United States Nuclear Regulatory Commission

Office of Public Affairs

Washington, DC 20555

Phone 301-415-8200 Fax 301-415-2234

Internet:opa@nrc.gov

No. 96-84 FOR IMMEDIATE RELEASE

(Friday, June 14, 1996)

NRC, DOE SIGN MOU ON POSSIBLE FUTURE PRODUCTION

OF TRITIUM IN NRC-LICENSED FACILITIES

The Nuclear Regulatory Commission and the Department of

Energy have entered into a Memorandum of Understanding concerning

DOE's possible future use of NRC-regulated facilities to produce

tritium for nuclear weapons.

The agreement establishes a basis for NRC review and

consultation on DOE's possible purchase of commercial reactors,

or of irradiation services from commercial reactors, for this

purpose. As an alternative, DOE is also considering building a

new accelerator facility to produce tritium. Preliminary

activities under the agreement include NRC assistance to DOE in

assessing and resolving technical issues to support a DOE

decision within three years on the methods for tritium

production.

Production of tritium in commercial reactors would likely

require licensing actions by NRC, including safety analyses and

environmental reviews. It would also require DOE and NRC to

develop mechanisms to ensure that DOE national defense production

requirements would not impair NRC's regulatory authority to shut

down any utilized reactor for safety reasons.

Other details of the agreement, including matters expressly

outside its scope, are provided in the attached copy.

Signers of the recent agreement were NRC Chairman Shirley A.

Jackson and Energy Secretary Hazel R. O'Leary.

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MEMORANDUM OF UNDERSTANDING BETWEEN THE NUCLEAR

REGULATORY COMMISSION AND THE DEPARTMENT OF ENERGY

I. Introduction

The Department of Energy (DOE) and the Nuclear Regulatory Commission

(NRC), in recognition of a mutual commitment to the effective and

efficient protection of the public health and safety and the

environment, have developed this Memorandum of Understanding

(hereinafter referred to as agreement) in order to establish a basic

framework within which DOE and NRC will endeavor to resolve issues of

concern to either agency that relate to the regulation of nuclear

facilities, projects, and activities, involved in the production of

tritium, as described in this agreement.

Tritium, an essential material in U.S. nuclear weapons, decays at a

rate of approximately five percent per year (a 12.3-year half-life).

The U.S. is not currently producing tritium. Resumption of tritium

production will be essential for maintaining the U.S. nuclear weapons

stockpile and the U.S. nuclear deterrent.

DOE distributed its "Tritium Supply and Recycling Programmatic

Environmental Impact Statement" in October 1995 in which it announced

its preferred "dual path" strategy for acquiring a new supply of

tritium. That strategy is to begin work on two production alternatives:

(1) to procure an option or options to purchase or lease existing

commercial light-water reactors (CLWRs) or procure CLWR irradiation

services for tritium production and (2) to design, build, and test

critical components of an accelerator-produced tritium (APT) system for

tritium production. A decision to implement the DOE's preferred dual

path strategy for tritium production, based upon the Programmatic

Environmental Impact Statement and related cost, schedule, and

technical analyses, was announced in a Record of Decision issued on

December 5, 1995.

During the next three years, DOE will be undertaking the research and

analyses necessary to provide the technical, economic, and regulatory

bases for the selection of the primary and backup technology approaches

by 1998. However, regardless of whether the commercial reactor option

is selected as the primary approach for tritium production, DOE intends

to complete confirmatory testing, fabricate the first core load of

targets, and develop a new extraction capability as a contingency to

meet national defense requirements.
The production of tritium in CLWRs presents a range of technical,

regulatory, and policy issues. DOE is pursuing resolution of many of

the technical issues in its design and testing of a target assembly for

tritium production. The use of this target in CLWRs for tritium

production will likely require NRC's approval. Issues concerning the

NRC's licensing and related regulatory authority over DOE and its

contractors must be addressed if DOE opts to purchase an existing or a

partially completed commercial reactor. Selection by DOE of this

option, or of other options, may require amendment of the Atomic Energy

Act of 1954 and the implementing NRC regulations.

The use of existing CLWRs is subject to an additional set of issues

concerning the use of civilian commercial reactors for purposes that

support military requirements. The manner in which these concerns are

resolved and a final determination on the mode of tritium production

chosen will not involve NRC technical or policy review and is not a

subject of this agreement. Commercial arrangements with prospective

CLWRs are also not a subject of this agreement. National strategic

policy considerations may involve matters beyond the scope of this

agreement; nothing in this agreement is intended to preclude such

considerations. Matters beyond the scope of this agreement that affect

the NRC will require the Commission's approval.

II. Authority

Section 91 of the Atomic Energy Act of 1954, as amended, Sections

102(g) and 104(d) of the Energy Reorganization Act of 1974, and Section

301 (a) of the Department of Energy Organization Act of 1977, authorize

DOE to engage in the development of atomic weapons and the production

of nuclear materials needed for such weapons. Sections 53, 57, 63, 81,

103, 104, and 161b. of the Atomic Energy Act of 1954, as amended,

authorize NRC to regulate by rules, orders, standards, and instructions

any persons possessing and using production or utilization facilities,

special nuclear material, source material, and byproduct material for

the purpose of promoting the common defense and security and protecting

health or minimizing danger to life or property. The DOE-NRC Memorandum

of Understanding of February 24, 1978, establishes an overall

management policy with regard to interagency relationships in the

conduct of research programs and related areas and includes within its

scope those guidelines governing DOE work performed by NRC. This

agreement is entered into pursuant to these and other applicable

authorities, including the Economy Act of 1932.

III. Purpose

The purpose of this agreement is to establish the basis for review and

consultation by NRC with respect to DOE's possible acquisition of

CLWRs, or acquisition of irradiation services from CLWRs, for the

production of tritium.

