[Federal Register Volume 91, Number 120 (Wednesday, June 24, 2026)]
[Proposed Rules]
[Pages 38124-38159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-12702]



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Vol. 91

Wednesday,

No. 120

June 24, 2026

Part III





Nuclear Regulatory Commission





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10 CFR Part 30, 37, 40, et al.





Modernizing Materials Licensing; Proposed Rule

Federal Register / Vol. 91, No. 120 / Wednesday, June 24, 2026 / 
Proposed Rules

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NUCLEAR REGULATORY COMMISSION

10 CFR Part 30, 37, 40, 51, 70, 72, and 140

[NRC-2025-1370]
RIN 3150-AL56


Modernizing Materials Licensing

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is proposing to 
amend its regulations for byproduct, source, and special nuclear 
material to modernize the NRC's materials licensing requirements. This 
proposed action is responsive to several executive orders and the NRC's 
mission to enable safe, efficient, and reliable licensing. These 
changes are deregulatory in nature and include streamlining the process 
for existing and certain new applicants to enable bringing power to the 
grid. Unnecessary regulations are being eliminated, and reporting and 
recordkeeping requirements are being changed. The NRC is proposing 
several other changes to clarify regulations that are confusing or 
ambiguous to make the overall licensing process more efficient. 
Finally, regulations governing the storage of radioactive material are 
being amended to accommodate new and advanced nuclear fuels.

DATES: Comments must be submitted electronically using https://www.regulations.gov by 11:59 p.m. eastern time on August 10, 2026.

ADDRESSES: Submit your comments, identified by Docket ID NRC-2025-1370, 
at https://www.regulations.gov. If your material cannot be submitted 
using https://www.regulations.gov, call or email the individual 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-2025-1370. 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: Andy Imboden, U.S. Nuclear Regulatory 
Commission, Washington DC 20555-0001; telephone: 301-287-9055, email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Obtaining Information and Submitting Comments
    A. Obtaining Information
    B. Submitting Comments
II. Executive Order 14300: Ordering the Reform of the Nuclear 
Regulatory Commission
III. Background
IV. Discussion
    A. Reducing Facility Construction Timelines
    B. Clarifying Physical Protection Regulations
    C. Enabling Pilot Fuel Lines
    D. Streamlining Spent Fuel Reprocessing Facility Licensing
    E. Modernizing Fuel Cycle Facility Licensing
    F. Modernizing Spent Fuel Licensing
V. Specific Requests for Comments
VI. Regulatory Flexibility Certification
VII. Regulatory Analysis
VIII. Backfitting and Issue Finality
IX. Cumulative Effects of Regulation
X. Plain Writing
XI. Environmental Assessment and Proposed Finding of No Significant 
Environmental Impact
XII. Paperwork Reduction Act
XIII. 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 14294: Fighting Overcriminalization in 
Federal Regulations
XIV. Coordination With NRC Agreement States
XV. Compatibility of Agreement State Regulations
XVI. Availability of Guidance
XVII. Availability of Documents

I. Obtaining Information and Submitting Comments

A. Obtaining Information

    Please refer to Docket ID NRC-2025-1370 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-2025-1370.
     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 ``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 using https://www.regulations.gov by 
11:59 p.m. eastern time on August 10, 2026. Please include Docket ID 
NRC-2025-1370 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

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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.'' This rulemaking addresses Section 5, ``Reforming and 
Modernizing the NRC's Regulations,'' of E.O. 14300, which directs 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.

III. Background

    The NRC is proposing rulemaking in response to recent E.O.s. Some 
of the proposed changes would also address issues that have 
historically been raised as subjects of discussion between the NRC and 
its stakeholders. The following discussion provides background 
information on some of the most significant changes proposed by this 
rulemaking.
    First, the changes proposed to title 10 of the Code of Federal 
Regulations (10 CFR) part 37, ``Physical Protection of Category 1 And 
Category 2 Quantities of Radioactive Material,'' have been the topic of 
prior discussions between the NRC and its stakeholders. These have been 
addressed, in large part, through other regulatory processes, but not 
yet by rulemaking. The issue of creating exemptions from physical 
protection requirements for large and robust structures was the subject 
of an unresolved petition for rulemaking (PRM).
    On June 12, 2014, the NRC received a PRM submitted by the Nuclear 
Energy Institute (NEI) (ADAMS Accession No. ML14199A570), requesting 
that the NRC amend 10 CFR part 37 to clarify and expand current 
exemptions in Sec.  37.11 for when the physical protection measures for 
category 1 and category 2 quantities of radioactive material do not 
apply to a power reactor licensee. NEI stated that both licensees and 
the NRC have encountered significant problems with Sec.  37.11 which 
can only be remedied through a rulemaking. NEI indicated that the 
exemption in Sec.  37.11(c) only addresses waste material, and 
therefore large components and non-waste material stored in robust 
structures that present a similar or lower risk for theft or diversion 
are not exempt from the 10 CFR part 37 requirements. The petition was 
docketed as PRM-37-1 and published for comment on October 28, 2014 (79 
FR 64149). On June 12, 2015, the NRC published a notice in the Federal 
Register (80 FR 33450) stating that it had reviewed the petition and 
related public comments and agreed to consider the issues raised in the 
rulemaking process.
    Recognizing the low risk associated with large components 
containing category 1 or category 2 quantities of radioactive material 
and the storage of category 1 or category 2 quantities of radioactive 
material in robust structures, the NRC issued Enforcement Guidance 
Memorandum (EGM)-14-001, ``Interim Guidance for Dispositioning 10 CFR 
Part 37 Violations with Respect to Large Components or Robust 
Structures Containing Category I or Category 2 Quantities of Material 
at Power Reactor Facilities Licensed under 10 CFR Parts 50 and 52,'' 
dated March13,2014 (ADAMS Accession No. ML14056A151). This EGM 
documented the NRC's policy of enforcement discretion for power reactor 
licensees subject to 10 CFR part 73, ``Physical Protection of Plants 
and Materials,'' whose security programs did not separately address the 
requirements of 10 CFR part 37. EGM-14-001 provided guidance for 
dispositioning violations associated with large components (e.g., steam 
generators, steam dryers, turbine rotors, reactor vessels, reactor 
vessel heads, reactor coolant pumps, and shielding blocks) containing 
category 1 and category 2 quantities of radioactive material, or 
category 1 and category 2 quantities of radioactive material contained 
in robust structures, such as mausoleums at power reactor facilities 
licensed under 10 CFR part 50, ``Domestic Licensing of Production and 
Utilization Facilities,'' and 10 CFR part 52, ``Licenses, 
Certifications, and Approvals for Nuclear Power Plants.'' However, EGMs 
are intended to provide temporary guidance and are typically put in 
place for relatively short periods of time.
    While the NRC actively pursued the 10 CFR part 37 rulemaking, it 
issued an Interim Enforcement Policy (IEP) on August 23, 2024 (89 FR 
68083), allowing continued enforcement discretion until the underlying 
technical issue could be resolved through rulemaking or other 
regulatory action. IEPs provide an avenue to establish policy, allowing 
them to be in place for longer periods of time than EGMs and providing 
for increased clarity because they are approved by the Commission as a 
policy matter. IEPs also offer enhanced openness because they are 
incorporated in the Enforcement Policy and published in the Federal 
Register to provide broad awareness among stakeholders. The NRC would 
continue to exercise enforcement discretion using this IEP and would 
not issue a notice of violation pending completion of the final 
rulemaking. The changes proposed in this rulemaking now seek to address 
this issue and propose an additional clarifying change to 10 CFR part 
37.
    The proposed amendments to 10 CFR part 70, ``Domestic Licensing of 
Special Nuclear Material,'' also arise from E.O.s and historical 
discussions between the NRC and its stakeholders. In response to E.O. 
14301, ``Reforming Nuclear Reactor Testing at the Department of 
Energy,'' and E.O. 14299, ``Deploying Advanced Nuclear Reactor 
Technologies for National Security,'' issued May 23, 2025, the U.S. 
Department of Energy (DOE) established a pilot program to expedite the 
testing of advanced nuclear reactor designs under DOE authority outside 
of the national laboratories and a corresponding Fuel Line Pilot 
Program. The pilot fuel lines would establish a domestic nuclear fuel 
supply chain for pilot reactors for non-commercial purposes.
    The NRC is working closely with the DOE on developing a process to 
allow for efficient leveraging of the DOE authorization in the NRC 
licensing process. This rulemaking is one part of that process. This 
rulemaking recognizes that the construction and operation of pilot fuel 
lines authorized by the DOE for non-commercial purposes would be exempt 
from the requirements for an NRC license under the regulations in 10 
CFR part 70. The proposed rulemaking would also allow for streamlined 
commercial licensing of these fuel lines in the future by focusing the 
potential future NRC review on parts of the application where aspects 
of the DOE authorization do not satisfy NRC regulations and statutory 
provisions as they apply to commercial operations. This would allow the 
NRC's review of future applications under this program to focus on any 
potential differences rather than revisiting areas already addressed by 
the DOE authorization that are consistent with the NRC's regulatory and 
statutory requirements.
    The proposed changes to streamline and clarify the licensing of 
spent fuel reprocessing facilities using 10 CFR part 70 are responsive 
to a long history of discussion between the NRC and its stakeholders. 
As determined by a gap analysis performed by the NRC staff in 2009 
(SECY-09-0082, ``Update on Reprocessing Regulatory Framework--Summary 
of Gap Analysis'' (ADAMS Accession No. ML091520280)), gaps were found 
to exist between the current regulations and requirements that would be 
necessary to provide for

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adequate protection of public health and safety, the common defense and 
security, and the environment, for the unique aspects of spent fuel 
reprocessing facilities. Subsequently, from 2013 to 2016, the NRC 
assessed the quantitative risk associated with reprocessing facility 
accidents in support of a limited-scope rulemaking. However, due to a 
lack of industry plans for a reprocessing facility license application, 
the rulemaking was withdrawn in 2021. The gaps, however, remain, and 
because of these gaps, an applicant seeking such a license may need to 
request exemptions, and may require additional license conditions, to 
address issues specific to reprocessing technology. The proposed 
amendments aim to reduce regulatory burden by addressing some of the 
procedural gaps and thereby providing a clearer licensing framework for 
applications for spent fuel reprocessing facilities under 10 CFR part 
70.
    Finally, with respect to spent fuel storage, the proposed changes 
are also responsive to issues that have been a topic of discussion 
between NRC and its stakeholders. The regulations in 10 CFR part 72, 
``Licensing Requirements for the Independent Storage of Spent Nuclear 
Fuel, High-Level Radioactive Waste, and Reactor-Related Greater Than 
Class C Waste,'' have undergone significant revisions over the past 
decades. Currently the regulations for spent fuel storage have separate 
technical regulatory requirements spread across several subparts of 10 
CFR part 72 for specific licensees and Certificate of Compliance (CoC) 
holders with a common set of performance specifications (e.g., dose 
limits and criticality control) and quality assurance (QA) 
requirements.
    Significant changes to 10 CFR part 72 were first described in a 
final rule published in July 1990 (55 FR 29181) and were a result of 
the 1987 amendment to the Nuclear Waste Policy Act. This rulemaking 
added subparts K and L which included requirements for General 
Licensees (GLs) (subpart K) and approval of dry spent fuel storage 
systems (subpart L). However, the regulatory changes described in the 
July 1990 and October 1999 (64 FR 56121) rulemakings led to confusion 
regarding the applicability of 10 CFR part 72 between the Specific 
Licensees, GLs, and CoC holders, which led to the addition of Sec.  
72.13 in August 2000 (65 FR 50606). The changes proposed in this 
rulemaking seek to address this confusion and to provide additional 
clarity to the regulations.
    The changes to 10 CFR part 72 also reduce burden by streamlining 
the certification process for dry storage cask designs by removing the 
rulemaking process for cask approvals. They also seek to streamline the 
change process for 10 CFR part 72 by codifying the discretion granted 
in an August 2025 IEP (ADAMS Accession No. ML25224A097), which allows 
the NRC staff to exercise enforcement discretion for certain GL 
violations of Sec. Sec.  72.48 and 72.212. Lastly, they seek to 
streamline the licensing of advanced reactor technologies by clarifying 
definitions for spent fuel and descriptions of damaged fuel to 
accommodate advanced reactor fuels.

IV. Discussion

    The NRC is proposing this rulemaking as part of the NRC's response 
to E.O. 14300, ``Ordering the Reform of the Nuclear Regulatory 
Commission,'' which directs the NRC to modernize its regulations and 
enable the delivery of safe, abundant nuclear energy to the American 
people. This proposed rule addresses topics in Section 5, ``Reforming 
and Modernizing the NRC's Regulations'' of E.O. 14300 and additional 
deregulatory changes consistent with the NRC's mission to enable safe, 
efficient and reliable licensing. Because this proposed rule would 
cover a wide-ranging set of issues, the following discussion is 
organized by subject area.

A. Reducing Facility Construction Timelines

    The proposed rule would make changes to the NRC's regulations for 
constructing byproduct, source, and certain fuel cycle facilities to 
safely enable bringing power to the grid. Historically, stakeholders 
have identified areas where the regulations are not clear and could 
cause unnecessary delays during critical pre-application stages of 
facility construction. Prior efforts have been made to increase clarity 
on individual licensing actions, and this rule would clarify and 
accelerate overall construction timelines for many materials 
facilities.
    Specifically, this proposed rule addresses the construction of 
byproduct, source, and fuel cycle facilities by making identical 
changes in 10 CFR parts 30, 40, and 70. Stakeholders have identified 
that provisions in the current regulations indicate that commencement 
of construction prior to approval of the license is ``grounds for 
denial,'' which has raised concern among applicants proposing to 
construct facilities. The NRC is proposing to clarify the language 
across its materials facility construction regulations, including 
Sec. Sec.  30.33(a)(5), 40.32(e), and 70.23(a)(7) to explain that 
construction prior to approval may proceed but it occurs at the 
applicant's own risk. The proposed change in Sec.  70.23(a)(7) from 
``grounds for denial'' to ``at its own risk'' would not apply to 
uranium enrichment facilities or spent fuel reprocessing facilities. 
Pursuant to statutory requirements in the Atomic Energy Act of 1954, as 
amended (AEA), uranium enrichment facilities and production facilities 
may not commence construction prior to the issuance of a license. 
Accordingly, language has been proposed to clarify this, including a 
new Sec.  70.23(a)(8), which addresses uranium enrichment facilities 
specifically, and retains the existing ``grounds for denial'' language.
    Additionally, current regulations require submittal of certain 
materials facility applications at least nine months prior to 
commencement of construction. This nine-month period is not a statutory 
requirement and does not substantially improve the NRC application 
review process and is therefore proposed for elimination from 
Sec. Sec.  30.32(f), 40.31(f), and 70.21(f). Instead, the NRC proposes 
to find that pre-application engagement is more effective at achieving 
the goals of increased awareness of details of construction than the 
fixed nine-month period. Applicants would be expected to continue 
providing updated construction schedule information as it becomes 
available to facilitate effective communication and coordination with 
NRC regional inspection and project management staff throughout the 
duration of the construction project.
    While the NRC is not currently proposing a change to the definition 
of ``construction'' in 10 CFR part 70; the NRC is seeking public input 
on whether to expand the definition in the final rule to add 
flexibility by further clarifying what the term construction does not 
include. The NRC is seeking feedback on what specific items should be 
added to the definition.
    Other proposed changes to regulatory provisions, such as revisions 
to Sec.  70.21(f), and conforming changes to Sec. Sec.  30.32(f) and 
40.31(f), are intended to avoid confusion and delay by simplifying the 
requirements for the environmental report. Additionally, the proposed 
rule would streamline the process by directing applicants to NRC's 
environmental regulations in 10 CFR part 51, ``Environmental Protection 
Regulations for Domestic Licensing and Related Regulatory Functions.''

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B. Clarifying Physical Protection Regulations

    The NRC is proposing a new exemption for large components and 
storage of material in robust structures containing category 1 or 
category 2 quantities of radioactive material. This new exemption would 
be consistent with the enforcement discretion described in EGM-14-001 
and the subsequent IEP. To accomplish this, this proposed rule would 
make changes to Sec.  37.5, ``Definitions,'' by adding definitions for 
``large component'' and ``robust structure.'' The new definitions 
proposed in this rulemaking are identical to those that have been 
successfully used for several years under EGM-14-001 and the subsequent 
IEP and are therefore appropriate for inclusion in Sec.  37.5. Large 
components, due to their size and weight, pose a low risk of theft or 
diversion as they are not easily moved without cranes, rigging, and 
heavy equipment. In addition, large components are not easily concealed 
during loading or when they are in motion, and the amount of time 
required to steal or divert these large components is such that it is 
reasonable to expect that the licensee would timely detect these 
activities. Radioactive materials contained within robust structures 
can only be accessed using heavy equipment to remove structural 
components or large access blocks that weigh 2,000 kilograms or more. 
Access into these robust structures requires significant execution 
time.
    The proposed rule would also include a new exemption in Sec.  
37.11, ``Specific exemptions.'' Specifically, the NRC is proposing to 
add Sec.  37.11(d), which provides an exemption for large components 
and robust structures containing category 1 or category 2 quantities of 
radioactive material if the licensee meets the following conditions: 
(1) has identified in writing those large components and robust 
structures that contain category 1 or category 2 quantities of 
radioactive material; (2) has an approved 10 CFR part 73 security plan 
or a written 10 CFR part 37 security plan that provides security 
measures adequate to detect, assess, and respond to actual or attempted 
theft or diversion, as well as a written analysis that considers the 
time needed to accomplish these activities given the proximity and 
mobility of the equipment available for those large components and 
robust structures; and, (3) has a written analysis documenting that the 
measures do not decrease the effectiveness of the 10 CFR part 73 
security plan.
    Typically, routine work activities, observation by licensees' 
authorized individuals located within or close to these robust 
structures, or observation by licensees' authorized individuals, are 
conducted in accordance with Sec.  73.55(i)(5)(ii), ``Requirements for 
physical protection of licensed activities in nuclear power reactors 
against radiological sabotage--Detection and assessment systems--
Surveillance, observation, and monitoring.'' These requirements make it 
likely that licensees would detect actual or attempted theft and 
diversion considering the time needed to accomplish these activities.
    Additionally, the NRC is proposing to revise the rule language 
regarding the exemption for radioactive waste in Sec.  37.11(c). The 
existing language lacks clarity about which types of radioactive waste 
are exempted from 10 CFR part 37. Revising this language would provide 
licensees with greater regulatory certainty in implementing this 
provision.

C. Enabling Pilot Fuel Lines

    The NRC is proposing regulations to establish a streamlined NRC 
review process for applications for 10 CFR part 70 materials facility 
licenses where the facilities were previously authorized under the 
DOE's Reactor Pilot Program, including DOE pilot fuel lines. In 
addition to defining a pilot fuel line within Sec.  70.4, this 
rulemaking would also amend Sec.  70.11 to add a new subsection (d) to 
reflect the exemption for the construction and operation of pilot fuel 
lines authorized by the DOE for non-commercial purposes from the 
requirements for an NRC license.
    The NRC is proposing to clarify its regulations to streamline the 
NRC's licensing of potential commercial operations for such a facility. 
Because a non-commercial DOE-authorized pilot fuel line may eventually 
want to convert to commercial operations, thereby requiring an NRC 
license, proposed amendments to Sec.  70.22(r) would also clarify the 
additional information such an applicant for an NRC license would need 
to provide to the NRC. The proposed amendments provide that an 
applicant for an NRC license for a facility that was originally 
constructed and operated as a DOE authorized pilot fuel line would need 
to describe in its application how it meets all applicable NRC 
regulations and statutory requirements, including how the DOE 
authorization satisfies them in part or whole. The NRC may request 
references and excerpts from the documented safety analyses and other 
supporting safety and security-related documents for the authorization, 
or may request the documents in full, if the information is needed for 
the NRC to make its safety and security findings.
    This rulemaking would also amend Sec.  70.23 to add a new paragraph 
(a)(15) to identify the finding the NRC must make to approve a 10 CFR 
part 70 license application for a facility that is also a DOE 
authorized pilot fuel line. Specifically, the new paragraph would 
require the NRC to find that the application meets all relevant 
statutory provisions and appropriate regulations, including any 
necessary conditions that were not satisfied by DOE's authorization, 
before issuing a license.

