[Federal Register Volume 91, Number 84 (Friday, May 1, 2026)]
[Proposed Rules]
[Pages 23628-23766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-08550]



[[Page 23627]]

Vol. 91

Friday,

No. 84

May 1, 2026

Part III





Nuclear Regulatory Commission





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10 CFR Parts 1, 2, 10, et. al.





Licensing Requirements for Microreactors and Other Reactors With 
Comparable Risk Profiles; Proposed Rule

Federal Register / Vol. 91, No. 84 / Friday, May 1, 2026 / Proposed 
Rules

[[Page 23628]]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 1, 2, 10, 11, 19, 20, 21, 25, 26, 30, 40, 50, 51, 57, 
70, 72, 73, 74, 75, 95, 140, 150

[NRC-2025-0379]
RIN 3150-AL36


Licensing Requirements for Microreactors and Other Reactors With 
Comparable Risk Profiles

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule; guidance; and request for comment.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is proposing to 
amend its regulations to establish a risk-informed and performance-
based regulatory framework for rapid licensing of new microreactors and 
other reactors with comparable risk profiles and for high-volume 
deployment of these reactors. The proposed rule would provide a 
flexible set of licensing pathways, reduce regulatory burden, and 
ensure that safety and security requirements remain commensurate with 
the potential hazards posed by these facilities.

DATES: Comments must be submitted electronically using https://www.regulations.gov by 11:59 p.m. eastern time on June 15, 2026.

ADDRESSES: Submit your comments, identified by Docket ID NRC-2025-0379, 
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-2025-0379. 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: George Tartal, Office of Nuclear 
Material Safety and Safeguards, telephone: 301-415-0016, email: 
[email protected]; Elijah Dickson, Office of Nuclear Reactor 
Regulation, telephone: 301-415-7647, email: [email protected]; 
Michael Balazik, Office of Nuclear Reactor Regulation, telephone: 301-
415-2856, email: [email protected]; and William Kennedy, 
telephone: 301-415-2313, email: [email protected]. All are staff 
of the U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.

SUPPLEMENTARY INFORMATION:

Executive Summary

A. Need for the Regulatory Action

    The purpose of this rulemaking is to safely expedite the licensing 
process for microreactors and other reactors with comparable risk 
profiles. This effort is consistent with, and implements direction in, 
the Accelerating Deployment of Versatile, Advanced Nuclear for Clean 
Energy Act of 2024 (Pub. L. 118-67, 138 Stat. 1448) (ADVANCE Act), and 
Executive Order (E.O.) 14300, ``Ordering the Reform of the Nuclear 
Regulatory Commission'' (90 FR 22587; May 29, 2025).
    Section 208 of the ADVANCE Act requires the NRC to develop ``risk-
informed and performance-based strategies and guidance to license and 
regulate microreactors.'' The ADVANCE Act mandates that these 
strategies be incorporated into the existing regulatory framework, the 
technology-inclusive regulatory framework to be established through the 
rulemaking required by section 103(a)(4) of the Nuclear Energy 
Innovation and Modernization Act (Pub. L. 115-439, 132 Stat. 5572) 
(NEIMA), or a pending or new rulemaking by July 2027.
    On January 20, 2025, the President declared a National Energy 
Emergency in E.O. 14156, ``Declaring a National Energy Emergency'' (90 
FR 8433; January 29, 2025), and stressed the need for a reliable, 
diversified, and affordable supply of energy. The President also issued 
E.O. 14154 (90 FR 8353; January 29, 2025), titled, ``Unleashing 
American Energy,'' with an objective of unleashing ``America's 
affordable and reliable energy and natural resources.''
    On May 23, 2025, the President issued E.O. 14300. Section 5(e) of 
that E.O. directs the NRC to revise its regulations to ``[e]stablish a 
process for high-volume licensing of microreactors and modular 
reactors, including by allowing for standardized applications and 
approvals and by considering to what extent such reactors or components 
thereof should be regulated through general licenses.'' That E.O. set 
February 23, 2026, as the deadline for issuing this proposed rule, and 
the final rule must be issued by November 23, 2026.
    In developing this proposed rule, the NRC considered whether to 
establish the rule's scope within the amended non-power production or 
utilization facility (NPUF) licensing framework set out in the NRC's 
final rule, ``Non-Power Production or Utilization Facility License 
Renewal,'' issued on December 30, 2024 (89 FR 106234). That NPUF 
rulemaking was primarily intended to revise and streamline the license 
renewal process for facilities such as research and test reactors and 
medical isotope production facilities and was not designed to serve as 
a comprehensive licensing pathway for the high-volume deployment of 
microreactors. However, many of the design features and siting 
characteristics of NPUFs are expected to closely align with those 
reactors within the scope of this rulemaking. NPUFs are commonly 
located at national laboratories, private ventures, and universities, 
situated in both sparsely and densely populated areas. They operate 
over a broad range of thermal powers--up to tens of megawatts--with 
large thermal capacities and fuel designed with inherent safety 
features that enhance their stability and safety.
    The NRC considered amending part 50, ``Domestic Licensing of 
Production and Utilization Facilities,'' or part 52, ``Licenses, 
Certifications, and Approvals For Nuclear Power Plants,'' of title 10 
of the Code of Federal Regulations (10 CFR), to provide for high-volume 
licensing of microreactors and other reactors with comparable risk 
profiles. The NRC didn't pursue amending part 52 or implementing a 
combined license approach in this proposed rule because the 
requirements for inspections, tests, analyses, and acceptance criteria 
(ITAAC) were designed for light water reactors (LWRs) (required by the 
Atomic Energy Act of 1954, as amended (AEA)) and the associated hearing 
on ITAAC closure could extend the licensing timeline. The NRC didn't 
pursue amending part 50 because the regulations in part 50 for 
commercial reactors were designed for large LWRs.
    The NRC also considered developing this proposed rule's scope 
within the framework of 10 CFR part 53, ``Risk-Informed, Technology-
Inclusive Regulatory Framework for Commercial Nuclear Plants.'' 
Although part 53 provides a pathway to support licensing of 
microreactors, part 53 is designed to also cover large, complex 
reactors. The

[[Page 23629]]

NRC decided to create a new part in 10 CFR chapter I that would be 
focused on rapid and high-volume licensing of microreactors and other 
reactors with comparable risk profiles. Therefore, the NRC developed a 
separate rulemaking that combines elements of the Commission's NPUF 
licensing approach in 10 CFR part 50 with elements from 10 CFR parts 52 
and 53 to create proposed part 57, ``Licensing Requirements for 
Microreactors and Other Reactors with Comparable Risk Profiles.'' This 
proposed rule's framework would support rapid licensing of first-of-a-
kind microreactors and other reactors with comparable risk profiles and 
high-volume deployment of these reactors through multiple licensing 
pathways, including the option for a general license to construct parts 
of these facilities.
    Collectively, the NRC's regulatory frameworks offer optionality and 
enable applicants to select licensing pathways that align with 
applicant-specific circumstances and deployment strategies.

B. Major Provisions

    The primary provisions of this proposed rule would establish a 
risk-informed and performance-based regulatory framework for rapid and 
high-volume licensing of microreactors and reactors with comparable 
risk profiles. The proposed rule would provide flexible licensing 
pathways with streamlined requirements, as compared to the analogous 
requirements in part 50 and part 52, that would ensure safety and 
security requirements remain commensurate with the potential hazards 
posed by these facilities. Licensing and approval pathways would 
include a construction permit (CP) and an operating license (OL), a 
manufacturing license, a standard design approval, and provisions for 
affording regulatory finality to nuclear plant designs and essentially 
complete standardized operational programs. Applicants could combine in 
a single application requests for these licenses and approvals with 
requests for other licenses, approvals, and certifications for special 
nuclear material, byproduct material, transportation, and irradiated 
fuel storage to enable a broad spectrum of deployment models.
    The proposed rule is intended to expedite licensing reviews based 
on the statutory requirements of the AEA. E.O. 14300 directs the NRC to 
reach a final decision on an application to construct and operate a new 
reactor of any type within 18 months. This proposed licensing process 
should enable the NRC to issue an OL within 6-12 months after accepting 
an application, assuming that several factors beyond the NRC's control 
are met (e.g., the application contains adequate information to allow 
the NRC to immediately docket the application and does not require the 
NRC to issue requests for additional information, the licensee 
completes timely construction, and any hearing contentions are 
expeditiously resolved). For a joint application for a CP and 
associated OL(s), the applicant would be required to submit final 
design information and complete operational programs at the time of 
application. The NRC would conduct a single, comprehensive safety 
review and potentially hold one adjudicatory hearing on the joint 
application. The Advisory Committee on Reactor Safeguards would review 
each joint application, focusing on aspects of the design that are 
unique, novel, and noteworthy.
    This proposed licensing framework would contain performance-based 
and risk-informed entry criteria consistent with design attributes that 
are necessary and essential for rapid, high-volume licensing of 
microreactors and other reactors with comparable risk profiles. 
Flexibilities in the proposed rule would include allowing a graded site 
characterization approach using existing site characterization data 
from Federal, State, or other organizations, provided that the data 
meets applicable NRC quality standards. Also, applicants would be able 
to define certain regulatory terms (e.g., ``basic component'' and 
``safety-related'') and to limit the definition of ``construction'' to 
safety-related structures, systems, and components (SSCs), as defined 
in the proposed rule, or SSCs that would be relied upon to implement 
the proposed security requirements.
    The proposed rule would provide applicants with other 
flexibilities. Applicants could propose and justify an appropriate use 
of codes and standards as well as quality assurance programs tailored 
to the safety significance of the facility's SSCs. For environmental 
reviews, the proposed rule would permit the use of categorical 
exclusions under the National Environmental Policy Act, provided that 
specific conditions are met. The proposed rule would provide a general 
license for certain construction activities before issuance of a CP for 
an ``nth-of-a-kind'' facility (i.e., a nuclear reactor or nuclear plant 
of a design that the NRC has already approved in a licensing 
proceeding) if certain conditions are met. The proposed rule would also 
provide alternative fitness-for-duty requirements for these licenses, 
as well as require the development of a cybersecurity program using a 
consequence-based approach.

C. Costs and Benefits

    The NRC prepared a draft regulatory analysis to determine the 
expected quantitative costs and benefits of this proposed rule and 
associated guidance as well as qualitative factors to be considered in 
the NRC's rulemaking decision. The conclusion from the analysis is that 
this proposed rule and associated guidance would result in net averted 
costs to the industry and the NRC of approximately $3.76 billion using 
a 7-percent discount rate and $11.84 billion using a 3-percent discount 
rate. As the number of applicants increases, so do the estimated 
averted costs.
    The draft regulatory analysis also considers qualitative factors, 
such as greater regulatory stability, predictability, and clarity to 
the licensing process. Another qualitative factor is promoting a 
performance-based regulatory framework that specifies requirements to 
be met and provides flexibility to an applicant or licensee regarding 
the information or approach needed to satisfy those requirements.
    For more information, please see the draft regulatory analysis 
(available in the NRC's Agencywide Documents Access and Management 
System (ADAMS) Accession No. ML26111A076).

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
    A. Characteristics of Microreactors and Other Reactors With 
Comparable Risk Profiles
    B. Public Interest in Microreactors and Other Reactors With 
Comparable Risk Profiles
IV. Discussion
    A. Need for an Alternative Regulatory Framework
    B. Description of Proposed Licensing Framework
    C. Utilization Facilities and General Licenses
V. Part 57 Framework
    A. Discussion of Provisions in Proposed Part 57
    B. Subpart A--General Provisions
    C. Subpart B--Eligibility
    D. Subpart C--Construction Permits and Operating Licenses
    E. Subpart D--Manufacturing Licenses
    F. Subpart E--Standard Design Approvals

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    G. Subpart F--Reporting of Defects and Noncompliance
    H. Subpart G--Irradiated Fuel Storage, Decommissioning, and 
License Termination Requirements
    I. Subpart H--Maintaining and Revising Licensing Basis 
Information
    J. Subpart I--Transportation Package Design Certification
    K. Subpart J--Physical Security Requirements
    L. Subpart K--Categorical Exclusion
    M. Subpart L--Inspections
    N. Subpart M--Material Control and Accounting
    O. Subpart N--[Reserved]
    P. Subpart O--Enforcement
    Q. Subpart P--Operator Licensing and Human Factors
    R. Subpart Q--Reporting and Other Administrative Requirements
VI. Changes to Other Parts of 10 CFR Chapter I
    A. Conforming Changes to 10 CFR Parts 1, 2, 10, 11, 19, 20, 21, 
25, 26, 30, 40, 50, 51, 70, 72, 73, 74, 75, 95, and 150
    B. 10 CFR Part 26
    C. 10 CFR Part 73
    D. 10 CFR Part 140
VII. Specific Requests for Comments
VIII. Regulatory Flexibility Certification
IX. Regulatory Analysis
X. Backfitting and Issue Finality
XI. Cumulative Effects of Regulation
XII. Plain Writing
XIII. Environmental Assessment and Proposed Finding of No 
Significant Environmental Impact
    A. Introduction
    B. Conforming Changes
    C. Environmental Impacts of the Proposed Action
    D. Environmental Impacts of the Alternative to the Proposed 
Agency Action
    E. Agencies and Persons Consulted
    F. Proposed Finding of No Significant Environmental Impacts
    G. Stakeholder Interactions
    H. Environmental Assessment References
XIV. Paperwork Reduction Act
XV. Executive Orders
    A. Executive Order 12866: Regulatory Planning and Review (as 
Amended by Executive Order 14215, Ensuring Accountability for All 
Agencies)
    B. Executive Order 14154: Unleashing American Energy
    C. Executive Order 14192: Unleashing Prosperity Through 
Deregulation
    D. Executive Order 14270: Zero-Based Regulatory Budgeting To 
Unleash American Energy
    E. Executive Order 14294: Fighting Overcriminalization in 
Federal Regulations
XVI. Voluntary Consensus Standards
XVII. Availability of Guidance
XVIII. Public Meeting
XIX. Availability of Documents

I. Obtaining Information and Submitting Comments

A. Obtaining Information

    Please refer to Docket ID NRC-2025-0379 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-2025-0379.
     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 Web-based 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.
     Public Meeting: The NRC may conduct a public meeting to 
describe the proposed amendments and answer questions from the public 
on the proposed rule. If the NRC determines it will hold a public 
meeting, NRC will publish a notice of the location, time, and agenda of 
the meeting on the NRC's public meeting website within 10 calendar days 
of the meeting. Stakeholders should monitor the NRC's public meeting 
website for information about the public meeting at: https://www.nrc.gov/public-involve/public-meetings/index.cfm.

B. Submitting Comments

    Comments must be submitted electronically using https://www.regulations.gov by 11:59 p.m. eastern time on June 15, 2026. Please 
include Docket ID NRC-2025-0379 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. This rulemaking addresses 
section 5(e), which requires the NRC to ``[e]stablish a process for 
high-volume licensing of microreactors and modular reactors, including 
by allowing for standardized applications and approvals and by 
considering to what extent such reactors or components thereof should 
be regulated through general licenses.''

III. Background

A. Characteristics of Microreactors and Other Reactors With Comparable 
Risk Profiles

    The microreactors and other reactors with comparable risk profiles 
that would be licensed under this proposed rule would be commercial 
nuclear reactors under section 103, ``Commercial Licenses,'' of the 
Atomic Energy Act of 1954, as amended (AEA). Due to their expected 
small sizes, low power levels, potential mobility, and simplicity of 
operation compared to the current fleet of operating power reactors, 
microreactors and other reactors with comparable risk profiles may be 
useful, for example, for remote communities, non-electric industrial 
processes, military bases, maritime applications, disaster relief, and 
other applications where a grid connection is unreliable or 
nonexistent.
    Microreactors and other reactor concepts with comparable risk 
profiles encompass a wide variety of reactor designs, including fuel 
forms, coolant types, and power levels. These concepts often 
incorporate inherent and passive safety design features that 
distinguish them from the large light water reactors

[[Page 23631]]

in the current operating fleet. Fuel forms vary widely, from 
traditional light water reactor fuel assemblies to advanced fuels such 
as tri-structural isotropic (TRISO) particles, metallic fuels, and 
liquid fuels. Coolants include water, liquid metals (e.g., sodium, 
lead), inert gases (e.g., helium), and various molten salts. Power 
outputs range from only a few kilowatts to several tens of megawatts, 
and designs may operate in either a fast or thermal neutron spectrum. 
These diverse technical approaches reflect the industry's pursuit of 
reactor systems optimized for specific missions, operational 
environments, and market applications.
    Based on input from stakeholders (see section III.B, ``Public 
Interest in Microreactors and Other Reactors with Comparable Risk 
Profiles,'' of this document), the NRC anticipates that microreactors 
and other reactors with comparable risk profiles would rely heavily on 
standardization of design features and mass production to simplify 
licensing and deployment. Some reactors may be ``self-contained'' in 
that they would incorporate the reactor, shielding, and balance of 
plant in one or several transportable containers and require minimal 
site preparation or construction activities at the deployment site. 
Other designs may consist of a nuclear reactor that would be fabricated 
in a manufacturing facility and then incorporated into or connected to 
the permanent structures and systems of a nuclear plant constructed at 
the deployment site, such as a reactor building and power conversion 
equipment.
    The NRC understands that deployment models for microreactors and 
other reactors with comparable risk profiles would include various 
activities involving NRC licensing, certification, or approval. These 
activities may include designing reactors, manufacturing at a 
manufacturing facility, loading fuel at a manufacturing facility, 
operating the reactors for testing at a manufacturing facility, 
transporting fueled reactors to deployment sites (loaded with 
unirradiated or irradiated fuel), operating the reactors for the 
production of electrical or heat energy at the deployment sites, 
replacing reactors at the deployment sites, transporting reactors away 
from the deployment sites at the end of their useful lives, 
decommissioning or refurbishing and refueling reactors at locations 
away from the deployment sites, and re-deploying refurbished reactors 
to deployment sites. Some microreactors and other reactors with 
comparable risk profiles may also use more ``traditional'' approaches, 
including constructing the reactor in its entirety, loading fuel, or 
performing operational testing at the deployment site. This proposed 
rule would provide processes and requirements that would enable all 
these potential deployment models.

B. Public Interest in Microreactors and Other Reactors With Comparable 
Risk Profiles

    The NRC recognizes the public interest in the development and 
deployment of microreactors and other reactors with comparable risk 
profiles. For several years, the NRC has conducted advanced reactor 
stakeholder meetings to facilitate open communication between the 
agency, industry, and the public regarding regulatory policy, licensing 
pathways, and technical issues related to advanced reactors. These 
meetings covered a wide range of topics, including safety and security 
considerations, fuel qualification and transportation, siting and 
environmental review, emergency preparedness, quality assurance 
approaches, risk-informed and performance-based regulatory methods, and 
lessons learned from the licensing of non-power production or 
utilization facilities (NPUFs). Stakeholders have also discussed and 
presented strategies for streamlining licensing processes to 
accommodate the anticipated high licensing volumes associated with 
modular and transportable reactor concepts.
    In addition to these public meetings, the NRC has received letters 
and formal reports from a broad spectrum of interested parties, 
including non-governmental organizations, policy organizations 
representing both the nuclear industry and public interest groups, 
national laboratories, and Federal, State, and local governmental 
entities. These submissions have provided perspectives on technical 
design features, operational considerations, safety analysis 
methodologies, environmental impacts, workforce development, and policy 
objectives for advanced reactor deployment. Many communications have 
highlighted the potential for microreactors to support energy 
resilience, remote power applications, industrial process heat, and 
national security missions.
    A recurring theme in both the stakeholder discussions and the 
written correspondence has been the need for the NRC to develop a 
clear, predictable, and efficient regulatory framework that supports 
rapid licensing of new microreactors and other reactors with comparable 
risk profiles and high-volume deployment of these reactors. Several 
stakeholders emphasized that when a microreactor applicant demonstrates 
low radiological consequences at the site boundary in the unlikely 
event of an accident, the NRC should allow the use of a licensing 
approach similar to that established for NPUFs. Stakeholders have noted 
that such an approach--appropriately adapted for microreactors--would 
leverage proven regulatory structures, align safety requirements with 
actual risk, and reduce unnecessary regulatory burden while maintaining 
the NRC's safety and security standards.

IV. Discussion

A. Need for an Alternative Regulatory Framework

    Rapid and high-volume deployment of microreactors and modular 
reactors is needed to support national policy and market demand. The 
Nuclear Energy Innovation and Modernization Act seeks to streamline 
licensing and reduce regulatory uncertainty for advanced reactor 
designs. The Accelerating Deployment of Versatile, Advanced Nuclear of 
Clean Energy Act requires the NRC to develop ``risk-informed and 
performance-based strategies and guidance to license and regulate 
microreactors.'' Executive Orders promote the development of domestic 
energy supplies to meet the increasing demand for electricity and 
direct the NRC to conduct this rulemaking. Market demand for baseload 
power has resulted in business cases for high-volume deployment of 
microreactors and modular reactors in markets where traditional large-
scale nuclear power plants are impractical or uneconomical.
    This proposed rule is needed to establish a regulatory framework 
specifically tailored to rapid licensing of first-of-a-kind 
microreactors and other reactors with comparable risk profiles and 
high-volume deployment of these reactors. The use cases for such 
reactors support energy resilience, remote power applications, and 
industrial process heat. The proposed framework would be based on 
simplified safety requirements and would maximize the benefits of 
standardization. The proposed processes and requirements in this rule 
would enable shorter licensing timeframes that require fewer resources 
than those supported by existing regulations for nuclear power reactors 
in part 50 and part 52, which were designed for stationary, large light 
water reactors (LWRs). This proposed alternative regulatory framework 
is also needed to address Presidential and Congressional direction and 
stakeholder feedback.

[[Page 23632]]

B. Description of Proposed Licensing Framework

    This proposed rule is complementary to and shares several features 
with part 53, ``Risk-Informed, Technology-Inclusive Regulatory 
Framework for Commercial Nuclear Plants.'' The part 53 rule features a 
risk analysis approach that accommodates licensing all reactor 
technologies, including microreactors and large, complex reactors. To 
complement this broad scope approach, proposed part 57 would rely on 
streamlined safety requirements to focus on simpler license 
applications and rapid licensing reviews of new reactors with less 
complex designs and operational characteristics and low potential 
radiological consequences. The major provisions and features of this 
proposed part 57 rule include the following:
1. Rapid Licensing Through Streamlined and Focused Safety Requirements
    This proposed rule would provide a pathway to enable rapid 
licensing through streamlined and focused safety requirements, for 
microreactors and other reactors with comparable risk profiles. The 
proposed rule would leverage the simplified designs, limited nuclear 
inventory, and overall low risk profiles of these facilities to 
establish the necessary and sufficient regulatory requirements to 
provide for reasonable assurance of adequate protection. This approach 
would enable shorter licensing timeframes by streamlining the 
information needed to be prepared by applicants and reviewed by the 
NRC. The applicant would be required to submit final design information 
and complete operational programs in a joint application for a 
construction permit (CP) and associated operating licenses (OLs). The 
NRC would conduct a single, comprehensive safety review and potentially 
hold one adjudicatory hearing on the joint application. Time and 
resource savings would be achieved for qualifying ``first-of-a-kind'' 
and ``nth-of-a-kind'' designs without any adverse impact on safety and 
security.
2. High Volume Licensing
    This proposed rule would enable high volume licensing based on 
standardization of reactor designs and operational programs. An 
applicant would have the option to request a single CP and any number 
of OLs for any number of nuclear reactors of essentially the same 
design to be built at one or more specific sites or within designated 
large geographical areas. Multiple applicants for essentially the same 
design would have the option to reference common non-site-specific 
information, and the NRC could consolidate some aspects of the 
licensing proceedings.
3. Rapid Deployment
    This proposed rule would provide options for issuance of a CP to 
include approval of the final reactor design and operational programs, 
address siting and environmental requirements for large geographical 
areas or multiple specific sites, and satisfy requirements for 
mandatory and adjudicatory hearings if an applicant provided all 
necessary information in a joint application for a CP and associated 
OL(s). This could support licensing reactor operation within days of 
site selection for time-critical deployment, depending on the 
simplicity of onsite construction activities.
4. Multiple Licensing Pathways
    The proposed rule would provide several licensing options for 
applicants to choose from to meet their deployment model or business 
case needs, including a joint application for a CP and associated 
OL(s), which would allow for deployment of reactors and approval of 
standard designs; a manufacturing license (ML), which would allow for 
approval and manufacture of standardized designs and approval of 
operational programs; and a standard design approval (SDA), which would 
allow for approval of entire reactor designs or major portions thereof. 
Applicants would be able to combine requests for these types of 
licenses and approvals with requests for license(s), approvals, and 
certifications under other regulations in a single application to 
holistically address their deployment strategies.
5. Request for Generic Finality
    An applicant may include in its joint application for a CP and 
associated OL(s) a request for generic finality. Matters resolved in a 
proceeding on the application for issuance of the CP and associated 
OL(s) for which the applicant has requested and the Commission has 
granted generic finality would be considered resolved in proceedings on 
other joint applications under proposed part 57 that reference the 
approved CP or associated OL(s). For joint applications for ``nth-of-a-
kind'' nuclear reactors and nuclear plants that reference CPs and 
associated OL(s) afforded generic finality, the scope of licensing 
proceedings would be reduced to site- and applicant-specific 
information.
6. Manufacturing License Provisions
    The proposed rule would include the use of features to prevent 
criticality to allow reactors to be fabricated, fueled, and tested at a 
manufacturing facility before being transported to an operating site. 
This proposed rule would also allow ML applicants to request and the 
NRC to afford finality to the entire nuclear plant design and 
operational programs, thereby reducing the scope of proceedings on 
joint application for a CP and associated OL(s) that reference the ML 
to site- and applicant-specific information.
7. Categorical Exclusions
    The proposed rule would permit the use of categorical exclusions 
from the requirement for the NRC to prepare an environmental assessment 
or environmental impact statement under the National Environmental 
Policy Act (NEPA), provided that specific conditions are met.
8. General Licensee for Construction
    This proposed rule would establish a general license under which an 
applicant that files a joint application for a CP and associated OL(s) 
for a ``nth-of-a-kind facility'' could begin construction activities 
before the issuance of a CP, provided that certain conditions are met.
9. Alternative to 10 CFR Part 100 Siting Requirements
    The proposed rule would allow a graded site characterization 
approach with use of existing site characterization data from Federal, 
State, or other organizations, provided that the data meets applicable 
NRC quality standards.
10. Applicant Defined Definitions
    The definitions of many terms in this proposed rule would be 
equivalent to the corresponding terms defined in Sec. Sec.  21.3, 50.2, 
and 52.1, all entitled ``Definitions,'' and other NRC regulations. 
However, given the variety of microreactor and other reactor designs 
with comparable risk profiles, flexibility is proposed to allow 
applicants to redefine applicable definitions to support their specific 
design and licensing basis needs, provided that such redefinitions are 
justified and supported by the applicant's safety analysis.
11. Codes or Standards
    The proposed rule would allow applicants to propose, with adequate 
justification, the use of codes and standards appropriate for their 
reactor design and not incorporate by reference

[[Page 23633]]

the specific codes and standards in 10 CFR 50.55a, ``Codes and 
standards.''
12. Quality Assurance Program
    The proposed rule would not impose quality assurance requirements 
under the existing regulations in appendix B, ``Quality Assurance 
Criteria for Nuclear Power Plants and Fuel Reprocessing Plants,'' to 10 
CFR part 50. Instead, the proposed rule would allow the applicant to 
choose an industry-approved quality assurance program, similar to the 
approach taken in American National Standards Institute/American 
National Standard ANSI/ANS-15.8-1995 (R2018), ``Quality Assurance 
Program Requirements for Research Reactors.''
13. Operational Programs
    Information related to operational programs concerning facility 
operation could be standardized to facilitate fleet-wide deployment of 
a microreactor or other reactor with comparable risk profile. These 
standardized operational programs could be designed to be administered 
onsite or at a corporate or institutional level. Standard operational 
programs such as emergency preparedness and security plans would 
receive finality, to the extent practicable, for future applicants that 
reference those approvals.
14. Remote Monitoring, Remote Operation, and Autonomous Operation
    This proposed rule would include provisions for applicants to 
specify design features for monitoring and operating a nuclear reactor 
from outside the site boundary and for autonomous performance of 
operations and safety functions. The NRC has posed a question in this 
proposed rule to obtain stakeholder feedback on remote operations and 
autonomous operations.
15. Operator Licensing and Human Factors
    This proposed rule would adjust staffing, training, personnel 
qualifications, and human factors engineering requirements, and would 
include provisions for general licenses for reactor operators, to 
reflect the expectation that the role of operators would be reduced for 
microreactors and other facilities with comparable risk profiles as 
compared to the current fleet of large LWRs.
16. Flexible Processes for Changes
    This proposed rule includes provisions for ML holders and holders 
of OLs that reference reactors manufactured under MLs to combine 
applications for license amendments or to make changes to the facility 
as described in the final safety analysis report (FSAR) without an 
amendment. Under certain conditions, holders of OLs for manufactured 
reactors would be able to implement the same changes approved by 
amendment to an ML without requesting amendments to their OLs that 
reference the ML. This would eliminate duplication of applications for 
NRC review of changes to manufactured reactors, including changes that 
might be made for improving safety or operational reliability.
17. Readiness for Operation Finding
    This proposed rule would provide for the NRC to authorize reactor 
operation upon finding that reactor construction conforms to the 
approved design and license requirements instead of using inspections, 
tests, analyses, and acceptance criteria under 10 CFR part 52, which 
could delay this authorization.
18. Fitness-for-Duty Program Flexibility
    This proposed rule would allow an applicant to propose an FFD 
program of its own specification if operator action would not be 
required to maintain the reactor within the criterion of proposed Sec.  
57.25(a) or a credible operator or maintenance error could not result 
in exceeding that criterion.
19. Resident Inspectors
    The NRC does not anticipate stationing a full-time resident 
inspector at facilities licensed under this framework. Instead, this 
proposed rule would rely on targeted inspections and performance 
oversight.
20. Transportation
    The proposed rule would add a provision that allows for a risk 
methodology to be used for evaluating normal and/or accident conditions 
in the event that an applicant cannot meet the testing and performance 
requirements of 10 CFR part 71, ``Packaging and Transportation of 
Radioactive Material.''
21. Decommissioning and License Termination
    The NRC is proposing the flexibility for applicants to develop 
decommissioning plans as part of the initial licensing process. This 
approach would offer greater flexibility, given the variety of design 
and operational strategies being considered. The proposed 
decommissioning framework primarily builds on the NPUF model while 
incorporating elements from the power reactor framework.
    This proposed rule consists of several major components, including 
a new part 57, revisions to 10 CFR parts 26, ``Fitness for Duty 
Programs,'' and 73, ``Physical Protection of Plants and Materials,'' 
and conforming changes throughout 10 CFR chapter I to refer to part 57 
where appropriate.

C. Utilization Facilities and General Licenses

    E.O. 14300 directed the NRC to consider regulating microreactors or 
their components through general licenses. Stakeholders also have 
expressed interest in the possibility of the NRC using general licenses 
for these reactors or redefining ``utilization facility'' to exclude 
some nuclear reactors from the licensing requirements in section 103 of 
the AEA. The NRC considered these potential alternative approaches for 
high-volume licensing and regulation of nuclear reactors or fleets of 
reactors in developing this proposed rule. The NRC proposes that using 
a general license for regulation of construction activities for certain 
structures, systems, and components of nuclear reactors or nuclear 
plants would be the most practicable approach under this proposed rule.
    The NRC considered whether it would be practicable to exclude 
certain reactors that would otherwise be licensed under proposed part 
57 from the definition of ``utilization facility'' and regulate them 
under a different regulatory framework. The pertinent portions of the 
definition of ``utilization facility'' in section 11(cc) of the AEA are 
the following: ``(1) any equipment or device, except an atomic weapon, 
determined by rule of the Commission to be capable of making use of 
special nuclear material in such quantity as to be of significance to 
the common defense and security, or in such manner as to affect the 
health and safety of the public . . .; or (2) any important component 
part especially designed for such equipment or device as determined by 
the Commission.'' The AEA definition of a utilization facility allowed 
the Atomic Energy Commission (AEC), the NRC's predecessor, to determine 
by rulemaking which equipment or devices met the criteria for a 
utilization facility. By connecting the definition of a utilization 
facility to the quantity of special nuclear material involved and the 
manner the material is used, and that material's potential impact on 
the common defense and security and public health and safety, Congress 
ensured that the AEC's regulatory authority would encompass facilities 
whose operation involves radiological safety and security.

[[Page 23634]]

    The AEC promulgated a definition of ``utilization facility'' in 
1956, now set forth at 10 CFR 50.2 and proposed for part 57, that was 
limited to ``any nuclear reactor other than one designed or used 
primarily for the formation of plutonium or [uranium-233].'' The AEC 
also defined ``nuclear reactor'' as an apparatus, other than an atomic 
weapon, designed or used to sustain nuclear fission in a self-
supporting chain reaction. This definition, also part of this proposed 
rule, implements both criteria of the AEA's ``utilization facility'' 
definition. An apparatus designed or used to sustain nuclear fission in 
a self-supporting chain reaction meets the first criterion--capable of 
making use of special nuclear material (SNM) in such quantity as to be 
of significance to the common defense and security. Several current 
examples show that even a quantity of SNM less than what is required to 
support a self-sustaining fission reaction in a nuclear reactor is 
significant to the common defense and security. The U.S. Department of 
Energy Order 474.2A, ``Nuclear Material Control and Accountability,'' 
requires that quantities of uranium-235 or plutonium of 1 gram or 
larger are subject to that order and require material control and 
accounting and security programs. Additionally, the NRC defines a 
quantity of uranium-235 (contained in enriched uranium) in excess of 1 
kilogram as being at least Category III material requiring material 
control and accounting and security requirements. Finally, the 
International Atomic Energy Agency's Nuclear Security Recommendation on 
Physical Protection of Nuclear Material and Nuclear Facilities states 
that a mass as small as 1 kilogram of uranium-235 (contained in 
enriched uranium) needs to be subject to physical security 
requirements. These examples are relevant to this proposed rule because 
all reactors that would be licensed under this proposed rule--each one 
an apparatus designed or used to sustain nuclear fission in a self-
supporting chain reaction--would require more than these minimum 
amounts of SNM to operate.
    An apparatus designed or used to sustain nuclear fission in a self-
supporting chain reaction also meets the second criterion in the AEA 
definition of utilization facility--capable of making use of SNM in 
such manner as to affect the health and safety of the public. Decades 
of reactor licensing, including research reactors with power levels 
ranging from a few watts to several tens of megawatts, have shown that 
the use of SNM for self-sustaining fission reactions is capable of 
affecting public health and safety. Direct radiation from fission 
reactions, the creation and potential release of radioactive 
byproducts, and improperly-controlled (or uncontrolled) self-sustaining 
fission reactions can all affect public health and safety. Improper 
control of a self-sustaining fission reaction can cause significant and 
potentially very rapid increases in radiation levels, temperatures, and 
pressures, which is why the NRC requires appropriate regulatory 
controls that are different than those for devices that use SNM in 
other manners, such as a subcritical assembly for physics experiments 
or a neutron source for providing the initial neutrons needed to safely 
start up a nuclear reactor. These other devices have not typically been 
considered utilization facilities. The NRC anticipates that any nuclear 
reactor that would be licensed under proposed part 57 to use SNM for 
self-sustaining fission reactions for commercial purposes would clearly 
require controls to provide reasonable assurance of adequate protection 
of public health and safety.
    The AEA definition of ``utilization facility'' requires that only 
the safety prong or security prong of the definition be met. The 
discussion of the safety and security prongs in this document suggests 
that any nuclear reactor would meet both prongs and constitute a 
utilization facility under the definition in the AEA, thereby 
warranting regulation by the NRC as such, consistent with the 
responsibilities and authorities conferred to the NRC by the AEA. The 
Commission has used its regulatory authority under sections 103 and 
182(a) of the AEA to require technical specifications for utilization 
facilities to provide reasonable assurance of adequate protection of 
public health and safety. The NRC would continue to do so under this 
proposed rule.
    The NRC considered whether it would be practicable to use the 
authority provided to the Commission by section 109(a) of the AEA to 
``issue general licenses for domestic activities required to be 
licensed under section [101 of the AEA] if the Commission determines in 
writing that such general licensing will not constitute an unreasonable 
risk to the common defense and security.'' The AEA limits this 
authority ``to those utilization and production facilities which are so 
determined by the Commission pursuant to section [11(cc)(2)] of [the 
AEA].'' Section 11(cc) of the AEA is the definition of utilization 
facility, and section 11(cc)(2) of the AEA is ``any important component 
part especially designed for [a utilization facility as defined in 
section 11(cc)(1) of the AEA] as determined by the Commission.'' Thus, 
the NRC can issue a general license for any important component part 
especially designed for a utilization facility. The Commission proposes 
to use this authority to issue a general license in proposed Sec.  
57.45(d) for construction activities, subject to conditions in proposed 
Sec.  57.45(d)(1) through (6) that would ensure that the general 
license would only be for any important component part especially 
designed for a utilization facility, not constitute an unreasonable 
risk to the common defense and security, and provide for adequate 
protection of the health and safety of the public. The proposed general 
license would potentially enable shorter deployment timeframes and is 
described in detail in section V.D of this document.
    The NRC also considered whether it could include in proposed part 
57 a general license for regulation of an entire utilization facility, 
meaning a utilization facility as defined in section 11(cc)(1) of the 
AEA. However, the AEA provides the NRC with the authority to issue 
general licenses only for utilization facilities as defined in section 
11(cc)(2) of the AEA, meaning any important component part especially 
designed for an entire utilization facility. Therefore, in developing 
proposed part 57, the NRC did not consider general licensing of an 
entire utilization facility as viable under the current statutory 
structure. Instead, the proposed rule would include a licensing 
framework under section 103 of the AEA that would reduce the number of 
licensing actions, resources for their completion, and required NRC 
oversight associated with deployment of individual reactors or nuclear 
plants or fleets of such facilities, as described in section IV.B of 
this document.

V. Part 57 Framework

A. Discussion of Provisions in Proposed Part 57

    Proposed part 57 is comprised of subparts A through Q. These 
subparts would provide performance criteria and would be organized to 
specify requirements to demonstrate compliance with those performance 
criteria throughout the major stages of the life cycle of microreactors 
and reactors with comparable risk profiles. The performance-based 
approach proposed in part 57 also would include regulatory requirements 
that would allow applicants to use a flexible and graded approach to 
the performance of

[[Page 23635]]

safety functions based on the role of a particular structure, system, 
or component and limiting its impact on assessed radiological 
consequence to the public.
    Proposed subpart P of part 26 would be new and would be largely 
consistent with the fitness-for-duty (FFD) requirements in current 
subpart K, ``FFD Programs for Construction,'' of part 26 supplemented 
by select requirements from subparts A through I, N, and O of part 26. 
These requirements are designed to ensure program effectiveness, 
maintain protections afforded to individuals subject to the FFD 
program, and align with FFD program implementation by parts 50 and 52 
licensees. The proposed requirements would not be entirely equivalent 
with requirements in current subpart K of part 26 because the latter 
only applies during construction of the nuclear plant, whereas proposed 
subpart P of part 26 would apply during construction and operation. 
Furthermore, proposed subpart P of part 26 would allow the use of a 
variety of biological specimens for drug testing as well as innovative 
technologies for drug and alcohol screening and testing that are not 
described or allowed by the requirements in subparts A through K, N, 
and O of part 26, except under limited conditions.
    Proposed part 57 would also include a technology-inclusive 
consequence-based approach for physical security and emergency 
preparedness for nuclear plants. The NRC used operating experience to 
propose additional regulatory flexibility for a part 57 licensee's 
implementation of security requirements. This proposed rule would also 
propose changes to part 73 for a technology-inclusive approach to 
cybersecurity. The proposed provisions for these operational programs 
are based on meeting the proposed entry criteria for part 57.
    In addition, this proposed rule would make conforming changes 
throughout 10 CFR chapter I, by adding ``and part 57'' or similar 
language where appropriate to account for the addition of the proposed 
part 57.

B. Subpart A--General Provisions

    Subpart A would provide the general provisions applicable to all 
applicants and licensees under proposed part 57. Subpart A would 
include provisions on purpose, scope, definitions, written 
communications, deliberate misconduct, employee protections, 
completeness and accuracy of information, information collection 
requirements, exemptions, standards for review, jurisdictional limits, 
attacks and destructive acts, rights related to SNM, license suspension 
and rights of recapture, backfitting and issue finality, the Advisory 
Committee on Reactors Safeguards, combining licenses, and filing of 
applications.
1. Definitions in Proposed Part 57
    This proposed rule would provide its own definitions section in 
proposed Sec.  57.3, ``Definitions.'' The definitions of many terms in 
proposed Sec.  57.3 would be equivalent to the corresponding terms 
defined in Sec. Sec.  21.3, 50.2, 52.1, and other NRC regulations. 
However, given the variety of microreactor and other reactor designs 
with comparable risk profiles, proposed Sec.  57.3 would provide 
flexibility by allowing applicants to redefine applicable definitions 
to support their specific design and licensing basis needs, provided 
that such redefinitions are justified and supported by the applicant's 
safety analysis. Definitions established by the application would not 
require an exemption from proposed part 57. The flexibility to provide 
new definitions would extend only to definitions defined in proposed 
part 57 and not to those terms defined by statute, such as ``special 
nuclear material.'' Specific proposed definitions are further explained 
in the following paragraphs.
    The NRC proposes to include a definition of ``Autonomous 
operation'' in part 57 that would provide the means for applicants to 
present information regarding the performance of operational and safety 
functions without reliance on human intervention, external command, or 
active control system input under normal operations and accident 
conditions. The design of the microreactor with inherent safety 
features and active structures, systems, and components (SSCs) would 
govern what design functions need to be executed and/or monitored 
during normal, off-normal and accident conditions.
    The proposed definition of ``Certified fuel handler'' would mean a 
non-licensed operator who is responsible for decisions on the safe 
conduct of decommissioning activities, safe handling and storage of 
spent fuel as defined in 10 CFR 72.3, ``Definitions,'' and appropriate 
response to plant emergencies. The certified fuel handler would need to 
be qualified in accordance with a fuel handler training program that 
meets the same requirements as training programs for non-licensed 
operators required by proposed Sec.  57.420, ``Training and 
qualification for non-licensed personnel.''
    The proposed definition of ``Consensus code or standard'' would be 
based on the use of these terms in the National Technology Transfer and 
Advancement Act of 1995 (NTTAA) (Pub. L. 104-113) and the Office of 
Management and Budget (OMB) Circular No. A-119, ``Federal Participation 
in the Development and Use of Voluntary Consensus Standards and in 
Conformity Assessment Activities.'' As required by NTTAA, the NRC 
undertakes the following activities: (i) consults with voluntary 
consensus standards bodies; (ii) participates with voluntary consensus 
bodies in the development of consensus standards; and (iii) uses 
consensus standards to carry out the NRC's policy objectives.
    The proposed definition of ``Construction'' is slightly different 
than the current definition in existing Sec.  50.10, ``License 
required; limited work authorization.'' The proposed definition would 
differ from the current Sec.  50.10 definition in that it would apply 
to only safety-related SSCs (as defined in proposed part 57) and SSCs 
relied upon to implement the proposed security requirements.
    The proposed definition of ``Control room'' would provide a means 
for remote monitoring and/or remote operation outside the site boundary 
where actions can be taken to operate the nuclear power unit safely 
under normal conditions and to maintain it in a safe condition under 
accident conditions.
    The proposed definition of ``Decommission'' would be slightly 
different than the definition in Sec.  50.2. The proposed definition 
would also include permanent removal of an individually licensed 
nuclear reactor.
    The proposed definition of ``Defense in depth'' would provide a 
philosophy of designing a nuclear facility that includes two or more 
independent and redundant layers of defense in the design of a facility 
and its operating procedures to compensate for uncertainties such that 
no single layer of defense, no matter how robust, is exclusively relied 
upon. Defense in depth includes, but is not limited to, the use of 
access controls, physical barriers, redundant and diverse safety 
functions, and emergency response measures.
    The proposed definition of ``Design bases'' would be the 
information that identifies the specific functions to be performed by 
an SSC of a facility, and the specific values or ranges of values 
chosen for controlling parameters as reference bounds for design. These 
values may be (1) restraints derived from generally accepted ``state-
of-the-art'' practices for achieving functional

[[Page 23636]]

goals, or (2) requirements derived from analysis (based on calculation 
and/or experiments) of the effects of a postulated accident for which 
an SSC must meet its functional goals.
    The proposed definition of ``Design features'' would be the active 
and passive SSCs and inherent characteristics of those SSCs that 
contribute to limiting the total effective dose equivalent (TEDE) to 
individual members of the public during normal operations and prevent 
or mitigate the consequences of design basis accidents.
    The proposed definition of ``Fission product release'' would be the 
amount and composition of radioactive material released to the 
environment, after accounting for any retention of radionuclides 
provided by reactor design features.
    The proposed definition of ``Fuel'' would be SNM or source 
material, discrete elements that physically contain SNM or source 
material, and homogeneous mixtures that contain SNM or source material, 
intended to or used to create power in a nuclear reactor.
    The proposed definition of ``Licensing basis information'' would be 
the information contained in regulations, orders, licenses, 
certifications, or approvals issued by the NRC for a nuclear plant 
licensed under proposed part 57 and that information submitted to the 
NRC by an applicant or licensee in a safety analysis report, program 
description, or other licensing-related document required under 
proposed part 57.
    The proposed definition of ``Manufactured reactor'' would be the 
essential portions of a nuclear reactor that are manufactured under an 
ML and subsequently incorporated into a nuclear plant under a 
construction permit issued under subpart C of proposed part 57.
    The proposed definition of ``Manufacturing license'' would be a 
license issued under subpart D of proposed part 57 that authorizes the 
production of manufactured reactors but not their construction, 
installation, or operation.
    The proposed definition of ``Programmatic controls and operational 
programs'' would be administrative procedures that govern human action 
in implementing programs and operating, monitoring, and maintaining 
SSCs and equipment of a nuclear plant. Programmatic controls could be 
standardized to facilitate fleet-wide deployment of a microreactor. 
These standardized operational programs could be designed to be 
administered on site or at a corporate or institutional level. 
Implementation milestones for each operational program would need to be 
described depending on whether the program will be implemented all at 
once or on a phased basis.
    The proposed definition of ``Quality assurance'' (QA) would be 
planned and systematic actions during design, construction, and 
modification necessary to provide adequate confidence that the SSC will 
perform satisfactorily in service.
    The proposed definition of ``Remote monitoring'' would mean 
observing plant data from a location outside of the site boundary. 
Remote monitoring does not include the performance of any operator 
actions necessary to manipulate the reactor to protect the public 
health and safety (i.e., remote operations). However, remote monitoring 
could be used to access real-time data needed to perform other 
functions that protect the public health and safety, such as emergency 
preparedness or security. The ability to protect the public would be 
dependent upon having accurate and timely access to the plant-monitored 
parameter data. Wireless communication could be used to support remote 
monitoring.
    The proposed definition of ``Remote operation'' would be to command 
and control the reactor from a location outside of the site boundary. 
Industry has indicated that the design of a microreactor with inherent 
safety features and active SSCs would govern what design functions need 
to be executed and/or monitored during normal, off-normal, and accident 
conditions.
    The proposed definition of ``Safe shutdown'' would be bringing the 
nuclear reactor to safe, stable conditions specified in plant technical 
specifications when the reactor is under design basis accident 
conditions with loss of emergency power and offsite power.
    The proposed definition of ``Safety function'' would be the purpose 
served by a design feature, human action, or programmatic control to 
prevent or mitigate unplanned events and thereby demonstrate compliance 
with requirements in proposed part 57 for limiting risks to public 
health and safety. Safety functions could be performed by any 
combination of the elements supported by the safety analysis and could 
be specified at the plant level or at the level of a particular barrier 
or system. Multiple plant-level safety functions would be assumed to 
apply to all reactor designs based on established requirements and 
historical practices. These fundamental safety functions would include 
the control of reactivity, removal of heat, and limiting the release of 
radioactive materials. The protection of a specific barrier or system 
that contributes to meeting plant-level safety criteria could also be 
referred to as a safety function.
    The proposed definition of ``Safety-related structures, systems and 
components'' is slightly different than the definition in Sec.  50.2. 
Whereas the Sec.  50.2 definition refers to ``events,'' the proposed 
definition would refer to ``accidents.'' Design basis accidents bound 
events. Also, where the Sec.  50.2 definition refers to a reactor 
coolant pressure boundary, the proposed definition would be technology 
neutral because some reactor designs under proposed part 57 may not 
operate at pressure.
    The proposed definition of ``Source term'' would be the magnitude 
and mix of the radionuclides released from the fuel, expressed as 
fractions of the fission product inventory in the fuel, as well as 
their physical and chemical form, and the timing of their release. The 
source term would be developed by the applicant when performing the 
maximum hypothetical accident (MHA) or maximum credible accident (MCA) 
methodology. This source term would then be analyzed with site 
parameter information to demonstrate compliance with the accident dose-
based entry criterion in proposed Sec.  57.25(a).
    The proposed definition of ``Special nuclear material'' would be 
(1) plutonium, uranium-233, uranium enriched in the isotope-233 or in 
the isotope-235, and any other material that the Commission, pursuant 
to the provisions of section 51 of the AEA, determines to be SNM, but 
does not include source material; or (2) any material artificially 
enriched by any of the foregoing, but does not include source material.
2. Other General Provisions
    Proposed Sec.  57.4, ``Written communications,'' would govern 
written communications and how applications and other required 
information must be submitted to the NRC. These requirements would be 
equivalent to those in Sec.  50.4, ``Written communications.''
    Proposed Sec.  57.5, ``Deliberate misconduct,'' would establish 
requirements for enforcement action to which a licensee, an applicant, 
or a licensee's or applicant's contractor or subcontractor, or an 
employee of any of them, may be subject for engaging in deliberate 
misconduct. These requirements would be equivalent to those in Sec.  
50.5, ``Deliberate misconduct.''

[[Page 23637]]

    Proposed Sec.  57.6, ``Employee protection,'' would prohibit 
discrimination against an employee of a holder or applicant for an NRC 
license, permit, or SDA, or a contractor or subcontractor of a holder 
or applicant for an NRC license, permit, or SDA for engaging in certain 
protected activities. Proposed Sec.  57.6 also would prescribe a 
procedure for seeking a remedy for employees who believe they have been 
discriminated against for engaging in such protected activities. These 
requirements would be equivalent to those in Sec. Sec.  50.7 and 52.5, 
both entitled ``Employee protection.''
    Proposed Sec.  57.7, ``Completeness and accuracy of information,'' 
would govern the completeness and accuracy of information provided to 
the NRC. These requirements would be equivalent to those in Sec. Sec.  
50.9 and 52.6, both entitled ``Completeness and accuracy of 
information.''
    Proposed Sec.  57.8, ``Information collection requirements: OMB 
approval,'' would establish requirements for information collection 
requirements and OMB approval. These requirements would be equivalent 
to those in Sec.  50.8, ``Information collection requirements: OMB 
approval.''
    Proposed Sec.  57.9, ``Specific exemptions,'' would govern 
exemptions from the requirements of the regulations in proposed part 
57. These requirements would be equivalent to those in Sec. Sec.  50.12 
and 52.7, both entitled ``Specific exemptions.''
    Proposed Sec.  57.11, ``Jurisdictional limits,'' would require that 
no license or SDA issued under proposed part 57 would cover activities 
that are not under or within the jurisdiction of the United States. 
These requirements would be equivalent to those in Sec.  50.53, 
``Jurisdictional limitations.''
    Proposed Sec.  57.12, ``Attacks and destructive acts,'' would state 
that licensees, holders of standard design approvals, and applicants 
for licenses and standard design approvals would not be required to 
provide design features or other measures for the specific purpose of 
protection against the effects of attacks and destructive acts by 
enemies of the United States directed against the facility or 
deployment of weapons incident to U.S. defense activities. These 
requirements would be equivalent to those in Sec.  50.13, ``Attacks and 
destructive acts by enemies of the United States; and defense 
activities.''
    Proposed Sec.  57.13, ``Rights related to special nuclear 
material,'' would establish requirements for rights related to SNM. 
These requirements would be equivalent to those in Sec.  50.54(b) and 
(c).
    Proposed Sec.  57.14, ``License suspension and rights of 
recapture,'' would establish requirements for license suspension and 
rights of recapture of the material or control of the facility in a 
state of war or national emergency declared by Congress. These 
requirements would be equivalent to those in Sec.  50.54(d).
    Proposed Sec.  57.15, ``Agreement limiting access to Classified 
Information,'' would address requirements for agreements limiting 
access to classified information and would be equivalent to Sec.  
50.37, ``Agreement limiting access to Classified Information.''
    Proposed Sec.  57.16, ``Backfitting and issue finality,'' would 
address backfitting requirements by providing requirements that would 
be equivalent to those in Sec.  50.109, ``Backfitting,'' and issue 
finality requirements by providing requirements that would be 
equivalent to those in Sec. Sec.  52.83(a), 52.145, ``Finality of 
standard design approvals; information requests,'' and 52.171, 
``Finality of manufacturing licenses; information requests.'' An 
exception is that proposed Sec.  57.16(c) would not include an 
equivalent requirement to Sec.  52.171(b)(2), which requires the 
Commission to determine that departures will comply with the 
requirements in Sec.  52.7 and that the special circumstances for the 
departure would outweigh any decrease in safety that may result from 
the reduction in standardization caused by the departure. Proposed 
Sec.  57.16(c) would instead require the joint application for the 
referencing CP and OL(s) to include analysis of departures from the 
design characteristics, site parameters, terms and conditions, or 
approved design of the nuclear reactor, nuclear plant, or manufactured 
reactor. Proposed Sec.  57.16(c) would also specify that analysis would 
not be required for departures from any operational programs or 
requirements approved with the referenced CP, OL, or ML that are not 
material to the adequacy of the design, if the joint application 
includes proposed alternative operational programs or requirements. 
Under proposed Sec.  57.16(c), all departures would be subject to 
litigation in the same manner as other issues in the CP or OL, which 
would be equivalent to Sec.  52.171(b)(2).
    Proposed Sec.  57.17, ``Referral to the Advisory Committee on 
Reactor Safeguards (ACRS),'' would address referral to the Advisory 
Committee on Reactor Safeguards (ACRS) and would be equivalent to 
Sec. Sec.  50.58, ``Hearings and report of the Advisory Committee on 
Reactor Safeguards,'' 52.141, ``Referral to the Advisory Committee on 
Reactor Safeguards (ACRS),'' and 52.165, ``Referral to the Advisory 
Committee on Reactor Safeguards (ACRS).''
    Proposed Sec.  57.18, ``Combining licenses; elimination of 
repetition; relationships between subparts,'' would address combining 
applications and would be equivalent to Sec. Sec.  50.31, ``Combining 
applications,'' 50.52, ``Combining licenses,'' and 52.8, ``Combining 
licenses; elimination of repetition.'' Proposed Sec.  57.18 would also 
provide clarity about various combinations of licenses and contents of 
related applications that would enable various high-volume deployment 
strategies. While proposed part 57 clearly outlines the licensing 
framework for combining licenses for multiple reactors, multiple sites, 
manufacturing, possession of special nuclear material, and other 
deployment activities, this licensing framework largely exists under 
other parts of 10 CFR chapter I, such as parts 50, 52, and 53.
    Proposed Sec.  57.18(a)(1) would include a provision for 
applications that would be filed under proposed part 57 by one or more 
applicants for licenses to construct and operate nuclear reactors or 
nuclear plants of essentially the same design to be located at 
different sites, to refer to a single FSAR. This proposed provision 
would be similar to the provisions in appendix N to part 50, 
``Standardization of Nuclear Power Plant Designs: Permits To Construct 
and Licenses To Operate Nuclear Power Reactors of Identical Design at 
Multiple Sites.''
    Proposed Sec.  57.18(a)(2) would include a provision that an 
applicant may include in one application for a CP and associated OL(s) 
for a nuclear reactor or nuclear plant under proposed part 57 
information for multiple sites at which the applicant proposes to 
construct and operate the reactor or plant. This proposed provision 
would allow for licensing construction and operation of a single 
nuclear reactor or nuclear plant at multiple locations over its 
lifetime, such as for operational testing at a manufacturing facility 
and power operation at a deployment site.
    Proposed Sec.  57.18(a)(3) would require an application under 
proposed part 57 for multiple types of permits, licenses, or 
certifications to clearly indicate to which permit, license, or 
certification information in the application pertains. This proposed 
requirement would facilitate the NRC's review of the application by 
ensuring that the NRC would apply the appropriate proposed requirements 
(e.g., standards of review, issuance, hearings, finality, etc.) to the 
information in the application.

[[Page 23638]]

    Proposed Sec.  57.18(a)(4) would include provisions for holders of 
OLs that reference the same ML to combine among themselves, or with the 
holder of the ML, applications for license amendments under proposed 
Sec.  57.310, ``Amendment of license.'' This proposed provision would 
potentially decrease the overall resources that would be required for 
applicants and the NRC for identical requests for amendments to 
multiple licenses as opposed to separate filings and reviews of each 
application for amendment.
    Proposed Sec.  57.18(a)(5) would specify that an applicant may 
include in a single joint application a request for a CP for any number 
of nuclear reactors of essentially the same design that would be built 
at a specific site and requests for OLs for those reactors, provided 
that the application would state the earliest and latest dates for 
completion of the construction of each nuclear reactor as would be 
required by proposed Sec.  57.55(g) and would include the information 
that would be specified in proposed Sec.  57.60(a)(4). This proposed 
provision would potentially reduce applicant and NRC resources related 
to licensing a nuclear plant at which multiple nuclear reactors of 
essentially the same design would be operated over its lifetime, 
including replacement reactors.
    Proposed Sec.  57.18(b), (d), and (e) would include provisions for 
incorporating by reference information contained in previous 
applications, statements, or reports filed with the Commission and 
applicable Commission approvals issued under part 50 or 52; referencing 
a standard design approval, CP, OL, ML, or combination thereof, that 
would be issued under proposed part 57; and referencing a relevant U.S. 
Department of War or U.S. Department of Energy authorization for a 
utilization facility that has been tested and that has demonstrated the 
ability to function safely, respectively. These provisions would allow 
applicants and the NRC to minimize duplication of previous efforts in 
filing and reviewing applications under proposed part 57.
    Proposed Sec.  57.18(c) would continue the Commission's practice of 
combining multiple authorizations for a licensee under various parts of 
10 CFR chapter I into one license based on the Commission's authority 
under section 161(h) of the AEA to combine NRC licenses.
    Proposed Sec.  57.19, ``Filing of application,'' would address 
filing of applications and would be equivalent to Sec. Sec.  50.30, 
``Filing of application; oath or affirmation,'' 52.135, ``Filing of 
applications,'' and 52.155(a). Proposed Sec.  57.19(f) would require an 
applicant for licenses to construct and operate one or more nuclear 
reactors under subpart C of proposed part 57 to file a joint 
application for a CP and associated OL(s). Proposed Sec.  57.19(f) 
would also require that the joint application include the information 
specified in proposed Sec. Sec.  57.55, ``Content of applications; 
general information,'' and 57.60, ``Content of applications; technical 
information,'' and be complete enough to permit all evaluations 
necessary for the issuance of the requested CP and the associated OL(s) 
upon the NRC making the finding required by proposed Sec.  57.100(b)(1) 
(i.e., the finding that construction has been substantially completed). 
The joint application would permit the NRC to use the regulations in 
Sec.  2.105(c) to specify in the notice of proposed issuance of the CP 
that on completion of construction and the NRC making the finding that 
would be required by proposed Sec.  57.100(b)(1), the associated OL(s) 
would be issued without further prior notice, thus streamlining the 
process for issuance of the associated OL(s) and reducing the timeframe 
for licensing.

C. Subpart B--Eligibility

    The NRC based the development of the proposed part 57 framework on 
existing licensing practices for non-power and other utilization 
facilities that, by design and operational characteristics, present low 
risks of radiological consequences. These characteristics have 
designers approach safety by emphasizing accident prevention with 
inherent self-limiting reactivity feedback mechanisms and passive 
safety systems for heat and decay heat removal without reliance on 
complex active safety systems. The NRC used these characteristics to 
create a set of requirements to determine which applicants would be 
eligible to use proposed part 57. Located in proposed Sec. Sec.  57.25, 
``Applicability,'' and 57.30, ``Design criteria attributes,'' these 
proposed requirements are termed ``entry criteria'' and ``design 
criteria attributes,'' respectively.
    Given the wide range of reactor types and their functional 
characteristics, this proposed rule would emphasize the ``attributes'' 
of microreactors and other reactors with comparable risk profiles. 
Rather than defining these reactors in terms of thermal power level, 
this attribute-based approach would describe microreactors and other 
reactors with comparable risk profiles in terms of their functional 
characteristics, such as the capability to prevent or mitigate 
accidents without active systems or operator intervention. By doing so, 
the NRC recognizes that reactors with inherently safe design features 
and more favorable safety profiles may appropriately be designed with 
higher power levels than other reactor designs.
    The first eligibility criterion would be a dose-based acceptance 
value. The second eligibility criterion would be an upper limit on the 
amount of fuel. These eligibility criteria are intended to screen in 
reactor designs that are smaller, simpler, and more conducive to rapid, 
high-volume licensing. These eligibility criteria would be supported by 
six design criteria attributes. These design criteria attributes 
emphasize the features of inherently and passively safe reactors that 
make them secure and protective against radiological harm. These 
attributes include (1) reactivity control, (2) heat removal, (3) 
fission product retention, (4) shielding, (5) radioactive effluents 
control, (6) security by design. If an applicant for a reactor design 
does not meet these criteria, they can apply for a license under a 
different regulatory framework.
1. Dose-Based Entry Criterion
    A dose-based entry criterion under accident conditions would be 
used to inform the analysis of postulated accidents and the development 
of safety measures so that, in the unlikely event of an accident, there 
is assurance that no acute radiation-related harm will result to any 
member of the public. The Commission has found the use of a dose-based 
entry criterion to be adequate for facility siting and design purposes 
based on decades of extensive experience in the criterion's application 
and in recognition of the assumptions and considerations applied within 
the radiological consequence analyses. While the dose-based entry 
criterion would be computed in terms of dose, it is a figure of merit 
used to characterize the minimum requirements for design, fabrication, 
construction, testing, operational limits, and performance for safety-
related SSCs. The numerical value of the criterion does not represent 
acceptable or actual public exposures received during normal and 
emergency conditions, which are primarily controlled by 10 CFR part 20, 
``Standards for Protection Against Radiation,'' and through emergency 
planning.
    An applicant would be required to demonstrate their reactor design 
meets the 1 rem (10 millisieverts (mSv)) TEDE dose-based entry 
criterion in proposed Sec.  57.25(a), and the NRC has found that the 
maximum hypothetical and

[[Page 23639]]

maximum credible accident methodologies would be acceptable means of 
providing this demonstration. These methodologies are associated with a 
fission product release accompanying damage to fission product 
retention barriers, maximum allowable leak rates, a postulated single 
failure of any safety-related SSCs, conservative site meteorological 
dispersion characteristics, and an individual member of the public 
presumed to be at the location of maximum cumulative dose in the 
unrestricted area without protective actions. By demonstrating under 
these conservative assumptions that, in the unlikely event of an 
accident, the dose to the maximally exposed individual member of the 
public in the unrestricted area would remain below the accident dose 
acceptance criterion, there is reasonable assurance that actual 
accidents would not result in acute offsite doses.
    Historically, NRC licensing processes have relied on deterministic 
bounding analyses that, while conservative, may impose unnecessary 
siting, design, and operational constraints on advanced reactor designs 
with inherent and highly reliable passively safe reactor technologies. 
The Commission recognizes the need for flexibility in how applicants 
define their licensing basis to reflect the diversity of microreactors 
and other reactor designs with comparable risk profiles. Proposed part 
57's inclusion of both the MHA and MCA methodologies provides risk-
informed and performance-based regulatory pathways that align the 
applicant's safety analysis scope with the complexity and safety 
characteristics of their design. Proposed part 57 distinguishes between 
the MHA and the MCA with respect to the amount of analytical rigor 
necessary to justify the derived source term. By distinguishing between 
the MHA and MCA approaches, the Commission would allow applicants to 
tailor the scope and depth of their accident analyses to their design 
and business model needs while continuing to ensure safety.
    The source term defines the magnitude and mix of the radionuclides 
released from the fuel, expressed as fractions of the fission product 
inventory in the fuel, as well as their physical and chemical form, and 
the timing of their release. The applicant would utilize their MHA or 
MCA source term to establish the site boundary and determine the level 
of design, qualification, testing, and maintenance of SSCs necessary to 
show with reasonable assurance that the radiological consequences at 
the site boundary are below the 1 rem TEDE entry criterion of proposed 
Sec.  57.25(a).
    Depending on the desired level of analysis, applicants may select 
either the MHA or MCA approach. The MHA approach can demonstrate safety 
through a postulated accident scenario, often highly conservative, 
which assumes a severe release of radioactive material consistent with 
physical laws, regardless of probability. This MHA analysis does not 
rely on detailed risk-informed assessment methodologies, thereby 
reducing analytical complexity for reactors with few to no active 
systems or self-limiting physical phenomena. The MHA approach may be 
desirable for applicants that are willing to accept additional 
conservatism by leveraging simplified analyses that are less time and 
resource intensive. Although the MHA may not necessarily reflect a 
realistic or credible sequence of events, it represents a bounding case 
to support subsequent safety decisions.
    If an applicant does not wish to accept the conservatisms 
associated with the MHA approach, further analyses would need to be 
performed to support an MCA approach. The MCA approach excludes certain 
physically unrealistic or excessively conservative assumptions, 
focusing instead on events that are credible given the technology, 
safety systems, and plant operating conditions. The MCA analysis can 
leverage a variety of modern risk-informed methodologies to credibly 
quantify events and consequences, providing a rational basis for a 
smaller site boundary and focused SSC categorization and potentially 
reducing the number of components subject to the more stringent safety 
requirements.
    Two identical reactor designs could, in principle, yield different 
site boundary distances and safety classifications depending on whether 
their analyses employ the MHA or MCA methodology. Under the MHA 
approach, conservative bounding assumptions, such as postulated worst-
case system failures and maximum radionuclide release, would produce a 
larger source term necessitating a greater site boundary and broader 
safety classification of SSCs. In contrast, an MCA analysis that 
quantifies system performance and reliability could justify a smaller, 
more realistic source term and a correspondingly smaller site boundary 
and narrower safety classification. Both outcomes would be acceptable 
under proposed part 57's consequence-based framework because each would 
provide reasonable assurance that offsite radiological consequences 
remain below the 1 rem TEDE entry criterion. The preferred approach 
would likely depend on the scope and depth of analysis the applicant 
wishes to undertake. Applicants would need to be clear on which 
approach is being applied, and analyses would have to be supported by 
appropriate and sufficient technical justifications.
    The NRC is providing flexibility on how the TEDE dose-based entry 
criterion would be met in recognition of the need for expedited 
licensing and deployment of the types of facilities on which proposed 
part 57 is focused. Including both the MHA and MCA methodologies 
supports the Commission's regulatory modernization goals by encouraging 
innovation in reactor design while maintaining a consistent safety 
objective. Furthermore, this graded approach would enable efficient 
licensing reviews by aligning analytical rigor with risk significance 
without diminishing safety assurance. Under this proposed framework, 
applicants should discuss their plans for use of an MHA or MCA with the 
NRC staff prior to submittal of an application. This would ensure there 
is common understanding of the applicant's approach and would allow for 
resolution of any issues before development of a complete application.
2. Fuel Mass Limit
    The premise of this proposed rule is to establish regulatory 
requirements commensurate with the low hazards posed by facilities that 
would be licensed under proposed part 57. These requirements would be 
justified by the use of a dose-based entry criterion applied to the 
results of a maximum hypothetical or maximum credible accident that 
assesses siting and the performance of safety-related SSCs. This would 
also be true for large LWRs with a very large site boundary. However, 
many of the traditional requirements that the NRC considered when 
creating this proposed rule have historically provided defense in depth 
to address unlikely events that may exceed analyzed releases. 
Traditional requirements include the Commission's historical treatment 
of severe accidents based on lessons learned from operating large LWRs. 
Examples of these regulations include: 10 CFR 50.46, ``Acceptance 
criteria for emergency core cooling systems for light-water nuclear 
power reactors,'' for assessing large-break loss of coolant accidents; 
10 CFR 50.155, ``Mitigation of beyond-design-basis events,'' for 
flexible mitigation strategies for beyond-design-basis events; and 
several part 52 requirements for severe accident design features.

[[Page 23640]]

    The fuel mass limit entry criteria would deterministically screen 
reactor designs without additional performance-based acceptance 
criterion or severe accident analysis to assess events beyond which 
SSCs could be challenged. The fuel mass limit entry criteria would be 
established to provide additional defense in depth for these very 
unlikely events by limiting the amount of decay heat that may 
necessitate the need for active cooling systems and overall material 
available for release, further limiting the potential for causing acute 
health effects to the public. However, the NRC has proposed a question 
in this proposed rule, asking whether, in lieu of applying a 
deterministic material limit on the quantity of SNM, the NRC should 
apply an alternative performance-based acceptance criterion such as an 
adiabatic heat rate threshold, beyond which SSCs could be challenged.
    To assist in developing a quantitative basis for such a limit, the 
NRC reviewed and evaluated the quantities of SNM in the cores of 
several reactor types. In evaluating the quantities of SNM, the NRC 
determined the quantities of uranium (U) and plutonium (Pu). This 
includes the following isotopes: \1\ U-233, U-234, U-235, U-236, U-238, 
Pu-236, Pu-238, Pu-239, Pu-240, Pu-241, Pu-242, and Pu-244. For 
technological neutrality, the mass criteria would also include thorium 
isotopes, because thorium can be used as a breeding material in thermal 
spectrum breeder reactors. None of the reactors considered in the 
evaluation included this technology, but there have been early 
indications of industry interest in pursuing this concept.
---------------------------------------------------------------------------

    \1\ None of the evaluated non-LWRs included thorium, so they had 
negligible amounts of U-233.
---------------------------------------------------------------------------

    In conducting this evaluation, the NRC considered a spectrum of 
reactor technologies, including several non-LWR designs, two small 
modular pressurized water reactors (PWRs) and one small modular boiling 
water reactor (BWR), and several representative large LWRs. The purpose 
of this evaluation was to understand the similarities and differences 
between these reactor technologies and inform an entry criterion that 
facilitates high-volume licensing of microreactors. The assessment 
compared these reactor technologies, the SNM masses, type and kinds of 
engineered safety features, and accident response characteristics. To 
perform this evaluation, the NRC considered several sources of publicly 
available information covering a range of reactor types and power 
levels.
    The evaluation included several non-LWRs of various reactor types 
and fuel forms (e.g., TRISO, metal, oxide, and molten salt) and 
coolants (e.g., gas, molten salt, liquid metal, water). The power range 
of these designs spans from approximately 5 megawatts thermal 
(MWth) to about 2250 MWth. The assessment also 
included small modular and large LWRs to gain a sense of the 
differences in SNM quantities between the non-LWR and small LWR designs 
currently in development versus the quantities in the currently 
operating large LWR commercial fleet. The power reactor range for the 
large LWRs spans from approximately 2600 MWth to about 4400 
MWth.
    The quantities of SNM vary by reactor technology. For each reactor 
technology, the NRC calculated SNM quantities at the beginning and end 
of an operating cycle based on published core and fuel parameters and 
operational characteristics. To perform the calculation, the NRC 
utilized the Oak Ridge National Laboratory SCALE code system. The SCALE 
code system is a widely used modeling and simulation suite for nuclear 
safety analysis and design. Results of these calculations found that 
the large LWR SNM quantities at the beginning of an operating cycle 
ranged from approximately 71 metric tons heavy metal (MTHM) \2\ for a 
PWR to 154 MTHM for a BWR. At the end of an operating cycle, these 
quantities range from approximately 69 to 148 MTHM, respectively. 
Except for a large molten salt reactor, which had an SNM quantity of 
approximately 43 MTHM, the remaining reactors at the beginning of an 
operating cycle had SNM quantities no greater than 9.3 MTHM and at the 
end of an operating cycle, or equilibrium, SNM quantities no greater 
than 8.7 MTHM.
---------------------------------------------------------------------------

    \2\ MTHM is a unit used to define the mass of SNM where that 
material may include more than uranium (i.e., when plutonium is 
included). One metric ton of heavy metal equates to 1000 kg of 
uranium, plutonium, or both. For a reactor containing entirely 
uranium fuel, 1 MTHM = 1 MTU.
---------------------------------------------------------------------------

    Table 1 compares various reactor types by the amount of SNM, in 
terms of MTHM, each contains by cycle period. Table 1 provides the 
reactor name, fuel type, percent fuel enrichment, and cycle period for 
which each of the SNM quantities were estimated as beginning of life 
(BOL), continuous refueling (cont.), equilibrium (equil.), beginning of 
equilibrium cycle (BOEC), and end of equilibrium cycle (EOEC). The BOL 
are conditions of the reactor core at initial startup after fresh fuel 
loading. The end of life (EOL) describes the conditions of the reactor 
core at the end of its useful fuel cycle, when fuel burnup or 
reactivity limits have been reached. Some reactor designs operate 
continuously. For continually refueled systems, SNM inventories are 
given as equilibrium conditions. For these designs, the BOEC is a state 
of the reactor core at the start of a cycle once equilibrium operating 
conditions have been established. Likewise, the EOEC is a state of the 
reactor core operating on a continuous refueling cycle at the end of a 
typical equilibrium operating cycle, after equilibrium burnup has 
occurred. Uranium dioxide (UO2) is a ceramic oxide fuel made 
from uranium dioxide powder, pressed into pellets, and sintered for 
LWRs. TRISO fuel consists of spherical uranium kernels, usually of 
uranium dioxide or uranium oxycarbide, coated with multiple layers of 
pyrolytic carbon and silicon carbide, which act as a miniature 
containment system. Metallic alloy fuel in a compact form is composed 
of uranium (U), transuranics (TRU), and 10 weight percent (wt. %) 
zirconium (Zr) (U-TRU-10Zr Metal Fuel). Molten salt fuel is a liquid 
fuel salt mixture consisting of lithium fluoride (LiF), beryllium 
fluoride (BeF2), and uranium tetrafluoride (UF4) 
(LiF-BeF2-UF4).
BILLING CODE 7590-01-P

[[Page 23641]]

[GRAPHIC] [TIFF OMITTED] TP01MY26.006

BILLING CODE 7590-01-C
    Reactor safety profiles vary significantly between technologies due 
to differences in fuel type, coolant, operating characteristics, and 
reliance

[[Page 23642]]

on active versus intrinsic and passive safety systems. Traditional 
large LWRs have large inventories of SNM and operate at higher power 
levels, power densities, and operating pressures than the other 
reactors studied. These features present more complex accident 
scenarios, and the reactor design relies on multiple engineered safety 
systems, active cooling, and robust containment structures to manage 
accident conditions. Accident analyses for large LWRs frequently 
require a high level of analytical rigor, including the use of 
sophisticated probabilistic risk assessment methodologies and 
computational tools to characterize plant responses and overall risk 
profiles. While appropriate for complex, high-power facilities, this 
level of analysis is resource intensive and not well suited to the 
streamlined processes needed to support high-volume licensing. In 
contrast, many advanced non-LWR designs incorporate inherent safety 
features--such as low-pressure operation, high thermal capacities, and 
strong negative reactivity feedbacks--that reduce the likelihood and 
severity of accidents. Also, small LWRs, while similar in technology to 
large LWRs, generally benefit from reduced core power levels and power 
density, fission product inventories, and simpler system layouts, 
leading to more straightforward accident analyses. As such, these non-
LWR and small LWR risk profiles can demonstrate the designs' low 
consequence without a very large site boundary and without extensive 
reliance on probabilistic risk assessment methods. These safety 
features and relatively small sizes and source terms as compared to 
large LWRs lend themselves to licensing and manufacturing 
standardization, which makes these types of reactors more conducive to 
efficient, high-volume licensing.
    To understand the various reactor technology safety profiles, the 
NRC reviewed several published scientific studies, NRC's preliminary 
safety evaluation reports, and environmental review documents. The 
review focused on identifying common design attributes among these 
reactors--such as strong negativity reactivity feedback, robust fuel 
forms, higher thermal margins, and passive heat removal--that 
inherently limit transient and accident progression. The NRC found non-
LWR designs and microreactors are often designed with large thermal 
capacities that allow them to dissipate operational and decay heat 
passively for relatively long periods of time without the need for 
active systems or operator action. These designs also feature large 
shutdown reactivity margins and other intrinsic safety characteristics 
that provide strong inherent barriers to accident progression. As a 
result, their overall safety behavior can be well understood without 
relying on sophisticated probabilistic or risk assessment 
methodologies, since the fundamental design attributes themselves 
demonstrate a robust ability to prevent and mitigate accidents that 
previous large LWR designs have traditionally been designed to 
accommodate. Accordingly, these designs do not necessarily have the 
need for traditional containments as there is a reduced likelihood of 
events occurring requiring such mitigation features. Furthermore, these 
designs would not warrant precautionary protective measures to respond 
to emergencies. Instead, as a final layer of defense in depth, 
licensees could rely on a risk-informed approach to emergency planning.
    Based on its evaluation of SNM inventories and safety 
characteristics of non-LWRs, small LWRs, and representative large LWRs, 
the NRC concluded that the establishment of a defined SNM material 
limit would be technically justified as an entry criterion to proposed 
part 57. This material limit would be defined as a total inventory of 
thorium, uranium, and plutonium contained in the nuclear reactor not to 
exceed 10 metric tons. The evaluation showed that designs within the 
material limit would likely have inherent and passive safety features 
and exhibit favorable safety profiles despite variations in core design 
and thermal power levels. Together, these insights support the NRC's 
determination that a numerical material limit that is risk-informed due 
to inherent and passive design features could be part of an appropriate 
regulatory threshold to using a licensing approach to enable rapid and 
efficient licensing of microreactors and other reactor designs with 
comparable risk profiles.
3. Design Criteria Attributes
    The design criteria attributes in proposed Sec.  57.30--reactivity 
control, heat removal, fission product retention, shielding, 
radioactive effluent control, and security by design--are rooted in the 
fundamental principles of nuclear safety and radiation protection.
     Reactivity Control--The reactor would need to be able to 
safely control the power level in normal operation, shut down quickly 
if needed, and stay safely shut down. The reactor would be required to 
have a natural ``braking'' effect: when temperatures rise, the power 
level automatically falls (net negative reactivity feedback). Also, if 
the fuel would be loaded into the reactor at a manufacturing facility, 
then the reactor design would need to have built-in protections to 
prevent the reactor from unplanned criticality.
     Heat Removal--Even after the reactor is shut down, heat 
keeps being produced. The design would be required to have highly 
reliable, passive systems to keep the reactor cool and within safe 
temperature limits, even if the main cooling system fails during events 
like power loss or earthquakes.
     Fission Product Retention--Barriers like the fuel itself 
and the reactor vessel can retain radioactive materials during both 
normal operations and accident conditions. The design would need to 
keep temperatures and pressures well below the limits these barriers 
can handle.
     Shielding--The reactor would need strong, durable 
shielding to protect workers and the public from radiation, including 
during transportation. The design also would have to account for heat 
that builds up in shielding and the removal of the heat if needed.
     Radioactive Effluents Control--The reactor would be 
required to meet limits for any radioactive gases, liquids, or solid 
wastes it would release, and have monitoring and handling systems that 
protect people and the environment.
     Security by Design--Where possible, the design itself 
should address security risks, using built-in engineering and physical 
protection features instead of relying only on procedural measures.

D. Subpart C--Construction Permits and Operating Licenses

    Proposed subpart C would provide requirements related to 
applications for NRC licenses to construct and operate utilization 
facilities for commercial or industrial purposes under part 57. The AEA 
calls these licenses ``construction permits'' and ``operating 
licenses,'' and the NRC proposes to use that nomenclature in proposed 
part 57 as it has done in part 50. Proposed part 57 would include 
licensing options based on the CP and OL approaches in part 50, and 
proposed subpart C would contain several sections that would be similar 
to existing regulations in part 50.
    Proposed Sec.  57.45, ``License required; exceptions from 
licensing,'' would address required licenses and identify certain 
exceptions from licensing. Proposed Sec.  57.45(a) would describe 
activities requiring an NRC license and would be equivalent to Sec.  
50.10(b). Proposed Sec.  57.45(b) would govern an exemption from the 
licensing requirements under proposed part 57.

