[Federal Register Volume 64, Number 119 (Tuesday, June 22, 1999)]
[Rules and Regulations]
[Pages 33178-33184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15793]


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NUCLEAR REGULATORY COMMISSION

10 CFR Part 72

RIN 3150-AF80


Miscellaneous Changes to Licensing Requirements for the 
Independent Storage of Spent Nuclear Fuel and High-Level Radioactive 
Waste

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its 
regulations to correct several inconsistencies and to clarify certain 
sections of its regulations pertaining to the storage of spent fuel and 
high-level radioactive waste. The amendments differentiate the 
requirements for the storage of spent fuel under wet and dry 
conditions, clarify requirements for the content and submission of 
various reports, and specify that quality assurance (QA) records must 
be maintained as permanent records when identified with activities and 
items important to safety. These amendments are necessary to facilitate 
NRC inspections to verify compliance with reporting requirements to 
ensure the protection of public health and safety and the environment.

EFFECTIVE DATE: August 23, 1999.

FOR FURTHER INFORMATION CONTACT: M. L. Au, telephone (301) 415-6181, e-
mail [email protected], of the Office of Nuclear Material Safety and 
Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001.

SUPPLEMENTARY INFORMATION:

Background

    The Commission's licensing requirements for the independent storage 
of spent nuclear fuel and high-level radioactive waste are contained in 
10 CFR part 72. NRC experience in applying Part 72 has indicated that 
certain additions and clarifications to the regulations are necessary. 
The NRC published a proposed rule in the Federal Register on June 9, 
1998 (63 FR 31364).
    When subpart L of part 72 was issued in 1990, the purpose and scope 
of these regulations (i.e., to approve the design of spent fuel storage 
casks and issue a Certificate of Compliance (CoC)) was not clearly 
indicated in Secs. 72.1 and 72.2. Additionally, Sec. 72.2 referred to a 
Federal Interim Storage Program; however, the statutory authorization 
for this program has expired.
    The current regulations contain information in multiple locations 
on where to send part 72 reports and applications to the NRC. These 
requirements were inconsistent and did not ensure that received 
information was properly docketed.
    The current regulations in Sec. 72.44 on reporting annual summaries 
of radioactive effluents released from dry storage casks impose an 
unnecessary regulatory burden on part 72 licensees by requiring 
submittal of these reports on a schedule that is different from that 
required by 10 CFR part 50. Most part 72 licensees are also part 50 
licensees. Consequently, this regulation imposed an unnecessary 
regulatory burden on part 72 licensees.
    The current regulations in Sec. 72.75 on reporting requirements for 
specific events and conditions are inconsistent with the reporting 
requirements for similar reactor-type events contained in Sec. 50.73.
    The current regulations in Secs. 72.122 and 72.124 on 
instrumentation and neutron poison efficacy requirements are unduly 
burdensome when applied to dry storage cask technology. The Commission 
has received nine requests for exemption from these regulations over 
the last three years.
    The current regulations in subpart G (quality assurance (QA) 
requirements) regarding retention of part 72 QA records differ from the 
retention requirements imposed on part 50 license holders. However, 
Sec. 72.140(d) currently allows a part 72 license holder to take credit 
for its part 50 QA program in meeting the requirements of subpart G 
with the result that differing retention requirements are imposed on 
part 72 licensees.

Discussion

    This final rule makes eight clarifying changes to Part 72. These 
changes differentiate the requirements for the storage of spent fuel 
under wet and dry conditions and ensure that necessary information is 
included in reports and that QA records are maintained permanently when 
identified with activities and items important to safety. These reports 
and records are needed to facilitate NRC inspections to verify 
compliance with reporting requirements to ensure protection of public 
health and safety and the environment.
    The following are a group of eight miscellaneous items of changes 
to the regulations:
    1. Modify Secs. 72.1 and 72.2 to include spent fuel storage cask 
and remove superseded information.
    The purpose (Sec. 72.1) and scope (Sec. 72.2) were not modified 
when the Commission amended part 72 on July 18, 1990 (55 FR 29181). 
Part 72 was

