[Federal Register Volume 78, Number 217 (Friday, November 8, 2013)]
[Proposed Rules]
[Pages 67225-67252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-25617]
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NUCLEAR REGULATORY COMMISSION
10 CFR Parts 40, 70, 72, 74, and 150
[NRC-2009-0096]
RIN 3150-AI61
Amendments to Material Control and Accounting Regulations
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is proposing to
amend its regulations for material control and accounting (MC&A) of
special nuclear material (SNM). The goal of this rulemaking is to
revise and consolidate the MC&A requirements in order to update,
clarify, and strengthen them. The proposed amendments add new
requirements that would apply to NRC licensees who are authorized to
possess SNM in a quantity greater than 350 grams.
DATES: Submit comments on the rule by February 18, 2014. Submit
comments specific to the information collections aspects of this rule
by December 9, 2013. Comments received after these dates will be
considered if it is practical to do so, but the NRC is able to assure
consideration only for comments received on or before these dates.
ADDRESSES: You may submit comments by any of the following methods
(unless this document describes a different method for submitting
comments on a specific subject):
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2009-0096. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-287-
3422; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
Email comments to: [email protected]. If you do
not receive an automatic email reply confirming receipt, then contact
us at 301-415-1677.
Fax comments to: Secretary, U.S. Nuclear Regulatory
Commission at 301-415-1101.
Mail comments to: Secretary, U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, ATTN: Rulemakings and
Adjudications Staff.
Hand deliver comments to: 11555 Rockville Pike, Rockville,
Maryland 20852, between 7:30 a.m. and 4:15 p.m. (Eastern Time) Federal
workdays; telephone: 301-415-1677.
For additional direction on accessing information and submitting
comments, see ``Accessing Information and Submitting Comments'' in the
SUPPLEMENTARY INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Thomas Young, Office of Federal and
State Materials and Environmental Management Programs, U.S. Nuclear
Regulatory Commission, Washington, DC 20555-0001; telephone: 301-415-
5795, email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Accessing Information and Submitting Comments
II. Introduction and Summary of Proposed Revisions to MC&A
Regulations
III. Specific Request for Comments on the Proposed New Requirements
IV. Discussion
A. Whom would this action affect?
B. Why are the requirements being revised?
C. When would these actions become effective?
D. How does the NRC use a graded approach for MC&A?
E. What are the changes to the general performance objectives?
F. Are sealed sources included in the general performance
requirements for Category II and III facilities?
G. Why would newly defined terms be added to 10 CFR 74.4?
H. Why would the term, ``effective kilograms of special nuclear
material,'' be removed from 10 CFR part 74?
I. Why would appendix A to 10 CFR part 74 be added?
J. Why would references to the MC&A ``system'' be changed to the
MC&A ``program,'' and why would ``MC&A plan'' replace ``FNMC plan?''
K. What would change in the reporting requirements to the NMMSS,
including those that ISFSIs are subject to?
L. Is a two-person rule included as part of this proposed rule?
M. Why would requirements be added to designate material balance
areas, item control areas, and custodians?
N. Why would calendar days be inserted into 10 CFR part 74?
O. Would the implementation guidance documents be updated for
the MC&A program?
P. Would there be changes for item controls or physical
inventories?
Q. Why would an exception be added to 10 CFR 74.15(b)(2)?
R. Are there any cumulative effects of regulation associated
with this rule?
S. What should I consider as I prepare my comments to the NRC?
V. Discussion of Proposed Amendments by Section
VI. Availability of Documents
VII. Criminal Penalties
VIII. Agreement State Compatibility
IX. Plain Writing
X. Voluntary Consensus Standards
XI. Environmental Assessment and Finding of No Significant
Environmental Impact: Availability
XII. Paperwork Reduction Act Statement
XIII. Regulatory Analysis
XIV. Regulatory Flexibility Certification
XV. Backfitting and Issue Finality
[[Page 67226]]
I. Accessing Information and Submitting Comments
A. Accessing Information
Please refer to Docket ID NRC-2009-0096 when contacting the NRC
about the availability of information for this proposed rule. You may
access publicly available information related to this proposed rule by
any of the following methods:
Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2009-0096.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may access publicly available documents online in the NRC
Library at http://www.nrc.gov/reading-rm/adams.html. To begin the
search, select ``ADAMS Public Documents'' and then select ``Begin Web-
based ADAMS Search.'' For problems with ADAMS, please contact the NRC's
Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-
4737, or by email to [email protected]. The ADAMS accession number
for each document referenced in this document (if that document is
available in ADAMS) is provided the first time that a document is
referenced. In addition, for the convenience of the reader, the ADAMS
accession numbers are provided in a table in the section of this
document entitled, ``Availability of Documents.''
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
B. Submitting Comments
Please include Docket ID NRC-2009-0096 in the subject line of your
comment submission, in order to ensure that the NRC is able to make
your comment submission available to the public in this docket.
The NRC cautions you not to include identifying or contact
information that you do not want to be publicly disclosed in your
comment submission. The NRC will post all comment submissions at http://www.regulations.gov as well as enter the comment submissions into
ADAMS. The NRC does not routinely edit comment submissions to remove
identifying or contact information.
If you are requesting or aggregating comments from other persons
for submission to the NRC, then you should inform those persons not to
include identifying or contact information that they do not want to be
publicly disclosed in their comment submission. Your request should
state that the NRC does not routinely edit comment submissions to
remove such information before making the comment submissions available
to the public or entering the comment submissions into ADAMS.
II. Introduction and Summary of Proposed Revisions to MC&A Regulations
The NRC's regulations specify requirements for control and
accounting of SNM that is held by a licensee. The MC&A regulations
ensure that the information about SNM is accurate, authentic, and
sufficiently detailed to enable a licensee to maintain current
knowledge of its SNM and manage its program for securing and protecting
SNM. The MC&A, together with physical protection of facilities and
information security requirements, make up the primary elements of the
NRC's SNM safeguards program. The MC&A component of the larger
safeguards program helps ensure that SNM within a fuel cycle facility
is not stolen or otherwise diverted from the facility and promotes the
NRC's strategic goal of maintaining adequate protection over the use
and management of radioactive materials.
The MC&A requirements for an independent spent fuel storage
installation (ISFSI) would be consolidated with MC&A regulations
applicable to other types of facilities authorized to possess SNM.
General performance objectives (GPOs) would be made applicable to an
additional set of NRC licensees who are authorized to possess more than
350 grams of SNM. Some current exemptions in the MC&A regulations would
be removed or modified to strengthen the requirements, and defined
terms would be added to clarify the regulations. Plain language
revisions would also be made. Guidance documents would be updated as
necessary to reflect these proposed changes. Concurrently with this
proposed rule, in this issue of the Federal Register, the NRC published
a document (NRC-2013-0195) requesting comment on the following draft
NUREGs: NUREG-1280, Revision 2, ``Acceptable Standard Format and
Content for the Material Control and Accounting (MC&A) Plan Required
for Strategic Special Nuclear Material;'' NUREG-2159, ``Acceptable
Standard Format and Content for the Material Control and Accounting
(MC&A) Plan Required for Special Nuclear Material of Moderate Strategic
Significance;'' NUREG-1065, Revision 3, ``Acceptable Standard Format
and Content for the Material Control and Accounting (MC&A) Plan
Required for Special Nuclear Material of Low Strategic Significance;''
NUREG-2158 (formerly NUREG/CR-5734), ``Acceptable Standard Format and
Content for the Material Control and Accounting (MC&A) Plan Required
for Low Enriched Uranium Enrichment Facilities;'' and NUREG/BR-0096,
Revision 2, ``Instructions and Guidance for Completing Physical
Inventory Summary Reports.''
The NRC seeks input on several specific aspects of the proposed
rule, including the appropriate threshold amount of SNM on which item
control requirements should be imposed. With respect to these and other
proposed requirements that go beyond consolidation and clarification of
existing requirements, the NRC seeks input on the need for the
requirements in relation to the proportionate levels of risk
represented by the processes and material quantities and forms that are
used at different types of licensee facilities. The NRC also seeks
input on whether there are less burdensome alternatives to the proposed
requirements that would still ensure the adequate control and accurate
accounting of SNM.
In a future rulemaking, the NRC will consider a two-person rule to
verify the accuracy of MC&A information within a fuel cycle facility.
Interested stakeholders will then have the opportunity to comment
regarding a two-person rule.
The NRC plans to amend Title 10 of the Code of Federal Regulations
(10 CFR) to consolidate the MC&A provisions in 10 CFR part 74.
Conforming changes would be made to 10 CFR parts 40, 70, 72 and 150.
The changes are intended to update, clarify, and strengthen MC&A
requirements.
The existing 10 CFR part 74 regulations contain subparts A through
F, and the MC&A requirements are organized in a graded fashion with
subpart E containing the most rigorous set of MC&A requirements.
General MC&A reporting and recordkeeping requirements in subpart B
apply to all materials licensees authorized to possess SNM under 10 CFR
part 70, reactor licensees under 10 CFR parts 50 or 52, and ISFSI
licensees under 10 CFR part 72. Licensees authorized to possess SNM of
``low strategic significance'' (defined in 10 CFR 74.4) are subject to
the more rigorous MC&A requirements in subpart C. Such licensees
operate what are known as Category III facilities, which include
licensed uranium enrichment facilities and the three fuel fabrication
facilities supplying fresh fuel assemblies (containing low enriched
uranium) to commercial power reactors.
[[Page 67227]]
Licensees authorized to possess SNM of ``moderate strategic
significance'' (defined in 10 CFR 74.4) are subject to the MC&A
requirements in subpart D, and are authorized to operate Category II
facilities (no such facilities currently operate). The most rigorous
MC&A requirements are in subpart E, and apply to licensees authorized
to possess a ``formula quantity'' (defined in 10 CFR 74.4) of strategic
special nuclear material (SSNM). Such 10 CFR part 70 licensees operate
what are known as Category I facilities. Only two such facilities now
operate, and they fabricate fuel (containing high enriched uranium) for
use by the U.S. Navy and in research and test reactors. One potential
Category I facility may operate in the future as a mixed oxide fuel
fabrication facility.
Table 1 shows the location of the proposed MC&A requirements within
10 CFR part 74 and the types of facilities that are licensed to possess
SNM. A list of specific questions about the proposed requirements is
provided in Section III of this document.
Table 1--Location of Proposed MC&A Requirements for Certain Types of Facilities
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Location in proposed 10 CFR part 74 by type of facility
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Subparts A and B
New requirement ------------------------------------------------------------
Part 70 license Subpart C Subpart D Subpart E
authorizing > 350 Part 50 or 52 Part 72 ISFSI
grams reactor facility
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Part 70 Fuel Cycle Facility
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Category III Category II Category I
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General performance objectives.. 74.3 modified the modified the modified the
existing existing existing
requirements in requirement in requirement in
74.31(a) and 74.41(a) to refer 74.51(a) to refer
74.33(a) to refer to 74.3. to 74.3 and
to 74.3; retained retain unique
the unique performance
performance objectives
objectives in 74.51(a).
74.33(a) for an
enrichment
facility.
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Item control system............. no requirement.... 74.19(d) modified the modified the no modification
existing existing would be needed
requirements in requirement in for existing
74.31(c)(6) and 74.43(b)(5) to 74.55, Item
74.33(c)(6) to remove some Monitoring.
remove some exemptions.
exemptions.
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Tamper-safing of containers or no requirement 74.31(c)(9)....... clarified the clarified the
vaults. 74.33(c)(9)....... existing existing
requirement in requirement in
74.43(c)(3). 74.59(f)(2)(i).
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MBA/ICA and custodians.......... no requirement 74.31(c)(10)...... 74.43(c)(9)....... 74.59(h)(5).
74.33(c)(10)......
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In 2008, the NRC developed an MC&A rulemaking plan (SECY-08-0059,
Rulemaking Plan: Part 74--Material Control and Accounting of Special
Nuclear Material, ADAMS Accession No. ML080580307) and submitted it to
the Commission for its consideration. In accordance with the
Commission's approval of the rulemaking plan's Option 4 in the Staff
Requirements Memorandum (SRM) for SECY-08-0059 (ADAMS Accession No.
ML090360473), various changes would be made to 10 CFR part 74. The
considerations on which this rulemaking action are based, and the
proposed substantive changes to the MC&A requirements, may be
summarized as follows:
General Performance Objectives
The existing GPO requirements are set forth for each type of
facility in 10 CFR 74.31(a), 74.33(a), 74.41(a), and 74.51(a). Building
on these existing GPOs, the NRC proposes to list five GPOs in a new 10
CFR 74.3 that would apply to all licensees authorized to possess more
than 350 grams of SNM--a set of licensees that includes power reactors
and ISFSIs. The 10 CFR 74.3 GPOs would largely replace the existing
GPOs for Category I, II, and III facilities. Some GPOs that are unique
to the Category III enrichment facilities, and to the Category I fuel
fabrication facilities, would remain in revised 10 CFR 74.33(a) and
74.51(a), respectively. The NRC does not expect that Category I, II,
and III licensees would need to alter their MC&A programs in response
to the 10 CFR 74.3 GPOs, because these GPOs are similar to the existing
GPOs.
Proposed 10 CFR 74.3(e) would require that information related to
MC&A be stored in a locked file cabinet or office.
Licensees authorized to possess 350 grams of SNM or less would not
be made subject to the GPO requirements, because such licensees are not
required to implement a formal MC&A program. These licensees are
subject to the existing reporting requirements in 10 CFR 74.11, 74.13,
and 74.15, which are applicable to licensees authorized to possess 1
gram or more of SNM. Agreement State licensees are similarly subject to
the corresponding reporting requirements in 10 CFR 150.16 and 150.17.
Item Control System
Existing subparts C and D of 10 CFR part 74 contain item control
provisions applicable to Category III and II facilities, respectively,
that would be modified. The NRC additionally proposes to add clarifying
definitions of two related terms to 10 CFR 74.4. Item
[[Page 67228]]
control system would be defined as a system for tracking the creation,
identity, element and isotopic content, location, and disposition of
all items, which would enable the licensee to maintain current
knowledge of each item in its possession. Item control area (ICA) would
be defined as a designated administrative area within the controlled
access area, in which SNM would be maintained in such a way that, at
any time, a count of the items and the related material quantities can
be obtained using the accounting system. Control of items moving into,
out of, and within an ICA would be indicated by the identity of an item
and its assigned material quantity.
As is the case for the GPO requirements previously discussed,
licensees authorized to possess 350 grams of SNM or less would not be
subject to item control requirements. Starting in 2009, such licensees
were required to submit material balance and physical inventory reports
on an annual basis under 10 CFR 74.13 (or 10 CFR 150.17 for Agreement
State licensees). As there have been no reports of lost SNM items from
these licensees, the NRC's view is that imposing item control
requirements on them is not necessary.
In a new 10 CFR 74.19(d), the NRC is proposing to expand the
requirement to establish an item control system to include reactor
facilities licensed under 10 CFR part 50 or 52, and ISFSIs licensed
under 10 CFR part 72. This requirement is consistent with guidance
developed for the reactor industry by the American National Standards
Institute (ANSI) in ANSI N15.8 (``Methods of Nuclear Material Control--
Material Control Systems--Special Nuclear Material Control and
Accounting Systems for Nuclear Power Plants''), dated February 18,
2009. In June 2013, the NRC published Regulatory Guide (RG) 5.29,
``Nuclear Material Control Systems for Nuclear Power Plants'' (Revision
2), which endorses use of the ANSI N15.8 guidance. Requiring item
control systems at reactors and ISFSIs would ensure that SNM is
adequately accounted for at these sites.
Licensed Category III fuel fabrication and uranium enrichment
facilities are already subject to item control requirements under 10
CFR 74.31(c)(6) and 74.33(c)(6), respectively. Similarly, licensees of
Category II facilities are subject to item control requirements under
10 CFR 74.43(b)(6). These requirements are being modified, in part, by
removing the exemption provisions for items existing for less than 14
days. These exemptions date from when most facilities did not have, as
part of their MC&A programs, automated tracking systems and computer-
based accounting systems to help track SNM items. Today, licensees have
the ability to track items immediately upon creation instead of waiting
for hand-written ledgers to be updated. Removing these exemptions will
require tracking of items that could contain large quantities of SNM
but are not now subject to a facility's item control system.
The 10 CFR 74.31(c)(6) and 74.33(c)(6) requirements would further
be modified by removing the exemptions for individual items containing
less than 500 grams of uranium-235, which may contain up to a
cumulative total of 50 kilograms of uranium-235. Similarly, for a
Category II facility, the exemption (in 10 CFR 74.43(b)(6)) for
individual items containing less than 200 grams of plutonium or
uranium-233; or 300 grams or more of uranium-235 up to a cumulative
total of one formula kilogram of strategic SNM; or 17 kilograms of
uranium-235 contained in uranium enriched to 10 percent or more but
less than 20 percent in the uranium-235 isotope, would be removed. By
not allowing large quantities of SNM to be exempt from a Category II or
Category III facility's item control system, a more complete and
comprehensive inventory would be achieved. Further, since all licensees
are required by existing 10 CFR 74.11 to report the loss of 1 gram or
more of SNM, removing these item control exemptions increases the
internal consistency of the MC&A requirements.
Category I facilities are subject to the item monitoring
requirements in 10 CFR 74.55, which are not being changed in this
rulemaking. Consistent with the present graded approach, these subpart
E item monitoring requirements are part of the more stringent MC&A
program that applies to Category I facilities. Item monitoring differs
significantly from item control. As compared to the item control
requirements applicable to Category II and III facilities, the item
monitoring requirements in 10 CFR 74.55 are more stringent and rigorous
with respect to the scope of item test frequencies, statistical
sampling plans, and detection limits. The NRC has found no problems
with the item monitoring programs used by Category I licensees, and
therefore no changes to 10 CFR 74.55 are proposed.
Tamper-Safing
The NRC proposes to strengthen the existing MC&A requirements
related to tamper-safing containers and vaults that contain SNM. The
term tamper-safing would be defined as the use of devices on containers
or vaults in a manner and at a time that ensures a clear indication of
any violation of the integrity of previously made measurements of SNM
within the container or vault.
Category I and II facilities are required to follow tamper-safing
requirements by existing 10 CFR 74.59(f)(2)(i) and 10 CFR 74.43(c)(3),
respectively. By adding 10 CFR 74.31(c)(9) and 74.33(c)(9), the NRC
proposes to make tamper-safing requirements applicable to licensed
Category III fuel fabrication and uranium enrichment facilities as
well. Such licensees would be required to develop tamper-safing
procedures and use tamper-safing devices on containers or vaults
holding SNM. These procedures must ``include control of access to, and
distribution of, unused seals and records.'' The quoted language is
part of existing 10 CFR 74.43(c)(3), and would be added to existing 10
CFR 74.59(f)(2)(i) so that the tamper-safing requirements in subparts
C, D, and E of 10 CFR part 74 would be similarly worded. As the intent
of the tamper-safing requirement remains the same, the changes in
wording are not expected to affect the MC&A programs at Category I and
II facilities.