[[Page 23643]]

This proposed requirement would be equivalent to that in Sec.  
50.11(c). Proposed Sec.  57.45(c) would require issuance of a 
construction permit, with the exception in proposed Sec.  57.45(d), 
prior to starting construction of a utilization facility at a site and 
would be equivalent to Sec.  50.10(c).
    Proposed Sec.  57.45(d) would issue a general license for 
construction activities on a site that is specified in a joint 
application for a CP and associated OL(s) under proposed part 57 for a 
nuclear reactor or nuclear plant subject to certain conditions in 
proposed Sec.  57.45(d)(1)-(7). The proposed general license would 
allow the general licensee to perform construction, as would be defined 
in proposed Sec.  57.3, before NRC issuance of a construction permit 
for the nuclear reactor or nuclear plant.
    Proposed Sec.  57.45(d)(1) would require that the general licensee 
has submitted, and the Commission docketed, a joint application for a 
CP and associated OL(s) under proposed part 57. This proposed 
requirement would include several additional conditions on the joint 
application. First, the joint application would be required to 
reference an ML issued by the Commission under 10 CFR chapter I. This 
condition would provide assurance that the general licensee would not 
complete construction of the nuclear reactor or nuclear plant before 
issuance of the CP because the manufactured reactor would be an 
essential part of the reactor or plant and proposed Sec.  57.45(d)(5) 
would prohibit bringing it to the site under the general license. 
Second, the joint application would be required to reference a CP and 
OL issued pursuant to proposed part 57 that the Commission afforded 
generic finality under proposed Sec.  57.142(e) and that referenced the 
same ML as the general licensee's joint application. This condition 
would ensure that the complete design had been reviewed and approved by 
the NRC and that a nuclear reactor or nuclear plant of the same design 
had been successfully constructed under NRC oversight and placed into 
operation. This would also ensure that the public had been afforded an 
opportunity for hearing on the design, including the postulated site 
parameters for the design, in accordance with Sec. Sec.  57.142(e) and 
57.60(c). Third, the joint application would be required to reference a 
design that met the criteria for a categorical exclusion under proposed 
subpart K of part 57. Taken together, the requirements proposed in 
Sec.  57.45(d)(1)(i) and (ii) would provide assurance that the SSCs of 
the nuclear reactor or nuclear plant, which could be difficult to 
change after their construction, would not pose obstacles to eventual 
issuance of an OL under proposed part 57. Fourth, proposed Sec.  
57.45(d)(1)(iii) would require the joint application to include a plan 
for redress of any adverse environmental impact from conduct of 
activities under the general license should such redress be necessary. 
This proposed requirement would be similar to the requirements in Sec.  
50.10(d)(3)(iii), which requires a redress plan as part of an 
application for a limited work authorization, and Sec.  50.11(b)(2), 
which requires the Commission to consider redress of adverse 
environmental impacts in determining whether to grant an exemption 
permitting the conduct of construction activities prior to the issuance 
of a construction permit.
    Proposed Sec.  57.45(d)(2) would require that the general licensee 
has notified the NRC under proposed Sec.  57.4 that all applicable 
permits, licenses, approvals, and other entitlements in connection with 
the proposed action that the general licensee was responsible for 
obtaining have been obtained. Proposed Sec.  57.45(d)(3) would require 
that applicable Federal environmental consultations have been 
completed. This would ensure that construction activities would not 
begin unless the NRC has the information it would need to fulfill its 
obligations for environmental review under the AEA, NEPA, and other 
relevant laws.
    Proposed Sec.  57.45(d)(4) would require that the general licensee 
not allow SNM or radioactive material that would be associated with the 
operation of the nuclear reactor or nuclear plant under an operating 
license issued pursuant to proposed part 57 to be brought to the site. 
This would ensure that activities under the general license would not 
create radiological hazards or irreversible radiological impacts at the 
site that would otherwise be controlled by a CP or OL under proposed 
part 57. This would also ensure that activities under the proposed 
general license would not involve radiological security concerns. In 
addition, proposed subpart P of part 26 would require implementation of 
an appropriate FFD program during construction.
    Proposed Sec.  57.45(d)(6) would require that the general licensee 
allow for any NRC inspections that the Commission would deem necessary 
related to activities that would be performed under the general 
license. This would ensure that the NRC could apply experience gained 
from inspection of the construction of the same nuclear reactor or 
nuclear plant design if needed during construction activities that 
would be conducted under the proposed general license.
    Proposed Sec.  57.45(d)(7) would clarify that any activities 
undertaken by the general licensee or on its behalf under the general 
license would be entirely at the risk of the general licensee and would 
have no bearing on the issuance of a construction permit under proposed 
part 57 with respect to the requirements of the AEA, and rules, 
regulations, or orders issued under the AEA. However, the general 
licensee would be able to mitigate this additional regulatory risk 
through careful site selection to ensure that site characteristics are 
within the bounds of the postulated site parameters and by performing 
construction activities following appropriate QA and FFD programs.
    Based on the proposed requirements in Sec.  57.45(d)(1)-(7), the 
Commission has determined that such general licensing would be for only 
parts of utilization facilities, not constitute an unreasonable risk to 
the common defense and security, and, therefore, be consistent with the 
authority provided to the Commission by section 109(a) of the AEA.
    Proposed Sec.  57.55, ``Content of applications; general 
information,'' would provide general information requirements for the 
content of joint applications under proposed part 57 and would be 
equivalent to Sec.  50.33, ``Content of applications; general 
information,'' with the exception that no emergency planning zones 
would be defined for facilities licensed under proposed part 57.
    Proposed Sec.  57.60, ``Contents of applications; technical 
information,'' would provide technical information for the content of 
joint applications and would be equivalent to Sec.  50.34, ``Contents 
of applications; technical information,'' but would not include a 
preliminary safety analysis report. Proposed Sec.  57.60(a) would 
provide the technical requirements for an FSAR submitted as part of a 
joint application under proposed part 57. Proposed Sec.  57.60(a)(1)(i) 
would address the intended use of the reactor to include maximum power 
and inventory of radioactive material. Proposed Sec.  57.60(a)(1)(ii) 
would provide requirements for an FSAR to describe and assess safety 
features and barriers designed into the facility to prevent or mitigate 
the consequences of an accident similar to Sec.  50.34(a)(ii)(D) 
without the requirement to comply with part 100 or the radiation dose 
criterion for an individual in Sec.  50.34(a)(1)(ii)(D).
    Proposed Sec.  57.60(a)(1)(iii) would require the applicant to 
demonstrate, through an evaluation, that the dose-

[[Page 23644]]

based entry criterion specified in proposed Sec.  57.25(a) is 
satisfied.
    Proposed Sec.  57.60(a)(1)(iv) through (vi) would require the 
applicant to describe the design features associated with any remote or 
autonomous operation or remote monitoring capabilities. Proposed Sec.  
57.60(a)(1)(vii) would require the applicant to provide the analysis, 
appropriate test programs, prototype testing, operating experience, or 
a combination thereof that would demonstrate that each of the design 
criteria attributes described by proposed Sec.  57.30 would be met.
    Proposed Sec.  57.60(a)(2) would require the applicant to include 
design basis and principal design criteria information in the 
application including the relation of the design bases to the design 
criteria, and the relation of the principal design criteria to the 
design criteria attributes described in proposed Sec.  57.30. The 
principal design criteria establish the necessary design, fabrication, 
construction, testing, and performance requirements for safety-related 
SSCs that provide reasonable assurance that the facility can be 
operated without undue risk to the health and safety of the public. The 
reference to principal design criteria in proposed Sec.  57.60(a)(2) 
would not require the applicant to meet the General Design Criteria in 
appendix A of part 50. However, the General Design Criteria in appendix 
A could be generally applicable to other types of nuclear plants and 
used as guidance in establishing the principal design criteria for a 
facility using part 57.
    This proposed rule would not impose QA requirements under existing 
appendix B to part 50. Proposed Sec.  57.60(a)(3) would require the 
applicant to describe its QA program to be applied to the design, 
fabrication, manufacturing, construction, and testing of safety-related 
SSCs and would be equivalent to Sec.  50.34(a)(7). Qualified suppliers 
of nuclear-grade SSCs have decreased over the last several decades. 
This shrinking base of suppliers, increasing demand for advanced 
reactors, existing SSC upgrades and maintenance needs for the operating 
fleet, restart of shutdown plants, and policies to buy U.S. products, 
are creating a need for new suppliers to enter the market. At the same 
time, the evolution of quality system requirements has led to the 
development of several QA standards with shared elements. The NRC's 
proposal to enable applicants to select QA programs could broaden the 
supplier base and increase flexibility in procurement. This approach 
may encourage participation from qualified commercial suppliers, 
thereby expanding the pool of vendors available to support nuclear 
projects. This could mitigate risks of shortages, backlogs, and higher 
costs of deployment of microreactors and reactors with comparable risk 
profiles.
    Proposed Sec.  57.60(a)(4) would specify requirements related to 
sites at which multiple nuclear reactors may be built or installed. 
Proposed Sec.  57.60(a)(4)(i) and (ii) would require the applicant to 
analyze and specify limits on the number and configuration of reactors 
at the site and evaluate potential hazards to safety-related SSCs of 
any operating reactors that could arise from activities associated with 
construction, operation, and decommissioning of other reactors at the 
site. These requirements would be similar to existing requirements in 
Sec.  50.34(a)(11). Proposed Sec.  57.60(a)(4)(iii) would require the 
joint application to include a description of the portions of the 
nuclear plant that a nuclear reactor would share with one or more other 
reactors over the lifetime of the plant and to specify the functional 
requirements and measures to meet the requirements for any shared 
safety-related SSCs. Proposed Sec.  57.60(a)(4)(iv) would require the 
joint application to include technical specifications, as appropriate, 
for shared portions of the nuclear plant.
    Proposed Sec.  57.60(a)(5) would require the applicant to include 
current and projected population distributions and site evaluation 
factors for seismic, meteorological, hydrologic, and geologic 
characteristics with appropriate consideration of natural phenomena. 
The reason for establishing siting requirements would remain the same 
as it has been historically, which is to ensure that licensees and 
applicants assess what impact the site environs may have on a nuclear 
plant (e.g., external hazards) and, conversely, what potential adverse 
health and safety impacts a nuclear plant may have on nearby 
populations in view of the site characteristics. Natural phenomena's 
and site characteristics' impacts are key inputs into the design of 
safety-related SSCs to ensure they can perform their intended safety 
functions. The information required by proposed Sec.  57.60(a)(5) would 
inform site selection demonstrating that the site characteristics would 
be bounded by site parameters postulated for a given design.
    Proposed Sec.  57.60(a)(6) would require the applicant to provide 
an analysis and evaluation of safety-related SSCs related to 
performance requirements and information that show that safety 
functions will be accomplished and would be equivalent to Sec.  
50.34(b)(2).
    Proposed Sec.  57.60(a)(7) would require the applicant to provide 
information on the kinds and quantities of radioactive materials 
expected to be produced by operation and the means for controlling and 
limiting radioactive effluents and radiation exposures within the 
limits set forth in 10 CFR part 20 and would be equivalent to Sec.  
50.34(b)(3). The application would have to include an estimate of the 
quantity of each of the principal radionuclides expected to be released 
annually to unrestricted areas in liquid effluents produced during 
normal reactor operations, an estimate of the quantity of each of the 
principal radionuclides of the gases, halides, and particulates 
expected to be released annually to unrestricted areas in gaseous 
effluents produced during normal reactor operations, and a description 
of the equipment and procedures for the control of gaseous and liquid 
effluents and for the maintenance and use of equipment installed in 
radioactive waste systems.
    Proposed Sec.  57.60(a)(8) would require the applicant to provide 
information related to operational programs concerning facility 
operations. These programs could be developed specifically for an 
individual reactor or generically for a particular design to be 
administered at a corporate or institutional level to support fleet 
operations. Proposed Sec.  57.60(a)(8)(i)-(iii) would require the 
applicant to include information related to the organizational 
structure, training and qualification, conduct of operations, plans for 
preoperational testing and initial operations, and plans for normal 
operations, and would be equivalent to Sec.  50.34(b)(6)(i)-(iv). 
Proposed Sec.  57.60(a)(8)(iv) would require emergency plans for 
responding to an accidental release or loss of control of radioactive 
material. Proposed Sec.  57.60(a)(8)(iv) would also require the 
applicant to coordinate response needs with local emergency planning 
and offsite response organizations. This proposed provision would 
ensure adequate communication, coordination, and cooperation among 
applicants, licensees, and offsite response organizations to establish 
agreements and arrangements for offsite support and to ensure 
protective measures can and will be taken as conditions warrant.
    An emergency planning zone (EPZ) would not be defined for 
facilities licensed under proposed part 57. An EPZ is most useful as a 
planning tool for implementing precautionary actions through 
predetermined, prompt protective measures to respond to

[[Page 23645]]

events that involve a wide-scale area involving multiple jurisdictions 
and rapidly progressing incidents that could result in acute doses or 
early health effects. The characteristics of facilities that would be 
licensed under proposed part 57 provide assurance that planning for 
such precautionary actions is unnecessary. Consistent with other NRC-
licensed facilities that do not have defined EPZs, the proposed rule 
would ensure that applicants and licensees develop and maintain 
capabilities to protect emergency workers and the public.
    Proposed Sec.  57.60(a)(8)(v) would require the applicant to 
describe its physical security program, cybersecurity program, 
information security program, and access authorization program and is 
equivalent to Sec.  50.34(c). The physical security program would need 
to meet the security requirements in part 70. For radiological 
sabotage, because these events could disrupt the performance of the 
design of reactors licensed under proposed part 57, the applicant would 
need to perform an assessment against the threat of radiological 
sabotage. The purpose of this assessment would be to evaluate the 
design against security events derived from the design basis threat 
(DBT) of radiological sabotage defined in Sec.  73.1, ``Purpose and 
scope,'' to determine if an operational program for physical security 
is needed. The criterion for the assessment in proposed Sec.  
57.60(a)(8)(v)(A)(3) would require an applicant to show that potential 
consequences resulting from an event initiated by the DBT would result 
in offsite doses below the values in Sec.  50.34(a)(1)(ii)(D) even if 
mitigation and recovery actions, including any operator action, were 
unavailable or ineffective. For those proposed part 57 applicants not 
able to meet the criterion in proposed Sec.  57.60(a)(8)(v)(A)(3), 
proposed subpart J would provide performance-based requirements for 
licensees.
    Proposed Sec.  57.60(a)(8)(v)(B) would require licensees to 
establish, implement, and maintain a cybersecurity program in 
accordance with either Sec.  73.54, ``Protection of digital computer 
and communication systems and networks,'' or proposed Sec.  73.110, 
``Cybersecurity program.'' Proposed Sec.  57.60(a)(8)(v)(C) would 
require licensees to establish, implement, and maintain an information 
protection system that complies with the requirements of Sec. Sec.  
73.21, ``Protection of Safeguards Information: Performance 
requirements,'' 73.22, ``Protection of Safeguards Information: Specific 
requirements,'' and 73.23, ``Protection of Safeguards Information--
Modified Handling: Specific requirements,'' as applicable. Proposed 
57.60(a)(8)(v)(D) would require licensees to establish, implement, and 
maintain an access authorization program in accordance with Sec.  
73.56, ``Personnel access authorization requirements for nuclear power 
plants.''
    Proposed Sec.  57.60(a)(8)(vi) would require the applicant to 
provide proposed technical specifications prepared in accordance with 
the requirements of Sec.  50.36, ``Technical specifications,'' and 
would be equivalent to Sec.  50.34(b)(6)(vi).
    Proposed Sec.  57.60(a)(8)(vii) would require the applicant to 
submit procedures to be used to provide assurance that limiting 
conditions for any operating reactors will not be exceeded as a result 
of activities associated with the construction of any additional 
reactors at the same site and would be equivalent to Sec.  
50.34(b)(6)(vii).
    Proposed Sec.  57.60(a)(8)(viii) would require the applicant to 
provide a radiation protection program as part of its application and 
would be similar to Sec.  20.1101, ``Radiation protection programs.''
    Proposed Sec.  57.60(a)(8)(ix) would require the applicant to 
provide a fire protection program and would be similar to Sec.  
50.48(a). Proposed Sec.  57.60(a)(8)(ix)(A)-(C) would require the 
applicant to describe the fire protection program for the facility, any 
specific features necessary to implement the program, and an analysis 
to demonstrate that a fire or explosion in any area of the plant would 
not prevent a safety-related SSC from performing its safety function. 
Proposed Sec.  57.60(a)(8)(ix)(D)-(H) would establish specific 
requirements for the fire protection program.
    Proposed Sec.  57.60(a)(8)(x) would require the applicant to 
describe how the human factors engineering requirements of proposed 
Sec.  57.395 would be addressed. Proposed Sec.  57.60(a)(8)(x) would 
also require the applicant to describe the training, examination, and 
proficiency programs necessary to meet the requirements of proposed 
subpart P.
    Proposed Sec.  57.60(a)(8)(xi) would require the applicant to 
submit its description and plan for implementation of a remote 
operation or monitoring program, if applicable. Remote operation and 
remote monitoring are defined in proposed Sec.  57.3 as control of the 
reactor and observation of plant data, respectively, from a location 
outside of the site boundary. Stakeholders have expressed interest in 
the incorporation of remote operation and monitoring into their plant 
designs.
    Proposed Sec.  57.60(a)(8)(xii) would require the applicant to 
submit its program to ensure that systems and components meet the 
requirements in the codes and standards identified in the application 
in accordance with proposed Sec.  57.60(a)(9).
    Proposed Sec.  57.60(a)(8)(xiii) would require the applicant to 
submit its environmental qualification of safety-related electric 
equipment and would be similar to Sec.  50.49(a), which requires an 
applicant to establish a program for qualifying the electrical 
equipment. ``Environmental qualification'' means the applicant would 
assess possible degradation of safety-related SSCs by the effects of 
various environmental conditions.
    Proposed Sec.  57.60(a)(8)(xiv) would require the applicant to 
describe its FFD program under part 26 and would be equivalent to Sec.  
52.79(a)(44).
    Proposed Sec.  57.60(a)(8)(xv) would require the applicant to 
submit a staffing plan that details operations staffing and what 
staffing will be available to provide other needed support functions as 
proposed in Sec.  57.395(c).
    Proposed Sec.  57.60(a)(8)(xvi) would allow the applicant to seek 
approval of a plan for the storage of irradiated fuel after termination 
of an OL and would be similar to Sec.  50.54(bb). The plan would need 
to demonstrate compliance with all applicable irradiated fuel 
possession, safety, and environmental requirements; include a plan for 
funding the management of the fuel; and address, as applicable, 
transportation of the irradiated fuel.
    Proposed Sec.  57.60(a)(8)(xvii) would allow the applicant to seek 
approval of a decommissioning plan by submitting its plan with its 
joint application and would be similar to Sec.  50.82(b)(1), which 
requires the submittal of a decommissioning plan to the Commission.
    Proposed Sec.  57.60(a)(8)(xviii) would require the applicant to 
describe the managerial and administrative controls to assure safe 
operation. The managerial and administrative controls would promote 
safe, reliable, and efficient plant operation, including related 
maintenance activities. These controls would be in effect at all times 
during the operational phase. These controls would be in the form of 
procedures to effectively implement a QA program.
    Proposed Sec.  57.60(a)(9) would require the applicant to provide 
information on the use of codes and standards used to design the 
facility. In proposed part 57, the NRC would not incorporate by 
reference specific codes and standards

[[Page 23646]]

as is done under the existing regulations in Sec.  50.55a, ``Codes and 
standards,'' because some codes and standards are technology specific. 
Rather, the proposed rule would provide flexibility for the applicant 
to choose which codes and standards, including generally recognized 
consensus codes or standards to apply to the design of its facility. 
The applicant would be required to name each proposed code or standard 
and evaluate it for applicability, adequacy, and sufficiency. 
Justification would need to be provided if the code or standard would 
be supplemented or modified. Criteria from these consensus codes or 
standards would need to be clearly stated and shown to provide the 
appropriate level of reliability, safety, and performance capability. 
The applicability of these criteria would need to be determined from 
the safety assessment. However, the applicant could still choose to 
utilize 10 CFR 50.55a. Proposed part 57 would allow for the use of 
international codes and standards not previously used in NRC licensing, 
but the NRC recognizes that the use of any consensus code or standard 
would ultimately need to be found acceptable on an application-specific 
basis during an individual licensing review.
    Proposed Sec.  57.60(a)(10) would require the applicant to provide 
analyses and descriptions of the equipment and systems for combustible 
gas control required by paragraph (d) of Sec.  50.44, ``Combustible gas 
control for nuclear power reactors,'' and would be similar to Sec.  
50.34(g), ``Combustible gas control.''
    Proposed Sec.  57.60(a)(11) would require applicants to demonstrate 
their technical qualifications to carry out the proposed activities in 
compliance with the regulations in 10 CFR chapter I. This requirement 
would be similar to Sec.  50.34(a)(9).
    Proposed Sec.  57.60(a)(12) would require applicants to provide a 
description of the design-specific risk analysis methods used to 
demonstrate adequate defense in depth and safety margins, along with 
the results of that analysis. This approach would offer appropriate 
flexibility for risk analysis methods to be developed and assessed 
based on the application they are used to support. This would also 
include consideration of how risk analysis results and insights are 
relied upon, together with factors such as defense in depth, safety 
margin, simplicity of design, and treatment of uncertainty.
    Proposed Sec.  57.60(a)(13) would require an applicant to provide 
information demonstrating how it will comply with requirements for 
criticality accidents in Sec.  50.68, ``Criticality accident 
requirements,'' with the exception that proposed Sec.  57.60(a)(13) 
would limit the maximum nominal U-235 enrichment of fresh fuel 
assemblies specified in Sec.  50.68(b)(7) to less than twenty (20.0) 
weight percent to allow for the fuel enrichments anticipated for 
reactors that would be licensed under proposed part 57.
    Proposed Sec.  57.60(b) would require applicants to either justify 
the use of a categorical exclusion or, if a categorical exclusion would 
not apply, submit an environmental report, or an applicant-prepared 
environmental assessment or environmental impact statement, in 
accordance with 10 CFR part 51. Proposed Sec.  57.350(b) would 
establish criteria under which certain NRC actions would be 
categorically excluded from the requirement to prepare an environmental 
assessment or environmental impact statement.
    Proposed Sec.  57.60(c) would provide the option for an applicant 
to include in its joint application a request for generic finality. 
Under proposed Sec.  57.142(e) and Sec.  57.130(b)(7), affording the 
licensee ``generic finality'' would mean that matters resolved in the 
proceedings on the application for issuance of the CP and associated 
OL(s) for which the applicant has requested and the Commission has 
granted generic finality would be considered resolved in proceedings on 
other joint applications that reference the approved CP or associated 
OL(s). Proposed Sec.  57.60(c) would require the joint application to 
include, in addition to the information that would be required by 
proposed Sec.  57.60(a) and (b), site parameters postulated for the 
design, including the design basis external hazard levels for the 
relevant external hazards, and an analysis and evaluation of the design 
in terms of those site parameters, and may include generic aspects of 
operational programs and requirements of the types specified in 
proposed Sec.  57.60(a)(8), to the extent practicable. This would 
provide an alternate licensing pathway to an ML under proposed subpart 
D for obtaining finality on a complete final design for a nuclear 
reactor or nuclear plant. This would support high volume licensing of 
designs of reactors that would be wholly constructed at the site of 
operation and would also serve as a means for obtaining finality on the 
design of the portions of a nuclear plant other than the manufactured 
reactor, if one or more manufactured reactors were to be used.
    Proposed Sec.  57.60(d) would provide the option for an applicant 
to designate in its joint application for a CP and associated OL(s) a 
large geographical area or areas, as opposed to a specific site or 
sites, within which it proposes to construct and operate one or more 
nuclear reactors. This proposed regulation would provide a licensing 
pathway that could support rapid deployment of a reactor for disaster 
relief or other time-critical application, or fleet deployment within a 
large area. Proposed Sec.  57.60(d)(1)-(3) and (8) would require the 
applicant to supplement the information under proposed Sec.  57.60(a) 
and (b) to cover the entire designated area or areas, include maps, and 
provide any restrictions on specific locations within the designated 
area or areas.
    Proposed Sec.  57.60(d)(4) would require a plan for storage of 
irradiated fuel after termination of an operating license and proposed 
Sec.  57.60(d)(5) would require the application to include a 
decommissioning plan. Proposed Sec.  57.60(d)(6) would require the 
application to include a procedure covering activities that will be 
conducted in connection with constructing each reactor and placing it 
into operation at a specific location. Together, these requirements 
would ensure that the entire lifecycle of any nuclear reactor deployed 
in this manner would be analyzed and subject to public hearing at the 
construction permit review stage, thereby facilitating potential rapid 
issuance of an operating license once a specific location is chosen and 
the reactor constructed.
    Proposed Sec.  57.60(d)(7) would require the application to include 
a procedure that describes how the applicant would determine that a 
specific location within a designated area is suitable for construction 
and operation, including notification to the NRC, in the manner 
specified under proposed Sec.  57.4, before beginning construction. 
This procedure would provide assurance that any change in site 
characteristics at a specific location within the designated area or 
areas would be identified and verified to be within the bounds of the 
site characteristics approved in the construction permit. The 
notification that would be required by this procedure would allow the 
NRC to conduct any inspections deemed necessary during construction and 
prepare for activities needed to make the finding required by proposed 
Sec.  57.100(b)(1) and issue an OL.
    Proposed Sec.  57.80, ``Standards for review of applications,'' 
would require a joint application for a CP and associated OL(s) to be 
reviewed under the standards in parts 20, 50, 51, 54, 55, 70, 71, 72, 
73, 74, and 140, as applicable, and that the Commission must perform an 
environmental review of the application in accordance with

[[Page 23647]]

the provisions in proposed subpart K of part 57 and part 51.
    Paragraphs (a) through (i) of proposed Sec.  57.90, ``Common 
standards for licenses,'' would establish requirements for standards 
that the NRC would consider in determining whether a CP or OL under 
part 57 would be issued to an applicant. These requirements would be 
equivalent to those in Sec. Sec.  50.23, ``Construction permits,'' 
50.40, Common standards,'' 50.42, ``Additional standard for class 103 
licenses,'' 50.43(a)-(d), 50.45, ``Standards for construction permits, 
operating licenses, and combined licenses,'' and 50.50, ``Issuance of 
licenses and construction permits,'' except proposed Sec.  57.90(h) 
would specify that a CP would be converted into one or more OLs.
    Proposed Sec.  57.95, ``Issuance of construction permit,'' would 
address issuance of construction permits, such as the findings the 
Commission must make, the authorization provided by the construction 
permit, and limits on that authorization. Proposed Sec.  57.95(a) is 
based on Sec.  52.97, ``Issuance of combined licenses,'' which covers 
issuance of combined licenses because under proposed part 57, the 
Commission would review the final design and any operational programs 
and requirements that are material to the adequacy of the design as 
part of the construction permit review. Unlike Sec.  52.97(a)(1)(iii), 
proposed Sec.  57.95(a)(3) would not include a finding about whether 
the facility would operate in conformity with the license as this would 
be left for the issuance of the OL under proposed Sec.  57.100, 
``Issuance of operating license.'' Proposed Sec.  57.95(b) would be 
equivalent to Sec.  50.35(b), except that it would specify that the 
construction permit would not constitute Commission approval of the 
operational programs and requirements provided in the application 
unless the applicant specifically requests such approval and such 
approval is incorporated in the construction permit. Proposed Sec.  
57.95(c) would be equivalent to Sec.  50.35(c).
    Proposed Sec.  57.100, ``Issuance of operating license,'' would 
address issuance of OLs, such as the findings the Commission must make, 
requests for low power testing, and conditions on the OL. Proposed 
Sec.  57.100(a) would be equivalent to Sec.  50.56, ``Conversion of 
construction permit to license; or amendment of license.'' Proposed 
Sec.  57.100(b)(1) through (6) would be equivalent to Sec.  50.57(a)(1) 
through (6). Proposed Sec.  57.100(c) would be equivalent to 50.57(b). 
Proposed Sec.  57.100(d) would be equivalent to 50.57(c).
    Proposed Sec.  57.100(e) would require an operating license that 
references an ML to include a condition, as appropriate, that would 
specify that the authorization to operate the reactor would be 
suspended while features to prevent criticality are in place. The 
condition would also specify that initiation of removal of features to 
prevent criticality would not be allowed unless either all conditions 
of an OL issued under proposed part 57 authorizing operating of the 
reactor were satisfied, or the reactor had been defueled in accordance 
with an appropriate license issued by the Commission.
    Proposed Sec.  57.100(f) would specify that an OL for a nuclear 
reactor that would be part of a nuclear plant at which portions of the 
nuclear plant would be shared with one or more other reactors over the 
lifetime of the plant as described in proposed Sec.  57.60(a)(4)(iii), 
must include a condition specifying that the shared portions of the 
plant would be part of the facility as described in the operating 
license's FSAR and any related technical specifications under proposed 
Sec.  57.60(a)(4)(iv) would be incorporated in the license. This 
proposed requirement would ensure that shared portions of a nuclear 
plant and any shared safety-related SSCs would be appropriately 
considered in each OL for a nuclear reactor that would be part of the 
nuclear plant and support the requirements in proposed Sec.  57.305, 
``Decommissioning and license termination,'' for decommissioning a 
nuclear plant at which more than one reactor would be operated over the 
lifetime of the plant.
    Proposed Sec.  57.105(a) would address the duration of a CP and OL 
and would be equivalent to Sec.  50.51(a). Proposed Sec.  57.105(b) 
would address cessation of operations and the continued possession and 
ownership of the nuclear reactor or nuclear plant and would be 
equivalent to Sec.  50.51(b).
    Proposed Sec.  57.110, ``Transfer of licenses,'' would establish 
requirements for the transfer of a CP or OL by providing the equivalent 
requirements of Sec.  50.80, ``Transfer of licenses.''
    Proposed Sec.  57.115, ``Application for renewal,'' would address 
applications for renewal of OLs. Proposed Sec.  57.110(a) would require 
the filing of an application for a renewed license to be in accordance 
with proposed Sec. Sec.  57.4 and 57.7. Proposed Sec.  57.115(b)-(e) 
would specify the information required to be included in an application 
for renewal to include the technical specifications and information 
related to general, technical, environmental, and aging management 
requirements and would be equivalent to Sec. Sec.  54.19, ``Contents of 
application--general information,'' 54.21, ``Contents of application--
technical information,'' and 54.22, ``Contents of application--
technical specifications,'' albeit modified to reflect the requirements 
for the FSAR, environmental report, and technical specifications for 
reactors licensed under proposed part 57. Proposed Sec.  57.115(f) 
would address hearing opportunities and would be equivalent to Sec.  
54.27, ``Hearings.''
    Proposed Sec.  57.120, ``Criteria for renewal,'' would address the 
Commission's criteria for issuing a renewed operating license and would 
be equivalent to Sec.  54.29, ``Standards for issuance of a renewed 
license.''
    Proposed Sec.  57.130, ``Hearings,'' would address requirements for 
hearings for CPs and OLs and would be equivalent to the requirements in 
Sec.  50.58(b) and Sec.  54.27. If an applicant were to request generic 
finality under proposed Sec.  57.60(c), then the Commission's ruling on 
a request for hearing or petition for leave to intervene under 10 CFR 
2.309(d)(2) would consider that a petitioner may have an interest that 
may be affected by the proceeding on the application if matters 
resolved in the licensing proceeding were to be afforded generic 
finality under proposed Sec.  57.142, ``Finality for construction 
permits and operating licenses.'' This would enable petitioners whose 
property, financial, or other interests would not be directly affected 
by the issuance of the CP and OL for a particular reactor to have an 
opportunity to intervene on generic aspects of the design that would be 
afforded finality and would therefore not be subject to hearing if 
referenced in a joint application for a CP and associated OL(s) that 
would affect the petitioner's property, financial, or other interest. 
Proposed Sec.  57.130(b)(7) would require the Commission to include an 
applicant's request for generic finality as a proposed action in the 
joint notice of hearing and proposed action that would be required by 
Sec. Sec.  2.104, ``Notice of hearing,'' and 2.105, ``Notice of 
proposed action.''
    Proposed Sec.  57.135, ``Duration of renewal,'' would require that 
a renewed OL be issued for a fixed period of time beyond the expiration 
of the current OL. The period would be the sum of the amount of time 
beyond the expiration of the OL requested in a renewal application plus 
any remaining years on the operating license currently active. This 
proposed rule would provide that no renewed license would exceed more 
than 40 years in duration, which is limited by the AEA.

[[Page 23648]]

    Proposed Sec.  57.142 would include requirements to address 
finality for construction permits and operating licenses and would be 
similar to the finality provisions for MLs in proposed Sec.  57.175, 
``Finality of manufacturing licenses; information requests.'' Proposed 
Sec.  57.142(e) would specify that the Commission may afford generic 
finality to generic aspects of the design of a nuclear reactor or 
nuclear plant, including postulated site parameters, and generic 
operational programs and requirements submitted pursuant to proposed 
Sec.  57.60(c), if it finds that the proposed generic design can be 
constructed and operated at sites having characteristics that fall 
within the site parameters postulated for the design, and in accordance 
with the generic operational programs and requirements, without undue 
risk to the health and safety of the public. This proposed requirement 
would provide an alternative to an ML for standardization of nuclear 
reactor or nuclear plant designs and operational programs and 
requirements for the purpose of referencing in a subsequent joint 
application for a CP and associated OL(s) under proposed part 57.

E. Subpart D--Manufacturing Licenses

    Provisions related to MLs were first adopted by the NRC in 1973 
through the addition of appendix M to part 50. The regulation supported 
the manufacture of a nuclear power reactor to be incorporated into a 
commercial nuclear plant under a CP and operated under an OL at a 
different location from the place of manufacture. The regulations and 
processes for MLs were changed substantially in the part 52 rulemaking 
in 2007 (72 FR 49352). The most important shift in the ML concept in 
that rulemaking was that a final reactor design, which would be 
equivalent to that required for a standard design certification under 
part 52 or an OL under part 50, must be submitted and approved before 
issuance of an ML. The rationale for that change was that approval of a 
final design ensures early consideration and resolution of technical 
matters before there is any substantial commitment of resources 
associated with the actual manufacture of the reactor, which greatly 
enhances regulatory stability and predictability.
    Proposed subpart D would address applications for, issuance of, and 
other provisions related to MLs covering manufacturing activities at 
one or more licensee facilities under proposed part 57. These proposed 
requirements would be largely equivalent to those in part 52 for MLs.
    Proposed Sec.  57.145, ``Scope,'' would address the scope of the 
proposed subpart D sections and would be equivalent to Sec.  52.151, 
``Scope of subpart,'' except that it also would state that the scope of 
proposed subpart D includes requirements for manufacturing manufactured 
reactors at a manufacturing facility, loading fuel into manufactured 
reactors at the manufacturing facility, and transportation of 
manufactured reactors.
    Proposed Sec.  57.150, ``Contents of applications for manufacturing 
licenses; general information,'' would address general information 
requirements for the content of ML applications and would be equivalent 
to Sec.  52.156, ``Contents of applications; general information,'' 
with one exception. Proposed Sec.  57.150 would require each 
application for an ML to also include the information required by 
proposed Sec.  57.55(e). This information would include the type of 
license applied for, the use to which the facility will be put, the 
period of time for which the license is sought, and a list of other 
licenses, except operator's licenses, issued or applied for in 
connection with the proposed facility to address the potential 
variations in how MLs might be formulated under proposed part 57.
    Proposed Sec. Sec.  57.155, ``Contents of applications; technical 
information in final safety analysis report,'' and 57.160, ``Contents 
of applications; additional information,'' would address requirements 
for the technical content of applications for MLs to be included in the 
FSAR and additional information to be included in the application and 
would be equivalent to Sec. Sec.  52.157, ``Contents of applications; 
technical information in final safety analysis report,'' and 52.158, 
``Contents of applications; additional technical information,'' with 
three significant exceptions. First, proposed Sec.  57.155(c) would 
include the option for the application to include final, non-site-
specific design information for a nuclear plant that would use a 
reactor manufactured under the ML. This would allow the NRC to review 
the design of the entire nuclear plant and afford finality in 
accordance with proposed Sec.  57.175, which would increase the 
efficiency of reviewing a joint application for a CP and associated 
OL(s) under proposed subpart C that references the ML. Second, proposed 
Sec.  57.155 would not include a requirement for proposed inspections, 
tests, analyses, and acceptance criteria to be included in the 
application because they would not be required for the issuance of OLs 
under proposed subpart C. Third, proposed Sec.  57.160(a) would provide 
the option for an applicant to include in its application descriptions 
of generic operational programs and requirements, which the NRC could 
afford finality to in accordance with proposed Sec.  57.175.
    In addition, the requirements in proposed Sec. Sec.  57.155 and 
57.160 would be modified from the analogous requirements in Sec. Sec.  
52.157 and 52.158 to align with the technical requirements in proposed 
part 57. Proposed Sec.  57.155(a) would outline the required content of 
the application addressing design information and state that the 
application must include design information equivalent to that required 
for a joint application for a CP and associated OL(s) under proposed 
subpart C, other than site-specific information, relevant to the 
manufactured reactor.
    Proposed Sec.  57.160(b) would require an ML application to include 
either the information justifying application of a categorical 
exclusion as described in proposed subpart K of part 57, or an 
environmental report or applicant-prepared environmental assessment, in 
accordance with 10 CFR part 51.
    Proposed Sec.  57.160(c) would require an ML application to include 
a description of the safeguards information program, in accordance with 
Sec. Sec.  73.21 and 73.22 of this chapter, as applicable, to prevent 
any unauthorized disclosure.
    Proposed Sec.  57.160(d)(1) would require an ML application to 
include a description of the relevant codes and standards used in the 
procurement, fabrication, and assembly of components comprising the 
manufactured reactor. Proposed Sec.  57.160(d)(2) would require an ML 
application to include a description of the organizational and 
management structure responsible for the design and manufacturing of 
the manufactured reactor. Proposed Sec.  57.160(d)(3) would require an 
ML application to include a description of the tests and inspections to 
be performed during the manufacturing and fabrication process, 
including components, as well as an assembled manufactured reactor. 
Proposed Sec.  57.160(d)(4) would require an ML application to include 
a description of the fitness-for-duty program required by part 26.
    Proposed Sec.  57.160(e) would provide application requirements 
related to the deployment of the completed manufactured reactor. 
Proposed Sec.  57.160(e)(1) would require inclusion of information 
related to the procedures governing the preparation of the manufactured 
reactor for shipping to the site where it is to be operated, the 
conduct of shipping, and the verification of the condition of the

[[Page 23649]]

shipped items upon receipt at the site. Proposed Sec.  57.160(e)(2) 
would require that the application include information on the 
interaction of the design, manufacture, and installation of a 
manufactured reactor within the applicant's organization and the manner 
by which the applicant would ensure close integration between the 
designer, contractors, and any licensee of a facility in which the 
manufactured reactor is to be installed. Finally, proposed Sec.  
57.160(e)(3) would require that the application include a description 
of the measures to be used for the control of interfaces between the 
holder of the ML and the holder of the CP for the nuclear plant at 
which the manufactured reactor is to be installed. This information 
would be necessary for the NRC to determine whether the applicant has 
appropriate controls in place to ensure coordination between parties 
involved in the design, manufacture, and eventual operation of any 
reactor manufactured under an ML.
    Proposed Sec.  57.160(f) would include additional requirements for 
application content for applicants seeking an ML for manufactured 
reactors that will be fueled at the manufacturing facility under a 
license issued in accordance with 10 CFR part 70, ``Domestic Licensing 
of Special Nuclear Material,'' consistent with the requirements in 
proposed Sec.  57.197(d). These provisions would require the 
application to include information related to loading fuel and the 
required features to prevent criticality and to otherwise provide 
assurance that the fueled manufactured reactor could be successfully 
transported, installed, and operated at a site for which the Commission 
has issued a CP under proposed subpart C that authorizes construction 
of a nuclear plant using the manufactured reactor.
    Proposed Sec. Sec.  57.165, ``Standards for review of 
applications,'' and 57.170, ``Administrative review of applications; 
hearings,'' would provide standards for review of applications and 
administrative review of applications for MLs, including hearings, and 
would be equivalent to Sec. Sec.  52.159, ``Standards for review of 
applications,'' and 52.163, ``Administrative review of applications; 
hearings.''
    Proposed Sec.  57.172, ``Issuance of manufacturing license,'' would 
address issuance of an ML and would be equivalent to Sec.  52.167, 
``Issuance of manufacturing license,'' with two exceptions. First, 
proposed Sec.  57.172(a)(6) would include a requirement that the 
Commission make a finding that generic operational programs submitted 
as part of the ML application under proposed Sec.  57.160(a) provide 
reasonable assurance that the manufactured reactor can be operated 
under an operating license that references the manufacturing license in 
conformity with the provisions of the AEA and the Commission's 
regulations. Second, proposed Sec.  57.172(b)(4) would require each ML 
issued under proposed part 57 to specify that the portions of the 
nuclear plant other than the manufactured reactor must be as described 
in the information included in the ML application if the applicant 
chose to include this information in accordance with proposed Sec.  
57.155(c)(8) instead of interface requirements. These provisions of 
proposed Sec.  57.172 could greatly reduce the scope of and timeframe 
for review of a joint application for a CP and associated OL(s) that 
references the ML because the NRC would have afforded finality to the 
entire nuclear plant design and potentially nearly all the operational 
programs through the ML proceeding, allowing the review of the joint 
application to focus on site-specific information.
    Proposed Sec.  57.175 would address finality of MLs and would be 
equivalent to Sec.  52.171, with the exception that proposed Sec.  
57.175(d) would allow the holder of an ML to use the regulations in 
Sec.  50.59, ``Changes, tests, and experiments,'' to determine whether 
changes to the facility or procedures as described in the FSAR would 
require an amendment to the ML. This would be different than the 
provisions in Sec.  52.171 that do not allow any changes to the design 
of a manufactured reactor without requesting a license amendment.
    Proposed Sec.  57.180, ``Duration of manufacturing license,'' would 
address the duration of MLs. However, compared to the current analogous 
requirements in Sec.  52.173, ``Duration of manufacturing license,'' 
proposed Sec.  57.180 would not include a minimum duration for an ML 
and would provide for a 40-year maximum for the duration of an ML. 
These differences would be consistent with the requirement in proposed 
Sec.  57.55(e) that each application must state the period of time for 
which the license is sought and the limitation on the duration of 
design certifications in Sec.  52.55, ``Duration of certification.'' 
Proposed Sec.  57.185, ``Transfer of manufacturing license,'' would 
address the transfer of MLs and would be equivalent to Sec.  52.175, 
``Transfer of manufacturing license.''
    Proposed Sec.  57.190, ``Renewal of manufacturing licenses,'' would 
address the renewal of MLs and would be equivalent to Sec. Sec.  
52.177, ``Application for renewal,'' 52.179, ``Criteria for renewal,'' 
and 52.181, ``Duration of renewal,'' with a minor exception. Proposed 
Sec.  57.190(b) would state that an ML for which a timely application 
for renewal has been filed would remain in effect until the Commission 
has made a final determination on the renewal application. However, 
this provision would omit a limitation from the equivalent provision in 
Sec.  52.177, which prohibits the holder of an ML from beginning the 
manufacture of a manufacture reactor less than 3 years before the 
expiration of the license. This limitation would be omitted because 
applicants under proposed part 57 may present smaller, simpler designs 
in ML applications than those that were envisioned when the existing 
requirements were written. Eliminating the 3-year constraint in this 
provision would provide greater flexibility for ML holders related to 
manufactured reactors being produced close to the time when the ML 
expires. Finally, proposed Sec.  57.190(e) would provide for a 40-year 
term for a renewed ML, consistent with the term for an initial ML under 
proposed Sec.  57.180.
    Proposed Sec.  57.197, ``Manufacturing,'' would include 
requirements covering the activities performed under an ML issued under 
proposed part 57. Proposed Sec.  57.197 would also include requirements 
that apply to portions of a manufactured reactor in recognition that 
some activities covered by an ML may occur at different fabrication 
facilities. Proposed Sec.  57.197(a) would establish the requirements 
to have in place programs, procedures, and a well-defined command and 
control structure to manage manufacturing-related activities.
    Proposed Sec.  57.197(b) would include requirements for executing 
the manufacturing activities following receipt of an ML under proposed 
part 57. These requirements would include conducting manufacturing 
processes within facilities for which the license holder can control 
access and activities that might affect manufacturing, performing 
manufacturing in accordance with the ML and appropriate codes and 
standards, and establishing and implementing post-manufacturing 
inspections.
    Proposed Sec.  57.197(c) would provide requirements for the control 
of radioactive materials if the holder of an ML plans to possess and 
use source, byproduct, or special nuclear material as part of the 
manufacturing process. By and large, the proposed Sec.  57.197 would 
refer to NRC regulations in 10 CFR part 30, ``Rules of General 
Applicability to Domestic Licensing of Byproduct Material,'' 10 CFR 
part 40, ``Domestic

[[Page 23650]]

Licensing of Source Material,'' and part 70 for the requirements on 
controlling radioactive materials. The NRC proposes several specific 
requirements to address the potential hazards of radioactive materials 
in areas such as having a fire protection program, an emergency plan, 
training programs, and procedures to minimize contamination.
    The most significant change proposed for MLs in part 57 (which 
would be similar to changes for MLs under part 53) as compared to MLs 
under part 52 relates to proposed Sec.  57.197(d), which would allow 
and establish requirements for the loading of fuel into a manufactured 
reactor at the manufacturing site for subsequent transport to a nuclear 
plant that would be constructed pursuant to a CP that would be issued 
under proposed part 57. The first requirement in proposed Sec.  
57.197(d) would establish limitations on when a holder of an ML under 
proposed part 57 and a license under part 70 could load fuel into a 
reactor manufactured under the ML. The proposed regulation would 
require that features to prevent criticality specified in the ML be in 
place before loading fuel into the manufactured reactor and during the 
reactor's storage and transport. The proposed requirement would provide 
flexibility because of the potential variety of reactor designs, the 
variety of possible measures to prevent criticality, and the range of 
possible conditions associated with the loading of fuel into, storage 
of, and transport of manufactured reactors. For example, the features 
to prevent criticality that could be considered individually and 
collectively to address possible adverse conditions include the 
reactivity control systems in place to support operations, inherent 
features of the fuel and materials within a manufactured reactor, and 
temporary measures or physical mechanisms (e.g., neutron poisons) for 
specific circumstances and conditions. This proposed requirement would 
contribute to the NRC's longstanding practice of requiring defense in 
depth for preventing accidents in any facility possessing or using SNM, 
including requirements in Sec.  70.22(a)(8) for procedures to protect 
health and minimize danger to life or property (e.g., procedures to 
avoid accidental criticality, determine subcritical limits on 
controlled parameters under normal conditions or subcritical values 
under abnormal conditions, monitor personnel and waste disposal, 
provide post-criticality accident emergency response, and adhere to the 
double contingency principle where practicable).
    The proposed requirements to have in place features to prevent 
criticality could likewise support meeting other provisions in part 70, 
such as those related to equipment and procedures that protect health 
and minimize danger to life or property. The features to prevent 
criticality in the proposed part 57 requirements would reasonably 
ensure that a manufactured reactor does not become critical over a 
range of possible conditions. With the requirements for features to 
prevent criticality under proposed part 57 and all criticality safety 
controls required by part 70 in place, the presence of fuel in the 
manufactured reactor would not create a nuclear hazard different than 
the hazard from the presence of the same fuel in a storage location or 
container licensed under part 70. Collectively, these measures would 
reasonably ensure that the manufactured reactor is not capable of 
operations, thereby obviating the need for an OL under proposed subpart 
C of part 57 to authorize fuel loading. Additionally, this approach 
would focus the ML application and its review on the design, 
manufacture, and deployment of the manufactured reactor.
    The activities involving SNM within the manufacturing facility, 
including the loading of fuel, would be regulated primarily under the 
part 70 license. The provisions of subpart H to part 70 would not be 
applicable to a part 70 license that only authorizes possession of 
special nuclear material for the purpose of loading fresh fuel into a 
manufactured reactor. The reference to the requirements in part 70 in 
proposed Sec.  57.197(d) would reasonably assure that the applicant 
will utilize the appropriate equipment and procedures to protect health 
and minimize danger to life or property. The regulations in part 51 
provide a flexible approach for environmental review to address the 
range of regulated activities under part 70. The flexibility in part 51 
would enable the NRC to determine the appropriate type of environmental 
review based on the circumstances associated with the loading of fuel 
into a specific manufactured reactor.
    Proposed Sec.  57.197(d) would cite the requirements in 10 CFR 
parts 70 and 73 to ensure important features and programs are in place 
prior to the receipt of SNM. The features and programs that would be 
required by 10 CFR parts 70 and 73 to be in place prior to receipt of 
SNM would include (1) radiation monitoring instrumentation and alarms; 
(2) measures to detect potential criticality accidents; (3) appropriate 
procedures, equipment, and personnel qualified for the fuel loading; 
(4) programs for physical security and cybersecurity; and (5) material 
control and accounting (MC&A) programs.
    Proposed Sec.  57.197(d)(2) would cover the activities related to 
the storage, movement, and loading of fresh fuel into a manufactured 
reactor in the manufacturing facility and would likewise refer to the 
applicable regulations in part 70.
    Proposed Sec.  57.197(d)(3) would include requirements to address 
security programs for any ML authorizing possession of a manufactured 
reactor into which fuel has been loaded at the manufacturing facility. 
Currently, for category II SNM, security measures may be required in 
addition to requirements included in Sec.  73.67, ``Licensee fixed site 
and in-transit requirements for the physical protection of special 
nuclear material of moderate and low strategic significance,'' on a 
case-by-case basis. Including appropriate security measures in the 
proposed part 57 regulations would provide additional openness and 
transparency for applicants applying for an ML who seek to load fuel 
into manufactured reactors at a manufacturing site.
    Currently, Sec.  73.67 only requires a security plan for licensees 
who possess, use, transport, or deliver to a carrier for transport SNM 
of moderate strategic significance, or 10 kg or more of SNM of low 
strategic significance. However, the physical security program for 
fueled manufactured reactors would require a security plan for any ML 
authorizing possession of a manufactured reactor into which fuel has 
been loaded at the manufacturing facility, regardless of fuel type, 
enrichment, and quantity. This would be consistent with other controls 
proposed for MLs, including reactivity and criticality controls.
    The proposed Sec.  57.197(d)(3) would also require a holder of an 
ML that would load fuel into a manufactured reactor under a part 70 
license to address cybersecurity to ensure a cyberattack would not 
adversely impact the functions performed by digital assets necessary 
for physical security, radiation monitoring, or criticality prevention.
    Proposed Sec.  57.197(d)(4) would require the loading or unloading 
of fuel into or from a manufactured reactor and any changes to the 
configuration of reactivity-related systems to be performed by a 
certified fuel handler.
    Proposed Sec.  57.197(e) would only allow the transport or removal 
of a manufactured reactor or portions of a manufactured reactor for 
either (1) delivery to a domestic site for which the

[[Page 23651]]

Commission has issued a CP authorizing the construction of a nuclear 
plant using a manufactured reactor under the specific ML, or (2) export 
in accordance with 10 CFR part 110, ``Export and Import of Nuclear 
Equipment and Material.'' This proposed requirement would be similar to 
the limitations in Sec.  52.153, ``Relationship to other subparts,'' 
with the difference being that proposed part 57 would allow the 
installation of a manufactured reactor only at the site of a CP issued 
under proposed subpart C of part 57. An additional paragraph in 
proposed Sec.  57.197(e) would provide requirements for protecting 
fueled manufactured reactors during transport to the site of the 
nuclear plant by referencing the transportation and security 
requirements in 10 CFR part 71 and part 73. As previously noted, 
proposed Sec.  57.197(e) would include an additional provision that 
would allow a manufactured reactor or portions of a manufactured 
reactor to be removed from the place of manufacture for export in 
accordance with 10 CFR part 110, which represents another difference 
from the similar provision in Sec.  52.153.
    Proposed Sec.  57.197(f) would include requirements for the 
acceptance of a manufactured reactor at the site of a nuclear plant 
specified in a CP issued under proposed subpart C of part 57 and would 
require that the manufactured reactor be installed in accordance with 
that CP. Other requirements in proposed Sec.  57.197(f) would address 
required receipt inspections and verification that any interface 
requirements between the manufactured reactor and the balance of the 
nuclear plant have been met.

F. Subpart E--Standard Design Approvals

    Proposed subpart E would address applications for, issuance of, and 
other requirements related to SDAs under proposed part 57. Proposed 
Sec.  57.200, ``Scope,'' would describe how the contents of proposed 
subpart E would address SDAs and would be equivalent to Sec.  52.131, 
``Scope of subpart.'' Proposed Sec.  57.205, ``Contents of 
applications; general information,'' would address general information 
requirements for the content of applications and would be equivalent to 
Sec.  52.136, ``Contents of applications; general information.''
    Proposed Sec.  57.210, ``Contents of applications; technical 
information,'' would address requirements for the technical content of 
applications and would be largely equivalent to Sec.  52.137, 
``Contents of applications; technical information.'' Proposed Sec.  
57.210 would include additional requirements for applications for 
approval of a ``major portion'' of a standard design. Additional 
discussion regarding standard design approvals for a major portion of a 
standard design can be found in the NRC's ``A Regulatory Review Roadmap 
for Non-Light Water Reactors,'' which considers the Nuclear Innovation 
Alliance report, ``Clarifying `Major Portions' of a Reactor Design in 
Support of a Standard Design Approval.'' Proposed Sec.  57.210(a) would 
outline the required content of the FSAR. This content would be 
modified from the analogous requirements in Sec.  52.137 to align with 
the technical requirements in proposed part 57. Proposed Sec.  
57.210(b)(1) for portions of the application addressing design 
information would state that the application must include design 
information equivalent to that required for a joint application for a 
CP and associated OL(s) under proposed subpart C, other than site-
specific information, relevant to the scope of the SDA.
    Proposed Sec.  57.213, ``Standards for review of applications,'' 
would address standards for review of applications and would be 
equivalent to Sec.  52.139, ``Standards for review of applications.'' 
Proposed Sec. Sec.  57.215, ``Staff approval of design,'' would address 
staff approval of designs and would be equivalent to Sec. Sec.  52.143, 
``Staff approval of design.''
    Proposed Sec.  57.220, ``Finality of standard design approvals; 
information requests,'' would address finality of standard design 
approvals and information requests and would be equivalent to Sec.  
52.145, ``Finality of standard design approvals; information 
requests.'' There would be no equivalent to proposed Sec.  57.220(d) in 
part 52 for standard design approvals. This provision would state that 
the Commission will require, before granting a CP, OL, or ML that 
references a standard design approval, that information normally 
contained in engineering documents be completed and available for 
audit. A similar provision is included in Sec.  52.47, ``Contents of 
applications; technical information,'' in relation to a standard design 
certification. Proposed Sec.  57.220(d) would require that design and 
analysis information that would be needed for the Commission to make 
its safety determination be complete and available for any application 
the NRC would be reviewing. Making this explicit would provide 
increased clarity to future standard design approval applicants under 
proposed part 57.
    Proposed Sec.  57.225, ``Duration of design approval,'' would 
specify that an SDA under the part 57 framework does not expire, which 
is different than the current regulation in Sec.  52.147, ``Duration of 
design approval,'' that limits the validity of an SDA under the part 52 
framework to 15 years and prohibits renewal. Proposed Sec.  57.220(a) 
would specify that the NRC staff and the ACRS do not have to use or 
rely on the earlier determination on an SDA under the proposed Sec.  
57.215 in their review of any application under proposed part 57 that 
incorporates by reference the SDA if there exists significant new 
information or for other good cause that substantially affects the 
earlier determination. This would allow the NRC staff and ACRS to 
address potential issues, including but not limited to design 
obsolescence or advances in the state of the art, that might arise 
because of the indefinite duration of the SDA. This change would also 
reduce the administrative burden on applicants and the NRC associated 
with a request for re-approval of a standard design and would align 
with the indefinite validity (as supported by renewals) of OLs and MLs 
that could reference an SDA.

G. Subpart F--Reporting of Defects and Noncompliance

    Proposed subpart F of part 57 would establish procedures and 
requirements for implementation of section 206 of the Energy 
Reorganization Act of 1974. That section requires any individual 
director or responsible officer of a firm constructing, owning, 
operating, or supplying the components of any facility or activity that 
is licensed or otherwise regulated pursuant to the AEA or the Energy 
Reorganization Act of 1974, to immediately notify the Commission if 
they obtain information reasonably indicating certain failures to 
comply or defects, unless the individual has actual knowledge that the 
Commission has been adequately informed of the failure to comply or 
defect. These failures to comply or defects are the following: the 
facility, activity, or basic component supplied to such facility or 
activity fails to comply with the AEA or any applicable rule, 
regulation, order, or license of the Commission relating to substantial 
safety hazards; or the facility, activity, or basic component supplied 
to such facility or activity contains defects that could create a 
substantial safety hazard.
    The proposed Sec.  57.240, ``Definitions,'' would provide 
definitions that are consistent with those applicable to non-power 
reactors in 10 CFR part 21, ``Reporting of Defects and Noncompliance,'' 
with some slight differences to be technology neutral and reflect the 
types of facilities that would be eligible for licensing under proposed

[[Page 23652]]

part 57. The proposed definition of ``Basic component'' would be 
slightly different than the definition in Sec.  50.2 in that the 
proposed definition would cover the same concept but would be 
technology neutral and reference the accident dose entry criterion in 
proposed Sec.  57.25(a). The proposed Sec.  57.240 would specifically 
define ``construction'' or ``constructing'' for use in proposed subpart 
F to mean the analysis, design, manufacture, fabrication, placement, 
erection, installation, modification, inspection, or testing of a 
facility or activity that is subject to the regulations in proposed 
part 57 and safety-related consulting services related to the facility 
or activity. This definition of ``constructing'' or ``construction'' 
would be different than the definition in proposed Sec.  57.3 because 
it is needed to define the applicability of proposed Sec.  57.240 and 
part 21. The proposed definition of ``Dedicating entity'' is slightly 
different than the definition in Sec.  21.3. The proposed definition 
would state that the dedicating entity would be the organization that 
performs the dedication process and would not otherwise describe the 
dedicating entity like in Sec.  21.3. The proposed definition of 
``Dedication'' is slightly different than the definition in Sec.  21.3. 
The dedication process must be conducted in accordance with the 
applicant's applicable provisions for their proposed Sec.  57.60(a)(3)-
required quality assurance program rather than appendix B to part 50.
    Proposed Sec.  57.270, ``Notification of failure to comply or 
existence of a defect and its evaluation,'' would require the holders 
of construction permits and manufacturing licenses under proposed part 
57 to report any significant breakdown in quality assurance and would 
be equivalent to requirements in Sec.  50.55(e). Proposed Sec.  57.285, 
``Maintenance and inspection of records,'' would provide record 
retention requirements for the holders of construction permits and 
manufacturing licenses under proposed part 57 that would be equivalent 
to record retention requirements in Sec.  50.55(e). All other sections 
of proposed subpart F would be equivalent to corresponding part 21 
provisions.

H. Subpart G--Irradiated Fuel Storage, Decommissioning, and License 
Termination Requirements

1. Irradiated Fuel Storage
    The NRC proposes to regulate irradiated fuel storage by entities 
licensed under proposed part 57 by requiring a combination of a license 
under 10 CFR part 70, a general or site-specific license under 10 CFR 
part 72, and the use of a certified irradiated nuclear fuel dry storage 
system under part 72.
    The NRC proposes to issue to the holder of an OL under proposed 
part 57 a part 72 general license for the disposition of irradiated 
fuel, similar to the general license issued to the holder of a part 50 
OL under Sec.  72.210, ``General license issued.'' Proposed Sec.  
57.300(a) would permit the proposed part 57 OL holder to store the 
irradiated fuel from its reactor at the operating site within the 
reactor or in an irradiated fuel storage system certified under part 
72. The NRC proposes to allow in-reactor storage of irradiated fuel 
because the conditions of the reactor are essentially unchanged whether 
the reactor is in operation or has ceased operations (e.g., radiation 
shielding, confinement, passive heat dissipation). Thus, an OL holder 
would continue to comply with its OL license to maintain the condition 
of the reactor and, by doing so, would safely store the irradiated fuel 
in the reactor. If the OL is to be terminated, the OL holder would need 
to request and be issued a part 72 specific license to store the 
irradiated fuel in a storage installation at the operating site.
    Proposed Sec.  57.300(b) would permit the holder of a manufacturing 
license under proposed part 57 to store at the manufacturing site the 
irradiated fuel from a reactor manufactured under the ML, operated 
under the OL, and returned to the manufacturing site. Under this 
scenario, the ML holder would need a part 70 license for possession of 
the SNM contained in the fuel and a part 72 site-specific license to 
allow storage of the irradiated fuel. The ML holder could store the 
reactor's irradiated fuel within the reactor if the reactor has been 
certified as a part 72 irradiated fuel storage system or move the 
reactor's irradiated fuel to another NRC-certified irradiated fuel 
storage system. In the cases where the ML holder may temporarily allow 
fuel to remain within a reactor, either after operational testing and 
before shipment, or when a reactor containing irradiated fuel is 
returned to the manufacturing facility site, the ML holder must 
demonstrate that the fuel in the reactor is maintained in a safe 
condition and that dose to the workers and the public is limited, 
consistent with the provisions provided in part 72. Proposed Sec.  
57.300(b) would not require the reactor to be a certified storage 
system under part 72 because the duration of the storage condition is 
expected to be limited as determined by the ML holder's safety 
evaluation.
    Alternatively, under proposed Sec.  57.300(c), the OL or ML holder 
may move the irradiated fuel to another part 72 licensed storage 
facility either by transporting the reactor still containing the 
irradiated fuel as an NRC-certified transportation package or by 
repackaging the irradiated fuel in an NRC-certified transportation 
package.
    Proposed Sec.  57.300(d), ``Irradiated fuel storage plan,'' would 
apply to a holder of a proposed part 57 OL, or a holder of a proposed 
part 57 ML that plans to store the irradiated fuel from a reactor 
manufactured under the ML, that did not request NRC approval of an 
irradiated fuel management and funding plan with its license 
application. Such a licensee would be required to submit, for NRC 
review and approval under proposed Sec.  57.310, a plan describing how 
the licensee intends to manage and provide funding for the management 
of all irradiated fuel at a designated storage site following permanent 
cessation of operations of the reactor. This submission would need to 
occur within 1 year following permanent cessation of reactor 
operations, more than 2 years before expiration of the OL if storage 
would occur at the operating site, or more than 2 years before the 
expiration of the ML if the storage would occur at the manufacturing 
site.
2. Decommissioning
    Proposed Sec.  57.305, ``Decommissioning and license termination,'' 
would contain the decommissioning requirements and is generally 
consistent with the framework provided in Sec.  50.82(b). The proposed 
rule would accommodate the decommissioning of individual microreactors 
separate from the overall site, allowing licensees to use the structure 
of Sec.  50.82(b)(4), tailored to the design characteristics of the 
licensee's facility.
    In proposed Sec.  57.60(a)(8)(xvii), applicants would be able to 
request NRC approval of a decommissioning plan as part of the joint 
application. Early approval of the decommissioning plan would provide 
flexibility to support a range of decommissioning strategies, including 
decommissioning individual reactors, transporting reactors to a 
designated facility, or full-site decommissioning. This approach would 
enable licensees to align decommissioning planning with the specific 
designs and operational models of their facilities.
    Under proposed Sec.  57.305(b), in the absence of an NRC-approved 
decommissioning plan, a licensee would be subject to the requirements 
of Sec.  50.82(b). Whether at initial licensing or thereafter, the 
decommissioning plan

[[Page 23653]]

would need to be prepared using the framework of Sec.  50.82(b)(4), 
limited to those provisions applicable to the design characteristics of 
the licensed portion of the facility. The licensee's plan would need to 
address, as appropriate, transport to a designated facility for final 
decommissioning, final decommissioning of individual modules, or final 
decommissioning of the entire facility, and would have to ensure 
compliance with all applicable safety and environmental requirements.
    While licensees under proposed part 57 would not be required to 
submit post-shutdown decommissioning activities reports (required for 
large LWRs under Sec.  50.82(a)(4)) or license termination plans, they 
would be required to provide decommissioning plans under Sec.  
50.82(b). The proposed framework is designed to be sufficiently 
flexible to address plausible scenarios involving remediation of 
radiological contamination and demolition and dismantlement of 
radiologically contaminated structures after reactor shutdown and final 
demonstration of compliance with the unrestricted release criteria for 
residual radioactive material in Sec.  20.1402, ``Radiological criteria 
for unrestricted use,'' that may arise during decommissioning. For 
example, deployment models may involve one or several nuclear reactors 
at a single site, or operational activities could result in significant 
radiological contamination that would need to be remediated in order to 
meet the unrestricted release criteria. A licensee may request approval 
of a decommissioning plan and actions necessary for license termination 
prior to permanent cessation of operations, facilitating a streamlined 
transition from operations to decommissioning. The decommissioning 
plans covering individually licensed reactors are anticipated to have 
relatively short decommissioning timelines. Larger or more complex 
sites may have extended periods for decommissioning because any 
residual radioactivity in the onsite licensed area or environmental 
media and from shared systems may be addressed with the last operating 
unit at a nuclear plant. Licensees under proposed part 57 would not be 
subject to the 60-year decommissioning requirement in Sec.  50.82(a)(3) 
but would be required to complete decommissioning without significant 
delay. The decommissioning schedules would be approved by the NRC. The 
proposed framework supports a graded approach to decommissioning, 
tailored to the specific site, design, operational characteristics, and 
radiological conditions.
    Proposed Sec.  57.305(c)(1) would describe the decommissioning 
trust fund requirements and would be equivalent to Sec.  
50.82(a)(8)(i). Proposed Sec.  57.305(c)(2)-(3) would describe the 
decommissioning cost estimate annual update requirements and would be 
equivalent to Sec.  50.82(a)(8)(v)-(vi), respectively.
    Proposed Sec.  57.305(d) would prohibit certain decommissioning 
activities and would be equivalent to Sec.  50.82(a)(6).
    Proposed Sec.  57.305(e) would specify that the entire nuclear 
plant must be decommissioned before the final operating license for a 
reactor at the site could be terminated.
3. Termination of License
    Proposed Sec.  57.305(f) would identify the license termination 
requirements as those in Sec.  50.82(b). A licensee would be required 
to submit an application for license termination within 2 years 
following permanent cessation of operation. Each application for 
termination of a license would need to be accompanied or preceded by 
the proposed decommissioning plan. The NRC would terminate the license 
under the criteria in Sec.  50.82(b)(6). Proposed Sec.  57.305 would 
allow for site-specific flexibility in the decommissioning plan to 
accommodate various decommissioning strategies for individual reactors 
and nuclear plants at which more than one nuclear reactor operated 
during the lifetime of the plant, including shared operational areas 
and plant systems This approach would ensure that license termination 
could be achieved in a manner that would maintain safety and regulatory 
compliance while addressing the operational and design-specific needs 
of the facility.

I. Subpart H--Maintaining and Revising Licensing Basis Information

    The NRC proposes to establish requirements for the maintenance of 
licensing basis information in proposed subpart H to part 57.
    Proposed Sec.  57.310 would be equivalent to Sec.  50.90, 
``Application for amendment of license, construction permit, or early 
site permit,'' and would require that a licensee submit an application 
to request an amendment to a license. Under proposed part 57, licensees 
would be required to include in their applications an analysis of 
whether the amendment would involve no significant hazards 
consideration, which would be equivalent to the standards in Sec.  
50.92, ``Issuance of amendment.'' Proposed Sec.  57.310(e) would 
reference Sec.  50.91, ``Notice for public comment; State 
consultation,'' for procedures for the Commission to use for notifying 
the public and State of the application requesting an amendment for an 
OL.
    Proposed Sec.  57.312(a) would require a licensee to use Sec.  
50.59 for evaluating changes to an FSAR and determining if an amendment 
to an OL is required to implement a change to a facility or procedures. 
Proposed Sec.  57.312(b) would allow a holder of a part 57 OL that 
authorizes operation of a part 57 manufactured reactor to make changes 
in the facility or procedures as described in the FSAR (as updated) 
without requesting a license amendment if the changes would be the same 
as changes approved by amendment to the ML for the manufactured reactor 
and other conditions specified in proposed Sec.  57.312(b) were met. 
This proposed requirement would prevent license holders and the NRC 
from having to duplicate the amendment process for each manufactured 
reactor.
    Proposed Sec.  57.315, ``Maintenance and submittal of the final 
safety analysis, as updated,'' would provide requirements that would be 
equivalent to Sec.  50.71(e) for submitting periodic FSAR updates. 
Licensees would be required to submit their updated safety analysis 
report every 5 years, equivalent to the timeframe for an NPUF as 
required by Sec.  50.71(e)(3)(iv).
    Proposed Sec.  57.317, ``Updated decommissioning report,'' would be 
similar to current Sec.  50.75(f)(1) and would require a construction 
permit holder to submit an update to the information required by 
proposed Sec.  57.55(i) (i.e., information in the form of a report 
indicating how reasonable assurance will be provided that funds will be 
available to decommission the facility) before the NRC would issue each 
operating license associated with the construction permit. The 
operating license holder would be required to submit subsequent updates 
to the report every three years beginning within three years after 
issuance of the operating license.

J. Subpart I--Transportation Package Design Certification

    Under this rulemaking, the NRC proposes to govern transportation of 
fissile material or irradiated fuel and associated components through 
the provisions of 10 CFR part 71. Part 71 would apply whether the 
fueled microreactor or other transportable reactor with a comparable 
risk profile would be transported as the packaging plus the approved 
contents or only as

[[Page 23654]]

the approved contents in an NRC-certified transportation package.
1. Fueled Reactor as Transportation Package
    A fueled reactor could be designated as the transportation package 
with the loaded fuel (unirradiated, irradiated, or both) and associated 
components as approved contents. To receive a Certificate of Compliance 
(CoC) for a transportation package containing fissile or other 
radioactive material, an applicant must submit an application to the 
NRC and demonstrate that the transportation package design meets the 
requirements of 10 CFR part 71. The requirements of Sec.  71.41(a) 
stipulate that a transportation package be subjected to tests 
prescribed in Sec. Sec.  71.71 and 71.73 in addition to specific Type B 
packages being subject to the provisions of Sec.  71.61. The 
regulations in Sec.  71.41(a) and (c) allow the NRC to approve 
alternatives to the testing requirements provided that those 
alternatives are appropriate for the features being considered and 
provide an equivalent level of safety, respectively.
    The NRC is proposing in Sec.  57.320(a)(1) to provide an option to 
allow the use of a previously endorsed or approved risk methodology or 
other risk-informed approach in lieu of meeting specific prescriptive 
requirements in 10 CFR part 71 if a fueled reactor would be used as the 
transportation package. The NRC endorsed a limited use of a risk-
informed methodology for accident conditions specifically for a 
transportable microreactor (SECY-24-0062, ``Risk-Informed Methodology 
for a Future Transportable TRISO-Based Micro-Reactor Package 
Application''). This endorsed risk methodology is an example of one 
approach developed only for accident conditions that could be modified 
for use as a framework to craft a design certification pathway under 
proposed Sec.  57.320(a)(1). This design certification pathway could be 
used for both normal and accident conditions with appropriate 
justifications, which would allow a package designer to demonstrate the 
transportation package meets or exceeds the current level of safety 
provided by the part 71 framework.
2. Fueled Reactor as Approved Contents
    The NRC proposes two optional considerations for a licensee with 
respect to transporting a fueled reactor designated only as approved 
contents: (1) design a new transportation package identifying the 
fueled reactor as approved contents and submit an application for 
review to the NRC for a new part 71 CoC or (2) use an existing 
transportation package design with an amended CoC to allow for the 
fueled reactor be designated as approved contents. The licensee (ML or 
OL) would be designated as the CoC user if they are not responsible for 
design authority of the transportation package and thus are not the CoC 
holder, or they would be designated as the CoC holder if they are the 
responsible design authority and have been issued a CoC by the NRC.

K. Subpart J--Physical Security Requirements

    Proposed subpart J would establish the physical protection program 
requirements for licensees under proposed part 57 and present a graded 
approach to physical protection requirements. If a licensee could meet 
the criterion in proposed Sec.  57.60(a)(8)(v)(A)(3), then the 
requirement to protect against the DBT of radiological sabotage would 
not be applicable. The criterion in proposed Sec.  57.60(a)(8)(v)(A)(3) 
would require a licensee to show that potential consequences resulting 
from a DBT-initiated event would result in offsite doses below the 
values in Sec.  50.34(a)(1)(ii)(D) even if mitigation and recovery 
actions, including any operator action, were unavailable or 
ineffective. Where the criterion is met, the resulting physical 
protection requirements would be those under proposed Sec.  
57.60(a)(8)(v)(A)(1)-(2) for protection of SNM and Category 1 and 
Category 2 radioactive material, if applicable.
    Proposed subpart J would require that an applicant or licensee 
establish a physical security program to protect the reactor against 
the DBT for radiological sabotage to provide reasonable assurance that 
a DBT-initiated event would result in offsite doses below the values in 
Sec.  50.34(a)(1)(ii)(D). The elements of this program would include 
required intrusion detection and assessment, security communications, 
and security response capabilities but would not establish prescriptive 
requirements designed to demonstrate that these elements are met. 
Proposed subpart J would establish a requirement to coordinate with 
local law enforcement and provide sufficient information and training 
to personnel who would be relied upon to interdict and neutralize 
threats up to and including the design basis threat of radiological 
sabotage. Proposed subpart J also would include requirements to 
identify target sets, establish and maintain cybersecurity, insider 
mitigation, and individual and vehicle search programs and develop 
processes to track the performance of the physical protection program.
    Section 170D(a) of the AEA permits the Commission to determine 
which licensed facilities are part of a class of licensed facilities 
for which NRC-conducted force-on-force exercises are appropriate to 
assess the ability of a private security force of a licensed facility 
to defend against any applicable DBT. Due to the characteristics of 
reactors to be licensed under proposed part 57 and the associated 
physical security requirements to protect against radiological 
sabotage, it would not be appropriate to require force-on-force 
exercises to evaluate the performance of these facilities. Therefore, 
reactors licensed under proposed part 57 would not be subject to force-
on-force exercises, but these facilities would still have tailored 
security requirements and oversight consistent with their relatively 
low risk.

L. Subpart K--Categorical Exclusion

    As directed by the Commission in the July 28, 2025, Staff 
Requirements Memorandum for SECY-24-0046, ``Implementation of the 
Fiscal Responsibility Act of 2023 National Environmental Policy Act 
Amendments,'' and in accordance with E.O. 14300 section 5(e), the NRC 
is proposing for inclusion in subpart K of proposed part 57 a 
categorical exclusion from the requirement to prepare an environmental 
assessment or environmental impact statement if an application for an 
NRC action under proposed part 57 demonstrates that the licensed action 
meets the criteria for the categorical exclusion under proposed Sec.  
57.350(b). The licensed action could include the siting of multiple 
reactors across a region or at one site, and not just a single 
microreactor or other reactor with comparable risk profile. For the 
reasons described below, the proposed rule includes a determination in 
Sec.  57.350(a) that the criteria in Sec.  57.350(b) describe a 
category of actions that do not individually or cumulatively have a 
significant effect on the human environment as required by 10 CFR 
51.22. If the licensed action does not meet the criteria for the 
categorical exclusion under proposed Sec.  57.350(b), then the 
application would need to include an environmental report in accordance 
with part 51.
    The criteria to be met for determining the categorical exclusion 
applies to a proposed action would include proposed reactor 
environmental plant parameter and site parameter envelope values being 
compared to values in Table C-1 of appendix C of part 51.

[[Page 23655]]

These proposed reactor values could be derived from the technical 
information in a joint application for a CP and associated OL under 
proposed subpart C, an ML application under proposed subpart D, or a 
standard design approval application under proposed subpart E. The 
derived values could then be compared to the appropriate microreactor-
designated Category 1 plant and site parameter envelope values in 
NUREG-2249, ``Generic Environmental Impact Statement for Licensing of 
New Nuclear Reactors,'' codified in Table C-1 of appendix C of part 51 
for demonstrating the appropriateness of a categorical exclusion. In 
NUREG-2249, the NRC addresses the impacts of building and operating new 
nuclear reactors anywhere in the United States. NUREG-2249 uses a 
technology-neutral approach that identifies and analyzes environmental 
issues based on plant parameter and site parameter values, common to 
building and operating any nuclear reactor for a limited work 
authorization, early site permit, construction permit, operating 
license, or combined license. Therefore, NUREG-2249 and its findings 
can be applied to microreactors and other reactors with comparable risk 
profiles under proposed part 57. As such, NUREG-2249 and its findings 
can also be applied as the basis for a categorical exclusion for 
Category 1 issues, which are issues that the Commission has determined 
are SMALL at all sites as long as the proposed action is within the 
bound of the relevant values and assumptions in NUREG-2249, and there 
is no new and significant information.
    For instance, all radiological issues within NUREG-2249 are SMALL 
(see Table C-1 in appendix C of 10 CFR part 51). This conclusion is 
based on the Commission's determination, in the 1996 final rule 
amending its license renewal environmental review regulations (61 FR 
66537), that impacts are of small significance if radiological doses to 
individuals and radiological effluent releases do not exceed the 
permissible levels in the Commission's regulations. The AEA requires 
the NRC to promulgate, inspect, and enforce standards that provide an 
adequate level of protection of the public health and safety. Health 
impacts on individual humans are the focus of NRC regulations limiting 
radiological doses. Numerous environmental assessments developed by the 
NRC have concluded no significant impact with respect to human health 
if radiological doses to individuals and radiological effluent releases 
do not exceed the permissible levels in the Commission's regulations. 
Therefore, if radiological doses to individuals and radiological 
effluent releases do not exceed the permissible levels in the 
Commission's regulations, which is the basis of the findings within 
NUREG-2249, the impacts are not significant.
    For those environmental impacts outside of human health, when a 
SMALL impact is concluded in NUREG-2249, the NRC has determined that 
the environmental effects are not detectable or are so minor that they 
will neither destabilize nor noticeably alter any important attribute 
of the resource, and this determination is comparable to a no 
significant impact determination. The practical effect of this 
determination is that actions that fall within the bounds of those 
generic analyses in NUREG-2249 would meet the criteria for a 
categorical exclusion, or the basis for a finding of no significant 
impact if the NRC prepares an environmental assessment.
    This categorical exclusion for this proposed rule does not rely 
upon Category 2 issues in NUREG-2249 because that conclusion is not 
generic across all sites. Instead, this proposed rule includes criteria 
in Sec.  57.350(b) that, if met, ensure the environmental impacts of 
the action would not be significant. The NRC provides guidance in 
Chapter 16 of draft NUREG-2271, ``Guidelines for Preparing and 
Reviewing Applications Under 10 CFR part 57,'' on addressing these 
criteria.
    As such, if an application for a proposed microreactor meets the 
values and assumptions of the plant parameter envelope and site 
parameter envelope for Category 1 issues as defined in NUREG-2249 and 
the specific criteria for all other issues that are described in 
Chapter 16 of draft NUREG-2271, and there is no new and significant 
information that would change these conclusions, then these actions 
related to construction permits and operating licenses for 
microreactors and other reactors with comparable risk profiles do not 
individually or cumulatively have a significant effect on the human 
environment under 10 CFR 51.22.
    The proposed criteria for the categorical exclusion would revolve 
around site-specific considerations that the NRC and other Federal 
agencies have established based on environmentally sensitive resources. 
An environmentally sensitive resource is typically a resource that has 
been identified as needing protection through Executive Order, statute, 
or regulation by Federal, State, or local government, or a Federally-
recognized Indian tribe. The NRC is proposing four such criteria based 
on past NEPA reviews and being informed on how other Federal agencies, 
such as the U.S. Department of Energy (DOE) and the U.S. Department of 
War (DOW), have defined environmentally sensitive resources. The four 
criteria being proposed and the rational for each are as follows:
1. The Site Will Be Within a Previously Disturbed Area as Defined in 
Sec.  57.3
    The NRC would define ``previously disturbed areas'' in proposed 
Sec.  57.3 as areas that have been changed by development of a prior 
facility and remain altered by human activity such that they do not 
provide habitat for ecologically important species, such as those 
protected under the Endangered Species Act, and no longer have the 
potential to yield historic and cultural resources. This definition 
would include the lateral and vertical extent of alteration from 
natural cover to a managed state. This proposed definition is based on 
the definition of ``previously disturbed or developed'' in DOE's NEPA 
implementing regulations under paragraph (g)(1) of Sec.  1021.102, 
``Application of categorical exclusions (categories of actions that 
normally do not require EAs or EISs).''
2. The Cooling System(s) Will Not Require the Use or Consumption of 
Water Withdrawn Directly From Surface Water or Groundwater Sources or 
Discharge to Surface Water or Groundwater Sources
    In NUREG-2249, the NRC identified three water-related issues as 
Category 2 issues, which cannot be evaluated generically and must be 
evaluated on a case-by-case basis using project-specific information. 
Water-based cooling systems discharge waste heat and have the potential 
to affect the water bodies from which water is taken and into which it 
is discharged. If the cooling system of the facility does not result in 
the direct withdraw or discharge of water from surface water or 
groundwater resources degradation of surface water quality and impacts 
to aquatic biota from chemical and thermal discharges are not 
anticipated. The three issues involve (1) surface water quality 
degradation due to chemical and thermal discharges, (2) thermal 
discharge plume impacts on aquatic biota, and (3) other effects of 
cooling-water discharges on aquatic biota. Of specific note regarding 
surface water quality degradation due to chemical and thermal 
discharges, Clean Water Act section 401 on water quality certification 
states that a Federal agency may not issue a license or permit to 
conduct any activity, including

[[Page 23656]]

construction or operation of facilities, that may result in any 
discharge into navigable waters (i.e., ``waters of the United States'') 
unless the State or authorized Tribe where the discharge would 
originate issues either a Clean Water Act section 401 water quality 
certification or a waiver. The Clean Water Act forbids ``any addition'' 
of any pollutant from ``any point source'' to ``navigable waters'' 
without an appropriate permit from the Environmental Protection Agency 
(EPA), or EPA-delegated permit authority. Water quality certification 
is intended to ensure that the discharge will comply with applicable 
effluent limitations and water quality requirements under the Clean 
Water Act and with any appropriate requirement of State law. The 
Supreme Court of the United States reinforced this in its decision in 
County of Maui v. Hawaii Wildlife Fund, 590 U.S. 165 (2020). The Court 
held that the statute requires a permit when there is a direct 
discharge from a point source into navigable waters. This includes 
industrial and stormwater point-source discharges of pollutants to 
navigable waters of the United States, which, in the case of many 
nuclear power plants, are to surface water bodies. Thus, if a reactor 
under proposed part 57 would not require the use or consumption of 
water for the cooling system and the site would not have significant 
point-source discharges (e.g., stormwater), no project-specific 
information or analysis would be necessary. Therefore, meeting this 
criterion would support a determination that a categorical exclusion 
could be issued. In a similar manner, both DOW and DOE categorical 
exclusions include when environmental effects involving water use and 
quality are items that must be considered (e.g., DOW's ``Cultural and 
natural resources'' categorical exclusion in its ``National 
Environmental Policy Act Implementing Procedures,'' appendix A, 
``Department of Defense Categorical Exclusions (CATEX),'' paragraph 
I.(c)1., and DOE's ``Drop-in Hydroelectric Systems'' categorical 
exclusion in 10 CFR part 1021, ``National Environmental Policy Act 
Implementing Procedures,'' appendix B, ``Categorical Exclusions 
Applicable to Specific Agency Actions,'' paragraph B5.24).
3. Air Emissions Will Be Below de Minimis Threshold Levels in 40 CFR 
93.153(b)(1) or (b)(2), as Applicable
    The Clean Air Act, as implemented in EPA's enabling regulations, 
set de minimis threshold levels for air quality in areas defined as 
non-attainment and maintenance areas under 40 CFR 93.153(b)(1) for non-
attainment areas and 40 CFR 93.153(b)(2) for maintenance areas. This 
criterion on air emissions would be consistent with categorical 
exclusion criteria in other Federal agencies such as the DOW and DOE 
where all airborne emissions must be in compliance with existing 
applicable Federal, State, and local laws and regulations (e.g., 
paragraph III.16. of appendix A in DOW's NEPA Implementing Procedures) 
or would not cause a significant increase in the quantity or rate of 
air emissions (e.g., DOE's ``Projects to Reduce Emissions and Waste 
Generation'' categorical exclusion in 10 CFR part 1021, appendix B, 
paragraph B3.9).
4. The Licensed Activity Will Be in Accordance With Applicable State 
and Local Requirements (Such as Land Use Planning, Zoning Requirements, 
and Coastal Zone Management Program Requirements Under the Coastal Zone 
Management Act) in the Proposed Site or Region
    Any commercial construction activity may have to satisfy local land 
use planning and zoning requirements as enacted in ordnances outside of 
the NRC's licensing actions. Government ordnances could include 
radiological liquid effluent discharge restrictions, and land use 
planning and zoning requirements. Some States may also have their own 
environmental regulations similar to the Federal government's NEPA 
(e.g., the State of Washington's State Environmental Policy Act 
(https://ecology.wa.gov/regulations-permits/sepa/environmental-review/sepa-guidance/basic-overview)). This categorical exclusion criterion 
would be similar to the criterion in DOW and DOE categorical 
exclusions. For example, DOW applies the following criterion under a 
Missile Defense Agency categorical exclusion in paragraph VI.18.a of 
appendix A in its NEPA Implementing Procedures for new construction or 
equipment installation: ``The structure and proposed use are compatible 
with applicable Federal, tribal, state, and local planning and zoning 
standards.'' DOE states in many of their categorical exclusions that 
``[c]overed actions would be in accordance with applicable requirements 
(such as local land use and zoning requirements) in the proposed 
project area'' (e.g., DOE's ``Small-Scale Renewable Energy Research and 
Development and Pilot Projects'' categorical exclusion in 10 CFR part 
1021, appendix B, paragraph B5.15). Thus, the construction and 
operation of microreactors or other reactors with comparable risk 
profiles would also need to be in accordance with applicable State and 
local requirements in the proposed site or region.
    Separately, in response to E.O. 14300, section 5(c), the NRC is 
reexamining the NRC's NEPA implementing regulations in 10 CFR part 51.

M. Subpart L--Inspections

    Proposed Sec.  57.355, ``Unfettered access for inspections,'' would 
establish requirements for the provision of facilities and unfettered 
access for inspections. These requirements would be equivalent to Sec.  
50.70, ``Inspections,'' with only minor changes proposed to provide 
additional flexibilities and address possible differences related to 
reactors licensed under proposed part 57. Proposed Sec.  57.355 also 
would address inspections for transportation of radioactive material, 
storage of nuclear fuel and radioactive waste and would be equivalent 
to Sec. Sec.  71.93, ``Inspection and tests,'' 72.82, ``Inspections and 
tests,'' and 70.55, ``Inspections,'' respectively.

N. Subpart M--Material Control and Accounting

    The NRC would include regulations for material control and 
accounting specific to microreactors and other reactors with comparable 
risk profiles because the provisions in 10 CFR part 74, ``Material 
Control and Accounting of Special Nuclear Material,'' do not explicitly 
provide these requirements. The proposed material control and 
accounting requirements in proposed Sec.  57.360, ``Material control 
and accounting,'' would be equivalent to the requirements of part 74, 
subpart B, ``General Reporting and Recordkeeping Requirements,'' which 
is applicable to all holders of SNM. Microreactors and other reactors 
with comparable risk profiles would not be required to meet the other 
requirements in part 74 (except enforcement), the general performance 
objectives and system capabilities, because those requirements were 
written principally for fabrication and enrichment facilities.
    The NRC proposes to employ a risk-informed approach, so the 
material control and accounting for a microreactor or reactor with 
comparable risk profile would be equivalent to the measures at a large 
LWR, recognizing that the total amounts of material would differ. For 
the use of high assay low enriched uranium (HALEU) at microreactors or 
other reactors with comparable risk profiles, the frequency of physical 
inventory would not be greater than 6 months for licensees of 
facilities without personnel on site.

[[Page 23657]]

Otherwise, licensees of facilities under proposed part 57 would be 
subject to the controls under part 74, subpart B. The increase in 
periodicity of the physical inventory from the 12 month subpart B 
requirement would provide additional assurance that this higher 
enriched material has not been diverted or lost. For these reactors 
that will use fuel that is not in item form, equivalent measures to the 
material control and accounting under subpart B would be used, but not 
the full set of measures used at a fabrication or enrichment facility.
    The Nuclear Material Management and Safeguards System provisions, 
as described in part 74, subpart B, would be applicable to proposed 
part 57 licensees, especially for reporting operation location as the 
nuclear reactors move across geographic locations. These licensees 
would follow the reporting requirements for nuclear material 
transaction reports and material balance reports, as required in part 
74, subpart B and submit reports consistent with electronic reporting 
instructions provided in NUREG/BR-0006 and NUREG/BR-0007.

O. Subpart N--[Reserved]

    Subpart N is reserved for future rulemakings in part 57.

P. Subpart O--Enforcement

    Subpart O would contain two provisions, proposed Sec.  57.380, 
``Violations,'' and Sec.  57.385, ``Criminal penalties,'' which would 
be analogous to provisions contained in other parts of 10 CFR chapter I 
that impose requirements on regulated entities. Proposed Sec.  57.380 
would provide notice of the Commission's authority under the AEA to 
obtain injunctions or other court orders for the enumerated violations. 
Proposed Sec.  57.385(a) would provide notice to all persons and 
entities subject to proposed part 57 that they would be subject to 
criminal sanctions for willful violations, attempted violations, or 
conspiracy to violate certain regulations under proposed part 57. 
Criminal sanctions would not apply to the regulations listed in 
proposed Sec.  57.385(b). The regulations for which criminal penalties 
would apply are limited to those that establish either a regulatory 
obligation or prohibition.

Q. Subpart P--Operator Licensing and Human Factors

    Proposed subpart P of part 57 would include provisions to address 
staffing, training, personnel qualifications, and human factors 
engineering (HFE) requirements that would be applicable to the 
operation of microreactors or other facilities with comparable risk 
profiles. These requirements would be adapted from portions of 
Sec. Sec.  50.34(f) and 50.54, ``Conditions of licenses,'' and 10 CFR 
part 55, ``Operators' Licenses,'' with considerable modification to 
reflect the expected reduced role of personnel in preventing and 
mitigating events and to be consistent with the licensing framework of 
other facilities with comparable risk profiles, like NPUFs. These 
requirements also would serve as a component of the required content of 
joint applications for CPs and associated OLs under proposed part 57. 
The requirements associated with this approach would be in proposed 
Sec. Sec.  57.390, ``Definitions,'' through 57.429, ``Training and 
qualification for non-licensed personnel.'' These sections would be 
divided into four main portions that cover HFE and human interface 
system (HSI) design requirements, generally licensed reactor operator 
(GLRO) requirements, operator and senior operator requirements, and 
training requirements for other nuclear plant personnel.
    Proposed Sec.  57.390 would define specific terms. Some definitions 
would draw from those in Sec.  55.4, ``Definitions.'' The NRC would 
introduce five new definitions for use within the context of proposed 
subpart P. These new definitions would be the following: ``Auxiliary 
operator,'' ``Generally licensed reactor operator,'' ``Load 
following,'' ``Operator-dependent facility,'' and ``Operator-
independent facility.''
    To establish uniform conditions for the licensing operators, the 
NRC proposes two classes of nuclear power plants in Sec.  57.391(a). An 
``operator-dependent facility'' is the classification for a nuclear 
plant whose design demonstrates that operator actions are required to 
maintain the nuclear plant within the dose criterion of proposed Sec.  
57.25(a); the NRC would require the specific licensing of operators and 
senior operators to manipulate the controls and direct the licensed 
activities of operators at this class of nuclear plant under proposed 
Sec.  57.420. This concept would be like provisions for operators and 
senior operators at ``interaction-dependent-mitigation facilities'' 
introduced in part 53.
    An ``operator-independent facility'' is the classification for a 
nuclear plant whose design demonstrates that no operator actions are 
required to maintain the nuclear plant within the criterion of proposed 
Sec.  57.25(a). A GLRO would be an individual licensed under the 
provisions of proposed Sec.  57.405, ``Generally licensed reactor 
operators,'' to manipulate controls of an operator-independent facility 
licensed under proposed part 57 and to direct the licensed activities 
of GLROs. The concept of general licensing of operators under proposed 
part 57 would be similar to provisions for GLROs introduced in part 53.
    The term ``auxiliary operator'' would mean any individual who would 
operate components of a nuclear plant licensed under proposed part 57 
but would not manipulate controls or direct the manipulation of 
controls of the plant and would not be required to be licensed under 
proposed part 57. This term would distinguish between plant personnel 
that operate the controls of the facility and are therefore required to 
be licensed and those that are not required to be licensed because they 
do not manipulate or direct the manipulation of plant controls. The 
term ``load following'' would describe a nuclear plant automatically 
changing its output to match expected demand in response to externally 
originated instructions or signals.
    Certain routine communications are necessary to facilitate the 
operator licensing process. The NRC would adapt the requirements of 
Sec. Sec.  55.5, ``Communications,'' and 50.74, ``Notification of 
change in operator or senior operator status,'' in proposed Sec.  
57.392, ``Communications,'' to accomplish this.
    Specific information must be collected to facilitate the initial 
issuance of operator licenses, as well as to allow for license renewals 
and required updates thereafter. Such information collection activities 
must also be approved by the OMB. The NRC would adapt the requirements 
of Sec.  55.8, ``Information collection requirements; OMB approval,'' 
to include any needed updates in OMB approval information in proposed 
Sec.  57.8 to accomplish this.
    The information used within the regulatory processes of the NRC 
must be free from omissions and inaccuracies to facilitate effective 
regulation. Consistent with this, the NRC would adapt the requirements 
of Sec.  55.9, ``Completeness and accuracy of information,'' in 
proposed Sec.  57.393, ``Completeness and accuracy of information,'' to 
require the completeness and accuracy of material information provided 
by individual applicants and license holders.
    Proposed Sec.  57.395, ``Human factors engineering requirements,'' 
would contain the HFE requirements for applicants for or holders of an 
OL under proposed part 57. Proposed Sec.  57.395(a) would contain the 
human-system interface design requirements. Human-system interfaces 
provide vital information to plant operations staff

[[Page 23658]]

across a spectrum of operating conditions that can range from normal 
operations through accident conditions. The specific types of 
information that must be available to support operations staff during 
such conditions would include, in part, those associated with safety 
function parameters, safety system status, possible core damage states, 
barrier integrity, and radioactive leakage. Due to the importance of 
such information, the NRC would require, under proposed Sec.  
57.395(a), specific human-system interface design features for all part 
57 facilities. Therefore, the NRC would adapt the following post-Three 
Mile Island requirements of Sec.  50.34(f) in a technology-inclusive 
manner:
     Sec.  50.34(f)(2)(iv) would become proposed Sec.  
57.395(a)(1).
     Sec.  50.34(f)(2)(v) would become proposed Sec.  
57.395(a)(2).
     Sec.  50.34(f)(2)(xi), 50.34(f)(2)(xii), and 
50.34(f)(2)(xxi) would become proposed Sec.  57.395(a)(3).
     Sec.  50.34(f)(2)(xvii), 50.34(f)(2)(xviii), 
50.34(f)(2)(xix), and 50.34(f)(2)(xxiv) would become proposed Sec.  
57.395(a)(4).
     Sec.  50.34(f)(2)(xxvi) would become proposed Sec.  
57.395(a)(5).
     Sec.  50.34(f)(2)(xxvii) would become proposed Sec.  
57.395(a)(6).
     Sec.  50.34(f)(2)(iii) would become the proposed Sec.  
57.395(d) and would only be applicable to locations where operator 
actions are required to maintain the reactor within the criterion of 
proposed Sec.  57.25(a) or locations where a credible operator or 
maintenance error could result in exceeding that criterion.
    In addition to the requirements of proposed Sec.  57.395(a)(1) 
through (6), the human-system interfaces and operator capabilities 
listed in proposed Sec.  57.395(a)(7)(i)-(iv) would be required to 
allow GLROs, operators, and senior operators to evaluate plant 
conditions and respond appropriately in the event of an emergency. This 
would also include the ability to immediately initiate a manual reactor 
shutdown. Operating experience provides an important source of 
information by which to inform various aspects of facility design and 
operations. Accordingly, the NRC would adopt in proposed Sec.  
57.395(b) the requirements of Sec.  50.34(f)(3)(i) for requiring an 
operating experience program.
    The NRC recognizes that the licensed operator staffing requirements 
of Sec.  50.54(k) and (m) are prescriptive and in most cases would not 
be appropriate for the staffing needs of microreactors and other 
reactors with comparable risk profiles. Therefore, proposed Sec.  
57.395(c) would allow a performance-based means to determine staffing 
levels for proposed part 57 facilities. The staffing plan would need to 
be supported by HFE analyses and assessments and approved by the NRC. 
Once the appropriate facility staffing plan has been determined and 
approved by the NRC, the staffing level would need to be maintained to 
ensure that appropriately qualified individuals would be available when 
needed to support the safe operation of the facility. Therefore, the 
NRC would require under proposed Sec.  57.399(a) that the staffing 
described within the approved facility staffing plan be maintained as a 
condition of the facility license. Under proposed Sec.  57.395(c), the 
staffing plan would be part of the OL and, thus, a license amendment 
would be required for any subsequent changes to the plan.
    Due to the unique authorities and responsibilities of nuclear power 
plant operators, it would be essential that any individual fulfilling 
such a role demonstrate compliance with the regulatory requirements for 
operator licensing. Section 107 of the AEA authorizes the Commission to 
prescribe conditions for the licensing of operators and to issue 
licenses consistent with those conditions. The NRC would adapt the 
requirements of Sec.  55.3, ``License requirements,'' in proposed Sec.  
57.398, ``Operator license requirements,'' to require that any person 
performing the function of a GLRO, operator, or senior operator be 
authorized by a license issued by the Commission.
    The NRC proposes to license individuals to operate proposed part 57 
facilities under a general licensing framework or a specific licensing 
framework depending on the licensed operators' role in reactor safety. 
The GLRO framework would only be applicable to proposed part 57 
facilities that do not require operator actions to maintain the reactor 
within the criterion of proposed Sec.  57.25(a), or operator-
independent facilities, as required by proposed Sec.  57.405(a), 
``Applicability.'' If one or more operator actions are required to 
maintain the reactor within the criterion of proposed Sec.  57.25(a), 
then the specific licensing framework for operators at operator-
dependent facilities and the requirements in proposed Sec. Sec.  57.420 
through 57.427, ``Expiration of operator and senior operator 
licenses,'' would apply.
    GLROs would perform duties under the provisions of a general 
license that would be effective without the filing of an application 
with the Commission or the issuance of licensing documents to a 
particular person. The NRC proposes requirements for the general 
licensing process for GLROs under proposed Sec.  57.400 through Sec.  
57.415. The requirements for GLROs would parallel those for senior 
operators under part 55 regarding their comparable administrative 
responsibilities. However, operator licensing for GLROs would have 
fewer requirements compared to the requirements for specifically 
licensed operators under part 55 due to the GLROs not having to execute 
operator actions to maintain the reactor within the criterion of 
proposed Sec.  57.25(a) and unique safety attributes of microreactors 
and other reactors with comparable risk profiles.
    In order to use GLROs to operate the controls of a proposed part 57 
facility, an OL applicant would need to demonstrate that it would 
comply with the following requirements on an ongoing basis: maintain 
GLRO qualifications for the performance of important functions and 
tasks; incorporate relevant programmatic controls into technical 
specifications; administer the related programs for training, 
examination, and proficiency; and ensure that the relevant provisions 
of part 26 would be met. Additionally, to provide for an accurate 
accounting of what individuals would be licensed under the general 
license, facility licensees would be required to report the identities 
of all generally licensed reactor operators to the NRC on an annual 
basis. Proposed Sec.  57.400(a) through (f) would establish 
requirements for facility licensees that address these topics and 
others.
    Under the AEA, the NRC is required to license any individuals who 
manipulate the controls of a utilization or production facility. 
Because the operation of facility controls would directly affect 
reactivity or power level of the reactor, only those individuals who 
possess appropriate levels of qualification and authorization would be 
permitted to operate those controls. The NRC would adapt the 
requirements of Sec.  50.54(i) in proposed Sec.  57.399(b) to require 
that only GLROs, operators, and senior operators may operate facility 
controls, with allowance for specified exceptions for the purposes of 
operator training or proficiency.
    Proposed Sec.  57.399(c) would require that a GLRO, operator, or 
senior operator monitor plant conditions during the manipulation of 
apparatus and mechanisms, other than controls, that could affect the 
reactivity or power level of the reactor.
    Load following occurs when plant output automatically changes in 
response to externally originated instructions or signals and is not 
permitted under the existing regulations of Sec.  50.54. However, new 
technological considerations and concepts of

[[Page 23659]]

operation may justify such an operational approach under appropriate 
circumstances. The NRC recognizes that, beyond electrical power 
generation, load following may also affect other applications of plant 
output, such as hydrogen production, desalination, or district heating. 
For load following to be permissible, measures must be in place to 
provide assurance that plant output considerations are not permitted to 
lead to challenges to safe reactor operations. These measures may 
consist of automated control systems, automatic protective features, or 
the continuous oversight and immediate intervention capability of an 
appropriately qualified and authorized individual. Proposed Sec.  
57.399(d) would allow for load following, provided that appropriate 
measures in proposed Sec.  57.399(d)(1) were in place.
    Core alterations such as refueling are associated with specific 
considerations that warrant limiting the oversight of such operations 
to appropriately qualified and authorized individuals. Unlike other 
types of fuel handling operations, core alterations occur within the 
confines of a reactor vessel that is specifically designed to support 
and sustain nuclear criticality, thereby justifying the imposition of 
higher qualification levels within such contexts. The NRC would adapt 
the requirements of Sec.  50.54(m)(2)(iv) in proposed Sec.  57.399(e) 
to require the supervision of core alterations by a GLRO, senior 
operator, or a senior operator limited to fuel handling, as applicable 
to the facility. Because certain reactor designs may be capable of 
refueling while at power and, in any event, overall facility oversight 
would already be required by a GLRO or senior operator, proposed Sec.  
57.399(f) would omit this requirement as redundant during periods where 
core alterations occur while the plant is operating.
    The NRC cannot predict every possible scenario that a nuclear plant 
might potentially encounter. Therefore, it is prudent to grant the 
authority for appropriately qualified individuals to depart from 
facility license conditions when emergency circumstances dictate that 
doing so is in the interest of public health and safety. The NRC would 
adapt the requirements of Sec.  50.54(x) and (y) in proposed Sec.  
57.399(g) and (h) to permit GLROs or senior operators to authorize 
departures from facility license conditions or technical specifications 
when emergency conditions warrant doing so for the protection of the 
public health and safety. While the NRC does not anticipate that GLROs 
will have a role in the fulfillment of safety functions at operator-
independent facilities licensed under part 57 or that operators at such 
facilities would be in a position to significantly influence 
radiological safety outcomes, the very nature of Sec.  50.54(x) and (y) 
and proposed Sec.  57.399(g) and (h) concerns situations that are 
unanticipated and, therefore, unforeseeable. Thus, it is appropriate to 
propose to grant GLROs a comparable authority to that of senior 
licensed operators and certified fuel handlers as it relates to 
invoking this provision under emergency conditions as a means of 
accounting for such possibilities.
    GLROs would be licensed as a class of individuals under the 
provision of proposed Sec.  57.405(a) and would be subject to the 
conditions specified in proposed Sec.  57.405(b)(1) through (8). 
Portions of these conditions are adapted from Sec.  55.53, ``Conditions 
of licenses.'' The NRC would retain the ability to suspend or prohibit 
individuals from operating under the general license should such action 
be warranted.
    The NRC proposes overall programmatic requirements for GLRO 
training, examination, and proficiency in proposed Sec.  57.410, 
``Generally licensed reactor operator training, examination, and 
proficiency programs.'' In general, these proposed requirements would 
be adapted from those of part 55. These requirements would include 
flexibility commensurate with the expected reduced level of operator 
actions at microreactor and other reactors with comparable risk 
profiles. The requirements in proposed Sec.  57.410 would cover, in 
part, the initial training, initial examination, continuing training, 
requalification examination, and proficiency of GLROs. Proposed Sec.  
57.400(b) would require the facility licensee to develop, implement, 
and maintain these programs. Proposed Sec.  57.405(b)(1)-(8), in turn, 
would prescribe that the requirements of proposed Sec.  57.400 would 
need to be met as a requirement of the general license. The implication 
of this structure is that the facility licensee would need to implement 
these programs for training, examination, and proficiency, and GLROs 
would need to participate in these programs to demonstrate compliance 
with the requirements of the general license. The initial training 
process would provide GLROs with the knowledge and abilities needed to 
fulfill assigned duties as GLROs. The use of a systems approach to 
training (SAT)-based training program would serve to ensure that the 
training program is based upon job requirements in a manner that can be 
adapted to account for differences in plant technology and concepts of 
operations. Proposed Sec.  57.410(b) would require facility licensees 
to implement an SAT-based training program for the initial training of 
GLROs that would be adequate to ensure that they have the necessary 
knowledge, skills, and abilities to perform their duties. For 
microreactor and other reactors with comparable risk profiles, such 
programs would not be subject to NRC approval, however the NRC would 
maintain oversight of these licensing programs through inspection.
    Examinations would provide a means of assessing that individuals 
have achieved a degree of knowledge and ability that would be 
sufficient to enable them to carry out assigned duties as GLROs in a 
manner that is both safe and reliable. The NRC would adapt the 
requirements of Sec. Sec.  55.40, ``Implementation,'' 55.41, ``Written 
examination: Operators,'' 55.43, ``Written examination: Senior 
operators,'' and 55.45, ``Operating tests,'' in proposed Sec.  
57.410(b), ``Requirements,'' to require that facility licensees 
establish and implement an initial examination program for GLROs. A key 
difference from the current comparable requirements of part 55 would be 
that facility licensees under proposed part 57 would have the 
flexibility to determine, subject to NRC approval, the examination 
methods and criteria to be used in assessing satisfactory individual 
performance. Such examination programs (including those used within the 
scope of continuing training) would need to provide for acceptable 
levels of both test validity and test reliability in order to be 
considered acceptable. In contrast with requirements for licensing 
examinations in part 55, the NRC would not administer or evaluate these 
initial examinations of GLROs. However, the examination processes would 
continue to be subject to ongoing NRC oversight including subsequent 
review and approval of any substantial changes to approved examination 
programs. The NRC plans to develop guidance to facilitate the review of 
initial examination programs that are proposed by facility licensees.
    Continuing training programs would provide the ongoing training and 
examination of GLROs to ensure that they maintain the knowledge and 
abilities needed to support the safe and reliable performance of job 
duties following the completion of an initial training and examination 
program. The NRC would adapt the requirements of Sec.  55.59, 
``Requalification,'' in proposed Sec.  57.410(b) to require that 
facility licensees implement both an SAT-based continuing training 
program and a requalification examination program.

