[Federal Register Volume 60, Number 181 (Tuesday, September 19, 1995)]
[Proposed Rules]
[Pages 48427-48428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23178]



 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 60, No. 181 / Tuesday, September 19, 1995 / 
Proposed Rules  

[[Page 48427]]


NUCLEAR REGULATORY COMMISSION

10 CFR Part 50

RIN 3150-AD10


Acceptance of Products Purchased for Use in Nuclear Power Plant 
Structures, Systems, and Components; Withdrawal

AGENCY: Nuclear Regulatory Commission.

ACTION: Advance notice of proposed rulemaking: Withdrawal.

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

SUMMARY: The Nuclear Regulatory Commission is withdrawing an advance 
notice of proposed rulemaking (ANPR) concerning the procurement and 
dedication of commercial grade items. The ANPR sought comment on the 
need for additional regulatory requirements and for obtaining an 
improved understanding of alternatives to regulatory requirements. On 
the basis of its findings, the NRC staff recommended to the Commission 
that this ANPR be withdrawn. The Commission has approved the withdrawal 
of this rulemaking.

FOR FURTHER INFORMATION CONTACT: Gregory Cwalina, Office of Nuclear 
Reactor Regulation, Division of Technical Support, Special Inspection 
Branch, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, 
telephone (301) 415-2983.

SUPPLEMENTARY INFORMATION: On March 6, 1989 (54 FR 9229), the NRC staff 
published in the Federal Register an ANPR, on the need for regulatory 
actions to effect improvements for procurement, receipt inspection and 
testing, and dedication programs, in response to the findings of 13 
inspections performed on licensees from 1986 through 1989. In the ANPR, 
the NRC staff explained that the NRC was considering the need for 
additional regulatory requirements and needed to obtain an improved 
understanding of alternatives to regulatory requirements.
    The inspections on commercial grade dedication programs identified 
major programmatic deficiencies. On February 21, 1990, the NRC staff 
submitted to the Commission SECY-90-057, ``Acceptance of Products 
Purchased for Use in Nuclear Power Plant Structures, Systems, and 
Components,'' to summarize the NRC's analysis of the public comments on 
the ANPR and its actions regarding the proposed rulemaking. The NRC 
staff concluded that (1) More regulatory guidance and direction may be 
necessary to ensure that the basic requirements for procurement and 
dedication are clearly stated and understood, (2) the NRC may not need 
to perform the rulemaking if the industry properly implemented the 
initiatives it had begun, and (3) the NRC staff would monitor the 
industry's efforts to determine if the progress made warranted 
deferring the rulemaking.
    On March 7, 1990, the NRC staff forwarded to the Commission SECY-
90-076, ``Inspection and Enforcement Initiatives for Commercial-Grade 
Procurement and Dedication Programs,'' in which the NRC staff described 
its actions to defer programmatic inspections of licensees' procurement 
and dedication programs for about 1 year while monitoring the 
industry's developments, improvements, and initiatives in this area.
    On August 24, 1990, the NRC staff forwarded to the Commission SECY-
90-304, ``Nuclear Management and Resources Council (NUMARC) Initiatives 
on Procurement,'' in which the NRC staff reported the status of 
NUMARC's initiatives on general procurement practices. The NRC staff 
stated it would conduct assessments at selected sites to review the 
licensees' implementation of improved procurement and commercial grade 
dedication programs and to assess improvements made in the areas 
covered by the NUMARC initiatives. The NRC staff began the first of 
eight planned assessments on February 4, 1991.
    On April 9, 1991, the NRC staff issued Generic Letter 91-05, 
``Licensee Commercial-Grade Procurement and Dedication Programs,'' in 
which the NRC staff expressed NRC positions regarding certain aspects 
of licensee procurement and dedication programs and discussed a number 
of deficiencies in licensees' commercial grade dedication programs 
noted during previous team inspections.
    On September 16, 1991, the NRC staff forwarded to the Commission 
SECY-91-291, ``Status of NRC's Procurement Assessments and Resumption 
of Programmatic Inspection Activity,'' in which the NRC staff reported 
on the findings of its assessments from February 1991 through July 
1991. The NRC staff concluded that although improvements had been made 
in licensees' procurement and dedication programs, weaknesses in 
implementation still existed. The NRC staff began developing an 
inspection procedure (IP) and conducted five pilot inspections between 
December 1991 and June 1992. The NRC staff continued to identify 
weaknesses in the implementation of licensees' dedication programs. 
Because of the findings of these inspections, the NRC staff held 
numerous meetings with NUMARC, industry, and licensees from November 
1992 to March 1993. After the pilot inspections were completed, the IP 
was revised and in March 1993, the NRC staff submitted the draft IP for 
public comment.
    Weaknesses identified during the procurement assessments and pilot 
inspections were related to implementation of the programs (i.e., 
dedication of specific items), and not to the programs themselves. 
Adoption of the industry guidance has, for the most part, resulted in 
licensees having acceptable programs for the dedication of commercial 
grade items. These programs also adequately assure that counterfeit, 
substandard or fraudulently marketed materials will not be accepted for 
use. The NRC staff's assessment and inspection activities did not 
identify any instances of counterfeit or fraudulent material being 
accepted for use by any of the plants examined.
    In April 1993, the NRC staff held a public workshop, at which the 
draft IP and various dedication issues were discussed. The public 
comment period closed in May 1993. The comment analysis and the 
revisions to the IP and dedication guidance were finished in June 1993. 
On November 8, 1993, the NRC staff issued the IP. Recent experience 
with the new IP demonstrated that the current inspection approach 
provides an effective means for assuring that licensee procurement and 
dedication 

