[Federal Register Volume 67, Number 107 (Tuesday, June 4, 2002)]
[Proposed Rules]
[Pages 38427-38431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-13903]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 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.
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  Federal Register / Vol. 67, No. 107 / Tuesday, June 4, 2002 / 
Proposed Rules  

[[Page 38427]]



NUCLEAR REGULATORY COMMISSION

10 CFR Part 50

RIN 3150-AG84


Financial Information Requirements for Applications To Renew or 
Extend the Term of an Operating License for a Power Reactor

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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

SUMMARY: The Nuclear Regulatory Commission (NRC) proposes to amend its 
regulations to remove the requirement that non-electric-utility power 
reactor licensees submit financial qualifications information in their 
license renewal applications, and to add a new requirement that 
licensees of nuclear power reactors who are electric utilities 
reorganizing as non-electric-utility entities without a license 
transfer must notify the NRC and submit information on their financial 
qualifications. The proposed rule would reduce unnecessary regulatory 
burden for licensees seeking renewal of operating licenses, and ensure 
that licensees reorganizing as non-electric-utility entities continue 
to be financially qualified to operate their facilities and maintain 
the public health and safety.

DATES: The comment period expires on August 19, 2002. Comments received 
after this date will be considered if it is practical to do so, but the 
Commission is only able to ensure consideration of comments received on 
or before this date.

ADDRESSES: Mail comments to Secretary, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001, Attention: Rulemaking and 
Adjudications Staff. Deliver comments to 11555 Rockville Pike, 
Rockville, Maryland, between 7:30 a.m. and 4:15 p.m. on Federal 
workdays.
    You also may provide comments via the NRC's interactive rulemaking 
Website at (http://ruleforum.llnl.gov). This site provides the 
capability to upload comments as files (any format), if your Web 
browser supports that function. For information about the interactive 
rulemaking Website, contact Ms. Carol Gallagher at 301-415-5905 or e-
mail [email protected].
    Documents may be examined, and/or copied for a fee, at the NRC's 
Public Document Room, located at One White Flint North, 11555 Rockville 
Pike (first floor), Rockville, Maryland. Publicly available records 
will be accessible electronically from the Public Electronic Reading 
Room on the NRC Website at www.nrc.gov.

FOR FURTHER INFORMATION CONTACT: George J. Mencinsky, Office of Nuclear 
Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001, telephone (301) 415-3093, e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 182.a. of the Atomic Energy Act of 1954, as amended (AEA), 
provides that ``each application for a license * * * shall specifically 
state such information as the Commission, by rule or regulation, may 
determine to be necessary to decide such of the technical and financial 
qualifications of the applicant * * * as the Commission may deem 
appropriate for the license.'' The NRC's regulations governing 
financial qualifications reviews of applications for licenses to 
construct or operate nuclear power plants are provided in 10 CFR 
50.33(f).
    Section 50.33(f)(2) currently requires all applicants for initial 
operating licenses and renewal of operating licenses to submit 
financial qualifications information, except applicants for and holders 
of operating licenses for nuclear power reactors that are electric 
utilities. This provision, adopted on September 12, 1984 (49 FR 35747), 
was based on the premise that the ratemaking process ensures that an 
applicant that is an electric utility and a holder of an operating 
license will have funds to operate the plant safely. Because entities 
other than electric utilities did not have recourse to ratemaking, they 
were required to submit information on financial qualifications in 
accordance with Sec. 50.33(f), and the NRC was required to make a 
finding of financial qualification for these nonutility entities under 
Sec. 50.57(a)(4).
    In issuing the License Renewal Rule, 10 CFR part 54 (56 FR 64943; 
December 13, 1991), the Commission reaffirmed that the basis of the 
1984 rulemaking for eliminating financial qualifications review for 
electric utilities applies not only for the term of the original 
license, but also for the period of operation covered by a renewed 
license (56 FR at 64968). However, the findings required to issue a 
renewed license based on the standards contained in 10 CFR 54.29 do not 
require a finding regarding financial qualifications for non-electric-
utility entities seeking a renewal license. The 1991 rule left 
unchanged the requirement in Sec. 50.33(f)(2) that license renewal 
applicants that are not electric utilities submit financial 
qualifications information in their renewal applications and extended 
the 1984 rule's finding to applicants for renewal of operating 
licenses. The revision to 10 CFR part 54 published on May 8, 1995 (60 
FR 22461), did not amend this requirement. Thus, while non-electric-
utility entities are required to submit financial qualifications 
information, there is no requirement for a finding of financial 
qualifications for non-electric-utility entities, and no basis for the 
lack of such a finding requirement.
    Since the 1995 rulemaking, the NRC has received numerous requests 
for license renewals and has granted eight renewed licenses for four 
plant sites to electric utilities. However, because of ongoing 
deregulation in the power market, new entities other than electric 
utilities may be created to become licensees of nuclear power plants. 
Some of these entities may decide to renew their licenses. Under the 
current rule they would be required to submit financial qualifications 
information under Sec. 50.33(f)(2). Moreover, despite the language of 
Sec. 54.29, the NRC must make a case-by-case finding of financial 
qualifications.
    Such a case-by-case determination would be resource-intensive and 
may result in delays in approving renewal applications. The NRC staff 
has reviewed the license transfer process to determine if there was a 
basis in the regulatory process that would obviate the need for such a 
finding at license renewal. The NRC staff determined that, with one 
exception, the NRC does not need the financial qualifications