[[Page 23660]]

However, a notable difference from the examinations required under part 
55 is that under proposed part 57, distinct annual operating test and 
biennial written examination components would not be required. Instead, 
the facility licensee would propose examination methods and criteria to 
be used in assessing satisfactory performance. The NRC plans to develop 
guidance to facilitate the review of the requalification examination 
programs that are proposed by facility licensees.
    For examinations to provide for valid assessments of the knowledge 
and abilities of individuals, the examinations must remain free from 
compromises that could affect their underlying integrity. The NRC would 
adapt the requirements of Sec.  55.49, ``Integrity of examinations and 
tests,'' in proposed Sec.  57.410(d) to require that examinations and 
related activities remain free from any compromise that might affect 
the integrity of the examination process.
    Simulators provide a valuable means of training and evaluating 
plant operators, and the NRC is specifically authorized under section 
306 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10226) to 
establish regulations for the use of simulators within such context. 
The NRC would adapt the requirements of Sec.  55.46, ``Simulation 
facilities,'' in proposed Sec.  57.410(e) to address the use of 
simulation facilities for training and examinations, and experience 
requirements, as well as to address the maintenance of simulator 
fidelity. The use of full scope, plant-referenced simulators would not 
be mandatory. The potential use of alternative simulation facilities 
consisting of, for example, partial scope simulators or the plant 
itself, would be allowed provided that all associated proposed 
requirements were demonstrated to be met using alternative approaches 
and methods.
    There may be situations in which GLROs have previous training and 
experience that justify waiving some or all of the initial examination. 
Therefore, under proposed Sec.  57.410(f), the NRC would allow facility 
licensees to waive some or all portions of initial examinations 
provided that such waivers would be consistent with an examination 
program that has been approved by the NRC.
    For GLROs to safely and reliably perform their assigned duties, 
they would need to perform those duties frequently enough to maintain a 
sufficient degree of proficiency. However, the NRC recognizes that 
facilities that would utilize GLROs may have concepts of operation that 
warrant unique proficiency considerations. Therefore, the NRC would 
require in proposed Sec.  57.410(g) that facility licensees develop, 
implement, and maintain programs to maintain and re-establish, if 
needed, the proficiency of GLROs. This could occur, for example, if an 
individual's extended absence from watch standing rendered proficiency 
requirements unmet.
    The NRC would require under proposed Sec.  57.415, ``Cessation of 
individual applicability,'' that the general license would cease to be 
applicable on an individual basis when the individual would no longer 
be employed in a position that might call for the individual to 
manipulate the reactivity controls of the facility. However, the NRC 
recognizes that for some types of proposed part 57 facilities, very 
long periods may elapse between circumstances that necessitate manual 
manipulation of reactivity controls. Therefore, the general license 
would remain in effect for an individual as long as the individual's 
current position could potentially require that individual to 
manipulate reactivity controls at some point within the course of the 
individual's assigned job duties.
    Specifically licensed operators would differ from GLROs because the 
former would be directly and independently evaluated by the NRC as part 
of their licensing process. This direct and independent evaluation 
would remain appropriate at operator-dependent facilities where 
operators may reasonably be expected to have a role in public health 
and safety outcomes. The NRC would set forth requirements for the use 
of a specific licensing process for licensed operators and senior 
operators under proposed Sec. Sec.  57.420 through 57.427, with Sec.  
57.420 addressing applicability.
    Medical fitness is an important component of the overall process of 
specifically licensing operators because it provides assurance that 
operators will be able to carry out important duties without being 
precluded from doing so by health-related issues. Medical fitness also 
provides assurance that such issues will not adversely affect the 
performance of assigned job duties or cause operational errors that 
endanger public health and safety. In addition to a requirement for 
medical fitness, a medical examination by a physician to confirm 
compliance with this requirement would be necessary. The NRC would 
adapt the requirements of Sec. Sec.  55.21, ``Medical examination,'' 
55.23, ``Certification,'' and 55.27, ``Documentation,'' under proposed 
Sec.  57.421, ``Medical requirements,'' to require medical fitness, 
examinations by physicians, and medical certification for specifically 
licensed operators and senior operators. In recognition of the fact 
that GLROs are not expected to have a role in the fulfillment of safety 
functions at the facilities at which they are licensed, the NRC would 
not extend a comparable medical requirement to GLROs.
    The NRC also would adapt the requirements of Sec. Sec.  55.25, 
``Incapacitation because of disability or illness,'' and 50.74(c) in 
proposed Sec.  57.422, ``Incapacitation because of disability or 
illness,'' to require that timely notifications be made to the NRC if a 
specifically licensed operator or senior operator develops a permanent 
physical or mental condition that adversely affects the performance of 
assigned operator job duties or could cause operational errors 
endangering public health and safety.
    The process of specifically licensing individuals as operators or 
senior operators requires the submittal of applications to the NRC for 
review. These applications must detail certain elements associated with 
licensing, including the demonstration of compliance with examination, 
experience, and medical requirements. The NRC would adapt the 
requirements of current subpart D, ``Applications,'' of part 55 in 
proposed Sec.  57.423, ``Applications for operators and senior 
operators,'' to include requirements for the applications associated 
with the specific licensing of operators and senior operators at 
commercial nuclear plants licensed under proposed part 57.
    The NRC proposes programmatic requirements for specifically 
licensed operator and senior operator training, examination, and 
proficiency in Sec.  57.424, ``Training, examination, and proficiency 
programs.'' In general, the requirements are adapted from those in part 
55, but with flexibility to support diverse reactor technologies and 
concepts of operations. Specifically, the requirements in proposed 
Sec.  57.424 would concern the initial training, initial examination, 
requalification training, requalification examination, and proficiency 
of specifically licensed operators and senior operators.
    The initial training process provides individuals with the 
knowledge and abilities needed to subsequently fulfill assigned duties 
as licensed operators or senior operators in a safe and reliable 
manner. The use of an SAT-based training program would ensure that the 
training program is based upon job requirements in a manner that can be 
adapted to account for differences in plant technology, concepts of 
operations, and operator roles in the

[[Page 23661]]

fulfillment of design-specific safety functions. The NRC would require 
under proposed Sec.  57.424(a)(1) that facility licensees implement an 
SAT-based training program for the initial training of operator and 
senior operator applicants. The program would need to be adequate to 
ensure that applicants will be capable of performing the duties 
necessary to both protect public health and safety and maintain plant 
safety functions. The NRC would also require NRC approval of the 
training program, including the change process, which would state when 
NRC approval is needed for subsequent changes.
    Examinations provide a means of assessing that individuals have 
achieved a level of knowledge and ability that is sufficient to carry 
out assigned duties as specifically licensed operators or senior 
operators in a manner that is safe and reliable. The NRC would adapt 
the requirements of Sec. Sec.  55.40, 55.41, 55.43, and 55.45 in 
proposed Sec.  57.424(b) to require that facilities establish and 
implement an initial examination program. However, a key difference 
from the comparable requirements of part 55 is that facilities would 
have the flexibility to propose, subject to NRC approval, the 
examination methods and the criteria for use in assessing applicant 
performance. Such examination programs (including those used within the 
scope of requalification training) would need to provide for acceptable 
levels of both test validity and test reliability in order to be 
considered acceptable. The NRC intends that guidance would be available 
to facilitate the review of licensing examination programs that are 
proposed by facility licensees and that, following NRC approval, 
initial examination programs will be subject to an appropriate change 
control process. Furthermore, the NRC would allow facility licensees 
the option to administer their own NRC-approved licensing examinations. 
The NRC would continue to exercise appropriate oversight of the 
program, make operator licensing decisions based upon the examination 
results, and reserve the right to administer the examinations in lieu 
of permitting the facility to do so.
    Requalification training programs provide for the continuing 
training and examination of specifically licensed operators and senior 
operators to ensure that they maintain the knowledge and abilities 
needed to support the safe and reliable performance of job duties 
following the completion of an initial training and examination 
program. The NRC would adapt the requirements of Sec.  55.59 in 
proposed Sec.  57.424(c) to require that facilities implement both an 
SAT-based requalification training program and a biennial 
requalification examination program. However, a notable difference from 
the biennial requalification examinations required under part 55 is 
that facility licenses would be able to propose examination methods and 
criteria to be used in assessing satisfactory performance as part of 
their replated programs. The NRC intends that guidance would be 
available to facilitate the review of the requalification examination 
programs that are proposed by facility licensees and that, following 
NRC approval, requalification examination programs would be subject to 
an appropriate change control process.
    For examinations to provide valid assessments of the knowledge and 
abilities of individuals, the examinations must remain free from 
compromises that could affect their underlying integrity. The NRC would 
adapt the requirements of Sec.  55.49 in proposed Sec.  57.424(d) to 
require that examinations and related activities remain free from any 
compromise that might affect the integrity of the examination process.
    Simulators provide a valuable means of training and evaluating 
plant operators, and the NRC is specifically authorized under the 
section 306 of the Nuclear Waste Policy Act of 1982, as amended to 
establish regulations for the use of simulators within such context. 
The NRC would adapt the requirements of Sec.  55.46 in proposed Sec.  
57.424(e) to address the use of simulation facilities for training, 
examinations, and applicant experience requirements, as well as to 
address the maintenance of simulator fidelity. However, the 
requirements of proposed part 57 would not mandate that full scope, 
plant-referenced simulators be used and would allow the use of 
alternative simulation facilities consisting of, for example, partial 
scope simulators or the plant itself, provided that all associated 
requirements can be demonstrated to be met using alternative approaches 
and methods.
    There may be situations in which applicants for operator or senior 
operator licenses have previous training and experience that justify 
reducing some, or all, of the initial examination requirements. The NRC 
would adapt the high-level requirements of Sec.  55.47, ``Waiver of 
examination and test requirements,'' in proposed Sec.  57.424(f), to 
support the evaluation of requests for waivers of examination 
requirements.
    For licensed operators and senior operators to perform their 
assigned duties safely and reliably, it is essential that they perform 
those duties frequently enough to maintain proficiency. The NRC would 
adapt the requirements of Sec.  55.53(e) and (f) in proposed Sec.  
57.424(g) to require that specifically licensed operators and senior 
operators maintain proficiency and, if proficiency is not maintained, 
regain proficiency prior to resuming licensed duties. However, a major 
difference from the part 55 requirements is that the facility licenses 
would propose their own program for operator proficiency, subject to 
NRC approval. Similar to training and examination program changes, 
following NRC approval, proficiency programs would also be subject to 
an appropriate change control process.
    As the holders of specific licenses, licensed operators and senior 
operators would be subject to license conditions on an individual basis 
to ensure that the basis upon which the licenses were issued remains 
valid. The NRC would adapt the requirements of Sec.  55.53 in proposed 
Sec.  57.425, ``Conditions of operator and senior operator licenses,'' 
to require appropriate conditions of licenses for specifically licensed 
operators and senior operators. However, in contrast with the 
requirements of Sec.  55.53(e) and (f), the NRC would allow certain 
aspects of operator proficiency to be addressed by an NRC-approved 
facility proficiency program.
    Licenses for specifically licensed operators and senior operators 
under part 55 are currently issued by the NRC and must remain subject 
to modification or revocation. The NRC would adapt the requirements of 
Sec. Sec.  55.51, ``Issuance of licenses,'' and 55.61, ``Modification 
and revocation of licenses,'' in proposed Sec.  57.426, ``Issuance, 
modification, and revocation of operator and senior operator 
licenses,'' to address the issuance, modification, and revocation of 
licenses issued to specifically licensed operators and senior 
operators.
    Finally, proposed Sec.  57.427 would address conditions that would 
cause licenses issued to specifically licensed operators and senior 
operators to expire.
    Section 306 of the Nuclear Waste Policy Act of 1982 authorizes and 
directs the NRC to, in part, issue regulations and guidance that 
address the training and qualifications of civilian nuclear power plant 
operators, supervisors, technicians, and other appropriate operating 
personnel. The NRC implements this in part 50 through the requirements 
of Sec.  50.120, ``Training and qualification of nuclear power plant 
personnel.'' The NRC would adapt under proposed Sec.  57.429 the 
requirements of Sec.  50.120 for specific categories of nuclear plant 
personnel.

[[Page 23662]]

This list of personnel would be modified from the list of positions in 
Sec.  50.120 to be more applicable to facilities licensed under 
proposed part 57. The NRC would require under proposed Sec.  57.429 
that SAT-based training programs would be established within a 
timeframe based upon when the associated personnel would be needed to 
support facility-specific needs. The training programs would include 
the training and qualification of plant personnel in the general 
categories of supervisors, technicians, and other appropriate operating 
personnel. The category of supervisors would reflect on-shift 
supervisors for the licensed operators, similar to the current 
classification in Sec.  50.120(b)(2)(ii). The facility licensee would 
not be required to seek NRC approval of a training program prior to 
usage. However, the facility licensee would be required to accommodate 
NRC inspection of the training programs.

R. Subpart Q--Reporting and Other Administrative Requirements

    Proposed part 57 would address various reporting and administrative 
requirements in subpart Q.
    Proposed Sec.  57.430, ``Maintenance of records, making of 
reports,'' would require the maintenance of records and the making of 
various reports by the licensee to the NRC. These requirements would be 
largely equivalent to Sec.  50.71(a), (c), and (d).
    Proposed Sec.  57.430(f) would require licensees to notify the NRC 
of successful completion of any startup testing of a nuclear reactor to 
support the assessment of annual fees under 10 CFR part 171, ``Annual 
Fees for Reactor Licenses and Fuel Cycle Licenses and Materials 
Licenses, Including Holders of Certificates of Compliance, 
Registrations, and Quality Assurance Program Approvals and Government 
Agencies Licensed by the NRC.'' The assessment of annual fees normally 
commences upon completion of those testing activities. With respect to 
annual fees, the NRC recently modified its annual fee regulations to 
address differences between the current fleet of large operating 
reactors and potential future smaller reactors. In the Fiscal Year 2023 
final fee rule, the NRC amended its annual fee regulations to (1) be 
technology-inclusive by expanding the applicability of the small 
modular reactor variable fee structure to include non-LWR small modular 
reactors (previously it was limited to LWR small modular reactors); and 
(2) establish an additional minimum fee and variable rate applicable to 
smaller reactors.
    Proposed Sec.  57.435, ``Reporting requirements,'' would establish 
requirements for immediate notifications by licensees under proposed 
part 57. These requirements would be equivalent to Sec.  50.72, 
``Immediate notification requirements for operating nuclear power 
reactors,'' with minor changes proposed to make the reporting criteria 
technology-inclusive and remove the notification of the NRC Operations 
Center using the Emergency Notification System.
    Proposed Sec.  57.440, ``Licensee event report system,'' would 
require each holder of an OL under proposed part 57 to have a licensee 
event report system. These requirements would be equivalent to Sec.  
50.73, ``Licensee event report system,'' with minor changes to remove 
requirements of specific reactor technologies.
    Proposed Sec.  57.445(a) and (b) would require periodic reporting 
of the quantity of radionuclides released to unrestricted areas in 
liquid and gaseous effluents, and doses to members of the public. 
Proposed Sec.  57.445, ``Reports of radiation exposure to members of 
the public,'' would be similar to Sec.  50.36a(a)(2).

VI. Changes to Other Parts of 10 CFR Chapter I

A. Conforming Changes to 10 CFR parts 1, 2, 10, 11, 19, 20, 21, 25, 26, 
30, 40, 50, 51, 70, 72, 73, 74, 75, 95, and 150

    This proposed rule would make conforming changes throughout 10 CFR 
chapter I by adding ``and part 57'' where appropriate to account for 
the addition of the proposed part 57. In addition, this proposed rule 
would revise Sec.  2.340(d) in three places to correct the 
manufacturing license reference from subpart C to subpart F.

B. 10 CFR part 26

1. Introduction

    The NRC proposes to include fitness-for-duty (FFD) requirements for 
microreactors and other reactors with comparable risk profiles. This 
proposed rule would establish a technology-inclusive, risk-informed, 
and performance-based approach for the application of drug and alcohol 
testing and fatigue management requirements for facilities licensed 
under proposed part 57. The proposed rule would add a new subpart P, 
``Fitness-for-Duty Programs for Facilities Licensed Under 10 CFR part 
57,'' in 10 CFR part 26, ``Fitness for Duty Programs,'' and make 
conforming changes to existing part 26 provisions. The proposed rule 
would also provide the option for certain reactors with comparable risk 
profiles to implement an FFD program of their specification (i.e., one 
that is not subject to the requirements of part 26) if they meet 
applicable human reliability criteria.
    The NRC would use operating experience to provide regulatory 
flexibility to proposed part 57 licensees and other entities in the 
part 26 framework to help support a licensee's or other entity's 
response to changes in societal drug use, drug testing technologies and 
processes, and FFD program performance. The flexibility would also help 
in FFD program implementation because of the wide variety of staff 
sizes anticipated at nuclear plants licensed under proposed part 57 and 
the geographically remote locations in which these nuclear plants may 
be sited.
    Licensees and other entities would have the option to implement one 
of three types of FFD programs at their facilities: one that meets all 
the requirements of part 26 except subpart K, ``FFD Program for 
Construction,'' of part 26 and proposed subpart P; one that meets the 
requirements in proposed subpart P; or an FFD program of their 
specification. These requirements would be commensurate with the 
potential radiological consequences of reactors licensed under proposed 
part 57, and the options available to a licensee would be dependent on 
the human reliability considerations associated with the operation of 
their facilities. This risk-informed regulatory strategy would be 
consistent with the current part 26, which provides a comprehensive set 
of deterministic requirements for licensees and other entities at 
facilities that are operating plus a more flexible framework under 
subpart K for nuclear power reactors under construction.
    Proposed subpart P to part 26 would be essentially equivalent to 
the requirements in subpart K as supplemented by select requirements 
from subparts E, ``Collecting Specimens for Testing,'' of part 26, and 
the requirements in subparts A, ``Administrative Provisions,'' I, 
``Managing Fatigue,'' and O, ``Inspection, Violations, and Penalties,'' 
of part 26. These requirements would help deter individuals subject to 
proposed subpart P from drug and/or alcohol use and from being impaired 
from any cause including fatigue. These requirements also would help 
licensees and other entities identify individuals as users of impairing 
substances and demonstrate compliance with Sec.  26.23, ``Performance 
objectives.''
    Proposed subpart P of part 26 would enable a part 57 licensee or 
other entity

[[Page 23663]]

to implement innovative drug testing technologies and behavior 
observation techniques while continuing to demonstrate compliance with 
the part 26 performance objective in Sec.  26.23(b) of providing 
reasonable assurance that individuals are not under the influence of 
any substance or mentally or physically impaired from any cause, which 
in any way adversely affects their ability to safely and competently 
perform assigned duties. These technologies would include drug testing 
of oral fluid, urine, and hair specimens and non-invasive portal area 
screening instruments that would passively test for drugs, alcohol, or 
both. Part of the basis to enable the use of innovative drug and 
alcohol testing technologies, should they become available, is to 
maintain FFD program effectiveness should the staff size at a part 57 
nuclear plant be small and challenge the effective implementation of 
the behavioral observation and drug and alcohol testing programs. Also, 
a proposed part 57 nuclear plant that is sited at a geographically 
remote location could present additional challenges not encountered by 
traditional LWR facilities licensed under part 50 or 52, such as: 
efficiency of postal services for shipping and controlling biological 
specimens; proximity to drug and alcohol collection facilities that are 
reasonably equivalent to that described in subpart E of part 26; 
availability of internet and cellular services to enable same-time 
discussions among the Medical Review Officer (MRO), donor, and 
laboratory; accessibility to substance abuse treatment services 
described in subpart H of part 26; and proximity to an MRO (or 
management and clinical staff) to evaluate potential impairment caused 
by fatigue and/or substance use or abuse, for-cause and post-event 
occurrences, and the individual's potential to return to duty.
    A proposed part 57 nuclear plant that is sited in a geographically 
remote location and has a small staff size may present implementation 
challenges and the potential for small group dynamics that could have 
the potential to impact FFD program effectiveness. For example, 
behavioral observation may be less effective at a plant that has a 
small staff size, which can be subject to greater impacts from 
groupthink and other biasing factors.\3\ As such, alternative 
approaches to behavior observation programs, such as supplementing 
onsite behavior observation activities with video-based observation by 
individuals separate from the onsite work unit, could serve to mitigate 
potential issues by bringing in independent and objective perspectives.
---------------------------------------------------------------------------

    \3\ Groupthink is a psychological phenomenon that can emerge and 
is particularly prevalent among cohesive and insulated groups that 
experience high levels of decisional stress. Groupthink can impact 
individuals' willingness to speak out against practices they deem 
unsafe, for fear of deviating from group norms. Research also 
indicates that groups make riskier decisions than individuals acting 
alone due to the diffusion of responsibility among group members. 
For additional information; see, e.g., Irene W[aelig]r[oslash], 
Ragnar Rosness, and Stine Skaufel Kilska, ``Human performance and 
safety in Arctic environments,'' SINTEF (2018); and see, e.g., 
Mannion and Thompson, ``Systematic biases in group decision-making: 
implications for patient safety,'' International Journal for Quality 
I Health Care, Vol. 26, No. 6 (2014): 606-612.
---------------------------------------------------------------------------

    Additionally, random testing may be less effective when applied to 
small staff sizes, because it may be easier for staff to communicate 
and predict when individuals will be subject to drug and alcohol 
testing. Furthermore, if a facility is sited in a remote location, 
program implementation could be challenged by the following factors: 
limited mail services to laboratories certified by the U.S. Department 
of Health and Human Services (HHS), availability of local clinical or 
medical options for treatment and determinations of fitness by an MRO 
or Substance Abuse Expert, and use of offsite drug and alcohol 
collection facilities.
    The increased potential for small staff sizes to impact FFD policy 
compliance would necessitate additional flexibilities be provided to 
implement various FFD program elements. The NRC would require that 
facilities with small staff sizes that cannot implement random drug and 
alcohol testing without predictability, use a consortium/third-party 
administrator (C/TPA) to include the workers from multiple licensees or 
other entities into a combined random testing pool under Sec.  
26.907(b)(2)(vi). Use of a C/TPA would significantly improve the 
effectiveness of the random testing programs of sites with small worker 
populations and ensure that individuals would not be able to predict 
whether random testing would be conducted in a given period of time. 
Use of C/TPAs is not new in Federally-regulated testing, as the U.S. 
Department of Transportation has employed the use of C/TPAs in specific 
modal administrations, such as the Federal Motor Carrier Safety 
Administration under 49 CFR part 382, ``Controlled Substances and 
Alcohol Use and Testing,'' which, in part, covers independent owner-
operator truck drivers that must be drug and alcohol tested. The U.S. 
Department of Transportation requirements in 49 CFR part 40, 
``Procedures for Transportation Workplace Drug and Alcohol Testing 
Programs'' also enables the use of C/TPAs to perform a variety of 
functions for employers, such operating random testing programs, and 
contracting with specimen collection sites and HHS-certified 
laboratories for services.
    Another flexibility would be proposed Sec.  26.907(g)(2), where the 
NRC would enable the virtual collection of oral fluid specimens for 
drug and alcohol testing at facilities that must use a C/TPA to 
implement random testing under Sec.  26.907(b)(2)(vi). These sites 
would have small staff sizes and could be in remote locations where 
accessing an in-person specimen collector might be difficult, untimely, 
and/or costly. Because all aspects of an oral fluid collection would be 
directly observed by the specimen collector, a video teleconference 
could accomplish many key elements of the collection process. The use 
of video teleconference technology would not be new to the NRC, as some 
clinicians complete other required evaluations, such as performing a 
psychological assessment under the personnel access authorization 
requirements in Sec.  73.56(e)(4) or a determination of fitness 
performed under Sec.  26.189(b) by a Substance Abuse Expert when 
potentially disqualifying FFD information is discovered about an 
individual that is subject to 10 CFR part 26. In addition, existing 
Sec.  26.31(b)(1)(iii) enables the use of a monitor to assist a 
specimen collector in completing aspects of a urine collection when a 
trained collector is not able to complete the activity, and existing 
Sec.  26.109(b)(1) permits a hydration monitor to observe a donor 
during the shy bladder process in lieu of the collector conducting the 
activity. In both cases, the monitor must receive information from the 
collector on his or her responsibilities.
    Also, the NRC would establish a change control requirement to allow 
a licensee or other entity to change its subpart P FFD program while 
ensuring that FFD program effectiveness is maintained.
2. Proposed Changes to Part 26, Subparts A Through E, I, and N
    Proposed Sec.  26.3(d) is the applicability paragraph for 
contractor/vendors (C/Vs) that implement FFD programs or program 
elements, to the extent that the licensees and other entities specified 
in Sec.  26.3(a) through (c) rely on those C/V FFD programs or program 
elements to satisfy the requirements of part 26. Section 26.3(d) would 
be amended to address proposed part 57 licensees and other entities in 
proposed Sec.  26.3(f).

[[Page 23664]]

    Proposed Sec.  26.3(f) would place part 57 licensees or other 
entities within the scope of part 26. For applicants for or holders of 
a CP or OL under proposed part 57, except a holder of an ML, proposed 
Sec.  26.3(f)(1) would require the FFD program to be implemented no 
later than the start of construction activities. Proposed Sec.  
26.3(f)(2) would require the holder of an ML under proposed part 57 to 
implement its FFD program before commencing activities that assemble a 
reactor. All three licensees would have three FFD program options: 
implement all the requirements of part 26 except subparts K and P, the 
requirements in proposed subpart P, or an FFD program of their 
specification. Proposed Sec.  26.3(f)(3) would provide the criteria by 
which licensees and other entities under proposed part 57 could 
implement an FFD program of their specification. That criterion would 
be if the licensee's or other entity's reactor manufactured, 
constructed, or operated under a part 57 license would not require 
operator action to maintain the reactor within the criterion of Sec.  
57.25(a) or a credible operator or maintenance error could not result 
in exceeding that criterion.
    Current Sec.  26.4, ``FFD program applicability to categories of 
individuals,'' describes FFD program applicability to categories of 
individuals. These categories are based on the duties, 
responsibilities, and the types of access an individual may possess. 
The NRC proposes to amend Sec.  26.4 to include licensees and other 
entities described in proposed Sec.  26.3(f). The NRC expects that not 
all categories of individuals described in current Sec.  26.4 would be 
applicable to all proposed part 57 facilities.
    Section 26.4(a) requires individuals who are granted unescorted 
access to nuclear power reactor protected areas by the licensees in 
Sec.  26.3(a) and, as applicable, (c) and perform the duties listed in 
26.4 to be subject to an FFD program that meets all of the requirements 
of part 26, except subpart K. The NRC would amend Sec.  26.4(a) to 
except proposed subpart P as well as subpart K.
    Section 26.4(a)(1) and (a)(4) would be amended to account for the 
possibility that certain individuals may perform or direct the 
performance of operational and maintenance activities from a remote 
facility (for example, a remote control station) for licensees or other 
entities licensed under proposed part 57. The framework of the current 
part 26 does not account for individuals who perform operating and 
maintenance duties at remote facilities. Although current Sec.  
26.4(a)(1) does not limit the operating of applicable SSCs to onsite 
operating, Sec.  26.5, ``Definitions,'' limits the definition of 
``Maintenance,'' for the purposes of Sec.  26.4(a)(4), to include only 
``onsite maintenance activities.'' In the 2008 part 26 final rule 
preamble, the NRC explained that the work hour requirements apply to 
those individuals who perform maintenance activities within the 
licensee's owner-controlled area. Furthermore, regarding the direction 
of applicable operations and maintenance activities, current Sec.  
26.4(a)(1) and (4) address only individuals who perform ``onsite 
direction.''
    Under the proposed amendments to part 26, the limitation of 
``onsite'' activities to those performed within the owner-controlled 
area would still apply to facilities licensed under part 50 or 52. 
However, for licensees and other entities described in proposed Sec.  
26.3(f), the NRC would remove the ``onsite'' limitation to include 
activities performed both within the owner-controlled area as well as 
operations and maintenance duties performed at remote facilities where 
safety-significant systems and components are expected to be operated 
within the design basis of the nuclear plant.
    In the 2008 part 26 final rule, the purpose of limiting 
``directing'' activities to those ``directing'' activities that are 
conducted onsite was to avoid requiring work hour controls for 
individuals performing incidental duties, consistent with Sec.  
26.205(b)(5), from an offsite location in instances where those duties 
might be considered to be ``directive'' in nature. Under the proposed 
amendments to part 26, the exclusion of incidental duties while 
calculating work hours would still be applicable for licensees and 
other entities licensed under proposed part 57. However, for these 
licensees and other entities, beyond instances of incidental duties, 
the direction of operations and maintenance activities associated with 
safety-significant SSCs, when performed at remote facilities, would be 
considered in an equivalent fashion as direction performed at non-
remote facilities, for the purposes of administering work hour 
controls.
    Section 26.4(b) requires individuals who are granted unescorted 
access to nuclear power reactor protected areas by the licensees in 
Sec.  26.3(a) and, as applicable, (c) and who do not perform the duties 
described in Sec.  26.4(a), to be subject to an FFD program that meets 
all of the requirements of part 26, except Sec. Sec.  26.205, ``Work 
hours,'' through 26.209, ``Self-declarations,'' and subpart K. The NRC 
would amend Sec.  26.4(b) to except proposed subpart P as well as 
subpart K. Proposed Sec.  26.4(b) also would include in an FFD program 
individuals who are granted unescorted access to the protected area of 
a facility licensed under proposed part 57 and do not perform or direct 
the performance of the duties described in Sec.  26.4(a). This 
requirement would contribute to the defense in depth regulatory 
framework that helps provide that individuals who have unescorted 
access are fit for duty, trustworthy, and reliable.
    Section 26.4(c) requires individuals who are required by a licensee 
in Sec.  26.3(a) and, as applicable, (c) to physically report to the 
licensee's Technical Support Center or Emergency Operations Facility by 
licensee emergency plans and procedures to be subject to an FFD program 
that meets all of the requirements of part 26, except Sec. Sec.  26.205 
through 26.209 and subpart K. The NRC would amend Sec.  26.4(c) to 
except proposed subpart P as well as subpart K.
    The NRC also would amend Sec.  26.4(c) to include in an FFD program 
individuals who are assigned to physically report to the proposed part 
57 licensee's emergency response facility (or facilities) or 
participate remotely in emergency response activities, and individuals 
without unescorted access to the part 57 facility who, remotely or 
otherwise, make decisions and/or direct actions regarding plant safety 
or security. Proposed part 57 nuclear plants may rely upon offsite 
facilities to fulfill the role of a Technical Support Center or 
Emergency Operations Facility. Therefore, the proposed rule would 
account for such offsite facilities or remotely performed activities. 
Further, the use of personnel to operate systems and components, 
maintain and surveil SSCs, and respond to plant conditions and security 
events may be different than those included in the Technical Support 
Center or Emergency Operations Facility team for power reactors 
currently licensed under part 50 or part 52.
    For the individuals whose duties for the licensees and other 
entities in Sec.  26.3(c) require the individuals to have the types of 
access or perform the activities listed in Sec.  26.4(e)(1) through (6) 
at the location where the nuclear plant will be constructed and 
operated, current Sec.  26.4(e) requires them to be subject to an FFD 
program that satisfies all the requirements of part 26 except subparts 
I and K. The NRC would amend Sec.  26.4(e) to except proposed subpart P 
as well as subparts I and K. The NRC would also amend Sec.  26.4(e) to 
include in an FFD program the individuals whose duties for the

[[Page 23665]]

licensees and other entities in Sec.  26.3(f) require the individuals 
to have the types of access or perform the activities listed in Sec.  
26.4(e)(1) through (6) or perform construction activities as defined in 
Sec.  26.5.
    The proposed rule would amend Sec.  26.4(f) to require individuals 
who construct or direct the construction of safety- or security-related 
SSCs at facilities licensed under proposed part 57 to be subject to an 
FFD program under proposed subpart P of part 26 or an FFD program that 
demonstrates compliance with all the requirements of part 26 except for 
subparts I, K, and P of part 26, unless the licensee or other entity 
meets the criteria in proposed Sec.  26.3(f)(3) and subjects these 
individuals to an FFD program of its own specification.
    Section 26.4(g) is the applicability paragraph for FFD program 
personnel (e.g., the FFD manager, MRO, and technicians) and persons who 
perform access authorization determinations (e.g., the licensee- or 
other entity-designated Reviewing Official). This section would be 
amended to address proposed part 57 licensed facilities. Specifically, 
a proposed part 57 licensee or other entity would use FFD program 
personnel to implement its FFD program as well as other assigned 
individuals who are not involved in the day-to-day operations of the 
program to implement specific elements of its FFD program, such as the 
collection of a specimen for drug or alcohol testing. These individuals 
would be held accountable for program implementation, including 
consistent implementation of protections afforded to all individuals 
subject to the FFD program.
    Section 26.4(h) would be amended to include proposed subpart P of 
part 26 unless the licensee or other entity meets the criteria in 
proposed Sec.  26.3(f)(3) and subjects these individuals to an FFD 
program of its own specification.
    The NRC proposes to include several new definitions in Sec.  26.5 
and amend some existing definitions. The NRC is proposing to add a 
definition for ``Biological marker.'' The proposed definition would be 
consistent with ``Biomarker'' defined by the HHS in its Mandatory 
Guidelines for Federal Workplace Drug Testing (HHS Guidelines) using 
oral fluid as the biological specimen to be tested (84 FR 57554; 
October 25, 2019). However, the proposed definition for Sec.  26.5 
would add that the endogenous substance used to validate that the 
biological specimen ``was produced by the donor'' because subpart P of 
part 26 proposes to have the MRO evaluate any discrepant biological 
marker identified in a biological specimen collected from a donor.
    The NRC is proposing a definition for the word ``Change'' as used 
in proposed Sec.  26.903(c), ``FFD program change control,'' process. 
The proposed definition would be consistent with the definition of 
``Change'' for a part 50 or 52 licensee's emergency plans in Sec.  
50.54(q)(1)(i).
    The NRC is proposing a definition for ``Consortium/third-party 
administrator,'' which would be used in Sec.  26.907(b)(2)(vi), with 
respect to administering the random testing pool and random testing 
selections for licensees and other entities with facilities with small 
staff sizes. A C/TPA also could provide access to, for example, 
services of medical review officers, substance abuse experts, employee 
assistance programs, and HHS-certified laboratories under contract to 
perform drug testing.
    The NRC proposes to revise the definition of ``Constructing or 
construction activities'' to clarify that for licensees or other 
entities in proposed Sec.  26.3(f), the definition of ``Construction'' 
would be that in proposed Sec.  57.3.
    The definitions of ``Contractor/vendor'' (C/V) and ``Other entity'' 
would be revised to make them applicable to proposed part 57 licensees. 
A holder of an ML under part 57 could be a C/V under the proposed C/V 
definition.
    The NRC is proposing a definition for ``Illicit substance'' because 
this phrase would be used in proposed subpart P of part 26 and would 
address substances that cause impairment and possible addiction but 
would not be an ``illegal drug'' as defined in Sec.  26.5. This 
proposal is based on operating experience where individuals have 
admitted to using common household, non-drug substances to achieve a 
high or satisfy an addiction. These common household items include, but 
are not limited to nitrous oxide, butane, propane, glue, paint vapors, 
lighter fluid, nail polish remover, degreasers, permanent markers, and 
methyl alcohol (which is found in hand sanitizer and mouthwash).
    The NRC is proposing a definition for ``Reduction in FFD program 
effectiveness'' because this phrase, similar to the proposed definition 
for ``Change,'' would be used in proposed Sec.  26.903(c). The proposed 
definition is generally consistent with the definition of ``Reduction 
in effectiveness'' provided for emergency plans in Sec.  
50.54(q)(1)(iv).
    The proposed rule would make the current definition of ``Reviewing 
official'' applicable to those licenses and other entities in proposed 
Sec.  26.3(f).
    The current part 26 definition of ``Safety-related structures, 
systems, and components'' would be amended to use the NRC's proposed 
definition in Sec.  57.3 for the part 57 licensees and other entities 
described in proposed Sec.  26.3(d) and (f).
    The NRC would amend the definition of ``Security-related SSCs'' in 
Sec.  26.5 to make it applicable to a licensee or other entity 
described in proposed Sec.  26.3(d) and (f).
    The NRC proposes a definition for ``Special nuclear material'' that 
would refer to the definition in Sec.  70.4, ``Definitions,'' to ensure 
consistency.
    The NRC is proposing a revision of the definition of ``Unit 
outage'' to account for the potential use of nuclear plants for 
purposes other than electricity generation.
    The proposed rule would amend Sec.  26.8, ``Information collection 
requirements: OMB approval,'' to reflect the addition of proposed 
subpart P to part 26.
    Section 26.21, ``Fitness-for-duty program,'' an applicability 
statement for part 26 FFD programs, would be amended to include 
licensees and other entities described in proposed Sec.  26.3(f) that 
choose to implement an FFD program that implements all part 26 
requirements, except those in subparts K and P of part 26, and do not 
implement an FFD program of their own specification if they meet the 
criteria in proposed Sec.  26.3(f)(3).
    The proposed rule would amend Sec.  26.35(c)(3) to include a 
reference to proposed Sec.  26.906(b)(2)(vii), which would ensure that 
licensees and other entities take immediate action upon receiving 
notice from the EAP that an individual's condition or actions pose or 
have posed an immediate hazard to themself or others.
    Section 26.51, ``Applicability,'' would be amended to apply to 
licensees and other entities described in proposed Sec.  26.3(f) that 
elect not to implement the requirements in proposed subpart P of part 
26 for the categories of individuals in Sec.  26.4, and do not 
implement an FFD program of their own specification if they meet the 
criteria in proposed Sec.  26.3(f)(3).
    Section 26.53(e) and (g) through (i), which are general provisions 
for granting and maintaining authorization, would be amended to apply 
to licensees and other entities described in proposed Sec.  26.3(f).
    Section 26.63(d), a suitable inquiry requirement, would be amended 
to apply to licensees and other entities described in proposed Sec.  
26.3(f).

[[Page 23666]]

    Section 26.73, ``Applicability,'' the applicability statement for 
subpart D of part 26, would be amended to apply to licensees and other 
entities described in proposed Sec.  26.3(f) that elect not to 
implement the requirements in proposed subpart P of part 26 for the 
categories of individuals in Sec.  26.4 and do not implement an FFD 
program of their own specification if they meet the criteria in 
proposed Sec.  26.3(f)(3).
    Section 26.81, ``Purpose and applicability,'' the purpose and 
applicability statement for subpart E of part 26, would be amended to 
apply to licensees and other entities described in proposed Sec.  
26.3(f) that elect not to implement the requirements in proposed 
subpart P of part 26 for the categories of individuals in Sec.  26.4 
and do not implement an FFD program of their own specification if they 
meet the criteria in proposed Sec.  26.3(f)(3). The subpart E 
requirements to be implemented are listed in proposed Sec.  
26.907(c)(2)(i) and (c)(2)(ii) and (c)(3).
    The NRC proposes to revise Sec.  26.97(a) and (b) to enable the 
virtual collection of oral fluid specimens for drug and alcohol 
testing, as would be permitted under proposed Sec.  26.907(g)(2). The 
NRC also would amend Sec.  26.97(a) and (b) to update the oral fluid 
specimens collection process requirements.
    Section 26.201, ``Applicability,'' the applicability statement for 
subpart I of part 26, would be amended to apply to licensees and other 
entities described in proposed Sec.  26.3(f). Also, the applicability 
statement would be divided into two paragraphs for clarity.
    The NRC proposes to add Sec.  26.202, ``General provisions for 
facilities licensed under part 57,'' for licensees or other entities 
described in proposed Sec.  26.3(f) that elect to implement the 
requirements in subpart I of part 26 in accordance with proposed Sec.  
26.904, ``FFD program requirements.'' Proposed Sec.  26.202 would 
establish requirements equivalent to those in current Sec.  26.203, 
``General provisions,'' which is applicable to part 50 and 52 
licensees. The NRC would add the separate Sec.  26.202 because Sec.  
26.203 would refer to various requirements under subpart B of part 26, 
which would not be applicable to facilities licensed under proposed 
part 57 that implement proposed subpart P of part 26.
    Additionally, proposed Sec.  26.202(c), ``Training and 
assessments,'' unlike current Sec.  26.203(c), ``Training and 
examinations,'' would not include a comprehensive examination 
requirement because trainee assessment is conducted as part of an SAT 
that would be required as proposed under the FFD program training 
requirements in proposed Sec.  26.908, ``FFD program training.''
    Proposed changes in Sec. Sec.  26.205, 26.207, ``Waivers and 
exceptions,'' and 26.211, ``Fatigue assessment,'' would add references 
to new requirements in subparts I and P of part 26 that would be 
applicable specifically to licensees and other entities in proposed 
Sec.  26.3(f). The NRC would not change the specific provisions for 
work hour requirements in current Sec.  26.205(d).
    Proposed changes to Sec. Sec.  26.207(a)(1)(ii) and 26.211(b) would 
allow licensees and other entities in proposed Sec.  26.3(f) to perform 
face-to-face assessments to support the approval of work hour control 
waivers and the conduct of fatigue assessments, respectively, using 
electronic communications. These proposals would allow supervisors to 
conduct such assessments from a remote location under appropriate 
circumstances. Such remotely conducted assessments would need to be 
supported by someone who is present in-person with the individual being 
assessed and who is trained in accordance with the requirements of 
either Sec.  26.29, ``Training,'' and Sec.  26.203(c) or proposed Sec.  
26.908 and Sec.  26.202(c). The reasoning for these proposals and the 
associated need for in-person support to augment electronic 
communications is addressed further in the preamble discussion of 
proposed Sec.  26.919, ``Suitability and fitness determinations.''
    Proposed Sec.  26.709, ``Applicability,'' would make the 
recordkeeping and reporting requirements in subpart N, ``Recordkeeping 
and Reporting Requirements,'' of part 26 applicable to licensees and 
other entities of facilities licensed under proposed part 57 that elect 
not to implement the requirements in proposed subpart P of part 26 and 
do not implement an FFD program of their own specification if they meet 
the criteria in proposed Sec.  26.3(f)(3).
    Proposed Sec.  26.711(c) and (d) would be amended to make these 
requirements applicable to licensees or other entities described in 
proposed Sec.  26.3(f). Section 26.711(c) provides protection to 
individuals subject to part 26 by enabling an individual's right to 
review FFD-related information and correct any inaccurate or incomplete 
information. Section 26.711(d) requires, in part, that any FFD-related 
information shared with other licensees or other entities is correct 
and complete.
3. Proposed Requirements for Part 26, Subpart P
    The proposed rule would add a new subpart P to part 26 that would 
provide alternative FFD requirements for licensees and other entities 
licensed under proposed part 57.
    Proposed Sec.  26.901, ``Applicability,'' would make subpart P of 
part 26 applicable to part 57 licensees and other entities, at their 
discretion. As provided for in proposed Sec.  26.3(f), a part 57 
licensee or other entity that does not elect to implement an FFD 
program that demonstrates compliance with the requirements of proposed 
subpart P must implement an FFD program that demonstrates compliance 
with all part 26 requirements, except for those requirements in 
subparts K and P, or an FFD program of their specification if they meet 
the criteria in proposed Sec.  26.3(f)(3).
    Proposed Sec.  26.903(a), ``FFD program description,'' would 
require a proposed part 57 applicant to include a description of its 
FFD program in its FSAR, required by proposed subparts C and D of part 
57. Unlike an application for a license, a description of an FFD 
program would not receive NRC review for possible approval. The 
applicant would provide the NRC with information about the applicant's 
proposed FFD program to inform the NRC's inspection program and to 
demonstrate that the FFD program would be effectively implemented 
before a licensee or other entity commences any activity making 
individuals at the NRC-licensed facility subject to the FFD program.
    Proposed Sec.  26.903(a)(1) would require a discussion that informs 
the NRC of the applicability of the applicant's FFD program to 
individuals as specified in Sec.  26.4. This description should 
summarize any key differences between the staff at the site and any 
remote facility and the categories of individuals in Sec.  26.4. The 
principal purpose of providing this description would be to inform the 
NRC of any substantial differences in the applicability of the FFD 
program to the categories of individuals in Sec.  26.4. Proposed Sec.  
26.903(a)(1) would also require the FFD program description to describe 
how the program would be implemented at a facility authorized to 
assemble or perform non-operational testing of a manufactured reactor 
under an ML issued under proposed part 57, if applicable.
    Proposed Sec.  26.903(a)(2) would require a description of the drug 
and alcohol testing and fitness determination process to be implemented 
through the licensee's or other entity's procedures, including the 
collection and testing facilities to be used, biological specimens to 
be collected and tested, and sanctions to be imposed for FFD policy 
violations. This process would

[[Page 23667]]

include how individuals who test positive for a drug or alcohol would 
be evaluated before being afforded unescorted access to the protected 
area to perform or direct those duties or responsibilities making them 
subject to the FFD program.
    Proposed Sec.  26.903(b), ``FFD program implementation and 
availability,'' would establish the longevity of the FFD program. 
Unlike the current part 26 regulations, Sec.  26.903(b) would state 
that an FFD program is not applicable during decommissioning under 
proposed part 57. Proposed Sec.  26.903(b) would require the holder of 
a manufacturing license under proposed part 57 to maintain its FFD 
program until expiration of the manufacturing license.
    In proposed Sec.  26.903(c), ``FFD program change control,'' the 
NRC proposes a change control requirement for subpart P of part 26 FFD 
programs. Licensees and other entities would be required to demonstrate 
compliance with certain requirements before implementing changes to 
their FFD programs. Change control would rely on the licensee or other 
entity maintaining its procedures in a manner that details how its FFD 
program is to be implemented while incorporating changes, with 
documentation that justifies the changes to support audits and NRC 
inspection.
    Proposed Sec.  26.903(c)(1) would permit the licensee or other 
entity to implement changes to its FFD program if the licensee or other 
entity performs and retains an analysis demonstrating that the changes 
do not reduce the effectiveness of the FFD program or the changes were 
necessitated or justified by a change to part 26, laboratory processes, 
or guidance issued by the HHS or NRC. The change control requirement 
would enable flexibility in program implementation should the NRC or 
HHS change its drug testing procedures (as implemented by the licensee 
or other entity through its procedures) in response to changes in 
societal substance abuse or drug testing technologies.
    Proposed Sec.  26.903(c)(2) would require that if a change reduces 
FFD program effectiveness, then the licensee or other entity must 
implement a mitigating strategy so the FFD program, as revised, would 
continue to demonstrate compliance with the performance objectives in 
Sec.  26.23 and not result in a reduction in program effectiveness.
    Proposed Sec.  26.903(c)(3) would prohibit the use of the change 
control process to reduce the minimum panel of drugs to be tested and 
would reference the drugs listed in proposed Sec.  26.907(c)(1). 
Proposed Sec.  26.907(c)(1) would reference current Sec.  26.31(d)(1), 
which states that, at a minimum, licensees and other entities shall 
test for marijuana metabolite, cocaine metabolite, opioids (codeine, 
morphine, 6-acetylmorphine, hydrocodone, hydromorphone, oxycodone, and 
oxymorphone), amphetamines (amphetamine, methamphetamine, 
methylenedioxymethamphetamine, and methylenedioxyamphetamine), 
phencyclidine, and alcohol. The testing of these drugs and drug 
metabolites and alcohol is necessary for the FFD program to remain 
effective.
    Also, there is no proposed subpart P requirement stating that this 
panel of drugs and drug metabolites needs to consist of only scheduled 
drugs. This flexibility would account for the situation where an 
impairing substance becomes prevalent in society and a licensee or 
other entity elects to add the substance to their panel of substances 
to be tested prior to it being scheduled by the Drug Enforcement 
Administration. Alternatively, if HHS proposes to remove a class of 
drugs from the panel of drugs to be tested that is listed in Sec.  
26.31(d)(1), then a licensee or other entity may not make a similar 
change to its panel of drugs to be tested, because this change would be 
a reduction in FFD program effectiveness even with a mitigative 
strategy implemented.
    Changes in the HHS panel of drugs and drug metabolites to be tested 
could potentially shift from one metabolite to a different metabolite 
for the same drug. Should HHS issue such a change to its panel, this 
would not be expected to result in a reduction in FFD program 
effectiveness because HHS would be targeting a more effective 
metabolite for identifying an existing drug already being tested in its 
panel. This situation could occur as HHS gathers more operating 
experience from Federal government implementation of its HHS 
Guidelines, or data generated by drug testing laboratories and 
Federally mandated drug testing programs required by Federal agencies 
such as the NRC and U.S. Department of Transportation.
    Proposed Sec.  26.903(c)(4) would require that change control 
records be maintained for a 5-year record retention period based on the 
current NRC practice to conduct triennial inspections of licensees' and 
other entities' FFD programs. This would afford the NRC an opportunity 
to review the licensee's or other entity's determination that FFD 
program changes have not reduced the effectiveness of their FFD 
program. Licensees and other entities would also be required to 
summarize each change made under proposed Sec.  26.903(c) in their 
annual FFD performance reports required by proposed Sec.  26.917(b)(2) 
or Sec.  26.717, ``Fitness-for-duty program performance data,'' as 
applicable.
    Proposed Sec.  26.904(a) would provide the timing for when a 
licensee or other entity under proposed part 57 would be required to 
have its subpart P FFD program in place and in effect. The timing of 
proposed Sec.  26.904(a) would be equivalent to that for an LWR 
licensee or other entity that is performing those same activities at a 
facility licensed under part 50 or 52 and would help provide assurance 
that those individuals who assemble, conduct non-operational testing, 
or perform construction activities as defined in Sec.  26.5 or direct 
these activities are fit for duty and trustworthy and reliable. This is 
important because assembly and non-operational testing of a 
manufactured reactor and the construction and testing of SSCs required 
for facility operation require, in part, adherence to procedures, 
possible implementation of unique and precise assembly techniques, and 
QA and controls. Additionally, SSCs within a manufactured reactor may 
not be accessible, testable, or available for quality assurance and 
verification after the reactor is assembled. This requirement also 
would address solo-assembly activities that may cause latent failures 
and passive SSCs located internal to a reactor (for example, a fusible 
link designed to melt at a particular temperature to trigger an 
actuation mechanism) that would be relied upon for safe operation but 
could not be inspected or tested for proper installation, 
configuration, or operation after installation. A proposed subpart P 
FFD program for these types of activities would be equivalent to the 
FFD program applicable to the assembly of the reactor vessel internals 
and testing of the SSCs internal to the reactor at an LWR licensed 
under part 50 or 52.
    The holder of the ML should establish in its procedures when 
reactor assembly commences and what constitutes assembly. For example, 
the FFD program would not need to be implemented for the receipt, 
storage, inspection, and staging of components and systems used to 
assemble (i.e., build or fabricate) the reactor because this is not a 
current requirement for LWR facilities licensed under part 50 or 52. 
Furthermore, the NRC currently does not require that an FFD program be 
applied to the assembly or manufacturing of components (or basic 
components as defined in Sec.  21.3), or systems that were fabricated 
or assembled outside the footprint of a power reactor, and this 
regulatory

[[Page 23668]]

position also would apply to a manufacturing facility.
    Proposed Sec.  26.904(b) would set out the requirements that each 
subpart P FFD program would be required to implement. These 
requirements include FFD program elements similar to those in subpart B 
of part 26, but the proposed new requirements would be less 
prescriptive, enabling more flexibility in program implementation like 
that offered in subpart K of part 26. For example, the requirements in 
subpart B of part 26 are explicit requirements for, in part, the 
collection and testing of urine specimens. Subpart B of part 26 does 
not enable the use of oral fluid for drug testing, except under very 
limited situations as described in subpart E of part 26, or the use of 
hair specimens, unlike proposed subpart P. Proposed subpart P would 
require drug and alcohol testing based on either the requirements in 
part 26 or the HHS Guidelines. The principal benefits of the proposed 
subpart P FFD program would be that it would provide a regulatory 
framework that is consistent with the radiological consequences for 
microreactors and other reactors with comparable risk profiles, and 
would afford flexibilities in the conduct of drug and alcohol testing.
    Proposed Sec.  26.906, ``Written policy and procedures,'' would 
require licensees and other entities to implement and maintain an FFD 
policy and procedures for their FFD programs. Proposed Sec.  
26.906(a)(1) would require each licensee and other entity to provide a 
written FFD policy statement to individuals subject to the FFD program 
before the individuals are subjected to any FFD program drug and 
alcohol test. This would be a protection measure afforded to 
individuals subject to the FFD program to help ensure that they know 
what is expected of them before being subject to the FFD program and 
potential consequences should they violate the FFD policy or 
procedures. This requirement would also contribute to safety and 
security because understanding FFD program responsibilities may enhance 
an individual's safety culture or the individual may self-select out of 
the licensee's or other entity's hiring process.
    Proposed Sec.  26.906(a)(2) would require that the FFD policy 
statement describe the performance objectives in Sec.  26.23, which are 
the same FFD program performance objectives required for facilities 
licensed under part 50, 52, or 70. Having a standard performance 
outcome based on a licensee or other entity satisfying the Sec.  26.23 
performance objectives would enhance consistency in FFD program 
implementation across all entities subject to part 26. It would also 
generate confidence that individuals subject to part 26 will safely and 
competently perform their duties and responsibilities and use NRC-
licensed materials in a manner that will protect the public health and 
safety and common defense and security.
    Proposed Sec.  26.906(a)(3) would require that the FFD policy 
statement describe the licensee's or other entity's implementation of 
the minimum days off requirements in Sec.  26.205(d)(3) or maximum 
average work hours requirements in Sec.  26.205(d)(7).
    Proposed Sec.  26.906(a)(4) would require the FFD policy statement 
be written in sufficient detail to provide affected individuals with 
information on what is expected of them and what consequences may 
result from a lack of adherence to the policy, including those elements 
described in proposed Sec.  26.903(b), part 26-required sanctions, and 
required medical/clinical treatment and follow-up testing for FFD 
policy violations. This requirement would be equivalent to Sec.  
26.403(a) of subpart K but would include an additional description of 
what the policy statement must include. For example, the policy would 
describe the NRC-required sanctions to help deter substance abuse and 
required medical/clinical treatment and follow-up testing for FFD 
policy violations. This provision would provide a protection measure by 
helping the individual get the assistance they need and help ensure 
that the individual refrains from substance abuse.
    Proposed Sec.  26.906(a)(5) would require that the FFD policy 
statement describes the individual's responsibilities to report for 
work in a physiological and psychological condition that enables the 
safe and competent performance of assigned duties and responsibilities 
and to inform a licensee- or other entity-designated representative 
when the individual determines that this cannot be accomplished.
    Proposed Sec.  26.906(a)(6) would require the FFD policy statement 
to prohibit alcohol consumption within at least 5 hours prior to the 
individual's arrival at the licensee's or other entity's facility.
    Proposed Sec.  26.906(a)(7) would require the FFD policy statement 
to convey that abstaining from alcohol for at least 5 hours before any 
scheduled tour of duty is a minimum necessary measure, though it may 
not be sufficient to ensure fitness for duty.
    Proposed Sec.  26.906(b) would require licensees and other entities 
implementing a proposed subpart P FFD program to establish, implement, 
and maintain written procedures for their FFD programs. This 
requirement would be equivalent to that in Sec.  26.403(b) of subpart 
K.
    Proposed Sec.  26.906(b)(1) would establish requirements for a 
proposed subpart P FFD program to have written procedures for the drug 
and alcohol testing program. This provision would be equivalent to the 
requirements in current Sec.  26.403(b)(1) of subpart K, but proposed 
Sec.  26.906(b)(1)(i) through (iv) proposes additional clarity and 
specificity that licensees and other entities would be required to 
detail in their procedures to address new testing methods in proposed 
subpart P that are not permitted under the current part 26 framework. 
Clarity and specificity in procedural instructions would support 
consistent program implementation, which protects all individuals 
subject to the program.
    Proposed Sec.  26.906(b)(1)(iv) would require that if the licensee 
or other entity elects to use the HHS Guidelines for the conduct of 
drug testing, the FFD program procedures must include the name of the 
specific HHS Guideline and revision being implemented by the licensee 
or other entity and a description of the specific sections in the 
guideline that are being implemented, including specimen collections, 
drug testing, laboratory procedures, and evaluation of test results. 
This requirement would help ensure the following: the validity and 
accuracy of drug testing because the specimens would be subject to 
laboratory testing that has been certified by the HHS; protection of 
worker rights equivalent to the privacy, information, and due process 
protections afforded to Federal workers under the HHS Guidelines 
because the HHS Guidelines are used in the Federally mandated drug 
testing programs; consistency in program implementation because all 
individuals subject to the FFD program would be subject to the same 
collection, testing, and evaluation processes; and FFD program 
effectiveness because the effectiveness of the HHS Guidelines have been 
verified by HHS's National Laboratory Certification Program (NLCP). 
Detailed procedures would enhance MRO and FFD program personnel reviews 
of individual test results because instructions would be provided for, 
in part, the evaluation of specific test results (e.g., positive, 
negative, biological markers), the conduct of additional testing for 
invalid or dilute specimens, and the assessment of subversion attempts 
(e.g., adulterated or substituted). This would benefit FFD program 
effectiveness and help prevent

[[Page 23669]]

misunderstanding of program requirements and processes.
    Proposed Sec.  26.906(b)(2) would require licensees and other 
entities to include in their written procedures the immediate and 
follow-up actions that would be taken, and the procedures that would be 
used, in certain situations specified in proposed Sec.  26.906(b)(2)(i) 
through (vi). Proposed Sec.  26.906(b)(2) would be equivalent to the 
requirements in current Sec.  26.403(b)(2), which provides the same 
requirement under an FFD program for construction for part 50 or 52 
licensees and other entities. This would help ensure the effectiveness 
of the FFD program and its consistent implementation, because part 57 
licensees and other entities would be implementing procedures to 
address the same requirements and with individuals who would understand 
what is expected of them no matter what part 57 facility they were 
assigned.
    The situation specified in proposed Sec.  26.906(b)(2)(i) would 
arise when individuals subject to the FFD program have been involved in 
the use, sale, or possession of illegal substances, illegal drugs, or 
illicit substances. This provision would be equivalent to current Sec.  
26.403(b)(2)(i), except that the phrase ``illegal drugs'' would be 
replaced with ``illegal substances, illegal drugs, or illicit 
substances.'' Illegal substances would include legal substances used in 
a manner inconsistent with Federal or State law.
    The situation specified in proposed Sec.  26.906(b)(2)(ii) would 
arise when individuals are impaired by any substance or the consumption 
of alcohol as determined by behavioral observation or a test that 
measures blood alcohol concentration, as defined in Sec.  26.5. Except 
for a few differences, this provision would be equivalent to current 
Sec.  26.403(b)(2)(ii) of subpart K. The NRC would not include the 
phrases ``to excess'' and ``accurately'' in proposed Sec.  
26.906(b)(2)(ii). Proposed subpart P of part 26 would be a performance-
based framework that focuses on impaired human performance, and for 
alcohol, impairment is determined by blood alcohol concentrations 
exceeding the limits in Sec.  26.103, ``Determining a confirmed 
positive test result for alcohol,'' using an evidentiary breath testing 
device (EBT) for alcohol (not whether an individual drank ``to 
excess'').
    The NRC would include the phrase ``illegal substances, illegal 
drugs, and illicit substances'' in proposed Sec.  26.906(b)(2)(ii) 
based on operating experience and the terminology in current Sec.  
26.23(b). There are far more substances that may cause impairment than 
those designated by U.S. Drug Enforcement Administration as controlled 
substances (i.e., those that appear on Schedules I through V of section 
202 of the Controlled Substances Act), and alcohol. The phrase ``before 
or while constructing or directing construction of safety- or security-
related SSCs'' in current Sec.  26.403(b)(2)(ii) is not included in 
proposed Sec.  26.906(b)(2)(ii) because proposed Sec.  26.906 would 
apply during construction and operation. The NRC would include the term 
``behavioral observation'' in proposed Sec.  26.906(b)(2)(ii) because 
impairment can be visibly or audibly observed in an individual, and 
individuals subject to proposed subpart P would be trained in 
behavioral observation under proposed Sec.  26.908.
    The situation specified in proposed Sec.  26.906(b)(2)(iii) would 
arise when individuals attempt to subvert the testing process by 
adulterating or diluting specimens (in vivo or in vitro), substituting 
specimens, or by any other means and would be equivalent to current 
Sec.  26.403(b)(2)(iii). The purpose underlying this proposed 
requirement has increased in significance since the issuance of the 
2008 part 26 final rule because subversion attempts have accounted for 
about one-third of all drug testing violations of the FFD policy every 
year since 2016.
    The situation specified in proposed Sec.  26.906(b)(2)(iv) would 
arise when individuals refuse to provide a specimen for analysis or 
refuse to follow instructions provided by FFD program personnel. Except 
for one difference, this provision would be equivalent to current Sec.  
26.403(b)(2)(iv). The NRC would include the phrase ``or follow the 
instructions provided by FFD program personnel'' based on an existing 
requirement in Sec.  26.89(c) that the collector must inform the donor 
that if the donor refuses to cooperate in the specimen collection 
process, then such refusal will be considered a refusal to test and 
sanctions for subverting the testing process will be imposed.
    The situation specified in proposed Sec.  26.906(b)(2)(v) would 
arise when individuals had legal action taken relating to drug or 
alcohol use. This requirement would be equivalent to current Sec.  
26.403(b)(2)(v).
    The situation specified in proposed Sec.  26.906(b)(2)(vi) would be 
when individuals subject to an FFD program demonstrated character or 
actions indicating that the individual cannot be trusted or relied upon 
to perform those duties and responsibilities or maintain access to NRC-
licensed facilities, SNM, or sensitive information. This includes 
character traits beyond those attributed to drug or alcohol use. This 
proposal would help ensure that the licensee or other entity will 
implement an FFD program designed to demonstrate compliance with the 
Sec.  26.23(c) performance objective that FFD programs must provide 
``reasonable measures for the early detection of individuals who are 
not fit to perform the duties that require them to be subject to the 
FFD program.'' An individual who is not trustworthy and reliable is not 
fit to perform or direct the performance of those duties and 
responsibilities or be afforded those types of access that make the 
individual subject to an FFD program.
    The phrase ``character or actions'' would be used in proposed Sec.  
26.906(b)(2)(vi) to focus on observed examples that indicate an 
individual subject to proposed subpart P may not be fit for duty or 
trustworthy and reliable. Character traits would include but not be 
limited to personality, temperament, honesty, carelessness, apathy, 
psychosis, and commitment to safety culture. Assessment of an 
individual's character should consider the potential for changes in 
these traits when compared to a previous baseline. Actions would 
include a physical or verbal demonstration of a character trait that 
could call into question an individual's fitness, trustworthiness, or 
reliability. For example, the individual does something physically, 
verbally, or in writing (e.g., falsifying records, driving while 
impaired, or harming or threatening to harm oneself, others, or 
property) that compels another individual to conclude that the observed 
individual cannot be trusted or relied upon.
    Unlike the background investigation and reviews of ``character and 
reputation'' in Sec.  73.56(d)(6) and (k)(1)(v), which are principally 
retrospective reviews of an individual and may be based on third-party 
information (i.e., information from individuals not subject to NRC 
requirements), the ``character or action'' focus of proposed Sec.  
26.906(b)(2)(vi) would be a present observation of an individual 
subject to the FFD program and performed by an individual who is also 
subject to the FFD program. Whether the information would be received 
from an individual subject to the FFD program or someone who is not 
subject to the FFD program, the licensee or other entity would need to 
review this information (i.e., determine if the information and its 
source are credible) to determine whether the individual should 
maintain authorization.

[[Page 23670]]

    The situation specified in proposed Sec.  26.906(b)(2)(vii) would 
be when an individual's condition or actions pose or have posed an 
immediate hazard to themself or others, as notified by EAP personnel 
under Sec.  26.35(c)(2).
    Proposed Sec.  26.906(b)(3) would require licensees and other 
entities to address in their procedures the process, including the 
duties and responsibilities of FFD program personnel, to be followed if 
an individual's behavior or condition raises an FFD concern. This 
provision would also require a process to be conducted when credible 
information is received by the licensee or other entity that the 
individual is not fit for duty, trustworthy, and reliable.
    With a few exceptions, proposed Sec.  26.906(b)(3) would be 
equivalent to current Sec.  26.403(b)(3). Instead of the phrase ``while 
constructing or directing the construction of safety- or security-
related SSCs'' in current Sec.  26.403(b)(3), the NRC would use ``on 
the NRC-licensed facility'' in proposed Sec.  26.906(b)(3) because this 
provision would apply during nuclear plant construction and operation 
in addition to holders of an ML as described in proposed Sec.  26.3(f). 
The requirement that the roles and responsibilities of FFD program 
personnel be described was developed from current Sec. Sec.  26.4(g) 
and 26.31(b) and operating experience, which has demonstrated that 
clear job descriptions help ensure that individuals know who is 
designated by the licensee or other entity to make decisions regarding 
FFD program implementation and who can be approached when physiological 
or psychological help is needed. This is principally a protection 
consideration afforded to individuals subject to the FFD program.
    Proposed Sec.  26.906(b)(3) would also include two conditions not 
found in current Sec.  26.403(b) that would clarify the initiation of 
the fitness determination process should an individual's behavior or 
condition raise an FFD concern. The phrase, ``impairment from any cause 
that in any way could adversely affect the individual's ability to 
safely and competently perform the individual's duties,'' would reflect 
the Sec.  26.23(b) performance objective. The condition, ``the receipt 
of credible information indicating that the individual cannot be 
trusted or relied on to perform those duties and responsibilities 
making the individual subject to this part,'' would reflect the Sec.  
26.23(a) performance objective. In either case, as required by Sec.  
26.23(c), the FFD program would have to provide reasonable measures for 
the early detection of individuals who are not fit to perform the 
duties that require them to be subject to the FFD program.
    Proposed Sec.  26.906(b)(4) would require licensees and other 
entities to have written procedures that address the operation and 
oversight of onsite and offsite collection facilities. This requirement 
would be equivalent to current Sec. Sec.  26.403(b) and 26.405(e) and 
is developed from Sec.  26.41(b), which states that each licensee and 
other entity who is subject to subpart B of part 26, shall ensure that 
the entire FFD program is audited, which is part of a licensee's or 
other entity's oversight of the facility, and Sec.  26.87(a), which 
states that each FFD program must have one or more designated 
collection sites that have all necessary personnel, materials, 
equipment, facilities, and supervision to collect specimens for drug 
testing and to perform alcohol testing. Having procedures for the 
operation and oversight of onsite and offsite collection facilities 
would enhance consistency in program implementation, protect 
individuals subject to testing, and account for the flexibilities 
afforded in the types of biological specimens than may be collected 
under an FFD program subject to proposed subpart P of part 26. Proposed 
Sec.  26.906(b)(4), when used with the audit requirement in proposed 
Sec.  26.915, ``Audits,'' would help maintain FFD program effectiveness 
and prevent subversion attempts at facilities that may not be under the 
direct day-to-day oversight of FFD program personnel.
    Proposed Sec.  26.906(b)(5) would require licensees and other 
entities to have written procedures that address the fatigue management 
requirements in proposed Sec.  26.202(b), ``Procedures,'' and either 
Sec.  26.205(d)(3) or (d)(7).
    Proposed Sec.  26.906(b)(6) would require licensees and other 
entities to have written procedures that provide measures to prevent 
subversion of drug and alcohol tests conducted onsite and offsite. This 
proposal was developed from Sec.  26.27(c)(1).
    Proposed Sec.  26.907, ``Drug and alcohol testing,'' would 
establish drug and alcohol testing requirements for licensees and other 
entities. Except for a few differences, proposed Sec.  26.907 would be 
equivalent to current Sec.  26.405, ``Drug and alcohol testing,'' which 
requires licensees and other entities implementing an FFD program under 
subpart K of part 26 to have a drug and alcohol testing program that 
demonstrates compliance with the requirements in Sec.  26.405(b) 
through (g). The differences are commensurate with the risk 
consequences presented by a part 57-licensed facility as compared to a 
part 50 or 52 nuclear power plant. These proposed requirements would 
improve flexibility in the conduct of drug and alcohol testing while 
maintaining protections afforded to individuals subject to the FFD 
program.
    Proposed Sec.  26.907(a), ``Split specimens,'' would require 
licensees and other entities to obtain a split specimen for all drug 
tests using oral fluid or urine for all test conditions in proposed 
Sec.  26.907(b), ``Test conditions,'' and (j), ``Blood testing.'' 
Neither current subpart K nor current subparts B or E of part 26 
require a split specimen. However, many of the LWR fleet uses split 
specimens for drug testing, and commercially available drug screening 
products use a split specimen technique. Since publication of the 2008 
part 26 final rule, the HHS has issued guidelines for urine and oral 
fluid specimen testing that require split specimen collections. The 
U.S. Department of Transportation regulations under 49 CFR part 40 also 
require split specimen collections for urine and oral fluid. The 
proposed HHS Guidelines for hair testing also require split specimen 
collections.
    The required use of a split specimen process would protect the 
individual because, upon a donor-alleged discrepant or questionable 
test result, the donor may provide permission to test the split 
specimen (specimen B) in an effort to refute the laboratory test 
results for specimen A. The requirement also would enable the MRO to 
direct laboratory testing of specimen B if specimen A were invalid; 
though the NRC expects specimens becoming invalid at the laboratory to 
be a rare occurrence as testing would be conducted by HHS-certified 
laboratories. If a specimen is determined to be invalid, then the 
occurrence would likely warrant further investigation by the MRO and 
laboratory to identify the cause. This protocol would be equivalent to 
the special analysis testing in current Sec.  26.163(a)(2) for dilute 
specimens and specimens collected under most directly observed 
collection conditions in that additional laboratory analysis is 
performed because of a questionable test result.
    If a split specimen is tested by an HHS-certified laboratory, then 
the test result from specimen B must be used as part of the 
determination for an FFD policy violation as required by Sec.  
26.185(n), ``Evaluating results from a second laboratory.'' However, 
this is not to say that the test results from specimen A should be 
discarded. Since the HHS-certified laboratory should report all test 
results from all specimens tested to the MRO, like the information 
described in Sec.  26.169, ``Reporting

[[Page 23671]]

results,'' test result differences between specimens A and B can be 
used to inform the MRO as to what should be reported to the licensee or 
other entity to either facilitate medical or clinical assistance for 
the individual, inform an FFD policy violation determination, or both.
    Proposed Sec.  26.907(a) would state that split specimen 
collections of oral fluid or urine must be used for the test conditions 
described in proposed Sec.  26.907(b). In addition, testing of the 
split specimen (specimen B) would require the donor's permission unless 
ordered by the MRO to resolve an invalid test result obtained for 
specimen A.
    Proposed Sec.  26.907(b) would require the licensee or other entity 
to subject individuals identified in Sec.  26.4 to drug and alcohol 
testing under the five conditions listed in proposed Sec.  26.907(b)(1) 
through (5). Proposed Sec.  26.907(b) would be equivalent to current 
Sec.  26.405(c).
    Proposed Sec.  26.907(b)(1), ``Pre-access,'' would require pre-
access testing similar to current Sec.  26.405(c)(1), which requires 
testing before assignment to construct or direct the construction of 
safety- or security-related SSCs. Unlike current Sec.  26.405(c)(1), 
the proposed requirement would not include the phrase, ``construct or 
direct the construction of safety- or security-related SSCs,'' because, 
for licensees or other entities under proposed part 57, the pre-access 
test condition would apply to construction and operation to help inform 
a licensee's or other entity's authorization determination. The 
proposed requirement also would use ``pre-access'' instead of ``pre-
assignment,'' which is used in current Sec.  26.405(c)(1).
    A pre-access test would require the collection of an oral fluid or 
a urine specimen no more than 14 days before the individual is granted 
unescorted access. Although this change has roots in the 2008 part 26 
final rule, which reduced the period within which pre-access testing 
must be performed from 60 days to 30 days or less, the 14-day proposal 
is based on two lessons learned from operating experience.
    First, the 14-day period would be a large enough window of time to 
collect the specimen and evaluate test results because licensees or 
other entities typically receive laboratory test results within 5 
business days of laboratory receipt of the biological specimen. At the 
same time, the 14-day period would be small enough to help ensure that 
the test results are representative of the individual's recent drug use 
before being granted authorization.
    Second, the NRC does not expect licensees and other entities 
licensed under proposed part 57 to have the large and periodic influxes 
of individuals (either licensee employees or C/Vs) that large LWRs have 
to support facility operation, maintenance, engineering design changes, 
or nuclear refueling. Therefore, these licensees or other entities 
would not be periodically challenged to in-take a large workforce 
within the proposed 14-day pre-access testing window.
    Proposed Sec.  26.907(b)(2), ``Random,'' would require the licensee 
or other entity to conduct random drug and alcohol testing of all 
individuals subject to the FFD program. With some exceptions, this 
proposed requirement would be equivalent to current Sec.  26.405(b). 
Section 26.405(b) gives licensees and other entities that implement an 
FFD program subject to subpart K of part 26 the option to impose random 
drug and alcohol testing. Proposed Sec.  26.907(b)(2) would not offer 
that option because proposed subpart P of part 26, unlike subpart K, 
would not allow a licensee or other entity to implement a fitness 
monitoring program under current Sec.  26.406, ``Fitness monitoring,'' 
instead of a random testing program. The principal reasons for not 
allowing this flexibility would be that no licensee or other entity has 
ever implemented a fitness monitoring program (i.e., there is no 
operating or regulatory experience on which to judge the effectiveness 
of a fitness monitoring program), and the proposed subpart P framework 
already uses behavioral observation to help ensure FFD program 
effectiveness. Supplementing the proposed Sec.  26.909, ``Behavioral 
observation,'' behavioral observation program (BOP) with an additional 
observation technique (i.e., the fitness monitoring program) would not 
result in a level of deterrence or detection equivalent to that which 
would be obtained through behavioral observation and random drug and 
alcohol testing.
    Proposed Sec.  26.907(b)(2)(i) through (v) would provide specific 
requirements for the conduct of a random testing program. These 
paragraphs would be equivalent to Sec.  26.405(b)(1) through (4), 
although with a few differences. The similar provisions would be 
proposed Sec.  26.907(b)(2)(i), (b)(2)(iii), and (b)(2)(iv).
    The differing provisions would include proposed Sec.  
26.907(b)(2)(ii), which would refer to an ``FFD program procedure'' 
instead of the reference to an ``FFD program policy'' in Sec.  
26.405(b)(2) because procedures contain the instructions that implement 
FFD program requirements, but the FFD policy need not contain specific 
instructions. Proposed Sec.  26.907(b)(2)(ii) also would require 
individuals who are selected for random testing to report to the onsite 
collection site, as opposed to the collection site in Sec.  
26.405(b)(2), because alcohol metabolism necessitates a timely alcohol 
test. This change is also proposed because the NRC expects that part 57 
licensees and other entities may use a combination of onsite (for 
random, for-cause, and post-event testing) and offsite (for pre-access, 
post-event, and follow-up testing) collection facilities for drug and 
alcohol testing and may have to afford reasonable accommodation to 
certain individuals, which would add complexity in the licensee's or 
other entity's procedurally determined time period in which an 
individual must report to the collection facility.
    Another difference from Sec.  26.405(b) is proposed Sec.  
26.907(b)(2)(v), which would establish the random testing rate for the 
population of individuals subject to testing. Subpart K of part 26 does 
not establish a random testing rate. The proposed requirement would be 
equivalent to current Sec.  26.31(d)(2)(vii), which requires that the 
sampling process used to select individuals for random testing provides 
that the number of random tests performed annually is equal to at least 
50 percent of the population that is subject to the FFD program at the 
NRC-licensed site.
    Proposed Sec.  26.907(b)(3), ``For cause,'' would require for-cause 
testing equivalent to that used in current FFD programs implementing 
Sec.  26.405(c)(2). The NRC is proposing for-cause testing, like random 
testing, to be conducted onsite to ensure that the test is conducted as 
soon as reasonably practicable. This is an important consideration when 
for-cause testing for alcohol or using oral fluid for drug screening or 
testing because human metabolism continually lowers the concentrations 
of the drugs, drug metabolites, and alcohol perhaps to concentrations 
lower than the initial or confirmatory testing cutoffs. Additionally, 
for facilities that are sited in geographically remote locations, an 
offsite collection facility might be too far away or not readily 
accessible.
    Proposed Sec.  26.907(b)(4), ``Post-event,'' would require post-
event testing in a manner equivalent to current Sec.  26.405(c)(3), 
with a few adjustments. For proposed part 57 licensees or other 
entities, the NRC is proposing post-event testing under two conditions: 
events involving human errors that may have caused or contributed to 
the events (proposed Sec.  26.907(b)(4)(i)), and events

[[Page 23672]]

not involving human error that result in adverse health consequences or 
damage to any safety- or security-related SSC (proposed Sec.  
26.907(b)(4)(ii)). The word ``significant'' would not be used in 
proposed Sec.  26.907(b)(4)(ii)(A) to describe the ``illness or 
personal injury'' as used in Sec.  26.405(c)(3)(i) because proposed 
Sec.  26.907(b)(4)(ii)(A) would describe which illnesses or injuries 
are covered. Proposed Sec.  26.907(b)(4)(ii)(B), unlike Sec.  
26.405(c)(3)(ii), would not use the word ``significant'' to describe 
the damage to safety- or security-related SSCs because any damage to 
safety- or security-related SSCs would require testing within four 
hours of the event unless immediate medical intervention precludes the 
conduct of the test on the individual(s) who caused or contributed to 
the event. Proposed Sec.  26.907(b)(4)(ii)(B) would also not use the 
word ``construction'' as in Sec.  26.405(c)(3)(ii) because proposed 
Sec.  26.907(b)(4) would apply to construction and operation.
    Proposed Sec.  26.907(b)(4)(i) would require the licensee or other 
entity to define in its procedures the term ``human error.'' This term 
may take on various meanings and it is not defined in the current or 
proposed rule, so the licensee or other entity would be required to 
describe or define this term to help ensure consistent implementation 
of proposed subpart P and that the post-event test condition would be 
consistently applied to all individuals subject to the FFD program. The 
Sec.  26.405(c)(3)(i) requirement that ``the event is recordable under 
the Department of Labor standards contained in 29 CFR 1904.7, and 
subsequent amendments thereto,'' would not be carried over to proposed 
Sec.  26.907(b)(4). Instead, the NRC proposes to prescribe the post-
event test conditions in proposed Sec.  26.907(b)(4), in part so they 
would not change unless the NRC amends the requirement.
    Proposed Sec.  26.907(b)(5), ``Follow-up,'' would require follow-up 
testing. This requirement would be equivalent to current Sec.  
26.405(c)(4), although proposed Sec.  26.907(b)(5) would further 
describe follow-up testing. The NRC proposes to describe follow-up 
testing as part of a series of tests for drugs, alcohol, or both, which 
are performed after an individual subject to part 26 has violated the 
FFD policy on substance use or abuse, or the sale, use, or possession 
of illegal drugs. Follow-up testing would be used to verify an 
individual's continued abstinence from substance abuse. The NRC would 
not include a reference to a follow-up plan as in Sec.  26.405(c)(4) 
because the intent of a follow-up plan is to conduct a series of drug 
tests, alcohol tests, or both, to verify continuing abstinence from 
substance abuse. Nevertheless, individuals who violate an FFD policy on 
substance use or abuse, or the sale, use, or possession of illegal 
drugs, should have a follow-up plan that includes a definition of 
``abstinence'' from the medical professional prescribing the plan.
    Proposed Sec.  26.907(c), ``Urine and oral fluid specimens,'' would 
provide additional testing requirements. The proposed requirement would 
be equivalent to Sec.  26.405(d) and would require implementation of 
select requirements from current subpart E of part 26. The proposed 
requirements would govern directly observed collections, shy bladder 
situations, special analysis testing, and alcohol testing. These 
requirements would be necessary to maintain FFD program effectiveness 
equivalent to that currently implemented by the LWR fleet.
    Proposed Sec.  26.907(c)(1) would establish the minimum panel of 
drugs and drug metabolites to be tested. This panel would be the same 
as those in Sec. Sec.  26.31(d)(1) and 26.405(d) because, based on 
operating experience from LWR FFD program implementation, this panel 
has been determined to contribute to a licensee or other entity 
satisfying the FFD performance objectives in Sec.  26.23(a) through 
(d).
    Section 26.405(d) requires that urine specimens collected for drug 
testing be subject to validity testing. Like Sec.  26.405(d), proposed 
Sec.  26.907(c)(1) would require testing of urine specimens for 
validity. Oral fluid specimens could also be subject to validity 
testing, including a biological marker, as specified in either part 26 
or the HHS Guidelines.
    Proposed Sec.  26.907(c)(2) would include requirements that already 
exist in the part 26 framework that provide protections for individuals 
subject to the FFD program and contribute to testing effectiveness when 
collecting and assessing a urine specimen. Specifically, current Sec.  
26.115, ``Collecting a urine specimen under direct observation,'' 
describes the exclusive grounds for performing a directly observed 
collection and the process to be followed to protect the privacy of the 
individual. Section 26.119, ``Determining `shy' bladder,'' establishes 
the process to be followed when a donor is not able to produce a 
sufficient amount of urine for testing, and Sec.  26.163(a)(2) requires 
special analysis testing when a specimen is dilute to help prevent a 
subversion attempt.
    Proposed Sec.  26.907(c)(3) would require implementation of all the 
current alcohol testing requirements in Sec.  26.91, ``Acceptable 
devices for conducting initial and confirmatory tests for alcohol and 
methods of use,'' through Sec.  26.103. Using the same alcohol testing 
framework for parts 50, 52, 57, and 70 licensees and other entities 
would provide for regulatory consistency, protections for individuals 
subject to the FFD program (e.g., the quality controls and verification 
applied to the EBT), and FFD program effectiveness (e.g., accuracy of 
test results). For alcohol testing, unlike drug testing, there is a 
preponderance of evidence that correlates blood alcohol concentrations 
to impairment and intoxication. Furthermore, FFD performance data has 
demonstrated that the time-dependent alcohol cutoffs in Sec.  26.103 
have increased the detection of individuals who are under the influence 
of alcohol. For these reasons, the current alcohol requirements in part 
26 would be required for FFD programs under proposed subpart P.
    Proposed Sec.  26.907(c)(4) would establish additional testing 
requirements. This proposal would be equivalent to current Sec.  
26.405(f) for facilities licensed under proposed part 57 for the 
conduct of drug testing. Unlike Sec.  26.405(f), proposed Sec.  
26.907(c)(4) would not reference validity screening and initial drug 
and validity tests at licensee testing facilities. Another minor 
difference between Sec.  26.405(f) and proposed Sec.  26.907(c)(4) 
would reflect the requirement in proposed subpart P to use an HHS-
certified laboratory for all biological specimens collected and not 
just for urine specimens.
    Consistent with Sec.  26.405(f), proposed Sec.  26.907(c)(4) would 
require the use of an HHS-certified laboratory for all test conditions 
listed in proposed Sec.  26.907(b), MRO-directed tests, and the testing 
of a split specimen. Further, HHS-certified laboratory test results 
using urine or oral fluid would be required for the issuance of an FFD 
policy violation and part 26-required sanction.
    All drug testing would need to be performed at an HHS-certified 
laboratory to help ensure FFD program effectiveness and to protect the 
donor from a false positive test result and an unwarranted FFD policy 
violation. The donor would be protected because laboratory procedures 
for specimen accessioning, testing, custody and control, and evaluation 
of test results and the training and qualification of laboratory 
personnel are evaluated by HHS as part of the NLCP. This would

[[Page 23673]]

provide assurance that the drug testing results are accurate and 
attributed to the donor. Hair specimens could also be pre-access tested 
for drugs as described in proposed Sec.  26.907(h), ``Hair testing,'' 
and positive test results could only be used as potentially 
disqualifying information for a licensee's or other entity's 
authorization determination (i.e., used to assess the fitness, 
trustworthiness, and reliability of the individual). A positive hair 
test result could not be used for the administration of an FFD policy 
violation and sanction, except as provided for in proposed Sec. Sec.  
26.907(h)(3) and 26.910(b)(4) for attempts to subvert the testing 
process, as defined in Sec.  26.5.
    There are three phrases or requirements in Sec.  26.405(f) that the 
NRC does not propose to use in proposed Sec.  26.907(c)(4). The first 
is the phrase, ``consistent with its standards and procedures for 
certification,'' regarding the operation of an HHS-certified 
laboratory, because the laboratory would not be HHS-certified if it 
were not following ``its standards and procedures for certification.'' 
The second is the requirement that urine specimens that yield positive, 
adulterated, substituted, or invalid initial validity or drug test 
results must be subject to confirmatory testing by the HHS-certified 
laboratory, except for invalid specimens that cannot be tested. This 
requirement would not be used because, under proposed subpart P of part 
26, licensees or other entities would not be required to use an HHS-
certified laboratory. For a laboratory to be HHS-certified, it must 
follow the HHS Guidelines and include procedures that describe when a 
specimen cannot be tested. Lastly, the Sec.  26.405(f) requirement that 
other specimens that yield positive initial drug test results must be 
subject to confirmatory testing by a laboratory that demonstrates 
compliance with stringent quality control requirements that are 
comparable to those required for certification by the HHS, would not be 
used because proposed subpart P of part 26 would require the use of an 
HHS-certified laboratory.
    Proposed Sec.  26.907(c)(5) would require the licensee or other 
entity to contract with an HHS-certified laboratory and would specify 
the same requirements that current Sec.  26.153(f) requires for 
contracts between licensees or other entities who are subject to part 
26 and HHS-certified laboratories. Proposed Sec.  26.907(c)(5)(ii) 
would state that records and documents must be provided and/or able to 
be photocopied and removed from the premises to support the inspection 
or audit. This requirement would be equivalent to current Sec.  
26.41(d), except that laboratories would not be able to limit the use 
and dissemination of documents copied or taken from the laboratory by a 
licensee or other entity. This would be necessary to ensure the 
continuing effectiveness of FFD programs, because NLCP findings and 
audit results could adversely impact FFD program effectiveness. 
Pertinent information includes and should not be limited to NLCP-
identified weaknesses (e.g., custody and control, accessioning, 
instrumentation, procedures, training, supervision, review of test 
results, and resolution of previously identified corrective actions) 
that may impact the effectiveness of FFD programs.
    Proposed Sec.  26.907(d), ``Privacy and integrity,'' would help 
protect the donor from mistakes made during the drug and alcohol 
testing processes and help ensure FFD program effectiveness. The NRC 
would require the licensee or other entity to protect the individual's 
privacy and the integrity of the specimen and to implement quality 
controls to ensure that test results are valid and attributable to the 
correct individual. This proposed requirement would be equivalent to 
the first sentence of current Sec.  26.405(e), except that the word 
``stringent'' would be removed from the phrase ``stringent quality 
controls,'' because the word ``stringent'' is not defined.
    Proposed Sec.  26.907(e), ``Offsite collection facilities,'' would 
describe the requirements for licensees and other entities that use 
offsite collection facilities. Consistent with current Sec.  26.405(e), 
a licensee or other entity would be able to conduct specimen 
collections and alcohol testing at a local hospital or other facility, 
except for those specimens that must be collected onsite under proposed 
Sec.  26.907(b)(3) and (4). Unlike Sec.  26.405(e), proposed Sec.  
26.907(e) would not restrict licensees and other entities to use 
hospitals and other facilities that meet the U.S. Department of 
Transportation requirements in 49 CFR part 40 because proposed subpart 
P of part 26 is intended to provide flexibilities beyond those in the 
current part 26 framework. Licensees and other entities may use these 
Department of Transportation requirements to inform their procedures 
under proposed Sec.  26.906(b)(1) as long as the procedures do not 
conflict with the requirements in part 26 or the HHS Guidelines.
    Proposed Sec.  26.907(e) would also require licensees and other 
entities to audit offsite collection facilities before their use and 
biennially to confirm that the facility procedures are comparable to 
those described in subpart E of part 26 or the HHS Guidelines for urine 
and oral fluid. This prosed requirement is based on current Sec.  
26.41(a) and (b). The proposed Sec.  26.907(e) audit requirement is a 
program effectiveness consideration because offsite collection 
facilities may not require vigilance of their collectors (e.g., 
identification of subversion attempts), diligence in the protection of 
worker rights (e.g., privacy and specimen custody and control), or 
procedural compliance.
    The offsite facility used by a licensee or other entity under 
proposed Sec.  26.907(e) would have to be licensed to conduct specimen 
collections and perform alcohol testing, and be audited, by the State 
or a State-designated entity. This requirement would help provide 
assurance of adequate collection facility performance and may help 
reduce the burden on the licensee or other entity and the collection 
facility. Crediting a State audit (or State licensure, oversight, or 
regulation) is established in Sec. Sec.  26.4(i)(4) and (j), 
26.91(e)(5), 26.153(f)(1), and 26.183(a).
    Proposed Sec.  26.907(f), ``Initial testing,'' would provide the 
requirements for initial drug testing. This provision would be 
equivalent to Sec.  26.405(f) except to account for the testing of 
urine and oral fluid specimens under proposed subpart P of part 26. The 
initial test would have to use an immunoassay or an alternative 
technology, as specified in the HHS Guidelines for the specific 
biological specimen that is to be tested. Examples of alternative 
technologies include liquid or gas chromatography and mass 
spectrometry. Another difference from Sec.  26.405(f) would be changing 
the word ``urine'' in Sec.  26.405(f) to ``biological specimens'' in 
proposed Sec.  26.907(f). Lastly, proposed Sec.  26.907(f) would 
include the phrase ``discrepant biological marker'' as a drug screening 
result that would have to be analyzed by an HHS-certified laboratory 
and evaluated by the MRO to help inform the MRO's determination of a 
subversion attempt.
    Proposed Sec.  26.907(g), ``Oral fluid testing,'' would enable a 
part 57 licensee to use oral fluid as a biological specimen for 
testing. This requirement would be equivalent to Sec.  26.31(d)(5), 
which enables the MRO to conduct drug and alcohol testing using 
alternative methods, and Sec.  26.405, which does not preclude the use 
of oral fluid specimens for FFD programs that implement subpart K of 
part 26 requirements. In order to provide assurance that drug testing 
is effective and protects the worker, proposed Sec.  26.907(g) would 
require that the licensee's or other

[[Page 23674]]

entity's procedures incorporate the HHS Guidelines or the requirements 
in part 26 for the conduct of urine or oral fluid testing.
    Proposed Sec.  26.907(g) would require that the oral fluid device 
must not expire before the date of the collection of the specimen. 
Also, the drugs, drug metabolites, initial and confirmatory testing 
cutoffs, and biological markers, if applicable, would need to be those 
established by the HHS Guidelines for oral fluid drug testing and the 
alcohol cutoffs in part 26. If they were not established by the HHS 
Guidelines or part 26 for the paneled drugs and drug metabolites, then 
they would be determined and documented by a forensic toxicologist 
review under Sec.  26.31(d)(1)(i)(D).
    Proposed Sec.  26.907(g)(2) would permit the virtual collection of 
oral fluid specimens for drug and alcohol testing but only at 
facilities that must use a C/TPA to implement random testing under 
proposed Sec.  26.907(b)(2)(vi). A virtual collection monitor would be 
permitted in the location where the specimen collection is to be 
performed to assist the virtual collector, such as by completing 
Federal CCF paperwork; observing activities outside the viewable area 
of the video teleconference equipment to ensure that the donor does not 
attempt to subvert the testing process; providing information to the 
virtual collector if/when requested; and ensuring that the oral fluid 
specimen(s) once packaged for shipping are secured until picked up for 
transportation to the HHS-certified laboratory.
    Proposed Sec.  26.907(h) would enable the collection of hair 
specimens for drug testing to supplement pre-access testing of urine or 
oral fluid specimens. Hair testing would be a new feature in the part 
26 framework. The NRC proposes to permit the use of hair testing for 
only Schedule I or II drugs or their metabolites to inform a licensee's 
or other entity's determination whether the individual is trustworthy 
and reliable. For example, if an individual stated no prior use of 
illegal drugs, a pre-access hair test could be performed to ascertain 
the validity of the individual's statement. However, if the HHS-
certified laboratory were to report a positive test result, an FFD 
policy violation could not be administered. This laboratory information 
would need to be treated as potentially disqualifying FFD information, 
unless the individual were determined to have attempted to subvert the 
testing process, in which case a permanent denial of authorization 
would be required under proposed Sec.  26.910(b)(4). To provide 
assurance of testing effectiveness and protections afforded to 
individuals subject to the FFD program, proposed Sec.  26.907(h) would 
require that an HHS-certified laboratory must be used to test the hair 
specimen. The forensic toxicologist review would be necessary if the 
panel of drug or drug metabolites to be tested and their cutoffs were 
not established by HHS or part 26 for hair.
    Proposed Sec.  26.907(i), ``Portal area screening,'' would enable 
the use of portal area screening instruments to test for drugs, 
alcohol, or both, should these types of screening tests become 
available for use. This technology could substantially contribute to a 
licensee or other entity satisfying the Sec.  26.23 performance 
objectives by helping ensure that all individuals who arrive at the 
NRC-licensed facility to perform or direct those duties and 
responsibilities or maintain those types of access making them subject 
to the FFD program are fit for duty and deterred from arriving onsite 
in a physiological condition that may be adverse to safety and 
security. Additionally, screening could be conducted when individuals 
exit the NRC-licensed facility to provide assurance that substance 
abuse had not occurred onsite (see Sec.  26.23(d)). The screening 
instrument could be electronically linked to temporarily prevent 
ingress or egress and could automatically inform licensee- or other 
entity-designated officials of the portal area alarm. The use of portal 
area screening technologies could also represent cost savings because, 
for NRC-licensed facilities that have small staff sizes or are 
geographically remote, passive drug and alcohol screening technologies 
could be an innovative alternative to a random testing program, 
although the license or other entity would need to request and receive 
an exemption.
    Proposed Sec.  26.907(i) would also provide that if the portal area 
screening instrument detects a substance that exceeds the instrument's 
established setpoint, the individual then would need to be for-cause 
tested under proposed Sec.  26.907(b)(3) for drugs, alcohol, or both, 
depending on the screening test result received. A portal area 
screening test result is to be considered credible use information, 
which would strengthen the effectiveness of a licensee's or other 
entity's BOP. The requirements would not allow an individual to be 
rescreened by the portal area screening instrument following an initial 
screening detection that exceeded an established setpoint in order to 
prevent a subversion attempt. To ensure the accuracy of any portal area 
screening testing performed by a licensee or other entity, a 
performance-based approach would need to be used to verify the 
continuing accuracy of the testing for each substance tested by the 
instrument. A portal area screening test could be used so long as the 
accuracy of the test result for a specific substance were confirmed by 
the resultant for-cause testing performed on an oral fluid or urine 
specimen for drugs, oral fluid or breath specimen for alcohol, or both. 
If a portal area screening result for a specific drug or drug 
metabolite were confirmed by drug testing performed at an HHS-certified 
laboratory, or oral fluid or breath alcohol testing for at least 85 
percent of the specimens testing positive on portal area screening in 
the past 12-month data reporting period for a specific substance, the 
portal area screening test for that substance could continue to be 
used. This performance-based measure would balance the use of the 
technology with the protection afforded to individuals from unnecessary 
testing. If these instruments and alcohol screening devices have the 
capability, they could also be used to determine the true identity of 
individuals to facilitate the implementation of the FFD BOP, which 
could be very practicable at facilities that operate with small staff 
sizes.
    Proposed Sec.  26.907(j) would enable the use of a blood specimen 
for drug, alcohol, or other testing for certain medical conditions as 
determined by the licensee- or other entity-designated MRO. This 
requirement would be equivalent to current Sec.  26.31(d)(5). The use 
of a licensee- or other entity-designated MRO and not one designated by 
a third party, such as an MRO employed by an offsite specimen 
collection facility, would be important because the MRO must be 
familiar with the proposed subpart P requirements. To help ensure 
testing effectiveness and protect the worker, the blood test would need 
to be conducted by a laboratory that demonstrates compliance with 
quality control requirements that are comparable to those required for 
certification by the HHS, such as a hospital or clinic certified by the 
State, Commonwealth, or territory.
    Proposed Sec.  26.907(k), ``Federal custody and control form,'' 
would require licensee and other entities to use a Federal custody and 
control form (Federal CCF) as defined in Sec.  26.5 for the collection 
and packaging of hair, oral fluid, and urine specimens for drug 
testing. This proposed requirement is based on the Federal CCF 
documentation requirements in current subpart E of part 26 because 
subpart K of part 26 does not require the use of a Federal CCF under 
Sec.  26.117(e).