D. Streamlining Spent Fuel Reprocessing Facility Licensing

    The NRC is also proposing to update its regulations to explicitly 
include a licensing process for spent fuel reprocessing facilities in 
10 CFR part 70. The NRC has historically expected a commercial 
reprocessing facility to meet the definition of ``production facility'' 
in section 11 of the AEA, and as supplemented by Sec.  50.2, because 
reprocessing can be used to separate plutonium isotopes and produce 
special nuclear material (SNM) in quantities that could affect 
radiological health and safety and be of significance to common defense 
and security. Under existing regulations, the NRC could license a spent 
fuel reprocessing facility under 10 CFR part 50 or 10 CFR part 70. 
However, 10 CFR part 70 does not explicitly include spent fuel 
reprocessing facilities or address production facilities. This proposed 
rule clarifies that spent fuel reprocessing facilities, including those 
that meet the definition of production facility, may be licensed under 
10 CFR part 70, and this proposal would provide an alternative 
licensing process to the two-step process (Construction Permit and 
Operating License) in 10 CFR part 50. Regardless of the licensing 
pathway chosen, the NRC would assess the specific safety and security 
risks of each application and ensure that they are appropriately 
addressed, resulting in an equivalent level of safety and security.
    In a gap analysis performed in 2009 (SECY-09-0082), the NRC staff 
identified 23 gaps between existing regulations and requirements that 
would be necessary to provide for adequate protection of public health 
and safety, common defense and security, and environmental protection 
for the unique aspects of spent fuel reprocessing facilities. Given 
that, under the current framework, neither 10 CFR part 50 nor 10 CFR 
part 70 fully address these gaps, an applicant seeking a

[[Page 38128]]

license under either part may need to request exemptions, and may 
require additional license conditions, to address issues specific to 
the applicant's proposed reprocessing technology. The proposed 
revisions to 10 CFR part 70 would address some of these gaps and 
streamline the licensing process for spent fuel reprocessing facility 
applications submitted under 10 CFR part 70, limiting the need for as 
many potential license conditions and exemptions.
    The proposed framework for including spent fuel reprocessing 
facility licensing in 10 CFR part 70 would include proposed 
requirements to ensure the statutory requirements for production 
facilities in the AEA are met. For spent fuel reprocessing facilities 
that are production facilities, these statutory mandates would include 
submitting proposed technical specifications (AEA Sec.  182a.) and a 
proposed operator licensing program (AEA Sec.  107), complying with the 
necessary financial protection provisions (AEA Sec.  170), and 
complying with the ineligibility of foreign control provisions (AEA 
Sec.  103d.). An application for a spent fuel reprocessing facility 
that meets the definition of a production facility under the AEA would 
also be required, consistent with the AEA, to be submitted under oath 
or affirmation; include inspections, tests, analyses, and acceptance 
criteria (ITAAC) (AEA Sec.  185b.); and be subject to a mandatory 
hearing (AEA Sec.  189a.(1)(A)).
    Under this proposed rule, applicants for spent fuel reprocessing 
facilities that do not meet the definition of production facility would 
not be required to meet all the statutory provisions that apply to 
production facilities. Although the November 2011 draft regulatory 
basis document (ADAMS Accession No. ML112081702) that the NRC staff 
developed and issued as an enclosure to SECY-11-0163, ``Reprocessing 
Rulemaking--Draft Regulatory Basis and Path Forward'' (ADAMS Accession 
No. ML113210386), contemplated that all spent fuel reprocessing 
facilities would need to meet all AEA requirements, that document 
assumed that all reprocessing facilities would be production 
facilities. In accordance with the directive of E.O. 14300, this 
proposed rulemaking is designed to allow maximum flexibility. Due to 
the limited information available regarding potential future spent fuel 
reprocessing facilities, this proposed rule is written to take into 
consideration possible applicants that do not meet the definition of a 
production facility.
    The NRC is not aware today of a reprocessing technology that would 
not meet the definition of a production facility. However, this 
proposed rule would build regulatory flexibility for a hypothetical 
reprocessing facility that does not meet the definition of production 
facility, ITAAC and technical specifications would not be required; the 
application would not have to be submitted under oath or affirmation; 
and there would not be a mandatory hearing. ITAAC would not be required 
because proposed Sec.  70.32(l) would require that the Commission 
verify through inspection that the facility has been constructed in 
accordance with the license thereby accomplishing the safety component 
provided by ITAAC. Additionally, the current system of demonstrating 
safety under subpart H to 10 CFR part 70 (e.g., the performance of the 
integrated safety analysis, identification of items relied on for 
safety (IROFS), and the application of management measures) as 
supplemented by this proposed rule, would provide the basis for a 
finding of reasonable assurance of adequate protection of public health 
and safety without the application of technical specifications. 
Finally, for applications for spent fuel reprocessing facilities that 
are not production facilities, a mandatory hearing would not be 
required, but the public would be afforded an opportunity for a 
hearing.
    Due to the lack of available information on the designs of 
reprocessing facilities that may not be production facilities, this 
proposed rule does extend some of the statutory requirements that apply 
to spent fuel reprocessing facilities that meet the definition of 
production facilities to reprocessing facilities that are not 
production facilities, including the requirement to have an operator 
licensing program (if controls, as defined, are being manipulated), to 
meet indemnification and foreign ownership and control requirements, 
and the prohibition against construction at risk. The exemption 
process, as provided in Sec.  70.17, would allow a non-production 
reprocessing facility applicant the opportunity to demonstrate why 
certain requirements should not apply to them. The NRC is seeking 
specific comment on the proposed regulations regarding spent fuel 
reprocessing facilities that are not production facilities, among other 
topics, in section V of this proposed rule.
    The framework presented in this proposed rule provides a licensing 
pathway consistent with all applicable statutory requirements while 
providing for the more complex regulatory gaps identified in SECY-09-
0082 and any other gaps that may be applicable to the proposed spent 
fuel reprocessing facility technology to be addressed on a case-by-case 
basis. Thus, the proposed framework does not seek to address the 
specific safety requirements that may be determined necessary to 
provide for reasonable assurance of adequate protection of public 
health and safety, common defense and security, and the environment, 
for different reprocessing technologies. Rather, the proposed framework 
is flexible and technology-neutral, allowing applicants to provide the 
information necessary to address the regulatory gaps as they apply to 
their design. This also provides flexibility to the NRC in its 
licensing process, as appropriate. The NRC is seeking specific comment 
on this approach, and on whether the NRC should instead specify in the 
regulation the regulatory gaps necessary for discussion in the 
application.
    Many of the proposed changes to subpart A of 10 CFR part 70, 
``General Provisions'' are additions that are necessary to establish 
the basis for the spent fuel reprocessing licensing framework. Notably, 
the proposed revisions include expansion of the ``Purpose'' section to 
address issuance of spent fuel reprocessing licenses, including 
operator licenses for spent fuel reprocessing facilities (Sec.  70.1). 
The proposed rule would also add directions for where applicants should 
submit spent fuel reprocessing facility and operator license 
applications (Sec.  70.5(b)(1)(viii) & (ix)).
    The proposed rule would also include new definitions throughout 
Sec.  70.4. A definition is proposed for ``Spent fuel reprocessing 
facility'' because, while the term ``reprocessing'' is used throughout 
the NRC's regulations, this term is not currently defined. The proposed 
definition clarifies that a spent fuel reprocessing facility may also 
meet the definition of a production facility, as that term is defined 
in the AEA and supplemented by Sec.  50.2. This term is intended to be 
interchangeable with various other similar terms used throughout the 
NRC's regulations such as ``fuel reprocessing plant,'' ``reprocessing 
facility,'' ``irradiated fuel reprocessing operations,'' or 
``irradiated fuel reprocessing plant.'' Given the different terminology 
used throughout its regulations, the NRC may proceed with a term other 
than ``spent fuel reprocessing facility'' in the final rule.
    A definition is also proposed for ``Combined license,'' to reflect 
the addition of a combined licensing pathway for spent fuel 
reprocessing facilities that are production facilities, which is 
different than the two-step licensing process in 10 CFR part 50

[[Page 38129]]

currently available for production facilities. This combined license 
for spent fuel reprocessing facilities that are production facilities 
would include the necessary statutory requirements under the AEA, 
including requirements for technical specifications, an operator 
licensing program, identifying and meeting ITAAC, and a mandatory 
hearing, among others. Given the potential complications that arise 
with this term being defined previously in other NRC regulations, the 
NRC may proceed with a term other than ``combined license'' in the 
final rule.
    A definition is also proposed to reflect the new ``Operator 
license'' required for spent fuel reprocessing facilities. The proposed 
rule would require all spent fuel reprocessing facility applicants to 
include in the license application a description of an operator 
licensing program if certain thresholds are met. A definition of 
``Control'' has been proposed to provide this threshold for when an 
operator licensing program is required. If no controls exist, an 
operator licensing program would not be required. On December 19, 2008, 
NEI addressed a similar high consequence threshold for controls in a 
white paper entitled ``Regulatory Framework for NRC Licensed Recycling 
Facility'' (ADAMS Package Accession No. ML083590114). Although the NRC 
is currently proposing this high consequence outside the controlled 
area threshold as the threshold for controls, the NRC is asking for 
specific public feedback on this threshold and is considering other 
options to ensure the appropriate threshold is applied.
    Changes proposed throughout subpart D of 10 CFR part 70, ``License 
Applications,'' provide details regarding spent fuel reprocessing 
applications, including filing requirements, detailed information 
regarding the contents of spent fuel reprocessing applications, and 
requirements necessary for approval of spent fuel reprocessing 
applications. Many of the changes proposed in subpart D of 10 CFR part 
70 align with AEA statutory requirements for a production facility, and 
other changes update the provisions to include spent fuel reprocessing 
application requirements in a manner consistent with other 10 CFR part 
70 licensees.
    The proposed changes to the filing instructions in Sec.  70.21 
include some minor proposals to simplify the regulations and eliminate 
duplication, such as combining the filing directions previously in 
Sec.  70.21(a)(1) and (2) into a simplified Sec.  70.21(a)(1); and 
including provisions addressing statutory requirements, such as the 
addition of Sec.  70.21(a)(4), which would require a combined license 
application for a spent fuel reprocessing facility to be submitted 
under oath or affirmation consistent with the AEA. Changes also include 
a proposal to revise the specific cross-reference in Sec.  70.21(e) to 
the NRC's fee regulations in 10 CFR part 170, ``Fees for Facilities, 
Materials, Import and Export Licenses, and Other Regulatory Services 
Under the Atomic Energy Act Of 1954, as Amended.'' Currently, Sec.  
70.21(e) requires each application for a special nuclear material 
license to be accompanied by the fee prescribed in Sec.  170.31. Rather 
than referencing a specific section, Sec.  70.21(e) would be revised to 
require each application to be accompanied by the fee prescribed in 10 
CFR part 170. This change would aid with the durability of cross-
references in the regulation should service fees for spent fuel 
reprocessing applicants be assessed under a different section of 10 CFR 
part 170. For example, depending on the application, spent fuel 
reprocessing applicants could be assessed under Sec.  170.21.
    Changes are also proposed throughout Sec.  70.22 to update the 
provisions to include information that would be necessary for an 
application for a spent fuel reprocessing facility. The changes include 
a proposal to amend Sec.  70.22(a)(7) to require applicants to include 
management and storage of radioactive waste, including high level 
waste, in the description of equipment and facilities associated with 
the applicant's spent fuel reprocessing facility. This regulatory 
change is necessary because spent fuel reprocessing facilities have the 
potential to generate significant quantities of waste, which may need 
to be managed and stored on site for a period of time, compared to 
other fuel facilities licensed under this part. Therefore, addressing 
this specific subject in the application in detail will be necessary 
for licensing decisions. The NRC is seeking specific comments on this 
approach and whether additional changes are needed to this part, or 
potentially other parts, of NRC regulations to address waste issues at 
spent fuel reprocessing facilities.
    Additionally, the NRC is proposing amendments to Sec.  70.22 to 
require all applications for spent fuel reprocessing facilities to 
include information consistent with requirements for other similar 
applicants or required by statute. Under the proposed Sec.  70.22, an 
application for a spent fuel reprocessing facility should include: a 
description of the applicant's program for control and accounting of 
SNM (Sec.  70.22(b)); provisions for liability insurance (specific 
amounts to be determined on a case-by-case basis) (Sec.  70.22(n)); and 
a proposed operator licensing program for the manipulation of controls 
(Sec.  70.22(o)). In the case of an applicant for a spent fuel 
reprocessing facility that is a production facility, applicants would 
also have to provide proposed technical specifications and proposed 
ITAAC, consistent with the AEA statutory requirements (Sec.  70.22(p)). 
In section V of this proposed rule, the NRC seeks specific feedback on 
the approach presented for technical specifications, and on a potential 
optional means the NRC is considering for addressing technical 
specifications in the final rule.
    The proposed changes would also require all spent fuel reprocessing 
facility applications to include a QA program that complies with 
appendix B to 10 CFR part 50 (Sec.  70.22(f)). This is the only set of 
regulations in 10 CFR part 50 that are being proposed to apply directly 
to spent fuel reprocessing facilities licensed under 10 CFR part 70. 
The NRC is seeking specific feedback on the proposal of requiring a QA 
program in accordance with appendix B of 10 CFR part 50 and is 
considering the option of applying a graded approach to QA requirements 
that would be tailored to the specific technology.
    The NRC is also proposing the addition of Sec.  70.22(q) to reflect 
the likely need for an application for a spent fuel reprocessing 
facility to include additional information, including requested 
exemptions, and proposed license conditions deemed necessary to provide 
for reasonable assurance of adequate protection of public health and 
safety, common defense and security, and the environment. This 
provision is intended to provide the applicants with the flexibility 
needed to address the technical gaps that currently exist in the NRC's 
regulations regarding specific spent fuel reprocessing technologies. 
Although 10 CFR part 70 provides a good baseline for such applications, 
there is a gap between the baseline technical requirements in 10 CFR 
part 70 and the requirements that may be necessary to demonstrate 
reasonable assurance of adequate protection of public health and 
safety, common defense and security, and the environment depending upon 
the specific technology proposed. These gaps have been documented in 
SECY-09-0082. Consequently, depending upon the specific facts of the 
design and technology proposed for a spent fuel reprocessing facility, 
an applicant seeking a license under 10 CFR part 70 may need to request 
exemptions, and may need to propose license conditions to address 
issues specific to the

[[Page 38130]]

proposed reprocessing technology. If an applicant determines that a gap 
does not apply to its facility, the applicant could provide the 
technical basis for that conclusion in its application. To make the 
NRC's license application acceptance and review process more efficient, 
the applicant is encouraged to identify the applicable gaps and 
describe to the NRC how it plans to address them in the application 
during pre-application engagement with the NRC. Regarding this broad 
approach where applicants are to identify and address case-specific 
applicable gaps depending on the technology proposed, the NRC is also 
considering amending the regulations to, instead, identify in the 
regulatory text the specific gaps that need to be addressed in spent 
fuel reprocessing facility applications. The NRC is specifically 
requesting feedback on this alternative approach in section V of this 
proposed rule.
    Amendments proposed to Sec.  70.23 would require, consistent with 
licensed facilities of similar risk, a spent fuel reprocessing 
application to include an adequate emergency plan (Sec.  70.23(a)(11)) 
and an acceptable QA Plan, developed in accordance with appendix B of 
10 CFR part 50 (Sec.  70.23(a)(13)), in order to be approved.
    Amendments proposed to this section would also require spent fuel 
reprocessing applications to include adequate financial protection 
prior to approval of an application (Sec.  70.23(a)(12)). Accordingly, 
a conforming amendment would be made to 10 CFR part 140, ``Financial 
Protection Requirements and Indemnity Agreements,'' to clarify that 
spent fuel reprocessing facility licensees required to enter into an 
indemnification agreement would also be required to pay an indemnity 
agreement fee to the Commission (Sec.  140.7). All licensees of spent 
fuel reprocessing facilities that are production facilities are 
statutorily required to enter into an indemnification agreement. A 
licensee for a spent fuel reprocessing facility that is not a 
production facility may also be required to enter into an 
indemnification agreement if the Commission, acting in its discretion, 
so determines. An additional conforming amendment is proposed to 10 CFR 
part 140 to clarify that all spent fuel reprocessing facility licensees 
would be required to have and maintain liability insurance in the type 
and in the amounts the Commission considers appropriate (Sec.  
140.13c).
    A new subsection in Sec.  70.23 is also proposed to provide clarity 
regarding the need for a spent fuel reprocessing facility applicant to 
adequately address all relevant statutory provisions and appropriate 
regulations, including any necessary conditions, for approval of an 
application (Sec.  70.23(a)(14)). This additional regulatory provision 
is intended to provide a clear avenue for addressing all necessary 
issues, or gaps, on a case-by-case basis that may not have been 
addressed otherwise, given the specific technology involved. Just as 
the proposed addition of Sec.  70.22(q) is intended to provide 
flexibility and ensure all necessary components are included as 
contents of a spent fuel reprocessing facility application, this 
proposed provision is intended to be a parallel provision, providing 
flexibility in addressing necessary items for approval of a spent fuel 
reprocessing facility application. This provides a technology-neutral 
and flexible framework allowing for case-by-case licensing of spent 
fuel reprocessing facility applications to capture technical variations 
in the proposed reprocessing designs.
    The proposed amendments in this subpart also include a 
clarification that spent fuel reprocessing facilities cannot undertake 
construction at risk (Sec.  70.23(a)(8)). For spent fuel reprocessing 
facilities that are production facilities (defined as combined licenses 
in this proposed rule), this is consistent with the AEA Sec.  185b. 
This proposed rule also applies this restriction on construction at 
risk to spent fuel reprocessing facilities that are not production 
facilities because all spent fuel reprocessing facilities would have a 
higher risk profile compared to existing fuel facilities because of the 
presence of fission products. In addition, because of the safety 
significance of equipment and structures related to spent fuel 
reprocessing facilities, the NRC would want to inspect these as they 
are being constructed or installed, and only after it has approved the 
license application. Applicants for spent fuel reprocessing facilities 
that do not meet the definition of production facility may request an 
exemption from this requirement if they have the necessary basis to 
support the request.
    The proposed rule also includes changes to Sec.  70.23a to capture 
the AEA requirement for a mandatory hearing for a combined license 
application for a spent fuel reprocessing facility that is a production 
facility. For spent fuel reprocessing facilities that are not 
production facilities, a mandatory hearing is not required; however, 
the public would be afforded an opportunity for a hearing.
    Finally, the proposed addition to Sec.  70.25(a)(3) requires an 
applicant for a spent fuel reprocessing facility to submit a 
decommissioning plan as described in paragraph (e) of the section, 
consistent with other similar 10 CFR part 70 applicants. The NRC is 
requesting specific comments on whether the decommissioning funding 
provisions in Sec.  70.25 are sufficient, as is, to address spent fuel 
reprocessing facility decommissioning, or if, instead, specific spent 
fuel reprocessing facility decommissioning funding provisions should be 
added to 10 CFR part 70.
    The proposed amendments to subpart E of 10 CFR part 70, 
``Licenses,'' include amendments to comply with AEA statutory 
requirements, including changes to reflect that a combined license for 
a spent fuel reprocessing facility will not be issued until the 
mandatory hearing requirement has been satisfied (Sec.  70.31(e)); and 
that a combined license issued under this part will include the 
required ITAAC sufficient to provide reasonable assurance that the 
facility has been constructed and will be operated in conformity with 
the license (Sec.  70.31(f)).
    The proposed revisions would also require spent fuel reprocessing 
facility licenses to include a condition that a facility will not be 
able to operate until it has been verified through inspection that it 
has been constructed in accordance with the requirements of the license 
prior to operation (Sec.  70.32(l)). This provision is intended to 
capture the current practice where certain licenses are conditioned on 
an operational readiness review prior to being allowed to operate. The 
proposed amendments also add an additional condition for a combined 
license for a spent fuel reprocessing facility that is a production 
facility which would limit operation until the Commission finds that 
the prescribed ITAAC have been met, as required by the AEA (Sec.  
70.32(m)). While both Sec.  70.32(l) and (m) make it clear that a 
facility would not be allowed to operate until the licensee has 
demonstrated that the facility has been constructed consistent with the 
application, for combined licenses for spent fuel reprocessing 
facilities, the language added mirrors the statutory language and 
process.
    Amendments are also being proposed to add conditions to address 
operator licenses at spent fuel reprocessing facilities. Under this 
proposed rule, an operator licensing program would be required of all 
spent fuel reprocessing facilities (both production and non-production) 
that meet the threshold provided in the proposed definition of 
``control.'' The NRC is requesting specific feedback on this proposal, 
and

