[Federal Register Volume 91, Number 12 (Tuesday, January 20, 2026)]
[Rules and Regulations]
[Pages 2287-2290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-00904]


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NUCLEAR REGULATORY COMMISSION

10 CFR Part 50

[NRC-2024-0189]


Commercial Non-Power Production or Utilization Facilities

AGENCY: Nuclear Regulatory Commission.

ACTION: Notification of interpretation; request for comment.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is issuing an 
interpretation of its regulations to include non-power production or 
utilization facilities (NPUFs) licensed under section 103 of the Atomic 
Energy Act of 1954, as amended (AEA), within the scope of the NRC's 
backfitting regulations and to exclude non-commercial NPUFs licensed 
under section 104 of the AEA from the scope of the NRC's backfitting 
regulations. The interpretation is effective immediately

[[Page 2288]]

with a 30-day post-promulgation comment period.

DATES: This interpretation is effective January 20, 2026. Submit 
comments by February 19, 2026. Comments received after this date will 
be considered if it is practical to do so, but the Commission is able 
to ensure consideration of only comments received by this date.

ADDRESSES: You may submit comments by any of the following methods; 
however, the NRC encourages electronic comment submission through the 
Federal rulemaking website:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2024-0189. Address 
questions about NRC dockets to Helen Chang; telephone: 301-415-3228; 
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.
    You can read a plain language description of this interpretation at 
https://www.regulations.gov/docket/ NRC-2024-0189. For additional 
direction on obtaining information and submitting comments, see 
``Obtaining Information and Submitting Comments'' in the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Christopher Prescott, Office of 
Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-001; telephone: 301-287-9452; email: 
[email protected]. For technical questions contact Jeff 
Rady, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-001; telephone: 301-415-3724; email: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Obtaining Information and Submitting Comments

A. Obtaining Information

    Please refer to Docket ID NRC-2024-0189 when contacting the NRC 
about the availability of information for this action. You may obtain 
publicly available information related to this action by any of the 
following methods:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2024-0189.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly available documents online in the 
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin ADAMS Public 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]. For the convenience of the reader, instructions 
about obtaining materials referenced in this document are provided in 
the ``Availability of Documents'' section.
     NRC's PDR: The NRC Public Document Room (PDR), where you 
may examine and order copies of publicly available documents, is open 
by appointment. To make an appointment to visit the PDR, please send an 
email to [email protected] or call 1-800-397-4209 or 301-415-4737, 
between 8 a.m. and 4 p.m. eastern time, Monday through Friday, except 
Federal holidays.

B. Submitting Comments

    The NRC encourages electronic comment submission through the 
Federal Rulemaking website (https://www.regulations.gov). Please 
include Docket ID NRC-2024-0189 in your comment submission.
    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 
https://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 into ADAMS.

II. Background

    An NPUF is defined in section 50.2, ``Definitions,'' in part 50, 
``Domestic Licensing of Production and Utilization Facilities,'' of 
title 10 of the Code of Federal Regulations (10 CFR) as a production or 
utilization facility, licensed under paragraph (a) or (c) of 10 CFR 
50.21, ``Class 104 licenses; for medical therapy and research and 
development facilities,'' or 10 CFR 50.22, ``Class 103 licenses; for 
commercial and industrial facilities,'' as applicable, that is not a 
nuclear power reactor or a production facility as defined under 
paragraphs (1) and (2) of the definition of ``production facility'' in 
10 CFR 50.2. The NRC's regulatory history and practice has excluded 
NPUFs licensed under section 104 of the AEA (i.e., research reactors 
and testing facilities) from the scope of 10 CFR 50.109, 
``Backfitting'' (the Backfit Rule). The NRC has always considered 
nuclear power reactors licensed under section 103 or 104b of the AEA 
(i.e., commercial nuclear power reactors) to be within the scope of the 
Backfit Rule.\1\ The NRC only recently issued a construction permit for 
a commercial NPUF under section 103 of the AEA for the first time, so 
no history or long-standing practice for whether commercial NPUFs are 
within the scope of the Backfit Rule exists.
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    \1\ More than half of the currently licensed commercial nuclear 
power plants in the United States are licensed under section 104b of 
the AEA. Section 104b requires the NRC to impose the minimum amount 
of regulation to permit the NRC to fulfill its AEA obligations. The 
Commission has historically subjected commercial 10 CFR part 50 
facilities licensed under section 103 or 104b of the AEA (i.e., 
nuclear power reactors) to the same public health and safety and 
common defense and security requirements. In the preamble to the 
1991 final rule for 10 CFR part 54, ``Requirements for Renewal of 
Operating Licenses for Nuclear Power Plants,'' the Commission stated 
that for all practical purposes, there is little technical 
distinction between the class of nuclear power plants licensed under 
section 103 and the class licensed under section 104b. Only the 1970 
change in the AEA separates these two classes of plants. See the 
final rule, ``Nuclear Power Plant License Renewal'' (56 FR 64943, 
64962; December 13, 1991).
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    In the original version of the Backfit Rule, which was published by 
the Atomic Energy Commission in 1970, neither the regulation nor the 
preamble could be read as excluding NPUFs from the scope of the rule. 
In both the proposed and final rules, as well as the associated 
preambles, the Atomic Energy Commission referred simply to 
``facility,'' ``facilities,'' ``production and utilization facility,'' 
and ``production and utilization facilities.'' No reference

