirements.

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF 
SPENT NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE

    13. The authority citation for Part 72 continues to read as 
follows:

    Authority: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183, 
184, 186, 187, 189, 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, 2238, 2282); sec. 274, Pub. L. 86-373, 73 Stat. 
688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88 
Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846); 
Pub. L. 95-601, sec. 10, 92 Stat. 2951 as amended by Pub. L. 102-
486, sec. 2902, 106 Stat. 3123 (42 U.S.C. 5851); sec. 102 Pub. L. 
91-190, 83 Stat. 853 (42 U.S.C. 4332). Secs. 131, 132, 133, 135, 
137, 141, Pub. L. 97-425, 96 Stat. 2229, 2230, 2232, 2241, sec. 148, 
Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152, 10153, 
10155, 10157, 10161, 10168).
    Section 72.44(g) also issued under secs. 142(b) and 148(c), (d), 
Pub. L. 100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C. 10162(b), 
10168(c), (d)). Section 72.46 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). Section 72.96(d) also issued under sec. 145(g), Pub. 
L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10165(g)). Subpart J also 
issued under secs. 2(2), 2(15), 2(19), 117(a), 141(h), Pub. L. 97-
425, 96 Stat. 2202, 2203, 2204, 2222, 2244, (42 U.S.C. 10101, 
10137(a), 10161(h)). Subparts K and L are also issued under sec. 
133, 98 Stat. 2230 (42 U.S.C. 10153) and Sec. 218(a) 96 Stat. 2252 
(42 U.S.C. 10198).

    14. In Sec. 72.3, a definition of the term principal activities is 
added in alphabetical order to read as follows:


Sec. 72.3  Definitions.

* * * * *
    Principal activities, as used in this part, means activities 
authorized by the license which are essential to achieving the 
purpose(s) for which the license was issued or amended, excluding 
activities incidental to decontamination or decommissioning.
* * * * *
    15. Section 72.54 is revised to read as follows:


Sec. 72.54  Expiration and termination of licenses and decommissioning 
of sites and separate buildings or outdoor areas.