[[Page 38428]]

information from license renewal applicants that are not electric 
utilities since the NRC can obtain and track financial qualifications 
information from the licensees through means other than the license 
renewal process. The exception is the potential gap in the financial 
qualifications regulation for non-electric-utility entities when a 
licensee transitions from an electric utility to an entity other than 
an electric utility without transferring its license. Although almost 
all utilities transfer to non-utility status with a license transfer, 
this regulatory gap, if not closed, would prevent the NRC from making a 
generic determination that financial qualifications review is 
unnecessary at license renewal. Therefore, in this proposed rule the 
NRC proposes to adopt a provision to close the gap.

Regulatory Oversight of Licensees' Financial Qualifications and 
Discussion of Proposed Rule

    With one exception, the NRC has provisions in its regulations to 
evaluate a nuclear power reactor applicant's or licensee's financial 
qualifications at several points--at initial licensing, before license 
transfers, and when circumstances warrant an ad hoc request for 
additional financial information. In addition, the NRC staff informally 
monitors the financial trade press for information on its licensees' 
financial situations. The one exception relates to a situation when a 
licensee transitions from an electric utility to an entity other than 
an electric utility without transferring its license. This proposed 
rule would rectify the regulatory gap by imposing a request for 
financial qualifications information from the licensee. With the 
addition of this provision, the Commission believes it has a basis for 
concluding that it is unnecessary to review financial qualifications 
information explicitly during the license renewal process for holders 
of operating licenses for nuclear power reactors. The NRC does not 
believe that there are any financial circumstances uniquely associated 
with license renewal that warrant a concomitant financial review.
    The NRC staff relies on the requirement in 10 CFR 50.33(f)(2) to 
obtain financial qualifications information on applicants seeking 
renewal of nonpower reactor operating licenses. The license renewal 
process for nonpower reactors, unlike the license renewal process for 
power reactors, includes a financial qualifications review. The NRC 
staff does not propose to amend this requirement since the nature of 
nonpower reactor operations does not permit the same level of ongoing 
financial qualifications oversight, thus necessitating a review of 
financial qualifications for nonpower reactor licensees at renewal.

Initial Licensing Reviews

    The NRC performs financial qualifications reviews during initial 
licensing. These reviews form part of the licensing basis that the 
licensee must maintain for the 40-year term of the initial license and 
for any license renewal period. Financial qualifications reviews at the 
operating license stage distinguish between license applicants that are 
electric utilities as defined in 10 CFR 50.2 and those that are not. 
Applicants other than electric utilities are required to submit 
estimates for total annual operating costs for each of the first five 
years of operation of the facility, and indicate the sources of funds 
to cover these costs. The NRC evaluation of the financial 
qualifications of an entity other than an electric utility applicant is 
based on the submitted 5-year projections of income and expenses and on 
current information from a number of major financial rating service 
publications. The NRC publishes the results of its evaluation in a 
safety evaluation report. The NRC's regulations do not require 
additional formal financial qualifications reviews at scheduled 
intervals.

