March 10, 1995 

MEMORANDUM TO: Carl J. Paperiello, Director Designate 

Office of Nuclear Material Safety 

and Safeguards, NMSS 

FROM: John T. Greeves, Director 

Division of Waste Management, NMSS 

SUBJECT: MEMORANDUM OF UNDERSTANDING BETWEEN NRR AND NMSS 

The Office of Nuclear Material Safety and Safeguards and the Office of 

Nuclear Reactor Regulation staffs have been developing a Memorandum of 

Understanding (MOU) to realign office responsibilities for power reactor 

decommissioning and spent fuel management. The concerns of NMSS have been 

resolved in the attached version of the MOU. The MOU has been coordinated 

with FCSS and IMNS. We recommend that NMSS concur on the MOU. 

Attachment: As stated 

Contact: Lawrence G. Bell, NMSS 

415-7302 

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. Memorandum of Understanding Between NRR and NMSS (MOU) 

The Office of Nuclear Reactor Regulation (NRR) and the Office of Nuclear 

Material Safety and Safeguards (NMSS) have completed a review of the 

decommissioning program responsibilities as reflected in SECY-88-355, 

"Transfer of Regulatory Responsibility for Power Reactor Decommissioning from 

NRR to NMSS" (abbreviated title), and the challenges experienced during its 

implementation. This review also included evaluation of the respective 

capabilities of both NRR and NMSS and the opportunities to utilize the 

strengths of each organization effectively and efficiently. This MOU uses a 

matrix approach to indicate the staff possessing the requisite expertise 

during the various phases of the decommissioning process. 

Furthermore, this MOU is responsive to the requirements of the proposed rule 

to amend 10 CFR Parts 2, 50, and 51 related to the decommissioning of nuclear 

r2actors. This MOU also defines the interactions, licensing program 

management responsibilities, and support functions for the decommissioning of 

nuclear reactors. This MOU supersedes in toto the assignment of 

responsibilities identified in SECY-88-355. 

Management of the Power Reactor Decommissigning and Spent Fuel Programs 

The power reactor decommissioning and spent fuel programs will be managed as 

specified below. The overall objective is to eliminate dual Office 

responsibilities for regulatory oversight. This process is designed to 

utilize the experience and expertise of both NMSS and NRR and indicates the 

specific areas of expertise and support of each office. 

1. NRR will maintain regulatory project management, oversight, and 

inspection support responsibilitle-, including spent fuel physical 

protection program, for a reactor .:•lergoing decommissioning until all 

spent fuel is permanently tran. '2 from the spent fuel pool. For 

operating reactors, NRR will -sponsibility for the spent fuel 

physical protection program unti, Lne spent fuel is removed from the 

site. 

2. For decommissioning and for operating reactors, NRR will maintain 

cognizance over and provide inspection oversight for spent fuel pool 

operations, spent fuel cask loading, and transfer and unloading 

activities until the fuel is safely placed in an ISFSI or, moved to 

available space in another Part 50 licensed spent fuel pool, or shipped 

directly from the spent fuel pool to an offsite storage facility. 

3. For decommissioning and for operating reactors, NMSS will, except for 

the physical protection program at operating reactors, maintain 

cognizance over and provide inspection support for facilities related to 

fuel storage in an ISFSI, for spent fuel shipment from the ISFSI to an 

offsite storage facility, and for any dry fuel handling facilities at 

thoi % SI

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4. NMSS will assume regulatory project management and oversight of a 

reactor undergoing decommissioning, including emergency preparedness, 

after the spent fuel is permanently transferred from the spent fuel 

pool. 

5. NRR will provide technical support, as requested by NMSS, for structural 

and seismic issues associated with both the reactor facility and the 

ISFSI. 

6. NMSS will continue to maintain cognizance over the review of ISFSI 

casks, facilities, and their construction, vendors, and respective 

inspections. NMSS will also continue to maintain cognizance over 

topical reports and generic design approvals related to dry fuel 

handling facilities. NMSS will keep the cognizant NRR project manager 

informed of any Part 72 licensing matters pertaining to the Part 50 

license and will coordinate with the NRR project manager prior to the 

issuance of correspondence regarding issues and inspection findings 

under NMSS purview. NMSS will also coordinate onsite visits and 

inspections through the cognizant NRR project manager in accordance with 

Field Policy Manual, FPM No. 12. 