The proposed 10 CFR 74.31(c)(9) and 74.33(c)(9) would incorporate
as requirements common practices and procedures already used at
Category III facilities, and would supplement and strengthen their
existing SNM item control and inventory programs that help to protect
against the unauthorized and unrecorded removal of SNM. All Category
III facilities routinely tamper-safe containers of SNM, so this
regulatory change is not expected to be a burden for the affected
licensees.
The use of tamper-safing procedures would not be required at other
types of NRC-licensed facilities, since SNM at such facilities is
generally not in forms where tamper-safing seals can be applied. At
reactors, for example, fuel assemblies are not amenable to tamper-
safing because the fuel assemblies are not stored in containers where
unauthorized opening of a container could be detected with a tamper-
safing device. Containers for spent fuel at ISFSIs are welded shut and
are sufficiently difficult to open that tamper-safing is not required.
At facilities where only sealed sources are used (e.g., at industrial,
academic, and research facilities authorized to possess 350 grams or
less of SNM), tamper-safing is not required because the manner in which
the sealed sources are manufactured and sealed adequately prevents
removal of the SNM.
[[Page 67229]]
Material Balance Areas, Item Control Areas, and Custodians
As previously discussed, the NRC proposes to add a definition of an
ICA to 10 CFR 74.4. Similarly, the NRC proposes to add a definition of
an MBA to 10 CFR 74.4. The term material balance area would be defined
as a designated contiguous area in which the control of SNM is such
that the quantity of material being moved into, out of, and within the
MBA is an assigned value based on measurements of both the element
content and the isotopic content, if known.
The proposed rule adds requirements that all Category I, II, and
III licensees must designate ICAs and MBAs at their facilities, and
identify custodians who would be responsible for monitoring these
areas. The proposed requirements are set forth in 10 CFR 74.59(h)(5),
74.43(c)(9), 74.31(c)(10), and 74.33(c)(10). These required areas form
the basis for nuclear material accounting and control of all SNM within
a Category I, II, or III facility's boundaries, and these new
requirements are expected to enhance the capability of licensees to
detect the unauthorized removal of SNM. In general, smaller accounting
areas make control of SNM easier, and reduce the size of the area in
which detected losses of SNM can be attributed.
All Category I and III facilities (there are no operating Category
II facilities) are voluntarily using MBAs and ICAs and have designated
custodians assigned to them, so these proposed regulations are not
expected to result in significant operating changes.
The rule change would require future facilities to follow this best
practice for ensuring that timely and accurate information is kept
within a designated area to adequately account for and control SNM.
Licensees at other types of NRC-licensed facilities do not use
complex processing operations involving large quantities of SNM in
multiple forms and their operations do not involve moving SNM
frequently throughout the facility. Accordingly, the NRC is proposing
to make these MBA, ICA, and custodian requirements applicable only to
licensed Category I, II, and III facilities.
Other Proposed Changes to the Material Control and Accounting
Requirements
Other proposed changes to the MC&A requirements are considered to
be non-substantive (in that they are either plain language revisions to
improve clarity, conforming changes, or are otherwise organizational or
administrative in nature) are summarized as follows:
The MC&A requirements for ISFSIs that are currently
located in 10 CFR part 72 would be relocated to 10 CFR part 74,
including requirements for reporting to the Nuclear Materials
Management and Safeguards System (NMMSS). These 10 CFR part 72
requirements duplicate reporting requirements in existing subpart B of
10 CFR part 74 and duplicate similar reporting requirements applicable
to certain types of source material as specified in 10 CFR 40.64. The
following list shows how 10 CFR part 74 requirements relate to the 10
CFR part 72 requirements being removed:
The requirement for recordkeeping at 10 CFR 72.72(a) would
be covered in proposed 10 CFR 74.19(d).
The requirement for physical inventory at 10 CFR 72.72(b)
would be covered in 10 CFR 74.19(c).
The requirement for written MC&A procedures at 10 CFR
72.72(c) would be covered in 10 CFR 74.19(b).
The requirement for recordkeeping at 10 CFR 72.72(d) would
be removed.
The requirement to report loss of SNM at 10 CFR 72.74
would be covered in 10 CFR 74.11.
The requirement for submitting material status reports to
NMMSS at 10 CFR 72.76 would be covered in 10 CFR 74.13.
The requirement for submitting nuclear material
transaction reports to NMMSS at 10 CFR 72.78 would be covered in 10 CFR
74.15.
Revisions are proposed to 10 CFR 72.72 and 72.74, and 10
CFR 72.76 and 72.78 would be deleted. Revisions would be made to 10 CFR
40.64 and 150.17(b) to remove their references to 10 CFR part 72
material status reports.
Because some licensees have expressed confusion as to what
MC&A requirements apply to a particular facility, the NRC proposes to
revise the 10 CFR part 74 definitions of formula quantity, special
nuclear material of moderate strategic significance, and special
nuclear material of low strategic significance by conforming them to
the existing definitions in 10 CFR parts 70 and 73, making clear that
these classes of SNM are what is referred to, respectively, as Category
I, II, and III quantities of material. Licensees authorized to possess
Category I material are subject to the 10 CFR part 74 subpart E
requirements, while licensees authorized to possess Category II and III
material are subject to the subpart D and C requirements, respectively.
To further clarify these divisions, the staff proposes to add appendix
A (``Categories of SNM'') to 10 CFR part 74. Also for purposes of
clarification, the NRC proposes to add defined terms for accounting and
material control and accounting.
Plain language revisions are reflected in the proposed regulations,
and include replacing the existing references to the fundamental
nuclear material control (FNMC) plan with references to an MC&A plan.
The staff's view is that FNMC is an outdated term and does not include
``accounting;'' thus, it does not fully describe the accounting aspects
of an MC&A program. Licensees would not be required to change the name
of their FNMC plans to MC&A plans.
The defined term effective kilograms of special nuclear material
(and references to it in several provisions) would be removed from 10
CFR part 74. Quantities of SNM would instead be expressed in gram units
to simplify the accounting requirements in 10 CFR part 74 and provide
consistency with the existing 10 CFR part 74 definitions of the various
types of SNM, all of which specify quantities in gram units. This
proposed change would also correct an inconsistency within the current
10 CFR 74.19 provisions. Existing 10 CFR 74.19(b) refers to a quantity
of SNM ``exceeding one effective kilogram'' in specifying the set of
licensees that must establish written MC&A procedures. Existing 10 CFR
74.19(c) refers to a quantity of SNM ``greater than 350 grams'' in
specifying the set of licensees that must conduct physical inventories.
Removing effective kilograms of special nuclear material from 10 CFR
part 74 would also eliminate confusion caused by a conflict between the
regulatory thresholds for the SNM categories (Category I, Category II,
and Category III) and an effective kilogram of SNM. Effective kilograms
of special nuclear material would remain as a defined term in 10 CFR
parts 40, 70, 75, 76, and 110, to ensure the continued effective
implementation of the U.S./International Atomic Energy Agency (IAEA)
Safeguards Agreement.
Other proposed changes include revising 10 CFR 150.17(a) to conform
with the proposed plain language revisions to 10 CFR 74.13. The
instructions for material status reporting would be clarified in 10 CFR
74.13. The intervals and due dates for each type of facility would also
be clarified in 10 CFR 74.13. No substantive changes are being proposed
in this regard and licensees authorized to possess SNM under a license
from an Agreement State would continue to submit material status
reports to the NRC via the NMMSS. References to due dates and reporting
frequencies would be made more uniform by expressing most timeframes in
terms of calendar days (e.g., 7, 30, 60, 65, 95, 185, or 370
[[Page 67230]]
calendar days). The interval for the number of months assigned to a
licensee`s assessment of the MC&A program would be retained (e.g., 12
months, 18 months, or 24 months). The retention period for records
would be retained (e.g., 3 years). An appendix A, ``Categories of
Special Nuclear Material,'' would be added to 10 CFR part 74. The
appendix would be based on existing appendix M to 10 CFR part 110, and
would show the SNM quantity limits for Category I, Category II, and
Category III facilities. The new appendix would also show the
corresponding subpart in 10 CFR part 74 for each category, and the
formulae to calculate any combination of SSNM within the quantity
limits for a category. A conforming change would be made to replace the
reference to 10 CFR 74.51(c) with 10 CFR 74.51(b) because the paragraph
designation regarding implementation of an MC&A plan would then be
consistent with the other citations listed in 10 CFR 70.32(c)(1)(i) and
(iii) that refer to paragraph (b) in 10 CFR 74.31, 74.33, and 74.41.
The SECY-09-0082 (``Update on Reprocessing Regulatory Framework--
Summary of Gap Analysis,'' ADAMS Accession No. ML091520280), dated May
28, 2009, included the NRC staff's recommendation that the existing 10
CFR 74.51(a) exemption for an irradiated fuel reprocessing plant be
removed as part of this rulemaking. Proposed 10 CFR 74.51(a)(2)
reflects the removal of this exemption.
The NRC placed on www.regulations.gov a preliminary version of the
proposed rule language to inform stakeholders of the status of the
proposed rulemaking and invited stakeholders to provide informal
comments by June 30, 2011. Thirteen comment letters were received by
this date, and were considered. Public input at this stage helped to
develop the proposed rule in its current form.
III. Specific Request for Comments on the Proposed New Requirements
In addition to the general opportunity to submit comments on the
proposed rule, the NRC also requests comments on the following
questions about the proposed new requirements:
General Performance Objectives:
In 10 CFR 74.3, the NRC proposes GPOs that would apply to all
licensees authorized to possess greater than 350 grams of SNM. Are
there other GPOs that the NRC should consider adding? Do the proposed
GPOs impose unnecessary expenses or burdens on licensees? Should the
regulatory threshold for GPOs be higher or lower than 350 grams, and if
so, why? If this threshold amount is lower than 350 grams, the NRC
would add a similar set of GPO requirements to 10 CFR part 150 to apply
to Agreement State licensees. If that were done, how could the NRC best
ensure compliance with the GPOs in Agreement States?
Item Control System:
In 10 CFR 74.19(d), the NRC proposes to make item control
requirements applicable to licensed reactors and ISFSIs. Licensees of
fuel cycle facilities authorized to possess Category III amounts of SNM
are subject to existing item control requirements in subpart C of 10
CFR part 74, and subpart D of 10 CFR part 74 contains item control
requirements that would be applicable to any future fuel cycle facility
that may be authorized to possess Category II amounts of SNM. Are such
requirements necessary at reactor and ISFSI sites? Are there
alternatives that should be considered? Should other types of licensees
be required to have an item control system? What is the appropriate
regulatory threshold for requiring an item control system under 10 CFR
part 74? Should there be a threshold for the amount of material that is
required to be tracked under an item control system?
Tamper-Safing:
In 10 CFR 74.31(c)(9) and 74.33(c)(9), the NRC proposes a new
requirement for tamper-safing containers and vaults. The NRC also
proposes clarifying the existing requirements for tamper-safing in 10
CFR 74.43(c)(3) and 74.59(f)(2)(i) to provide a consistent approach for
all Category I, II, and III licensees. Should tamper-safing be required
for Category III licensees? Are there alternative measures that should
be considered?
Material Balance Areas, Item Control Areas, and Custodians:
In 10 CFR 74.31(c)(10), 74.33(c)(10), and 74.43(c)(9), the NRC
proposes a new requirement to identify specific MBAs and ICAs, and to
designate custodians for these areas. The NRC also proposes that the
existing requirement for custodians in 10 CFR 74.59(h)(5) be revised to
match the new language to provide a consistent approach for all
Category I, II, and III licensees. Should use of MBAs and ICAs be
required? Should other facilities be required to have MBAs and ICAs?
Are there alternatives that should be considered?
Alternatives resulting in equivalent outcome and less burden:
Throughout this proposed rule, the NRC is proposing measures that
would strengthen MC&A requirements at licensee sites. Are there
alternative ways to strengthen existing MC&A requirements that would
impose less burden on NRC licensees while still maintaining adequate
control and accounting of SNM? What specific alternatives should be
considered? For the proposed requirements that go beyond consolidation
and clarification, the NRC is seeking input on the need for such
requirements in relation to the proportionate levels of risk
represented by the processes and material quantities and forms of SNM
that are used at different types of licensee facilities.
IV. Discussion
To further describe this proposed rulemaking the following series
of questions and answers is set forth.
A. Whom would this action affect?
Licensees authorized by the NRC to possess SNM in a quantity
greater than 350 grams would be affected by the proposed rule. For
example, the proposed 10 CFR 74.3 would require a licensee authorized
to possess a quantity of SNM greater than 350 grams to implement and
maintain a material control and accounting program that enables the
licensee to achieve the GPOs provided in the new 10 CFR 74.3.
Agreement State licensees authorized to possess SNM are subject to
the 10 CFR 150.17 material status reporting requirements. The proposed
changes to these requirements are plain language revisions, and conform
with the proposed plain language revisions to the 10 CFR 74.13 material
status reporting requirements. These changes do not require any action
by the Agreement State licensees.
B. Why are the requirements being revised?
Many of the current MC&A requirements were developed over 20 years
ago and need to be updated to include commonly used terms. Item control
system requirements would be strengthened by including items that are
currently exempted from these requirements. The requirements for
general performance objectives to deter, detect, or aid in responding
to any loss, theft, diversion or misuse of SNM need to be extended to
NRC licensees who are not authorized to possess Category I, II, or III
amounts of material, but who are authorized to possess SNM in a
quantity greater than 350 grams. The NRC's view is that all MC&A
regulations governing SNM held by NRC licensees should be in 10 CFR
part 74 in order to provide a focal point and a complete framework/
umbrella for controlling and accounting for all SNM under NRC
oversight.
[[Page 67231]]
C. When would these actions become effective?
The NRC expects that the final rule would be published within 12
months of the publication of the proposed rule for comment. The
revisions to the regulations would become effective 90 days after the
publication of the final rule. Question R in this section requests
comments on the cumulative effects of this rulemaking and specifically
asks whether an effective date of 6 months from the date the final rule
is published in the Federal Register would provide sufficient time to
implement the new proposed requirements.
D. How does NRC use a graded approach for MC&A?
The NRC currently uses a graded, risk-informed approach for MC&A.
Based on the quantity and form of material a licensee possesses, the
licensee is subject to specific requirements that increase with the
amount of SNM the licensee is authorized to possess. Table 2 shows the
requirements that apply to various types of licensed facilities based
on their possession limits and how the NRC proposes to strengthen
requirements through this rulemaking.
Table 2--NRC's Graded, Risk-Informed Approach to Material Control and Accounting
----------------------------------------------------------------------------------------------------------------
Grams of SNM the licensee is Current MC&A requirements in 10 CFR Proposed changes to strengthen MC&A
authorized to possess Part 74 requirements in 10 CFR Part 74
----------------------------------------------------------------------------------------------------------------
1 gram or more of SNM (all 74.11/150.16 Reporting loss and Existing 74.19(d) would be moved to
licensees, including part 70 theft. 74.19(e) to accommodate a new item
licensees authorized to possess 350 74.13/150.17 Material status reports control requirement for reactors
grams or less and licensees for NMMSS. and ISFSIs.
authorized by an Agreement State). 74.15/150.16 Material transaction
reports for NMMSS.
74.19(a) Recordkeeping.
74.19(d) Retention of records.
----------------------------------------------------------------------------------------------------------------
>350 grams of SNM (part 70 licensees 74.11 Reporting loss and theft. New GPOs in 74.3.
authorized for industrial, 74.13 Material status reports for To replace the term ``one effective
academic, and research types of NMMSS. kilogram,'' 74.19(b) would apply to
use. 74.15 Material transaction reports licensees possessing greater than
for NMMSS. 350 grams of SNM.
74.19(a) Recordkeeping. Existing 74.19(d) would be moved to
74.19(b) Written procedures. 74.19(e) to accommodate a new item
74.19(c) Physical inventory. control requirement for reactors
74.19(d) Retention of records. and ISFSIs.
----------------------------------------------------------------------------------------------------------------
Reactors licensed under part 50 or 74.11 Reporting loss and theft. New GPOs in 74.3.
part 52 and ISFSIs licensed under 74.13 Material status reports for New requirement for item control in
part 72. NMMSS. 74.19(d).
74.15 Material transaction reports Existing 74.19(d) would be
for NMMSS. designated as 74.19(e).
74.19(a) Recordkeeping.
74.19(b) Written procedures.
74.19(c) Physical inventory.
74.19(d) Retention of records.
----------------------------------------------------------------------------------------------------------------
>350 grams of SNM of low strategic 74.11 Reporting loss and theft. 74.31(a)(1)-(3) GPOs would be
significance (also known as 74.13 Material status reports for revised and relocated to 74.3.
Category III facilities). NMMSS. 74.31(b) Replace FNMCP with MC&A
Current threshold of one effective 74.15 Material transaction reports Plan.
kilogram would be replaced with 350 for NMMSS. Remove two exemptions related to
grams. 74.17 Physical inventory summary item control in 74.31(c)(6).
report. New requirement for tamper-safing in
74.31: 74.31(c)(9).
(a) GPOs. New requirement for MBAs and ICAs
(b) FNMCP. and for custodians in 74.31(c)(10).
(c)(1) Management and procedures.
(c)(2) Measurement.
(c)(3) Measurement control.
(c)(4) SEID.
(c)(5) Physical inventory.
(c)(6) Item control.
(c)(7) Shipper-receiver differences.
(c)(8) Assessments.
(d) Recordkeeping and retention.
----------------------------------------------------------------------------------------------------------------
[[Page 67232]]
>350 grams of SNM of low strategic 74.11 Reporting loss and theft. 74.33(a)(1)-(9) GPOs revised and
significance for uranium enrichment 74.13 Material status reports for relocated to 74.3, except for five
facilities, (also known as Category NMMSS. retained in proposed 74.33(a)(1)-
III enrichment facilities). 74.15 Material transaction reports (5).
Current threshold of one effective for NMMSS. 74.33(b) Replace FNMCP with MC&A
kilogram would be replaced with 350 74.17 Physical inventory summary Plan.
grams. report. Remove two exemptions related to
74.33: item control in 74.33(c)(6).
(a) GPOs. New requirement for tamper-safing in
(b) FNMCP. 74.33(c)(9).
(c)(1) Management and procedures. New requirement for MBAs and ICAs
(c)(2) Measurement. and custodians in 74.33(c)(10).
(c)(3) Measurement control.
(c)(4) Physical inventory.
(c)(5) Detection program.
(c)(6) Item control.
(c)(7) Shipper-receiver differences.
(c)(8) Assessments.
(d) Recordkeeping and retention.
----------------------------------------------------------------------------------------------------------------
>1000 grams of SNM of moderate 74.11 Reporting loss and theft. 74.41(a)(1)-(4) GPOs revised and
strategic significance (there is 74.13 Material status reports for relocated to 74.3.
currently no operating Category II NMMSS. 74.41(b) Replace FNMCP with MC&A
facility or applicant for such a 74.15 Material transaction reports Plan.
license). for NMMSS. Remove two exemptions related to
Current threshold of one effective 74.17 Physical inventory summary item control in 74.43(b)(6).
kilogram would be replaced with report. Reword the requirement for tamper-
1000 grams. 74.41: safing in 74.43(c)(3).