License Transfer Reviews

    A license transfer under 10 CFR 50.80 may occur at any time during 
the period of the license. The NRC also reviews the financial 
qualifications of non-electric-utility applicants seeking to become 
licensees through direct license transfers (plant sales), and considers 
changes in the financial qualifications of an existing licensee, 
whether or not it is an electric utility, that might occur in 
connection with an indirect license transfer by a merger, acquisition, 
or restructuring action. For a direct license transfer, a non-electric-
utility applicant must submit all the information required under 
Sec. 50.33(f).

Informal Screening of Financial and Nuclear Industry Trade Press and 
Other Information Sources

    To keep abreast of deregulation and other developments potentially 
affecting its power reactor licensees, the NRC staff screens the 
financial and trade press and other information sources (e.g., State 
legislative reports) to determine whether a licensee or license 
applicant remains an electric utility or otherwise requires additional 
review of its financial qualifications. To date, all utility-to-
nonutility transitions by NRC power reactor licensees have been 
accomplished through restructurings that involved license transfers. 
The NRC examines license transfers to determine whether a proposed 
transferee is, among other requirements, financially qualified to 
conduct the activities authorized by a license. If the licensee becomes 
an entity other than an electric utility without going through a 
license transfer, the NRC believes that it will become aware of the 
change through its informal screening process. The NRC can then request 
additional information under Sec. 50.33(f)(4), as described in the next 
section.

Ad Hoc Reviews Under 10 CFR 50.33(f)(4)

    Section 50.33(f)(4) states: ``The Commission may request an 
established entity or newly formed entity to submit additional or more 
detailed information respecting its financial arrangements and status 
of funds if the Commission considers this information to be 
appropriate. This may include information regarding a licensee's 
ability to continue the conduct of the activities authorized by the 
license and to decommission the facility.'' This section permits the 
NRC to require license applicants or licensees to submit relevant 
financial information on the qualifications of the licensee to manage 
licensed activities at any time.

Proposed Requirement for Additional Information That May Not Be 
Otherwise Obtained Under the NRC's Financial Qualifications Review 
Framework

    In some situations a licensee may transition from an ``electric 
utility,'' as defined in 10 CFR 50.2, to a company whose rates are not 
regulated by a public utility commission or the Federal Energy 
Regulatory Commission on a cost of service basis. If such a transition 
were to occur in the absence of a license transfer, the NRC would then 
have no formal process to evaluate the licensee's financial 
qualifications (although, as discussed previously, the NRC's informal 
monitoring process would identify such transitions and could trigger, 
if warranted, a request for additional information pursuant to 
Sec. 50.33(f)(4)). Therefore, the NRC proposes to create 10 CFR 50.76, 
a requirement segregated from Sec. 50.33(f)(2), which would require 
licensees that are transitioning from an electric utility to a non-
electric-utility, without going through license transfers, to submit 
financial information sufficient to allow the NRC to determine whether 
the licensee remains financially qualified to conduct the activities 
authorized by the license. Although the

[[Page 38429]]

NRC expects that this type of transition will occur rarely, if at all, 
this requirement would ensure a financial qualifications review 
resulting from all relevant triggering events and, thereby, enhance 
public confidence while maintaining regulatory efficiency and 
effectiveness.
    The proposed new section 50.76 will be created to provide a 
separation from Sec. 50.33, since the latter section focuses on 
applicants rather than licensees.

