[Federal Register Volume 91, Number 68 (Thursday, April 9, 2026)]
[Proposed Rules]
[Pages 17893-17906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-06877]
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NUCLEAR REGULATORY COMMISSION
10 CFR Part 37
[NRC-2025-1238]
RIN 3150-AL51
Modernizing Requirements Relating to Physical Protection of
Category 1 and Category 2 Quantities of Radioactive Material
AGENCY: Nuclear Regulatory Commission.
ACTION: Proposed rule.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is conducting a
review and wholesale revision of its regulations. As part of this
initiative, the NRC is proposing to revise its regulations relating to
physical protection and security of category 1 and category 2
quantities of radioactive material.
DATES: Submit comments by May 11, 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 before this
date.
ADDRESSES: Submit your comments, identified by Docket ID NRC-2025-1238,
at https://www.regulations.gov. If your material cannot be submitted
using https://www.regulations.gov, call or email the individuals listed
in the FOR FURTHER INFORMATION CONTACT section of this document for
alternate instructions.
Do not include any personally identifiable information (such as
name, address, or other contact information) or confidential business
information that you do not want publicly disclosed. All comments are
public records; they are publicly displayed exactly as received, and
will not be deleted, modified, or redacted. Comments may be submitted
anonymously. Follow the search instructions on https://www.regulations.gov to view public comments. You can read a plain
language description of this proposed rule at https://www.regulations.gov/docket/NRC-2025-1238. For additional direction on
obtaining information and submitting comments, see ``Obtaining
Information and Submitting Comments''
[[Page 17894]]
in the SUPPLEMENTARY INFORMATION section of this document.
FOR FURTHER INFORMATION CONTACT: Anita Gray, Office of Nuclear Material
Safety and Safeguards, telephone: 301-415-7036, email:
[email protected] and Andrew Carrera, Office of Nuclear Material
Safety and Safeguards, telephone: 301-415-1078, email:
[email protected]. Both are staff of the U.S. Nuclear Regulatory
Commission, Washington, DC 20555-0001.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Obtaining Information and Submitting Comments
A. Obtaining Information
B. Submitting Comments
II. Executive Order 14300: Ordering the Reform of the Nuclear
Regulatory Commission
III. Background
IV. Discussion
V. Specific Request for Comment
VI. Regulatory Flexibility Certification
VII. Regulatory Analysis
VIII. Backfitting and Issue Finality
IX. Cumulative Effects of Regulations
X. Plain Writing
XI. National Environmental Policy Act
XII. Paperwork Reduction Act
XIII. Coordination With NRC Agreement States
XIV. Compatibility of Agreement States Regulations
XV. Executive Orders
XVI. Criminal Penalties
XVII. Availability of Guidance
XVIII. Availability of Documents
I. Obtaining Information and Submitting Comments
A. Obtaining Information
Please refer to Docket ID NRC-2025-1238 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-2025-1238.
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 Search.'' For
problems with ADAMS, please contact the NRC's Public Document Room
(PDR) reference staff at 1-800-397-4209, at 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 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-2025-1238 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. Executive Order 14300: Ordering the Reform of the Nuclear
Regulatory Commission
On May 23, 2025, President Donald J. Trump signed Executive Order
(E.O.) 14300, ``Ordering the Reform of the Nuclear Regulatory
Commission.'' Section 5, ``Reforming and Modernizing the NRC's
Regulations,'' requires the NRC to undertake a review and wholesale
revision of its regulations and guidance documents as guided by the
policies set forth in Section 2 of the E.O. 14300.
III. Background
The NRC and the 40 Agreement States are responsible for ensuring
the safety and security of approximately 80,000 category 1 and category
2 quantities of radioactive material used in medical, commercial, and
research applications. The Agreement States are U.S. states that have
entered into a formal agreement with the NRC under Section 274b of the
Atomic Energy Act of 1954, as amended, to assume regulatory authority
from the NRC over certain radioactive materials and activities within
their states. The NRC considers category 1 and category 2 quantities of
radioactive material to be risk-significant quantities of radioactive
material. These quantities pertain to 16 specific radioactive materials
listed in Appendix A to title 10 of the Code of Federal Regulations (10
CFR) part 37, ``Physical Protection of Category 1 and Category 2
Quantities of Radioactive Materials.'' The regulations in 10 CFR part
37 govern the physical protection and security requirements for these
category 1 and category 2 quantities of radioactive material.
In response to E.O. 14300, the NRC initiated a review of the 10 CFR
part 37 requirements and identified several proposed revisions to
enhance the efficiency of the materials licensing and inspection
process and reduce unnecessary regulatory burden on licensees related
to the physical protection of category 1 and category 2 quantities of
radioactive material while maintaining safety and security. In
undertaking this review, the NRC was mindful of the current threat
environment and the importance of security regulations being
commensurate with that threat environment. These proposed changes are
detailed in Section IV, ``Discussion'' of this document.
IV. Discussion
A. What action is the NRC taking?
The NRC is proposing to revise the 10 CFR part 37 regulations by
removing or modifying physical protection requirements for category 1
and category 2 quantities of radioactive material. The proposed changes
would include:
1. Removing the Requirement in Sec. 37.23(b)(2) That a Licensee Must
Transmit Its Trustworthiness and Reliability Determination
Certifications for Reviewing Officials to the NRC
The NRC is proposing to remove the requirement in Sec. 37.23(b)(2)
that after completing the background investigation on the reviewing
official, the licensee must submit a certification to the NRC affirming
that the designated reviewing official is deemed trustworthy and
reliable. Reviewing officials are the only individuals within a
licensee's organization authorized to make trustworthiness and
reliability determinations that allow individuals to have unescorted
access to category 1 or category 2 quantities of radioactive material.
Under this proposed rule, licensees would still be required to
[[Page 17895]]
designate reviewing officials as trustworthy and reliable under oath or
affirmation, but they would no longer be required to transmit those
certifications to the NRC. The NRC would continue to verify compliance
through routine inspections, thereby ensuring that the effectiveness of
licensees' access authorization programs is maintained.
2. Removing the 10-Year Reinvestigation and Grandfathered
Reinvestigation Requirements in Sec. 37.25(b)(1) and (c)
The NRC is proposing to remove the outdated grandfathering
provision in Sec. 37.25(b)(1). Currently, Sec. 37.25(b)(1) allows
certain individuals who were determined to be trustworthy and reliable
for unescorted access to category 1 or category 2 quantities of
radioactive material under the Fingerprint Orders, as defined in Sec.
37.5, to continue to have access to this material without further
investigation. The Fingerprint Orders, which were issued primarily in
the mid-2000s in response to the events of September 11, 2001, expired
on March 19, 2014 and are no longer applicable. The Fingerprint Orders
were orders issued by the NRC or legally binding requirements issued by
Agreement States that required certain licensees and applicants to
submit fingerprints for background checks on individuals who have
unescorted access to risk-significant quantities of radioactive
material. The NRC allowed these previously approved determinations
under the Fingerprint Orders to be grandfathered in because the agency
recognized that many individuals had already been fingerprinted and
approved under earlier security orders. Under the 10-year
reinvestigation requirement in Sec. 37.25(c), all individuals who were
grandfathered in have already undergone at least one subsequent
reinvestigation by licensees that includes fingerprinting and a Federal
Bureau of Investigation (FBI) identification and criminal history
records check in accordance with Sec. 37.27. Thus, the continued
application of the grandfathering provision is no longer necessary, nor
would its removal adversely affect the effectiveness of licensees'
access authorization programs.
Also, under Sec. 37.25(c), licensees are currently required to
conduct a reinvestigation every 10 years for any individual with
unescorted access to category 1 or category 2 quantities of radioactive
material. The NRC is proposing to remove this 10-year reinvestigation
requirement because it is unnecessary for the effectiveness of
licensees' access authorization programs. Since the reinvestigation
requirement in Sec. 37.25(c) became effective on March 19, 2013, the
reinvestigation process has not produced information leading to a
licensee making a trustworthiness and reliability determination to
revoke unescorted access from an individual based on results from a
reinvestigation. In accordance with the existing Sec. 37.23(e)(5), a
licensee is required to remove unescorted access when a person no
longer meets access authorization requirements.
In addition, Sec. 37.23(e)(4) allows the reviewing official to
terminate or administratively withdraw an individual's unescorted
access authorization based on information obtained after the initial
background investigation has been completed (i.e., without waiting for
the 10-year reinvestigation). Therefore, the NRC believes that the
removal of this requirement would not adversely affect the
effectiveness of licensees' access authorization programs.
