-_0 '°UNITED W STATES

NUCLEAR REGULATORY COMMISSION

WASHINGTON, D. C. 20555

AUG 0 3 1988

NOTE TO: All Interested Parties

FROM: Eileen T. Tani

SUBJECT: NOTICE OF MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE NUCLEAR

REGULATORY COMMISSION AND THE DEPARTMENT OF ENERGY

Enclosed for your information is the Federal Register notice dated August 1,

1988 which contains the MOU between the NRC and the DOE regarding the NRC's

recovery of the costs it incurs in performing pre-license application activities

related to the disposal of high-level radioactive waste and spent fuel in a

geologic repository.

Sincerely,

Eileen T. Tana, Licensing Assistant

Operations Branch

Division of High-Level Waste Management

Office of Nuclear Material

Safety and Safeguards

Enclosure:

As stated

64

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PDR WASTE c WIV-1 PDC rn
Ppelpriql Rp<Imdpr / Vnl. 53. Nn. 147 / Mondav. August 1. 1988 / Notices 28923 g ~~~~~-- --.- U -* --. - -

U.S. Nuclear Regulatory Commission,

Washington, DC 20555. Telephone (30()

492-4750.

Samuel J. Chilk, -

Secretary of the Commission.

Memorandum of Understanding

Between the United States Nuclear

Regulatory Commission and the United

States Department of Energy -

The Memorandum of Understanding

establishes general policy and

procedures regarding the Nuclear

Regulatory Commission's (NRC)

recovery of the costs it incurs In

performing pre-license application

activities related to the disposal of highlevel radioactive waste and spent fuel in

a geologic repository. NRC costs are to

be recovered from the Nuclear Waste

Fund managed by the Department of

Energy (DOE).

L. Introduction -'I- ;

A. Background

In section III of the Nuclear Waste

Policy Act of 1982. as amended (NWPA),

Congress made clear that while the

Federal Government has the . .: .---,;:-

responsibility to provide for the.- .i.

permanent disposal of high-level

radioactive waste and spent nuclear

fuel, the costs of disposal should be

borne by the generators and owners of

the waste and spent fuel. To implement

this policy. Congress in section 302 of

the NWPA established the Nuclear

Waste Fund. The Fund consists of

payments from the owners and

generators of high-level radioactive

waste and spent nuclear fuel. Section

302 authorizes the Secretary of Energy

to make expenditures from the Fund for

activities under Titles I and 11 of the

NWPA. This would include appropriate',

reimbursement of NRC costs.

B. Purpose

The purpose of this Memorandum of

Understanding is to set forth the

activities to be performed by the NRC

during the pre-license application phase

of the Civilian Radioactive Waste

Management Program for which costs

shall be paid from the Nuclear Waste

Fund. and to establish general

procedures for the payment of such

costs from the Nuclear Waste Fund. The

primary objective of these activities is to

identify and resolve issues to the extent

possible prior to license application. The

parties intend to enter into another

Memorandum of Understanding at a

later date to provide for NRC recovery

of its post-license application costs. -

NUCLEAR REGULATORY

COMMISSION

Energy; Permanent Disposal of HighLevel Radioactive Waste and Spent

Nuclear Fuel; Memorandum of

Understanding

AGENCY: Nuclear Regulatory

Commission.

ACTION: Notice of Memorandum of

Understanding between the Nuclear

Regulatory Commission and the

Department of Energy.

SUMMARY: On July 20, 1988, the Nuclear

Regulatory Commission and the

Department of Energy, entered into the

Memorandum of Understanding below.

The purpose of the MOU is to establish

the terms under which the NRC will be

reimbursed from the Nuclear Waste

Fund for NRC pre-application activities

related to the disposal of high-level

radioactive waste and spent fuel in a

geologic repository.

FOR FURTHER INFORMATION CONTACT:

Ronald M. Scroggins. Deputy Director

for Financial Management & Controller.
28924 Federal Register / Vol. 53, No. 147 / Monday, August 1, 1983 / Notices

C Authority

This Memorandum of Understanding

Is in accordance with the provisions of

sections 111, 113,114, and 302 of the

NWPA.