Retention of Nonpower Reactor Financial Reviews at License Renewal

    The NRC will retain the financial qualifications requirements in 
Sec. 50.33(f)(2) for nonpower reactor (NPR) applicants that wish to 
renew or extend their licenses. Nonpower reactor licenses are generally 
renewed for 20 years. The NRC does not normally perform follow-up 
financial reviews after the initial 20-year license is issued. The NRC 
staff does not normally follow changes in NPR licensee financial 
qualifications because NPR owners are primarily financially stable 
nonprofit educational or research institutions, either privately, 
State, or Federally owned, and do not report financial information to 
sources readily available to the NRC. Additionally, license transfers 
for NPRs and the associated financial reviews are rare. A small number 
of NPRs are owned and operated by private companies. Therefore, 
financial qualification problems are not likely to become obvious, at 
least in part because of the unavailability of accessible information, 
as cited above. In some cases, the NRC has found financial weaknesses 
or ambiguities during NPR license renewals that it would not have 
discovered otherwise. As a result of the review, the NRC was able to 
require the licensee to take corrective action. Therefore, the NRC 
considers it appropriate to review NPR licensees' financial 
qualifications when they apply to renew their licenses. The burden on 
NPR licensees to demonstrate their financial qualifications every 20 
years is offset by the assurance that licensee management is committed 
to continued operation.

Conclusions on Eliminating Financial Qualifications Reviews for Power 
Reactor Licensees at License Renewal

    Section 50.33(f) requires all applicants for initial and renewed 
operating licenses to submit financial qualifications information, 
except applicants for and holders of operating licenses for nuclear 
power reactors that are electric utilities. Section 50.33(f)(2) 
requires an entity other than an electric utility that seeks to renew 
its operating license for a nuclear power plant submit the same 
financial information in its application that is required for an 
application for an initial license.
    The NRC does not believe that there are any financial circumstances 
uniquely associated with license renewal that warrant a separate 
financial review. First, the NRC's regulatory processes for financial 
qualifications reviews adequately ensure that the NRC can take 
appropriate regulatory action when warranted by changes in a licensee's 
financial qualifications. Second, the submission of financial 
qualifications information and a finding of financial qualifications 
for a nuclear power plant licensee at the license renewal stage, by 
itself, is not likely to have any impact on a licensee's financial 
qualifications, and therefore should not be a factor in the renewal 
decision. In contrast, there are valid regulatory reasons for 
conducting specified financial qualifications reviews at other stages--
i.e., at initial licensing, when an applicant's financial 
qualifications need to be determined in accordance with the AEA's 
requirements; at the time of a license transfer, when deregulation 
initiatives are likely to affect an applicant's or licensee's financial 
qualifications through restructuring, plant sales, or other events; or 
at times of special circumstances, when ad hoc reviews under 
Sec. 50.33(f)(4) may be warranted.
    For these reasons, the NRC proposes to change the requirement in 
the last sentence of Sec. 50.33(f)(2) with respect to entities other 
than electric utilities seeking renewal of operating licenses for 
nuclear power reactors. The proposed rule would (1) eliminate the need 
for such entities to provide financial qualifications information as 
part of the license renewal process, (2) retain the existing 
requirement in Sec. 50.33(f) for nonpower reactors to provide financial 
qualifications information, and (3) add a new Sec. 50.76, ``Licensee's 
change of status; financial qualifications.'' Section 50.76 would 
require that any electric utility power reactor licensee that becomes 
an entity other than an electric utility without transferring the 
license must provide the same financial information that is required 
for obtaining an initial operating license. The proposed rule would not 
affect the submission of financial qualifications information and the 
need for a finding of financial qualifications with respect to direct 
transfers of nuclear power plant operating licenses, nor would the rule 
affect the review of whether an indirect transfer would change the 
respective licensee's financial qualifications.
    The NRC believes this proposed rule would be consistent with the 
NRC's Strategic Goals of making NRC activities and decisions more 
effective and efficient and reducing unnecessary regulatory burden. The 
proposed rule would help advance these goals by eliminating the need 
for ``entities other than electric utilities'' to submit information on 
financial qualifications, as is the case now for electric utilities, in 
connection with license renewal, and would make the financial 
qualifications review requirements consistent with the bases of the 
License Renewal rule in 10 CFR part 54, which does not require a 
finding of financial qualifications for those power reactor licensees 
applying for a renewed nuclear power plant operating license. The 
proposed rule would not have an adverse impact on maintaining safety; 
the provisions in Sec. 50.33(f)(4) already ensure that financial 
information can be obtained from a licensee whenever the NRC considers 
this information appropriate.

