[Federal Register Volume 73, Number 170 (Tuesday, September 2, 2008)]
[Notices]
[Pages 51319-51322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-20232]


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NUCLEAR REGULATORY COMMISSION

[Docket No. 70-143]


Nuclear Fuel Services, Inc., Environmental Assessment and Finding 
of No Significant Impact Related to Proposed License Amendment 
Authorizing the Processing of Uranium Hexafluoride in a New Process 
Line

AGENCY: Nuclear Regulatory Commission.

[[Page 51320]]


ACTION: Environmental assessment and finding of no significant impact.

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FOR FURTHER INFORMATION CONTACT: Kevin M. Ramsey, Fuel Manufacturing 
Branch, Division of Fuel Cycle Safety and Safeguards, Office of Nuclear 
Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, 
Mail Stop E-2C40M, Washington, DC 20555-0001, telephone (301) 492-3123 
and 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, issued to 
Nuclear Fuel Services, Inc. (the licensee), to authorize the processing 
of uranium hexafluoride (UF6) in a new processing line (the CD Line). 
The NRC has prepared an Environmental Assessment (EA) in support of 
this proposed action. Based upon 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 Nuclear Fuel Services (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 HEU with natural 
uranium and manufacture low-enriched nuclear reactor fuel. License SNM-
124 already authorizes NFS to conduct operations with uranium in the 
form of UF6. On August 31, 2007, NFS requested a license amendment to 
process UF6 in the CD Line. A redacted version of the request was 
submitted on October 31, 2007 (Ref. 5). In response to a request for 
additional information (RAI), NFS submitted a reply to RAI questions on 
June 19, 2008. A redacted version of the reply was submitted on June 
25, 2008 (Ref. 6).

Review Scope

    The purpose of this EA is to assess the environmental impacts of 
the proposed action. The safety aspects of the proposed action are 
being evaluated separately and this EA does not approve the request. 
This EA is limited to the proposed operation of the CD Line and any 
cumulative impacts would have 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 issuance of a FONSI is appropriate, and 
that preparation of an EIS is not warranted.

Proposed Action

    The proposed action is to amend NRC Materials License SNM-124 to 
authorize the processing of UF6 in the new CD Line (Ref. 5). The CD 
Line will be assembled and operated in an existing building. No 
construction of new buildings is requested.

Need for Proposed Action

    The proposed action is being requested because the production of 
high-enriched uranium (HEU) at the Portsmouth Gaseous Diffusion Plant 
was stopped in 1991 and the uranium being used there was placed in 
storage. The stored uranium included numerous sample bottles of high-
enriched uranium in the form of UF6. Long-term storage of uranium in 
the form of UF6 is undesirable because it is a reactive chemical that 
can form hydrofluoric acid (HF) if exposed to air. HF is extremely 
hazardous. In 1999, NFS was subcontracted to receive and store these 
sample bottles. Similar materials from other U.S. Department of Energy 
(DOE) sites were included in the scope of the contract. The proposed 
action is for NFS to convert the uranium fluoride compounds into more 
stable compounds (oxides or nitrates). The new high-enriched compounds 
will either be returned to DOE, or declared surplus and transferred to 
NFS for down-blending and use as commercial reactor fuel.

Alternatives

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

Affected Environment

    The affected environment is the NFS site, and 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 is 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 NFS facility is located in Unicoi County, Tennessee, 
about 32 km (20 mi) southwest of Johnson City, Tennessee. The plant is 
about 0.8 km (0.5 mi) southwest of the Erwin city limits. 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) 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.