[[Page 23675]]

    Proposed Sec.  26.907(l), ``Medical Review Officer,'' would 
establish requirements for the licensee- or other entity-designated 
MRO. Proposed Sec.  26.907(l)(1) would be equivalent to Sec.  
26.405(g), however, the word ``designated'' would be added to the first 
sentence to clarify that the MRO would be designated by the licensee or 
other entity, and not by a third party. As stated with regard to 
proposed Sec.  26.907(j), this change would clarify that it is the 
licensee's or other entity's responsibility, through their designated 
MRO, to determine whether an individual is fit for duty and trustworthy 
and reliable. This would be consistent with the description of FFD 
program personnel in current Sec.  26.31(b) and help provide FFD 
program effectiveness and protections to individuals subject to the FFD 
program. The paragraph was also modified from Sec.  26.405(g) to 
address the determinations of FFD policy violations and fitness 
required by subpart H of part 26.
    Proposed Sec.  26.907(l)(2) would help ensure that MRO reviews are 
consistent with those MRO reviews conducted at other NRC-licensed 
facilities subject to part 26 and that the MRO maintains knowledge of 
drug collection, testing processes and procedures, and evaluation of 
testing results.
    The NRC also proposes that if an MRO performed the duties and 
responsibilities in Sec. Sec.  26.185, ``Determining a fitness-for-duty 
policy violation,'' and 26.187, ``Substance abuse expert,'' for at 
least three continuous years in the last 10 years prior to being hired 
or contracted by the licensee or other entity, then the MRO would not 
need to repeat the initial training and examination requirements. The 
basis for 3 years is that the MRO would have experienced three annual 
cycles of evaluating drug and alcohol test results, contributed to the 
annual FFD program performance data reported to the NRC, experienced a 
refueling or maintenance outage, understood the duties and 
responsibilities of individuals subject to the FFD program to make 
informed determinations of fitness, demonstrated a safety culture that 
helps ensure FFD program effectiveness, and been subject to NRC 
inspection. The basis for 10 years is the relatively long periods 
between significant changes to part 26 and the HHS Guidelines.
    Proposed Sec.  26.907(l)(3) would require that the MRO attend a 
medical- or clinical-based training session every 5 years. This 
proposal was developed, in part, from section 13.1 of the HHS 
Guidelines for the testing of urine and oral fluid specimens and 49 CFR 
40.121 of the U.S. Department of Transportation's requirements. The NRC 
would not include an examination requirement as part of this refresher 
training requirement because it could limit the types of trainings that 
MROs may attend. The proposed requirements are justified to maintain 
currency on changes in societal drug use, forensic toxicology, 
determinations of fitness, and other part 26 technical areas necessary 
to perform required responsibilities as an MRO performing services 
under proposed subpart P.
    Proposed Sec.  26.907(l)(4) would require the MRO to evaluate drug 
testing results by implementing the requirements in Sec.  26.185 or the 
HHS Guidelines through the licensee's or other entity's procedures. 
This requirement would help ensure FFD program effectiveness and 
enhance consistency across the commercial nuclear industry for the 
evaluation of drug testing results. This also would help protect 
individuals because they would be subject to the same evaluation 
criteria. If Sec.  26.185 provides insufficient information for an MRO 
to make a determination on a drug testing result (including adulterant 
and discrepant biological markers), the guidance issued by a State 
agency in the state in which the NRC-licensed facility is located, 
Federal agency, or nationally recognized MRO training and certification 
organization may be used to inform an MRO determination. This provision 
would ensure that the MRO has the flexibility to inform their 
evaluation of the drug testing results and fitness determination, if 
necessary, considering the drug- and alcohol-related flexibilities 
afforded in subpart P of part 26.
    The proposed requirement would also state that an MRO need not 
review alcohol test results, including positive confirmatory alcohol 
test results determined by an EBT under proposed Sec.  26.907(c)(3)(vi) 
and (vii), which are the current requirements in Sec. Sec.  26.101, 
``Conducting a confirmatory test for alcohol,'' and 26.103, 
respectively. Proposed Sec.  26.907(c)(3)(i) would require the use of 
an EBT under Sec.  26.91, which would ensure that confirmatory alcohol 
test results are precise and accurate to issue FFD policy violations.
    Proposed Sec.  26.907(l)(5) would require the licensee- or other 
entity-designated MRO to determine and approve the use of oral fluid or 
urine as an alternative biological specimen when the donor cannot 
provide a requested specimen for testing. This proposed requirement 
would be equivalent to Sec.  26.31(d)(5), which enables the use of an 
alternative specimen collection if a medical condition makes the 
collection of the biological specimen difficult. This determination and 
the retest must be completed as soon as reasonably practicable and 
documented to support recordkeeping, auditing, and NRC inspection.
    Proposed Sec.  26.907(l)(6) would require that the MRO review all 
specimen test results associated with a drug-related FFD policy 
violation. This would include split specimens and all specimens taken 
to resolve a discrepant condition, such as a possible subversion 
attempt, impairment without a known cause, or a donor-requested or MRO-
directed retest. To resolve a discrepant condition, the MRO would be 
authorized to test a specimen for a biological marker, adulterants, or 
additional drugs. The broad scope of this MRO evaluation would be 
necessary because of the variety of different screening and testing 
methods that may have been associated with the FFD policy violation. 
All information learned from the conduct of part 26 drug and alcohol 
screening and testing should be used in the evaluation of an 
individual's trustworthiness and reliability, issuance of a sanction, 
and development of a follow-up treatment and testing plan, if 
administered.
    Proposed Sec.  26.907(m), ``Limitations of screening and testing,'' 
would be equivalent to current Sec.  26.31(d)(6) and would establish 
limits on the screening and testing of biological specimens. This would 
be a protection consideration afforded to individuals subject to the 
FFD program and was not provided in subpart K of part 26. This proposed 
requirement would state that specimens collected under NRC regulations 
may only be designated or approved for screening and testing as 
described in part 26 and may not be used to conduct any other analysis 
or test without the written permission of the donor. Analyses and tests 
that would not be permissible would include, but would not be limited 
to, deoxyribonucleic acid (i.e., DNA) testing, serological typing, or 
any other medical or genetic test used for diagnostic or specimen 
identification purposes.
    The NRC proposes to require that no biological specimens may be 
passively sampled and analyzed in a manner different than described in 
proposed subpart P of part 26 to ensure workers are protected from non-
consensual passive screening. The proposed subpart P framework would 
enable passive detection of drugs and alcohol, whereas passive 
detection is not afforded in subparts A through I, N, and O of part 26.

[[Page 23676]]

    Proposed Sec.  26.907(n), ``Specimen collectors,'' would be 
equivalent to current Sec. Sec.  26.31(b)(1)(iii)(A) and 26.89 and 
would require that all specimen collections be conducted by a licensee- 
or other entity-designated and -trained individual. For proposed 
subpart P of part 26, this would include onsite specimen collections, 
except a collection by a portal area screening instrument in proposed 
Sec.  26.907(i).
    Proposed Sec.  26.908 would require licensees and other entities to 
provide FFD program training to individuals subject to the FFD program. 
The performance-based proposed Sec.  26.908 requirement was developed 
from the prescriptive training requirements in current Sec.  26.29 and 
modeled on current Sec.  50.120 because there is no training 
requirement in subpart K of part 26.
    Proposed Sec.  26.908(a)(1) would require an FFD training program 
that includes the licensee's or other entity's FFD policies and 
procedures, including fatigue management, and the individuals' FFD 
program responsibilities. Individuals who collect specimens for testing 
would also need to be trained in specimen collector duties and 
responsibilities, including, at a minimum, specimen collection, custody 
and control, identification and response to subversion attempts, and 
privacy. For individuals specified in Sec.  26.4, a licensee or other 
entity of a nuclear plant would be required to use a systems approach 
to training as defined in proposed in Sec.  57.390. These requirements 
are based on requirements in Sec.  26.29(a)(2), (3), (9), and (10).
    Proposed Sec.  26.908(a)(2) would require training on the BOP. This 
requirement would be based on Sec. Sec.  26.29(a)(8), (9), and (10) and 
26.33, ``Behavioral observation.'' The proposal would require 
individuals to be trained in the detection of behaviors or conditions 
that may indicate the use of illegal drugs, as in the current Sec.  
26.33 BOP requirements, and the use of illicit drugs and substance 
abuse onsite and offsite. Also, in reference to impairment from fatigue 
or any cause if left unattended, the phrase in Sec.  26.33, ``may 
constitute a risk to public health and safety or the common defense and 
security,'' would be replaced in proposed Sec.  26.908(a)(2)(iii) with 
``could result in inattentiveness or human errors,'' because proposed 
subpart P of part 26 would be focused, in part, on ensuring individuals 
are fit for duty to perform or direct the performance of assigned 
duties and responsibilities safely and competently.
    Proposed Sec.  26.908(a)(2)(iv) would focus on training to inform 
individuals that they are responsible for their own conduct, as well as 
observing others. Specifically, individuals would be trained to 
recognize when they feel unable to safely and competently perform 
assigned duties and responsibilities, as well as to recognize when 
others appear unable to safety and competently perform assigned duties 
and responsibilities or act in an untrustworthy and unreliable manner. 
The training requirement and the self-reporting requirement in proposed 
Sec.  26.906(a)(5) would be in the interest of safety and security 
because the individual is proactively announcing that assistance may be 
necessary. This would be consistent with the performance objectives in 
Sec.  26.23(b) and (c), where certain behavior or stress conditions may 
be indicative of an individual not being fit for duty, trustworthy, and 
reliable.
    Proposed Sec.  26.908(a)(3) would help ensure that individuals 
subject to the FFD program understand that FFD policy violations would 
result in an FFD program sanction and that program information learned 
or generated by FFD program implementation would be used to aid 
licensee or other entity authorization determinations and be shared, as 
requested, with other licensees or other entities subject to parts 26 
and 73. This proposed requirement would be equivalent to Sec.  
26.29(a)(1). Proposed Sec.  26.908(a)(3) would be a protection measure 
afforded to individuals subject to the FFD program because they would 
understand that licensees and other entities subject to parts 26 and 73 
would be informed of, in part, an individual's character, reputation, 
and ability to follow policies, procedures, and instructions to safely 
and competently perform assigned duties and responsibilities in a 
trustworthy and reliable manner. Fitness for duty-related information 
would include drug and alcohol testing results (not quantitative 
testing values), issuance of any sanctions, FFD-determinations 
regarding trustworthiness and reliability, testing programs, treatment, 
and other remedial or corrective action.
    Proposed Sec.  26.908(b), ``Training and assessments,'' would 
require individuals to be trained on the FFD program and to receive a 
trainee assessment before pre-access testing. Proposed Sec.  26.908(b) 
also would require that FFD program refresher training and trainee 
assessments be conducted on a nominal 24-month frequency or more 
frequently if the need is indicated. These requirements would be 
equivalent to Sec.  26.29(c)(1). However, proposed Sec.  26.908(b) was 
developed from the systems approach to training-based training 
requirements in Sec.  50.120 and training elements from the annual FFD 
program refresher training requirements in Sec.  26.29(c)(2). A trainee 
assessment would be the same as in currently required systems approach 
to training-based training programs.
    Proposed Sec.  26.908(c), ``Training program review,'' would 
require licensees and other entities to periodically evaluate their FFD 
training programs and revise them as appropriate. This training focus 
is not required by subpart K of part 26 or Sec.  26.29 but is proposed 
to address the flexibilities afforded in proposed subpart P of part 26. 
This section would be equivalent to Sec.  50.120(b)(3).
    Proposed Sec.  26.909 would require the implementation of a BOP. 
The requirement would be equivalent to that in Sec. Sec.  26.33 and 
26.407, ``Behavioral observation,'' and would apply during construction 
and operation. Under the FFD program, the purpose of the BOP would be 
to help ensure that individuals subject to the FFD program are fit for 
duty and trustworthy and reliable to perform or direct those duties and 
responsibilities and maintain those types of access that make the 
individual subject to the FFD program. This assurance would be 
accomplished by requiring each individual subject to proposed subpart P 
to be subject to behavioral observation, and by requiring all 
individuals to perform behavioral observation of others and report FFD 
concerns to the licensee- or other entity-designated representative(s). 
The intent of the BOP requirement would not be to require that all 
individuals be observed at all times by others; NRC-licensed operators, 
maintenance professionals, security officers, and others routinely 
perform solo operations periodically throughout the day. However, 
individuals would need to be subject to observation while they are 
performing or directing the performance of duties and responsibilities 
or maintaining the types of access making them subject to the FFD 
program. Observing behavior only at the beginning of a work shift would 
not be sufficient to ascertain whether an individual is fit for duty, 
trustworthy, and reliable. Impairing substances may have a delayed 
effect between use (e.g., ingestion of a controlled substance) and the 
onset of physiological or psychological effects, and fatigue 
accumulates with time. Behavior must be continually observed throughout 
the work shift to detect any changes from baseline human performance 
characteristics, including mental or physical health and mannerisms, or 
any activities that may

[[Page 23677]]

indicate that the individual is not trustworthy and reliable.
    Proposed Sec.  26.909(a) would differ from Sec. Sec.  26.33 and 
26.407 in that it would place the responsibility for performing 
behavioral observation on ``all individuals subject to this subpart,'' 
rather than only those ``individuals specified in Sec.  26.4(f) [who] 
are constructing or directing the construction of safety- or security-
related SSCs'' in Sec.  26.407 or ``individuals who are trained under 
Sec.  26.29 to detect behaviors'' in Sec.  26.33 to improve clarity.
    Proposed Sec.  26.909(b) would require all individuals subject to 
the FFD program to report to the licensee- or other entity-designated 
representative any onsite or offsite behaviors or activities by 
individuals subject to part 26 that could constitute an unreasonable 
risk to the safety or security of the NRC-licensed facility or SNM or 
may cause harm to others. The NRC would require this description of 
reportable conduct because an individual's activities (e.g., use of 
illegal substances) and communications (e.g., hate speech or threats of 
violence) offsite are a direct indication of the individual's fitness, 
trustworthiness, and reliability and must be evaluated as to whether 
authorization should be granted or maintained. Proposed Sec.  26.909(b) 
would include a description of this conduct instead of the Sec.  26.33 
undefined phrase, ``FFD concerns,'' to enhance the clarity of the 
requirement. This BOP reporting requirement would include any 
information relating to character or reputation of the individual 
indicating that the individual cannot be trusted or relied upon to 
perform those duties and responsibilities or maintain access to NRC-
licensed facilities, SNM, or sensitive information. Proposed Sec.  
26.909(a) and (b) were written broadly to include offsite conduct that 
the reporting individual considers serious enough to call into question 
the character or reputation of the subject individual.
    Proposed Sec.  26.909(c) would require that licensees and other 
entities perform behavioral observation visually, in-person, and, when 
necessary, remotely by live video and audible streaming and capture. 
This requirement was developed from the security observation 
requirements in Sec.  73.55(e)(7)(i)(B) and (C), (h)(2)(v), and (i)(2) 
and (i)(5)(ii). Conducting an in-person observation of another 
individual would be the preferred method to ascertain whether the 
observed individual can safely and competently perform assigned duties 
and responsibilities. When in-person observations would not be feasible 
(e.g., during solo operations), the proposed requirement would enable 
the use of video monitoring. This is addressed, for example, in 
proposed Sec.  26.909(d) regarding NRC-licensed operator manipulation 
of reactor controls. Additionally, certain duties (such as maintenance 
activities performed by a single worker outside of a control room) may 
not present an opportunity for video monitoring; in these situations, 
behavioral observation should be conducted on a sampling basis (i.e., a 
planned observation of the work activity) as outlined in a licensee's 
or other entity's FFD program.
    In situations involving small staff sizes, facilities sited in 
geographically remote locations, or both, additional observers would 
enhance the effectiveness of a BOP. Technological developments in 
automated safety and security systems may enable licensees or other 
entities to reduce staff sizes to 10 to 40 percent of the staff size of 
an LWR facility licensed under part 50 or 52. Smaller staff sizes may 
translate into more solo operations, less teamwork, fewer peer checks, 
or infrequent management oversight of field activities, leading to 
fewer behavioral observations. Therefore, a licensee or other entity 
may have fewer opportunities to observe whether individuals are fit for 
duty.
    Proposed Sec.  26.909(d) would require that licensees or other 
entities perform behavioral observation of NRC-licensed operators who 
manipulate the controls of any nuclear plant licensed under proposed 
part 57, remotely by live video and audible streaming capture for those 
part 57 facilities where individual task loading does not allow for the 
effective conduct of behavior observation in addition to assigned 
operational tasks. The purpose of this paragraph would be similar to 
that of proposed Sec.  26.909(c), where the possibility of in-person 
observation is significantly diminished because of solo operations or 
because the facility may only require a minimum staff size onsite.
    Proposed Sec.  26.910(a) would be similar to Sec.  26.409, 
``Sanctions,'' and would require the licensee or other entity to 
establish sanctions for FFD policy violations that, at a minimum, would 
prohibit the individuals specified in Sec.  26.4 from being assigned to 
perform or direct those duties and responsibilities or maintaining 
authorization making them subject to proposed subpart P of part 26. To 
be consistent with Sec.  26.75, ``Sanctions,'' the severity of the 
sanction as described in proposed Sec.  26.910(b) would escalate with 
the number of occurrences and severity of the FFD policy violation. The 
sanction would be long enough to help deter future FFD policy 
violations and facilitate counseling and treatment before the licensee 
reinstates the individual's access to the facility.
    Proposed Sec.  26.910(b)(1) would require a minimum 14-day denial 
of access for an individual's first violation of the FFD policy 
involving a confirmed positive drug or alcohol test result. Proposed 
Sec.  26.910(b)(2) would require a minimum 3-year denial of access for 
an individual's second violation of the FFD policy involving a 
confirmed positive drug or alcohol test result.
    Equivalent to Sec.  26.75(c), proposed Sec.  26.910(b)(3) would 
require a minimum 5-year denial of access for who is determined to have 
been involved in the sale, use, or possession of illegal drugs or the 
consumption of alcohol within a protected area of any facility licensed 
under proposed part 57 or within a transporter's facility or vehicle 
used in the conveyance of formula quantities of strategic SNM. 
Equivalent to Sec.  26.75(b), proposed Sec.  26.910(b)(4) would require 
a permanent denial of authorization be issued for a third violation of 
the FFD policy involving a confirmed positive drug or alcohol test 
result or a subversion attempt of any drug or alcohol test or screening 
process.
    Proposed Sec.  26.911, ``Protection of information,'' would protect 
information collected from FFD program implementation and would be 
equivalent to current Sec.  26.411, ``Protection of information.'' The 
protected information would include, but not be limited to, privacy and 
medical information. Proposed Sec.  26.911 would not include the Sec.  
26.411 requirement that FFD programs must maintain and use the personal 
information with the highest regard for individual privacy because such 
a requirement would be unnecessary considering the proposed Sec.  
26.911(a) requirement that licensees and other entities would have to 
establish and maintain a system of files and procedures to prevent 
unauthorized disclosure.
    Proposed Sec.  26.911(b), although equivalent to Sec.  26.411(b), 
would require licensees and other entities to have all individuals sign 
a consent to be subject to the FFD program before subjecting the 
individual to the FFD program (e.g., before being subject to a pre-
access test in proposed Sec.  26.907(b)(1), unlike Sec.  26.411(b)). 
The purpose of this proposal would be to enhance protections afforded 
to individuals subject to the FFD program and their knowledge of, in 
part, why they are subject to drug and alcohol testing, behavioral 
observation, information

[[Page 23678]]

collection, MRO reviews, and other FFD program elements. Like the 
consent required by Sec.  26.411(b), the consent would authorize 
disclosure of the collected information. Consent would not be needed 
for disclosures to the individuals and entities specified in Sec.  
26.37(b)(1) through (b)(6), (b)(8), and persons deciding matters under 
review in proposed Sec.  26.913, ``Appeals process.''
    Proposed Sec.  26.913 would be equivalent to Sec.  26.413, ``Review 
process.'' The proposed title would be changed to an appeal process to 
clarify that proposed Sec.  26.913 would be the process implemented 
when an individual elects to appeal a licensee or other entity 
determination that the individual had violated the FFD policy. The 
proposal would also require that the process include a schedule for the 
completion of the review of the determination that the individual had 
violated the FFD policy. The NRC proposes this requirement because 
operating experience demonstrates that workers may not be protected 
from a continuous review process that does not result in an outcome.
    Proposed Sec.  26.915, ``Audits,'' would require licensees and 
other entities to perform audits of the FFD program. The proposed 
section would be similar to Sec.  26.415, ``Audits.'' Under proposed 
Sec.  26.915(a), audits would be performed at a frequency that ensures 
the FFD program's continuing effectiveness. Corrective actions would be 
taken as soon as reasonably practicable to resolve any problems 
identified and preclude recurrence. Proposed Sec.  26.915(b) would 
require the subject matter, scope, and frequency of audits to be 
revised as necessary to improve or maintain FFD program performance 
based on annual FFD program performance data reviews performed under 
proposed Sec.  26.917(d) and unsatisfactory performance or programmatic 
weaknesses identified under proposed Sec.  26.917(b)(3) and (e).
    Proposed Sec.  26.915(c) would be equivalent to Sec.  26.415(b) and 
would enable licensees and other entities to conduct joint audits or 
accept audits of C/Vs so long as the audit addresses the relevant 
services of the C/Vs.
    Proposed Sec.  26.915(d) would be equivalent to Sec.  26.415(c) by 
establishing requirements for the auditing of HHS-certified 
laboratories. Unlike Sec.  26.415(c), the proposal would not contain a 
reference to the U.S. Department of Transportation drug and alcohol 
testing requirements. This would broaden the regulatory flexibility 
afforded to a licensee or other entity in that they may use an offsite 
collection or testing facility that does not meet the Department of 
Transportation requirements.
    Proposed Sec.  26.915(d) would state that licensees and other 
entities need not audit an HHS-certified laboratory if the licensee's 
or other entity's panel of drugs and drug metabolites to be tested is 
equivalent to the panel by which the laboratory is certified by HHS or 
is subject to the standards and procedures for drug testing and 
evaluation used by the laboratory under the HHS Guidelines. The NRC 
would afford this flexibility because the NRC is aware that HHS desires 
to streamline changes in its guidelines to its panel of drugs and drug 
metabolites to be tested. Therefore, if a licensee or other entity 
elects to implement the HHS Guidelines in its procedures and maintains 
the minimum panel of drugs and drug metabolites to be tested as 
required by proposed subpart P, a licensee or other entity may still 
use (and not audit) the HHS-certified laboratory because the proposed 
Sec.  26.903(e) change control process would maintain FFD program 
effectiveness.
    To help ensure FFD program effectiveness, Sec.  26.915(d) would 
also require that collection facility procedures are comparable to 
those required in subpart E of part 26, including a proposed 
requirement that the offsite facility's specimen collection and testing 
procedures are audited on a biennial basis, which is also a protection 
consideration afforded to individuals subject to the FFD program. 
Conducting this audit on a biennial basis would be equivalent to that 
required in Sec.  26.41(b) and would help ensure that the specimen 
collection process at the facility remains effective.
    Proposed Sec.  26.917, ``Recordkeeping, reporting and FFD program 
performance,'' would establish recordkeeping, reporting, and FFD 
program performance requirements similar to those in current Sec.  
26.417, ``Recordkeeping and reporting.'' However, proposed Sec.  26.917 
would require retention of records pertaining to administration of the 
FFD program and FFD performance data required by Sec.  26.717 until 
license termination, which is based on current Sec.  26.711(a) because 
Sec.  26.417 does not provide for a retention period.
    Proposed Sec.  26.917(b)(1) would be identical to the reporting 
requirements in Sec.  26.417(b)(1) regarding the licensee's or other 
entity's FFD program.
    Proposed Sec.  26.917(b)(2) would require the reporting of annual 
(i.e., January through December) FFD program performance data for each 
FFD program subject to proposed subpart P. Licensees and other entities 
would be required to submit the program performance data to the NRC 
before March 1 of the following year. This reporting would be 
equivalent to the annual program performance requirement in Sec.  
26.417(b)(1), and the March 1 due date is based on the reporting 
deadline in Sec.  26.717(e). Licensees and other entities would be 
required to report FFD performance information using NRC-provided forms 
(e.g., new NRC Forms 893, ``Single Positive Test Form, 10 CFR part 26, 
subpart P FFD Program,'' and 894, ``Annual Reporting Form, 10 CFR part 
26, subpart P FFD Program.''
    Proposed Sec.  26.917(b)(3) would require the reporting of drug and 
alcohol testing errors to the NRC within 30 days of completing an 
investigation of any testing errors or unsatisfactory performance, 
discovered at an HHS-certified laboratory or through the processing of 
appeals under proposed Sec.  26.913, or matters that could adversely 
reflect on the integrity of the random selection or random testing 
process. Licensees and other entities would be required to describe in 
the reports the incident and any corrective actions taken or planned.
    Proposed Sec.  26.917(c) would require that FFD-related information 
be shared within the nuclear industry when requested to support 
authorization determinations. This requirement would help individuals 
seeking employment by another NRC-licensed facility subject to subpart 
C of part 26, complete their NRC-required sanctions and licensee-
administered or -directed drug and/or alcohol abuse treatment plans 
before the restoration of authorization by a licensee or other entity. 
Information sharing may also enhance FFD program effectiveness because 
FFD-related lessons learned from, for example, substance testing, 
subversion attempts, and laboratory and MRO performance would have to 
be shared when requested.
    Proposed Sec.  26.917(d) would require that licensees and other 
entities must analyze FFD program performance data at least annually 
and take appropriate actions to correct any identified program 
weakness.
    Proposed Sec.  26.917(e) would require that licensees and other 
entities must document, trend, and correct non-reportable indicators of 
FFD programmatic weaknesses under the licensee's or other entity's 
corrective action program. However, to protect individual privacy, drug 
and alcohol test results could not be tracked in a manner that would 
permit the identification of any individuals.
    Proposed Sec.  26.919, ``Suitability and fitness determinations,'' 
would require

[[Page 23679]]

licensees or other entities to establish a process to evaluate 
individuals when their fitness or trustworthiness and reliability are 
in question. Section 26.919 would be equivalent to Sec.  26.419, 
``Suitability and fitness determinations,'' but, unlike Sec.  26.419, 
would apply during the construction and operation phases. Also, 
proposed Sec.  26.919 would require that a suitability or fitness 
determination conducted for cause be conducted face-to-face. This 
proposed requirement is based on current Sec.  26.189(c); however, 
unlike Sec.  26.189(c), proposed Sec.  26.919 would not prohibit 
augmenting determinations via electronic means of communication (i.e., 
provide sufficient visual and aural clarity to complete the process). 
Instead, proposed Sec.  26.919 would explicitly permit determinations 
to be performed via electronic means and would explain when a trained 
individual must be present in-person with the individual being assessed 
(i.e., only to assist in completing for-cause drug and alcohol testing 
determinations and fatigue assessments).
    In considering the current restriction on the use of electronic 
means of communication for determinations of fitness conducted for 
cause, the NRC finds that since publication of the 2008 part 26 final 
rule, there have been developments in using electronic means of 
communication (i.e., videoconferencing) as an alternative to conducting 
face-to-face interactions. To address these considerations, the NRC 
contracted the Pacific Northwest National Laboratory to study whether a 
medical and mental health assessment via electronic communication could 
be an acceptable alternative to an in-person, face-to-face assessment. 
Based on this study, if electronic means were to be used to conduct a 
face-to-face assessment, an in-person element would still be integral 
to the assessment process. However, under certain circumstances, face-
to-face determinations and assessments conducted as part of an FFD 
program for an entity licensed under proposed part 57 (i.e., those 
determinations and assessments performed in accordance with proposed 
Sec.  26.919, Sec.  26.207, or Sec.  26.211) may be augmented via 
electronic communications. Such remotely conducted determinations and 
assessments would be required to be conducted with someone who is 
present in-person with the individual being assessed and who is trained 
in accordance with the requirements of either Sec.  26.29 and Sec.  
26.203(c) or proposed Sec.  26.908 and Sec.  26.202(c). Permitting the 
use of electronic communications would help ensure FFD program 
effectiveness, especially in instances where the part 57 nuclear plant 
is sited in a geographically remote location, when the facility has a 
small staff size, and when an urgent determination is required.

C. 10 CFR Part 73

    The NRC proposes several conforming changes to its regulations in 
10 CFR part 73. Changes to Sec. Sec.  73.1, 73.2, ``Definitions,'' 
73.8, ``Information collection requirements: OMB approval,'' 73.50, 
``Requirements for physical protection of licensed activities,'' 73.56, 
``Personnel access authorization requirements for nuclear power 
plants,'' 73.57, ``Requirements for criminal history records checks of 
individuals granted unescorted access to a nuclear power facility, a 
non-power reactor, or access to Safeguards Information,'' and 73.58, 
``Safety/security interface requirements for nuclear power reactors,'' 
would be needed to incorporate proposed part 57 into these 
requirements. Changes to Sec.  73.54, ``Protection of digital computer 
and communication systems and networks,'' would require a licensee that 
elects to implement the requirements of Sec.  73.54 to establish and 
implement cybersecurity reviews to assess the effectiveness of the 
implementation of the cybersecurity program. Changes to Sec.  73.77, 
``Cyber security event notifications,'' would incorporate proposed 
Sec.  73.110 into the cyberattack notification requirement and simplify 
the regulation by eliminating specific event notifications and 
redirecting licensees to existing notification processes.
    Proposed Sec.  73.110 would establish requirements for the 
development and maintenance of a cybersecurity program for nuclear 
plants licensed under proposed part 57. This section would implement a 
graded approach to determine the level of cybersecurity protection 
required for digital computers, communication systems, and networks. 
The proposed new section is informed by: (1) the operating experience 
from power reactors and insights from cyber-related assessments of fuel 
cycle facilities; and (2) the existing Sec.  73.54 framework, which 
addresses some of the basic issues for cybersecurity regardless of the 
type of reactor. Differences between the Sec.  73.54 requirements and 
those proposed in Sec.  73.110 are primarily based on the 
implementation of a consequence-based approach to cybersecurity that 
provides flexibility to accommodate the wide range of reactor 
technologies the NRC expects to assess under proposed part 57. A graded 
approach based on consequences would account for the differing risk 
levels among reactor technologies. Specifically, the proposed new 
section would require licensees to demonstrate protection against 
cyberattacks in a manner that is commensurate with the potential 
consequences from those attacks.

D. 10 CFR Part 140

    In this proposed rule, the NRC proposes several conforming changes 
to its regulations in part 140 of this chapter. These conforming 
changes would be needed to include licenses issued under the proposed 
part 57 into the NRC's financial protection requirements and in 
accordance with the requirements set forth in the Price-Anderson Act 
(42 U.S.C. 2210). During the development of this proposed rule, the NRC 
also considered a reduction in the amount of financial protection 
required for facilities licensed under proposed part 57. Facilities 
that would be licensed under proposed part 57 could pose reduced risks 
in comparison to existing facilities, for which the current financial 
protection requirements were established, thereby warranting a reduced 
amount of required financial protection. Upon receipt of a joint 
application under proposed part 57, the NRC would perform the necessary 
review(s) in which to make a technical finding of this presumption. If 
a lesser amount of financial protection were determined to be 
commensurate with the reduced risk profile of the reactor, the NRC 
would exercise its regulatory discretion to establish a reduced amount 
of financial protection for facilities licensed under part 57, based on 
factors such as those specified in the Price-Anderson Act: (A) the cost 
and terms of private insurance; (B) the type, size, and location of the 
licensed activity and other factors pertaining to the hazard; and (C) 
the nature and purpose of the licensed activity.
    Similarly, the NRC could also consider reducing indemnification 
fees for certain licensees. The Price-Anderson Act establishes 
indemnification fees but gives discretion to the NRC to establish lower 
indemnification fees for some licensees. During its review of part 57 
joint applications, the NRC could consider establishing reduced 
indemnification fees for those applicants based on factors such as 
those specified in the Price-Anderson Act: (1) the type, size, and 
location of facility involved, and other factors pertaining to the 
hazard, and (2) the nature and purpose of the facility.

[[Page 23680]]

VII. Specific Requests for Comments

    The NRC is seeking advice and recommendations from the public on 
this proposed rule. We are particularly interested in comments and 
supporting rationale from the public on the following:
    1. Entry Criteria. The NRC is proposing both a dose limit and a 
material limit in proposed Sec.  57.25 as entry criteria for using 
proposed part 57. The technical basis for these criteria are described 
in section V.C of this document. During its public meetings on this 
proposed rule in July 2025, the NRC received feedback from several 
stakeholders requesting that this criterion be removed and the NRC 
instead rely on a single entry criterion of a 1 rem (10 mSv) site 
boundary dose threshold.
     Q1-1: In lieu of applying a deterministic material limit 
on the quantity of SNM to ensure safety, should the Commission consider 
an alternative performance-based entry criterion? Please explain the 
basis for your recommendation.
    2. General License for Construction. During the development of this 
proposed rule, the NRC considered whether it could use a general 
license for rapid deployment of the types of reactors described herein. 
The general license topic is discussed in section IV.C of this document 
and concludes that the NRC cannot license entire utilization facilities 
with a general license because of the limits in the NRC's authority 
under the AEA. However, the NRC did determine that the issuance of a 
general license for some construction activities for ``nth-of-a-kind'' 
reactors would be permissible.
     Q2-1: Besides the general license approach for certain 
construction activities in the proposed rule, are there other general 
licensing approaches for important components parts of utilization 
facilities that would benefit high-volume licensing or other regulatory 
processes for microreactors and other reactors with comparable risk 
profiles? Please explain the basis for your recommendation.
     Q2-2: Given that the NRC anticipates that a review 
timeline for the required part 70 license will align with the timeline 
to complete a safety and security review of reactors via proposed part 
57, would there be any benefits provided by a general license for a 
reactor in addition to the general license for construction activities 
proposed in part 57? Please provide your explanation.
    3. Improvements to Proposed Part 57 Requirements. The NRC developed 
this proposed rule with the intent to establish a risk-informed and 
performance-based regulatory framework for high-volume licensing of 
microreactors and other reactors with comparable risk profiles. The 
proposed rule would provide licensing pathways and streamlined 
requirements with increased flexibility, as compared to that of 10 CFR 
parts 50 and 52, in meeting certain technical requirements. Examples of 
this increased flexibility would include applicants being able to 
specify industry-approved standards such as for QA programs and 
technical codes and standards.
     Q3-1: Should any requirements in proposed part 57 be 
eliminated or made less burdensome or more flexible? If so, which ones? 
For existing requirements in 10 CFR chapter I that are referenced by 
proposed part 57, should any of them be similarly revised to the extent 
that they are relied upon by a proposed part 57 requirement? If so, 
which ones? Please explain the basis for your recommendation.
     Q3-2: Recognizing that part 57 shares similar features 
with part 53, are there any provisions in part 57 that should be 
adapted for part 53 to enhance their complementary nature? For example, 
should the NRC include provisions in part 53 that would provide a 
general license for partial reactor construction or allow applicants to 
reference a general area for siting? If so, what, if any, modifications 
to the language in part 57 would be needed for it to be appropriate in 
part 53?
     Q3-3: Because the proposed part 57 directs licensees to 
use 10 CFR 50.59, which uses the term ``important to safety,'' and that 
term is not used in part 57, should the NRC explain in a guidance 
document how a part 57 licensee should use 10 CFR 50.59 or should the 
final part 57 include its own specific 10 CFR 50.59-like process?
     Q3-4: Is a single notice in the Federal Register for each 
joint application for a construction permit and associated operating 
license(s) sufficient and appropriate for notice for large geographic 
areas? Or should additional measures be employed to put the public on 
notice of a hearing opportunity for a large geographic area, and if so, 
what measures?
     Q3-5: Should the NRC look holistically at the duration of 
renewals for manufacturing licenses, design certifications, and 
standard design approvals across all parts?
     Q3-6: Should the NRC consider periodicities other than the 
proposed 5-year interval for FSAR updates?
    4. Early Site Permit Considerations for Proposed Part 57. Under the 
current regulatory framework, applicants pursuing licenses under 10 CFR 
part 50 must address site suitability, environmental, and emergency 
preparedness issues as part of their CP and OL applications. By 
contrast, 10 CFR part 52 provides an early site permit (ESP) process 
that allows applicants to resolve site-related issues in advance of 
design certification or combined license applications. As interest 
grows in deploying a wider range of advanced reactor technologies, 
including microreactors and other reactors with comparable risk 
profiles, stakeholders have suggested that a similar ESP process for 
applicants for licenses for microreactors and other reactors with 
comparable risk profiles could increase licensing efficiency. Such a 
process could enable early resolution of site issues, reduce 
duplicative reviews, and provide greater certainty to project 
developers while maintaining the NRC's high standards for safety and 
environmental protection.
     Q4-1: Should a proposed part 57-compatible early site 
permit process be developed? Describe the potential value of creating a 
proposed part 57-compatible ESP process, including the benefits and 
drawbacks of such an approach for applicants and stakeholders, and 
whether this process could facilitate more timely and predictable 
licensing outcomes.
     Q4-2: What types of site issues (e.g., seismic, emergency 
planning, tribal consultations) would benefit most from early 
resolution under such a process?
     Q4-3: Would a part 52-type ESP process reduce licensing 
uncertainty and costs for developers, and if so, how?
    5. Decommissioning Considerations for Proposed Part 57. Some 
stakeholders shared with the NRC at the July 2025 public meetings that 
they envision that microreactors could be transported to a facility at 
a different location than the operating site to be decommissioned or 
refurbished and refueled. If refurbished and refueled, the reactor 
would be redeployed for another operating cycle but eventually it would 
permanently cease operation and decommissioning would be necessary.
     Q5-1: Besides the volume of waste, would there be 
differences in the process for refurbishment versus decommissioning of 
the reactor, if both occurred at the same facility, that would be 
important to consider with regard to enabling more efficient and safe 
streamlining of the decommissioning licensing and the license 
termination processes? Please provide a rationale supporting your 
comment.
     Q5-2: The NRC's current regulations generally restrict the 
use of

[[Page 23681]]

decommissioning trust funds to activities conducted after permanent 
cessation of operations, unless an exemption is granted. The NRC has 
received stakeholder interest in accessing decommissioning funds during 
reactor operation for the removal or replacement of major components 
when those activities would ultimately be necessary for 
decommissioning. The NRC is seeking stakeholder input on whether, and 
under what conditions, limited access to decommissioning trust funds 
for such activities during reactor operation should be considered. For 
example, is there an anticipated need to access radiological 
decommissioning funds during operations to facilitate the removal of a 
reactor for refurbishment or other major radioactive component 
disposal? Please provide a rationale supporting your comment.
    6. Release of Part of a Nuclear Plant or Site for Unrestricted Use. 
Under this proposed rule, a licensee would be able to release portions 
of its nuclear plant or site for unrestricted use before license 
termination by license amendment, or by including plans to release 
parts of the site in the decommissioning plan. However, the proposed 
rule does not include a specific provision for release of a part of a 
site for unrestricted use before license termination as licensees can 
request under Sec.  50.83 and Sec.  53.1080. Under those provisions, 
licensees may request a partial site release by providing specific 
information to the NRC, with the extent of the necessary information 
depending on whether the area to be released has been designated as 
``nonimpacted'' or ``impacted.'' The NRC is considering whether 
specific provisions for partial site release, similar to those in parts 
50 and 53, should be included in proposed part 57. In addition, because 
proposed part 57 would include provisions for the NRC to approve 
decommissioning plans well before decommissioning activities would 
commence, the NRC is asking whether there should be differences between 
a provision for releasing part of a site in proposed part 57 and 
similar provisions in parts 50 and 53.
     Q6-1: Should the NRC include a specific provision for 
releasing a part of a nuclear plant or site for unrestricted use before 
license termination in proposed part 57? If so, how should the NRC 
consider adapting the approach in Sec.  50.83 and Sec.  53.1080 to make 
the provision applicable to licensees under proposed part 57?
    7. Transportation Dose Rates for Proposed Part 57. For the 
certification of a transportation package, specific dose rate 
requirements must be met during normal operations, normal conditions of 
transport, and hypothetical accident conditions. For example, under 
Sec.  71.47(a), during normal conditions incident to transport, the 
maximum dose rate cannot exceed 2 millisieverts/hour (2 mSv/h) (or 200 
millirem/hour) (200 mrem/h) at any point on the external surface of the 
package, unless prepared for transport as an exclusive use package 
pursuant to Sec.  71.47(b). Section 71.47(b) has additional operational 
requirements and specified dose rates that include 10 mSv/h (1000 mrem/
h) at any point on the external surface of the package, 2 mSv/h (200 
mrem/h) at any point on the outer surface of the vehicle, 0.1 mSv/h (10 
mrem/h) at any point 2 meters (80 inches) from the outer lateral 
surfaces of the vehicle, and 0.02 mSv/h (2 mrem/h) in any normally 
occupied space, except that this provision does not apply to private 
carriers, if exposed personnel under their control wear radiation 
dosimetry devices in conformance with Sec.  20.1502, ``Conditions 
requiring individual monitoring of external and internal occupational 
dose.'' The additional requirements for Type B packages during accident 
conditions is that no external radiation dose rate may exceed 10 mSv/h 
(1 rem/h) at 1 meter (40 inches) from the external surface of the 
package. These dose rates were developed in coordination with both the 
Department of Transportation and the International Atomic Energy 
Agency. The NRC is considering whether existing dose rate limits for 
the transportation of radioactive material under 10 CFR part 71 remain 
appropriate in light of the anticipated deployment of advanced 
reactors, including microreactors. Microreactors may present unique 
transportation considerations, such as the movement of fueled or 
partially fueled reactors, higher-temperature or higher-burnup fuels, 
increased shipment frequency to support rapid deployment, and near-site 
transport for demonstration projects.
     Q7-1: Provide feedback on the need for alternate dose 
rates for transportable microreactors, the technical basis for those 
alternate dose rates, and the safety implications for those alternative 
dose rates.
     Q7-2: Are there cost-benefit considerations beyond the 
costs and benefits associated with rulemaking (e.g., the costs of 
additional shielding due to lower dose rates) that the NRC should 
consider with respect to alternate dose rates for transportable 
microreactors? Please provide a basis for your response.
     Q7-3: Provide feedback on the impact to international and 
interstate shipments if there were alternate transportation package 
dose rate limits for transportable microreactors.
     Q7-4: What assumptions should the NRC use when estimating 
the number of shipments, exposure scenarios, and expected dose rates 
for fresh and irradiated transportable microreactors? Please provide a 
basis for your response.
    8. Fitness For Duty for Proposed Part 57. The proposed rule would 
allow a licensee or other entity to implement an FFD program of its own 
specification if operator action would not be required to maintain the 
reactor within the criterion of proposed Sec.  57.25(a) or a credible 
operator or maintenance error could not result in exceeding that 
criterion.
     Q8-1: To support licensees developing an FFD program 
tailored to their own specifications, what core elements (such as 
program policy and governance; program scope and applicability; 
behavioral observation; specimen collection and testing; substances 
tested; pre-employment screening; for-cause and post-event measures; 
periodic medical fitness evaluations for licensed reactor operators; 
program-related training; program audits and corrective actions; and 
supportive resources, such as an employee assistance program or other 
equivalent substance abuse counseling) should the NRC include in its 
program requirements or guidance to help licensees ensure the 
trustworthiness, reliability, and fitness of personnel and to support 
FFD program consistency within the industry? Please provide a basis for 
your response.
     Q8-2: What approach or methodology should be used to 
determine whether a credible operator or maintenance error could result 
in exceeding the dose-based entry criterion specified in proposed Sec.  
57.25(a)? Please provide a basis for your response.
     Q8-3: What alternative criteria could be applied to 
proposed Sec.  26.3(f)(3) to determine whether a licensee should be 
permitted to implement an FFD program of its own specification or be 
required to implement either the requirements of part 26 except 
subparts K and P or the program described in proposed subpart P of part 
26? Please provide a basis for your response.
    9. Establishing Schedules for Part 57 Applications in the NRC's 
Contested Hearing Process. In response to the Accelerating Deployment 
of Versatile, Advanced Nuclear for Clean Energy Act of 2024 and E.O. 
14300, section 5(j), the NRC has published a proposed rule to 
streamline the NRC's contested hearing process for licensing 
proceedings (91 FR 10450; March 3, 2026). As part of that proposed 
rule, the NRC proposes to

[[Page 23682]]

establish strict hearing schedules for different types of applications, 
including special requirements for highly expedited proceedings to 
ensure that they are completed more promptly than they otherwise would 
be to support expedited NRC decision-making on the underlying 
applications. These special requirements include shorter filing periods 
(e.g., for hearing requests, answers to hearing requests, new or 
amended contention, and motions) and shorter deadlines for the 
completion of evidentiary hearings. The NRC proposes to establish a new 
term, ``highly expedited proceeding,'' in Sec.  2.4, ``Definitions,'' 
to define which proceedings are subject to these special requirements. 
The rationale and detailed provisions for this proposal are described 
in the proposed rule to streamline the NRC's contested hearing process 
for licensing proceedings.
     Q9-1: Consistent with the objectives of this proposed rule 
to support high-volume licensing of microreactors and other reactors 
with comparable risk profiles, should the NRC include certain proposed 
part 57 applications within the definition of ``highly expedited 
proceeding'' if the NRC issues a final rule modifying the NRC's 
contested hearing process with special requirements for highly 
expedited proceedings? Specifically, when a proposed part 57 
application references an NRC approval providing finality on the design 
in the adjudicatory proceeding, the scope of issues for adjudication 
would be narrow, supporting an even more expedited schedule for filings 
and decisions. Licensee-initiated amendments to proposed part 57 
licenses should be similarly narrow. Therefore, should the NRC include 
these types of proposed part 57 applications within the Sec.  2.4 
definition of ``highly expedited proceeding'' and thereby apply 
requirements for highly expedited proceedings to these applications? If 
these applications were to be included within the scope of highly 
expedited proceedings, should the NRC include the following definition 
of ``highly expedited proceeding'' in Sec.  2.4 (underlined and 
strikeout text shows potential changes to the definition of this term 
in the proposed rule to streamline the NRC's contested hearing 
process):
[GRAPHIC] [TIFF OMITTED] TP01MY26.028

     Q9-2: What hearing schedule requirements should apply to 
proposed part 57 joint applications for construction permits and 
operating licenses that would not be included within the proposed 
definition of ``highly expedited proceeding''? Under the proposed rule 
to streamline the NRC's contested hearing process, 10 CFR part 50 or 52 
applications for new reactor licenses with no design finality in the 
adjudicatory proceeding would be subject to the longest hearing 
schedules because these are considered to be the most complex 
applications. However, proposed part 57 is limited to smaller reactors 
with less complex designs and operational characteristics and low 
potential radiological consequences, which should limit the potential 
complexity of the license application. Also, proposed part 57 is 
intended to support more expedited reviews. Therefore, should the NRC 
treat proposed part 57 applications that are not within the proposed 
definition of ``highly expedited proceeding'' in accordance with the 
proposed hearing schedules that would apply to most types of license 
applications, such as 10 CFR part 54 license renewals, rather than the 
longer hearing schedules reserved for the most complex applications? 
Please provide a basis for your response.
    10. Remote Operations and Autonomous Operations. Proposed part 57 
would allow remote operations and autonomous operations, which is 
expected to be a paradigm shift for the nuclear industry and the NRC.
     Q10-1: Should the NRC allow remote operations and 
autonomous operations of nuclear power plants that demonstrate low 
consequences? What, if any, additional requirements and guidance are 
necessary for the regulatory review of remote operation and autonomous 
operation as part of the rapid licensing envisioned under part 57? 
Please provide a basis for your response.
    11. Application of the Single Failure Criterion. Applicants are 
encouraged to balance their selected risk assessment methods between 
traditional deterministic approaches such as application of single 
failure criterion methodologies (see SECY-77-439) with risk-insights 
(see SRM-SECY-19-0036) as the most effective path forward to achieving 
rapid and streamlined licensing decisions. While the single failure 
criterion is a cornerstone of nuclear safety, the NRC recognizes that 
it is not sufficient by itself for ensuring reasonable assurance of 
adequate protection. Instead, it serves as just one analytical tool 
within a broader, multi-layered framework, designed to achieve reliable 
shutdown, cooling, and accident mitigation of a facility. The 
Commission's ``Policy Statement on the Regulation of Advanced 
Reactors'' (73 FR 60612, October 14, 2008) includes expectations that 
advanced reactors will provide enhanced margins of safety and/or use 
simplified, inherent, passive, or other innovative means to accomplish 
their safety and security functions. The policy statement provides 
examples of design attributes that could assist in establishing the 
acceptability or licensability of a proposed advanced reactor design 
and explains that incorporating these attributes may promote more 
efficient and effective design reviews. However, some licensing 
problems continue to exist in specific interpretations and applications 
of the single failure criterion for advanced reactor designs. Some of 
these issues were described in

[[Page 23683]]

SRM-SECY-19-0036, and the Commission directed the NRC staff to apply 
risk-informed principles when strict, prescriptive application of 
deterministic criteria such as the single failure criterion is 
unnecessary to provide for reasonable assurance of adequate protection 
of public health and safety.
     Q11-1: To what extent should the proposed part 57 
implementation guidance consider the single failure criterion as a 
desired attribute to enhance reliability and defense in depth, rather 
than as a limiting factor in determining whether reasonable assurance 
of adequate protection exists for advanced reactor designs with 
enhanced margins of safety and/or that use simplified, inherent, 
passive, or other innovative means to accomplish their safety and 
security functions? Please provide a basis for the response.
     Q11-2: Are there criteria or methods that can be included 
in the proposed part 57 implementation guidance that provide balance 
between the use of deterministic methods such as the single failure 
criterion and applicant-derived risk information to provide for 
reasonable assurance of adequate protection of public health and 
safety? Please provide a basis for the response.
    12. Alternatives considered in the Regulatory Analysis. The NRC 
invites comment on the alternatives considered and the rationale for 
establishing proposed part 57 rather than using other frameworks (i.e., 
part 50, part 52, or part 53).
     Q12-1: Are the NRC's conclusions--existing pathways 
designed for large or specialized facilities (e.g., part 52 with 
inspections, tests, analyses, and acceptance criteria (ITAAC) or part 
50 requirements tailored to large LWRs) would impose unnecessary burden 
and extend review timelines for microreactors--accurate and 
sufficiently supported?
     Q12-2: What additional, intermediate, or hybrid 
alternatives (e.g., targeted modifications to part 52, streamlined 
ITAAC constructs, or scoped use of part 53 elements) should the NRC 
evaluate to meet the statutory objectives while minimizing cost and 
schedule impacts? Please provide data, examples, or suggested 
regulatory text that could enable rapid, high-volume licensing of 
microreactors within or alongside existing regulations.

VIII. 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 economic impact on a substantial number of small 
entities. This proposed rule affects only the licensing and operation 
of nuclear power plants. The companies that own these plants do not 
fall within the scope of the definition of ``small entities'' set forth 
in the Regulatory Flexibility Act or the size standards established by 
the NRC (10 CFR 2.810).

IX. Regulatory Analysis

    The NRC has prepared a draft regulatory analysis on this proposed 
regulation. The analysis examines the costs and benefits of the 
alternatives considered by the NRC. The conclusion from the analysis is 
that this proposed rule and associated guidance would result in net 
averted costs (cost savings) to the industry and the NRC of 
approximately $3.76 billion using a 7-percent discount rate and $11.84 
billion using a 3-percent discount rate due to reductions in exemption 
requests. The analysis also assumes 2,235 applicants under part 57 over 
the 40 years of the analysis. As the number of applicants increases, so 
do the estimated averted costs. The NRC requests public comment on the 
draft regulatory analysis, which is available as indicated in the 
``Availability of Documents'' section of this document. Comments on the 
draft analysis may be submitted to the NRC as indicated under the 
ADDRESSES caption of this document.

X. Backfitting and Issue Finality

    This section describes the backfitting and issue finality 
implications of this proposed rule and the draft guidance document 
described in section XVIII, ``Availability of Guidance,'' of this 
document, as applied to pertinent NRC approvals and certain applicants 
that reference NRC approvals in their applications. The NRC's current 
backfitting provisions relevant to this proposed rule appear in Sec.  
50.109, Sec.  70.76, and Sec.  72.62, all entitled ``Backfitting,'' and 
apply to holders of construction permits and operating licenses for 
commercial and industrial purposes under part 50, holders of licenses 
under part 70, and holders of general or specific licenses under part 
72, respectively. Issue finality provisions (analogous to the 
backfitting provisions in Sec.  50.109) for approvals under part 52 are 
in various provisions of part 52. The NRC Management Directive 8.4, 
``Management of Backfitting, Forward Fitting, Issue Finality, and 
Information Requests,'' describes the Commission's policies on 
backfitting and issue finality.
    This proposed rule would provide a regulatory scheme for entities 
to apply for approvals under parts 30, 40, 57, 70, 71, and 72. The 
parts 50, 70, and 72 backfitting provisions and part 52 issue finality 
provisions apply to actions taken by the NRC under parts 50, 70, 72, 
and 52, respectively, or actions taken by the NRC under other parts of 
10 CFR chapter I that, for holders of certain approvals under part 50, 
70, 72, or 52, inextricably affect their activities regulated under 
part 50, 70, 72, or 52, respectively. Issuance and implementation of 
proposed part 57 would not constitute actions taken under part 50, 70, 
72, or 52. Therefore, the issuance and implementation of proposed part 
57 would not affect part 50, 70, 72, or 52 entities' activities 
regulated under those parts. The addition of part 57 through this 
proposed rule would not be within the scope of the part 50, 70, or 72 
backfitting or part 52 issue finality provisions.
    The NRC also proposes conforming changes to parts 1, 2, 10, 11, 19, 
20, 21, 25, 26, 30, 40, 50, 51, 70, 72, 73, 74, 75, 95, 140, and 150 to 
reflect the addition of part 57 (see section VI.A of this document). 
These changes would not meet the definition of ``backfitting'' in Sec.  
50.109 or Sec.  70.76 because the proposed changes would not modify or 
add to the systems, structures, components, or design of a facility or 
to the procedures or organization required to operate a facility under 
part 50 or 70. These changes would not meet the definition of 
``backfitting'' in Sec.  72.62 because the proposed changes would not 
add, eliminate, or modify the SSCs of an independent spent fuel storage 
installation or the procedures or organization required to operate an 
independent spent fuel storage installation. These proposed changes 
would not inextricably affect activities regulated under parts 50, 52, 
70, or 72. Therefore, the proposed changes to parts 1, 2, 10, 11, 19, 
20, 21, 25, 26, 30, 40, 50, 51, 70, 72, 73, 74, 75, 95, 140, and 150 
would not constitute backfitting under parts 50, 70, or 72 or affect 
the issue finality of an approval under part 52.
    The NRC is issuing one draft guidance document that, if issued as a 
final guidance document, would provide guidance on the methods 
acceptable to the NRC for complying with aspects of this proposed rule. 
This guidance would not apply to holders of approvals issued under part 
50 or part 52. Although the guidance could apply to holders of part 70 
or part 72 licenses, the guidance would apply to them only in relation 
to a part 57 license, and there would be no

[[Page 23684]]

part 57 licenses at the time the final guidance is issued. Further, as 
discussed in the guidance documents, applicants and licensees would not 
be required to comply with the positions set forth in the guidance. 
Therefore, issuance of the guidance documents as final guidance would 
not constitute backfitting under part 50, 70, or 72 or affect the issue 
finality of any approval issued under part 52.

XI. Cumulative Effects of Regulation

    The NRC seeks to minimize potential negative consequences resulting 
from the cumulative effects of regulation (CER). 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 CER 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 supports this proposed rule.

XII. 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.

XIII. Environmental Assessment and Proposed Finding of No Significant 
Environmental Impact

A. Introduction

    The NRC has prepared this environmental assessment (EA) in 
compliance with the agency's environmental review requirements 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. This EA 
evaluates and documents the potential environmental impacts resulting 
from the proposed rulemaking related to amending the regulations by 
creating an alternative regulatory framework for licensing 
microreactors and other reactors with comparable risk profiles.
    Sections III and IV of this document provide the background 
regarding E.O. 14300, the proposed action, along with the purpose of 
and need for the proposed action. Section V of this document describes 
the structure of the proposed part 57. Further discussion of these 
topics does not need to be repeated in this EA. The organization of 
this EA addresses the conforming changes under this proposed part 57 
rule, environmental impacts of the proposed action, the environmental 
impacts of the alternative to the proposed action, agencies and persons 
consulted, proposed finding of no significant environmental impacts, 
stakeholder interactions, and the references noted in this EA.

B. Conforming Changes

    This rulemaking would make conforming changes throughout 10 CFR 
chapter I. Table B.1-1 lists the chapter I parts with conforming 
changes for this proposed rule. Most of these changes would only insert 
the appropriate part 57 cross-reference and are considered 
administrative changes.

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C. Environmental Impacts of the Proposed Action

    Most of the subparts to the proposed part 57 are related to 
establishing programs and related procedures rather than actions 
requiring technical analysis with approved methodologies or guidance. 
Additionally, many of these subparts establish technical requirements 
that would be equivalent to companion regulations under 10 CFR part 21, 
part 50, part 52, part 70, part 71, part 72, part 73, and part 74. 
Thus, these subparts are procedural provisions or incorporate similar 
requirements as existing regulations and are not substantive 
environmentally different regulations. Therefore, since this group of 
subparts would generally address administrative, procedural processes, 
and technical requirements equivalent to ones under various parts under 
10 CFR, their implementation would result in no significantly different 
environmental impacts under this rule. The proposed part 57 subpart 
regulations with their equivalent regulations are listed in Table C-1.
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BILLING CODE 7590-01-C

C.1 Part 57 Subparts Not Related to Existing 10 CFR Regulations

Subpart C--Construction Permits and Operating Licenses
    As noted in Table C-1, proposed subpart C would contain several 
sections that would be similar to existing regulations in part 50. 
Proposed part 57 also relies upon regulatory radiological limits under 
10 CFR part 20 and an entry criterion of 1 rem (10 mSv) dose threshold 
to any individual located in the unrestricted area. Similarly, for 
other facilities with comparable risk profiles, such as research 
reactors licensed under 10 CFR part 50, the NRC applies the 
radiological limit requirements in 10 CFR part 20 and a comparable 
accident dose criterion of 1 rem (10 mSv), as specified in Sec.  
50.34(a)(1)(i). Other regulations under proposed subpart C would be new 
regulations that would also provide assurance that the complete design 
had been reviewed and approved by the NRC or are related to required 
processes and procedures necessary to further support such reasonable 
assurance.
    Proposed Sec.  57.45(d) would establish a general license for 
construction activities on a site that is specified in a joint 
application for a construction permit and associated operating 
license(s) under proposed part 57, subject to certain conditions. These 
conditions would include requirements that the application references a 
reactor of the same design that had been constructed and placed into 
operation under Commission oversight and that had met the criteria for 
a categorical exclusion under the regulations in proposed subpart K of 
part 57. In addition, the proposed Sec.  57.45(d)(4) would require that 
the general licensee must not allow special nuclear material or 
radioactive material that would be associated with operation under an 
operating license issued pursuant to proposed part 57 to be brought to 
the site under the general license. Therefore, the activities that 
would be conducted under the general license would not give rise to 
nuclear or radiological hazards. Also, proposed Sec.  57.45(d)(1)(iii) 
would require that the application submitted by the general licensee 
would include a plan for redress of any adverse environmental impact 
from conduct of activities under the general license should such 
redress be necessary.
    Therefore, the regulations under proposed subpart C would provide 
the

[[Page 23692]]

same level of protection of public health and safety as existing 
regulations, and there would be no significantly different 
environmental effects with implementing this new regulation.
Subpart D--Manufacturing Licenses
    As previously noted, the proposed subpart D would address 
applications for, issuance of, and other provisions related to MLs 
covering manufacturing activities at one or more licensee facilities. 
These proposed requirements would be largely equivalent to those in 
part 52 for MLs. The most significant change proposed for MLs in part 
57 as compared to MLs under part 52 relates to proposed Sec.  
57.197(d), which would allow and establish requirements for the loading 
of fuel into a manufactured reactor at the manufacturing site for 
subsequent transport to a nuclear plant that would be constructed 
pursuant to a CP that would be issued under proposed part 57. Because 
the proposed Sec.  57.197(d) would cite the requirements in 10 CFR 
parts 70 and 73 to ensure important features and programs are in place 
prior to the receipt of SNM, the same level of reasonable assurance of 
adequate protection of public health and safety would be maintained as 
for currently licensed operating plants for their receipt of SNM. Thus, 
implementation of subpart D would provide an equivalent level of 
reporting, administrative, and safety requirements as the current ML 
and fuel possession and loading regulatory framework with no 
significant environmental impacts.
Subpart K--Categorical Exclusions
    Categorical exclusions provide a mechanism to identify types of 
Federal actions that normally do not have significant environmental 
effects to the human environment and for which neither an environmental 
assessment nor environmental impact statement is normally required. 
This ensures that resources are not expended conducting environmental 
analysis of proposals that do not present potential for significant 
environmental impacts. The proposed Sec.  57.350 establishes the 
criteria for determining whether a categorial exclusion applies in 
support of a license under this part. Additionally, determining whether 
a categorical exclusion applies is a NEPA process to inform the 
decision-maker of the environmental impacts for issuing a license and, 
thus, an administrative step. Therefore, there would be no significant 
environmental effects with implementing this proposed new categorical 
exclusion regulation.
C.2 Changes to Other Parts of Chapter 10 of the CFR
C.2.1 10 CFR Part 25
    The conforming changes to part 25 for activities in connection with 
the proposed part 57 are a revision to a definition, the addition of a 
reference regarding access authorizations for individuals who need 
access to classified information, and an update to apply the 
requirements for classified visits to licensees and applicants under 
proposed part 57. Therefore, these changes to part 25 would be at a 
level equivalent to the current 10 CFR part 25 regulatory framework and 
its implementation would have no significantly different environmental 
impacts.
C.2.2 10 CFR Part 26
    As stated in section VI.B. of this document, proposed part 57 would 
add a new subpart P in 10 CFR part 26, ``Fitness for Duty Programs,'' 
and make other conforming changes to existing part 26 provisions. The 
NRC proposes a flexible, technology-inclusive, risk-informed, and 
performance-based approach with options to the application of drug and 
alcohol testing and fatigue management requirements for facilities 
licensed under proposed part 57. Proposed part 57 licensees and other 
entities could implement requirements in proposed subpart P of part 26, 
all the requirements of part 26 except subparts K and P, or an FFD 
program of their specification. Notwithstanding the type of FFD program 
a licensee or other entity would implement, the licensees and other 
entity that would apply for or have been issued an OL or CP under 
proposed part 57 would be required, no later than the start of 
construction activities, to implement the FFD program. Holders of an ML 
under proposed part 57 would be required to implement their FFD program 
before commencing activities that assemble a manufactured reactor.
    Concerning an FFD program of their specification, licensees and 
other entities that would apply for or would have been issued an OL or 
CP under proposed part 57, and holders of an ML under proposed part 57, 
could elect to implement an FFD program of their specification only if 
the licensee's or other entity's reactor manufactured under an ML 
issued under proposed part 57, constructed under a construction permit 
issued under proposed part 57, or operated under an OL issued under 
proposed part 57, as applicable, would not require operator action to 
maintain the reactor within the criterion of proposed Sec.  57.25(a) or 
a credible operator or maintenance error could not result in exceeding 
that criterion.
    The FFD requirements would be commensurate with the radiological 
risks presented by the facilities in question (i.e., reactors with 
comparable risk profiles). The NRC used operating experience to propose 
regulatory flexibility in the new FFD framework to help support a 
licensee's or other entity's response to changes in societal drug use, 
drug testing technologies and processes, and FFD program performance. 
The flexibility would also help in FFD implementation because of the 
wide variety of staff sizes anticipated at different facilities 
licensed under proposed part 57 and the geographically remote locations 
in which these facilities may be sited. Therefore, an FFD program 
implemented under this proposed rule would be at a level of risk-
informed equivalency to the current 10 CFR part 26 regulatory framework 
ensuring adequate protection of the public health and safety while 
providing flexibility to a proposed part 57 license, and its 
implementation would have no significantly different environmental 
impacts.
C.2.3 10 CFR Part 51
    Additional text under 10 CFR 51.4, ``Definitions,'' for 
``construction'' would point to the definition of ``construction'' 
under Sec.  57.3 to account for differences among that definition and 
the definitions of ``construction'' under 10 CFR parts 50 and 52. This 
proposed change to the definition of ``construction'' in 10 CFR part 51 
would be administrative in application and, as such, would not have a 
significant environmental impact.
C.2.4 10 CFR Part 73
    Changes to part 73 in support of proposed part 57 address 
cybersecurity programs by implementing a graded approach to determine 
the level of cybersecurity protection required for digital computers, 
communication systems, and networks. The changes are based on (1) the 
operating experience from power reactors and insights from cyber-
related assessments of fuel cycle facilities; and (2) the existing 
Sec.  73.54 framework. Differences between the Sec.  73.54 requirements 
and those proposed by part 57 changes to part 73 are primarily based on 
the implementation of a consequence-based approach to cybersecurity. 
This consequence-based approach would provide flexibility to 
accommodate the wide range of reactor technologies and would account 
for the differing risk

[[Page 23693]]

levels among reactor technologies. Specifically, the proposed new 
section would require licensees to demonstrate reasonable assurance of 
protection against cyberattacks in a manner that is commensurate with 
the potential consequences from those attacks. Thus, the part 73 
changes in this rule would provide a similar level of protection from 
cyberattack as the current regulations and its implementation would 
have no significantly different environmental impacts.
C.3 Summary of the Environmental Impacts of the Proposed Action
    With regard to potential environmental effects, implementation of 
the proposed part 57 rule would not have a significant environmental 
impact. Proposed requirements would be administrative in application, a 
matter of procedure, or would provide an equivalent level of safety and 
security for protection of public health and safety as existing 
regulations with no significant environmental effects to the human 
environment with implementing this new regulation.
    In addition, requirements under proposed part 57 would not affect 
any threatened or endangered species or historic properties since this 
proposed rule would result in no physical changes to the environment.
    Accordingly, the NRC finds that this proposed rulemaking action 
would not have a significant effect on the quality of the human 
environment.

D. Environmental Impacts of the Alternative to the Proposed Agency 
Action

    Under the no-action alternative (i.e., the status quo), the 
regulations would not change. Licensees would continue to be required 
to meet current regulations (namely, 10 CFR part 50 and 10 CFR part 52) 
or seek relief using the existing regulatory framework. As stated in 
section C of this EA, the proposed rule would not result in a 
significant impact on the environment because reactors licensed under 
the proposed part 57 are expected to have a smaller impact on the 
affected environment than plants licensed under the current 
regulations, and the proposed rule would offer an equivalent level of 
safety as provided by the current regulations. This rulemaking provides 
an additional option to existing processes to license a microreactor or 
other reactor with a comparable risk profile and does not add any 
additional environmental requirements. Therefore, there would be no 
difference in environmental impacts between the no-action alternative 
and the proposed rule. The NRC would analyze the environmental impacts 
of a license application under existing regulations and guidance for 
the no-action alternative and would continue to analyze the 
environmental impacts of applications, exemptions, and license 
amendment requests on a case-by-case basis. The NRC describes the costs 
and benefits of the no-action alternative and the proposed action in 
the regulatory analysis for the proposed rule.

E. Agencies and Persons Consulted

    The NRC developed the proposed rule and is requesting public 
comment on this draft EA. The NRC intends to hold a public meeting 
during the proposed rule comment period to allow stakeholders to ask 
questions about the proposed rule and this 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 proposed rule is one step in the rulemaking process. During the 
development of this proposed rule, the NRC conducted public meetings 
and other interactions with stakeholders related to the development of 
the part 57 regulations. Table G-1 in Section G of this EA provides 
details about stakeholder interactions.
    The proposed rule would provide an equivalent level of safety as 
the current regulations in 10 CFR part 50 and 10 CFR part 52 and would 
result in no significant impact on the environment. As such, the 
rulemaking would not impact threatened or endangered species or 
critical habitat; the NRC has determined that a section 7 consultation 
under the Endangered Species Act is not necessary. Likewise, the NRC 
has determined that the proposed rulemaking would not cause any adverse 
effects to historic properties. Therefore, the NRC has determined that 
no consultation is required under section 106 of the National Historic 
Preservation Act.

F. Proposed Finding of No Significant Environmental Impacts

    The Commission has determined under the National Environmental 
Policy Act of 1969, as amended, and the Commission's regulations in 10 
CFR part 51, that this rule, if adopted, would not be a major Federal 
action significantly affecting the quality of the human environment, 
and an environmental impact statement is not required. The basis of 
this determination is that NRC's proposed action (rulemaking) would 
provide adequate protection of the public health and safety and common 
defense and security for microreactors and reactors with comparable 
risk profiles without the need to grant specific exemptions or license 
amendments in certain regulatory areas. Rulemaking would reduce the 
need for exemptions from existing regulations and license amendment 
requests and would support the principles of good regulation, including 
openness, clarity, and reliability. Therefore, the proposed rulemaking 
meets the need for the proposed agency action.
    The determination of this EA is that this proposed agency action 
would not have a significant effect on the quality of the human 
environment. Public stakeholders should note, however, that comments on 
any aspect of this EA may be submitted to the NRC as indicated under 
the ADDRESSES caption.
    The NRC has sent a copy of the EA and this proposed rule to every 
State Liaison Officer and has requested comments.

G. Stakeholder Interactions

    The stakeholder interactions for part 57 thus far are listed in 
Table G-1 for interactions between the NRC and stakeholders during 
public meetings and communications on issues related to the part 57 
rulemaking. The NRC received feedback from various stakeholders on part 
57 during or as a result of these interactions.

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H. Environmental Assessment References

U.S. Department of Defense (DOD). 2025a. Department of Defense 
National Environmental Policy Act Implementing Procedures. https://www.denix.osd.mil/nepa/denix-files/sites/55/2025/06/DoD-NEPA-Procedures-FINAL.pdf. June 30, 2025.
U.S. Department of Defense (DOD). 2025b. Department of Defense 
National Environmental Policy Act Implementing Procedures: Appendix 
A Department of Defense Categorical Exclusions (CATEX). https://www.denix.osd.mil/nepa/denix-files/sites/55/2025/06/DOD-NEPA-Procedures-APPENDIX-A_FINAL.pdf. June 30, 2025.
U.S. Department of Energy (DOE). 2025. Revision of National 
Environmental Policy Act Implementing Procedures. Interim final 
rule; request for comments. DOE-HQ-2025-0026, RIN 1990-AA52. https://federalregister.gov/d/2025-12383. July 3, 2025.

XIV. 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). This proposed rule has been submitted to the Office of 
Management and Budget (OMB) for review and approval of the information 
collections.
    Type of submission: New.
    The title of the information collection: Licensing Requirements for 
Microreactors and Other Reactors with Comparable Risk Profiles.
    OMB Approval Numbers: (3150-0002, 3150-0024, 3150-0090, 3150-0104, 
3150-0146, 3150-0238, 3150-0272, and 3150-XXXX).
    The form number if applicable: NRC Forms 361T, 366, 366A, 366B, 
396, 398, 893, and 894.
    How often the collection is required or requested: Once, on 
occasion, every 30 days, biannually, annually, biennially, every four 
years, every five years, every ten years.
    Who will be required or asked to respond: Part 57 licensees and 
license applicants for reactors to be licensed under part 57.
    An estimate of the number of annual responses:
    10 CFR part 26: 1,576.6 (13 reporting responses + 5.7 recordkeepers 
+ 1,557.9 third-party disclosures).
    10 CFR part 57: 376.4 (33.9 reporting responses + 9 recordkeepers + 
333.5 third-party disclosures).
    10 CFR part 73: 2.7 (0 reporting responses + 2.7 recordkeepers + 0 
third-party disclosures).
    NRC Form 361T: 18 reporting responses.
    NRC Forms 366, 366A, and 366B: 13 reporting responses.
    NRC Form 396: 68 (34 reporting responses + 34 recordkeepers).
    NRC Form 398: 34 reporting responses.
    NRC Forms 893 and 894: 312 reporting responses.
    The estimated number of annual respondents:
    10 CFR Part 26: 5.7 respondents.
    10 CFR Part 57: 9 respondents.
    10 CFR Part 73: 2.7 respondents.
    NRC Form 361T: 3.7 respondents.
    NRC Forms 366, 366A, and 366B: 3.7 respondents.
    NRC Form 396: 2.3 respondents.
    NRC Form 398: 2.3 respondents.
    NRC Forms 893 and 894: 3.7 respondents.
    An estimate of the total number of hours needed annually to comply 
with the information collection requirement or request:
    10 CFR Part 26: 7,458.7 (113.5 reporting + 6,320.3 recordkeeping + 
1,024.9 third-party disclosures).
    10 CFR Part 57: 1,013,327.8 (971,607.4 reporting + 41,637.0 
recordkeeping + 83.4 third-party disclosures).
    10 CFR Part 73: 3,898.2 (0 reporting + 3,898.2 recordkeeping + 0 
third-party disclosures).
    NRC Form 361T: 9.
    NRC Forms 366, 366A, and 366B: 832.
    NRC Form 396: 42.5.
    NRC Form 398: 87.
    NRC Forms 893 and 894: 578.
    Abstract: The NRC is proposing to establish a risk-informed and 
performance-based regulatory framework for rapid licensing of new 
microreactors and other reactors with comparable risk profiles and for 
high-volume deployment of these reactors, consistent with the licensing 
framework for non-power production or utilization facilities. The 
proposed rule would provide a flexible set of licensing pathways, 
reduce regulatory burden, and ensure that safety and security 
requirements remain commensurate with the potential hazards posed by 
these facilities. The NRC's goal in this rulemaking is to expedite the 
licensing process for microreactors and other reactors with comparable 
risk profiles.
    The proposed rule covers diverse topics, which result in 
recordkeeping and reporting requirements related to construction and 
manufacturing, contents of applications, plant design and analysis, 
facility operations, decommissioning, FFD, physical security, 
cybersecurity, siting, programs, staffing, and quality assurance.
    In addition to the new information collections in the proposed 
regulations, proposed part 57 would result in new collections via NRC 
Forms 361T, 366, 366A, 366B, 396, 398, 893, and 894. A new version of 
NRC Form 361 (NRC Form 361T) would be created for use by proposed part 
57 licensees, covering an equivalent scope as the requirements in Sec.  
50.72, but without LWR-specific terminology to ensure technology 
inclusiveness. NRC Forms 366, 366A, and 366B would be modified to 
include reportable events in proposed part 57, subpart Q, covering an 
equivalent scope as the requirements in Sec.  50.73, but without LWR-
specific terminology to ensure technology inclusiveness. NRC Forms 396 
and 398 would be modified to satisfy requirements in proposed part 57, 
subpart P, to certify the medical fitness of an applicant for an 
operator or senior operator license. Finally, the proposed rule would 
require part 57 licensees to use NRC Forms 893 and 894 to report on 
positive drug and alcohol test results (NRC Form 893) and annual 
fitness-for-duty program performance

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(NRC Form 894), as required in proposed Sec.  26.917.
    The NRC is seeking public comment on the potential impact of the 
information collections contained in this proposed rule and on the 
following issues:
    1. Is the proposed information collection necessary for the proper 
performance of the functions of the NRC, including whether the 
information will have practical utility? 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? Please explain 
your response.
    A copy of the OMB clearance package and proposed rule are available 
in the ``Availability of Documents'' section of this document 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 
https://www.regulations.gov under Docket ID NRC-2025-0379.
    You may submit comments on any aspect of these proposed information 
collection(s), including suggestions for reducing the burden and on 
these issues, by the following method:
     Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2025-0379.
    Submit comments by June 1, 2026.

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.

XV. Executive Orders

    The following are Executive orders that are related to this 
proposed rule:

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 an economically significant 
regulatory action. Accordingly, the NRC submitted this proposed rule to 
OIRA for review. The NRC is required to conduct an economic analysis in 
accordance with section 6(a)(3)(B) of E.O. 12866. More information can 
be found in section IX, ``Regulatory Analysis,'' of this document.

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 tentatively determined to be a deregulatory action 
as defined by E.O. 14192. Details on the estimated costs of this 
proposed rule can be found in Section IX, 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 
required because they would be necessary for providing reasonable 
assurance of adequate protection of public health and safety and 
provide for the common defense and security, and would be part of the 
NRC's permitting regime authorized by the AEA. Therefore, the NRC views 
this rulemaking to be outside the scope of E.O. 14270 and does not 
propose to insert conditional sunset dates for the regulatory changes 
in this proposed rule.

E. Executive Order 14294: Fighting Overcriminalization in Federal 
Regulations

    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 issuing this 
proposed rule that would add a new part 57 and amend 10 CFR parts 19, 
20, 21, 25, 26, 30, 40, 50, 70, 72, 73, 74, 95, and 140 under one or 
more of sections 161(b), 161(i), or 161(o) of the AEA, except as noted 
in Sec. Sec.  19.40(b), 20.2402(b), 21.62(b), 25.39(b), 26.825(b), 
30.64(b), 40.82(b), 50.111(b), 57.385(b), 70.92(b), 72.86(b), 73.81(b), 
74.84(b), 95.63(b), and 140.89(b). The applicability of criminal 
penalties to regulations in parts 19, 20, 21, 25, 26, 30, 40, 50, 57, 
70, 72, 73, 74, 95, and 140 is set forth in Sec. Sec.  19.40, 20.2402, 
21.62, 25.39, 26.825, 30.64, 40.82, 50.111, 57.385, 70.92, 72.86, 
73.81, 74.84, 95.63, and 140.89, respectively. Willful violations of 
the 10 CFR parts 19, 20, 21, 25, 26, 30, 40, 50, 57, 70, 72, 73, 74, 
95, and 140 regulations, other than those listed in Sec. Sec.  
19.40(b), 20.2402(b), 21.62(b), 25.39(b), 26.825(b), 30.64(b), 
40.82(b), 50.111(b), 57.385(b), 70.92(b), 72.86(b), 73.81(b), 74.84(b), 
95.63(b), and 140.89(b) (including as updated by this proposed rule), 
would be subject to criminal enforcement.

XVI. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, 
Public Law 104-113, requires that Federal agencies use technical 
standards that are developed or adopted by voluntary consensus 
standards bodies unless the use of such a standard is inconsistent with 
applicable law or otherwise impractical. In this proposed rule, the NRC 
will revise regulations by adding a regulatory framework for 
microreactors and other reactors with comparable risk profiles. This 
action does not constitute the establishment of a standard that 
contains generally applicable requirements.

XVII. Availability of Guidance

    The NRC is issuing draft guidance in NUREG-2271, ``Guidelines for 
Preparing and Reviewing Applications Under 10 CFR part 57,'' for 
implementation of the proposed requirements in this rulemaking. The 
draft guidance is available in ADAMS under Accession No. ML25259A304. 
When finalized, NUREG-2271 would provide stakeholders with guidance for 
implementing the final requirements contemplated by this proposed rule. 
You may submit comments on the draft regulatory guidance by the methods 
outlined in the ADDRESSES section of this document.

XVIII. Public Meeting

    The NRC will conduct a public meeting on the proposed rule for the 
purpose of describing the proposed rule to the public and answering 
questions

[[Page 23696]]

from the public to facilitate public comments on the proposed rule.
    The NRC will publish a notice of the location, time, and agenda of 
the meeting in the Federal Register, on Regulations.gov, and on the 
NRC's public meeting website within at least 10 calendar days before 
the meeting. Stakeholders should monitor the NRC's public meeting 
website for information about the public meeting at: https://www.nrc.gov/public-involve/public-meetings/index.cfm.

XIX. 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.
BILLING CODE 7590-01-P

[[Page 23697]]

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[[Page 23699]]


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BILLING CODE 7590-01-C
    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-2025-0379. 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-2025-0379); (2) click 
the ``Subscribe'' link; and (3) enter an email address and click on the 
``Subscribe'' link.

List of Subjects

10 CFR Part 1

    Flags, Organization and functions (Government Agencies), Seals and 
insignia.

10 CFR Part 2

    Administrative practice and procedure, Antitrust, Byproduct 
material, Classified information, Confidential business information, 
Freedom of information, Environmental protection, Hazardous waste, 
Nuclear energy, Nuclear materials, Nuclear power plants and reactors, 
Penalties, Reporting and recordkeeping requirements, Sex 
discrimination, Source material, Special nuclear material, Waste 
treatment and disposal.

10 CFR Part 10

    Administrative practice and procedure, Classified information, 
Government employees, Security measures.

10 CFR Part 11

    Hazardous materials transportation, Investigations, Nuclear energy, 
Nuclear materials, Penalties, Reporting and recordkeeping requirements, 
Security measures, Special nuclear material.

[[Page 23702]]

10 CFR Part 19

    Criminal penalties, Environmental protection, Nuclear Energy, 
Nuclear materials, Nuclear power plants and reactors, Occupational 
safety and health, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Sex discrimination.

10 CFR Part 20

    Byproduct material, Criminal penalties, Fusion, Hazardous waste, 
Licensed material, Nuclear energy, Nuclear materials, Nuclear power 
plants and reactors, Occupational safety and health, Packaging and 
containers, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Source material, Special nuclear material, 
Waste treatment and disposal.

10 CFR Part 21

    Nuclear power plants and reactors, Penalties, Radiation protection, 
Reporting and recordkeeping requirements.

10 CFR Part 25

    Classified information, Criminal penalties, Investigations, 
Penalties, Reporting and recordkeeping requirements, Security measures.

10 CFR Part 26

    Administrative practice and procedure, Alcohol abuse, Alcohol 
testing, Appeals, Drug abuse, Drug testing, Employee assistance 
programs, Fitness for duty, Management actions, Nuclear power plants 
and reactors, Privacy, Protection of information, Radiation protection, 
Reporting and recordkeeping requirements.

10 CFR Part 30

    Byproduct material, Criminal penalties, Fusion, Government 
contracts, Intergovernmental relations, Isotopes, Nuclear energy, 
Nuclear materials, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Whistleblowing.

10 CFR Part 40

    Criminal penalties, Exports, Government contracts, Hazardous 
materials transportation, Hazardous waste, Nuclear energy, Nuclear 
materials, Penalties, Reporting and recordkeeping requirements, Source 
material, Uranium, Whistleblowing.

10 CFR Part 50

    Administrative practice and procedure, Antitrust, Backfitting, 
Classified information, Criminal penalties, Education, Emergency 
planning, Fire prevention, Fire protection, Intergovernmental 
relations, Nuclear power plants and reactors, Penalties, Radiation 
protection, Reactor siting criteria, Reporting and recordkeeping 
requirements, Whistleblowing.

10 CFR Part 51

    Administrative practice and procedure, Environmental impact 
statements, Hazardous waste, Nuclear energy, Nuclear materials, Nuclear 
power plants and reactors, Reporting and recordkeeping requirements.

10 CFR Part 57

    Administrative practice and procedure, Antitrust, Backfitting, 
Atomic energy, Construction permit, Combined license, Classified 
information, Criminal Penalties, Early site permit, Emergency planning, 
Fees, Fire prevention, Fire protection, Inspection, Intergovernmental 
relations, Limited work authorization, Manufacturing license, Nuclear 
energy, Nuclear materials, Nuclear power plants and reactors, Nuclear 
safety, Operating license, Penalties, Prototype, Radiation Protection, 
Radioactive materials, Reactor siting criteria, Reporting and 
recordkeeping requirements, Standard design, Standard design 
certification, Training programs.

10 CFR Part 70

    Classified information, Criminal penalties, Emergency medical 
services, Hazardous materials transportation, Material control and 
accounting, Nuclear energy, Nuclear materials, Packaging and 
containers, Penalties, Radiation protection, Reporting and 
recordkeeping requirements, Scientific equipment, Security measures, 
Special nuclear material, Whistleblowing.

10 CFR Part 72

    Administrative practice and procedure, Hazardous waste, Indians, 
Intergovernmental relations, Nuclear energy, Penalties, Radiation 
protection, Reporting and recordkeeping requirements, Security 
measures, Spent fuel, Whistleblowing.

10 CFR Part 73

    Criminal penalties, Exports, Hazardous materials transportation, 
Imports, Nuclear energy, Nuclear materials, Nuclear power plants and 
reactors, Penalties, Reporting and recordkeeping requirements, Security 
measures.

10 CFR Part 74

    Accounting, Criminal penalties, Hazardous materials transportation, 
Material control and accounting, Nuclear energy, Nuclear materials, 
Packaging and containers, Penalties, Radiation protection, Reporting 
and recordkeeping requirements, Scientific equipment, Special nuclear 
material.

10 CFR Part 75

    Criminal penalties, Intergovernmental relations, Nuclear energy, 
Nuclear materials, Nuclear power plants and reactors, Penalties, 
Reporting and recordkeeping requirements, Security measures, Treaties.

10 CFR Part 95

    Classified information, Criminal penalties, Penalties, Reporting 
and recordkeeping requirements, Security measures.

10 CFR Part 140

    Insurance, Intergovernmental relations, Nuclear materials, Nuclear 
power plants and reactors, Penalties, Reporting and recordkeeping 
requirements.

10 CFR Part 150

    Criminal penalties, Hazardous materials transportation, 
Intergovernmental relations, Nuclear energy, Nuclear materials, 
Penalties, Reporting and recordkeeping requirements, Security measures, 
Source material, Special nuclear material.

    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 parts 1, 2, 10, 11, 19, 20, 21, 25, 26, 30, 40, 50, 51, 
70, 72, 73, 74, 75, 95, 140, and 150 and add 10 CFR part 57:

PART 1--STATEMENT OF ORGANIZATION AND GENERAL INFORMATION

0
1. The authority citation for part 1 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 23, 25, 29, 161, 191 
(42 U.S.C. 2033, 2035, 2039, 2201, 2241); Energy Reorganization Act 
of 1974, secs. 201, 203, 204, 205, 209 (42 U.S.C. 5841, 5843, 5844, 
5845, 5849); Administrative Procedure Act (5 U.S.C. 552, 553); 
Reorganization Plan No. 1 of 1980, 5 U.S.C. Appendix (Reorganization 
Plans).


Sec.  1.43  [Amended]

0
2. In Sec.  1.43, in paragraph (a)(2), add the number ``57,'' in 
sequential order.

PART 2--AGENCY RULES OF PRACTICE AND PROCEDURE

0
3. The authority citation for part 2 continues to read as follows:


[[Page 23703]]


    Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81, 
102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42 
U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201, 
2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy 
Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846); 
Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42 
U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act 
(5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy 
Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note. Section 2.205(j) 
also issued under 28 U.S.C. 2461 note.

0
4. In Sec.  2.1, revise paragraph (e) to read as follows:


Sec.  2.1  Scope.

* * * * *
    (e) Standard design approvals under part 52 or part 57 of this 
chapter.
* * * * *
0
5. In Sec.  2.4, revise the definition for ``Facility'' to read as 
follows:


Sec.  2.4  Definitions.

* * * * *
    Facility means a production facility or a utilization facility as 
defined in Sec. Sec.  50.2 and 57.3 of this chapter.
* * * * *


Sec.  2.100  [Amended]

0
6. In Sec.  2.100, remove the phrase ``subpart E of part 52'' and add 
in its place the phrase ``subpart E of part 52 or subpart E of part 
57''.
0
7. In Sec.  2.101, revise paragraph (a)(3)(i) to read as follows:


Sec.  2.101  Filing of application.

    (a) * * *
    (3) * * *
    (i) Submit to the Director, Office of Nuclear Reactor Regulation, 
or Director, Office of Nuclear Material Safety and Safeguards, as 
appropriate, such additional copies as the regulations in part 50, part 
51, and part 57 of this chapter require;
* * * * *
0
8. In Sec.  2.105, revise paragraphs (a)(4) and (a)(13) to read as 
follows:


Sec.  2.105  Notice of proposed action.

    (a) * * *
    (4) An amendment to an operating license, combined license, or 
manufacturing license for a facility of the type described in Sec.  
50.21(b) or Sec.  50.22 of this chapter, as applicable, or for a 
testing facility, as follows:
    (i) If the Commission determines under Sec.  50.58 or Sec.  57.130 
of this chapter that the amendment involves no significant hazards 
consideration, though it will provide notice of opportunity for a 
hearing pursuant to this section, it may make the amendment immediately 
effective and grant a hearing thereafter; or
    (ii) If the Commission determines under Sec. Sec.  50.58 and 50.91 
or Sec.  57.130 of this chapter, as applicable, that an emergency 
situation exists or that exigent circumstances exist and that the 
amendment involves no significant hazards consideration, it will 
provide notice of opportunity for a hearing pursuant to Sec.  2.106 (if 
a hearing is requested, it will be held after issuance of the 
amendment);
* * * * *
    (13) A manufacturing license under subpart F of part 52 or subpart 
D of part 57 of this chapter.
* * * * *
0
9. In Sec.  2.109, revise paragraphs (b) and (d) to read as follows:


Sec.  2.109  Effect of timely renewal application.

* * * * *
    (b) If the licensee of a nuclear power plant of the type described 
in Sec.  50.21(b) or Sec.  50.22 of this chapter files a sufficient 
application for renewal of either an operating license or a combined 
license at least 5 years before the expiration of the existing license, 
the existing license will not be deemed to have expired until the 
application has been finally determined.
* * * * *
    (d) If the licensee of a manufacturing license under subpart F of 
part 52, or under subpart D of part 57 of this chapter files a 
sufficient application for renewal under Sec.  52.177 or Sec.  57.190 
of this chapter at least 12 months before the expiration of the 
existing license, the existing license will not be deemed to have 
expired until the application has been finally determined.
* * * * *
0
10. In Sec.  2.110, revise paragraphs (a)(1) and (b) to read as 
follows:


Sec.  2.110  Filing and administrative action on submittals for 
standard design approval or early review of site suitability issues.