7. NRR will be the primary NRC contact for the public and the media until 

license project management responsibilities are transferred to NMSS. 

8. NRR will oversee all early component removal programs. 

9. NRR will assume responsibility for reviewing any cost estimates and 

financial or funding assurance plans submitted by licensees, either with 

the decommissioning plan or pursuant to 10 CFR 50.54(bb) regarding 

financial assurance for interim storage of spent fuel. 

10. NRR will review any decommissioning plan or report discussing planned 

activities following plant shutdown and will prepare, as recessary, any 

environmental assessment, safety ?valuation report, or decommissioning 

ordpr or amendment. 

11. NMSS will continue to provide technical input to NRR for environmental 

radiological surveys and site characterization issues associated with 

the decommissioning plan reviews and as requested by NRR. 

12. NRR will maintain responsibility for evaluation of all insurance or 

indemnity issues until termination of the Part 50 license even at those 

sites where project management has been transferred to NMSS. 

13. NMSS will review the license termination plan and prepare the safety 

evaluation report, the environmental assessment, and the license 

termination order or amendment. NMSS will be responsible for all 

confirmatory survey and license termination activities, including 

assurance that appropriate site release criteria are met.

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14. *NMSS will maintain responsibility for reviewing any cost estimates and 

financial or funding assurance plans that licensees submit with the 

license termination plan. 

15. NRR will provide primary support for State and local meetings to discuss 

decommissionii.- plans and Post-shutdown Activity Reports. NMSS will 

provide support in the transportation and other areas, as requested by 

NRR. NMSS will proviae primary support for State and local meetings and 

hearings to discuss license termination plans. 

Management of Non-Power Reactor Decommissioning 

The realignment of responsibility does not include non-power (research, test, 

or training) reactors. The Non-Power Reactor Decommissioning Program will 

remain under the cognizance of NRR. 

Transition Plan and Tasks 

The reali Pnment of decommissioning program responsibilities would take place 

during the tirst calendar quarter of 1995. The major actions accomplished and 

anticipated during the transition period before publication of the new rule in 

final form are as follows: 

1. Transfer of Regulatory Project Manaqement 

The transfer of regulatory project management responsibility from NMSS 

to NRR for the following shutdown reactors with wet spent fuel storage 

began on December 14, 1994, aid was completed during the first week of 

Jinuary 1995: Humboldt Bay Unit 3 and La Crosse. The Vallecitos 

boiling water reactor, which no longer has fuel, was transferred to NRR 

to make more effective use of resources because there are two shutdown 

and one operating non-power reactors on this site under NRR cognizance. 

NMSS will maintain regulator) project management for the following 

shutdown reactcrs that do not have wet spent fuel storag-. Fort St. 

Vrain, Shoreham, Fermi Unit 1, Peach Bottom Unit 1, and Pathfinder 

facilities. 

2. Decommissioning Plan Reviews 

NMSS has completed the decommissioning plan review for the Yankee Rowe 

plant. Decommissioning plan reviews for the Trojan, San Onofre, and Big 

Rock Point plants will be completed by NRR. NRR will review the 

decommissioning plans at the level of review envisioned for the Post

Shutdown Activities Report under the proposed rule and will prepare the 

environmental assessments, the safety evaluation reports, and the 

decommissioning orders.

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3. *Development of Standard Review Plans for Decommissioninq Plans and 

Post-Shutdown Activity Reports 

NRR will assume responsibility for developing appropriate guidance for 

the preparation and evaluation of decommissioning plans and Post

Shutdown Activity Reports. This guidance will be consistent with the 

level of review envisioned for the Post-Shutdown Activities Report under 

the proposed rule. 

4. Development of Standard Decommissioning Technical Specifications 

NRR will maintain responsibility for developing appropriate standard 

decommissioning technical specifications for permanently shutdown 

reactors. 

5. Development of Standard Review Plans for License Termination Plans 

NMSS w 'l assume responsibil'ty For developing appropriate guidance for 

preparation and evaluation of license termination plans. 

Resources 

No resource transfers between NRR or NMSS are contemplated to implement the 

proposed realignment as described in this MOU.

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