[[Page 2289]]

was made to either ``power'' or ``non-power'' facilities.
    The NRC amended the Backfit Rule in 1985 and 1988. The NRC did not 
make any revisions to the rule text in the 1985 or 1988 amendments to 
indicate that the Commission intended to modify the scope of the 
Backfit Rule. In the 1985 rulemaking, the Commission revised the 
definition of ``backfitting'' in 10 CFR 50.109 from the 1970 version to 
remove the reference to a ``production and utilization facility'' and 
replaced it with the general, undefined term ``facility.'' Neither 
``power'' nor ``non-power'' is referenced in the rule text.
    Although not indicated by the revised rule text, the Commission did 
clarify the scope of the Backfit Rule with the 1985 and 1988 
rulemakings. The regulatory basis for the 1985 and 1988 rulemakings was 
expressed solely in terms of nuclear power reactors. The titles and 
pages of the NRC's advance notice of proposed rulemaking and policy 
statement on backfitting in 1983, and the titles and preambles of the 
proposed and final rules for those amendments to Sec.  50.109 involved 
only nuclear power reactors. The 1985 final rule stated that its 
purpose was to establish requirements for the future management of 
backfitting for power reactors.\2\
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    \2\ ``Revision of Backfitting Process for Power Reactors'' (50 
FR 38097; September 20, 1985).
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    Moreover, the NRC practice has been to apply the Backfit Rule to 
only nuclear power reactors. In a 1980s rulemaking that would have 
required research reactors and testing facilities to switch from highly 
enriched uranium to low enriched uranium, the Commission declined to 
apply the Backfit Rule in that rulemaking, stating in its staff 
requirements memorandum, ``[T]he backfit rule should not be applied to 
this amendment of the regulations which relates only to non-power 
reactors.'' In a 2012 final rule concerning non-power reactors, the 
Commission stated that the NRC determined that the backfit provisions 
in Sec.  50.109 do not apply to test, research, or training reactors 
because the rulemaking record for Sec.  50.109 indicates that the 
Commission intended to apply this provision to only power reactors, and 
NRC practice has been consistent with this rulemaking record.
    In 2019, the Commission updated Management Directive (MD) 8.4, 
``Management of Backfitting, Forward Fitting, Issue Finality, and 
Information Requests.'' That MD provides the Commission's policies and 
direction to the NRC staff on, among other things, the agency's 
backfitting ``of nuclear power reactor facilities and select nuclear 
materials facilities.'' The MD does not mention NPUFs. This silence is 
consistent with the Commission position articulated in the 2012 final 
rule preamble that NPUFs are not within the scope of the Backfit Rule.
    Underlying the practice of excluding NPUFs from the scope of the 
Backfit Rule are statutory restrictions on the amount of regulation 
that the NRC can impose on facilities licensed under section 104 of the 
AEA. NPUFs have typically been licensed under section 104a or 104c of 
the AEA for non-commercial medical therapy or non-commercial research 
and development facilities, respectively. Sections 104a and 104c 
require the NRC to impose, in general, the minimum amount of regulation 
to permit the NRC to fulfill its AEA obligations. The NRC's record 
demonstrates the agency's adherence to the ``minimum regulation'' 
standard for NPUFs. Since 1990, the NRC has imposed requirements on 
NPUFs through only four rulemakings and six orders (that were not 
issued in response to a request or application).
    In 2016, the NRC issued a construction permit under 10 CFR part 50 
to SHINE Medical Technologies, Inc. (SHINE). SHINE applied for an 
operating license under 10 CFR part 50 in 2019. SHINE proposes to 
operate a medical isotope production facility to produce molybdenum-99. 
The facility would meet the definition of an NPUF if the NRC issues 
SHINE an operating license because the facility would not be a nuclear 
power reactor, and the facility would not be a production facility as 
defined under paragraphs (1) and (2) of the definition of ``production 
facility'' in Sec.  50.2. SHINE would be issued an operating license 
pursuant to section 103 of the AEA and 10 CFR 50.22, because SHINE 
proposes to engage in activities that satisfy the statutory and 
regulatory provisions for commercial licenses. Therefore, SHINE would 
be a commercial NPUF. The NRC is clarifying whether commercial NPUFs 
like SHINE are within the scope of the Backfit Rule.