Section-by-Section Analysis

10 CFR 50.33, Contents of applications; general information.

    Section 50.33(f)(2) would be amended to replace a requirement that 
now states license renewal applicants must provide financial 
qualifications information with a requirement that states power reactor 
applicants for license renewal no longer need to provide financial 
qualifications information. Nonpower reactor applicants, on the other 
hand, would continue to submit financial qualifications information in 
the applications as is currently required. A new sentence would be 
added to Sec. 50.33(f)(2) to specify that nonpower reactor license 
renewal applicants must continue to submit financial qualifications 
information in their applications.

10 CFR 50.76, Licensee's change of status; financial qualifications.

    Section 50.76, a new requirement segregated from Sec. 50.33(f)(2), 
would be adopted to cover situations in which a licensee changes from 
an electric utility to a non-electric-utility, i.e., a company that 
cannot obtain revenue from the cost of service ratemaking process, in a 
manner other than a license transfer under 10 CFR 50.80. The NRC 
proposes to require licensees that are transitioning from an electric 
utility to a non-electric-utility entity without transferring their 
licenses to submit financial information pursuant to the requirements 
of this new section. If a

[[Page 38430]]

licensee will cease to be an electric utility, the NRC proposes that 
the licensee shall notify the NRC 75 days before the transition and 
provide the financial information at that time.

Issues for Public Comment

    The NRC encourages comments on the content, level of detail, and 
the implementation of the proposed amendments. Suggestions or 
alternatives other than those described in this document and estimates 
of the cost of implementation are encouraged.
    The NRC is particularly interested in receiving comments on the 
following issues related to this proposed rule:
    1. Are there rulemaking alternatives to this proposed rule that 
were not considered in the regulatory analysis for this proposed rule?
    2. Should the requirement that nonpower reactor licensees provide 
financial qualifications information when they apply for license 
renewal be eliminated? On what basis?
    3. Are the regulations dealing with financial qualifications 
oversight sufficiently flexible not to require this information from 
non-electric-utility applicants seeking license renewals for power 
reactors?

Availability of Documents

    This Federal Register document, the regulatory analysis, and the 
environmental assessment are available at the NRC Public Document Room 
at 11555 Rockville Pike, Rockville, Maryland; through the NRC's 
interactive rulemaking Website at http://ruleforum.llnl.gov; and 
through the NRC's Public Electronic Reading room at http://www.nrc.gov/reading-rm.html.
    The ADAMS accession number of the notice is ML020700359. The 
regulatory analysis number is ML020700372. The environmental assessment 
number is ML020700379.
    Single copies of the Federal Register notice, regulatory analysis, 
and environmental assessment may be obtained from George J. Mencinsky, 
Division of Regulatory Improvement Programs, Office of Nuclear Reactor 
Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001 (301-415-3093), or [email protected].

Plain Language

    The Presidential memorandum dated June 1, 1998, entitled ``Plain 
Language in Government Writing,'' directed that the Government write in 
plain language. This memorandum was published on June 10, 1998 (63 FR 
31883). In complying with this directive, editorial changes have been 
made in this proposed rule to improve readability of the existing 
language of those provisions being revised. These types of changes are 
not discussed further in this document. The NRC requests comment on the 
proposed rule specifically with respect to the clarity and 
effectiveness of the language used. Comments should be sent to the 
address given in the ADDRESSES section.

Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, Pub. 
L. 104-113, requires that Federal agencies use technical standards that 
are developed or adopted by voluntary consensus standard bodies unless 
the use of such a standard is inconsistent with applicable law or is 
otherwise impractical. In this proposed rule, the NRC would eliminate 
the requirement that applicants for power reactor license renewal 
provide financial qualifications information, and add a new requirement 
for submission of financial information on electric utilities holding 
operating licenses for nuclear power reactors, who cease to be electric 
utilities in a manner other than a license transfer under 10 CFR 50.80. 
This proposed rule would not constitute a standard that establishes 
generally applicable requirements, and the requirement to use a 
voluntary consensus standard is not applicable.