[[Page 33179]]

amended to include a process for providing a general license to a 
reactor licensee to store spent fuel in an independent spent fuel 
storage installation (ISFSI) at power reactor sites (subpart K) and a 
process for the approval of spent fuel storage casks (subpart L). 
Although the language in these sections may be read to include the 
general license provisions of subpart K, the approval process for spent 
fuel storage casks in subpart L is not referenced. This rulemaking 
makes the purpose and scope sections complete by specifically 
referencing the subpart L cask approval process. Additionally, this 
rule removes information in the purpose and scope sections, regarding 
the Federal interim storage program, because the statutory 
authorization for the interim storage program has expired (61 FR 35935; 
July 9, 1996).
    2. Change the requirement for making initial and written reports in 
Secs. 72.4 and 72.216.
    The change to Sec. 72.4 provides that, except where otherwise 
specified, all communications and reports are to be addressed to NRC's 
Document Control Desk (DCD) rather than to the Director, Office of 
Nuclear Material Safety and Safeguards (NMSS). Three current 
regulations govern the submission of written reports under part 72 
(Secs. 72.75, 72.216(b), and 50.72(b)(2)(vii)(B), which is referenced 
in Sec. 72.216(a)). Under Sec. 72.75(d)(2), a report is sent to the 
DCD. However Secs. 50.72(b)(2)(vii)(B) and 72.216(b) indicate that the 
report be sent, as instructed in Sec. 72.4, to the Director, NMSS. To 
achieve consistency, Sec. 72.4 is revised to instruct that reports 
shall be sent to the DCD. Licensing correspondence forwarded to the 
NRC's DCD ensures proper docketing and distribution. Also, 
Sec. 72.216(c) is revised to correct an error in the paragraph 
designation. The current regulation Sec. 72.75(a)(2) and (3) is revised 
to read Sec. 72.75(b)(2) and (3).
    3. Change the requirement for submittal of the dry cask storage 
effluent report in Sec. 72.44.
    Currently, Sec. 72.44(d)(3) requires that a dry cask storage 
effluent report be submitted to the appropriate NRC regional office 
within the first 60 days of each year. Section 50.36a(a)(2) requires 
that a similar report be submitted to the Commission once each year 
specifying liquid and gaseous effluents from reactor operations.
    The revision permits reactor licensees, who also possess licenses 
for ISFSIs, to submit their dry cask storage effluent report to the NRC 
once each year, at the same time as the effluent report from their 
reactor operations. The dry cask storage effluent report would be 
submitted within 60 days after the end of the 12-month monitoring 
period. However, after the effective date of this final rule, the 
licensee may submit the dry cask report covering a shorter period of 
time to synchronize the reporting schedule with the annual reactor 
effluent report.
    4. Clarify the reporting requirements for specific events and 
conditions in Sec. 72.75.
    Section 72.75 contains reporting requirements for specific events 
and conditions, including the requirement in Sec. 72.75(d)(2) for a 
follow-up written report for certain types of emergency and non-
emergency notifications. This rule clarifies the specific information 
required to meet the intent of the existing reporting requirement. A 
comparable reporting requirement already exists for similar reactor 
type events in Sec. 50.73(b). This rule will provide greater 
consistency between parts 50 and 72, on event notification 
requirements. Since the reporting requirement already exists, a minimal 
increase in the licensee's reporting burden will occur by clarifying 
the format and content.
    5. Clarify the requirement for capability for continuous monitoring 
of confinement storage systems in Sec. 72.122(h)(4).
    Currently, Sec. 72.122(h)(4) requires the capability for continuous 
monitoring of storage confinement systems. The meaning of 
``continuous'' is open to interpretation and does not differentiate 
between monitoring requirements for wet and dry storage of spent fuel. 
Wet storage requires active heat removal systems which involve a 
monitoring process that is ``continuous'' in the sense of being 
uninterrupted. Because of the passive nature of dry storage, active 
heat removal systems are not needed and monitoring can be less 
frequent. This rule clarifies that the frequency of monitoring can be 
different for wet and dry storage systems.
    6. Clarify the requirement specifying instrument and control 
systems for monitoring dry spent fuel storage in Sec. 72.122(i).
    Section 72.122(i) requires that instrumentation and control systems 
be provided to monitor systems important to safety, but does not 
distinguish between wet and dry spent fuel storage systems. For wet 
storage, systems are required to monitor and control heat removal. For 
dry storage, passive heat removal is used and a control system is not 
required. Instrumentation systems for dry spent fuel storage casks must 
be provided in accordance with cask design requirements to monitor 
conditions that are important to safety over anticipated ranges for 
normal conditions and off-normal conditions. This rule clarifies that 
control systems are not needed for dry spent fuel storage systems.
    7. Clarify the requirement for dry spent fuel storage casks on 
methods of criticality control in Sec. 72.124(b).
    Section 72.124(b) requires specific methods for criticality 
control, including the requirement that where solid neutron absorbing 
materials are used, the design must provide for positive means to 
verify their continued efficacy. This requirement is appropriate for 
wet spent fuel storage systems, but not for dry spent fuel storage 
systems. The potentially corrosive environment under wet storage 
conditions is not present in dry storage systems, because an inert 
environment is maintained. Under these conditions, there is no 
mechanism to significantly degrade the neutron absorbing materials. In 
addition, the dry spent fuel storage casks are sealed and it is not 
practical nor desirable to penetrate the integrity of the cask to make 
the measurements verifying the efficacy of neutron absorbing materials. 
This rule clarifies that positive means for verifying the continued 
efficacy of solid neutron absorbing materials are not required for dry 
storage systems, when the continued efficacy may be confirmed by 
demonstration or analysis before use.
    8. Clarify the requirements in Sec. 72.140(d) concerning the 
previously approved QA program in conformance with appendix B of 10 CFR 
part 50.
    Section 72.174 specifies that QA records must be maintained by or 
under the control of the licensee until the Commission terminates the 
license. However, Sec. 72.140(d) allows a holder of a part 50 license 
to use its approved part 50, appendix B, QA program in place of the 
part 72 QA requirements, including the requirement for QA records. 
Appendix B allows the licensee to determine what records will be 
considered permanent records. Thus, part 50 licensees using an appendix 
B, QA program could choose not to make permanent all records generated 
in support of part 72 activities. This rule requires these licensees to 
follow the part 72 requirement to maintain QA records until termination 
of the part 72 license.