3. Reducing the Required Frequency of Refresher Security Training in
Sec. 37.43(c)(3)
The NRC is proposing to revise the refresher training requirement
in Sec. 37.43(c)(3), extending the frequency interval from not to
exceed 12 months to at least every 3 years, and when significant
changes are made to the security program. Currently, Sec. 37.43(c)(3)
requires each licensee to provide refresher training to all individuals
implementing the security program at a frequency not to exceed 12
months and when significant changes have been made to the security
program. Examples of significant changes include relocation of security
zones, changes to physical security systems, and updates to response
procedures. This revision would reduce unnecessary regulatory burden on
licensees. In addition, because each licensee would still be required
to provide refresher training to responsible individuals when
significant changes are made to the security program, the effectiveness
of the security program would be maintained.
4. Reducing the Required Frequency of Coordination With Local Law
Enforcement Agencies (LLEA) in Sec. 37.45(d)
The NRC is proposing to revise the requirement in Sec. 37.45(d)
for licensees to coordinate with LLEAs, changing the frequency
requirement from at least every 12 months to at least every 3 years, or
when changes are made to the facility design or operation that
adversely affect the potential vulnerability of the licensee's material
to theft, sabotage or diversion. Currently, Sec. 37.45(d) requires
licensees to coordinate with LLEAs at least every 12 months, or when
changes to facility design or operation adversely affect the potential
vulnerability of the licensee's material to theft, sabotage, or
diversion. Examples of such changes include relocation of a security
zone, changes to access control points or physical barriers, and
modifications to alarm systems. The purpose of LLEA coordination is to
ensure that law enforcement understands the facility's layout, confirm
response expectations and timelines, and facilitate effective
communication during emergencies. Once those efforts are documented as
is required under Sec. 37.45(c), requiring licensees to coordinate
with LLEAs annually is unnecessary unless conditions change. Moreover,
licensees are still required to coordinate with LLEAs more frequently
than every 3 years if changes are made that may affect the potential
vulnerability of the material to theft, sabotage, or diversion.
Therefore, this revision would reduce regulatory burden while ensuring
that licensees maintain effective coordination with LLEAs.
5. Removing Requirements for Weekly Verification of Category 2
Quantities of Radioactive Materials and for Security Communications
Capability in Sec. 37.49(a)(3)(ii) and (c)
The NRC is proposing to remove the requirement in Sec.
37.49(a)(3)(ii) that requires licensees that possess category 2
quantities of radioactive material to verify the presence of the
material through physical checks, tamper indicating devices, use, or
other means on a weekly basis. Originally, weekly verification by
licensees was intended to mitigate insider threats by minimizing the
time during which misuse or diversion of material could go undetected.
However, many category 2 quantity of radioactive material sources--such
as radiography devices--are routinely used in daily operations,
resulting in frequent observation and handling of the source that
effectively ensures that licensees can promptly detect and respond to
attempted misuse or diversion of materials, thereby serving the same
purpose as weekly verification. Given the low likelihood of inadvertent
loss and the existing requirements under Sec. 37.49 to monitor,
detect, assess, and respond to unauthorized access or removal, the NRC
considers the weekly verification requirement unnecessary to provide
reasonable assurance of the security of
[[Page 17896]]
category 2 quantities of radioactive material from theft or diversion.
For category 1 quantities of radioactive material, licensees would
continue to be required to immediately detect any attempted
unauthorized removal of the radioactive material from the security zone
in accordance with Sec. 37.49(a)(3)(i).
The NRC is also proposing to remove the requirement in Sec.
37.49(c) for continuous and alternative communication capabilities for
personnel communication and electronic data transmission and
processing. Currently, Sec. 37.49(c)(1) requires licensees to maintain
continuous capability for personnel communication and electronic data
transmission and processing among site security systems. In addition,
under Sec. 37.49(c)(2), licensees must also provide alternative
personnel communication and data transmission capabilities and
processing, in case the primary means is lost. Licensees are already
required under Sec. 37.49 to maintain the ability to monitor, detect,
assess, and respond to unauthorized removal of radioactive material.
Specifically, under Sec. 37.49(a)(1), the licensee must maintain a
continuous monitoring and detection capability in the event of a loss
of the primary power source or provide for an alarm and response when
the capability to continuously monitor and detect unauthorized entries
is lost. Therefore, the NRC considers the current specific requirement
for continuous and alternative communication capabilities in Sec.
37.49(c) unnecessary to provide reasonable assurance of the security of
category 1 or category 2 quantities of radioactive material from theft
or diversion.
6. Removing Maintenance and Testing Requirements in Sec. Sec.
37.43(c)(3)(iv) and 37.51
The NRC is proposing to remove the requirement for a maintenance
and testing program. Currently, Sec. 37.51 requires licensees to
implement a maintenance and testing program to ensure that intrusion
alarms, associated communication systems, and other physical components
of the systems used to secure or detect unauthorized access to
radioactive material remain operable and capable of performing their
intended function when needed. Under Sec. 37.49, licensees are already
required to monitor, detect, assess, and respond to unauthorized
removal of radioactive material. To meet this performance-based
requirement, systems used to secure or detect unauthorized access to
radioactive material must remain operable and capable of performing
their intended functions when needed. In practice, such systems are
exercised during normal operations. Any failure--such as a
malfunctioning sensor or communication issue--would impair licensees'
ability to monitor, detect, assess, and respond, prompting timely
corrective action by the licensees. Therefore, a separate maintenance
and testing requirement in Sec. 37.51 imposes an unnecessary
regulatory burden on licensees.
As a conforming change, the NRC is proposing to remove the
associated training requirement in Sec. 37.43(c)(3)(iv), as it would
no longer be necessary in the absence of a required maintenance and
testing program.
7. Revising Requirements for Mobile Devices in Sec. 37.53(b) To Allow
Removal of Vehicle Keys
The NRC is proposing to revise the language in Sec. 37.53(b) to
reflect advancements in vehicle ignition and disabling technologies by
removing the prohibition on a licensee relying on key removal.
Currently, Sec. 37.53(b) requires each licensee that possesses mobile
devices containing category 1 or category 2 quantities of radioactive
material in or on a vehicle or trailer to utilize a method to disable
the vehicle or trailer when not under direct control and constant
surveillance by the licensee, unless the health and safety requirements
for a site prohibit the disabling of the vehicle. Section 37.53(b)
further states that licensees are prohibited from relying on the
removal of an ignition key to meet this requirement. The intent of this
requirement in the current NRC regulations is to delay unauthorized
removal of radioactive material contained in mobile devices by
preventing the vehicle or trailer from leaving the licensee's control
during vehicle theft. However, most modern vehicles now incorporate
transponder (chip) keys or electronic fobs that are recognizable only
by the vehicle's programmed computer and automatically disable the
ignition system when removed, effectively immobilizing the vehicle.
Only this specific transponder key or electronic fob can be used to
enter and start the vehicle. The NRC has determined that a licensee may
use this technology as an acceptable method to disable the vehicle. As
a result, the NRC is proposing to remove the existing prohibition in
Sec. 37.53(b) on a licensee relying on key removal, which is outdated
and does not reflect advancements in technology.
8. Administrative Changes
The NRC is proposing to make minor nomenclature changes by revising
the language in Sec. Sec. 37.23, 37.25, 37.45, 37.49, and 37.53 to
remove the word ``shall'' and add in its place the word, ``must''.
B. Whom would this action affect?
The regulatory changes in this proposed rule would affect all
radioactive materials licensees who possess, use, and transfer category
1 and category 2 quantities of radioactive materials.
V. Specific Request for Comment
The NRC is seeking advice and recommendations from the public on
the proposed rule. The NRC is particularly interested in comments from
the public on certain proposed changes under E.O. 14300 aimed at
enhancing efficiency and reducing unnecessary regulatory burden related
to the physical protection of category 1 and category 2 quantities of
radioactive material. No classified or safeguards information should be
disclosed in comments. The NRC is particularly interested in comments
with clear justifications and supporting rationales on the following
issues:
Question #1: Are there significant unintended consequences
associated with removing the requirement for licensees to provide
certifications to the NRC under Sec. 37.23(b)(2) that a reviewing
official is trustworthy and reliable? Licensees would continue to be
required to designate reviewing officials under oath or affirmation as
trustworthy and reliable but would no longer be required to transmit
the certifications to the NRC. Provide a rationale for your response.