(a) GPOs. New requirement for MBAs and ICAs
(b) FNMCP. and custodians in 74.43(c)(9).
(c) Checks and balances.
74.43:
(b)(1)-(4) Management and
procedures.
(b)(5)-(6) Item control.
(b)(7) Shipper-receiver differences.
(b)(8) Assessments.
(c)(1) Identification of items.
(c)(2) Documenting transfers.
(c)(3) Tamper-safing.
(c)(4) Validity of prior
measurements.
(c)(5)-(8) Physical inventory.
(d) Recordkeeping and retention.
74.45:
(b) Measurements.
(c) Measurement control.
----------------------------------------------------------------------------------------------------------------
>5000 grams of formula quantities of 74.11 Reporting loss and theft. 74.51(a)(1)-(5) GPOs revised and
strategic SNM (also known as 74.13 Material status reports for relocated to 74.3, except for three
Category I facilities). NMMSS. retained in proposed 74.33(a)(1)(i)-
Current threshold of five formula 74.15 Material transaction reports (iii).
kilograms would be replaced with for NMMSS. Removed the exemption for irradiated
5000 grams. 74.17 Physical inventory summary fuel reprocessing plants in
report. 74.51(a).
74.51: Switching 74.51(b) and (c) for
(a) GPOs. consistency with other sections of
(b) Checks and balances. part 74.
(c) FNMCP. New 74.51(b) Replace FNMCP with MC&A
(d) Bimonthly physical inventory. Plan.
74.53 Process monitoring. Reword the requirement for tamper-
74.55 Item monitoring. safing in 74.59(f)(2)(i).
74.57 Alarm resolution. Revise the requirement for
74.59: custodians to include new
(a) Quality assurance. requirement for MBAs and ICAs in
(b) Management and procedures. 74.59(h)(5).
(c) Qualification and training.
(d) Measurements.
(e) Measurement control.
(f) Physical inventory.
(f)(2)(i) Tamper-safing.
(g) Accounting records retention.
(h)(1) Shipper-receiver differences.
(h)(2) Scrap control.
(h)(3) Checks and balances for human
error.
(h)(4) Assessments.
(h)(5) Custodians.
----------------------------------------------------------------------------------------------------------------
[[Page 67233]]
E. What are the changes to the general performance objectives?
The existing GPOs in 10 CFR 74.31(a) and 74.33(a) (applicable to
licensees of Category III facilities), 74.41(a) (applicable to
licensees of Category II facilities), and 74.51(a) (applicable to
licensees of Category I facilities) would be revised by consolidating
their common provisions into a new 10 CFR 74.3. In addition to being
applicable to Category I, II, and III facilities, the 10 CFR 74.3 GPOs
would be applicable to reactor licensees and two NRC materials
licensees that are authorized to hold more than 350 grams of SNM, but
are not Category I, II, or III facilities. The proposed 10 CFR 74.3
GPOs describe activities to deter, detect, or aid in responding to any
loss, theft, diversion or misuse of SNM. The existing GPO provisions in
10 CFR 74.31, 74.33, 74.41, and 74.51 would be revised to refer to 10
CFR 74.3, but GPOs that are unique to uranium enrichment facilities and
Category I fuel fabrication facilities would be retained in 10 CFR
74.33 and 74.51.
F. Are sealed sources included in the general performance objectives
for Category II and III facilities?
Yes. The current exclusion for sealed sources in the 10 CFR 74.31
and 74.41 GPO provisions would be relocated to appendix A (Note 1) to
clarify that the sealed sources would not be considered for determining
whether a facility is a Category III facility or a Category II
facility, respectively. The change would be consistent with the current
requirements, which were intended to exclude sealed sources from the
material quantity calculations used to determine whether a facility is
a Category III facility subject to subpart C requirements, or a
Category II facility subject to the subpart D requirements of 10 CFR
part 74. However, sealed sources would be within the scope of the
proposed 10 CFR 74.3 GPOs. Sealed sources would continue to be subject
to a licensee's MC&A program.
G. Why would newly defined terms be added to 10 CFR 74.4?
Certain terms are commonly used by licensees in their internal
procedures implementing their MC&A systems, plans and programs,
including accounting, custodian, material control and accounting.
Defining these terms in the NRC's regulations would clarify the
requirements and improve under- standing of the regulations. Other
newly defined terms (material balance area and item control area) and
their related requirements are deemed necessary to strengthen the MC&A
requirements at facilities holding significant amounts of SNM, thereby
making diversion or misuse of SNM at such facilities less likely.
H. Why would the term ``effective kilograms of special nuclear
material'' be removed from 10 CFR part 74?
Doing so would allow quantities of SNM specified in 10 CFR part 74
to be expressed in gram units, which would simplify the accounting
requirements and provide consistency with the existing definitions of
formula quantity, special nuclear material of low strategic
significance, and special nuclear material of moderate strategic
significance, which specify quantities in gram units. The reference to
one effective kilogram in the 10 CFR 74.19(b) written MC&A procedures
provision would be replaced with a reference to a quantity of SNM
greater than 350 grams. This 350-gram amount is referenced in existing
10 CFR 74.19(c) regarding the physical inventory provisions stated
there. References to one effective kilogram in the GPO provisions of 10
CFR 74.31, 74.33, and 74.41 would be revised to reference gram units of
material. The new appendix A would also use gram units. The effective
kilogram term would remain in 10 CFR parts 40, 70, 75, 76, and 110, to
ensure the continued effective implementation of the U.S./IAEA
Safeguards Agreement.
I. Why would appendix A to 10 CFR part 74 be added?
Appendix A would be added to clarify the definitions and quantities
and units of the various categories of SNM. Similar information is
provided in existing appendix M to 10 CFR part 110 and would be
appended to 10 CFR part 74 as well for the convenience of licensees,
the NRC staff, and members of the public. Appendix A would clarify the
elements, isotopic composition, and quantities of material that
Category I, Category II, and Category III facilities are authorized to
possess. Notes would be included to clarify that sealed sources are
excluded from the quantity limits that are used to determine the
category of a facility. An additional note is included to clarify that
spent nuclear fuel is reduced one category level during the period of
time that the radiation exposure exceeds 1 Sievert (Sv) per hour (100
rads per hour) at 1 meter, unshielded. Formulae are included to
calculate a quantity of material for Category I, Category II, or
Category III.
J. Why would references to the MC&A ``system'' be changed to the MC&A
``program,'' and why would ``MC&A plan'' replace ``FNMC plan?''
Portions of existing 10 CFR part 74 that refer to the MC&A
``system'' (e.g., 10 CFR 74.31(c), 74.33(a), and 74.51(a)) would be
revised to instead refer to the MC&A ``program.'' The term ``program''
better describes the over-arching, comprehensive set of methods
licensees use to control and track SNM, and using ``program'' avoids
confusion with the required material measurement systems (e.g., 10 CFR
74.31(c)(2), 74.33(c)(3), and 74.59(d)) that are part of the overall
MC&A program. Similarly, existing references to the overall ``system''
capabilities would be changed to ``program'' capabilities. The existing
requirements referring to an item control program (e.g., 10 CFR
74.31(c)(6), 74.33(c)(6) and 74.43(b)(5)) would be revised to instead
refer to an item control system.
Replacing the existing references to the ``FNMC plan'' with
references to an ``MC&A plan'' is necessary in the NRC staff's view
because FNMC is an outdated term and does not include accounting. It
does not fully describe the accounting aspects of the MC&A program, and
is not consistent with the general title of 10 CFR part 74 (``Material
Control and Accounting of Special Nuclear Material''). The term MC&A
plan is not intended to be an exact name that licensees are required to
use and licensees will not be required to change the names of their
existing plans.
K. What would change in the reporting requirements to NMMSS, including
those that ISFSIs are subject to?
The proposed addition of numbered subsections to 10 CFR 74.13(a)
would make these reporting requirements easier to read and understand.
The plain language revisions would make no substantive changes to the
existing requirements.
The NMMSS reporting requirements for an ISFSI currently in Sec.
72.76 for material status reports and in Sec. 72.78 for nuclear
material transaction reports are duplicated in Sec. Sec. 74.13 and
74.15, respectively. Proposed 10 CFR 74.2 would include existing ISFSIs
within the scope of 10 CFR part 74. Accordingly, Sec. Sec. 72.76 and
72.78 would be removed from 10 CFR part 72. The requirements in Sec.
72.72 for storage of source material (SM) and SNM would be revised to
direct a licensee to refer to Sec. Sec. 40.61 and 40.64 for SM and to
subparts A and B in 10 CFR part 74 for SNM.
[[Page 67234]]
L. Is a two-person rule included as part of this proposed rule?
No. Earlier in this rulemaking process, the NRC staff developed
proposed provisions that would have required Category I, II, and III
licensees to have two qualified and authorized individuals present
when--
Tamper-safing devices are applied to SNM containers,
physical inventories are performed,
SNM is transferred, and
SNM that is not under an active control measure is
handled.
The Commission in its May 10, 2013, SRM, disapproved publishing the
proposed requirements. The SRM stated that the staff could conduct a
backfit analysis on the proposed two-person rule or, to avoid a
significant delay in publishing this MC&A rule for comment, remove
these provisions and consider a two-person rule in a separate future
MC&A rulemaking effort. Interested members of the public will have the
opportunity to comment on a two-person rule in any such future
rulemaking.
M. Why would requirements be added to designate material balance areas,
item control areas, and custodians?
The added MC&A requirements would strengthen and specifically
define the terms for MBA, ICA, and custodians. The added requirements
would be consistent in requiring licensees under subparts C, D, and E
to designate MBAs and ICAs and custodians for these areas. The terms
are widely used in the regulated community and 10 CFR part 74 would be
clarified by setting forth the specific definition for the terms in 10
CFR 74.4. A licensee would be required to designate MBAs, ICAs, and
assign custodial responsibilities for these areas to provide internal
controls to deter or detect any diversion or misuse of SNM at the
licensee's facility.
N. Why would calendar days be inserted into 10 CFR part 74?
To clarify 10 CFR part 74, references to due dates and reporting
frequencies would be made more uniform by expressing most timeframes in
calendar days. Using calendar days avoids the existing uncertainty over
whether weekends and holidays are counted in determining whether or not
a licensee has taken timely action. The proposed clarifications are
intended to make 10 CFR part 74 more internally consistent with
existing 10 CFR 74.33(c)(4), which requires that annual static physical
inventories be taken ``at least every 370 calendar days.'' Existing 10
CFR part 74 provisions referencing 6-month intervals would be changed
to ``185 calendar days.''
O. Would the implementation guidance documents be updated for the MC&A
program?
The following guidance documents would be revised and updated in
conjunction with the rulemaking effort. In addition, a guidance
document for Category II facilities (SNM of Moderate Strategic
Significance) would be updated and issued with the following existing
guidance documents. All revised NUREG guidance documents will be
available for public comment in parallel with the scheduled publication
of the proposed rule.
i. NUREG-1280, ``Standard Format and Content Acceptance Criteria
for the MC&A Reform Amendment,''
ii. NUREG-1065, ``Acceptable Standard Format and Content for the
Fundamental Nuclear Material Control (FNMC) Plan Required for Low-
Enriched Uranium Facilities,''
iii. NUREG/CR-5734, ``Recommendations to the NRC on Acceptable
Standard Format and Content for the Fundamental Nuclear Material
Control (FNMC) Plan Required for Low-Enriched Uranium Enrichment
Facilities,''
iv. NUREG/BR-0096, ``Instructions and Guidance for Completing
Physical Inventory Summary Report.''
P. Would there be changes for item controls or physical inventories?
Subpart B in 10 CFR part 74 would be revised to include a new
requirement in 10 CFR 74.19(d) that licensees of power reactors and
ISFSIs must establish, document, implement, and maintain an item
control system (as would be defined in 10 CFR 74.4).
Some of the current exemption provisions for item controls would be
removed. Specifically, the exemption provisions in 10 CFR 74.31(c)(6),
74.33(c)(6)(ii) and 74.43(b)(6) for items existing 14 days or less in
Category III and II facilities would be removed. The 14-day exemption
was put in the current regulations at a time when most Category III
licensees did not have computer inventory controls and instead relied
on manual ledger entries. In other words, the current regulation
aligned the risk with what the licensees could do in a production
environment.
However, over the last several years, licensees have implemented
business systems that track SNM containing items through the use of bar
codes and entries to computer systems. This has had the secondary
benefit of giving these licensees the ability to track individual items
and total inventory in near real time. Licensees have demonstrated this
ability numerous times during inspections by the NRC staff.
Current requirements in 10 CFR part 74 recognize the importance of
conducting timely inventories and reporting the results by requiring
the reporting of shipments and receipts of a gram or more of material
in 10 days (see 10 CFR 74.15) and through the reporting of lost,
stolen, or diverted SNM of a gram or more within one hour (10 CFR
74.11). Inspections performed by the NRC have identified cases where
there were ``near-misses'' associated with current exemptions. Removal
of the exemptions from the item control requirements would align this
regulation with other requirements in 10 CFR part 74 to better ensure
accurate SNM item bearing inventories. These proposed regulatory
changes are not expected to impact licensees significantly since
licensees have in-house systems that track such items in near real
time.
Additionally, for Category III facilities, the exemption provisions
(in 10 CFR 74.31(c)(6) and 74.33(c)(6)(ii)) for individual items each
containing less than 500 grams of uranium-235, up to a total of 50
kilograms of uranium-235, would be removed. For a Category II facility,
the exemption (in 10 CFR 74.43(b)(6)) for individual items containing
less than 200 grams of plutonium or uranium-233; or 300 grams or more
of uranium-235 up to a cumulative total of one formula kilogram of
strategic SNM; or 17 kilograms of uranium-235 contained in uranium
enriched to 10 percent or more but less than 20 percent in the uranium-
235 isotope, would be removed. These exemptions were identified for
removal in SECY-08-0059. Item control requirements that exclude
kilogram amounts of SNM are not consistent with protection of the
common defense and security.
Q. Why would an exception be added to 10 CFR 74.15(b)(2)?
The exception from performing independent tests when receiving
unirradiated fuel rods or unirradiated fuel assemblies would be
included to clarify the requirement for licensees under 10 CFR part 50
or 52. Similarly the requirement would be clarified for a licensee
under 10 CFR part 70 receiving SNM contained in a sealed source that
will not be opened. The NRC inspection program has indicated that a
licensee will typically verify the contents of such shipments by
reviewing the shipping papers and visual inspection of the
[[Page 67235]]
material because independent testing (e.g., destructive testing or
sampling) is impractical for determining the contents of the shipment
being received.
R. Are there any cumulative effects of regulation associated with this
rule?
Cumulative effects of regulation (CER) describe the challenges that
licensees or other impacted entities (such as State partners) face
while implementing new regulatory positions, programs, or requirements
(e.g., rules, generic letters, backfits, inspections). The CER are
organizational effectiveness challenges that result from a licensee or
impacted entity implementing a number of complex regulatory positions,
programs or requirements within a limited implementation period and
with available resources (which may include limited available expertise
to address a specific issue). The CER can potentially distract licensee
or entity staff from executing other primary duties that ensure safety
or security.
The NRC is specifically requesting comment on the cumulative
effects of this rulemaking. In developing comments on CER, consider the
following questions:
i. In light of any current or projected CER challenges, would an
effective date 6 months from the date the final rule is published in
the Federal Register provide sufficient time to implement the new
proposed requirements?
ii. If current or projected CER challenges exist, what should be
done to address this situation (e.g., if more time is required to
implement the new requirements, what period of time would be
sufficient)?
iii. Do other regulatory actions (e.g., orders, generic
communications, license amendment requests, and inspection findings of
a generic nature) influence the implementation of the proposed
requirements?
iv. Are there unintended consequences? Does the proposed rule
create conditions that would be contrary to the proposed rule's
purposes and objectives? If so, what are the unintended consequences
and how should they be addressed?
v. Please comment on the NRC's cost and benefit estimates in the
regulatory analysis that supports this proposed rule.
S. What should I consider as I prepare my comments to the NRC?
When submitting your comments, remember to:
i. Identify the rulemaking (RIN 3150-AI61; NRC-2009-0096).
ii. Explain why you agree or disagree; suggest alternatives and
substitute language.
iii. Describe any assumptions and include technical information or
data that you used.
iv. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
v. Provide specific examples to illustrate your concerns, and
suggest alternatives.
vi. Explain your views as clearly as possible.
vii. Submit your comments by the comment period deadline
identified.
viii. The NRC is particularly interested in your comments
concerning the issues in Sections Il and III of this document about
item controls, designating MBAs, ICAs and custodial responsibilities
for these areas. Section VIII, Agreement State Compatibility, of this
document contains a request for comment on the compatibility
designations for the proposed rule; Section IX, Plain Writing, contains
a request for comments on the use of plain language; Section XI,
Environmental Assessment and Finding of No Significant Environmental
Impact Availability, contains a request for comments on the draft
environmental assessment; Section XII, Paperwork Reduction Act
Statement, contains a request for comments on the information
collection requirements; Section XIII, Regulatory Analysis, contains a
request for comments on the draft regulatory analysis; and Section XIV,
Regulatory Flexibility Certification, contains a request for comments
on the impact of the proposed rule on small businesses.
V. Discussion of Proposed Amendments by Section
Section 40.64 Reports.
Paragraphs (b)(1) and (2) would be revised to remove the reference
to 10 CFR part 72.
Section 70.32 Conditions of licenses.
Paragraphs (c)(1)(i) and (iii) would be revised to replace the
reference to Sec. 74.51(c) with Sec. 74.51(b). These sections were
revised to provide consistent organization for subparts C, D, and E in
10 CFR part 74 and a conforming change would be completed in 10 CFR
70.32(c)(1)(i) and (iii).
Section 72.9 Information collection requirements: OMB approval.
The NRC proposes to remove Sec. Sec. 72.76 and 72.78 from the list
of approved information collections in Sec. 72.9.
Section 72.72 Material control and accounting requirements for
source material and special nuclear material.
The title of the section would be revised from ``Material balance,
inventory, and records requirements for stored materials'' to
``Material control and accounting requirements for source material and
special nuclear material.'' Paragraph (a) would be revised to only
reference requirements for source material, and would reference
Sec. Sec. 40.61 and 40.64 in this regard. The remainder of existing
Sec. 72.72 (a), (b), (c), and (d) would be removed because these
requirements are duplicated in 10 CFR part 74. As previously discussed,
the Sec. 74.2 scoping provisions would be revised to include ISFSIs.
New paragraph (b) would reference MC&A requirements for SNM in 10
CFR part 74.
Section 72.74 Reports of accidental criticality.