Summary of Public Comments on the Proposed Rule

    The NRC received four letters containing nineteen comments 
responding to the proposed rule published in the Federal Register on 
June 9, 1998 (63 FR 31364). These

[[Page 33180]]

comments were considered in the development of the final rule. The 
primary objective of this rulemaking is to clarify requirements for 
certain sections of the regulations. The amendments differentiate the 
requirements for the storage of spent fuel under wet and dry 
conditions, clarify requirements for the content and submission of 
various reports, and specify that QA records must be maintained as 
permanent records. Copies of the public comments are available for 
review in the NRC Public Document Room, 2120 L Street, NW (Lower 
Level), Washington, DC 20003-1527.
    Four comment letters were received in response to the proposed 
rule. One was from the Department of Energy (DOE) Idaho Operations 
Office, one was from a private enterprise, and two were from nuclear 
power plant licensees. All commenters were supportive of the proposed 
rule.

Public Comments

    1. Comment: One commenter believed that to ensure consistency with 
existing regulations in part 72 and with another NRC proposed 
rulemaking, ``Expand Applicability of Regulations to Holders of, and 
Applicants for, Certificates of Compliance and Their Contractors and 
Subcontractors'' (63 FR 39526; July 23, 1998), which proposes to define 
a Certificate of Compliance (CoC) as a certificate approving the 
``design'' of a spent fuel storage cask (as opposed to approving a 
cask), changes should be made to Secs. 72.1 and 72.2(f).
    Response: The Commission agrees with this comment. Changes have 
been made to Secs. 72.1 and 72.2(f) to reflect the fact that 
Certificates of Compliance are issued to approve spent fuel storage 
cask designs rather than individual casks. In addition, in 
Sec. 72.2(f), the phrase ``in accordance with the requirements of this 
part as stated in Sec. 72.236'', which appears in the proposed rule, 
has been changed to ``in accordance with the requirements of subpart L 
of this part'' to reflect the fact that all the requirements of subpart 
L pertain to the issuance of certificates of compliance.
    2. Comment: One commenter noted that the proposed revision to 
Sec. 72.4 removes existing language which provides the street address 
for NRC's headquarters office. The commenter noted that this 
information is necessary for persons who wish to either mail 
communications to the NRC using a private courier service (e.g., FedEx 
or UPS) or deliver their communication in person. Additionally, 
Sec. 72.4 did not provide any guidance for instances in which the due 
date for a report or written communication falls on a weekend or 
holiday. In that regard the language in Sec. 50.4(e) should be used as 
an example.
    Response: The Commission agrees with this comment. The current 
language in Sec. 72.4 containing the street address to be used for 
personal delivery is being retained. In addition, the suggested changes 
have been made for reports due on the weekend or a holiday. The Public 
Docket Room at 2120 L Street NW, Washington, DC, has been removed from 
the address listing because it is no longer receiving mail deliveries, 
as all mail is now delivered to NRC Headquarters.
    3. Comment: For Sec. 72.44(d)(3), one commenter was concerned that 
allowing flexibility in the timing for submitting the annual report 
could create ``ratcheting'' of the due date and result in the submittal 
of each report earlier than required to avoid lateness. The change 
proposed by the commenter to require that each report be submitted 
within 60 days from the end of each monitoring period and not to exceed 
the 12-month reporting interval would ensure timely submittal of these 
reports.
    Response: The Commission agrees that the language in the proposed 
rule needs clarification. The Commission has added language in the 
