[Federal Register Volume 71, Number 102 (Friday, May 26, 2006)]
[Notices]
[Pages 30451-30452]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-8112]


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

NUCLEAR REGULATORY COMMISSION

[Docket No. 70-143]


Nuclear Fuel Services, Inc., Environmental Assessment and Finding 
of No Significant Impact for Proposed Extension of Deadline for 
Inventory of Special Nuclear Material

AGENCY: Nuclear Regulatory Commission.

ACTION: Environmental Assessment and Finding of No Significant Impact.

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

FOR FURTHER INFORMATION CONTACT: Kevin M. Ramsey, Project Manager, Fuel 
Cycle Facilities Branch, Division of Fuel Cycle Safety and Safeguards, 
Office of Nuclear Material Safety and Safeguards, U.S. Nuclear 
Regulatory Commission, Mail Stop T-8F42, Rockville, MD. 20555-0001, 
Telephone (301) 415-7887; fax (301) 415-5955; e-mail [email protected].

SUPPLEMENTARY INFORMATION:

I. Introduction

    The Nuclear Regulatory Commission (NRC) staff is considering the 
issuance of a license amendment to Materials License SNM-124, to 
Nuclear Fuel Services, Inc. (NFS) (the licensee), to grant a one-time 
exemption from the May 2006 inventory results for strategic special 
nuclear material in the Blended Low-Enriched Uranium Preparation 
Facility (BPF). The NRC has prepared an Environmental Assessment (EA) 
in support of this amendment in accordance with the requirements of 10 
CFR part 51. Based on the EA, the NRC has concluded that a Finding of 
No Significant Impact (FONSI) is appropriate and, therefore, an 
Environmental Impact Statement (EIS) will not be prepared.

II. Environmental Assessment

Background

    The NFS facility in Erwin, Tennessee is authorized, under License 
SNM-124 to manufacture high-enriched nuclear reactor fuel. In addition, 
NFS is authorized to blend highly enriched uranium (HEU) with natural 
uranium and manufacture low-enriched nuclear reactor fuel. Currently, 
BPF is in a safe-shutdown mode, in accordance with Confirmatory Action 
Letter (CAL) No. 02-06-003 dated March 18, 2006. Operations in BPF were 
shut down without the usual material processing/clean-out that is 
required to be undertaken as part of a measured physical inventory. NFS 
is currently in the process of conducting an operational readiness 
review (ORR) which must be reviewed and approved by NRC before 
operations are restarted. This is expected to occur on or before June 
20, 2006. After operations are authorized, the BPF must be operated for 
a minimum of two weeks to process the material to a form suitable for a 
measurable physical inventory. NFS requests that the inventory 
reporting date be extended until 45 days after the completion of the 
ORR and the processing/inventory process clean out resumes, the date of 
which is not now specifically known.

Review Scope

    The purpose of this EA is to assess the environmental impacts of 
the proposed license amendment. It does not approve the request. This 
EA is limited to the proposed exemption and any cumulative impacts on 
existing plant operations. The existing conditions and operations for 
the Erwin facility were evaluated by the NRC for environmental impacts 
in a 1999 EA related to the renewal of the NFS license (Ref. 1) and a 
2002 EA related to the first amendment for the Blended Low-Enriched 
Uranium (BLEU) Project (Ref. 2). The 2002 EA assessed the impact of the 
entire BLEU Project, using information available at that time. A 2003 
EA (Ref. 3) and a 2004 EA (Ref. 4), related to additional BLEU Project 
amendments, confirmed the FONSI issued in 2002. This assessment 
presents information and analysis for determining that the issuance of 
a FONSI is appropriate and that an EIS will not be prepared.

Proposed Action

    The proposed action is to amend NRC Materials License SNM-124 to 
grant a one-time exemption from the physical inventory deadline for 
strategic special nuclear material in the BPF. The exemption would 
authorize NFS to submit the physical inventory results after NRC has 
authorized the restart of operations in the BPF and NFS has had an 
opportunity to process the material and complete the inventory. The 
proposed action is limited to the reporting deadline only. No change to 
processing, packaging, or storage operations is requested, and no 
construction of new facilities is requested.

Need for Proposed Action

    The proposed action is being requested because NFS had to secure 
operations in the BPF to investigate an upset condition. NFS has 
committed to maintain the BPF in a safe-shutdown mode until NRC 
authorizes restart of operations. Regulations in 10 CFR 74.59(f)(1) 
require a physical inventory of strategic special nuclear material 
every six months. To comply with this regulation, the material must be 
processed into a form that can be inventoried. Material in the BPF 
process is not in a form that can be inventoried and it cannot be 
processed into the proper form until the restart of operations is 
authorized.

Alternatives

    The alternatives available to NRC are:
    1. Approve the license amendment as described; or
    2. No action (i.e., deny the request).