    (a)(1) A submittal for a standard design approval under subpart E 
of part 52 or under subpart E of part 57 of this chapter shall be 
subject to Sec. Sec.  2.101(a) and 2.390 to the same extent as if it 
were an application for a permit or license.
* * * * *
    (b) Upon initiation of review by the NRC staff of a submittal for 
an early review of site suitability issues under appendix Q to part 50 
of this chapter, or for a standard design approval under subpart E of 
part 52 or under subpart E of part 57 of this chapter, the Director, 
Office of Nuclear Reactor Regulation, shall publish in the Federal 
Register a notice of receipt of the submittal, inviting comments from 
interested persons within 60 days of publication or other time as may 
be specified, for consideration by the NRC staff and ACRS in their 
review.
* * * * *
0
11. In Sec.  2.202, revise paragraphs (e)(1), (e)(5), and (6) to read 
as follows:


Sec.  2.202  Orders.

* * * * *
    (e)(1) If the order involves the modification of a part 50 or a 
part 57 license and is a backfit, the requirements of Sec.  50.109 or 
Sec.  57.16 of this chapter, as applicable, shall be followed, unless 
the licensee has consented to the action required.
* * * * *
    (5) If the order involves a change to a standard design approval 
referenced by that plant's application, the requirements of Sec.  
52.145 or Sec.  57.220 of this chapter, as applicable, must be followed 
unless the applicant or licensee has consented to follow the action 
required.
    (6) If the order involves a modification of a manufacturing license 
under subpart F of part 52 or under subpart D of part 57 of this 
chapter, the requirements of Sec.  52.171 or Sec.  57.175 of this 
chapter, as applicable, must be followed, unless the applicant or 
licensee has consented to the action required.
0
12. In Sec.  2.309, revise paragraph (h)(2) to read as follows:


Sec.  2.309  Hearing requests, petitions to intervene, requirements for 
standing, and contentions.

* * * * *
    (h) * * *
    (2) If the proceeding pertains to a production or utilization 
facility (as defined in Sec.  50.2 or Sec.  57.3 of this chapter) 
located within the boundaries of the State, local governmental body, or 
Federally-recognized Indian Tribe seeking to participate as a party, no 
further demonstration of standing is required. If the production or 
utilization facility is not located within the boundaries of the State, 
local governmental body, or Federally-recognized Indian Tribe seeking 
to participate as a party, the State, local governmental body, or 
Federally-recognized Indian Tribe also must demonstrate standing.
* * * * *


Sec.  2.310  [Amended]

0
13. In Sec.  2.310, add the number ``57,'' in sequential order to 
paragraph (a) and paragraph (h) introductory text.
* * * * *

[[Page 23704]]

0
14. In Sec.  2.339, revise paragraph (d) to read as follows:


Sec.  2.339  Expedited decisionmaking procedure.

* * * * *
    (d) The provisions of this section do not apply to an initial 
decision directing the issuance of a limited work authorization under 
10 CFR 50.10; an early site permit under subpart A of part 52 of this 
chapter; a construction permit or construction authorization under part 
50 or part 57 of this chapter; a combined license under subpart C of 
part 52 of this chapter; or a manufacturing license under subpart F of 
part 52 or under subpart D of part 57.
0
15. In Sec.  2.340, revise paragraphs (d), (f), and the introductory 
text of paragraph (i) to read as follows:


Sec.  2.340  Initial decision in certain contested proceedings; 
immediate effectiveness of initial decisions; issuance of 
authorizations, permits, and licenses.

* * * * *
    (d) Initial decision--manufacturing license under 10 CFR part 52 or 
part 57.
    (1) Matters in controversy; presiding officer consideration of 
matters not put in controversy by parties. In any initial decision in a 
contested proceeding on an application for a manufacturing license 
under subpart F of part 52 or subpart D of part 57 of this chapter 
(including an amendment to or renewal of a manufacturing license), the 
presiding officer shall make findings of fact and conclusions of law on 
the matters put into controversy by the parties and any matter 
designated by the Commission to be decided by the presiding officer. 
The presiding officer also shall make findings of fact and conclusions 
of law on any matter not put into controversy by the parties, but only 
to the extent that the presiding officer determines that a serious 
safety, environmental, or common defense and security matter exists, 
and the Commission approves of an examination of and decision on the 
matter upon its referral by the presiding officer under, inter alia, 
the provisions of Sec. Sec.  2.323 and 2.341.
    (2) Presiding officer initial decision and issuance of permit or 
license.
    (i) In a contested proceeding for the initial issuance or renewal 
of a manufacturing license under subpart F of part 52 or subpart D of 
part 57 of this chapter, or the amendment of a manufacturing license, 
the Commission or the Director, Office of Nuclear Reactor Regulation, 
as appropriate, after making the requisite findings, shall issue, deny, 
or appropriately condition the permit or license in accordance with the 
presiding officer's initial decision once that decision becomes 
effective.
    (ii) In a contested proceeding for the initial issuance or renewal 
of a manufacturing license under subpart F of part 52 or subpart D of 
part 57 of this chapter, or the amendment of a manufacturing license, 
the Commission or the Director, Office of Nuclear Reactor Regulation, 
as appropriate (appropriate official), may issue the license, permit, 
or license amendment in accordance with Sec.  2.1202(a) or Sec.  
2.1403(a) before the presiding officer's initial decision becomes 
effective. If, however, the presiding officer's initial decision 
becomes effective before the license, permit, or license amendment is 
issued under Sec.  2.1202 or Sec.  2.1403, then the Commission or the 
Director, Office of Nuclear Reactor Regulation, as appropriate, shall 
issue, deny, or appropriately condition the license, permit, or license 
amendment in accordance with the presiding officer's initial decision.
* * * * *
    (f) Immediate effectiveness of certain presiding officer decisions. 
A presiding officer's initial decision directing the issuance or 
amendment of a limited work authorization under Sec.  50.10 of this 
chapter; an early site permit under subpart A of part 52 of this 
chapter; a construction permit or construction authorization under part 
50 or part 57 of this chapter; an operating license under part 50 or 
part 57 of this chapter; a combined license under subpart C of part 52 
of this chapter; a manufacturing license under subpart F of part 52 or 
subpart D of part 57 of this chapter; a renewed license under part 54 
or part 57 of this chapter; or a license under part 72 of this chapter 
to store irradiated fuel in an independent spent fuel storage 
installation (ISFSI) or a monitored retrievable storage installation 
(MRS); an initial decision directing issuance of a license under part 
61 of this chapter; or an initial decision under Sec.  52.103(g) of 
this chapter that acceptance criteria in a combined license have been 
met, is immediately effective upon issuance unless the presiding 
officer finds that good cause has been shown by a party why the initial 
decision should not become immediately effective.
* * * * *
    (i) Issuance of authorizations, permits, and licenses--production 
and utilization facilities. The Commission or the Director, Office of 
Nuclear Reactor Regulation, as appropriate, shall issue a limited work 
authorization under Sec.  50.10 of this chapter; an early site permit 
under subpart A of part 52 of this chapter; a construction permit or 
construction authorization under part 50 or part 57 of this chapter; an 
operating license under part 50 or part 57 of this chapter; a combined 
license under subpart C of part 52 of this chapter; or a manufacturing 
license under subpart F of part 52 or subpart D of part 57 of this 
chapter within 10 days from the date of issuance of the initial 
decision:
* * * * *


Sec.  2.400  [Amended]

0
16. In Sec.  2.400, remove the phrase ``parts 50 or 52'' and add in its 
place the phrase ``part 50 or part 52 or part 57''.
0
17. In Sec.  2.401, revise the section heading and paragraph (a) to 
read as follows:


Sec.  2.401  Notice of hearing on construction permit application 
pursuant to 10 CFR part 57 or appendix N of 10 CFR part 50 or combined 
license application pursuant to appendix N of 10 CFR part 52.

    (a) In the case of applications under appendix N of part 50 of this 
chapter for construction permits for nuclear power reactors of the type 
described in Sec.  50.22 of this chapter, or applications under 
appendix N of part 52 of this chapter for combined licenses, or 
applications under part 57 of this chapter for construction permits, 
the Secretary will issue notices of hearing pursuant to Sec.  2.104.
* * * * *
0
18. In Sec.  2.402, revise paragraph (a) to read as follows:


Sec.  2.402  Separate hearings on separate issues; consolidation of 
proceedings.

    (a) In the case of applications under appendix N of part 50 of this 
chapter for construction permits for nuclear power reactors of a type 
described in 10 CFR 50.22, or applications pursuant to appendix N of 
part 52 of this chapter for combined licenses, or applications under 
part 57 of this chapter for construction permits and operating 
licenses, the Commission or the presiding officer may order separate 
hearings on particular phases of the proceeding, such as matters 
related to the acceptability of the design of the reactor in the 
context of the site parameters postulated for the design or 
environmental matters.
* * * * *
0
19. In Sec.  2.403, revise the section heading and section to read as 
follows:


Sec.  2.403  Hearings on applications for operating licenses pursuant 
to 10 CFR part 57 or appendix N of 10 CFR part 50.

    In the case of applications pursuant to appendix N of part 50 or 
part 57 of this chapter for operating licenses for nuclear power 
reactors, if the

[[Page 23705]]

Commission has not found that a hearing is in the public interest, the 
Commission or the Director, Office of Nuclear Reactor Regulation, as 
appropriate will, prior to acting thereon, cause to be published in the 
Federal Register, pursuant to Sec.  2.105, a notice of proposed action 
with respect to each application as soon as practicable after the 
applications have been docketed.
0
20. Revise Sec.  2.404 to read as follows:


Sec.  2.404  Hearings on applications for operating licenses pursuant 
to appendix N of 10 CFR part 50 or 10 CFR part 57.

    If a request for a hearing and/or petition for leave to intervene 
is filed within the time prescribed in the notice of proposed action on 
an application for an operating license pursuant to appendix N of part 
50 or part 57 of this chapter with respect to a specific reactor(s) at 
a specific site, and the Commission, the Chief Administrative Judge, or 
a presiding officer has issued a notice of hearing or other appropriate 
order, then the Commission, the Chief Administrative Judge, or the 
presiding officer may order separate hearings on particular phases of 
the proceeding and/or consolidate for hearing two or more proceedings 
in the manner described in Sec.  2.402.
0
21. Revise Sec.  2.406 to read as follows:


Sec.  2.406  Finality of decisions on separate issues.

    Notwithstanding any other provision of this chapter, in a 
proceeding conducted pursuant to this subpart and appendix N to part 50 
or 52 or part 57 of this chapter, no matter which has been reserved for 
consideration in one phase of the hearing shall be considered at 
another phase of the hearing except on the basis of significant new 
information that substantially affects the conclusion(s) reached at the 
other phase or other good cause.
0
22. Revise Sec.  2.500 to read as follows:


Sec.  2.500  Scope of subpart.

    This subpart prescribes procedures applicable to licensing 
proceedings that involve the consideration in separate hearings of an 
application for a license to manufacture nuclear power reactors under 
subpart F of part 52 or subpart D of part 57 of this chapter.
0
23. In Sec.  2.501, revise the section heading, introductory text of 
paragraph (a), and footnote 1 to read as follows:


Sec.  2.501  Notice of hearing on application under subpart F of 10 CFR 
part 52 or subpart D of part 57 for a license to manufacture nuclear 
power reactors.

    (a) In the case of an application under subpart F of part 52 or 
subpart D of part 57 of this chapter for a license to manufacture 
nuclear power reactors of the type described in Sec.  50.22 or part 57 
of this chapter to be operated at sites not identified in the license 
application, the Secretary will issue a notice of hearing to be 
published in the Federal Register at least 30 days before the date set 
for hearing in the notice.\1\ The notice shall be issued as soon as 
practicable after the application has been docketed. The notice will 
state:
* * * * *
    \1\ The thirty-day (30) requirement of this paragraph is not 
applicable to a notice of the time and place of hearing published by 
the presiding officer after notice of hearing described in this 
section has been published.
* * * * *


Sec.  2.813  [Amended]

0
24. In Sec.  2.813, in paragraph (a), remove the phrase ``and 100'' and 
add in its place the phrase ``57, and 100''.


Sec.  2.1103  [Amended]

0
25. In Sec.  2.1103, in the first sentence, remove the phrase ``of this 
chapter'' and add in its place ``or 57 of this chapter''.
0
26. In Sec.  2.1202, revise paragraphs (a)(3) and (a)(6) to read as 
follows:


Sec.  2.1202  Authority and role of NRC staff.

    (a) * * *
    (3) An application for a manufacturing license under subpart F of 
10 CFR part 52 or under subpart D of 10 CFR part 57;
* * * * *
    (6) Production or utilization facility licensing actions that 
involve significant hazards considerations as defined in Sec.  50.92 or 
subpart H of part 57 of this chapter.
* * * * *


Sec.  2.1301  [Amended]

0
27. In Sec.  2.1301, in paragraph (b), remove the phrase ``and part 
52'' and add in its place ``, 52, and 57''.


Sec.  2.1403  [Amended]

0
28. In Sec.  2.1403, in paragraph (a)(3), remove ``.'' and add in its 
place ``or 57.310.''.

PART 10--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR 
ACCESS TO RESTRICTED DATA OR NATIONAL SECURITY INFORMATION OR AN 
EMPLOYMENT CLEARANCE

0
29. The authority citation for part 10 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 145, 161 (42 U.S.C. 
2165, 2201); Energy Reorganization Act of 1974, sec. 201 (42 U.S.C. 
5841); E.O. 10450, 18 FR 2489, 3 CFR, 1949-1953 Comp., p. 936, as 
amended; E.O. 10865, 25 FR 1583, 3 CFR, 1959-1963 Comp., p. 398, as 
amended; E.O. 12968, 60 FR 40245, 3 CFR, 1995 Comp., p. 391.


Sec.  10.1  [Amended]

0
30. In Sec.  10.1, in paragraph (a)(3), remove the phrase ``of this 
chapter'' and add in its place the phrase ``or part 57 of this 
chapter''.


Sec.  10.2  [Amended]

0
31. In Sec.  10.2, in paragraph (b), wherever it may appear, remove the 
phrase ``of this chapter'' and add in its place the phrase ``or part 57 
of this chapter''.

PART 11--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR 
ACCESS TO OR CONTROL OVER SPECIAL NUCLEAR MATERIAL

0
32. The authority citation for part 11 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 161, 223 (42 U.S.C. 
2201, 2273); Energy Reorganization Act of 1974, sec. 201 (42 U.S.C. 
5841); 44 U.S.C. 3504 note. Section 11.15(e) also issued under 31 
U.S.C. 9701; 42 U.S.C. 2214.


Sec.  11.7  [Amended]

0
33. In Sec.  11.7, in the introductory text, add the number ``57,'' in 
sequential order.

PART 19--NOTICES, INSTRUCTIONS AND REPORTS TO WORKERS: INSPECTION 
AND INVESTIGATIONS

0
34. The authority citation for part 19 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 53, 63, 81, 103, 
104, 161, 223, 234, 1701 (42 U.S.C. 2073, 2093, 2111, 2133, 2134, 
2201, 2273, 2282, 2297f); Energy Reorganization Act of 1974, secs. 
201, 211, 401 (42 U.S.C. 5841, 5851, 5891); 44 U.S.C. 3504 note.
0
35. In Sec.  19.2, revise paragraphs (a)(1) through (3) to read as 
follows:


Sec.  19.2  Scope.

    (a) * * *
    (1) All persons who receive, possess, use, or transfer material 
licensed by the NRC under the regulations in parts 30 through 36, 39, 
40, 60, 61, 63, 70, or 72 of this chapter, including persons licensed 
to operate a production or utilization facility under part 50, part 52, 
or part 57 of this chapter, persons licensed to possess power reactor 
spent fuel in an independent spent fuel storage installation (ISFSI) 
under part 72 of this chapter, and in accordance with 10 CFR 76.60 to 
persons required to obtain a certificate of compliance or an approved 
compliance plan under part 76 of this chapter;
    (2) All applicants for and holders of licenses (including 
construction permits

[[Page 23706]]

and early site permits) under parts 50, 52, 54, and 57 of this chapter;
    (3) All applicants for and holders of a standard design approval 
under subpart E of part 52 or under subpart E of part 57 of this 
chapter; and
* * * * *
0
36. In Sec.  19.3, revise the definitions for ``License'' and 
``Regulated entities'' to read as follows:


Sec.  19.3  Definitions.

* * * * *
    License means a license issued under the regulations in part 30 
through 36, 39, 40, 60, 61, 63, 70, or 72 of this chapter, including 
licenses to manufacture, construct and/or operate a production or 
utilization facility under part 50, 52, 54, or 57 of this chapter.
* * * * *
    Regulated entities means any individual, person, organization, or 
corporation that is subject to the regulatory jurisdiction of the NRC, 
including (but not limited to) an applicant for or holder of a standard 
design approval under subpart E of part 52 or under subpart E of part 
57 of this chapter or a standard design certification under subpart B 
of part 52 of this chapter.
* * * * *
0
37. In Sec.  19.11, revise paragraphs (a), (b), and (e)(1) to read as 
follows:


Sec.  19.11  Posting of notices to workers.

    (a) Each licensee (except for a holder of an early site permit 
under subpart A of part 52 of this chapter, or a holder of a 
manufacturing license under subpart F of part 52 or subpart D of part 
57 of this chapter) shall post current copies of the following 
documents:
* * * * *
    (b) Each applicant for and holder of a standard design approval 
under subpart E of part 52 or subpart E of part 57 of this chapter, 
each applicant for an early site permit under subpart A of part 52 of 
this chapter, each applicant for a standard design certification under 
subpart B of part 52 of this chapter, and each applicant for and holder 
of a manufacturing license under subpart F of part 52 or subpart D of 
part 57 of this chapter shall post:
* * * * *
    (e)(1) Each licensee, each applicant for a specific license, each 
applicant for or holder of a standard design approval under subpart E 
of part 52 or subpart E of part 57 of this chapter, each applicant for 
an early site permit under subpart A of part 52 of this chapter, and 
each applicant for a standard design certification under subpart B of 
part 52 of this chapter shall prominently post NRC Form 3, ``Notice to 
Employees,'' dated August 1997. Later versions of NRC Form 3 that 
supersede the August 1997 version shall replace the previously posted 
version within 30 days of receiving the revised NRC Form 3 from the 
Commission.
* * * * *
0
38. In Sec.  19.14, revise paragraph (a) to read as follows:


Sec.  19.14  Presence of representatives of licensees and regulated 
entities, and workers during inspections.

    (a) Each licensee, applicant for a license, applicant for or holder 
of a standard design approval under subpart E of part 52 or subpart E 
of part 57 of this chapter, applicant for an early site permit under 
subpart A of part 52 of this chapter, and applicant for a standard 
design certification under subpart B of part 52 of this chapter shall 
afford to the Commission at all reasonable times opportunity to inspect 
materials, activities, facilities, premises, and records under the 
regulations in this chapter.
* * * * *


Sec.  19.20  [Amended]

0
39. In Sec.  19.20, add the number ``57,'' in sequential order.

PART 20--STANDARDS FOR PROTECTION AGAINST RADIATION

0
40. The authority citation for part 20 continues to read as follows:


    Authority: Atomic Energy Act of 1954, secs. 11, 53, 63, 65, 81, 
103, 104, 161, 170H, 182, 186, 223, 234, 274, 1701 (42 U.S.C. 2014, 
2073, 2093, 2095, 2111, 2133, 2134, 2201, 2210h, 2232, 2236, 2273, 
2282, 2021, 2297f); Energy Reorganization Act of 1974, secs. 201, 
202 (42 U.S.C. 5841, 5842); Low-Level Radioactive Waste Policy 
Amendments Act of 1985, sec. 2 (42 U.S.C. 2021b); 44 U.S.C. 3504 
note.


Sec.  20.1002  Scope.

0
41. In Sec.  20.1002, add the number ``57,'' in sequential order.
0
42. In Sec.  20.1003, revise the definition for ``License'' to read as 
follows:


Sec.  20.1003  Definitions.

* * * * *
    License means a license issued under the regulations in part 30 
through 36, 39, 40, 50, 57, 60, 61, 63, 70, or 72 of this chapter.
* * * * *


Sec.  20.1406  [Amended]

0
43. In Sec.  20.1406, in paragraphs (a) and (b), wherever it may 
appear, remove the phrase ``of this chapter'' and add in its place the 
phrase ``or part 57 of this chapter''.


Sec.  20.1905  [Amended]

0
44. In Sec.  20.1905, in paragraph (g) introductory text, remove the 
phrase ``of this chapter'' and add in its place the phrase ``, or part 
57 of this chapter''.
0
45. In Sec.  20.2004, revise paragraph (b)(1) to read as follows:


Sec.  20.2004  Treatment or disposal by incineration.

* * * * *
    (b)(1) Waste oils (petroleum derived or synthetic oils used 
principally as lubricants, coolants, hydraulic or insulating fluids, or 
metalworking oils) that have been radioactively contaminated in the 
course of the operation or maintenance of a nuclear power reactor 
licensed under part 50 or part 57 of this chapter may be incinerated on 
the site where generated provided that the total radioactive effluents 
from the facility, including the effluents from such incineration, 
conform to the requirements of appendix I to part 50 of this chapter 
and the effluent release limits contained in applicable license 
conditions other than effluent limits specifically related to 
incineration of waste oil. The licensee shall report any changes or 
additions to the information supplied under Sec.  50.34, Sec.  50.34a, 
or subpart C of part 57 of this chapter associated with this 
incineration pursuant to Sec.  50.71 or 57.315 of this chapter, as 
appropriate. The licensee shall also follow the procedures of Sec.  
50.59 of this chapter with respect to such changes to the facility or 
procedures.
* * * * *
0
46. In Sec.  20.2201, revise paragraphs (b)(2)(i) and (c) to read as 
follows:


Sec.  20.2201  Reports of theft or loss of licensed material.

* * * * *
    (b) * * *
    (2) * * *
    (i) For holders of an operating license for a nuclear power plant, 
the events included in paragraph (b) of this section must be reported 
under the procedures described in Sec.  50.73(b), (c), (d), (e), and 
(g) or Sec.  57.440(b), (c), (d), and (e) of this chapter and must 
include the information required in paragraph (b)(1) of this section, 
and
* * * * *
    (c) A duplicate report is not required under paragraph (b) of this 
section if the licensee is also required to submit a report pursuant to 
Sec.  30.55(c), Sec.  37.57, Sec.  37.81, Sec.  40.64(c), Sec.  50.72, 
Sec.  50.73, subpart Q of part 57, Sec.  70.52, Sec.  73.27(b), Sec.  
73.67(e)(3)(vii), Sec.  73.67(g)(3)(iii), Sec.  73.1205, or Sec.  
150.19(c) of this chapter.
* * * * *

[[Page 23707]]

Sec.  20.2202  [Amended]

0
47. In Sec.  20.2202, in paragraph (d)(1), remove the phrase ``of this 
chapter'' and add in its place the phrase ``or Sec.  57.435 of this 
chapter''.
0
48. In Sec.  20.2203, revise paragraph (c) to read as follows:


Sec.  20.2203  Reports of exposures, radiation levels, and 
concentrations of radioactive material exceeding the constraints or 
limits.

* * * * *
    (c) For holders of an operating license or a combined license for a 
nuclear power plant, the occurrences included in paragraph (a) of this 
section must be reported under the procedures described in Sec.  
50.73(b), (c), (d), (e), and (g) or Sec.  57.440(b), (c), (d), and (e) 
of this chapter, and must include the information required by paragraph 
(b) of this section. Occurrences reported under Sec.  50.73 or Sec.  
57.440(b), (c), (d), and (e) of this chapter need not be reported by a 
duplicate report under paragraph (a) of this section.
* * * * *
0
49. In Sec.  20.2206, revise paragraph (a)(1) to read as follows:


Sec.  20.2206  [Amended]

* * * * *
    (a) * * *
    (1) Operate a nuclear reactor that is both designed to produce 
electrical or heat energy and of the type described in Sec.  50.21(b) 
or Sec.  50.22 of this chapter, or is a testing facility as defined in 
Sec.  50.2 of this chapter; or
* * * * *

PART 21--REPORTING OF DEFECTS AND NONCOMPLIANCE

0
50. The authority citation for part 21 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 53, 63, 81, 103, 
104, 161, 223, 234, 1701 (42 U.S.C. 2073, 2093, 2111, 2133, 2134, 
2201, 2273, 2282, 2297f); Energy Reorganization Act of 1974, secs. 
201, 206 (42 U.S.C. 5841, 5846); Nuclear Waste Policy Act of 1982, 
secs. 135, 141 (42 U.S.C. 10155, 10161); 44 U.S.C. 3504 note.

0
51. In Sec.  21.2, revise paragraphs (a)(2), (a)(4), (b), and (c) to 
read as follows:


Sec.  21.2  Scope.

    (a) * * *
    (1) * * *
    (2) Each individual, corporation, partnership, or other entity 
doing business within the United States, and each director and 
responsible officer of such an organization, that constructs a 
production or utilization facility licensed for manufacture, 
construction, or operation under part 50, part 52, or part 57 of this 
chapter, an ISFSI for the storage of spent fuel licensed under part 72 
of this chapter, an MRS for the storage of spent fuel or high-level 
radioactive waste under part 72 of this chapter, or a geologic 
repository for the disposal of high-level radioactive waste under part 
60 or part 63 of this chapter; or supplies basic components for a 
facility or activity licensed, other than for export, under parts 30, 
40, 50, 52, 57, 60, 61, 63, 70, 71, or 72 of this chapter;
* * * * *
    (4) Each individual, corporation, partnership, or other entity 
doing business within the United States, and each director and 
responsible officer of such an organization, applying for or holding a 
standard design approval under part 52 or part 57 of this chapter; or 
supplying basic components with respect to a standard design approval 
under part 52 or part 57 of this chapter.
    (b) For persons licensed to construct a facility under either a 
construction permit issued under Sec.  50.23 or Sec.  57.95 of this 
chapter or a combined license under part 52 of this chapter (for the 
period of construction until the date that the Commission makes the 
finding under Sec.  52.103(g) of this chapter), or to manufacture a 
facility under part 52 or part 57 of this chapter, evaluation of 
potential defects and failures to comply and reporting of defects and 
failures to comply under Sec.  50.55(e) or Sec.  57.270 of this chapter 
satisfies each person's evaluation, notification, and reporting 
obligation to report defects and failures to comply under this part and 
the responsibility of individual directors and responsible officers of 
these licensees to report defects under Section 206 of the Energy 
Reorganization Act of 1974.
    (c) For persons licensed to operate a nuclear power plant under 
part 50, part 52, or part 57 of this chapter, evaluation of potential 
defects and appropriate reporting of defects under Sec.  50.72, Sec.  
50.73, Sec.  57.270, or Sec. Sec.  73.1200 and 73.1205 of this chapter, 
satisfies each person's evaluation, notification, and reporting 
obligation to report defects under this part, and the responsibility of 
individual directors and responsible officers of these licensees to 
report defects under Section 206 of the Energy Reorganization Act of 
1974.
* * * * *
0
52. In Sec.  21.3, revise the definitions for ``Commercial grade 
item'', ``Critical characteristicsv'', ``Dedicating entity'', 
``Defect'', and ``Substantial safety hazard'' to read as follows:


Sec.  21.3  Definitions.

* * * * *
    Commercial grade item.
    (1) When applied to nuclear power plants licensed under 10 CFR part 
50, commercial grade item means a structure, system, or component, or 
part thereof that affects its safety function, that was not designed 
and manufactured as a basic component. Commercial grade items do not 
include items where the design and manufacturing process require in-
process inspections and verifications to ensure that defects or 
failures to comply are identified and corrected (i.e., one or more 
critical characteristics of the item cannot be verified).
    (2) When applied to facilities and activities licensed pursuant to 
10 CFR parts 30, 40, 50 (other than nuclear power plants), 57, 60, 61, 
63, 70, 71, or 72, commercial grade item means an item that is:
    (i) Not subject to design or specification requirements that are 
unique to those facilities or activities;
    (ii) Used in applications other than those facilities or 
activities; and
    (iii) To be ordered from the manufacturer/supplier on the basis of 
specifications set forth in the manufacturer's published product 
description (for example, a catalog)
* * * * *
    Critical characteristics. When applied to nuclear power plants 
licensed under part 50 or part 57 of this chapter, critical 
characteristics are those important design, material, and performance 
characteristics of a commercial grade item that, once verified, will 
provide reasonable assurance that the item will perform its intended 
safety function.
    Dedicating entity. When applied to nuclear power plants licensed 
under part 50 or part 57 of this chapter, dedicating entity means the 
organization that performs the dedication process. Dedication may be 
performed by the manufacturer of the item, a third-party dedicating 
entity, or the licensee itself. The dedicating entity, under Sec.  
21.21(c) of this part, is responsible for identifying and evaluating 
deviations, reporting defects and failures to comply for the dedicated 
item, and maintaining auditable records of the dedication process.
* * * * *
    Defect means:
    (1) A deviation in a basic component delivered to a purchaser for 
use in a facility or an activity subject to the regulations in this 
part if, on the basis of an evaluation, the deviation could create a 
substantial safety hazard;
    (2) The installation, use, or operation of a basic component 
containing a defect as defined in this section;
    (3) A deviation in a portion of a facility subject to the early 
site permit, standard design certification, standard

[[Page 23708]]

design approval, construction permit, combined license or manufacturing 
licensing requirements of part 50, part 52, or part 57 of this chapter, 
provided the deviation could, on the basis of an evaluation, create a 
substantial safety hazard and the portion of the facility containing 
the deviation has been offered to the purchaser for acceptance;
    (4) A condition or circumstance involving a basic component that 
could contribute to the exceeding of a safety limit, as defined in the 
technical specifications of a license for operation issued under part 
50, part 52, or part 57 of this chapter; or
    (5) An error, omission or other circumstance in a design 
certification, or standard design approval that, on the basis of an 
evaluation, could create a substantial safety hazard.
* * * * *
    Substantial safety hazard means a loss of safety function to the 
extent that there is a major reduction in the degree of protection 
provided to public health and safety for any facility or activity 
licensed or otherwise approved or regulated by the NRC, other than for 
export, under part 30, 40, 50, 52, 57, 60, 61, 63, 70, 71, or 72 of 
this chapter.
* * * * *
0
53. In Sec.  21.21, revise paragraphs (a)(3), (d)(1)(i) and (ii) to 
read as follows:


Sec.  21.21  Notification of failure to comply or existence of a defect 
and its evaluation.

    (a) * * *
    (3) Ensure that a director or responsible officer subject to the 
regulations of this part is informed as soon as practicable, and, in 
all cases, within the 5 working days after completion of the evaluation 
described in paragraphs (a)(1) or (a)(2) of this section if the 
manufacture, construction, or operation of a facility or activity, a 
basic component supplied for such facility or activity, the design 
certification or design approval under part 52 of this chapter, or the 
design approval under part 57 of this chapter--
* * * * *
    (d)(1) * * *
    (i) The manufacture, construction or operation of a facility or an 
activity within the United States that is subject to the licensing 
requirements under parts 30, 40, 50, 52, 57, 60, 61, 63, 70, 71, or 72 
of this chapter and that is within his or her organization's 
responsibility; or
    (ii) A basic component that is within his or her organization's 
responsibility and is supplied for a facility or an activity within the 
United States that is subject to the licensing, design certification, 
or approval requirements under parts 30, 40, 50, 52, 57, 60, 61, 63, 
70, 71, or 72 of this chapter.
* * * * *


Sec.  21.51  [Amended]

0
54. In Sec.  21.51, in paragraph (a)(5), remove the phrase ``of this 
chapter'' and add in its place the phrase ``or part 57 of this 
chapter''.
0
55. In Sec.  21.61, revise paragraph (b) to read as follows:


Sec.  21.61  Failure to notify.

* * * * *
    (b) Any NRC licensee or applicant for a license (including an 
applicant for, or holder of, a permit), applicant for a design 
certification under part 52 of this chapter during the pendency of its 
application, applicant for a design certification after Commission 
adoption of a final design certification rule for that design, or 
applicant for or holder of a standard design approval under part 52 or 
part 57 of this chapter subject to the regulations in this part who 
fails to provide the notice required by Sec.  21.21, or otherwise fails 
to comply with the applicable requirements of this part shall be 
subject to a civil penalty as provided by Section 234 of the Atomic 
Energy Act of 1954, as amended.
* * * * *

PART 25--ACCESS AUTHORIZATION

0
56. The authority citation for part 25 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 145, 161, 223, 234 
(42 U.S.C. 2165, 2201, 2273, 2282); Energy Reorganization Act of 
1974, sec. 201 (42 U.S.C. 5841); 44 U.S.C. 3504 note; E.O. 10865, 25 
FR 1583, as amended, 3 CFR, 1959-1963 Comp., p. 398; E.O. 12829, 58 
FR 3479, 3 CFR, 1993 Comp., p. 570; E.O. 13526, 75 FR 707, 3 CFR, 
2009 Comp., p. 298; E.O. 12968, 60 FR 40245, 3 CFR, 1995 Comp., p. 
391. Section 25.17(f) and Appendix A also issued under 31 U.S.C. 
9701; 42 U.S.C. 2214.

0
57. In Sec.  25.5, revise the definition for ``License'' to read as 
follows:


Sec.  25.5  Definitions.

* * * * *
    License means a license issued pursuant to 10 CFR parts 50, 52, 57, 
60, 63, 70, or 72.
* * * * *


Sec.  25.17  [Amended]

0
58. In Sec.  25.17, in paragraph (a), add the number ``57,'' in 
sequential order.
0
59. In Sec.  25.35, revise paragraph (a) to read as follows:


Sec.  25.35  Classified visits.

    (a) The number of classified visits must be held to a minimum. The 
licensee, certificate holder, applicant for a standard design 
certification under part 52 of this chapter (including an applicant 
after the Commission has adopted a final standard design certification 
rule under part 52 of this chapter), or other facility, or an applicant 
for or holder of a standard design approval under part 52 or part 57 of 
this chapter shall determine that the visit is necessary and that the 
purpose of the visit cannot be achieved without access to, or 
disclosure of, classified information. All classified visits require 
advance notification to, and approval of, the organization to be 
visited. In urgent cases, visit information may be furnished by 
telephone and confirmed in writing.
* * * * *

PART 26--FITNESS FOR DUTY PROGRAMS

0
60. The authority citation for part 26 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 53, 103, 104, 107, 
161, 223, 234, 1701 (42 U.S.C. 2073, 2133, 2134, 2137, 2201, 2273, 
2282, 2297f); Energy Reorganization Act of 1974, secs. 201, 202 (42 
U.S.C. 5841, 5842); 44 U.S.C. 3504 note.

0
61. In Sec.  26.3, revise paragraphs (a), (b), (c) introductory text, 
and (d) and add new paragraph (f) to read as follows:


Sec.  26.3  Scope.

    (a) Licensees who are authorized to operate a nuclear power reactor 
under 10 CFR 50.57, and holders of a combined license under 10 CFR part 
52 after the Commission has made the finding under 10 CFR 52.103(g) 
shall comply with the requirements of this part, except for subparts K 
and P of this part. Licensees who receive their authorization to 
operate a nuclear power reactor under 10 CFR 50.57 after the date of 
publication of this final rule in the Federal Register and holders of a 
combined license under 10 CFR part 52 after the Commission has made the 
finding under 10 CFR 52.103(g) shall implement the FFD program before 
the receipt of special nuclear material in the form of fuel assemblies.
    (b) Licensees who are authorized to possess, use, or transport 
formula quantities of strategic special nuclear material (SSNM) under 
part 70 of this chapter, and any corporation, firm, partnership, 
limited liability company, association, or other organization who 
obtains a certificate of compliance or an approved compliance plan 
under part 76 of this chapter, only if the entity elects to engage in 
activities involving formula quantities of SSNM shall comply with the 
requirements of this

[[Page 23709]]

part, except for subparts I, K, and P of this part.
    (c) Before the receipt of special nuclear material in the form of 
fuel assemblies, the following licensees and other entities shall 
comply with the requirements of this part, except for subparts I and P 
of this part; and, no later than the receipt of special nuclear 
material in the form of fuel assemblies, the following licensees and 
other entities shall comply with the requirements of this part, except 
for subpart P of this part:
* * * * *
    (d) Contractor/vendors (C/Vs) who implement FFD programs or program 
elements, to the extent that the licensees and other entities specified 
in paragraphs (a) through (c) and (f) of this section rely on those C/V 
FFD programs or program elements to meet the requirements of this part, 
shall comply with the requirements of this part.
* * * * *
    (f) Applicants for and holders of licenses, permits, and approvals 
under part 57 of this chapter, as applicable, must implement their FFD 
programs as follows:
    (1) No later than the start of construction activities, licensees 
and other entities that have applied for or have been issued an 
operating license or construction permit under part 57 of this chapter 
must implement the requirements in subpart P of this part, all the 
requirements of this part except subparts K and P, or an FFD program of 
their specification.
    (2) Holders of a manufacturing license under part 57 of this 
chapter must implement the requirements in subpart P, all the 
requirements of this part except subparts K and P, or an FFD program of 
their specification, before commencing activities that assemble a 
manufactured reactor.
    (3) Licensees and other entities that have applied for or have been 
issued an operating license or construction permit under part 57 of 
this chapter, and holders of a manufacturing license under part 57 of 
this chapter, may elect to implement an FFD program of their 
specification only if the licensee's or other entity's reactor 
manufactured under a manufacturing license issued under part 57 of this 
chapter, constructed under a construction permit issued under part 57 
of this chapter, or operated under an operating license issued under 
part 57 of this chapter, as applicable, would not require operator 
action to maintain the reactor within the criterion of Sec.  57.25(a) 
of this chapter or a credible operator or maintenance error could not 
result in exceeding that criterion.
0
62. In Sec.  26.4, revise paragraph (a) introductory text, (a)(1) and 
(4), (b), (c), (e) introductory text, (f), (g) introductory text, and 
(h) introductory text to read as follows:


Sec.  26.4  FFD program applicability to categories of individuals.

    (a) All persons who are granted unescorted access to nuclear power 
reactor protected areas by the licensees in Sec.  26.3 (a) and, as 
applicable, (c) and perform the following duties shall be subject to an 
FFD program that meets all of the requirements of this part, except 
subparts K and P of this part, and those persons who are granted 
unescorted access to either nuclear power reactor protected areas or 
remote facilities where safety-significant systems or components may be 
operated within the design basis of a nuclear plant, by the licensees 
and other entities in Sec.  26.3(f) and perform the following duties 
must be subject to an FFD program that satisfies either the 
requirements in subpart P of this part or all of the requirements of 
this part except subparts K and P, unless the licensee or other entity 
meets the criteria in Sec.  26.3(f)(3) and subjects these individuals 
to an FFD program of its own specification:
    (1) For persons who are granted unescorted access by the licensees 
in Sec.  26.3(a) and, as applicable, (c), operating or onsite directing 
of the operation of systems and components that a risk-informed 
evaluation process has shown to be significant to public health and 
safety; for those persons who are granted unescorted access by the 
licensees and other entities in Sec.  26.3(f), operating or directing 
of the operation of systems and components that a risk-informed 
evaluation process has shown to be significant to public health and 
safety;
* * * * *
    (4) For persons who are granted unescorted access to nuclear power 
reactor protected areas by the licensees in Sec.  26.3(a) and, as 
applicable, (c), performing maintenance or onsite directing of the 
maintenance of SSCs that a risk-informed evaluation process has shown 
to be significant to public health and safety; for those persons who 
are granted unescorted access to nuclear power reactor protected areas 
by the licensees and other entities in Sec.  26.3(f), performing 
maintenance or directing of the maintenance of SSCs that a risk-
informed evaluation process has shown to be significant to public 
health and safety; and
* * * * *
    (b) All persons who are granted unescorted access to nuclear power 
reactor protected areas by the licensees in Sec.  26.3(a) and, as 
applicable, (c) and who do not perform the duties described in 
paragraph (a) of this section shall be subject to an FFD program that 
meets all of the requirements of this part, except Sec. Sec.  26.205 
through 26.209 and subparts K and P of this part. All persons who are 
granted unescorted access to a facility licensed under part 57 of this 
chapter, and who do not perform or direct the performance of the duties 
described in Sec.  26.4(a), must be subject to either the requirements 
in subpart P of this part or all the requirements of this part, except 
Sec. Sec.  26.205 through 26.209 and subparts K and P, unless the 
licensee or other entity meets the criteria in Sec.  26.3(f)(3) and 
subjects these individuals to an FFD program of its own specification.
    (c) All persons who are required by a licensee in Sec.  26.3(a) 
and, as applicable, (c) to physically report to the licensee's 
Technical Support Center or Emergency Operations Facility by licensee 
emergency plans and procedures shall be subject to an FFD program that 
meets all of the requirements of this part, except Sec. Sec.  26.205 
through 26.209 and subparts K and P of this part. For licensees or 
other entities in Sec.  26.3(f), all persons without unescorted access 
to the facility who make decisions and/or direct actions regarding 
plant safety and security, and all persons who participate remotely in 
emergency response activities or physically report to the Technical 
Support Center or Emergency Operations Facility (or an equivalent 
facility), must be subject to an FFD program that satisfies either all 
of the requirements described in subpart P of this part or all the 
requirements of this part, except Sec. Sec.  26.205 through 26.209 and 
subparts K and P, unless the licensee or other entity meets the 
criteria in Sec.  26.3(f)(3) and subjects these individuals to an FFD 
program of its own specification.
* * * * *
    (e) When construction activities, as defined in Sec.  26.5, begin, 
any individual whose duties for the licensees and other entities in 
Sec.  26.3(c) require him or her to have the following types of access 
or perform the following activities at the location where the nuclear 
power plant will be constructed and operated shall be subject to an FFD 
program that meets all of the requirements of this part, except 
subparts I, K, and P of this part, and for any individual whose duties 
for the licensees and other entities in Sec.  26.3(f) require him or 
her to have the

[[Page 23710]]

following types of access, perform construction activities as defined 
in Sec.  26.5, or perform the following activities must be subject to 
an FFD program as described in subpart P or an FFD program that 
satisfies all the requirements of this part, except subparts I, K, and 
P, unless the licensee or other entity meets the criteria in Sec.  
26.3(f)(3) and subjects these individuals to an FFD program of its own 
specification:
* * * * *
    (f) Any individual who is constructing or directing the 
construction of safety- or security-related SSCs shall be subject to an 
FFD program that meets the requirements of subpart K, or, if 
applicable, subpart P of this part or all the requirements of this 
part, except for subparts I, K, and P of this part, unless the licensee 
or other entity meets the criteria in Sec.  26.3(f)(3) and subjects 
these individuals to an FFD program of its own specification.
    (g) All FFD program personnel who are involved in the day-to-day 
operations of the program, as defined by the procedures of the 
licensees and other entities in Sec.  26.3(a) through (c), and, as 
applicable, (d) and whose duties require them to have the following 
types of access or perform the following activities shall be subject to 
an FFD program that meets all of the requirements of this part, except 
subparts I, K, and P of this part, and, at the licensee's or other 
entity's discretion, subpart C of this part. All personnel whose duties 
require them to have the following types of access or perform the 
following activities at facilities licensed under part 57 of this 
chapter must be subject to the requirements in either subpart P or all 
the requirements of this part, except subparts I, K, and P, and, at the 
licensee's or other entity's discretion, subpart C of this part, unless 
the licensee or other entity meets the criteria in Sec.  26.3(f)(3) and 
subjects these individuals to an FFD program of its own specification:
* * * * *
    (h) Individuals who have applied for authorization to have the 
types of access or perform the activities described in paragraphs (a) 
through (d) of this section shall be subject to Sec. Sec.  26.31(c)(1), 
26.35(b), 26.37, 26.39, and the applicable requirements of subparts C, 
E through H, and P of this part, unless the licensee or other entity 
meets the criteria in Sec.  26.3(f)(3) and subjects these individuals 
to an FFD program of its own specification.
* * * * *
0
63. In Sec.  26.5, add, in alphabetical order, definitions for 
``Biological marker'', ``Change'', ``Consortium/third-party 
administrator'', ``Illicit substance'', ``Reduction in FFD program 
effectiveness'', and ``Special nuclear material''; and revise the 
definitions for ``Constructing or construction activities'', 
``Contractor/vendor (C/V)'', ``Other entity'', ``Reviewing official'', 
``Safety-related structures, systems, and components (SSCs)'', 
``Security-related SSCs'', and ``Unit outage'' to read as follows:


Sec.  26.5  Definitions.

* * * * *
    Biological marker means, for a part 57 licensee implementing 
subpart P of this part, an endogenous substance that is used to 
validate that the biological specimen collected for testing was 
produced by the donor.
* * * * *
    Change as used in Sec.  26.903 (c) means an action that results in 
a modification of, addition to, or removal from the licensee's or other 
entity's FFD program.
* * * * *
    Constructing or construction activities mean, for the purposes of 
this part, the tasks involved in building a nuclear power plant that 
are performed at the location where the nuclear power plant will be 
constructed and operated. These tasks include fabricating, erecting, 
integrating, and testing safety- and security-related SSCs, and the 
installation of their foundations, including the placement of concrete. 
For a licensee or other entity described in Sec.  26.3(f), construction 
is defined in Sec.  57.3 of this chapter.
    Consortium/third-party administrator means a contractor/vendor that 
provides or coordinates one or more FFD program elements for a group of 
licensees or other entities, such as administering a collective random 
testing pool and random testing selections under Sec.  
26.907(b)(2)(vi), that otherwise could not be independently implemented 
by those licensees or other entities. A consortium/third-party 
administrator also could provide access to, for example, the services 
of medical review officers, substance abuse experts, employee 
assistance programs, and HHS-certified laboratories under contract to 
perform drug testing.
    Contractor/vendor (C/V) means any company, or any individual not 
employed by a licensee or other entity specified in Sec.  26.3(a) 
through (c) and (f), who is providing work or services to a licensee or 
other entity covered in Sec.  26.3(a) through (c) and (f), either by 
contract, purchase order, oral agreement, or other arrangement.
* * * * *
    Illicit substance means a substance that causes impairment and 
possible addiction but is not an illegal drug as defined in this 
section.
* * * * *
    Other entity means any corporation, firm, partnership, limited 
liability company, association, C/V, or other organization who is 
subject to this part under Sec.  26.3(a) through (c) and (f) but is not 
licensed by the NRC.
* * * * *
    Reduction in FFD program effectiveness means, for a part 57 
licensee or other entity implementing subpart P of this part, a change 
or series of changes to an element of the FFD program that reduces or 
eliminates the licensee's ability to satisfy or maintain site-specific 
FFD program performance when compared to historical site-specific 
performance, the licensee's fleet-level program performance, or 
industry performance.
* * * * *
    Reviewing official means an employee of a licensee or other entity 
specified in Sec.  26.3(a) through (c) and (f), who is designated by 
the licensee or other entity to be responsible for reviewing and 
evaluating any potentially disqualifying FFD information about an 
individual, including, but not limited to, the results of a 
determination of fitness, as defined in Sec.  26.189, in order to 
determine whether the individual may be granted or maintain 
authorization.
    Safety-related structures, systems, and components (SSCs) means, 
for part 50 or part 52 licensees and other entities described in Sec.  
26.3(a) through (d), those SSCs that are relied on to remain functional 
during and following design basis events to ensure the integrity of the 
reactor coolant pressure boundary, the capability to shut down the 
reactor and maintain it in a safe shutdown condition, or the capability 
to prevent or mitigate the consequences of accidents that could result 
in potential offsite exposure comparable to the guidelines in Sec.  
50.34(a)(1) of this chapter. For part 57 licensees and other entities 
described in Sec.  26.3(d) and (f), safety-related has the same meaning 
as that in Sec.  57.3 of this chapter.
    Security-related SSCs means, for the purposes of this part, those 
structures, systems, and components that the licensee will rely on to 
implement the licensee's physical security and safeguards contingency 
plans that either are required under part 73 of this chapter if the 
licensee is a construction

[[Page 23711]]

permit applicant or holder or an early site permit holder, as described 
in Sec.  26.3(c)(3) through (c)(5), respectively, or are included in 
the licensee's application if the licensee is a combined license 
applicant or holder, as described in Sec.  26.3(c)(1) and (c)(2), 
respectively, or a licensee or other entity described in Sec.  26.3(d) 
or (f).
* * * * *
    Special nuclear material (SNM) has the same meaning as that in 
Sec.  70.4 of this chapter.
* * * * *
    Unit outage means, for the purposes of this part, for electricity-
generation units, that the reactor unit is disconnected from the 
electrical grid. Unit outage means, for the purposes of this part, for 
non-electricity-generation units, that the reactor unit is disconnected 
from the loads to which its output is supplied under normal operating 
conditions.
* * * * *
0
64. In Sec.  26.8, revise paragraph (b) to read as follows:


Sec.  26.8  Information collection requirements: OMB approval.

* * * * *
    (b) The approved information collection requirements contained in 
this part appear in Sec. Sec.  26.9, 26.27, 26.29, 26.31, 26.33, 26.35, 
26.37, 26.39, 26.41, 26.53, 26.55, 26.57, 26.59, 26.61, 26.63, 26.65, 
26.67, 26.69, 26.75, 26.77, 26.85, 26.87, 26.89, 26.91, 26.93, 26.95, 
26.97, 26.99, 26.101, 26.103, 26.107, 26.109, 26.111, 26.113, 26.115, 
26.117, 26.119, 26.125, 26.127, 26.129, 26.135, 26.137, 26.139, 26.153, 
26.157, 26.159, 26.163, 26.165, 26.167, 26.168, 26.169, 26.183, 26.185, 
26.187, 26.189, 26.202, 26.203, 26.205, 26.207, 26.211, 26.401, 26.403, 
26.405, 26.406, 26.407, 26.411, 26.413, 26.415, 26.417, 26.711, 26.713, 
26.715, 26.717, 26.719, 26.821, 26.903, 26.904, 26.906, 26.907, 26.908, 
26.909, 26.911, 26.913, 26.917, and 26.919.
0
65. Revise Sec.  26.21 to read as follows:


Sec.  26.21  Fitness-for-duty program.

    The licensees and other entities specified in Sec.  26.3(a) through 
(c) and (f) (for those licensees and other entities that do not 
implement the requirements in subparts P and K of this part, and do not 
implement an FFD program of their own specification if they meet the 
criteria in Sec.  26.3(f)(3) shall establish, implement, and maintain 
FFD programs that, at a minimum, comprise the program elements 
contained in this subpart. The individuals specified in Sec.  26.4(a) 
through (e) and (g), and, at the licensee's or other entity's 
discretion, Sec.  26.4(f), and, if necessary, Sec.  26.4(j) shall be 
subject to these FFD programs. Licensees and other entities may rely on 
the FFD program or program elements of a C/V, as defined in Sec.  26.5, 
if the C/V's FFD program or program elements satisfy the applicable 
requirements of this part.
0
66. In Sec.  26.35, revise paragraph (c)(3) to read as follows:


Sec.  26.35  Employee assistance programs.

* * * * *
    (c) * * *
    (3) If a licensee or other entity receives a report from EAP 
personnel under paragraph (c)(2) of this section, the licensee or other 
entity must ensure that the requirements of Sec. Sec.  26.69(d) and 
26.77(b), or the procedures and actions required by Sec.  
26.906(b)(2)(vii) are implemented, as applicable.
0
67. Revise Sec.  26.51 to read as follows:


Sec.  26.51  Applicability.

    The requirements in this subpart apply to the licensees and other 
entities identified in Sec.  26.3(a), (b), and, as applicable, (c) for 
the categories of individuals in Sec.  26.4(a) through (d), and, at the 
licensee's or other entity's discretion, in Sec.  26.4(g) and, if 
necessary, Sec.  26.4(j). The requirements in this subpart also apply 
to the licensees and other entities specified in Sec.  26.3(c), as 
applicable, for the categories of individuals in Sec.  26.4(e). At the 
discretion of a licensee or other entity in Sec.  26.3(c), the 
requirements of this subpart also may be applied to the categories of 
individuals identified in Sec.  26.4(f). In addition, the requirements 
in this subpart apply to the entities in Sec.  26.3(d) to the extent 
that a licensee or other entity relies on the C/V to satisfy the 
requirements of this subpart. Certain requirements in this subpart also 
apply to the individuals specified in Sec.  26.4(h). The requirements 
in this subpart apply to the FFD programs of licensees and other 
entities identified in Sec.  26.3(f) that elect not to implement the 
requirements in subpart P for the categories of individuals in Sec.  
26.4 and do not implement an FFD program of their own specification if 
they meet the criteria in Sec.  26.3(f)(3).
0
68. In Sec.  26.53, revise paragraph (e) introductory text, paragraph 
(g), and introductory text of paragraphs (h) and (i) to read as 
follows:


Sec.  26.53  General provisions.

* * * * *
    (e) Licensees and other entities in Sec.  26.3(a) through (c) and 
(f) may also rely on a C/V's FFD program or program elements when 
granting or maintaining the authorization of an individual who is or 
has been subject to the C/V's FFD program, if the C/V's program or 
program elements meet the applicable requirements of this part.
* * * * *
    (g) The licensees and other entities specified in Sec.  26.3(a) 
and, as applicable, (c), (d), and (f), shall identify any violation of 
any requirement of this part to any licensee who has relied on or 
intends to rely on the FFD program element that is determined to be in 
violation of this part.
    (h) The licensees and other entities specified in Sec.  26.3(a) 
and, as applicable, (c), (d), and (f), may not initiate any actions 
under this subpart without the knowledge and written consent of the 
subject individual. The individual may withdraw his or her consent at 
any time. If an individual withdraws his or her consent, the licensee 
or other entity may not initiate any elements of the authorization 
process specified in this subpart that were not in progress at the time 
the individual withdrew his or her consent, but shall complete and 
document any elements that are in progress at the time consent is 
withdrawn. The licensee or other entity shall record the individual's 
application for authorization; his or her withdrawal of consent; the 
reason given by the individual for the withdrawal, if any; and any 
pertinent information gathered from the elements that were completed 
(e.g., the results of pre-access drug tests, information obtained from 
the suitable inquiry). The licensee or other entity to whom the 
individual has applied for authorization shall inform the individual 
that--
* * * * *
    (i) The licensees and other entities specified in Sec.  26.3(a) 
and, as applicable, (c), (d), and (f), shall inform, in writing, any 
individual who is applying for authorization that the following actions 
related to providing and sharing the personal information required 
under this subpart are sufficient cause for denial or unfavorable 
termination of authorization:
* * * * *
0
69. In Sec.  26.63, revise paragraph (d) to read as follows:


Sec.  26.63  Suitable inquiry.

* * * * *
    (d) When any licensee or other entity in Sec.  26.3(a) through (d) 
and (f) is legitimately seeking the information required for an 
authorization decision under this subpart and has obtained a signed 
release from the subject individual authorizing the disclosure of 
information, any licensee or other entity subject to this part shall 
disclose whether the subject individual's authorization was denied or 
terminated

[[Page 23712]]

unfavorably as a result of a violation of an FFD policy and shall make 
available the information on which the denial or unfavorable 
termination of authorization was based, including, but not limited to, 
drug or alcohol test results, treatment and follow-up testing 
requirements or other results from a determination of fitness, and any 
other information that is relevant to an authorization decision.
* * * * *
0
70. Revise Sec.  26.73 to read as follows:


Sec.  26.73  Applicability.

    The requirements in this subpart apply to the licensees and other 
entities identified in Sec.  26.3(a), (b), and, as applicable, (c) for 
the categories of individuals specified in Sec.  26.4(a) through (d) 
and (g). The requirements in this subpart also apply to the licensees 
and other entities specified in Sec.  26.3(c), as applicable, for the 
categories of individuals in Sec.  26.4(e). At the discretion of a 
licensee or other entity in Sec.  26.3(c), the requirements of this 
subpart also may be applied to the categories of individuals identified 
in Sec.  26.4(f). In addition, the requirements in this subpart apply 
to the entities in Sec.  26.3(d) to the extent that a licensee or other 
entity relies on the C/V to satisfy the requirements of this subpart. 
The regulations in this subpart also apply to the individuals specified 
in Sec.  26.4(h) and (j), as appropriate. The requirements in this 
subpart apply to the FFD programs of licensees and other entities 
identified in Sec.  26.3(f) that elect not to implement the 
requirements in subpart P for the categories of individuals in Sec.  
26.4 and do not implement an FFD program of their own specification if 
they meet the criteria in Sec.  26.3(f)(3).
0
71. Revise Sec.  26.81 to read as follows:


Sec.  26.81  Purpose and applicability.

    This subpart contains requirements for collecting specimens for 
drug testing and conducting alcohol tests by or on behalf of the 
licensees and other entities in Sec.  26.3(a) through (d) for the 
categories of individuals specified in Sec.  26.4(a) through (d) and 
(g). At the discretion of a licensee or other entity in Sec.  26.3(c), 
specimen collections and alcohol tests must be conducted either under 
this subpart for the individuals specified in Sec.  26.4(e) and (f) or 
the licensee or other entity may rely on specimen collections and 
alcohol tests conducted under the requirements of 49 CFR part 40 for 
the individuals specified in Sec.  26.4(e) and (f). The requirements of 
this subpart do not apply to specimen collections and alcohol tests 
that are conducted under the requirements of 49 CFR part 40, as 
permitted in this paragraph and under Sec. Sec.  26.4(j) and 
26.31(b)(2) and subpart K. The requirements in this subpart apply to 
the FFD programs of licensees and other entities identified in Sec.  
26.3(f) that elect not to implement the requirements in subpart P for 
the categories of individuals in Sec.  26.4 and do not implement an FFD 
program of their own specification if they meet the criteria in Sec.  
26.3(f)(3).
0
72. In Sec.  26.97, revise paragraphs (a) and (b) to read as follows:


Sec.  26.97  Collecting oral fluid specimens for alcohol and drug 
testing.

    (a) The collector, with the assistance of a virtual collection 
monitor as permitted under Sec.  26.907(g)(2) of this chapter, if 
applicable, shall perform the oral fluid specimen collection consistent 
with the device manufacturer's instructions. At a minimum, the 
collector shall--
    (1) Check the expiration date on the device and show it to the 
donor (the device cannot be used after its expiration date).
    (2) Explain the collection process to the donor, including any 
actions the donor must perform during the collection process, and that 
a failure to cooperate with the specimen collection process will be 
considered a refusal to test and sanctions for subverting the testing 
process will be imposed.
    (3) Instruct the donor to wash and dry their hands before providing 
a specimen. If a sink is not available in the area where the collection 
is to be conducted, another equivalent method to clean the donor's 
hands must be provided (e.g., provide the donor with single use 
examination gloves to wear during the collection process).
    (4) Ensure that the donor's mouth is free of any items that could 
impede or interfere with the collection of an oral fluid specimen, such 
as food or tobacco.
    (5) Open in the presence of the donor, or direct the donor to open 
an individually wrapped or sealed package containing the device.
    (6) Instruct the donor to insert the device into their mouth to 
gather oral fluids in the manner described in the device manufacturer's 
instructions.
    (7) When the device is ready to be removed from the donor's mouth, 
follow the device manufacturer's instructions to complete the 
collection process.
    (b) If all steps in paragraph (a) of this section could not be 
completed successfully (e.g., the device breaks, the device is dropped 
on the floor, the device fails to activate), the collector, with the 
assistance of a virtual collection monitor as permitted under Sec.  
26.907(g)(2), if applicable, shall--
    (1) Discard the oral fluid specimen device;
    (2) Document the reason(s) that a new specimen collection is 
required, or the reasons that a donor has been determined to have 
refused the test; and
    (3) If a new specimen collection is required, collect a new 
specimen under paragraph (a) of this section.
* * * * *
0
73. Revise Sec.  26.201 to read as follows:


Sec.  26.201  Applicability.

    (a) The requirements in this subpart, with the exception of Sec.  
26.202, apply to the licensees and other entities identified in Sec.  
26.3(a); if applicable, (c), (d), and (f), for licensees and other 
entities not implementing the requirements in subparts K and P and that 
do not implement an FFD program of their own specification if they meet 
the criteria in Sec.  26.3(f)(3). For the licensees and other entities 
to whom the requirements in this subpart, with the exception of Sec.  
26.202, apply, the requirements in Sec. Sec.  26.203 and 26.211 apply 
to the individuals identified in Sec.  26.4(a) through (c). In 
addition, the requirements in Sec.  26.205 through Sec.  26.209 apply 
to the individuals identified in Sec.  26.4(a).
    (b) The requirements in this subpart, with the exception of Sec.  
26.203, apply to the licensees or other entities identified in Sec.  
26.3(f) implementing this subpart under Sec.  26.904. For these 
licensees and other entities, the requirements in Sec. Sec.  26.202 and 
26.211 apply to the individuals identified in Sec.  26.4(a) through (c) 
and any person licensed to operate under 10 CFR part 57; and the 
requirements in Sec. Sec.  26.205 through 26.209 apply to the 
individuals identified in Sec.  26.4(a).
0
74. Add Sec.  26.202 to read as follows:


Sec.  26.202  General provisions for facilities licensed under part 57.

    (a) Policy. Licensees must establish a policy for the management of 
fatigue for all individuals who are subject to the licensee's FFD 
program and incorporate it into the written policy required in Sec.  
26.906(a).
    (b) Procedures. In addition to the procedures required in Sec.  
26.906(b), licensees must develop, implement, and maintain procedures 
that--
    (1) Describe the process to be followed when any individual 
identified in Sec.  26.4(a) through (c) makes a self-declaration that 
the individual is not fit to safely and competently perform his or her 
duties for any part of a working tour as a result of fatigue. The 
procedure must--

[[Page 23713]]

    (i) Describe the individual's and licensee's rights and 
responsibilities related to self-declaration;
    (ii) Describe requirements for establishing controls and conditions 
under which an individual may be permitted or required to perform work 
after that individual declares that he or she is not fit due to 
fatigue; and
    (iii) Describe the process to be followed if the individual 
disagrees with the results of a fatigue assessment that is required 
under Sec.  26.211(a)(2);
    (2) Describe the process for implementing the controls required 
under Sec.  26.205 for the individuals who are performing the duties 
listed in Sec.  26.4(a);
    (3) Describe the process to be followed in conducting fatigue 
assessments under Sec.  26.211; and
    (4) Describe the disciplinary actions that the licensee may impose 
on an individual following a fatigue assessment, and the conditions and 
considerations for taking those disciplinary actions.
    (c) Training and assessments. Licensees must include the following 
knowledge and abilities in the content of the training and trainee 
assessments required in Sec.  26.908:
    (1) Knowledge of the contributors to worker fatigue, circadian 
variations in alertness and performance, indications and risk factors 
for common sleep disorders, shiftwork strategies for obtaining adequate 
rest, and the effective use of fatigue countermeasures; and
    (2) Ability to identify symptoms of worker fatigue and contributors 
to decreased alertness in the workplace.
    (d) Recordkeeping. Licensees must retain the following records for 
at least 3 years or until the completion of all related legal 
proceedings, whichever is later:
    (1) Records of work hours for individuals who are subject to the 
work hour controls in Sec.  26.205;
    (2) For licensees implementing the requirements of Sec.  
26.205(d)(3), records of shift schedules and shift cycles, or, for 
licensees implementing the requirements of Sec.  26.205(d)(7), records 
of shift schedules and records showing the beginning and end times and 
dates of all averaging periods, of individuals who are subject to the 
work hour controls in Sec.  26.205;
    (3) The documentation of waivers that is required in Sec.  
26.207(a)(4), including the bases for granting the waivers;
    (4) The documentation of work hour reviews that is required in 
Sec.  26.205(e)(3) and (e)(4); and
    (5) The documentation of fatigue assessments that is required in 
Sec.  26.211(g).
    (e) Reporting. Licensees must include the following information in 
a standard format in the annual FFD program performance report required 
under Sec.  26.917(b)(2):
    (1) A summary for each nuclear power plant site of all instances 
during the previous calendar year when the licensee waived one or more 
of the work hour controls specified in Sec.  26.205(d)(1) through 
(d)(5)(i) and (d)(7) for individuals described in Sec.  26.4(a). The 
summary must include only those waivers under which work was performed. 
If it was necessary to waive more than one work hour control during any 
single extended work period, the summary of instances must include each 
of the work hour controls that were waived during the period. For each 
category of individuals specified in Sec.  26.4(a), the licensee must 
report--
    (i) The number of instances when each applicable work hour control 
specified in Sec.  26.205(d)(1)(i) through (iii), (d)(2)(i) and (ii), 
(d)(3)(i) through (v), and (d)(7) was waived for individuals not 
working on outage activities;
    (ii) The number of instances when each applicable work hour control 
specified in Sec.  26.205(d)(1)(i) through (iii), (d)(2)(i) and (ii), 
(d)(3)(i) through (v), (d)(4) and (d)(5)(i), and (d)(7) was waived for 
individuals working on outage activities; and
    (iii) A summary that shows the distribution of waiver use among the 
individuals applicable within each category of individuals identified 
in Sec.  26.4(a) (e.g., a table that shows the number of individuals 
who received only one waiver during the reporting period, the number of 
individuals who received a total of two waivers during the reporting 
period).
    (2) A summary of corrective actions, if any, resulting from the 
analyses of these data, including fatigue assessments.
    (f) Audits. Licensees must audit the management of worker fatigue 
under Sec.  26.915.
0
75. In Sec.  26.205, revise paragraphs (d)(7)(iii) and (d)(8) to read 
as follows:


Sec.  26.205  Work hours.

* * * * *
    (d) * * *
    (7) * * *
    (iii) Each licensee shall state, in its FFD policy and procedures 
required by either Sec.  26.27 and Sec.  26.203(a) and (b) or Sec.  
26.202(a) and (b) and Sec.  26.906, the work hour counting system in 
Sec.  26.205(d)(7)(ii) the licensee is using.
    (8) Each licensee shall state, in its FFD policy and procedures 
required by either Sec.  26.27 and Sec.  26.203(a) and (b) or Sec.  
26.202(a) and (b) and Sec.  26.906, the requirements with which the 
licensee is complying: the minimum days off requirements in Sec.  
26.205(d)(3) or maximum average work hours requirements in Sec.  
26.205(d)(7).
* * * * *
0
76. In Sec.  26.207, revise paragraph (a)(1)(ii) to read as follows:


Sec.  26.207  Waivers and exceptions.

    (a) * * *
    (1) * * *
    (ii) A supervisor assesses the individual face to face and 
determines that there is reasonable assurance that the individual will 
be able to safely and competently perform his or her duties during the 
additional work period for which the waiver will be granted. The 
supervisor performing the assessment shall be trained as required by 
either Sec.  26.29 and Sec.  26.203(c) or Sec.  26.202(c) and Sec.  
26.908 and shall be qualified to direct the work to be performed by the 
individual. If there is no supervisor on site who is qualified to 
direct the work, the assessment may be performed by a supervisor who is 
qualified to provide oversight of the work to be performed by the 
individual. At a minimum, the assessment must address the potential for 
acute and cumulative fatigue considering the individual's work history 
for at least the past 14 days, the potential for circadian degradations 
in alertness and performance considering the time of day for which the 
waiver will be granted, the potential for fatigue-related degradations 
in alertness and performance to affect risk-significant functions, and 
whether any controls and conditions must be established under which the 
individual will be permitted to perform work. For licensees and other 
entities in Sec.  26.3(f), the assessment may be performed remotely 
using electronic communications. In such instances, the assessment must 
be supported by someone who is present in-person with the individual 
whose alertness may be impaired, and that supporting person must be 
trained under the requirements of either Sec.  26.29 and Sec.  
26.203(c) or Sec.  26.202(c) and Sec.  26.908.
* * * * *
0
77. In Sec.  26.211, revise paragraphs (a)(1) and (3) and the 
introductory text of paragraph (b) to read as follows:


Sec.  26.211  Fatigue assessments.

    (a) * * *
    (1) For-cause. In addition to any other test or determination of 
fitness that may be required under Sec. Sec.  26.31(c), 26.77, 
26.907(b), and 26.919, a fatigue

[[Page 23714]]

assessment must be conducted in response to an observed condition of 
impaired individual alertness creating a reasonable suspicion that an 
individual is not fit to safely and competently perform his or her 
duties, except if the condition is observed during an individual's 
break period. If the observed condition is impaired alertness with no 
other behaviors or physical conditions creating a reasonable suspicion 
of possible substance abuse, then the licensee need only conduct a 
fatigue assessment. If the licensee has reason to believe that the 
observed condition is not due to fatigue, the licensee need not conduct 
a fatigue assessment;
* * * * *
    (3) Post-event. A fatigue assessment must be conducted in response 
to events requiring post-event drug and alcohol testing as specified in 
Sec.  26.31(c) or post-event tests in Sec.  26.907(b)(4). Licensees may 
not delay necessary medical treatment in order to conduct a fatigue 
assessment; and
* * * * *
    (b) Only supervisors and FFD program personnel who are trained 
under either Sec. Sec.  26.29 and 26.203(c) or Sec. Sec.  26.202(c) and 
26.908 may conduct a fatigue assessment. The fatigue assessment must be 
conducted face to face with the individual whose alertness may be 
impaired. For licensees and other entities in Sec.  26.3(f), a fatigue 
assessment may be performed remotely using electronic communications. 
In such instances, the fatigue assessment must be supported by someone 
who is present in-person with the individual whose alertness may be 
impaired, and that supporting person must be trained in accordance with 
the requirements of either Sec. Sec.  26.29 and 26.203(c) or Sec. Sec.  
26.202(c) and 26.908.
* * * * *
0
78. Revise Sec.  26.709 to read as follows:


Sec.  26.709  Applicability.

    (a) The requirements of this subpart apply to the FFD programs of 
licensees and other entities specified in Sec.  26.3(a) through (d), 
except for FFD programs that are implemented under subpart K of this 
part.
    (b) The requirements in this subpart apply to the FFD programs of 
licensees and other entities specified in Sec.  26.3(f) that elect not 
to implement the requirements in subpart P and do not implement an FFD 
program of their own specification if they meet the criteria in Sec.  
26.3(f)(3).
0
79. In Sec.  26.711, revise paragraphs (c) and (d) to read as follows:


Sec.  26.711  General provisions.

* * * * *
    (c) The licensees and other entities specified in Sec.  26.3(a) 
and, as applicable, (c), (d), and (f), shall inform each individual of 
his or her right to review information about the individual that is 
collected and maintained under this part to assure its accuracy. 
Licensees and other entities shall provide the individual with an 
opportunity to correct any inaccurate or incomplete information that is 
documented by licensees and other entities about the individual.
    (d) Licensees and other entities shall ensure that only correct and 
complete information about individuals is retained and shared with 
other licensees and entities. If, for any reason, the shared 
information used for determining an individual's eligibility for 
authorization under this part changes or new information is developed 
about the individual, licensees and other entities shall correct or 
augment the shared information contained in the records. If the changed 
or developed information has implications for adversely affecting an 
individual's eligibility for authorization, a licensee and other entity 
specified in Sec.  26.3(a) and, as applicable, (c), (d), and (f), who 
has discovered the incorrect information, or develops new information, 
shall inform the reviewing official of any FFD program under which the 
individual is maintaining authorization of the updated information on 
the day of discovery. The reviewing official shall evaluate the 
information and take appropriate actions, which may include denial or 
unfavorable termination of the individual's authorization.
0
80. Add Subpart P, consisting of Sec. Sec.  26.901 through 26.919, to 
read as follows:

Subpart P--Fitness-for-Duty Programs for Facilities Licensed Under 
10 CFR Part 57

Sec.  26.901 Applicability.
Sec.  26.903 General provisions.
Sec.  26.904 FFD program requirements.
Sec.  26.906 Written policy and procedures.
Sec.  26.907 Drug and alcohol testing.
Sec.  26.908 FFD program training.
Sec.  26.909 Behavioral observation.
Sec.  26.910 Sanctions.
Sec.  26.911 Protection of information.
Sec.  26.913 Appeals process.
Sec.  26.915 Audits.
Sec.  26.917 Recordkeeping, reporting, and FFD program performance.
Sec.  26.919 Suitability and fitness determinations.


Sec.  26.901  Applicability.

    A licensee or other entity in Sec.  26.3(f) that elects to 
implement the requirements of this subpart must establish, implement, 
and maintain a fitness-for-duty (FFD) program that satisfies the 
requirements of this subpart for those categories of individuals in 
Sec.  26.4, as applicable, and any person licensed to operate under 10 
CFR part 57.


Sec.  26.903  General provisions.

    (a) FFD program description. An applicant's description of the FFD 
program in its final safety analysis report, required by subparts C and 
D of 10 CFR part 57, must include--
    (1) A discussion of the applicability of the FFD program to those 
individuals described in Sec.  26.4 and how the program will be 
implemented at a facility authorized to assemble or perform non-
operational testing of a manufactured reactor under a manufacturing 
license issued under part 57 of this chapter, if applicable; and
    (2) A description of the drug and alcohol testing and fitness 
determination process to be implemented through the licensee's or other 
entity's procedures, including the collection and testing facilities to 
be used, biological specimens to be collected and tested, and sanctions 
to be imposed for FFD policy violations.
    (b) FFD program implementation and availability. For the licensees 
and other entities implementing the requirements of this subpart, the 
FFD program must be implemented as stated in Sec.  26.904(a). For the 
holder of an operating license under part 57 of this chapter, the FFD 
program must be maintained until the NRC's docketing of the license 
holder's certifications described in Sec.  57.305 of this chapter. For 
the holder of a manufacturing license under part 57 of this chapter, 
the FFD program must be maintained until expiration of the 
manufacturing license.
    (c) FFD program change control.
    (1) The licensee or other entity may make changes to its FFD 
program under this subpart if--
    (i) The licensee or other entity performs and retains an analysis 
demonstrating that the changes do not reduce the effectiveness of the 
FFD program; or
    (ii) The change was necessitated or justified by a change to part 
26, laboratory processes or procedures, or guidance issued by the HHS 
or NRC, as implemented by the licensee or other entity though its 
procedures.
    (2) A licensee or other entity desiring to make a change that 
decreases FFD program effectiveness must implement a mitigating 
strategy so the FFD program, as revised, will continue to satisfy the 
performance objectives in Sec.  26.23 and

[[Page 23715]]

will not result in a reduction in FFD program effectiveness.
    (3) Notwithstanding Sec.  26.903(c)(1)(ii), the change control 
process may not be used to reduce the minimum panel of drugs to be 
tested in Sec.  26.907(c)(1).
    (4) The licensee must retain a record of each change made under 
this section for a period of at least 5 years from the date the change 
was implemented and summarize this change in its annual FFD performance 
report required by Sec.  26.917(b)(2) or Sec.  26.717, as applicable.


Sec.  26.904  FFD program requirements.

    (a) The licensee or other entity must establish, implement, and 
maintain an FFD program under this subpart before the start of--
    (1) for a holder of a manufacturing license, activities authorized 
by the manufacturing license;
    (2) for a holder of a construction permit, construction activities 
as defined in Sec.  26.5;
    (3) for the holder of an operating license--
    (i) operational testing of a manufactured reactor at a 
manufacturing facility; and
    (ii) the earliest occurrence of the following at the operating 
site, as applicable:
    (A) the loading of fuel into a reactor vessel;
    (B) the receipt of a fueled manufactured reactor; and
    (C) individuals subject to part 26 operate, test, perform 
maintenance of, or direct the maintenance or surveillance of security-
related equipment or equipment that a risk-informed evaluation process 
has shown to be significant to public health and safety; and
    (4) for a general licensee under Sec.  57.45(d), construction 
activities as defined in Sec.  26.5.
    (b) The FFD program required by this subpart must:
    (1) Apply to those individuals described in Sec.  26.4, as 
applicable; and
    (2) Implement the following requirements and subparts:
    (i) Section 26.23, Performance objectives;
    (ii) Section 26.35, Employee assistance programs;
    (iii) Section 26.903, General provisions;
    (iv) Section 26.906, Written policies and procedures;
    (v) Section 26.907, Drug and alcohol testing;
    (vi) Section 26.908, FFD program training;
    (vii) Section 26.909, Behavioral observation;
    (viii) Section 26.910, Sanctions;
    (ix) Section 26.911, Protection of information;
    (x) Section 26.913, Appeals process;
    (xi) Section 26.915, Audits;
    (xii) Section 26.917, Recordkeeping, reporting, and FFD program 
performance;
    (xiii) Section 26.919, Suitability and fitness determinations;
    (xiv) Subpart A--Administrative Provisions;
    (xv) Subpart I--Managing Fatigue; and
    (xvi) Subpart O--Inspections, Violations, and Penalties.


Sec.  26.906  Written policy and procedures.

    (a) Licensees and other entities that implement an FFD program 
under this subpart must ensure that--
    (1) A written FFD policy statement is provided to each individual 
who is subject to the program before the individual is subject to drug 
and alcohol testing.
    (2) The FFD policy statement describes the performance objectives 
in Sec.  26.23.
    (3) The FFD policy statement describes the minimum days off 
requirements in Sec.  26.205(d)(3) or maximum average work hours 
requirements in Sec.  26.205(d)(7).
    (4) The FFD policy statement must be written in sufficient detail 
to provide affected individuals with information on what is expected of 
them and what consequences may result from a lack of adherence to the 
policy, including those elements described in Sec.  26.906(b), part 26-
required sanctions, and required medical/clinical treatment and follow-
up testing for FFD policy violations.
    (5) The FFD policy statement describes the individual's 
responsibilities to report for work in a physiological and 
psychological condition that enables the safe and competent performance 
of assigned duties and responsibilities and inform a licensee- or other 
entity-designated representative when the individual determines that 
this cannot be accomplished.
    (6) The FFD policy statement must prohibit the consumption of 
alcohol, at a minimum, within an abstinence period of 5 hours preceding 
the individual's arrival at the licensee's or other entity's facility.
    (7) The FFD policy statement must convey that abstinence from 
alcohol for the 5 hours preceding any scheduled tour of duty is 
considered to be a minimum that is necessary, but may not be 
sufficient, to ensure that the individual is fit for duty.
    (b) Licensees and other entities must establish, implement, and 
maintain written procedures that address the following topics:
    (1) For the drug and alcohol testing program under this subpart,
    (i) The methods and techniques to collect and test for drugs and 
alcohol and for the shipping and temporary storage of biological 
specimens used for drug testing at HHS-certified laboratories,
    (ii) The urine specimen volumes, techniques for split specimen 
collections, and the acceptability of a urine specimen as described in 
Sec.  26.111 or as described in the HHS Guidelines,
    (iii) Protecting the privacy of an individual who provides a 
specimen, protecting the integrity of the specimen, and ensuring that 
the test results are valid and attributable to the correct individual, 
and
    (iv) If the licensee or other entity elects to use the HHS 
Guidelines, the name of the specific HHS Guideline and revision being 
implemented by the licensee or other entity and a description of the 
specific sections in the guideline that are being implemented in the 
procedure, including specimen collections, drug testing, and evaluation 
of test results.
    (2) The immediate and follow-up actions that will be taken, and the 
procedures to be used, in those cases in which individuals who are 
subject to the FFD program:
    (i) Have been involved in the use, sale, or possession of illegal 
substances, illegal drugs, or illicit substances;
    (ii) Are impaired by any illegal substances, illegal drugs, or 
illicit substances or the consumption of alcohol as determined by 
behavioral observation or a test that measures blood alcohol 
concentration;
    (iii) Attempted to subvert the testing process by adulterating or 
diluting specimens (in vivo or in vitro), substituting specimens, or by 
any other means;
    (iv) Refused to provide a specimen for analysis or follow 
instructions provided by FFD program personnel;
    (v) Had legal action taken relating to drug or alcohol use;
    (vi) Demonstrated character or actions indicating that the 
individual cannot be trusted or relied upon to perform those duties and 
responsibilities or maintain access to NRC-licensed facilities, special 
nuclear material (SNM), or sensitive information; or
    (vii) Have a condition or have taken actions that pose or have 
posed an immediate hazard to themselves or others, as notified by EAP 
personnel under Sec.  26.35(c)(2).
    (3) The process, including the duties and responsibilities of FFD 
program

[[Page 23716]]

personnel, to be followed if an individual's behavior or condition 
raises a concern regarding the possible use, sale, or possession of 
illegal drugs on- or offsite; the possible use or possession of alcohol 
on the NRC-licensed facility; impairment from any cause that in any way 
could adversely affect the individual's ability to safely and 
competently perform the individual's duties; or the receipt of credible 
information indicating that the individual cannot be trusted or relied 
on to perform those duties and responsibilities making the individual 
subject to this part.
    (4) Operation and oversight of any onsite or offsite collection 
facility.
    (5) The fatigue management requirements in Sec. Sec.  26.202(b) and 
either 26.205(d)(3) or (d)(7).
    (6) Measures to prevent subversion of drug and alcohol tests 
conducted onsite and offsite.


Sec.  26.907  Drug and alcohol testing.

    Licensees and other entities must perform drug and alcohol testing 
that complies with the following requirements--
    (a) Split specimens. Split specimen collections of oral fluid or 
urine must be used for the test conditions described in paragraph (b) 
of this section. Testing of the split specimen (specimen B) requires 
the donor's permission unless ordered by the MRO to resolve an invalid 
test result obtained for specimen A.
    (b) Test conditions. Individuals identified in Sec.  26.4 must be 
subject to drug and alcohol testing under the following conditions:
    (1) Pre-access. A pre-access test must be conducted for drugs and 
alcohol before performing or directing the conduct of roles and 
responsibilities making the individual subject to this subpart or being 
granted unescorted access to the protected areas of the NRC-licensed 
facility. A pre-access test must have been conducted no more than 14 
days before the individual is granted unescorted access.
    (2) Random. Random testing for drugs and alcohol must--
    (i) Be administered in a manner that provides reasonable assurance 
that individuals are unable to predict the time periods during which 
specimens will be collected;
    (ii) Require individuals who are selected for random testing to 
report to the onsite collection site as soon as reasonably practicable 
after notification, within the time period specified in the FFD program 
procedure;
    (iii) Ensure that all individuals in the population that is subject 
to random testing on a given day have an equal probability of being 
selected and tested;
    (iv) Ensure that an individual completing a test is immediately 
eligible for another random test; and
    (v) Ensure that the sampling process used to select individuals for 
random testing provides that the number of random tests performed 
annually is equal to at least 50 percent of the population that is 
subject to the FFD program at the NRC-licensed site.
    (vi) If the number of individuals subject to random testing at an 
NRC-licensed site is such that paragraph (b)(2)(v) of this section 
cannot be implemented without predictable outcomes, the licensee must 
use a consortium/third-party administrator to manage the random testing 
pool and make selections for testing throughout the year. In such 
instances, the consortium/third-party administrator must ensure that 
the testing rate for the random testing pool from which they sample 
meets the requirement in paragraph (b)(2)(v).
    (3) For-cause. For-cause drug and alcohol tests must be conducted 
onsite in response to an individual's observed behavior or physical 
condition indicating possible substance abuse, as defined in Sec.  
26.5. A for-cause drug test, alcohol test, or both, must be conducted 
onsite after receiving credible information either that an individual 
is engaging in substance abuse or in response to a portal area 
screening test result under paragraph (i) of this section.
    (4) Post-event. A post-event test for drugs and alcohol must be 
conducted--
    (i) As soon as practical after an event involving a human error 
that was committed by an individual specified in Sec.  26.4, where the 
human error may have caused or contributed to the event. This test must 
be conducted onsite unless the individual requires offsite medical 
care. The licensee or other entity must test the individual(s) who 
committed or directed the error and need not test individuals who were 
affected by the event and whose actions likely did not cause or 
contribute to the event. The licensee or other entity must describe in 
its procedures what constitutes a human error.
    (ii) Within 4 hours of an event unless immediate medical 
intervention precludes the conduct of the test on the individual(s) who 
caused or contributed to the accident(s), if the event results in--
    (A) An illness or personal injury to any individual which results 
in death, days away from work, restricted work, transfer to another 
job, medical treatment beyond first aid, loss of consciousness, or 
other significant illness or injury, as diagnosed by a licensee- or 
other entity-designated physician or other licensed health care 
professional, even if the illness or injury does not result in death, 
days away from work, restricted work or job transfer, medical treatment 
beyond first aid, or loss of consciousness; or
    (B) Damage to any safety- or security-related structures, systems, 
and components; and
    (5) Follow-up. An individual subject to part 26 who has violated 
the FFD policy for substance use or abuse, or the sale, use, or 
possession of illegal drugs must be subject to a follow-up series of 
tests for drugs, alcohol, or both to verify an individual's continued 
abstinence from substance abuse.
    (c) Urine and oral fluid specimens.
    (1) All urine or oral fluid specimens must be tested for the 
substances listed in Sec.  26.31(d)(1), except as allowed by Sec.  
26.903(c)(3). All urine specimens must be subject to validity testing 
as specified in either this part or the HHS Guidelines. All oral fluid 
specimens may be subject to validity testing, including a biological 
marker, as specified in either this part or the HHS Guidelines.
    (2) For the use of urine as the biological specimen to be tested, 
the following requirements must be implemented--
    (i) Section 26.115, Collecting a urine specimen under direct 
observation;
    (ii) Section 26.119, Determining ``shy'' bladder; and
    (iii) Section 26.163, Cutoff levels for drugs and drug metabolites.
    (3) For alcohol testing onsite, the following requirements must be 
implemented--
    (i) Section 26.91, Acceptable devices for conducting initial and 
confirmatory tests for alcohol and methods of use;
    (ii) Section 26.93, Preparing for alcohol testing;
    (iii) Section 26.95, Conducting an initial test for alcohol using a 
breath specimen;
    (iv) Section 26.97, Collecting oral fluid specimens for alcohol and 
drug testing;
    (v) Section 26.99, Determining the need for a confirmatory test for 
alcohol;
    (vi) Section 26.101, Conducting a confirmatory test for alcohol; 
and,
    (vii) Section 26.103, Determining a confirmed positive test result 
for alcohol.
    (4) For all test conditions in Sec.  26.907(b), MRO-directed tests 
under Sec.  26.185, and the testing of a split specimen, drug testing 
must be performed at an HHS-certified laboratory for the specific 
biological

[[Page 23717]]

specimen to be tested. Only HHS-certified laboratory test results from 
urine and oral fluid specimens may be used for the issuance of a part 
26-required sanction.
    (5) The licensee or other entity must establish and maintain a 
contract with an HHS-certified laboratory for each specimen to be 
tested. Each contract must stipulate the following:
    (i) The laboratory must comply with the applicable provisions of 
any State licensor requirements;
    (ii) Laboratory records and documents must be provided and/or able 
to be photocopied and removed from the premises to support an 
inspection or audit;
    (iii) The laboratory must make available qualified personnel to 
testify in an administrative or disciplinary proceeding against an 
individual when that proceeding is based on test results reported by 
the HHS-certified laboratory;
    (iv) The laboratory must maintain test records in confidence, 
consistent with the requirements of Sec.  26.37, and use them with the 
highest regard for individual privacy;
    (v) Consistent with the principles established in section 503 of 
Public Law 100-71, any employee of a licensee or other entity who is 
the subject of a drug test (or his or her representative designated 
under Sec.  26.37(d)) must, on written request, have access to the 
laboratory's records related to his or her validity and drug test and 
any records related to the results of any relevant certification, 
review, or revocation-of-certification proceedings;
    (vi) The laboratory may not enter into any relationship with the 
licensee's or other entity's MRO(s) that may be construed as a 
potential conflict of interest, including, but not limited to, the 
relationships described in Sec.  26.183(b), and may not derive any 
financial benefit by having a licensee or other entity use a specific 
MRO; and
    (vii) The laboratory must permit representatives of the NRC and any 
licensee or other entity using the laboratory's services to inspect the 
laboratory at any time, including unannounced inspections.
    (d) Privacy and integrity. The specimen collection and drug and 
alcohol testing procedures of FFD programs must protect the donor's 
privacy and the integrity of the specimen and implement quality 
controls to ensure that test results are valid and attributable to the 
correct individual.
    (e) Offsite collection facilities. At the licensee's or other 
entity's discretion, except for those specimens that must be collected 
onsite under Sec.  26.907(b)(3) and (4), specimen collections and 
alcohol testing may be conducted at a local hospital or other facility 
licensed to conduct specimen collections and perform alcohol testing 
and audited by the State or a State-designated entity. The licensee or 
other entity must audit these facilities, if used, before their initial 
use and then on a biennial basis to confirm that the facility 
procedures are comparable to those described in subpart E of this part 
or the HHS Guidelines for urine and oral fluid.
    (f) Initial testing. A licensee or other entity subject to this 
subpart performing an initial test must use an immunoassay, or an 
alternative technology as specified in the HHS Guidelines for the 
specific biological specimen that is to be tested. Specimens that yield 
positive, positive and dilute, adulterated, substituted, or invalid 
initial validity or drug test results or discrepant biological markers 
must be subject to confirmatory testing by an HHS-certified laboratory, 
certified for that biological specimen, except for invalid specimens 
that cannot be tested.
    (g) Oral fluid testing.
    (1) If the licensee or other entity elects to use oral fluid for 
drug or alcohol testing, the collection, packaging, temporary storage 
and shipment of an oral fluid specimen to an HHS-certified laboratory 
for drug testing, or the collection of an oral fluid specimen for 
alcohol testing must be performed in accordance with licensee- or other 
entity-established procedures based either on the requirements in this 
part or the procedures in HHS Guidelines identified by the licensee or 
other entity in Sec.  26.906(b)(1)(iv). The oral fluid device must not 
expire before the date of the collection of the specimen for testing. 
The drugs, drug metabolites, initial and confirmatory testing cutoffs, 
and biological markers, if applicable, must be those established by the 
HHS Guidelines for oral fluid testing and the alcohol cutoffs in this 
part or, if not established by the HHS Guidelines or this part for the 
panel of drugs and drug metabolites to be tested, as determined and 
documented by a forensic toxicologist review conducted pursuant to 
Sec.  26.31(d)(1)(i)(D).
    (2) The virtual collection of oral fluid specimens for drug and 
alcohol testing is only permitted for sites that must use a consortium/
third-party administrator to implement random testing under Sec.  
26.907(b)(2)(vi). For a licensee or other entity to utilize a virtual 
oral fluid specimen collection process, the following must apply or 
should be considered, as applicable:
    (i) The specimen collector completing the virtual collection must 
meet the requirements in 10 CFR 26.85, ``Collector qualifications and 
responsibilities.''
    (ii) The oral fluid specimen collection process must be completed 
as described in Sec.  26.97, ``Collecting oral fluid specimens for 
alcohol and drug testing,'' and Sec.  26.99, ``Determining the need for 
a confirmatory test for alcohol.''
    (iii) An individual other than the donor (i.e., a virtual 
collection monitor) may be needed in the location where the specimen 
collection is to be performed to assist the virtual collector in 
completing activities, performing observations, or both.
    (iv) If a virtual collection monitor is used to assist the specimen 
collector in completing an oral fluid specimen collection, then the 
virtual specimen collector must explain the collection process to the 
monitor and provide instruction to the monitor on required activities 
to be performed during the collection process. The monitor's name must 
be recorded on the Federal CCF for drug testing specimens, or an 
analogous document for alcohol testing.
    (v) Video teleconference communication method(s) must provide 
sufficient visual and aural clarity to complete the process and ensure 
that a donor is not able to subvert the testing process.
    (vi) Collection kit materials must be maintained in a secure 
fashion until the virtual collector initiates the virtual collection 
process with the donor.
    (vii) The licensee or other entity's written FFD procedures must 
describe in detail the virtual collection process and when and how it 
is to be implemented.
    (viii) The virtual collection procedure must address problem 
collections, such as the video teleconference becomes inoperable during 
the collection process or the donor is unable to provide an oral fluid 
specimen of sufficient quantity to complete the specimen collection 
process for drug or alcohol testing.
    (ix) The virtual collection procedure must include steps to collect 
a breath specimen using an EBT if the oral fluid specimen test result 
under Sec.  26.99(b) requires a confirmatory testing for alcohol under 
Sec.  26.101. At a minimum, a donor with an oral fluid specimen test 
result requiring confirmatory testing for alcohol must be removed from 
duty pending additional testing.
    (h) Hair testing. The testing of hair specimens may only be used to 
inform a licensee's or other entity's determination of whether the 
individual is trustworthy and reliable under the test condition in 
Sec.  26.907(b)(1) to

[[Page 23718]]

supplement the information gained from a pre-access test using oral 
fluid or urine as the test specimen and must be conducted at an HHS-
certified laboratory certified to test hair specimens.
    (1) If used, this process must be described in the licensee's or 
other entity's FFD policy and described in detail in its procedure. The 
panel of drugs and drug metabolites to be evaluated must only include 
those listed as Schedule I or II of section 202 of the Controlled 
Substances Act [21 U.S.C. 812]. The collection, packaging, and 
temporary storage of a hair specimen and shipment of the specimen to an 
HHS-certified laboratory must be conducted in accordance with the HHS 
Guidelines. The licensee- or other entity-designated FFD program 
personnel must conduct the collection, packaging, temporary storage, 
shipping, and custody and control of the specimen.
    (2) Before the licensee or other entity begins to conduct hair 
testing, the initial and confirmatory testing cutoffs must be the 
cutoffs established by the HHS Guidelines for hair testing or, if not 
established by the HHS Guidelines or this part, as determined by a 
forensic toxicologist review conducted pursuant to Sec.  
26.31(d)(1)(i)(D).
    (3) Confirmed positive test results must be considered potentially 
disqualifying FFD information until proven otherwise by a review under 
Sec.  26.913. Sanctions under this subpart must not be issued for any 
FFD policy violation involving a drug test using a hair specimen unless 
the licensee or other entity determines that the individual has 
attempted to subvert the testing process, as defined in Sec.  26.5, for 
the hair test.
    (i) Portal area screening. A non-invasive testing instrument may be 
used to screen individuals for drugs, drug metabolites, and alcohol 
before the individuals' entry into or exit from a protected or vital 
area.
    (1) The instrument must be operated in accordance with the 
manufacturer's specifications. If screening detects the presence of any 
drug, drug metabolite, or alcohol at or above the instrument set 
point(s), the individual screened by the instrument must be subject to 
for-cause testing under Sec.  26.907(b)(3).
    (2) Annually, the licensee or other entity must verify the accuracy 
of the portal area screening test for each substance with any positive 
results. If at least 85 percent of the positive portal area screening 
test results for a substance in the past 12 months do not subsequently 
confirm positive on for-cause testing performed under paragraph (i)(1) 
of this section, the licensee or other entity cannot continue to use 
the screening test for the particular substance until such time as 
corrective actions have been implemented to improve the testing 
accuracy.
    (3) A part 26 sanction may not be issued to an individual based 
solely on a portal area screening instrument detection that drugs or 
alcohol exceed the instrument's established setpoint.
    (j) Blood testing. The testing of blood specimens may only be 
conducted under the order of the licensee- or other entity-designated 
MRO for a valid medical reason as confirmed by the MRO pursuant to 
Sec.  26.31(d)(5). This specimen must be subject to testing by a 
laboratory that satisfies quality control requirements that are 
comparable to those required for certification by the HHS.
    (k) Federal custody and control form. For the collection and 
packaging of urine, oral fluid, and hair specimens for drug testing, 
the licensee or other entity must use a Federal CCF.
    (l) Medical Review Officer. Licensees or other entities must--
    (1) Require their designated MRO to review positive, positive and 
dilute, adulterated, substituted, and invalid confirmatory drug and 
validity test results to determine whether the donor has violated the 
FFD policy. The review must be completed before reporting the results 
to the individual designated by the licensee or other entity to assess 
authorization or perform the suitability and fitness determinations 
required under Sec.  26.919, or, if required, that are described in 
subpart H of this part.
    (2) Require their MRO to satisfy the requirements in Sec.  26.183 
and, prior to conducting any activities under this part, attend and 
pass a medical- or clinical-based training session to improve his/her 
knowledge of MRO duties and responsibilities, drug and alcohol testing 
processes and procedures, and evaluation of drug testing results. This 
training session must be conducted by a nationally recognized MRO 
training and certification organization that has been assessed by the 
licensee's or other entity's FFD program personnel to include the 
technical elements an MRO must implement under Sec.  26.185. An MRO who 
performed the duties and responsibilities in Sec. Sec.  26.185 and 
26.187 for at least 3 continuous years in the last 10 years prior to 
being hired or contracted by the licensee or other entity satisfies the 
requirements in this paragraph (l)(2).
    (3) Require their MRO to attend a medical- or clinical-based 
training session at least every 5 years to improve his/her knowledge of 
changes in drug and alcohol testing processes and procedures and 
evaluation of drug testing results.
    (4) Require their MRO to determine whether a biological specimen is 
positive, positive and dilute, adulterated, substituted, or invalid by 
implementing the requirements in Sec.  26.185 or the HHS Guidelines 
through the licensee's or other entity's procedures.
    (i) If Sec.  26.185 or the HHS Guidelines, as used by the licensee 
or other entity in its procedures, are insufficient to make this 
determination, then guidance issued by a State agency in the State in 
which the NRC-licensed facility is located, Federal agencies, or 
nationally recognized MRO training and certification organizations may 
be used to inform an MRO determination.
    (ii) An MRO need not review alcohol test results, including 
positive confirmatory alcohol test results determined by an EBT under 
Sec.  26.907(c)(3)(vi) and (vii).
    (5) Require their MRO to determine and approve the use of oral 
fluid or urine as an alternative biological specimen when the donor 
cannot provide a specimen for testing. This determination and the 
retest must be documented and completed as soon as reasonably 
practicable.
    (6) Require the MRO to review all specimen test results associated 
with drug-related FFD policy violations. This review includes split 
specimens and all specimens taken to resolve a discrepant condition, 
such as a possible subversion attempt, impairment without a known 
cause, or a donor-requested or MRO-directed retest. To resolve a 
discrepant condition, the MRO is authorized to test a specimen for a 
biological marker, adulterants, or additional drugs.
    (m) Limitations of screening and testing. Specimens collected under 
NRC regulations may only be designated or approved for screening and 
testing as described in this part and may not be used to conduct any 
other analysis or test without the written permission of the donor. 
Analyses, screens, and tests that may not be conducted include, but are 
not limited to, DNA testing, serological typing, or any other medical 
or genetic test used for diagnostic or specimen identification 
purposes. No biological specimens may be passively sampled and analyzed 
in a manner different than described in this subpart.
    (n) Specimen collectors. All onsite specimen collections, except a 
collection by a portal area screening instrument in Sec.  26.907(i), 
must be

[[Page 23719]]

conducted by licensee- or other entity-designated and -trained 
personnel.