[[Page 38131]]

particularly on the threshold provided in the proposed rule.
    The proposed changes implementing operator licensing programs 
include a new subsection (Sec.  70.32(n)) to reflect that a license for 
a spent fuel reprocessing facility would include the conditions 
necessary to determine the qualifications of operators, and would limit 
the ability for anyone who is not a licensed operator to manipulate 
controls, as defined in Sec.  70.4, except in cases where a non-
licensed operator manipulates the controls under the direction and in 
the presence of a licensed operator.
    Because the NRC has not developed specific regulations or guidance 
on these topics as they would apply to spent fuel reprocessing 
facilities, outside of the definitions of ``Operator license'' and 
``Control'' added to Sec.  70.4, the proposed rule envisions applicants 
proposing an operator licensing program as part of the application 
(Sec.  70.22(o)); the NRC adding the necessary conditions to the 
license to require adherence to the approved operator licensing program 
(Sec.  70.22(n)); and NRC's approval of operator licenses that meet the 
requirements of the approved operator licensing program (Sec.  
70.23(a)(16)). The NRC is also considering the option of, instead, 
establishing a general license for licensed operators of spent fuel 
reprocessing facilities. The NRC is asking a specific question to 
elicit feedback on this topic.
    Changes proposed to this subpart would also prevent spent fuel 
reprocessing facility licenses from being issued to an entity that is 
foreign-owned, controlled, or dominated, or if issuance of the license 
would be inimical to the nation's common defense and security. This 
proposed change is necessary to conform with statutory licensing 
requirements for production facilities in the AEA and is also being 
applied to spent fuel reprocessing facilities that do not meet the 
definition of production facility given the uncertainty regarding the 
technical details of potential non-production facilities and the risks 
involved. Applicants that do not meet the definition of production 
facilities may request an exemption from this requirement if they have 
the necessary basis to support the request.
    Amendments are also proposed in subpart G of 10 CFR part 70, 
``Special Nuclear Material Control, Records, Reports and Inspections,'' 
and subpart H, ``Additional Requirements for Certain Licensees 
Authorized to Possess a Critical Mass of Special Nuclear Material.'' 
The proposed amendments would require effluent monitoring reporting of 
spent fuel reprocessing facilities, consistent with other 10 CFR part 
70 licensees (Sec.  70.59). Additionally, the proposed changes would 
amend Sec.  70.60, the ``Applicability'' section of subpart H of 10 CFR 
part 70, to include the potential need for additional requirements for 
spent fuel reprocessing facilities, beyond those described in Sec.  
70.61 through Sec.  70.76, reflecting the increased risk that such a 
facility may pose compared to other fuel cycle facilities licensed 
under 10 CFR part 70. Amending Sec.  70.60, as proposed, is intended to 
allow the NRC to move forward with spent fuel reprocessing facility 
licensing under 10 CFR part 70, using the existing subpart H of 10 CFR 
part 70 requirements as a baseline and supplementing, with additional 
conditions, as necessary, without the development of more specific 
safety requirements. The NRC will assess applications on a case-by-case 
basis to ensure an applicant adequately identifies and controls 
radiological and NRC-regulated chemical hazards and accidents at a 
reprocessing facility, and limits any resulting risks to the public, 
workers, and the environment.
    Finally, this proposed rule would also update the authority 
citation to 10 CFR part 70 to add citations to the provisions of the 
AEA that provide the NRC the authority to make these proposed 
amendments.

E. Modernizing Fuel Cycle Facility Licensing

    The proposed rule would also make specific changes to the NRC's 
regulations in 10 CFR part 70 in several areas, with the overall goal 
to reduce burden on licensees and improve licensing efficiency while 
continuing to ensure safety. Taken together, these changes would lower 
the regulatory burden on fuel cycle licensees and applicants and 
therefore enable bringing more power to the grid efficiently.
    The proposed rule would accelerate licensing of plutonium 
processing and fuel fabrication plants and reduce the regulatory burden 
on applicants by incorporating lessons learned from the licensing of 
the Mixed Oxide Fuel Fabrication Facility at the DOE's Savannah River 
site in South Carolina. Specifically, the NRC is proposing to eliminate 
the regulations that establish a two-step licensing process for these 
facilities that requires both that the Commission approve construction 
of the principal structures, systems, and components, and the 
requirement for a description and safety assessment of the design bases 
of the principal structure, systems, and components. These requirements 
in current Sec.  70.23(a)(8) and Sec.  70.23(b), predate the addition 
of subpart H of 10 CFR part 70, and the integrated safety analysis 
(ISA) now required, and with those additional requirements, these items 
are no longer justified. This change is also consistent with the one-
step licensing process proposed for spent fuel reprocessing facilities. 
These regulations contribute to significant burden on the applicant 
without adding to the safety of the facility given the addition of 
subpart H of 10 CFR part 70.
    The amendments also seek to reduce the burden on licensees by 
addressing an issue that has historically been an item of discussion 
between the NRC and its stakeholders, namely the determination of 
whether structures must be designated as IROFS. The NRC does not 
require all new fuel cycle facility structures to be designated as 
IROFS because IROFS are strictly developed as a result of facility-
specific ISAs. If an applicant's ISA determines that a safety function 
provided by a structure is needed to adequately protect workers and the 
public, then normally that structure is designated an IROFS. The 
proposed revisions to the regulations would reduce the need for 
designating a structure as IROFS when the safety function of the 
structure is limited to providing adequate protection against natural 
phenomena-initiated accident sequences (i.e., structural stability) and 
the safety function is maintained under the licensee's management 
measures program. Under current regulations, licensees must request 
exemptions to avoid being required to designate certain structures as 
IROFS. This proposal would reduce unnecessary regulatory burden.
    Specifically, this proposed rule would introduce an alternative 
from the designation of certain structures as IROFS as otherwise 
required under Sec.  70.61(e). The proposed alternative in Sec.  
70.61(e)(2) would apply specifically to structures that credit solely 
their structural stability safety function (i.e., no structural 
failure) to meet the performance requirements of Sec.  70.61(b), (c), 
and (d), and only in the context of accident sequences initiated by 
natural phenomena hazards (NPH). This alternative would not apply if 
the structure is credited for other safety functions, such as 
confinement or containment. Additional changes to the regulations 
related to this alternative were made to Sec. Sec.  70.64(a)(1), 
70.64(a)(8), 70.65(b)(6), and the revised reporting requirements in 
appendix A to 10 CFR part 70.
    This alternative would not relieve licensees from the obligation to

[[Page 38132]]

demonstrate through accident sequence analyses that the credited 
structures meet the applicable performance requirements of Sec.  
70.61(b), (c), and (d). Licensees seeking to apply this alternative 
would be required to submit a technical basis as part of their license 
application. The NRC will continue to evaluate how NPH are addressed in 
the license application on a case-by-case basis, recognizing that NPH-
initiated accident sequences are inherently facility-specific, 
depending on factors such as geographic location, facility design, and 
process configuration.
    While the NRC is not prescribing a prescriptive methodology for 
demonstrating compliance with the performance requirements in Sec.  
70.61, it is anticipated that structures designed in accordance with 
applicable industry standards and engineering practices may provide an 
adequate basis for demonstrating that the risks associated with NPH-
initiated accident sequences are appropriately limited. For new 
facilities or new processes at existing facilities, the requirements of 
Sec.  70.64 continue to apply. The baseline design criteria outlined in 
Sec.  70.64 generally provide an acceptable set of initial design 
safety considerations; however, they may not be sufficient in all cases 
to ensure adequate safety for all new processes and facilities. The ISA 
process is intended to identify any additional safety features or 
changes to the design criteria necessary to demonstrate that the risks 
from NPH-initiated accident sequences are appropriately limited. To 
ensure continued safety, the credited structural aspects must remain 
available and reliable, consistent with the requirements for management 
measures in Sec.  70.62(d). This proposed rule change is consistent 
with the NRC approach outlining an acceptable method for licensees to 
request an exemption from designating certain structures as IROFS (See 
NRC letter dated February 14, 2025, ADAMS Accession No. ML24241A119).
    To support the implementation of this alternative, the rule would 
clarify new reporting requirements for structures that are credited 
with meeting the performance requirements of Sec.  70.61(b), (c), and 
(d), but are not designated as IROFS. These new proposed reporting 
requirements are less burdensome than those applicable to IROFS, 
thereby reducing the overall regulatory burden on licensees. The 
reporting requirements for structures that are credited with meeting 
the performance requirements of Sec.  70.61(b), (c), and (d), but are 
not designated as IROFS are tailored to their structural stability 
safety function and the risks from NPH-initiated accident sequences, 
thereby allowing the NRC to maintain appropriate oversight while also 
reducing regulatory burden. Additional regulatory relief is provided 
for structures whose sole credited safety function is to prevent 
structural failure during NPH-initiated accident sequences. Such 
structures would no longer be subject to the additional requirements 
associated with sole IROFS designation.
    Furthermore, the NRC is proposing changes intended to enhance 
regulatory clarity and support efficient implementation of the 
alternative framework. This would include an amendment to add a new 
criterion to Sec.  70.72 to clarify when prior Commission approval is 
not required for changes to structures that are credited with safety 
functions under Sec.  70.61 but are not designated as IROFS (Sec.  
70.72(c)(3)). This amendment would allow changes to the structure as 
long as the structural stability safety function is preserved. 
Additionally, amendments would add a clarification to Sec.  70.65 to 
require identification of these structures in the application (Sec.  
70.65(b)(6)); and clarifications to Sec.  70.64 to identify which 
baseline design criteria apply to these structures.
    The proposed rule also seeks to reduce the burden on applicants by 
proposing revisions to Sec.  70.24 to relieve licensees authorized to 
possess certain isotopes of SNM in the quantities specified in Sec.  
70.24(a) from the requirement to maintain a criticality accident alarm 
system, provided they can demonstrate that a criticality accident is 
not credible based on the laws of physics. This change would be 
consistent with the basis previously used to grant case-by-case 
exemptions from criticality accident alarm system requirements. There 
is not a compelling safety basis to require criticality accident alarm 
monitoring in instances where such an accident is not credible based on 
the laws of physics. The demonstration that a criticality accident is 
not credible may apply to specific areas within a facility or to the 
entire facility. If the demonstration covers the entire facility, the 
licensee would also be relieved of the requirement to maintain 
emergency procedures related to the criticality accident alarm system 
specified in Sec.  70.24.
    Several reporting and recordkeeping requirements in 10 CFR part 70 
would be amended in this rule to reduce regulatory burden and improve 
clarity. The proposed amendments include consolidating reporting 
requirements from Sec. Sec.  70.50, 70.52, and 70.74 into the existing 
appendix A to 10 CFR part 70, ``Reportable Safety Events.'' This 
consolidation is intended to streamline the reporting process, reduce 
burden, eliminate redundancy, and improve consistency and understanding 
across licensees. The NRC is also proposing to remove or relax some 
reporting requirements in this rulemaking. As a result of these 
proposals, the only remaining provision in proposed Sec.  70.50 is a 
reference directing licensees to appendix A.
    In this proposal, Sec.  70.50(b)(1) would be relocated to appendix 
A(c)(5)(iv) and amended to eliminate the requirement to report 
unplanned contamination events when they occur in a restricted area 
that is inaccessible to the public, was already controlled as a 
Radioactive Materials Area within a building before the event occurred, 
and where the release is contained within that area. The proposed 
provision would also require that trained personnel and appropriate 
equipment be readily available to manage contamination. This change 
only eliminates reporting requirements reflecting exemptions that NRC 
has already determined to be safe and granted to at least two fuel 
facilities and does not significantly increase risk to the public, 
workers, or the environment.
    Section 70.50(b)(3) would be relocated to appendix A(c)(7) and 
amended to limit reporting of unplanned medical treatment involving 
spreadable radioactive contamination to cases where treatment occurs at 
an offsite medical facility. Medical treatment that can be managed 
onsite is not considered significant enough to warrant NRC reporting.
    Section 70.50(c)(2) would be relocated to appendix A(d) and amended 
to extend the deadline for follow-up reports from 30 to 60 days. This 
additional time to submit reports does not negatively impact safety.
    Reporting requirements in appendix A(b)(2) would be relocated to 
appendix A(c)(2) and amended to allow licensees to use site-specific 
definitions of likelihood criteria for reporting failures or 
degradation of IROFS. In its NRC-approved license application, a 
licensee may have justified likelihood thresholds for reporting that 
differ from the likelihood definitions used to demonstrate compliance 
with the performance requirements of Sec.  70.61 based on the potential 
accident sequences in the ISA and considering the overall facility risk 
(e.g., number of accident sequences that exceed the performance 
requirements in Sec.  70.61). Allowing flexibility for site-specific 
thresholds for reporting that deviate from the performance requirements 
of Sec.  70.61 is expected to reduce the

[[Page 38133]]

reporting burden for some licensees, codify flexibilities that have 
resulted from the NRC accepting different definitions of likelihood for 
safety analyses across existing fuel cycle facilities, and result in no 
impact to equipment or procedures used to protect health and minimize 
danger to life or property.
    The NRC is also proposing to relocate several other reporting 
requirement provisions to appendix A with minor edits and 
clarifications, including proposed appendix A(a)(1), (e)(1), and 
(e)(4). Relocating the requirement in current Sec.  70.50(c)(1) to 
proposed appendix A(e)(1), and amending it to allow licensees to submit 
reports using any method that ensures compliance with the required 
reporting timeframe, rather than mandating telephone reporting, would 
reduce regulatory burden on licensees and improve internal consistency 
within the regulation. Relocating information from Sec.  
70.50(c)(2)(iii) to proposed appendix A(d)(iii), with edits to remove 
the phrase ``to prevent occurrence of similar or identical events in 
the future,'' would reduce regulatory burden by eliminating language 
that implies a guarantee of future event prevention, which is not 
directly relevant to reporting requirements. While corrective actions 
are important, their effectiveness in preventing future events cannot 
be assured and should not be a required component of the reporting 
criteria.
    The NRC staff is also proposing to relocate some reporting 
requirements with no substantive changes (proposed appendix A(b), 
(c)(6), (c)(8), (d), (e)(2), (e)(3)) and to remove the concurrent 
reporting requirement currently found in appendix A(c). This deletion 
reduces regulatory burden by removing the requirement to report events 
or situations--related to public or onsite personnel health and safety, 
or environmental protection--for which a news release is planned or 
notification to other government agencies has been or will be made. The 
NRC staff has determined that the burden placed on licensees to make 
these concurrent and follow-up reports is not justified by the 
associated risk.
    Several changes have also been proposed to Sec.  70.32 to reduce 
regulatory burden and provide licensees with additional flexibility in 
reporting timelines, particularly for programmatic changes that do not 
reduce the effectiveness of safety and security plans. These changes 
would extend the timeframes for submitting updates to the NRC without 
prior Commission approval, while maintaining appropriate oversight and 
ensuring continued protection of public health and safety. 
Specifically, the time allowed to report changes to the Material 
Control and Accounting program without prior Commission approval in 
Sec.  70.32(c)(2)(i) has been increased from 2 to 4 months when the 
changes pertain to uranium-233, uranium-235 enriched to 20 percent or 
more, or plutonium (excluding plutonium containing 80 percent or more 
by weight of plutonium-238). For changes involving uranium enriched to 
less than 20 percent in uranium-235 or plutonium containing 80 percent 
or more by weight of plutonium-238, the reporting timeframe in Sec.  
70.32(c)(2)(ii) has been extended from 6 to 12 months. These changes 
reduce unnecessary administrative burden while preserving appropriate 
regulatory oversight based on material type and associated risk.
    Similarly, the timeframe for reporting changes to the physical 
protection plan for SNM in Sec.  70.32(d) would be increased from 2 to 
12 months, provided the changes do not decrease the effectiveness of 
the plan. The same extension--from 2 to 12 months--would apply to 
changes made to the security plan under the same condition, as proposed 
in Sec.  70.32(e). These changes would extend the timeframes for 
submitting updates to the NRC without prior approval, while maintaining 
appropriate oversight and ensuring continued protection of public 
health and safety. Annual reporting, coupled with the robust inspection 
program, provides confirmation of the continued safety and security of 
the facilities. These revisions collectively reduce regulatory burden 
by aligning reporting requirements with the safety significance of the 
changes, allowing licensees more time to implement and document non-
safety-significant updates without compromising regulatory intent or 
public safety.
    The proposed revisions also include other burden-reducing 
initiatives. Proposed changes would clarify that information submitted 
with applications for renewal of licenses under 10 CFR part 70 should 
be narrowly focused on the scope of renewal, limiting the submission of 
redundant or unnecessary information (Sec.  70.73). Similarly, changes 
proposed to Sec.  70.42(d)(3) clarify that, for emergency shipments 
involving transfer of special nuclear material, the follow-up written 
communication required in the regulation can be accomplished through 
multiple methods, as outlined in the section.
    Finally, the proposed rule also seeks to delete several ambiguous 
or obsolete requirements contained in 10 CFR part 70 to improve 
regulatory clarity. Some sections of 10 CFR part 70 are obsolete 
because they pertain to facilities or cases that are no longer relevant 
and are highly unlikely to be relevant in the future. This includes the 
proposed deletion of Sec.  70.1(d) which refers to 10 CFR part 76, 
``Certification of Gaseous Diffusion Plants.'' These plants are no 
longer operational and it is unlikely for there to be any gaseous 
diffusion plants in the foreseeable future. The NRC also proposed to 
sunset 10 CFR part 76 as part of its sunset rule (90 FR 55699) in 
response to E.O. 14270, ``Zero-Based Regulatory Budgeting to Unleash 
American Energy.'' Additionally, Sec.  70.24(a)(2) refers to the 
timelines required for the implementation of subpart H of 10 CFR part 
70 and specifically applies to persons licensed prior to December 6, 
1974. The dates in those timelines have passed, these regulations are 
no longer necessary as there are no licensees for which this regulation 
still applies and there will be no licensees for which it will apply in 
the future.