Question #2: What are the pros and cons of the NRC
removing the requirement for 10-year reinvestigations under Sec.
37.25(c) of individuals with unescorted access to category 1 or
category 2 quantities of radioactive material? Provide a rationale for
your response.
Question #3: Are there significant safety-related
implications of changing the requirement in Sec. 37.45(d) for
licensees to coordinate with the LLEA from at least once every 12
months to at least once every 3 years? What should the required
coordination frequency be? Please provide a rationale for your
response.
VI. Regulatory Flexibility Certification
As required by the Regulatory Flexibility Act of 1980, 5 U.S.C.
605(b), the Commission certifies that this rule, if adopted, will not
have a significant
[[Page 17897]]
economic impact on a substantial number of small entities. Therefore,
in accordance with section 605(b), the NRC is not preparing a
regulatory flexibility certification analysis. The proposed rule
affects NRC licensees that 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 (Sec. 2.810), but it will impose
no new burden on those ``small entities.'' As noted in Section VII,
``Regulatory Analysis'' of this document, the NRC expects that the
proposed rule, if adopted, will reduce burden on ``small entities.''
VII. Regulatory Analysis
A. Introduction
The NRC has prepared a draft regulatory analysis on this proposed
rule. The analysis examines the costs and benefits of the alternatives
considered by the NRC. The NRC has determined that the action in this
proposed rule is expected to reduce regulatory burden and generate cost
savings for licensees, the NRC and the Agreement States, when compared
to the no-action alternative. The NRC requests public comment on the
draft regulatory analysis. Comments on the draft regulatory analysis
may be submitted to the NRC as indicated under the ADDRESSES caption of
this document.
B. Identification and Analysis of Alternative Approaches
The NRC identified two alternatives for this action: (1) no action
(i.e., maintaining the status quo regulatory baseline), and (2) the
proposed rulemaking to revise language in 10 CFR part 37 as discussed
in Section IV. Under the no action alternative, the NRC would not
publish this proposed rule and licensees would continue to comply with
the existing regulations in 10 CFR part 37. However, this alternative
would not realize the cost savings presented in Section VII.D. In
addition, the NRC determined that the no-action alternative would not
be consistent with the direction in Section 5 of E.O. 14300. The no-
action alternative is considered as a baseline for comparing the
incremental impacts of the proposed rule.
C. Assumptions and Data Used for Analysis
Throughout this analysis, various labor rates are used. These rates
are used consistently for all the issues and their derivations are
described below.
Licensee labor rates were obtained from National Wage Data
available on the Bureau of Labor Statistics (BLS) website for year 2024
(https://data.bls.gov/oes/#/industry/000000). Depending on the industry
and the occupation (e.g., manufacturing, health and safety, etc.), an
appropriate mean hourly labor rate is selected. The rate is then
increased using a multiplier of 1.6 to account for benefits (insurance
premiums, pension, and legally required benefits). Because exact hourly
rates would be difficult to obtain and may not be sufficiently recent,
nationwide mean hourly rates are used for lower paid employees, such as
clerical staff.
All savings presented in this analysis are expressed in 2024
dollars, as the wage rate used for valuation is a lagging indicator.
Using 2024 dollars ensures consistency throughout the analysis. The
NRC's wage rate is currently based on 2024 data. Subject to Commission
approval, the NRC staff will use the most recent wage rate data
available at the time of final rule development for valuation purposes.
The NRC used data from the regulatory analysis, ``Regulatory
Analysis for Final Rule: Physical Protection of Byproduct Material (10
CFR parts 20, 30, 32, 33, 34, 35, 36, 37, 39, 51, 71, and 73),'' dated
December 2011 (2011 regulatory analysis), which was associated with the
2013 final rule, dated March 19, 2013 (78 FR 16922). To align with this
rulemaking, the original 2010 dollar values were adjusted to 2024
dollars using the Consumer Price Index for All Urban Consumers,
applying an inflation factor of 1.39 as published by the BLS.
Based on information obtained from the NRC's National Source
Tracking System in 2025, the NRC estimates that approximately 960
licensees possessing category 1 and category 2 quantities of
radioactive material across the National Materials Program will be
affected by this proposed rule. These licensees represent a diverse
group, including pool-type irradiator operators; manufacturers and
distributors; medical facilities using stereotactic radiosurgery
devices; self-shielded irradiator users (such as those operating blood
irradiators); teletherapy unit operators; radiographers; well loggers;
broad scope licensees; radioisotope thermoelectric generator operators;
and entities involved in the shipment or preparation for shipment of
category 1 or category 2 quantities of radioactive material. Of the
estimated 960 licensees, approximately 180 are NRC licensees, while the
remaining 780 are licensed by Agreement States, a ratio equivalent of 1
NRC licensee to 4.3 Agreement State licensees. In addition, the NRC
estimates that approximately 260 licensees are authorized to possess,
use, or transfer category 1 quantities of radioactive material, and
about 700 are authorized for category 2 quantities.
D. Costs and Benefits of the Proposed Action
(1) The NRC is proposing to revise Sec. 37.23(b)(2) by removing
the requirement for licensees to submit a certification under oath or
affirmation. The NRC anticipates that eliminating this requirement will
result in cost savings for licensees. Currently, there are 40 Agreement
States, each with its own process for implementing Sec. 37.23(b)(2).
As such, the NRC does not have data on the number of certifications
submitted annually to the Agreement States.
For this analysis, the NRC assumes that the number of
certifications received by all Agreement States is proportional to the
number received by the NRC, which is based on the ratio of the number
of NRC licensees to the number of Agreement State licensees provided in
Section C, ``Assumptions and Data Used for Analysis.'' The NRC
currently receives approximately two certifications annually from its
licensees. Based on the equivalent ratio for NRC licensees to Agreement
State licensees, the NRC estimated that Agreement States collectively
receive about nine certifications per year. Therefore, the total number
of certifications submitted annually across both NRC and Agreement
State licensees is estimated to be 11.
The NRC estimates that the development of each certification will
require one hour of effort by a facility manager, using the BLS loaded
wage rate for occupation code 11-3013 across all industries, which is
$88.10 per hour. Accordingly, the NRC estimates the annual savings for
Agreement State licensees at $793, with a total undiscounted 10-year
savings of $7,929. For NRC licensees, the estimated annual savings is
$176, with a 10-year total of $1,762 (undiscounted). In addition, the
NRC estimates a cost savings for the NRC from the reduction in
resources required to process certification documents. The NRC
estimates that processing each affirmation document currently would
take approximately 1 hour at a labor cost of $158 per hour. Therefore,
eliminating this task would result in annual savings of $316 for the
NRC. Over a 10-year period, the total undiscounted savings would be
$3,160. The NRC assumes that the Agreement States would incur similar
processing times and labor costs--1 hour per certification at $158 per
hour. Based on the estimated number of 9 certifications
[[Page 17898]]
per year, the annual savings for the Agreement States would be
approximately $1,422, with a 10-year total of $14,220 (undiscounted).
Combining the savings for licensees, the Agreement States, and the
NRC, the total estimated savings over a 10-year period is $23,911
(undiscounted). The total 10-year net present value (NPV) at 7 and 3
percent discount is $16,794 and 20,396 respectively. Table 1 summarizes
the combined savings for both industry and government.
Table 1--Combined Potential Savings for Licensees, Agreement States and NRC
[Total net cost savings (2024 dollars)]
----------------------------------------------------------------------------------------------------------------
Year Undiscounted 7% Discount rate 3% Discount rate
----------------------------------------------------------------------------------------------------------------
1...................................................... $2,391 $2,235 $2,321
2...................................................... 2,391 2,088 2,254
3...................................................... 2,391 1,952 2,188
4...................................................... 2,391 1,824 2,124
5...................................................... 2,391 1,705 2,063
6...................................................... 2,391 1,593 2,002
7...................................................... 2,391 1,489 1,944
8...................................................... 2,391 1,392 1,888
9...................................................... 2,391 1,301 1,833
10..................................................... 2,391 1,215 1,779
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Total.............................................. 23,911 16,794 20,396
--------------------------------------------------------
Annualized......................................... ................. 2,391 2,391
----------------------------------------------------------------------------------------------------------------
(2) The NRC is proposing to remove the provision in Sec. 37.25(c)
that requires licensees to conduct a reinvestigation every 10 years for
any individual with unescorted access to category 1 or category 2
quantities of radioactive material.