final rule to clarify that the report must be submitted within 60 days 
after the end of the 12-month monitoring period. This change will allow 
flexibility in timing of submitting the annual report without resulting 
in the submittal of each report earlier than required to avoid 
lateness.
    4. Comment: Two commenters noted that current Sec. 72.75(d)(2) 
requires a written follow-up report when an event or condition requires 
an emergency notification under Sec. 72.75(a) or a non-emergency four-
hour report under Sec. 72.75(b), but that a written follow-up report is 
not required when the event or condition requires a non-emergency 24-
hour report under Sec. 72.75(c). The second commenter suggested that 
the NRC clarify its expectation for Part 72 licensees regarding the use 
of NRC Form 366 and the format and guidance contained in NUREG 1022, 
Revision 1, ``Events Reporting Guidelines 10 CFR 50.72 and 50.73.''
    Response: The Commission agrees with the comment on the first issue 
and the suggested change has been made to require a written follow-up 
report after a 24-hour oral notification. The written report is 
required for documentation for future use and inspections. With respect 
to the second issue, the Commission believes that use of NRC Form 366 
and the guidance contained in NUREG-1022, Rev. 1, is an acceptable 
method for preparing written event reports; however, licensees are not 
required to follow this method if the written report contains all the 
information required by Sec. 72.75(d)(2). Therefore, no change has been 
made to address the second issue.
    5. Comment: One commenter recommended not specifying the address 
and addresses in different sections of the regulations where licensees 
submit reports to NRC. Instead, the commenter recommended the use of 
one initial location to indicate where reports are submitted to 
simplify the regulations and ensure a consistent approach. Further, the 
references in part 72 to the location where persons are to submit 
information to the NRC should use the phrase ``in accordance with 
Sec. 72.4'' instead of providing a specific address in each individual 
section. This approach would be consistent with the approach taken in 
other sections in part 72 as well as part 50. This would allow future 
changes to the NRC receiving address to involve fewer sections of the 
regulations. The commenter identified Secs. 72.44(d)(3), 72.75(d)(2) 
and 72.140(d) as sections where this change should be made.
    Response: The Commission agrees and has made the suggested changes 
in the final rule.
    6. Comment: One commenter noted that the proposed amendment to 
Sec. 72.75 appears to be inconsistent with the advance notice of 
proposed rulemaking (ANPR) for 10 CFR 50.73 (63 FR 39522; July 23, 
1998) concerning the format and content for reporting reactor events 
and conditions.
    Response: An objective of the Sec. 72.75 rulemaking was to make the 
part 72 independent spent fuel storage installations (ISFSI) report 
format and content requirements consistent with the current reactor 
requirements in Sec. 50.73. The final proposed reporting requirements 
for specific events and conditions in Sec. 72.75 are consistent with 
the current requirements in Sec. 50.73. If the reporting requirements 
in Sec. 50.73 should change, the staff will consider whether conforming 
changes to Sec. 72.75 would be appropriate.
    7. Comment: One commenter believed that the retention of QA records 
until termination of the license for part 72 licensees, and the 
addition of specific information to meet the existing reporting 
requirement, do not comply with the Backfit Rule. The commenter 
indicates that both of these amendments will introduce changes to 
licensee procedures which are not justified by the substantial increase 
in protection standard and asserts that the NRC appears to be applying 
a new test; i.e.,

[[Page 33181]]