F. Modernizing Spent Fuel Licensing

    The proposed rule would make specific changes to the NRC's 
regulations in 10 CFR part 72 in several areas, with the overall goal 
to reduce burden on licensees and CoC holders and modernize the NRC's 
spent fuel licensing regulations while continuing to ensure reasonable 
assurance of adequate protection of public health and safety. One 
change to 10 CFR part 72 proposed in this rule is to streamline the 
process for certifying spent fuel storage cask designs, which currently 
involves a safety review of the application, along with a rulemaking to 
amend Sec.  72.214 to codify NRC approval of each individual CoC. The 
agency has almost 25 years of data indicating that these rules are 
uncontroversial, as evidenced by the fact that the NRC has received 
very few adverse comments on CoC rulemakings. Eliminating the 
rulemaking requirement would eliminate unnecessary resource expenditure 
from the regulatory process without impacting the depth and rigor of 
the NRC's safety review and certification of the cask design. NEI 
suggested removing the rulemaking process from cask certifications in 
their letter dated February 10, 2025 (ADAMS Accession No. ML25058A144). 
The NRC has streamlined the Sec.  72.214 rulemaking process in recent 
years. Rulemaking is now developed in parallel with the NRC's safety 
evaluation, and the overall timeframe is significantly reduced. 
However, agency resources continue to be spent to develop a rulemaking 
package and savings may be achieved by

[[Page 38134]]

eliminating the rulemaking that codifies the CoCs.
    This proposed change remains consistent with Section 133 of the 
Nuclear Waste Policy Act because the Commission continues to establish, 
by rule, the procedures for licensing the approved technology-dry cask 
storage-under a general license method of approval of individual cask 
designs (e.g., by rulemaking). The NRC fulfilled this obligation in its 
1990 rulemakinq by establishing a general license and cask 
certification process. The proposed amendment does not alter the safety 
review or the conditions of use under the general license: rather, it 
only removes the ministerial step of codifying each CoC in Sec.  
72.214. CoCs will continue to be issued following a rigorous safety 
review under the procedures for licensing the dry-cask technology in 
existing regulatory requirements and will be publicly accessible on 
NRC's website. This approach preserves transparency and public 
confidence while improving efficiency.
    The NRC does not envision this change impacting the process for CoC 
applicants as the NRC's safety review of the application would remain 
the same. Currently, the NRC completes a safety review of the CoC or 
CoC amendment application, and, if the safety review determines that 
the CoC or CoC amendment meets NRC regulatory requirements, then the 
NRC begins the rulemaking process to officially codify the CoC into the 
listing in Sec.  72.214. Under the proposed rule, rather than the CoC 
being issued upon codification in Sec.  72.214, the NRC would, instead, 
issue the CoC after the necessary safety findings are made. After 
issuance, the approved CoC would then be listed on NRC's website at 
https://www.nrc.gov/waste/spent-fuel-storage/designs. The direction in 
Sec.  72.214 would be revised to reflect that issued CoCs will be 
listed on the website.
    The changes proposed in this rule to the CoC issuance process also 
include a proposed modification to the NEPA compliance provisions in 10 
CFR part 51. The existing categorical exclusion from NEPA for CoC 
reviews pertains to CoC reviews conducted through the rulemaking 
process. This proposed rule modifies that categorical exclusion so that 
it would apply to CoCs issued under this proposed process, as the 
action--review of a CoC application--is the same.
    Additionally, the NRC does not envision this change impacting the 
process for GL adoption of NRC-approved cask designs. GLs will continue 
to be limited to use of only approved and issued CoCs or CoC 
amendments. Minor edits are also proposed for Sec.  72.212(b)(3) and 
(b)(5)(i) to remove the reference to the list of approved CoCs, but the 
regulations will continue to require that storage of spent fuel under a 
general license must be in conformance with an approved CoC or CoC 
amendment. The proposed changes would only impact where the GLs would 
find the list of final NRC approved CoCs available for their use, which 
would be on the referenced website rather than listed specifically in 
Sec.  72.214. The proposed revision of Sec.  72.214 would not change 
prior NRC CoC approvals; all NRC approvals of CoCs and CoC amendments 
(past, current, and future) are currently listed and would continue to 
be listed on that website.
    Notwithstanding the Commission's previously stated reservations in 
the 2001 denial of a petition for rulemaking (66 FR 63964), the NRC is 
not proposing to add an opportunity for a hearing to the CoC issuance 
process, because the issuance, amendment, or revision of a CoC under 
the new proposed process would not trigger an opportunity for a hearing 
under AEA Sec.  189a. Section 189a.(1)(A) of the AEA, provides, in 
relevant part, that in any proceeding for the granting or amending of 
any license or construction permit, the Commission must grant a hearing 
upon the request of any person whose interest may be affected by the 
proceeding. However, cask approval, which results in a certificate, is 
neither a license nor a license amendment. A certificate, as defined in 
Sec.  72.3, means ``the certificate issued by the Commission that 
approves the design of a spent fuel storage cask in accordance with the 
provisions of subpart L of this part.'' While the CoC issued by the NRC 
approves the design of the spent fuel storage cask, the CoC alone does 
not give permission to use the CoC to store spent fuel. Further, CoCs 
are not issued to NRC licensees but rather to cask vendors who apply 
for a CoC and then become CoC holders, once approved. By contrast, a 
license, or license amendment, is an approval issued under the 
licensing provisions of the AEA (Sec. Sec.  53, 57, 62, 63, 81, 82, 
101, 103, 104, 107, and 109), all of which concern some activity 
involving byproduct, source or special nuclear material or production 
or utilization facilities. The CoC only approves of a design of a CoC 
system, and does not, by itself, provide the CoC holder with the 
authority to possess regulated material. Indeed, the NRC has 
historically maintained a distinction between certificates and licenses 
not only in 10 CFR part 72, but also in 10 CFR part 71.
    The staff also proposes revisions to specific sections of Sec.  
72.48, including the addition of clarifying language, to create 
additional flexibility in the requirements for evaluation of changes 
that result in a departure from a ``method of evaluation'' (MOE). The 
proposed changes would maintain the focus of NRC licensing activities 
on the most safety significant issues. Other proposed changes would 
reduce burden by eliminating redundancy in evaluations performed by a 
GL for changes initiated by the CoC holder and codify the regulatory 
relief provided in the ``Interim Enforcement Policy for Enforcement 
Discretion for General Licensee Adoption of Certificate of Compliance 
Holder-Generated Changes,'' issued on August 15, 2025 (90 FR 39308). 
Requirements would be modified to specify that only site-specific 
changes initiated by the GL need to be evaluated utilizing the Sec.  
72.48 change process. GLs may accept CoC holder Sec.  72.48 changes 
without re-performing the Sec.  72.48 evaluation for themselves when 
there are no site-specific changes needed. Further, the rule would 
implement changes to the Sec.  72.48 criterion, ``method of 
evaluation,'' to eliminate the need for license amendments for MOE 
changes that have low safety significance.
    The NRC is proposing to allow changes to the elements of an MOE 
that would result in ``no more than a minimal increase'' in the 
applicable safety margins. Currently, only changes to elements that 
have a decrease in safety margin or essentially the same results are 
allowed, which has the effect of allowing only incremental changes to 
be made without prior NRC approval. Using a ``no more than a minimal 
increase'' approach gives more change authority to licensees under 
Sec.  72.48 that would allow additional, minimal, increases in safety 
margin while minimizing the risk of substantial changes that could 
challenge established safety limits.
    New MOEs used in the safety analyses or to establish the design 
bases, that have not been approved by the NRC, have the potential to 
significantly affect the margins to safety limits. For changing from an 
MOE described in the final safety analysis report to another MOE not 
approved by the NRC, the staff is proposing a graded approach based on 
the current important to safety (ITS) categories for storage. 
Currently, only MOEs that were previously reviewed and approved by the 
NRC for the intended application may be used without prior NRC review. 
In the

[[Page 38135]]

proposed rule, only new or different MOEs that specifically affect ITS 
Category ``A'' and ``B'' structures, systems, and components (SSCs), 
the results of which, when applied, would be critical to, or would have 
a major impact on, safe operation of the affected SSC, would require 
prior NRC review and approval. Additionally, the new definition would 
retain the language that allows use of MOEs that have been previously 
approved for an intended application.
    Through its review of applications, the NRC has determined that 
there is little or no confirmatory analysis for compliance necessary 
for those items that have a minor impact on safety. As a result, the 
NRC is recommending focusing NRC reviews only on those methods that 
have an effect on SSCs that are critical to safe operation or have a 
major impact on safety. Therefore, for new MOEs that only affect ITS 
Category ``C'' or ``not important to safety'' components and the 
results of which, when applied, would only have a ``minor impact on 
safety'', as defined in Table 2 of NUREG 6407, ``Classification of 
Transportation Packaging and Dry Spent Fuel Storage System Components 
According to Importance to Safety'' (ADAMS Accession No. ML15127A114), 
prior NRC approval would not be required.
    The proposed changes also include a provision that would reduce the 
regulatory burden on the part of licensees and CoC holders by 
eliminating Sec.  72.48(d)(2), which currently requires the submission 
of reports associated with Sec.  72.48 evaluations. The NRC has 
determined that there is no risk to removing the reporting requirement 
and that the current practices to maintain records, as required by the 
approved QA programs and specific regulations, provides reasonable 
assurance that licensees are documenting and maintaining the required 
evaluation records.
    The NRC is also proposing to clarify the definition for spent fuel 
and the description of damaged fuel in 10 CFR part 72 to accommodate 
advanced reactor fuels and streamline licensing of advanced reactor 
technologies. This would provide operational flexibility to new and 
advanced fuel designers, including transportable microreactors, in the 
storage of spent fuel generated by proposed advanced reactor designs. 
These changes are deregulatory in nature as they revise the narrowly 
defined characteristics for spent fuel and descriptions of damaged fuel 
in 10 CFR part 72.
    One such change is in the definition of spent fuel which currently 
states that spent fuel needs to be ``aged for at least one year'' prior 
to storage. The staff has determined that this requirement was not 
based on risk insights, and the NRC has confidence in the programs 
currently established at existing independent spent fuel storage 
installations (ISFSIs) to characterize and safely store spent fuel, 
regardless of how long it has been ``aged.'' Under the proposed 
definition, irradiated fuel must first be permanently removed from a 
reactor, and a determination made that the fuel will not be reused in a 
reactor or subjected to reprocessing. Only after such a determination 
is the material designated as ``spent fuel,'' consistent with the 
intent of regulatory classifications under 10 CFR part 72 and related 
guidance. A conforming amendment is also proposed to Sec.  72.2 to 
remove the ``aged for at least one year'' requirement. The proposed 
definition also aligns with the definition for ``spent nuclear fuel'' 
found in Sec.  2.1105. Similarly, the regulatory language in Sec.  
72.122(h)(1) for describing damaged fuel has language specific to light 
water reactors. The proposed revisions to this section make the 
requirement technology-neutral so that it may also be applied to 
advanced reactor designs.
    Several changes proposed in the 10 CFR part 72 regulations would 
reduce the burden of unnecessary reporting requirements and relax the 
timelines for written reports. The NRC is proposing to revise Sec.  
72.42(b) to decrease the time for the submittal of renewal applications 
for specific licensees to be 30 days before expiration, consistent with 
the requirements in Sec.  72.240(b) for CoC renewals. A common set of 
license terms, CoC terms, and renewal requirements would simplify and 
clarify the regulatory requirements. Another proposed change to Sec.  
72.44(d)(3) would eliminate the regulatory requirement for annual 
reporting for licensee effluent monitoring programs. This information 
would be collected and retained by the licensee and subject to 
inspection. Notification requirements of first storage of spent fuel 
under the general license letter submittal requirement would be reduced 
from 90 days before cask loading to 30 days before cask loading in 
Sec.  72.212(b)(1). Similarly, in Sec.  72.212(b)(2), the cask 
registration letter submittal requirement would increase from 30 days 
from cask loading to 90 days from cask loading. These changes would 
provide a reduction in burden on licensees.

V. Specific Requests for Comments

    The NRC is seeking advice and recommendations from the public on 
the proposed rule. The NRC is particularly interested in comments and 
supporting rationale and basis from the public on the following 
questions. In addition to the general discussion in section IV, 
additional context is provided for certain questions in order to help 
the public comment on these issues.

Issue 1: Definition of Construction

    The NRC is not proposing changes to the definition of construction 
in this proposed rule but is considering expanding the definition in 
the final rule to add flexibility by further clarifying what the term 
construction does not include. The NRC is seeking feedback on what 
specific items should be added to the definition. That is, what 
specific items should not be considered ``construction''? Please 
provide the basis for your response.

Issue 2: Spent Fuel Reprocessing Facility Regulations

Spent Fuel Reprocessing Facility--Regulatory Gap Identification
    The NRC seeks comments on spent fuel reprocessing facility 
regulatory gap identification. The NRC is proposing to amend Sec.  
70.22, ``Contents of applications,'' to require applicants to identify 
and address any regulatory gaps relevant to their proposed design as 
part of the license application. As discussed in section IV, this would 
include applicable gaps in 10 CFR part 70 that were previously 
identified in the enclosure to SECY-09-0082 and further discussed in 
SECY-11-0163. Under the proposed approach, applicants are to identify 
and address the gaps that are applicable to their application based on 
the proposed technology and risks. Applicants may address these gaps by 
proposing license conditions or, where appropriate, by requesting 
exemptions.
    The NRC is considering an alternative option of addressing the gaps 
more specifically by adding a provision in the final rule that would 
require an applicant to include in its application information and 
analyses regarding the previously identified specific gaps. For 
example, a new subsection of Sec.  70.22 could require applicants to 
include in their spent fuel reprocessing facility application 
information and analyses pertaining to issues identified as gaps, such 
as risk considerations, effluent monitoring, and general design 
criteria, as the gaps may pertain to the specific technology proposed.
    The NRC is seeking input on this alternative approach. If the NRC 
were to proceed, instead, with the alternative approach, please 
identify which of the gaps should be specifically identified in

[[Page 38136]]

the regulatory text and why. Additionally, the NRC is also seeking 
feedback on whether additional regulatory gaps exist--beyond those 
identified in SECY-09-0082--that may apply to the reprocessing 
technologies currently under consideration, including novel 
technologies that were not considered in the original gap analysis. If 
so, please identify each additional gap and provide a justification for 
why it should be included in list of gaps required to be addressed as 
part of the license application. Similarly, the NRC is seeking input on 
whether any gaps identified in SECY-09-0082 are no longer applicable to 
spent fuel reprocessing facilities. Please explain the basis for your 
response.
Spent Fuel Reprocessing Facility--Decommissioning Funding
    The NRC seeks comments on the proposed provisions for spent fuel 
reprocessing facility decommissioning funding. The NRC is proposing to 
apply the existing decommissioning funding requirements to spent fuel 
reprocessing facilities rather than proposing new decommissioning 
funding requirements specific to these facilities. However, the NRC is 
considering whether requirements specific to spent fuel reprocessing 
facilities should be added to 10 CFR part 70 in this rulemaking. Both 
10 CFR parts 50 and 70 contain specific funding requirements that a 
licensee must meet for decommissioning nuclear power plants and fuel 
cycle facilities, respectively.
    The NRC is specifically seeking feedback on whether the 
decommissioning funding regulations in 10 CFR part 70 are sufficient 
for spent fuel reprocessing facilities. Should the NRC, instead, 
provide specific decommissioning funding regulations for these 
facilities? If additional funding requirements are warranted, please 
indicate what the NRC should consider in developing these specific 
decommissioning funding regulations and why. Also consider whether the 
NRC should consider a new provision similar to Sec.  70.38(a) that 
applies to spent fuel reprocessing facilities.
Spent Fuel Reprocessing Facility--Waste Issues
    The NRC seeks comments on spent fuel reprocessing facility waste 
issues. The proposed rule seeks to address the handling and onsite 
storage of radioactive waste generated by a spent fuel reprocessing 
facility through the existing and proposed requirements in 10 CFR part 
70, including those in subpart H, and in 10 CFR parts 20 and 72. The 
NRC is also considering additional provisions in the final rule in 
either 10 CFR part 70 or 10 CFR part 72, if necessary, to adequately 
address the safe handling and onsite storage of radioactive waste at 
spent fuel reprocessing facilities. If there are additional changes to 
the regulations needed to address the safety of radioactive waste and 
enable efficient licensing of a spent fuel reprocessing facility in a 
technology-neutral way, please provide the changes necessary, including 
specifically which regulations should be changed and why.
Spent Fuel Reprocessing Facility--Quality Assurance Program
    The NRC seeks comments on spent fuel reprocessing facility quality 
assurance programs. The NRC is proposing that each application for a 
spent fuel reprocessing facility license include a QA program that 
fully complies with the criteria outlined in appendix B of 10 CFR part 
50. This proposal aligns with existing requirements for plutonium 
processing and fuel fabrication plants and supports the objective of 
ensuring high confidence in the availability and reliability of IROFS 
in these higher-risk facilities, thereby meeting the standard of 
reasonable assurance of adequate protection. It also aligns with 
requirements for production facilities under 10 CFR part 50 and would 
apply commensurate QA requirements to a spent fuel reprocessing 
facility licensed under 10 CFR part 70.
    However, given the wide range of potential technologies and 
facility scales associated with spent fuel reprocessing facilities and 
plutonium processing and fuel fabrication plants, the NRC is 
considering, instead, applying in the final rule a graded technology-
neutral approach that would specifically tailor the QA requirements to 
the technology involved. The NRC is specifically seeking feedback on 
whether there may be specific instances where certain criteria in 
appendix B of 10 CFR part 50 may not be justified for making a safety 
determination. The NRC is also seeking feedback on whether there are 
relevant safety features or aspects of reprocessing operations that 
would make a graded approach to QA requirements more appropriate. 
Please explain the basis for your response.
Spent Fuel Reprocessing Facility--Operator Licensing Program
    The NRC seeks comments on the proposed spent fuel reprocessing 
facility operator licensing program. The NRC is proposing to add a new 
Sec.  70.22(o) that requires spent fuel reprocessing facility 
applications to contain a proposed operator licensing program if 
operation of the facility involves the manipulation of controls. The 
NRC is also proposing a new definition of ``control'' in Sec.  70.4, 
which defines a control, with respect to a spent fuel reprocessing 
facility licensed under 10 CFR part 70, as ``an engineered item relied 
on for safety, the manipulation of which could result in unmitigated 
high consequences identified in Sec.  70.61(b) to any individual 
located outside the controlled area identified pursuant to Sec.  
70.61(f).''
    The NRC is specifically seeking feedback on this definition and the 
threshold for what constitutes a control and therefore an operator 
licensing program. As part of this consideration, the public is invited 
to provide comments on whether the threshold is appropriate or if 
another threshold should be considered.
    More specifically, the NRC is considering revising the definition 
of control in the final rule to include both onsite and offsite 
consequences of concern. And to differentiate from other facilities 
licensed under subpart H of 10 CFR part 70, the NRC is also considering 
revising the definition of control in the final rule to specify that 
the consequences of concern from unmitigated accident sequences are 
related to hazards that are unique to spent fuel reprocessing. If the 
NRC were to opt for this revised definition, the NRC is interested in 
feedback detailing what those unique hazards are that differentiate 
spent fuel reprocessing facilities from other subpart H of 10 CFR part 
70 facilities.
    The NRC is also considering revising the definition of control such 
that, rather than the proposed consequence based definition, the 
definition would instead include other considerations such as the 
complexity of the controls, or sequence of controls, to be manipulated 
to prevent or mitigate a consequence above the defined threshold. The 
NRC is seeking feedback on this potential change to the proposed 
definition. Please provide the basis for your response.
    Finally, the NRC is seeking feedback on the proposal in this rule 
that operator licensing should be required for spent fuel reprocessing 
facilities that are not defined as production facilities. In light of 
the ISA and management measures requirements in subpart H of 10 CFR 
part 70, the NRC is considering not requiring an operator licensing 
program requirement for spent fuel reprocessing facilities that are not 
production facilities. Specifically, the NRC is seeking feedback on 
whether an operator licensing program should be

