[Federal Register Volume 64, Number 199 (Friday, October 15, 1999)]
[Notices]
[Page 56129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26701]



  Federal Register / Vol. 64, No. 199 Friday, October 15, 1999 / 
Notices  

[[Page 56129]]



NUCLEAR REGULATORY COMMISSION

[NUREG-1600, Rev. 1]


NRC Enforcement Policy; Enforcement Action Against Nonlicensees 
Under 10 CFR Part 72

AGENCY: Nuclear Regulatory Commission.

ACTION: Policy statement; revision.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is publishing a 
revision to its Enforcement Policy (NUREG-1600, Rev.1, ``General 
Statement of Policy and Procedure for NRC Enforcement Actions'') to 
clarify that enforcement action may be taken against nonlicensees for 
violations of 10 CFR part 72.

DATES: This action is effective October 15, 1999, while comments are 
being received. Submit comments on or before November 29, 1999.

ADDRESSES: Submit written comments to: David L. Meyer, Chief, Rules and 
Directives Branch, Division of Administrative Services, Office of 
Administration, Mail Stop: T6D59, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555. Hand deliver comments to: 11555 Rockville Pike, 
Rockville, Maryland, between 7:30 am and 4:15 pm, Federal workdays. 
Copies of comments received may be examined at the NRC Public Document 
Room, 2120 L Street, NW (Lower Level), Washington, DC.

FOR FURTHER INFORMATION CONTACT: Richard W. Borchardt, Director, Office 
of Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 
20555, (301) 415-2741.

SUPPLEMENTARY INFORMATION: The Commission's ``General Statement of 
Policy and Procedure for NRC Enforcement Actions'' (Enforcement Policy 
or Policy) (63 FR 26630, May 13, 1998) primarily addresses violations 
by licensees and certain nonlicensed persons, including certificate 
holders, as discussed further in footnote 3 to section I, Introduction 
and Purpose, and in section X, Enforcement Action Against Nonlicensees.
    In 10 CFR part 72 of the NRC's regulations addresses licensing 
requirements for the independent storage of spent nuclear fuel and 
high-level radioactive waste. Over the past two years, the Commission 
has observed problems with the performance of several certificate 
holders and their contractors and subcontractors in the manufacture of 
spent fuel storage casks. The Commission has concluded that additional 
enforcement sanctions; e.g., issuance of Notices of Violations (NOVs) 
and orders, are required to address the performance problems which have 
occurred in the spent fuel storage industry. Also, concurrent with 
publication of this change to the Enforcement Policy, the Commission is 
amending part 72 to expand its applicability to holders of, and 
applicants for, Certificates of Compliance (CoCs). While CoCs are 
legally binding documents, certificate holders or applicants for a CoC 
have not clearly been brought within the scope of certain part 72 
requirements, and the NRC has not had a clear basis to cite these 
persons for violations of part 72 requirements in the same way it 
treats licensees. When the NRC has identified a failure to comply with 
part 72 requirements by these persons, it has taken administrative 
action by issuing a Notice of Nonconformance (NON) or a Demand for 
Information rather than an NOV. With these changes to part 72, the 
Commission will be in a position to issue NOVs and Orders to 
certificate holders and applicants. While the part 72 changes do not 
apply to contractors and subcontractors certain existing regulations 
provide for enforcement action to be taken against contractors and 
subcontractors, e.g., parts 72.10 and 72.12.
    A Notice of Violation (NOV) is a written notice that sets forth one 
or more violations of a legally binding requirement. The NOV 
effectively conveys to both the person violating the requirement and 
the public that a violation of a legally binding requirement has 
occurred and permits use of graduated severity levels to convey more 
clearly the safety significance of the violation. Therefore, in 
addition to the changes to part 72, the Commission is amending part X 
of the Enforcement Policy, Enforcement Action Against Non-Licensees, to 
make clear that nonlicensees who are subject to specific regulatory 
requirements; e.g., part 72, will be subject to enforcement action, 
including NOVs and orders. The final part 72 rule does not provide 
authority for issuing civil penalties to nonlicensees other than that 
already provided under the Deliberate Misconduct Rule in Sec. 72.12.

Paperwork Reduction Act

    This policy statement does not contain a new or amended information 
collection requirement subject to the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.). Existing requirements were approved by the 
Office of Management and Budget (OMB), approval number 3150-0136. The 
approved information collection requirements contained in this policy 
statement appear in Section VII.C.

Public Protection Notification

    The NRC may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number.

Small Business Regulatory Enforcement Fairness Act

    In accordance with the Small Business Regulatory Enforcement 
Fairness Act of 1996, 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.
    Accordingly, the NRC Enforcement Policy published at 63 FR 26632 is 
amended by revising the last paragraph of section X to read as follows:

General Statement of Policy and Procedure for NRC Enforcement Actions

* * * * *

X. Enforcement Action Against Non-Licensees

* * * * *
    When inspections determine that violations of NRC requirements 
have occurred, or that contractors have failed to fulfill 
contractual commitments (e.g., 10 CFR part 50, appendix B) that 
could adversely affect the quality of a safety significant product 
or service, enforcement action will be taken. Notices of Violation 
and civil penalties will be used, as appropriate, for licensee 
failures to ensure that their contractors have programs that meet 
applicable requirements. Notices of Violation will be issued for 
contractors who violate 10 CFR part 21. Civil penalties will be 
imposed against individual directors or responsible officers of a 
contractor organization who knowingly and consciously fail to 
provide the notice required by 10 CFR 21.21(b)(1). Notices of 
Violation or orders will be used against nonlicensees who are 
subject to the specific requirements of part 72. Notices of 
Nonconformance will be used for contractors who fail to meet 
commitments related to NRC activities but are not in violation of 
specific requirements.
* * * * *
    For the Nuclear Regulatory Commission.

    Dated at Rockville, Maryland, this 5th day of October, 1999.
Andrew L. Bates,
Acting Secretary of the Commission.
[FR Doc. 99-26701 Filed 10-14-99; 8:45 am]
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