whether the changes are sufficiently trivial to ignore the Backfit 
Rule.
    Response: Under Sec. 72.62, ``backfitting'' includes the 
modification, after the license has been issued, of procedures or 
organizations required to operate an ISFSI or MRS. This backfitting 
provision is very similar to the Backfit Rule in Sec. 50.109. The 
Commission has determined that reporting and record keeping 
requirements are not considered backfits even though they may result in 
changes to procedures. If the reporting or record keeping requirements 
had to meet the standards for a backfit analysis, the Commission would 
have to find that the information would substantially increase public 
health or safety or common defense and security without knowing the 
results of the request. In addition, the existence or non-existence of 
a record or report usually has no independent safety significance as 
compared to actions taken by the licensee or NRC as a result of the 
information contained in the record or report. It is this resulting 
action that affects public health and safety or the common defense or 
security that should be measured under the backfit standard and not the 
method for obtaining or maintaining the information.
    Nevertheless, the Commission also recognizes that imposing reports 
or record keeping requirements may have a significant impact on a 
licensee's resources. The standard for authorizing reporting or record 
keeping requirements for NRC licensees that is contained in the Code of 
Federal Regulations should be the same standard as the regulations 
requiring the providing of information under 10 CFR 50.54(f). Namely, 
before the staff either changes existing requirements or issues new 
requirements affecting reporting or record keeping, a written analysis 
should be prepared that contains (a) a statement that describes the 
need for the information in terms of the potential safety benefit and, 
if appropriate, a discussion of possible alternatives and (b) the 
licensee actions required and the cost to develop a response to the 
information request. In addition, the imposition of the new or modified 
reporting or record keeping requirement should be approved by the 
appropriate level of senior management (namely the Executive Director 
for Operations or his or her designee) or the Commission itself in the 
case of rulemaking. For rulemaking, the analysis justifying either 
modifications to existing or new reporting and record keeping 
requirements shall be contained in the regulatory analysis. The 
regulatory analysis section of this rulemaking package adequately 
addresses the Commission's standards for this specific record keeping 
requirement.
    8. Comment: One commenter recommended that the proposed change to 
Sec. 72.140(d) should also include QA programs which satisfy the 
requirements of subpart H of 10 CFR part 71. The commenter believes 
that QA requirements in part 71 are equivalent to the QA requirements 
in parts 50 and 72.
    Response: While the staff agrees that the QA program requirements 
in parts 50, 71, and 72 are equivalent, this comment is beyond the 
scope of this rulemaking. This issue is being considered in a separate 
rulemaking.
    9. Comment: One commenter recommended that the wording in 
Secs. 72.75(d)(2)(ii)(5) and (6) be revised to change the word 
``plant'' to ``facility'' to be consistent with wording in 
Sec. 72.75(d)(2(ii).
    Response: The Commission agrees with this comment and the change 
has been made.
    10. Comment: One commenter recommended adding ``spent fuel 
storage'' in the second and third sentences to better describe ``cask 
design requirements'' in Sec. 72.122(h)(4).
    Response: The Commission agrees with this comment and the change 
has been made.
    11. Comment: One commenter recommended replacing the terms 
``systems'' and ``facility'' in the third sentence of Sec. 72.124(b) 
with the term ``cask''.
    Response: The Commission is not adopting this comment. The term 
``facility'' includes casks but is not limited to casks. It is possible 
that different noncask design configurations could be proposed. In 
reviewing this comment, the staff recognized that a mistake had been 
made in the proposed rule language in this section. The proposed rule 
stated ``demonstration and analysis'', this has been corrected to read 
``demonstration or analysis.''
    12. Comment: One commenter recommended that the term 
``notification'' be used in place of the term ``initial report'' in the 
first sentence of Sec. 72.75(d)(2) to help distinguish between verbal 
and written communications.
    Response: The Commission agrees with the comment and the change has 
been made.
    13. Comment: One commenter stated that there is no provision in 
part 72 for changes to NRC approved quality assurance programs 
comparable to the part 50 provision at Sec. 50.54(a)(3) unless a 
licensee has a Sec. 72.140(d) QA program incorporating an approved part 
50 program. The commenter requests that a program change provision 
similar to those found in Sec. 72.44(e) and 72.44(f) be provided to 
allow for changes to a QA program without NRC approval in defined 
circumstances.
    Response: The proposed recommendation is beyond the scope of this 
rulemaking action.
    14. Comment: DOE requested that Sec. 72.80(b) be clarified to 
exclude DOE from the requirement to submit a copy of its annual 
financial report.
    Response: The Commission agrees with the comment and Sec. 72.22(e) 
has been revised to exclude DOE from financial assurance requirements.

Specific Changes in Regulatory Text

    The following section is provided to assist the reader regarding 
the specific changes made to each section or paragraph in 10 CFR part 
72. For clarity and content, a substantial portion of a particular 
section or paragraph may be repeated, while only a minor change is 
being made. This approach will allow the reader to effectively review 
the specific changes without cross-reference to existing material that 
has been included for content, but has not been significantly changed.
    Sections 72.1 (Purpose) and 72.2 (Scope): These sections are 
revised to remove superseded information regarding the Federal Interim 
Storage Program that has expired and to indicate that subpart L 
provides requirements, procedures, and criteria for approval of spent 
fuel storage cask designs and issuance of a Certificate of Compliance.
    Sections 72.4 and 72.216: These revisions specify that all 
communications and reports are addressed to the NRC's Document Control 
Desk.
    Section 72.44: This revision permits reactor licensees, who also 
possess licenses for ISFSIs, to submit dry cask storage effluent report 
once each year at the same time as the effluent report for reactor 
operations, instead of submitting dry cask storage effluent report 
within 60 days of the beginning of each year.
    Section 72.75: This change incorporates specific format and content 
information requirements comparable to reporting requirements that 
already exist for similar reactor type events in Sec. 50.73(b).
    Section 72.122(h)(4): This revision is made to state that periodic 
monitoring instead of continuous monitoring is appropriate for dry 
spent fuel storage.
    Section 72.122(i): This section specifies the differences between 
wet pool spent fuel storage instrumentation and control systems and dry 
spent fuel storage cask instrumentation systems.