[[Page 38137]]

required only for spent fuel reprocessing facilities that are 
production facilities. In responding, please include a basis in your 
response that describes why an operator licensing program would or 
would not be needed at non-production facilities to ensure adequate 
safety. If, instead, the NRC continues with the rule as proposed, where 
all spent fuel reprocessing facilities are required to have an operator 
licensing program based on a threshold (such as the thresholds for 
controls), should the proposed threshold be modified; and if so, how 
and why?
Spent Fuel Reprocessing Facility--Operator General Licenses
    The NRC seeks comments on the spent fuel reprocessing facility 
operator licensing process. The NRC is proposing to specifically 
license operators of a spent fuel reprocessing facility through license 
conditions. Alternatively, the NRC is considering an option where the 
final rule would establish a general license for operators of a spent 
fuel reprocessing facility. The NRC envisions the option would include 
requirements similar to those the NRC has proposed in ``Risk Informed, 
Technology-Inclusive Regulatory Framework for Advanced Reactors'' (89 
FR 86918; October 31, 2024). Under this option, general-licensed 
reprocessing facility operators would perform duties under the 
provisions of a general license that would be effective without the 
filing of an application with the NRC or the issuance of licensing 
documents to a particular person.
    The NRC is specifically seeking feedback on whether spent fuel 
reprocessing facility licensed operators should be specifically or 
generally licensed. If the NRC pursues a general license for spent fuel 
reprocessing facility operators (and, similarly, if operators are to be 
specifically licensed), what should the requirements be for that 
program? Are there key concepts in Sec. Sec.  53.805 through 53.820 
that should or shouldn't be included? Please provide the basis for your 
responses.
Spent Fuel Reprocessing Facility--As Production Facilities
    The NRC seeks comments on the application of AEA requirements for 
``production facilities'' to all spent fuel reprocessing facilities. 
This proposed rule is written to take into consideration possible 
applicants that do not meet the AEA's definition of production 
facility. However, due to uncertainties in the technologies and 
associated risk, the NRC is proposing to apply some of the statutory 
requirements for reprocessing facilities that meet the definition of 
production facility to facilities that do not meet the definition of 
production facility. These include proposed operator licensing programs 
(if manipulation of controls, as defined, are required), as well as 
prohibitions on both construction at risk and foreign ownership, 
control, and domination. If there are non-production facility spent 
fuel reprocessing facilities in the future where these requirements are 
not necessary, under this proposed rule, those applicants may request 
exemptions under Sec.  70.17 that the NRC may grant if justified. The 
NRC is seeking input on this approach, and specifically, whether this 
is the appropriate list of statutory provisions to apply to non-
production reprocessing facilities. If not, what provisions should be 
excluded or what other provisions should be included? What specific 
factors or considerations should the NRC evaluate when determining 
whether such requirements should not apply to non-production 
reprocessing facilities? What information currently exists to indicate 
that the requirements, as proposed, are not necessary to ensure safety 
at facilities that do not meet the definition of a production facility? 
And, conversely, if the provisions in this proposed rule are 
sufficient. Please provide the basis for your responses.
Spent Fuel Reprocessing Facility--Technical Specifications
    The NRC is seeking feedback on the proposed approach regarding 
technical specifications. Under the proposed rule, technical 
specifications would not be required for spent fuel reprocessing 
facilities that do not meet the AEA's definition of production facility 
because these facilities are subject to the requirements in subpart H 
of 10 CFR part 70 for ISA and management measures. Under the NRC's 
proposal, spent fuel reprocessing facilities that are defined as 
production facilities would need to provide technical specifications, 
regardless of facility risks, in accordance with the AEA.
    The NRC is considering an alternative approach that would require 
all spent fuel reprocessing facility applications (whether production 
or non-production facilities) to include technical specifications based 
on an established set of thresholds, similar to the proposed approach 
for operator licensing programs. In the alternative approach, spent 
fuel reprocessing facilities that do not have accident sequences that 
would exceed these thresholds would not be required to provide 
technical specifications as part of the application. If the NRC were to 
proceed with the alternative approach of establishing a threshold, the 
NRC is seeking feedback on whether the technical specification 
thresholds in the November 2011 draft regulatory basis document should 
be applied to all spent fuel reprocessing facilities (production and 
non-production facilities) and whether those thresholds are 
appropriate. Please provide the basis for your response.

Issue 3: Change Process for 10 CFR Part 70 License Application 
Documents

    The NRC seeks comments on the change process for 10 CFR part 70 
license application documents. The regulations currently provide 
processes to allow licensees to make changes to certain licensing 
documents without prior NRC approval if they meet specified criteria. 
Some of these regulations include Sec.  70.32(c)(1)(3) for changes to 
material control procedures, Sec.  70.32(d) for changes to plans for 
the physical protection of special nuclear material in transit, Sec.  
70.32(e) for changes to physical security plans, Sec.  70.72(c) for 
facility changes, and in 10 CFR part 95, Sec.  95.19(b) for changes to 
security practices and procedures. Additionally, Sec.  70.72 includes a 
facility change process and provides criteria specifying the conditions 
under which a licensee may make changes to the site, structures, 
processes, systems, equipment, components, computer programs, and 
activities of personnel, without prior NRC approval.
    However, current requirements do not allow a licensee to make 
changes to their license application or to the supporting documents 
referenced in the license under Sec.  70.72 without prior NRC approval 
because they are limited by a license condition. In response to several 
requests, the NRC has added a license condition that permits licensees 
to change certain information in the license application and the 
supporting licensing documents without first seeking NRC approval if 
they meet established criteria. Regulatory Guide (RG) 3.74, ``Guidance 
for Fuel Cycle Facility Change Processes'' (77 FR 823, January 6, 
2012), contains guidance regarding the information a licensee or 
applicant must provide to request this license condition.
    The NRC is considering amending 10 CFR part 70 in the final rule to 
codify the license condition and make it broadly applicable, as a 
voluntary option, to any licensee under subpart H of 10 CFR part 70. In 
the process under consideration, the licensee would be able to make 
changes to the license application without prior NRC approval provided 
the change meets certain

[[Page 38138]]

provisions. The considerations for this change process are described in 
RG 3.74 positions C.5.b and C.5.c and the rule provision under 
consideration, which would build on RG 3.74 and past approvals (with 
some revisions, e.g., reporting changes to the NRC every 12 months) 
would read:

    Any change to the license application and supporting licensing 
documents included in license conditions must be evaluated by the 
licensee before the change is implemented and a record of the 
evaluation must be retained.
    The licensee may make changes to the license application and 
supporting licensing documents included in license conditions 
without prior Commission approval, if the change: does not decrease 
the level of effectiveness of the design basis as described in the 
License Application; does not result in a degradation of safety; 
does not affect compliance with applicable regulatory requirements; 
and does not conflict with an existing license condition.
    Within 12 months after each change is made, the licensee shall 
submit the revised chapters of the License Application to the 
Director, Office of Nuclear Material Safety and Safeguards, using an 
appropriate method listed in Sec.  70.5(a) with a copy to the 
appropriate NRC Regional Office.

    The NRC is specifically seeking feedback on whether it would be 
beneficial to add this optional change process to its regulations in 10 
CFR part 70, and if so what criteria should be used to determine if 
prior NRC approval is needed. Additionally, the NRC is seeking feedback 
on an appropriate reporting frequency as license conditions, to date, 
have required reporting every six months. Should the NRC specify 
documentation requirements for the licensee's evaluation supporting the 
finding that preapproval is not required, similar to those included in 
Sec.  70.72(a)? Conversely, the NRC is seeking information on if the 
optional change process is not seen to be beneficial. Please provide 
the basis for your responses.

Issue 4: Baseline Design Criteria in 10 CFR Part 70

    The NRC is not proposing any changes to the baseline design 
criteria requirements in the proposed rule; however the NRC is seeking 
stakeholder input on the implementation of each of the baseline design 
criteria which were established when subpart H was added to 10 CFR part 
70. These criteria were intended to provide an acceptable set of 
initial design safety considerations and complement the performance 
requirements in Sec.  70.61 to ensure that safety is not wholly 
dependent on any single element of design, construction, maintenance, 
or operation. This approach is intended to help maintain safety 
margins, defense in depth, and reduce challenges to IROFS. Based on 
more than 20 years of operating and licensing experience, the NRC 
requests feedback on whether rule text changes are needed. Please 
provide the basis for your response.

VI. Regulatory Flexibility Certification

    Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the NRC 
anticipates that this proposed rule will not, if issued, have a 
significant economic impact on a substantial number of small entities. 
While the rule may affect some ``small entities'' as defined by the Act 
or the NRC's size standards (Sec.  2.810), the overall impact is 
expected to be minimal.
    The staff is proposing several changes across the materials 
regulations to modernize the NRC's materials licensing requirements. 
These changes are deregulatory in nature and include streamlining the 
process for certain new applicants and eliminating certain requirements 
prior to facility construction to enable bringing power to the grid. 
Unnecessary regulations are also being eliminated, and reporting and 
recordkeeping requirements are being reduced. The staff is proposing 
several other changes to clarify regulations that are confusing or 
ambiguous to make the overall licensing process more efficient. 
Finally, regulations governing the storage of radioactive material are 
being amended to accommodate new and advanced nuclear fuels.
    Therefore, the NRC attests under 5 U.S.C. 605(b) that this rule 
would not have a significant economic impact on a substantial number of 
small entities. If you think that your business, organization, or 
governmental jurisdiction qualifies as a small entity and that this 
rule would have a significant economic impact on it, please submit a 
comment (see ADDRESSES) explaining why you think it qualifies and how 
and to what degree this rule would economically affect it.

VII. Regulatory Analysis

    The NRC is proposing to make several changes to its materials 
regulations to reduce burden, increase efficiency, and enable bringing 
power to the grid. These changes will also have economic benefits, but 
for the reasons stated in this section, the NRC is not able to make a 
quantitative assessment of the cost savings for all proposed regulatory 
changes. For example, the NRC does not have detailed data on licensees' 
pre-construction procurement schedules or financing, therefore the NRC 
is unable to make a detailed analysis of the economic benefits of 
shortening the time required for facility construction. Other proposed 
regulatory changes seek to modernize licensing for new technologies, 
including for reprocessing and fuel fabrication, for which there is 
either no existing data or no publicly available data. Where possible, 
a quantitative analysis has been provided.

Parts 30 and 40

    In 10 CFR parts 30 and 40, the NRC is proposing to amend its 
regulations to clarify existing language, reduce the facility 
construction timelines, and simplify the requirements for the 
environmental report. The changes proposed are also necessary to 
address a licensee's flexibility in implementing existing regulatory 
requirements. The NRC anticipates economic benefits, in the form of 
monetary savings, from shortening the amount of time required to 
construct facilities under 10 CFR parts 30 and 40 (as well as 10 CFR 
part 70, discussed further below). However, since the NRC is being 
proactive in its approach for regulating perceived new technology, the 
NRC does not have data to formulate a quantitative assessment of the 
economic benefits the industry can anticipate from these changes, nor 
is there enough data to quantitatively address monetary savings from 
streamlining the construction timelines and application requirements. 
Qualitatively, however, the benefits in savings to the industry, as a 
result of the clarifying changes to 10 CFR parts 30 and 40, reduce 
interaction time with the NRC, as well as provide flexibility for 
applicants moving forward.

Part 37

    The proposed revisions to 10 CFR part 37 would formalize existing 
practice established through EGM-14-001. Additionally, the proposed 
rule also includes clarifying language in Sec.  37.11(c) to alleviate 
potential confusion. The NRC maintains that these changes are 
economically neutral, as they do not alter licensee behavior but rather 
reflect current practices.

Part 70

    The changes the NRC is proposing in 10 CFR part 70 provide industry 
with flexibility in meeting current regulatory requirements, as well as 
flexibility in how to meet the regulatory requirements as they apply to 
potential new technological advancements in reprocessing and fuel 
fabrication. Some modifications proposed in 10 CFR part 70 are 
clarifying in nature, and therefore, do not create an economic burden. 
There are also many proposed

[[Page 38139]]

changes to 10 CFR part 70 that reduce burden by eliminating or reducing 
reporting or record keeping requirements, which may also create savings 
for the industry by minimizing interactions with the NRC.
    The NRC has also identified several other proposed changes to 10 
CFR part 70 for which it is unable to quantitively determine the cost 
savings they would create for the industry. The following table 
provides a qualitative assessment of the provisions proposed in 10 CFR 
part 70 that the NRC anticipates would create economic savings for the 
industry.
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Part 72

    There are portions of the changes in 10 CFR part 72 that are 
similar to those in 10 CFR part 30 above. Therefore, NRC is referring 
back to 10 CFR part 30 for discussion on proposed changes affecting 
technological innovation.
    Additionally, the NRC is proposing to revise Sec.  72.44(d)(3) by 
removing redundant annual reporting of gaseous effluents to the NRC. 
This change removes the requirement for licensees to submit these 
reports to the NRC but still provides licensees with the option to 
submit these reports if they so choose. If the licensee elects not to 
submit the report, they would instead need to maintain the report in 
their files and present the report when asked by an NRC inspector. The 
NRC estimates potential time savings, for both licensees and NRC staff, 
from implementing this change.
    The NRC's estimated savings for licensees was calculated using the 
loaded wage rate of $137.14.\1\ The NRC estimates that a licensee would 
take 0.083 hours to submit the gaseous effluent report to NRC. The 
estimated total annual saving from reducing duplicative reporting is 
$857 non-discounted, and savings over a period of 10-year is estimated 
to be $6,020 and $7,311 discounted at 7 and 3 percent, respectively.
---------------------------------------------------------------------------

    \1\ The wage used for this occupation was Facilities Managers 
(11-3013) from across all industries on BLS SOC website https://data.bls.gov/oes/#/industry/221113. for year 2024. In addition, the 
wage rate is loaded by a ratio of 1.6 to account for benefits 
employees receive from their employer (e.g., health care insurance, 
vacation time) $137.14 = ($85.71 * 1.6).
---------------------------------------------------------------------------

    The NRC's potential savings would come from eliminating the need to 
review and process the annual reports. The NRC receives 75 gaseous 
effluent annual reports, and it takes the staff two hours to review and 
process each report. Annually, the NRC spends 150 hours reviewing 
gaseous effluent reports. Using the wage rate of $158 for NRC's 
employment, the staff expect this proposed rule to save the agency 
approximately $23,700 annually. The staff estimates total 10 years 
savings at

[[Page 38141]]

$166,460 and $202,166 discounted at 7 and 3 percent, respectively.
    Total combined 10 years savings for both industry and the NRC are 
estimated at $245,571 (undiscounted) and net present value of $209,477 
discounted at 7 and 3 percent, respectively, with annualized 10 years 
savings at $172,479 discounted at 7. Table 2 shows the combined 10-year 
period of analysis. 
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    Furthermore, the NRC's proposed change to Sec.  72.214 would 
eliminate the requirement for a direct final rule as part of the NRC's 
approval process for new or modified spent fuel dry storage casks 
entering the market. Under the current regulation, in order for a cask 
design or modification to be approved for use, a cask vendor must 
submit an application to the NRC for approval and, as part of the 
approval process, the NRC reviews the application and develops a direct 
final rule. The direct final rule serves to add the new cask design or 
modification to a list of NRC-approved cask designs in Sec.  72.214. 
The proposed change to Sec.  72.214 would remove the list of approved 
cask designs from the regulation and instead point general licensees to 
a list of NRC-approved casks on the NRC's public website. Thus, the 
proposed change would have the NRC review and approve the application 
without developing a direct final rule for each new cask design or 
modification. Therefore, the proposed change to Sec.  72.214 would 
mostly affect the NRC's approval process and have an indeterminate 
effect on vendors and licensees.
    Under the current approval process, the NRC develops a direct final 
rule every time it approves a cask design or modification for use by 
general licensees. On average, the NRC receives 8 applications per 
year, which means it must create 8 separate direct final rules. NRC 
staff spend about 1,500 hours developing each rule. Therefore, over the 
course of 1 year, the NRC invests approximately 12,000 hours in 
creating direct final rules under Sec.  72.214. To estimate the 
monetary costs of the NRC, the staff uses a $158 hourly rate for the 
NRC wage rate. The estimated cost of creating one direct final rule is 
$237,000 per application. Assessing the 1-year and 10-year cost savings 
from changes to Sec.  72.214, the staff estimates potential NRC benefit 
at $1.9 million and $19 million respectively in undiscounted savings. 
The estimated 10-year net present value for the 10-year period of 
analysis is $13.3 million at a 7 percent discount. Hence, the NRC is 
anticipating a reduction in its burden which would create a saving for 
the NRC. Table 3 shows the results of calculating the effect of changes 
to Sec.  72.214.

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    Additionally, the proposed changes to the cask approval process 
would create a benefit to the industry. The process of drafting and 
publishing a direct final rule for each NRC approval of a cask design 
or modification takes approximately six months to complete. During that 
time, the cask vendor is unable to generate revenue from the cask 
design for which they are awaiting NRC's approval. By removing the 
rulemaking requirement, a vendor would be able to generate revenue on a 
quicker timeframe that, under the current regulation, is unattainable.
    Removing the rulemaking requirement for cask approvals would allow 
vendors to reverse the opportunity lost due to rulemaking process, 
which would equate to approximately six months. The NRC foresees a 
vendor's time as an opportunity gained, and therefore, a benefit. 
However, the NRC is unable to enumerate the benefits for two reasons: 
(1) the NRC does not have information on vendors' marketing strategies 
to make an intuitive cash flow assessment, and (2) the NRC is unable to 
track sales data of casks. Although the NRC cannot provide a 
quantitative assessment of the vendor's benefits, it anticipates that 
the change to Sec.  72.214 will yield a positive economic impact for 
vendors for the reasons aforementioned.
    To summarize the quantitative impact to the affected population, 
the NRC combines estimates from tables 2 and 3 to assess the overall 
impact of the proposed rule. The total aggregated cost saving for the 
proposed rule is estimated to have annual savings of $1.9 million 
(undiscounted) with a 10-years net present value of $13.5 million 
discounted at 7 percent. Table 4 shows a savings schedule over a 10-
year period of analysis.
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    Additionally, the NRC estimates this proposed rule would have 
perpetuity cost savings of $1.9 million discounted at 7 percent in 2024 
dollars.

VIII. Backfitting and Issue Finality

    This section describes the backfitting implications of this 
proposed rule. The NRC's backfitting provisions relevant to this 
proposed rule appear in Sec. Sec.  70.76 and 72.62, each entitled 
``Backfitting,'' and apply to holders of certain licenses under 10 CFR 
part 70 and holders of general or specific licenses under 10 CFR part 
72, respectively. Parts 30, 37, 40, 51, and 140 of 10 CFR chapter I do 
not contain backfitting provisions. The NRC Management Directive 8.4, 
``Management of Backfitting, Forward Fitting, Issue Finality, and 
Information Requests,'' describes the Commission's policies on 
backfitting.
    The 10 CFR parts 70 and 72 backfitting provisions apply to actions 
taken by the NRC under 10 CFR parts 70 and 72, respectively, or actions 
taken by the NRC under other parts of 10 CFR chapter I that, for 
holders of certain approvals under 10 CFR part 70 or 72, inextricably 
affect their activities regulated under 10 CFR part 70 or 10 CFR part 
72, respectively. The proposed changes would not meet the definition of 
``backfitting'' in Sec.  70.76 because the proposed changes would not 
modify or add to the SSCs or design of a facility or to the procedures 
or organization required to operate a facility under 10 CFR part 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 ISFSI or the procedures or organization required to 
operate an ISFSI.
    Further, the proposed changes to 10 CFR part 37 (see section IV.B 
of this document) as well as the proposed conforming changes to 10 CFR 
parts 30, 40, 51, and 140 (see section IV.A and IV.D of this document) 
to reflect the proposed changes to 10 CFR parts 70 and 72, would not 
inextricably affect activities regulated under 10 CFR parts 70 or 10 
CFR part 72. Therefore, the issuance and implementation of the proposed 
rule would not affect 10 CFR part 70 or 10 CFR part 72 entities' 
activities regulated under 10 CFR part 70 or 10 CFR part 72. For these 
reasons, the proposed rule would not constitute backfitting under 10 
CFR parts 70 and 72.
    The NRC would also post on its public website a series of 
frequently asked questions (FAQs) and NRC responses related to this 
proposed rule as described in section XVI, ``Availability of 
Guidance,'' of this document. These FAQs would not constitute 
backfitting as defined in Sec.  70.76 or Sec.  72.62 because licensees 
would not be required to comply with the positions set forth in the 
FAQs.