Effluent Releases and Monitoring

    A full description of the effluent monitoring program at the site 
is provided in a 2002 EA related to the first amendment for the BLEU 
Project (Ref. 2). Additional information is available in the 1999 EA 
related to the renewal of the NFS license (Ref. 1). The NFS Erwin Plant 
conducts effluent and environmental monitoring programs to evaluate 
potential public health impacts and comply with the NRC effluent and 
environmental monitoring requirements. The effluent program monitors 
the airborne, liquid, and solid waste streams produced during operation 
of the NFS Plant. The environmental program monitors the air, surface 
water, sediment, soil, groundwater, and vegetation in and around the 
NFS Plant.
    Airborne, liquid, and solid effluent streams that contain 
radioactive material are generated at the NFS Plant and monitored to 
ensure compliance with NRC regulations in Title 10 of the Code of 
Federal Regulations (10 CFR), Part 20. Each effluent is monitored at or 
just before the point of release. The results of effluent monitoring 
are reported on a semi-annual basis to the NRC in accordance with 10 
CFR 70.59.
    Airborne and liquid effluents are also monitored for non-
radiological constituents in accordance with State discharge permits. 
For the purpose of this EA, the State of Tennessee is

[[Page 51321]]

expected to set limits on effluents under its regulatory control that 
are protective of health and safety and the local environment.

Impacts of Proposed Action

1. Normal Operations
    The proposed action is limited to the processing of uranium 
fluoride compounds in the new CD Line. The new processing line is being 
assembled in an existing building. No construction of new buildings is 
proposed. The process will remove uranium fluoride compounds from 
sample bottles and convert the compounds into either uranium oxide or 
uranyl nitrate. The processes are small scale and will be conducted 
inside glove boxes. The glove boxes are designed to contain any leakage 
of chemicals from the process equipment. Based on the information 
provided by NFS, the safety controls to be employed for the proposed 
action appear to be sufficient to ensure that planned operations will 
have no significant impact on the environment.
    Radiological Impacts: The proposed action involves the conversion 
of uranium fluoride compounds into either uranium oxide or uranyl 
nitrate. The uranium fluoride compounds are volatile and will be heated 
to a gaseous state for removal from the sample bottles and processing. 
A new high-efficiency gaseous effluent treatment system is being 
installed with the new processing line. The combination of processing 
small quantities and a new effluent treatment system is expected to 
result in a very small contribution to the airborne effluents from all 
plant operations. No significant increase is expected in effluent air 
emissions discharged through stacks at the site. In addition, no 
increase is expected in liquid effluents discharged to the sanitary 
sewer. Therefore, the proposed action will have no impact on the total 
annual dose estimate for the maximally exposed individual from all 
planned effluents. The dose to workers may increase slightly from 
operation of the new processing line. However, occupational dose is 
monitored and controlled in accordance with applicable NRC regulations; 
therefore, no adverse impacts are expected. Surface water quality at 
the NFS site is currently protected by enforcing release limits and 
monitoring programs. No change in surface water impacts is expected. 
The proposed action will not discharge any effluents to the 
groundwater; therefore, no adverse impacts to groundwater are expected.
    The proposed action involves transportation of processed 
radioactive material from the NFS site to DOE facilities and 
transportation of waste material from the NFS site. All transportation 
will be conducted in accordance with the applicable NRC and U.S. 
Department of Transportation regulations; therefore, no adverse impacts 
from transportation activities are expected.
    Land Use: The proposed action involves operations in existing 
facilities. No new facilities will be constructed; therefore, no 
adverse impact to land use is expected.
    Cultural Resources: The proposed action involves operations in 
existing facilities. The NRC staff considers this a type of activity 
that does not have the potential to affect historic properties. No 
adverse impact to cultural resources is expected.
    Biotic Resources: The proposed action will not change current land 
use or cause a significant increase in effluents at the site. 
Therefore, the NRC finds the proposed action will not affect any 
Federally endangered or threatened species.
2. Potential Accidents
    The proposed action will result in a new processing line with new 
accident sequences. NFS conducted an Integrated Safety Analysis (ISA) 
of the new processing line and submitted an ISA Summary for NRC review 
and approval. The ISA Summary identifies all potential accidents that 
have significant consequences and the safety controls designated by NFS 
to prevent or mitigate those consequences. The following types of 
accidents were identified:
    [cir] Criticality accidents--Enriched uranium accumulating in 
critical mass quantities under conditions favorable to an uncontrolled 
chain reaction.
    [cir] Chemical accidents--Hydrofluoric acid spills and releases of 
argon, carbon dioxide and nitrogen.
    [cir] Radiological accidents--Exposure and intake of uranium 
compounds.
    [cir] Fire accidents--Ignition of combustible material in and 
around the processing line.
    [cir] Environmental accidents--Spill of hydrofluoric acid.
    All environmental accident scenarios were found to have low 
consequences. This can be attributed to the relatively small quantities 
of material being processed and the containment of all processes in 
glove boxes. Intermediate and high consequences to workers are possible 
and NFS has designated items relied on for safety to make those 
accidents unlikely.
3. Cumulative Impacts
    NRC has considered the impacts of the proposed action together with 
the known impacts of the existing facility. After reviewing the 
information provided, the NRC concludes that the cumulative impacts 
represent an insignificant change to the existing conditions in the 
area surrounding the NFS site.