The title of this section would be revised from ``Reports of
accidental criticality or loss of special nuclear material'' to
``Reports of accidental criticality.'' Paragraph (a) would be revised
to remove the requirement that any loss of SNM be reported within 1
hour of discovery. The ISFSIs would be subject to 10 CFR 74.11(a) with
regard to any loss of SNM that must be reported within 1 hour of
discovery. Section 72.74 would retain its reporting requirement for
accidental criticality.
Paragraph (b) would be revised to state that required one-hour
notifications be made to the NRC Headquarters Operations Center via any
available telephone system. The outdated reference to the Emergency
Notification System would be removed.
Section 72.76 Material status reports.
This section would be removed and reserved, and Sec. 72.9 would be
changed accordingly.
Section 72.78 Nuclear material transaction reports.
This section would be removed and reserved, and Sec. 72.9 would be
changed accordingly.
Section 74.2 Scope.
The last sentence of paragraph (a) would be revised to bring
licensees who possess spent nuclear fuel at ISFSIs within the scope of
the MC&A reporting and recordkeeping requirements in 10 CFR part 74.
Section 74.3 General performance objectives.
This section would be added to require a licensee authorized by the
NRC to possess SNM in a quantity greater than 350 grams to implement
and maintain an MC&A program that achieves the general performance
objectives listed in paragraphs (a) through (e).
Section 74.4 Definitions.
[[Page 67236]]
This section would be revised to remove the definition, Effective
kilograms of special nuclear material. This section would be revised to
add, in alphabetical order, definitions for the following terms:
Accounting, Custodian, Item control area, Item control system, Material
balance area, and Material control and accounting. The definitions of
the following terms would be revised to conform with the existing
definitions of these terms in 10 CFR parts 70 and 73, and to refer to
appendix A of this part: Formula quantity, Special nuclear material of
low strategic significance, and Special nuclear material of moderate
strategic significance.
Section 74.11 Reports of loss or theft or attempted theft or
unauthorized production of special nuclear material.
Paragraph (b) would be revised to state that required licensee
notifications be made to the NRC Headquarters Operations Center via any
available telephone system within 1 hour of the event, and an outdated
reference to the Emergency Notification System would be removed.
Section 74.13 Material status reports.
As discussed further in the following paragraph, plain language
revisions would be made to paragraph (a) by specifying eight numbered
requirements, and new paragraphs (b), (c), and (e) would be added.
Existing paragraph (b) would be designated as paragraph (d).
Paragraph (a)(1) through (8) would specify deadlines by which
various sets of licensees would be required to submit their material
balance reports and physical inventory listing reports.
Paragraph (b) would include the reporting instructions that are in
existing Sec. 74.13(a), and would include references to the reporting
forms (NUREG/BR-0007 and NMMSS Report D-24, ``Personal Computer Data
Input for NRC Licensees'') referenced in existing Sec. 74.13(a).
Paragraph (c) would retain the provision in existing Sec. 74.13(a)
that the reports may be submitted at other times for good cause with
prior NRC approval.
As indicated previously, paragraph (d) restates the existing Sec.
74.13(b) provision regarding reports required under section 75.35 of
this chapter (pertaining to implementation of the U.S./IAEA Safeguards
Agreement).
Paragraph (e) would retain the requirement in existing Sec.
74.13(a) regarding the resolution of any discrepancies identified
during the report review.
Section 74.15 Nuclear material transaction reports.
Paragraph (b)(2) would be revised by adding an exception that
independent testing is not required for receipt of unirradiated fuel
rods, unirradiated fuel assemblies, or sealed sources containing SNM
that will not be opened.
Section 74.19 Recordkeeping, procedures, item controls, and
physical inventories.
This section's title would be revised to reference written MC&A
procedures, item controls, and physical inventories.
As previously discussed, paragraph (b) would be revised to replace
its reference to a quantity of SNM ``exceeding one effective kilogram''
with ``a quantity greater than 350 grams of contained uranium-235,
uranium-233, or plutonium, or any combination thereof.''
Paragraph (d) would be re-designated as paragraph (e) and a new
paragraph (d) would be added to require reactor facilities licensed
under 10 CFR part 50 or 52 and ISFSIs licensed under 10 CFR part 72 to
establish, document, implement, and maintain an item control system. A
definition of the term item control system would be added to 10 CFR
part 74.4.
Section 74.31 Nuclear material control and accounting for special
nuclear material of low strategic significance.
The general performance objectives applicable to licensees of
Category III fuel fabrication facilities would be set forth in proposed
Sec. 74.3 as previously discussed. Revised Sec. 74.31(a)(1) would
incorporate the Sec. 74.3 performance objectives by reference, thereby
replacing the performance objectives set forth in existing Sec.
74.31(a)(1)-(3). Proposed paragraph (a)(2) would retain elements of the
exemption in existing Sec. 74.31(a) applicable to production or
utilization facilities, and any licensee operations involving waste
disposal. Proposed paragraph (a)(2) would add an exemption for ISFSIs,
thereby making it consistent with existing Sec. 74.51(a).
Paragraph (b) would be revised by replacing the reference to ``a
fundamental nuclear material control (FNMC) plan'' with a reference to
``a MC&A plan.'' The plan would need to achieve the general performance
objectives in Sec. 74.3, and meet the program capability requirements
set forth in revised Sec. 74.31(c).
The introductory language of paragraph (c) would be revised to
state that the MC&A plan must: Include the capabilities described in
paragraphs (c)(1) through (10); and achieve the performance objectives
in Sec. 74.3. The title of paragraph (c) would be changed from
``System capabilities'' to ``Program capabilities.'' Grammatical errors
in existing paragraphs (c)(1) through (3) would be corrected. Paragraph
(c)(4) would be clarified to state the standard error as the standard
error of the inventory difference (SEID). The paragraph (c)(5) physical
inventory timing provisions would be clarified by changing ``60 days''
to ``60 calendar days,'' and grammatical errors in the existing text
would be corrected. Paragraph (c)(6) would be revised by referencing
the item control system defined in Sec. 74.4. The 14-day provision in
the first sentence of the existing requirement would be removed. The
reference to detecting ``unauthorized removals of substantial
quantities of material from items'' in the second sentence would be
changed to require detecting the removal of ``any quantity of
material.'' In the third sentence, the existing exemption from the
detection requirements for ``items individually containing less than
500 grams of uranium-235 up to a total of 50 kilograms of uranium-235''
would be removed. The wording of paragraph (c)(7) would be revised to
state as follows: ``Conduct and document shipper-receiver difference
comparisons for all SNM receipts on a total shipment basis, and on an
individual batch basis when required by 10 CFR part 75 of this chapter,
and ensure that any shipper-receiver difference that is statistically
significant and exceeds twice the estimated standard deviation of the
difference estimator and 500 grams of uranium-235 is investigated and
resolved.'' Paragraph (c)(8) would be revised by referencing the MC&A
``program'' rather than the MC&A ``system.'' Paragraphs (c)(9) and (10)
would be added to require that the MC&A program include, respectively,
tamper-safing procedures and the designation of material balance areas,
item control areas, and custodians responsible for these areas.
Section 74.33 Nuclear material control and accounting for uranium
enrichment facilities authorized to produce special nuclear material of
low strategic significance.
The general performance objectives applicable to Category III
uranium enrichment facilities would be set forth in proposed Sec. 74.3
as previously discussed, and revised Sec. 74.33(a) would reflect this.
The general performance objectives stated in existing paragraphs (a)(1)
through (9) would be replaced by new paragraphs (a)(1) through (4),
which would only reference source material. These general performance
objectives would parallel those set forth in proposed Sec. 74.3, which
would apply only to SNM. New paragraph (a)(5) retains elements of
existing paragraph
[[Page 67237]]
(a)(8), and retains the exemption for centrifuge enrichment facilities
stated in existing (a)(5).
Paragraph (b) would be revised by replacing the reference to ``a
fundamental nuclear material control (FNMC) plan'' with a reference to
``an MC&A plan.'' The plan would need to achieve the general
performance objectives in Sec. 74.3, the performance objectives in
paragraph (a) as previously discussed, and meet the program capability
requirements set forth in revised Sec. 74.33(c).
The introductory language of paragraph (c) would be revised to
state that the MC&A plan must: Include the capabilities described in
paragraphs (c)(1) through (10); and achieve the performance objectives
(as previously referenced). The title of paragraph (c) would be changed
from ``System features and capabilities'' to ``Program capabilities.''
Existing paragraphs (c)(1) through (2) would remain unchanged.
Paragraph (c)(3)(ii) would be clarified to include the acronym SEID in
a parenthetical. Paragraph (c)(4)(i) would be clarified by changing
``65 days'' to ``65 calendar days.'' Paragraph (c)(4)(ii) would be
clarified by changing ``60 days'' to ``60 calendar days,'' and a
grammatical correction to the existing regulatory text would be made.
Paragraph (c)(5) would be revised by adding ``resolving'' at the end of
the introductory sentence, to read, ``A detection program, independent
of production, that provides high assurance of detecting and
resolving.'' Paragraph (c)(6) would be revised by deleting (c)(6)(i)
and (ii). Paragraph (c)(6) would instead reference the item control
system defined in Sec. 74.4. The requirement to have such an item
control system replaces the existing Sec. 74.33(c)(6)(i) requirement.
The reference to detecting the ``unauthorized removal of 500 grams or
more of uranium-235'' in existing Sec. 74.33(c)(6)(ii) would be
changed to require detecting the removal of ``any quantity of uranium-
235.'' The existing exemption in Sec. 74.33(c)(6)(ii) from the
detection requirements for items containing ``less than 500 grams of
uranium-235 up to a cumulative total of 50 kilograms of uranium-235,''
and for items that ``exist for less than 14 calendar days,'' would be
removed. This exemption would be replaced with a provision exempting
items in solution with a concentration of less than 5 grams per liter,
and waste items destined for burial or incineration (the proposed
wording here tracks the portion of the Sec. 74.31(c)(6) exemption that
is being retained). Paragraph (c)(7) would be clarified to state the
requirements to conduct and document shipper-receiver difference
comparisons for all SM and SNM receipts on a total shipment basis and
on an individual batch basis when required by 10 CFR part 75 of this
chapter, and that any shipper-receiver difference that is statistically
significant and exceeds twice the estimated standard deviation of the
difference and 500 grams of uranium-235 must be investigated and
resolved. Paragraph (c)(8) would be revised by referencing the MC&A
``program'' rather than the MC&A ``system.'' Paragraphs (c)(9) and (10)
would be added to require that the MC&A program include, respectively,
tamper-safing procedures and the designation of MBAs, ICAs, and
custodians responsible for these areas.
Section 74.41 Nuclear material control and accounting for special
nuclear material of moderate strategic significance.
The general performance objectives applicable to Category II
facilities would be set forth in proposed Sec. 74.3 as previously
discussed. Revised Sec. 74.41(a)(1) would incorporate the Sec. 74.3
performance objectives by reference, thereby replacing the performance
objectives set forth in existing Sec. 74.41(a)(1) through (4).
Proposed paragraph (a)(2) would retain elements of the exemption in
existing Sec. 74.41(a) applicable to production or utilization
facilities, licensees using reactor irradiated fuels for research
purposes, and any licensee operations involving waste disposal.
Paragraph (b) would be revised by replacing the reference to ``a
fundamental nuclear material control (FNMC) plan'' with a reference to
``an MC&A plan.'' The plan would need to achieve the general
performance objectives in Sec. 74.3, meet the program capability
requirements set forth in Sec. 74.41(c), and the requirements of
Sec. Sec. 74.43 and 74.45 as previously discussed. The title of
paragraph (b) would be changed from ``Implementation schedule'' to
``Implementation,'' and the existing paragraphs (b)(1) and (2) would be
consolidated into a single paragraph consistent with the format used in
existing Sec. 74.31(b).
Paragraph (c) would be revised by changing its title from ``System
capabilities'' to ``Program capabilities.'' The reference in existing
Sec. 74.41(c) to the ``MC&A system'' would be changed to the ``MC&A
plan,'' which must achieve the performance objectives in Sec. 74.3,
and include the capabilities described in Sec. Sec. 74.43 and 74.45.
The existing Sec. 74.41(c)(1) and (2) checks and balances requirements
remain the same.
Section 74.43 Internal controls, inventory, and records.
Paragraph (b)(3) would be revised to replace the title, ``FNMC
plan'' with ``MC&A plan.'' Paragraph (b)(5) would be revised by
replacing the term ``item control program'' with ``item control
system'' as newly defined in Sec. 74.4. The current paragraphs
(b)(5)(i) and (b)(5)(ii) would be consolidated into proposed paragraph
(b)(5). The current detection requirement in paragraph (5)(ii) would be
revised to require the detection of ``unauthorized removals of
individual items or any quantity of material (as defined in Sec. 74.4)
from items,'' replacing the existing reference to the ``unauthorized
removal of 200 grams or more of plutonium or uranium-233 or 300 grams
or more of uranium-235, as one or more whole items and/or as SNM
removed from containers.'' Paragraph (b)(6) would be revised to replace
the exemptions stated in the current requirement. Only ``items in
solution with a concentration of less than 5 grams of U-235 per liter,
and items of waste destined for burial or incineration'' would be
exempt from the detection requirements described previously. The
reference to ``shipper-receiver comparisons'' in existing paragraph
(b)(7) would be clarified to state ``shipper-receiver difference
comparisons.''
Paragraph (c)(3) would be clarified by removing the phrases, ``if
tamper-safe seals are to be used for assuring the validity of prior
measurements,'' and ``showing the date and time of seal application.''
These changes are proposed so that the tamper-safing requirements in
subparts C, D, and E of 10 CFR part 74 will be worded in a consistent
manner. Paragraph (c)(9) would be added to provide requirements that
the MC&A plan capabilities must include the designation of MBAs, ICAs,
and assigning custodial responsibilities for these areas.
Paragraph (d)(5) would be revised to refer to the performance
objectives of proposed Sec. Sec. 74.3 and 74.41(a)(1), as its current
reference to Sec. 74.41(a)(1) through (4) would no longer be accurate
if the proposed changes to Sec. 74.41(a) are made.
Section 74.45 Measurements and measurement control.
Paragraph (c)(4) would be clarified by spelling out the acronym
SEID as the ``standard error of the inventory difference.''
Section 74.51 Nuclear material control and accounting for strategic
special nuclear material.
The general performance objectives applicable to Category I
facilities would
[[Page 67238]]
be set forth, in part, in proposed Sec. 74.3 as previously discussed.
Revised Sec. 74.51(a)(1) would incorporate the Sec. 74.3 performance
objectives by reference. Additionally, proposed Sec. 74.51(a)(1)(i)
through (iii) would set forth the performance objectives stated in
existing Sec. 74.51(a)(2) through (4).
Proposed paragraph (a)(2) would retain the exemptions in existing
Sec. 74.51(a) applicable to production or utilization facilities,
ISFSIs, and any licensee operations involving waste disposal, but would
remove the exemption for an irradiated fuel reprocessing plant. The
removal of this exemption is in accordance with the NRC staff's
recommendation in its regulatory framework gap analysis for irradiated
fuel reprocessing documented in SECY-09-0082. The licensee of any
future irradiated fuel reprocessing facility would likely be authorized
to possess quantities of strategic SNM that need to be subject to the
highest level of MC&A safeguards and security requirements, to ensure
that this material would be adequately protected.
To make the organization of requirements for Category I and
Category III fuel fabrication facilities more consistent, changes in
existing 10 CFR 74.51(b) and (c) are proposed, which would align the
format with that used in existing 10 CFR 74.31(b) and (c). Thus, 10 CFR
74.51(b) would be retitled, ``Implementation,'' and would contain
elements of existing 10 CFR 74.51(c). Proposed 10 CFR 74.51(b) would
refer to an ``MC&A plan'' rather than a ``FNMC plan,'' for the reasons
previously discussed. The MC&A plan would need to achieve the general
performance objectives in Sec. Sec. 74.3 and 74.51(a), and meet the
requirements of Sec. Sec. 74.53, 74.55, 74.57, and 74.59.
Proposed 10 CFR 74.51(c) would be retitled, ``Program
capabilities,'' and would contain elements of existing Sec. 74.51(b).
In addition to the MC&A plan requirements discussed in revised 10 CFR
74.51(b), 10 CFR 74.51(c) would require that the plan incorporate
checks and balances that are sufficient to detect falsification of data
and reports that could conceal diversion of SNM or strategic SNM
(SSNM). A plain language change to simplify paragraph (c)(1) would
revise ``An individual'' to ``A single individual.'' A plain language
change to simplify paragraph (c)(2) would revise ``Collusion between an
individual with MC&A responsibilities and another individual who has
responsibility or control within both the physical protection and the
MC&A systems'' to ``Collusion between two individuals, one or both of
whom have authorized access to SNM or SSNM.''
Section 74.51(d) would be revised to replace ``FNMC'' plan with
``MC&A'' plan. Additionally, the times to perform physical inventories
would be expressed in terms of calendar days.
Section 74.53 Process monitoring.
Paragraph (a)(3) would be clarified to replace ``a consecutive
three-month period'' with ``a period of 95 calendar days.''
Paragraph (a)(4) would be clarified to replace ``any seven-
consecutive-day period'' with ``a period of 7 calendar days.''
Paragraph (c)(1) would be clarified to replace ``monthly'' with
``at intervals not to exceed 30 calendar days.''
Section 74.57 Alarm resolution.
Paragraph (c) would be revised to replace ``fundamental nuclear
material control plan'' with ``MC&A plan.''
Section 74.59 Quality assurance and accounting requirements.
In paragraph (e)(7), the requirement to correct SSNM measurement
differences ``accumulated over a six-month period'' would be clarified
to instead reference ``a period not to exceed 185 calendar days.''
In paragraph (f)(1), the requirement to perform a physical
inventory ``every six calendar months'' would be clarified to instead
reference ``every 185 calendar days,'' and ``45 days'' would be
clarified to specify ``45 calendar days.'' The paragraph (f)(2)(i)
tamper-safing provision would be revised by adding at its end the
phrase ``and that include control of access to, and distribution of,
unused seals and records,'' in order to make this provision consistent
across subparts C, D, and E of 10 CFR part 74.
With respect to required internal controls regarding how frequently
scrap material must be measured, paragraph (h)(2)(ii) would be
clarified by replacing ``six months'' with ``185 calendar days.''
Paragraph (h)(5) would be revised by adding at its beginning a
requirement to designate MBAs and ICAs, in order to make this provision
consistent across subparts C, D, and E of 10 CFR part 74.
Appendix A to 10 CFR Part 74--Categories of Special Nuclear
Material.
Appendix A would be added to provide a table stating the elements,
isotopic composition, and quantities of material that Category I,
Category II, and Category III facilities are authorized to possess.
Notes are included to state that sealed sources are excluded from the
quantity limits in the table and that spent nuclear fuel is reduced one
category level during the period of time that the radiation exposure
exceeds 1 Sv per hour (100 rads per hour) at 1 meter, unshielded.
Formulae are included to calculate a quantity of SSNM for Category I,
Category II, or Category III.
Section 150.17 Submission to Commission of nuclear material status
reports.