IX. 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 deregulatory 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. 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.

X. Plain Writing

    The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal 
agencies to write documents in a clear, concise, and well-organized 
manner. The NRC has written this document to be consistent with the 
Plain Writing Act as well as the Presidential Memorandum, ``Plain 
Language in Government Writing,'' published June 10, 1998 (63 FR 
31885). The NRC requests comment on this document with respect to the 
clarity and effectiveness of the language used.

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

    The Commission has determined under the National Environmental 
Policy Act of 1969, as amended, and the Commission's regulations in 
subpart A of 10 CFR part 51, that this rule, if adopted, would not be a 
major Federal action significantly affecting the quality of the human 
environment, an environmental impact statement is not required. The 
basis of this determination is available in ADAMS Accession No. 
ML25288A041.
    The determination of this environmental assessment is that there 
will be no significant effect on the quality of the human environment 
from this action. Public stakeholders should note, however, that 
comments on any aspect of this environmental assessment may be 
submitted to the NRC as indicated under the ADDRESSES caption.

XII. Paperwork Reduction Act

    This proposed rule amends 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 for review and approval of the information 
collections.
    Type of submission: New.
    The title of the information collection: Modernizing Materials 
Licensing.
    The form number if applicable: Not applicable.
    How often the collection is required or requested: Certain events 
must be reported to the NRC Operations Center within 1 hour, 4 hours, 
or 24 hours of discovery, depending on the event type. Other reports 
are due within 30 days or 60 days of an event, semiannually, annually, 
or upon the occurrence of specific events. Records must be maintained 
for periods ranging from 3 years to the duration of the license or 
until decommissioning is complete, depending on the record type.
    Who will be required or asked to respond: Applicants and licensees 
regulated under 10 CFR parts 30, 37, 40, 51, 70, 72, and 140, including 
spent fuel reprocessing facilities and pilot fuel lines licensed under 
10 CFR part 70.
    An estimate of the number of annual responses:

10 CFR part 30: 3 (3 reporting responses + 0 recordkeepers)
10 CFR part 37: 2 (2 reporting responses + 0 recordkeepers)
10 CFR part 40: 0
10 CFR part 51: -8 (-8 reporting responses)
10 CFR part 70: 120 (92 reporting responses + 28 recordkeepers)
10 CFR part 72: -213 (-298 reporting responses + 85 recordkeepers)
10 CFR part 140: 1 (1 reporting response + 0 recordkeepers)

    The estimated number of annual respondents:

10 CFR part 30: 3
10 CFR part 37: 2
10 CFR part 40: 0 during the clearance period

[[Page 38144]]

10 CFR part 51: 0
10 CFR part 70: 31
10 CFR part 72: 85
10 CFR part 140: 1

    An estimate of the total number of hours needed annually to comply 
with the information collection requirement or request:

10 CFR part 30: 6 (6 reporting +0 recordkeeping)
10 CFR part 37: 16 (16 reporting + 0 recordkeeping)
10 CFR part 40: 0
10 CFR part 51: 0
10 CFR part 70: 44,591 (40,642 reporting + 3,949 recordkeeping)
10 CFR part 72: -2,305 (-2,900 reporting + 595 recordkeeping)
10 CFR part 140: 2 (2 reporting + 0 recordkeeping)

    Abstract: The proposed rule would revise information collection 
related to materials licensing. Major changes would include eliminating 
the nine-month advance application requirement for facility 
construction in 10 CFR parts 30, 40, and for some facilities under 10 
CFR part 70, and allowing construction to begin at the applicant's risk 
for most materials facility types; introducing a new exemption in 10 
CFR part 37 for large components and robust structures containing 
category 1 or category 2 quantities of radioactive material, with new 
recordkeeping for exemption documentation; streamlining and clarifying 
application content and reporting requirements in 10 CFR part 70, 
especially for spent fuel reprocessing facilities; shifting certain 
annual and biennial reporting requirements in 10 CFR part 72 to 
recordkeeping only, and adjusting notification and registration 
deadlines for spent fuel storage; and establishing new documentation 
requirements in 10 CFR part 140 for spent fuel reprocessing facility 
licensees (liability insurance and indemnification for reprocessing 
facilities). These changes collectively would reduce unnecessary 
regulatory burden, clarify ambiguous requirements, and improve the 
efficiency and practical utility of NRC's information collections, 
ensuring that the agency would continue to receive essential 
information for effective oversight while minimizing paperwork burdens 
on regulated entities.
    The NRC is seeking public comment on the potential impact of the 
information collection(s) contained in this proposed rule and on the 
following issues:
    1. Is the proposed information collection necessary for the proper 
performance of the functions of the NRC, including whether the 
information will have practical utility? Please explain your response.
    2. Is the estimate of the burden of the proposed information 
collection accurate? Please explain your response.
    3. Is there a way to enhance the quality, utility, and clarity of 
the information to be collected? Please explain your response.
    4. How can the burden of the proposed information collection on 
respondents be minimized, including the use of automated collection 
techniques or other forms of information technology?
    A copy of the OMB clearance package is available in ADAMS under 
Accession No. ML25288A044 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-2025-1370.
    You may submit comments on any aspect of these proposed information 
collections, including suggestions for reducing the burden and on the 
above issues, by the following method:
     Federal rulemaking website: Go to https://www.regulations.gov and search for Docket ID NRC-2025-1370.
    Submit comments by July 24, 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.

XIII. 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 a 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 can be found in Section VII, of 
this document, ``Regulatory Analysis.''

B. Executive Order 14154: Unleashing American Energy

    The NRC has examined this proposed rule and has determined that it 
is consistent with the policies and directives outlined in E.O. 14154.

C. Executive Order 14192: Unleashing Prosperity Through Deregulation

    This action is tentatively determined to be a deregulatory action 
as defined by E.O. 14192. Details on the estimated cost savings of this 
proposed rule can be found in Section VII of this document, 
``Regulatory Analysis.''

D. Executive Order 14270: Zero-Based Regulatory Budgeting To Unleash 
American Energy

    E.O. 14270, ``Zero-Based Regulatory Budgeting to Unleash American 
Energy,'' requires the NRC to insert a conditional sunset date into all 
new or amended NRC regulations provided the regulations are (1) 
promulgated under the 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 are necessary for 
providing reasonable assurance of adequate protection of public health 
and safety and 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 did not 
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 amend 10 CFR parts 70, 72, and 140 under one 
or more of Sections 161b, 161i, or 161o of the AEA, except as noted in 
Sec. Sec.  70.92, 72.86, and 140.89. The applicability of criminal 
penalties to regulations in 10 CFR parts 70, 72, and 140 is set forth 
in Sec. Sec.  70.92, 72.86, and 140.89. Willful violations of the 10 
CFR parts 70, 72, and 140 regulations, other than those listed in 
Sec. Sec.  70.92, 72.86, and 140.89 (including as updated by this 
proposed rule), would be subject to criminal enforcement.

[[Page 38145]]

XIV. Coordination With NRC Agreement States

    On September 3, 2025, the NRC held a government-to-government 
meeting with the Agreement States regarding E.O. 14300, ``Ordering the 
Reform of the Nuclear Regulatory Commission.'' In this meeting, the NRC 
presented its goals and objectives for future rulemakings, including 
this proposed rule, to be done in response to the E.O. At the time of 
the meeting, the proposed rule text was not available.

XV. Compatibility of Agreement State Regulations

    On the basis of the ``Agreement State Program Policy Statement'' 
approved by the Commission on October 2, 2017, and published in the 
Federal Register (82 FR 48535; October 18, 2017), NRC program elements 
can be placed into six categories (A, B, C, D, NRC, or health and 
safety (H&S)) to form the basis for evaluating and classifying the 
program elements. Under the Policy Statement, a program element means 
any component or function of a radiation control regulatory program, 
including regulations and other legally binding requirements imposed on 
regulated persons, which contributes to implementation of that program. 
This proposed rule only modifies regulations that are of Compatibility 
Categories B, C, D, and NRC.
    Compatibility Category B pertains to a limited number of program 
elements that cross jurisdictional boundaries and should be addressed 
to ensure uniformity of regulation on a nationwide basis. For 
Compatibility Category B, the Agreement State program element shall be 
essentially identical to that of NRC.
    Program elements in Compatibility Category C include those program 
elements that are important for an Agreement State to have in order to 
avoid conflict, duplication, gaps, or other conditions that would 
jeopardize an orderly pattern in the regulation of agreement material 
on a national basis. An Agreement State program shall embody the 
essential objectives of the Category C program elements. Under Category 
C, Agreement State program elements may be more restrictive than NRC 
program elements; however, they should not be so restrictive as to 
prohibit a practice authorized by the AEA, and in the national interest 
without an adequate public health and safety or environmental basis 
related to radiation protection.
    Compatibility Category D are those program elements that do not 
meet any of the criteria of Category A, B, or C, and are not required 
to be adopted by Agreement States for purposes of compatibility. An 
Agreement State has the flexibility to adopt and implement program 
elements within the State's jurisdiction that are not addressed by the 
NRC or that are not required for compatibility. However, such program 
elements of an Agreement State relating to agreement material shall (1) 
not create conflicts, duplications, gaps, or other conditions that 
would jeopardize an orderly pattern in the regulation of agreement 
material on a nationwide basis; (2) not preclude a practice authorized 
by the AEA and in the national interest; and (3) not preclude the 
ability of the NRC to evaluate the effectiveness of Agreement State 
programs for agreement material with respect to protection of public 
health and safety.
    Compatibility Category NRC are those program elements that address 
areas of regulation that cannot be relinquished to the Agreement States 
under the AEA, or provisions of 10 CFR. The NRC maintains regulatory 
authority over these program elements and the Agreement States must not 
adopt these NRC program elements. However, an Agreement State may 
inform its licensees of these NRC requirements through a mechanism 
under the State's administrative procedure laws, as long as the State 
adopts these provisions solely for the purposes of notification, and 
does not exercise any regulatory authority as a result.
    The proposed rule is a matter of compatibility between the NRC and 
the Agreement States, thereby providing consistency among Agreement 
State and NRC requirements. The compatibility (A, B, C, D, and NRC) and 
adequacy (H&S) categories are designated in the following table:
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XVI. Availability of Guidance

    Due to the accelerated schedule for this rulemaking, the NRC is not 
issuing draft guidance for implementation of the proposed requirements 
at this time. However, the NRC has prepared ``frequently asked 
questions'' which, when finalized, will be posted to the NRC public 
website to provide stakeholders with guidance for implementing the 
final requirements contemplated by this proposed rule. The FAQs are 
available in ADAMS at Accession No. ML26168A407. You may submit 
comments on the draft FAQs by the methods outlined in the ADDRESSES 
section of this document.

XVII. 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 38149]]

[GRAPHIC] [TIFF OMITTED] TP24JN26.055


[[Page 38150]]


[GRAPHIC] [TIFF OMITTED] TP24JN26.056

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

[[Page 38151]]

under Docket ID NRC-2025-1370. 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-2025-1370); (2) click the ``Subscribe'' link; and 
(3) enter an email address and click on the ``Subscribe'' link.

List of Subjects

10 CFR Part 30

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

10 CFR Part 37

    Byproduct material, Criminal penalties, Exports, Hazardous 
materials transportation, Imports, Licensed material, Nuclear 
materials, Penalties, Radioactive materials, Reporting and 
recordkeeping requirements, Security measures.

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 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 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 140

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

    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 30, 37, 40, 51, 70, 72 and 140:

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

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

    Authority: 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
2. In Sec.  30.32, revise paragraph (f) to read as follows:


Sec.  30.32  Application for specific licenses.

* * * * *
    (f) Any application for license under this part must include the 
environmental information required by part 51 of this chapter.
* * * * *
0
3. In Sec.  30.33, revise paragraph (a)(5) to read as follows:


Sec.  30.33   General requirements for issuance of specific licenses.

* * * * *
    (a) * * *
    (5) In the case of an application for a license to receive and 
possess byproduct material for the conduct of any activity that the NRC 
determines will significantly affect the quality of the environment, 
the Director, Office of Nuclear Material Safety and Safeguards or 
designee, on the basis of information filed and evaluations made 
pursuant to part 51 of this chapter, has concluded that the action 
called for is the issuance of the proposed license, with any 
appropriate conditions to protect environmental values. Commencement of 
construction prior to this conclusion is undertaken by the applicant at 
its own risk. Commencement of construction as defined in Sec.  30.4 of 
this part may include non-construction activities if the activity has a 
reasonable nexus to radiological safety and security.
* * * * *

PART 37--PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 
QUANTITIES OF RADIOACTIVE MATERIAL

0
4. The authority citation for part 37 continues to read as:

    Authority: Authority: Atomic Energy Act of 1954, secs. 11, 53, 
81, 103, 104, 147, 148, 149, 161, 182, 183, 223, 234, 274 (42 U.S.C. 
2014, 2073, 2111, 2133, 2134, 2167, 2168, 2169, 2201, 2232, 2233, 
2273, 2282, 2021); Energy Reorganization Act of 1974, secs. 201, 202 
(42 U.S.C. 5841, 5842); 44 U.S.C. 3504 note.

0
5. In Sec.  37.5, add in alphabetical order the definitions for Large 
component and Robust structure to read as follows:


Sec.  37.5   Definitions.

* * * * *
    Large component means an item weighing 2,000 kg (4,409 lbs) or 
more, but not containing either discrete sources or ion exchange 
resins. Large components typically include steam generators, steam 
dryers, turbine rotors, reactor vessels, reactor vessel heads, reactor 
coolant pumps, and shielding blocks.
* * * * *
    Robust structure means a closed concrete bunker or modular vault, 
for which access to the radioactive materials contained within the 
structure is gained only through the use of heavy equipment to remove 
structural components or large access blocks that weigh 2,000 kg (4,409 
lbs) or more.
* * * * *
0
6. In Sec.  37.11, revise paragraph (c) introductory text and add 
paragraph (d) to read as follows:


Sec.  37.11   Specific exemptions.

* * * * *
    (c) A licensee that possesses radioactive waste containing category 
1 or category 2 quantities of radioactive material that does not 
contain discrete sources or ion-exchange resins, or is activated 
material weighing greater than 2,000 kg (4,409 lbs), is exempt from the 
requirements of subparts B, C, and D of this part. The licensee must, 
instead, implement the following requirements to secure the radioactive 
waste:
* * * * *
    (d) A licensee is exempt from the requirements of subparts B, C, 
and D of this part to the extent its category 1 or category 2 
quantities of radioactive material is a large component or is contained 
within a robust structure. The licensee must satisfy the following 
requirements to rely upon this exemption:
    (1) The licensee identifies in writing those large components and 
robust

[[Page 38152]]

structures containing category 1 or category 2 quantities of 
radioactive material; and
    (2) The licensee has an approved 10 CFR part 73 security plan or a 
written 10 CFR part 37 security plan that provides security measures 
adequate to detect, assess, and respond to actual or attempted theft or 
diversion, as well as a written analysis that considers the time needed 
to accomplish these activities given the proximity and mobility of the 
equipment available for the large components and robust structures 
identified in accordance with paragraph (d)(1) of this section; and
    (3) The licensee has a written analysis documenting that the 
measures in this section do not decrease the effectiveness of the 10 
CFR part 73 security plan.
* * * * *

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

0
7. 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
8. In Sec.  40.31, revise paragraph (f) to read as follows:


Sec.  40.31   Application for specific licenses.

* * * * *
    (f) Any application for license under this part must include the 
environmental information required by part 51 of this chapter.
* * * * *
0
9. In Sec.  40.32, revise paragraph (e) to read as follows:


Sec.  40.32   General requirements for issuance of specific licenses.

* * * * *
    (e) In the case of an application for the conduct of any activity, 
other than for a license for a uranium enrichment facility, that the 
NRC determines will significantly affect the quality of the 
environment, the Director, Office of Nuclear Material Safety and 
Safeguards or designee, on the basis of information filed and 
evaluations made pursuant to part 51 of this chapter, has concluded 
that the action called for is the issuance of the proposed license, 
with any appropriate conditions to protect environmental values. 
Commencement of construction prior to this conclusion is undertaken by 
the applicant at its own risk. Commencement of construction as defined 
in Sec.  40.4 of this part may include non-construction activities if 
the activity has a reasonable nexus to radiological safety and 
security.
* * * * *

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

0
10. The authority citation for part 51 continues to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 161, 193 (42 U.S.C. 
2201, 2243); Energy Reorganization Act of 1974, secs. 201, 202 (42 
U.S.C. 5841, 5842); National Environmental Policy Act of 1969 (42 
U.S.C. 4332, 4334, 4335); Nuclear Waste Policy Act of 1982, secs. 
144(f), 121, 135, 141, 148 (42 U.S.C. 10134(f), 10141, 10155, 10161, 
10168); 44 U.S.C. 3504 note.
    Sections 51.20, 51.30, 51.60, 51.80, and 51.97 also issued under 
Nuclear Waste Policy Act secs. 135, 141, 148 (42 U.S.C. 10155, 
10161, 10168).
    Section 51.22 also issued under Atomic Energy Act sec. 274 (42 
U.S.C. 2021) and under Nuclear Waste Policy Act sec. 121 (42 U.S.C. 
10141).
    Sections 51.43, 51.67, and 51.109 also issued under Nuclear 
Waste Policy Act sec. 114(f) (42 U.S.C. 10134(f)).

0
11. In Sec.  51.22, revise paragraph (a)(12) to read as follows:


Sec.  51.22   Criterion for categorical exclusion; identification of 
licensing and regulatory actions eligible for categorical exclusion or 
otherwise not requiring environmental review.

    (a) * * *
    (12) Issuance of certificates for new, amended, revised, or renewed 
certificates of compliance for cask designs used for spent fuel 
storage.
* * * * *

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

0
12. The authority citation for part 70 is revised to read as follows:

    Authority:  Atomic Energy Act secs. 51, 53, 102, 103, 104, 107, 
161, 182, 183, 185, 189, 193, 223, 234 (42 U.S.C. 2071, 2073, 2132, 
2133, 2134, 2137, 2201, 2232, 2233, 2235, 2239, 2243, 2273, 2282, 
2297f); secs. 201, 202, 204, 206, 211 (42 U.S.C. 5841, 5842, 5845, 
5846, 5851); Government Paperwork Elimination Act sec. 1704 (44 
U.S.C. 3504 note); Energy Policy Act of 2005, Pub. L. 109-58, 119 
Stat. 194 (2005).
    Sections 70.1(c) and 70.20a(b) also issued under secs. 135, 141, 
Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).
    Section 70.21(g) also issued under Atomic Energy Act sec. 122 
(42 U.S.C. 2152). Section 70.31 also issued under Atomic Energy Act 
sec. 57(d) (42 U.S.C. 2077(d)). Sections 70.36 and 70.44 also issued 
under Atomic Energy Act sec. 184 (42 U.S.C. 2234). Section 70.81 
also issued under Atomic Energy Act secs. 186, 187 (42 U.S.C. 2236, 
2237). Section 70.82 also issued under Atomic Energy Act sec. 108 
(42 U.S.C. 2138).

0
13. In Sec.  70.1, remove and reserve paragraph (d), and add paragraph 
(f) to read as follows:


Sec.  70.1   Purpose.

* * * * *
    (d) [Reserved]
* * * * *
    (f) The regulations in this part establish requirements, 
procedures, and criteria that may be used for the issuance of licenses 
for a spent fuel reprocessing facility, including issuance of operator 
licenses, subject to additional requirements, conditions and 
exemptions, as determined by the Commission on a case-by-case basis.
0
14. In Sec.  70.4, add in alphabetical order the definitions for 
Combined license, Control, Operator license, Pilot fuel line, and Spent 
fuel reprocessing facility to read as follows:


Sec.  70.4   Definitions.