To estimate the potential industry savings from this proposed
change, the NRC relied on data from the 2011 regulatory analysis, which
detailed the costs associated with implementing reinvestigations. This
historical data was used to reverse-engineer the original cost
estimates into projected savings, since the proposed rule eliminates
the reinvestigation requirement.
According to the 2011 regulatory analysis, there were 1,400 NRC and
Agreement State licensees, categorized by size as small, medium, and
large, with employee counts of approximately 364 (26 percent), 826 (59
percent), and 210 (15 percent) respectively. These licensees
collectively spend an estimated $536,111 annually on reinvestigations.
For this analysis, the NRC used the same percentage breakdown based on
the estimated 960 NRC and Agreement State licensees to calculate per-
licensee reinvestigation costs. Because the 2011 cost estimations were
in 2010 dollars, the NRC adjusted the dollar value to 2024 dollars
using the appropriate inflation factor as described in Section C of
this analysis. Given that reinvestigations occur on a 10-year cycle--
matching the timeframe of this analysis--the NRC assumes all
reinvestigations would occur within the same year. To calculate annual
savings over a 10-year period, the staff multiplied the annual cost
savings by 10. As a result, the removal of Sec. 37.25(c) is estimated
to save the industry approximately $5.361 million (undiscounted) over
the 10-year period of analysis with an NPV of 7 and 3 percent at $3.756
million and $4.573 million respectively. Table 2 presents the detailed
breakdown of these projected savings.
Table 2--Combined Potential Savings for Licensees
[Total net cost savings (2024 dollars)]
----------------------------------------------------------------------------------------------------------------
Year Undiscounted 7% Discount rate 3% Discount rate
----------------------------------------------------------------------------------------------------------------
1...................................................... $536,111 $501,038 $520,496
2...................................................... 536,111 468,260 505,336
3...................................................... 536,111 437,626 490,617
4...................................................... 536,111 408,996 476,327
5...................................................... 536,111 382,240 462,454
6...................................................... 536,111 357,233 448,984
7...................................................... 536,111 333,863 435,907
8...................................................... 536,111 312,021 423,211
9...................................................... 536,111 291,609 410,884
10..................................................... 536,111 272,532 398,917
--------------------------------------------------------
Total.............................................. 5,361,108 3,765,418 4,573,134
--------------------------------------------------------
Annualize.......................................... ................. 536,111 536,111
----------------------------------------------------------------------------------------------------------------
(3) The NRC is proposing to revise the requirement under Sec.
37.43(c)(3) for licensees to provide refresher training to individuals
implementing the security program from not to exceed 12 months to at
least every 3 years, and when significant changes are made to the
security program. This change is expected to reduce the financial
burden on licensees.
For this analysis, the NRC estimates that approximately 960
licensees would
[[Page 17899]]
be affected by the proposed change in Sec. 37.43(c). According to the
2011 regulatory analysis, these licensees collectively spend an
estimated $10.1 million (adjusted for inflation to 2024 dollars)
annually on refresher training. By shifting from annual to triannual
training, the industry is expected to save approximately $20.2 million
over the two years in which training would no longer be required. No
savings would occur in the third year, when training is required.
Over a 10-year period, the NRC estimates total savings of $70.8
million (undiscounted), with discounted annualized savings of $7.2
million at a 7 percent discount rate. Table 3 provides a detailed
breakdown of the 10-year savings associated with this provision.
Table 3--Combined Potential Savings for Licensees
[Total net cost savings (2024 dollars)]
----------------------------------------------------------------------------------------------------------------
Year Undiscounted 7% Ddiscount rate 3% Discount rate
----------------------------------------------------------------------------------------------------------------
1...................................................... $10,125,081 $9,462,693 $9,830,176
2...................................................... 10,125,081 8,843,638 9,543,860
3...................................................... ................. ................. .................
4...................................................... 10,125,081 7,724,376 8,996,003
5...................................................... 10,125,081 7,219,043 8,733,984
6...................................................... ................. ................. .................
7...................................................... 10,125,081 6,305,392 8,232,617
8...................................................... 10,125,081 5,892,889 7,992,832
9...................................................... ................. ................. .................
10..................................................... 10,125,081 5,147,078 7,534,011
--------------------------------------------------------
Total.............................................. 70,875,567 50,595,108 60,863,484
--------------------------------------------------------
Annualized......................................... ................. 7,203,605 7,135,057
----------------------------------------------------------------------------------------------------------------
(4) The NRC is proposing to revise the requirement under Sec.
37.45(d) for licensees to coordinate with the LLEA from an annual to a
triannual schedule, or when licensees make changes to the facility
design or operation that adversely affect the potential vulnerability
of the licensee's material to theft, sabotage or diversion. This change
is expected to reduce the administrative burden on the licensees and
result in cost savings.
For this analysis, the NRC assumes that coordination with the LLEA
would currently require approximately 2 hours per year per licensee.
While the NRC does not have comprehensive data on all facilities that
would be affected by this proposed change, it will assess savings on a
per-facility basis. Further, the NRC assumes that the LLEA coordination
task would require 2 hours of effort per occurrence by a facility
manager, using the BLS loaded wage rate for occupation code 11-3013,
across all industries, which is $88.10 per hour. This would result in
an annual coordination cost of approximately $176.20 per licensee.
Assuming licensees coordinate with the LLEA only in the third year of
each 3-year cycle following the rule's implementation and applying the
per-licensee savings to the estimated 960 licensees, the annual
industry savings during the first and second years--when coordination
is not required--would be approximately $169,144. No savings would
occur in the third year, when coordination with the LLEA is required.
This analysis does not consider the costs of licensee coordination with
LLEA that is initiated as needed due to changes made to the facility
design or operation.
Over a 10-year period, the total undiscounted savings from the
proposed change to Sec. 37.45(d) is estimated at $1.18 million. The
annualized savings are projected to be an estimated $120,339 discounted
at 7 percent. Table 4 provides a detailed breakdown of the 10-year
savings associated with this provision.
Table 4--Combined Potential Savings for Licensees
[Total net cost savings (2024 dollars)]
----------------------------------------------------------------------------------------------------------------
Year Undiscounted 7% Discount rate 3% Discount rate
----------------------------------------------------------------------------------------------------------------
1...................................................... $169,144 $158,078 $164,217
2...................................................... 169,144 147,737 159,434
3...................................................... ................. ................. .................
4...................................................... 169,144 129,039 150,282
5...................................................... 169,144 120,597 145,905
6...................................................... ................. ................. .................
7...................................................... 169,144 105,334 137,529
8...................................................... 169,144 98,443 133,524
9...................................................... ................. ................. .................
10..................................................... 169,144 85,984 125,859
--------------------------------------------------------
Total.............................................. 1,184,010 845,215 1,016,754
--------------------------------------------------------
Annualized......................................... ................. 120,339 119,194
----------------------------------------------------------------------------------------------------------------
[[Page 17900]]
(5) The NRC is proposing to remove the requirement under Sec.
37.49(a)(3)(C)(ii) for licensees possessing category 2 quantities of
radioactive material to conduct weekly verification to confirm the
material's presence.
This requirement applies only to licensees who possess, use, or
transfer category 2 quantities of radioactive material, which is
estimated at 700 affected licensees. In addition, the NRC does not
maintain specific data on which personnel perform these weekly
verifications at each facility. For this analysis, the NRC assumes that
the task would require 1 hour of effort per week by a facility manager,
using the BLS loaded wage rate for occupation code 11-3013, across all
industries, which is $88.10 per hour. Therefore, the estimated weekly
cost per facility for this verification is $88.10, resulting in an
annual cost of approximately $4,581 per licensee. Applying this per-
licensee cost to the estimated 700 licensees, the removal of this
requirement under Sec. 37.49(a)(3)(c)(ii) is projected to yield total
industry savings of approximately $32.1 million (undiscounted) over a
10-year period. When discounted at 7 percent, the annualized savings
are estimated at $3.2 million. Table 5 provides a detailed breakdown of
the projected 10-year savings resulting from this proposed change.