[[Page 48428]]
activities will prevent the acceptance of counterfeit and fraudulent 
materials.
    Based on the findings of the original inspections, assessments, and 
pilot inspections, the NRC staff believes that problems identified with 
respect to the quality of items dedicated for use in safety-related 
applications are adequately addressed by the requirements of Appendix B 
of Part 50 and are problems of compliance, rather than of inadequate 
rules. The NRC staff and industry worked closely together to improve 
industry efforts in procurement and commercial grade dedication. 
Therefore, there appears to be no need for new regulations addressed to 
the quality of items dedicated for use in safety-related applications.
    Part of the NRC staff's reason for originally proposing rulemaking 
was to reduce the likelihood of counterfeit or fraudulently marketed 
products from being accepted for use. The NRC staff has issued numerous 
information notices regarding specific cases of fraudulent parts being 
found in nuclear facilities and guidance on how to detect them. The NRC 
staff has also issued two generic letters presenting information 
regarding procurement program improvements to help prevent the 
acceptance and use of counterfeit or fraudulently marketed products. 
This issue is also addressed as part of the NUMARC Comprehensive 
Procurement Initiative.
    Finally, the Commission issued a rule change to 10 CFR Part 50 
(Sec. 50.5, Deliberate misconduct) that gives the NRC staff an 
additional regulatory tool to pursue cases in which a licensee 
contractor or subcontractor has deliberately provided material, goods, 
or services that causes or may cause the licensee to be in violation of 
a rule. A supplier providing counterfeit and/or substandard materials 
to be used in safety-related applications is subject to that rule. 
Therefore, additional rulemaking to specifically address fraudulent 
parts appears unnecessary.
    For these reasons, the Commission has concluded that the nuclear 
industry has made significant progress toward improving its procurement 
and commercial grade dedication programs and believes that problems 
identified with respect to the quality of items dedicated for use in 
safety-related applications are adequately addressed by the 
requirements of 10 CFR Part 50, Appendix B. Therefore, there appears to 
be no need for new regulations addressed to the quality of items 
dedicated for use in safety-related applications. Accordingly, the 
Commission is withdrawing the ANPR.

    Dated at Rockville, Maryland, this 8th day of September, 1995.

    For the Nuclear Regulatory Commission.
James M. Taylor,
Executive Director for Operations.
[FR Doc. 95-23178 Filed 9-18-95; 8:45 am]
BILLING CODE 7590-01-P