Finding of No Significant Environmental Impact: Availability

    The Commission has determined that under the National Environmental 
Policy Act of 1969, as amended, and the Commission's regulations in 
subpart A of 10 CFR part 51 that this proposed rule, if adopted, would 
not be a major Federal action significantly affecting the quality of 
the human environment and, therefore, an environmental impact statement 
is not required.
    There are no significant radiological environmental impacts 
associated with the proposed action, since the proposed action only 
addresses the submission of financial information to the NRC. The 
proposed action does not involve nonradiological plant effluents and 
has no other environmental impact. Therefore, NRC expects that no 
significant environmental impact would result from the proposed rule.
    The determination of this environmental assessment is that there 
will be no significant offsite impact to the public from this action. 
However, the general public should note that the NRC is seeking public 
participation. The NRC has also committed to complying with Executive 
Order (E.O.) 12898, ``Federal Actions to Address Environmental Justice 
in Minority Populations and Low-Income Populations,'' dated February 
11, 1994. The NRC evaluated environmental justice for this 
environmental assessment and has determined that there are no 
disproportionate high and adverse impacts on minority and low-income 
populations. In the letter and spirit of E.O. 12898, the NRC is 
requesting public comment on any environmental justice considerations 
or questions that the public thinks may be related to this proposed 
rule but somehow was not addressed. E.O. 12898 describes environmental 
justice as ``identifying and addressing, as appropriate, 
disproportionately high or adverse human health or environmental 
effects of its programs, policies, and activities on minority 
populations and low-income populations.'' Comments on any aspect of the 
environmental assessment, including environmental justice, may be 
submitted to the NRC as indicated under the ADDRESSES heading.
    The NRC has sent a copy of the environmental assessment and this 
proposed rule to all State Liaison Officers and requested their 
comments.

Paperwork Reduction Act Statement

    This proposed rule eliminates the burden on non-electric-utility 
power reactor licensees to submit financial qualifications information 
upon license renewal as required by the current Sec. 50.33(f)(2). 
However, power reactor licensees that become non-electric-utility power 
reactor entities without transferring the license would still be 
required to provide this information under new Sec. 50.76. The public 
burden reduction for this information collection is estimated to 
average 100 hours per request. Because the burden reduction 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-
0011.

Public Protection Notification

    The NRC may not conduct or sponsor, and a person is not required to 
respond to, a request for information or an information collection 
requirement unless the requesting document displays a currently valid 
OMB control number.

Regulatory Analysis

    The Commission has prepared a regulatory analysis on this proposed 
regulation. The analysis examines the costs and benefits of the 
alternatives considered by the Commission. The regulatory analysis may 
be examined, and/or copied for a fee, at the NRC's

[[Page 38431]]

Public Document Room at One White Flint North, 11555 Rockville Pike 
(first floor), Rockville, Maryland. The Commission requests public 
comment on the regulatory analysis. Comments should be submitted to the 
NRC in accordance with the instructions in the ADDRESSES section of 
this notice.

Regulatory Flexibility Certification

    In accordance with the Regulatory Flexibility Act, as amended, 5 
U.S.C. 605(b), the Commission certifies that this proposed rule would 
not, if adopted, have a significant economic impact on a substantial 
number of small entities. This proposed rule would affect only the 
renewal of nuclear power reactor licenses. The companies that own these 
reactors are not ``small entities'' as defined in the Regulatory 
Flexibility Act or the Size Standards established by the NRC (10 CFR 
2.810).