Sec.  26.908  FFD program training.

    (a) FFD program training.
    (1) Individuals must be trained in the FFD policy and procedure, 
including fatigue management, and their FFD program responsibilities. 
Individuals who collect specimens for testing must also be trained in 
specimen collector duties and responsibilities, including, at a 
minimum, specimen collection, custody and control, identification and 
response to subversion attempts, and privacy. For licensees and other 
entities of nuclear plants, the FFD program training program must use a 
systems approach to training as described in Sec.  57.390 of this 
chapter for those individuals in Sec.  26.4.
    (2) FFD program training must include training on the behavioral 
observation program. The behavioral observation program training must 
include the detection of physiological behaviors or conditions that may 
indicate--
    (i) Possible use, sale, or possession of illegal drugs or illicit 
drugs, or substance abuse on- or offsite;
    (ii) Use or possession of alcohol onsite or use while on duty 
offsite;
    (iii) Impairment from fatigue or any cause that, if left 
unattended, could result in inattentiveness or human errors; and
    (iv) Any individual's inability to safely and competently perform 
assigned duties and responsibilities or act in a trustworthy and 
reliable manner while having access to protected areas, SNM, or 
sensitive information.
    (3) Training must explain that an individual's FFD policy violation 
will--
    (i) Subject the individual to an FFD program-required sanction 
designed to preclude recurrence of an FFD policy violation;
    (ii) Contribute to the licensee's or other entity's assessment of 
whether the individual can be trusted and relied upon to safely and 
competently perform the assigned duties and responsibilities making the 
individual subject to this subpart;
    (iii) Be used to inform the licensee's or other entity's insider 
mitigation program under Sec.  57.325 of this chapter and access 
authorization program under Sec.  73.56 of this chapter; and
    (iv) Be used to inform other NRC licensees and other entities 
subject to part 26 when FFD program information is requested to support 
authorization determinations under subpart C of part 26 or Sec.  73.56 
of this chapter.
    (b) Training and assessments. Training and a trainee assessment 
must be conducted before pre-access testing, and FFD program refresher 
training and trainee assessments must be conducted on a nominal 24-
month frequency, or more frequently where the need is indicated. 
Indications of the need for more frequent training include, but are not 
limited to, an individual's failure to properly implement FFD program 
procedures and the frequency, nature, or severity of problems 
discovered through audits or the administration of the program.
    (c) Training program review. The licensee or other entity must 
periodically evaluate its FFD training program and revise it as 
appropriate to reflect industry experience as well as applicable 
changes to the regulations in this part, the HHS Guidelines, if used, 
and specimen collection and testing processes implemented by the 
licensee or other entity.


Sec.  26.909  Behavioral observation.

    (a) Licensees and other entities must ensure that the individuals 
who are subject to this subpart are subject to behavioral observation 
and that behavioral observation is performed by all individuals subject 
to this subpart.
    (b) Licensees and other entities must require all individuals 
subject to the FFD program to report to the licensee- or other entity-
designated representative any onsite or offsite behaviors or activities 
by individuals subject to this part that may constitute an unreasonable 
risk to the safety or security of the NRC-licensed facility or SNM or 
may cause harm to others. This reporting must include any information 
relating to character or reputation of the individual indicating that 
the individual cannot be trusted or relied upon to perform those duties 
and responsibilities or maintain access to NRC-licensed facilities, 
SNM, or sensitive information that makes them subject to part 26.
    (c) Behavioral observation must be performed visually, in-person, 
and, when necessary, remotely by live video and audible streaming and 
capture, to observe the behavior of individuals in the workforce 
subject to the requirements in this subpart.
    (d) Not withstanding Sec.  26.909(c), for a reactor facility where 
individual task loading does not allow for the effective conduct of 
behavior observation in addition to assigned operational tasks, the 
licensee or other entity must implement a live video and audible 
streaming and capture system to conduct behavioral observation of 
persons licensed to operate under 10 CFR part 57 who manipulate the 
controls of any nuclear plant licensed under 10 CFR part 57.


Sec.  26.910  Sanctions.

    (a) Licensees and other entities that implement an FFD program 
under this subpart must establish sanctions for FFD policy violations 
that, at a minimum, prohibit the individuals specified in Sec.  26.4 
from being assigned to perform or direct those duties and 
responsibilities or maintaining authorization making them subject to 
this subpart.
    (b) The severity of the sanction must escalate with the number of 
occurrences and severity of the FFD policy violation. The sanction must 
be long enough to act as a deterrent and, if the individual is retained 
as a licensee employee or contractor/vendor, facilitate the individual 
to complete counseling or treatment. The sanctions must include an 
immediate unfavorable termination of the individual's authorization as 
follows:
    (1) A minimum 14-day denial of access for a first violation of the 
FFD policy involving a confirmed positive drug or alcohol test result;
    (2) A minimum 3-year denial of access for a second violation of the 
FFD policy involving a confirmed positive drug or alcohol test result;
    (3) A minimum 5-year denial of access for any individual who is 
determined to have been involved in the sale, use, or possession of 
illegal drugs or the consumption of alcohol within a protected area of 
any facility licensed under part 57 of this chapter or within a 
transporter's facility or vehicle used in the conveyance of formula 
quantities of strategic SNM while the individual is subject to this 
subpart; and
    (4) A permanent denial of access for a third violation of the FFD 
policy involving a confirmed positive drug or alcohol test result or a 
subversion attempt of any drug or alcohol test or screening process.


Sec.  26.911  Protection of information.

    (a) Licensees and other entities that collect personal information 
about an individual for the purpose of complying with this subpart must 
establish and maintain a system of files and procedures to prevent 
unauthorized disclosure.
    (b) Licensees and other entities must obtain a signed consent that 
documents the individual's acceptance of being subject to the FFD 
program and authorizes the disclosure of the personal information 
collected and maintained under this subpart, except for disclosures to 
the individuals and entities specified in Sec.  26.37(b)(1)

[[Page 23720]]

through (b)(6), (b)(8), and persons deciding matters under review in 
Sec.  26.913. This signed and dated consent must be obtained before 
making the individual subject to the FFD program.


Sec.  26.913  Appeals process.

    Licensees and other entities that implement an FFD program under 
this subpart must establish and implement procedures for the review of 
a determination that an individual in Sec.  26.4 has violated the FFD 
policy. The procedure must provide for an objective and impartial 
review of the facts related to the determination that the individual 
has violated the FFD policy and a schedule for the completion of the 
review.


Sec.  26.915  Audits.

    (a) Licensees and other entities that implement an FFD program 
under this subpart must audit their programs at a frequency that 
ensures the continuing effectiveness of their FFD program, FFD program 
elements that are provided by C/Vs, and the FFD programs of C/Vs that 
are accepted by the licensee or other entity. Corrective actions must 
be taken as soon as reasonably practicable to resolve any problems 
identified in an audit and preclude recurrence.
    (b) The subject matter, scope, and frequency of audits must be 
revised as necessary to improve or maintain program performance based 
on annual FFD program performance data reviews performed under Sec.  
26.917(d) and unsatisfactory performance or programmatic weaknesses 
identified under Sec.  26.917(b)(3) and (e).
    (c) Licensees and other entities may conduct joint audits or accept 
audits of C/Vs so long as the audit addresses the relevant services of 
the C/Vs.
    (d) Licensees and other entities must audit HHS-certified 
laboratories unless the licensee's or other entity's panel of drugs and 
drug metabolites to be tested is equivalent to the panel by which the 
laboratory is certified by HHS or is subject to the standards and 
procedures for drug testing and evaluation used by the laboratory under 
the HHS Guidelines. Licensees and other entities must audit any 
hospital or other facility licensed by the State (or State-designated 
entity) if used to conduct specimen collections and perform alcohol 
testing under this part on a biennial basis to confirm that the 
facility procedures are comparable to those described in subpart E of 
this part, for urine and oral fluid.


Sec.  26.917  Recordkeeping, reporting, and FFD program performance.

    (a) Licensees and other entities that implement FFD programs under 
this subpart must ensure that records pertaining to the administration 
of their program, which may be stored and archived electronically, are 
maintained so that they are available for NRC inspection purposes and 
for any legal proceedings resulting from the administration of the 
program. Records pertaining to the administration of the FFD program 
and FFD performance data required by Sec.  26.717 must be retained 
until license termination.
    (b) Licensees and other entities must make the following reports:
    (1) Reports to the NRC Headquarters Operations Center by telephone 
within 24 hours after the licensee or other entity discovers any 
intentional act that casts doubt on the integrity of the FFD program 
and any programmatic failure, degradation, or discovered vulnerability 
of the FFD program that may permit undetected drug or alcohol use or 
abuse by individuals who are subject to this subpart. These events must 
be reported under this subpart, rather than under the provisions of 
Sec.  73.1200 of this chapter;
    (2) Annual FFD program performance data under Sec.  26.717(b) for 
each FFD program subject to this subpart. Licensees and other entities 
must submit FFD program performance data (for January through December) 
to the NRC annually, before March 1 of the following year and must use 
unexpired NRC-provided forms for the electronic submission of FFD 
information to the NRC; and
    (3) Reports on drug and alcohol testing errors within 30 days of 
completing an investigation of any testing errors or unsatisfactory 
performance discovered at an HHS-certified laboratory or through the 
processing of appeals under Sec.  26.913, or errors or matters that 
could adversely reflect on the integrity of the random selection or 
random testing process. The reports must describe the incident and any 
corrective actions taken or planned.
    (c) Licensees and other entities subject to this subpart must 
describe in sufficient detail to support an authorization 
determination, an individual's FFD policy violation (while protecting 
privacy information under Sec.  26.911) and FFD program weakness to the 
NRC, licensees, and other entities subject to part 26 when requested to 
support authorization determinations under subpart C of this part or to 
support licensee or other entity performance monitoring.
    (d) Licensees and other entities must analyze FFD program 
performance data at least annually and take appropriate actions to 
correct any identified program weakness.
    (e) Licensees and other entities must document, trend, and correct 
non-reportable indicators of FFD programmatic weaknesses under the 
licensee's or other entity's corrective action program, but may not 
track or trend drug and alcohol test results in a manner that would 
permit the identification of any individuals.


Sec.  26.919  Suitability and fitness determinations.

    Licensees and other entities that implement FFD programs under this 
subpart must develop, implement, and maintain procedures for evaluating 
whether to assign individuals to perform or direct those duties and 
responsibilities making them subject to this subpart. A suitability or 
fitness determination conducted for cause must be performed face to 
face. A suitability or fitness determination conducted for cause may be 
performed remotely using electronic communications that provide 
sufficient visual and aural clarity to complete the assessment. A 
fitness determination may be supported by someone who is present in-
person with the individual being assessed only during for-cause drug 
and alcohol testing determinations under Sec.  26.907(b)(3) and fatigue 
assessments performed under Sec.  26.211(a)(1). The supporting person 
must be trained in accordance with the requirements of either Sec.  
26.29 or Sec.  26.908.

PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF 
BYPRODUCT MATERIAL

0
81. The authority citation for part 30 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 11, 81, 161, 181, 
182, 183, 184, 186, 187, 223, 234, 274 (42 U.S.C. 2014, 2111, 2201, 
2231, 2232, 2233, 2234, 2236, 2237, 2273, 2282, 2021); Energy 
Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 
5841, 5842, 5846, 5851); 44 U.S.C. 3504 note.

0
82. In Sec.  30.4, revise the definition for ``Utilization facility'' 
to read as follows:


Sec.  30.4  Definitions.

* * * * *
    Utilization facility means a utilization facility as defined in the 
regulations contained in part 50 or part 57 of this chapter;
    83. In Sec.  30.50, revise paragraph (c)(3) to read as follows:


Sec.  30.50  Reporting requirements.

* * * * *
    (c) * * *
    (3) The provisions of Sec.  30.50 do not apply to licensees subject 
to the notification requirements in Sec.  50.72 or

[[Page 23721]]

Sec.  57.435 of this chapter. They do apply to those part 50 or part 57 
licensees possessing material licensed under part 30, who are not 
subject to the notification requirements in Sec.  50.72 or Sec.  57.435 
of this chapter, respectively.

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

0
84. The authority citation for part 40 continues to read as follows:

    Authority:  Atomic Energy Act of 1954, secs. 62, 63, 64, 65, 69, 
81, 83, 84, 122, 161, 181, 182, 183, 184, 186, 187, 193, 223, 234, 
274, 275 (42 U.S.C. 2092, 2093, 2094, 2095, 2099, 2111, 2113, 2114, 
2152, 2201, 2231, 2232, 2233, 2234, 2236, 2237, 2243, 2273, 2282, 
2021, 2022); Energy Reorganization Act of 1974, secs. 201, 202, 206, 
211 (42 U.S.C. 5841, 5842, 5846, 5851); Uranium Mill Tailings 
Radiation Control Act of 1978, sec. 104 (42 U.S.C. 7914); 44 U.S.C. 
3504 note.

0
85. In Sec.  40.60, revise paragraph (c)(3) to read as follows:


Sec.  40.60  Reporting requirements.

* * * * *
    (c) * * *
    (3) The provisions of Sec.  40.60 do not apply to licensees subject 
to the notification requirements in Sec.  50.72 or Sec.  57.435, of 
this chapter. They do apply to those part 50 or part 57 licensees 
possessing material licensed under part 40 of this chapter who are not 
subject to the notification requirements in Sec.  50.72 or Sec.  57.435 
of this chapter, respectively.

PART 50--DOMESTIC LICENSING OF UTILIZATION AND PRODUCTION 
FACILITIES

0
86. The authority citation for part 50 is revised to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 11, 101, 102, 103, 
104, 105, 108, 122, 147, 149, 161, 181, 182, 183, 184, 185, 186, 
187, 189, 223, 234 (42 U.S.C. 2014, 2131, 2132, 2133, 2134, 2135, 
2138, 2152, 2167, 2169, 2201, 2231, 2232, 2233, 2234, 2235, 2236, 
2237, 2239, 2273, 2282); Energy Reorganization Act of 1974, secs. 
201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); Nuclear Waste 
Policy Act of 1982, sec. 306 (42 U.S.C. 10226); National 
Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 
note.

0
87. In Sec.  50.44, revise the introductory texts of paragraphs (c) and 
(d) to read as follows:


Sec.  50.44  Combustible gas control for nuclear power reactors.

* * * * *
    (c) Requirements for future water-cooled reactor applicants and 
licensees.\1\ * * *
* * * * *
    (d) Requirements for future non-water-cooled reactor applicants and 
licensees and certain water-cooled reactor applicants and licensees. 
The requirements in this paragraph apply to all construction permits 
and operating licenses under this part, and to all design approvals, 
design certifications, combined licenses, or manufacturing licenses 
under part 52 or construction permits, operating licenses, 
manufacturing licenses, or standard design approvals under part 57 of 
this chapter, for non-water-cooled reactors and water-cooled reactors 
that do not fall within the description in paragraph (c), footnote 1 of 
this section, any of which are issued after October 16, 2003. 
Applications subject to this paragraph must include:
* * * * *
    \[1]\ The requirements of this paragraph apply only to water-cooled 
reactor designs with characteristics (e.g., type and quantity of 
cladding materials) such that the potential for production of 
combustible gases is comparable to light water reactor designs licensed 
as of October 16, 2003.
* * * * *
0
88. In Sec.  50.59, revise paragraphs (b), (c)(3), and (d)(2) to read 
as follows:


Sec.  50.59  Changes, tests, and experiments.

* * * * *
    (b) This section applies to each holder of an operating license 
issued under this part, or a combined license issued under part 52 of 
this chapter, or a manufacturing license, construction permit, or 
operating license issued under part 57 of this chapter, including the 
holder of a license authorizing the operation of a nuclear power 
reactor that has submitted the certification of permanent cessation of 
operations required under Sec.  50.82(a)(1) or Sec.  52.110 or 57.305 
of this chapter, a reactor licensee whose license has been amended to 
allow possession of nuclear fuel but not operation of the facility, or 
a non-power production or utilization facility that has permanently 
ceased operations.
* * * * *
    (c) * * *
    (3) In implementing this paragraph, the FSAR (as updated) is 
considered to include FSAR changes resulting from evaluations performed 
pursuant to this section and analyses performed pursuant to Sec.  50.90 
or Sec.  57.312 of this chapter since submittal of the last update of 
the final safety analysis report pursuant to Sec.  50.71 or Sec.  
57.315 of this chapter.
* * * * *
    (d) * * *
    (2) The licensee shall submit, as specified in Sec.  50.4 or Sec.  
52.3 or Sec.  57.4 of this chapter, as applicable, a report containing 
a brief description of any changes, tests, and experiments, including a 
summary of the evaluation of each. A report must be submitted at 
intervals not to exceed 24 months. For combined licenses, the report 
must be submitted at intervals not to exceed 6 months during the period 
from the date of application for a combined license to the date the 
Commission makes its findings under 10 CFR 52.103(g).
* * * * *
0
89. In Sec.  50.68, revise paragraph (a), to read as follows:


Sec.  50.68  Criticality accident requirements.

    (a) Each holder of a construction permit or operating license for a 
nuclear power reactor issued under this part or part 57 of this 
chapter, or a combined license for a nuclear power reactor issued under 
part 52 of this chapter, shall comply with either 10 CFR 70.24 of this 
chapter or the requirements in paragraph (b) of this section.
* * * * *

PART 51--ENVIRONMENTAL PROTECTION REGULATIONS FOR DOMESTIC 
LICENSING AND RELATED REGULATORY FUNCTIONS

0
90. In Sec.  51.4, revise the definition for ``Construction'' to read 
as follows:


Sec.  51.451.4  Definitions

* * * * *
    Construction means:
    (1) For production and utilization facilities licensed under 10 CFR 
part 50 or 10 CFR part 52, the activities in paragraph (1)(i) of this 
definition, and does not mean the activities in paragraph (1)(ii) of 
this definition.
* * * * *
    (3) For utilization facilities licensed under 10 CFR part 57, the 
activities in the definition of construction in 10 CFR 57.3.
* * * * *
0
91. Add part 57, consisting of Sec. Sec.  57.1 through 57.445, to read 
as follows:

PART 57--LICENSING REQUIREMENTS FOR MICROREACTORS AND OTHER 
REACTORS WITH COMPARABLE RISK PROFILES

Subpart A--General Provisions
Sec.
57.157.1 Scope.
57.357.3 Definitions.
57.457.4 Written communications.
57.557.5 Deliberate misconduct.
57.657.6 Employee protection.
57.757.7 Completeness and accuracy of information.
57.857.8 Information collection requirements: OMB approval.

[[Page 23722]]

57.957.9 Specific exemptions.
57.11 Jurisdictional limits.
57.12 Attacks and destructive acts.
57.13 Rights related to special nuclear material.
57.14 License suspension and rights of recapture.
57.15 Agreement limiting access to Classified Information.
57.16 Backfitting and issue finality.
57.17 Referral to the Advisory Committee on Reactor Safeguards 
(ACRS).
57.18 Combining licenses; elimination of repetition; relationships 
between subparts.
57.19 Filing of applications.

Subpart B--Eligibility

57.20 Scope.
57.25 Applicability.
57.30 Design criteria attributes.
57.35 Licensing requirements.

Subpart C--Construction Permits and Operating Licenses

57.40 Scope.
57.45 License required; exceptions from licensing.
57.55 Contents of applications; general information.
57.60 Contents of applications; technical information.
57.80 Standards for review of applications.
57.90 Common standards for licenses.
57.95 Issuance of construction permit.
57.100 Issuance of operating license.
57.105 Continuation of license.
57.110 Transfer of licenses.
57.115 Application for renewal.
57.120 Criteria for renewal.
57.130 Hearings.
57.135 Duration of renewal.
57.142 Finality for construction permits and operating licenses.

Subpart D--Manufacturing Licenses

57.145 Scope.
57.150 Contents of applications for manufacturing licenses; general 
information.
57.155 Contents of applications; technical information in final 
safety analysis report.
57.160 Contents of applications; additional information.
57.165 Standards for review of applications.
57.170 Administrative review of applications; hearings.
57.172 Issuance of manufacturing license.
57.175 Finality of manufacturing licenses; information requests.
57.180 Duration of manufacturing license.
57.185 Transfer of manufacturing license.
57.190 Renewal of manufacturing licenses.
57.197 Manufacturing.

Subpart E--Standard Design Approvals

57.200 Scope.
57.205 Contents of applications; general information.
57.210 Contents of applications; technical information.
57.213 Standards for review of applications.
57.215 Staff approval of design.
57.220 Finality of standard design approvals; information requests.
57.225 Duration of design approval.

Subpart F--Reporting of Defects and Noncompliance

57.230 Purpose.
57.235 Scope.
57.240 Definitions.
57.255 Posting requirements.
57.260 Exemptions.
57.270 Notification of failure to comply or existence of a defect 
and its evaluation.
57.275 Procurement documents.
57.280 Inspections.
57.285 Maintenance and inspection of records.
57.290 Failure to notify.

Subpart G--Irradiated Fuel Storage, Decommissioning, and Termination of 
License Requirements

57.300 Irradiated fuel storage.
57.305 Decommissioning and license termination.

Subpart H--Maintaining and Revising Licensing Basis Information

57.310 Amendment of license.
57.312 Changes to facility as described in final safety analysis 
reports.
57.315 Maintenance and submittal of the final safety analysis, as 
updated.
57.317 Updated decommissioning report.

Subpart I--Transportation Package Design Certification

57.319 Purpose.
57.320 Applicability.

Subpart J--Physical Security Requirements

7.325 Physical security requirements.

Subpart K--Categorical Exclusion

57.350 Categorical exclusion.

Subpart L--Inspections

57.355 Unfettered access for inspections.

Subpart M--Material Control and Accounting

57.360 Material control and accounting.

Subpart N [Reserved]

Subpart O--Enforcement

57.380 Violations.
57.385 Criminal penalties.HD1>Subpart P--Operator Licensing and 
Human Factors
57.390 Definitions.
57.391 General requirements for operator licensing and human 
factors.
57.392 Communications.
57.393 Completeness and accuracy of information.
57.395 Human factors engineering requirements.
57.398 Operator license requirements.
57.399 Facility licensee requirements--General.
57.400 Facility licensee requirements related to GLROs.
57.405 Generally licensed reactor operators.
57.410 Generally licensed reactor operator training, examination, 
and proficiency programs.
57.415 Cessation of individual applicability.
57.420 Operator licensing for operator-dependent facilities.
57.421 Medical requirements.
57.422 Incapacitation because of disability or illness.
57.423 Applications for operators and senior operators.
57.424 Training, examination, and proficiency programs.
57.425 Conditions of operator and senior operator licenses.
57.426 Issuance, modification, and revocation of operator and senor 
operator licenses.
57.427 Expiration of operator and senior operator licenses.
57.429 Training and qualification for non-licensed personnel.

Subpart Q--Reporting and Other Administrative Requirements

57.430 Maintenance of records, making of reports.
57.435 Reporting requirements.
57.440 Licensee event report system.
57.445 Reports of radiation exposure to members of the public.

    Authority: Atomic Energy Act of 1954, secs. 11, 101, 103, 108, 
122, 147, 161, 181, 182, 183, 184, 185, 186, 187, 189, 223, 234 (42 
U.S.C. 2014, 2131, 2132, 2133, 2134, 2135, 2138, 2152, 2167, 2169, 
2201, 2231, 2232, 2233, 2234, 2235, 2236, 2237, 2239, 2273, 2282); 
Energy Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 
U.S.C. 5841, 5842, 5846, 5851); Nuclear Waste Policy Act of 1982, 
sec. 306 (42 U.S.C. 10226); National Environmental Policy Act of 
1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note; Pub. L. 118-67, div. B, 
July 9, 2024, 138 Stat. 1448.

Subpart A--General Provisions


Sec.  57.157.1  Scope.

    Subpart A provides general provisions applicable to all applicants 
and licensees subject to the requirements of this part.


Sec.  57.357.3  Definitions.

    For the purposes of this part, the following definitions apply, 
although an applicant may provide its own definitions of these terms in 
an application submitted under this part if the definitions are 
supported by the applicant's safety analysis, except for those terms 
defined in the Atomic Energy Act of 1954 (68 Stat. 919), as amended 
(AEA).
    Applicant means a person applying for a license, construction 
permit, or other form of Commission permission or approval under this 
part.
    Autonomous operation means the performance of operational and 
safety functions without reliance on human intervention, external 
command, or active control system input under normal, abnormal, and 
accident conditions.
    Certified fuel handler means a non-licensed operator who 
demonstrates compliance with the following criteria:

[[Page 23723]]

    (1) Has qualified in accordance with a fuel handler training 
program that demonstrates compliance with the same requirements as 
training programs for non-licensed operators required by Sec.  57.420, 
and
    (2) Is responsible for decisions on--
    (i) Safe conduct of decommissioning activities,
    (ii) Safe handling and storage of spent fuel, and
    (iii) Appropriate response to plant emergencies.
    Commission means the Nuclear Regulatory Commission or its duly 
authorized representatives.
    Construction means the driving of piles, subsurface preparation, 
placement of backfill, concrete, or permanent retaining walls within an 
excavation, installation of foundations, or in-place assembly, 
erection, fabrication, or testing, which are for safety-related 
structures, systems, or components (SSCs) of a facility or SSCs that 
are relied upon to implement the requirements in Sec.  57.60(a)(8)(v) 
or subpart J of this part.
    Controls means an apparatus and mechanisms, the manipulation of 
which directly affects the reactivity or power level of the reactor.
    Control room means a location either inside or outside the site 
boundary where actions can be taken to operate the nuclear reactor 
safely under normal conditions and to maintain it in a safe condition 
under accident conditions.
    Decommission means to remove an individually licensed nuclear 
reactor, a nuclear plant, or a site safely from service and reduce 
residual radioactivity to a level that permits--
    (1) Release of the property for unrestricted use and termination of 
the license; or
    (2) Release of the property under restricted conditions and 
termination of the license.
    Defense in depth means inclusion of two or more independent and 
redundant layers of defense in the design of a facility and its 
operating procedures to compensate for uncertainties such that no 
single layer of defense, no matter how robust, is exclusively relied 
upon. Defense in depth includes, but is not limited to, the use of 
access controls, physical barriers, redundant and diverse safety 
functions, and emergency response measures.
    Department and Department of Energy means the Department of Energy 
established by the Department of Energy Organization Act (Pub. L. 95-
91, 91 Stat. 565, 42 U.S.C. 7101 et seq.), to the extent that the 
department, or its duly authorized representatives, exercises functions 
formerly vested in the Atomic Energy Commission, its Chairman, members, 
officers and components and transferred to the U.S. Energy Research and 
Development Administration and to the Administrator thereof pursuant to 
sections 104 (b), (c) and (d) of the Energy Reorganization Act of 1974 
(Pub. L. 93-438, 88 Stat. 1233 at 1237, 42 U.S.C. 5814) and 
retransferred to the Secretary of Energy pursuant to section 301(a) of 
the Department of Energy Organization Act (Pub. L. 95-91, 91 Stat. 565 
at 577-578, 42 U.S.C. 7151).
    Design bases means the information that identifies the specific 
functions to be performed by an SSC of a facility, and the specific 
values or ranges of values chosen for controlling parameters as 
reference bounds for design. These values may be:
    (1) Restraints derived from generally accepted ``state-of-the-art'' 
practices for achieving functional goals; or
    (2) Requirements derived from analysis (based on calculation and/or 
experiments) of the effects of a postulated accident for which an SSC 
must meet its functional goals.
    Design features mean the active and passive safety-related SSCs and 
inherent characteristics of those safety-related SSCs that contribute 
to limiting the total effective dose equivalent (TEDE) to individual 
members of the public during normal operations and prevent or mitigate 
the consequences of design basis accidents.
    Director means an individual, appointed or elected according to 
law, who is authorized to manage and direct the affairs of a 
corporation, partnership or other entity. In the case of an individual 
proprietorship, director means the individual.
    Electric utility means any entity within the U.S. Nuclear 
Regulatory Commission's (NRC's) jurisdiction that generates or 
distributes electricity and which recovers the cost of this 
electricity, either directly or indirectly, through rates established 
by the entity itself or by a separate regulatory authority. Investor-
owned utilities, including generation or distribution subsidiaries, 
public utility districts, municipalities, rural electric cooperatives, 
and State and Federal agencies, including associations of any of the 
foregoing, are included within the meaning of ``electric utility.''
    Fission product release means the amount and composition of 
radioactive material released to the environment, after accounting for 
any retention of radionuclides provided by reactor design features.
    Fuel means special nuclear material (SNM) or source material, 
discrete elements that physically contain SNM or source material, and 
homogeneous mixtures that contain SNM or source material, intended to 
or used to create power in a nuclear reactor.
    Government agency means any executive department, commission, 
independent establishment, corporation, wholly or partly owned by the 
United States of America which is an instrumentality of the United 
States, or any board, bureau, division, service, office, officer, 
authority, administration, or other establishment in the executive 
branch of the Government.
    License means a license, including a construction permit, operating 
license, or manufacturing license, issued by the Commission under this 
part.
    Licensee means a person who is authorized to conduct activities 
under a license issued by the Commission.
    Licensing basis information means information contained in 
regulations, orders, licenses, certifications, or approvals issued by 
the NRC for a nuclear plant licensed under this part and that 
information submitted to the NRC by an applicant or licensee in a final 
safety analysis report, program description, or other licensing-related 
document required under this part.
    Manufactured reactor means the essential portions of a nuclear 
reactor that are manufactured under a manufacturing license and 
subsequently incorporated into a nuclear plant under a construction 
permit issued under subpart C of this part.
    Manufacturing license means a license issued under subpart D of 
this part that authorizes the manufacture of manufactured reactors but 
not their construction, installation, or operation.
    Notification means communication to the NRC Operations Center or 
written transmittal of information to the NRC Document Control Desk.
    Nuclear plant means one or more nuclear reactors and the supporting 
safety-related SSCs and other SSCs used together to generate thermal 
energy to produce electricity or process heat, or for other 
applications.
    Nuclear reactor means an apparatus, other than an atomic weapon, 
designed or used to sustain nuclear fission in a self-supporting chain 
reaction.
    Operating or operation means the operation of a facility or the 
conduct of a licensed activity which is subject to the regulations in 
this part and consulting services related to operations that are safety 
related.
    Person means:
    (1) Any individual, corporation, partnership, firm, association, 
trust, estate, public or private institution, group, government agency 
other than the Commission or the Department,

[[Page 23724]]

except that the Department will be considered a person to the extent 
that its facilities are subject to the licensing and related regulatory 
authority of the Commission pursuant to section 202 of the Energy 
Reorganization Act of 1974, any State or any political subdivision of, 
or any political entity within a State, any foreign government or 
nation or any political subdivision of any such government or nation, 
or other entity; and
    (2) Any legal successor, representative, agent, or agency of the 
foregoing.
    Previously disturbed area means areas that have been changed by 
development of a prior facility and remain altered by human activity 
such that they do not provide habitat for ecologically important 
species, such as those protected under the Endangered Species Act, and 
no longer have the potential to yield historic and cultural resources. 
This definition will include the lateral and vertical extent of 
alteration from natural cover to a managed state.
    Programmatic controls means administrative procedures that govern 
human action in implementing programs and operating, monitoring, and 
maintaining safety-related SSCs and equipment of a nuclear plant.
    Quality assurance means those planned and systematic actions during 
design, construction, and modification necessary to provide adequate 
confidence that the structure, system, or component will perform 
satisfactorily in service.
    Remote monitoring means observation of plant data from a location 
outside of the site boundary.
    Remote operation means command and control of the nuclear reactor 
or nuclear plant from a location outside of the site boundary.
    Restricted data means all data concerning:
    (1) Design, manufacture, or utilization of atomic weapons;
    (2) The production of special nuclear material; or
    (3) The use of special nuclear material in the production of energy 
but must not include data declassified or removed from the Restricted 
Data category pursuant to section 142 of the AEA.
    Safe shutdown means, under design basis accident conditions with 
loss of emergency power and off site power, bringing the nuclear 
reactor to safe, stable conditions specified in plant technical 
specifications.
    Safety function means a purpose served by a design feature, human 
action, or programmatic control to prevent or mitigate unplanned events 
and thereby demonstrate compliance with requirements in this part for 
limiting risks to public health and safety. Safety functions can be 
performed by any combination of the elements supported by the safety 
analysis and can be specified at the plant level or at the level of a 
particular barrier or system. Multiple plant-level safety functions are 
assumed to apply to all reactor designs based on established 
requirements and historical practices. These fundamental safety 
functions include the control of reactivity, removal of heat, and 
limiting the release of radioactive materials. The protection of a 
specific barrier or system that contributes to meeting plant-level 
safety criteria may also be referred to as a safety function. Subpart B 
provides qualitative information of design criteria attributes for 
control of reactivity, removal of heat, and limiting the release of 
radioactive materials.
    Safety-related SSCs means those SSCs of a nuclear plant that are 
relied upon to remain functional during and following design basis 
accidents to ensure:
    (1) The capability to adequately control thermodynamic conditions 
and reactivity, and to retain radioactive material;
    (2) The capability to shut down the reactor and maintain it in a 
safe shutdown condition; or
    (3) The capability to prevent or mitigate the consequences of 
accidents analyzed to meet the entry criteria in subpart B of this 
part.
    Source material means source material as defined in section 11(z) 
of the AEA and in the regulations contained in part 40 of this chapter.
    Source term means the magnitude and mix of the radionuclides 
released from the fuel, expressed as fractions of the fission product 
inventory in the fuel, as well as their physical and chemical form, and 
the timing of their release.
    Special nuclear material means:
    (1) Plutonium, uranium-233, uranium enriched in the isotope-233 or 
in the isotope-235, and any other material that the Commission, 
pursuant to the provisions of section 51 of the AEA, determines to be 
special nuclear material, but does not include source material; or
    (2) Any material artificially enriched by any of the foregoing, but 
does not include source material.
    Standard design approval or design approval means an NRC staff 
approval, issued under subpart E of this part of a final standard 
design for a nuclear reactor. The approval may be for either the final 
design for the entire nuclear reactor or the final design of major 
portions thereof.
    Total effective dose equivalent (TEDE) means the sum of the 
effective dose equivalent (for external exposures) and the committed 
effective dose equivalent (for internal exposures).
    Unrestricted area means a location where the public can be present 
without restrictions related to radiation exposure. These areas are 
characterized by the absence of controls to limit access specifically 
for radiation protection purposes.
    Utilization facility means any nuclear reactor other than one 
designed or used primarily for the formation of plutonium or U-233.


Sec.  57.457.4  Written communications.

    (a) General requirements. All correspondence, reports, 
applications, and other written communications from the applicant or 
licensee to the NRC concerning the regulations in this part or 
individual license conditions must be sent either by mail addressed: 
ATTN: Document Control Desk, U.S. Nuclear Regulatory Commission, 
Washington, DC 20555-0001; by hand delivery to the NRC's offices at 
11555 Rockville Pike, Rockville, Maryland, between the hours of 8:15 
a.m. and 4 p.m. eastern time; or, where practicable, by electronic 
submission, for example, via Electronic Information Exchange, email, or 
CD-ROM. Electronic submissions must be made in a manner that enables 
the NRC to receive, read, authenticate, distribute, and archive the 
submission, and process and retrieve it a single page at a time. 
Detailed guidance on making electronic submissions can be obtained by 
visiting the NRC's website at https://www.nrc.gov/site-help/e-submittals.html; by email to [email protected]; or by writing the 
Office of the Chief Information Officer, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555-0001. The guidance discusses, among 
other topics, the formats the NRC can accept, the use of electronic 
signatures, and the treatment of nonpublic information. If the 
communication is on paper, the signed original must be sent. If a 
submission due date falls on a Saturday, Sunday, or Federal holiday, 
the next Federal working day becomes the official due date.
    (b) Distribution requirements. Copies of all correspondence, 
reports, and other written communications concerning the regulations in 
this part, individual license conditions, or the terms and conditions 
of a standard design approval, must be submitted to the persons listed 
in this section (addresses for the NRC Regional Offices are listed in 
appendix D to 10 CFR part 20).

[[Page 23725]]

    (1) Applications for amendment of construction permits and 
licenses, reports, and other communications. All written communications 
(including responses to generic letters, bulletins, information 
notices, regulatory information summaries, inspection reports, and 
miscellaneous requests for additional information) that are required of 
holders of licenses, construction permits, or design approvals issued 
pursuant to this part, must be submitted as follows, except as 
otherwise specified in paragraphs (b)(2) through (7) of this section: 
to the NRC's Document Control Desk (if on paper, the signed original), 
with a copy to the appropriate Regional Office, and a copy to the 
appropriate NRC Resident Inspector if one has been assigned to the site 
of the facility or the place of manufacture of a reactor licensed under 
this part.
    (2) Applications for construction permits and licenses, and 
amendments to applications. Applications for licenses, construction 
permits, and design approvals and amendments to any of these types of 
applications must be submitted to the NRC's Document Control Desk, with 
a copy to the appropriate Regional Office, and a copy to the 
appropriate NRC Resident Inspector if one has been assigned to the 
facility or the place of manufacture of a reactor licensed under this 
part, except as otherwise specified in paragraphs (b)(3) through (9) of 
this section. If the application or amendment is on paper, the 
submission to the Document Control Desk must be the signed original.
    (3) Acceptance review application. Written communications required 
for an application for determination of suitability for docketing must 
be submitted to the NRC's Document Control Desk, with a copy to the 
appropriate Regional Office. If the communication is on paper, the 
submission to the Document Control Desk must be the signed original.
    (4) Security plan and related submissions. Written communications, 
as defined in paragraphs (b)(4)(i) through (v) of this section, must be 
submitted to the NRC's Document Control Desk, with a copy to the 
appropriate Regional Office. If the communication is on paper, the 
submission to the Document Control Desk must be the signed original. 
Submissions should include the following as appropriate:
    (i) Physical security plan;
    (ii) Safeguards contingency plan;
    (iii) Cybersecurity plan;
    (iv) Application for amendment of the physical security plan, 
safeguards contingency plan, or cybersecurity plan as part of an 
application for amendment of the license; and
    (v) Changes to the physical security plan, safeguards contingency 
plan, or cybersecurity plan made without prior Commission approval if 
the changes do not decrease the safeguards effectiveness of these 
plans.
    (5) Security plan and related changes and records.
    (i) The licensee must maintain records of changes to the 
submissions in paragraphs (b)(4)(i) through (iii) of this section made 
without prior approval for a period of three years from the date of the 
change, and must, within two months after the change is made, submit a 
report addressed to Director, Office of Nuclear Security and Incident 
Response, U.S. Nuclear Regulatory Commission, in accordance with this 
section, containing a description of each change.
    (ii) A copy of the report must be sent to the Regional 
Administrator of the appropriate NRC Regional Office specified in 
appendix A to part 73 of this chapter.
    (6) Emergency plan and related submissions. Written communications 
as defined in paragraphs (b)(5)(i) through (ii) of this section must be 
submitted to the NRC's Document Control Desk, with a copy to the 
appropriate Regional Office, and a copy to the appropriate NRC Resident 
Inspector if one has been assigned to the site of the facility. If the 
communication is on paper, the submission to the Document Control Desk 
must be the signed original. Submissions should include the following 
as appropriate:
    (i) Emergency plan; and
    (ii) Change to an emergency plan.
    (7) Updated final safety analysis report. An updated final safety 
analysis report (FSAR) or replacement pages under Sec.  57.315 must be 
submitted to the NRC's Document Control Desk every 5 years beginning 5 
years after the date of issuance of an operating license or 
manufacturing license under this part to ensure that the information 
included in the report contains the latest information developed. This 
submittal must contain all the changes necessary to reflect information 
and analyses submitted to the Commission by the applicant or licensee 
or prepared by the applicant or licensee pursuant to Commission 
requirement since the submittal of the original FSAR, or as 
appropriate, the last update to the FSAR under this section. The 
submittal must include the effects of all changes made in the facility 
or procedures as described in the FSAR; all safety analyses and 
evaluations performed by the applicant or licensee either in support of 
approved license amendments or in support of conclusions that changes 
did not require a license amendment in accordance with Sec.  
50.59(c)(2) of this chapter and all analyses of new safety issues 
performed by or on behalf of the applicant or licensee at Commission 
request. Effects of changes include appropriate revisions of 
descriptions in the FSAR such that the updated FSAR is complete and 
accurate. The updated information must be appropriately located within 
the FSAR (as updated). If the communication is on paper, the submission 
to the Document Control Desk must be the signed original. If the 
communications are submitted electronically, see Guidance for 
Electronic Submissions to the Commission.
    (8) Quality assurance related submissions. Changes to the final 
safety analysis report quality assurance program description under 
Sec.  57.60(a)(3), or a change to a licensee's NRC-accepted quality 
assurance topical report, must be submitted to the NRC's Document 
Control Desk, with a copy to the appropriate Regional Office, and a 
copy to the appropriate NRC Resident Inspector if one has been assigned 
to the site of the facility or the place of manufacture of a reactor 
licensed under this part. If the communication is on paper, the 
submission to the Document Control Desk must be the signed original 
copy.
    (9) Certification of permanent cessation of operations. The 
licensee's certification of permanent cessation of operations, under 
subpart G of this part, must state the date on which operations have 
ceased or will cease, and must be submitted to the NRC's Document 
Control Desk. This submission must be under oath or affirmation.
    (10) Certification of permanent fuel removal. The licensee's 
certification of permanent fuel removal, under subpart G of this part, 
must state the date on which the fuel was removed from the reactor 
vessel and the disposition of the fuel, and must be submitted to the 
NRC's Document Control Desk. This submission must be under oath or 
affirmation.
    (c) Form of communications. All paper copies submitted to 
demonstrate compliance with the requirements set forth in paragraph (b) 
of this section must be typewritten, printed, or otherwise reproduced 
in permanent form on unglazed paper. Exceptions to these requirements 
imposed on paper submissions may be granted for the submission of 
micrographic, photographic, or similar forms.

[[Page 23726]]

    (d) Regulation governing submission. Licensees and applicants under 
this part submitting correspondence, reports, and other written 
communications under the regulations of this part are requested but not 
required to cite whenever practical, in the upper right corner of the 
first page of the submission, the specific regulation or other basis 
requiring submission.


Sec.  57.557.5  Deliberate misconduct.

    (a) Any licensee or applicant for a license, or holder of or 
applicant for a standard design approval, under this part; employee of 
a licensee or holder of a standard design approval, or applicant for a 
license or standard design approval under this part; or any contractor 
(including a supplier or consultant), subcontractor, employee of a 
contractor or subcontractor of any licensee or applicant for a license, 
or holder of or applicant for a standard design approval under this 
part, who knowingly provides to any licensee, applicant, contractor, or 
subcontractor, any components, equipment, materials, or other goods or 
services that relate to a licensee's or applicant's activities in this 
part, may not--
    (1) Engage in deliberate misconduct that causes or would have 
caused, if not detected, a licensee or applicant to be in violation of 
any rule, regulation, or order; or any term, condition, or limitation 
of any license issued by the Commission; or
    (2) Deliberately submit to the NRC, a licensee, an applicant, or a 
licensee's or applicant's contractor or subcontractor, information that 
the person submitting the information knows to be incomplete or 
inaccurate in some respect material to the NRC.
    (b) A person who violates paragraph (a)(1) or (2) of this section 
may be subject to enforcement action in accordance with the procedures 
in subpart B of 10 CFR part 2.
    (c) For the purposes of paragraph (a)(1) of this section, 
deliberate misconduct by a person means an intentional act or omission 
that the person knows--
    (1) Would cause a licensee or applicant to be in violation of any 
rule, regulation, or order; or any term, condition, or limitation, of 
any license issued by the Commission; or
    (2) Constitutes a violation of a requirement, procedure, 
instruction, contract, purchase order, or policy of a licensee, 
applicant, contractor, or subcontractor.


Sec.  57.657.6  Employee protection.

    (a) Discrimination by a Commission licensee, a holder of a standard 
design approval, an applicant for a license or standard design 
approval, or a contractor or subcontractor of a Commission licensee, 
holder of a standard design approval, or an applicant for a license or 
standard design approval, against an employee for engaging in certain 
protected activities is prohibited. Discrimination includes discharge 
and other actions that relate to compensation, terms, conditions, or 
privileges of employment. The protected activities are established in 
section 211 of the Energy Reorganization Act of 1974, as amended, and 
in general are related to the administration or enforcement of a 
requirement imposed under the AEA or the Energy Reorganization Act of 
1974, as amended.
    (1) The protected activities include but are not limited to--
    (i) Providing the Commission or his or her employer information 
about alleged violations of either of the statutes named in paragraph 
(a) of this section or possible violations of requirements imposed 
under either of those statutes;
    (ii) Refusing to engage in any practice made unlawful under either 
of the statutes named in paragraph (a) of this section or under these 
requirements if the employee has identified the alleged illegality to 
the employer;
    (iii) Requesting the NRC to institute action against his or her 
employer for the administration or enforcement of these requirements;
    (iv) Testifying in any Commission proceeding, or before Congress, 
or at any Federal or State proceeding regarding any provision (or 
proposed provision) of either of the statutes named in paragraph (a) of 
this section; and
    (v) Assisting or participating in, or being about to assist or 
participate in, these activities.
    (2) These activities are protected even if no formal proceeding is 
actually initiated as a result of the employee assistance or 
participation.
    (3) This section does not apply to any employee alleging 
discrimination prohibited by this section who, acting without direction 
from his or her employer (or the employer's agent), deliberately causes 
a violation of any requirement of the Energy Reorganization Act of 
1974, as amended, or the AEA.
    (b) Any employee who believes that they have been discharged or 
otherwise discriminated against by any person for engaging in protected 
activities specified in paragraph (a)(1) of this section may seek a 
remedy for the discharge or discrimination through an administrative 
proceeding in the Department of Labor. The administrative proceeding 
must be initiated within 180 days after an alleged violation occurs. 
The employee may do this by filing a complaint alleging the violation 
with the Department of Labor, Wage and Hour Division. The Department of 
Labor may order reinstatement, back pay, and compensatory damages.
    (c) A violation of paragraph (a), (e), or (f) of this section by a 
Commission licensee, a holder of a standard design approval, an 
applicant for a Commission license or standard design approval, or a 
contractor or subcontractor of a Commission licensee or holder of a 
standard design approval, or any applicant may be grounds for--
    (1) Denial, revocation, or suspension of the license or standard 
design approval;
    (2) Imposition of a civil penalty on the licensee, holder of a 
standard design approval, or applicant, or a contractor or 
subcontractor of the licensee, holder of a standard design approval or 
applicant; or
    (3) Other enforcement action.
    (d) Actions taken by an employer, or others, which adversely affect 
an employee may be predicated upon nondiscriminatory grounds. The 
prohibition applies when the adverse action occurs because the employee 
has engaged in protected activities. An employee's engagement in 
protected activities does not automatically render him or her immune 
from discharge or discipline for legitimate reasons or from adverse 
action dictated by nonprohibited considerations.
    (e) To ensure employees are informed of their rights, each license 
holder or applicant must follow the guidelines for posting NRC Form 3, 
``Notice to Employees,'' as follows:
    (1) Each holder or applicant for a license or design approval must 
prominently post the revision of NRC Form 3, ``Notice to Employees,'' 
referenced in Sec.  19.11(e)(1) of this chapter. This form must be 
posted at locations sufficient to permit employees protected by this 
section to observe a copy on the way to or from their place of work. 
Premises must be posted no later than 30 days after an application is 
docketed and remain posted while the application is pending before the 
Commission, during the term of the license, and for 30 days following 
license termination.

[[Page 23727]]

    (2) Copies of NRC Form 3 may be obtained by writing to the Regional 
Administrator of the appropriate NRC Regional Office listed in appendix 
D to 10 CFR part 20, via email to [email protected], or by 
visiting the NRC's online library at https://www.nrc.gov/reading-rm/doc-collections/forms/.
    (f) No agreement affecting the compensation, terms, conditions, or 
privileges of employment, including an agreement to settle a complaint 
filed by an employee with the Department of Labor pursuant to section 
211 of the Energy Reorganization Act of 1974, as amended, may contain 
any provision which would prohibit, restrict, or otherwise discourage 
an employee from participating in protected activity as defined in 
paragraph (a)(1) of this section including, but not limited to, 
providing information to the NRC or to his or her employer on potential 
violations or other matters within NRC's regulatory responsibilities.
    (g) Part 19 of 10 CFR sets forth requirements and regulatory 
provisions applicable to licensees, holders of a standard design 
approval, applicants for a license or standard design approval, and 
contractors or subcontractors of a Commission licensee or holder of a 
standard design approval, and are in addition to the requirements in 
this section.


Sec.  57.757.7  Completeness and accuracy of information.

    (a) Information provided to the Commission by a holder of a 
license, construction permit, or standard design approval under this 
part or an applicant for a license, construction permit, or standard 
design approval under this part, and information required by statute or 
by the Commission's regulations, orders, license conditions, or terms 
and conditions of a standard design approval to be maintained by the 
applicant or the licensee must be complete and accurate in all material 
respects.
    (b) Each applicant or licensee and each holder of a standard design 
approval under this part must notify the Commission of information 
identified by the applicant or licensee as having for the regulated 
activity a significant implication for public health and safety or 
common defense and security. An applicant, licensee, or holder violates 
this paragraph only if the applicant, licensee, or holder fails to 
notify the Commission of information that the applicant, licensee, or 
holder has identified as having a significant implication for public 
health and safety or common defense and security. Notification must be 
provided to the Administrator of the appropriate Regional Office within 
2 working days of identifying the information. This requirement is not 
applicable to information which is already required to be provided to 
the Commission by other reporting or updating requirements.



Sec.  57.857.8  Information collection requirements: OMB approval.

    (a) The NRC has submitted the information collection requirements 
contained in this part to the Office of Management and Budget (OMB) for 
approval as required by the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.). The NRC may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. OMB has approved the information 
collection requirements contained in this part under control number 
3150-XXXX.
    (b) The approved information collection requirements contained in 
this part appear in Sec. Sec.  57.7, 57.9, 57.15, 57.45, 57.55, 57.60, 
57.95, 57.110, 57.115, 57.145, 57.150, 57.155, 57.160, 57.190, 57.197, 
57.205, 57.210, 57.220, 57.255, 57.270, 57.285, 57.300, 57.305, 57.310, 
57.315, 57.317, 57.325, 57.395, 57.399, 57.400, 57.405, 57.410, 57.424, 
57.425, 57.429, 57.430, 57.435, 57.445.
    (c) This part contains information collection requirements in 
addition to those approved under the control number specified in 
paragraph (a) of this section. The information collection requirement 
and the control numbers under which it is approved are as follows:
    (1) In Sec. Sec.  57.421, 57.422, and 57.423, NRC Form 396 is 
approved under control number 3150-0024.
    (2) In Sec. Sec.  57.423 and 57.424, NRC Form 398 is approved under 
control number 3150-0090.
    (3) In Sec.  57.435, NRC Form 361 is approved under control number 
3150-0238.
    (4) In Sec.  57.440, NRC Form 366 is approved under control number 
3150-0104.


Sec.  57.957.9  Specific exemptions.

    (a) The Commission may, upon application by any interested person 
or upon its own initiative, grant exemptions from the requirements of 
the regulations of this part, which are authorized by law, will not 
present an undue risk to the public health and safety, and are 
consistent with the common defense and security.
    (b) The Commission will not consider granting an exemption unless 
special circumstances are present. Special circumstances are present 
whenever--
    (1) Application of the regulation in the particular circumstances 
conflicts with other rules or requirements of the Commission;
    (2) Application of the regulation in the particular circumstances 
would not serve the underlying purpose of the rule or is not necessary 
to achieve the underlying purpose of the rule;
    (3) Compliance would result in undue hardship or other costs that 
are significantly in excess of those contemplated when the regulation 
was adopted, or that are significantly in excess of those incurred by 
others similarly situated;
    (4) The exemption would result in benefit to the public health and 
safety that compensates for any decrease in safety that may result from 
the grant of the exemption;
    (5) The exemption would provide only temporary relief from the 
applicable regulation and the licensee or applicant has made good faith 
efforts to comply with the regulation; or
    (6) There is present any other material circumstance not considered 
when the regulation was adopted for which it would be in the public 
interest to grant an exemption. If such condition is relied on 
exclusively for demonstrating compliance with paragraph (b) of this 
subsection, the exemption may not be granted until the Executive 
Director for Operations has consulted with the Commission.
    (c) Any person may request an exemption permitting the conduct of 
construction before the issuance of a construction permit. The 
Commission may grant such an exemption upon considering and balancing 
the following factors:
    (1) Whether conduct of the proposed activities will give rise to a 
significant adverse impact on the environment and the nature and extent 
of such impact, if any;
    (2) Whether redress of any adverse environment impact from conduct 
of the proposed activities can reasonably be effective should such 
redress be necessary;
    (3) Whether conduct of the proposed activities would foreclose 
subsequent adoption of alternatives; and
    (4) The effect of delay in conducting such activities on the public 
interest, including whether the power needs to be used by the proposed 
facility, the availability of alternative sources, if any, to meet 
those needs on a timely basis and delay costs to the applicant and to 
consumers.
    (d) Issuance of such an exemption will not be deemed to constitute 
a

[[Page 23728]]

commitment to issue a construction permit. During the period of any 
exemption granted pursuant to paragraph (c) of this section, any 
activities conducted must be carried out in such a manner as will 
minimize or reduce their environmental impact.
    (e) The Commission's consideration of requests for exemptions from 
requirements of the regulations of other parts in this chapter that are 
applicable by virtue of this part will be governed by the exemption 
requirements of those parts.


Sec.  57.11  Jurisdictional limits.

    No license or standard design approval under this part may be 
deemed to have been issued for activities that are not under or within 
the jurisdiction of the United States.


Sec.  57.12  Attacks and destructive acts.

    Licensees, holders of a standard design approval, applicants for 
licenses and design approvals, and applicants for an amendment to any 
license or design approval under this part are not required to provide 
for design features or other measures for the specific purpose of 
protection against the effects of--
    (a) Attacks and destructive acts, including sabotage, directed 
against the facility by an enemy of the United States, whether a 
foreign government or other person; or
    (b) Use or deployment of weapons incident to U.S. defense 
activities.


Sec.  57.13  Rights related to special nuclear material.

    (a) No right to the SNM will be conferred by a license issued under 
this part except as may be defined by the license.
    (b) Neither a license issued under this part, nor any right 
thereunder, nor any right to utilize or produce SNM may be transferred, 
assigned, or disposed of in any manner, either voluntarily or 
involuntarily, directly or indirectly, through transfer of control of 
the license to any person, unless the Commission, after securing full 
information, finds that the transfer is in accordance with the 
provisions of the AEA and gives its consent in writing.


Sec.  57.14  License suspension and rights of recapture.

    Any license issued under this part will be subject to suspension 
and to the rights of recapture of the material or control of the 
facility reserved to the Commission under section 108 of the AEA in a 
state of war or national emergency declared by Congress.


Sec.  57.15  Agreement limiting access to classified information.

    As part of its application under this part and in any event before 
the receipt of Restricted Data or classified National Security 
Information or the issuance of a license or standard design approval, 
the applicant must agree in writing that it will not permit any 
individual to have access to, or any facility to possess, Restricted 
Data or classified National Security Information until the individual 
and/or facility has been approved for access under the provisions of 10 
CFR parts 25 and/or 95. The agreement of the applicant becomes part of 
the license or standard design approval.


Sec.  57.16  Backfitting and issue finality.

    (a) Backfitting.
    (1) Assessment.
    (i) Definition. Backfitting is defined as the modification of or 
addition to systems, structures, components, or design of a facility; 
or the standard design approval or manufacturing license for a 
facility; or the procedures or organization required to design, 
construct or operate a facility; any of which may result from a new or 
amended provision in the Commission's regulations or the imposition of 
a regulatory staff position interpreting the Commission's regulations 
that is either new or different from a previously applicable staff 
position after:
    (A) The date of issuance of a construction permit under subpart C 
of this part;
    (B) The date of issuance of an operating license under subpart C of 
this part;
    (C) The date of issuance of a manufacturing license under subpart D 
of this part; or
    (D) The date of issuance of a standard design approval under 
subpart E of this part.
    (ii) Proposed backfitting. Except as provided in paragraph 
(a)(1)(iv) of this section, the Commission must require a systematic 
and documented analysis pursuant to paragraph (a)(2) of this section 
for backfits which it seeks to impose.
    (iii) Backfit analysis. Except as provided in paragraph (a)(1)(iv) 
of this section, the Commission must require the backfitting of a 
facility only when it determines, based on the analysis described in 
paragraph (a)(2) of this section, that there is a substantial increase 
in the overall protection of the public health and safety or the common 
defense and security to be derived from the backfit and that the direct 
and indirect costs of implementation for that facility are justified in 
view of this increased protection.
    (iv) Exceptions. The provisions of paragraphs (a)(1)(ii) and (iii) 
of this section are inapplicable and, therefore, backfit analysis is 
not required and the standards in paragraph (a)(1)(iii) of this section 
do not apply where the Commission or staff, as appropriate, finds and 
declares, with appropriate documented evaluation for its finding, 
either:
    (A) That a modification is necessary to bring a facility into 
compliance with a license or the rules or orders of the Commission, or 
into conformance with written commitments by the licensee; or
    (B) That regulatory action is necessary to ensure that the facility 
provides adequate protection to the health and safety of the public and 
is in accord with the common defense and security; or
    (C) That the regulatory action involves defining or redefining what 
level of protection to the public health and safety or common defense 
and security should be regarded as adequate.
    (v) Mandatory backfitting. The Commission will always require the 
backfitting of a facility if it determines that such regulatory action 
is necessary to ensure that the facility provides adequate protection 
to the health and safety of the public and is in accord with the common 
defense and security.
    (vi) Documented evaluation. The documented evaluation required by 
paragraph (a)(1)(iv) of this section must include a statement of the 
objectives of and reasons for the modification and the basis for 
invoking the exception. If immediately effective regulatory action is 
required, then the documented evaluation may follow rather than precede 
the regulatory action.
    (vii) Implementation. If there are two or more ways to achieve 
compliance with a license or the rules or orders of the Commission, or 
with written licensee commitments, or there are two or more ways to 
reach a level of protection which is adequate, then ordinarily the 
applicant or licensee is free to choose the way which best suits its 
purposes. However, should it be necessary or appropriate for the 
Commission to prescribe a specific way to comply with its requirements 
or to achieve adequate protection, then cost may be a factor in 
selecting the way, provided that the objective of compliance or 
adequate protection is met.
    (2) Backfit analysis factors. In reaching the determination 
required by paragraph (a)(1)(iii) of this section, the Commission will 
consider how the backfit should be scheduled in light of

[[Page 23729]]

other ongoing regulatory activities at the facility and, in addition, 
will consider information available concerning any of the following 
factors as may be appropriate and any other information relevant and 
material to the proposed backfit:
    (i) Statement of the specific objectives that the proposed backfit 
is designed to achieve;
    (ii) General description of the activity that would be required by 
the licensee or applicant in order to complete the backfit;
    (iii) Potential change in the risk to the public from the 
accidental off site release of radioactive material;
    (iv) Potential impact on radiological exposure of facility 
employees;
    (v) Installation and continuing costs associated with the backfit, 
including the cost of facility downtime or the cost of construction 
delay;
    (vi) The potential safety impact of changes in plant or operational 
complexity, including the relationship to proposed and existing 
regulatory requirements;
    (vii) The estimated resource burden on the NRC associated with the 
proposed backfit and the availability of such resources;
    (viii) The potential impact of differences in facility type, design 
or age on the relevancy and practicality of the proposed backfit;
    (b) Issue finality. In the proceedings for issuance of a standard 
design approval, manufacturing license, construction permit, or 
operating license under this part--
    (1) For which a construction permit or operating license issued 
under part 50 of this chapter, or a standard design approval or 
combined license issued under part 52 of this chapter, is referenced, 
the NRC staff and the Advisory Committee on Reactor Safeguards will use 
and rely on the reactor design and any operational programs or 
requirements with generic applicability that were approved in the 
proceeding on the application for issuance or renewal of the 
construction permit or operating license under part 50 of this chapter 
or the standard design approval or combined license under part 52 of 
this chapter, unless there exists significant new information that 
substantially affects the earlier determination or other good cause.
    (2) For which an early site permit, standard design certification, 
or manufacturing license issued under part 52 of this chapter is 
referenced, the Commission will treat as resolved those matters 
resolved in the proceeding on the application for issuance or renewal 
of the early site permit, standard design certification, or 
manufacturing license under part 52 of this chapter.
    (c) Requests for departures. An applicant or licensee under this 
part who references a construction permit or operating license for a 
nuclear reactor or nuclear plant that was afforded generic finality 
under Sec.  57.142(e) or references a manufacturing license under this 
chapter must include in the application analysis of each departure, 
both individually and cumulatively, from the design characteristics, 
site parameters, terms and conditions, or approved design of the 
nuclear reactor, nuclear plant, or manufactured reactor. An applicant 
is not required to provide analysis of departures from operational 
programs or requirements approved with the referenced construction 
permit, operating license, or manufacturing license that are not 
material to the adequacy of the design, if the applicant proposes 
alternative operational programs or requirements. Departures will be 
subject to litigation in the same manner as other issues in the 
construction permit or operating license hearing.


Sec.  57.17  Referral to the Advisory Committee on Reactor Safeguards 
(ACRS).

    The Commission will refer a copy of each initial joint application 
submitted under this part for a construction permit and associated 
operating license(s) and each application for a manufacturing license 
or standard design approval to the ACRS. The ACRS must apply the 
standards in Sec. Sec.  57.80, 57.165, and 57.213 in accordance with 
the finality provisions for any construction permit, operating license, 
manufacturing license, or standard design approval referenced in the 
application. The ACRS review will focus on aspects of the design that 
are principally unique, novel, and noteworthy. Any report will be made 
part of the record of the application and available to the public, 
except to the extent that security classification prevents disclosure.


Sec.  57.18  Combining licenses; elimination of repetition; 
relationships between subparts.

    (a) Applicants under this part may combine applications for 
multiple and different kinds of licenses, certifications, and approvals 
under the regulations of this part and parts 30, 40, 70, 71, and 72 of 
this chapter.
    (1) In situations in which applications are filed under this part 
by one or more applicants for licenses to construct and operate nuclear 
reactors or nuclear plants of essentially the same design to be located 
at different sites, reference may be made to a single final safety 
analysis report other than for applicant- or site-specific information.
    (2) An applicant may include in its joint application for a 
construction permit and operating licenses for a nuclear reactor or 
nuclear plant under this part the information required by Sec.  
57.60(a)(5) and 10 CFR part 51 for multiple sites at which the 
applicant proposes to construct and operate the reactor or plant.
    (3) An application under this part for multiple types of permits, 
licenses, or certifications must clearly indicate to which permit, 
license, or certification information in the application pertains.
    (4) Holders of operating licenses under this part that reference 
the same manufacturing license may combine applications for a license 
amendment under Sec.  57.310 that would affect the facility or the 
procedures described in the final safety analysis report for the 
manufacturing license, and may combine, with the holder of the 
manufacturing license that is referenced in the operating licenses, 
applications for a license amendment submitted by the holder of the 
manufacturing license under Sec.  57.310.
    (5) An applicant may include in a joint application a request for a 
construction permit for any number of nuclear reactors of essentially 
the same design to be built at a specific site and requests for 
operating licenses for those reactors, provided that the application 
states the earliest and latest dates for completion of the construction 
of each nuclear reactor as required by Sec.  57.55(g) and includes the 
information specified in Sec.  57.60(a)(4).
    (b) An applicant may incorporate by reference in its application 
information contained in previous applications, statements, or reports 
filed with the Commission and applicable Commission approvals issued 
under part 50 or 52 of this chapter, provided that such references are 
clear and specific. For an application under this part that references 
an approval issued under part 50 or 52 of this chapter, the scope and 
nature of matters resolved for that application are governed by Sec.  
57.16(b).
    (c) The Commission may combine in a single license the activities 
of an applicant that would otherwise be licensed separately.
    (d) A joint application for a construction permit and associated 
operating license(s) filed under this part may reference a standard 
design approval, construction permit, operating license, manufacturing 
license, or combination thereof, issued under this part. An application 
for a manufacturing license under this part may reference a

[[Page 23730]]

standard design approval issued under this part.
    (e) An application for a standard design approval or manufacturing 
license or a joint application for a construction permit and associated 
operating license(s) filed under this part may reference a relevant 
U.S. Department of War or U.S. Department of Energy authorization for a 
utilization facility that has been tested and that has demonstrated the 
ability to function safely. Any reference must identify how aspects of 
the authorization address applicable NRC regulations in this part.
    (f) Subparts in this part may be used independently.


Sec.  57.19  Filing of applications.

    (a) Any person, except one excluded by 10 CFR 50.38, may file a 
joint application for a construction permit and associated operating 
license(s), or an application for a manufacturing license under this 
part with the Director, Office of Nuclear Reactor Regulation.
    (b) Any person may submit a proposed standard design for a nuclear 
reactor of the type described in this part to the NRC staff for its 
review. The submittal may consist of either the final design for the 
entire nuclear reactor or the final design of major portions thereof.
    (c) The application must comply with the applicable filing 
requirements of 10 CFR 50.30 and subpart A of 10 CFR part 2.
    (d) The submittal for review of a proposed standard design must be 
made in the same manner as provided in 10 CFR 50.30 for license 
applications.
    (e) The fees associated with the filing and review of applications 
under this part are set forth in 10 CFR part 170.
    (f) An applicant for licenses to construct and operate one or more 
nuclear reactors under subpart C of this part must file a joint 
application for a construction permit and associated operating 
license(s). The joint application must include the information 
specified in Sec.  57.55 and Sec.  57.60 and be complete enough to 
permit all evaluations necessary for the issuance of the requested 
construction permit and the associated operating license(s) upon the 
NRC making the finding required by Sec.  57.100(b)(1).

Subpart B--Eligibility


Sec.  57.20  Scope.

    This subpart specifies the applicability criteria for construction 
permit, operating license, and manufacturing license applicants and the 
design criteria attributes for these applicants and standard design 
approval applicants, under which these entities may be considered 
eligible to use the provisions of this part.


Sec.  57.25   Applicability.

    To be eligible for a construction permit and operating license or a 
manufacturing license under this part, an applicant must demonstrate 
that its nuclear reactor or nuclear plant design and operation meets 
the following entry criteria:
    (a) An evaluation of the applicable radiological consequences shows 
with reasonable assurance that any individual located in the 
unrestricted area following the onset of a postulated accident that 
bounds a broad range of design basis accidents would not exceed 1 rem 
(0.01 Sv) TEDE for the duration of the accident; and
    (b) The total inventory of thorium, uranium, and plutonium 
contained in the nuclear reactor or any individual nuclear reactor that 
is part of the nuclear plant must not exceed 10 metric tons.


Sec.  57.30  Design criteria attributes.

    The applicant for a license or design approval under this part must 
provide information that demonstrates that the nuclear reactor or 
nuclear plant design has design criteria attributes that satisfy the 
following:
    (a) Reactivity control. The design must provide for the following:
    (1) Control of the power level during normal operations;
    (2) Rapid insertion of reactivity control devices to immediately 
shut down the reactor and maintain it in a safe shutdown state under 
accident conditions; and
    (3) Net negative reactivity feedback as a result of increased 
reactor power.
    (b) Heat removal. The design must provide for highly reliable 
passive decay heat removal to limit core coolant and fuel temperatures 
during accident conditions to within design limits to protect the fuel 
and, as appropriate, the reactor coolant and fission product 
boundaries.
    (c) Fission product retention. The design must provide for the 
protection of engineered fission product boundaries to limit the 
fission product release of radionuclides during normal and accident 
conditions.
    (d) Shielding. The design must provide the following:
    (1) Adequate permanent and temporary shielding to comply with 10 
CFR part 20 for the protection of workers and the public from direct 
radiation exposure from the reactor and radioactive sources during 
operation, shutdown, and transport, including during abnormal 
conditions; and
    (2) Sufficient robustness and heat removal to prevent loss of 
shielding integrity during normal and accident conditions
    (e) Radioactive effluents control. The design must meet the 
requirements of part 20 of this chapter for control, monitoring, and 
release of radioactive materials to the environment.
    (f) Security by design. Safety and security must be considered 
together in the design process such that, where possible, security 
issues are effectively resolved through design and engineered security 
features.


Sec.  57.35  Licensing requirements.

    (a) If an applicant for a construction permit, license, or standard 
design approval under this part can demonstrate that its reactor design 
meets the applicable eligibility requirements of Sec. Sec.  57.25 and 
57.30, then the applicant must comply with the applicable application 
and procedural requirements set forth in this part.
    (b) Notwithstanding the requirements of part 50 or 52 of this 
chapter, if an applicant is issued a construction permit, license, or 
design approval under this part, then that entity is subject to the 
requirements of this part and not part 50 or 52 of this chapter unless 
specifically required by this part.

Subpart C--Construction Permits and Operating Licenses


Sec.  57.40  Scope.

    This subpart sets forth the requirements and procedures applicable 
to Commission issuance of construction permits and operating licenses 
for utilization facilities of the type described in Sec.  50.22 of this 
chapter.


Sec.  57.45  License required; exceptions from licensing.

    (a) Except as provided for in paragraph (b) of this section, no 
person within the United States may transfer or receive in interstate 
commerce, manufacture, produce, transfer, acquire, possess, or use any 
utilization facility under this part except as authorized by a license 
issued under this part by the Commission.
    (b) Nothing in this part may be deemed to require a license for the 
transportation or possession of a utilization facility by a common or 
contract carrier or warehousemen in the regular course of carriage for 
another or storage incident thereto.
    (c) Except as provided for in paragraph (d) of this section, no 
person may begin the construction of a utilization facility on a site 
on which

[[Page 23731]]

the facility is to be operated until that person has been issued a 
construction permit under this part.
    (d) A general license is hereby issued for construction activities 
on a site that is specified in a joint application for a construction 
permit and associated operating license(s) under this part, subject to 
the following conditions:
    (1) The general licensee has submitted and the Commission docketed 
a joint application for a construction permit and associated operating 
license(s) under this part that meets the following criteria:
    (i) The joint application references a manufacturing license issued 
by the Commission under this chapter;
    (ii) The joint application references a construction permit and 
operating license issued pursuant to this part that the Commission 
afforded generic finality under Sec.  57.142(e), that referenced the 
same manufacturing license as the general licensee in its joint 
application, and that met the criteria for a categorical exclusion 
under subpart K of this part.
    (iii) The joint application includes a plan for redress of any 
adverse environmental impact from conduct of activities under the 
general license should such redress be necessary.
    (2) The general licensee has notified the NRC under Sec.  57.4 that 
all applicable permits, licenses, approvals, and other entitlements in 
connection with the proposed action have been obtained.
    (3) All applicable Federal environmental consultations have been 
completed.
    (4) The general licensee must not allow special nuclear material or 
radioactive material that would be associated with operation under an 
operating license issued pursuant to this part to be brought to the 
site under the general license;
    (5) The general licensee must not allow a manufactured reactor to 
be brought to the site under the general license.
    (6) The general licensee must allow for NRC inspections that the 
Commission deems necessary related to activities performed under the 
general license.
    (7) Any activities undertaken by the general licensee or on its 
behalf under the general license are entirely at the risk of the 
general licensee and have no bearing on the issuance of a construction 
permit with respect to the requirements of the AEA, and rules, 
regulations, or orders issued under the AEA.


Sec.  57.55  Contents of applications; general information.

    Each application must state:
    (a) Name of applicant;
    (b) Address of applicant;
    (c) Description of business or occupation of applicant;
    (d) Organization information of applicant, including the following 
information:
    (1) If applicant is an individual, the citizenship of applicant.
    (2) If applicant is a partnership, the name, citizenship and 
address of each partner and the principal location where the 
partnership does business.
    (3) If applicant is a corporation or an unincorporated association, 
the following information:
    (i) The state where it is incorporated or organized and the 
principal location where it does business;
    (ii) The names, addresses and citizenship of its directors and of 
its principal officers;
    (iii) Whether it is owned, controlled, or dominated by an alien, a 
foreign corporation, or foreign government, and if so, give details.
    (4) If the applicant is acting as agent or representative of 
another person in filing the application, identify the principal and 
furnish information required under this paragraph with respect to such 
principal.
    (e) The type of license(s) applied for, the use to which the 
facility will be put, the period of time for which the license(s) are 
sought, and a list of other licenses, issued or applied for in 
connection with the proposed facility.
    (f) Except for an electric utility applicant for a license to 
operate a utilization facility, information sufficient to demonstrate 
to the Commission the financial qualification of the applicant to carry 
out, in accordance with regulations in this chapter, the activities for 
which the construction permit and operating license is sought. As 
applicable, the following must be provided:
    (1) For a construction permit under this section, the applicant 
must submit information that demonstrates that the applicant appears to 
be financially qualified to cover estimated construction costs and 
related fuel cycle costs. The applicant must submit estimates of the 
total construction costs of the facility and related fuel cycle costs, 
a financial capacity plan, and any source(s) of funds available at the 
time of application to cover these costs. If available funding at the 
time of application is 50 percent or less, the applicant should include 
proposed license conditions to facilitate verification that funding is 
available prior to the start of construction.
    (2) For an operating license under this section, the applicant must 
submit information that demonstrates the applicant appears to be 
financially qualified to cover estimated operation costs for the period 
of the license. The applicant must submit estimates for total annual 
operating costs for each of the first 5 years of operation of the 
facility and a financial capacity plan and indicate any source(s) of 
funds available at the time of application to cover these costs. If 
available funding at the time of application is 50 percent or less, the 
applicant should include proposed license conditions to facilitate 
verification that funding is available prior to the start of 
operations. An applicant seeking to renew or extend the term of an 
operating license need not submit the financial information that is 
required in an application for an initial license.
    (g) If the applicant proposes to construct or materially alter a 
utilization facility, the application must state the earliest and 
latest dates for completion of the construction or material alteration.
    (h) If the proposed activity is the generation and distribution of 
electric energy under a license under this part, a list of the names 
and addresses of such regulatory agencies as may have jurisdiction over 
the rates and services incident to the proposed activity, and a list of 
trade and news publications that circulate in the area where the 
proposed activity will be conducted and that are considered appropriate 
to give reasonable notice of the application to those municipalities, 
private utilities, public bodies, and cooperatives, which might have a 
potential interest in the facility.
    (i) Information in the form of a report, as described in 10 CFR 
50.75, indicating how reasonable assurance will be provided that funds 
will be available to decommission the facility.
    (j) If the application contains Restricted Data or classified 
National Security Information, confirmation that all Restricted Data 
and classified National Security Information are separated from the 
unclassified information.


Sec.  57.60  Contents of applications; technical information.

    (a) Final safety analysis report. Each application must include a 
final safety analysis report that consists of the following:
    (1) A description and safety assessment of the site and a safety 
assessment of the facility, including the following:
    (i) Intended use of the reactor including the maximum power level

[[Page 23732]]

and the nature and inventory of contained radioactive materials;
    (ii) The safety features that are to be engineered into the 
facility and those barriers that must be breached as a result of an 
accident before a release of radioactive material to the environment 
can occur. Special attention must be directed to design features 
intended to prevent and mitigate the radiological consequences of 
accidents.
    (iii) An evaluation that meets the dose-based entry criterion of 
Sec.  57.25(a). In performing this evaluation, an applicant must assume 
a fission product release utilizing a postulated accident source term 
that represents the most limiting fission product inventory during the 
lifetime of the nuclear reactor while assuming that the reactor is 
operated at the ultimate power level contemplated.
    (iv) As applicable, a description and assessment of SSCs for remote 
operation of the reactor from outside the site boundary that 
demonstrates that the reactor can be safely operated and can reach and 
maintain a safe shutdown state, including under abnormal conditions.
    (v) As applicable, a description and assessment of design features 
for remote monitoring of the nuclear reactor or nuclear plant from 
outside the site boundary and protecting the integrity of important 
safety parameters and safety function data needed to perform human 
actions that protect public health and safety, and to protect sensitive 
plant data that could be used to aid in an attack (physical or cyber) 
against the reactor.
    (vi) As applicable, a description and assessment of design features 
for autonomous performance of operations and safety functions without 
reliance on human intervention, external command, or active control 
system input under normal, abnormal, and accident conditions.
    (vii) Analysis, appropriate test programs, prototype testing, 
operating experience, or a combination thereof that demonstrates that 
each of the design criteria attributes described in Sec.  57.30 are 
met. This demonstration must consider interdependent effects throughout 
the nuclear plant for the duration of the nuclear plant's lifetime.
    (2) The design basis of the facility, including:
    (i) The principal design criteria.
    (ii) Relation of the design bases to the principal design criteria.
    (iii) Relation of the principal design criteria to the design 
criteria attributes described in Sec.  57.30.
    (3) A description of the quality assurance program to be applied to 
the design, fabrication, manufacture (as applicable), construction, and 
testing of the safety-related SSCs of the facility.
    (4) For sites at which multiple nuclear reactors may be built or 
installed under a construction permit under this part, the application 
must--
    (i) specify limitations on and provide an analysis of the number 
and configuration of nuclear reactors that may be in various stages of 
construction, operation, shutdown, and decommissioning at any time from 
the commencement of construction of the first reactor to the 
termination of the last operating license;
    (ii) include an assessment of potential hazards to safety-related 
SSCs of the operating reactors at the site posed by activities related 
to the construction, operation, and decommissioning of other reactors 
at the site;
    (iii) include a description of the portions of the nuclear plant 
that will be shared by multiple reactors over the lifetime of the plant 
and specify functional requirements and measures to meet the 
requirements for any safety-related SSCs of the nuclear plant that will 
be shared by multiple reactors over the lifetime of the plant; and
    (iv) include technical specifications in accordance with Sec.  
57.60(a)(8)(vi), as appropriate, for the portions of the nuclear plant 
that will be shared with one or more other reactors over the lifetime 
of the plant.
    (5) Information relating to current and projected population 
distributions in the surrounding area and applicable site evaluation 
factors for seismic, meteorological, hydrologic, and geologic 
characteristics with appropriate consideration of natural phenomena, 
including, as applicable, information demonstrating that the site 
characteristics are bounded by the site parameters postulated for the 
design.
    (6) An evaluation of the safety-related SSCs of the facility, with 
emphasis upon performance requirements; the bases, with their technical 
justifications, upon which such requirements have been established; and 
the evaluations required to show that safety functions will be 
accomplished. The evaluation must be sufficient to permit understanding 
of the system designs and their relationship to safety analyses.
    (7) The kinds and quantities of radioactive materials expected to 
be produced by operation of the nuclear reactor or nuclear plant and 
the means for controlling and limiting radioactive effluents and 
radiation exposures within the limits set forth in part 20 of this 
chapter, including:
    (i) An estimate of the quantity of each of the principal 
radionuclides expected to be released annually to unrestricted areas in 
liquid effluents produced during normal operations;
    (ii) An estimate of the quantity of each of the principal 
radionuclides of the gases, halides, and particulates expected to be 
released annually to unrestricted areas in gaseous effluents produced 
during normal operations; and
    (iii) A description of the equipment and procedures for the control 
of gaseous and liquid effluents and for the maintenance and use of 
equipment installed in radioactive waste systems.
    (8) Information related to operational programs concerning facility 
operation. Implementation milestones for each operational program must 
be described depending on whether the program will be implemented all 
at once or on a phased basis. Programs concerning facility operations 
include:
    (i) The applicant's organizational structure, allocations of 
responsibilities and authorities, personnel qualifications and training 
requirements, and conduct of operations.
    (ii) Plans for preoperational testing and initial operations.
    (iii) Plans for conduct of normal operations, including 
maintenance, surveillance, and periodic testing of safety-related SSCs.
    (iv) An emergency plan for responding to events that could lead to 
an accidental release or loss of control of radioactive material, and 
to any associated hazards directly incident thereto. Each applicant and 
licensee under this part must coordinate response needs with local 
emergency planning and offsite response organizations. The applicant 
must provide the offsite response organizations that are expected to 
respond in an emergency with the opportunity to provide input on the 
emergency plan before submitting it to the NRC. The application must 
contain any input on the emergency plan received from offsite 
organizations.
    (v) Security programs.
    (A) Physical Security.
    (1) Each applicant and licensee under this part must implement 
security requirements for the protection of special nuclear material 
based on the type, enrichment, and quantity in accordance with part 73 
of this chapter, as applicable.
    (2) Each applicant and licensee under this part must implement 
security requirements for the protection of Category 1 and Category 2 
quantities of radioactive material in accordance with part 37 of this 
chapter, as applicable.
    (3) Each applicant and licensee under this part must implement 
security requirements for radiological sabotage

[[Page 23733]]

set forth in subpart J of this part, unless the applicant and licensee 
demonstrates that the radiological consequences from a design basis 
threat-initiated event do not exceed the dose reference values defined 
in Sec.  50.34(a)(1)(ii)(D)(1) of this chapter. To satisfy this 
requirement, the design must be assessed against the design basis 
threat of radiological sabotage as stated in Sec.  73.1 of this 
chapter. The analysis must assume that licensee mitigation and recovery 
actions, including any operator actions, are unavailable or 
ineffective.
    (B) Cybersecurity. Each applicant and licensee under this part must 
develop, implement, and maintain a cybersecurity program under Sec.  
73.54 or Sec.  73.110 of this chapter.
    (C) Information Security. Each applicant and licensee under this 
part must develop, implement, and maintain an information protection 
system under Sec. Sec.  73.21, 73.22, and 73.23 of this chapter, as 
applicable.
    (D) Access Authorization. Each applicant and licensee under this 
part must establish, implement, and maintain an access authorization 
program under Sec.  73.56 of this chapter and must describe the program 
in the physical security plan.
    (vi) Proposed technical specifications prepared in accordance with 
the requirements of Sec.  50.36 of this chapter.
    (vii) As applicable, procedures to be used to provide assurance 
that the limiting conditions for operation of any operating reactor 
will not be exceeded as a result of activities associated with 
construction of additional reactors at the same site.
    (viii) The radiation protection program.
    (ix) The fire protection program.
    (A) Each application must include a fire protection plan that 
describes the overall fire protection program for the facility; 
identifies the various positions within the licensee's organization 
that are responsible for the program; states the authorities that are 
delegated to each of these positions to implement those 
responsibilities; and outlines the plans for fire protection, fire 
detection and suppression capability, and limitation of fire damage.
    (B) The fire protection plan must also describe specific features 
necessary to implement the program described in paragraph (a)(8)(ix)(A) 
of this section such as the following: administrative controls and 
personnel requirements for fire prevention and manual fire suppression 
activities; training requirements for any fire brigade members; 
automatic and manually operated fire detection and suppression systems, 
as appropriate; and the means to limit fire damage to safety-related 
SSCs.
    (C) The fire protection plan must include an analysis to 
demonstrate that a fire or explosion in any plant area would not 
prevent safety-related SSCs from fulfilling safety functions.
    (D) Safety-related SSCs must be designed, located, and maintained 
to minimize, consistent with other safety requirements, the likelihood 
and effect of fires and explosions.
    (E) Noncombustible and fire-resistant materials must be used 
wherever practical in locations with safety-related SSCs.
    (F) Fire detection and fire suppression systems of appropriate 
capacity and capability must be provided and designed and maintained to 
minimize the adverse effects of fires on safety-related SSCs.
    (G) Fire suppression systems must be designed and maintained to 
ensure that their rupture or inadvertent operation does not 
significantly impair the ability of safety-related SSCs to perform 
their safety functions.
    (H) Fire detection and fire suppression systems must also consider 
and address, as appropriate, any impact from collocated facilities 
within the site boundary.
    (x) A description of how the human factors engineering requirements 
of Sec.  57.395 are addressed and the training, examination, and 
proficiency programs necessary to meet the requirements of subpart P of 
this part.
    (xi) As applicable, a description and plans for implementation of a 
remote operation or monitoring program.
    (xii) Program(s), and their implementation, necessary to ensure 
that the systems and components meet the requirements in the codes or 
standards identified in the application in accordance with Sec.  
57.60(a)(9).
    (xiii) The program, and its implementation, for the environmental 
qualification of safety-related electric equipment.
    (xiv) A fitness-for-duty program under part 26 of this chapter.
    (xv) A staffing plan and supporting analysis in accordance with 
Sec.  57.395(c).
    (xvi) If the applicant seeks, with its application, approval of a 
plan for storage of irradiated fuel after termination of an operating 
license, then a plan that demonstrates compliance with all applicable 
irradiated fuel possession, safety, and environmental requirements; 
includes a plan for funding the management of the fuel; and addresses, 
as applicable, transport of the fuel to a designated storage site.
    (xvii) If the applicant seeks, with its application, approval of a 
decommissioning plan, then a decommissioning plan prepared using the 
framework of Sec.  50.82(b)(4) of this chapter, limited to those 
provisions applicable to the design characteristics of the nuclear 
reactor or nuclear plant, that addresses, as applicable, transport of a 
nuclear reactor to a designated facility for final decommissioning, 
final decommissioning of individual nuclear reactors, and final 
decommissioning of the entire nuclear plant, and ensures compliance 
with all applicable safety and environmental requirements.
    (xviii) Managerial and administrative controls to be used to assure 
safe operation.
    (9) Information related to the use of codes and standards. In the 
case that generally recognized consensus codes or standards are used 
and applied to the design of the facility, they must be named and 
evaluated for applicability, adequacy, and sufficiency. Justification 
must be provided if they are to be supplemented or modified in keeping 
with the safety importance of the function to be performed. Criteria 
from these consensus codes or standards must be clearly stated and must 
be shown to provide the appropriate level of reliability, safety, and 
performance capability. The applicability of these criteria must be 
determined from the safety assessment.
    (10) The analyses and descriptions of the equipment and systems for 
combustible gas control required by Sec.  50.44(d) of this chapter.
    (11) The technical qualifications of the applicant to engage in the 
proposed activities in accordance with the regulations of this chapter.
    (12) A description of the design-specific risk analysis methods 
applied to demonstrate adequate defense in depth and safety margin and 
the results of the analysis; and
    (13) Information demonstrating how the applicant will comply with 
requirements for criticality accidents in Sec.  50.68 of this chapter, 
except that the maximum nominal U-235 enrichment of the fresh fuel 
assemblies is limited to less than twenty (20.0) weight percent for the 
purposes of Sec.  50.68(b)(7).
    (b) Environmental information. Each application must include 
information justifying application of a categorical exclusion, or if a 
categorical exclusion is not applicable, an environmental report or 
applicant-prepared environmental assessment or environmental impact 
statement, in accordance with part 51 of this chapter.
    (c) Request for generic finality. An applicant may include in its 
joint application a request that the Commission afford generic 
finality, in

[[Page 23734]]

accordance with Sec.  57.142(e), to the construction permit, associated 
operating license(s), or both. The joint application must include site 
parameters postulated for the design, including the design basis 
external hazard levels for the relevant external hazards, and an 
analysis and evaluation of the design in terms of those site 
parameters, and may include generic aspects of operational programs and 
requirements of the types specified in Sec.  57.60(a)(8), consistent 
with the scope of the request for generic finality.
    (d) Large designated areas. If a joint application for a 
construction permit and associated operating license(s) under this part 
designates large geographical areas within which the applicant proposes 
to construct and operate one or more utilization facilities specified 
in the application, then it must include the following additional 
information:
    (1) Under Sec.  57.60(a)(1), descriptions and safety assessments of 
the designated areas, including maps showing the boundaries of the 
areas;
    (2) Under Sec.  57.60(a)(4), any restrictions on the relative 
specific locations of the nuclear reactors proposed in the application 
within a designated area;
    (3) Under Sec.  57.60(a)(5), information covering the entirety of 
the designated areas, including information demonstrating that the site 
parameters postulated for the design bound the maximum values for site 
evaluation factors within the designated areas;
    (4) A plan for storage of irradiated fuel after termination of an 
operating license as described in Sec.  57.60(a)(8)(xvi);
    (5) A decommissioning plan as described in Sec.  57.60(a)(8)(xvii);
    (6) A procedure covering activities that will be conducted in 
connection with constructing each utilization facility and placing it 
into operation at a specific location, including considerations related 
to Sec.  57.60(a)(8)(vii) and NRC inspections required by Sec.  
57.100(b)(1);
    (7) A procedure that describes how the applicant will determine 
that a specific location within a designated area is suitable for 
construction and operation, including notification to the NRC, in the 
manner specified under Sec.  57.4, prior to beginning construction; and
    (8) Under Sec.  57.60(b), information in the environmental report 
or applicant-prepared environmental assessment or environmental impact 
statement, required by part 51 of this chapter pertaining to the 
entirety of the designated areas, as appropriate.


Sec.  57.80  Standards for review of applications.

    (a) Applications filed under this part will be reviewed according 
to the standards set out in this part and 10 CFR parts 20, 50, 51, 54, 
70, 71, 72, 73, 74, and 140, as applicable.
    (b) The Commission must perform an environmental review during 
review of the application in accordance with the applicable provisions 
of subpart K of this part and 10 CFR part 51.


Sec.  57.90  Common standards for licenses.