Affected Environment

    The affected environment for the proposed action and the no action 
alternative is the NFS site. The NFS facility is located in Unicoi 
County, Tennessee, about 32 km (20 mi) southwest of Johnson City, 
Tennessee. The facility is about 0.8 km (0.5 mi) southwest of the Erwin 
city limits. The affected environment is identical to the affected 
environment assessed in the 2002 EA related to the first amendment for 
the BLEU Project (Ref. 2). A full description of the site and its 
characteristics are given in the 2002 EA. Additional information can be 
found in the 1999 EA related to the renewal of the NFS license (Ref. 
1). The site occupies about 28 hectares (70 acres). The site is bounded 
to the northwest by the CSX Corporation (CSX) railroad property and the 
Nolichucky River, and by Martin Creek to the northeast. The plant 
elevation is about 9 m (30 ft)

[[Page 30452]]

above the nearest point on the Nolichucky River.
    The area adjacent to the site consists primarily of residential, 
industrial, and commercial areas, with a limited amount of farming to 
the northwest. Privately owned residences are located to the east and 
south of the facility. Tract size is relatively large, leading to a low 
housing density in the areas adjacent to the facility. The CSX railroad 
right-of-way is parallel to the western boundary of the site. 
Industrial development is located adjacent to the railroad on the 
opposite side of the right-of-way. The site is bounded by Martin Creek 
to the north, with privately owned, vacant property and low-density 
residences.

Environmental Impacts of Proposed Action and Alternatives

1. Occupational and Public Health
    Proposed Action. The occupation and public health impacts from the 
proposed action are essentially the same as those considered in the 
environmental assessment for operation of the BPF (Ref. 3). Maintaining 
the BPF in a safe-shutdown mode will reduce the emissions from normal 
operations and reduce the risk of accidents. However, the reductions 
would be so small that the differences would be negligible.
    No Action. Denying this amendment request would not result in any 
significant difference in the occupational and public health impacts. 
If this amendment request is denied, the licensee may be cited for 
failing to submit a required report. However, the material cannot be 
inventoried until it is processed into an appropriate form. The 
facility will continue to implement NRC-approved radiation safety 
procedures for storing and handling radioactive materials. Thus, the 
impacts under the ``no action'' alternative will remain within 
acceptable regulatory limits.
2. Effluent Releases, Environmental Monitoring, Water Resources, 
Geology, Soils, Air Quality, Demography, Biota, Cultural and Historic 
Resources
    Proposed Action. The NRC staff has determined that the approval of 
the proposed amendment will not impact effluent releases, environmental 
monitoring, water resources, geology, soils, air quality, demography, 
biota, or cultural or historic resources at or near the NFS site.
    No Action. The NRC staff has determined that denial of the proposed 
amendment will not impact effluent releases, environmental monitoring, 
water resources, geology, soils, air quality, demography, biota, or 
cultural or historic resources at or near the NFS site.

Conclusion

    Based on its review, the NRC has concluded that the environmental 
impacts associated with the proposed action are not significant and, 
therefore, do not warrant denial of the proposed license amendment. The 
NRC has determined that the proposed action, approval of the license 
amendment as described, is the appropriate alternative for selection. 
Based on an evaluation of the environmental impacts of the proposed 
license amendment, the NRC has determined that the proper action is to 
issue a FONSI.

Agencies and Persons Contacted

    On May 11, 2006, the NRC staff contacted the Deputy Director of the 
Division of Radiological Health in the Tennessee Department of 
Environment and Conservation (TDEC) concerning this EA. On May 12, 
2006, the Deputy Director responded that TDEC reviewed the draft EA and 
had no comments (Ref. 6).
    The NRC staff has determined that the proposed action will not 
affect listed species or critical habitat. Therefore, no consultation 
is required under section 7 of the Endangered Species Act. Likewise, 
the NRC staff has determined that the proposed action is not the type 
of activity that has the potential to cause effects on historic 
properties. Therefore, no consultation is required under section 106 of 
the National Historic Preservation Act.

References

    1. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment for Renewal of Special Nuclear Material License No. SNM-
124,'' January 1999, ADAMS No. ML031150418.
    2. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment for Proposed License Amendments to Special Nuclear 
Material License No. SNM-124 Regarding Downblending and Oxide 
Conversion of Surplus High-Enriched Uranium,'' June 2002, ADAMS No. 
ML021790068.
    3. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment and Finding of No Significant Impact for the BLEU 
Preparation Facility,'' September 2003, ADAMS No. ML032390428.
    4. U.S. Nuclear Regulatory Commission, ``Environmental 
Assessment and Finding of No Significant Impact for the Oxide 
Conversion Building and the Effluent Processing Building at the BLEU 
Complex,'' June 2004, ADAMS No. ML041470176.
    5. Nuclear Fuel Services, ``Request for One-Time Exemption,'' 
April 13, 2006, ADAMS No. ML061150255.
    6. D. Shults, Tennessee Division of Radiological Health, e-mail 
to K. Ramsey, U.S. Nuclear Regulatory Commission, ``EA for NFS 
Exemption,'' May 12, 2006, ADAMS No. ML061350156.

III. Finding of No Significant Impact:

    Pursuant to 10 CFR part 51, the NRC staff has considered the 
environmental consequences of amending NRC Materials License SNM-124 to 
grant a one-time exemption from the physical inventory deadline for 
strategic special nuclear material in the BPF. On the basis of this EA, 
the NRC has concluded that there are no significant environmental 
impacts associated with the proposed amendment and has determined not 
to prepare an EIS for the proposed amendment.

IV. Further Information

    The documents referenced in this notice may be made available to 
interested parties pursuant to a protective order and subject to 
applicable security requirements upon a showing that the party has an 
interest that may be affected by the proposed action.

    Dated at Rockville, Maryland, this 22nd day of May 2006.

For the Nuclear Regulatory Commission.
Gary S. Janosko,
Chief, Fuel Cycle Facilities Branch, Division of Fuel Cycle Safety and 
Safeguards, Office of Nuclear Material Safety and Safeguards.
 [FR Doc. E6-8112 Filed 5-25-06; 8:45 am]
BILLING CODE 7590-01-P