[[Page 33182]]

    Section 72.124(b): This change is made to state that a positive 
means for verifying the continued efficacy of solid neutron absorbing 
materials is not required for dry storage systems, when the continued 
efficacy is confirmed by demonstration or analysis before use.
    Section 72.140(d): This change requires all licensees, including a 
holder of a part 50 license using its approved part 50, appendix B, QA 
program, to follow the requirement in Sec. 72.174 to maintain part 72 
QA records until termination of the part 72 license.

Compatibility of Agreement State Regulations

    Under the ``Policy Statement on Adequacy and Compatibility of 
Agreement State Programs'' approved by the Commission on June 30, 1997, 
and published in the Federal Register (62 FR 46517, September 3, 1997), 
this rule is classified as compatibility Category ``NRC.'' 
Compatibility is not required for Category ``NRC'' regulations. The NRC 
program elements in this category are those that relate directly to 
areas of regulation reserved to the NRC by the AEA or the provisions of 
Title 10 of the Code of Federal Regulations, and although an Agreement 
State may not adopt program elements reserved to NRC, it may wish to 
inform its licensees of certain requirements via a mechanism that is 
consistent with the particular State's administrative procedure laws, 
but does not confer regulatory authority on the State.

Environmental Impact: Categorical Exclusion

    The NRC has determined that Items 1, 5, 6, and 7 of this rule are 
the types of action described as a categorical exclusion in 10 CFR 
51.22(c)(2) and Items 2, 3, 4 and 8 of this rule are the types of 
action described as a categorical exclusion in 10 CFR 51.22(c)(3). 
Therefore, neither an environmental impact statement nor an 
environmental assessment has been prepared for this regulation.

Paperwork Reduction Act Statement

    This final rule increases the burden on licensees by increasing a 
record retention period from 3 years to life. The public burden for 
this information collection is estimated to average 38 hours per 
request. Because the burden for this information collection is 
insignificant, Office of Management and Budget (OMB) clearance is not 
required. Existing requirements were approved by the Office of 
Management and Budget, approval number 3150-0132.

Public Protection Notification

    If a means used to impose information collection does not display a 
currently valid OMB control number, the NRC may not conduct or sponsor, 
and a person is not required to respond, to the information collection.

Regulatory Analysis

    The NRC has prepared a regulatory analysis on this regulation. The 
analysis examines the costs and benefits of the alternatives considered 
by the NRC and concludes that the final rule results in an incremental 
improvement in public health and safety that outweighs the small 
incremental cost associated with this proposed change. The analysis is 
available for inspection in the NRC Public Document Room, 2120 L 
Street, NW (Lower Level), Washington, DC. Single copies of the analysis 
may be obtained from M. L. Au, Office of Nuclear Material Safety and 
Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, telephone (301) 415-6181; or e-mail [email protected].

Regulatory Flexibility Certification

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 
605(b)), the Commission certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule affects only the operators of independent spent fuel storage 
installations (ISFSI). These companies do not fall within the scope of 
the definition of ``small entities'' set forth in the Regulatory 
Flexibility Act or the Small Business Size Standards set out in 
regulations issued by the Small Business Administration at 13 CFR part 
121.

Criminal Penalties

    For the purpose of section 223 of the Atomic Energy Act of 1954 
(AEA), the Commission is issuing the final rule to amend 10 CFR part 
72; 72.44, 72.75, 72.140, and 72.216 under one or more of section 
161(b), (i), of (o) of AEA. Willful violation of the rule will be 
subject to criminal enforcement.

Backfit Analysis

    The NRC has determined that the backfit rule, 10 CFR part 72.62, 
does not apply to this rule, because these amendments do not involve 
any provisions that would impose backfits as defined in 10 CFR part 
72.62(a). Therefore, a backfit analysis is not required for this rule.

Small Business Regulatory Enforcement Fairness Act

    In accordance with the Regulatory Enforcement Fairness Act of 1966, 
the NRC has determined that this action is not a major rule and has 
verified this determination with the Office of Information and 
Regulatory Affairs of OMB.

List of Subjects in 10 CFR Part 72

    Criminal penalties, Manpower training programs, Nuclear materials, 
Occupational safety and health, Reporting and recordkeeping 
requirements, Security measures, 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 part 72.

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

    1. 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. 7902, 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, 2224 (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).

    2. Section 72.1 is revised to read as follows:


Sec. 72.1  Purpose.