    In determining that a construction permit or operating license in 
this part will be issued to an applicant, the Commission will be guided 
by the following considerations:
    (a) The processes to be performed, the operating procedures, the 
facility and equipment, the use of the facility, and other technical 
specifications, or the proposals, in regard to any of the foregoing 
collectively provide reasonable assurance that the applicant will 
comply with the regulations in this chapter, including the regulations 
in part 20 of this chapter, and that the health and safety of the 
public will not be endangered.
    (b) The applicant for a construction permit and operating license 
is technically and financially qualified to engage in the proposed 
activities in accordance with the regulations in this chapter. However, 
no consideration of financial qualification is necessary for an 
electric utility applicant for an operating license under this part.
    (c) The issuance of a construction permit or operating license to 
the applicant will not, in the opinion of the Commission, be inimical 
to the common defense and security or to the health and safety of the 
public.
    (d) Any applicable requirements of 10 CFR part 51 have been 
satisfied.
    (e) In determining whether a construction permit or operating 
license will be issued to an applicant, the Commission will consider 
whether the proposed activities will serve a useful purpose 
proportionate to the quantities of special nuclear material or source 
material to be utilized.
    (f) Upon determination that an application for a license meets the 
standards and requirements of the AEA and regulations, and that 
notifications, if any, to other agencies or bodies have been duly made, 
the Commission will issue a construction permit or operating license in 
such form and containing such conditions and limitations including 
technical specifications, as it deems appropriate and necessary.
    (g) An applicant for an operating license or an amendment of an 
operating license who proposes to construct or materially alter a 
utilization facility will be initially granted a construction permit if 
the application is in conformity with and acceptable under the criteria 
of Sec. Sec.  57.55 through 57.80, and the standards of this section as 
applicable.
    (h) A construction permit under this part for the construction of 
one or more utilization facilities will be issued before the issuance 
of any license to operate a utilization facility if the application is 
otherwise acceptable. The construction permit will be converted into 
one or more operating licenses upon the completion of construction and 
Commission action. A construction permit for a material alteration of a 
utilization facility will be issued before the issuance of an amendment 
of a license, if the application for amendment is otherwise acceptable, 
as provided in Sec.  57.310.
    (i) In the case of a construction permit or operating license under 
this part for a facility for the generation of commercial power:
    (1) The NRC will--
    (i) Give notice in writing of each application to the regulatory 
agency or State as may have jurisdiction over the rates and services 
incident to the proposed activity;
    (ii) Publish notice of the application in trade or news 
publications as it deems appropriate to give reasonable notice to 
municipalities, private utilities, public bodies, and cooperatives 
which might have a potential interest in the utilization facility; and
    (iii) Publish notice of the application once each week for four 
consecutive weeks in the Federal Register. No license will be issued by 
the NRC prior to the giving of these notices and until four weeks after 
the last notice is published in the Federal Register.
    (2) If there are conflicting applications for a limited opportunity 
for such license, the Commission will give preferred consideration in 
the following order: first, to applications submitted by public or 
cooperative bodies for facilities to be located in high cost power 
areas in the United States; second, to applications submitted by others 
for facilities to be located in such areas; third, to applications 
submitted by public or cooperative bodies for facilities to be located 
in areas other than high cost power areas; and, fourth, to all other 
applicants.
    (3) The licensee who transmits electric energy in interstate 
commerce, or sells it at wholesale in interstate commerce, will be 
subject to the regulatory provisions of the Federal Power Act.

[[Page 23735]]

    (4) Nothing must preclude any government agency, now or hereafter 
authorized by law to engage in the production, marketing, or 
distribution of electric energy, if otherwise qualified, from obtaining 
a construction permit or operating license under this part for a 
utilization facility for the primary purpose of producing electric 
energy for disposition for ultimate public consumption.


Sec.  57.95  Issuance of construction permit.

    (a) After conducting a hearing in accordance with Sec.  57.130 and 
receiving the report submitted by the ACRS, the Commission may issue a 
construction permit if the Commission finds that:
    (1) The applicable standards and requirements of the AEA and the 
Commission's regulations have been met;
    (2) Any required notifications to other agencies or bodies have 
been duly made;
    (3) There is reasonable assurance that the facility will be 
constructed in conformity with the construction permit, the provisions 
of the AEA, and the Commission's regulations.
    (4) The applicant is technically and financially qualified to 
engage in the activities authorized;
    (5) Issuance of the construction permit will not be inimical to the 
common defense and security or to the health and safety of the public; 
and
    (6) The findings required by part 51 of this chapter have been 
made.
    (b) A construction permit will constitute an authorization to the 
applicant to proceed with construction but will not constitute 
Commission approval of the operational programs or requirements, other 
than those material to the adequacy of the design, unless the applicant 
specifically requests such approval and such approval is incorporated 
in the construction permit. The applicant, at its option, may request 
such approvals in the construction permit or, from time to time, by 
amendment of its construction permit. The Commission may, in its 
discretion, incorporate in any construction permit provisions requiring 
the applicant to furnish periodic reports of the progress.
    (c) Any construction permit must state the earliest and latest 
dates for the completion of the construction of each nuclear reactor or 
modification authorized by the permit.


Sec.  57.100  Issuance of operating license.

    (a) Upon completion of the construction or material alteration of a 
facility, in compliance with the terms and conditions of the 
construction permit and subject to any necessary testing of the 
facility for health or safety purposes, the Commission will, in the 
absence of good cause shown to the contrary, issue an operating license 
or an appropriate amendment of the license, as the case may be.
    (b) An operating license may be issued by the Commission, up to the 
full term authorized by Sec.  57.105(a), upon finding that:
    (1) Construction of the facility has been substantially completed, 
in conformity with the construction permit and the application as 
amended, the provisions of the AEA, and the rules and regulations of 
the Commission;
    (2) The facility will operate in conformity with the application as 
amended, the provisions of the AEA, and the rules and regulations of 
the Commission;
    (3) There is reasonable assurance that the activities authorized by 
the operating license can be conducted without endangering the health 
and safety of the public and will be conducted in compliance with the 
regulations in this chapter;
    (4) The applicant is technically and financially qualified to 
engage in the activities authorized by the operating license in 
accordance with the regulations in this chapter. However, no finding of 
financial qualification is necessary for an electric utility applicant 
for an operating license for a utilization facility;
    (5) The applicable provisions of part 140 of this chapter have been 
satisfied; and
    (6) The issuance of the operating license will not be inimical to 
the common defense and security or to the health and safety of the 
public.
    (c) Each operating license will include appropriate provisions with 
respect to any uncompleted items of construction and such limitations 
or conditions as are required to ensure that operation during the 
period of the completion of such items will not endanger public health 
and safety.
    (d) An applicant may, in a case where a hearing is held in 
connection with a pending proceeding under this section make a motion 
in writing, under this paragraph, for an operating license authorizing 
low power testing, and further operations less than full power 
operation. Action on such a motion by the presiding officer will be 
taken with due regard to the rights of the parties to the proceedings, 
including the right of any party to be heard to the extent that his 
contentions are relevant to the activity to be authorized. Before 
taking any action on such a motion that any party opposes, the 
presiding officer must make findings on the matters specified in 
paragraph (b) of this section as to which there is a controversy, in 
the form of an initial decision with respect to the contested activity 
sought to be authorized. The Director of Nuclear Reactor Regulation 
will make findings on all other matters specified in paragraph (b) of 
this section. If no party opposes the motion, the presiding officer 
will issue an order in accordance with Sec.  2.319(p) of this chapter 
authorizing the Director of Nuclear Reactor Regulation to make 
appropriate findings on the matters specified in paragraph (b) of this 
section and to issue a license for the requested operation.
    (e) Each operating license for a nuclear reactor issued under this 
part that references a manufacturing license issued under subpart D of 
this part must include, as applicable, a condition that--
    (1) The authorization to operate the reactor is suspended while the 
features to prevent criticality described in the manufacturing license 
are in place; and
    (2) Removal of the features to prevent criticality may not be 
initiated unless--
    (i) All conditions of an operating license under this part are met, 
or
    (ii) The reactor has been defueled in accordance with an 
appropriate license issued by the Commission.
    (f) The operating license for a nuclear reactor that is part of a 
nuclear plant at which portions of the nuclear plant will be shared by 
multiple reactors over the lifetime of the plant as described in Sec.  
57.60(a)(4)(iii), must include a condition specifying that the shared 
portions of the plant are part of the facility as described in the 
operating license's final safety analysis report and any related 
technical specifications under Sec.  57.60(a)(4)(iv) are incorporated 
in the license.


Sec.  57.105  Continuation of license.

    (a) Each construction permit and operating license will be issued 
for a fixed period of time to be specified in the license but in no 
case to exceed 40 years from date of issuance. Where the operation of a 
facility is involved, the Commission will issue the operating license 
for the term requested by the applicant or for the estimated useful 
life of the nuclear reactor or nuclear plant if the Commission 
determines that the estimated useful life is less than the term 
requested. Licenses may be renewed by the Commission upon the 
expiration of the period. Renewal of operating licenses requirements 
are provided in Sec.  57.115 and Sec.  57.120. Application for 
termination of license is to be made pursuant to Sec.  57.305.
    (b) Each operating license for a facility that has permanently 
ceased operations,

[[Page 23736]]

continues in effect beyond the expiration date to authorize ownership 
and possession of the facility, until the Commission notifies the 
licensee in writing that the operating license is terminated. During 
such period of continued effectiveness the licensee must--
    (1) Take actions necessary to decommission and decontaminate the 
facility and continue to maintain the facility, including, where 
applicable, the storage, control and maintenance of irradiated fuel, in 
a safe condition, and
    (2) Conduct activities in accordance with all other restrictions 
applicable to the facility in accordance with the NRC regulations and 
the provisions of the specific license for the facility.


Sec.  57.110  Transfer of licenses.

    (a) No construction permit or license under this part, or any right 
thereunder, may be transferred, assigned, or in any manner disposed of, 
either voluntarily or involuntarily, directly or indirectly, through 
transfer of control of the license or construction permit to any 
person, unless the Commission gives its consent in writing.
    (b) Contents of license transfer applications.
    (1) An application for transfer of a license or construction permit 
must include:
    (i) For a construction permit or operating license under this part, 
as much of the information described in Sec. Sec.  57.55 and 57.60 with 
respect to the identity and technical and financial qualifications of 
the proposed transferee as would be required by those sections if the 
application were for an initial construction permit or license.
    (ii) For a manufacturing license under this part, as much of the 
information described in Sec. Sec.  57.150 and 57.155 with respect to 
the identity and technical qualifications of the proposed transferee as 
would be required by those sections if the application were for an 
initial license.
    (2) For a construction permit or operating license under this part, 
the Commission may require additional information such as data 
respecting proposed safeguards against hazards from radioactive 
materials and the applicant's qualifications to protect against such 
hazards.
    (3) The application must include a statement of the purposes for 
which the transfer of the construction permit or license is requested, 
the nature of the transaction necessitating or making desirable the 
transfer, and an agreement to limit access to Restricted Data and 
classified National Security Information pursuant to Sec.  57.15. The 
Commission may require any person who submits an application for a 
construction permit or license pursuant to the provisions of this 
section to file a written consent from the existing licensee or a 
certified copy of an order or judgment of a court of competent 
jurisdiction attesting to the person's right (subject to the licensing 
requirements of the AEA and these regulations) to possession of the 
facility or site involved.
    (c) After appropriate notice to interested persons, including the 
existing licensee, and observance of such procedures as may be required 
by the AEA or regulations or orders of the Commission, the Commission 
will approve an application for the transfer of a construction permit 
or license, if the Commission determines:
    (1) That the proposed transferee is qualified to be the holder of 
the license; and
    (2) That transfer of the construction permit or license is 
otherwise consistent with applicable provisions of law, regulations, 
and orders issued by the Commission pursuant thereto.


Sec.  57.115  Application for renewal.

    (a) The filing of an application for renewal must be in accordance 
with subpart A of part 2 of this chapter, Sec.  57.4, and Sec.  57.7.
    (b) Each application for renewal must include the information 
described in Sec.  57.55(a) through (e), (g), and (h).
    (c) Each application must include any information required by 10 
CFR part 51.
    (d) Each application must include any technical specification 
changes or additions necessary to manage the effects of aging during 
the period of extended operation as part of the renewal application. 
The justification for changes or additions to the technical 
specifications must be contained in the operating license renewal 
application.
    (e) Each application for renewal must include technical information 
as follows:
    (1) Identify safety-related SSCs subject to an aging management 
review, excluding those that are not subject to replacement based on a 
qualified life or specified time period.
    (2) For each safety-related SSC identified in paragraph (e)(1) of 
this section, demonstrate that the effects of aging will be adequately 
managed so that the intended safety function(s) will be maintained 
consistent with the licensing basis for the period of extended 
operation.
    (3) At least 3 months before scheduled completion of the NRC 
review, an amendment to the renewal application must be submitted that 
identifies any change to the licensing basis of the facility that 
materially affects the contents of the license renewal application, 
including the FSAR supplement.
    (4) A list of time-limited aging analyses to demonstrate the 
following:
    (i) The analyses remain valid for the period of extended operation;
    (ii) The analyses have been projected to the end of the period of 
extended operation; or
    (iii) The effects of aging on the safety function(s) will be 
adequately managed for the period of extended operation.
    (5) An FSAR supplement for the facility that contains a summary 
description of the programs and activities for managing the effects of 
aging and the evaluation of time-limited aging analyses for the period 
of extended operation.
    (f) A notice of an opportunity for a hearing will be published in 
the Federal Register in accordance with 10 CFR 2.105 and 2.309. In the 
absence of a request for a hearing filed within 60 days by a person 
whose interest may be affected, the Commission may issue a renewed 
operating license without a hearing upon a 30-day notice and 
publication in the Federal Register of its intent to do so.


Sec.  57.120  Criteria for renewal.

    A renewed license may be issued by the Commission up to the full 
term authorized by Sec.  57.135 if the Commission finds that:
    (a) Actions have been identified and have been or will be taken 
with respect to the matters identified in paragraphs (a)(1) and (a)(2) 
of this section, such that there is reasonable assurance that the 
activities authorized by the renewed license will continue to be 
conducted in accordance with the current licensing basis, and that any 
changes made to the plant's current licensing basis in order to comply 
with this paragraph are in accord with the AEA and the Commission's 
regulations. These matters are:
    (1) Managing the effects of aging during the period of extended 
operation on the functionality of structures and components that have 
been identified to require review under Sec.  57.115(e)(1); and
    (2) Time-limited aging analyses that have been identified to 
require review under Sec.  57.115(e)(4).
    (b) Any applicable requirements of 10 CFR part 51 have been 
satisfied.
    (c) Any matters raised under 10 CFR 2.335 have been addressed.


Sec.  57.130  Hearings.

    (a) A notice of an opportunity for a hearing will be published in 
the Federal Register in accordance with 10 CFR

[[Page 23737]]

2.105 and 2.309 for each application for a renewed operating license. 
In the absence of a request for a hearing filed within 30 days by a 
person whose interest may be affected, the Commission may issue a 
renewed operating license or without a hearing upon a 30-day notice and 
publication in the Federal Register of its intent to do so.
    (b) Hearings procedure.
    (1) The Commission will hold a hearing after at least 30 days' 
notice and publication once in the Federal Register on each application 
for a construction permit filed under this part.
    (2) When an application is made for an amendment to a construction 
permit or operating license, the Commission may hold a hearing after at 
least 30 days' notice and publication once in the Federal Register, or, 
in the absence of a request therefor by any person whose interest may 
be affected, may issue an amendment to a construction permit or 
operating license without a hearing, upon 30 days' notice and 
publication once in the Federal Register of its intent to do so.
    (3) If the Commission finds, in an emergency situation, as defined 
in Sec.  50.91 of this chapter, that no significant hazards 
consideration is presented by an application for an amendment to an 
operating license, it may dispense with public notice and comment and 
may issue the amendment. If the Commission finds that exigent 
circumstances exist, as described in Sec.  50.91, it may reduce the 
period provided for public notice and comment.
    (4) Both in an emergency situation and in the case of exigent 
circumstances, the Commission will provide 30 days' notice of 
opportunity for a hearing, though this notice may be published after 
issuance of the amendment if the Commission determines that no 
significant hazards consideration is involved.
    (5) The Commission will use the standards in subpart H of this part 
to determine whether a significant hazards consideration is presented 
by an amendment to an operating license and may make the amendment 
immediately effective, notwithstanding the pendency before it of a 
request for a hearing from any person, in advance of the holding and 
completion of any required hearing, where it has determined that no 
significant hazards consideration is involved.
    (6) No petition or other request for review of or hearing on the 
staff's significant hazards consideration determination will be 
entertained by the Commission. The staff's determination is final, 
subject only to the Commission's discretion, on its own initiative, to 
review the determination.
    (7) If an applicant requests generic finality under Sec.  57.60(c), 
then the Commission will include a request for generic finality as a 
proposed action in the joint notice of hearing and proposed action 
under Sec. Sec.  2.104 and 2.105 of this chapter.


Sec.  57.135  Duration of renewal.

    A renewed license will be issued for a fixed period of time, which 
is the sum of the additional amount of time beyond the expiration of 
the operating license that is requested in a renewal application plus 
the remaining number of years on the operating license currently in 
effect. The term of any renewed license may not exceed 40 years.


Sec.  57.142  Finality for construction permits and operating licenses.

    (a) Notwithstanding any provision in Sec.  57.16, during the term 
of a construction permit or operating license issued under this part, 
the Commission may not modify, rescind, or impose new requirements on 
the terms and conditions of the construction permit or operating 
license afforded generic finality pursuant to paragraph (e) of this 
section, unless the Commission determines that a modification is 
necessary to bring the construction permit or operating license into 
compliance with the Commission's requirements applicable and in effect 
at the time the construction permit or operating license was issued, or 
to provide reasonable assurance of adequate protection to public health 
and safety or common defense and security.
    (b) In the proceedings for issuance of a construction permit or 
operating license, or in any enforcement hearing other than one 
initiated by the Commission under paragraph (a) of this section, in 
which a construction permit or operating license issued under this 
subpart is referenced, the Commission must treat as resolved those 
matters resolved in the proceeding on the application for issuance or 
renewal of the referenced construction permit or operating license, 
including, if applicable, the adequacy of a reactor design and any 
generic aspects of operational programs or requirements, where the 
referenced construction permit or operating license was afforded 
finality pursuant to paragraph (e) of this section.
    (c) The holder of a construction permit or operating license 
afforded generic finality pursuant to paragraph (e) of this section may 
make changes to the facility or procedures as described in the FSAR 
associated with the construction permit or operating license without 
obtaining a license amendment pursuant to Sec.  57.310 if the change 
meets the criteria in Sec.  50.59(c) of this chapter. If the change 
does not meet the criteria in Sec.  50.59(c) of this chapter, then the 
request for a change must be in the form of an application for a 
license amendment under Sec.  57.310.
    (d) Except for information requests seeking to verify compliance 
with the current licensing basis of the construction permit or 
operating license, the NRC must prepare the reason or reasons for each 
information request to the holder of a construction permit or operating 
license under this part before issuance to ensure that the burden to be 
imposed on respondents is justified in view of the potential safety 
significance of the issue to be addressed in the requested information. 
Each such justification provided for an evaluation performed by the NRC 
staff must be approved by the Executive Director for Operations or 
designee before issuance of the request.
    (e) The Commission may afford generic finality to generic aspects 
of the design of a nuclear reactor or nuclear plant, including 
postulated site parameters, and generic aspects of operational programs 
and requirements submitted pursuant to Sec.  57.60(c), if it finds that 
the proposed generic design can be constructed and operated at sites 
having characteristics that fall within the site parameters postulated 
for the design, and in accordance with the generic aspects of 
operational programs and requirements, without undue risk to the health 
and safety of the public.

Subpart D--Manufacturing Licenses.


Sec.  57.145  Scope.

    This subpart sets out the requirements and procedures applicable to 
Commission issuance of a license under this part authorizing the 
manufacture of manufactured reactors. This subpart also sets out 
requirements for manufacturing, loading fuel into, and transportation 
of manufactured reactors.


Sec.  57.150  Contents of applications for manufacturing licenses; 
general information.

    Each application for a manufacturing license under this part must 
include the information required by Sec.  57.55(a) through (e) and (j).


Sec.  57.155  Contents of applications; technical information in final 
safety analysis report.

    The application must include a final safety analysis report 
containing the

[[Page 23738]]

information set forth below, with a level of design information 
sufficient to enable the Commission to judge the applicant's proposed 
means of assuring that the manufacturing conforms to the design of the 
reactor to be manufactured and to reach a final conclusion on all 
safety questions associated with the design, permit the preparation of 
construction and installation specifications by an applicant who seeks 
to use the manufactured reactor, and permit the preparation of 
acceptance and inspection requirements by the NRC. The application must 
include the following information:
    (a) Other than site-specific information, the information required 
by Sec.  57.60(a)(1) through (3), (6), (7), and (9) through (12) 
relevant to the manufactured reactor;
    (b) The site parameters postulated for the design of the reactor to 
be manufactured under this subpart, including the design basis external 
hazard levels for the relevant external hazards, and an analysis and 
evaluation of the design in terms of those site parameters; and
    (c) Information necessary to establish that the design of the 
reactor to be manufactured under this subpart complies with the 
technical requirements in 10 CFR chapter I, including:
    (1) A description and analysis of the fire protection design 
features for the manufactured reactor necessary to comply with Sec.  
57.60(a)(8)(ix)(B);
    (2) Information demonstrating how the applicant will comply with 
requirements for criticality accidents in Sec.  50.68(b)(2) through (4) 
of this chapter;
    (3) The information required by Sec.  20.1406 of this chapter;
    (4) The technical qualifications of the applicant to engage in the 
proposed activities in accordance with the regulations in this chapter;
    (5) Proposed technical specifications applicable to the 
manufactured reactor, prepared in accordance with the requirements of 
Sec.  57.60(a)(8)(vi);
    (6) The interface requirements between the manufactured reactor and 
the remaining portions of the nuclear plant or connections to other 
facilities outside of the nuclear plant. These requirements must be 
sufficiently detailed to allow for applicants for construction permits 
and operating licenses under this part that reference the manufactured 
reactor to complete the final safety analysis;
    (7) A representative conceptual design for a nuclear plant using 
the manufactured reactor, to aid the NRC in its review of the final 
safety analysis report required by this section and to permit 
assessment of the adequacy of the interface requirements;
    (8) As an alternative to the information required by paragraphs 
(c)(6) and (7) of this section, the application may include all non-
site-specific information on the remaining portions of the nuclear 
plant that would be included in a joint application for a construction 
permit and associated operating license(s) under subpart C of this 
part;
    (9) Justification that compliance with the interface requirements 
of paragraph (c)(6) of this section or the information provided under 
paragraph (c)(8) is verifiable through inspections, testing, or 
analysis; and
    (10) Unless the application includes essentially complete plans for 
preoperational testing and initial operation under Sec.  57.160(a), 
necessary parameters to be used in developing such plans.


Sec.  57.160  Contents of applications; additional information.

    (a) An applicant may include in its application descriptions of 
generic operational programs and requirements of the types described in 
Sec.  57.60(a)(8). The NRC may afford finality to such programs in 
accordance with Sec. Sec.  57.16 and 57.175.
    (b) The application must include information justifying application 
of a categorical exclusion or, if a categorical exclusion is not 
applicable, an environmental report or applicant-prepared environmental 
assessment, in accordance with part 51 of this chapter.
    (c) The application must contain a description of the program to 
protect safeguards information against unauthorized disclosure in 
accordance with the requirements in Sec. Sec.  73.21 and 73.22 of this 
chapter, as applicable.
    (d) The application must include the following information related 
to the manufacturing processes, organization, controls, and 
inspections:
    (1) A description, including references to relevant codes and 
standards, of the processes that will be used to procure, fabricate, 
and assemble components that make up the manufactured reactor. The 
description must clearly define which activities are proposed to be 
within the scope of the manufacturing license and those, such as the 
making of a component to be procured from a separate company for 
installation in the manufactured reactor, that are not considered to be 
within the scope of the manufacturing license;
    (2) A description of the organizational and management structure 
singularly responsible for direction of the design and manufacture of 
the manufactured reactor. The information should include a description 
of the management plans, technical qualifications, and controls in 
place to demonstrate compliance with the requirements of Sec.  57.197.
    (3) A description of the inspections and tests to be performed as 
part of the manufacturing process, including the inspection of procured 
components, inspection and testing of fabrication processes, and 
inspections and testing of the assembled manufactured reactor;
    (4) A description of the fitness-for-duty program required by part 
26 of this chapter and its implementation.
    (e) The application must include a description of the following 
information related to the deployment of a manufactured reactor:
    (1) Procedures governing the preparation of the manufactured 
reactor or portions of the manufactured reactor for shipping to the 
site where it is to be operated; the conduct of shipping; and verifying 
the condition of the shipped items upon receipt at the site;
    (2) Details of the interaction of the design, manufacture, and 
installation of a manufactured reactor within the applicant's 
organization and how the applicant will ensure integration between the 
designer, contractors, and any facility in which the manufactured 
reactor is to be installed; and
    (3) Measures to be used for the control of interfaces, including 
the consideration of significant site parameters, between the holder of 
the manufacturing license and the holder of the construction permit for 
the nuclear plant at which the manufactured reactor is to be installed.
    (f) An application for a manufacturing license for a manufactured 
reactor that will be fueled at the manufacturing facility under a 10 
CFR part 70 license must include the following information related to 
loading fuel and the required features to prevent criticality and to 
otherwise provide reasonable assurance that the fueled manufactured 
reactor can be transported to and installed at a site for which the 
Commission has issued a construction permit that authorizes 
construction of a nuclear plant using the manufactured reactor and 
operated in accordance with an operating license issued under this 
part:
    (1) A description of the procedures used during the fueling of the 
manufactured reactor that ensure that the configuration of fuel within 
the fueled manufactured reactor is consistent with the design and 
analyses supporting operation of the manufactured reactor under the 
operating license at the place of operation. The description may 
reference the applicable 10 CFR part 70

[[Page 23739]]

application and other sections of the final safety analysis report 
supporting the manufacturing license application.
    (i) The application must describe the measures taken for 
inspections and non-nuclear testing performed to ensure that the 
configuration of fuel within the fueled manufactured reactor is 
consistent with the design and analyses supporting operation of the 
manufactured reactor under the operating license at the place of 
operation.
    (ii) The application must describe the design features included in 
the manufactured reactor to prevent criticality, the associated 
functional design criteria applied to those design features, and the 
physical and programmatic controls implemented during manufacturing, 
storage, and transport that are credited to ensure the features 
function as designed when subject to potential hazards and human 
errors. The descriptions must include how those measures will be 
controlled during installation under the manufacturing license and 
removal under the operating license at the place of operation.
    (2) A description of the procedures governing the transfer of 
responsibilities for the fueled manufactured reactor from the holder of 
the manufacturing license to the holder of the construction permit for 
the installation site.
    (3) If available at the time of filing the manufacturing license 
application or, if not available at the time of filing the 
manufacturing license application, submitted as an amendment to the 
manufacturing license or manufacturing license application at the time 
of filing the 10 CFR part 70 application, a description of the programs 
needed to demonstrate compliance with the requirements of Sec.  
57.197(d) and 10 CFR parts 70, 71, and 73 for the receipt, storage, and 
loading of SNM into a manufactured reactor and the transport of the 
fueled manufactured reactor to a site for which the Commission has 
issued a construction permit that authorizes construction of a nuclear 
plant using the manufactured reactor, including the following:
    (i) A physical security program in accordance with Sec.  
57.197(d)(3)(i).
    (ii) A cybersecurity program in accordance with Sec.  
57.197(d)(3)(i).


Sec.  57.165  Standards for review of applications.

    Applications for manufacturing licenses under this part will be 
reviewed according to the applicable standards set out in this subpart 
as well as applicable standards in 10 CFR parts 20, 25, 26, 50, 51, 57, 
70, 71, 73, and 75.


Sec.  57.170  Administrative review of applications; hearings.

    A proceeding on a manufacturing license under this part is subject 
to all applicable procedural requirements contained in 10 CFR part 2, 
including the requirements for docketing in Sec.  2.101(a)(1) through 
(4) of this chapter, and the requirements for issuance of a notice of 
proposed action in Sec.  2.105 of this chapter, provided, however, that 
the designated sections may not be construed to require that the 
environmental report or applicable environmental review by the NRC 
include an assessment of the benefits of constructing and/or operating 
the manufactured reactor or an evaluation of alternative energy 
sources. All hearings on manufacturing licenses are governed by the 
hearing procedures contained in 10 CFR part 2, subparts C, E, G, L, and 
N.


Sec.  57.172  Issuance of manufacturing license.

    (a) After completing any hearing under Sec.  57.170, and receiving 
the report submitted by the ACRS under Sec.  57.17, the Commission may 
issue a manufacturing license if the Commission finds that:
    (1) Applicable standards and requirements of the AEA and the 
Commission's regulations have been met;
    (2) There is reasonable assurance that the manufactured reactor 
will be manufactured, and can be transported, incorporated into a 
nuclear plant, and operated in conformity with the manufacturing 
license, the provision of the AEA, and the Commission's regulations;
    (3) The proposed manufactured reactor can be incorporated into a 
nuclear plant, including, as applicable, the nuclear plant described in 
the manufacturing license application, and operated at sites having 
characteristics that fall within the site parameters postulated for the 
design of the manufactured reactors in conformity with the requirements 
in subpart B of this part and without undue risk to the health and 
safety of the public;
    (4) The applicant is technically qualified to design and 
manufacture the proposed manufactured reactor;
    (5) The proposed parameters to be used in developing plans for 
preoperational testing and initial operation, or the essentially 
complete plans provided in the application, are necessary and 
sufficient, within the scope of the manufacturing license, to provide 
reasonable assurance that the manufactured reactor will be manufactured 
and operated in conformity with the license, the provisions of the AEA, 
and the Commission's regulations;
    (6) The generic operational programs and requirements proposed for 
the manufactured reactor provide reasonable assurance that the 
manufactured reactor can be operated under an operating license that 
references the manufacturing license in conformity with the provisions 
of the AEA and the Commission's regulations.
    (7) The issuance of a manufacturing license to the applicant will 
not be inimical to the common defense and security or to the health and 
safety of the public; and
    (8) The findings required by 10 CFR part 51 have been made.
    (b) Each manufacturing license issued under this subpart must 
specify:
    (1) Terms and conditions as the Commission deems necessary and 
appropriate;
    (2) Technical specifications for operation of the manufactured 
reactor, as the Commission deems necessary and appropriate;
    (3) Significant site parameters and significant design 
characteristics for the manufactured reactor; and
    (4) The interface requirements to be met by the site-specific 
elements of the facility not within the scope of the manufactured 
reactor, or that the portions of the nuclear plant other than the 
manufactured reactor must be as described in the application.


Sec.  57.175  Finality of manufacturing licenses; information requests.

    (a) Notwithstanding any provision in Sec.  57.16, during the term 
of a manufacturing license issued under this part the Commission may 
not modify, rescind, or impose new requirements on the design of the 
nuclear reactor being manufactured under the manufacturing license, or 
the requirements for the manufacture of the nuclear reactor, unless the 
Commission determines that a modification is necessary to bring the 
design of the reactor or its manufacture into compliance with the 
Commission's requirements applicable and in effect at the time the 
manufacturing license was issued, or to provide reasonable assurance of 
adequate protection to public health and safety or common defense and 
security.
    (b) Any modification to the design of a manufactured reactor that 
is imposed by the Commission under paragraph (a) of this section will 
be applied to all reactors manufactured under the license, including 
those that have already been transported and sited, except those 
reactors to which the modification has been rendered

[[Page 23740]]

technically irrelevant by action taken under paragraph (d) of this 
section.
    (c) In the proceedings for issuance of a construction permit or 
operating license, or in any enforcement hearing other than one 
initiated by the Commission under paragraph (a) of this section, in 
which a manufacturing license under this part is referenced, the 
Commission must treat as resolved those matters resolved in the 
proceeding on the application for issuance or renewal of the 
manufacturing license, including the adequacy of design of the 
manufactured reactor, the adequacy of the design of the remaining 
portions of a nuclear plant described in the manufacturing license 
application, and any essentially complete operational programs or 
requirements.
    (d) The holder of a manufacturing license under this part may make 
changes to the facility or procedures as described in the FSAR 
associated with the manufacturing license without obtaining a license 
amendment pursuant to Sec.  57.310 if the change meets the criteria in 
Sec.  50.59(c) of this chapter. If the change does not meet the 
criteria in Sec.  50.59(c) of this chapter, then the request for a 
change must be in the form of an application for a license amendment 
under Sec.  57.310.
    (e) Except for information requests seeking to verify compliance 
with the current licensing basis of either the manufacturing license or 
the manufactured reactor, the NRC must prepare the reason or reasons 
for each information request to the holder of a manufacturing license 
under this part or an applicant or licensee using a manufactured 
reactor before issuance to ensure that the burden to be imposed on 
respondents is justified in view of the potential safety significance 
of the issue to be addressed in the requested information. Each such 
justification provided for an evaluation performed by the NRC staff 
must be approved by the Executive Director for Operations or designee 
before issuance of the request.


Sec.  57.180  Duration of manufacturing license.

    A manufacturing license issued under this subpart may be valid for 
up to 40 years from the date of issuance. Upon expiration of the 
manufacturing license, the manufacture of any uncompleted reactors must 
cease unless a timely application for renewal has been docketed with 
the NRC.


Sec.  57.185  Transfer of manufacturing license.

    A manufacturing license may be transferred in accordance with Sec.  
57.110.


Sec.  57.190  Renewal of manufacturing licenses.

    (a) Not less than 12 months, nor more than 5 years before the 
expiration of the manufacturing license, or any later renewal period, 
the holder of the manufacturing license issued under this part may 
apply for a renewal of the license. An application for renewal must 
contain all information necessary to bring up to date the information 
and data contained in the previous application. The filing of an 
application for a renewed license must be in accordance with subpart A 
of 10 CFR part 2 of this chapter and Sec.  57.19.
    (b) A manufacturing license issued under this part, either original 
or renewed, for which a timely application for renewal has been filed, 
remains in effect until the Commission has made a final determination 
on the renewal application.
    (c) Any person whose interest may be affected by renewal of the 
license may request a hearing on the application for renewal. The 
request for a hearing must comply with Sec.  2.309 of this chapter. If 
a hearing is granted, notice of the hearing will be published in 
accordance with Sec.  2.104 of this chapter.
    (d) The Commission may grant the renewal if the Commission 
determines--
    (1) The manufacturing license complies with the AEA and the 
Commission's regulations and orders applicable and in effect at the 
time the manufacturing license was originally issued; and
    (2) Any new requirements the Commission may wish to impose are--
    (i) Necessary for adequate protection to public health and safety 
or common defense and security;
    (ii) Necessary for compliance with the Commission's regulations and 
orders applicable and in effect at the time the manufacturing license 
was originally issued; or
    (iii) A substantial increase in overall protection of the public 
health and safety or the common defense and security to be derived from 
the new requirements, and the direct and indirect costs of 
implementation of those requirements are justified in view of this 
increased protection.
    (e) A renewed manufacturing license may be issued for a term up to 
40 years, plus any remaining years on the manufacturing license then in 
effect before renewal. The renewed license will be subject to the 
requirements of Sec.  57.175.


Sec.  57.197  Manufacturing.

    (a) Holders of manufacturing licenses must ensure that the 
following plans, programs, and organizational units are developed and 
implemented to manage and control the manufacturing activities within 
the scope of the manufacturing license:
    (1) Programs to ensure that the manufacturing of a reactor complies 
with the design and analysis requirements in this part. The entity with 
design authority for the manufactured reactor covered by the 
manufacturing license must be identified in the license.
    (2) An organizational and management structure responsible for 
managing, controlling, and evaluating the adequacy of the reactor 
design and manufacturing activities.
    (3) Procedures describing the qualifications for personnel in key 
positions in the licensee's management and control organization and the 
organizational responsibilities, authority, and interfaces with other 
parts of the licensee's organization.
    (4) A fitness-for-duty program, in accordance with part 26 of this 
chapter.
    (5) A quality assurance program to be applied to the design, 
fabrication, construction, and testing of the safety-related SSCs of 
the manufactured reactor.
    (6) A radiation protection program, in accordance with 10 CFR part 
20, that includes measures for monitoring the dose to individuals if 
the manufacturing activities include working with radioactive 
materials.
    (7) An information security program in accordance with Sec. Sec.  
73.21, 73.22 and 73.23 of this chapter, as applicable.
    (b) Holders of manufacturing licenses must satisfy the following 
requirements:
    (1) The manufacturing process must be conducted within facilities 
for which the manufacturing license holder has the authority to 
establish controls on any activity that might affect manufacturing. The 
licensee must establish access controls to the portions of each 
facility involved in the manufacturing processes governed by the 
manufacturing license.
    (2) Manufacturing processes must be performed in accordance with 
the manufacturing license, including the codes or standards described 
in the manufacturing license application under Sec.  57.160(d) and 
found acceptable by the NRC.
    (3) A post-manufacturing inspection and acceptance process to 
verify that manufacturing activities have been completed in accordance 
with the manufacturing license must be established and implemented 
before transporting a manufactured reactor or portions of a 
manufactured reactor for installation at a nuclear plant.

[[Page 23741]]

    (c) As appropriate considering the types and quantities of 
radioactive materials being brought into the manufacturing facility--
    (1) Procedures must be in place to receive, transfer, possess, and 
use source, byproduct, and special nuclear material in accordance with 
the applicable portions of 10 CFR parts 30, 40 and 70.
    (2) A fire protection program must be established and implemented 
before the initial receipt of byproduct, source, or non-fuel special 
nuclear material (excluding exempt quantities as described in Sec.  
30.18 of this chapter).
    (3) An emergency plan appropriate for responding to the facility-
specific hazards of an accidental release of radioactive material and 
to limit the health effects of the associated chemical hazards of 
licensed material must be approved and implemented prior to the receipt 
of byproduct, source, or special nuclear material (excluding exempt 
quantities as described in Sec.  30.18 of this chapter).
    (4) A plant staff training program associated with the receipt of 
radioactive material must be approved and implemented before initial 
receipt of byproduct, source, or special nuclear material (excluding 
exempt quantities as described in Sec.  30.18 of this chapter).
    (5) Security requirements must be implemented for the protection of 
SNM based on the type, enrichment, and quantity in accordance with 10 
CFR part 73, as applicable, and for the protection of Category 1 and 
Category 2 quantities of radioactive material in accordance with 10 CFR 
part 37, as applicable.
    (d) Fuel loading.
    (1) The Commission has determined that a fueled manufactured 
reactor in which features to prevent criticality are in place is not in 
operation.
    (i) A holder of a manufacturing license may load fuel into a 
manufactured reactor pursuant to a license issued under part 70 of this 
chapter only if the manufactured reactor is configured before its fuel 
loading and during storage and transport with features to prevent 
criticality that are specified in the manufacturing license.
    (ii) Upon issuance of an operating license for a nuclear plant that 
incorporates the manufactured reactor, the features to prevent 
criticality may be removed. Upon initiating the removal of the features 
to prevent criticality, the fueled manufactured reactor has commenced 
operation.
    (2) Holders of 10 CFR part 70 licenses authorizing the possession 
and loading of fuel into reactors manufactured under a manufacturing 
license issued under this part must comply with the requirements of 10 
CFR part 70 for the facilities and activities related to the storage, 
movement, and loading of fuel in the manufactured reactors. Procedures, 
equipment, and personnel required by the 10 CFR part 70 license must be 
in place before the receipt of SNM at the manufacturing facility.
    (3) Before the receipt of SNM, the licensee must have security 
programs in place that meet the performance objectives of 10 CFR 73.67, 
with the following additions and exceptions:
    (i) A physical security plan describing the physical security 
program must be maintained and a cybersecurity program must be 
established for the possession and loading of fresh fuel into a 
manufactured reactor authorized by a 10 CFR part 70 license, regardless 
of fuel type, enrichment, and quantity.
    (ii) The physical security program must be designed to prevent 
unintended and uncontrolled criticality events.
    (iii) The cybersecurity program must provide reasonable assurance 
that a cyberattack would not adversely impact the functions performed 
by digital assets necessary for implementing the physical security 
requirements of this section, or the radiation monitoring and 
criticality requirements in this section or in 10 CFR part 70.
    (iv) All holders of a 10 CFR part 70 license that authorizes 
loading of fresh fuel into a manufactured reactor must perform the 
screening required in Sec.  73.67(d)(4) of this chapter to confirm the 
identity, trustworthiness, and reliability of individuals prior to 
granting unescorted access to special nuclear material, and these 
determinations must be documented.
    (4) The loading or unloading of fresh fuel into or from a 
manufactured reactor and any changes to the configuration of reactivity 
control and prevention systems for the fueled manufactured reactor must 
be performed by a certified fuel handler.
    (e) Transportation.
    (1) A holder of a manufacturing license under this part may not 
transport or allow to be removed from the places of manufacture the 
reactor manufactured under the manufacturing license except for either 
transport to a site for which the Commission has issued a construction 
permit that references the subject manufacturing license or for export 
in accordance with 10 CFR part 110.
    (2) A holder of a manufacturing license must include in any 
contract governing the transport of a manufactured reactor or portions 
thereof as defined in the manufacturing license from the places of 
manufacture to any other location, a provision requiring that the 
person transporting the manufactured reactor comply with all shipping 
requirements in applicable NRC regulations, certificates of compliance, 
and NRC-issued licenses.
    (3) Procedures governing the preparation of the manufactured 
reactor or portions thereof as defined in the manufacturing license for 
transport and the conduct of the transport must be issued prior to 
transport. The procedures must implement the protective measures and 
restrictions described in NRC regulations and NRC-issued licenses to 
protect the reactor from potential conditions that would adversely 
affect the safe operation of a nuclear plant.
    (4) For a manufactured reactor that is to be loaded with fresh fuel 
before transport to the place of operation, the manufacturing license 
must specify that transportation will be in accordance with parts 71 
and 73 of this chapter.
    (f) Acceptance and installation at the site for which the 
Commission has issued a construction permit that references the subject 
manufacturing license.
    (1) Installation must be in accordance with the construction permit 
that references the subject manufacturing license.
    (2) Upon arrival at the site, the manufactured reactor may not be 
installed in its place of operation unless the construction permit 
holder performs inspections sufficient to verify the reactor is in 
compliance with the manufacturing license and has not been damaged in 
transit. The construction permit holder must perform these inspections 
in accordance with documented procedures subject to quality assurance 
measures commensurate with their importance to safety. In addition, 
inspections must confirm that the interface requirements between the 
manufactured reactor or portions of a manufactured reactor and the 
remaining portions of the nuclear plant are met.

Subpart E--Standard Design Approvals


Sec.  57.200  Scope.

    This subpart sets out procedures for the filing and NRC staff 
review of standard designs, or major portions thereof, for a nuclear 
reactor of the type to which this part is applicable.


Sec.  57.205  Contents of applications; general information.

    The application must contain all of the information required by 10 
CFR 57.55(a) through (c) and (j).

[[Page 23742]]

Sec.  57.210  Contents of applications; technical information.

    (a) If the applicant seeks review of a major portion of a standard 
design, the application need only contain the information required by 
this section to the extent the requirements are applicable to the major 
portion of the standard design for which NRC staff approval is sought. 
If an applicant seeks approval of a major portion of the design, the 
application must demonstrate compliance with the design criteria 
attributes in Sec.  57.30, as applicable, for the major portion of the 
standard design for which NRC staff approval is sought. Such applicants 
must identify conditions related to interfaces with systems outside the 
scope of the major portion of the standard design for which NRC staff 
approval is sought, and functional or physical boundary conditions 
between the major portion of the standard design for which NRC staff 
approval is sought and the remainder of the standard design. These 
conditions must be demonstrated when the standard design approval is 
incorporated into a subsequent joint application for a construction 
permit and associated operating license(s) or a manufacturing license 
application under this part.
    (b) The application must contain a final safety analysis report 
that describes the facility, presents the design bases and the limits 
on its operation, and presents a safety analysis of the safety-related 
SSCs and of the facility, or major portion thereof, and must include 
the following information:
    (1) Other than site-specific information, the information required 
by Sec.  57.60(a)(1) through (3), (a)(6) and (7), and (a)(9) through 
(13) relevant to the standard design;
    (2) A description and analysis of the fire protection design 
features for the standard plant necessary to limit fire damage to 
safety-related SSCs as required by Sec.  57.60(a)(8)(ix)(B);
    (3) The information necessary to demonstrate that the standard 
plant complies with the environmental information relating to 
applicable site evaluation factors for seismic, meteorological, 
hydrologic, and geologic characteristics with appropriate consideration 
of natural phenomena;
    (4) A description, analysis, and evaluation of the interfaces 
between the standard design and the balance of the nuclear plant; and
    (5) The information required by Sec.  20.1406 of this chapter.


Sec.  57.213  Standards for review of applications.

    Applications filed under this part will be reviewed under the 
standards set out in 10 CFR parts 20, 57, and 73.


Sec.  57.215  Staff approval of design.

    Upon completion of its review of a submittal under this subpart and 
receiving any report submitted by the ACRS under Sec.  57.17, the NRC 
staff must publish a determination in the Federal Register as to 
whether the design is acceptable, subject to appropriate terms and 
conditions, and make an analysis of the design in the form of a report 
available at the NRC website, https://www.nrc.gov.


Sec.  57.220  Finality of standard design approvals; information 
requests.

    (a) An approved design must be used by and relied upon by the NRC 
staff and the ACRS in their review of any joint application for a 
construction permit and associated operating license(s) or a 
manufacturing license application under this part that incorporates by 
reference a standard design approved in accordance with this paragraph 
unless there exists significant new information that substantially 
affects the earlier determination or other good cause.
    (b) The determination and report by the NRC staff do not constitute 
a commitment to issue a construction permit, operating license, or 
manufacturing license in any way affect the authority of the 
Commission, Atomic Safety and Licensing Board Panel, or presiding 
officers in any proceeding under part 2 of this chapter.
    (c) Except for information requests seeking to verify compliance 
with the current licensing basis of the standard design approval, the 
NRC must prepare the reason or reasons for each information request to 
the holder of a standard design approval under this part before 
issuance to ensure that the burden to be imposed on respondents is 
justified in view of the potential safety significance of the issue to 
be addressed in the requested information. Each such justification 
provided for an evaluation performed by the NRC staff must be approved 
by the Executive Director for Operations or designee before issuance of 
the request.
    (d) The Commission will require, before granting a construction 
permit, operating license, or manufacturing license that references a 
standard design approval, that engineering documents, such as analyses, 
drawings, procurement specifications, or construction and installation 
specifications, be completed and available for audit if the more 
detailed information is necessary for the Commission to verify the 
information in the application and make its safety determination, 
including the determination that the application is consistent with the 
design approval information. This information may be acquired by 
appropriate arrangements with the design approval applicant.


Sec.  57.225  Duration of design approval.

    A standard design approval issued under this subpart has no 
expiration date.

Subpart F--Reporting of Defects and Noncompliance


Sec.  57.230  Purpose.

    The regulations in this subpart establish procedures and 
requirements for implementation of section 206 of the Energy 
Reorganization Act of 1974. That section requires any individual 
director or responsible officer of a firm constructing, owning, 
operating, or supplying the components of any facility or activity that 
is licensed or otherwise regulated pursuant to the AEA or the Energy 
Reorganization Act of 1974, who obtains information reasonably 
indicating:
    (a) that the facility, activity or basic component supplied to such 
facility or activity fails to comply with the AEA or any applicable 
rule, regulation, order, or license of the Commission relating to 
substantial safety hazards; or
    (b) that the facility, activity, or basic component supplied to 
such facility or activity contains defects, which could create a 
substantial safety hazard, to immediately notify the Commission of such 
failure to comply or such defect, unless the individual has actual 
knowledge that the Commission has been adequately informed of such 
defect or failure to comply.


Sec.  57.235  Scope.

    (a) The regulations in this subpart apply to:
    (1) Each individual, partnership, corporation, or other entity 
applying for or holding a license or construction permit under this 
part to construct, manufacture, possess, own, operate, or transfer 
within the United States, a utilization facility; and each director and 
responsible officer of such a licensee;
    (2) Each individual, corporation, partnership, or other entity 
doing business within the United States, and each director and 
responsible officer of such an organization, that constructs a 
utilization facility licensed for manufacture, construction, or 
operation under this part; or supplies basic

[[Page 23743]]

components for a facility or activity licensed under this part; and
    (3) Each individual, corporation, partnership, or other entity 
doing business within the United States, and each director and 
responsible officer of such an organization, applying for or holding a 
standard design approval under this part; or supplying basic components 
with respect to a standard design approval under this part.
    (b) For persons licensed to construct a facility under subpart C of 
this part, or to manufacture a facility under subpart D of this part, 
evaluation of potential defects and failures to comply and reporting of 
defects and failures to comply satisfies each person's evaluation, 
notification, and reporting obligation to report defects and failures 
to comply under this part and the responsibility of individual 
directors and responsible officers of these licensees to report defects 
under Section 206 of the Energy Reorganization Act of 1974.
    (c) For persons licensed to operate a nuclear plant under subpart C 
of this part, evaluation of potential defects and appropriate reporting 
of defects under this subpart satisfies each person's evaluation, 
notification, and reporting obligation to report defects under this 
part, and the responsibility of individual directors and responsible 
officers of these licensees to report defects under Section 206 of the 
Energy Reorganization Act of 1974.
    (d) Nothing in these regulations should be deemed to preclude 
either an individual, a manufacturer, or a supplier of a commercial 
grade item (as defined in Sec.  57.240) not subject to the regulations 
in this part from reporting to the Commission, a known or suspected 
defect or failure to comply and, as authorized by law, the identity of 
anyone so reporting will be withheld from disclosure. NRC regional 
offices and headquarters will accept collect telephone calls from 
individuals who wish to speak to NRC representatives concerning nuclear 
safety-related problems. The location and telephone numbers of the four 
regions (answered during regular working hours) are listed in appendix 
D to part 20 of this chapter. The telephone numbers of the NRC 
Headquarters Operations Center (answered 24 hours a day--including 
holidays) are listed in appendix A to part 73 of this chapter.


Sec.  57.240  Definitions.

    For purposes of this subpart, the definitions in Sec.  57.3 of this 
part apply, except the term ``construction.'' The following definitions 
also apply for the purposes of this subpart.
    Basic component means--
    (1) a structure, system, or component, or part thereof necessary to 
ensure:
    (i) The capability to adequately control thermodynamic conditions 
and reactivity, and to retain radioactive material;
    (ii) The capability to shut down the reactor and maintain it in a 
safe shutdown condition; or
    (iii) The capability to prevent or mitigate the consequences of 
accidents that could result in potential offsite exposures comparable 
to those referred to in Sec.  57.25(a).
    (2) Basic components are items designed and manufactured under a 
quality assurance program complying with Sec.  57.60(a)(3) of this 
part, or commercial grade items which have successfully completed the 
dedication process.
    (3) In all cases, basic components include safety related design, 
analysis, inspection, testing, fabrication, replacement parts, or 
consulting services that are associated with the component hardware, 
whether these services are performed by the component supplier or other 
supplier.
    Commercial grade item means an item that is:
    (1) Not subject to design or specification requirements that are 
unique to facilities or activities licensed pursuant to this part;
    (2) Used in applications other than facilities or activities 
licensed pursuant to this part; and
    (3) To be ordered from the manufacturer/supplier on the basis of 
specifications set forth in the manufacturer's published product 
description (for example, a catalog).
    Constructing or construction, as used in this subpart, means the 
analysis, design, manufacture, fabrication, placement, erection, 
installation, modification, inspection, or testing of a facility or 
activity that is subject to the regulations in this part and safety-
related consulting services related to the facility or activity.
    Critical characteristics means those important design, material, 
and performance characteristics of a commercial grade item that, once 
verified, will provide reasonable assurance that the item will perform 
its intended safety function.
    Dedicating entity means the organization that performs the 
dedication process.
    Dedication means an acceptance process undertaken to provide 
reasonable assurance that a commercial grade item to be used as a basic 
component will perform its intended safety function and, in this 
respect, is deemed equivalent to an item designed and manufactured 
under a Sec.  57.60(a)(3) quality assurance program. This assurance is 
achieved by identifying the critical characteristics of the item and 
verifying their acceptability by inspections, tests, or analyses 
performed by the purchaser or third-party dedicating entity after 
delivery, supplemented as necessary by one or more of the following: 
commercial grade surveys; product inspections or witness at hold points 
at the manufacturer's facility, and analysis of historical records for 
acceptable performance. In all cases, the dedication process must be 
conducted in accordance with the applicant's applicable provisions for 
their Sec.  57.60(a)(3) quality assurance program. The process is 
considered complete when the item is designated for use as a basic 
component.
    Defect means:
    (1) A deviation in a basic component delivered to a purchaser for 
use in a facility or an activity subject to the regulations in this 
part if, on the basis of an evaluation, the deviation could create a 
substantial safety hazard;
    (2) The installation, use, or operation of a basic component 
containing a defect as defined in this part;
    (3) A deviation in a portion of a facility subject to the 
construction permit or manufacturing licensing requirements of this 
part, provided the deviation could, on the basis of an evaluation, 
create a substantial safety hazard and the portion of the facility 
containing the deviation has been offered to the purchaser for 
acceptance;
    (4) A condition or circumstance involving a basic component that 
could contribute to the exceeding of a safety limit, as defined in the 
technical specifications of a license for operation issued under this 
part; or
    (5) An error, omission or other circumstance in a standard design 
approval that, on the basis of an evaluation, could create a 
substantial safety hazard.
    Deviation means departure from the technical requirements included 
in a procurement document or specified in standard design approval.
    Discovery means the completion of the documentation first 
identifying the existence of a deviation or failure to comply 
potentially associated with a substantial safety hazard within the 
evaluation procedures discussed in Sec.  57.270.
    Evaluation means the process of determining whether a particular 
deviation could create a substantial hazard or determining whether a 
failure to comply is associated with a substantial safety hazard.

[[Page 23744]]

    Procurement document means a contract that defines the requirements 
which facilities or basic components must meet in order to be 
considered acceptable by the purchaser.
    Responsible officer means the president, vice-president, or other 
individual in the organization of a corporation, partnership, or other 
entity who is vested with executive authority over activities subject 
to this part.
    Substantial safety hazard means a loss of safety function to the 
extent that there is a major reduction in the degree of protection 
provided to public health and safety for any facility or activity 
authorized under this part.


Sec.  57.255  Posting requirements.

    (a) Posting of documents.
    (1) Each individual, partnership, corporation, dedicating entity, 
or other entity subject to the regulations in this part must post 
current copies of --
    (i) The regulations in this part;
    (ii) Section 206 of the Energy Reorganization Act of 1974; and
    (iii) Procedures adopted pursuant to the regulations in this part.
    (2) These documents must be posted in a conspicuous position on any 
premises within the United States where the activities subject to this 
part are conducted.
    (b) If posting of the regulations in this part or the procedures 
adopted pursuant to the regulations in this part is not practicable, 
the licensee or firm subject to the regulations in this part may, in 
addition to posting Section 206 of the Energy Reorganization Act of 
1974, post a notice that describes the regulations or procedures, 
including the name of the individual to whom reports may be made, and 
states where they may be examined.


Sec.  57.260  Exemptions.

    Suppliers of commercial grade items are exempt from the provisions 
of this part to the extent that they supply commercial grade items.


Sec.  57.270  Notification of failure to comply or existence of a 
defect and its evaluation.

    (a) Each individual, corporation, partnership, dedicating entity, 
or other entity subject to the regulations in this part must adopt 
appropriate procedures to--
    (1) Evaluate deviations and failures to comply to identify defects 
and failures to comply associated with substantial safety hazards as 
soon as practicable, and, except as provided in paragraph (a)(2) of 
this subsection, in all cases within 60 days of discovery, in order to 
identify a reportable defect or failure to comply that could create a 
substantial safety hazard, were it to remain uncorrected.
    (2) Ensure that if an evaluation of an identified deviation or 
failure to comply potentially associated with a substantial safety 
hazard cannot be completed within 60 days from discovery of the 
deviation or failure to comply, an interim report is prepared and 
submitted to the Commission through a director or responsible officer 
or designated person as discussed in Sec.  57.270(d)(5). The interim 
report should describe the deviation or failure to comply that is being 
evaluated and should also state when the evaluation will be completed. 
This interim report must be submitted in writing within 60 days of 
discovery of the deviation or failure to comply.
    (3) Ensure that a director or responsible officer subject to the 
regulations of this part is informed as soon as practicable, and, in 
all cases, within the 5 working days after completion of the evaluation 
described in paragraphs (a)(1) or (a)(2) of this section if the 
manufacture, construction, or operation of a facility or activity, a 
basic component supplied for such facility or activity, or standard 
design approval of this part--
    (i) Fails to comply with the AEA or any applicable rule, 
regulation, order, or license of the Commission, relating to a 
substantial safety hazard, or
    (ii) Contains a defect.
    (iii) For construction permit and manufacturing license holders, 
undergoes any significant breakdown in any portion of the quality 
assurance program conducted under the requirements of Sec.  
57.60(a)(3), which could have produced a defect in a basic component. 
These breakdowns in the quality assurance program are reportable 
whether the breakdown actually resulted in a defect in a design 
approved and released for construction, installation, or manufacture.
    (b) If the deviation or failure to comply is discovered by a 
supplier of basic components, or services associated with basic 
components, and the supplier determines that it does not have the 
capability to perform the evaluation to determine if a defect exists, 
then the supplier must inform the purchasers or affected licensees 
within five working days of this determination so that the purchasers 
or affected licensees may evaluate the deviation or failure to comply, 
pursuant to Sec.  57.270(a).
    (c) A dedicating entity is responsible for--
    (1) Identifying and evaluating deviations and reporting defects and 
failures to comply associated with substantial safety hazards for 
dedicated items; and
    (2) Maintaining auditable records for the dedication process.
    (d) Notifications to the NRC.
    (1) A director or responsible officer subject to the regulations of 
this part or a person designated under Sec.  57.270(d)(5) must notify 
the Commission when he or she obtains information reasonably indicating 
a failure to comply or a defect affecting--
    (i) The manufacture, construction, or operation of a facility or an 
activity within the United States that is subject to the licensing 
requirements under this part and that is within his or her 
organization's responsibility; or
    (ii) A basic component that is within his or her organization's 
responsibility and is supplied for a facility or an activity within the 
United States that is subject to the licensing or approval requirements 
under this part;
    (iii) For construction permit and manufacturing license holders, a 
quality assurance program that undergoes any significant breakdown that 
could have produced a defect in a basic component.
    (2) The notification to the NRC of a failure to comply or of a 
defect under paragraph (d)(1) of this section and the evaluation of a 
failure to comply or a defect under paragraphs (a)(1) and (a)(2) of 
this section, are not required if the director or responsible officer 
has actual knowledge that the Commission has been notified in writing 
of the defect or the failure to comply.
    (3) Notification required by paragraph (d)(1) of this section must 
be made as follows--
    (i) Initial notification to the NRC Headquarters Operations Officer 
email address: [email protected], which is the preferred method of 
notification, or by telephone to the NRC Operations Center at (301) 
816--5100 within two days following receipt of information by the 
director or responsible corporate officer under paragraph (a)(1) of 
this section, on the identification of a defect or a failure to comply. 
Verification that the email has been received should be made by calling 
the NRC Operations Center. This paragraph does not apply to interim 
reports described in Sec.  21.21(a)(2) of this chapter.
    (ii) Written notification to the NRC at the address specified in 
Sec.  57.4 within 30 days following receipt of information by the 
director or responsible corporate officer under paragraph (a)(3) of 
this subsection, on the identification of a defect or a failure to 
comply.
    (4) The written report required by paragraph (d)(1) must include, 
but need not be limited to, the following information, to the extent 
known:

[[Page 23745]]

    (i) Name and address of the individual or individuals informing the 
Commission.
    (ii) Identification of the facility, the activity, or the basic 
component supplied for such facility or such activity within the United 
States that fails to comply or contains a defect.
    (iii) Identification of the firm constructing the facility or 
supplying the basic component that fails to comply or contains a 
defect.
    (iv) Nature of the defect or failure to comply and the safety 
hazard that is created or could be created by such defect or failure to 
comply.
    (v) The date on which the information of such defect or failure to 
comply was obtained.
    (vi) In the case of a basic component that contains a defect or 
fails to comply, the number and location of these components in use at, 
supplied for, being supplied for, or may be supplied for, manufactured, 
or being manufactured for one or more facilities or activities subject 
to the regulations in this part.
    (vii) The corrective action that has been, is being, or will be 
taken; the name of the individual or organization responsible for the 
action; and the length of time that has been or will be taken to 
complete the action.
    (viii) Any advice related to the defect or failure to comply about 
the facility, activity, or basic component that has been, is being, or 
will be given to purchasers or licensees.
    (5) The director or responsible officer may authorize an individual 
to provide the notification required by this paragraph, provided that, 
this must not relieve the director or responsible officer of his or her 
responsibility under this paragraph (d).
    (e) Individuals subject to this part may be required by the 
Commission to supply additional information related to a defect or 
failure to comply. Commission action to obtain additional information 
may be based on reports of defects from other reporting entities.


Sec.  57.275  Procurement documents.

    Each individual, corporation, partnership, dedicating entity, or 
other entity subject to the regulations in this part must ensure that 
each procurement document for a facility, or a basic component issued 
by him, her or it specifies, when applicable, that the provisions of 10 
CFR part 57, subpart F apply.


Sec.  57.280  Inspections.

    Each individual, corporation, partnership, dedicating entity, or 
other entity subject to the regulations in this part must permit the 
Commission to inspect records, premises, activities, and basic 
components as necessary to accomplish the purposes of this part.


Sec.  57.285  Maintenance and inspection of records.

    (a) Each individual, corporation, partnership, dedicating entity, 
or other entity subject to the regulations in this part must prepare 
and maintain records necessary to accomplish the purposes of this part, 
specifically --
    (1) Retain evaluations of all deviations and failures to comply for 
a minimum of five years after the date of the evaluation;
    (2) Suppliers of basic components must retain any notifications 
sent to purchasers and affected licensees for a minimum of five years 
after the date of the notification.
    (3) Suppliers of basic components must retain a record of the 
purchasers of basic components for 10 years after delivery of the basic 
component or service associated with a basic component.
    (4) Applicants for or holders of a standard design approval under 
subpart E of this part and others providing a design that is the 
subject of a design approval must retain any notifications sent to 
purchasers and affected licensees for a minimum of 5 years after the 
date of the notification, and retain a record of the purchasers for 15 
years after delivery of the design which is the subject of the design 
approval or service associated with the design.
    (b) The holder of a construction permit or manufacturing license 
must prepare and maintain records necessary to accomplish the purposes 
of this part, specifically--
    (1) Retain procurement documents, which define the requirements 
that facilities or basic components must meet in order to be considered 
acceptable, for the lifetime of the facility or basic component.
    (2) Retain records of evaluations of all deviations and failures to 
comply for the longer of:
    (i) Ten (10) years from the date of the evaluation; or
    (ii) Five (5) years from the date of the delivery of a manufactured 
reactor.
    (3) Suppliers of basic components must retain records of:
    (i) All notifications sent to affected licensees or purchasers for 
a minimum of 10 years following the date of the notification;
    (ii) The facilities or other purchasers to whom basic components or 
associated services were supplied for a minimum of 15 years from the 
delivery of the basic component or associated service.
    (c) Each individual, corporation, partnership, dedicating entity, 
or other entity subject to the regulations in this part must permit the 
Commission the opportunity to inspect records pertaining to basic 
components that relate to the identification and evaluation of 
deviations, and the reporting of defects and failures to comply, 
including (but not limited to) any advice given to purchasers or 
licensees on the placement, erection, installation, operation, 
maintenance, modification, or inspection of a basic component.


Sec.  57.290  Failure to notify.

    (a) Any director or responsible officer of an entity (including 
dedicating entity) that is not otherwise subject to the deliberate 
misconduct provisions of this chapter but is subject to the regulations 
in this part who knowingly and consciously fails to provide the notice 
required by Sec.  57.270 will be subject to a civil penalty equal to 
the amount provided by section 234 of the AEA.
    (b) Any NRC licensee or applicant for a license (including an 
applicant for, or holder of, a construction permit), or applicant for 
or holder of a standard design approval under subpart E, subject to the 
regulations in this part who fails to provide the notice required by 
Sec.  57.270, or otherwise fails to comply with the applicable 
requirements of this part will be subject to a civil penalty as 
provided by section 234 of the AEA.
    (c) The dedicating entity, pursuant to Sec.  57.270(c) of this 
part, is responsible for identifying and evaluating deviations, 
reporting defects and failures to comply for the dedicated item, and 
maintaining auditable records of the dedication process. NRC 
enforcement action can be taken for failure to identify and evaluate 
deviations, failure to report defects and failures to comply, or 
failure to maintain auditable records.

Subpart G--Irradiated Fuel Storage, Decommissioning, and License 
Termination Requirements


Sec.  57.300  Irradiated fuel storage.

    While an irradiated fuel transportation package certified under 10 
CFR part 71 of this chapter or irradiated fuel storage system certified 
under 10 CFR part 72 is in the SNM handling or storage area, the 
requirements in 10 CFR part 71 or 72, as applicable, and the 
requirements of the certificate of compliance for that package or 
storage system, are the applicable requirements for the fuel within 
that package or storage system.
    (a) Operating licensee. After cessation of operations of a nuclear 
reactor

[[Page 23746]]

licensed under this part, the holder of the operating license may store 
the fuel irradiated in the reactor at the operating site by either in-
reactor storage governed by the provisions of the operating license or 
transfer of the irradiated fuel to an NRC-certified irradiated fuel 
storage system pursuant to the provisions of 10 CFR part 72. If the 
operating license is no longer in effect, a 10 CFR part 72 site-
specific license is required to maintain a storage installation at the 
operating site location.
    (b) Manufacturing licensee. A holder of a manufacturing license 
under this part and a license under 10 CFR part 70 for possession of 
the special nuclear material contained in a reactor manufactured under 
the manufacturing license may store the reactor's irradiated fuel at 
the manufacturing site by either in-reactor storage if the reactor has 
been certified as a 10 CFR part 72 irradiated fuel storage system, or 
transfer of the reactor's irradiated fuel to an NRC-certified 
irradiated fuel storage system pursuant to the provisions of 10 CFR 
part 72. The manufacturing license holder may temporarily allow 
irradiated fuel to remain within the reactor after operational testing 
and before shipment to an operating site or when a reactor containing 
irradiated fuel is returned to the manufacturing facility site. The 
manufacturing license holder must demonstrate that the irradiated fuel 
in the reactor is maintained in a safe condition and that radiological 
dose to the workers and the public is consistent with the provisions in 
10 CFR part 72.
    (c) Site-specific licensee. A holder of a 10 CFR part 70 license 
for possession of SNM and a site-specific license under 10 CFR part 72 
for irradiated fuel storage may store irradiated fuel from a reactor at 
the licensed storage site after transfer of the reactor's irradiated 
fuel to an NRC-certified irradiated fuel storage system pursuant to the 
provisions of 10 CFR part 72.
    (d) Irradiated fuel storage plan. Licensees that do not have an 
approved plan for storage of irradiated fuel must submit, for NRC 
review and approval under Sec.  57.310, a plan describing how the 
licensee intends to manage and provide funding for the management of 
all irradiated fuel at the designated storage site following permanent 
cessation of operations of the reactor.
    (1) Submission of this plan must occur (1) within 1 year following 
permanent cessation of operations of the reactor, (2) more than 2 years 
before expiration of the reactor operating license if storage occurs at 
the reactors site, or (3) more than 2 years before expiration of the 
manufacturing license if storage occurs at the manufacturing site, 
whichever occurs first.
    (2) The licensee must demonstrate to the NRC that the storage 
management and funding plan is in compliance with all applicable 
possession, safety, and environmental requirements for storage of 
irradiated fuel, and must address, as applicable, transport to a 
designated storage site.


Sec.  57.305  Decommissioning and license termination.

    (a)(1) When a licensee has determined to permanently cease 
operations, the licensee must, within 30 days, submit a written 
certification to the NRC, consistent with the requirements of Sec.  
57.4(b)(8);
    (2) If the fuel has been permanently removed from the reactor on 
site or transferred to a licensed remediation or storage facility, the 
licensee must submit a written certification to the NRC that meets the 
requirements of Sec.  57.4(b)(9);
    (3) A licensee that permanently ceases site operations must make 
notification of the permanent cessation of operations no later than 1 
year prior to the expiration of the operating license.
    (b) Licensees that do not have an approved decommissioning plan at 
the time of permanent cessation of operations are subject to the 
requirements of Sec.  50.82(b) of this chapter. These licensees' 
decommissioning plans may be limited to those provisions applicable to 
the design characteristics of the nuclear reactors or nuclear plants 
and must address, as applicable, transport of nuclear reactors to 
designated facilities for final decommissioning, final decommissioning 
of individual nuclear reactors, or final decommissioning of entire 
nuclear plants, and ensure compliance with all applicable safety and 
environmental requirements.
    (c)(1) Decommissioning trust funds may be used by licensees that 
meet the following requirements:
    (i) The withdrawals are for expenses for legitimate decommissioning 
activities consistent with the definition of decommissioning in Sec.  
57.3;
    (ii) The expenditure would not reduce the value of the 
decommissioning trust below an amount necessary to place and maintain 
the reactor in a safe storage condition if unforeseen conditions or 
expenses arise; and
    (iii) The withdrawals would not inhibit the ability of the licensee 
to complete funding of any shortfalls in the decommissioning trust 
needed to ensure the availability of funds to ultimately release the 
site and terminate the license.
    (2) Unless otherwise noted in a licensee's NRC-approved 
decommissioning plan, and until the licensee has completed its final 
radiation survey and demonstrated that residual radioactivity has been 
reduced to a level that permits termination of its license, the 
licensee must annually submit to the NRC, by March 31, a financial 
assurance status report. The report must include the following 
information, current through the end of the previous calendar year:
    (i) The amount spent on decommissioning, both cumulative and over 
the previous calendar year, the remaining balance of any 
decommissioning funds, and the amount provided by other financial 
assurance methods being relied upon;
    (ii) An estimate of the costs to complete decommissioning, 
reflecting any difference between actual and estimated costs for work 
performed during the year, and the decommissioning criteria upon which 
the estimate is based;
    (iii) Any modifications occurring to a licensee's current method of 
providing financial assurance since the last submitted report; and
    (iv) Any material changes to trust agreements or financial 
assurance contracts.
    (3) If the sum of the balance of any remaining decommissioning 
funds, plus earnings on such funds calculated at not greater than a 2 
percent real rate of return, together with the amount provided by other 
financial assurance methods being relied upon, does not cover the 
estimated cost to complete the decommissioning, the financial assurance 
status report must include additional financial assurance to cover the 
estimated cost of completion.
    (d) Licensees may not perform any decommissioning activities that--
[hyphen]
    (1) Foreclose release of the site for possible unrestricted use;
    (2) Result in significant environmental impacts not previously 
reviewed; or
    (3) Result in there no longer being reasonable assurance that 
adequate funds will be available for decommissioning.
    (e) If the operating license is the only operating license for a 
nuclear reactor using the shared portions of the plant described in 
Sec.  57.60(a)(4)(iii), then the entire nuclear plant must be 
decommissioned before termination of the operating license.
    (f) All holders of operating licenses are subject to the license 
termination provisions of Sec.  50.82(b) of this chapter.

[[Page 23747]]

Subpart H--Maintaining and Revising Licensing Basis Information


Sec.  57.310  Amendment of license.

    (a) Whenever a holder of a construction permit, operating license, 
or manufacturing license desires to amend the license, application for 
an amendment must be filed with the Commission, as specified in Sec.  
57.4, as applicable. The application must fully describe the changes 
desired and follow, as far as applicable, the form prescribed for 
original applications.
    (b) In determining whether an amendment to a license issued under 
this part will be issued to the applicant, the Commission will be 
guided by the considerations that govern the issuance of initial 
licenses to the extent applicable and appropriate. If the application 
involves the material alteration of a licensed facility, a construction 
permit will be issued before the issuance of the amendment to the 
license. However, no application for a construction permit is required 
if the application involves a material alteration to a nuclear reactor 
manufactured under a manufacturing license issued under this part 
before the reactor is installed at a site. If the amendment involves a 
significant hazards consideration, the Commission will give notice of 
its proposed action according to the following:
    (1) Under Sec.  2.105 of this chapter before acting thereon; and
    (2) As soon as practicable after the application has been docketed.
    (c) The Commission will be particularly sensitive to a license 
amendment request that involves irreversible consequences (such as one 
that permits a significant increase in the amount of effluents or 
radiation emitted by a nuclear plant).
    (d) The Commission may make a final determination, under the 
procedures in Sec.  50.91 of this chapter, that a proposed amendment to 
an operating license under this part involves no significant hazards 
consideration, if operation of the facility in accordance with the 
proposed amendment would not:
    (1) Involve a significant increase in the likelihood or 
consequences of an accident previously evaluated; or
    (2) Create the possibility of a new or different kind of accident 
from any accident previously evaluated; or
    (3) Involve a significant reduction in a margin of safety.
    (e) For an application requesting an amendment to an operating 
license under this part, the Commission will use the procedures in 
Sec.  50.91 of this chapter for notifying the public and consulting the 
State.


Sec.  57.312  Changes to facility as described in final safety analysis 
reports.

    (a) A licensee under this part may make changes in the facility as 
described in the final safety analysis report, make changes in the 
procedures as described in the final safety analysis report, and 
conduct tests or experiments not described in the final safety analysis 
report without obtaining a license amendment pursuant to Sec.  57.310 
in accordance with the requirements in Sec.  50.59 of this chapter.
    (b) The holder of an operating license issued under this part that 
authorizes operation of a manufactured reactor may make changes in the 
facility as described in the final safety analysis report (as updated) 
and make changes in the procedures as described in the final safety 
analysis report (as updated) if the changes are identical to changes 
approved by the Commission by amendment to the manufacturing license 
for the manufactured reactor and upon determining that implementation 
of the changes will be consistent with the basis for the Commission's 
approval of the amendment to the manufacturing license and not involve 
any additional changes that would require an amendment to its operating 
license.


Sec.  57.315  Maintenance and submittal of the final safety analysis, 
as updated.

    (a) Each holder of an operating license issued under this part and 
each holder of a manufacturing license issued under this part must 
update periodically the FSAR originally submitted as part of the 
application for the license, to ensure that the information included in 
the report contains the latest information developed. This submittal 
must contain all the changes necessary to reflect information and 
analyses submitted to the Commission by the applicant or licensee or 
prepared by the applicant or licensee pursuant to Commission 
requirement since the submittal of the original FSAR, or as 
appropriate, the last update to the FSAR under this section. The 
submittal must include the effects of all changes made in the facility 
or procedures as described in the FSAR; all safety analyses and 
evaluations performed by the applicant or licensee either in support of 
approved license amendments or in support of conclusions that changes 
did not require a license amendment in accordance with Sec.  
50.59(c)(2) or (e) of this chapter and all analyses of new safety 
issues performed by or on behalf of the applicant or licensee at 
Commission request. Effects of changes include appropriate revisions of 
descriptions in the FSAR such that the FSAR (as updated) is complete 
and accurate. The updated information must be appropriately located 
within the update to the FSAR.
    (b) The licensee must submit revisions containing updated 
information to the Commission, as specified in Sec.  57.4, on a 
replacement-page basis that is accompanied by a list which identifies 
the current pages of the FSAR following page replacement. Each 
submittal must reflect all changes made to the FSAR up to a maximum of 
6 months prior to the date of filing the submittal.
    (c) The submittal must include:
    (1) a certification by a duly authorized officer of the licensee 
that either the information accurately presents changes made since the 
previous submittal, necessary to reflect information and analyses 
submitted to the Commission or prepared pursuant to Commission 
requirement, or that no such changes were made; and
    (2) an identification of changes made under the provisions of Sec.  
50.59 of this chapter but not previously submitted to the Commission.
    (d) Each replacement page must include both a change indicator for 
the area changed, e.g., a bold line vertically drawn in the margin 
adjacent to the portion actually changed, and a page change 
identification (date of change or change number or both).
    (e) The updated FSAR must be retained by the licensee until the 
Commission terminates their license.


Sec.  57.317  Updated decommissioning report.

    The report required by Sec.  57.55(i) must be updated and submitted 
to the NRC as specified in Sec.  57.4 before issuance of any operating 
license associated with an approved construction permit, within 3 years 
following issuance of an operating license, and no more than every 3 
years thereafter for that operating license. The updated information 
must include the amount of decommissioning funds estimated to be 
required; the amount of decommissioning funds accumulated to the end of 
the calendar year preceding the date of the report; a schedule of the 
annual amounts remaining to be collected; and the assumptions used 
regarding rates of escalation in decommissioning costs, rates of 
earnings on decommissioning funds, and rates of other factors used in 
funding projections.

Subpart I--Transportation Package Design Certification


Sec.  57.319  Purpose.

    This subpart sets forth the requirements and procedures applicable

[[Page 23748]]

to certificates of compliance for packaging and shipping of one or more 
reactors manufactured or operated under a license issued under this 
part.


Sec.  57.320  Applicability.

    While an irradiated fuel transportation package approved under 10 
CFR part 71 of this chapter is in the SNM handing or storage area at 
the licensee's site, the requirements in 10 CFR part 71, as applicable, 
and the requirements of the certificate of compliance for that package, 
are the applicable requirements for the fuel within that package.
    (a) Reactor as transportation package. A licensee under this part 
may transport a reactor loaded with fuel, either irradiated or 
unirradiated, under a certificate of compliance issued pursuant to 10 
CFR part 71 if the licensee meets the following criteria:
    (1) The requirements of 10 CFR part 71 considering the reactor as 
the transportation package have been met. In lieu of an evaluation of 
the effects of the tests required by 10 CFR 71.41(a) and specified in 
10 CFR 71.71, 71.73 and 71.61 on a package, a risk methodology or other 
risk-informed approach for evaluating normal and/or accident conditions 
that has been endorsed or otherwise approved by the Commission may be 
used to evaluate a package for certification, and
    (2) Features to prevent criticality that meet the requirements of 
Sec.  57.160(f)(1)(ii) are in place.
    (b) Reactor as transportation package contents. A 10 CFR part 71 
general license is issued to any licensee of the Commission to 
transport, or to deliver to a carrier for transport, licensed material 
in a package for which a license, certificate of compliance, or other 
approval has been issued by the NRC. The fueled reactor as 
transportation package contents must have been identified as authorized 
contents in the transportation package certificate of compliance in the 
application for a new package certification or through an amendment of 
an existing transportation package under 10 CFR 71.19(c) before the 
licensee's first use of the transportation package to transport a 
reactor.
    (1) A general licensee must meet the requirements of 10 CFR 71.17, 
and
    (2) Features to prevent criticality that meet the requirements of 
Sec.  57.160(f)(1)(ii) must be in place before the first use of the 
package.

Subpart J--Physical Security Requirements


Sec.  57.325  Physical security requirements.

    (a) Introduction.
    (1) Each licensee that is licensed to operate a nuclear reactor 
under this part and did not meet the requirement in Sec.  
57.60(a)(8)(v)(A)(3) must implement the requirements of this section 
through its physical security plan, training and qualification plan, 
safeguards contingency plan, and cybersecurity plan, referred to 
collectively hereafter as ``security plans,'' before initial fuel load 
into the reactor (or, for a fueled manufactured reactor, before 
initiating the removal of any of the features to prevent criticality 
required under Sec.  57.160(f)(1)(ii)).
    (2) The security plans must identify, describe, and account for 
site-specific conditions that affect the licensee's capability to 
satisfy the requirements of this section.
    (b) General performance objective and requirements.
    (1) The licensee must establish, implement, and maintain a physical 
protection program and a security organization, which will have as 
their objective to provide reasonable assurance that activities 
involving special nuclear material are not inimical to the common 
defense and security and do not constitute an unreasonable risk to the 
public health and safety.
    (2) The physical protection program must be designed to prevent a 
release of radionuclides from any source from exceeding the dose 
reference values defined in Sec.  50.34(a)(1)(ii)(D)(1) of this 
chapter.
    (3) To satisfy the general performance objective of paragraph 
(b)(1) of this section, the physical protection program must protect 
against the design basis threat of radiological sabotage as stated in 
Sec.  73.1 of this chapter.
    (4) The physical protection program must be designed and 
implemented to achieve and maintain the reliability and availability of 
SSCs required for demonstrating compliance with the following 
performance requirements at all times:
    (i) Intrusion detection. The licensee must be capable of detecting 
attempted and actual unauthorized access to interior and exterior areas 
containing SSCs needed to implement safety and security functions.
    (ii) Intrusion assessment. The licensee must be capable of timely 
assessment for determining the cause of a detected intrusion.
    (iii) Security communication. The licensee must be capable of 
continuous security communications. Communication systems must account 
for design basis threats that can interrupt or interfere with 
continuity or integrity of communications.
    (iv) Security response. The physical protection program must be 
designed to provide timely security response to interdict and 
neutralize adversary attacks up to and including the design basis 
threat of radiological sabotage.
    (5) The licensee must provide necessary information about the 
facility and make available periodic training to law enforcement or 
other offsite armed responders who will fulfill the interdiction and 
neutralization functions for threats up to and including the design 
basis threat of radiological sabotage.
    (6) The licensee must be capable of detecting and denying 
unauthorized access to persons and pass-through of contraband materials 
to protected areas.
    (7) The licensee must document and maintain the process used to 
develop and identify target sets, to include the site-specific analyses 
and methodologies used to determine and group the target set equipment 
or elements.
    (8) The licensee must implement a process for the oversight of 
target set equipment and systems to ensure that changes to the 
configuration of the identified equipment and systems are considered in 
the licensee's protective strategy. Where appropriate, changes must be 
made to documented target sets.
    (9) The licensee must establish, implement, and maintain a 
performance evaluation program to assess the effectiveness of the 
licensee's implementation of the physical protection program to protect 
against the design basis threat of radiological sabotage.
    (10) The licensee must establish, implement, and maintain a 
cybersecurity program under Sec.  73.54 or Sec.  73.110 of this chapter 
and must describe the program in the cybersecurity plan.
    (11) The licensee must establish, implement, and maintain an 
insider mitigation program and must describe the program in the 
physical security plan.
    (12) The licensee must have the capability to track, trend, 
correct, and prevent recurrence of failures and deficiencies in the 
implementation of the requirements of this section.
    (13) Implementation of security plans and associated procedures 
must be coordinated with other onsite plans and procedures to preclude 
conflict during both normal and emergency conditions and ensure the 
adequate management of the safety and security interface.
    (14) The licensee must ensure that the firearms background check 
requirements of Sec.  73.17 of this chapter are met for all members of 
the security organization whose official duties

[[Page 23749]]

require access to covered weapons or who inventory enhanced weapons. 
The provisions of this paragraph are only applicable to licensees 
subject to this section that are also subject to the firearms 
background check provisions of Sec.  73.17 of this chapter.
    (c) Protection of records. The licensee must retain, in accordance 
with paragraph (h) of this section, all analyses, assessments, 
calculations, and descriptions of the technical basis for demonstrating 
compliance with the performance requirements of paragraph (b) of this 
section. The licensee must protect these records in accordance with the 
requirements for protecting safeguards information in Sec. Sec.  73.21 
and 73.22 of this chapter.
    (d) Search requirements. The licensee must establish and implement 
searches of individuals, vehicles, and materials to detect and prevent 
the introduction into the protected area of firearms, explosives, 
incendiary devices, or other items and material which could be used to 
commit radiological sabotage.
    (e) Training and qualification program. The licensee must establish 
and maintain a training and qualification program that ensures 
personnel who are responsible for the physical protection of the 
facility against radiological sabotage are able to effectively perform 
their assigned security-related job duties for implementing the 
requirements of this section and must describe the program in the 
training and qualification plan.
    (f) Performance evaluation. Licensee performance evaluations must 
include methods appropriate and necessary to assess, test, and 
challenge the integration of the physical protection program's 
functions to protect against the design basis threat, including 
measures to protect against cyberattack and engineered systems designed 
to protect against the design basis threat standalone ground vehicle 
bomb attack.
    (g) Suspension of security measures.
    (1) The licensee may suspend implementation of affected 
requirements of this section in accordance with Sec.  57.399(g)-(h) of 
this chapter under the following conditions:
    (i) In an emergency, when action is immediately needed to protect 
the public health and safety; and
    (ii) During severe weather, when the suspension of affected 
security measures is immediately needed to protect the personal health 
and safety of personnel.
    (2) Suspended security measures must be reinstated as soon as 
conditions permit.
    (3) The suspension of security measures must be reported and 
documented in accordance with the provisions of Sec. Sec.  73.1200 and 
73.1205 of this chapter.
    (h) Records.
    (1) The Commission may inspect, copy, retain, and remove all 
reports, records, and documents required to be kept by Commission 
regulations, orders, or license conditions, whether the reports, 
records, and documents are kept by the licensee or a contractor.
    (2) The licensee must maintain all records required to be kept by 
Commission regulations, orders, or license conditions, until the 
Commission terminates the license for which the records were developed 
and must maintain superseded portions of these records for at least 3 
years after the record is superseded, unless otherwise specified by the 
Commission.
    (3) If a contracted security force is used to implement the onsite 
physical protection program, the licensee's written agreement with the 
contractor must be retained by the licensee as a record for the 
duration of the contract.
    (4) Review and audit reports must be available for inspection, for 
a period of 3 years.

Subpart K--Categorical Exclusion


Sec.  57.350  Categorical exclusion.

    (a) The NRC has determined that the categories of actions 
identified in paragraph (b) of this section meet the criteria for 
categorical exclusion pursuant to 10 CFR 51.22.
    (b) The issuance of an initial or renewed license for a 
microreactor or other reactor with a comparable risk profile, and all 
forms of related NRC actions, including amendments, exemptions and 
orders, under this part, are categorically excluded from the 
requirement to prepare an environmental assessment or environmental 
impact statement, provided that the following criteria are met:
    (1) The application for the initial or renewed license, amendment, 
or exemption, or the order, demonstrates that the licensed action is 
within the environmental plant parameter and site parameter envelope 
for Table C-1 of Appendix C of 10 CFR part 51, which may include the 
siting of multiple reactors across a region or at one site.
    (2) The application for the initial or renewed license, amendment, 
or exemption, or the order, demonstrates the following:
    (i) The site will be within a previously disturbed area as defined 
in Sec.  57.3;
    (ii) The cooling system(s) will not require the use or consumption 
of water withdrawn directly from surface water or groundwater sources 
or discharges to surface water or groundwater sources;
    (iii) Air emissions will be below de minimis threshold levels in 40 
CFR 93.153(b)(1) or (b)(2), as applicable; and
    (iv) The licensed activity will be in accordance with applicable 
State and local requirements (such as land use planning, zoning 
requirements, and coastal zone management program requirements under 
the Coastal Zone Management Act) in the proposed site or region.

Subpart L--Inspections


Sec.  57.355  Unfettered access for inspections.

    (a) Each applicant for or holder of a construction permit, 
operating license, or manufacturing license, and each general licensee 
under Sec.  57.45(d), must permit inspection, by duly authorized 
representatives of the Commission, of its records, premises, and 
activities, and of licensed materials in possession or use, related to 
the license or construction permit as may be necessary to effectuate 
the purposes of the AEA and the Energy Reorganization Act of 1974, as 
amended.
    (b) Each holder of a construction permit, operating license, or 
manufacturing license must provide adequate facilities and access for 
Commission inspection personnel as follows:
    (1) Each holder of a construction permit, operating license, or 
manufacturing license must provide temporary office space for the 
exclusive use of the Commission inspection personnel. Heat, air 
conditioning, light, and electrical outlets must be furnished by each 
licensee and each holder of a construction permit. The office space 
must be convenient to and have full access to the facility and must 
provide the inspectors with both visual and acoustic privacy. The 
office space must be generally commensurate with other office 
accommodations at the site.
    (2) The licensee or permit holder must afford any NRC inspectors 
identified by the Regional Administrator as likely to inspect the 
facility, immediate unfettered access, equivalent to access provided 
regular plant employees, following proper identification and compliance 
with applicable access control measures for security, radiological 
protection, and personal safety.
    (3) The licensee or permit holder must ensure that the arrival and 
presence of an NRC inspector, who has been properly authorized facility 
access as described in paragraph (b)(2) of this section, is not 
announced or otherwise

[[Page 23750]]

communicated by its employees or contractors to other persons at the 
facility unless specifically requested by the NRC inspector.
    (c) For fuel cycle facilities licensed under part 70, NRC 
inspections are conducted in accordance with 10 CFR 70.55.
    (d) For a licensee, certificate holder, and applicant for a 
certificate of compliance, NRC transportation inspections are conducted 
in accordance with 10 CFR 71.93.
    (e) For a holder of a license to receive, possess, package, or 
transfer irradiated fuel, high-level radioactive waste, or reactor-
related greater than Class C waste, NRC inspections are conducted in 
accordance with 10 CFR 72.82.

Subpart M--Material Control and Accounting


Sec.  57.360  Material control and accounting.

    (a) Licensees of facilities licensed under this part and containing 
special nuclear material (SNM) are subject to the material control and 
accounting requirements found in 10 CFR 74.11, 74.13, 74.15, and 74.19.
    (b) Licensees of facilities under this part with initial 
unirradiated fuel load that averages greater than 10% uranium-235 (U-
235) enrichment but less than 20% U-235 enrichment and that do not have 
personnel on site must perform the physical inventory with not greater 
than 6 months periodicity.
    (c) Each licensee under this part that possesses more than 1 gm of 
SNM must report location changes in accordance with 10 CFR 74.15.

Subpart N [Reserved]

Subpart O--Enforcement


Sec.  57.380  Violations.

    (a) The Commission may obtain an injunction or other court order to 
prevent a violation of the provisions of--
    (1) The AEA;
    (2) Title II of the Energy Reorganization Act of 1974, as amended; 
or
    (3) A regulation or order issued under those Acts.
    (b) The Commission may obtain a court order for the payment of a 
civil penalty imposed under section 234 of the AEA:
    (1) For violations of--
    (i) Sections 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109 of 
the AEA;
    (ii) Section 206 of the Energy Reorganization Act of 1974, as 
amended;
    (iii) Any rule, regulation, or order issued under the sections 
specified in paragraph (b)(1)(i) of this section;
    (iv) Any term, condition, or limitation of any license issued under 
the sections specified in paragraph (b)(1)(i) of this section.
    (2) For any violation for which a license may be revoked under 
section 186 of the AEA.


Sec.  57.385  Criminal penalties.

    (a) Section 223 of the AEA provides for criminal sanctions for 
willful violation of, attempted violation of, or conspiracy to violate, 
any regulation issued under sections 161(b), 161(i), or 161(o) of the 
AEA. For purposes of section 223, all the regulations in part 57 are 
issued under one or more of sections 161(b), 161(i), or 161(o), except 
for the sections listed in paragraph (b) of this section.
    (b) The regulations in 10 CFR part 57 that are not issued under 
sections 161b, 161i, or 161o for the purposes of section 223 are as 
follows: Sec. Sec.  57.1, 57.2, 57.3, 57.4, 57.8, 57.9, 57.11, 57.12, 
57.15, 57.16, 57.17, 57.18, 57.19, 57.20, 57.25, 57.30, 57.35, 57.40, 
57.55, 57.60, 57.80, 57.90, 57.95, 57.100, 57.105, 57.115, 57.120, 
57.130, 57.135, 57.142, 57.145, 57.150, 57.155, 57.160, 57.165, 57.170, 
57.172, 57.175, 57.180, 57.185, 57.190, 57.200, 57.205, 57.210, 57.213, 
57.215, 57.220, 57.225, 57.230, 57.235, 57.240, 57.260, 57.290, 57.310, 
57.319, 57.350, 57.380, 57.385, 57.390, 57.415.

Subpart P--Operator Licensing and Human Factors


Sec.  57.390  Definitions.

    For the purposes of this subpart, the following definitions apply:
    Auxiliary operator means any individual who operates components of 
a nuclear plant under this part but does not manipulate controls or 
direct the manipulation of controls of the plant and is not required to 
be licensed under the provisions of this part.
    Facility licensee means the holder of an operating license under 
this part for the nuclear plant where a generally licensed reactor 
operator, operator, or senior operator would be licensed or is 
licensed.
    Generally licensed reactor operator (GLRO) means any individual 
licensed under the provisions of Sec.  57.405 to manipulate controls of 
an operator-independent facility licensed under this part and to direct 
the licensed activities of GLROs.
    Licensed medical examiner means an individual licensed by a State 
or territory of the United States, the District of Columbia, or the 
Commonwealth of Puerto Rico to conduct medical examinations for the 
purpose of determining an individual's medical condition and general 
health.
    Load following means a nuclear plant automatically changing its 
output to match expected demand in response to externally originated 
instructions or signals.
    Operator means any individual licensed under the provisions of 
Sec. Sec.  57.420 through 57.427 to manipulate controls of an operator-
dependent facility licensed under this part.
    Operator-dependent facility means a nuclear plant whose design 
demonstrates that operator actions are required to maintain the nuclear 
plant within the criterion of Sec.  57.25(a).
    Operator-independent facility means a nuclear plant whose design 
demonstrates that no operator actions are required to maintain the 
nuclear plant within the criterion of Sec.  57.25(a).
    Performance testing means testing conducted to verify a simulation 
facility's performance as compared to actual or predicted reference 
plant performance.
    Physician means an individual licensed by a State or territory of 
the United States, the District of Columbia or the Commonwealth of 
Puerto Rico to dispense drugs in the practice of medicine.
    Reference plant means the specific nuclear power plant from which a 
simulation facility's control room configuration, system control 
arrangement, and design data are derived. The reference plant may or 
may not be constructed.
    Senior operator means any individual licensed under the provisions 
of Sec. Sec.  57.420 through 57.427 to manipulate controls of an 
operator-dependent facility licensed under this part and to direct the 
licensed activities of operators.
    Simulation facility or simulator means an interface designed to 
provide a realistic imitation of the operation of a nuclear plant and 
used for the administration of examinations, for training, and/or to 
demonstrate compliance with experience prerequisites for applicants or 
GLROs, operators, or senior operators. A simulation facility may rely, 
in whole or part, upon the physical utilization of the reference plant 
itself.
    Systems approach to training means a training program that includes 
the following five elements:
    (1) Systematic analysis of the jobs to be performed.
    (2) Learning objectives derived from the analysis which describe 
desired performance after training.