The requirements in paragraph (a) would be clarified by arranging
the requirements into numbered subsections (a)(1), (2), (3), and (4).
The revised introductory paragraph would clarify the requirement to
submit both a Material Balance Report and a Physical Inventory Listing
Report to the NMMSS in accordance with the instructions in paragraph
(a)(1). The reports would be due between January 1 and March 31 of each
year.
Paragraph (a)(1) would include the reporting instructions that are
in the current requirements in paragraph (a) and would state that
individual reports must be prepared for each Reporting Identification
Symbol account using the information in NUREG/BR-0007 and NMMSS Report
D-24, ``Personal Computer Data Input for NRC Licensees.'' Paragraph
(a)(2) would include the provision that is currently in paragraph (a)
stating that the NRC may permit reports to be submitted at other times
for good cause. Paragraph (a)(3) would include the statement in
existing paragraph (b) regarding the submittal of reports under 10 CFR
75.35 (pertaining to implementation of the U.S./IAEA Safeguards
Agreement). Paragraph (a)(4) would include the requirement that is
currently in paragraph (a) that a licensee must resolve any
discrepancies identified during the report review and reconciliation
process within 30 calendar days of being notified of a discrepancy
identified by the NRC.
Paragraph (b)(1) would be revised to remove the reference to 10 CFR
part 72, and paragraph (b)(2) would also be revised to remove the
reference to 10 CFR part 72.
VI. Availability of Documents
The following table indicates the proposed rule and some related
background documents that are available to the public and how they may
be obtained. See the information contained in the Accessing Information
and Submitting Comments section of SUPPLEMENTARY INFORMATION on the
physical locations and Web sites where the documents may be accessed.
[[Page 67239]]
------------------------------------------------------------------------
Document PDR Web NRC Library (ADAMS)
------------------------------------------------------------------------
``Draft Environmental X X ML13228A222
Assessment and Finding of No
Significant Impact for the
Proposed Rule Amending 10 CFR
Parts 40, 70, 72, 74, and
150; Amendments to Material
Control and Accounting
Regulations''.
``Draft Regulatory Analysis X X ML13228A223
for Proposed Rule: Amendments
to Material Control and
Accounting Regulations (10
CFR part 74)''.
SECY-08-0059, ``Rulemaking X X ML080580307
Plan: Party 74--Material
Control and Accounting of
Special Nuclear Material''.
Staff Requirements Memorandum X X ML090360473
(SRM) for SECY-08-0059.
SECY-09-0082, ``Update on X X ML091520280
Reprocessing Regulatory
Framework--Summary of Gap
Analysis''.
------------------------------------------------------------------------
VII. Criminal Penalties
For the purpose of Section 223 of the Atomic Energy Act of 1954, as
amended (AEA), the Commission is proposing to amend 10 CFR parts 40,
70, 72, 74, and 150 under one or more of Sections 161b, 161i, or 161o
of the AEA. Willful violations of the rule would be subject to criminal
enforcement.
VIII. Agreement State Compatibility
Under the ``Policy Statement on Adequacy and Compatibility of
Agreement States Programs,'' approved by the Commission on June 20,
1997, and published in the Federal Register (62 FR 46517; September 3,
1997), the regulations affected by this rulemaking are classified as
compatibility Category ''NRC.'' 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 10 CFR, and cannot be
relinquished to the Agreement States. Thus, States should not adopt
these program elements.
IX. Plain Writing
The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal
agencies to write documents in a clear, concise, and well-organized
manner. The NRC has written this document to be consistent with the
Plain Writing Act as well as the Presidential Memorandum, ``Plain
Language in Government Writing,'' published June 10, 1998 (63 FR
31883). The NRC requests comment on the proposed rule with respect to
the clarity and effectiveness of the language used.
X. 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 standards bodies unless
the use of such a standard is inconsistent with applicable law or
otherwise impractical. In this proposed rule, the NRC would revise and
consolidate requirements for MC&A in 10 CFR part 74. The NRC is not
aware of any comprehensive voluntary consensus standards that address
the proposed subject matter of this proposed rule. The NRC will
consider using a voluntary consensus standard if an appropriate
standard is identified. If a voluntary consensus standard is identified
for consideration, the submittal should explain why the standard should
be used.
XI. Environmental Assessment and Finding of No Significant
Environmental Impact: Availability
The Commission has determined 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 rule, if adopted, would not have
any significant environmental impacts, and therefore this rulemaking
does not warrant the preparation of an environmental impact statement.
The proposed rule pertains to MC&A program requirements, which consist
of administrative procedures and operations to track and control SNM
and related information, in order to deter and detect any loss, theft,
diversion, or unauthorized production of nuclear material. As the
proposed amendments pertain to information collection and reporting
requirements, adopting them would have no significant impact on the
quality of the human environment. The draft environmental assessment,
entitled ``Draft Environmental Assessment and Finding of No Significant
Impact for the Proposed Rule Amending 10 CFR Parts 40, 70, 72, 74, And
150; Amendments to Material Control and Accounting Regulations,'' can
be found at ADAMS Accession No. ML12291A792.
XII. Paperwork Reduction Act Statement
This proposed rule amends information collection requirements
contained in 10 CFR parts 72 and 74 that are subject to the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq). These information
collection requirements have been submitted to the Office of Management
and Budget (OMB) for review and approval. The proposed changes to 10
CFR parts 40, 70, and 150 do not contain new or amended information
collection requirements. Existing requirements were approved by the
OMB, approval numbers 3150-0132 and 3150-0123.
Type of submission, new or revision: Revision.
The title of the information collection: 10 CFR part 72,
``Licensing Requirements for the Independent Storage of Spent Nuclear
Fuel, High-Level Radioactive Waste, and Reactor-Related Greater than
Class C Waste'' and 10 CFR part 74, ``Material Control and Accounting
of Special Nuclear Material.''
The form number if applicable: U.S. Department of Energy (DOE)/NRC
Form 741, ``Nuclear Material Transaction Report,'' DOE/NRC Form 742,
``Material Balance Report,'' and DOE/NRC Form 742C, ``Physical
Inventory Listing.''
How often the collection is required: Licensee timeframes for
reporting to the NRC have not changed for NRC Forms 741, 742, and 742C.
Licensees under subparts B and C of 10 CFR part 74 would submit reports
within 60 calendar days after the start of the physical inventory
covered by the reports, at intervals not to exceed 370 calendar days or
12 months. Licensees under subpart D of 10 CFR part 74 would submit
reports within 60 calendar days after the start of the physical
inventory covered by the reports, at intervals not to exceed 9 months.
Licensees under subpart E of 10 CFR part 74 would be required to submit
reports within 30 calendar days after the start of the physical
inventory covered by the reports, at intervals not to exceed 65
calendar days until performance acceptable to the NRC has been
demonstrated and the Commission has issued formal approval to perform
physical inventories at intervals not to exceed 185 calendar days.
Forms are also submitted when a nuclear material transaction is made.
Who will be required or asked to report: Persons licensed under 10
CFR parts 50, 52, 70, 72, and 76 who possess and use certain forms and
quantities of SNM.
An estimate of the number of annual responses: 68 responses (0
reporting responses + 68 record keepers).
[[Page 67240]]
The estimated number of annual respondents: 68.
An estimate of the total number of hours needed annually to
complete the requirement or request: 1,213 hours (0 hours reporting
plus 1,213 hours recordkeeping).
Abstract: The NRC is proposing to amend its regulations to revise
and consolidate the requirements for MC&A of SNM in 10 CFR part 74. The
proposed amendments relocate the NMMSS-related reporting requirements
for a licensee operating an ISFSI from 10 CFR part 72 to 10 CFR part
74; however, no changes have been made to the reporting requirements
for NRC Forms 741, 742, or 742C. The proposed rule would change
recordkeeping requirements in subparts B, C, and D. The reactor
licensees have already implemented item control systems to document,
control, and account for discrete items and thus would not be impacted
by the proposed requirement. The ISFSI licensees would be impacted by
the proposed item control requirement. Licensees under subpart C would
include currently exempted items in their item controls. Currently
there is no licensee operating a facility under subpart D.
The NRC is seeking public comment on the potential impact of the
information collections contained in this proposed rule and on the
following issues:
1. Is the proposed information collection necessary for the proper
performance of the functions of the NRC, including whether the
information will have practical utility?
2. Is the estimate of burden accurate?
3. Is there a way to enhance the quality, utility, and clarity of
the information to be collected?
4. How can the burden of the information collection be minimized,
including the use of automated collection techniques?
The public may examine and have copied, for a fee, publicly
available documents, including the OMB supporting statement, at the
NRC's PDR, One White Flint North, 11555 Rockville Pike, Room O-1 F21,
Rockville, MD 20852. The OMB clearance package and rule are available
on the NRC's Web site, http://www.nrc.gov/public-involve/doc-comment/omb/index.html, for 60 days after the signature date of this document.
Send comments on any aspect of these proposed regulations related
to information collections, including suggestions for reducing the
burden and on the previously stated issues, by December 9, 2013 to the
Information Services Branch (T-5 F53), U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001, or by Internet electronic mail
to [email protected] and to the Desk Officer, Chad
Whiteman, Office of Information and Regulatory Affairs, NEOB-10202
(3150-0132 and 3150-0123), Office of Management and Budget, Washington,
DC 20503. Comments can also be emailed to [email protected]
or submitted by telephone to (202) 395-4718. Comments on the proposed
information collections may also be submitted via the Federal
rulemaking Web site http://www.regulations.gov, Docket ID NRC-2009-
0096. Comments received after this date will be considered if it is
practical to do so, but assurance of consideration cannot be given to
comments received after this date.
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.
XIII. Regulatory Analysis
The Commission has prepared a draft regulatory analysis on this
proposed regulation. The analysis examines the costs and benefits of
the alternatives considered by the Commission. The Commission requests
public comment on the draft regulatory analysis (RA), which can be
found at ADAMS Accession No. ML13228A223.
XIV. Regulatory Flexibility Certification
In accordance with the Regulatory Flexibility Act of 1980 (5 U.S.C.
605(b)), the Commission certifies that this rule would not, if
promulgated, have a significant economic impact on a substantial number
of small entities. The majority of companies that own these plants do
not fall within the scope of the definition of ''small entities'' set
forth in the Regulatory Flexibility Act or the size standards
established by the NRC (10 CFR 2.810).
The NRC is seeking public comment on the potential impact of the
proposed rule on small entities. The NRC particularly desires comment
from licensees who qualify as small businesses, specifically as to how
the proposed regulation will affect them and how the regulation may be
tiered or otherwise modified to impose less stringent requirements on
small entities while still adequately protecting the public health and
safety and common defense and security. Comments on how the regulation
could be modified to take into account the differing needs of small
entities should specifically discuss:
(a) The size of the business and how the proposed regulation would
result in a significant economic burden upon it as compared to a larger
organization in the same business community;
(b) How the proposed regulation could be further modified to take
into account the business' differing needs or capabilities;
(c) The benefits that would accrue, or the detriments that would be
avoided, if the proposed regulation was modified as suggested by the
commenter;
(d) How the proposed regulation, as modified, would more closely
equalize the impact of the NRC's regulations as opposed to providing
special advantages to any individuals or groups; and
(e) How the proposed regulation, as modified, would still
adequately protect the public health and safety and common defense and
security.
XV. Backfitting and Issue Finality
The NRC has determined that the NRC's backfitting and issue
finality regulations in 10 CFR 50.109, 70.76, 72.62, 76.76, and in 10
CFR part 52, do not apply to this proposed rule because this amendment
would not involve any provisions that are subject to these backfitting
and issue finality provisions. The proposed rule addresses MC&A
programs, which consist of administrative procedures and operations to
track and control SNM and related information to deter and detect any
loss, theft, diversion, or unauthorized production of nuclear material.
The NRC regards MC&A requirements as constituting information
collection and reporting requirements. The NRC has long taken the
position that information collection and reporting requirements are not
subject to the NRC's backfitting and issue finality regulations, as
reflected in past MC&A rulemakings published in the Federal Register
(e.g., 56 FR 55991; October 31, 1991, 67 FR 78130; December 23, 2002,
and 73 FR 32453; June 9, 2008). The remainder of this section discusses
the NRC's bases for determining that MC&A activities are information
collection and reporting requirements.
There are several bases for the NRC's determination that MC&A
activities required by 10 CFR part 74 are information collection and
reporting requirements. First, several of the existing general
provisions in 10 CFR part 74, subpart A, indicate that 10 CFR part 74
includes information collection and reporting requirements. For
example, 10 CFR 74.1, Purpose, states
[[Page 67241]]
that the requirements in 10 CFR part 74 address ``the control and
accounting of special nuclear material at fixed sites and for
documenting the transfer of special nuclear material,'' and include
general ``reporting requirements'' (emphases added). This focus on
information collection and reporting requirements is further emphasized
by the current language of paragraph (a) of 10 CFR 74.2, Scope, which
states, ``The general reporting and recordkeeping requirements of
subpart B . . . apply to each person licensed under this chapter . . .
(emphasis added).'' Similarly, Sec. 74.2(c) states that the
regulations in 10 CFR part 74 ``establish procedures and criteria for
material control and accounting for the issuance of a certificate of
compliance or the approval of a compliance plan'' (emphasis added).
The proposed revisions to 10 CFR part 74 subpart A do not change
the purpose and scope of 10 CFR part 74. The proposed addition to 10
CFR 74.2(a) states that the general reporting and recordkeeping
requirements of subpart B of this part also apply to licensees who
possess spent nuclear fuel at independent spent fuel storage
installations [emphasis added]. Paragraph (b) of proposed Sec. 74.3
states, ``In addition, specific control and accounting requirements are
included in subparts C, D and E for certain licensees. . .'' (emphasis
added).
Given the language in the preceding paragraphs referencing the
existing and proposed provisions of 10 CFR part 74, the NRC believes
that the primary issue--from the standpoint of backfitting and issue
finality--is whether MC&A requirements may reasonably be deemed
``information collection and reporting'' requirements. In the NRC's
view, the answer is in the affirmative. Required MC&A actions represent
a systematic approach for ensuring that information about SNM at a
facility is accurate, which in turn, helps achieve the objective of
ensuring that items containing SNM are not lost, stolen, diverted, or
misused through human error, or because of deliberate acts of
malfeasance. Item is a defined term in 10 CFR part 74, and means ``any
discrete quantity or container of SNM or source material, not
undergoing processing, having an unique identity and also having an
assigned element and isotope quantity.'' The systematic approach for
managing items under 10 CFR part 74 has two aspects: accounting for
items of material; and maintaining control over such items.
The concept of material accounting is reflected in the proposed
definition of accounting that would be added to 10 CFR 74.4 to read as
follows: Accounting means a system that documents the quantities of SNM
held on current inventory by the licensee, and includes tracking of
receipts, shipments, and measured discards, and transfers of SNM.
Material accounting constitutes the principles, processes and
procedures for collecting and maintaining accurate information and
records on the nature and quantities of SNM within the licensee's
control. By accurate information and records, the NRC means that the
information has been collected and maintained in a manner that
minimizes the possibility of human error or deliberate acts of
malfeasance affecting the accuracy and quality of the information.
The concept of material control is reflected in the proposed
definitions that would be added to 10 CFR 74.4 and that read as
follows. Item control area means a designated administrative area
within the controlled access area, in which SNM is maintained in such a
way that, at any time, a count of the items and the related material
quantities can be obtained using the accounting system. Control of
items moving into, out of, and within an ICA is by the identity of an
item and its assigned material quantity. Item control system means a
system tracking the creation, identity, element and isotopic content,
location, and disposition of all items, which enables the licensee to
maintain current knowledge of each item.
Material control constitutes the administrative processes and
procedures that a holder of SNM employs to control the location and
accounting of items containing SNM, by applying appropriate material
accounting principles, processes and procedures. These processes and
procedures for controlling the quantities, location, storage,
transportation and use of items containing SNM support the accuracy of
the material accounting information each time it is collected, and
ensure that the information remains accurate throughout the period of
time that the items are in the possession of the licensee. This concept
of control is reflected in the proposed definition that would be added
to 10 CFR 74.4: Material control and accounting means a program to
control and account for certain types of nuclear material used at a
licensed facility, including SNM and source material, and which
controls and accounts for unauthorized use of equipment capable of
producing enriched uranium. The purpose of an MC&A program is to deter
and detect any loss, theft, diversion, misuse, or unauthorized
production of nuclear material.
Material accounting and material control, properly integrated,
ensure that accurate information (i.e., information that is not
inaccurate due to human error or deliberate acts of malfeasance) is
developed and maintained on items of SNM in the licensee's possession.
By doing so, the NRC's regulatory objective (of ensuring that SNM is
not lost, stolen, diverted, or misused through human error or because
of deliberate acts of malfeasance) is achieved.
The performance requirements for the MC&A program, set forth in
proposed 10 CFR 74.3, General Performance Requirements, demonstrate
that such a program represents a system of information collection and
reporting requirements directed at achieving the NRC's regulatory
objective of ensuring that SNM is not lost, stolen, diverted, or
misused. Proposed 10 CFR 74.3 would require licensees to implement an
MC&A program to achieve five general performance objectives. The nature
of the five objectives (shown in Table 3) includes maintaining
accurate, current, and reliable information to confirm quantities and
locations of SNM. The information would enable a licensee to detect,
respond and resolve any anomaly concerning SNM being held by the
licensee and would enable the licensee to make a rapid determination of
the actual situation. A licensee would be able to provide reliable
information to aid in the investigation and recovery of SNM. A licensee
would be expected to control access to MC&A information and prevent
unauthorized use of the information by adversaries.
The NRC notes that nothing in the current provisions of part 74, or
in the proposed amendments to part 74, precludes affected licensees
from possessing or using SNM. Such substantive health and safety or
common defense and security requirements are set forth in other parts
of 10 CFR parts 20, 70, 71, 72, 73, 75, 76, 95, and 110. A review of
the substantive provisions of the proposed rule (i.e., those proposed
changes to the regulations other than conforming changes, plain
language revisions, and other changes of an administrative or
organizational nature) confirms that the overall character of the
rulemaking is one of information collection and reporting.
Table 3 summarizes the key substantive provisions of the proposed
rule, together with a short explanation why the provision includes an
information collection and reporting requirement.
[[Page 67242]]
Table 3--Characterization of Proposed Substantive Amendments to 10 CFR Part 74 as Information Collection and
Reporting Requirements
----------------------------------------------------------------------------------------------------------------
Explanation of why the proposed
Proposed rule citation Description of proposed requirement requirement would be information
collection and reporting
----------------------------------------------------------------------------------------------------------------
74.3 General performance objectives This section would require a licensee The proposed general performance
authorized by the NRC to possess SNM objectives in Sec. 74.3 are
in a quantity greater than 350 grams directed at maintaining knowledge
to implement and maintain an MC&A of SNM which is done through
program that achieves the five collection and recording of
general performance objectives, as information. Loss of material is
follows: detected through activities such as
(a) Maintain accurate, current, and physical inventory that provide
reliable information on, and confirm information to verify the accuracy
the quantities and locations of SNM of the MC&A records at a site. MC&A
in its possession;. information is essential to
(b) Detect, respond to, and resolve detecting and resolving any actual
any anomaly indicating a possible or potential loss, theft,
loss, theft, diversion, or misuse of diversion, or misuse. Finally,
SNM;. restricting access to MC&A records
(c) Permit rapid determination of reduces the likelihood that these
whether an actual loss, theft, records could be tampered with in a
diversion, or misuse of SNM has manner that would invalidate the
occurred;. information they contain (i.e.,
(d) Provide information to aid in the concealing the loss, theft or
investigation and recovery of diversion of SNM).
missing SNM in the event of an
actual loss, theft, diversion, or
misuse; and.