* * * * *
    Combined license, as used in this part, means a combined 
construction permit and operating license with conditions for a spent 
fuel reprocessing facility that is a production facility issued under 
this part.
* * * * *
    Control, as used in Sec. Sec.  70.22(o) and 70.32(n) of this part 
with respect to an operator licensing program for a spent fuel 
reprocessing facility licensed under this part, means an engineered 
item relied on for safety, the manipulation of which could result in 
unmitigated high consequences identified in Sec.  70.61(b) of this part 
to any individual located outside the controlled area identified 
pursuant to Sec.  70.61(f) of this part.
* * * * *
    Operator license means a license issued to an individual under this 
part for operating a spent fuel reprocessing facility.
* * * * *
    Pilot fuel line means a facility authorized by the Department of 
Energy, at the time of submittal of an application under this part, to 
produce nuclear fuel for non-commercial purposes for qualified test 
reactors under the Department's Reactor Pilot Program.
* * * * *
    Spent fuel reprocessing facility means a facility that separates 
irradiated fuel for the purpose of recovering fissionable material, 
including a facility that meets the definition of a production facility 
in

[[Page 38153]]

Sec.  50.2 of this chapter, excluding subsection (1) which states 
``[a]ny nuclear reactor designed or used primarily for the formation of 
plutonium or uranium-233.''
* * * * *
0
15. In Sec.  70.5, add paragraphs (b)(1)(viii) and (ix) to read as 
follows:


Sec.  70.5   Communications.

* * * * *
    (b) * * *
    (1) * * *
    (viii) Spent fuel reprocessing facilities licensed under this part.
    (ix) Operator licenses for spent fuel reprocessing facilities.
* * * * *
0
16. In Sec.  70.11, revise paragraph (c), and add paragraph (d) to read 
as follows:


Sec.  70.11   Persons using special nuclear material under certain 
Department of Energy and Nuclear Regulatory Commission contracts.

* * * * *
    (c) the use or operation of nuclear reactors or other nuclear 
devices in a United States Government-owned vehicle or vessel. In 
addition to the foregoing exemptions, and subject to the requirement 
for licensing of Department facilities and activities pursuant to 
section 202 of the Energy Reorganization Act of 1974, any prime 
contractor or subcontractor of the Department or the Commission is 
exempt from the requirements for a license set forth in section 53 of 
the Act and from the regulations in this part to the extent that such 
prime contractor or subcontractor receives title to, owns, acquires, 
delivers, receives, possesses, uses, or transfers special nuclear 
material under his prime contract or subcontract when the activity 
conducted by the prime contractor or subcontractor is authorized by 
law; and that, under the terms of the contract or subcontract there is 
adequate assurance that the work thereunder can be accomplished without 
undue risk to the public health and safety; or
    (d) the construction and operation of pilot fuel lines as defined 
in Sec.  70.4 of this part.
0
17. In Sec.  70.21, revise paragraphs (a), (e), and (f), and remove and 
reserve paragraph (h) to read as follows:


Sec.  70.21   Filing.

    (a)(1) A person may apply for any license issued under this part by 
filing the application in accordance with the instructions in Sec.  
70.5(a) of this part. If the application is on paper, only one copy 
need be provided. If the application is to be submitted electronically, 
see guidance for electronic submissions to the Commission.
    (2) [Reserved]
    (3) Information contained in previous applications, statements, or 
reports filed with the Commission may be incorporated by reference if 
the references are clear and specific.
    (4) An application for a combined license for a spent fuel 
reprocessing facility must be executed in a signed original by the 
applicant or duly authorized officer thereof under oath or affirmation.
* * * * *
    (e) Each application for a special nuclear material license, other 
than a license exempted from part 170 of this chapter, must be 
accompanied by the fee prescribed in part 170 of this chapter. No fee 
will be required to accompany an application for renewal or amendment 
of a license, except as provided in part 170 of this chapter.
    (f) Any application for a license under this part must include the 
environmental information required by part 51 of this chapter.
* * * * *
    (h) [Reserved]
0
18. In Sec.  70.22, revise paragraphs (a)(7), (b), (f), and (n), and 
add paragraphs (o), (p), (q), and (r) to read as follows:


Sec.  70.22   Contents of applications.

    (a) * * *
    (7) A description of equipment and facilities which will be used by 
the applicant to protect health and minimize danger to life or property 
(such as handling devices, working areas, shields, measuring and 
monitoring instruments, devices for the disposal of radioactive 
effluents, and management and storage of radioactive wastes including 
high level waste, storage facilities, criticality accident alarm 
systems, etc.);
* * * * *
    (b) Each application for a license to possess special nuclear 
material, to possess equipment capable of enriching uranium, to operate 
a uranium enrichment facility or a spent fuel reprocessing facility 
licensed under this part, 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 53 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. Sec.  
74.31, 74.33, 74.41, or 74.51 of this chapter, as applicable, will be 
accomplished.
* * * * *
    (f) Each application for a license to possess and use special 
nuclear material in a plutonium processing and fuel fabrication plant 
or a spent fuel reprocessing facility must include a quality assurance 
program that meets the criteria in appendix B of part 50 or 53 of this 
chapter.
* * * * *
    (n) A license application that involves the use of special nuclear 
material in a uranium enrichment facility or a spent fuel reprocessing 
facility must include the applicant's provisions for liability 
insurance.
    (o) Each application for a spent fuel reprocessing facility must 
contain a proposed operator licensing program if operation of the 
facility involves the manipulation of a control as defined in Sec.  
70.4 of this part. The proposed operator licensing program shall 
include a description of the training, examination, and proficiency 
programs necessary to implement the operator licensing program.
    (p) Each application for a combined license for a spent fuel 
reprocessing facility must contain proposed technical specifications; 
and proposed inspections, tests, and analyses, including those 
applicable to emergency planning, and proposed acceptance criteria that 
are necessary and sufficient to provide reasonable assurance that if 
the inspections, tests, and analyses are performed, and the acceptance 
criteria are met, the facility will be constructed and operated in 
conformity with the combined license, the provisions of the Act, and 
the Commission's rules and regulations.
    (q) Each application for a spent fuel reprocessing facility, in 
addition to other information required under this part, must also 
contain any proposed exemption requests, and any proposed license 
conditions as necessary on a case-by-case basis to meet statutory 
requirements and provide for reasonable assurance of adequate 
protection of public health and safety and common defense and security.
    (r) Each application for a license under this part from an 
applicant that is authorized by the Department for a pilot fuel line, 
in addition to other information required under this part, must 
identify how aspects of the authorization satisfy NRC regulations and 
statutory provisions, including how

[[Page 38154]]

any changes to the facility design and operations address applicable 
NRC requirements and statutory provisions.
0
19. In Sec.  70.23, revise paragraphs (a)(7), (a)(8), (a)(11), and 
(a)(12), add paragraphs (a)(13) through (a)(16), and remove and reserve 
paragraph (b), to read as follows:


Sec.  70.23   Requirements for the approval of applications.

    (a) * * *
    (7) Where the proposed activity is an activity, other than 
construction and operation of a uranium enrichment facility or a spent 
fuel reprocessing facility for which the NRC determines will 
significantly affect the quality of the environment, the Director, 
Office of Nuclear Material Safety and Safeguards or designee, on the 
basis of information filed and evaluations made pursuant to part 51 of 
this chapter, has concluded that the action called for is the issuance 
of the proposed license, with any appropriate conditions to protect 
environmental values. Commencement of construction prior to this 
conclusion is undertaken by the applicant at its own risk. Commencement 
of construction as defined in Sec.  70.4 of this part may include non-
construction activities if the activity has a reasonable nexus to 
radiological safety and security.
    (8) Where the proposed activity is construction and operation of a 
uranium enrichment facility or a spent fuel reprocessing facility, the 
Director, Office of Nuclear Material Safety and Safeguards or designee, 
before commencement of construction of the plant or facility in which 
the activity will be conducted, on the basis of information filed and 
evaluations made pursuant to part 51 of this chapter, has concluded, 
that the action called for is the issuance of the proposed license, 
with any appropriate conditions to protect environmental values. 
Commencement of construction prior to this conclusion is grounds for 
denial to possess and use special nuclear material in the plant or 
facility. Commencement of construction as defined in Sec.  70.4 of this 
part may include non-construction activities if the activity has a 
reasonable nexus to radiological safety and security.
* * * * *
    (11) Where the proposed activity is processing and fuel 
fabrication, scrap recovery, conversion of uranium hexafluoride, or 
involves the use of special nuclear material in a uranium enrichment 
facility or a spent fuel reprocessing facility, the applicant's 
proposed emergency plan is adequate.
    (12) For proposed activities under this part where it is 
statutorily required or otherwise determined to be necessary, 
applicable provisions of part 140 of this chapter have been satisfied.
    (13) Where the proposed activity is use of special nuclear material 
in a plutonium processing and fuel fabrication plant or a spent fuel 
reprocessing facility, the QA program satisfies the criteria in 
appendix B of part 50 of this chapter.
    (14) Where the proposed activity is use of special nuclear material 
in a spent fuel reprocessing facility, all relevant statutory 
provisions and appropriate regulations, including conditions required 
under this part, have been satisfied.
    (15) Where the application is for a license under this part for a 
facility that is also a Department of Energy authorized pilot fuel 
line, all relevant statutory provisions and appropriate regulations, 
including the conditions required under this part that were not 
satisfied by the Department of Energy's authorization, have been 
satisfied.
    (16) Where the proposed activity is a licensed operator for a spent 
fuel reprocessing facility, the applicant meets the requirements of the 
spent fuel reprocessing facility's approved operator licensing program.
    (b) [Reserved]
0
20. Revise Sec.  70.23a to read as follows:


Sec.  70.23a   Hearings required.

    The Commission will hold a hearing on each application for issuance 
of a license for construction and operation of a uranium enrichment 
facility or a combined license for a spent fuel reprocessing facility. 
The Commission will publish public notice of the hearing in the Federal 
Register at least thirty (30) days before the hearing.
0
21. In Sec.  70.24, revise paragraph (a) to read as follows:


Sec.  70.24   Criticality accident requirements.

    (a) Each licensee authorized to possess special nuclear material in 
a quantity exceeding 700 grams of contained uranium-235, 520 grams of 
uranium-233, 450 grams of plutonium, 1,500 grams of contained uranium-
235 if no uranium enriched to more than 4 percent by weight of uranium-
235 is present, 450 grams of any combination thereof, or one-half such 
quantities if massive moderators or reflectors made of graphite, heavy 
water or beryllium may be present, must maintain in each area in which 
such licensed special nuclear material is handled, used, or stored, a 
monitoring system meeting the requirements of paragraph (a)(1) and 
using gamma- or neutron-sensitive radiation detectors that will 
energize clearly audible alarm signals if accidental criticality 
occurs, unless it is demonstrated that criticality is not credible 
based on the laws of physics. This section is not intended to require 
underwater monitoring when special nuclear material is handled or 
stored beneath water shielding or to require monitoring systems when 
special nuclear material is being transported when packaged in 
accordance with the requirements of part 71 of this chapter.
    (1) * * *
    (2) [Reserved]
    (3) The licensee must maintain emergency procedures for each area 
in which criticality is credible to ensure that all personnel withdraw 
to an area of safety upon the sounding of the alarm. These procedures 
must include the conduct of drills to familiarize personnel with the 
evacuation plan, and designation of responsible individuals for 
determining the cause of the alarm, and placement of radiation survey 
instruments in accessible locations for use in such an emergency. The 
licensee must retain a copy of current procedures for each area as a 
record for as long as licensed special nuclear material is handled, 
used, or stored in the area. The licensee must retain any superseded 
portion of the procedures for three years after the portion is 
superseded.
* * * * *
0
22. In Sec.  70.25, revise paragraph (a) and add paragraph (a)(3) to 
read as follows:


Sec.  70.25   Financial assurance and recordkeeping for 
decommissioning.

    (a) Each applicant for a specific license of the types described in 
paragraphs (a)(1), (2), and (3) of this section must submit a 
decommissioning funding plan as described in paragraph (e) of this 
section.
* * * * *
    (3) A specific license, including a combined license, for a spent 
fuel reprocessing facility.
* * * * *
0
23. In Sec.  70.31, revise paragraph (e) and add paragraph (f) to read 
as follows:


Sec.  70.31   Issuance of licenses.

* * * * *
    (e) No combined license for a spent fuel reprocessing facility or a 
license to construct and operate a uranium enrichment facility may be 
issued until a hearing is completed and decision issued on the 
application.
    (f) Each combined license for a spent fuel reprocessing facility 
will include the required inspections, tests, and analyses, including 
those for emergency planning, that the licensee must perform, and that, 
if met, are necessary

[[Page 38155]]

and sufficient to provide reasonable assurance that the facility has 
been constructed and will be operated in conformity with the license.
0
24. In Sec.  70.32:
0
a. In paragraph (c)(2)(i), remove the phrase ``Two months'' and add in 
its place the phrase ``Four months'';
0
b. In paragraph (c)(2)(ii), remove the phrase ``Six months'' and add in 
its place the phrase ``Twelve months'';
0
c. In paragraphs (d) and (e), remove the phrase ``two months'' and add 
in its place the phrase ``twelve months''; and
0
d. Add paragraphs (l), (m), and (n).
    The additions read as follows:


Sec.  70.32  Conditions of licenses.

* * * * *
    (l) No person may commence operation of a spent fuel reprocessing 
facility until the Commission verifies through inspection that the 
facility has been constructed and will operate in accordance with the 
requirements of the license.
    (m) A combined license for a spent fuel reprocessing facility will 
be issued on condition that the Commission has ensured that the 
prescribed inspections, tests, and analyses are performed. No person 
may commence operation under a combined license for a spent fuel 
reprocessing facility until the Commission finds that the acceptance 
criteria identified within the combined license have been met. The 
Commission shall publish notice of the inspection results in the 
Federal Register.
    (n) The Commission shall prescribe conditions necessary to 
determine the qualifications of, and issue operator licenses to, 
operators of spent fuel reprocessing facilities if operation of the 
facility involves the manipulation of a control, as defined in Sec.  
70.4 of this part. A spent fuel reprocessing facility licensee may not 
permit the manipulation of the controls of any facility by anyone who 
is not a licensed operator except in cases where a non-licensed 
operator manipulates the controls under the direction and in the 
presence of a licensed operator.
0
25. In Sec.  70.40, revise the introductory text and paragraph (a) to 
read as follows:


Sec.  70.40   Ineligibility of certain applicants.

    A license may not be issued to the Corporation, or to an applicant 
for a spent fuel reprocessing facility, if the Commission determines 
that:
    (a) The Corporation, or the applicant for a spent fuel reprocessing 
facility, is owned, controlled, or dominated by an alien, a foreign 
corporation, or a foreign government; or
* * * * *
0
26. In Sec.  70.42, revise paragraph (d)(3) to read as follows:


Sec.  70.42  Transfer of special nuclear material.

* * * * *
    (d) * * *
    (3) For emergency shipments the transferor may accept oral 
certification by the transferee that he or she is authorized by license 
or registration certification to receive the type, form, and quantity 
of special nuclear material to be transferred, specifying the license 
or registration certificate number, issuing agency, and expiration 
date, provided that the oral certification is confirmed in writing 
within 10 days, through one of the methods described within this 
section. The transferor must retain the written confirmation of the 
oral certification for three years from the date of receipt of the 
confirmation;
* * * * *
0
27. Revise Sec.  70.50 to read as follows:


Sec.  70.50   Reporting requirements.

    Each licensee must report the applicable events as described in 
appendix A to part 70 of this chapter.


Sec.  70.52   [Reserved]

0
28. Remove and reserve Sec.  70.52.
0
29. Revise Sec.  70.59 to read as follows:


Sec.  70.59  Effluent monitoring reporting requirements.

    Within 60 days after January 1 of each year, and using an 
appropriate method listed in Sec.  70.5(a) of this part, each licensee 
authorized to possess and use special nuclear material for processing 
and fuel fabrication, scrap recovery, conversion of uranium 
hexafluoride, or in a spent fuel reprocessing facility, or uranium 
enrichment facility must submit a report addressed: ATTN: Document 
Control Desk, Director, Office of Nuclear Material Safety and 
Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-
0001, with a copy to the appropriate NRC Regional Office shown in 
appendix D to part 20 of this chapter. The report must specify the 
quantity of each of the principal radionuclides released to 
unrestricted areas in liquid and gaseous effluents during the previous 
12 months of operation, and such other information as the Commission 
may require to estimate maximum potential annual radiation doses to the 
public resulting from effluent releases. If quantities of radioactive 
materials released during the reporting periods are significantly above 
the licensee's design objectives previously reviewed as part of the 
licensing action, the report must cover this specifically. On the basis 
of these reports and any additional information the Commission may 
obtain from the licensee or others, the Commission may from time to 
time require the licensee to take such action as the Commission deems 
appropriate.
0
30. Revise Sec.  70.60 to read as follows:


Sec.  70.60   Applicability.

    The regulations in Sec.  70.61 through Sec.  70.76 of this part 
apply, in addition to other applicable Commission regulations, to each 
applicant or licensee that is or plans to be authorized to possess 
greater than a critical mass of special nuclear material, and engaged 
in enriched uranium processing, fabrication of uranium fuel or fuel 
assemblies, uranium enrichment, enriched uranium hexafluoride 
conversion, plutonium processing, fabrication of mixed-oxide fuel or 
fuel assemblies, scrap recovery of special nuclear material, or any 
other activity that the Commission determines could significantly 
affect public health and safety. For a spent fuel reprocessing facility 
applicant or licensee, additional requirements beyond those described 
in Sec.  70.61 through Sec.  70.76 of this part may be necessary, as 
determined on a case-by-case basis, and may be required by this part or 
other parts of this chapter, license condition or order. The 
regulations in Sec.  70.61 through Sec.  70.76 do not apply to 
decommissioning activities performed pursuant to other applicable 
Commission regulations including Sec.  70.25 and Sec.  70.38 of this 
part. Also, the regulations in Sec.  70.61 through Sec.  70.76 of this 
part do not apply to activities that are licensed by the Commission 
pursuant to other parts of this chapter.
0
31. In Sec.  70.61, revise paragraph (e) to read as follows:


Sec.  70.61   Performance requirements.

* * * * *
    (e) Each engineered or administrative control or control system 
necessary to comply with paragraphs (b), (c), or (d) of this section 
must satisfy either (e)(1) or (2).
    (1) The control or control system must be designated as an item 
relied on for safety. The safety program, established and maintained 
pursuant to Sec.  70.62 of this subpart, must ensure that each item 
relied on for safety will be available and reliable to perform its 
intended function when needed and in the context of the performance 
requirements of this section.
    (2) Structures credited with preventing or mitigating natural 
phenomena-initiated accident sequences may be credited to demonstrate 
compliance with the performance requirements in paragraphs (b), (c), 
and (d) of Sec.  70.61 of this part without being designated as an item

[[Page 38156]]

relied on for safety, if all of the following are met:
    (i) The structures are designed in accordance with acceptable 
standards that demonstrate the risks of natural phenomena-initiated 
accident sequences are appropriately limited per the performance 
requirements in paragraphs (b), (c), and (d) of Sec.  70.61 of this 
part;
    (ii) The credit is only applied to the structural stability safety 
function of a structure and does not apply to any other safety 
function; and
    (iii) The aspects of the structures that are credited to meet the 
performance requirements are maintained available and reliable subject 
to the requirements for management measures in Sec.  70.62(d) of this 
part.
* * * * *
0
32. In Sec.  70.62, revising paragraph (c)(1)(vi) and remove and 
reserve paragraph (c)(3) to read as follows:


Sec.  70.62   Safety program and integrated safety analysis.

* * * * *
    (c) * * *
    (1) * * *
    (vi) Each item relied on for safety identified pursuant to Sec.  
70.61(e)(1) of this part and each structure addressed in Sec.  
70.61(e)(2) of this part, the characteristics of its preventive, 
mitigative, or other safety function, and the assumptions and 
conditions under which the item is relied upon to support compliance 
with the performance requirements of Sec.  70.61 of this part.
* * * * *
    (3) [Reserved]
* * * * *
0
33. In Sec.  70.64, revise paragraphs (a) introductory text, (a)(1) and 
(a)(8) to read as follows:


Sec.  70.64   Requirements for new facilities or new processes at 
existing facilities.