    (a) Each specific license expires at the end of the day on the 
expiration date stated in the license except when a licensee has filed 
an application for renewal pursuant to Sec. 72.42 not less than 24 
months before the expiration of the existing license. If an application 
for renewal has been filed at least 24 months prior to the expiration 
date stated in the existing license, the existing license expires at 
the end of the day on which the Commission makes a final determination 
to deny the renewal application or, if the determination states an 
expiration date, the expiration date stated in the determination.
    (b) Each specific license revoked by the Commission expires at the 
end of the day on the date of the Commission's final determination to 
revoke the license or on the expiration date stated in the 
determination or as otherwise provided by Commission Order.
    (c) Each specific license continues in effect, beyond the 
expiration date if necessary, with respect to possession of licensed 
material until the Commission notifies the licensee in writing that the 
license is terminated. During this time, the licensee shall--
    (1) Limit actions involving spent fuel or other licensed material 
to those related to decommissioning; and
    (2) Continue to control entry to restricted areas until they are 
suitable for release in accordance with NRC requirements.
    (d) As required by Sec. 72.42(d), or within 60 days of the 
occurrence of any of the following, consistent with the administrative 
directions in Sec. 72.4, each licensee shall notify the NRC in writing, 
and submit within 12 months of this notification, a final 
decommissioning plan and begin decommissioning upon approval of the 
plan if--
    (1) The licensee has decided to permanently cease principal 
activities, as defined in this part, at the entire site or any separate 
building or outdoor area that contains residual radioactivity such that 
the building or outdoor area is unsuitable for release in accordance 
with NRC requirements; or
    (2) No principal activities under the license have been conducted 
for a period of 24 months; or
    (3) No principal activities have been conducted for a period of 24 
months in any separate building or outdoor area that contains residual 
radioactivity such that the building or outdoor area is unsuitable for 
release in accordance with NRC requirements.
    (e)(1) The Commission may grant a request to delay or postpone 
initiation of the decommissioning process if the Commission determines 
that this relief is not detrimental to the public health and safety and 
is otherwise in the public interest. The request must be submitted no 
later than 30 days before notification pursuant to paragraph (d) of 
this section. The schedule for decommissioning set forth in paragraph 
(d) of this section may not commence until the Commission has made a 
determination on the request.
    (2) The Commission may approve an alternate schedule for submittal 
of the final decommissioning plan required pursuant to paragraph (d) of 
this section if the Commission determines that the alternate schedule 
is necessary to the effective conduct of decommissioning operations and 
presents no undue risk from radiation to the public health and safety, 
and is otherwise to the public interest.
    (f) The proposed final decommissioning plan must include--
    (1) A description of the current conditions of the site or separate 
building or outdoor area sufficient to evaluate the acceptability of 
the plan;
    (2) The choice of the alternative for decommissioning with a 
description of the activities involved;
    (3) A description of controls and limits on procedures and 
equipment to protect occupational and public health and safety;
    (4) A description of the planned final radiation survey; and
    (5) An updated detailed cost estimate for the chosen alternative 
for decommissioning, comparison of that estimate with present funds set 
aside for decommissioning, and plan for assuring the availability of 
adequate funds for completion of decommissioning including means for 
adjusting cost estimates and associated funding levels over any storage 
or surveillance period; and
    (6) A description of technical specifications and quality assurance 
provisions in place during decommissioning.
    (g) For final decommissioning plans in which the major 
dismantlement activities are delayed by first placing the ISFSI or MRS 
in storage, planning for these delayed activities may be less detailed. 
Updated detailed plans must be submitted and approved prior to the 
start of these activities.
    (h) If the final decommissioning plan demonstrates that the 
decommissioning will be completed as soon as practicable, performed in 
accordance with the regulations in this chapter, and will not be 
inimical to the common defense and security or to the health and safety 
of the public, and after notice to interested persons, the Commission 
will approve the plan subject to any appropriate conditions and 
limitations and issue an order authorizing decommissioning.
    (i)(1) Except as provided in paragraph (j) of this section, each 
licensee shall complete decommissioning of the site or separate 
building or outdoor area as soon as practicable but no later than 24 
months following approval of the final decommissioning plan by the 
Commission.
    (2) Except as provided in paragraph (j) of this section, when 
decommissioning involves the entire site, each licensee shall request 
license termination as soon as practicable but no later than 24 months 
following approval of the final decommissioning plan by the Commission.
    (j) The Commission may approve a request for an alternate schedule 
for completion of decommissioning of the site or separate building or 
outdoor area, and license termination if appropriate, if the Commission 
determines that the alternate schedule is warranted by consideration of 
the following:
    (1) Whether it is technically feasible to complete decommissioning 
within the allotted 24-month period;
    (2) Whether sufficient waste disposal capacity is available to 
allow completion of decommissioning within the allotted 24-month 
period;
    (3) Whether a significant volume reduction in wastes requiring 
disposal will be achieved by allowing short-lived radionuclides to 
decay;
    (4) Whether a significant reduction in radiation exposure to 
workers can be achieved by allowing short-lived radionuclides to decay; 
and
    (5) Other site-specific factors that the Commission may consider 
appropriate on a case-by-case basis, such as regulatory requirements of 
other government agencies, lawsuits, ground-water treatment activities, 
monitored natural ground-water restoration, actions that could result 
in more environmental harm than deferred cleanup, and other factors 
beyond the control of the licensee.
    (k) As the final step in decommissioning, the licensee shall--
    (1) Certify the disposition of all licensed material, including 
accumulated wastes, by submitting a completed NRC Form 314 or 
equivalent information; and
    (2) Conduct a final radiation survey of the premises where the 
licensed activities were conducted and submit a report of the results 
of this survey, unless the licensee demonstrates that the premises are 
suitable for release in some other manner. The licensee shall, as 
appropriate--
    (i) Report levels of gamma radiation in units of millisieverts 
(microroentgen) per hour at one meter from surfaces, and report levels 
of radioactivity, including alpha and beta, in units of megabecquerels 
(disintegrations per minute or microcuries) per 100 square centimeters 
removable and fixed for surfaces, megabecquerels (microcuries) per 
milliliter for water, and becquerels (picocuries) per gram for solids 
such as soils or concrete; and
    (ii) Specify the survey instrument(s) used and certify that each 
instrument is properly calibrated and tested.
    (l) Specific licenses, including expired licenses, will be 
terminated by written notice to the licensee when the Commission 
determines that--
    (1) The decommissioning has been performed in accordance with the 
approved final decommissioning plan and the order authorizing 
decommissioning; and
    (2)(i) A radiation survey has been performed which demonstrates 
that the premises are suitable for release in accordance with NRC 
requirements; or
    (ii) Other information submitted by the licensee is sufficient to 
demonstrate that the premises are suitable for release in accordance 
with NRC requirements.
    16. In Sec. 72.86, paragraph (b), is revised to read as follows:


Sec. 72.86  Criminal penalties.

* * * * *
    (b) The regulations in this Part 72 that are not issued under 
Sections 161b, 161i, or 161o for the purposes of Section 223 are as 
follows: Secs. 72.1, 72.2, 72.3, 72.4, 72.5, 72.7, 72.8, 72.9, 72.16, 
72.18, 72.20, 72.22, 72.24, 72.26, 72.28, 72.32, 72.34, 72.40, 72.46, 
72.56, 72.58, 72.60, 72.62, 72.84, 72.86, 72.90, 72.96, 72.108, 72.120, 
72.122, 72.124, 72.126, 72.128, 72.130, 72.182, 72.194, 72.200, 72.202, 
72.204, 72.206, 72.210, 72.214, 72.220, 72.230, 72.236, 72.238, and 
72.240.

Conforming Amendment

    The following amendment to Chapter I of Title 10 generally updates 
citations to 10 CFR Parts 30, 40, 70 and 72 and is found in Part 2 of 
the NRC regulations. This amendment is particularly important as it 
goes beyond updating cross-reference citations. The amendment to 10 CFR 
Part 2, Appendix C updates and modifies the examples of severity 
levels. Because Appendix C is a policy statement of the Commission and 
not a regulation, the Commission is issuing the amendment to the 
Commission's enforcement policy in 10 CFR Part 2, Appendix C in final 
form without public comment.

PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND 
ISSUANCE OF ORDERS

    17. The authority citation for Part 2 continues in part to read as 
follows:

    Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201); 
sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841)
 * * * * *
    18. In Appendix C to 10 CFR Part 2, Supplement VI, Section C is 
amended by revising paragraphs 9, and 10, and by adding a new paragraph 
11, as follows:

Appendix C--General Statement of Policy and Procedure for NRC 
Enforcement Actions

* * * * *

Supplement VI--Fuel Cycle and Materials Operations

    C. Severity Level III--Violations involving for example:
* * * * *
    9. A failure to submit an NRC Form 241 in accordance with the 
requirements in Sec. 150.20 of 10 CFR part 150;
    10. A failure to receive required NRC approval prior to the 
implementation of a change in licensed activities that has 
radiological or programmatic significance, such as, a change in 
ownership; lack of an RSO or replacement of an RSO with an 
unqualified individual; a change in the location where licensed 
activities are being conducted, or where licensed material is being 
stored where the new facilities do no meet safety guidelines; or a 
change in the quantity or type of radioactive material being 
processed or used that has radiological significance; or
    11. A significant failure to meet decommissioning requirements 
including a failure to notify the NRC as required by regulation or 
license condition, substantial failure to meet decommissioning 
standards, failure to conduct and/or complete decommissioning 
activities in accordance with regulation or license condition, or 
failure to meet required schedules without adequate justification.

    Dated at Rockville, Maryland, this 11th day of July, 1994.

    For the Nuclear Regulatory Commission.
John C. Hoyle,
Acting Secretary of the Commission.
[FR Doc. 94-17206 Filed 7-14-94; 8:45 am]
BILLING CODE 7590-01-P