(e) Control access to MC&A
information that might assist
adversaries to carry out acts of
theft, diversion, misuse, or
radiological sabotage involving SNM.
74.19 Recordkeeping, procedures, Paragraph (d) would require The reactor and ISFSI licensees
item controls, and physical production or utilization facilities would be required to periodically
inventories. licensed under 10 CFR part 50 or 52 collect and verify the MC&A
of this chapter and independent information recorded on site.
spent fuel storage installations
licensed under 10 CFR part 72 of
this chapter to establish, document,
implement, and maintain an item
control system as defined in Sec.
74.4.
74.31 Nuclear material control and To achieve the general performance Removing some of the currently
accounting for special nuclear objectives, a licensee's MC&A plan allowed exemptions for item control
material of low strategic would include the capabilities for Category III licensees would
significance. described in paragraph (c). require these licensees to collect
In paragraph (c)(6) a licensee would and maintain additional MC&A
be required to establish, document, information on these types of items
implement, and maintain an item and verify the information
control system as defined in Sec. periodically.
74.4 to ensure that items are stored
and handled or subsequently measured
in a manner such that unauthorized
removals of individual items or any
quantity of SNM from items would be
detected. Items in solution with a
concentration of less than 5 grams
of uranium-235 per liter and items
of waste destined for burial or
incineration would continue to be
exempted from the item control.
In paragraph (c)(9) a licensee would Tamper-safing as defined in Sec.
be required to maintain and follow 74.4, increases the integrity of
procedures for tamper-safing (as MC&A information collected and
defined in Sec. 74.4) of maintained by the licensee. This
containers or vaults (as defined in reduces the likelihood that these
Sec. 74.4) containing SNM, which records could be tampered with in a
include control of access to, and manner that would invalidate the
distribution of, unused seals and information they contain (i.e.,
records. concealing the loss, theft or
diversion of SNM).
In paragraph (c)(10) a licensee would The use of MBAs, ICAs, and
be required to designate material designated custodians provides a
balance areas and item control areas means of tracking SNM at a more
and assign custodial responsibility localized level than the entire
for each of these areas in a manner site. These areas and their
that ensures that such custodians help to collect MC&A
responsibility can be effectively information on the movement of SNM
executed for all SNM possessed under through the facility.
the license.
[[Page 67243]]
74.33 Nuclear material control and To achieve the general performance Removing some of the currently
accounting for uranium enrichment objectives, a licensee's MC&A plan allowed exemptions for item control
facilities authorized to produce would include the capabilities for Category III licensees would
special nuclear material of low described in paragraph (c). require these licensees to maintain
strategic significance. In paragraph (c)(6) a licensee would additional MC&A information on
be required to establish, document, these types of items and verify the
implement, and maintain an item information periodically.
control system as defined in Sec.
74.4 to ensure that items are stored
and handled or subsequently measured
in a manner such that unauthorized
removal of any quantity of
U[dash]235, as individual items or
as uranium contained in items, will
be detected. Items in solution with
a concentration of less than 5 grams
of uranium[dash]235 per liter and
items of waste destined for burial
or incineration would be exempted
from the item control.
In paragraph (c)(9) a licensee would Tamper-safing, as defined in Sec.
be required to maintain and follow 74.4, increases the integrity of
procedures for tamper-safing (as MC& A information collected and
defined in Sec. 74.4) of maintained by the licensee. This
containers or vaults (as defined in reduces the likelihood that these
Sec. 74.4) containing SNM, which records could be tampered with in a
include control of access to, and manner that would invalidate the
distribution of, unused seals and information they contain (i.e.,
records. concealing the loss, theft or
diversion of SNM).
In paragraph (c)(10) a licensee would The use of MBAs, ICAs, and
be required to designate material designated custodians provides a
balance areas and item control areas means of tracking SNM at a more
and assign custodial responsibility localized level than the entire
for each of these areas in a manner site. Collecting information on SNM
that ensures that such movements within specific areas of
responsibility can be effectively the plant provides increased
executed for all SNM possessed under knowledge of the quantities and
the license. movement of SNM through the
facility. By increasing the number
of data collection areas, and the
need to reconcile inventory
statements for different areas,
this reduces the likelihood that
these records could be tampered
with in a manner that would
invalidate the information they
contain (i.e., concealing the loss,
theft or diversion of SNM).
74.43 Internal controls, inventory, Paragraph (b)(5) would require a Removing some of the currently
and records. licensee to establish, document, allowed exemptions for item control
implement, and maintain an item for Category II licensees would
control system as defined in Sec. require these licensees to maintain
74.4 to ensure that items are stored additional MC&A information on
and handled or subsequently measured these types of items and verify the
in a manner such that unauthorized information periodically.
removals of individual items or any
quantity of material (as defined in
Sec. 74.4) from items will be
detected.
Paragraph (b)(6) would exempt from
the requirements of paragraph (b)(5)
an item in solution with a
concentration of less than 5 grams
of U[dash]235 per liter, and items
of waste destined for burial or
incineration.
In paragraph (c)(3) a licensee would Tamper-safing, as defined in Sec.
be required to maintain and follow 74.4, increases the integrity of
procedures for tamper-safing (as MC& A information collected and
defined in Sec. 74.4) of maintained by the licensee. This
containers or vaults (as defined in reduces the likelihood that these
Sec. 74.4) containing SNM, which records could be tampered with in a
include control of access to, and manner that would invalidate the
distribution of, unused seals and information they contain (i.e.,
records. concealing the loss, theft or
diversion of SNM).
In paragraph (c)(9) a licensee would The use of MBAs, ICAs, and
be required to designate material designated custodians provides a
balance areas and item control areas means of tracking SNM at a more
and assign custodial responsibility localized level than the entire
for each of these areas in a manner site. Collecting information on SNM
that ensures that such movements within specific areas of
responsibility can be effectively the plant provides increased
executed for all SNM possessed under knowledge of the quantities and
the license. movement of SNM through the
facility. By increasing the number
of data collection areas, and the
need to reconcile inventory
statements for different areas,
this reduces the likelihood that
these records could be tampered
with in a manner that would
invalidate the information they
contain (i.e., concealing the loss,
theft or diversion of SNM).
[[Page 67244]]
74.59 Quality assurance and Paragraph (f)(2)(i) would require a Tamper-safing, as defined in Sec.
accounting requirements. licensee to develop procedures for 74.4, increases the integrity of
tamper-safing of containers or MC& A information collected and
vaults containing SSNM not in maintained by the licensee. This
process that include adequate reduces the likelihood that these
controls to assure the validity of records could be tampered with in a
assigned SSNM values and which manner that would invalidate the
include control of access to, and information they contain (i.e.,
distribution of, unused seals and concealing the loss, theft or
records. diversion of SNM).
Paragraph (h)(5) would require a The use of MBAs, ICAs, and
licensee to designate material designated custodians provides a
balance areas and item control areas means of tracking SNM at a more
and assign custodial responsibility localized level than the entire
for each of these areas in a manner site. Collecting information on SNM
that ensures that such movements within specific areas of
responsibility can be effectively the plant provides increased
executed for all SSNM possessed knowledge of the quantities and
under the license. movement of SNM through the
facility. By increasing the number
of data collection areas, and the
need to reconcile inventory
statements for different areas,
this reduces the likelihood that
these records could be tampered
with in a manner that would
invalidate the information they
contain (i.e., concealing the loss,
theft or diversion of SNM).
----------------------------------------------------------------------------------------------------------------
In as much as the MC&A provisions constitute requirements to
collect and report information, they are not subject to backfitting and
issue finality requirements. Accordingly, the NRC did not prepare a
backfit analysis for the proposed rulemaking. This conclusion is
consistent with the NRC's position on the applicability of backfitting
to past MC&A rulemakings published in the Federal Register (e.g., 56 FR
55991; October 31, 1991, 67 FR 78130; December 23, 2002, and 73 FR
32453; June 9, 2008).
List of Subjects
10 CFR Part 40
Criminal penalties, Government contracts, Hazardous materials
transportation, Nuclear materials, Reporting and recordkeeping
requirements, Source material, Uranium.
10 CFR Part 70
Criminal penalties, Hazardous materials transportation, Material
control and accounting, Nuclear materials, Packaging and containers,
Radiation protection, Reporting and recordkeeping requirements,
Scientific equipment, Security measures, Special nuclear material.
10 CFR Part 72
Administrative practice and procedure, Criminal penalties, Manpower
training programs, Nuclear materials, Occupational safety and health,
Penalties, Radiation protection, Reporting and recordkeeping
requirements, Security measures, Spent fuel, Whistleblowing.
10 CFR Part 74
Accounting, Criminal penalties, Hazardous materials transportation,
Material control and accounting, Nuclear materials, Packaging and
containers, Radiation protection, Reporting and recordkeeping
requirements, Scientific equipment, Special nuclear material.
10 CFR Part 150
Criminal penalties, Hazardous materials transportation,
Intergovernmental relations, Nuclear materials, Reporting and
recordkeeping requirements, Security measures, Source material, SNM.
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. 553; the NRC is proposing to
adopt the following amendments to 10 CFR parts 40, 70, 72, 74, and 150.
0
1. The authority citation for part 40 continues to read as follows:
PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL
Authority: Atomic Energy Act secs. 11(e)(2), 62, 63, 64, 65, 81,
161, 181, 182, 183, 186, 193, 223, 234, 274, 275 (42 U.S.C.
2014(e)(2), 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2231,
2232, 2233, 2236, 2243, 2273, 2282, 2021, 2022); Energy
Reorganization Act secs. 201, 202, 206 (42 U.S.C. 5841, 5842, 5846);
Government Paperwork Elimination Act sec. 1704 (44 U.S.C. 3504
note); Energy Policy Act of 2005, Pub. L. No. 109-59, 119 Stat. 594
(2005).
Section 40.7 also issued under Energy Reorganization Act sec.
211, Pub. L. 95-601, sec. 10, as amended by Pub. L. 102-486, sec.
2902 (42 U.S.C. 5851). Section 40.31(g) also issued under Atomic
Energy Act sec. 122 (42 U.S.C. 2152). Section 40.46 also issued
under Atomic Energy Act sec. 184 (42 U.S.C. 2234). Section 40.71
also issued under Atomic Energy Act sec. 187 (42 U.S.C. 2237).
0
2. In Sec. 40.64, revise paragraphs (b)(1) and (2) to read as follows:
Sec. 40.64 Reports.
* * * * *
(b) * * *
(1) Possesses, or had possessed in the previous reporting period,
at any one time and location, one kilogram or more of uranium or
thorium source material with foreign obligations as defined in this
part, shall document holdings as of September 30 of each year and
submit to the Commission within 30 days, a statement of its source
material inventory with foreign obligations as defined in this part.
Alternatively, this information may be submitted with the licensee's
material status reports on SNM filed under part 74 of this chapter, as
a statement of its source material inventory with foreign obligations
as defined in this part. This statement must be submitted to the
address specified in the reporting instructions in NUREG/BR-0007, and
include the Reporting Identification Symbol (RIS) assigned by the
Commission to the licensee.
(2) Possesses, or had possessed in the previous reporting period,
one kilogram or more of uranium or thorium source material pursuant to
the operation of
[[Page 67245]]
enrichment services, downblending uranium that has an initial
enrichment of the U-235 isotope of 10 percent or more, or in the
fabrication of mixed-oxide fuels shall complete and submit, in
computer-readable format, Material Balance and Physical Inventory
Listing Reports concerning all source material that the licensee has
received, produced, possessed, transferred, consumed, disposed of, or
lost. Reports must be submitted for each RIS account including all
holding accounts. Each licensee shall prepare and submit these reports
as specified in the instructions in NUREG/BR-0007 and NMMSS Report D-
24, ``Personal Computer Data Input for NRC Licensees.'' These reports
must document holdings as of September 30 of each year and must be
submitted to the Commission within 30 days. Alternatively, these
reports may be submitted with the licensee's material status reports on
special nuclear material filed under part 74 of this chapter. Copies of
the reporting instructions may be obtained either by writing to the
U.S. Nuclear Regulatory Commission, Division of Fuel Cycle Safety and
Safeguards, Washington, DC 20555-0001, or by email to
[email protected]. Each licensee required to report
material balance, inventory, and/or foreign obligation information, as
detailed in this part, shall resolve any discrepancies identified
during the report review and reconciliation process within 30 calendar
days of notification of a discrepancy identified by the NRC.
* * * * *
0
3. The authority citation for part 70 continues to read as follows:
PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL
Authority: Atomic Energy Act secs. 51, 53, 161, 182, 183, 193,
223, 234 (42 U.S.C. 2071, 2073, 2201, 2232, 2233, 2243, 2273, 2282,
2297f); secs. 201, 202, 204, 206, 211 (42 U.S.C. 5841, 5842, 5845,
5846, 5851); Government Paperwork Elimination Act sec. 1704 (44
U.S.C. 3504 note); Energy Policy Act of 2005, Pub. L. No. 109-58,
119 Stat. 194 (2005).
Sections 70.1(c) and 70.20a(b) also issued under secs. 135, 141,
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
Section 70.21(g) also issued under Atomic Energy Act sec. 122
(42 U.S.C. 2152). Section 70.31 also issued under Atomic Energy Act
sec. 57(d) (42 U.S.C. 2077(d)). Sections 70.36 and 70.44 also issued
under Atomic Energy Act sec. 184 (42 U.S.C. 2234). Section 70.81
also issued under Atomic Energy Act secs. 186, 187 (42 U.S.C. 2236,
2237). Section 70.82 also issued under Atomic Energy Act sec. 108
(42 U.S.C. 2138).
0
4. In Sec. 70.32, revise paragraphs (c)(1)(i), (ii), and (iii) to read
as follows:
Sec. 70.32 Conditions of licenses.
* * * * *
(c)(1) * * *
(i) The program for control and accounting of uranium source
material at a uranium enrichment facility and SNM at all applicable
facilities as implemented pursuant to Sec. 70.22(b), or Sec. Sec.
74.31(b), 74.33(b), 74.41(b), or 74.51(b) of this chapter, as
appropriate;
(ii) The measurement control program for uranium source material at
a uranium enrichment facility and for SNM at all applicable facilities
as implemented pursuant to Sec. Sec. 74.31(b), 74.33(b), 74.45(c), or
74.59(e) of this chapter, as appropriate; and
(iii) Other material control procedures as the Commission
determines to be essential for the safeguarding of uranium source
material at a uranium enrichment facility or of SNM and providing that
the licensee shall make no change that would decrease the effectiveness
of the material control and accounting program implemented pursuant to
Sec. 70.22(b), or Sec. Sec. 74.31(b), 74.33(b), 74.41(b), or 74.51(b)
of this chapter, and the measurement control program implemented
pursuant to Sec. Sec. 74.31(b), 74.33(b), 74.41(b), or 74.59(e) of
this chapter without the prior approval of the Commission. A licensee
desiring to make changes that would decrease the effectiveness of its
material control and accounting program or its measurement control
program shall submit an application for amendment to its license
pursuant to Sec. 70.34.
* * * * *
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5. The authority citation for part 72 continues to read as follows:
PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF
SPENT NUCLEAR FUEL, HIGH-LEVEL RADIOACTIVE WASTE, AND REACTOR-
RELATED GREATER THAN CLASS C WASTE
Authority: Atomic Energy Act secs. 51, 53, 57, 62, 63, 65, 69,
81, 161, 182, 183, 184, 186, 187, 189, 223, 234, 274 (42 U.S.C.
2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233,
2234, 2236, 2237, 2238, 2273, 2282, 2021); Energy Reorganization Act
sec. 201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); National
Environmental Policy Act sec. 102 (42 U.S.C. 4332); Nuclear Waste
Policy Act secs. 131, 132, 133, 135, 137, 141 148 (42 U.S.C. 10151,
10152, 10153, 10155, 10157, 10161, 10168); sec. 1704, 112 Stat. 2750
(44 U.S.C. 3504 note); Energy Policy Act of 2005, Pub. L. No. 109-
58, 119 Stat. 549 (2005).
Section 72.44(g) also issued under secs. Nuclear Waste Policy
Act 142(b) and 148(c), (d) (42 U.S.C. 10162(b), 10168(c), (d)).
Section 72.46 also issued under Atomic Energy Act sec. 189 (42
U.S.C. 2239); Nuclear Waste Policy Act sec. 134 (42 U.S.C. 10154).
Section 72.96(d) also issued under Nuclear Waste Policy Act sec.
145(g) (42 U.S.C. 10165(g)). Subpart J also issued under Nuclear
Waste Policy Act secs. 117(a), 141(h) (42 U.S.C. 10137(a),
10161(h)). Subpart K is also issued under sec. 218(a) (42 U.S.C.
10198).
0
6. In Sec. 72.9, revise paragraph (b) to read as follows:
Sec. 72.9 Information collection requirements: OMB approval.
* * * * *
(b) The approved information collection requirements contained in
this part appear in Sec. Sec. 72.7, 72.11, 72.16, 72.22 through 72.34,
72.42, 72.44, 72.48 through 72.56, 72.62, 72.70 through 72.75, 72.77,
72.79, 72.80, 72.90, 72.92, 72.94, 72.98, 72.100, 72.102, 72.103,
72.104, 72.108, 72.120, 72.126, 72.140 through 72.176, 72.180 through
72.186, 72.192, 72.206, 72.212, 72.218, 72.230,72.232, 72.234, 72.236,
72.240, 72.242, 72.244, 72.248.
* * * * *
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7. Revise Sec. 72.72 to read as follows:
Sec. 72.72 Material control and accounting requirements for source
material and special nuclear material.
(a) Each licensee shall follow the requirements of Sec. 40.61 and
Sec. 40.64 of this chapter for source material.
(b) Each licensee shall follow the requirements of 10 CFR part 74,
subparts A and B, for special nuclear material.
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8. Revise Sec. 72.74 to read as follows:
Sec. 72.74 Reports of accidental criticality.
(a) Each licensee shall notify the NRC Headquarters Operations
Center within one hour of discovery of accidental criticality.
(b) Each licensee shall make the notifications required by
paragraph (a) of this section to the NRC Headquarters Operations Center
via any available telephone system to ensure that a report is received
within one hour.
(c) Reports required under Sec. 73.71 of this chapter need not be
duplicated under the requirements of this section.