    The regulations in this part establish requirements, procedures, 
and criteria for the issuance of licenses to receive, transfer, and 
possess power reactor

[[Page 33183]]

spent fuel and other radioactive materials associated with spent fuel 
storage in an independent spent fuel storage installation (ISFSI) and 
the terms and conditions under which the Commission will issue these 
licenses. The regulations in this part also establish requirements, 
procedures, and criteria for the issuance of licenses to the Department 
of Energy (DOE) to receive, transfer, package, and possess power 
reactor spent fuel, high-level radioactive waste, and other radioactive 
materials associated with the spent fuel and high-level radioactive 
waste storage, in a monitored retrievable storage installation (MRS). 
The regulations in this part also establish requirements, procedures, 
and criteria for the issuance of Certificates of Compliance approving 
spent fuel storage cask designs.
    3. In Sec. 72.2, paragraph (e) is removed, paragraph (f) is 
redesignated as paragraph (e) and a new paragraph (f) is added to read 
as follows:


Sec. 72.2  Scope.

* * * * *
    (f) Certificates of Compliance approving spent fuel storage cask 
designs shall be issued in accordance with the requirements of subpart 
L of this part.
    4. Section 72.4 is revised to read as follows:


Sec. 72.4  Communications.

    Except where otherwise specified, all communications and reports 
concerning the regulations in this part and applications filed under 
them should be addressed to the U.S. Nuclear Regulatory Commission, 
ATTN: Document Control Desk, Washington, DC 20555-0001. Written 
communications, reports, and applications may be delivered in person to 
the Nuclear Regulatory Commission at One White Flint North, 11555 
Rockville Pike, Rockville, MD 20852-2738 between 7:30 am and 4:15 pm 
eastern time. If the submittal deadline date falls on a Saturday, or 
Sunday, or a Federal holiday, the next Federal working day becomes the 
official due date.
    5. In Sec. 72.44, paragraph (d)(3) is revised to read as follows:


Sec. 72.44  License conditions.

* * * * *
    (d) * * *
    (3) An annual report be submitted to the Commission in accordance 
with Sec. 72.4, specifying the quantity of each of the principal 
radionuclides released to the environment in liquid and in gaseous 
effluents during the previous 12 months of operation and such other 
information as may be required by the Commission to estimate maximum 
potential radiation dose commitment to the public resulting from 
effluent releases. On the basis of this report and any additional 
information that the Commission may obtain from the licensee or others, 
the Commission may from time to time require the licensee to take such 
action as the Commission deems appropriate. The report must be 
submitted within 60 days after the end of the 12-month monitoring 
period.
* * * * *
    6. In Sec. 72.75, paragraph (d)(2) is revised, and paragraphs 
(d)(3), (d)(4), (d)(5), (d)(6) and (d)(7) are added to read as follows:


Sec. 72.75  Reporting requirements for specific events and conditions.

 * * * * *
    (d) * * *
    (2) Written report. Each licensee who makes an initial notification 
required by paragraphs (a), (b), or (c) of this section also shall 
submit a written follow-up report within 30 days of the initial 
notification. Written reports prepared pursuant to other regulations 
may be submitted to fulfill this requirement if the reports contain all 
the necessary information and the appropriate distribution is made. 
These written reports must be sent to the Commission, in accordance 
with Sec. 72.4. These reports must include the following:
    (i) A brief abstract describing the major occurrences during the 
event, including all component or system failures that contributed to 
the event and significant corrective action taken or planned to prevent 
recurrence;
    (ii) A clear, specific, narrative description of the event that 
occurred so that knowledgeable readers conversant with the design of 
ISFSI or MRS, but not familiar with the details of a particular 
facility, can understand the complete event. The narrative description 
must include the following specific information as appropriate for the 
particular event:
    (A) ISFSI or MRS operating conditions before the event;
    (B) Status of structures, components, or systems that were 
inoperable at the start of the event and that contributed to the event;
    (C) Dates and approximate times of occurrences;
    (D) The cause of each component or system failure or personnel 
error, if known;
    (E) The failure mode, mechanism, and effect of each failed 
component, if known;
    (F) A list of systems or secondary functions that were also 
affected for failures of components with multiple functions;
    (G) For wet spent fuel storage systems only, after failure that 
rendered a train of a safety system inoperable, an estimate of the 
elapsed time from the discovery of the failure until the train was 
returned to service;
    (H) The method of discovery of each component or system failure or 
procedural error;
    (I)(1) Operator actions that affected the course of the event, 
including operator errors, procedural deficiencies, or both, that 
contributed to the event;
    (2) For each personnel error, the licensee shall discuss:
    (i) Whether the error was a cognitive error (e.g., failure to 
recognize the actual facility condition, failure to realize which 
systems should be functioning, failure to recognize the true nature of 
the event) or a procedural error;
    (ii) Whether the error was contrary to an approved procedure, was a 
direct result of an error in an approved procedure, or was associated 
with an activity or task that was not covered by an approved procedure;
    (iii) Any unusual characteristics of the work location (e.g., heat, 
noise) that directly contributed to the error; and
    (iv) The type of personnel involved (e.g., contractor personnel, 
utility-licensed operator, utility nonlicensed operator, other utility 
personnel);
    (J) Automatically and manually initiated safety system responses 
(wet spent fuel storage systems only);
    (K) The manufacturer and model number (or other identification) of 
each component that failed during the event;
    (L) The quantities and chemical and physical forms of the spent 
fuel or HLW involved;
    (3) An assessment of the safety consequences and implications of 
the event. This assessment must include the availability of other 
systems or components that could have performed the same function as 
the components and systems that failed during the event;
    (4) A description of any corrective actions planned as a result of 
the event, including those to reduce the probability of similar events 
occurring in the future;
    (5) Reference to any previous similar events at the same facility 
that are known to the licensee;
    (6) The name and telephone number of a person within the licensee's 
organization who is knowledgeable about the event and can provide 
additional information concerning the event and the facililty's 
characteristics;
    (7) The extent of exposure of individuals to radiation or to 
radioactive materials without identification of individuals by name.