Table 5--Combined Potential Savings for Licensees Who Possess, Use, or Transfer Category 2 Quantities of
Radioactive Material
[Total net cost savings (2024 dollars)]
----------------------------------------------------------------------------------------------------------------
Year Undiscounted 7% Discount rate 3% Discount rate
----------------------------------------------------------------------------------------------------------------
1...................................................... $3,206,840 $2,997,046 $3,113,436
2...................................................... 3,206,840 2,800,978 3,022,754
3...................................................... 3,206,840 2,617,736 2,934,712
4...................................................... 3,206,840 2,446,482 2,849,235
5...................................................... 3,206,840 2,286,432 2,766,248
6...................................................... 3,206,840 2,136,852 2,685,678
7...................................................... 3,206,840 1,997,058 2,607,454
8...................................................... 3,206,840 1,866,410 2,531,509
9...................................................... 3,206,840 1,744,308 2,457,775
10..................................................... 3,206,840 1,630,194 2,386,190
--------------------------------------------------------
Total.............................................. 32,068,400 22,523,502 27,354,995
--------------------------------------------------------
Annualized......................................... ................. 3,206,840 3,206,840
----------------------------------------------------------------------------------------------------------------
(6) The NRC is proposing to remove the requirement under Sec.
37.51, which mandates that licensees implement a maintenance and
testing program to ensure that intrusion alarms, associated
communication systems, and other physical components used to secure or
detect unauthorized access to radioactive material are maintained in
operable condition and are capable of performing their intended
function when needed.
According to the existing regulations, equipment relied upon for
security must be inspected and tested either at the manufacturer's
recommended frequency or, if none is provided, at least annually (not
to exceed 12 months). Because the NRC does not maintain data on
manufacturer-recommended maintenance intervals, the NRC assumes that
all licensees follow an annual maintenance and testing schedule.
Further, the NRC assumes that this task would require 2 hours of effort
annually by a facility manager, using the BLS loaded wage rate for
occupation code 11-3013, across all industries, which is $88.10 per
hour. Therefore, the estimated annual cost per licensee is $176.
Applying this to the estimated 960 licensees, the total industry
savings of approximately $1.69 million (undiscounted) over a 10-year
period, with annualized savings of $169,144, discounted at 7 percent.
Table 6 provides a detailed breakdown of the estimated 10-year savings
resulting from the removal of this provision.
Table 6--Combined Potential Savings for Licensees
[Total net cost savings (2024 dollars)]
----------------------------------------------------------------------------------------------------------------
Years Undiscounted 7% Discount rate 3% Discount rate
----------------------------------------------------------------------------------------------------------------
1...................................................... $169,144 $158,079 $164,218
2...................................................... 169,144 147,737 159,435
3...................................................... 169,144 138,072 154,791
4...................................................... 169,144 129,039 150,283
5...................................................... 169,144 120,598 145,905
6...................................................... 169,144 112,708 141,656
7...................................................... 169,144 105,335 137,530
8...................................................... 169,144 98,444 133,524
9...................................................... 169,144 92,003 129,635
10..................................................... 169,144 85,984 125,859
--------------------------------------------------------
Total.............................................. 1,691,443 1,187,999 1,442,835
--------------------------------------------------------
Annualized......................................... ................. 169,144 169,144
----------------------------------------------------------------------------------------------------------------
[[Page 17901]]
(7) The NRC is proposing to revise the current language in Sec.
37.53(b), which requires each licensee for devices in or on a vehicle
or trailer containing category 1 or category 2 quantities of
radioactive material to utilize a method to disable the vehicle or
trailer, other than removing the ignition key, when not under direct
control and constant surveillance by the licensee, unless the health
and safety requirements for a site prohibit the disabling of the
vehicle.
The NRC estimates that 57 NRC licensees currently implement Sec.
37.53(b) and operate a category 1 or category 2 mobile fleet of
vehicles. While the NRC does not maintain specific data on Agreement
State licensees with similar fleets, it extrapolated--based on the NRC-
to-Agreement State licensee ratio equivalent provided in Section C--
that approximately 262 Agreement State licensees would also own such
fleets. This results in an estimated total of 319 NRC and Agreement
State licensees with category 1 or category 2 mobile fleets. The NRC
assumes that, with the removal of Sec. 37.53(b), licensees would no
longer need to purchase vehicle disabling devices such as ignition kill
switches or steering wheel clubs--methods commonly used to comply with
current requirements, according to inspector experience. An internet
search indicates that vehicle ignition kill switches cost approximately
$300 and vehicle steering wheel clubs about $30. While some newer
vehicles may come equipped with built-in vehicle disabling features,
the NRC assumes that licensees are equally likely to buy any type of
vehicle disabling device, using an average cost of $165 per unit.
Based on Agreement State inspector input, the NRC further assumes
that each licensee owns five vehicles and replaces its entire fleet
every 5 years. Over a 10-year period, this means each licensee would
avoid purchasing 10 vehicle disabling devices, totaling $1,650 in
savings per licensee. Across all 319 licensees, this results in an
estimated total industry savings of $526,350 (undiscounted) over 10
years, and an annualized savings of $48,967 when discounted at 7
percent. Table 7 provides a detailed breakdown of the estimated 10-year
savings resulting from the removal of this provision.
Table 7--Cost Savings From Vehicle Disabling Devices
----------------------------------------------------------------------------------------------------------------
Years Undiscounted 7% 3%
----------------------------------------------------------------------------------------------------------------
1...................................................... ................. ................. .................
2...................................................... ................. ................. .................
3...................................................... ................. ................. .................
4...................................................... ................. ................. .................
5...................................................... $263,175 $200,775 $233,828
6...................................................... ................. ................. .................
7...................................................... ................. ................. .................
8...................................................... ................. ................. .................
9...................................................... ................. ................. .................
10..................................................... 263,175 143,150 201,702
--------------------------------------------------------
Total.............................................. 526,350 343,925 435,529
--------------------------------------------------------
Annualized......................................... ................. 48,967 51,057
----------------------------------------------------------------------------------------------------------------
F. Conclusions
The NRC's proposed rule would revise language in 10 CFR part 37 to
modernize the requirements relating to physical protection of category
1 and category 2 quantities of radioactive material. The NRC has
determined that the proposed updates are expected to reduce regulatory
burden and generate cost savings for both Agreement State and NRC
licensees, NRC, and Agreement State, when compared to the alternative
of no-action (i.e., the status quo). Based on the NRC's analysis, the
potential industry savings over a 10-year period are estimated at
approximately $111.7 million (undiscounted). The annualized savings are
projected to be approximately $11.3 million discounted at 7 percent.
In addition, the NRC estimates cost saving in 2024 dollars to be
$11.3 million discounted at 7% in perpetuity.
The NRC acknowledges that these estimates may be refined in the
final rule as additional information is gathered regarding the rule's
impact on industry operations.
Table 8 summarizes the cumulative savings associated with the
proposed changes in this rulemaking.
Table 8--Total Cumulative Savings for Licensees, NRC, and Agreement State in 2024 Dollars
----------------------------------------------------------------------------------------------------------------
Year Undiscounted 7% 3%
----------------------------------------------------------------------------------------------------------------
1...................................................... $14,208,712 $13,279,170 $13,794,866
2...................................................... 14,208,712 12,410,439 13,393,073
3...................................................... 3,914,486 3,195,387 3,582,309
4...................................................... 14,208,712 10,839,758 12,624,256
5...................................................... 14,471,887 10,318,255 12,483,576
6...................................................... 3,914,486 2,608,387 3,278,321
7...................................................... 14,208,712 8,848,471 11,552,983
8...................................................... 14,208,712 8,269,599 11,216,488
9...................................................... 3,914,486 2,129,221 3,000,128
10..................................................... 14,471,887 7,356,773 10,768,443
--------------------------------------------------------
Total.............................................. 111,730,789 79,255,461 95,694,443
--------------------------------------------------------
Annualized......................................... ................. 11,284,195 11,218,308
----------------------------------------------------------------------------------------------------------------
[[Page 17902]]
G. NRC Rulemaking Costs
The NRC would incur rulemaking costs for developing the final rule
and associated final guidance. This would include reviewing and
addressing public comments on the proposed rule and guidance, writing
the final rule and final guidance, publishing the final rule in the
Federal Register notice, and implementing the final rule. The NRC
estimates a total of 2,500 hours for developing the final rule and
guidance, with the associated undiscounted one-time cost of $395,000,
or $369,159 when discounted at 7 percent.