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9. Remove and reserve Sec. Sec. 72.76 and 72.78.
Sec. 72.76 [Removed and Reserved]
Sec. 72.78 [Removed and Reserved]
0
10. The authority citation for part 74 continues to read as follows:
[[Page 67246]]
PART 74--MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR
MATERIAL
Authority: Atomic Energy Act secs. 53, 57, 161, 182, 183, 223,
234, 1701 (42 U.S.C. 2073, 2077, 2201, 2232, 2233, 2273, 2282,
2297f); Energy Reorganization Act secs. 201, 202, 206 (42 U.S.C.
5841, 5842, 5846); Government Paperwork Elimination Act sec. 1704
(44 U.S.C. 3504 note).
0
11. In Sec. 74.2, revise the last sentence in paragraph (a) to read as
follows:
Sec. 74.2 Scope.
(a) * * * The general reporting and recordkeeping requirements of
subpart B of this part also apply to licensees who possess spent
nuclear fuel at independent spent fuel storage installations.
* * * * *
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12. Add Sec. 74.3 to read as follows:
Sec. 74.3 General performance objectives.
In addition to any other requirements in this part, each licensee
who is authorized to possess or use SNM in a quantity greater than 350
grams of contained uranium-235, uranium-233, or plutonium, or any
combination thereof, at a fixed site, shall implement and maintain a
material control and accounting program that enables the licensee to
achieve the following general performance objectives in a timely
manner:
(a) Maintain accurate, current, and reliable information on, and
confirm the quantities and locations of SNM in its possession;
(b) Detect, respond to, and resolve any anomaly indicating a
possible loss, theft, diversion, or misuse of SNM;
(c) Permit rapid determination of whether an actual loss, theft,
diversion, or misuse of SNM has occurred;
(d) Provide information to aid in the investigation and recovery of
missing SNM in the event of an actual loss, theft, diversion, or
misuse; and
(e) Control access to MC&A information that might assist
adversaries to carry out acts of theft, diversion, misuse, or
radiological sabotage involving SNM.
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13. In Sec. 74.4:
0
a. Remove the definition for Effective kilograms of special nuclear
material;
0
b. Add the definitions for Accounting, Custodian, Item control system,
Item control area, Material balance area, and Material control and
accounting in alphabetical order; and
0
c. Revise the definitions for Formula quantity, Special nuclear
material of low strategic significance, and Special nuclear material of
moderate strategic significance.
The additions and revisions read as follows:
Sec. 74.4 Definitions.
* * * * *
Accounting means a system that documents the quantities of special
nuclear material (SNM) held on current inventory by the licensee, and
includes tracking of receipts, shipments, and measured discards, and
transfers of SNM.
* * * * *
Custodian means an individual authorized and qualified by the
licensee who is responsible for controlling the movement of all SNM
into, out of, and within a material balance area.
* * * * *
Formula quantity means strategic special nuclear material (SSNM) in
any combination in a quantity of 5,000 grams or more computed by the
formula, grams = (grams contained U-235) + 2.5 (grams U-233 + grams
plutonium). This class of material is also referred to as a Category I
quantity of material as shown in appendix A to this part.
* * * * *
Item control area (ICA) means a designated administrative area
within the controlled access area, in which SNM is maintained in such a
way that, at any time, a count of the items and the related material
quantities can be obtained using the accounting system. Control of
items moving into, out of, and within an ICA is by the identity of an
item and its assigned material quantity.
Item control system means a system tracking the creation, identity,
element and isotopic content, location, and disposition of all items,
which enables the licensee to maintain current knowledge of each item.
* * * * *
Material balance area (MBA) means a designated contiguous area in
which the control of SNM is such that the quantity of material being
moved into, out of, and within the MBA is an assigned value based on
measurements of both the element content and the isotopic content.
Material control and accounting (MC&A) means a program to control
and account for certain types of nuclear material used at a licensed
facility, including SNM and source material, and which controls and
accounts for unauthorized use of equipment capable of producing
enriched uranium. The purpose of an MC&A program is to deter and detect
any loss, theft, diversion, misuse, or unauthorized production of
nuclear material.
* * * * *
Special nuclear material of low strategic significance means:
(1)(i) Less than an amount of SNM of moderate strategic
significance, but more than 15 grams of uranium-235 (contained in
uranium enriched to 20 percent or more in the U-235 isotope) or 15
grams of uranium-233 or 15 grams of plutonium or the combination of 15
grams when computed by the equation, grams = grams contained U-235 +
grams plutonium + grams U-233; or
(ii) Less than 10,000 grams but more than 1,000 grams of uranium-
235 (contained in uranium enriched to 10 percent or more, but less than
20 percent in the U-235 isotope); or
(iii) 10,000 grams or more of uranium-235 contained in uranium
enriched above natural, but less than 10 percent in the U-235 isotope.
(2) This class of material is also referred to as a Category III
quantity of material as shown in appendix A to this part.
Special nuclear material of moderate strategic significance means:
(1)(i) Less than a formula quantity of SSNM but more than 1,000
grams of uranium-235 (contained in uranium enriched to 20 percent or
more in the U-235 isotope) or more than 500 grams of uranium-233 or
plutonium or in a combined quantity of more than 1,000 grams when
computed by the equation, grams = (grams contained U-235) + 2 (grams U-
233 + grams plutonium); or
(ii) 10,000 grams or more of uranium-235 (contained in uranium
enriched to 10 percent or more but less than 20 percent in the U-235
isotope).
(2) This class of material is also referred to as a Category II
quantity of material as shown in appendix A to this part.
* * * * *
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14. In Sec. 74.11, revise paragraph (b) to read as follows:
Sec. 74.11 Reports of loss or theft or attempted theft or
unauthorized production of special nuclear material.
* * * * *
(b) Each licensee shall make the notifications required by
paragraph (a) of this section to the NRC Headquarters Operations Center
via any available telephone system to ensure that a report is received
within 1 hour.
* * * * *
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15. Revise Sec. 74.13 to read as follows:
Sec. 74.13 Material status reports.
(a) All licensees who possess or who had possessed in the previous
reporting period one gram or more of irradiated or
[[Page 67247]]
non-irradiated SNM are required to submit both a Material Balance
Report and a Physical Inventory Listing Report of these materials to
the NMMSS in accordance with the instructions in paragraph (b) of this
section and according to the following schedule:
(1) Commercial power reactor licensees, authorized under part 50 or
part 52 of this chapter shall submit both reports within 60 calendar
days of the beginning of the physical inventory covered by the reports;
(2) Research and test reactors, authorized under part 50 of this
chapter shall submit both reports within 60 calendar days of the
beginning of the physical inventory covered by the reports;
(3) Independent spent fuel storage licensees, authorized under part
72 of this chapter shall submit both reports within 60 calendar days of
the beginning of the physical inventory covered by the reports.
(4) Licensees subject to Sec. 74.31 shall submit both reports
within 60 calendar days of the beginning of the physical inventory
covered by the reports;
(5) Licensees operating uranium enrichment facilities shall submit
both reports within 60 calendar days of the beginning of the physical
inventory providing a total plant material balance as described in
Sec. 74.33(c)(4)(i);
(6) Licensees subject to subpart D of this part shall submit both
reports within 60 calendar days of the beginning of the physical
inventory covered by the reports;
(7) Licensees subject to subpart E of this part shall submit both
reports within 30 calendar days of the beginning of the physical
inventory covered by the reports; and
(8) All other licensees who possess, or had possessed in the
previous reporting period, one gram or more of irradiated or non-
irradiated SNM shall submit both reports between January 1 and March 31
of each year.
(b) Each licensee shall prepare and submit the reports described in
paragraph (a) of this section as follows:
(1) Reports must be submitted for each Reporting Identification
Symbol (RIS) account, including all holding accounts, concerning SNM
that the licensee has received, produced, possessed, transferred,
consumed, disposed, or lost.
(2) Each licensee shall prepare and submit the reports described in
this section as specified in the instructions in both NUREG/BR-0007 and
NMMSS Report D-24 ``Personal Computer Data Input for NRC Licensees.''
(i) This prescribed computer-readable report replaces the DOE/NRC
Form 742, Material Balance Report, and DOE/NRC Form 742C, Physical
Inventory Listing Report, which have been previously submitted in paper
form.
(ii) Copies of these instructions may be obtained from the U.S.
Nuclear Regulatory Commission, Division of Fuel Cycle Safety and
Safeguards, Washington, DC 20555-0001 or by email to
[email protected].
(c) The Commission may permit a licensee to submit the reports at
other times for good cause. Such requests must be submitted in writing
to Chief, Material Control and Accounting Branch, Division of Fuel
Cycle Safety and Safeguards, Office of Nuclear Material Safety and
Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555.
The licensee must continue to report as required until such request is
granted.
(d) Any licensee who is required to submit routine Material Status
Reports under Sec. 75.35 of this chapter (pertaining to implementation
of the U.S./IAEA Safeguards Agreement) shall prepare and submit these
reports only as provided in that section (instead of as provided in
paragraphs (a) through (b) of this section).
(e) Each licensee subject to the requirements of this section shall
resolve any discrepancies identified during the report review and
reconciliation process within 30 calendar days of notification of a
discrepancy identified by the NRC.
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16. In Sec. 74.15, revise paragraph (b)(2) to read as follows:
Sec. 74.15 Nuclear material transaction reports.
* * * * *
(b) * * *
(2) Perform independent tests to assure the accurate identification
and measurement of the material received, including its weight and
enrichment; except that a licensee authorized under parts 50 or 52 of
this chapter receiving unirradiated fuel rods or unirradiated fuel
assemblies or a licensee authorized under part 70 of this chapter
receiving SNM contained in a sealed source that will not be opened need
not perform such tests; and
* * * * *
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17. In Sec. 74.19, revise the section heading, paragraph (b),
redesignate paragraph (d) as paragraph (e), and add a new paragraph (d)
to read as follows:
Sec. 74.19 Recordkeeping, procedures, item controls, and physical
inventories.
* * * * *
(b) Each licensee authorized to possess special nuclear material,
at any one time and site location, in a quantity greater than 350 grams
of contained uranium-235, uranium-233, or plutonium, or any combination
thereof, shall establish, maintain, and follow written material control
and accounting procedures that are sufficient to enable the licensee to
account for the SNM in its possession under the license. The licensee
shall retain these procedures until the Commission terminates the
license that authorizes possession of the special nuclear material and
retain any superseded portion of the procedures for 3 years after the
portion is superseded.
* * * * *
(d) Production or utilization facilities licensed under part 50 or
52 of this chapter and independent spent fuel storage installations
licensed under part 72 of this chapter shall establish, document,
implement, and maintain an item control system as defined in Sec.
74.4.
* * * * *
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18. In Sec. 74.31, revise paragraphs (a), (b), and (c) to read as
follows:
Sec. 74.31 Nuclear material control and accounting for special
nuclear material of low strategic significance.
(a) General performance objectives. (1) Each licensee who is
authorized to possess and use a quantity greater than 350 grams of
contained uranium-235 or SNM of low strategic significance (as defined
in Sec. 74.4 and shown in appendix A to this part) at any site or
contiguous sites subject to control by the licensee is subject to the
performance objective requirements stated in Sec. 74.3.
(2) Production or utilization facilities licensed under part 50 or
52 of this chapter, independent spent fuel storage installations
licensed under part 72 of this chapter, and operations involving waste
disposal are not subject to the requirements of subpart C of this part.
(b) Implementation. Each applicant for a license, and each licensee
that, upon application for modification of its license, would become
newly subject to paragraph (a) of this section shall submit for
approval an MC&A plan describing how the performance objectives of
Sec. 74.3 and the requirements of paragraph (c) of this section will
be met. The MC&A plan shall be implemented when a license is issued or
modified to authorize the activities being addressed in paragraph (a)
of this section, or by the date specified in a license condition.
(c) Program capabilities. To achieve the Sec. 74.3 performance
objectives, the MC&A plan must include the capabilities described in
paragraphs
[[Page 67248]]
(c)(1) through (10) of this section, and require the licensee to:
(1) Establish, document, and maintain a management structure that
assures clear overall responsibility for material control and
accounting functions, independence from production responsibilities,
separation of key responsibilities, and adequate review and use of
critical material control and accounting procedures;
(2) Establish and maintain a measurement system, which assures that
all quantities in the material accounting records are based on measured
values;
(3) Follow a measurement control program, which assures that
measurement bias is estimated and significant biases are eliminated
from inventory difference values of record;
(4) In each inventory period, control total material control and
accounting measurement uncertainty so that twice its standard error of
the inventory difference (SEID) is less than the greater of 9,000 grams
of U-235 or 0.25 percent of the active inventory, and assure that any
measurement performed under contract is controlled so that the licensee
can satisfy this requirement;
(5) Unless otherwise required to satisfy part 75 of this chapter,
perform a physical inventory at least every 12 months and, within 60
calendar days after the start of the inventory, reconcile and adjust
the book inventory to the results of the physical inventory, and
resolve, or report an inability to resolve, any inventory difference
that is rejected by a statistical test that has a 90-percent power of
detecting a discrepancy of a quantity of uranium-235 established by the
NRC on a site-specific basis;
(6) Establish, document, implement, and maintain an item control
system as defined in Sec. 74.4. Store and handle or subsequently
measure items in a manner such that unauthorized removals of individual
items or any quantity of SNM from items will be detected. Exempted from
this requirement are items in solution with a concentration of less
than 5 grams of uranium-235 per liter and items of waste destined for
burial or incineration;
(7) Conduct and document shipper-receiver difference comparisons
for all SNM receipts on a total shipment basis, and on an individual
batch basis when required by part 75 of this chapter, and ensure that
any shipper-receiver difference that is statistically significant and
exceeds twice the estimated standard deviation of the difference
estimator and 500 grams of uranium-235 is investigated and resolved;
(8) Independently assess the effectiveness of the MC&A program at
least every 24 months, and document management's action on prior
assessment recommendations.
(9) Maintain and follow procedures for tamper-safing (as defined in
Sec. 74.4) of containers or vaults (as defined in Sec. 74.4)
containing SNM, which include control of access to, and distribution
of, unused seals and records;
(10) Designate material balance areas and item control areas and
assign custodial responsibility for each of these areas in a manner
that ensures that such responsibility can be effectively executed for
all SNM possessed under license.
* * * * *
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19. Revise Sec. 74.33 to read as follows:
Sec. 74.33 Nuclear material control and accounting for uranium
enrichment facilities authorized to produce special nuclear material of
low strategic significance.
(a) General performance objectives. Each licensee who is authorized
to possess equipment capable of enriching uranium or operate an
enrichment facility, and produce, possess, or use a quantity greater
than 350 grams of contained uranium-235 or SNM of low strategic
significance (as defined in Sec. 74.4 and shown in appendix A to this
part) at any site or contiguous sites, subject to control by the
licensee, is subject to the performance objective requirements stated
in Sec. 74.3 and to the following performance objectives:
(1) Maintain accurate, current, and reliable information on, and
confirm the quantities and locations of source material (SM) in its
possession;
(2) Detect, respond to, and resolve any anomaly indicating a
possible loss, theft, diversion, or misuse of SM;
(3) Permit rapid determination of whether an actual loss, theft,
diversion, or misuse of SM has occurred;
(4) Provide information to aid in the investigation and recovery of
missing SM in the event of an actual loss, theft, diversion, or misuse;
and
(5) Provide information to aid in the investigation of any
unauthorized production of uranium, including unauthorized production
of uranium enriched to 10 percent or more in the isotope U-235. (For
centrifuge enrichment facilities this requirement does not apply to
each cascade during its start-up process, not to exceed the first 24
hours.)
(b) Implementation. Each applicant for a license who would, upon
issuance of a license under any part of this chapter, be subject to the
requirements of paragraph (a) of this section shall:
(1) Submit for approval an MC&A plan describing how the performance
objectives of Sec. Sec. 74.3 and 74.33(a), the program capabilities of
Sec. 74.33(c), and the recordkeeping requirements of Sec. 74.33(d)
will be met; and
(2) Implement the NRC-approved MC&A plan submitted under paragraph
(b)(1) of this section prior to:
(i) The cumulative receipt of 5,000 grams of U-235 contained in any
combination of natural, depleted, or enriched uranium; or
(ii) The NRC's issuance of a license to test or operate the
enrichment facility, whichever occurs first.
(c) Program capabilities. To achieve the general performance
objectives stated and referenced in paragraph (a) of this section, the
MC&A plan must include the capabilities described in paragraphs (c)(1)
through (10) of this section. The licensee shall establish, document,
implement and maintain:
(1) A management structure that ensures:
(i) Clear overall responsibility for MC&A functions;
(ii) Independence of MC&A management from production
responsibilities;
(iii) Separation of key MC&A responsibilities from each other; and
(iv) Use of approved written MC&A procedures and periodic review of
those procedures;
(2) A measurement program that ensures that all quantities of SM
and SNM in the accounting records are based on measured values;
(3) A measurement control program that ensures that:
(i) Measurement bias is estimated and minimized through the
measurement control program, and any significant biases are eliminated
from inventory difference values of record;
(ii) All MC&A measurement systems are controlled so that twice the
standard error of the inventory difference (SEID), based on all
measurement error contributions, is less than the greater of 5,000
grams of U-235 or 0.25 percent of the U-235 of the active inventory for
each total plant material balance; and
(iii) Any measurements performed under contract are controlled so
that the licensee can satisfy the requirements of paragraphs (c)(3)(i)
and (ii) of this section;
(4) A physical inventory program that provides for:
(i) Performing, unless otherwise required to satisfy part 75 of
this chapter, a dynamic (nonshutdown) physical inventory of in-process
(e.g., in the enrichment equipment) uranium and U-235 at least every 65
calendar days, and performing a static physical
[[Page 67249]]
inventory of all other uranium and total U-235 contained in natural,
depleted, and enriched uranium located outside of the enrichment
processing equipment at least every 370 calendar days, with static
physical inventories being conducted in conjunction with a dynamic
physical inventory of in-process uranium and U-235 so as to provide a
total plant material balance at least every 370 calendar days; and
(ii) Reconciling and adjusting the book inventory to the results of
the static physical inventory and resolving, or reporting an inability
to resolve, any inventory difference that is rejected by a statistical
test that has a 90-percent power of detecting a discrepancy of a
quantity of U-235, established by the NRC on a site-specific basis,
within 60 calendar days after the start of each static physical
inventory;
(5) A detection program, independent of production, which provides
high assurance of detecting and resolving:
(i) Production of uranium enriched to 10 percent or more in the U-
235 isotope, to the extent that SNM of moderate strategic significance
(as defined in Sec. 74.4) could be produced within any 370 calendar
day period;
(ii) Production of uranium enriched to 20 percent or more in the U-
235 isotope; and
(iii) Unauthorized production of uranium of low strategic
significance (as defined in Sec. 74.4);
(6) An item control system (as defined in Sec. 74.4). The system
must ensure that items are stored and handled or subsequently measured
in a manner such that unauthorized removal of any quantity of U-235, as
individual items or as uranium contained in items, will be detected.