[[Page 23751]]

    (3) Training design and implementation based on the learning 
objectives.
    (4) Evaluation of trainee mastery of the objectives during 
training.
    (5) Evaluation and revision of the training based on the 
performance of trained personnel in the job setting


Sec.  57.391  General requirements for operator licensing and human 
factors.

    (a) Two classes of nuclear plants. Nuclear plants licensed under 
this part are of the class of either operator-independent facilities or 
operator-dependent facilities, based upon the similarity of operating 
and technical characteristics of the plants in the class. A nuclear 
plant is an operator-independent facility if the NRC determined as part 
of its approval of the operating license for that plant that its design 
demonstrates that no operator actions are required to maintain the 
reactors within the criterion of Sec.  57.25(a). Otherwise, the nuclear 
plant is an operator-dependent facility.
    (b) Purpose and applicability. The regulations in Sec. Sec.  57.390 
through 57.429 address areas related to staffing, training, personnel 
qualifications, human factors engineering, generally licensed reactor 
operators, operators, and senior operators, for applicants for or 
holders of operating licenses under this part. These regulations are 
organized as follows:
    (1) Sections 57.391 through 57.399 address staffing, training, 
personnel qualifications, and human factors engineering requirements. 
The regulations within these sections are applicable to all applicants 
for or holders of operating licenses under this part, except where 
specifically stated otherwise.
    (2) Sections 57.400 through 57.415 address generally licensed 
reactor operator requirements. The regulations within these sections 
are applicable to those applicants for or holders of operating licenses 
under this part for operator-independent facilities that have not yet 
certified the permanent cessation of operations and permanent removal 
of fuel from the reactor vessel as described under Sec.  57.305(a).
    (3) Sections 57.420 through 57.427 address operator and senior 
operator requirements. The regulations within these sections are in 
lieu of Sec. Sec.  57.400 through 57.415 for those applicants for or 
holders of operating licenses under this part for operator-dependent 
facilities that have not yet certified the permanent cessation of 
operations and permanent removal of fuel from the reactor vessel as 
described under Sec.  57.305(a).
    (4) Section 57.429 provides general personnel training and 
qualification requirements. The regulations within this section are 
applicable to all applicants for or holders of operating licenses under 
this part.


Sec.  57.392  Communications.

    (a) Except as provided under a regional licensing program 
identified in paragraph (b) of this section, an applicant or licensee 
or facility licensee must submit any communication or report required 
by the regulations contained within Sec. Sec.  57.391 through 57.429 
and any application filed under these regulations to the Commission 
using any of the methods specified in Sec.  57.4(a).
    (b) (1) The Director, Office of Nuclear Reactor Regulation, has 
delegated to the Regional Administrators of Regions I, II, III, and IV 
authority and responsibility under the regulations in this part for the 
issuance of licenses for operators and senior operators of nuclear 
power reactors licensed under this part and located in these regions.
    (2) Any application for an operator or senior operator license 
filed under the regulations in Sec.  57.420 and any related inquiry, 
communication, information, or report must be submitted to the 
appropriate Regional Administrator listed in appendix D to 10 CFR part 
20 by a method specified in Sec.  57.4(a). The Regional Administrator 
or their designee will transmit to the Director, Office of Nuclear 
Reactor Regulation, any matter that is not within the scope of the 
Regional Administrator's delegated authority.
    (c) Each facility licensee that is required to comply with the 
requirements of Sec. Sec.  57.420 through 57.427 must notify the 
appropriate Regional Administrator regarding an operator or senior 
operator within 30 days of the following events:
    (1) Permanent reassignment from the position for which the facility 
licensee has certified the need for an operator or senior operator 
under Sec.  57.423(a)(1);
    (2) Termination of any operator or senior operator; or
    (3) Permanent disability or illness as required under Sec.  57.422.


Sec.  57.393  Completeness and accuracy of information.

    Information provided to the Commission by an applicant for an 
operator or senior operator license or by a licensee or information 
required by statute or the Commission's regulations, orders, or license 
conditions to be maintained by the applicant or the licensee must be 
complete and accurate in all material respects.


Sec.  57.395  Human factors engineering requirements.

    Applicants for or holders of an operating license for a nuclear 
plant licensed under this part must comply with the following:
    (a) Human-system interface design requirements. The plant design 
must provide for the following to support operating personnel in 
monitoring plant conditions and responding to plant events:
    (1) Features for displaying to operating personnel a minimum set of 
parameters that define the safety status of the plant and are capable 
of displaying both the full range of important plant parameters and 
data trends on demand, as well as indicating when process limits are 
being approached or exceeded;
    (2) Automatic indication of the bypassed and operable status of 
safety systems;
    (3) Direct indication of SSC status that relates to the ability of 
the SSC to perform its safety function, such as relief and safety valve 
position (i.e., open or closed), and ultimate heat sink and cooling 
system status and availability;
    (4) Instrumentation to measure, record, and display key plant 
parameters related to the performance of SSCs and the integrity of 
barriers important to fulfilling safety functions to support operators 
in monitoring plant conditions and responding to plant events.
    (5) Leakage control and detection in the design of systems that 
pass through barriers important to fulfilling safety functions for the 
release of radionuclides.
    (6) Monitoring of in-plant radiation and airborne radioactivity as 
appropriate for a broad range of normal operating and accident 
conditions; and
    (7) The capability for GLRO, operator, or senior operator to do the 
following:
    (i) Receive plant operating data, including reactor parameters and 
information needed for the evaluation of emergency conditions.
    (ii) Promptly dispatch operations and maintenance personnel.
    (iii) Immediately implement responsibilities under the facility 
emergency plan, as applicable.
    (iv) Immediately initiate a reactor shutdown from their location.
    (b) Operating experience. A program, during construction and during 
operation, as applicable, for evaluating and applying operating 
experience must be developed, implemented, and maintained.

[[Page 23752]]

    (c) Staffing plan. A staffing plan must be developed and comply 
with the following:
    (1) The staffing plan must include a description of how the 
proposed numbers, positions, and qualifications of GLROs, operators, or 
senior operators will be sufficient to ensure that plant safety 
functions will be maintained across all modes of plant operations. The 
staffing plan must be supported by human factors engineering analyses 
and assessments.
    (2) The staffing plan must include a description of how the 
positions and responsibilities of personnel contained within those 
plans will adequately satisfy necessary support functions within areas 
such as plant operations, equipment surveillance and maintenance, 
radiological protection, chemistry control, fire brigades, engineering, 
security, and emergency response.
    (3) The staffing plan must be approved by the NRC as part of its 
approval of the operating license for the plant. The approved staffing 
plan is subject to the requirements of Sec.  57.312.
    (d) Human factors engineering design requirements. The nuclear 
plant design must reflect state-of-the-art human factors engineering 
principles for safe and reliable performance in all locations that 
operator actions are required to maintain the reactor within the 
criterion of Sec.  57.25(a) or locations where a credible operator or 
maintenance error could result in exceeding that criterion.


Sec.  57.398  Operator license requirements.

    A person must be authorized by a license issued by the Commission 
to perform the function of a GLRO, operator, or senior operator, as 
defined in this part.


Sec.  57.399  Facility licensee requirements--General.

    (a) The facility licensee must maintain the staffing complement 
described under its approved staffing plan until such time as the 
permanent cessation of operations and permanent removal of fuel from 
the reactor vessel has been certified as described under Sec.  
57.305(a). The facility licensee must develop, implement, and maintain 
facility technical specifications that provide the necessary 
administrative controls to ensure the implementation of the approved 
staffing complement.
    (b) The facility licensee may not permit the manipulation of the 
controls of any facility by anyone who is not a GLRO, operator, or 
senior operator, as appropriate, except in cases where a non-licensed 
operator manipulates the controls under the direction and in the 
presence of a GLRO, operator, or senior operator as part of the 
individual's training as part of the operator training program or to 
load or unload fuel into, out of, or within the reactor vessel while 
the reactor is not operating.
    (c) Apparatus and mechanisms other than controls, the operation of 
which may affect the reactivity or power level of a reactor, must be 
manipulated only while plant conditions are being monitored by an 
individual who is a GLRO, operator, or senior operator, as appropriate.
    (d) Load following operations.
    (1) Load following is permitted if at least one of the following is 
immediately capable of refusing demands when they could challenge the 
safe operation of the plant or when precluded by the plant equipment 
conditions:
    (i) The actuation of an automatic protection system that utilizes 
setpoints more conservative than those otherwise credited for the 
purposes of reactor protection;
    (ii) An automated control system; or
    (iii) GLRO, operator, or senior operator, as appropriate,
    (2) The provisions of paragraph (c) of this section do not apply 
during load following operations.
    (e) Facility licensees must have present during alteration of the 
core (including fuel loading or transfer) an individual holding a GLRO 
license, a senior operator license, or a senior operator license 
limited to fuel handling to directly supervise the activity and, during 
this time, the facility licensee must not assign other duties to this 
person.
    (f) The provisions of paragraph (e) of this section do not apply to 
core alterations performed as part of refueling operations while a 
facility that is capable of online refueling is operating at power.
    (g) A facility licensee may take reasonable action that departs 
from a license condition or a technical specification (contained in a 
license issued under this part) in an emergency when this action is 
immediately needed to protect the public health and safety and no 
action consistent with license conditions and technical specifications 
that can provide adequate or equivalent protection is immediately 
apparent.
    (h) Facility licensee action permitted by subparagraph (g) of this 
section must be approved, as a minimum, by a GLRO or senior operator, 
or, at a nuclear plant for which the certifications required under 
Sec.  57.305(a) have been submitted, by either a GLRO or a certified 
fuel handler, prior to taking the action.


Sec.  57.400  Facility licensee requirements related to GLROs.

    Licensees of operator-independent facilities that have not yet 
certified the permanent cessation of operations and permanent removal 
of fuel from the reactor vessel as described under Sec.  57.305(a) must 
demonstrate compliance with the following requirements:
    (a) Ensure that, in addition to being qualified to perform those 
items identified by the facility-specific systems approach to training 
conducted under Sec.  57.410, GLROs are qualified to safely and 
competently--
    (i) Perform administrative tasks, including compliance with 
technical specifications, and perform operability determinations;
    (ii) Implement maintenance and configuration controls;
    (iii) Comply with radioactive release limitations;
    (iv) Understand plant operating data, including reactor parameters, 
and evaluate emergency conditions;
    (v) Initiate a reactor shutdown from necessary locations;
    (vi) Dispatch and direct operations and maintenance personnel;
    (vii) Implement any applicable responsibilities under the facility 
emergency plan; and
    (viii) Make required notifications to local, State, participating 
Tribal, and Federal authorities.
    (b) Develop, implement, and maintain the GLRO training, 
examination, and proficiency programs required under Sec.  57.410.
    (c) Ensure that GLROs are subject to the facility's GLRO training, 
examination, and proficiency programs required under Sec.  57.410. 
Ensure that GLROs are subject to and comply with the applicable 
programmatic requirements for plant personnel required under 10 CFR 
parts 26 and 73 of this chapter. An individual that is not in 
compliance with any of these programs is not qualified to be in a 
position that may involve the manipulation of the controls of the 
nuclear plant.
    (d) Report annually to the NRC the identity of all GLROs at the 
nuclear plant, including all additions and deletions since the previous 
report.
    (e) Develop, implement, and maintain facility technical 
specifications that provide the necessary administrative controls to 
ensure the implementation of the requirements of Sec.  57.399(a) and 
paragraphs (a) through (d) of this section.
    (f) Ensure that the facility design and operation continue to not 
rely on

[[Page 23753]]

operator actions to maintain the reactor within the criterion of Sec.  
57.25(a).


Sec.  57.405  Generally licensed reactor operators.

    (a) Applicability. The requirements of this section apply to each 
holder on a GLRO license for an operator-independent facility licensed 
under this part.
    (b) Requirements.
    (1) A general license to manipulate the controls of a facility 
licensed under this part and to direct the licensed activities of 
generally licensed reactor operators is hereby issued to any individual 
employed in a position that may involve the manipulation of the 
controls of that facility and who observes the restrictions of this 
section.
    (2) A GLRO must comply with the operating procedures and other 
conditions specified in the license authorizing operation of the 
facility.
    (3) The general license is limited to the facility or facilities at 
which the operator is employed.
    (4) The Commission will suspend the general license on an 
individual basis for violations of any provision of the AEA or any rule 
or regulation issued thereunder whenever the Commission deems such 
suspension desirable, including--
    (i) For willful violation of, or failure to observe, any of the 
terms and conditions of the AEA or the general license, or of any rule, 
regulation, or order of the Commission;
    (ii) For any conduct determined by the Commission to be a hazard to 
safe operation of the facility; or
    (iii) For the sale, use, or possession of illegal drugs, or refusal 
to participate in the facility drug and alcohol testing program, or a 
confirmed positive test for drugs, drug metabolites, or alcohol in 
violation of the conditions and cutoff levels established by Sec.  
57.405(b)(6) or the consumption of alcoholic beverages where the 
individual perform activities requiring a general license, or a 
determination of unfitness for scheduled work as a result of the 
consumption of alcoholic beverages.
    (5) The Commission may require information from a GLRO to determine 
whether a general license should be revoked or suspended with respect 
to that operator.
    (6) The GLRO must not consume or ingest alcoholic beverages in any 
location where they perform activities requiring a general license. The 
GLRO must not use, possess, or sell any illegal drugs. The GLRO must 
not perform activities requiring a general license while under the 
influence of alcohol or any prescription, over-the-counter, or illegal 
substance that could adversely affect his or her ability to safely and 
competently perform these activities. For the purpose of this 
paragraph, with respect to alcoholic beverages and drugs, the term 
``under the influence'' means the GLRO exceeded, as evidenced by a 
confirmed test result, the lower of the cutoff levels for drugs or 
alcohol contained in 10 CFR part 26, or as established by the facility 
licensee. The term ``under the influence'' also means the GLRO could be 
mentally or physically impaired as a result of substance use including 
prescription and over-the-counter drugs, as determined under the 
provisions, policies, and procedures established by the facility 
licensee for its fitness-for-duty program, in such a manner as to 
adversely affect his or her ability to safely and competently perform 
GLRO duties.
    (7) The GLRO must notify the Commission within 30 days about a 
conviction for a felony.
    (8) The GLRO must complete a training and examination program as 
described in Sec.  57.410.


Sec.  57.410  Generally licensed reactor operator training, 
examination, and proficiency programs.

    (a) Applicability. The requirements of this section apply to each 
licensee of an operator-independent facility that has not yet certified 
the permanent cessation of operations and permanent removal of fuel 
from the reactor as described under Sec.  57.305(a).
    (b) Requirements.
    (1) The facility licensee must develop, implement, and maintain 
training and examination programs that demonstrate compliance with the 
requirements of paragraphs (b)(2) and (3) of this section.
    (2) The training program must provide for both the initial and 
continuing training of GLROs and be derived from a systems approach to 
training as defined in Sec.  57.390.
    (3) Training and examination program requirements.
    (i) The training program must incorporate the instructional 
requirements necessary to provide qualified GLROs to operate and 
maintain the facility in a safe manner in all modes of operation. The 
training program must comply with the facility license, including all 
technical specifications and applicable regulations. The facility 
licensee must periodically evaluate and revise the training program as 
appropriate to reflect industry experience and relevant changes, 
including changes to the facility, procedures, regulations, and quality 
assurance requirements. Facility licensee management must periodically 
review the training program for effectiveness.
    (ii) The training program must ensure that GLROs have and maintain 
the knowledge, skills, and abilities necessary to operate and maintain 
the facility in a safe manner.
    (iii) The training program must include the GLROs manipulating the 
controls of either the facility or a simulation facility that 
demonstrates compliance with the requirements of Sec.  57.410(e).
    (iv) The training program must include an initial examination 
program for testing a representative sample of the knowledge, skills, 
and abilities needed to safely perform GLRO duties, to include both the 
examination methods and criteria to be used to assess passing 
performance. The facility licensee must provide the opportunity for a 
representative of the Commission to be present during initial 
examination administration.
    (v) The training program must include a requalification examination 
program for testing a sample of the topics included under the systems 
approach to training and include the examination methods and criteria 
to assess passing performance. The requalification examination program 
must specify an appropriate periodicity for administering a complete 
requalification examination to each GLRO, and the facility licensee 
must provide the opportunity for a representative of the Commission to 
be present during requalification examination administration.
    (A) The facility licensee must ensure that any GLRO who either 
demonstrates unsatisfactory performance on, or fails to complete, the 
requalification examination is removed from the performance of GLRO 
duties until any necessary remedial training has been completed and a 
retake examination has been passed.
    (B) [Reserved]
    (vi) The initial and requalification examination programs must 
provide valid and reliable examinations and must be approved by the 
Commission prior to their first use.
    (c) Records. The following is required regarding the documentation 
of the GLRO training and examination programs:
    (1) Sufficient records must be maintained by the facility licensee 
to maintain the integrity of the programs and kept available for NRC 
inspection to verify the adequacy of the programs.
    (2) The facility licensee must maintain records documenting the 
participation of each GLRO in the

[[Page 23754]]

training and examination programs. The records must contain copies of 
examinations administered, the answers given by the GLRO, documentation 
of the grading of examinations, and documentation of any additional 
training administered in areas in which a GLRO exhibited deficiencies. 
The facility licensee must retain these records while the associated 
GLROs remain employed at the facility.
    (3) Each record required by this part must be legible throughout 
the retention period. The record may be the original, a reproduced 
copy, or an electronic copy provided that the copy is authenticated by 
authorized personnel.
    (d) Examination integrity. Generally licensed reactor operators and 
facility licensees must not engage in any activity that compromises the 
integrity of any examination conducted under the GLRO training and 
examination programs. The integrity of an examination is considered 
compromised if any activity, regardless of intent, affected or, but for 
detection, could have affected the consistent administration of the 
examination. This includes all activities related to the preparation, 
administration, and grading of examinations.
    (e) Simulation facilities.
    (1) Simulation facilities used for training purposes, for 
maintaining proficiency, or for the conduct of examinations must 
demonstrate compliance with the following criteria as they relate to 
the facility licensee's reference plant:
    (i) The simulation facility must be of sufficient scope and 
fidelity for individuals to acquire and demonstrate the necessary 
knowledge, skills, and abilities to safely perform GLRO duties.
    (ii) The simulation facility must utilize models relating to 
nuclear, thermal-hydraulic, and other applicable design-specific 
characteristics that either replicate the most recent fuel load in the 
reference nuclear plant or, prior to initial fuel load (or, for a 
fueled manufactured reactor, prior to initiating the removal of the 
features to prevent criticality), replicate the intended initial fuel 
load for the reference nuclear plant, with the exception of those 
portions of the simulation facility that utilize the reference plant 
itself.
    (iii) Simulator fidelity must be demonstrated so that significant 
control manipulations are completed without procedural exceptions, 
simulator performance exceptions, or deviation from the approved 
training scenario sequence.
    (2) Facility licensees that maintain a simulation facility for 
training purposes, for maintaining proficiency, or for the conduct of 
examinations must--
    (i) Conduct performance testing throughout the life of the 
simulation facility in a manner sufficient to ensure that paragraph 
(e)(1) of this section is met;
    (ii) Retain the results of performance testing for 4 years after 
the completion of each performance test or until superseded by updated 
test results;
    (iii) Promptly correct modeling and hardware discrepancies and 
discrepancies identified from scenario validation and from performance 
testing or provide justification for why the presence of such 
discrepancies will not adversely affect the criteria of paragraph 
(e)(1) of this section;
    (iv) Make the results of any uncorrected performance test failures 
that may exist at the time of an inspection available for NRC review; 
and
    (v) Maintain the provisions for examination integrity consistent 
with Sec.  57.410(d).
    (f) Waiver of examination requirement. The facility licensee may 
waive any or all the requirements for an examination in accordance with 
the facility licensee's Commission-approved GLRO examination program.
    (g) Proficiency. The facility licensee must develop, implement, and 
maintain a proficiency program to allow GLROs to maintain proficiency 
regarding position functions and familiarity with plant status. This 
program must include those steps that will be taken to re-establish 
proficiency when it cannot be maintained.


Sec.  57.415  Cessation of individual applicability.

    The general license ceases to be applicable on an individual basis 
once a GLRO is no longer being employed in a position that may involve 
the manipulation of the controls of the operator-independent facility.


Sec.  57.420  Operator licensing for operator-dependent facilities.

    (a) Applicability. Sections 57.420 through 57.427 address operator 
and senior operator licensing requirements. The regulations within 
these sections are applicable to those applicants for or holders of 
operating licenses under this part for operator-dependent facilities 
that have not yet certified the permanent cessation of operations and 
permanent removal of fuel from the reactor vessel as described under 
Sec.  57.305(a).
    (b) [Reserved]


Sec.  57.421  Medical requirements.

    (a) An applicant for an operator or senior operator license must 
have a medical examination by a physician or other licensed medical 
examiner. An operator or senior operator must have a medical 
examination by a physician or other licensed medical examiner every 2 
years. The physician or other licensed medical examiner shall determine 
that the applicant or licensee meets the requirements of Sec.  
57.423(b)(1)(i).
    (b) To certify the medical fitness of an applicant for an operator 
or senior operator license, an authorized representative of the 
facility licensee must complete and sign NRC Form 396, ``Certification 
of Medical Examination by Facility Licensee,'' which can be obtained by 
writing the Office of the Chief Information Officer, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555-0001, by calling 301-415-
7232, or by visiting the NRC's website at https://www.nrc.gov and 
selecting forms from the index found on the home page, or by other 
means provided by the NRC.
    (1) NRC Form 396 must certify that a physician or other licensed 
medical examiner has conducted the medical examination of the applicant 
as required in paragraph (a) of this section.
    (2) When the medical certification requests a conditional license 
based on medical evidence, the medical evidence must be submitted on 
NRC Form 396 to the Commission to enable the Commission to make a 
determination in accordance with Sec.  57.425(b).
    (c) The facility licensee must document and maintain the results of 
medical qualifications data, test results, and each operator's or 
senior operator's medical history for the current license period and 
provide the documentation to the Commission upon request. The facility 
licensee must retain this documentation while an individual performs 
the functions of an operator or senior operator.


Sec.  57.422  Incapacitation because of disability or illness.

    If, during the term of the operator or senior operator license, the 
licensee develops a permanent physical or mental condition that causes 
the licensee to fail to demonstrate compliance with the requirements of 
Sec.  57.423(b)(1)(i), the facility licensee must notify the Commission 
within 30 days of learning of the diagnosis. For conditions for which a 
conditional license (as described in Sec.  57.423(b)) is requested, the 
facility licensee must provide medical certification on NRC Form 396 to 
the Commission (as described in Sec.  57.421(b)).

[[Page 23755]]

Sec.  57.423  Applications for operators and senior operators.

    (a) How to apply.
    (1) The applicant for an operator or senior operator license must--
    (i) Complete NRC Form 398, ``Personal Qualification Statement-- 
Licensee,'' which can be obtained by writing the Office of the Chief 
Information Officer, U.S. Nuclear Regulatory Commission, Washington, DC 
20555-0001, by calling 301-415-5877, or by visiting the NRC's website 
at https://www.nrc.gov and selecting forms from the index found on the 
home page, or by other means provided by the NRC;
    (ii) File an original of NRC Form 398, or an equivalent electronic 
submittal, together with the information required in paragraphs 
(a)(1)(iii) and (a)(1)(iv) of this section, with the appropriate 
Regional Administrator.
    (iii) Provide evidence that the applicant, as a trainee, has 
successfully demonstrated competence in manipulating the controls of 
either the facility for which a license is sought or a simulation 
facility that demonstrates compliance with the requirements of Sec.  
57.424(e). For operators applying for a senior operator license, 
certification that the operator has successfully operated the controls 
of the facility as an operator will be accepted; and
    (iv) Provide certification by the facility licensee of medical 
condition and general health on NRC Form 396, to comply with Sec.  
57.421.
    (2) The Commission may at any time after the application has been 
filed, and before the license has expired, require further information 
under oath or affirmation to enable it to determine whether to grant or 
deny the application or whether to revoke, modify, or suspend the 
license.
    (3) An applicant whose application has been denied because of a 
medical condition or their general health may submit a further medical 
report at any time as a supplement to the application.
    (4) Each application and statement must contain complete and 
accurate disclosure as to all matters required to be disclosed. The 
applicant must sign statements required by paragraphs (a)(1)(i) and 
(a)(1)(ii) of this section.
    (b) Disposition of an initial application.
    (1) License approval. The Commission will approve an initial 
application if it finds that the following criteria are met:
    (i) Health. The applicant's medical condition and general health 
will not adversely affect the performance of assigned operator or 
senior operator job duties or cause operational errors endangering 
public health and safety. The Commission will base its finding upon the 
certification by the facility licensee as detailed in Sec.  57.421(b).
    (ii) Examination. The applicant has passed the requisite 
examination in accordance with Sec.  57.424(b). The examination 
determines whether the applicant for an operator's or senior operator's 
license has learned to operate a facility competently and safely, and, 
in the case of a senior operator, whether the applicant has learned to 
supervise the licensed activities of operators competently and safely.
    (2) Conditional license. If an applicant's general medical 
condition does not demonstrate compliance with the minimum standards 
under Sec.  57.423(b)(1)(i), the Commission may approve the application 
and include conditions in the license to accommodate the medical 
condition. The Commission will consider the recommendations and 
supporting evidence of the facility licensee and of the examining 
physician (provided on NRC Form 396) in arriving at its decision.
    (c) Re-applications.
    (1) An applicant whose application for a license has been denied 
because of failure to pass the examination may file a new application. 
The application must be submitted on NRC Form 398 and include a 
statement signed by an authorized representative of the facility 
licensee by whom the applicant will be employed that states in detail 
the extent of the applicant's additional training and remediation since 
the denial and certifies that the applicant is ready for re-
examination.
    (2) An applicant who has passed a portion of the examination and 
failed another may request in a new application on NRC Form 398 to be 
excused from re-examination on the portions of the examination that the 
applicant has passed. The Commission may in its discretion grant the 
request if it determines that sufficient justification is presented.


Sec.  57.424  Training, examination, and proficiency program.

    (a) Operator licensing initial training program.
    (1) A program that is based upon a systems approach to training, as 
defined by Sec.  57.390, must be utilized for the training of 
applicants for operator and senior operator licenses. The program must 
ensure that applicants at the facility will possess the knowledge, 
skills, and abilities necessary to protect public health and safety and 
maintain plant safety functions specific to the facility design. The 
program must be approved by the Commission prior to its use for 
training applicants.
    (2) The facility licensee must maintain operator licensing initial 
training program records documenting the initial operator licensing 
training administered and completed by each applicant. The facility 
licensee must retain these records during the period in which any 
trainees subsequently remain licensed as operators or senior operators 
at the facility.
    (b) Operator licensing initial examination program.
    (1) The facility licensee must establish and implement an 
examination program for testing a representative sample of the 
knowledge, skills, and abilities needed to safely perform operator and 
senior operator duties, to include both the examination methods and 
criteria to be used to assess passing performance. The program must 
provide for valid and reliable examinations and be approved by the 
Commission prior to its use for examining applicants.
    (2) The facility licensee must submit prepared examinations to the 
Commission for review and approval in advance of their administration.
    (3) The Commission will either administer an approved examination 
or allow the facility licensee to administer the examination. The 
facility licensee must ensure that sufficient advance notification is 
provided to the Commission to either administer the examination or 
allow for a representative of the Commission to be afforded the 
opportunity to be present when the facility licensee administers the 
examination.
    (4) Graded examination documentation for each applicant must be 
provided to the Commission for review in making operator licensing 
decisions.
    (5) The facility licensee must maintain operator licensing initial 
examination program records documenting the participation of each 
operator and senior operator applicant in the initial examination. The 
records must contain copies of examinations administered, the answers 
given by the applicant, documentation of the grading of examinations, 
and documentation of any additional training administered in areas in 
which an applicant exhibited deficiencies. The facility licensee must 
retain these records during the period in which the associated 
operators or senior operators remain licensed at the facility.
    (c) Operator licensing requalification program.
    (1) A program based upon a systems approach to training must be 
utilized for the continuing training of operators and senior operators.

[[Page 23756]]

    (i) The program must ensure that operators and senior operators at 
the facility maintain the knowledge, skills, and abilities necessary to 
protect the public health and safety and maintain plant safety 
functions specific to the facility design. The program must be 
conducted for a continuous period not to exceed 24 months in duration.
    (ii) The program must be approved by the Commission prior to its 
use for continuing training and implemented upon commencing the 
administration of initial examinations under the operator licensing 
examination program required under Sec.  57.424(b).
    (2) The following requirements apply to operator licensing 
requalification programs:
    (i) The facility licensee must propose a requalification 
examination program for testing, for each requalification period, a 
sample of the topics included under the systems approach to training, 
to include both the examination methods and criteria to be used to 
assess passing performance. The program must provide for valid and 
reliable examinations and be approved by the Commission prior to its 
use for examining operators and senior operators.
    (ii) The following requirements apply to the requalification 
examination program:
    (A) The facility licensee must make prepared requalification 
examinations available to the Commission for review.
    (B) The facility licensee must ensure that a representative of the 
Commission is afforded the opportunity to be present during 
requalification examination administration.
    (C) The facility licensee must ensure that each operator and senior 
operator is administered a complete requalification examination on a 
periodicity not to exceed 24 months. Additionally, the facility 
licensee must ensure that any operator or senior operator who either 
demonstrates unsatisfactory performance on, or fails to complete, this 
biennial requalification examination is removed from the performance of 
operator and senior operator duties until any necessary remedial 
training has been completed and a retake examination has been passed.
    (D) The facility licensee must promptly provide a summary of 
examination results to the NRC for each operator and senior operator 
following the completion of the requalification examination.
    (3) The facility licensee must maintain operator licensing 
requalification program records documenting the participation of each 
operator and senior operator in the requalification program. The 
records must contain copies of examinations administered, the answers 
given by the operator or senior operator, documentation of the grading 
of examinations, and documentation of any additional training 
administered in areas in which an operator or senior operator exhibited 
deficiencies. The facility licensee must retain these records until the 
operator's or senior operator's license is renewed.
    (d) Examination integrity. Applicants, operators, senior operators, 
and facility licensees must not engage in any activity that compromises 
the integrity of any application or examination required by Sec. Sec.  
57.420 through 57.427. The integrity of an examination is considered 
compromised if any activity, regardless of intent, affected or, but for 
detection, could have affected the consistent administration of the 
examination. This includes activities related to the preparation and 
certification of applications and all activities related to the 
preparation, administration, and grading of examinations required by 
Sec. Sec.  57.420 through 57.427.
    (e) Simulation facilities.
    (1) This section addresses the use of a simulation facility for the 
administration of examinations, for training, or to demonstrate 
compliance with experience requirements for applicants for operator and 
senior operator licenses.
    (2) Simulation facilities used for training purposes, for 
demonstrating compliance with experience requirements, or for the 
conduct of examinations under Sec.  57.424(b) and (c) must demonstrate 
compliance with the following criteria as they relate to the facility 
licensee's reference plant:
    (i) The simulation facility must be of sufficient scope and 
fidelity for individuals to acquire and demonstrate the necessary 
knowledge, skills, and abilities to safely perform operator and senior 
operator duties.
    (ii) The simulation facility must utilize models relating to 
nuclear, thermal-hydraulic, and other applicable design-specific 
characteristics that either replicate the most recent fuel load in the 
reference nuclear plant or, prior to initial fuel load (or, for a 
fueled manufactured reactor, prior to initiating the removal of the 
features to prevent criticality), replicate the intended initial fuel 
load for the reference nuclear plant, with the exception of those 
portions of the simulation facility that utilize the reference plant 
itself.
    (iii) Simulation facility fidelity must be demonstrated so that 
significant control manipulations are completed without procedural 
exceptions, simulator performance exceptions, or deviation from the 
approved training scenario sequence.
    (3) Facility licensees that maintain a simulation facility that has 
been approved by the Commission for training purposes, demonstrating 
compliance with experience requirements, or the conduct of examinations 
under Sec.  57.424(b) and (c) for the facility licensee's reference 
plant must:
    (i) Conduct performance testing throughout the life of the 
simulation facility in a manner sufficient to ensure that paragraph 
(e)(2) of this section is met;
    (ii) Retain the results of performance testing for 4 years after 
the completion of each performance test or until superseded by updated 
test results;
    (iii) Promptly correct modeling and hardware discrepancies and 
discrepancies identified from scenario validation and performance 
testing or provide justification as to why the presence of such 
discrepancies will not adversely affect simulator performance with 
respect to the criteria of paragraph (e)(2) of this section;
    (iv) Make the results of any uncorrected performance test failures 
that may exist at the time of the initial license examination or 
requalification examination available for NRC review, prior to or 
concurrent with preparations for each initial license examination or 
requalification examination; and
    (v) Maintain the provisions for license application and examination 
integrity consistent with Sec.  57.424(d).
    (4) A simulation facility must demonstrate compliance with the 
requirements of paragraphs (e)(2) and (e)(3) of this section for the 
Commission to accept the simulation facility for conducting initial 
examinations as described in Sec.  57.424(b), requalification training 
as described in Sec.  57.424(c), or performing control manipulations 
that affect reactivity to establish eligibility for an operator or 
senior operator license as described in Sec.  57.423(a).
    (f) Waiver of examination requirement. On application, the 
Commission may waive any or all of the requirements for an initial 
licensing examination if it finds that the applicant has demonstrated 
the required knowledge, skills, and abilities to safely operate the 
plant, and is capable of continuing to do so. The Commission may make 
such a finding based on demonstration of the following:
    (1) Recent operating experience at a comparable facility;

[[Page 23757]]

    (2) Proof of the applicant's past competent and safe performance; 
and
    (3) Proof of the applicant's current qualifications.
    (g) Proficiency. The facility licensee must develop, implement, and 
maintain a proficiency program to ensure that operators and senior 
operators will actively perform the functions of an operator or senior 
operator, respectively, as needed to maintain proficiency with on-shift 
duties and familiarity with plant status. This program must include 
those steps that will be taken to re-establish proficiency when it 
cannot be maintained. This program must be approved by the Commission 
as part of its approval of the operating license for the plant.
    (h) Records. Each record required by this section must be legible 
throughout the retention period specified by each Commission 
regulation. The record may be the original, a reproduced copy, or an 
electronic copy provided that the copy is authenticated by authorized 
personnel.


Sec.  57.425  Conditions of operator and senior operator licenses.

    Each operator and senior operator license contains and is subject 
to the following conditions whether stated in the license or not:
    (a) Neither the license nor any right under the license may be 
assigned or otherwise transferred.
    (b) The license is limited to the facility or facilities for which 
it is issued.
    (c) The license is limited to those controls of the facility or 
facilities specified in the license.
    (d) The license is subject to, and the licensee must observe, all 
applicable rules, regulations, and orders of the Commission.
    (e) The licensee must maintain or re-establish proficiency in 
accordance with the facility licensee's Commission-approved proficiency 
program required under Sec.  57.424(g).
    (f) The licensee must be subject to the facility's Commission-
approved operator licensing requalification and requalification 
examination programs required under Sec.  57.424(c).
    (g) The licensee must have a biennial medical examination as 
described by Sec.  57.421.
    (h) The licensee must notify the Commission within 30 days about a 
conviction for a felony.
    (i) The licensee must not consume or ingest alcoholic beverages 
within the protected area of nuclear plants. The licensee must not use, 
possess, or sell any illegal drugs. The licensee must not perform 
activities authorized by a license issued under this part while under 
the influence of alcohol or any prescription, over-the-counter, or 
illegal substance that could adversely affect his or her ability to 
safely and competently perform his or her licensed duties. For the 
purpose of this paragraph (i), with respect to alcoholic beverages and 
drugs, the term ``under the influence'' means the licensee exceeded, as 
evidenced by a confirmed test result, the lower of the cutoff levels 
for drugs or alcohol contained in 10 CFR part 26, or as established by 
the facility licensee. The term ``under the influence'' also means the 
licensee could be mentally or physically impaired as a result of 
substance use including prescription and over-the-counter drugs, as 
determined under the provisions, policies, and procedures established 
by the facility licensee for its fitness-for-duty program, in such a 
manner as to adversely affect his or her ability to safely and 
competently perform licensed duties.
    (j) Each licensee must participate in the drug and alcohol testing 
programs as required under 10 CFR part 26.
    (k) The licensee must comply with any other conditions that the 
Commission may impose to protect health or to minimize danger to life 
or property.


Sec.  57.426  Issuance, modification, and revocation of operator and 
senior operator licenses.

    (a) Issuance of operator and senior operator licenses. If the 
Commission determines that an applicant for an operator license or a 
senior operator license demonstrates compliance with the requirements 
of the AEA and its regulations, it will issue a license in the form and 
containing any conditions and limitations it considers appropriate and 
necessary.
    (b) Modification and revocation of operator and senior operator 
licenses.
    (1) The terms and conditions of all operator and senior operator 
licenses are subject to amendment, revision, or modification by reason 
of rules, regulations, or orders issued in accordance with the AEA or 
any amendments thereto.
    (2) Any license may be revoked, suspended, or modified, in whole or 
in part--
    (i) For any material false statement in the application or in any 
statement of fact required under section 182 of the AEA;
    (ii) Because of conditions revealed by the application or statement 
of fact or any report, record, inspection, or other means that would 
warrant the Commission to refuse to grant a license on an original 
application;
    (iii) For willful violation of, or failure to observe, any of the 
terms and conditions of the AEA or the license, or of any rule, 
regulation, or order of the Commission;
    (iv) For any conduct determined by the Commission to be a hazard to 
safe operation of the facility; or
    (v) For the sale, use, or possession of illegal drugs, or refusal 
to participate in the facility drug and alcohol testing program, or a 
confirmed positive test for drugs, drug metabolites, or alcohol in 
violation of the conditions and cutoff levels established by Sec.  
57.425(i) or the consumption of alcoholic beverages within the 
protected area of nuclear plants, or a determination of unfitness for 
scheduled work as a result of the consumption of alcoholic beverages.


Sec.  57.427  Expiration of operator and senior operator licenses.

    Each operator license and senior operator license expires upon 
termination of employment with the facility licensee, or upon 
determination by the facility licensee that the licensed individual no 
longer needs to maintain a license. The facility licensee shall notify 
the Commission, as described in Sec.  57.392, within 30 days of either 
occurrence. An operator license or senior operator license also expires 
upon the Commission's determination that a licensed individual's 
general medical condition does not meet the minimum standards under 
Sec.  57.423(b)(1)(i) and that the medical condition cannot be 
accommodated.


Sec.  57.429  Training and qualification for non-licensed personnel.

    (a) The regulations within this section address personnel training 
requirements and are applicable to all applicants for or holders of an 
operating license under this part.
    (b) Prior to initial fuel load (or, for a fueled manufactured 
reactor, prior to initiating the removal of the features to prevent 
criticality), each holder of an operating license under this part must, 
with sufficient time to provide trained and qualified personnel to 
operate the facility, establish, implement, and maintain a training 
program that demonstrates compliance with the requirements of 
paragraphs (c) and (d) of this section.
    (c) The training program must be derived from a systems approach to 
training as defined in Sec.  57.390 and must provide, at a minimum, for 
the training and qualification of the following categories of nuclear 
plant personnel:
    (1) Supervisors (e.g., shift supervisors);

[[Page 23758]]

    (2) Technicians (e.g., maintenance, chemistry, and radiological); 
and
    (3) Other appropriate operating personnel (e.g., auxiliary 
operators and certified fuel handlers).
    (d) The training program must incorporate the instructional 
requirements necessary to provide qualified personnel to operate 
components of a nuclear plant and maintain the facility in a safe 
manner in all modes of operation. The training program must be 
developed to be in compliance with the facility license, including all 
technical specifications and applicable regulations.
    (1) The training program must be periodically evaluated and revised 
as appropriate to reflect industry experience and relevant changes, 
including changes to the facility, procedures, regulations, and quality 
assurance requirements. The training program must be periodically 
reviewed by facility licensee management for effectiveness.
    (2) Sufficient records must be maintained by the facility licensee 
to maintain program integrity and kept available for NRC inspection to 
verify the adequacy of the training program.

Subpart Q--Reporting and Other Administrative Requirements


Sec.  57.430  Maintenance of records, making of reports.

    (a) Each holder of a manufacturing license, operating license, or 
construction permit must maintain all records and make all reports, in 
connection with the activity, as may be required by the conditions of 
the license or permit or by the regulations and orders of the 
Commission in effectuating the purposes of the AEA and the Energy 
Reorganization Act of 1974, as amended. Reports must be submitted in 
accordance with Sec.  57.4.
    (b) Records that are required by this part, by license condition, 
or by technical specifications must be retained for the period 
specified by the appropriate regulation, license condition, or 
technical specification. If a retention period is not otherwise 
specified, these records must be retained until the Commission 
terminates the facility license.
    (c) Records that must be retained under this part may be the 
original or a reproduced copy or a microform if the reproduced copy or 
microform is duly authenticated by authorized personnel and the 
microform is capable of producing a clear and legible copy after 
storage for the period specified by Commission regulations. The record 
may also be stored in electronic media with the capability of producing 
legible, accurate, and complete records during the required retention 
period. Records such as letters, drawings, and specifications, must 
include all pertinent information such as stamps, initials, and 
signatures. The licensee must maintain adequate safeguards against 
tampering with and loss of records.
    (d) Each licensee must keep records of information important to the 
decommissioning of the facility in accordance with the requirements of 
10 CFR 50.75(g).
    (e) If there is a conflict between the Commission's regulations in 
this part, license condition, or technical specification, or other 
written Commission approval or authorization pertaining to the 
retention period for the same type of record, the retention period 
specified in the regulations of this part for such records must apply 
unless the Commission, pursuant to Sec.  57.9 of this part, has granted 
a specific exemption from the record retention requirements in the 
regulations of this part.
    (f) Each licensee must notify the Commission as specified in Sec.  
57.4, of successfully completing startup testing, as applicable, within 
30 calendar days of completing the testing.


Sec.  57.435  Reporting requirements.

    (a) Reporting methods. Licensees under this part must make reports 
required by paragraphs (b) and (c) of this section by telephone or any 
other method that will ensure that a report is made as soon as possible 
to the NRC Headquarters Operations Center at the numbers specified in 
appendix A to part 73 of this chapter.
    (b) Events for notification--
    (1) One-hour reports. The licensee must notify the NRC as soon as 
possible and in all cases within 1 hour of the occurrence of any of the 
following:
    (i) Any event resulting in activation of the emergency plan.
    (ii) Any deviation from the plant's Technical Specifications 
authorized pursuant to Sec.  57.399(g) of this part.
    (2) Four-hour reports. If not reported under paragraph (b)(1) of 
this section, the licensee must notify the NRC as soon as possible, and 
in all cases, within 4 hours of the occurrence of any of the following:
    (i) The initiation of any nuclear plant shutdown required by the 
plant's Technical Specifications.
    (ii) Any event or condition that results in actuation of the 
reactor protection system when the reactor is critical except when the 
actuation results from and is part of a pre-planned sequence during 
testing or reactor operation.
    (iii) Any event or condition that results in an unplanned actuation 
of a safety-related cooling system.
    (iv) Any event or condition that results in an unplanned movement 
of, change of state in, or chemical interaction involving a significant 
amount of radioactive material within the nuclear plant.
    (v) Any event or situation, related to the health and safety of the 
public or onsite personnel, or protection of the environment, for which 
a news release is planned or notification to other government agencies 
has been or will be made. Such an event may include an onsite fatality 
or inadvertent release of radioactively contaminated materials.
    (3) Eight-hour reports. If not reported under paragraphs (b)(1) or 
(b)(2) of this section, the licensee must notify the NRC as soon as 
possible and in all cases within 8 hours of the occurrence of any of 
the following:
    (i) Any event or condition that results in--
    (A) The condition of the nuclear plant, including its principal 
safety barriers, being seriously degraded; or
    (B) The nuclear plant being in an unanalyzed condition that 
significantly degrades plant safety.
    (ii) Any event or condition that results in valid actuation of a 
safety-related system, except when the actuation results from and is 
part of a pre-planned sequence during testing or reactor operation.
    (iii) Any event or condition that at the time of discovery could 
have prevented the fulfillment of the safety function of structures or 
systems that are needed to--
    (A) Shut down the reactor and maintain it in a safe shutdown 
condition;
    (B) Remove residual heat;
    (C) Control the release of radioactive material; or
    (D) Mitigate the consequences of an accident.
    (iv) Events covered in paragraph (b)(3)(iii) of this section may 
include one or more procedural errors, equipment failures, and/or 
discovery of design, analysis, fabrication, construction, and/or 
procedural inadequacies. However, individual component failures need 
not be reported pursuant to paragraph (b)(3)(iii) of this section if 
redundant equipment in the same system was operable and available to 
perform the required safety function.
    (v) Any event requiring the transport of a radioactively 
contaminated person to an offsite medical facility for treatment.

[[Page 23759]]

    (c) Follow-up notification: With respect to the notifications made 
under paragraph (b) of this section, in addition to making the required 
initial notification, each licensee must, during the course of the 
event--
    (1) Immediately report:
    (i) Any further degradation in the level of safety of the plant or 
other worsening plant conditions, including those that require 
activation of the emergency plan, if such a declaration has not been 
previously made,
    (ii) Any escalation in emergency response measures has been 
necessitated, and
    (iii) Termination of an emergency event.
    (2) Immediately Report:
    (i) The results of ensuing evaluations or assessments of plant 
conditions,
    (ii) The effectiveness of response or protective measures taken, 
and
    (iii) Important information related to plant behavior that is not 
understood.
    (3) Maintain an open, continuous communication channel with the NRC 
Operation Center upon request by the NRC. *Other requirements for 
immediate notification of the NRC by licensed operating nuclear plants 
are contained elsewhere in this chapter, in particular, Sec. Sec.  
20.1906, 20.2202, 72.216, 73.71, and 73.77 of this chapter.


Sec.  57.440  Licensee event report system.

    (a) Reportable events.
    (1) Each licensee holding an operating license under this part must 
submit a licensee event report for any event of the type described in 
this section within 60 days after discovery of the event. In the case 
of an invalid actuation reported under Sec.  57.440(a)(2)(iv)(B), other 
than automatic reactor shutdown when the reactor is critical, the 
licensee may, at its option, provide a telephone notification to the 
NRC Operations Center within 60 days after discovery of the event 
instead of submitting a written licensee event report. Unless otherwise 
specified in this section, the licensee must report an event if it 
occurred within 3 years of the date of discovery regardless of the 
plant mode or power level, and regardless of the significance of the 
structure, system, or component that initiated the event.
    (2) The licensee must report--
    (i) The completion of any nuclear plant shutdown required by the 
plant's Technical Specifications.
    (ii) Any operation or condition that was prohibited by the plant's 
Technical Specifications except when--
    (A) The Technical Specification is administrative in nature;
    (B) The event consisted solely of a case of a late surveillance 
test where the oversight was corrected, the test was performed, and the 
equipment was found to be capable of performing its specified safety 
functions; or
    (C) The Technical Specification was revised prior to discovery of 
the event such that the operation or condition was no longer prohibited 
at the time of the event.
    (iii) Any deviation from the plant's Technical Specifications 
authorized pursuant to Sec.  57.399(g) of this part.
    (iv) Any event or condition that resulted in--
    (A) The condition of the nuclear plant, including its principal 
safety barriers, being seriously degraded; or
    (B) The nuclear plant being in an unanalyzed condition that 
significantly degraded plant safety.
    (v) Any natural phenomena or other external condition that posed an 
actual threat to the safety of the nuclear plant or significantly 
hampered site personnel in the performance of duties necessary for the 
safe operation of the nuclear plant.
    (vi) Any event or condition that resulted in manual or automatic 
actuation of a safety-related system, except when--
    (A) The actuation resulted from and was part of a pre-planned 
sequence during testing; or
    (B) The actuation was invalid and--
    (1) Occurred while the system was properly removed from service; or
    (2) Occurred after the safety function had been already completed.
    (vii) Any event or condition that could have prevented the 
fulfillment of the safety function of structures or systems that are 
needed to--
    (A) Shut down the reactor and maintain it in a safe shutdown 
condition;
    (B) Remove residual heat;
    (C) Control the release of radioactive material; or
    (D) Mitigate the consequences of an accident.
    (viii) Events covered in paragraph (a)(2)(v) of this section may 
include one or more procedural errors, equipment failures, and/or 
discovery of design, fabrication, construction, and/or procedural 
inadequacies. However, individual component failures need not be 
reported pursuant to paragraph (a)(2)(v) of this section if any other 
equipment was operable and available to perform the required safety 
function.
    (ix) Any event where a single cause or condition caused at least 
one independent train or channel to become inoperable in multiple 
systems or two independent trains or channels to become inoperable in a 
single system designed to--
    (A) Shut down the reactor and maintain it in a safe shutdown 
condition;
    (B) Remove residual heat;
    (C) Control the release of radioactive material; or
    (D) Mitigate the consequences of an accident.
    (x) Any of the following types of releases--
    (A) Airborne radioactive release that, when averaged over a time 
period of 1 hour, resulted in airborne radionuclide concentrations in 
an unrestricted area that exceeds 20 times the applicable concentration 
limits specified in appendix B to part 20 of this chapter, table 2, 
column 1.
    (B) Liquid effluent release that, when averaged over a time period 
of 1 hour, exceeds 20 times the applicable concentrations specified in 
appendix B to part 20 of this chapter, table 2, column 2, at the point 
of entry into the receiving waters (i.e., unrestricted area) for all 
radionuclides except tritium and dissolved noble gases.
    (xi) Any event or condition that as a result of a single cause 
could have prevented the fulfillment of a safety function for two or 
more trains or channels in different systems that are needed to--
    (A) Shut down the reactor and maintain it in a safe shutdown 
condition;
    (B) Remove residual heat;
    (C) Control the release of radioactive material; or
    (D) Mitigate the consequences of an accident.
    (xii) Events covered in paragraph (a)(2)(ix)(A) of this section may 
include cases of procedural error, equipment failure, and/or discovery 
of a design, analysis, fabrication, construction, and/or procedural 
inadequacy. However, licensees are not required to report an event 
pursuant to paragraph (a)(2)(ix)(A) of this section if the event 
results from--
    (A) A shared dependency among trains or channels that is a natural 
or expected consequence of the approved plant design; or
    (B) Normal and expected wear or degradation.
    (xiii) Any event that posed an actual threat to the safety of the 
nuclear plant or significantly hampered site personnel in the 
performance of duties necessary for the safe operation of the plant, 
including fires, toxic gas releases, or radioactive releases.
    (b) Contents. The licensee event report must contain--
    (1) A brief abstract describing the major occurrences during the 
event, including all component or system failures that contributed to 
the event

[[Page 23760]]

and significant corrective action taken or planned to prevent 
recurrence.
    (2) A specific description of the event as follows:
    (i) A clear, specific narrative description of what occurred so 
that knowledgeable readers conversant with the design of nuclear 
plants, but not familiar with the details of a particular plant, can 
understand the complete event.
    (ii) The narrative description must include the following specific 
information as appropriate for the particular event:
    (A) Plant operating conditions before the event.
    (B) Status of structures, components, or systems that were 
inoperable at the start of the event and that contributed to the event.
    (C) Dates and approximate time of the occurrences.
    (D) The cause of each component or system failure or personnel 
error, if known.
    (E) The failure mode, mechanism, and effect of each failed 
component, if known.
    (F) For failures of components with multiple functions, include a 
list of systems or secondary functions that were also affected.
    (G) For failure that rendered a train of a safety system 
inoperable, an estimate of the elapsed time from the discovery of the 
failure until the train was returned to service.
    (H) The method of discovery of each component or system failure or 
procedural error.
    (I) For each human performance related root cause, the licensee 
must discuss the cause(s) and circumstances.
    (J) Automatically and manually initiated safety system responses.
    (K) The manufacturer and model number (or other identification) of 
each component that failed during the event.
    (3) An assessment of the safety consequences and implications of 
the event. This assessment must include--
    (i) The availability of systems or components that could have 
performed the same function as the components and systems that failed 
during the event, and
    (ii) For events that occurred when the reactor was shut down, the 
availability of systems or components that are needed to shut down the 
reactor and maintain safe shutdown conditions, remove residual heat, 
control the release of radioactive material, or mitigate the 
consequences of an accident.
    (4) A description of any corrective actions planned as a result of 
the event, including those to reduce the likelihood of similar events 
occurring in the future.
    (5) Reference to any previous similar events at the same plant that 
are known to the licensee.
    (6) The name and contact information of a person within the 
licensee's organization who is knowledgeable about the event and can 
provide additional information concerning the event and the plant's 
characteristics.
    (c) Supplemental Information: The Commission may require the 
licensee to submit specific additional information beyond that required 
by paragraph (b) of this section if the Commission finds that 
supplemental material is necessary for complete understanding of an 
unusually complex or significant event. These requests for supplemental 
information will be made in writing and the licensee must submit, as 
specified in Sec.  57.4, the requested information as a supplement to 
the initial licensee event report.
    (d) Submission of Reports: Licensee event reports must be prepared 
on Form NRC 366 and submitted to the NRC, as specified in Sec.  57.4.
    (e) Report Legibility: The reports and copies that licensees are 
required to submit to the Commission under the provisions of this 
section must be of sufficient quality to permit legible reproduction 
and micrographic processing.


Sec.  57.445  Reports of radiation exposure to members of the public.

    (a) Each holder of an operating license must submit a report to the 
Commission annually that specifies the quantity of each of the 
principal radionuclides released to unrestricted areas in liquid and in 
gaseous effluents during the previous 12 months. In addition, the 
report must include an estimate of the dose received by the maximally 
exposed member of the public in an unrestricted area from effluents and 
direct radiation from contained sources during the previous 12 months 
and include any other information as may be required by the Commission 
to estimate maximum potential annual radiation doses to the public. If 
the TEDE to members of the public in unrestricted areas during the 
reporting period is greater than 10 mrem/year TEDE, the report must 
specify the causes for exceedance and describe any corrective actions.
    (b) The reports required by this section must be submitted as 
specified in Sec.  57.4, and the time between submission of the reports 
must be no longer than 12 months.

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

0
95. The authority citation for 10 CFR part 70 continues to read as 
follows:

    Authority:  Atomic Energy Act of 1954, secs. 51, 53, 57(d), 108, 
122, 161, 182, 183, 184, 186, 187, 193, 223, 234, 274, 1701 (42 
U.S.C. 2071, 2073, 2077(d), 2138, 2152, 2201, 2232, 2233, 2234, 
2236, 2237, 2243, 2273, 2282, 2021, 2297f); Energy Reorganization 
Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 
5851); Nuclear Waste Policy Act of 1982, secs. 135, 141 (42 U.S.C. 
10155, 10161); 44 U.S.C. 3504 note.


Sec.  70.20a  [Amended]

0
96. In Sec.  70.20a, in paragraph (b) add the number ``57,'' in 
sequential order.
0
97. In Sec.  70.22, revise paragraphs (b), (h)(1), (j)(1), and (k) to 
read as follows:


Sec.  70.22  Contents of applications.

* * * * *
    (b) Each application for a license to possess special nuclear 
material, to possess equipment capable of enriching uranium, to operate 
an uranium enrichment facility, to possess and use at any one time and 
location special nuclear material in a quantity exceeding one effective 
kilogram, except for applications for use as sealed sources and for 
those uses involved in the operation of a nuclear reactor licensed 
pursuant to part 50 or part 57 of this chapter and those involved in a 
waste disposal operation, must contain a full description of the 
applicant's program for control and accounting of such special nuclear 
material or enrichment equipment that will be in the applicant's 
possession under license to show how compliance with the requirements 
of Sec.  74.31, 74.33, 74.41, or 74.51 of this chapter, as applicable, 
will be accomplished.
* * * * *
    (h)(1) Each application for a license to possess or use, at any 
site or contiguous sites subject to licensee control, a formula 
quantity of strategic special nuclear material, as defined in Sec.  
70.4, other than a license for possession or use of this material in 
the operation of a nuclear reactor licensed pursuant to part 50 or part 
57 of this chapter, must include a physical security plan. The plan 
must describe how the applicant will meet the applicable requirements 
of part 73 of this chapter in the conduct of the activity to be 
licensed, including the identification and description of jobs as 
required by 10 CFR 11.11(a). The plan must list tests, inspections, 
audits, and other means to be used to demonstrate compliance with the 
requirements of 10 CFR parts 11 and 73, if applicable.
* * * * *
    (j)(1) Each application for a license to possess or use at any site 
or contiguous sites subject to control by the licensee uranium-235 
(contained in uranium enriched to 20 percent or more in the uranium-235 
isotope), uranium-233, or

[[Page 23761]]

plutonium alone or in any combination in a quantity of 5,000 grams or 
more computed by the formula, grams = (grams contained U--235) + 2.5 
(grams U-233 + grams plutonium) other than a license for possession or 
use of this material in the operation of a nuclear reactor licensed 
pursuant to part 50 or part 57 of this chapter, must include a licensee 
safeguards contingency plan for dealing with threats, thefts, and 
radiological sabotage, as defined in part 73 of this chapter, relating 
to nuclear facilities licensed under part 50 of this chapter or to the 
possession of special nuclear material licensed under this part.
* * * * *
    (k) Each application for a license to possess or use at any site or 
contiguous sites subject to licensee control, special nuclear material 
of moderate strategic significance or 10 kg or more of special nuclear 
material of low strategic significance as defined under Sec.  70.4, 
other than a license for possession or use of this material in the 
operation of a nuclear power reactor licensed pursuant to part 50 or 
part 57 of this chapter, must include a physical security plan that 
demonstrates how the applicant plans to meet the requirements of 
paragraphs (d), (e), (f), and (g) of Sec.  73.67 of this chapter, as 
appropriate. The licensee shall retain a copy of this physical security 
plan as a record for the period during which the licensee possesses the 
appropriate type and quantity of special nuclear material under each 
license, and if any portion of the plan is superseded, retain that 
superseded portion of the plan for 3 years after the effective date of 
the change.
* * * * *
0
98. In Sec.  70.32, revise the introductory text of paragraph (c)(1) 
and paragraph (d) to read as follows:


Sec.  70.32  Conditions of licenses.

* * * * *
    (c)(1) Each license authorizing the possession and use at any one 
time and location of uranium source material at an uranium enrichment 
facility or special nuclear material in a quantity exceeding one 
effective kilogram, except for use as sealed sources and those uses 
involved in the operation of a nuclear reactor licensed pursuant to 
part 50 or part 57 of this chapter and those involved in a waste 
disposal operation, shall contain and be subject to a condition 
requiring the licensee to maintain and follow:
* * * * *
    (d) The licensee shall make no change which would decrease the 
effectiveness of the plan for physical protection of special nuclear 
material in transit prepared pursuant to Sec.  70.22(g) or Sec.  
73.20(c) of this chapter without the prior approval of the Commission. 
A licensee desiring to make such changes shall submit an application 
for a change in the technical specifications incorporated in his or her 
license, if any, or for an amendment to the license pursuant to Sec.  
50.90, Sec.  57.310, or Sec.  70.34 of this chapter, as appropriate. 
The licensee may make changes to the plan for physical protection of 
special nuclear material without prior Commission approval if these 
changes do not decrease the effectiveness of the plan. The licensee 
shall retain a copy of the plan as a record for the period during which 
the licensee possesses a formula quantity of special nuclear material 
requiring this record under each license and each change to the plan 
for three years from the effective date of the change. Within two 
months after each change, a report containing a description of the 
change must be furnished to the Director of the NRC's Office of Nuclear 
Material Safety and Safeguards, using an appropriate method listed in 
Sec.  70.5(a); and a copy must be sent to the appropriate NRC Regional 
Office shown in appendix A to part 73 of this chapter.
* * * * *
0
99. In Sec.  70.50, revise paragraph (d) to read as follows:


Sec.  70.50  Reporting requirements.

* * * * *
    (d) The provisions of Sec.  70.50 do not apply to licensees subject 
to Sec.  50.72 or Sec.  57.435 of this chapter. They do apply to those 
10 CFR part 50 or part 57 licensees possessing material licensed under 
10 CFR part 70 that are not subject to the notification requirements in 
Sec.  50.72 or Sec.  57.435 of this chapter, respectively.

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF 
SPENT NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE, AND REACTOR-
RELATED GREATER THAN CLASS C WASTE

0
100. The authority citation for 10 CFR part 72 continues to read as 
follows:

    Authority: Atomic Energy Act of 1954, secs. 51, 53, 57, 62, 63, 
65, 69, 81, 161, 182, 183, 184, 186, 187, 189, 223, 234, 274 (42 
U.S.C. 2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2210e, 
2232, 2233, 2234, 2236, 2237, 2238, 2273, 2282, 2021); Energy 
Reorganization Act of 1974, secs. 201, 202, 206, 211 (42 U.S.C. 
5841, 5842, 5846, 5851); National Environmental Policy Act of 1969 
(42 U.S.C. 4332); Nuclear Waste Policy Act of 1982, secs. 117(a), 
132, 133, 134, 135, 137, 141, 145(g), 148, 218(a) (42 U.S.C. 
10137(a), 10152, 10153, 10154, 10155, 10157, 10161, 10165(g), 10168, 
10198(a)); 44 U.S.C. 3504 note.
0
101. In Sec.  72.3, revise the definition for ``Independent spent fuel 
storage installation or ISFSI'' to read as follows:


Sec.  72.372.3  Definitions.

* * * * *
    Independent spent fuel storage installation or ISFSI means a 
complex designed and constructed for the interim storage of spent 
nuclear fuel, solid reactor-related GTCC waste, and other radioactive 
materials associated with spent fuel and reactor-related GTCC waste 
storage. An ISFSI that is located on the site of another facility 
licensed under this part or a facility licensed under part 50 or part 
57 of this chapter and shares common utilities and services with that 
facility or is physically connected with that other facility may still 
be considered independent.
* * * * *
0
102. In Sec.  72.30, revise paragraph (e)(5) to read as follows:


Sec.  72.30  Financial assurance and recordkeeping for decommissioning.

* * * * *
    (e) * * *
    (5) In the case of licensees who are issued a power reactor license 
under part 50 or part 57 of this chapter or ISFSI licensees who are an 
electric utility, as defined in part 50 or part 57 of this chapter, 
with a specific license issued under this part, the methods of Sec.  
50.75(b), (e), and (h) or Sec.  57.55(i) of this chapter, as 
applicable. In the event that funds remaining to be placed into the 
licensee's ISFSI decommissioning external sinking fund are no longer 
approved for recovery in rates by a competent rate making authority, 
the licensee must make changes to provide financial assurance using one 
or more of the methods stated in paragraphs (1) through (4) of this 
section.
* * * * *


Sec.  72.40  [Amended]

0
103. In Sec.  72.40, in paragraph (c), remove the phrase ``of this 
chapter,'' and add in its place the phrase ``or part 57 of this 
chapter,''.
0
104. In Sec.  72.75, revise paragraph (i)(1)(ii) to read as follows:


Sec.  72.75  Reporting requirements for specific events and conditions.

* * * * *
    (i) * * *
    (1) * * *
    (ii) Licensees issued a general license under Sec.  72.210, after 
the licensee has

[[Page 23762]]

placed spent fuel on the ISFSI storage pad (if the ISFSI is located 
inside the collocated protected area, for a reactor licensed under part 
50 or part 57 of this chapter) or after the licensee has transferred 
spent fuel waste outside the reactor licensee's protected area to the 
ISFSI storage pad (if the ISFSI is located outside the collocated 
protected area, for a reactor licensed under part 50 or part 57 of this 
chapter).
* * * * *


Sec.  72.184  [Amended]

0
105. In Sec.  72.184, in paragraph (a) remove the phrase ``of this 
chapter'' and add in its place the phrase ``or part 57 of this 
chapter''.
0
106. Revise Sec.  72.210 to read as follows:


Sec.  72.210  General license issued.

    A general license is hereby issued for the storage of spent fuel in 
an independent spent fuel storage installation at power reactor sites 
to persons authorized to possess or operate nuclear power reactors 
under 10 CFR part 50, 52, or 57.
0
107. In Sec.  72.212, revise paragraph (b)(8) to read as follows:


Sec.  72.212  Conditions of general license issued under Sec.  72.210.

* * * * *
    (b) * * *
    (8) Before use of the general license, determine whether activities 
related to storage of spent fuel under this general license involve a 
change in the facility Technical Specifications or require a license 
amendment for the facility pursuant to Sec.  50.59(c) or Sec.  57.312 
of this chapter. Results of this determination must be documented in 
the evaluations made in paragraph (b)(5) of this section.
* * * * *
0
108. In Sec.  72.218, revise paragraphs (a) and (b) to read as follows:


Sec.  72.218  Termination of licenses.

    (a) The notification regarding the program for the management of 
spent fuel at the reactor required by Sec.  50.54(bb) or Sec.  57.300 
of this chapter must include a plan for removal of the spent fuel 
stored under this general license from the reactor site. The plan must 
show how the spent fuel will be managed before starting to decommission 
systems and components needed for moving, unloading, and shipping this 
spent fuel.
    (b) An application for termination of a reactor operating license 
issued under 10 CFR part 50 and submitted under Sec.  50.82 of this 
chapter, or a combined license issued under 10 CFR part 52 and 
submitted under Sec.  52.110 of this chapter, or an operating license 
issued under 10 CFR part 57 and submitted under Sec.  57.305 of this 
chapter must contain a description of how the spent fuel stored under 
this general license will be removed from the reactor site.
* * * * *

PART 73--PHYSICAL PROTECTION OF PLANTS AND MATERIALS

0
109. The authority citation for 10 CFR part 73 continues to read as 
follows:

    Authority:  Atomic Energy Act of 1954, secs. 53, 147, 149, 161, 
161A, 170D, 170E, 170H, 170I, 223, 229, 234, 1701 (42 U.S.C. 2073, 
2167, 2169, 2201, 2201a, 2210d, 2210e, 2210h, 2210i, 2273, 2278a, 
2282, 2297f); Energy Reorganization Act of 1974, secs. 201, 202 (42 
U.S.C. 5841, 5842); Nuclear Waste Policy Act of 1982, secs. 135, 141 
(42 U.S.C. 10155, 10161); 44 U.S.C. 3504 note.

    Section 73.37(b)(2) also issued under sec. 301, Pub. L. 96-295, 
94 Stat. 789 (42 U.S.C. 5841 note).

0
110. In Sec.  73.1, revise paragraph (b)(1)(i) to read as follows:


Sec.  73.173.1  Purpose and scope.

* * * * *
    (b) * * *
    (1) * * *
    (i) The physical protection of production and utilization 
facilities licensed under part 50, 52, or 57 of this chapter,
* * * * *
0
111. In Sec.  73.2, revise paragraph (a) to read as follows:


Sec.  73.273.2  Definitions.

* * * * *
    (a) Terms defined in parts 50, 52, 57, 70, and 95 of this chapter 
have the same meaning when used in this part.
* * * * *
0
112. In Sec.  73.8 revise paragraph (b) to read as follows:


Sec.  73.873.8  Information collection requirements: OMB approval.

* * * * *
    (b) The approved information collection requirements contained in 
this part appear in Sec. Sec.  73.5, 73.15, 73.17, 73.20, 73.21, 73.24, 
73.25, 73.26, 73.27, 73.37, 73.40, 73.45, 73.46, 73.50, 73.54, 73.55, 
73.56, 73.57, 73.58, 73.60, 73.67, 73.70, 73.72, 73.73, 73.74, 73.77, 
73.110, 73.1200, 73.1205, 73.1210, 73.1215, and appendices B and C to 
this part.
* * * * *
0
113. In Sec.  73.50, revise the introductory text to read as follows:


Sec.  73.50  Requirements for physical protection of licensed 
activities.

    Each licensee who is not subject to Sec.  73.51, but who possesses, 
uses, or stores formula quantities of strategic special nuclear 
material that are not readily separable from other radioactive material 
and which have a total external radiation level in excess of 1 gray 
(100 rad) per hour at a distance of 1 meter (3.3 feet) from any 
accessible surfaces without intervening shielding other than at a 
nuclear reactor facility licensed under part 50, 52, or 57 of this 
chapter, shall comply with the following:
* * * * *
0
114. In Sec.  73.54, revise paragraph (g) to read as follows:


Sec.  73.54  Protection of digital computer and communication systems 
and networks.

* * * * *
    (g) Each licensee that is licensed to operate a nuclear plant under 
10 CFR part 50 or 52 after [INSERT THE EFFECTIVE DATE OF THE FINAL 
RULE] and elects to implement the requirements of this section, and 
each licensee that is licensed to operate a nuclear plant under 10 CFR 
part 57 and elects to implement the requirements of this section, must 
establish and implement cybersecurity reviews to assess the 
effectiveness of the implementation of the cybersecurity program.
    (1) The licensee must review each element of the cybersecurity 
program at a frequency commensurate with the importance or significance 
to safety of plant operations to ensure timely identification and 
documentation of vulnerabilities, improvements, and corrective actions.
    (2) Cybersecurity reviews must be performed by individuals 
independent of those personnel responsible for program management and 
any individual who has direct responsibility for implementing the 
cybersecurity program.
    (3) The licensee must establish and perform self-assessments to 
ensure the effective implementation of the cybersecurity program.
    (4) The results and recommendations of the cybersecurity program 
reviews, management's findings regarding program effectiveness, and any 
actions taken as a result of recommendations from prior program 
reviews, must be documented in a report and must be maintained in an 
auditable form and available for inspection.
* * * * *
0
115. In Sec.  73.56, revise paragraph (a)(3) to read as follows:


Sec.  73.56  Personnel access authorization requirements for nuclear 
power plants.

    (a) * * *
    (3) Each applicant for an operating license under the provisions of 
part 50

[[Page 23763]]

of this chapter, each holder of a combined license under the provisions 
of part 52 of this chapter, and each applicant for an operating license 
under the provisions of part 57 of this chapter that must meet the 
requirements of subpart J of this part, shall implement the 
requirements of this section before fuel is allowed on site (protected 
area).
* * * * *
0
116. In Sec.  73.57, revise paragraph (a)(3) to read as follows:


Sec.  73.57  Requirements for criminal history records checks of 
individuals granted unescorted access to a nuclear power facility, a 
non-power reactor, or access to Safeguards Information.

    (a) * * *
    (3) Before receiving its operating license under part 50 or part 57 
of this chapter or before the Commission makes its finding under Sec.  
52.103(g) of this chapter, each applicant for a license to operate a 
nuclear power reactor (including an applicant for a combined license) 
or a non-power reactor may submit fingerprints for those individuals 
who will require unescorted access to the nuclear power facility or 
non-power reactor facility.
* * * * *
0
117. In Sec.  73.58, revise paragraph (a) to read as follows:


Sec.  73.58  Safety/security interface requirements for nuclear power 
reactors.

    (a) Each operating nuclear power reactor licensee with a license 
issued under part 50, 52, or 57 of this chapter shall comply with the 
requirements of this section.
* * * * *
0
118. In Sec.  73.77, revise paragraphs (a) and (b) to read as follows:


Sec.  73.77  Cyber security event notifications.

    (a) Each licensee subject to the provisions of Sec.  73.54 or Sec.  
73.110 must notify the NRC Headquarters Operations Center of a 
cyberattack that adversely impacted a safety or security function using 
the procedures of Sec.  50.72 or Sec.  57.435 of this chapter or Sec.  
73.1200 based on the function adversely impacted (safety or security).
    (b) If it is later determined that the cause of a previously 
reported event was from a cyberattack, the licensee must inform the NRC 
using one of the following applicable methods:
    (1) Follow-up notification process as specified in Sec.  50.72 or 
Sec.  57.435 of this chapter;
    (2) Significant supplemental information process as specified in 
Sec.  73.1200; or
    (3) Submission of a Licensee Event Report as specified in Sec.  
50.73 or Sec.  57.440 of this chapter.
* * * * *
0
119. Add Sec.  73.110 to subpart I to read as follows:


Sec.  73.110  Cybersecurity program.

    (a) Each licensee that is licensed to operate a nuclear plant under 
10 CFR part 57 and elects to implement the requirements of this 
section, and each licensee that is licensed to operate a nuclear plant 
under 10 CFR part 50 or 52 after [INSERT THE EFFECTIVE DATE OF THE 
FINAL RULE] and elects to implement the requirements of this section, 
must establish, implement, and maintain a cybersecurity program that is 
commensurate with the potential consequences resulting from 
cyberattacks, up to and including the design basis threat as described 
in Sec.  73.1. The cybersecurity program must provide reasonable 
assurance that digital computer and communication systems and networks 
are adequately protected against cyberattacks that are capable of 
causing the following consequences:
    (1) Adversely impacting the safety, security, and emergency 
preparedness functions performed by digital assets that prevent a 
postulated fission product release resulting in offsite doses exceeding 
the values in Sec.  50.34(a)(1)(ii)(D) or 52.47(a)(2)(iv) of this 
chapter, as applicable.
    (2) Adversely impacting the security functions performed by digital 
assets necessary for implementing the physical security requirements in 
Sec.  57.60(a)(8)(v)(A) of this chapter or Sec.  73.55, as applicable.
    (b) To protect digital computer and communication systems and 
networks associated with the functions described in paragraphs (a)(1) 
and (2) of this section (including support systems and equipment that, 
if compromised, adversely impact these functions), the licensee must--
    (1) Analyze the potential consequences resulting from cyberattacks 
on digital computer and communication systems and networks and identify 
those assets that must be protected to demonstrate compliance with 
paragraph (a) of this section; and
    (2) Implement the cybersecurity program in accordance with 
paragraph (d) of this section.
    (c) The licensee must protect the systems and networks identified 
in paragraph (b)(1) of this section in a manner that is commensurate 
with the potential consequences resulting from cyberattacks that:
    (1) Adversely impact the integrity or confidentiality of data and/
or software;
    (2) Deny access to systems, services, and/or data; and
    (3) Adversely impact the operation of systems, networks, and 
associated equipment.
    (d) The cybersecurity program must be designed in a manner that is 
commensurate with the potential consequences resulting from 
cyberattacks through the following steps:
    (1) Implement security controls to protect the assets identified 
under paragraph (b)(1) of this section from cyberattacks, commensurate 
with the assets' safety and security significance;
    (2) Apply and maintain defense in depth protective strategies to 
ensure the capability to detect, delay, respond to, and recover from 
cyberattacks capable of causing the consequences identified in 
paragraph (a) of this section;
    (3) Mitigate the adverse effects of cyberattacks capable of causing 
the consequences identified in paragraph (a) of this section; and
    (4) Ensure that the functions of protected assets identified under 
paragraph (b)(1) of this section are not adversely impacted due to 
cyberattacks.
    (e) The licensee must implement the following requirements in a 
manner that is commensurate with the potential consequences resulting 
from cyberattacks:
    (1) As part of the cybersecurity program, the licensee must comply 
with the requirements in Sec.  73.54(d)(1), (2), and (4), and must 
ensure that modifications to assets, identified under paragraph (b)(1) 
of this section are evaluated before implementation to ensure that the 
cybersecurity performance objectives identified in paragraph (a) of 
this section are maintained.
    (2) The licensee must establish, implement, and maintain a 
cybersecurity plan that implements the cybersecurity program 
requirements of this section.
    (i) The cybersecurity plan must describe how the requirements of 
this section will be implemented and must account for the site-specific 
conditions that affect implementation.
    (ii) The cybersecurity plan must include measures for incident 
response and recovery for cyberattacks. The cybersecurity plan must 
include the analysis identified under paragraph (b)(1) of this section 
and describe how the licensee will--
    (A) Apply and maintain defense in depth protective strategies as 
required in paragraph (d)(2) of this section;

[[Page 23764]]

    (B) Maintain the capability for timely detection and response to 
cyberattacks;
    (C) Mitigate the consequences of cyberattacks;
    (D) Correct exploited vulnerabilities; and
    (E) Restore affected systems, networks, and/or equipment affected 
by cyberattacks.
    (3) The licensee must develop and maintain written policies and 
implementing procedures to implement the cybersecurity plan. Policies, 
implementing procedures, and other supporting technical information 
used by the licensee need not be submitted for Commission review and 
approval as part of the cybersecurity plan but are subject to 
inspection by NRC staff on a periodic basis.
    (4) The licensee must establish and implement cybersecurity reviews 
to assess the effectiveness of the implementation of the cybersecurity 
program.
    (i) The licensee must review each element of the cybersecurity 
program at a frequency commensurate with the importance or significance 
to safety of plant operations to ensure timely identification and 
documentation of vulnerabilities, improvements, and corrective actions.
    (ii) Cybersecurity reviews must be performed by individuals 
independent of those personnel responsible for program management and 
any individual who has direct responsibility for implementing the 
cybersecurity program.
    (iii) The licensee must establish and perform self-assessments to 
ensure the effective implementation of the cybersecurity program.
    (iv) The results and recommendations of the cybersecurity program 
reviews, management's findings regarding program effectiveness, and any 
actions taken as a result of recommendations from prior program 
reviews, must be documented in a report and must be maintained in an 
auditable form and available for inspection.
    (5) The licensee must retain all records and supporting technical 
documentation required to demonstrate compliance with the requirements 
of this section as a record until the Commission terminates the license 
for which the records were developed and must maintain superseded 
portions of these records for at least three (3) years after the record 
is superseded, unless otherwise specified by the Commission.
0
120. In Sec.  73.1200, revise introductory text of paragraphs (a), 
(c)(1), and (e)(1), revise paragraph (e)(4), and introductory text of 
paragraph (g)(1) to read as follows:


Sec.  73.1200  Notification of physical security events.

    (a) 15-minute notifications--facilities. Each licensee subject to 
the provisions of Sec.  73.20, Sec.  73.45, Sec.  73.46, Sec.  73.51, 
Sec.  73.55, or subpart J of part 57 of this chapter, must notify the 
NRC Headquarters Operations Center, as soon as possible but within 15 
minutes after--
* * * * *
    (c) * * *
    (1) Each licensee subject to the provisions of Sec.  73.20, Sec.  
73.45, Sec.  73.46, Sec.  73.50, Sec.  73.51, Sec.  73.55, Sec.  73.60, 
Sec.  73.67, or subpart J of part 57 of this chapter, must notify the 
NRC Headquarters Operations Center as soon as possible but no later 
than 1 hour after the time of discovery of the following significant 
facility security events involving--
* * * * *
    (e) * * *
    (1) Each licensee subject to the provisions of Sec.  73.20, Sec.  
73.45, Sec.  73.46, Sec.  73.50, Sec.  73.51, Sec.  73.55, Sec.  73.60, 
Sec.  73.67, or subpart J of part 57 of this chapter, must notify the 
NRC Headquarters Operations Center within 4 hours after time of 
discovery of the following facility security events involving--
* * * * *
    (4) For licensees subject to the provisions of Sec.  73.55 or 
subpart J of part 57 of this chapter, an event involving the licensee's 
suspension of security measures.
* * * * *
    (g) * * *
    (1) Each licensee subject to the provisions of Sec.  73.20, Sec.  
73.45, Sec.  73.46, Sec.  73.50, Sec.  73.51, Sec.  73.55, Sec.  73.60, 
Sec.  73.67, or subpart J of part 57 of this chapter, must notify the 
NRC Headquarters Operations Center within 8 hours after time of 
discovery of the following facility security program failures 
involving--
* * * * *
    (iv) For licensees subject to the provisions of Sec.  73.77, a 
cybersecurity event that impacted the ability of the facility's SSCs to 
perform their intended security functions.
* * * * *
0
121. In Sec.  73.1205, revise paragraph (b)(2) to read as follows:


Sec.  73.1205  Written follow-up reports of physical security events.

* * * * *
    (b) * * *
    (2)(i) Licensees subject to Sec.  50.73 or subpart J of part 57 of 
this chapter must prepare the written follow-up report on NRC Form 366.
    (ii) Licensees not subject to Sec.  50.73 or subpart J of part 57 
of this chapter must prepare the written follow-up report in a letter 
format.
* * * * *
0
122. In Sec.  73.1210, revise paragraphs (a)(1) and (b)(3)(i) to read 
as follows:


Sec.  73.1210  Recordkeeping of physical security events.

    (a) * * *
    (1) Licensees with facilities or shipment activities subject to the 
provisions of Sec.  73.20, Sec.  73.25, Sec.  73.26, Sec.  73.27, Sec.  
73.37, Sec.  73.45, Sec.  73.46, Sec.  73.50, Sec.  73.51, Sec.  73.55, 
Sec.  73.60, Sec.  73.67, or subpart J of part 57 of this chapter, must 
record the physical security events and conditions adverse to security 
that are specified in paragraphs (c) through (f) of this section.
* * * * *
    (b) * * *
    (3)(i) Licensees must record these physical security events and 
conditions adverse to security in either a stand-alone safeguards event 
log or as part of the licensee's corrective action program, as 
specified under the applicable quality assurance program provisions of 
parts 50, 52, 57, 60, 63, 70, and 72 of this chapter, or both.
* * * * *
0
123. In Sec.  73.1215, revise introductory text of paragraph (d)(1) to 
read as follows:


Sec.  73.1215  Suspicious activity reports.

* * * * *
    (d) * * *
    (1) For licensees subject to the provisions of Sec.  73.20, Sec.  
73.45, Sec.  73.46, Sec.  73.50, Sec.  73.51, Sec.  73.55, Sec.  73.60, 
Sec.  73.67, or subpart J of part 57 of this chapter, the licensees 
must report activities they assess are suspicious. Examples include, 
but are not limited to, the following:
* * * * *
0
124. In appendix B to part 73, revise Definitions introductory text to 
read as follows:

APPENDIX B TO PART 73--GENERAL CRITERIA FOR SECURITY PERSONNEL

* * * * *
    Definitions
    Terms defined in parts 50, 57, 70, and 73 of this chapter have 
the same meaning when used in this appendix.
* * * * *

PART 74--MATERIAL CONTROL AND ACCOUNTING OF SPECIAL NUCLEAR 
MATERIAL

0
125. The authority citation for 10 CFR part 74 continues to read as 
follows:

    Authority: Atomic Energy Act of 1954, secs. 53, 57, 161, 182, 
223, 234, 1701 (42 U.S.C. 2073, 2077, 2201, 2232, 2273, 2282,

[[Page 23765]]

2297f); Energy Reorganization Act of 1974, secs. 201, 202 (42 U.S.C. 
5841, 5842); 44 U.S.C. 3504 note.

0
126. In Sec.  74.31, revise the introductory text of paragraph (a) to 
read as follows:


Sec.  74.31  Nuclear material control and accounting for special 
nuclear material of low strategic significance.

    (a) General performance objectives. Each licensee who is authorized 
to possess and use more than one effective kilogram of special nuclear 
material of low strategic significance, excluding sealed sources, at 
any site or contiguous sites subject to control by the licensee, other 
than a production or utilization facility licensed pursuant to part 50, 
part 57, or part 70 of this chapter, or operations involved in waste 
disposal, shall implement and maintain a Commission-approved material 
control and accounting system that will achieve the following 
objectives:
* * * * *
0
127. In Sec.  74.41, revise the introductory text of paragraph (a) to 
read as follows:


Sec.  74.41  Nuclear material control and accounting for special 
nuclear material of moderate strategic significance.

    (a) General performance objectives. Each licensee who is authorized 
to possess special nuclear material (SNM) of moderate strategic 
significance or SNM in a quantity exceeding one effective kilogram of 
strategic special nuclear material in irradiated fuel reprocessing 
operations other than as sealed sources and to use this material at any 
site other than a nuclear reactor licensed pursuant to part 50 or part 
57 of this chapter; or as reactor irradiated fuels involved in 
research, development, and evaluation programs in facilities other than 
irradiated fuel reprocessing plants; or an operation involved with 
waste disposal, shall establish, implement, and maintain a Commission-
approved material control and accounting (MC&A) system that will 
achieve the following performance objectives:
* * * * *
0
128. In Sec.  74.51, revise the introductory text of paragraph (a) to 
read as follows:


Sec.  74.51  Nuclear material control and accounting for strategic 
special nuclear material.

    (a) General performance objectives. Each licensee who is authorized 
to possess five or more formula kilograms of strategic special nuclear 
material (SSNM) and to use such material at any site, other than a 
nuclear reactor licensed pursuant to part 50 or part 57 of this 
chapter, an irradiated fuel reprocessing plant, an operation involved 
with waste disposal, or an independent spent fuel storage facility 
licensed pursuant to part 72 of this chapter shall establish, 
implement, and maintain a Commission-approved material control and 
accounting (MC&A) system that will achieve the following objectives:
* * * * *

PART 75--SAFEGUARDS ON NUCLEAR MATERIAL--IMPLEMENTATION OF 
SAFEGUARDS AGREEMENTS BETWEEN THE UNITED STATES AND THE 
INTERNATIONAL ATOMIC ENERGY AGENCY

0
129. The authority citation for 10 CFR part 75 continues to read as 
follows:

    Authority: Atomic Energy Act of 1954, secs. 53, 63, 103, 104, 
122, 161, 223, 234, 1701 (42 U.S.C. 2073, 2093, 2133, 2134, 2152, 
2201, 2273, 2282, 2297f); Energy Reorganization Act of 1974, sec. 
201 (42 U.S.C. 5841); Nuclear Waste Policy Act of 1982, secs. 135, 
141 (42 U.S.C. 10155, 10161); 44 U.S.C. 3504 note.

0
130. In Sec.  75.4, revise the introductory text and the definition for 
``Facility'', paragraph (6), to read as follows:


Sec.  75.475.4  Definitions.

    As used in this part:
    Unless otherwise defined in this section, the terms defined in 
Sec. Sec.  40.4, 50.2, 57.3, and 70.4 of this chapter have the same 
meaning when used in this part.
* * * * *
    Facility means:
    (1) * * *
    (6) Any plant or location where the possession of more than 1 
effective kilogram of nuclear material is licensed pursuant to 10 CFR 
part 40, 50, 57, 60, 61, 63, 70, 72, 76, or 150 of this chapter or an 
Agreement State license.
* * * * *

PART 95--FACILITY SECURITY CLEARANCE AND SAFEGUARDING OF NATIONAL 
SECURITY INFORMATION AND RESTRICTED DATA

0
131. The authority citation for 10 CFR part 95 continues to read as 
follows:

    Authority: Atomic Energy Act of 1954, secs. 145, 161, 223, 234 
(42 U.S.C. 2165, 2201, 2273, 2282); Energy Reorganization Act of 
1974, sec. 201 (42 U.S.C. 5841); 44 U.S.C. 3504 note; E.O. 10865, as 
amended, 25 FR 1583, 3 CFR, 1959-1963 Comp., p. 398; E.O. 12829, 58 
FR 3479, 3 CFR, 1993 Comp., p. 570; E.O. 12968, 60 FR 40245, 3 CFR, 
1995 Comp., p. 391; E.O. 13526, 75 FR 707, 3 CFR, 2009 Comp., p. 
298.

0
132. In Sec.  95.5, revise the definition for ``License'' to read as 
follows:


Sec.  95.595.5  Definitions.

* * * * *
    License means a license issued under 10 CFR part 50, 52, 54, 57, 
60, 63, 70, or 72.
* * * * *
0
133. In Sec.  95.39, revise paragraph (a) to read as follows:


Sec.  95.39  External transmission of documents and material.

    (a) Restrictions. Documents and material containing classified 
information received or originated in connection with an NRC license, 
certificate, standard design approval or standard design certification 
under part 52 of this chapter, or NRC license or standard design 
approval under part 57 of this chapter, must be transmitted only to CSA 
approved security facilities.
* * * * *

PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY 
AGREEMENTS

0
134. The authority citation for 10 CFR part 140 continues to read as 
follows:

    Authority: Atomic Energy Act of 1954, secs. 161, 170, 223, 234 
(42 U.S.C. 2201, 2210, 2273, 2282); Energy Reorganization Act of 
1974, secs. 201, 202 (42 U.S.C. 5841, 5842); 44 U.S.C. 3504 note.

0
135. In Sec.  140.2, revise paragraphs (a)(1) and (2) to read as 
follows:


Sec.  140.2140.2  Scope.

    (a) * * *
    (1) To each person who is an applicant for or holder of a license 
issued under 10 CFR part 50, 52, 54, or 57 to operate a nuclear 
reactor, and
    (2) With respect to an extraordinary nuclear occurrence, to each 
person who is an applicant for or holder of a license to operate a 
production facility or a utilization facility (including an operating 
license issued under part 50 or part 57 of this chapter and a combined 
license under part 52 of this chapter), and to other persons 
indemnified with respect to the involved facilities.
* * * * *
0
136. Revise Sec.  140.10 to read as follows:


Sec.  140.10  Scope.

    This subpart applies to each person who is an applicant for or 
holder of a license issued under 10 CFR part 50, 54, or 57 to operate a 
nuclear reactor, or is the applicant for or holder of a combined 
license issued under 10 CFR part 52 or 54, except licenses held by 
persons found by the Commission to be Federal agencies or nonprofit 
educational institutions licensed to

[[Page 23766]]

conduct educational activities. This subpart also applies to persons 
licensed to possess and use plutonium in a plutonium processing and 
fuel fabrication plant.
0
137. In Sec.  140.11, revise paragraph (b) to read as follows:


Sec.  140.11  Amounts of financial protection for certain reactors.

* * * * *
    (b) In any case where a person is authorized under 10 CFR part 50, 
52, 54, or 57 to operate two or more nuclear reactors at the same 
location, the total primary financial protection required of the 
licensee for all such reactors is the highest amount which would 
otherwise be required for any one of those reactors; provided, that 
such primary financial protection covers all reactors at the location.
0
138. In Sec.  140.12, revise paragraph (c) to read as follows:


Sec.  140.12  Amount of financial protection required for other 
reactors.

* * * * *
    (c) In any case where a person is authorized under 10 CFR part 50, 
52, 54, or 57 to operate two or more nuclear reactors at the same 
location, the total financial protection required of the licensee for 
all such reactors is the highest amount which would otherwise be 
required for any one of those reactors; provided, that such financial 
protection covers all reactors at the location.
* * * * *
0
139. Revise Sec.  140.13 to read as follows:


Sec.  140.13  Amount of financial protection required of certain 
holders of construction permits and combined licenses under 10 CFR part 
52.

    Each holder of a 10 CFR part 50 or part 57 construction permit, or 
a holder of a combined license under part 52 of this chapter before the 
date that the Commission had made the finding under Sec.  52.103(g) of 
this chapter, who also holds a license under part 70 of this chapter 
authorizing ownership, possession and storage only of special nuclear 
material at the site of the nuclear reactor for use as fuel in 
operation of the nuclear reactor after issuance of either an operating 
license under 10 CFR part 50 or part 57, or a combined license under 10 
CFR part 52, shall, during the period before issuance of a license 
authorizing operation under 10 CFR part 50 or part 57, or the period 
before the Commission makes the finding under Sec.  52.103(g) of this 
chapter, as applicable, have and maintain financial protection in the 
amount of $1,000,000. Proof of financial protection shall be filed with 
the Commission in the manner specified in Sec.  140.15 before issuance 
of the license under part 70 of this chapter.
0
140. In Sec.  140.20, revise paragraph (a)(1)(i) to read as follows:


Sec.  140.20  Indemnity agreements and liens.

    (a) * * *
    (1)(i) The effective date of the license (issued under part 50 or 
part 57 of this chapter) authorizing the licensee to operate the 
nuclear reactor involved; or
* * * * *

PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN 
AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274

0
141. The authority citation for 10 CFR part 150 continues to read as 
follows:

    Authority: Atomic Energy Act of 1954, secs. 11, 53, 81, 83, 84, 
122, 161, 181, 223, 234, 274 (42 U.S.C. 2014, 2201, 2231, 2273, 
2282, 2021); Energy Reorganization Act of 1974, sec. 201 (42 U.S.C. 
5841); Nuclear Waste Policy Act of 1982, secs. 135, 141 (42 U.S.C. 
10155, 10161); 44 U.S.C. 3504 note.

0
142. In Sec.  150.15, revise paragraphs (a)(7)(iii) and (a)(8) to read 
as follows:


Sec.  150.15  Persons not exempt.

    (a) * * *
    (7) * * *
    (iii) Greater than Class C waste, as defined in part 72 of this 
chapter, in an ISFSI or an MRS licensed under part 72 of this chapter; 
the Greater than Class C waste must originate in, or be used by, a 
facility licensed under part 50, part 52, or part 57 of this chapter.
    (8) Greater than Class C waste, as defined in part 72 of this 
chapter, that originates in, or is used by, a facility licensed under 
part 50, part 52, or part 57 of this chapter and is licensed under part 
30 and/or part 70 of this chapter.
* * * * *

For the Nuclear Regulatory Commission.
    Dated: April 29, 2026
Tomas Herrera,
Acting Secretary of the Commission.
[FR Doc. 2026-08550 Filed 4-30-26; 8:45 am]
BILLING CODE 7590-01-P