VIII. Backfitting and Issue Finality
The NRC has determined that the backfitting provisions in
Sec. Sec. 50.109, 70.76, and 72.62, all entitled ``Backfitting,'' and
the issue finality provisions in 10 CFR part 52, ``Licenses,
Certifications, and Approvals for Nuclear Power Plants,'' do not apply
to this proposed rule because it does not involve any provisions that
will impose backfits as defined in 10 CFR chapter I or affect the issue
finality of any approval issued under 10 CFR part 52. As a general
matter, eliminating a requirement does not meet the definition of
``backfitting'' because such an act by the NRC would be a nonmandatory
relaxation of an existing requirement. For the same reason, the
elimination of a requirement would not affect the issue finality of a
10 CFR part 52 approval.
IX. Cumulative Effects of Regulation
The NRC seeks to minimize potential negative consequences resulting
from the cumulative effects of regulation. The NRC believes that the
de-regulatory impacts of this rulemaking activity are unlikely to cause
implementation challenges for stakeholders. In addition, during the
pendency of this rulemaking, the NRC is deprioritizing issuance of
regulatory actions that might influence the implementation date for the
new rule requirements (e.g., orders, generic communications, license
amendment requests, and inspection findings of a generic nature).
To fully understand any potential cumulative effects of regulation
implications that could result from this rulemaking, the NRC is asking
the following questions. Response to these questions is voluntary and
any input will be considered during development of the final rule.
1. The NRC is proposing an effective date that will be 30 days
after the date of publication of a final rule. Does this provide
sufficient time to implement the proposed requirements? Please provide
a rationale for your response.
2. Are there unintended consequences related to this rulemaking and
how should they be addressed? Please provide a rationale for your
response.
3. Please comment on the NRC's cost and benefit estimates in the
regulatory analysis that support this proposed rule.
X. 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
31885). The NRC requests comment on this document with respect to the
clarity and effectiveness of the language used.
XI. National Environmental Policy Act
A. Introduction
The NRC has prepared this environmental assessment (EA) in
compliance with the NRC's environmental protection regulations in 10
CFR part 51, ``Environmental Protection Regulations for Domestic
Licensing and Related Regulatory Functions,'' which implement the
National Environmental Policy Act of 1969, as amended (NEPA). This EA
evaluates and documents the potential environmental impacts that may
result from this proposed rulemaking, if ultimately promulgated as a
final rule by the NRC. As described below, the NRC has determined under
NEPA and the Commission's regulations in Subpart A of 10 CFR part 51
that there would be no significant impact associated with this proposed
rulemaking action to revise regulations related to the physical
protection of category 1 and category 2 quantities of radioactive
material.
B. Proposed Action
As discussed in Section IV, the proposed action would revise
language in 10 CFR part 37 related to the physical protection of
category 1 and category 2 quantities of radioactive material.
C. Environmental Impacts of the Proposed Action
The proposed rulemaking action would not change the type or
quantity of personnel, equipment, or facilities already required under
current 10 CFR part 37 regulations. The NRC staff expects licensee
implementation of the rulemaking action if it becomes final to be
procedural, taking place in an office setting, and relying on paper or
an electronic (e.g., computer) screen to demonstrate compliance with
revised 10 CFR part 37 regulations. In addition, the proposed
rulemaking action would not authorize any site-specific action on the
part of the NRC or licensees.
Because the proposed rulemaking would not authorize any site-
specific action, the NRC staff has determined that the proposed
rulemaking action would not result in any significant direct, indirect,
or cumulative effects on water resources, terrestrial and aquatic
biota, air quality, or result in any land-use or socioeconomic changes.
Similarly, the proposed rulemaking action does not have the potential
to disturb critical habitats, affect any threatened or endangered
species, or result in adverse effects to historic properties and
cultural resources.
In addition, the NRC has determined the proposed rulemaking action
would not change radiation protection and emergency preparedness
requirements or overall risk and would result in no new or different
environmental effects. Additionally, licensees would continue to be
required to comply with the radiation protection requirements in 10 CFR
part 20, ``Standards for Protection Against Radiation.''
Therefore, the NRC concludes that the proposed changes in this
rulemaking would have no significant impact on the environment.
Moreover, if the Commission promulgates a final rule, the NRC would
continue its current practice of conducting a separate evaluation,
including the appropriate environmental review under NEPA, for each
site-specific application to use, possess, or transfer category 1 and
category 2 quantities of radioactive material subject to 10 CFR part
37.
D. Environmental Impacts of the Alternative to the Proposed Agency
Action
Under the no-action alternative, the NRC would not pursue a
rulemaking related to modernizing requirements relating to physical
protection of category 1 and category 2 quantities of radioactive
material. Under the no-action alternative, the NRC would continue to
regulate the use, possession, and transfer of category 1 and category 2
quantities of radioactive material in accordance with the existing 10
CFR part 37 regulations. In addition, licensees would continue to be
required to comply with the radiation dose requirements in 10 CFR part
20. Because neither the proposed rulemaking action, as stated in
Section C, nor the no-action alternative would result in a significant
impact to human health or the environment, there would be no difference
in environmental effects between the no-action alternative and
[[Page 17903]]
the proposed agency action (rulemaking). However, the no-action
alternative would not meet the purpose and need of the proposed agency
action, as mandated by E.O. 14300, because it would not modernize the
requirements relating to physical protection of category 1 and category
2 quantities of radioactive material.
E. Agencies and Persons Consulted
The NRC developed the proposed rule and is requesting public
comment on this draft EA. The agency will consider comments received on
the docket as it develops the final rule and the final EA. The NRC will
issue the final EA when it publishes the final rule.
The NRC has determined that the proposed agency action would have
no effect on Federally listed threatened or endangered species or
critical habitat. Likewise, the NRC determined that the proposed
rulemaking action would have no adverse effect on any historic
property. Therefore, the NRC has determined that no further
consultation is required under Section 7 of the Endangered Species Act
of 1973, as amended, or under Section 106 of the National Historic
Preservation Act of 1966, as amended.
F. Conclusion and Finding of No Significant Environmental Impacts
The NRC has determined under NEPA and the Commission's regulations
in Subpart A of 10 CFR part 51 that there would be no significant
impact associated with this proposed rulemaking action to revise
regulations related to the physical protection of category 1 and
category 2 quantities of radioactive material. This EA and finding of
no significant impact can be tracked with the Council on Environmental
Quality identification number EAXX-429-00-000-1770619846. The NRC
describes the costs and benefits of the proposed rulemaking action
compared to the no-action alternative in Section VII, ``Regulatory
Analysis,'' of this document.
XII. Paperwork Reduction Act
This proposed rule contains new or amended collections of
information subject to the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.). The proposed rule would reduce the unnecessary
regulatory burden for the existing information collections. This
proposed rule has been submitted to the Office of Management and Budget
for review and approval of the paperwork requirements.
Type of submission: New.
The title of the information collection: Modernizing Requirements
Relating to Physical Protection of Category 1 and Category 2 Quantities
of Radioactive Material, Proposed Rule.
The form number if applicable: Not applicable.
How often the collection is required or requested: Coordination
with LLEAs would occur at least every 3 years, rather than at least
every 12 months. The 10-year reinvestigation requirement in Sec.
37.25(c) would be eliminated.
Who will be required or asked to respond: All radioactive materials
licensees who possess, use, and transfer category 1 and category 2
quantities of radioactive materials.
An estimate of the number of annual responses: A reduction of 2,560
responses (320 reporting + 960 recordkeeping + 1,280 third-party
disclosure).
The estimated number of annual respondents: 960 respondents (180
NRC licensees + 780 Agreement States licensees).
An estimate of the total number of hours needed annually to comply
with the information collection requirement or request: A burden
reduction of 3,120 hours (320 annual reporting hours + 240
recordkeeping hours + 2,560 third-party disclosure hours).
Abstract: Consistent with E.O. 14300, the NRC is conducting a
review and wholesale revision of its regulations. As part of this
initiative, the NRC is proposing to revise its regulations to remove
requirements relating to physical protection of category 1 and category
2 quantities of radioactive material. The proposed rule would remove
the requirement for licensees to submit oath or affirmation
certifications for reviewing officials to the NRC, as well as eliminate
the 10-year reinvestigation mandate. Additionally, the required
coordination frequency with LLEAs would be reduced from at least every
12 months to at least every 3 years, or when licensees make changes to
the facility design or operation that adversely affect the potential
vulnerability of the licensee's material to theft, sabotage or
diversion. Lastly, the obligation to maintain a maintenance and testing
program, including related recordkeeping, would also be eliminated.
The NRC is seeking public comment on the potential impact of the
information collection 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? Please explain your response.
2. Is the estimate of the burden of the proposed information
collection accurate? Please explain your response.
3. Is there a way to enhance the quality, utility, and clarity of
the information to be collected? Please explain your response.
4. How can the burden of the proposed information collection on
respondents be minimized, including the use of automated collection
techniques or other forms of information technology?