III. Interpretation

    The NRC interprets its regulations to include within the scope of 
10 CFR 50.109 commercial NPUFs licensed under section 103 of the AEA 
and exclude from the scope of 10 CFR 50.109 non-commercial NPUFs 
licensed under section 104 of the AEA.
    Commercial facilities licensed under section 103 or 104b of the AEA 
have always been considered within the scope of the Backfit Rule. In 
contrast, the Commission has excluded from the scope of the Backfit 
Rule non-commercial facilities licensed under section 104a or 104c of 
the AEA. Consistent with this approach, the Commission concludes that 
commercial NPUFs licensed under section 103 of the AEA and 10 CFR 50.22 
are within the scope of the Backfit Rule and non-commercial facilities 
licensed under section 104a or 104c of the AEA and 10 CFR 50.21 are 
outside the scope of the Backfit Rule.

IV. Request for Comment

    The NRC is requesting comments on this interpretation. The NRC will 
publish a document in the Federal Register containing an evaluation of 
the significant comments and any revisions to this interpretation made 
as a result of the comments and their evaluation.

V. Availability of Documents

    The documents identified in the following table are available to 
interested persons through one or more of the following methods, as 
indicated.

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                                   ADAMS accession No./ web link/Federal
             Document                        Register citation
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SRM-M240904: Affirmation Session-- ML24248A208 (package).
 SECY-19-0062, ``Final Rule: Non-
 power Production or Utilization
 Facility License Renewal (RIN
 3150-AI96, NRC-2011-0087),''
 September 4, 2024.
Management Directive (MD) 8.4,     ML18093B087.
 ``Management of Backfitting,
 Forward Fitting, Issue Finality,
 and Information Requests,''
 September 20, 2019.
Federal Register Notice--Final     89 FR 106234.
 Rule; Non-Power Production or
 Utilization Facility License
 Renewal, December 30, 2024.
Federal Register Notice--Final     56 FR 64943, 64962.
 Rule; Nuclear Power Plant
 License Renewal; Final Rule,
 December 13, 1991.

[[Page 2290]]

 
Federal Register Notice--Final     53 FR 20603.
 Rule; Revision of Backfitting
 Process for Power Reactors;
 Final Rule, June 6, 1988.
Federal Register Notice--Final     50 FR 38097.
 Rule; Revision of Backfitting
 Process for Power Reactors,
 September 20, 1985.
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VI. Paperwork Reduction Act

    This proposed interpretation does not contain any new or amended 
collections of information subject to the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.). Existing collections of information were 
approved by the Office of Management and Budget (OMB), approval number 
3150-0011.

Public Protection Notification

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

VII. Regulatory Planning and Review

    Executive Order (E.O.) 12866, as amended by E.O. 14215, provides 
that the Office of Information and Regulatory Affairs (OIRA) will 
determine whether a regulatory action is significant as defined by E.O. 
12866 and will review all significant regulatory actions. OIRA 
determined that this notice of interpretation is not a significant 
regulatory action under E.O. 12866.

VIII. Congressional Review Act

    This notification of interpretation is a rule as defined in the 
Congressional Review Act (5 U.S.C. 801-808). However, the Office of 
Management and Budget has not found it to be a major rule as defined in 
the Congressional Review Act.

    Dated: January 14, 2026.

    For the Nuclear Regulatory Commission.
Jeremy Groom,
Acting Director, Office of Nuclear Reactor Regulation.
[FR Doc. 2026-00904 Filed 1-16-26; 8:45 am]
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