Impacts of No Action Alternative

    Under the no action alternative, NFS would not be able to process 
the uranium fluoride compounds for DOE. This would require NFS to ship 
the sample bottles with the volatile uranium fluoride compounds back to 
DOE or to another processing facility. The need to convert the 
compounds to a more stable form suitable for storage or re-use would 
remain. Failure to fulfill its role in government and commercial 
programs could cause these customers to select other alternatives that 
may be less cost effective and incur greater environmental impacts. 
Because impacts of the no action alternative would likely be the same 
as, or greater than, the proposed action, the no action alternative is 
not further considered.

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 preparation of an EIS. The NRC has determined 
that the proposed action, approval of the license amendment as 
described, is the preferred alternative.

Agencies and Persons Contacted

    On July 10, 2008, the NRC staff forwarded a draft of this EA to the 
Deputy Director of the Division of Radiological Health in the Tennessee 
Department of Environment and Conservation (TDEC). On August 8, 2008, 
the Deputy Director responded that TDEC had reviewed the draft EA and 
had no comments (Ref. 7).
    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

[[Page 51322]]

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, ``Redacted Version of Amendment 
Request for Processing UF6 in the CD Line Facility at the NFS 
Site,'' October 31, 2007, ADAMS no. ML073090651.
    6. Nuclear Fuel Services, ``Redacted Version of Reply to RAI 
Concerning NFS' CD Line Facility,'' June 25, 2008, ADAMS no. 
ML081790147.
    7. Tennessee Division of Radiological Health, ``Consultation 
with Tennessee re: Environmental Assessment for Nuclear Fuel 
Services CD Line,'' August 8, 2008, ADAMS no. ML082240610.

III. Finding of No Significant Impact

    Pursuant to 10 CFR Part 51, the NRC staff has considered the 
environmental consequences of taking the proposed action. On the basis 
of this assessment, the Commission has concluded that environmental 
impacts associated with the proposed action would not be significant, 
and the Commission is making a finding of no significant impact. 
Accordingly, the preparation of an EIS is not warranted.

IV. Further Information

    Documents related to this action, including the application for 
amendment and supporting documentation, are available electronically at 
the NRC's Electronic Reading Room at http://www.nrc.gov/reading-rm/adams.html. From this site, you can access the NRC's Agencywide 
Document Access and Management System (ADAMS), which provides text and 
image files of NRC's public documents. The ADAMS accession numbers for 
the documents related to this notice are provided in the references 
above. If you do not have access to ADAMS or if there are problems in 
accessing the documents located in ADAMS, contact the NRC Public 
Document Room (PDR) Reference staff at 1-800-397-4209, 301-415-4737 or 
by e-mail to [email protected].
    These documents may also be viewed electronically on the public 
computers located at the NRC's Public Document Room (PDR), O 1 F21, One 
White Flint North, 11555 Rockville Pike, Rockville, MD 20852. The PDR 
reproduction contractor will copy documents for a fee.

    Dated at Rockville, Maryland this 15th day of August 2008.

    For the Nuclear Regulatory Commission.
Kevin M. Ramsey,
Senior Project Manager, Fuel Manufacturing Branch, Division of Fuel 
Cycle Safety and Safeguards, Office of Nuclear Material Safety and 
Safeguards.
[FR Doc. E8-20232 Filed 8-29-08; 8:45 am]
BILLING CODE 7590-01-P