Exempted from this requirement are items in solution with a
concentration of less than 5 grams of uranium-235 per liter and items
of waste destined for burial or incineration;
(7) A system for conducting and documenting shipper-receiver
difference comparisons for all source material and SNM receipts on a
total shipment basis, and on an individual batch basis when required by
part 75 of this chapter, to ensure that any shipper-receiver difference
that is statistically significant and exceeds twice the estimated
standard deviation of the difference estimator and 500 grams of
uranium-235 is investigated and resolved;
(8) An assessment program that:
(i) Independently assesses the effectiveness of the MC&A program at
least every 24 months;
(ii) Documents the results of the above assessment;
(iii) Documents management's findings on whether the MC&A program
is currently effective; and
(iv) Documents any actions taken on recommendations from prior
assessments;
(9) Procedures for tamper-safing (as defined in Sec. 74.4) of
containers or vaults (as defined in Sec. 74.4) containing SNM, which
include control of access to, and distribution of, unused seals and
records;
(10) Material balance areas and item control areas, and shall
assign custodial responsibility for each of these areas in a manner
that ensures that such responsibility can be effectively executed for
all SM and SNM possessed under license.
(d) Recordkeeping.
(1) Each licensee shall establish records that will demonstrate
that the performance objectives stated and referenced in paragraph (a)
of this section and the program capabilities of paragraph (c) of this
section have been met and maintain these records in an auditable form,
available for inspection, for at least 3 years, unless a longer
retention time is required by part 75 of this chapter.
(2) Records that must be maintained pursuant to this part may be
the original or a reproduced copy or a microform if such reproduced
copy or microform is duly authenticated by authorized personnel and the
microform is capable of producing a clear and legible copy after
storage for the period specified by Commission regulations. The record
may also be stored in electronic media with the capability for
producing, on demand, legible, accurate, and complete records during
the required retention period. Records such as letters, drawings, and
specifications must include all pertinent information such as stamps,
initials, and signatures.
(3) The licensee shall maintain adequate safeguards against
tampering with and loss of records.
0
20. In Sec. 74.41, revise paragraphs (a), (b), and (c) to read as
follows:
Sec. 74.41 Nuclear material control and accounting for special
nuclear material of moderate strategic significance.
(a) General performance objectives. (1) Each licensee who is
authorized to possess and use SNM of moderate strategic significance
(as defined in Sec. 74.4 and shown in appendix A of this part) or 1
kilogram or more but less than 5 kilograms of SSNM (as defined in Sec.
74.4 and shown in appendix A to this part) in irradiated fuel
reprocessing operations at any site or contiguous sites subject to
control by the licensee, is subject to the performance objective
requirements stated in Sec. 74.3.
(2) Production or utilization facilities licensed under part 50 or
52 of this chapter; licensees using reactor irradiated fuels involved
in research, development, and evaluation programs in facilities other
than irradiated fuel reprocessing plants; and operations involving
waste disposal, are not subject to the requirements of subpart D of
this part.
(b) Implementation. Each applicant for a license, and each licensee
that, upon application for modification of its license, would become
newly subject to paragraph (a) of this section shall submit for
approval an MC&A plan describing how the performance objectives of
Sec. 74.3 and the requirements of paragraph (c) of this section will
be met. The MC&A plan shall be implemented when a license is issued or
modified to authorize the activities being addressed in paragraph (a)
of this section, or by the date specified in a license condition.
(c) Program capabilities. To achieve the Sec. 74.3 performance
objectives, the MC&A plan must include the capabilities described in
Sec. Sec. 74.43 and 74.45, and must incorporate checks and balances
that are sufficient to detect falsification of data and reports that
could conceal diversion of SNM by:
(1) A single individual, including an employee in any position; or
(2) Collusion between two individuals, one or both of whom have
authorized access to SNM.
0
21. In Sec. 74.43, revise paragraphs (b)(3), (b)(5), (b)(6), (b)(7),
and (c)(3); add new paragraph (c)(9); and revise paragraph (d)(5) to
read as follows:
Sec. 74.43 Internal controls, inventory, and records.
* * * * *
(b) * * *
(3) The licensee shall provide for the adequate review, approval,
and use of written MC&A procedures that are identified in the approved
MC&A plan as being critical to the effectiveness of the described
system.
* * * * *
(5) The licensee shall establish, document, implement, and maintain
an item control system as defined in Sec. 74.4. The system must ensure
that items are stored and handled or subsequently measured in a manner
such that unauthorized removals of individual items or any quantity of
material (as defined in Sec. 74.4) from items will be detected.
(6) Exempted from the requirements of paragraph (b)(5) of this
section are items in solution with a concentration
[[Page 67250]]
of less than 5 grams of U-235 per liter, and items of waste destined
for burial or incineration.
(7) Conduct and document shipper-receiver difference comparisons
for all SNM receipts,
* * * * *
(c) * * *
(3) Maintain and follow procedures for tamper-safing (as defined in
Sec. 74.4) of containers or vaults (as defined in Sec. 74.4)
containing SNM which include control of access to, and distribution of,
unused seals and records;
* * * * *
(9) Designate material balance areas and item control areas, and
assign custodial responsibility for each of these areas in a manner
that ensures that such responsibility can be effectively executed for
all SNM possessed under license.
* * * * *
(d) * * *
(5) Establish records that will demonstrate that the performance
objectives of Sec. 74.3 and Sec. 74.41(a)(1), the system capabilities
of paragraphs (b) and (c) of this section, and Sec. 74.45(b) and (c)
have been met, and maintain these records in an auditable form,
available for inspection, for at least 3 years, unless a longer
retention time is specified by Sec. 74.19(b), part 75 of this chapter,
or by a specific license condition.
0
22. In Sec. 74.45, revise paragraph (c)(4) to read as follows:
Sec. 74.45 Measurements and measurement control.
* * * * *
(c) * * *
(4) Establish and maintain a measurement control system so that for
each inventory period the standard error of the inventory difference
(SEID) is less than 0.125 percent of the active inventory, and assure
that any MC&A measurements performed under contract are controlled so
that the licensee can satisfy this requirement.
* * * * *
0
23. Revise Sec. 74.51 to read as follows:
Sec. 74.51 Nuclear material control and accounting for strategic
special nuclear material.
(a) General performance objectives. (1) Each licensee who is
authorized to possess and use five or more formula kilograms of
strategic special nuclear material (SSNM), as defined in Sec. 74.4 and
shown in appendix A to this part, at any site or contiguous sites
subject to control by the licensee is subject to the performance
objective requirements stated in Sec. 74.3, and to the following
performance objectives:
(i) Ongoing confirmation of the presence of SSNM in assigned
locations;
(ii) Timely detection of the possible abrupt loss of five or more
formula kilograms of SSNM from an individual unit process; and
(iii) Rapid determination of whether an actual loss of five or more
formula kilograms of SSNM occurred.
(2) Production or utilization facilities licensed under part 50 or
52 of this chapter, independent spent fuel storage installations
licensed under part 72 of this chapter; and any licensee operations
involving waste disposal, are not subject to the requirements of
subpart E of this part.
(b) Implementation. Each applicant for a license, and each licensee
that, upon application for modification of its license, would become
newly subject to paragraph (a) of this section shall submit for
approval an MC&A plan describing how the performance objectives of
Sec. 74.3 and paragraph (a) of this section will be achieved, and how
the requirements of paragraph (c) of this section will be met. The MC&A
plan shall be implemented when a license is issued or modified to
authorize the activities being addressed in paragraph (a) of this
section, or by the date specified in a license condition.
(c) Program capabilities. To achieve the general performance
objectives specified in Sec. 74.3 and paragraph (a) of this section,
the MC&A plan must provide the capabilities described in Sec. Sec.
74.53, 74.55, 74.57 and 74.59 and must incorporate checks and balances
that are sufficient to detect falsification of data and reports that
could conceal diversion of SNM or SSNM by:
(1) A single individual, including an employee in any position; or
(2) Collusion between two individuals, one or both of whom have
authorized access to SNM or SSNM.
(d) Inventories. Notwithstanding Sec. 74.59(f)(1), licensees shall
perform at least 3 physical inventories at intervals not to exceed 65
calendar days after implementation of the NRC-approved MC&A plan and
shall continue to perform such inventories at intervals not to exceed
65 calendar days until performance acceptable to the NRC has been
demonstrated and the Commission has issued formal approval to perform
physical inventories at intervals not to exceed 185 calendar days.
Licensees who have prior experience with process monitoring and/or can
demonstrate acceptable performance against all MC&A plan commitments
may request authorization to perform inventories at intervals not to
exceed 185 calendar days at an earlier date.
0
24. In Sec. 74.53, revise the introductory text of paragraph (a), and
paragraphs (a)(3), (a)(4), and (c)(1) to read as follows:
Sec. 74.53 Process monitoring.
(a) Licensees subject to Sec. 74.51 shall monitor internal
transfers, storage, and processing of SSNM. The process monitoring must
achieve the detection capabilities described in paragraph (b) of this
section for all SSNM except:
* * * * *
(3) SSNM with an estimated measurement standard deviation greater
than 5 percent that is either input or output material associated with
a unit that processes less than five formula kilograms over a period of
95 calendar days; and
(4) SSNM involved in research and development operations that
process less than five formula kilograms during a period of seven
calendar days.
* * * * *
(c) * * *
(1) Perform material balance tests on a lot or a batch basis, as
appropriate, or at intervals not to exceed 30 calendar days, whichever
is sooner, and investigate any difference greater than 200 grams of
plutonium or U-233 or 300 grams of U-235 that exceeds three times the
estimated standard error of the inventory difference;
* * * * *
0
25. In Sec. 74.57, revise the introductory text of paragraph (c) to
read as follows:
Sec. 74.57 Alarm resolution.
* * * * *
(c) Each licensee shall notify the NRC Headquarters Operations
Center by telephone of any MC&A alarm that remains unresolved beyond
the time period specified for its resolution in the licensee's MC&A
plan. Notification must occur within 24 hours except when a holiday or
weekend intervenes in which case the notification must occur on the
next scheduled workday. The licensee may consider an alarm to be
resolved if:
* * * * *
0
26. In Sec. 74.59, revise paragraph (e)(7), the introductory text of
paragraph (f)(1), and paragraphs (f)(2)(i), (h)(2)(ii), and (h)(5) to
read as follows:
Sec. 74.59 Quality assurance and accounting requirements.
* * * * *
(e) * * *
(7) Investigate and take corrective action, as appropriate, to
identify and reduce associated measurement biases when, for like
material types (i.e., measured by the same measurement system), the net
cumulative shipper/
[[Page 67251]]
receiver differences accumulated over a period not to exceed 185
calendar days results in a value greater than one formula kilogram or
0.1 percent of the total amount received.
* * * * *
(f) * * *
(1) Except as required by part 75 of this chapter, perform a
physical inventory at least every 185 calendar days and within 45
calendar days after the start of the ending inventory:
* * * * *
(2) * * *
(i) Development of procedures for tamper-safing of containers or
vaults containing SSNM not in process that include adequate controls to
assure the validity of assigned SSNM values and that include control of
access to, and distribution of, unused seals and records;
* * * * *
(h) * * *
(2) * * *
(ii) Any scrap measured with a standard deviation greater than 5
percent of the measured amount is recovered so that the results are
segregated by inventory period and recovered within 185 calendar days
of the end of the inventory period in which the scrap was generated
except where it can be demonstrated that the scrap measurement
uncertainty will not cause noncompliance with Sec. 74.59(e)(5).
* * * * *
(5) Designate material balance areas and item control areas and
assign custodial responsibility for each of these areas in a manner
that ensures that such responsibility can be effectively executed for
all SSNM possessed under license.
0
27. Add appendix A to part 74 to read as follows:
Appendix A to Part 74--Categories of Special Nuclear Material
Notes:
1. Sealed sources as defined in Sec. 74.4 are excluded from the
quantities in the table.
2. Irradiated fuel, which by virtue of its original fissile
material content is included as Category I or II before irradiation,
is reduced one category level, during the period of time that the
radiation level from the fuel exceeds 1 Sv per hour (100 rads per
hour) at 1 meter, unshielded.
----------------------------------------------------------------------------------------------------------------
Isotopic Category I (Subpart Category II Category III
Material composition E) (Subpart D) (Subpart C)
----------------------------------------------------------------------------------------------------------------
Plutonium................ All plutonium 2,000 grams or more. Less than 2,000 500 grams or less,
(element). grams, but more but more than 15
than 500 grams. grams.
Uranium-233.............. All U-233 2,000 grams or more. Less than 2,000 500 grams or less,
enrichments. grams, but more but more than 15
than 500 grams. grams.
Uranium-235.............. Uranium enriched to 5,000 grams or more. Less than 5,000 1,000 grams or
20% or more in grams, but more less, but more
isotope U-235. than 1,000 grams. than 15 grams.
Uranium enriched to .................... 10,000 grams or more Less than 10,000
10%, but less than grams, but more
20%, in isotope U- than 1,000 grams.
235.
Uranium enriched .................... .................... 10,000 grams or
above 0.711%, but more.
less than 10%, in
isotope U-235.
----------------------------------------------------------------------------------------------------------------
The formulae to calculate a quantity of SSNM as defined in Sec.
74.4 are as follows:
Category I, 5000 grams or more of SSNM
[cir] grams = grams contained U-235 + 2.5 (grams U-233 + grams
Pu)
Category II, less than 5000 grams but more than 1000 grams
of SSNM
[cir] grams = grams contained U-235 + 2 (grams U-233 + grams Pu)
Category III, 1000 grams or less but more than 15 grams of
SSNM
[cir] grams = grams contained U-235 + grams U-233 + grams Pu.
0
28. The authority citation for part 150 continues to read as follows:
PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN
AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274
Authority: Atomic Energy Act secs. 161, 181, 223, 234 (42
U.S.C. 2201, 2021, 2231, 2273, 2282); Energy Reorganization Act sec.
201 (42 U.S.C. 5841); Government Paperwork Elimination Act sec. 1704
(44 U.S.C. 3504 note); Energy Policy Act of 2005, Public Law 109-58,
119 Stat. 594 (2005).
Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued
under Atomic Energy Act secs. 11e(2), 81, 83, 84 (42 U.S.C.
2014e(2), 2111, 2113, 2114). Section 150.14 also issued under Atomic
Energy Act sec. 53 (42 U.S.C. 2073).
Section 150.15 also issued under Nuclear Waste Policy Act secs.
135 (42 U.S.C. 10155, 10161). Section 150.17a also issued under
Atomic Energy Act sec. 122 (42 U.S.C. 2152). Section 150.30 also
issued under Atomic Energy Act sec. 234 (42 U.S.C. 2282).
0
29. In Sec. 150.17 revise paragraphs (a) and (b) to read as follows:
Sec. 150.17 Submission to commission of nuclear material status
reports.
(a) Except as specified in paragraph (d) of this section and Sec.
150.17a, all licensees who possess or who had possessed in the previous
reporting period, under an Agreement State license, one gram or more of
irradiated or non-irradiated special nuclear material are required to
submit both a Material Balance Report and a Physical Inventory Listing
Report of these materials to the NMMSS in accordance with the
instructions in paragraph (a)(1) of this section. Both reports shall be
submitted between January 1 and March 31 of each year.
(1) Each licensee shall prepare and submit the reports described in
this section as follows:
(i) Reports must be submitted for each Reporting Identification
Symbol (RIS) account, including all special nuclear material that the
licensee has received, produced, possessed, transferred, consumed,
disposed, or lost.
(ii) Each licensee shall prepare and submit the reports described
in this section as specified in the instructions in both NUREG/BR-0007
and NMMSS Report D-24, ``Personal Computer Data Input for NRC
Licensees.''
(iii) This prescribed computer-readable report replaces the DOE/NRC
Form 742, Material Balance Report, and DOE/NRC Form 742C, Physical
Inventory Listing Report, which have been previously submitted in paper
form.
(iv) Copies of these instructions may be obtained from the U.S.
Nuclear Regulatory Commission, Division of Fuel Cycle Safety and
Safeguards, Washington, DC 20555-0001 or by email to
[email protected].
(2) The Commission may permit a licensee to submit the reports at
other times for good cause. Such requests must be submitted in writing
to Chief, Material Control and Accounting Branch, Division of Fuel
Cycle Safety
[[Page 67252]]
and Safeguards, Office of Nuclear Material Safety and Safeguards, U.S.
Nuclear Regulatory Commission, Washington, DC 20555. The licensee must
continue to report as required until such request is granted.
(3) Any licensee who is required to submit routine Material Status
Reports under Sec. 75.35 of this chapter (pertaining to implementation
of the U.S./IAEA Safeguards Agreement) shall prepare and submit these
reports only as provided in that section (instead of as provided in
paragraphs (a) through (b) of this section).
(4) Each licensee subject to the requirements of this section shall
resolve any discrepancies identified during the report review and
reconciliation process within 30 calendar days of notification of a
discrepancy identified by the NRC.
(b) Except as specified in paragraph (d) of this section and Sec.
150.17a, each person possessing, or who had possessed in the previous
reporting period, at any one time and location, under an Agreement
State license:
(1) One kilogram or more of uranium or thorium source material with
foreign obligations, shall document holdings as of September 30 of each
year and submit the material status reports to the Commission within 30
days. Alternatively, these reports may be submitted with the licensee's
material status reports on special nuclear material filed under part 74
of this chapter. This statement must be submitted to the address
specified in the reporting instructions in NUREG/BR-0007, and include
the RIS assigned by the Commission.
(2) One kilogram or more of uranium or thorium source material in
the operation of enrichment services, down blending uranium that has an
initial enrichment of the U-235 isotope of 10 percent or more, or in
the fabrication of mixed-oxide fuels shall complete and submit, in
computer-readable format, Material Balance and Physical Inventory
Listing Reports concerning source material that the licensee has
received, produced, possessed, transferred, consumed, disposed, or
lost. Reports must be submitted for each RIS account including all
holding accounts. Each licensee shall prepare and submit these reports
as specified in the instructions in NUREG/BR-0007 and NMMSS Report D-
24, ``Personal Computer Data Input for NRC Licensees.'' These reports
must document holdings as of September 30 of each year and be submitted
to the Commission within 30 days. Alternatively, these reports may be
submitted with the licensee's material status reports on special
nuclear material filed under part 74 of this chapter. Copies of the
reporting instructions may be obtained by writing to the U.S. Nuclear
Regulatory Commission, Division of Fuel Cycle Safety and Safeguards,
Washington, DC 20555-0001, or by email to
[email protected]. Each licensee required to report
material balance, and inventory information, as described in this part,
shall resolve any discrepancies identified during the report review and
reconciliation process within 30 calendar days of the notification of a
discrepancy identified by the NRC.
* * * * *
Dated at Rockville, Maryland, this October 23, 2013.
For the Nuclear Regulatory Commission.
Annette Vietti-Cook,
Secretary of the Commission.
[FR Doc. 2013-25617 Filed 11-7-13; 8:45 am]
BILLING CODE 7590-01-P