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IV. Agreements Between the Parties

A. General

1. NRC and DOE will promote the timely and orderly completion of

projects undertaken pursuant to this memorandum with due regard for the

public health and safety, protection of the environment, and the common

defense and security. Essential to this timely and orderly completion

is a relationship between the agencies marked by open and candid

communications at all levels and prompt resolution of any issues that

may arise.

2. NRC agrees to use available DOE information and reports and to

comply with DOE administrative requirements for handling such

information to the maximum extent practicable. DOE will, however,

provide NRC such additional information as NRC may require to identify

issues related to the public health and safety and protection of the

environment that may be presented by the project. Project information

or reports submitted under this agreement by DOE to NRC for review,

comments provided by NRC to DOE in response thereto, and other

information that is part of the official record generally shall be

available for public inspection, with exceptions as specified in NRC

regulations.

3. NRC and DOE recognize the importance of providing timely and

accurate information to the public regarding projects, activities, and

regulatory decisions that may affect the public health and safety and

protection of the environment. Meetings between NRC and DOE staff in

connection with project activities that pertain to specific regulatory

decisions or actions shall be governed by the NRC's policy on open

meetings (59 FR 48340; September 20, 1994).

4. Each agency also recognizes that it will be responsible for the

safeguarding, control of, and accounting for classified, proprietary,

and procurement-sensitive information used or otherwise furnished in

connection with projects in accordance with its established procedures.

5. Committees such as the Advisory Committee on Reactor Safeguards and

the Advisory Committee on Nuclear Waste for NRC and the Defense Nuclear

Facilities Safety Board for DOE provide independent review of their

respective agency's facilities, safety studies, and related matters. If

necessary, NRC and DOE agree to support these independent reviews by

providing information or briefings related to their respective areas of

responsibilities.

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6. The principal senior management contacts for this agreement will be

the Director, Division of Reactor Program Management, Office of Nuclear

Reactor Regulation, NRC, and the Director of the Commercial Light Water

Reactors Project, DOE. These individuals may designate appropriate

staff representatives for the purpose of administering this agreement.

Identification of these contacts is not intended to restrict

communication between DOE and NRC staff members on routine technical

consultation and other day-to-day activities.

B. Planning and Reimbursement of Costs

1. NRC and DOE will cooperate in long-range planning so as to ensure

that both agencies anticipate the magnitude of funding, the allocation

of resources, and the timing of events necessary to conduct interagency

projects. Consultations and information exchanges between NRC and DOE

on long-range planning activities and other normal functions are

generally not subject to reimbursement.

2. Specific project activities in which DOE requests that NRC review,

consult on, or comment upon to identify issues related to public health

and safety, occupational safety, and protection of the environment are

generally subject to reimbursement at full agency costs from DOE in

accordance with established NRC regulations, policies, and procedures

on reimbursement for work performed for other Federal agencies.

3. The details of the levels of support to be furnished to one

organization by the other with respect to funding will be developed in

specific interagency agreements or other agreements, subject to the

availability of funds. This agreement shall not be used to obligate or

commit funds or as the basis for the transfer of funds. DOE and NRC

will provide each other mutual support in budget justification to the

Office of Management and Budget and hearings before the Congress with

respect to programs on which the organizations collaborate.

C. Preliminary Phase Activities

1. NRC will assist DOE in assessing and resolving technical and

licensing issues (including physical security, security clearance, and

environmental issues) in order to support a Secretarial decision on the

primary and backup tritium production approaches within three years.

2. The production of tritium under an existing commercial license will

require DOE and NRC to develop mechanisms to ensure that national

defense production requirements will not affect the regulation,

including plant shutdown for safety reasons, of the facilities.

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3. NRC and DOE will work together to develop a reimbursable agreement

for the full agency cost for NRC to conduct this work in accordance

with NRC administrative procedures. Reimbursement will be required to

the extent that such resources are not appropriated to the NRC for this

work. Additionally, a project level schedule will be jointly developed

to implement required preapplication phase activities.

D. Target Topical Report Phase Activities

1. As the project continues and more precise information is developed,

DOE may submit for the NRC staff's review and approval a topical report

describing detailed technical and licensing requirements for the use of

a target tritium production assembly in a CLWR. A revised or new

reimbursable agreement, as well as a project level schedule, will be

jointly developed at that time. Reimbursement will be required to the

extent that such resources are not appropriated to the NRC for this

work.

2. DOE acknowledges that the NRC staff's approval of any topical report

is not binding on an Atomic Safety and Licensing Board or the

Commission in the event any aspect of the topical report is challenged

in an administrative adjudication.

E. Acquisition Phase Activities

Tritium production in CLWRs is likely to require licensing action by

NRC, including safety analysis and environmental review. As specific

options are chosen, NRC and DOE will cooperate in planning and

completing these activities in accordance with applicable licensing

procedures.

V. Other Provisions

1. Nothing in this agreement shall limit the authority of either agency

to independently exercise its authority with regard to matters that are

the subject of this agreement.

2. Nothing in this agreement shall be deemed to establish any right or

provide a basis for any action, either legal or equitable, by any

person or class of persons challenging a Government action or a failure

to act.

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3. This agreement shall be effective upon signature of both parties and

will remain in effect until terminated by mutual agreement or by the

written notice of either party submitted six months in advance of

termination. Amendments or modifications to this agreement may be made

upon the written agreement of the parties.

DOE Approved: NRC Approved:

Hazel R. O'Leary Shirley A. Jackson

Secretary Chairman

Department of Energy U.S. Nuclear Regulatory Commission

5/22/96 May 22, 1996

Date Date