Backfit Analysis

    The NRC has determined that the backfit rule does not apply to this 
proposed rule. The proposed rule would (1) permissively relax the 
current requirement in Sec. 50.33(f) for submission of financial 
qualifications information by entities other than electric utilities 
seeking renewal of their nuclear power plant operating licenses, and 
(2) impose a new requirement for submission of financial information on 
electric utilities who hold operating licenses for nuclear power 
reactors, who cease to be electric utilities in a manner other than a 
license transfer under 10 CFR 50.80. Such information collection and 
reporting requirements do not constitute regulatory actions to which 
the backfit rule applies. In addition, with respect to the permissive 
relaxation in Sec. 50.33(f), such relaxations do not ``impose'' a 
requirement, which is an essential element of ``backfitting'' as 
defined in Sec. 50.109(a)(1).
    Accordingly, the proposed rule's provisions do not constitute a 
backfit and a backfit analysis need not be performed. However, the 
staff has prepared a regulatory analysis that identifies the benefits 
and costs of the proposed rule and evaluates other options for 
addressing the identified issues. As such, the regulatory analysis 
constitutes a ``disciplined approach'' for evaluating the merits of the 
proposed rule and is consistent with the intent of the backfit rule.

List of Subjects in 10 CFR Part 50

    Antitrust, Classified information, Criminal penalties, Fire 
protection, Intergovernmental relations, Nuclear power plants and 
reactors, Radiation protection, Reactor siting criteria, Reporting and 
recordkeeping requirements.

    For the reasons set forth 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. 553, the NRC is proposing to 
adopt the following amendments to 10 CFR part 50.

PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION 
FACILITIES

    1. The authority citation for part 50 continues to read as follows:

    Authority: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68 
Stat. 936, 938, 948, 953, 954, 955, 956, as amended, sec. 234, 83 
Stat. 444, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201, 2232, 
2233, 2239, 2282); secs. 201, as amended, 202, 206, 88 Stat. 1242, 
as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).
    Section 50.7 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 50.10 also issued under secs. 101, 185, 68 
Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, Pub. L. 
91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(dd), 
and 50.103 also issued under sec. 108, 68 Stat. 939, as amended (42 
U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also issued 
under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections 50.33a, 
50.55a, and Appendix Q also issued under sec. 102, Pub. L. 91-190, 
83 Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued 
under Pub. L. 97-415, 96 Stat. 2073 (42 U.S.C. 2239). Section 50.78 
also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152). Sections 
50.80 and 50.81 also issued under sec. 184, 68 Stat. 954, as amended 
(42 U.S.C. 2234). Appendix F also issued under sec. 187, 68 Stat. 
955 (42 U.S.C. 2237).

    2. In Sec. 50.33, paragraph (f)(2) is revised to read as follows:


Sec. 50.33  Contents of applications; general information.

* * * * *
    (f) * * *
    (2) If the application is for an operating license, the applicant 
shall submit information that demonstrates the applicant possesses or 
has reasonable assurance of obtaining the funds necessary to cover 
estimated operation costs for the period of the license. The applicant 
shall submit estimates for total annual operating costs for each of the 
first five years of operation of the facility. The applicant shall also 
indicate the source(s) of funds to cover these costs. An applicant 
seeking to renew or extend the term of an operating license for a power 
reactor need not submit the financial information that is required in 
an application for an initial license. Applicants to renew or extend 
the term of an operating license for a nonpower reactor shall include 
the financial information that is required in an application for an 
initial license.
* * * * *
    3. Section 50.76 is added to read as follows:


Sec. 50.76  Licensee's change of status; financial qualifications.

    An electric utility licensee holding an operating license 
(including a renewed license) for a nuclear power reactor, no later 
than 75 days prior to ceasing to be an electric utility in any manner 
not involving a license transfer under Sec. 50.80 of this part, shall 
provide the NRC with the financial qualifications information that 
would be required for obtaining an initial operating license as 
specified in Sec. 50.33(f)(2). The financial qualifications information 
must address the first full five years of operation after the date the 
licensee ceases to be an electric utility.

    Dated at Rockville, Maryland, this 29th day of May 2002.

    For the Nuclear Regulatory Commission.
Annette L. Vietti-Cook,
Secretary of the Commission.
[FR Doc. 02-13903 Filed 6-3-02; 8:45 am]
BILLING CODE 7590-01-P