[[Page 33184]]

    7. In Sec. 72.122, paragraphs (h)(4) and (i) are revised to read as 
follows:


Sec. 72.122  Overall requirements.

 * * * * *
    (h) * * *
    (4) Storage confinement systems must have the capability for 
continuous monitoring in a manner such that the licensee will be able 
to determine when corrective action needs to be taken to maintain safe 
storage conditions. For dry spent fuel storage, periodic monitoring is 
sufficient provided that periodic monitoring is consistent with the dry 
spent fuel storage cask design requirements. The monitoring period must 
be based upon the spent fuel storage cask design requirements.
 * * * * *
    (i) Instrumentation and control systems. Instrumentation and 
control systems for wet spent fuel storage must be provided to monitor 
systems that are important to safety over anticipated ranges for normal 
operation and off-normal operation. Those instruments and control 
systems that must remain operational under accident conditions must be 
identified in the Safety Analysis Report. Instrumentation systems for 
dry spent fuel storage casks must be provided in accordance with cask 
design requirements to monitor conditions that are important to safety 
over anticipated ranges for normal conditions and off-normal 
conditions. Systems that are required under accident conditions must be 
identified in the Safety Analysis Report.
 * * * * *
    8. In Sec. 72.124, paragraph (b) is revised to read as follows:


Sec. 72.124  Criteria for nuclear criticality safety.

 * * * * *
    (b) Methods of criticality control. When practicable, the design of 
an ISFSI or MRS must be based on favorable geometry, permanently fixed 
neutron absorbing materials (poisons), or both. Where solid neutron 
absorbing materials are used, the design must provide for positive 
means of verifying their continued efficacy. For dry spent fuel storage 
systems, the continued efficacy may be confirmed by a demonstration or 
analysis before use, showing that significant degradation of the 
neutron absorbing materials cannot occur over the life of the facility.
 * * * * *
    9. In Sec. 72.140, paragraph (d) is revised to read as follows:


Sec. 72.140  Quality assurance requirements.

 * * * * *
    (d) Previously approved programs. A Commission-approved quality 
assurance program which satisfies the applicable criteria of appendix B 
to part 50 of this chapter and which is established, maintained, and 
executed with regard to an ISFSI will be accepted as satisfying the 
requirements of paragraph (b) of this section, except that a licensee 
using an appendix B quality assurance program also shall meet the 
requirement of Sec. 72.174 for recordkeeping. Prior to initial use, the 
licensee shall notify the Commission, in accordance with Sec. 72.4, of 
its intent to apply its previously approved appendix B quality 
assurance program to ISFSI activities. The licensee shall identify the 
program by date of submittal to the Commission, docket number, and date 
of Commission approval.
    10. In Sec. 72.216, paragraph (c) is revised to read as follows:


Sec. 72.216  Reports.

 * * * * *
    (c) The general licensee shall make initial and written reports in 
accordance with Secs. 72.74 and 72.75, except for the events specified 
by Sec. 72.75(b)(2) and (3) for which the initial reports will be made 
under paragraph (a) of this section.

    Dated at Rockville, Maryland, this 15th day of June, 1999.
    For the Nuclear Regulatory Commission.
Annette L. Vietti-Cook,
Secretary of the Commission.
[FR Doc. 99-15793 Filed 6-21-99; 8:45 am]
BILLING CODE 7590-01-P