A copy of the OMB clearance package is available in ADAMS under
Accession No. ML25287A035 or may be viewed free of charge by contacting
the NRC's Public Document Room reference staff at 1-800-397-4209, at
301-415-4737, or by email to [email protected]. You may obtain
information and comment on submissions related to the OMB clearance
package by searching on http://www.regulations.gov under Docket ID NRC-
2025-1238.
You may submit comments on any aspect of these proposed information
collections, including suggestions for reducing the burden and on the
above issues, by the following methods: Federal rulemaking website: Go
to http://www.regulations.gov and search for Docket ID NRC-2025-1238.
Mail comments to: FOIA, Library, and Information Collections
Branch, Office of the Chief Information Officer, Mail Stop: T-6 A10M,
U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001 or to the
OMB reviewer at OMB Office of Information and Regulatory Affairs (3150-
0214), Attention: Desk Officer for the Nuclear Regulatory Commission,
725 17th Street NW, Washington, DC 20503.
Submit comments by May 11, 2026. Comments received after this date
will be considered if it is practical to do so, but the NRC staff is
able to ensure consideration only for comments received on or before
this date.
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.
XIII. Coordination With NRC Agreement States
The working group that prepared this proposed rule included a
representative from the Organization of Agreement States. Comments from
the Agreement States representative were taken into
[[Page 17904]]
consideration during the development of this proposed rule.
XIV. Compatibility of Agreement State Regulations
Under the ``Agreement State Program Policy Statement'' approved by
the Commission on October 2, 2017, and published in the Federal
Register on October 18, 2017 (82 FR 48535), the NRC program elements
(including regulations) required for adequacy and having a particular
health and safety component are those that are designated as Categories
A, B, C, D, NRC, and H&S; and those required for compatibility include
those regulations and other legally binding requirements designated as
Compatibility Categories A, B, C, and D. Compatibility Category A are
those program elements that include basic radiation protection
standards and scientific terms and definitions that are necessary to
understand radiation protection concepts. An Agreement State should
adopt Category A program elements in an essentially identical manner in
order to provide uniformity in the regulation of agreement material on
a nationwide basis. Compatibility Category B pertains to a limited
number of program elements that cross jurisdictional boundaries and
should be addressed to ensure uniformity of regulation on a nationwide
basis. The Agreement State program element should be essentially
identical to that of NRC. Compatibility Category C are those program
elements that do not meet the criteria of Category A or B, but the
essential objectives of which an Agreement State should adopt to avoid
conflict, duplication, gaps, or other conditions that would jeopardize
an orderly pattern in the regulation of agreement material on a
national basis. An Agreement State should adopt the essential
objectives of the Category C program elements. Compatibility Category D
are those program elements that do not meet any of the criteria of
Category A, B, or C, above, and, therefore, are not required to be
adopted by Agreement States for purposes of compatibility.
Compatibility Category NRC are those program elements that address
areas of regulation that cannot be relinquished to the Agreement States
under the Atomic Energy Act of 1954, as amended, or provisions of title
10 of the Code of Federal Regulations. These program elements should
not be adopted by the Agreement States. Category H&S program elements
are not required for purposes of compatibility; however, they have
particular health and safety significance. The Agreement States should
adopt the essential objectives of such program elements to maintain an
adequate program.
The NRC is proposing to remove the requirements in Sec. Sec.
37.25(b)(1), 37.25(c), 37.49(a)(3)(ii), 37.49(c)(1), 37.49(c)(2),
37.51(a), and 37.51(b) from the 10 CFR part 37 regulations. As such,
the associated compatibility categories of these provisions would also
be removed. The Agreement States should also remove those requirements
in this proposed rule from their regulations to maintain compatibility
with the NRC program. The deleted requirements were designated as
compatibility Categories B and C, which are required for cross-
jurisdictional consistency or necessary to prevent gaps, duplications,
or conflicts across the National Materials Program. Failure to remove
these requirements will result in gaps and conflicts between programs
in the National Materials Program that will negatively impact the
uniformity of regulation on a nationwide basis.
Compatibility categories for other provisions that are subject to
amendment or reassignment would remain unchanged except for the
requirements in Sec. 37.45(d). The compatibility category for Sec.
37.45(d) is reassigned from Category B to Category C because of the
lack of cross-jurisdictional impacts from the engagement of local law
enforcement by licensees and because the requirement is limited to each
licensee's facility. As compatibility Category C, Agreement States'
equivalent regulation must still adopt the essential objective of Sec.
37.45(d), which is to require the licensee to coordinate with local law
enforcement to provide a response in the event of a threat at the
licensee's facility.
The final rule would be a matter of compatibility between the NRC
and the Agreement States, thereby providing consistency among Agreement
State and NRC requirements. The compatibility categories are designated
in the following table:
Compatibility Table
----------------------------------------------------------------------------------------------------------------
Compatibility
Section Change Subject -------------------------------------
Existing New
----------------------------------------------------------------------------------------------------------------
10 CFR 37.23(b)(2).............. Amend.............. Access B B
authorization
program
requirements.
10 CFR 37.23(c)(1).............. Amend.............. Access B B
authorization
program
requirements.
10 CFR 37.25(b)(1).............. Remove............. Background C .................
investigations.
10 CFR 37.25(b)(2).............. Amend and Reassign. Background C C
investigations.
10 CFR 37.25(c)................. Remove............. Background B .................
investigations.
10 CFR 37.43(c)(3).............. Amend.............. General security B B
program
requirements.
10 CFR 37.43(c)(3)(iv).......... Amend.............. General security B B
program
requirements.
10 CFR 37.45(d)................. Amend.............. LLEA coordination.. B C
10 CFR 37.49(a)(3)(ii).......... Remove............. Monitoring, B .................
detection, and
assessment.
10 CFR 37.49(c)(1).............. Remove............. Monitoring, B .................
detection, and
assessment.
10 CFR 37.49(c)(2).............. Remove............. Monitoring, B .................
detection, and
assessment.
10 CFR 37.49(d)................. Amend and Reassign. Monitoring, B B
detection, and
assessment.
10 CFR 37.51(a)................. Remove............. Maintenance and C .................
testing.
10 CFR 37.51(b)................. Remove............. Maintenance and C .................
testing.
10 CFR 37.53(b)................. Amend.............. Requirements for B B
mobile devices.
----------------------------------------------------------------------------------------------------------------
XV. Executive Orders
Additional information about these statutes and Executive Orders
can be found at https://www.nrc.gov/about-nrc/regulatory/rulemaking/procedural-requirements.
A. Executive Order 12866: Regulatory Planning and Review (as Amended by
Executive Order 14215, Ensuring Accountability for All Agencies)
The Office of Information and Regulatory Affairs (OIRA) has
determined that this proposed rule is a significant regulatory action
under section 3(f) of E.O. 12866. Accordingly, NRC submitted this
proposed rule to OIRA for review. NRC is required to conduct an
economic analysis in
[[Page 17905]]
accordance with section 6(a)(3)(B) of E.O. 12866. More can be found in
Section VII, of this document, ``Regulatory Analysis.''
B. Executive Order 14154: Unleashing American Energy
The NRC has examined this proposed rule and has determined that it
is consistent with the policies and directives outlined in E.O. 14154.
C. Executive Order 14192: Unleashing Prosperity Through Deregulation
This action is a deregulatory action as defined by E.O. 14192.
Details on the estimated costs of this proposed rule can be found in
Section VII, of this document, ``Regulatory Analysis.''
D. Executive Order 14270: Zero-Based Regulatory Budgeting To Unleash
American Energy
E.O. 14270, ``Zero-Based Regulatory Budgeting to Unleash American
Energy,'' requires the NRC to insert a conditional sunset date into all
new or amended NRC regulations provided the regulations are (1)
promulgated under the Atomic Energy Act of 1954, as amended (AEA), the
Energy Reorganization Act of 1974, as amended (ERA), or the Nuclear
Waste Policy Act of 1982, as amended (NWPA); (2) not statutorily
required; and (3) not part of the NRC's permitting regime. The NRC
determined that the regulatory changes proposed in this rule are
necessary for compliance with Executive Order 14300. Therefore, the NRC
views this rulemaking to be outside the scope of Executive Order 14270
and did not insert conditional sunset dates for the regulatory changes
in this proposed rule.
XVI. Criminal Penalties
This proposed rule includes Federal regulations that, if adopted,
would be enforceable by criminal penalty, as authorized by Section 223
of the AEA. Therefore, per E.O. 14294, those regulations constitute
``criminal regulatory offenses.''