    (a) Baseline design criteria. Each prospective applicant or 
licensee must address the following baseline design criteria in the 
design of new facilities. Each existing licensee must address the 
following baseline design criteria in the design of new processes at 
existing facilities that require a license amendment under Sec.  70.72 
of this part. The baseline design criteria must be applied to the 
design of new facilities and new processes, but do not require 
retrofits to existing facilities or existing processes (e.g., those 
housing or adjacent to the new process); however, all facilities and 
processes must comply with the performance requirements in Sec.  70.61 
of this part. Licensees must maintain the application of these criteria 
unless the analysis performed pursuant to Sec.  70.62(c) of this part 
demonstrates that a given item is not relied on to meet the performance 
requirements of Sec.  70.61 of this part.
    (1) Quality standards and records. The design must be developed and 
implemented in accordance with management measures, to provide adequate 
assurance that items relied on for safety, and structures addressed in 
Sec.  70.61(e)(2) of this part, will be available and reliable to 
perform their function when needed. Appropriate records of these items 
must be maintained by or under the control of the licensee throughout 
the life of the facility.
* * * * *
    (8) Inspection, testing, and maintenance. The design of items 
relied on for safety, and structures addressed in Sec.  70.61(e)(2) of 
this part, must provide for adequate inspection, testing, and 
maintenance, to ensure their availability and reliability to perform 
their function when needed.
* * * * *
0
34. In Sec.  70.65, revise paragraph (b)(6) to read as follows:


Sec.  70.65  Additional content of applications.

* * * * *
    (b) * * *
    (6) A list briefly describing each item relied on for safety which 
is identified pursuant to Sec.  70.61(e)(1) and any structures 
addressed in Sec.  70.61(e)(2) of this part in sufficient detail to 
understand their functions in relation to the performance requirements 
of Sec.  70.61of this part;
* * * * *
0
35. In Sec.  70.72, revise paragraphs (c)(3) through (c)(5) to read as 
follows:


Sec.  70.72   Facility changes and change process.

* * * * *
    (c) * * *
    (3) Does not degrade the safety function of a structure addressed 
in 70.61(e)(2) of this part;
    (4) Does not alter any item relied on for safety, listed in the 
integrated safety analysis summary, that is the sole item preventing or 
mitigating an accident sequence that exceeds the performance 
requirements of Sec.  70.61 of this part; and
    (5) Is not otherwise prohibited by this section, license condition, 
or order.
* * * * *
0
36. Revise Sec.  70.73 to read as follows:


Sec.  70.73   Renewal of licenses.

    Applications for renewal of a license must be filed in accordance 
with Sec. Sec.  2.109, 70.21, 70.22, 70.33, 70.38, and 70.65 of this 
chapter. A renewal application should be narrowly focused on the scope 
of the renewal and contain as few documents as possible. Information 
contained in previous applications, statements, or reports filed with 
the Commission under the license may be incorporated by reference, 
provided that these references are clear and specific.


Sec.  70.74   [Reserved]

0
37. Remove and reserve Sec.  70.74.
0
38. Revise and republish appendix A to part 70 to read as follows:

Appendix A to Part 70--Reportable Safety Events.

    (a) One hour reports. Events to be reported to the NRC 
Operations Center within 1 hour of discovery, supplemented with the 
information in (e)(1) of this appendix as it becomes available, 
followed by a written report within 60 days:
    (1) An inadvertent nuclear criticality (all facilities, 
including part 50 of this chapter facilities).
    (2) An acute intake by an individual of 30 mg or greater of 
uranium in a soluble form.
    (3) An acute chemical exposure to an individual from licensed 
material or hazardous chemicals produced from licensed material that 
exceeds the quantitative standards established to satisfy the 
requirements in Sec.  70.61(b)(4) of this part.
    (4) An event or condition such that no items relied on for 
safety, as documented in the integrated safety analysis summary, 
remain available and reliable, in an accident sequence evaluated in 
the integrated safety analysis, to perform their function:
    (i) In the context of the performance requirements in Sec.  
70.61(b) and Sec.  70.61(c) of this part, or
    (ii) Prevent a nuclear criticality accident (i.e., loss of all 
controls in a particular sequence).
    (b) Four hour reports. Within 4 hours of discovery, supplemented 
with the information in (e)(1) of this appendix as it becomes 
available, report events that prevent immediate protective actions 
necessary to avoid exposures to radiation or radioactive materials 
that could exceed regulatory limits or releases of licensed material 
that could exceed regulatory limits (events may include fires, 
explosions, toxic gas releases, etc.).
    (c) Twenty-four hour reports. Within 24 hours of discovery, 
supplemented with the information in (e)(1) of this appendix as it 
becomes available, report:
    (1) Any event or condition that results in the facility being in 
a state that was not analyzed, was improperly analyzed, or is 
different from that analyzed in the integrated safety analysis, and 
which results in failure to meet the performance requirements of 
Sec.  70.61 of this part.
    (2) Loss or degradation of items relied on for safety that 
results in failure to meet the performance requirement of Sec.  
70.61 of this part, except where other reportability criteria have 
been approved as defined in the integrated safety analysis and 
documented in the license application.

[[Page 38157]]

    (3) An acute chemical exposure to an individual from licensed 
material or hazardous chemicals produced from licensed materials 
that exceeds the quantitative standards that satisfy the 
requirements of Sec.  70.61(c)(4) of this part.
    (4) Any natural phenomenon or other external event, including 
fires internal and external to the facility, that has affected or 
may have affected the intended safety function or availability or 
reliability of one or more items relied on for safety or structures 
identified under 70.61(e) of this part.
    (5) An unplanned contamination event that:
    (i) Requires access to the contaminated area, by workers or the 
public, to be restricted for more than 24 hours by imposing 
additional radiological controls or by prohibiting entry into the 
area;
    (ii) Involves a quantity of material greater than five times the 
lowest annual limit on intake specified in appendix B of Sec. Sec.  
20.1001-20.2401 of part 20 of this chapter for the material; and
    (iii) Has access to the area restricted for a reason other than 
to allow isotopes with a half-life of less than 24 hours to decay 
prior to decontamination.
    (iv) Exceptions: when the unplanned contamination event occurs 
in a restricted area which is maintained inaccessible to the public 
by multiple access controls, the area was controlled as a 
radioactive material area within a building before the event 
occurred, the release of radioactive material is contained within 
the radioactive material area and no contamination has spread 
outside the radioactive materials area, licensee personnel trained 
in contamination control are readily available, equipment and 
facilities that may be needed for contamination control are readily 
available, and the otherwise reportable unplanned contamination 
event is documented in the licensee's corrective action program.
    (6) An event in which equipment is disabled or fails to function 
as designed when:
    (i) The equipment is required by regulation or licensee 
condition to prevent or mitigate releases exceeding regulatory 
limits or exposures to radiation and radioactive materials exceeding 
regulatory limits;
    (ii) The equipment is required to be available and operable when 
it is disabled or fails to function; and
    (iii) No redundant equipment is available and operable to 
perform the required safety function.
    (7) An event that requires unplanned medical treatment at an 
offsite medical facility of an individual with spreadable 
radioactive contamination on the individual's clothing or body.
    (8) An unplanned fire or explosion damaging any licensed 
material or any device, container, or equipment containing licensed 
material when:
    (i) The quantity of material involved is greater than five times 
the lowest annual limit on intake specified in appendix B of 
Sec. Sec.  20.1001-20.2401 of part 20 of this chapter for the 
material; and
    (ii) The damage affects the integrity of the licensed material 
or its container.
    (d) Written report. Each licensee that makes a report required 
by this appendix must submit a written follow-up report within 60 
days of the initial report. Written reports prepared pursuant to 
other regulations may be submitted to fulfill this requirement if 
the report contains all the necessary information, and the 
appropriate distribution is made. These written reports must be sent 
to the NRC's Document Control Desk, using an appropriate method 
listed in Sec.  70.5(a) of this part, with a copy to the appropriate 
NRC regional office listed in appendix D to part 20 of this chapter. 
The reports must include the following:
    (i) Complete applicable information required by (e)(1) of this 
appendix;
    (ii) The probable cause of the event, including all factors that 
contributed to the event and the manufacturer and model number (if 
applicable) of any equipment that failed or malfunctioned;
    (iii) Corrective actions taken or planned, and the results of 
any evaluations or assessments; and
    (iv) For licensees subject to subpart H of this part, whether 
the event was identified and evaluated in the integrated safety 
analysis.
    (e) Preparation and submission of reports. Reports made by 
licensees in response to the requirements of this appendix must be 
made as follows:
    (1) Reports must be made by a knowledgeable licensee 
representative and by any method that will ensure compliance with 
the required time period for reporting, such as by telephone at the 
numbers specified in appendix A to part 73 of this chapter, to the 
NRC Operations Center. To the extent that the information is 
available at the time of notification, the information provided in 
these reports must include:
    (i) Caller's name, position title, and call-back telephone 
number;
    (ii) Date, time, and exact location of the event;
    (iii) Description of the event, including:
    (A) Radiological or chemical hazards involved, including 
isotopes, quantities, and chemical and physical form of any material 
released;
    (B) Actual or potential health and safety consequences to the 
workers, the public, and the environment, including relevant 
chemical and radiation data for actual personnel exposures to 
radiation or radioactive materials or hazardous chemicals produced 
from licensed materials (e.g., level of radiation exposure, 
concentration of chemicals, and duration of exposure);
    (C) The sequence of occurrences leading to the event, including 
degradation or failure of structures, systems, equipment, 
components, and activities of personnel relied on to prevent 
potential accidents or mitigate their consequences; and
    (D) Whether the remaining structures, systems, equipment, 
components, and activities of personnel relied on to prevent 
potential accidents or mitigate their consequences are available and 
reliable to perform their function;
    (iv) External conditions affecting the event;
    (v) Additional actions taken by the licensee in response to the 
event;
    (vi) Status of the event (e.g., whether the event is ongoing or 
was terminated);
    (vii) Current and planned site status, including any declared 
emergency class;
    (viii) Notifications, related to the event, that were made or 
are planned to any local, State, or other Federal agencies; and
    (ix) Status of any press releases, related to the event, that 
were made or are planned.
    (2) Follow-up information to the reports must be provided until 
all information required to be reported in (e)(1) of this appendix 
is complete.
    (3) Each licensee must provide reasonable assurance that 
reliable communication with the NRC Operations Center is available 
during each event.
    (4) The provisions of this appendix, except for (a)(1), do not 
apply to licensees subject to Sec.  50.72 or Sec.  53.1630 of this 
chapter. They do apply to those part 50 or part 53 of this chapter 
licensees possessing material licensed under part 70 of this chapter 
that are not subject to the notification requirements in Sec.  50.72 
or Sec.  53.1630 of this chapter.
    (f) For a spent fuel reprocessing facility, additional reporting 
requirements beyond those described in this appendix may be 
necessary, as determined on a case-by-case basis.

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

0
39. The authority citation for 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
40. In Sec.  72.2, revise paragraphs (a)(1) and (2) to read as follows:


Sec.  72.2   Scope.

    (a) Except as provided in Sec.  72.6(b) of this part, licenses 
issued under this part are limited to the receipt, transfer, packaging, 
and possession of:
    (1) Power reactor spent fuel to be stored in a complex that is 
designed and constructed specifically for storage of power reactor 
spent fuel, other radioactive materials associated with spent fuel 
storage, and power reactor-related GTCC waste in a solid form in an 
independent spent fuel storage installation (ISFSI); or

[[Page 38158]]

    (2) Power reactor spent fuel to be stored in a monitored 
retrievable storage installation (MRS) owned by DOE that is designed 
and constructed specifically for the storage of spent fuel, high-level 
radioactive waste that is in a solid form, other radioactive materials 
associated with storage of these materials, and power reactor-related 
GTCC waste that is in a solid form.
* * * * *
0
41. In Sec.  72.3, revise the definition of Spent nuclear fuel or Spent 
fuel to read as follows:


Sec.  72.3   Definitions.

* * * * *
    Spent nuclear fuel or Spent fuel means fuel that has been withdrawn 
from a nuclear reactor following irradiation, the constituent elements 
of which have not been separated by reprocessing.
* * * * *
0
42. In Sec.  72.42, revise paragraph (b) to read as follows:


Sec.  72.42   Duration of license; renewal.

* * * * *
    (b) Applications for renewal of a license should be filed in 
accordance with the applicable provisions of subpart B of this part at 
least 30 days before the expiration of the existing license. The 
application must also include design basis information as documented in 
the most recently updated FSAR as required by Sec.  72.70 of this part. 
Information contained in previous applications, statements, or reports 
filed with the Commission under the license may be incorporated by 
reference provided that these references are clear and specific.
* * * * *
0
43. In Sec.  72.44, revise paragraph (d)(3) to read as follows:


Sec.  72.44  License conditions.

* * * * *
    (d) * * *
    (3) An annual report, or reports, be developed and maintained 
specifying the quantity of each of the principal radionuclides released 
to the environment in liquid and in gaseous effluents during the 
previous 12 months. The time between the development of the report, or 
reports, must be no longer than 12 months. The report, or reports, must 
include any information that may be required by the Commission to 
estimate maximum potential annual radiation doses to the public 
resulting from effluent releases. The report, or reports, must be 
maintained as records until termination of the license. The technical 
specifications required by paragraph (d) of this section must include 
requirements for when such a report, or reports, must be submitted to 
the Commission as specified in Sec.  72.4 of this part. On the basis of 
these reports and any additional information that the Commission may 
obtain from the licensee or others, the Commission may require the 
licensee to take action as the Commission deems appropriate.
* * * * *
0
44. In Sec.  72.48, revise paragraphs (a)(2), (a)(4)(iii) and (b) and 
remove and reserve paragraph (d)(2) to read as follows:


Sec.  72.48   Changes, tests, and experiments.

    (a) * * *
    (2) Departure from a method of evaluation described in the FSAR (as 
updated) used in establishing the design bases or in the safety 
analyses means:
    (i) Changing any of the elements of the method described in the 
FSAR (as updated) unless the analysis results in no more than a minimal 
increase in the applicable safety margins; or
    (ii) Changing from a method described in the FSAR to another method 
unless that method has been approved by NRC for the intended 
application or would only have a minor impact on safety.
* * * * *
    (4) * * *
    (iii) The evaluations included in the FSAR (as updated) for such 
SSCs which demonstrate that their intended function(s) will be 
accomplished.
* * * * *
    (b) This section applies to:
    (1) Each holder of a specific license issued under this part,
    (2) Each holder of a Certificate of Compliance (CoC) issued under 
this part, and
    (3) Each holder of a general license prior to initiating site 
specific, technical changes required from evaluation of Sec.  
72.212(b)(7) of this part.
* * * * *
    (d) * * *
    (2) [Reserved]
* * * * *
0
45. In Sec.  72.122, revise paragraph (h)(1) to read as follows:


Sec.  72.122   Overall requirements.

* * * * *
    (h) * * *
    (1) The spent fuel must be protected during storage against 
degradation, including gross ruptures of the fuel cladding, if used, or 
the fuel must be otherwise confined such that degradation of the fuel 
during storage will not pose operational safety problems with respect 
to its removal from storage. This may be accomplished by confining the 
fuel or unconsolidated assemblies or other means as appropriate.
* * * * *
0
46. In Sec.  72.212, revise paragraphs (b)(1) through (3), (b)(5)(i), 
and (b)(7) to read as follows:


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

* * * * *
    (b) The general license must:
    (1) Notify the Nuclear Regulatory Commission using instructions in 
Sec.  72.4 of this part at least 30 days before first storage of spent 
fuel under this general license. The notice may be in the form of a 
letter, but must contain the licensee's name, address, reactor license 
and docket numbers, and the name and means of contacting a person 
responsible for providing additional information concerning spent fuel 
under this general license. A copy of the submittal must be sent to the 
administrator of the appropriate Nuclear Regulatory Commission regional 
office listed in appendix D to part 20 of this chapter.
    (2) Register use of each cask with the Nuclear Regulatory 
Commission no later than 90 days after using that cask to store spent 
fuel. This registration may be accomplished by submitting a letter 
using instructions in Sec.  72.4 of this part containing the following 
information: the licensee's name and address, the licensee's reactor 
license and docket numbers, the name and title of a person responsible 
for providing additional information concerning spent fuel storage 
under this general license, the cask certificate number, the CoC 
amendment number to which the cask conforms, unless loaded under the 
initial certificate, cask model number, and the cask identification 
number. A copy of each submittal must be sent to the administrator of 
the appropriate Nuclear Regulatory Commission regional office listed in 
appendix D to part 20 of this chapter.
    (3) Ensure that each cask used by the general licensee conforms to 
the terms, conditions, and specifications of an issued CoC or amended 
CoC.
* * * * *
    (5) * * *
    (i) The cask once loaded with spent fuel or once the changes 
authorized by an amended CoC have been applied, will conform to the 
terms, conditions, and specifications of an issued CoC or an amended 
CoC.
* * * * *
    (7) Evaluate any site specific changes to the written evaluations 
required by paragraphs (b)(5) and (b)(6) of this

[[Page 38159]]

section using the requirements of Sec.  72.48(c) of this part. A copy 
of this record must be retained until spent fuel is no longer stored 
under the general license issued under Sec.  72.210 of this part.
* * * * *
0
47. Revise Sec.  72.214 to read as follows:


Sec.  72.214   Issued certificates of compliance.

    Dry storage systems are approved for the storage of spent fuel 
under the conditions in the issued Certificates of Compliance. The list 
of issued Certificates of Compliance is available here: https://www.nrc.gov/waste/spent-fuel-storage/designs.

PART 140--FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY 
AGREEMENTS

0
48. The authority citation for 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
49. In Sec.  140.2, add paragraph (a)(5) to read as follows:


Sec.  140.2   Scope.

    (a) * * *
    (5) To each person licensed pursuant to part 70 of this chapter to 
construct and operate a spent fuel reprocessing facility.
* * * * *
0
50. In Sec.  140.7, revise paragraph (c) to read as follows:


Sec.  140.7   Fees.

* * * * *
    (c)(1) Each spent fuel reprocessing facility licensee required to 
enter into an indemnification agreement must pay an indemnity agreement 
fee to the Commission in the amount determined by the Commission on a 
case-by-case basis, depending upon the specifics of each application.
    (2) Each person licensed to possess and use plutonium in a 
plutonium processing and fuel fabrication plant must pay to the 
Commission a fee of $5,000 per year for indemnification. This fee is 
for the period beginning with the date on which the applicable 
indemnity agreement is effective.
* * * * *
0
51. Add Sec.  140.13c to read as follows:


Sec.  140.13c   Amount of liability insurance required for spent fuel 
reprocessing facilities.

    Each holder of a license issued under part 70 of this chapter for a 
spent fuel reprocessing facility that involves the use of source 
material or special nuclear material is required to have and maintain 
liability insurance. The liability insurance must be the type and in 
the amounts the Commission considers appropriate to cover liability 
claims arising out of any occurrence within the United States that 
causes, within or outside the United States, bodily injury, sickness, 
disease, death, loss of or damage to property, or loss of use of 
property arising out of or resulting from the radioactive, toxic, 
explosive, or other hazardous properties of chemical compounds 
containing source material or special nuclear material. Proof of 
liability insurance must be filed with the Commission as required by 
Sec.  140.15 of this part before issuance of a license for a spent fuel 
reprocessing facility under part 70 of this chapter.

    Dated: June 22, 2026.

    For the Nuclear Regulatory Commission.
Carrie Safford,
Secretary of the Commission.
[FR Doc. 2026-12702 Filed 6-23-26; 8:45 am]
BILLING CODE 7590-01-P