D. Policy

Consistent with the NWPA. both the

NRC and DOE's Office of Civilian

Radioactive Waste Management

(OCRWMVM) agree that it is in the best

interest of the Nuclear Waste

Management Program for NRC to reviewi

OCRWM activities during the prelicense application phase so that issues

*can be identified and resolved to the

extent possible prior to the submission

of a license application by OCRWM.

OCRWM agrees to reimburse from the

Nuclear Waste Fund all reasonable

costs that are incurred by the NRC as a

direct result of NRC's pre-license

application consultations provided to

the OCRWM program. Activities for

which costs will be recovered from the

Nuclear Waste Fund are as follows: (1)

The development of NWPA regulatory

requirements and technical guidance

(technical guidance in the form of

regulatory guides, rules, or other

appropriate management approved

guidance, consultation with DOE, States

and Indian Tribes, and changes to 10

CFR 2 to accommodate the licensing

support system and improve the review,

and hearing process to meet the

mandated three-year licensing

schedule]; (2) the development of

technical assessment capability for

repository licensing reviews; (3) the

development and implementation of

quality assurance/quality control and

inspection programs for NWPA

activities; (4) site characterization

reviews (conducting pre-license

application reviews of OCRWM and

OCRWM contractor NWPA activities.

conducting pre-license application

reviews of the environmental impact

statement (EIS) resulting from the

repository program including those

activities required to make the EIS

acceptable for adoption by NRC); (5) the

review of transport packages certificate

applications and technical Issues relatei

to package certification; (6) the review

of pre-license application activities

relating to a monitored retrievable

storage (MRS) facility; (7) the conduct o

high-level waste research necessary to

support NRC regulatory activities

directly related to the repository. MRS

or transportation aspects of the

program; (8) activities relating to the

disposal of defense high-level waste in

the geologic repository; (9) the cost of at

independent auditor performing audits

of NRC costs covered by this

Memorandum; and (10) that portion of

the costs of the following that arise

solely as a result of NRC's pre-license

application consultations with the

OCRWM program: (a) NRC staff's legal

support for N10PA activities; (b) Atomic

Safety and Licensing Board and Atomic

Safety Licensing Appell Panel expenses

related to NWVPA issues; (c) reviews of

NWPA activities conducted by NRC's - Advisory Committee on Nuclear Waste;

and (d) services provided by NRC's

Office of Governmental and Public

Affairs related to NWPA issues. In

carrying out its responsibilities covered

by this Memorandum of Understanding,

the NRC will avoid unnecessary

duplication of activities performed by

DOE.

Additional activities may be added to

those listed above, after consultation

between OCRWM and NRC.

II. Management and Program Guidelines

*As soon as practicable, following the

end of each fiscal year, the NRC shall

provide the DOE with a statement

certified by an independent auditory

setting forth the amount DOE is

obligated to pay for NRC's costs

Incurred for work as defined in thisMOU during the fiscal year just

completed. DOE shall promptly,

following the appropriation of funds, . deposit into the General Fund of the

Treasury of the United States a sum

equal to the certified NRC costs. If in

any year, the NRC audited costs

significantly exceed the funds available

for NRC reimbursement based upon

funds appropriated to OCRWM, DOE

shall promptly notify the NRC so that a

payment schedule can be set.

The NRC shall provide OCRWM., prior

to June of each year, with an estimate of

the costs NRC expects to incur during

the next three fiscal years. These

estimates shall include a description of

anticipated work and an explanation of

how these amounts were derived. This

information shall be Included in NRC's

budget submission to the Office of

Management and Budget.

Further details regarding billing and

I payment will be set forth in the annual

Interagency Agreement between the

NRC and the Department of Energy.

III. Administration

This Memorandum of Understanding

may be modified or amended by written

agreement between NRC and OCRWVM

and terminated by either party upon 60-

day written notice to the other party.

This Memorandum of Understanding is

I effective when signed by both parties.

The following signatures constitute

acceptance of this agreement.

Nuclear Regulatory Commission.

Date: July 20. 1988 - -

Victor Stello, Jr., - .

Executive Director of Operations.

Department of Energy.

Date: July 18.1988.

Charles E. Kay,

Acting Director, Office of Civilian

Radioactive Waste Management.

[FR Doc. 88-17273 Filed 7-29-8; 8:45 am]

BILLING CODE 7590-01M . . -. *