For the purposes of Section 223 of the AEA, the NRC is amending 10
CFR part 37 under one or more of Sections 161b, 161i, or 161o of the
AEA, except as noted in Sec. 37.109(b). The applicability of criminal
penalties to regulations in part 37 is set forth in Sec. 37.109.
Willful violations of 10 CFR part 37, other than those listed in Sec.
37.109(b) (including as updated by this proposed rule), would be
subject to criminal enforcement.
XVII. Availability of Guidance
The NRC expects to update NUREG-2155, ``Implementation Guidance for
10 CFR part 37 Physical Protection of Category 1 and Category 2
Quantities of Radioactive Material,'' Revision 2, dated March 2022, to
conform with this rulemaking effort. To support an accelerated
development schedule for this proposed rule, the updates will be made
in a future revision of the guidance, rather than concurrently with
this rulemaking. Interim guidance, in the form of frequently asked
questions (FAQs), will be added to the NRC's public website.
You may submit comments on the draft FAQs by the methods outlined
in the ADDRESSES section of this document.
XVIII. 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.
------------------------------------------------------------------------
ADAMS accession No./web
Document link/ Federal Register
citation
------------------------------------------------------------------------
National Wage Data available on the Bureau https://data.bls.gov/oes/#/
of Labor Statistics (BLS) Web site for industry/000000.
year 2024.
2011 regulatory analysis, ``Regulatory ML112920114.
Analysis for Final Rule: Physical
Protection of Byproduct Material (10 CFR
Parts 20, 30, 32, 33, 34, 35, 36, 37, 39,
51, 71, and 73),'' dated December 2011.
Final rule, ``Physical Protection of 78 FR 16922.
Byproduct Material (10 CFR Parts 20, 30,
32, 33, 34, 35, 36, 37, 39, 51, 71, and
73),'' dated March 19, 2013.
OMB Supporting Statement and Associated ML25287A035 (package).
Burden Spreadsheet--10 CFR Part 37--
Modernizing Requirements Relating to
Physical Protection of Category 1 and
Category 2 Quantities of Radioactive
Material Proposed Rule (OMB Clearance No.
3150-0214).
NUREG-2155, ``Implementation Guidance for ML22083A141.
10 CFR Part 37 Physical Protection of
Category 1 and Category 2 Quantities of
Radioactive Material,'' Revision 2, dated
March 2022.
E.O. 14154, ``Unleashing American Energy,'' 90 FR 8353.
dated January 29, 2025.
E.O. 14173, ``Ending Illegal Discrimination 90 FR 8633.
and Restoring Merit-Based Opportunity,''
dated January 31, 2025.
E.O. 14300, ``Ordering the Reform of the 90 FR 22587.
Nuclear Regulatory Commission,'' dated May
29, 2025.
Draft FAQs for the Proposed Rule: ML25287A030.
Modernizing Requirements Relating to
Physical Protection of Category 1 and
Category 2 Quantities of Radioactive
Material.
------------------------------------------------------------------------
The NRC may post materials related to this document, including
public comments, on the Federal rulemaking website at https://www.regulations.gov under Docket ID NRC-2025-1238. In addition, the
Federal rulemaking website allows members of the public to receive
alerts when changes or additions occur in a docket folder. To
subscribe: (1) navigate to the docket folder (NRC-2025-1238); (2) click
the ``Subscribe'' link; and (3) enter an email address and click on the
``Subscribe'' link.
List of Subjects in 10 CFR Part 37
Byproduct material, Criminal penalties, Exports, Hazardous
materials transportation, Imports, Licensed material, Nuclear
materials, Penalties, Radioactive materials, Reporting and
recordkeeping requirements, Security measures.
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. 552 and 553, the NRC is proposing
to amend 10 CFR part 37:
PART 37--PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2
QUANTITIES OF RADIOACTIVE MATERIAL
0
1. The authority citation for part 37 continues to read as follows:
Authority: Atomic Energy Act of 1954, secs. 11, 53, 81, 103,
104, 147, 148, 149, 161, 182, 183, 223, 234, 274 (42 U.S.C. 2014,
2073, 2111, 2133, 2134, 2167, 2168, 2169, 2201, 2232, 2233, 2273,
2282, 2021); Energy Reorganization Act of 1974, secs. 201, 202 (42
U.S.C. 5841, 5842); 44 U.S.C. 3504 note.
[[Page 17906]]
Sec. 37.13 [Amended]
0
2. In Sec. 37.13(b), remove section number ``37.51,''
0
3. In Sec. 37.23, revise paragraphs (b)(2) and (c)(1) to read as
follows:
Sec. 37.23 Access authorization program requirements.
* * * * *
(b) * * *
(2) Each licensee must name one or more individuals to be reviewing
officials. After completing the background investigation on the
reviewing official, the licensee must provide under oath or
affirmation, a certification that the reviewing official is deemed
trustworthy and reliable by the licensee. The fingerprints of the named
reviewing official must be taken by a law enforcement agency, Federal
or State agencies that provide fingerprinting services to the public,
or commercial fingerprinting services authorized by a State to take
fingerprints.
* * * * *
(c) * * *
(1) Licensees may not initiate a background investigation without
the informed and signed consent of the subject individual. This consent
must include authorization to share personal information with other
individuals or organizations as necessary to complete the background
investigation. Before a final adverse determination, the licensee must
provide the individual with an opportunity to correct any inaccurate or
incomplete information that is developed during the background
investigation. Licensees do not need to obtain signed consent from
those individuals that meet the requirements of Sec. 37.25(b).
* * * * *
0
4. In Sec. 37.25, revise paragraph (b) and remove paragraph (c) to
read as follows:
Sec. 37.25 Background investigations.
* * * * *
(b) Grandfathering. Individuals who have been determined to be
trustworthy and reliable under the provisions of part 73 of this
chapter or the security orders for access to safeguards information,
safeguards information-modified handling, or risk-significant material
may have unescorted access to category 1 and category 2 quantities of
radioactive material without further investigation. The licensee must
document that the individual was determined to be trustworthy and
reliable under the provisions of part 73 of this chapter or a security
order. Security order, in this context, refers to any order that was
issued by the NRC that required fingerprints and an FBI criminal
history records check for access to safeguards information, safeguards
information-modified handling, or risk significant material such as
special nuclear material or large quantities of uranium hexafluoride.
0
5. In Sec. 37.43, revise paragraph (c)(3) to read as follows:
Sec. 37.43 General security program requirements.
* * * * *
(c) * * *
(3) Refresher training must be provided at least every 3 years and
when significant changes have been made to the security program. This
training must include:
(i) Review of the training requirements of paragraph (c) of this
section and any changes made to the security program since the last
training;
(ii) Reports on any relevant security issues, problems, and lessons
learned;
(iii) Relevant results of NRC inspections; and
(iv) Relevant results of the licensee's program review.
* * * * *
0
6. In Sec. 37.45, revise paragraph (d) to read as follows:
Sec. 37.45 LLEA coordination.
* * * * *
(d) The licensee must coordinate with the LLEA at least every 3
years, or when changes to the facility design or operation adversely
affect the potential vulnerability of the licensee's material to theft,
sabotage, or diversion.
0
7. In Sec. 37.49, remove and reserve paragraph (a)(3)(ii), remove
paragraph (c), and revise and redesignate paragraph (d) as paragraph
(c) to read as follows:
Sec. 37.49 Monitoring, detection, and assessment.
* * * * *
(c) Response. Licensees must immediately respond to any actual or
attempted unauthorized access to the security zones, or actual or
attempted theft, sabotage, or diversion of category 1 or category 2
quantities of radioactive material at licensee facilities or temporary
job sites. For any unauthorized access involving an actual or attempted
theft, sabotage, or diversion of category 1 or category 2 quantities of
radioactive material, the licensee's response must include requesting,
without delay, an armed response from the LLEA.
Sec. 37.51 [Reserved]
0
8. Remove and reserve Sec. 37.51.
0
9. In Sec. 37.53, revise paragraph (b) to read as follows:
Sec. 37.53 Requirements for mobile devices.
* * * * *
(b) For devices in or on a vehicle or trailer, unless the health
and safety requirements for a site prohibit the disabling of the
vehicle, the licensee must utilize a method to disable the vehicle or
trailer when not under direct control and constant surveillance by the
licensee.
For the Nuclear Regulatory Commission.
Dated: April 7, 2026.
Carrie Safford,
Secretary of the Commission.
[FR Doc. 2026-06877 Filed 4-8-26; 8:45 am]
BILLING CODE 7590-01-P