MEMORANDUM TO: Chairman Meserve September 17, 2001

Commissioner Dicus

Commissioner McGaffigan

Commissioner Merrifield

FROM: William D. Travers /RA/

Executive Director for Operations

SUBJECT: DELAY IN PREPARING MEMORANDUM OF UNDERSTANDING

BETWEEN THE U.S. DEPARTMENT OF ENERGY AND THE

U.S. NUCLEAR REGULATORY COMMISSION CONCERNING

MIXED OXIDE FUEL FABRICATION FACILITY SECURITY

The Defense Authorization Act for Fiscal Year 1999 (PL-105-261) provided the U.S. Nuclear

Regulatory Commission (NRC) with licensing and related regulatory authority for any facility

under a contract with, and for the account of, the U.S. Department of Energy (DOE), that is

used for the express purpose of fabrication of mixed plutonium-uranium oxide (MOX) nuclear

reactor fuel for a commercial nuclear reactor. SECY-99-177, entitled, ìCurrent Status of

Legislative Issues Related to NRC Licensing a Mixed-Oxide Fuel Fabrication Facility,î

concluded that no additional legislation (in addition to PL-105-261) is needed, with regard to

NRC licensing and regulating the MOX fuel fabrication facility, and subsequent burning of MOX

fuel in NRC-licensed reactors. The paper also committed NRC staff to developing a

Memorandum of Understanding (MOU), with DOE, to resolve overlapping regulatory authority in

the areas of classified and sensitive unclassified information protection, granting of material

access, and personnel security clearances, to avoid misunderstandings in areas where both

DOE and NRC have common responsibilities. NRC and DOE staffs prepared a proposed MOU

to address these common responsibilities without limiting or restricting NRC or DOE authority. 

The proposed MOU defines certain security-related DOE/NRC responsibilities in relation to

licensing the MOX facility. In early Fall 2000, the proposed MOU was ready for review by

senior management of DOE and NRC.

In October 2000, as NRC staff was preparing a Commission Paper to inform the Commission of

the MOU, DOE staff informed NRC staff that, because of organizational changes resulting in

the creation of the National Nuclear Security Administration (NNSA), responsibilities for overall

DOE security issues had changed. Because of these changes, NNSA staff indicated that

additional time was needed to review the proposed MOU. Consequently, the original due date

for the MOU, was modified to December 15, 2000. The due date was extended again in

December to May 31, 2001, to allow NNSA staff additional time to provide input. In May 2001,

NNSA staff indicated that, because of other office priorities, NNSA would not be able to provide

input until 

CONTACT: T.C. Johnson/NMSS/FCSS

(301) 415-7299
The Commissioners 2

May 2002. NRC management has confirmed DOE managementís commitment to meet this

schedule. Based on this latest information from NNSA, NRC staff is extending the due date for

completing the MOU to July 31, 2002, to allow time for NNSA staff to provide input, to allow for

resolution of any issues, and to prepare a Commission Paper. 

cc: SECY

OGC

OCA

OPA

CFO
The Commissioners 2

May 2002. NRC management has confirmed DOE managementís commitment to meet this

schedule. Based on this latest information from NNSA, NRC staff is extending the due date for

completing the MOU to July 31, 2002, to allow time for NNSA staff to provide input, to allow for

resolution of any issues, and to prepare a Commission Paper. 

cc: SECY

OGC

OCA

OPA

CFO

DISTRIBUTION: WITS 199900084/NMSS 2000100082

Docket : 70-3098

ADAMS SPB r/f FCSS r/f-t/f EDO r/f NMSS Dir.Off. r/f NMSS r/f 

CPoland DHoadley JHull, OGC KEverly, ADM LSilvious, ADM

AFernandez, OGC APersinko, NMSS WSmith DAyres,RIII

EMcAlpine, R III DBrown Hastwood MBridgers

DOCUMENT NAME: C:\Program Files\Adobe\Acrobat 4.0\PDF

Output\MOXMOUcommemo.WPD; 

ADAMS: Accession Number: ML012260538 * Please see previous concurrence.

OFC SPB SPB SPB SPB Tech. Ed. OGC

NAME TJohnson:cc\dw* AHoadley* JGiitter* ELeeds* EKraus* JHull (NLO)*

DATE 8/10/01 8/9/01 8/9/01 8/10/01 8/15/01 8/13/01

OFC FCSS ADM NMSS DEDMRS EDO

NAME MWeber* LSilvious* MVirgilio* CPaperiello WTravers

DATE 8/17/01 8/ 21 /01 8/24/01 09/17/01 09/17/01

OFFICIAL RECORD COPY